[Congressional Record (Bound Edition), Volume 153 (2007), Part 10]
[Senate]
[Pages 14008-14039]
[From the U.S. Government Publishing Office, www.gpo.gov]




   U.S. TROOP READINESS, VETERANS' CARE, KATRINA RECOVERY, AND IRAQ 
       ACCOUNTABILITY APPROPRIATIONS ACT, 2007--CONFERENCE REPORT

  Mr. REID. Mr. President, I ask that the Chair lay before the Senate a 
message from the House of Representatives on the bill, H.R. 2206, 
making emergency supplemental appropriations and additional 
supplemental appropriations for agricultural and other emergency 
assistance for the fiscal year ending September 30, 2007, and for other 
purposes.
  The PRESIDING OFFICER laid before the Senate the following message 
from the House of Representatives:

                               H.R. 2206

       Resolved, That the House agree to the amendment of the 
     Senate to the bill (H.R. 2206) entitled ``An Act making 
     emergency supplemental appropriations and additional 
     supplemental appropriations for agricultural and other 
     emergency assistance for the fiscal year ending September 30, 
     2007, and for other purposes'', with the following:
       House amendment to Senate amendment:
       In lieu of the matter proposed to be inserted by the 
     amendment of the Senate, insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``U.S. Troop Readiness, 
     Veterans' Care, Katrina Recovery, and Iraq Accountability 
     Appropriations Act, 2007''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:
TITLE I--SUPPLEMENTAL APPROPRIATIONS FOR DEFENSE, INTERNATIONAL 
              AFFAIRS, AND OTHER SECURITY-RELATED NEEDS
TITLE II--HURRICANE KATRINA RECOVERY
TITLE III--ADDITIONAL DEFENSE, INTERNATIONAL AFFAIRS, AND HOMELAND 
              SECURITY PROVISIONS
TITLE IV--ADDITIONAL HURRICANE DISASTER RELIEF AND RECOVERY
TITLE V--OTHER EMERGENCY APPROPRIATIONS
TITLE VI--OTHER MATTERS
TITLE VII--ELIMINATION OF SCHIP SHORTFALL AND OTHER HEALTH MATTERS
TITLE VIII--FAIR MINIMUM WAGE AND TAX RELIEF
TITLE IX--AGRICULTURAL ASSISTANCE
TITLE X--GENERAL PROVISIONS

     SEC. 3. STATEMENT OF APPROPRIATIONS.

       The following sums in this Act are appropriated, out of any 
     money in the Treasury not otherwise appropriated, for the 
     fiscal year ending September 30, 2007.

    TITLE I--SUPPLEMENTAL APPROPRIATIONS FOR DEFENSE, INTERNATIONAL 
               AFFAIRS, AND OTHER SECURITY-RELATED NEEDS

                               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, $350,000,000, to remain available until expended.

                               CHAPTER 2

                         DEPARTMENT OF JUSTICE

                            Legal Activities


            Salaries and Expenses, General Legal Activities

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


             salaries and expenses, united states attorneys

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

                     United States Marshals Service


                         SALARIES AND EXPENSES

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

                       National Security Division


                         Salaries and Expenses

       For an additional amount for ``Salaries and Expenses'', 
     $1,736,000, to remain available until September 30, 2008.

                    Federal Bureau of Investigation


                         Salaries and Expenses

       For an additional amount for ``Salaries and Expenses'', 
     $118,260,000, to remain available until September 30, 2008.

                    Drug Enforcement Administration


                         Salaries and Expenses

       For an additional amount for ``Salaries and Expenses'', 
     $8,468,000, 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.

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 1201. Funds provided in this Act for the ``Department 
     of Justice, United States Marshals Service, Salaries and 
     Expenses'' shall be made available according to the language 
     relating to such account in the joint explanatory statement 
     accompanying the conference report on H.R. 1591 of the 110th 
     Congress (H. Rept. 110-107).
       Sec. 1202. Funds provided in this Act for the ``Department 
     of Justice, Legal Activities, Salaries and Expenses, General 
     Legal Activities'', shall be made available according to the 
     language relating to such account in the joint explanatory 
     statement accompanying the conference report on H.R. 1591 of 
     the 110th Congress (H. Rept. 110-107).

                               CHAPTER 3

                    DEPARTMENT OF DEFENSE--MILITARY

                           MILITARY PERSONNEL

                        Military Personnel, Army

       For an additional amount for ``Military Personnel, Army'', 
     $8,510,270,000.

                        Military Personnel, Navy

       For an additional amount for ``Military Personnel, Navy'', 
     $692,127,000.

                    Military Personnel, Marine Corps

       For an additional amount for ``Military Personnel, Marine 
     Corps'', $1,386,871,000.

                     Military Personnel, Air Force

       For an additional amount for ``Military Personnel, Air 
     Force'', $1,079,287,000.

                        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'', 
     $77,800,000.

                      Reserve Personnel, Air Force

       For an additional amount for ``Reserve Personnel, Air 
     Force'', $5,500,000.

                     National Guard Personnel, Army

       For an additional amount for ``National Guard Personnel, 
     Army'', $436,025,000.

                  National Guard Personnel, Air Force

       For an additional amount for ``National Guard Personnel, 
     Air Force'', $24,500,000.

                       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'', $4,652,670,000, of which up to $120,293,000 shall be 
     transferred to Coast Guard, ``Operating Expenses'', for 
     reimbursement for activities which support activities 
     requested by the Navy.

                Operation and Maintenance, Marine Corps

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

                  Operation and Maintenance, Air Force

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

                Operation and Maintenance, Defense-Wide

       For an additional amount for ``Operation and Maintenance, 
     Defense-Wide'', $2,714,487,000, of which--
       (1) not to exceed $25,000,000 may be used for the Combatant 
     Commander Initiative Fund, to be used in support of Operation 
     Iraqi Freedom and Operation Enduring Freedom; and
       (2) not to exceed $200,000,000, to remain available until 
     expended, may be used for payments to reimburse Pakistan, 
     Jordan, and other key cooperating nations, for logistical, 
     military, and other support provided to United States 
     military operations, notwithstanding any other provision of 
     law: Provided, That such payments may be

[[Page 14009]]

     made in such amounts as the Secretary of Defense, with the 
     concurrence of the Secretary of State, and in consultation 
     with the Director of the Office of Management and Budget, may 
     determine, in his discretion, based on documentation 
     determined by the Secretary of Defense to adequately account 
     for the support provided, and such determination is final and 
     conclusive upon the accounting officers of the United States, 
     and 15 days following notification to the appropriate 
     congressional committees: Provided further, That the 
     Secretary of Defense shall provide quarterly reports to the 
     congressional defense committees on the use of funds provided 
     in this paragraph.

                Operation and Maintenance, Army Reserve

       For an additional amount for ``Operation and Maintenance, 
     Army Reserve'', $74,049,000.

                Operation and Maintenance, Navy Reserve

       For an additional amount for ``Operation and Maintenance, 
     Navy Reserve'', $111,066,000.

            Operation and Maintenance, Marine Corps Reserve

       For an additional amount for ``Operation and Maintenance, 
     Marine Corps Reserve'', $13,591,000.

              Operation and Maintenance, Air Force Reserve

       For an additional amount for ``Operation and Maintenance, 
     Air Force Reserve'', $10,160,000.

             Operation and Maintenance, Army National Guard

       For an additional amount for ``Operation and Maintenance, 
     Army National Guard'', $83,569,000.

             Operation and Maintenance, Air National Guard

       For an additional amount for ``Operation and Maintenance, 
     Air National Guard'', $38,429,000.

                    Afghanistan Security Forces Fund

       For an additional amount for ``Afghanistan Security Forces 
     Fund'', $5,906,400,000, to remain available until September 
     30, 2008.

                       Iraq Security Forces Fund

       For an additional amount for ``Iraq Security Forces Fund'', 
     $3,842,300,000, to remain available until September 30, 2008.

                           Iraq Freedom Fund


                     (including transfer of funds)

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

             Joint Improvised Explosive Device Defeat Fund

       For an additional amount for ``Joint Improvised Explosive 
     Device Defeat Fund'', $2,432,800,000, to remain available 
     until September 30, 2009.

                              PROCUREMENT

                       Aircraft Procurement, Army

       For an additional amount for ``Aircraft Procurement, 
     Army'', $619,750,000, to remain available until September 30, 
     2009.

                       Missile Procurement, Army

       For an additional amount for ``Missile Procurement, Army'', 
     $111,473,000, to remain available until September 30, 2009.

        Procurement of Weapons and Tracked Combat Vehicles, Army

       For an additional amount for ``Procurement of Weapons and 
     Tracked Combat Vehicles, Army'', $3,404,315,000, to remain 
     available until September 30, 2009.

                    Procurement of Ammunition, Army

       For an additional amount for ``Procurement of Ammunition, 
     Army'', $681,500,000, to remain available until September 30, 
     2009.

                        Other Procurement, Army

       For an additional amount for ``Other Procurement, Army'', 
     $9,859,137,000, to remain available until September 30, 2009.

                       Aircraft Procurement, Navy

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

                       Weapons Procurement, Navy

       For an additional amount for ``Weapons Procurement, Navy'', 
     $163,813,000, to remain available until September 30, 2009.

            Procurement of Ammunition, Navy and Marine Corps

       For an additional amount for ``Procurement of Ammunition, 
     Navy and Marine Corps'', $159,833,000, to remain available 
     until September 30, 2009.

                        Other Procurement, Navy

       For an additional amount for ``Other Procurement, Navy'', 
     $618,709,000, to remain available until September 30, 2009.

                       Procurement, Marine Corps

       For an additional amount for ``Procurement, Marine Corps'', 
     $989,389,000, to remain available until September 30, 2009.

                    Aircraft Procurement, Air Force

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

                     Missile Procurement, Air Force

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

                  Procurement of Ammunition, Air Force

       For an additional amount for ``Procurement of Ammunition, 
     Air Force'', $6,000,000, to remain available until September 
     30, 2009.

                      Other Procurement, Air Force

       For an additional amount for ``Other Procurement, Air 
     Force'', $1,957,160,000, to remain available until September 
     30, 2009.

                       Procurement, Defense-Wide

       For an additional amount for ``Procurement, Defense-Wide'', 
     $721,190,000, to remain available until September 30, 2009.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Research, Development, Test and Evaluation, Army

       For an additional amount for ``Research, Development, Test 
     and Evaluation, Army'', $100,006,000, to remain available 
     until September 30, 2008.

            Research, Development, Test and Evaluation, Navy

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

         Research, Development, Test and Evaluation, Air Force

       For an additional amount for ``Research, Development, Test 
     and Evaluation, Air Force'', $187,176,000, to remain 
     available until September 30, 2008.

        Research, Development, Test and Evaluation, Defense-Wide

       For an additional amount for ``Research, Development, Test 
     and Evaluation, Defense-Wide'', $512,804,000, to remain 
     available until September 30, 2008.

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

       For an additional amount for ``Defense Working Capital 
     Funds'', $1,115,526,000.

                     National Defense Sealift Fund

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

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

       For an additional amount for ``Defense Health Program'', 
     $1,123,147,000.

         Drug Interdiction and Counter-Drug Activities, Defense

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

                            RELATED AGENCIES

               Intelligence Community Management Account

       For an additional amount for ``Intelligence Community 
     Management Account'', $71,726,000.

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 1301. Appropriations provided in this Act are 
     available for obligation until September 30, 2007, unless 
     otherwise provided herein.


                          (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 (except 
     for military construction) in this Act: 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 Act, or made 
     available by the transfer of funds in or pursuant to this 
     Act, 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 Act may be 
     used to finance programs or activities denied by Congress in 
     fiscal years 2006 or 2007 appropriations to the Department of 
     Defense (except for military construction) or to initiate a 
     procurement or research, development, test and evaluation new 
     start program without prior written notification to the 
     congressional defense committees.


                          (TRANSFER OF FUNDS)

       Sec. 1305. During fiscal year 2007, the Secretary of 
     Defense may transfer not to exceed $6,300,000 of the amounts 
     in or credited to the Defense Cooperation Account, pursuant 
     to 10 U.S.C. 2608, to such appropriations or funds of the 
     Department of Defense as he shall determine for use 
     consistent with the purposes for which such funds were 
     contributed and accepted: Provided, That such amounts shall 
     be available for the same time period as the appropriation to 
     which transferred: Provided further, That the Secretary shall 
     report to the Congress all transfers made pursuant to this 
     authority.
       Sec. 1306. (a) Authority to Provide Support.--Of the amount 
     appropriated by this Act under the heading, ``Drug 
     Interdiction and

[[Page 14010]]

     Counter-Drug Activities, Defense'', not to exceed $60,000,000 
     may be used for support for counter-drug activities of the 
     Governments of Afghanistan and Pakistan: Provided, That such 
     support shall be in addition to support provided for the 
     counter-drug activities of such Governments under any other 
     provision of the law.
       (b) Types of Support.--
       (1) Except as specified in subsection (b)(2) of this 
     section, the support that may be provided under the authority 
     in this section shall be limited to the types of support 
     specified in section 1033(c)(1) of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85, as 
     amended by Public Laws 106-398, 108-136, and 109-364) and 
     conditions on the provision of support as contained in 
     section 1033 shall apply for fiscal year 2007.
       (2) The Secretary of Defense may transfer vehicles, 
     aircraft, and detection, interception, monitoring and testing 
     equipment to said Governments for counter-drug activities.
       Sec. 1307. (a) From funds made available for operation and 
     maintenance in this Act to the Department of Defense, not to 
     exceed $456,400,000 may be used, notwithstanding any other 
     provision of law, to fund the Commanders' Emergency Response 
     Program, for the purpose of enabling military commanders in 
     Iraq and Afghanistan to respond to urgent humanitarian relief 
     and reconstruction requirements within their areas of 
     responsibility by carrying out programs that will immediately 
     assist the Iraqi and Afghan people.
       (b) Quarterly Reports.--Not later than 15 days after the 
     end of each fiscal year quarter, the Secretary of Defense 
     shall submit to the congressional defense committees a report 
     regarding the source of funds and the allocation and use of 
     funds during that quarter that were made available pursuant 
     to the authority provided in this section or under any other 
     provision of law for the purposes of the programs under 
     subsection (a).
       Sec. 1308. Section 9010 of division A of Public Law 109-289 
     is amended by striking ``2007'' each place it appears and 
     inserting ``2008''.
       Sec. 1309. During fiscal year 2007, supervision and 
     administration costs associated with projects carried out 
     with funds appropriated to ``Afghanistan Security Forces 
     Fund'' or ``Iraq Security Forces Fund'' in this Act may be 
     obligated at the time a construction contract is awarded: 
     Provided, That for the purpose of this section, supervision 
     and administration costs include all in-house Government 
     costs.
       Sec. 1310. Section 1005(c)(2) of the National Defense 
     Authorization Act, Fiscal Year 2007 (Public Law 109-364) is 
     amended by striking ``$310,277,000'' and inserting 
     ``$376,446,000''.
       Sec. 1311. Section 9007 of Public Law 109-289 is amended by 
     striking ``20'' and inserting ``287''.
       Sec. 1312. 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.


                          (transfer of funds)

       Sec. 1313. Notwithstanding any other provision of law, not 
     to exceed $110,000,000 may be transferred to the ``Economic 
     Support Fund'', Department of State, for use in programs in 
     Pakistan from amounts appropriated by this Act as follows:
       ``Military Personnel, Army'', $70,000,000.
       ``National Guard Personnel, Army'', $13,183,000.
       ``Defense Health Program'', $26,817,000.
       Sec. 1314. (a) Findings Regarding Progress in Iraq, the 
     Establishment of Benchmarks to Measure That Progress, and 
     Reports to Congress.--Congress makes the following findings:
       (1) Over 145,000 American military personnel are currently 
     serving in Iraq, like thousands of others since March 2003, 
     with the bravery and professionalism consistent with the 
     finest traditions of the United States Armed Forces, and are 
     deserving of the strong support of all Americans.
       (2) Many American service personnel have lost their lives, 
     and many more have been wounded in Iraq; the American people 
     will always honor their sacrifice and honor their families.
       (3) The United States Army and Marine Corps, including 
     their Reserve components and National Guard organizations, 
     together with components of the other branches of the 
     military, are performing their missions while under enormous 
     strain from multiple, extended deployments to Iraq and 
     Afghanistan. These deployments, and those that will follow, 
     will have a lasting impact on future recruiting, retention, 
     and readiness of our Nation's all volunteer force.
       (4) Iraq is experiencing a deteriorating problem of 
     sectarian and intrasectarian violence based upon political 
     distrust and cultural differences among factions of the Sunni 
     and Shia populations.
       (5) Iraqis must reach political and economic settlements in 
     order to achieve reconciliation, for there is no military 
     solution. The failure of the Iraqis to reach such settlements 
     to support a truly unified government greatly contributes to 
     the increasing violence in Iraq.
       (6) The responsibility for Iraq's internal security and 
     halting sectarian violence rests with the sovereign 
     Government of Iraq.
       (7) In December 2006, the bipartisan Iraq Study Group 
     issued a valuable report, suggesting a comprehensive strategy 
     that includes new and enhanced diplomatic and political 
     efforts in Iraq and the region, and a change in the primary 
     mission of U.S. forces in Iraq, that will enable the United 
     States to begin to move its combat forces out of Iraq 
     responsibly.
       (8) 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.
       (9) It is essential that the sovereign Government of Iraq 
     set out measurable and achievable benchmarks and President 
     Bush said, on January 10, 2007, that ``America will change 
     our approach to help the Iraqi government as it works to meet 
     these benchmarks''.
       (10) As reported by Secretary of State Rice, Iraq's Policy 
     Committee on National Security agreed upon a set of 
     political, security, and economic benchmarks and an 
     associated timeline in September 2006 that were: (A) 
     reaffirmed by Iraq's Presidency Council on October 6, 2006; 
     (B) referenced by the Iraq Study Group; and (C) posted on the 
     President of Iraq's Web site.
       (11) On April 21, 2007, Secretary of Defense Robert Gates 
     stated that ``our [American] commitment to Iraq is long-term, 
     but it is not a commitment to have our young men and women 
     patrolling Iraq's streets open-endedly'' and that ``progress 
     in reconciliation will be an important element of our 
     evaluation''.
       (12) The President's January 10, 2007, address had three 
     components: political, military, and economic. Given that 
     significant time has passed since his statement, and 
     recognizing the overall situation is ever changing, Congress 
     must have timely reports to evaluate and execute its 
     constitutional oversight responsibilities.
       (b) Conditioning of Future United States Strategy in Iraq 
     on the Iraqi Government's Record of Performance on Its 
     Benchmarks.--
       (1) In general.--
       (A) The United States strategy in Iraq, hereafter, shall be 
     conditioned on the Iraqi government meeting benchmarks, as 
     told to members of Congress by the President, the Secretary 
     of State, the Secretary of Defense, and the Chairman of the 
     Joint Chiefs of Staff, and reflected in the Iraqi 
     Government's commitments to the United States, and to the 
     international community, including:
       (i) Forming a Constitutional Review Committee and then 
     completing the constitutional review.
       (ii) Enacting and implementing legislation on de-
     Baathification.
       (iii) Enacting and implementing legislation to ensure the 
     equitable distribution of hydrocarbon resources of the people 
     of Iraq without regard to the sect or ethnicity of 
     recipients, and enacting and implementing legislation to 
     ensure that the energy resources of Iraq benefit Sunni Arabs, 
     Shia Arabs, Kurds, and other Iraqi citizens in an equitable 
     manner.
       (iv) Enacting and implementing legislation on procedures to 
     form semi-autonomous regions.
       (v) Enacting and implementing legislation establishing an 
     Independent High Electoral Commission, provincial elections 
     law, provincial council authorities, and a date for 
     provincial elections.
       (vi) Enacting and implementing legislation addressing 
     amnesty.
       (vii) Enacting and implementing legislation establishing a 
     strong militia disarmament program to ensure that such 
     security forces are accountable only to the central 
     government and loyal to the Constitution of Iraq.
       (viii) Establishing supporting political, media, economic, 
     and services committees in support of the Baghdad Security 
     Plan.
       (ix) Providing three trained and ready Iraqi brigades to 
     support Baghdad operations.
       (x) Providing Iraqi commanders with all authorities to 
     execute this plan and to make tactical and operational 
     decisions, in consultation with U.S commanders, without 
     political intervention, to include the authority to pursue 
     all extremists, including Sunni insurgents and Shiite 
     militias.
       (xi) Ensuring that the Iraqi Security Forces are providing 
     even handed enforcement of the law.
       (xii) Ensuring that, according to President Bush, Prime 
     Minister Maliki said ``the Baghdad security plan will not 
     provide a safe haven for any outlaws, regardless of [their] 
     sectarian or political affiliation''.
       (xiii) Reducing the level of sectarian violence in Iraq and 
     eliminating militia control of local security.
       (xiv) Establishing all of the planned joint security 
     stations in neighborhoods across Baghdad.
       (xv) Increasing the number of Iraqi security forces units 
     capable of operating independently.
       (xvi) Ensuring that the rights of minority political 
     parties in the Iraqi legislature are protected.
       (xvii) Allocating and spending $10 billion in Iraqi 
     revenues for reconstruction projects, including delivery of 
     essential services, on an equitable basis.
       (xviii) Ensuring that Iraq's political authorities are not 
     undermining or making false accusations against members of 
     the Iraqi Security Forces.
       (B) The President shall submit reports to Congress on how 
     the sovereign Government of Iraq is, or is not, achieving 
     progress towards accomplishing the aforementioned benchmarks, 
     and shall advise the Congress on how that assessment 
     requires, or does not require, changes to the strategy 
     announced on January 10, 2007.
       (2) Reports required.--

[[Page 14011]]

       (A) The President shall submit an initial report, in 
     classified and unclassified format, to the Congress, not 
     later than July 15, 2007, assessing the status of each of the 
     specific benchmarks established above, and declaring, in his 
     judgment, whether satisfactory progress toward meeting these 
     benchmarks is, or is not, being achieved.
       (B) The President, having consulted with the Secretary of 
     State, the Secretary of Defense, the Commander, Multi-
     National Forces-Iraq, the United States Ambassador to Iraq, 
     and the Commander of U.S. Central Command, will prepare the 
     report and submit the report to Congress.
       (C) If the President's assessment of any of the specific 
     benchmarks established above is unsatisfactory, the President 
     shall include in that report a description of such revisions 
     to the political, economic, regional, and military components 
     of the strategy, as announced by the President on January 10, 
     2007. In addition, the President shall include in the report, 
     the advisability of implementing such aspects of the 
     bipartisan Iraq Study Group, as he deems appropriate.
       (D) The President shall submit a second report to the 
     Congress, not later than September 15, 2007, following the 
     same procedures and criteria outlined above.
       (E) The reporting requirement detailed in section 1227 of 
     the National Defense Authorization Act for Fiscal Year 2006 
     is waived from the date of the enactment of this Act through 
     the period ending September 15, 2007.
       (3) Testimony before congress.--Prior to the submission of 
     the President's second report on September 15, 2007, and at a 
     time to be agreed upon by the leadership of the Congress and 
     the Administration, the United States Ambassador to Iraq and 
     the Commander, Multi-National Forces Iraq will be made 
     available to testify in open and closed sessions before the 
     relevant committees of the Congress.
       (c) Limitations on Availability of Funds.--
       (1) Limitation.--No funds appropriated or otherwise made 
     available for the ``Economic Support Fund'' and available for 
     Iraq may be obligated or expended unless and until the 
     President of the United States certifies in the report 
     outlined in subsection (b)(2)(A) and makes a further 
     certification in the report outlined in subsection (b)(2)(D) 
     that Iraq is making progress on each of the benchmarks set 
     forth in subsection (b)(1)(A).
       (2) Waiver authority.--The President may waive the 
     requirements of this section if he submits to Congress a 
     written certification setting forth a detailed justification 
     for the waiver, which shall include a detailed report 
     describing the actions being taken by the United States to 
     bring the Iraqi government into compliance with the 
     benchmarks set forth in subsection (b)(1)(A). The 
     certification shall be submitted in unclassified form, but 
     may include a classified annex.
       (d) Redeployment of U.S. Forces From Iraq.--The President 
     of the United States, in respecting the sovereign rights of 
     the nation of Iraq, shall direct the orderly redeployment of 
     elements of U.S. forces from Iraq, if the components of the 
     Iraqi government, acting in strict accordance with their 
     respective powers given by the Iraqi Constitution, reach a 
     consensus as recited in a resolution, directing a 
     redeployment of U.S. forces.
       (e) Independent Assessments.--
       (1) Assessment by the comptroller general.--
       (A) Not later than September 1, 2007, the Comptroller 
     General of the United States shall submit to Congress an 
     independent report setting forth--
       (i) the status of the achievement of the benchmarks 
     specified in subsection (b)(1)(A); and
       (ii) the Comptroller General's assessment of whether or not 
     each such benchmark has been met.
       (2) Assessment of the capabilities of iraqi security 
     forces.--
       (A) In general.--There is hereby authorized to be 
     appropriated for the Department of Defense, $750,000, that 
     the Department, in turn, will 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:
       (i) 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 to 18 months, and bringing an end to sectarian 
     violence to achieve national reconciliation.
       (ii) The training, equipping, command, control and 
     intelligence capabilities, and logistics capacity of the ISF.
       (iii) The likelihood that, given the ISF's record of 
     preparedness to date, following years of training and 
     equipping by U.S. forces, the continued support of U.S. 
     troops will contribute to the readiness of the ISF to fulfill 
     the missions outlined in clause (i).
       (B) Report.--Not later than 120 days after the enactment 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/International 
     Relations, and Intelligence.

                               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, to remain available until 
     expended.

                               CHAPTER 5

                         DEPARTMENT OF DEFENSE

                      Military Construction, Army

       For an additional amount for ``Military Construction, 
     Army'', $1,255,890,000, to remain available until September 
     30, 2008: Provided, That notwithstanding any other provision 
     of law, such funds may be obligated and expended to carry out 
     planning and design and military construction projects not 
     otherwise authorized by law: Provided further, That of the 
     funds provided under this heading, not to exceed $173,700,000 
     shall be available for study, planning, design, and architect 
     and engineer services: Provided further, That of the funds 
     made available under this heading, $369,690,000 shall not be 
     obligated or expended until the Secretary of Defense submits 
     a detailed report explaining how military road construction 
     is coordinated with NATO and coalition nations: Provided 
     further, That of the funds made available under this heading, 
     $401,700,000 shall not be obligated or expended until the 
     Secretary of Defense submits a detailed stationing plan to 
     support Army end-strength growth to the Committees on 
     Appropriations of the House of Representatives and the 
     Senate: Provided further, That of the funds provided under 
     this heading, $274,800,000 shall not be obligated or expended 
     until the Secretary of Defense certifies that none of the 
     funds are to be used for the purpose of providing facilities 
     for the permanent basing of United States military personnel 
     in Iraq.

              Military Construction, Navy and Marine Corps

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

                    Military Construction, Air Force

       For an additional amount for ``Military Construction, Air 
     Force'', $43,300,000, to remain available until September 30, 
     2008: Provided, That notwithstanding any other provision of 
     law, such funds may be obligated and expended to carry out 
     planning and design and military construction projects not 
     otherwise authorized by law: Provided further, That of the 
     funds provided under this heading, not to exceed $3,000,000 
     shall be available for study, planning, design, and architect 
     and engineer services.

                    GENERAL PROVISION--THIS CHAPTER

       Sec. 1501. (a) Funds provided in this Act for the following 
     accounts shall be made available for programs under the 
     conditions contained in the language of the joint explanatory 
     statement of managers accompanying the conference report on 
     H.R. 1591 of the 110th Congress (H. Rept. 110-107):
       ``Military Construction, Army''.
       ``Military Construction, Navy and Marine Corps''.
       ``Military Construction, Air Force''.
       (b) The Secretary of Defense shall submit all reports 
     requested in House Report 110-60 and Senate Report 110-37 to 
     the Committees on Appropriations of both Houses of Congress.

                               CHAPTER 6

                 DEPARTMENT OF STATE AND RELATED AGENCY

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs


                    DIPLOMATIC AND CONSULAR PROGRAMS

                     (INCLUDING TRANSFER OF FUNDS)

       For an additional amount for ``Diplomatic and Consular 
     Programs'', $836,555,000, to remain available until September 
     30, 2008, of which $64,655,000 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 20 percent of the 
     amount available for Iraq operations shall not be obligated 
     until the Committees on Appropriations receive and approve a 
     detailed plan for expenditure, prepared by the Secretary of 
     State, and submitted within 60 days after the date of 
     enactment of this Act: Provided further, That of the amount 
     made available under this heading for Iraq, not to exceed 
     $20,000,000 may be transferred to, and merged with, funds in 
     the ``Emergencies in the Diplomatic and Consular Service'' 
     appropriations account, to be available only for terrorism 
     rewards.


                    OFFICE OF THE INSPECTOR GENERAL

                     (INCLUDING TRANSFER OF FUNDS)

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

[[Page 14012]]

     such amount shall be transferred to the Special Inspector 
     General for Iraq Reconstruction for reconstruction oversight.


               Educational and Cultural Exchange Programs

       For an additional amount for ``Educational and Cultural 
     Exchange Programs'', $20,000,000, to remain available until 
     expended.

                      International Organizations


        Contributions for International Peacekeeping Activities

       For an additional amount for ``Contributions for 
     International Peacekeeping Activities'', $283,000,000, to 
     remain available until September 30, 2008.

                             RELATED AGENCY

                    Broadcasting Board of Governors


                 International Broadcasting Operations

       For an additional amount for ``International Broadcasting 
     Operations'' for activities related to broadcasting to the 
     Middle East, $10,000,000, to remain available until September 
     30, 2008.

                     BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President


           United States Agency for International Development

                Child Survival and Health Programs Fund

                     (including transfer of funds)

       For an additional amount for ``Child Survival and Health 
     Programs Fund'', $161,000,000, to remain available until 
     September 30, 2008: Provided, That notwithstanding any other 
     provision of law, if the President determines and reports to 
     the Committees on Appropriations that the human-to-human 
     transmission of the avian influenza virus is efficient and 
     sustained, and is spreading internationally, funds made 
     available under the heading ``Millennium Challenge 
     Corporation'' and ``Global HIV/AIDS Initiative'' in prior 
     Acts making appropriations for foreign operations, export 
     financing, and related programs may be transferred to, and 
     merged with, funds made available under this heading to 
     combat avian influenza: Provided further, That funds made 
     available pursuant to the authority of the previous proviso 
     shall be subject to the regular notification procedures of 
     the Committees on Appropriations.


              International Disaster and Famine Assistance

       For an additional amount for ``International Disaster and 
     Famine Assistance'', $105,000,000, to remain available until 
     expended.


   Operating Expenses of the United States Agency for International 
                              Development

       For an additional amount for ``Operating Expenses of the 
     United States Agency for International Development'', 
     $5,700,000, to remain available until September 30, 2008.

                  Other Bilateral Economic Assistance


                         Economic Support Fund

       For an additional amount for ``Economic Support Fund'', 
     $2,502,000,000, to remain available until September 30, 2008: 
     Provided, That of the funds appropriated under this heading, 
     $57,400,000 shall be made available to nongovernmental 
     organizations in Iraq for economic and social development 
     programs and activities in areas of conflict: Provided 
     further, That the responsibility for policy decisions and 
     justifications for the use of funds appropriated by the 
     previous proviso shall be the responsibility of the United 
     States Chief of Mission in Iraq: Provided further, That none 
     of the funds appropriated under this heading in this Act or 
     in prior Acts making appropriations for foreign operations, 
     export financing, and related programs may be made available 
     for the Political Participation Fund and the National 
     Institutions Fund: Provided further, That of the funds made 
     available under the heading ``Economic Support Fund'' in 
     Public Law 109-234 for Iraq to promote democracy, rule of law 
     and reconciliation, $2,000,000 should be made available for 
     the United States Institute of Peace for programs and 
     activities in Afghanistan to remain available until September 
     30, 2008.


          Assistance for Eastern Europe and the Baltic States

       For an additional amount for ``Assistance for Eastern 
     Europe and the Baltic States'', $214,000,000, to remain 
     available until September 30, 2008, for assistance for 
     Kosovo.

                          Department of State


                             Democracy Fund

       For an additional amount for ``Democracy Fund'', 
     $255,000,000, to remain available until September 30, 2008: 
     Provided, That of the funds appropriated under this heading, 
     not less than $190,000,000 shall be made available for the 
     Human Rights and Democracy Fund of the Bureau of Democracy, 
     Human Rights, and Labor, Department of State, and not less 
     than $60,000,000 shall be made available for the United 
     States Agency for International Development, for democracy, 
     human rights and rule of law programs in Iraq: Provided 
     further, That not later than 60 days after enactment of this 
     Act, the Secretary of State shall submit a report to the 
     Committees on Appropriations describing a comprehensive, 
     long-term strategy, with goals and expected results, for 
     strengthening and advancing democracy in Iraq.


          International Narcotics Control and Law Enforcement

       For an additional amount for ``International Narcotics 
     Control and Law Enforcement'', $210,000,000, to remain 
     available until September 30, 2008.


                    Migration and Refugee Assistance

       For an additional amount for ``Migration and Refugee 
     Assistance'', $71,500,000, to remain available until 
     September 30, 2008, of which not less than $5,000,000 shall 
     be made available to rescue Iraqi scholars.


     United States Emergency Refugee and Migration Assistance Fund

       For an additional amount for ``United States Emergency 
     Refugee and Migration Assistance Fund'', $30,000,000, 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

       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.


                        Peacekeeping Operations

       For an additional amount for ``Peacekeeping Operations'', 
     $190,000,000, to remain available until September 30, 2008: 
     Provided, That not later than 30 days after enactment of this 
     Act and every 30 days thereafter until September 30, 2008, 
     the Secretary of State shall submit a report to the 
     Committees on Appropriations detailing the obligation and 
     expenditure of funds made available under this heading in 
     this Act and in prior Acts making appropriations for foreign 
     operations, export financing, and related programs.

                    GENERAL PROVISION--THIS CHAPTER


                         authorization of funds

       Sec. 1601. Funds appropriated by this Act 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)).

                  TITLE II--HURRICANE KATRINA RECOVERY

                    DEPARTMENT OF HOMELAND SECURITY

                  Federal Emergency Management Agency


                            DISASTER RELIEF

       For an additional amount for ``Disaster Relief'', 
     $3,400,000,000, to remain available until expended.

  TITLE III--ADDITIONAL DEFENSE, INTERNATIONAL AFFAIRS, AND HOMELAND 
                          SECURITY PROVISIONS

                               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, $100,000,000, to remain available until expended.

                    GENERAL PROVISION--THIS CHAPTER

       Sec. 3101. There is hereby appropriated $10,000,000 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

                    Federal Bureau of Investigation


                         Salaries and Expenses

       For an additional amount for ``Salaries and Expenses'', 
     $139,740,000, of which $129,740,000 is to remain available 
     until September 30, 2008 and $10,000,000 is to remain 
     available until expended to implement corrective actions in 
     response to the findings and recommendations in the 
     Department of Justice Office of Inspector General report 
     entitled, ``A Review of the Federal Bureau of Investigation's 
     Use of National Security Letters'', of which $500,000 shall 
     be transferred to and merged with ``Department of Justice, 
     Office of the Inspector General''.

                    Drug Enforcement Administration


                         salaries and expenses

       For an additional amount for ``Salaries and Expenses'', 
     $3,698,000, to remain available until September 30, 2008.

                    GENERAL PROVISION--THIS CHAPTER

       Sec. 3201. Funds provided in this Act for the ``Department 
     of Justice, Federal Bureau of Investigation, Salaries and 
     Expenses'', shall be made available according to the language 
     relating to such account in the joint explanatory statement 
     accompanying the conference report on H.R. 1591 of the 110th 
     Congress (H. Rept. 110-107).

[[Page 14013]]



                               CHAPTER 3

                    DEPARTMENT OF DEFENSE--MILITARY

                           MILITARY PERSONNEL

                        Military Personnel, Army

       For an additional amount for ``Military Personnel, Army'', 
     $343,080,000.

                        Military Personnel, Navy

       For an additional amount for ``Military Personnel, Navy'', 
     $408,283,000.

                    Military Personnel, Marine Corps

       For an additional amount for ``Military Personnel, Marine 
     Corps'', $108,956,000.

                     Military Personnel, Air Force

       For an additional amount for ``Military Personnel, Air 
     Force'', $139,300,000.

                        Reserve Personnel, Navy

       For an additional amount for ``Reserve Personnel, Navy'', 
     $8,223,000.

                    Reserve Personnel, Marine Corps

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

                      Reserve Personnel, Air Force

       For an additional amount for ``Reserve Personnel, Air 
     Force'', $6,073,000.

                     National Guard Personnel, Army

       For an additional amount for ``National Guard Personnel, 
     Army'', $109,261,000.

                  National Guard Personnel, Air Force

       For an additional amount for ``National Guard Personnel, 
     Air Force'', $19,533,000.

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Navy

       For an additional amount for ``Operation and Maintenance, 
     Navy'', $24,000,000.

                    Strategic Reserve Readiness Fund


                     (including transfer of funds)

       In addition to amounts provided in this or any other Act, 
     for training, operations, repair of equipment, purchases of 
     equipment, and other expenses related to improving the 
     readiness of non-deployed United States military forces, 
     $1,615,000,000, to remain available until September 30, 2009; 
     of which $1,000,000,000 shall be transferred to ``National 
     Guard and Reserve Equipment'' for the purchase of equipment 
     for the Army National Guard; and of which $615,000,000 shall 
     be transferred by the Secretary of Defense only to 
     appropriations for military personnel, operation and 
     maintenance, procurement, and defense working capital funds 
     to accomplish the purposes provided herein: Provided, That 
     the funds transferred shall be merged with and shall be 
     available for the same purposes and for the same time period 
     as the appropriation to which transferred: Provided further, 
     That the Secretary of Defense shall, not fewer than 30 days 
     prior to making transfers under this authority, notify the 
     congressional defense committees in writing of the details of 
     any such transfers made pursuant to this authority: Provided 
     further, That funds shall be transferred to the appropriation 
     accounts not later than 120 days after the enactment of this 
     Act: Provided further, That the transfer authority provided 
     in this paragraph is in addition to any other transfer 
     authority available to the Department of Defense: Provided 
     further, That upon a determination that all or part of the 
     funds transferred from this appropriation are not necessary 
     for the purposes provided herein, such amounts may be 
     transferred back to this appropriation.

                              PROCUREMENT

                        Other Procurement, Army

       For an additional amount for ``Other Procurement, Army'', 
     $1,217,000,000, to remain available until September 30, 2009: 
     Provided, That the amount provided under this heading shall 
     be available only for the purchase of mine resistant ambush 
     protected vehicles.

                        Other Procurement, Navy

       For an additional amount for ''Other Procurement, Navy'', 
     $130,040,000, to remain available until September 30, 2009: 
     Provided, That the amount provided under this heading shall 
     be available only for the purchase of mine resistant ambush 
     protected vehicles.

                       Procurement, Marine Corps

       For an additional amount for ``Procurement, Marine Corps'', 
     $1,263,360,000, to remain available until September 30, 2009: 
     Provided, That the amount provided under this heading shall 
     be available only for the purchase of mine resistant ambush 
     protected vehicles.

                      Other Procurement, Air Force

       For an additional amount for ``Other Procurement, Air 
     Force'', $139,040,000, to remain available until September 
     30, 2009: Provided, That the amount provided under this 
     heading shall be available only for the purchase of mine 
     resistant ambush protected vehicles.

                       Procurement, Defense-Wide

       For an additional amount for ``Procurement, Defense-Wide'', 
     $258,860,000, to remain available until September 30, 2009: 
     Provided, That the amount provided under this heading shall 
     be available only for the purchase of mine resistant ambush 
     protected vehicles.

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program


                     (including transfer of funds)

       For an additional amount for ``Defense Health Program'', 
     $1,878,706,000; of which $1,429,006,000 shall be for 
     operation and maintenance, including $600,000,000 which shall 
     be available for the treatment of traumatic brain injury and 
     post-traumatic stress disorder and remain available until 
     September 30, 2008; of which $118,000,000 shall be for 
     procurement, to remain available until September 30, 2009; 
     and of which $331,700,000 shall be for research, development, 
     test and evaluation, to remain available until September 30, 
     2008: Provided, That if the Secretary of Defense determines 
     that funds made available in this paragraph for the treatment 
     of traumatic brain injury and post-traumatic stress disorder 
     are in excess of the requirements of the Department of 
     Defense, the Secretary may transfer amounts in excess of that 
     requirement to the Department of Veterans Affairs to be 
     available only for the same purpose.

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 3301. 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. 3302. 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. 3303. (a) Report by Secretary of Defense.--Not later 
     than 30 days after the date of the enactment of this Act, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report that contains individual 
     transition readiness assessments by unit of Iraq and Afghan 
     security forces. The Secretary of Defense shall submit to the 
     congressional defense committees updates of the report 
     required by this subsection every 90 days after the date of 
     the submission of the report until October 1, 2008. The 
     report and updates of the report required by this subsection 
     shall be submitted in classified form.
       (b) Report by OMB.--
       (1) The Director of the Office of Management and Budget, in 
     consultation with the Secretary of Defense; the Commander, 
     Multi-National Security Transition Command--Iraq; and the 
     Commander, Combined Security Transition Command--Afghanistan, 
     shall submit to the congressional defense committees not 
     later than 120 days after the date of the enactment of this 
     Act and every 90 days thereafter a report on the proposed use 
     of all funds under each of the headings ``Iraq Security 
     Forces Fund'' and ``Afghanistan Security Forces Fund'' on a 
     project-by-project basis, for which the obligation of funds 
     is anticipated during the three-month period from such date, 
     including estimates by the commanders referred to in this 
     paragraph of the costs required to complete each such 
     project.
       (2) The report required by this subsection shall include 
     the following:
       (A) The use of all funds on a project-by-project basis for 
     which funds appropriated under the headings referred to in 
     paragraph (1) were obligated prior to the submission of the 
     report, including estimates by the commanders referred to in 
     paragraph (1) of the costs to complete each project.
       (B) The use of all funds on a project-by-project basis for 
     which funds were appropriated under the headings referred to 
     in paragraph (1) in prior appropriations Acts, or for which 
     funds were made available by transfer, reprogramming, or 
     allocation from other headings in prior appropriations Acts, 
     including estimates by the commanders referred to in 
     paragraph (1) of the costs to complete each project.
       (C) An estimated total cost to train and equip the Iraq and 
     Afghan security forces, disaggregated by major program and 
     sub-elements by force, arrayed by fiscal year.
       (c) Notification.--The Secretary of Defense shall notify 
     the congressional defense committees of any proposed new 
     projects or transfers of funds between sub-activity groups in 
     excess of $15,000,000 using funds appropriated by this Act 
     under the headings ``Iraq Security Forces Fund'' and 
     ``Afghanistan Security Forces Fund''.
       Sec. 3304. None of the funds appropriated or otherwise made 
     available by this Act may be obligated or expended to provide 
     award fees to any defense contractor contrary to the 
     provisions of section 814 of the National Defense 
     Authorization Act, Fiscal Year 2007 (Public Law 109-364).
       Sec. 3305. Not more than 85 percent of the funds 
     appropriated to the Department of Defense in this Act for 
     operation and maintenance shall be available for obligation 
     unless and until the Secretary of Defense submits to the 
     congressional defense committees a report detailing the use 
     of Department of Defense funded service contracts conducted 
     in the theater of operations in support of United States 
     military and reconstruction activities in Iraq and 
     Afghanistan: Provided, That the report shall provide detailed

[[Page 14014]]

     information specifying the number of contracts and contract 
     costs used to provide services in fiscal year 2006, with sub-
     allocations by major service categories: Provided further, 
     That the report also shall include estimates of the number of 
     contracts to be executed in fiscal year 2007: Provided 
     further, That the report shall include the number of 
     contractor personnel in Iraq and Afghanistan funded by the 
     Department of Defense: Provided further, That the report 
     shall be submitted to the congressional defense committees 
     not later than August 1, 2007.
       Sec. 3306. Section 1477 of title 10, United States Code, is 
     amended--
       (1) in subsection (a), by striking ``A death gratuity'' and 
     inserting ``Subject to subsection (d), a death gratuity'';
       (2) by redesignating subsection (d) as subsection (e) and, 
     in such subsection, by striking ``If an eligible survivor 
     dies before he'' and inserting ``If a person entitled to all 
     or a portion of a death gratuity under subsection (a) or (d) 
     dies before the person''; and
       (3) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) During the period beginning on the date of the 
     enactment of this subsection and ending on September 30, 
     2007, a person covered by section 1475 or 1476 of this title 
     may designate another person to receive not more than 50 
     percent of the amount payable under section 1478 of this 
     title. The designation shall indicate the percentage of the 
     amount, to be specified only in 10 percent increments up to 
     the maximum of 50 percent, that the designated person may 
     receive. The balance of the amount of the death gratuity 
     shall be paid to or for the living survivors of the person 
     concerned in accordance with paragraphs (1) through (5) of 
     subsection (a).''.
       Sec. 3307. (a) Inspection of Military Medical Treatment 
     Facilities, Military Quarters Housing Medical Hold Personnel, 
     and Military Quarters Housing Medical Holdover Personnel.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act, and annually thereafter, the 
     Secretary of Defense shall inspect each facility of the 
     Department of Defense as follows:
       (A) Each military medical treatment facility.
       (B) Each military quarters housing medical hold personnel.
       (C) Each military quarters housing medical holdover 
     personnel.
       (2) Purpose.--The purpose of an inspection under this 
     subsection is to ensure that the facility or quarters 
     concerned meets acceptable standards for the maintenance and 
     operation of medical facilities, quarters housing medical 
     hold personnel, or quarters housing medical holdover 
     personnel, as applicable.
       (b) Acceptable Standards.--For purposes of this section, 
     acceptable standards for the operation and maintenance of 
     military medical treatment facilities, military quarters 
     housing medical hold personnel, or military quarters housing 
     medical holdover personnel are each of the following:
       (1) Generally accepted standards for the accreditation of 
     medical facilities, or for facilities used to quarter 
     individuals with medical conditions that may require medical 
     supervision, as applicable, in the United States.
       (2) Where appropriate, standards under the Americans with 
     Disabilities Act of 1990 (42 U.S.C. 12101 et seq.).
       (c) Additional Inspections on Identified Deficiencies.--
       (1) In general.--In the event a deficiency is identified 
     pursuant to subsection (a) at a facility or quarters 
     described in paragraph (1) of that subsection--
       (A) the commander of such facility or quarters, as 
     applicable, shall submit to the Secretary a detailed plan to 
     correct the deficiency; and
       (B) the Secretary shall reinspect such facility or 
     quarters, as applicable, not less often than once every 180 
     days until the deficiency is corrected.
       (2) Construction with other inspections.--An inspection of 
     a facility or quarters under this subsection is in addition 
     to any inspection of such facility or quarters under 
     subsection (a).
       (d) Reports on Inspections.--A complete copy of the report 
     on each inspection conducted under subsections (a) and (c) 
     shall be submitted in unclassified form to the applicable 
     military medical command and to the congressional defense 
     committees.
       (e) Report on Standards.--In the event no standards for the 
     maintenance and operation of military medical treatment 
     facilities, military quarters housing medical hold personnel, 
     or military quarters housing medical holdover personnel exist 
     as of the date of the enactment of this Act, or such 
     standards as do exist do not meet acceptable standards for 
     the maintenance and operation of such facilities or quarters, 
     as the case may be, the Secretary shall, not later than 30 
     days after that date, submit to the congressional defense 
     committees a report setting forth the plan of the Secretary 
     to ensure--
       (1) the adoption by the Department of standards for the 
     maintenance and operation of military medical facilities, 
     military quarters housing medical hold personnel, or military 
     quarters housing medical holdover personnel, as applicable, 
     that meet--
       (A) acceptable standards for the maintenance and operation 
     of such facilities or quarters, as the case may be; and
       (B) where appropriate, standards under the Americans with 
     Disabilities Act of 1990; and
       (2) the comprehensive implementation of the standards 
     adopted under paragraph (1) at the earliest date practicable.
       Sec. 3308. (a) Award of Medal of Honor to Woodrow W. Keeble 
     for Valor During Korean War.--Notwithstanding any applicable 
     time limitation under section 3744 of title 10, United States 
     Code, or any other time limitation with respect to the award 
     of certain medals to individuals who served in the Armed 
     Forces, the President may award to Woodrow W. Keeble the 
     Medal of Honor under section 3741 of that title for the acts 
     of valor described in subsection (b).
       (b) Acts of Valor.--The acts of valor referred to in 
     subsection (a) are the acts of Woodrow W. Keeble, then-acting 
     platoon leader, carried out on October 20, 1951, during the 
     Korean War.


                          (TRANSFER OF FUNDS)

       Sec. 3309. Of the amount appropriated under the heading 
     ``Other Procurement, Army'', in title III of division A of 
     Public Law 109-148, $6,250,000 shall be transferred to 
     ``Military Construction, Army''.
       Sec. 3310. The Secretary of Defense, notwithstanding any 
     other provision of law, acting through the Office of Economic 
     Adjustment or the Office of Dependents Education of the 
     Department of Defense, shall use not less than $10,000,000 of 
     funds made available in this Act under the heading 
     ``Operation and Maintenance, Defense-Wide'' to make grants 
     and supplement other Federal funds to provide special 
     assistance to local education agencies.
       Sec. 3311. Congress finds that United States military units 
     should not enter into combat unless they are fully capable of 
     performing their assigned mission. Congress further finds 
     that this is the policy of the Department of Defense. The 
     Secretary of Defense shall notify Congress of any changes to 
     this policy.

                               CHAPTER 4

                          DEPARTMENT OF ENERGY

                    ATOMIC ENERGY DEFENSE ACTIVITIES

                National Nuclear Security Administration


                    Defense Nuclear Nonproliferation

       For an additional amount for ``Defense Nuclear 
     Nonproliferation'', $72,000,000 is provided for the 
     International Nuclear Materials Protection and Cooperation 
     Program, to remain available until expended.

                    GENERAL PROVISION--THIS CHAPTER


                          (TRANSFER OF FUNDS)

       Sec. 3401. The Administrator of the National Nuclear 
     Security Administration is authorized to transfer up to 
     $1,000,000 from Defense Nuclear Nonproliferation to the 
     Office of the Administrator during fiscal year 2007 
     supporting nuclear nonproliferation activities.

                               CHAPTER 5

                    DEPARTMENT OF HOMELAND SECURITY

                        Analysis and Operations

       For an additional amount for ``Analysis and Operations'', 
     $8,000,000, to remain available until September 30, 2008, to 
     be used for support of the State and Local Fusion Center 
     program: Provided, That starting July 1, 2007, the Secretary 
     of Homeland Security shall submit quarterly reports to the 
     Committees on Appropriations of the Senate and the House of 
     Representatives detailing the information required in House 
     Report 110-107.

              United States Customs and Border Protection


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

       For an additional amount for ``Salaries and Expenses'', 
     $75,000,000, to remain available until September 30, 2008, to 
     support hiring not less than 400 additional United States 
     Customs and Border Protection Officers, as well as additional 
     intelligence analysts, trade specialists, and support staff 
     to target and screen U.S.-bound cargo on the Northern Border, 
     at overseas locations, and at the National Targeting Center; 
     to support hiring additional staffing required for Northern 
     Border Air and Marine operations; to implement Security and 
     Accountability For Every Port Act of 2006 (Public Law 109-
     347) requirements; to advance the goals of the Secure Freight 
     Initiative to improve significantly the ability of United 
     States Customs and Border Protection to target and analyze 
     U.S.-bound cargo containers; to expand overseas screening and 
     physical inspection capacity for U.S.-bound cargo; to procure 
     and integrate non-intrusive inspection equipment into 
     inspection and radiation detection operations; and to improve 
     supply chain security, to include enhanced analytic and 
     targeting systems using data collected via commercial and 
     government technologies and databases: Provided, That up to 
     $3,000,000 shall be transferred to Federal Law Enforcement 
     Training Center ``Salaries and Expenses'', for basic training 
     costs associated with the additional personnel funded under 
     this heading: Provided further, That the Secretary shall 
     submit an expenditure plan for the use of these funds to the 
     Committees on Appropriations of the Senate and the House of 
     Representatives no later than 30 days after enactment of this 
     Act: Provided further, That the Secretary shall notify the 
     Committees on Appropriations of the Senate and the House of 
     Representatives immediately if United States Customs and 
     Border Protection does not expect to achieve its plan of 
     having at least 1,158 Border Patrol agents permanently 
     deployed to the Northern Border by the end of fiscal year 
     2007, and explain in detail the reasons for any shortfall.

[[Page 14015]]




 Air and Marine Interdiction, Operations, Maintenance, and Procurement

       For an additional amount for ``Air and Marine Interdiction, 
     Operations, Maintenance, and Procurement'', for air and 
     marine operations on the Northern Border, including the final 
     Northern Border air wing, $75,000,000, to remain available 
     until September 30, 2008, to accelerate planned deployment of 
     Northern Border Air and Marine operations, including 
     establishment of the final Northern Border airwing, 
     procurement of assets such as fixed wing aircraft, 
     helicopters, unmanned aerial systems, marine and riverine 
     vessels, and other equipment, relocation of aircraft, site 
     acquisition, and the design and building of facilities: 
     Provided, That the Secretary shall submit an expenditure plan 
     for the use of these funds to the Committees on 
     Appropriations of the Senate and the House of Representatives 
     no later than 30 days after enactment of this Act.

           United States Immigration and Customs Enforcement


                         Salaries and Expenses

       For an additional amount for ``Salaries and Expenses'', 
     $6,000,000, to remain available until September 30, 2008; of 
     which $5,000,000 shall be for the creation of a security 
     advisory opinion unit within the Visa Security Program; and 
     of which $1,000,000 shall be for the Human Smuggling and 
     Trafficking Center.

                 Transportation Security Administration


                           Aviation Security

       For an additional amount for ``Aviation Security'', 
     $390,000,000; of which $285,000,000 shall be for procurement 
     and installation of checked baggage explosives detection 
     systems, to remain available until expended; of which 
     $25,000,000 shall be for checkpoint explosives detection 
     equipment and pilot screening technologies, to remain 
     available until expended; and of which $80,000,000 shall be 
     for air cargo security, to remain available until September 
     30, 2009: Provided, That of the air cargo funding made 
     available under this heading, the Transportation Security 
     Administration shall hire no fewer than 150 additional air 
     cargo inspectors to establish a more robust enforcement and 
     compliance program; complete air cargo vulnerability 
     assessments for all Category X airports; expand the National 
     Explosives Detection Canine Program by no fewer than 170 
     additional canine teams, including the use of agency led 
     teams; pursue canine screening methods utilized 
     internationally that focus on air samples; and procure and 
     install explosive detection systems, explosive trace 
     machines, and other technologies to screen air cargo: 
     Provided further, That no later than 90 days after the date 
     of enactment of this Act, the Secretary shall provide the 
     Committees on Appropriations of the Senate and the House of 
     Representatives an expenditure plan detailing how the 
     Transportation Security Administration will utilize funding 
     provided under this heading.


                          Federal Air Marshals

       For an additional amount for ``Federal Air Marshals'', 
     $5,000,000, to remain available until September 30, 2008: 
     Provided, That no later than 30 days after enactment of this 
     Act, the Secretary shall provide the Committees on 
     Appropriations of the Senate and the House of Representatives 
     a report on how these additional funds will be allocated.

                    National Protection and Programs


           Infrastructure Protection and Information Security

       For an additional amount for ``Infrastructure Protection 
     and Information Security'', $24,000,000, to remain available 
     until September 30, 2008; of which $12,000,000 shall be for 
     development of State and local interoperability plans as 
     discussed in House Report 110-107; and of which $12,000,000 
     shall be for implementation of chemical facility security 
     regulations: Provided, That within 30 days of the date of 
     enactment of this Act the Secretary of Homeland Security 
     shall submit to the Committees on Appropriations of the 
     Senate and the House of Representatives detailed expenditure 
     plans for execution of these funds: Provided further, That 
     within 30 days of the date of enactment of this Act, the 
     Secretary of Homeland Security shall submit to the Committees 
     on Appropriations of the Senate and the House of 
     Representatives a report on the computer forensics training 
     center detailing the information required in House Report 
     110-107.

                        Office of Health Affairs

       For expenses for the ``Office of Health Affairs'', 
     $8,000,000, to remain available until September 30, 2008: 
     Provided, That of the amount made available under this 
     heading, $5,500,000 is for nuclear event public health 
     assessment and planning: Provided further, That the Office of 
     Health Affairs shall conduct a nuclear event public health 
     assessment as described in House Report 110-107: Provided 
     further, That none of the funds made available under this 
     heading may be obligated until the Committees on 
     Appropriations of the Senate and the House of Representatives 
     receive a plan for expenditure.

                  Federal Emergency Management Agency


                     Management and Administration

       For expenses for management and administration of the 
     Federal Emergency Management Agency (``FEMA''), $14,000,000, 
     to remain available until September 30, 2008: Provided, That 
     of the amount made available under this heading, $6,000,000 
     shall be for financial and information systems, $2,500,000 
     shall be for interstate mutual aid agreements, $2,500,000 
     shall be for FEMA Regional Office communication equipment, 
     $2,500,000 shall be for FEMA strike teams, and $500,000 shall 
     be for the Law Enforcement Liaison Office, the Disability 
     Coordinator and the National Advisory Council: Provided 
     further, That none of such funds made available under this 
     heading may be obligated until the Committees on 
     Appropriations of the Senate and the House of Representatives 
     receive and approve a plan for expenditure: Provided further, 
     That unobligated amounts in the ``Administrative and Regional 
     Operations'' and ``Readiness, Mitigation, Response, and 
     Recovery'' accounts shall be transferred to ``Management and 
     Administration'' and may be used for any purpose authorized 
     for such amounts and subject to limitation on the use of such 
     amounts.


                        State and Local Programs

       For an additional amount for ``State and Local Programs'', 
     $247,000,000; of which $110,000,000 shall be for port 
     security grants pursuant to section 70107(l) of title 46, 
     United States Code to be awarded by September 30, 2007, to 
     tier 1, 2, 3, and 4 ports; of which $100,000,000 shall be for 
     intercity rail passenger transportation, freight rail, and 
     transit security grants to be awarded by September 30, 2007; 
     of which $35,000,000 shall be for regional grants and 
     regional technical assistance to tier one Urban Area Security 
     Initiative cities and other participating governments for the 
     purpose of developing all-hazard regional catastrophic event 
     plans and preparedness, as described in House Report 110-107; 
     and of which $2,000,000 shall be for technical assistance for 
     operation and maintenance training on detection and response 
     equipment that must be competitively awarded: Provided, That 
     none of the funds made available under this heading may be 
     obligated for such regional grants and regional technical 
     assistance until the Committees on Appropriations of the 
     Senate and the House of Representatives receive and approve a 
     plan for expenditure: Provided further, That the Federal 
     Emergency Management Agency shall provide the regional grants 
     and regional technical assistance expenditure plan to the 
     Committees on Appropriations of the Senate and the House of 
     Representatives on or before August 1, 2007: Provided 
     further, That funds for such regional grants and regional 
     technical assistance shall remain available until September 
     30, 2008.


                EMERGENCY MANAGEMENT PERFORMANCE GRANTS

       For an additional amount for ``Emergency Management 
     Performance Grants'', $50,000,000.

           United States Citizenship and Immigration Services

       For an additional amount for expenses of ``United States 
     Citizenship and Immigration Services'' to address backlogs of 
     security checks associated with pending applications and 
     petitions, $8,000,000, to remain available until September 
     30, 2008: Provided, That none of the funds made available 
     under this heading shall be available for obligation until 
     the Secretary of Homeland Security, in consultation with the 
     United States Attorney General, submits to the Committees on 
     Appropriations of the Senate and the House of Representatives 
     a plan to eliminate the backlog of security checks that 
     establishes information sharing protocols to ensure United 
     States Citizenship and Immigration Services has the 
     information it needs to carry out its mission.

                         Science and Technology


           Research, Development, Acquisition, and Operations

       For an additional amount for ``Research, Development, 
     Acquisition, and Operations'' for air cargo security 
     research, $5,000,000, 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, $35,000,000, to remain 
     available until expended: Provided, That $5,000,000 is to 
     enhance detection links between seaports and railroads as 
     authorized in section 121(i) of the Security and 
     Accountability For Every Port Act of 2006 (Public Law 109-
     347); $8,000,000 is to accelerate development and deployment 
     of detection systems at international rail border crossings; 
     and $22,000,000 is for development and deployment of a 
     variety of screening technologies at aviation facilities.


                          SYSTEMS ACQUISITION

       For an additional amount for ``Systems Acquisition'', 
     $100,000,000, to remain available until expended: Provided, 
     That none of the funds appropriated under this heading shall 
     be obligated for full scale procurement of Advanced 
     Spectroscopic Portal Monitors until the Secretary of Homeland 
     Security has certified through a report to the Committees on 
     Appropriations of the Senate and the House of Representatives 
     that a significant increase in operational effectiveness will 
     be achieved.

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 3501. 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. 3502. The Secretary of Homeland Security shall require 
     that all contracts of the Department of Homeland Security 
     that provide award fees link such fees to successful 
     acquisition outcomes (which outcomes shall be specified in 
     terms of cost, schedule, and performance).

                               CHAPTER 6

                           LEGISLATIVE BRANCH

                        HOUSE OF REPRESENTATIVES

                         Salaries and Expenses

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

[[Page 14016]]



                        Allowances and Expenses

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

                    GOVERNMENT ACCOUNTABILITY OFFICE

                         Salaries and Expenses

       For an additional amount for ``Salaries and Expenses'' of 
     the Government Accountability Office, $374,000, to remain 
     available until September 30, 2008.

                               CHAPTER 7

                         DEPARTMENT OF DEFENSE

            Department of Defense Base Closure Account 2005

       For deposit into the Department of Defense Base Closure 
     Account 2005, established by section 2906A(a)(1) of the 
     Defense Base Closure and Realignment Act of 1990 (10 U.S.C. 
     2687 note), $3,136,802,000, to remain available until 
     expended: Provided, That within 30 days of the enactment of 
     this Act, the Secretary of Defense shall submit a detailed 
     spending plan to the Committees on Appropriations of the 
     House of Representatives and the Senate.

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 3701. Notwithstanding any other provision of law, none 
     of the funds in this or any other Act may be used to close 
     Walter Reed Army Medical Center until equivalent medical 
     facilities at the Walter Reed National Military Medical 
     Center at Naval Medical Center, Bethesda, Maryland, and/or 
     the Fort Belvoir, Virginia, Community Hospital have been 
     constructed and equipped: Provided, That to ensure that the 
     quality of care provided by the Military Health System is not 
     diminished during this transition, the Walter Reed Army 
     Medical Center shall be adequately funded, to include 
     necessary renovation and maintenance of existing facilities, 
     to maintain the maximum level of inpatient and outpatient 
     services.
       Sec. 3702. 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. 3703. The Secretary of the Navy shall, notwithstanding 
     any other provision of law, transfer to the Secretary of the 
     Air Force, at no cost, all lands, easements, Air Installation 
     Compatible Use Zones, and facilities at NASJRB Willow Grove 
     designated for operation as a Joint Interagency Installation 
     for use by the Pennsylvania National Guard and other 
     Department of Defense components, government agencies, and 
     associated users to perform national defense, homeland 
     security, and emergency preparedness missions.

                               CHAPTER 8

                 DEPARTMENT OF STATE AND RELATED AGENCY

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs


                    DIPLOMATIC AND CONSULAR PROGRAMS

                     (INCLUDING TRANSFER OF FUNDS)

       For an additional amount for ``Diplomatic and Consular 
     Programs'', $34,103,000, to remain available until September 
     30, 2008, of which $31,845,000 for World Wide Security 
     Upgrades is available until expended: Provided, That of the 
     amount available under this heading, $258,000 shall be 
     transferred to, and merged with, funds available in fiscal 
     year 2007 for expenses for the United States Commission on 
     International Religious Freedom: Provided further, That 
     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'' to reimburse expenditures from that account in 
     facilitating the evacuation of persons from Lebanon between 
     July 16, 2006, and the date of enactment of this Act.


                    OFFICE OF THE INSPECTOR GENERAL

       For an additional amount for ``Office of Inspector 
     General'', $1,500,000, to remain available until December 31, 
     2008.

                      International Organizations


              Contributions to International Organizations

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

                     BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President


           United States Agency for International Development

              International Disaster and Famine Assistance

       For an additional amount for ``International Disaster and 
     Famine Assistance'', $60,000,000, to remain available until 
     expended.


   OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR INTERNATIONAL 
                              DEVELOPMENT

       For an additional amount for ``Operating Expenses of the 
     United States Agency for International Development'', 
     $3,000,000, to remain available until September 30, 2008.


   OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR INTERNATIONAL 
                DEVELOPMENT OFFICE OF INSPECTOR GENERAL

       For an additional amount for ``Operating Expenses of the 
     United States Agency for International Development Office of 
     Inspector General'', $3,500,000, to remain available until 
     September 30, 2008.

                  Other Bilateral Economic Assistance


                         Economic Support Fund

       For an additional amount for ``Economic Support Fund'', 
     $122,300,000, to remain available until September 30, 2008.

                          Department of State


                             DEMOCRACY FUND

       For an additional amount for ``Democracy Fund'', 
     $5,000,000, to remain available until September 30, 2008.


          INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT

                    (INCLUDING RESCISSION OF FUNDS)

       For an additional amount for ``International Narcotics 
     Control and Law Enforcement'', $42,000,000, 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'', $59,000,000, to remain available until 
     September 30, 2008.


     United States Emergency Refugee and Migration Assistance Fund

       For an additional amount for ``United States Emergency 
     Refugee and Migration Assistance Fund'', $25,000,000, to 
     remain available until expended.


    Nonproliferation, Anti-terrorism, Demining and Related Programs

       For an additional amount for ``Nonproliferation, Anti-
     Terrorism, Demining and Related Programs'', $30,000,000, 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'', $45,000,000, to remain available until September 
     30, 2008.


                        Peacekeeping Operations

       For an additional amount for ``Peacekeeping Operations'', 
     $40,000,000, to remain available until September 30, 2008: 
     Provided, That funds appropriated under this heading 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


                    EXTENSION OF OVERSIGHT AUTHORITY

       Sec. 3801. Section 3001(o)(1)(B) of the Emergency 
     Supplemental Appropriations Act for Defense and for the 
     Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-
     106; 117 Stat. 1238; 5 U.S.C. App., note to section 8G of 
     Public Law 95-452), as amended by section 1054(b) of the John 
     Warner National Defense Authorization Act for Fiscal Year 
     2007 (Public Law 109-364; 120 Stat. 2397) and section 2 of 
     the Iraq Reconstruction Accountability Act of 2006 (Public 
     Law 109-440), is amended by inserting ``or fiscal year 2007'' 
     after ``fiscal year 2006''.


                                lebanon

       Sec. 3802. (a) Limitation on Economic Support Fund 
     Assistance for Lebanon.--None of the funds made available in 
     this Act under the heading ``Economic Support Fund'' for cash 
     transfer assistance for the Government of Lebanon may be made 
     available for obligation until the Secretary of State reports 
     to the Committees on Appropriations on Lebanon's economic 
     reform plan and on the specific conditions and verifiable 
     benchmarks that have been agreed upon by the United States 
     and the Government of Lebanon pursuant to the Memorandum of 
     Understanding on cash transfer assistance for Lebanon.
       (b) Limitation on Foreign Military Financing Program and 
     International Narcotics Control and Law Enforcement 
     Assistance for Lebanon.--None of the funds made available in 
     this Act under the heading ``Foreign Military Financing 
     Program'' or ``International Narcotics Control and Law 
     Enforcement'' for military or police assistance to Lebanon 
     may be made available for obligation until the Secretary of 
     State submits to the Committees on Appropriations a report on 
     procedures established to determine eligibility of members 
     and units of the armed forces and police forces of Lebanon to 
     participate in United States training and assistance programs 
     and on the end use monitoring of all equipment provided under 
     such programs to the Lebanese armed forces and police forces.
       (c) Certification Required.--Prior to the initial 
     obligation of funds made available in this Act for assistance 
     for Lebanon under the headings ``Foreign Military Financing 
     Program''

[[Page 14017]]

     and ``Nonproliferation, Anti-Terrorism, Demining and Related 
     Programs'', the Secretary of State shall certify to the 
     Committees on Appropriations that all practicable efforts 
     have been made to ensure that such assistance is not provided 
     to or through any individual, or private or government 
     entity, that advocates, plans, sponsors, engages in, or has 
     engaged in, terrorist activity.
       (d) Report Required.--Not later than 45 days after the date 
     of the enactment of this Act, the Secretary of State shall 
     submit to the Committees on Appropriations a report on the 
     Government of Lebanon's actions to implement section 14 of 
     United Nations Security Council Resolution 1701 (August 11, 
     2006).
       (e) Special Authority.--This section shall be effective 
     notwithstanding section 534(a) of Public Law 109-102, which 
     is made applicable to funds appropriated for fiscal year 2007 
     by the Continuing Appropriations Resolution, 2007 (division B 
     of Public Law 109-289, as amended by Public Law 110-5).


                           DEBT RESTRUCTURING

       Sec. 3803. Amounts appropriated for fiscal year 2007 for 
     ``Bilateral Economic Assistance--Department of the Treasury--
     Debt Restructuring'' may be used to assist Liberia in 
     retiring its debt arrearages to the International Monetary 
     Fund, the International Bank for Reconstruction and 
     Development, and the African Development Bank.


                    government accountability office

       Sec. 3804. To facilitate effective oversight of programs 
     and activities in Iraq by the Government Accountability 
     Office (GAO), the Department of State shall provide GAO staff 
     members the country clearances, life support, and logistical 
     and security support necessary for GAO personnel to establish 
     a presence in Iraq for periods of not less than 45 days.


                    HUMAN RIGHTS AND DEMOCRACY FUND

       Sec. 3805. 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. 3806. (a) In General.--Subject to paragraph (2), the 
     Inspector General of the Department of State and the 
     Broadcasting Board of Governors (referred to in this section 
     as the ``Inspector General'') may use personal services 
     contracts to engage citizens of the United States to 
     facilitate and support the Office of the Inspector General's 
     oversight of programs and operations related to Iraq and 
     Afghanistan. Individuals engaged by contract to perform such 
     services shall not, by virtue of such contract, be considered 
     to be employees of the United States Government for purposes 
     of any law administered by the Office of Personnel 
     Management. The Secretary of State may determine the 
     applicability to such individuals of any law administered by 
     the Secretary concerning the performance of such services by 
     such individuals.
       (b) Conditions.--The authority under paragraph (1) is 
     subject to the following conditions:
       (1) The Inspector General determines that existing 
     personnel resources are insufficient.
       (2) The contract length for a personal services contractor, 
     including options, may not exceed 1 year, unless the 
     Inspector General makes a finding that exceptional 
     circumstances justify an extension of up to 1 additional 
     year.
       (3) Not more than 10 individuals may be employed at any 
     time as personal services contractors under the program.
       (c) Termination of Authority.--The authority to award 
     personal services contracts under this section shall 
     terminate on December 31, 2007. A contract entered into prior 
     to the termination date under this paragraph may remain in 
     effect until not later than December 31, 2009.
       (d) Other Authorities Not Affected.--The authority under 
     this section is in addition to any other authority of the 
     Inspector General to hire personal services contractors.


                 FUNDING TABLES, REPORTS AND DIRECTIVES

       Sec. 3807. (a) Funds provided in this Act for the following 
     accounts shall be made available for countries, programs and 
     activities in the amounts contained in the respective tables 
     and should be expended consistent with the reporting 
     requirements and directives included in the joint explanatory 
     statement accompanying the conference report on H.R. 1591 of 
     the 110th Congress (H. Rept. 110-107):
       ``Diplomatic and Consular Programs''.
       ``Office of the Inspector General''.
       ``Educational and Cultural Exchange Programs''.
       ``Contributions to International Organizations''.
       ``Contributions for International Peacekeeping 
     Activities''.
       ``Child Survival and Health Programs Fund''.
       ``International Disaster and Famine Assistance''.
       ``Operating Expenses of the United States Agency for 
     International Development''.
       ``Operating Expenses of the United States Agency for 
     International Development Office of Inspector General''.
       ``Economic Support Fund''.
       ``Assistance for Eastern Europe and the Baltic States''.
       ``Democracy Fund''.
       ``International Narcotics Control and Law Enforcement''.
       ``Migration and Refugee Assistance''.
       ``Nonproliferation, Anti-Terrorism, Demining and Related 
     Programs''.
       ``Foreign Military Financing Program''.
       ``Peacekeeping Operations''.
       (b) Any proposed increases or decreases to the amounts 
     contained in the tables in the joint explanatory statement 
     shall be subject to the regular notification procedures of 
     the Committees on Appropriations and section 634A of the 
     Foreign Assistance Act of 1961.


               SPENDING PLAN AND NOTIFICATION PROCEDURES

       Sec. 3808. 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 and 
     under the headings in chapter 6 of title I, except for funds 
     appropriated under the heading ``International Disaster and 
     Famine Assistance'': Provided, That funds appropriated under 
     the headings in this chapter and in chapter 6 of title I, 
     except for funds appropriated under the heading named in this 
     section, shall be subject to the regular notification 
     procedures of the Committees on Appropriations.


                 conditions on assistance for pakistan

       Sec. 3809. None of the funds made available for assistance 
     for the central Government of Pakistan under the heading 
     ``Economic Support Fund'' in this Act may be made available 
     for non-project assistance until the Secretary of State 
     submits to the Committees on Appropriations a report on the 
     oversight mechanisms, performance benchmarks, and 
     implementation processes for such funds: Provided, That 
     notwithstanding any other provision of law, funds made 
     available for non-project assistance pursuant to the previous 
     proviso shall be subject to the regular notification 
     procedures of the Committees on Appropriations: Provided 
     further, That of the funds made available for assistance for 
     Pakistan under the heading ``Economic Support Fund'' in this 
     Act, $5,000,000 shall be made available for the Human Rights 
     and Democracy Fund of the Bureau of Democracy, Human Rights, 
     and Labor, Department of State, for political party 
     development and election observation programs.


                         CIVILIAN RESERVE CORPS

       Sec. 3810. Of the funds appropriated by this Act under the 
     heading ``Diplomatic and Consular Programs'', up to 
     $50,000,000 may be made available to support and maintain a 
     civilian reserve corps: Provided, That none of the funds for 
     a civilian reserve corps may be obligated without specific 
     authorization in a subsequent Act of Congress: Provided 
     further, That funds made available for this purpose shall be 
     subject to the regular notification procedures of the 
     Committees on Appropriations.


                   EXTENSION OF AVAILABILITY OF FUNDS

       Sec. 3811. Section 1302(a) of Public Law 109-234 is amended 
     by striking ``one additional year'' and inserting ``two 
     additional years''.


 SPECIAL IMMIGRANT STATUS FOR CERTAIN ALIENS SERVING AS TRANSLATORS OR 
                   INTERPRETERS WITH FEDERAL AGENCIES

       Sec. 3812. (a) Increase in Numbers Admitted.--Section 1059 
     of the National Defense Authorization Act for Fiscal Year 
     2006 (8 U.S.C. 1101 note) is amended--
       (1) in subsection (b)(1)--
       (A) in subparagraph (B), by striking ``as a translator'' 
     and inserting ``, or under Chief of Mission authority, as a 
     translator or interpreter'';
       (B) in subparagraph (C), by inserting ``the Chief of 
     Mission or'' after ``recommendation from''; and
       (C) in subparagraph (D), by inserting ``the Chief of 
     Mission or'' after ``as determined by''; and
       (2) in subsection (c)(1), by striking ``section during any 
     fiscal year shall not exceed 50.'' and inserting the 
     following: ``section--
       ``(A) during each of the fiscal years 2007 and 2008, shall 
     not exceed 500; and
       ``(B) during any other fiscal year shall not exceed 50.''.
       (b) Aliens Exempt From Employment-Based Numerical 
     Limitations.--Section 1059(c)(2) of such Act is amended--
       (1) by amending the paragraph designation and heading to 
     read as follows:
       ``(2) Aliens exempt from employment-based numerical 
     limitations.--''; and
       (2) by inserting ``and shall not be counted against the 
     numerical limitations under sections 201(d), 202(a), and 
     203(b)(4) of the Immigration and Nationality Act (8 U.S.C. 
     1151(d), 1152(a), and 1153(b)(4))'' before the period at the 
     end.
       (c) Adjustment of Status.--Section 1059 of such Act is 
     further amended--
       (1) by redesignating subsection (d) as subsection (e); and
       (2) by inserting after subsection (c) the following:
       ``(d) Adjustment of Status.--Notwithstanding paragraphs 
     (2), (7) and (8) of section 245(c) of the Immigration and 
     Nationality Act (8 U.S.C. 1255(c)), the Secretary of Homeland 
     Security may adjust the status of an alien to that of a 
     lawful permanent resident under section 245(a) of such Act if 
     the alien--
       ``(1) was paroled or admitted as a nonimmigrant into the 
     United States; and
       ``(2) is otherwise eligible for special immigrant status 
     under this section and under the Immigration and Nationality 
     Act.''.

      TITLE IV--ADDITIONAL HURRICANE DISASTER RELIEF AND RECOVERY

                               CHAPTER 1

                       DEPARTMENT OF AGRICULTURE

                    GENERAL PROVISION--THIS CHAPTER

       Sec. 4101. Section 1231(k)(2) of the Food Security Act of 
     1985 (16 U.S.C. 3831(k)(2)) is amended

[[Page 14018]]

     by striking ``During calendar year 2006, the'' and inserting 
     ``The''.

                               CHAPTER 2

                         DEPARTMENT OF JUSTICE

                       Office of Justice Programs


               STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

       For an additional amount for ``State and Local Law 
     Enforcement Assistance'', for discretionary grants authorized 
     by subpart 2 of part E, of title I of the Omnibus Crime 
     Control and Safe Streets Act of 1968 as in effect on 
     September 30, 2006, notwithstanding the provisions of section 
     511 of said Act, $50,000,000, to remain available until 
     expended: Provided, That the amount made available under this 
     heading shall be for local law enforcement initiatives in the 
     Gulf Coast region related to the aftermath of Hurricane 
     Katrina: Provided further, That these funds shall be 
     apportioned among the States in quotient to their level of 
     violent crime as estimated by the Federal Bureau of 
     Investigation's Uniform Crime Report for the year 2005.

                         DEPARTMENT OF COMMERCE

            National Oceanic and Atmospheric Administration


                  OPERATIONS, RESEARCH, AND FACILITIES

       For an additional amount for ``Operations, Research, and 
     Facilities'', for necessary expenses related to the 
     consequences of Hurricanes Katrina and Rita on the shrimp and 
     fishing industries, $110,000,000, to remain available until 
     September 30, 2008.

             NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

                        exploration capabilities

       For an additional amount for ``Exploration Capabilities'' 
     for necessary expenses related to the consequences of 
     Hurricane Katrina, $20,000,000, to remain available until 
     September 30, 2009.

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 4201. Funds provided in this Act for the ``Department 
     of Commerce, National Oceanic and Atmospheric Administration, 
     Operations, Research, and Facilities'', shall be made 
     available according to the language relating to such account 
     in the joint explanatory statement accompanying the 
     conference report on H.R. 1591 of the 110th Congress (H. 
     Rept. 110-107).
       Sec. 4202. Up to $48,000,000 of amounts made available to 
     the National Aeronautics and Space Administration in Public 
     Law 109-148 and Public Law 109-234 for emergency hurricane 
     and other natural disaster-related expenses may be used to 
     reimburse hurricane-related costs incurred by NASA in fiscal 
     year 2005.

                               CHAPTER 3

                      DEPARTMENT OF DEFENSE--CIVIL

                         DEPARTMENT OF THE ARMY

                       Corps of Engineers--Civil


                              CONSTRUCTION

       For an additional amount for ``Construction'' for necessary 
     expenses related to the consequences of Hurricane Katrina and 
     other hurricanes of the 2005 season, $25,300,000, to remain 
     available until expended, which may be used to continue 
     construction of projects related to interior drainage for the 
     greater New Orleans metropolitan area.


                 Flood Control and Coastal Emergencies

       For an additional amount for ``Flood Control and Coastal 
     Emergencies'', as authorized by section 5 of the Act of 
     August 18, 1941 (33 U.S.C. 701n), for necessary expenses 
     relating to the consequences of Hurricanes Katrina and Rita 
     and for other purposes, $1,407,700,000, to remain available 
     until expended: Provided, That $1,300,000,000 of the amount 
     provided may be used by the Secretary of the Army to carry 
     out projects and measures for the West Bank and Vicinity and 
     Lake Ponchartrain and Vicinity, Louisiana, projects, as 
     described under the heading ``Flood Control and Coastal 
     Emergencies'', in chapter 3 of Public Law 109-148: Provided 
     further, That $107,700,000 of the amount provided may be used 
     to implement the projects for hurricane storm damage 
     reduction, flood damage reduction, and ecosystem restoration 
     within Hancock, Harrison, and Jackson Counties, Mississippi 
     substantially in accordance with the Report of the Chief of 
     Engineers dated December 31, 2006, and entitled 
     ``Mississippi, Coastal Improvements Program Interim Report, 
     Hancock, Harrison, and Jackson Counties, Mississippi'': 
     Provided further, That projects authorized for implementation 
     under this Chief's report shall be carried out at full 
     Federal expense, except that the non-Federal interests shall 
     be responsible for providing for all costs associated with 
     operation and maintenance of the project: Provided further, 
     That any project using funds appropriated under this heading 
     shall be initiated only after non-Federal interests have 
     entered into binding agreements with the Secretary requiring 
     the non-Federal interests to pay 100 percent of the 
     operation, maintenance, repair, replacement, and 
     rehabilitation costs of the project and to hold and save the 
     United States free from damages due to the construction or 
     operation and maintenance of the project, except for damages 
     due to the fault or negligence of the United States or its 
     contractors: Provided further, That the Chief of Engineers, 
     acting through the Assistant Secretary of the Army for Civil 
     Works, shall provide a monthly report to the House and Senate 
     Committees on Appropriations detailing the allocation and 
     obligation of these funds, beginning not later than 60 days 
     after enactment of this Act.

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 4301. The Secretary is authorized and directed to 
     determine the value of eligible reimbursable expenses 
     incurred by local governments in storm-proofing pumping 
     stations, constructing safe houses for operators, and other 
     interim flood control measures in and around the New Orleans 
     metropolitan area that the Secretary determines to be 
     integral to the overall plan to ensure operability of the 
     stations during hurricanes, storms and high water events and 
     the flood control plan for the area.
       Sec. 4302. (a) The Secretary of the Army is authorized and 
     directed to utilize funds remaining available for obligation 
     from the amounts appropriated in chapter 3 of Public Law 109-
     234 under the heading ``Flood Control and Coastal 
     Emergencies'' for projects in the greater New Orleans 
     metropolitan area to prosecute these projects in a manner 
     which promotes the goal of continuing work at an optimal 
     pace, while maximizing, to the greatest extent practicable, 
     levels of protection to reduce the risk of storm damage to 
     people and property.
       (b) The expenditure of funds as provided in subsection (a) 
     may be made without regard to individual amounts or purposes 
     specified in chapter 3 of Public Law 109-234.
       (c) Any reallocation of funds that are necessary to 
     accomplish the goal established in subsection (a) are 
     authorized, subject to the approval of the House and Senate 
     Committees on Appropriation.
       Sec. 4303. 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 to the lakefront or in combination with 
     discharges directly to the Mississippi River in Jefferson 
     Parish; 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. 4304. Using funds made available in Chapter 3 under 
     title II of Public Law 109-234, under the heading 
     ``Investigations'', the Secretary of the Army, in 
     consultation with other agencies and the State of Louisiana 
     shall accelerate completion as practicable the final report 
     of the Chief of Engineers recommending a comprehensive plan 
     to deauthorize deep draft navigation on the Mississippi River 
     Gulf Outlet: Provided, That the plan shall incorporate and 
     build upon the Interim Mississippi River Gulf Outlet Deep-
     Draft De-Authorization Report submitted to Congress in 
     December 2006 pursuant to Public Law 109-234.

                               CHAPTER 4

                     SMALL BUSINESS ADMINISTRATION

                     Disaster Loans Program Account


                     (including transfers of funds)

       Of the unobligated balances under the heading ``Small 
     Business Administration, Disaster Loans Program Account'', 
     $181,069,000, to remain available until expended, shall be 
     used for administrative expenses to carry out the disaster 
     loan program, which may be transferred to and merged with 
     ``Small Business Administration, Salaries and Expenses'', of 
     which $500,000 is for the Office of Inspector General of the 
     Small Business Administration for audits and reviews of 
     disaster loans and the disaster loan program and shall be 
     paid to appropriations for the Office of Inspector General; 
     of which $171,569,000 is for direct administrative expenses 
     of loan making and servicing to carry out the direct loan 
     program; and of which $9,000,000 is for indirect 
     administrative expenses.
       Of the unobligated balances under the heading ``Small 
     Business Administration, Disaster Loans Program Account'', 
     $25,000,000 shall be made available for loans under section 
     7(b)(2) of the Small Business Act to pre-existing businesses 
     located in an area for which the President declared a major 
     disaster because of the hurricanes in the Gulf of Mexico in 
     calendar year 2005, of which not to exceed $8,750,000 is for 
     direct administrative expenses and may be transferred to and 
     merged with ``Small Business Administration, Salaries and 
     Expenses'' to carry out the disaster loan program of the 
     Small Business Administration.
       Of the unobligated balances under the heading ``Small 
     Business Administration, Disaster Loans Program Account'', 
     $150,000,000 is transferred to the ``Federal Emergency 
     Management Agency, Disaster Relief'' account.

                               CHAPTER 5

                    DEPARTMENT OF HOMELAND SECURITY

                  Federal Emergency Management Agency


                            DISASTER RELIEF

                     (INCLUDING TRANSFER OF FUNDS)

       For an additional amount for ``Disaster Relief'', 
     $710,000,000, to remain available until expended: Provided, 
     That $4,000,000 shall be transferred to ``Office of Inspector 
     General'': Provided further, That the Government 
     Accountability Office shall review how the Federal Emergency 
     Management Agency develops its estimates of the funds needed 
     to respond to any given disaster as described in House Report 
     110-60.

[[Page 14019]]



                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 4501. (a) In General.--Notwithstanding any other 
     provision of law, including any agreement, the Federal share 
     of assistance, including direct Federal assistance, provided 
     for the States of Louisiana, Mississippi, Florida, Alabama, 
     and Texas in connection with Hurricanes Katrina, Wilma, 
     Dennis, and Rita under sections 403, 406, 407, and 408 of the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act (42 U.S.C. 5170b, 5172, 5173, and 5174) shall be 100 
     percent of the eligible costs under such sections.
       (b) Applicability.--
       (1) In general.--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 a ``request for 
     public assistance form'' has been submitted.
       Sec. 4502. (a) Community Disaster Loan Act.--
       (1) In general.--Section 2(a) of the Community Disaster 
     Loan Act of 2005 (Public Law 109-88) is amended by striking 
     ``Provided further, That notwithstanding section 417(c)(1) of 
     the Stafford Act, such loans may not be canceled:''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall be effective on the date of enactment of the Community 
     Disaster Loan Act of 2005 (Public Law 109-88).
       (b) Emergency Supplemental Appropriations Act.--
       (1) In general.--Chapter 4 of title II of the Emergency 
     Supplemental Appropriations Act for Defense, the Global War 
     on Terror, and Hurricane Recovery, 2006 (Public Law 109-234) 
     is amended under Federal Emergency Management Agency, 
     ``Disaster Assistance Direct Loan Program Account'' by 
     striking ``Provided further, That notwithstanding section 
     417(c)(1) of such Act, such loans may not be canceled:''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall be effective on the date of enactment of the Emergency 
     Supplemental Appropriations Act for Defense, the Global War 
     on Terror, and Hurricane Recovery, 2006 (Public Law 109-234).
       Sec. 4503. (a) In General.--Section 2401 of the Emergency 
     Supplemental Appropriations Act for Defense, the Global War 
     on Terror, and Hurricane Recovery, 2006 (Public Law 109-234) 
     is amended by striking ``12 months'' and inserting ``24 
     months''.
       (b) Effective Date.--The amendment made by this section 
     shall be effective on the date of enactment of the Emergency 
     Supplemental Appropriations Act for Defense, the Global War 
     on Terror, and Hurricane Recovery, 2006 (Public Law 109-234).

                               CHAPTER 6

                       DEPARTMENT OF THE INTERIOR

                         National Park Service


                       Historic Preservation Fund

       For an additional amount for the ``Historic Preservation 
     Fund'' for necessary expenses related to the consequences of 
     Hurricane Katrina and other hurricanes of the 2005 season, 
     $10,000,000, to remain available until September 30, 2008: 
     Provided, That the funds provided under this heading shall be 
     provided to the State Historic Preservation Officer, after 
     consultation with the National Park Service, for grants for 
     disaster relief in areas of Louisiana impacted by Hurricanes 
     Katrina or Rita: Provided further, That grants shall be for 
     the preservation, stabilization, rehabilitation, and repair 
     of historic properties listed in or eligible for the National 
     Register of Historic Places, for planning and technical 
     assistance: Provided further, That grants shall only be 
     available for areas that the President determines to be a 
     major disaster under section 102(2) of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (42 U.S.C. 
     5122(2)) due to Hurricanes Katrina or Rita: Provided further, 
     That individual grants shall not be subject to a non-Federal 
     matching requirement: Provided further, That no more than 5 
     percent of funds provided under this heading for disaster 
     relief grants may be used for administrative expenses.

                    GENERAL PROVISION--THIS CHAPTER


                     (including transfer of funds)

       Sec. 4601. Of the disaster relief funds from Public Law 
     109-234, 120 Stat. 418, 461, (June 30, 2006), chapter 5, 
     ``National Park Service--Historic Preservation Fund'', for 
     necessary expenses related to the consequences of Hurricane 
     Katrina and other hurricanes of the 2005 season that were 
     allocated to the State of Mississippi by the National Park 
     Service, $500,000 is hereby transferred to the ``National 
     Park Service--National Recreation and Preservation'' 
     appropriation: Provided, That these funds may be used to 
     reconstruct destroyed properties that at the time of 
     destruction were listed in the National Register of Historic 
     Places and are otherwise qualified to receive these funds: 
     Provided further, That the State Historic Preservation 
     Officer certifies that, for the community where that 
     destroyed property was located, the property is iconic to or 
     essential to illustrating that community's historic identity, 
     that no other property in that community with the same 
     associative historic value has survived, and that sufficient 
     historical documentation exists to ensure an accurate 
     reproduction.

                               CHAPTER 7

                        DEPARTMENT OF EDUCATION

                            Higher Education

       For an additional amount under part B of title VII of the 
     Higher Education Act of 1965 (``HEA'') for institutions of 
     higher education (as defined in section 101 or section 102(c) 
     of that Act) that are located in an area in which a major 
     disaster was declared in accordance with section 401 of the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act related to Hurricanes Katrina or Rita, $30,000,000: 
     Provided, That such funds shall be available to the Secretary 
     of Education only for payments to help defray the expenses 
     (which may include lost revenue, reimbursement for expenses 
     already incurred, and construction) incurred by such 
     institutions of higher education that were forced to close, 
     relocate or significantly curtail their activities as a 
     result of damage directly caused by such hurricanes and for 
     payments to enable such institutions to provide grants to 
     students who attend such institutions for academic years 
     beginning on or after July 1, 2006: Provided further, That 
     such payments shall be made in accordance with criteria 
     established by the Secretary and made publicly available 
     without regard to section 437 of the General Education 
     Provisions Act, section 553 of title 5, United States Code, 
     or part B of title VII of the HEA: Provided further, That the 
     Secretary shall award funds available under this paragraph 
     not later than 60 days after the date of the enactment of 
     this Act.

                      Hurricane Education Recovery

       For carrying out activities authorized by subpart 1 of part 
     D of title V of the Elementary and Secondary Education Act of 
     1965, $30,000,000, to remain available until expended, for 
     use by the States of Louisiana, Mississippi, and Alabama 
     primarily for recruiting, retaining, and compensating new and 
     current teachers, school principals, assistant principals, 
     principal resident directors, assistant directors, and other 
     educators, who commit to work for at least three years in 
     school-based positions in public elementary and secondary 
     schools located in an area with respect to which a major 
     disaster was declared under section 401 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5170) by reason of Hurricane Katrina or Hurricane 
     Rita, including through such mechanisms as paying salary 
     premiums, performance bonuses, housing subsidies, signing 
     bonuses, and relocation costs and providing loan forgiveness, 
     with priority given to teachers and school-based school 
     principals, assistant principals, principal resident 
     directors, assistant directors, and other educators who 
     previously worked or lived in one of the affected areas, are 
     currently employed (or become employed) in such a school in 
     any of the affected areas after those disasters, and commit 
     to continue that employment for at least 3 years, Provided, 
     That funds available under this heading to such States may 
     also be used for 1 or more of the following activities: (1) 
     to build the capacity, knowledge, and skill of teachers and 
     school-based school principals, assistant principals, 
     principal resident directors, assistant directors, and other 
     educators in such public elementary and secondary schools to 
     provide an effective education, including the design, 
     adaptation, and implementation of high-quality formative 
     assessments; (2) the establishment of partnerships with 
     nonprofit entities with a demonstrated track record in 
     recruiting and retaining outstanding teachers and other 
     school-based school principals, assistant principals, 
     principal resident directors, and assistant directors; and 
     (3) paid release time for teachers and principals to identify 
     and replicate successful practices from the fastest-improving 
     and highest-performing schools: Provided further, That the 
     Secretary of Education shall allocate amounts available under 
     this heading among such States that submit applications; that 
     such allocation shall be based on the number of public 
     elementary and secondary schools in each State that were 
     closed for 19 days or more during the period beginning on 
     August 29, 2005, and ending on December 31, 2005, due to 
     Hurricane Katrina or Hurricane Rita; and that such States 
     shall in turn allocate funds to local educational agencies, 
     with priority given first to such agencies with the highest 
     percentages of public elementary and secondary schools that 
     are closed as a result of such hurricanes as of the date of 
     enactment of this Act and then to such agencies with the 
     highest percentages of public elementary and secondary 
     schools with a student-teacher ratio of at least 25 to 1, and 
     with any remaining amounts to be distributed to such agencies 
     with demonstrated need, as determined by the State 
     Superintendent of Education: Provided further, That, in the 
     case of any State that chooses to use amounts available under 
     this heading for performance bonuses, not later than 60 days 
     after the date of enactment of this Act, and in collaboration 
     with local educational agencies, teachers' unions, local 
     principals' organizations, local parents' organizations, 
     local business organizations, and local charter schools 
     organizations, the State educational agency shall develop a 
     plan for a rating system for performance bonuses, and if no 
     agreement has been reached that is satisfactory to all 
     consulting entities by such deadline, the State educational 
     agency shall immediately send a letter notifying Congress and 
     shall, not later than 30 days after such notification, 
     establish and implement a rating system that shall be based 
     on classroom observation and feedback more than once 
     annually, conducted by multiple sources (including, but not 
     limited to, principals and master teachers), and evaluated 
     against research-based rubrics that use planning, 
     instructional, and learning environment standards to

[[Page 14020]]

     measure teacher performance, except that the requirements of 
     this proviso shall not apply to a State that has enacted a 
     State law in 2006 authorizing performance pay for teachers.

                 Programs to Restart School Operations

       Funds made available under section 102 of the Hurricane 
     Education Recovery Act (title IV of division B of Public Law 
     109-148) may be used by the States of Louisiana, Mississippi, 
     Alabama, and Texas, in addition to the uses of funds 
     described in section 102(e), for the following costs: (1) 
     recruiting, retaining, and compensating new and current 
     teachers, school principals, assistant principals, principal 
     resident directors, assistant directors, and other educators 
     for school-based positions in public elementary and secondary 
     schools impacted by Hurricane Katrina or Hurricane Rita, 
     including through such mechanisms as paying salary premiums, 
     performance bonuses, housing subsidies, signing bonuses, and 
     relocation costs and providing loan forgiveness; (2) 
     activities to build the capacity, knowledge, and skills of 
     teachers and school-based school principals, assistant 
     principals, principal resident directors, assistant 
     directors, and other educators in such public elementary and 
     secondary schools to provide an effective education, 
     including the design, adaptation, and implementation of high-
     quality formative assessments; (3) the establishment of 
     partnerships with nonprofit entities with a demonstrated 
     track record in recruiting and retaining outstanding teachers 
     and school-based school principals, assistant principals, 
     principal resident directors, and assistant directors; and 
     (4) paid release time for teachers and principals to identify 
     and replicate successful practices from the fastest-improving 
     and highest-performing schools.

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 4701. Section 105(b) of title IV of division B of 
     Public Law 109-148 is amended by adding at the end the 
     following new sentence: ``With respect to the program 
     authorized by section 102 of this Act, the waiver authority 
     in subsection (a) of this section shall be available until 
     the end of fiscal year 2008.''.
       Sec. 4702. Notwithstanding section 2002(c) of the Social 
     Security Act (42 U.S.C. 1397a(c)), funds made available under 
     the heading ``Social Services Block Grant'' in division B of 
     Public Law 109-148 shall be available for expenditure by the 
     States through the end of fiscal year 2009.
       Sec. 4703. (a) In the event that Louisiana, Mississippi, 
     Alabama, or Texas fails to meet its match requirement with 
     funds appropriated in fiscal year 2006 or 2007, for fiscal 
     years 2008 and 2009, the Secretary of Health and Human 
     Services may waive the application of section 2617(d)(4) of 
     the Public Health Service Act for Louisiana, Mississippi, 
     Alabama, and Texas.
       (b) The Secretary may not exercise the waiver authority 
     available under subsection (a) to allow a grantee to provide 
     less than a 25 percent matching grant.
       (c) For grant years beginning in 2008, Louisiana, 
     Mississippi, Alabama, and Texas and any eligible metropolitan 
     area in Louisiana, Mississippi, Alabama, and Texas shall 
     comply with each of the applicable requirements under title 
     XXVI of the Public Health Service Act (42 U.S.C. 300ff-11 et 
     seq.).

                               CHAPTER 8

                      DEPARTMENT OF TRANSPORTATION

                     Federal Highway Administration


                          Federal-Aid Highways

                        Emergency Relief Program

                    (including rescission of funds)

       For an additional amount for the Emergency Relief Program 
     as authorized under section 125 of title 23, United States 
     Code, $871,022,000, to remain available until expended: 
     Provided, That section 125(d)(1) of title 23, United States 
     Code, shall not apply to emergency relief projects that 
     respond to damage caused by the 2005-2006 winter storms in 
     the State of California: Provided further, That of the 
     unobligated balances of funds apportioned to each State under 
     chapter 1 of title 23, United States Code, $871,022,000 are 
     rescinded: Provided further, That such rescission shall not 
     apply to the funds distributed in accordance with sections 
     130(f) and 104(b)(5) of title 23, United States Code; 
     sections 133(d)(1) and 163 of such title, as in effect on the 
     day before the date of enactment of Public Law 109-59; and 
     the first sentence of section 133(d)(3)(A) of such title.

                     Federal Transit Administration


                             Formula Grants

       For an additional amount to be allocated by the Secretary 
     to recipients of assistance under chapter 53 of title 49, 
     United States Code, directly affected by Hurricanes Katrina 
     and Rita, $35,000,000, for the operating and capital costs of 
     transit services, to remain available until expended: 
     Provided, That the Federal share for any project funded from 
     this amount shall be 100 percent.

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                      Office of Inspector General

       For an additional amount for the Office of Inspector 
     General, for the necessary costs related to the consequences 
     of Hurricanes Katrina and Rita, $7,000,000, to remain 
     available until expended.

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 4801. The third proviso under the heading ``Department 
     of Housing and Urban Development--Public and Indian Housing--
     Tenant-Based Rental Assistance'' in chapter 9 of title I of 
     division B of Public Law 109-148 (119 Stat. 2779) is amended 
     by striking ``for up to 18 months'' and inserting ``until 
     December 31, 2007''.
       Sec. 4802. Section 21033 of the Continuing Appropriations 
     Resolution, 2007 (division B of Public Law 109-289, as 
     amended by Public Law 110-5) is amended by adding after the 
     third proviso: ``: Provided further, That notwithstanding the 
     previous proviso, except for applying the 2007 Annual 
     Adjustment Factor and making any other specified adjustments, 
     public housing agencies specified in category 1 below shall 
     receive funding for calendar year 2007 based on the higher of 
     the amounts the agencies would receive under the previous 
     proviso or the amounts the agencies received in calendar year 
     2006, and public housing agencies specified in categories 2 
     and 3 below shall receive funding for calendar year 2007 
     equal to the amounts the agencies received in calendar year 
     2006, except that public housing agencies specified in 
     categories 1 and 2 below shall receive funding under this 
     proviso only if, and to the extent that, any such public 
     housing agency submits a plan, approved by the Secretary, 
     that demonstrates that the agency can effectively use within 
     12 months the funding that the agency would receive under 
     this proviso that is in addition to the funding that the 
     agency would receive under the previous proviso: (1) public 
     housing agencies that are eligible for assistance under 
     section 901 in Public Law 109-148 (119 Stat. 2781) or are 
     located in the same counties as those eligible under section 
     901 and operate voucher programs under section 8(o) of the 
     United States Housing Act of 1937 but do not operate public 
     housing under section 9 of such Act, and any public housing 
     agency that otherwise qualifies under this category must 
     demonstrate that they have experienced a loss of rental 
     housing stock as a result of the 2005 hurricanes; (2) public 
     housing agencies that would receive less funding under the 
     previous proviso than they would receive under this proviso 
     and that have been placed in receivership or the Secretary 
     has declared to be in breach of an Annual Contributions 
     Contract by June 1, 2007; and (3) public housing agencies 
     that spent more in calendar year 2006 than the total of the 
     amounts of any such public housing agency's allocation amount 
     for calendar year 2006 and the amount of any such public 
     housing agency's available housing assistance payments 
     undesignated funds balance from calendar year 2005 and the 
     amount of any such public housing agency's available 
     administrative fees undesignated funds balance through 
     calendar year 2006''.
       Sec. 4803. Section 901 of Public Law 109-148 is amended by 
     deleting ``calendar year 2006'' and inserting ``calendar 
     years 2006 and 2007''.

                               CHAPTER 9

                     DEPARTMENT OF VETERANS AFFAIRS

                      Departmental Administration


                      Construction, Minor Projects

                    (Including Rescission of Funds)

       For an additional amount for Department of Veterans 
     Affairs, ``Construction, Minor Projects'', $14,484,754, to 
     remain available until September 30, 2008, for necessary 
     expenses related to the consequences of Hurricane Katrina and 
     other hurricanes of the 2005 season.
       Of the funds available until September 30, 2007, for the 
     ``Construction, Minor Projects'' account of the Department of 
     Veterans Affairs, pursuant to section 2702 of Public Law 109-
     234, $14,484,754 are hereby rescinded.

                TITLE V--OTHER EMERGENCY APPROPRIATIONS

                               CHAPTER 1

                       DEPARTMENT OF AGRICULTURE

                    GENERAL PROVISION--THIS CHAPTER

       Sec. 5101. In addition to any other available funds, there 
     is hereby appropriated $40,000,000 to the Secretary of 
     Agriculture, to remain available until expended, for programs 
     and activities of the Department of Agriculture, as 
     determined by the Secretary, to provide recovery assistance 
     in response to damage in conjunction with the Presidential 
     declaration of a major disaster (FEMA-1699-DR) dated May 6, 
     2007, for needs not met by the Federal Emergency Management 
     Agency or private insurers: Provided, That, in addition, the 
     Secretary may use funds provided under this section, 
     consistent with the provisions of this section, to respond to 
     any other Presidential declaration of a major disaster issued 
     under the authority of the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act, 42 U.S.C. 5121-5206 (the 
     Stafford Act), declared during fiscal year 2007 for events 
     occurring before the date of the enactment of this Act or a 
     Secretary of Agriculture declaration of a natural disaster, 
     declared during fiscal year 2007 for events occurring before 
     the date of the enactment of this Act.

                               CHAPTER 2

                         DEPARTMENT OF COMMERCE

            National Oceanic and Atmospheric Administration

                  operations, research, and facilities

       For an additional amount for ``Operations, Research, and 
     Facilities'', $60,400,000, to remain available until 
     September 30, 2008: Provided, That the National Marine 
     Fisheries Service shall cause such amounts to be distributed 
     among eligible recipients of assistance for the commercial 
     fishery failure designated under section 312(a) of the 
     Magnuson-Stevens Fishery Conservation and Management Act (16 
     U.S.C. 1861a(a)) and declared by the Secretary of Commerce on 
     August 10, 2006.

[[Page 14021]]



                               CHAPTER 3

                      DEPARTMENT OF DEFENSE--CIVIL

                         DEPARTMENT OF THE ARMY

                       Corps of Engineers--Civil


                             investigations

       For an additional amount for ``Investigations'' for flood 
     damage reduction studies to address flooding associated with 
     disasters covered by Presidential Disaster Declaration FEMA-
     1692-DR, $8,165,000, to remain available until expended.


                              construction

       For an additional amount for ``Construction'' for flood 
     damage reduction activities associated with disasters covered 
     by Presidential Disaster Declarations FEMA-1692-DR and FEMA-
     1694-DR, $11,200,000, to remain available until expended.


                       operation and maintenance

       For an additional amount for ``Operation and Maintenance'' 
     to dredge navigation channels related to the consequences of 
     hurricanes of the 2005 season, $3,000,000, to remain 
     available until expended.


                 flood control and coastal emergencies

       For an additional amount for ``Flood Control and Coastal 
     Emergencies'', as authorized by section 5 of the Act of 
     August 18, 1941 (33 U.S.C. 701n), to support emergency 
     operations, repairs and other activities in response to 
     flood, drought and earthquake emergencies as authorized by 
     law, $153,300,000, to remain available until expended: 
     Provided, That the Chief of Engineers, acting through the 
     Assistant Secretary of the Army for Civil Works, shall 
     provide a monthly report to the House and Senate Committees 
     on Appropriations detailing the allocation and obligation of 
     these funds, beginning not later than 60 days after enactment 
     of this Act: Provided further, That of the funds provided 
     under this heading, $7,000,000 shall be available for drought 
     emergency assistance.

                       DEPARTMENT OF THE INTERIOR

                         Bureau of Reclamation


                      WATER AND RELATED RESOURCES

       For an additional amount for ``Water and Related 
     Resources'', $18,000,000, to remain available until expended 
     for drought assistance: Provided, That drought assistance may 
     be provided under the Reclamation States Drought Emergency 
     Act or other applicable Reclamation authorities to assist 
     drought plagued areas of the West.

                               CHAPTER 4

                       DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management

                        wildland fire management


                     (including transfer of funds)

       For an additional amount for ``Wildland Fire Management'', 
     $95,000,000, to remain available until expended, for urgent 
     wildland fire suppression activities: Provided, That such 
     funds shall only become available if funds previously 
     provided for wildland fire suppression will be exhausted 
     imminently and the Secretary of the Interior notifies the 
     House and Senate Committees on Appropriations in writing of 
     the need for these additional funds: Provided further, That 
     such funds are also available for repayment to other 
     appropriations accounts from which funds were transferred for 
     wildfire suppression.

                United States Fish and Wildlife Service


                          Resource Management

       For an additional amount for ``Resource Management'' for 
     the detection of highly pathogenic avian influenza in wild 
     birds, including the investigation of morbidity and mortality 
     events, targeted surveillance in live wild birds, and 
     targeted surveillance in hunter-taken birds, $7,398,000, to 
     remain available until September 30, 2008.

                         National Park Service


                 Operation of the National Park System

       For an additional amount for ``Operation of the National 
     Park System'' for the detection of highly pathogenic avian 
     influenza in wild birds, including the investigation of 
     morbidity and mortality events, $525,000, to remain available 
     until September 30, 2008.

                    United States Geological Survey


                 Surveys, Investigations, and Research

       For an additional amount for ``Surveys, Investigations, and 
     Research'' for the detection of highly pathogenic avian 
     influenza in wild birds, including the investigation of 
     morbidity and mortality events, targeted surveillance in live 
     wild birds, and targeted surveillance in hunter-taken birds, 
     $5,270,000, to remain available until September 30, 2008.

                       DEPARTMENT OF AGRICULTURE

                             Forest Service


                         National Forest System

       For an additional amount for ``National Forest System'' for 
     the implementation of a nationwide initiative to increase 
     protection of national forest lands from drug-trafficking 
     organizations, including funding for additional law 
     enforcement personnel, training, equipment and cooperative 
     agreements, $12,000,000, to remain available until expended.

                        wildland fire management


                     (including transfer of funds)

       For an additional amount for ``Wildland Fire Management'', 
     $370,000,000, to remain available until expended, for urgent 
     wildland fire suppression activities: Provided, That such 
     funds shall only become available if funds provided 
     previously for wildland fire suppression will be exhausted 
     imminently and the Secretary of Agriculture notifies the 
     House and Senate Committees on Appropriations in writing of 
     the need for these additional funds: Provided further, That 
     such funds are also available for repayment to other 
     appropriation accounts from which funds were transferred for 
     wildfire suppression.

                    GENERAL PROVISION--THIS CHAPTER

       Sec. 5401. (a) For fiscal year 2007, payments shall be made 
     from any revenues, fees, penalties, or miscellaneous receipts 
     described in sections 102(b)(3) and 103(b)(2) of the Secure 
     Rural Schools and Community Self-Determination Act of 2000 
     (Public Law 106-393; 16 U.S.C. 500 note), not to exceed 
     $100,000,000, and the payments shall be made, to the maximum 
     extent practicable, in the same amounts, for the same 
     purposes, and in the same manner as were made to States and 
     counties in 2006 under that Act.
       (b) There is appropriated $425,000,000, to remain available 
     until December 31, 2007, to be used to cover any shortfall 
     for payments made under this section from funds not otherwise 
     appropriated.
       (c) Titles II and III of Public Law 106-393 are amended, 
     effective September 30, 2006, by striking ``2006'' and 
     ``2007'' each place they appear and inserting ``2007'' and 
     ``2008'', respectively.

                               CHAPTER 5

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

               Centers for Disease Control and Prevention


                 DISEASE CONTROL, RESEARCH AND TRAINING

       For an additional amount for ``Department of Health and 
     Human Services, Centers for Disease Control and Prevention, 
     Disease Control, Research and Training'', to carry out 
     section 501 of the Federal Mine Safety and Health Act of 1977 
     and section 6 of the Mine Improvement and New Emergency 
     Response Act of 2006, $13,000,000 for research to develop 
     mine safety technology, including necessary repairs and 
     improvements to leased laboratories: Provided, That progress 
     reports on technology development shall be submitted to the 
     House and Senate Committees on Appropriations and the 
     Committee on Health, Education, Labor and Pensions of the 
     Senate and the Committee on Education and Labor of the House 
     of Representatives on a quarterly basis: Provided further, 
     That the amount provided under this heading shall remain 
     available until September 30, 2008.
       For an additional amount for ``Department of Health and 
     Human Services, Centers for Disease Control and Prevention, 
     Disease Control, Research and Training'', to carry out 
     activities under section 5011(b) of the Emergency 
     Supplemental Appropriations Act to Address Hurricanes in the 
     Gulf of Mexico and Pandemic Influenza, 2006 (Public Law 109-
     148), $50,000,000, to remain available until expended.

                    GENERAL PROVISIONS--THIS CHAPTER


                        (including rescissions)

       Sec. 5501. (a). From unexpended balances available for the 
     Training and Employment Services account under the Department 
     of Labor, the following amounts are hereby rescinded--
       (1) $3,589,000 transferred pursuant to the 2001 Emergency 
     Supplemental Appropriations Act for Recovery from and 
     Response to Terrorist Attacks on the United States (Public 
     Law 107-38);
       (2) $834,000 transferred pursuant to the Emergency 
     Supplemental Appropriations Act of 1994 (Public Law 103-211); 
     and
       (3) $71,000 for the Consortium for Worker Education 
     pursuant to the Emergency Supplemental Act, 2002 (Public Law 
     107-117).
       (b) From unexpended balances available for the State 
     Unemployment Insurance and Employment Service Operations 
     account under the Department of Labor pursuant to the 
     Emergency Supplemental Act, 2002 (Public Law 107-117), 
     $4,100,000 are hereby rescinded.
       Sec. 5502. (a) For an additional amount under ``Department 
     of Education, Safe Schools and Citizenship Education'', 
     $8,594,000 shall be available for Safe and Drug-Free Schools 
     National Programs for competitive grants to local educational 
     agencies to address youth violence and related issues.
       (b) The competition under subsection (a) shall be limited 
     to local educational agencies that operate schools currently 
     identified as persistently dangerous under section 9532 of 
     the Elementary and Secondary Education Act of 1965.
       Sec. 5503. Unobligated balances from funds appropriated in 
     the Department of Defense and Emergency Supplemental 
     Appropriations for Recovery from and Response to Terrorist 
     Attacks on the United States Act, 2002 (Public Law 107-117) 
     to the Department of Health and Human Services under the 
     heading ``Public Health and Social Services Emergency Fund'' 
     that are available for bioterrorism preparedness and disaster 
     response activities in the Office of the Secretary shall also 
     be available for the construction, renovation and improvement 
     of facilities on federally-owned land as necessary for 
     continuity of operations activities.

                               CHAPTER 6

                           LEGISLATIVE BRANCH

                             CAPITOL POLICE

                            General Expenses

       For an additional amount for ``Capitol Police, General 
     Expenses'', $10,000,000 for a radio modernization program, to 
     remain available until expended: Provided, That the Chief of 
     the Capitol Police 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 the House of Representatives.

[[Page 14022]]



                        ARCHITECT OF THE CAPITOL

                          Capitol Power Plant

       For an additional amount for ``Capitol Power Plant'', 
     $50,000,000, for utility tunnel repairs and asbestos 
     abatement, to remain available until September 30, 2011: 
     Provided, That the Architect of the Capitol may not obligate 
     any of the funds appropriated under this heading without 
     approval of an obligation plan by the Committees on 
     Appropriations of the Senate and House of Representatives.

                               CHAPTER 7

                     DEPARTMENT OF VETERANS AFFAIRS

                     Veterans Health Administration


                            MEDICAL SERVICES

       For an additional amount for ``Medical Services'', 
     $466,778,000, to remain available until expended, of which 
     $30,000,000 shall be for the establishment of at least one 
     new Level I comprehensive polytrauma center; $9,440,000 shall 
     be for the establishment of polytrauma residential 
     transitional rehabilitation programs; $10,000,000 shall be 
     for additional transition caseworkers; $20,000,000 shall be 
     for substance abuse treatment programs; $20,000,000 shall be 
     for readjustment counseling; $10,000,000 shall be for blind 
     rehabilitation services; $100,000,000 shall be for 
     enhancements to mental health services; $8,000,000 shall be 
     for polytrauma support clinic teams; $5,356,000 shall be for 
     additional polytrauma points of contact; $228,982,000 shall 
     be for treatment of Operation Enduring Freedom and Operation 
     Iraqi Freedom veterans; and $25,000,000 shall be for 
     prosthetics.


                         MEDICAL ADMINISTRATION

       For an additional amount for ``Medical Administration'', 
     $250,000,000, to remain available until expended.


                           MEDICAL FACILITIES

       For an additional amount for ``Medical Facilities'', 
     $595,000,000, to remain available until expended, of which 
     $45,000,000 shall be used for facility and equipment upgrades 
     at the Department of Veterans Affairs polytrauma network 
     sites; and $550,000,000 shall be for non-recurring 
     maintenance as identified in the Department of Veterans 
     Affairs Facility Condition Assessment report: Provided, That 
     the amount provided under this heading for non-recurring 
     maintenance shall be allocated in a manner not subject to the 
     Veterans Equitable Resource Allocation: Provided further, 
     That within 30 days of enactment of this Act the Secretary 
     shall submit to the Committees on Appropriations of both 
     Houses of Congress an expenditure plan, by project, for non-
     recurring maintenance prior to obligation: Provided further, 
     That semi-annually, on October 1 and April 1, the Secretary 
     shall submit to the Committees on Appropriations of both 
     Houses of Congress a report on the status of funding for non-
     recurring maintenance, including obligations and unobligated 
     balances for each project identified in the expenditure plan.


                    MEDICAL AND PROSTHETIC RESEARCH

       For an additional amount for ``Medical and Prosthetic 
     Research'', $32,500,000, to remain available until expended, 
     which shall be used for research related to the unique 
     medical needs of returning Operation Enduring Freedom and 
     Operation Iraqi Freedom veterans.

                      Departmental Administration


                       General Operating Expenses

                     (including transfer of funds)

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


                     INFORMATION TECHNOLOGY SYSTEMS

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


                      CONSTRUCTION, MINOR PROJECTS

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

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 5701. 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 10 years.
       Sec. 5702. Notwithstanding any other provision of law, 
     appropriations made by Public Law 110-5, which the Secretary 
     of Veterans Affairs contributes to the Department of Defense/
     Department of Veterans Affairs Health Care Sharing Incentive 
     Fund under the authority of section 8111(d) of title 38, 
     United States Code, shall remain available until expended for 
     any purpose authorized by section 8111 of title 38, United 
     States Code.
       Sec. 5703. (a)(1) The Secretary of Veterans Affairs 
     (referred to in this section as the ``Secretary'') may convey 
     to the State of Texas, without consideration, all rights, 
     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 shall 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.
       (c) Nothing in this section may be construed to affect or 
     limit the application of or obligation to comply with any 
     environmental law, including section 120(h) of the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9620(h)).
       Sec. 5704. (a) Funds provided in this Act for the following 
     accounts shall be made available for programs under the 
     conditions contained in the language of the joint explanatory 
     statement of managers accompanying the conference report on 
     H.R. 1591 of the 110th Congress (H. Rept. 110-107):
       ``Medical Services''.
       ``Medical Administration''.
       ``Medical Facilities''.
       ``Medical and Prosthetic Research''.
       ``General Operating Expenses''.
       ``Information Technology Systems''.
       ``Construction, Minor Projects''.
       (b) The Secretary of Veterans Affairs shall submit all 
     reports requested in House Report 110-60 and Senate Report 
     110-37, to the Committees on Appropriations of both Houses of 
     Congress.
       Sec. 5705. Subsection (d) of section 2023 of title 38, 
     United States Code, is amended by striking ``shall cease'' 
     and all that follows through ``program'' and inserting 
     ``shall cease on September 30, 2007''.

                        TITLE VI--OTHER MATTERS

                               CHAPTER 1

                       DEPARTMENT OF AGRICULTURE

                          Farm Service Agency


                         SALARIES AND EXPENSES

       For an additional amount for ``Salaries and Expenses'' of 
     the Farm Service Agency, $37,500,000, to remain available 
     until September 30, 2008: Provided, That this amount shall 
     only be available for network and database/application 
     stabilization.

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 6101. Of the funds made available through 
     appropriations to the Food and Drug Administration for fiscal 
     year 2007, not less than $4,000,000 shall be for the Office 
     of Women's Health of such Administration.
       Sec. 6102. None of the funds made available to the 
     Department of Agriculture for fiscal year 2007 may be used to 
     implement the risk-based inspection program in the 30 
     prototype locations announced on February 22, 2007, by the 
     Under Secretary for Food Safety, or at any other locations, 
     until the USDA Office of Inspector General has provided its 
     findings to the Food Safety and Inspection Service and the 
     Committees on Appropriations of the House of Representatives 
     and the Senate on the data used in support of the development 
     and design of the risk-based inspection program and FSIS has 
     addressed and resolved issues identified by OIG.

                               CHAPTER 2

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 6201. 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. 6202. 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. 6301. (a) Section 102(a)(3)(B) of the Help America 
     Vote Act of 2002 (42 U.S.C.

[[Page 14023]]

     15302(a)(3)(B)) is amended by striking ``January 1, 2006'' 
     and inserting ``March 1, 2008''.
       (b) The amendment made by subsection (a) shall take effect 
     as if included in the enactment of the Help America Vote Act 
     of 2002.
       Sec. 6302. 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. 6303. 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. 6304. 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. 6305. (a) Not later than 90 days after the date of 
     enactment of this Act, the Secretary of the Treasury, in 
     coordination with the Securities and Exchange Commission and 
     in consultation with the Departments of State and Energy, 
     shall prepare and submit to the Senate Committee on 
     Appropriations, the House Committee on Appropriations, the 
     Senate Committee on Banking, Housing, and Urban Affairs, the 
     House Committee on Financial Services, the Senate Foreign 
     Relations Committee, and the House Foreign Affairs Committee 
     a written report, which may include a classified annex, 
     containing the names of companies which either directly or 
     through a parent or subsidiary company, including partly-
     owned subsidiaries, are known to conduct significant business 
     operations in Sudan relating to natural resource extraction, 
     including oil-related activities and mining of minerals. The 
     reporting provision shall not apply to companies operating 
     under licenses from the Office of Foreign Assets Control or 
     otherwise expressly exempted under United States law from 
     having to obtain such licenses in order to operate in Sudan.
       (b) Not later than 45 days following the submission to 
     Congress of the list of companies conducting business 
     operations in Sudan relating to natural resource extraction 
     as required above, the General Services Administration shall 
     determine whether the United States Government has an active 
     contract for the procurement of goods or services with any of 
     the identified companies, and provide notification to the 
     appropriate committees of Congress, which may include a 
     classified annex, regarding the companies, nature of the 
     contract, and dollar amounts involved.


                         (including rescission)

       Sec. 6306. (a) Of the funds provided for the General 
     Services Administration, ``Office of Inspector General'' in 
     section 21061 of the Continuing Appropriations Resolution, 
     2007 (division B of Public Law 109-289, as amended by Public 
     Law 110-5), $4,500,000 are rescinded.
       (b) For an additional amount for the General Services 
     Administration, ``Office of Inspector General'', $4,500,000, 
     to remain available until September 30, 2008.
       (c) With the additional amount of $9,336,000 appropriated 
     in Public Law 110-5 and in this Act, above the amount 
     appropriated in Public Law 109-115, of which $4,500,000 
     remains available for obligation in fiscal year 2008, the 
     Office of Inspector General shall hire additional staff for 
     internal audits and investigations, and the remaining funds 
     shall be for one-time associated needs such as information 
     technology and other such administrative support.
       Sec. 6307. Section 21073 of the Continuing Appropriations 
     Resolution, 2007 (Public Law 110-5) is amended by adding a 
     new subsection (j) as follows:
       ``(j) Notwithstanding section 101, any appropriation or 
     funds made available to the District of Columbia pursuant to 
     this Act 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. 6308. It is the sense of Congress that the Small 
     Business Administration will provide, through funds available 
     within amounts already appropriated for Small Business 
     Administration disaster assistance, physical and economic 
     injury disaster loans to Kansas businesses and homeowners 
     devastated by the severe tornadoes, storms, and flooding that 
     occurred beginning on May 4, 2007.

                               CHAPTER 4

                    DEPARTMENT OF HOMELAND SECURITY

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 6401. Not to exceed $30,000,000 from unobligated 
     balances remaining from prior appropriations for United 
     States Coast Guard, ``Retired Pay'', shall remain available 
     until expended in the account and for the purposes for which 
     the appropriations were provided, including the payment of 
     obligations otherwise chargeable to lapsed or current 
     appropriations for this purpose: Provided, That within 45 
     days after the date of enactment of this Act, the United 
     States Coast Guard shall submit to the Committees on 
     Appropriations of the Senate and the House of Representatives 
     the following: (1) a report on steps being taken to improve 
     the accuracy of its estimates for the ``Retired Pay'' 
     appropriation; and (2) quarterly reports on the use of 
     unobligated balances made available by this Act to address 
     the projected shortfall in the ``Retired Pay'' appropriation, 
     as well as updated estimates for fiscal year 2008.
       Sec. 6402. (a) In General.--Any contract, subcontract, task 
     or delivery order described in subsection (b) shall contain 
     the following:
       (1) A requirement for a technical review of all designs, 
     design changes, and engineering change proposals, and a 
     requirement to specifically address all engineering concerns 
     identified in the review before the obligation of further 
     funds may occur.
       (2) A requirement that the Coast Guard maintain technical 
     warrant holder authority, or the equivalent, for major 
     assets.
       (3) A requirement that no procurement subject to subsection 
     (b) for lead asset production or the implementation of a 
     major design change shall be entered into unless an 
     independent third party with no financial interest in the 
     development, construction, or modification of any component 
     of the asset, selected by the Commandant, determines that 
     such action is advisable.
       (4) A requirement for independent life-cycle cost estimates 
     of lead assets and major design and engineering changes.
       (5) A requirement for the measurement of contractor and 
     subcontractor performance based on the status of all work 
     performed. For contracts under the Integrated Deepwater 
     Systems program, such requirement shall include a provision 
     that links award fees to successful acquisition outcomes 
     (which shall be defined in terms of cost, schedule, and 
     performance).
       (6) A requirement that the Commandant of the Coast Guard 
     assign an appropriate officer or employee of the Coast Guard 
     to act as chair of each integrated product team and higher-
     level team assigned to the oversight of each integrated 
     product team.
       (7) A requirement that the Commandant of the Coast Guard 
     may not award or issue any contract, task or delivery order, 
     letter contract modification thereof, or other similar 
     contract, for the acquisition or modification of an asset 
     under a procurement subject to subsection (b) unless the 
     Coast Guard and the contractor concerned have formally agreed 
     to all terms and conditions or the head of contracting 
     activity for the Coast Guard determines that a compelling 
     need exists for the award or issue of such instrument.
       (b) Contracts, Subcontracts, Task and Delivery Orders 
     Covered.--Subsection (a) applies to--
       (1) any major procurement contract, first-tier subcontract, 
     delivery or task order entered into by the Coast Guard;
       (2) any first-tier subcontract entered into under such a 
     contract; and
       (3) any task or delivery order issued pursuant to such a 
     contract or subcontract.
       (c) Expenditure of Deepwater Funds.--Of the funds available 
     for the Integrated Deepwater Systems program, $650,000,000 
     may not be obligated until the Committees on Appropriations 
     of the Senate and the House of Representatives receive an 
     expenditure plan directly from the Coast Guard that--
       (1) defines activities, milestones, yearly costs, and life-
     cycle costs for each procurement of a major asset;
       (2) identifies life-cycle staffing and training needs of 
     Coast Guard project managers and of procurement and contract 
     staff;
       (3) identifies competition to be conducted in each 
     procurement;
       (4) describes procurement plans that do not rely on a 
     single industry entity or contract;
       (5) contains very limited indefinite delivery/indefinite 
     quantity contracts and explains the need for any indefinite 
     delivery/indefinite quantity contracts;
       (6) complies with all applicable acquisition rules, 
     requirements, and guidelines, and incorporates the best 
     systems acquisition management practices of the Federal 
     Government;
       (7) complies with the capital planning and investment 
     control requirements established by the Office of Management 
     and Budget, including circular A-11, part 7;
       (8) includes a certification by the head of contracting 
     activity for the Coast Guard and the Chief Procurement 
     Officer of the Department of Homeland Security that the Coast 
     Guard has established sufficient controls and procedures and 
     has sufficient staffing to comply with all contracting 
     requirements, and that any conflicts of interest have been 
     sufficiently addressed;
       (9) includes a description of the process used to act upon 
     deviations from the contractually specified performance 
     requirements and clearly explains the actions taken on such 
     deviations;
       (10) includes a certification that the Assistant Commandant 
     of the Coast Guard for Engineering and Logistics is 
     designated as the technical authority for all engineering, 
     design, and logistics decisions pertaining to the Integrated 
     Deepwater Systems program; and
       (11) identifies progress in complying with the requirements 
     of subsection (a).
       (d) Reports.--(1) Not later than 30 days after the date of 
     enactment of this Act, the Commandant of the Coast Guard 
     shall submit to the

[[Page 14024]]

     Committees on Appropriations of the Senate and the House of 
     Representatives; the Committee on Commerce, Science and 
     Transportation of the Senate; and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives: (i) a report on the resources (including 
     training, staff, and expertise) required by the Coast Guard 
     to provide appropriate management and oversight of the 
     Integrated Deepwater Systems program; and (ii) a report on 
     how the Coast Guard will utilize full and open competition 
     for any contract that provides for the acquisition or 
     modification of assets under, or in support of, the 
     Integrated Deepwater Systems program, entered into after the 
     date of enactment of this Act.
       (2) Within 30 days following the submission of the 
     expenditure plan required under subsection (c), the 
     Government Accountability Office shall review the plan and 
     brief the Committees on Appropriations of the Senate and the 
     House of Representatives on its findings.
       Sec. 6403. 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, and the Coast Guard Academy, except as specifically 
     authorized by a statute enacted after the date of enactment 
     of this Act.


                    (including rescissions of funds)

       Sec. 6404. (a) Rescissions.--The following unobligated 
     balances made available pursuant to section 505 of Public Law 
     109-90 are rescinded: $1,200,962 from the ``Office of the 
     Secretary and Executive Management''; $512,855 from the 
     ``Office of the Under Secretary for Management''; $461,874 
     from the ``Office of the Chief Information Officer''; $45,080 
     from the ``Office of the Chief Financial Officer''; $968,211 
     from Preparedness ``Management and Administration''; 
     $1,215,486 from Science and Technology ``Management and 
     Administration''; $450,000 from United States Secret Service 
     ``Salaries and Expenses''; $450,000 from Federal Emergency 
     Management Agency ``Administrative and Regional Operations''; 
     and $25,595,532 from United States Coast Guard ``Operating 
     Expenses''.
       (b) Additional Appropriations.--
       (1) For an additional amount for United States Coast Guard 
     ``Acquisition, Construction, and Improvements'', $30,000,000, 
     to remain available until September 30, 2009, to mitigate the 
     Service's patrol boat operational gap.
       (2) For an additional amount for the ``Office of the Under 
     Secretary for Management'', $900,000 for an independent study 
     to compare the Department of Homeland Security senior career 
     and political staffing levels and senior career training 
     programs with those of similarly structured cabinet-level 
     agencies as detailed in House Report 110-107: Provided, That 
     the Department of Homeland Security shall provide to the 
     Committees on Appropriations of the Senate and the House of 
     Representatives by July 20, 2007, a report on senior 
     staffing, as detailed in Senate Report 110-37, and the 
     Government Accountability Office shall report on the 
     strengths and weakness of this report within 90 days after 
     its submission.
       Sec. 6405. (a) In General.--With respect to contracts 
     entered into after July 1, 2007, and except as provided in 
     subsection (b), no entity performing lead system integrator 
     functions in the acquisition of a major system by the 
     Department of Homeland Security may have any direct financial 
     interest in the development or construction of any individual 
     system or element of any system of systems.
       (b) Exception.--An entity described in subsection (a) may 
     have a direct financial interest in the development or 
     construction of an individual system or element of a system 
     of systems if--
       (1) the Secretary of Homeland Security certifies to the 
     Committees on Appropriations of the Senate and the House of 
     Representatives, the Committee on Homeland Security of the 
     House of Representatives, the Committee on Transportation and 
     Infrastructure of the House of Representatives, the Committee 
     on Homeland Security and Governmental Affairs of the Senate, 
     and the Committee on Commerce, Science and Transportation of 
     the Senate that--
       (A) the entity was selected by the Department of Homeland 
     Security as a contractor to develop or construct the system 
     or element concerned through the use of competitive 
     procedures; and
       (B) the Department took appropriate steps to prevent any 
     organizational conflict of interest in the selection process; 
     or
       (2) the entity was selected by a subcontractor to serve as 
     a lower-tier subcontractor, through a process over which the 
     entity exercised no control.
       (c) Construction.--Nothing in this section shall be 
     construed to preclude an entity described in subsection (a) 
     from performing work necessary to integrate two or more 
     individual systems or elements of a system of systems with 
     each other.
       (d) Regulations Update.--Not later than July 1, 2007, the 
     Secretary of Homeland Security shall update the acquisition 
     regulations of the Department of Homeland Security in order 
     to specify fully in such regulations the matters with respect 
     to lead system integrators set forth in this section. 
     Included in such regulations shall be: (1) a precise and 
     comprehensive definition of the term ``lead system 
     integrator'', modeled after that used by the Department of 
     Defense; and (2) a specification of various types of 
     contracts and fee structures that are appropriate for use by 
     lead system integrators in the production, fielding, and 
     sustainment of complex systems.

                               CHAPTER 5

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 6501. 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. 6502. 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. 6503. Section 20501 of the Continuing Appropriations 
     Resolution, 2007 (division B of Public Law 109-289, as 
     amended by Public Law 110-5) is amended by inserting after 
     ``$55,663,000'' the following: ``of which $13,000,000 shall 
     be for Save America's Treasures''.
       Sec. 6504. Funds made available to the United States Fish 
     and Wildlife Service for fiscal year 2007 under the heading 
     ``Land Acquisition'' may be used for land conservation 
     partnerships authorized by the Highlands Conservation Act of 
     2004.

                               CHAPTER 6

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                     National Institutes of Health


         National Institute of Allergy and Infectious Diseases

                          (TRANSFER OF FUNDS)

       Of the amount provided by the Continuing Appropriations 
     Resolution, 2007 (division B of Public Law 109-289, as 
     amended by Public Law 110-5) for ``National Institute of 
     Allergy and Infectious Diseases'', $49,500,000 shall be 
     transferred to ``Public Health and Social Services Emergency 
     Fund'' to carry out activities relating to advanced research 
     and development as provided by section 319L of the Public 
     Health Service Act.


                         OFFICE OF THE DIRECTOR

                          (Transfer of Funds)

       Of the amount provided by the Continuing Appropriations 
     Resolution, 2007 (division B of Public Law 109-289, as 
     amended by Public Law 110-5) for ``Office of the Director'', 
     $49,500,000 shall be transferred to ``Public Health and 
     Social Services Emergency Fund'' to carry out activities 
     relating to advanced research and development as provided by 
     section 319L of the Public Health Service Act.


                     NATIONAL COUNCIL ON DISABILITY

                         Salaries and Expenses

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

                    GENERAL PROVISIONS--THIS CHAPTER


             (INCLUDING TRANSFERS OF FUNDS AND RESCISSIONS)

       Sec. 6601. Section 20602 of the Continuing Appropriations 
     Resolution, 2007 (division B of Public Law 109-289, as 
     amended by Public Law 110-5) is amended by inserting the 
     following after ``$5,000,000'': ``(together with an 
     additional $7,000,000 which shall be transferred by the 
     Pension Benefit Guaranty Corporation as an authorized 
     administrative cost), to remain available through September 
     30, 2008,''.
       Sec. 6602. (a) None of the funds available to the Mine 
     Safety and Health Administration under the Continuing 
     Appropriations Resolution, 2007 (division B of Public Law 
     109-289, as amended by Public Law 110-5) shall be used to 
     enter into or carry out a contract for the performance by a 
     contractor of any operations or services pursuant to the 
     public-private competitions conducted under Office of 
     Management and Budget Circular A-76.
       (b) Hereafter, Federal employees at the Mine Safety and 
     Health Administration 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. 6603. Section 20607 of the Continuing Appropriations 
     Resolution, 2007 (division B of Public Law 109-289, as 
     amended by Public Law 110-5) is amended by inserting ``of 
     which $9,666,000 shall be for the Women's Bureau,'' after 
     ``for child labor activities,''.
       Sec. 6604. Of the amount provided for ``Department of 
     Health and Human Services, Health Resources and Services 
     Administration, Health Resources and Services'' in the 
     Continuing Appropriations Resolution, 2007 (division B of 
     Public Law 109-289, as amended by Public Law 110-5), 
     $23,000,000 shall be for Poison Control Centers.
       Sec. 6605. From the amounts made available by the 
     Continuing Appropriations Resolution, 2007 (division B of 
     Public Law 109-289, as amended by Public Law 110-5) for the 
     Office of

[[Page 14025]]

     the Secretary, General Departmental Management under the 
     Department of Health and Human Services, $500,000 are 
     rescinded.
       Sec. 6606. Section 20625(b)(1) of the Continuing 
     Appropriations Resolution, 2007 (division B of Public Law 
     109-289, as amended by Public Law 110-5) is amended by--
       (1) striking ``$7,172,994,000'' and inserting 
     ``$7,176,431,000'';
       (2) amending subparagraph (A) to read as follows: ``(A) 
     $5,454,824,000 shall be for basic grants under section 1124 
     of the Elementary and Secondary Education Act of 1965 (ESEA), 
     of which up to $3,437,000 shall be available to the Secretary 
     of Education on October 1, 2006, to obtain annually updated 
     educational-agency-level census poverty data from the Bureau 
     of the Census;''; and
       (3) amending subparagraph (C) to read as follows: ``(C) not 
     to exceed $2,352,000 may be available for section 1608 of the 
     ESEA and for a clearinghouse on comprehensive school reform 
     under part D of title V of the ESEA;''.
       Sec. 6607. The provision in the first proviso under the 
     heading ``Rehabilitation Services and Disability Research'' 
     in the Department of Education Appropriations Act, 2006, 
     relating to alternative financing programs under section 
     4(b)(2)(D) of the Assistive Technology Act of 1998 shall not 
     apply to funds appropriated by the Continuing Appropriations 
     Resolution, 2007.
       Sec. 6608. From the amounts made available by the 
     Continuing Appropriations Resolution, 2007 (division B of 
     Public Law 109-289, as amended by Public Law 110-5) for 
     administrative expenses of the Department of Education, 
     $500,000 are rescinded: Provided, That such reduction shall 
     not apply to funds available to the Office for Civil Rights 
     and the Office of the Inspector General.
       Sec. 6609. 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. 6610. (a) Section 1310.12(a) of title 45, Code of 
     Federal Regulations, shall take effect 30 days after the date 
     of enactment of this Act.
       (b)(1) Not later than 60 days after the National Highway 
     Traffic Safety Administration of the Department of 
     Transportation submits its study on occupant protection on 
     Head Start transit vehicles (related to Government 
     Accountability Office report GAO-06-767R), the Secretary of 
     Health and Human Services shall review and shall revise as 
     necessary the allowable alternate vehicle standards described 
     in that part 1310 (or any corresponding similar regulation or 
     ruling) relating to allowable alternate vehicles used to 
     transport children for a Head Start program. In making any 
     such revision, the Secretary shall revise the standards to be 
     consistent with the findings contained in such study, 
     including making a determination on the exemption of such a 
     vehicle from Federal seat spacing requirements, and Federal 
     supporting seating requirements related to 
     compartmentalization, if such vehicle meets all other 
     applicable Federal motor vehicle safety standards, including 
     standards for seating systems, occupant crash protection, 
     seat belt assemblies, and child restraint anchorage systems 
     consistent with that part 1310 (or any corresponding similar 
     regulation or ruling).
       (2) Notwithstanding subsection (a), until such date as the 
     Secretary of Health and Human Services completes the review 
     and any necessary revision specified in paragraph (1), the 
     provisions of section 1310.12(a) relating to Federal seat 
     spacing requirements, and Federal supporting seating 
     requirements related to compartmentalization, for allowable 
     alternate vehicles used to transport children for a Head 
     Start program, shall not apply to such a vehicle if such 
     vehicle meets all other applicable Federal motor vehicle 
     safety standards, as described in paragraph (1).
       Sec. 6611. (a)(1) Section 3(37)(G) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 
     1002(37)(G)) (as amended by section 1106(a) of the Pension 
     Protection Act of 2006) is amended--
       (A) in clause (i)(II)(aa), by striking ``for each of the 3 
     plan years immediately before the date of the enactment of 
     the Pension Protection Act of 2006,'' and inserting ``for 
     each of the 3 plan years immediately preceding the first plan 
     year for which the election under this paragraph is effective 
     with respect to the plan,'';
       (B) in clause (ii), by striking ``starting with the first 
     plan year ending after the date of the enactment of the 
     Pension Protection Act of 2006'' and inserting ``starting 
     with any plan year beginning on or after January 1, 1999, and 
     ending before January 1, 2008, as designated by the plan in 
     the election made under clause (i)(II)''; and
       (C) by adding at the end the following new clause:
       ``(vii) For purposes of this Act and the Internal Revenue 
     Code of 1986, a plan making an election under this 
     subparagraph shall be treated as maintained pursuant to a 
     collective bargaining agreement if a collective bargaining 
     agreement, expressly or otherwise, provides for or permits 
     employer contributions to the plan by one or more employers 
     that are signatory to such agreement, or participation in the 
     plan by one or more employees of an employer that is 
     signatory to such agreement, regardless of whether the plan 
     was created, established, or maintained for such employees by 
     virtue of another document that is not a collective 
     bargaining agreement.''.
       (2) Paragraph (6) of section 414(f) of the Internal Revenue 
     Code of 1986 (relating to election with regard to 
     multiemployer status) (as amended by section 1106(b) of the 
     Pension Protection Act of 2006) is amended--
       (A) in subparagraph (A)(ii)(I), by striking ``for each of 
     the 3 plan years immediately before the date of enactment of 
     the Pension Protection Act of 2006,'' and inserting ``for 
     each of the 3 plan years immediately preceding the first plan 
     year for which the election under this paragraph is effective 
     with respect to the plan,'';
       (B) in subparagraph (B), by striking ``starting with the 
     first plan year ending after the date of the enactment of the 
     Pension Protection Act of 2006'' and inserting ``starting 
     with any plan year beginning on or after January 1, 1999, and 
     ending before January 1, 2008, as designated by the plan in 
     the election made under subparagraph (A)(ii)''; and
       (C) by adding at the end the following new subparagraph:
       ``(F) Maintenance under collective bargaining agreement.--
     For purposes of this title and the Employee Retirement Income 
     Security Act of 1974, a plan making an election under this 
     paragraph shall be treated as maintained pursuant to a 
     collective bargaining agreement if a collective bargaining 
     agreement, expressly or otherwise, provides for or permits 
     employer contributions to the plan by one or more employers 
     that are signatory to such agreement, or participation in the 
     plan by one or more employees of an employer that is 
     signatory to such agreement, regardless of whether the plan 
     was created, established, or maintained for such employees by 
     virtue of another document that is not a collective 
     bargaining agreement.''.
       (b)(1) Clause (vi) of section 3(37)(G) of the Employee 
     Retirement Income Security Act of 1974 (as amended by section 
     1106(a) of the Pension Protection Act of 2006) is amended by 
     striking ``if it is a plan--'' and all that follows and 
     inserting the following: ``if it is a plan sponsored by an 
     organization which is described in section 501(c)(5) of the 
     Internal Revenue Code of 1986 and exempt from tax under 
     section 501(a) of such Code and which was established in 
     Chicago, Illinois, on August 12, 1881.''.
       (2) Subparagraph (E) of section 414(f)(6) of the Internal 
     Revenue Code of 1986 (as amended by section 1106(b) of the 
     Pension Protection Act of 2006) is amended by striking ``if 
     it is a plan--'' and all that follows and inserting the 
     following: ``if it is a plan sponsored by an organization 
     which is described in section 501(c)(5) and exempt from tax 
     under section 501(a) and which was established in Chicago, 
     Illinois, on August 12, 1881.''.
       (c) The amendments made by this section shall take effect 
     as if included in section 1106 of the Pension Protection Act 
     of 2006.
       Sec. 6612. (a) Subclause (III) of section 420(f)(2)(E)(i) 
     of the Internal Revenue Code of 1986 is amended by striking 
     ``subsection (c)(2)(E)(ii)(II)'' and inserting ``subsection 
     (c)(3)(E)(ii)(II)''.
       (b) Section 420(e)(2)(B) of the Internal Revenue Code of 
     1986 is amended by striking ``funding shortfall'' and 
     inserting ``funding target''.
       (c) The amendments made by this section shall take effect 
     as if included in the provisions of the Pension Protection 
     Act of 2006 to which they relate.
       Sec. 6613. (a) Subparagraph (A) of section 420(c)(3) of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``transfer.'' and inserting ``transfer or, in the case of a 
     transfer which involves a plan maintained by an employer 
     described in subsection (f)(2)(E)(i)(III), if the plan meets 
     the requirements of subsection (f)(2)(D)(i)(II).''.
       (b) The amendment made by subsection (a) shall apply to 
     transfers after the date of the enactment of this Act.
       Sec. 6614. (a) Section 402(i)(1) of the Pension Protection 
     Act of 2006 is amended by striking ``December 28, 2007'' and 
     inserting ``January 1, 2008''.
       (b) The amendment made by subsection (a) shall take effect 
     as if included in section 402 of the Pension Protection Act 
     of 2006.
       Sec. 6615. (a) Section 402(a)(2) of the Pension Protection 
     Act of 2006 is amended by inserting ``and by using, in 
     determining the funding target for each of the 10 plan years 
     during such period, an interest rate of 8.25 percent (rather 
     than the segment rates calculated on the basis of the 
     corporate bond yield curve)'' after ``such plan year''.
       (b) The amendment made by this section shall take effect as 
     if included in the provisions of the Pension Protection Act 
     of 2006 to which such amendment relates.

                               CHAPTER 7

                           LEGISLATIVE BRANCH

                        HOUSE OF REPRESENTATIVES

      Payment to Widows and Heirs of Deceased Members of Congress

       For payment to Gloria W. Norwood, widow of Charles W. 
     Norwood, Jr., late a Representative from the State of 
     Georgia, $165,200.
       For payment to James McDonald, Jr., widower of Juanita 
     Millender-McDonald, late a Representative from the State of 
     California, $165,200.

                    GENERAL PROVISION--THIS CHAPTER

       Sec. 6701. (a) There is established in the Office of the 
     Architect of the Capitol the position

[[Page 14026]]

     of Chief Executive Officer for Visitor Services (in this 
     section referred to as the ``Chief Executive Officer''), who 
     shall be appointed by the Architect of the Capitol.
       (b) The Chief Executive Officer shall be responsible for 
     the operation and management of the Capitol Visitor Center, 
     subject to the direction of the Architect of the Capitol. In 
     carrying out these responsibilities, the Chief Executive 
     Officer shall report directly to the Architect of the Capitol 
     and shall be subject to policy review and oversight by the 
     Committee on Rules and Administration of the Senate and the 
     Committee on House Administration of the House of 
     Representatives.
       (c) The Chief Executive Officer shall be paid at an annual 
     rate equal to the annual rate of pay for the Chief Operating 
     Officer of the Office of the Architect of the Capitol.
       (d) This section shall apply with respect to fiscal year 
     2007 and each succeeding fiscal year.

                               CHAPTER 8

                    GENERAL PROVISIONS--THIS CHAPTER


                          TECHNICAL AMENDMENT

       Sec. 6801. (a) Notwithstanding any other provision of law, 
     subsection (c) under the heading ``Assistance for the 
     Independent States of the Former Soviet Union'' in Public Law 
     109-102, shall not apply to funds appropriated by the 
     Continuing Appropriations Resolution, 2007 (Public Law 109-
     289, division B) as amended by Public Laws 109-369, 109-383, 
     and 110-5.
       (b) Section 534(k) of the Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 2006 
     (Public Law 109-102) is amended, in the second proviso, by 
     inserting after ``subsection (b) of that section'' the 
     following: ``and the requirement that a majority of the 
     members of the board of directors be United States citizens 
     provided in subsection (d)(3)(B) of that section''.
       (c) Subject to section 101(c)(2) of the Continuing 
     Appropriations Resolution, 2007 (division B of Public Law 
     109-289, as amended by Public Law 110-5), the amount of funds 
     appropriated for ``Foreign Military Financing Program'' 
     pursuant to such Resolution shall be construed to be the 
     total of the amount appropriated for such program by section 
     20401 of that Resolution and the amount made available for 
     such program by section 591 of the Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 2006 
     (Public Law 109-102) which is made applicable to the fiscal 
     year 2007 by the provisions of such Resolution.
       Sec. 6802. Notwithstanding any provision of title I of 
     division B of the Continuing Appropriations Resolution, 2007 
     (division B of Public Law 109-289, as amended by Public Laws 
     109-369, 109-383, and 110-5), the dollar amount limitation of 
     the first proviso under the heading, ``Administration of 
     Foreign Affairs, Diplomatic and Consular Programs'', in title 
     IV of the Science, State, Justice, Commerce, and Related 
     Agencies Appropriations Act, 2006 (Public Law 109-108; 119 
     Stat. 2319) shall not apply to funds appropriated under such 
     heading for fiscal year 2007.

                               CHAPTER 9

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

             Office of Federal Housing Enterprise Oversight


                         Salaries and Expenses

                     (including transfer of funds)

       For an additional amount to carry out the Federal Housing 
     Enterprises Financial Safety and Soundness Act of 1992, 
     $6,150,000, to remain available until expended, to be derived 
     from the Federal Housing Enterprises Oversight Fund and to be 
     subject to the same terms and conditions pertaining to funds 
     provided under this heading in Public Law 109-115: Provided, 
     That not to exceed the total amount provided for these 
     activities for fiscal year 2007 shall be available from the 
     general fund of the Treasury to the extent necessary to incur 
     obligations and make expenditures pending the receipt of 
     collections to the Fund: Provided further, That the general 
     fund amount shall be reduced as collections are received 
     during the fiscal year so as to result in a final 
     appropriation from the general fund estimated at not more 
     than $0.

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 6901. (a) Hereafter, funds limited or appropriated for 
     the Department of Transportation may be obligated or expended 
     to grant authority to a Mexico-domiciled 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.
       (b) Prior to the initiation of the pilot program described 
     in subsection (a) in any fiscal year--
       (1) the Inspector General of the Department of 
     Transportation shall transmit to Congress and the Secretary 
     of Transportation a report verifying compliance with each of 
     the requirements of subsection (a) of section 350 of Public 
     Law 107-87, including whether the Secretary of Transportation 
     has established sufficient mechanisms to apply Federal motor 
     carrier safety laws and regulations to motor carriers 
     domiciled in Mexico that are granted authority to operate 
     beyond the United States municipalities and commercial zones 
     on the United States-Mexico border and to ensure compliance 
     with such laws and regulations; and
       (2) the Secretary of Transportation shall--
       (A) take such action as may be necessary to address any 
     issues raised in the report of the Inspector General under 
     subsection (b)(1) and submit a report to Congress detailing 
     such actions; and
       (B) publish in the Federal Register, and provide sufficient 
     opportunity for public notice and comment--
       (i) comprehensive data and information on the pre-
     authorization safety audits conducted before and after the 
     date of enactment of this Act of motor carriers domiciled in 
     Mexico that are granted authority to operate beyond the 
     United States municipalities and commercial zones on the 
     United States-Mexico border;
       (ii) specific measures to be required to protect the health 
     and safety of the public, including enforcement measures and 
     penalties for noncompliance;
       (iii) specific measures to be required to ensure compliance 
     with section 391.11(b)(2) and section 365.501(b) of title 49, 
     Code of Federal Regulations;
       (iv) specific standards to be used to evaluate the pilot 
     program and compare any change in the level of motor carrier 
     safety as a result of the pilot program; and
       (v) a list of Federal motor carrier safety laws and 
     regulations, including the commercial drivers license 
     requirements, for which the Secretary of Transportation will 
     accept compliance with a corresponding Mexican law or 
     regulation as the equivalent to compliance with the United 
     States law or regulation, including for each law or 
     regulation an analysis as to how the corresponding United 
     States and Mexican laws and regulations differ.
       (c) During and following the pilot program described in 
     subsection (a), the Inspector General of the Department of 
     Transportation shall monitor and review the conduct of the 
     pilot program and submit to Congress and the Secretary of 
     Transportation an interim report, 6 months after the 
     commencement of the pilot program, and a final report, within 
     60 days after the conclusion of the pilot program. Such 
     reports shall address whether--
       (1) the Secretary of Transportation has established 
     sufficient mechanisms to determine whether the pilot program 
     is having any adverse effects on motor carrier safety;
       (2) Federal and State monitoring and enforcement activities 
     are sufficient to ensure that participants in the pilot 
     program are in compliance with all applicable laws and 
     regulations; and
       (3) the pilot program consists of a representative and 
     adequate sample of Mexico-domiciled carriers likely to engage 
     in cross-border operations beyond United States 
     municipalities and commercial zones on the United States-
     Mexico border.
       (d) In the event that the Secretary of Transportation in 
     any fiscal year seeks to grant operating authority for the 
     purpose of initiating cross-border operations beyond United 
     States municipalities and commercial zones on the United 
     States-Mexico border either with Mexico-domiciled motor 
     coaches or Mexico-domiciled commercial motor vehicles 
     carrying placardable quantities of hazardous materials, such 
     activities shall be initiated only after the conclusion of a 
     separate pilot program limited to vehicles of the pertinent 
     type. Each such separate pilot program shall follow the same 
     requirements and processes stipulated under subsections (a) 
     through (c) of this section and shall be planned, conducted 
     and evaluated in concert with the Department of Homeland 
     Security or its Inspector General, as appropriate, so as to 
     address any and all security concerns associated with such 
     cross-border operations.
       Sec. 6902. Funds provided for the ``National Transportation 
     Safety Board, Salaries and Expenses'' in section 21031 of the 
     Continuing Appropriations Resolution, 2007 (division B of 
     Public Law 109-289, as amended by Public Law 110-5) include 
     amounts necessary to make lease payments due in fiscal year 
     2007 only, on an obligation incurred in 2001 under a capital 
     lease.
       Sec. 6903. Section 21033 of the Continuing Appropriations 
     Resolution, 2007 (division B of Public Law 109-289, as 
     amended by Public Law 110-5) is amended by adding after the 
     second proviso: ``: Provided further, That paragraph (2) 
     under such heading in Public Law 109-115 (119 Stat. 2441) 
     shall be funded at $149,300,000, but additional section 8 
     tenant protection rental assistance costs may be funded in 
     2007 by using unobligated balances, notwithstanding the 
     purposes for which such amounts were appropriated, including 
     recaptures and carryover, remaining from funds appropriated 
     to the Department of Housing and Urban Development under this 
     heading, the heading `Annual Contributions for Assisted 
     Housing', the heading `Housing Certificate Fund', and the 
     heading `Project-Based Rental Assistance' for fiscal year 
     2006 and prior fiscal years: Provided further, That paragraph 
     (3) under such heading in Public Law 109-115 (119 Stat. 2441) 
     shall be funded at $47,500,000: Provided further, That 
     paragraph (4) under such heading in Public Law 109-115 (119 
     Stat. 2441) shall be funded at $5,900,000: Provided further, 
     That paragraph (5) under such heading in Public Law 109-115 
     (119 Stat. 2441) shall be funded at $1,281,100,000, of which 
     $1,251,100,000 shall be allocated for the calendar year 2007 
     funding cycle on a pro rata basis to public housing agencies 
     based on the amount public housing agencies were eligible to 
     receive in calendar year 2006, and of which up to $30,000,000 
     shall be available to the Secretary to allocate to public 
     housing agencies that need

[[Page 14027]]

     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. 6904. Section 232(b) of the Departments of Veterans 
     Affairs and Housing and Urban Development, and Independent 
     Agencies Appropriations Act, 2001 (Public Law 106-377) is 
     amended to read as follows:
       ``(b) Applicability.--In the case of any dwelling unit 
     that, upon the date of the enactment of this Act, is assisted 
     under a housing assistance payment contract under section 
     8(o)(13) as in effect before such enactment, or under section 
     8(d)(2) of the United States Housing Act of 1937 (42 U.S.C. 
     1437f(d)(2)) as in effect before the enactment of the Quality 
     Housing and Work Responsibility Act of 1998 (title V of 
     Public Law 105-276), assistance may be renewed or extended 
     under such section 8(o)(13), as amended by subsection (a), 
     provided that the initial contract term and rent of such 
     renewed or extended assistance shall be determined pursuant 
     to subparagraphs (F) and (H), and subparagraphs (C) and (D) 
     of such section shall not apply to such extensions or 
     renewals.''.

   TITLE VII--ELIMINATION OF SCHIP SHORTFALL AND OTHER HEALTH MATTERS

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

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

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

                     GENERAL PROVISIONS--THIS TITLE

       Sec. 7001. (a) Elimination of Remainder of SCHIP Funding 
     Shortfalls, Tiered Match, and Other Limitation on 
     Expenditures.--Section 2104(h) of the Social Security Act (42 
     U.S.C. 1397dd(h)), as added by section 201(a) of the National 
     Institutes of Health Reform Act of 2006 (Public Law 109-482), 
     is amended--
       (1) in the heading for paragraph (2), by striking 
     ``remainder of reduction'' and inserting ``part''; and
       (2) by striking paragraph (4) and inserting the following:
       ``(4) Additional amounts to eliminate remainder of fiscal 
     year 2007 funding shortfalls.--
       ``(A) In general.--From the amounts provided in advance in 
     appropriations Acts, the Secretary shall allot to each 
     remaining shortfall State described in subparagraph (B) such 
     amount as the Secretary determines will eliminate the 
     estimated shortfall described in such subparagraph for the 
     State for fiscal year 2007.
       ``(B) Remaining shortfall state described.--For purposes of 
     subparagraph (A), a remaining shortfall State is a State with 
     a State child health plan approved under this title for which 
     the Secretary estimates, on the basis of the most recent data 
     available to the Secretary as of the date of the enactment of 
     this paragraph, that the projected Federal expenditures under 
     such plan for the State for fiscal year 2007 will exceed the 
     sum of--
       ``(i) the amount of the State's allotments for each of 
     fiscal years 2005 and 2006 that will not be expended by the 
     end of fiscal year 2006;
       ``(ii) the amount of the State's allotment for fiscal year 
     2007; and
       ``(iii) the amounts, if any, that are to be redistributed 
     to the State during fiscal year 2007 in accordance with 
     paragraphs (1) and (2).''.
       (b) Conforming Amendments.--Section 2104(h) of such Act (42 
     U.S.C. 1397dd(h)) (as so added), is amended--
       (1) in paragraph (1)(B), by striking ``subject to paragraph 
     (4)(B) and'';
       (2) in paragraph (2)(B), by striking ``subject to paragraph 
     (4)(B) and'';
       (3) in paragraph (5)(A), by striking ``and (3)'' and 
     inserting ``(3), and (4)''; and
       (4) in paragraph (6)--
       (A) in the first sentence--
       (i) by inserting ``or allotted'' after ``redistributed''; 
     and
       (ii) by inserting ``or allotments'' after 
     ``redistributions''; and
       (B) by striking ``and (3)'' and inserting ``(3), and (4)''.
       Sec. 7002. (a) Prohibition.--
       (1) Limitation on secretarial authority.--Notwithstanding 
     any other provision of law, the Secretary of Health and Human 
     Services shall not, prior to the date that is 1 year after 
     the date of enactment of this Act, take any action (through 
     promulgation of regulation, issuance of regulatory guidance, 
     or other administrative action) to--
       (A) finalize or otherwise implement provisions contained in 
     the proposed rule published on January 18, 2007, on pages 
     2236 through 2248 of volume 72, Federal Register (relating to 
     parts 433, 447, and 457 of title 42, Code of Federal 
     Regulations);
       (B) promulgate or implement any rule or provisions similar 
     to the provisions described in subparagraph (A) pertaining to 
     the Medicaid program established under title XIX of the 
     Social Security Act or the State Children's Health Insurance 
     Program established under title XXI of such Act; or
       (C) promulgate or implement any rule or provisions 
     restricting payments for graduate medical education under the 
     Medicaid program.
       (2) Continuation of other secretarial authority.--The 
     Secretary of Health and Human Service shall not be prohibited 
     during the period described in paragraph (1) from taking any 
     action (through promulgation of regulation, issuance of 
     regulatory guidance, or other administrative action) to 
     enforce a provision of law in effect as of the date of 
     enactment of this Act with respect to the Medicaid program or 
     the State Children's Health Insurance Program, or to 
     promulgate or implement a new rule or provision during such 
     period with respect to such programs, other than a rule or 
     provision described in paragraph (1) and subject to the 
     prohibition set forth in that paragraph.
       (b) Requirement for Use of Tamper-Resistant Prescription 
     Pads Under the Medicaid Program.--
       (1) In general.--Section 1903(i) of the Social Security Act 
     (42 U.S.C. 1396b(i)) is amended--
       (A) by striking ``or'' at the end of paragraph (21);
       (B) by striking the period at the end of paragraph (22) and 
     inserting ``; or''; and
       (C) by inserting after paragraph (22) the following new 
     paragraph:
       ``(23) with respect to amounts expended for medical 
     assistance for covered outpatient drugs (as defined in 
     section 1927(k)(2)) for which the prescription was executed 
     in written (and non-electronic) form unless the prescription 
     was executed on a tamper-resistant pad.''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall apply to prescriptions executed after September 30, 
     2007.
       (c) Extension of Certain Pharmacy Plus Waivers.--
       (1) Authority to continue to operate waivers.--
     Notwithstanding any other provision of law, any State that is 
     operating a Pharmacy Plus waiver described in paragraph (2) 
     which would otherwise expire on June 30, 2007, may elect to 
     continue to operate the waiver through December 31, 2009, and 
     if a State elects to continue to operate such a waiver, the 
     Secretary of Health and Human Services shall approve the 
     continuation of the waiver through December 31, 2009.
       (2) Pharmacy plus waiver described.--For purposes of 
     paragraph (1), a Pharmacy Plus waiver described in this 
     paragraph is a waiver approved by the Secretary of Health and 
     Human Services under the authority of section 1115 of the 
     Social Security Act (42 U.S.C. 1315) that provides coverage 
     for prescription drugs for individuals who have attained age 
     65 and whose family income does not exceed 200 percent of the 
     poverty line (as defined in section 2110(c)(5) of such Act 
     (42 U.S.C. 1397jj(c)(5))).

              TITLE VIII--FAIR MINIMUM WAGE AND TAX RELIEF

                     Subtitle A--Fair Minimum Wage

     SEC. 8101. SHORT TITLE.

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

     SEC. 8102. 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. 8103. APPLICABILITY OF MINIMUM WAGE TO AMERICAN SAMOA 
                   AND THE COMMONWEALTH OF THE NORTHERN MARIANA 
                   ISLANDS.

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

[[Page 14028]]

       (A) by striking sections 5 and 8; and
       (B) in section 6(a), by striking paragraph (3) and 
     redesignating paragraphs (4) and (5) as paragraphs (3) and 
     (4), respectively.
       (2) Effective date.--The amendments made by this subsection 
     shall take effect 60 days after the date of enactment of this 
     Act.

     SEC. 8104. STUDY ON PROJECTED IMPACT.

       (a) Study.--Beginning on the date that is 60 days after the 
     date of enactment of this Act, the Secretary of Labor shall, 
     through the Bureau of Labor Statistics, conduct a study to--
       (1) assess the impact of the wage increases required by 
     this Act through such date; and
       (2) project the impact of any further wage increase,

     on living standards and rates of employment in American Samoa 
     and the Commonwealth of the Northern Mariana Islands.
       (b) Report.--Not later than the date that is 8 months after 
     the date of enactment of this Act, the Secretary of Labor 
     shall transmit to Congress a report on the findings of the 
     study required by subsection (a).

               Subtitle B--Small Business Tax Incentives

     SEC. 8201. SHORT TITLE; AMENDMENT OF CODE; TABLE OF CONTENTS.

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

Sec. 8201. Short title; amendment of Code; table of contents.

              Part 1--Small Business Tax Relief Provisions


                      Subpart A--General provisions

Sec. 8211. Extension and modification of work opportunity tax credit.
Sec. 8212. Extension and increase of expensing for small business.
Sec. 8213. Determination of credit for certain taxes paid with respect 
              to employee cash tips.
Sec. 8214. Waiver of individual and corporate alternative minimum tax 
              limits on work opportunity credit and credit for taxes 
              paid with respect to employee cash tips.
Sec. 8215. Family business tax simplification.


             Subpart B--Gulf Opportunity Zone tax incentives

Sec. 8221. Extension of increased expensing for qualified section 179 
              Gulf Opportunity Zone property.
Sec. 8222. Extension and expansion of low-income housing credit rules 
              for buildings in the GO Zones.
Sec. 8223. Special tax-exempt bond financing rule for repairs and 
              reconstructions of residences in the GO Zones.
Sec. 8224. GAO study of practices employed by State and local 
              governments in allocating and utilizing tax incentives 
              provided pursuant to the Gulf Opportunity Zone Act of 
              2005.


                    Subpart C--Subchapter S provisions

Sec. 8231. Capital gain of S corporation not treated as passive 
              investment income.
Sec. 8232. Treatment of bank director shares.
Sec. 8233. Special rule for bank required to change from the reserve 
              method of accounting on becoming S corporation.
Sec. 8234. Treatment of the sale of interest in a qualified subchapter 
              S subsidiary.
Sec. 8235. Elimination of all earnings and profits attributable to pre-
              1983 years for certain corporations.
Sec. 8236. Deductibility of interest expense on indebtedness incurred 
              by an electing small business trust to acquire S 
              corporation stock.

                       Part 2--Revenue Provisions

Sec. 8241. Increase in age of children whose unearned income is taxed 
              as if parent's income.
Sec. 8242. Suspension of certain penalties and interest.
Sec. 8243. Modification of collection due process procedures for 
              employment tax liabilities.
Sec. 8244. Permanent extension of IRS user fees.
Sec. 8245. Increase in penalty for bad checks and money orders.
Sec. 8246. Understatement of taxpayer liability by return preparers.
Sec. 8247. Penalty for filing erroneous refund claims.
Sec. 8248. Time for payment of corporate estimated taxes.

              PART 1--SMALL BUSINESS TAX RELIEF PROVISIONS

                     Subpart A--General Provisions

     SEC. 8211. EXTENSION AND MODIFICATION OF WORK OPPORTUNITY TAX 
                   CREDIT.

       (a) Extension.--Section 51(c)(4)(B) (relating to 
     termination) is amended by striking ``December 31, 2007'' and 
     inserting ``August 31, 2011''.
       (b) Increase in Maximum Age for Designated Community 
     Residents.--
       (1) In general.--Paragraph (5) of section 51(d) is amended 
     to read as follows:
       ``(5) Designated community residents.--
       ``(A) In general.--The term `designated community resident' 
     means any individual who is certified by the designated local 
     agency--
       ``(i) as having attained age 18 but not age 40 on the 
     hiring date, and
       ``(ii) as having his principal place of abode within an 
     empowerment zone, enterprise community, renewal community, or 
     rural renewal county.
       ``(B) Individual must continue to reside in zone, 
     community, or county.--In the case of a designated community 
     resident, the term `qualified wages' shall not include wages 
     paid or incurred for services performed while the 
     individual's principal place of abode is outside an 
     empowerment zone, enterprise community, renewal community, or 
     rural renewal county.
       ``(C) Rural renewal county.--For purposes of this 
     paragraph, the term `rural renewal county' means any county 
     which--
       ``(i) is outside a metropolitan statistical area (defined 
     as such by the Office of Management and Budget), and
       ``(ii) during the 5-year periods 1990 through 1994 and 1995 
     through 1999 had a net population loss.''.
       (2) Conforming amendment.--Subparagraph (D) of section 
     51(d)(1) is amended to read as follows:
       ``(D) a designated community resident,''.
       (c) Clarification of Treatment of Individuals Under 
     Individual Work Plans.--Subparagraph (B) of section 51(d)(6) 
     (relating to vocational rehabilitation referral) is amended 
     by striking ``or'' at the end of clause (i), by striking the 
     period at the end of clause (ii) and inserting ``, or'', and 
     by adding at the end the following new clause:
       ``(iii) an individual work plan developed and implemented 
     by an employment network pursuant to subsection (g) of 
     section 1148 of the Social Security Act with respect to which 
     the requirements of such subsection are met.''.
       (d) Treatment of Disabled Veterans Under the Work 
     Opportunity Tax Credit.--
       (1) Disabled veterans treated as members of targeted 
     group.--
       (A) In general.--Subparagraph (A) of section 51(d)(3) 
     (relating to qualified veteran) is amended by striking 
     ``agency as being a member of a family'' and all that follows 
     and inserting ``agency as--
       ``(i) being a member of a family receiving assistance under 
     a food stamp program under the Food Stamp Act of 1977 for at 
     least a 3-month period ending during the 12-month period 
     ending on the hiring date, or
       ``(ii) entitled to compensation for a service-connected 
     disability, and--

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

       (B) Definitions.--Paragraph (3) of section 51(d) is amended 
     by adding at the end the following new subparagraph:
       ``(C) Other definitions.--For purposes of subparagraph (A), 
     the terms `compensation' and `service-connected' have the 
     meanings given such terms under section 101 of title 38, 
     United States Code.''.
       (2) Increase in amount of wages taken into account for 
     disabled veterans.--Paragraph (3) of section 51(b) is 
     amended--
       (A) by inserting ``($12,000 per year in the case of any 
     individual who is a qualified veteran by reason of subsection 
     (d)(3)(A)(ii))'' before the period at the end, and
       (B) by striking ``Only first $6,000 of'' in the heading and 
     inserting ``Limitation on''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to individuals who begin work for the employer 
     after the date of the enactment of this Act.

     SEC. 8212. EXTENSION AND INCREASE OF EXPENSING FOR SMALL 
                   BUSINESS.

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

     SEC. 8213. DETERMINATION OF CREDIT FOR CERTAIN TAXES PAID 
                   WITH RESPECT TO EMPLOYEE CASH TIPS.

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

[[Page 14029]]



     SEC. 8214. WAIVER OF INDIVIDUAL AND CORPORATE ALTERNATIVE 
                   MINIMUM TAX LIMITS ON WORK OPPORTUNITY CREDIT 
                   AND CREDIT FOR TAXES PAID WITH RESPECT TO 
                   EMPLOYEE CASH TIPS.

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

     SEC. 8215. FAMILY BUSINESS TAX SIMPLIFICATION.

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

            Subpart B--Gulf Opportunity Zone Tax Incentives

     SEC. 8221. EXTENSION OF INCREASED EXPENSING FOR QUALIFIED 
                   SECTION 179 GULF OPPORTUNITY ZONE PROPERTY.

       Paragraph (2) of section 1400N(e) (relating to qualified 
     section 179 Gulf Opportunity Zone property) is amended--
       (1) by striking ``this subsection, the term'' and 
     inserting:

     ``this subsection--
       ``(A) In general.--The term'', and
       (2) by adding at the end the following new subparagraph:
       ``(B) Extension for certain property.--In the case of 
     property substantially all of the use of which is in one or 
     more specified portions of the GO Zone (as defined by 
     subsection (d)(6)), such term shall include section 179 
     property (as so defined) which is described in subsection 
     (d)(2), determined--
       ``(i) without regard to subsection (d)(6), and
       ``(ii) by substituting `2008' for `2007' in subparagraph 
     (A)(v) thereof.''.

     SEC. 8222. EXTENSION AND EXPANSION OF LOW-INCOME HOUSING 
                   CREDIT RULES FOR BUILDINGS IN THE GO ZONES.

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

     SEC. 8223. SPECIAL TAX-EXEMPT BOND FINANCING RULE FOR REPAIRS 
                   AND RECONSTRUCTIONS OF RESIDENCES IN THE GO 
                   ZONES.

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

     SEC. 8224. GAO STUDY OF PRACTICES EMPLOYED BY STATE AND LOCAL 
                   GOVERNMENTS IN ALLOCATING AND UTILIZING TAX 
                   INCENTIVES PROVIDED PURSUANT TO THE GULF 
                   OPPORTUNITY ZONE ACT OF 2005.

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

                   Subpart C--Subchapter S Provisions

     SEC. 8231. 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 subparagraphs:
       ``(B) Gross receipts from the sales of certain assets.--For 
     purposes of this paragraph--
       ``(i) in the case of dispositions of capital assets (other 
     than stock and securities), gross receipts from such 
     dispositions shall be taken into account only to the extent 
     of the capital gain net income therefrom, and
       ``(ii) in the case of sales or exchanges of stock or 
     securities, gross receipts shall be taken into account only 
     to the extent of the gains therefrom.
       ``(C) 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

[[Page 14030]]

     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) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 8232. 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. 8233. 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. 8234. TREATMENT OF THE SALE OF INTEREST IN A QUALIFIED 
                   SUBCHAPTER S SUBSIDIARY.

       (a) In General.--Subparagraph (C) of section 1361(b)(3) 
     (relating to treatment of terminations of qualified 
     subchapter S subsidiary status) is amended--
       (1) by striking ``For purposes of this title,'' and 
     inserting the following:
       ``(i) In general.--For purposes of this title,'', and
       (2) by inserting at the end the following new clause:
       ``(ii) Termination by reason of sale of stock.--If the 
     failure to meet the requirements of subparagraph (B) is by 
     reason of the sale of stock of a corporation which is a 
     qualified subchapter S subsidiary, the sale of such stock 
     shall be treated as if--

       ``(I) the sale were a sale of an undivided interest in the 
     assets of such corporation (based on the percentage of the 
     corporation's stock sold), and
       ``(II) the sale were followed by an acquisition by such 
     corporation of all of its assets (and the assumption by such 
     corporation of all of its liabilities) in a transaction to 
     which section 351 applies.''.

       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

     SEC. 8235. 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. 8236. 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 2--REVENUE PROVISIONS

     SEC. 8241. INCREASE IN AGE OF 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) Conforming Amendment.--Subsection (g) of section 1 is 
     amended by striking ``Minor'' in the heading thereof.
       (c) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 8242. SUSPENSION OF CERTAIN PENALTIES AND INTEREST.

       (a) In General.--Paragraphs (1)(A) and (3)(A) of section 
     6404(g) are each amended by striking ``18-month period'' and 
     inserting ``36-month period''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to notices provided by the Secretary of the 
     Treasury, or his delegate, after the date which is 6 months 
     after the date of the enactment of this Act.

     SEC. 8243. MODIFICATION OF COLLECTION DUE PROCESS PROCEDURES 
                   FOR EMPLOYMENT TAX LIABILITIES.

       (a) In General.--Section 6330(f) (relating to jeopardy and 
     State refund collection) is amended--
       (1) by striking ``; or'' at the end of paragraph (1) and 
     inserting a comma,
       (2) by adding ``or'' at the end of paragraph (2), and
       (3) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) the Secretary has served a disqualified employment 
     tax levy,''.
       (b) Disqualified Employment Tax Levy.--Section 6330 of such 
     Code (relating to notice and opportunity for hearing before 
     levy) is amended by adding at the end the following new 
     subsection:
       ``(h) Disqualified Employment Tax Levy.--For purposes of 
     subsection (f), a disqualified employment tax levy is any 
     levy in connection with the collection of employment taxes 
     for any taxable period if the person subject to the levy (or 
     any predecessor thereof) requested a hearing under this 
     section with respect to unpaid employment taxes arising in 
     the most recent 2-year period before the beginning of the 
     taxable period with respect to which the levy is served. For 
     purposes of the preceding sentence, the term

[[Page 14031]]

     `employment taxes' means any taxes under chapter 21, 22, 23, 
     or 24.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to levies served on or after the date that is 120 
     days after the date of the enactment of this Act.

     SEC. 8244. PERMANENT EXTENSION OF IRS USER FEES.

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

     SEC. 8245. 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. 8246. 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 ``4TAX 
     RETURN PREPARERS''.
       (ii) Section 6060(a) is amended--
       (I) by striking ``an income tax return preparer'' each 
     place it appears and inserting ``a tax return preparer'',
       (II) by striking ``each income tax return preparer'' and 
     inserting ``each tax return preparer'', and
       (III) by striking ``another income tax return preparer'' 
     and inserting ``another tax return preparer''.
       (iii) The item relating to section 6060 in the table of 
     sections for subpart F of part III of subchapter A of chapter 
     61 is amended by striking ``income tax return preparers'' and 
     inserting ``tax return preparers''.
       (iv) Subpart F of part III of subchapter A of chapter 61 is 
     amended by striking ``Income Tax Return Preparers'' in the 
     heading and inserting ``Tax Return Preparers''.
       (v) The item relating to subpart F in the table of subparts 
     for part III of subchapter A of chapter 61 is amended by 
     striking ``income tax return preparers'' and inserting ``tax 
     return preparers''.
       (B) Section 6103(k)(5) is amended--
       (i) by striking ``income tax return preparer'' each place 
     it appears and inserting ``tax return preparer'', and
       (ii) by striking ``income tax return preparers'' each place 
     it appears and inserting ``tax return preparers''.
       (C)(i) Section 6107 is amended--
       (I) by striking ``INCOME TAX RETURN PREPARER'' in the 
     heading and inserting ``TAX RETURN PREPARER'',
       (II) by striking ``an income tax return preparer'' each 
     place it appears in subsections (a) and (b) and inserting ``a 
     tax return preparer'',
       (III) by striking ``Income Tax Return Preparer'' in the 
     heading for subsection (b) and inserting ``Tax Return 
     Preparer'', and
       (IV) in subsection (c), by striking ``income tax return 
     preparers'' and inserting ``tax return preparers''.
       (ii) The item relating to section 6107 in the table of 
     sections for subchapter B of chapter 61 is amended by 
     striking ``Income tax return preparer'' and inserting ``Tax 
     return preparer''.
       (D) Section 6109(a)(4) is amended--
       (i) by striking ``an income tax return preparer'' and 
     inserting ``a tax return preparer'', and
       (ii) by striking ``income return preparer'' in the heading 
     and inserting ``tax return preparer''.
       (E) Section 6503(k)(4) is amended by striking ``Income tax 
     return preparers'' and inserting ``Tax return preparers''.
       (F)(i) Section 6694 is amended--
       (I) by striking ``INCOME TAX RETURN PREPARER'' in the 
     heading and inserting ``TAX RETURN PREPARER'',
       (II) by striking ``an income tax return preparer'' each 
     place it appears and inserting ``a tax return preparer'',
       (III) in subsection (c)(2), by striking ``the income tax 
     return preparer'' and inserting ``the tax return preparer'',
       (IV) in subsection (e), by striking ``subtitle A'' and 
     inserting ``this title'', and
       (V) in subsection (f), by striking ``income tax return 
     preparer'' and inserting ``tax return preparer''.
       (ii) The item relating to section 6694 in the table of 
     sections for part I of subchapter B of chapter 68 is amended 
     by striking ``income tax return preparer'' and inserting 
     ``tax return preparer''.
       (G)(i) Section 6695 is amended--
       (I) by striking ``INCOME'' in the heading, and
       (II) by striking ``an income tax return preparer'' each 
     place it appears and inserting ``a tax return preparer''.
       (ii) Section 6695(f) is amended--
       (I) by striking ``subtitle A'' and inserting ``this 
     title'', and
       (II) by striking ``the income tax return preparer'' and 
     inserting ``the tax return preparer''.
       (iii) The item relating to section 6695 in the table of 
     sections for part I of subchapter B of chapter 68 is amended 
     by striking ``income''.
       (H) Section 6696(e) is amended by striking ``subtitle A'' 
     each place it appears and inserting ``this title''.
       (I)(i) Section 7407 is amended--
       (I) by striking ``INCOME TAX RETURN PREPARERS'' in the 
     heading and inserting ``TAX RETURN PREPARERS'',
       (II) by striking ``an income tax return preparer'' each 
     place it appears and inserting ``a tax return preparer'',
       (III) by striking ``income tax preparer'' both places it 
     appears in subsection (a) and inserting ``tax return 
     preparer'', and
       (IV) by striking ``income tax return'' in subsection (a) 
     and inserting ``tax return''.
       (ii) The item relating to section 7407 in the table of 
     sections for subchapter A of chapter 76 is amended by 
     striking ``income tax return preparers'' and inserting ``tax 
     return preparers''.
       (J)(i) Section 7427 is amended--
       (I) by striking ``INCOME TAX RETURN PREPARERS'' in the 
     heading and inserting ``TAX RETURN PREPARERS'', and
       (II) by striking ``an income tax return preparer'' and 
     inserting ``a tax return preparer''.
       (ii) The item relating to section 7427 in the table of 
     sections for subchapter B of chapter 76 is amended to read as 
     follows:

``Sec. 7427. Tax return preparers.''.

       (b) Modification of Penalty for Understatement of 
     Taxpayer's Liability by Tax Return Preparer.--Subsections (a) 
     and (b) of section 6694 are amended to read as follows:
       ``(a) Understatement Due to Unreasonable Positions.--
       ``(1) In general.--Any tax return preparer who prepares any 
     return or claim for refund with respect to which any part of 
     an understatement of liability is due to a position described 
     in paragraph (2) shall pay a penalty with respect to each 
     such return or claim in an amount equal to the greater of--
       ``(A) $1,000, or
       ``(B) 50 percent of the income derived (or to be derived) 
     by the tax return preparer with respect to the return or 
     claim.
       ``(2) Unreasonable position.--A position is described in 
     this paragraph if--
       ``(A) the tax return preparer knew (or reasonably should 
     have known) of the position,
       ``(B) there was not a reasonable belief that the position 
     would more likely than not be sustained on its merits, and
       ``(C)(i) the position was not disclosed as provided in 
     section 6662(d)(2)(B)(ii), or
       ``(ii) there was no reasonable basis for the position.
       ``(3) Reasonable cause exception.--No penalty shall be 
     imposed under this subsection if it is shown that there is 
     reasonable cause for the understatement and the tax return 
     preparer acted in good faith.
       ``(b) Understatement Due to Willful or Reckless Conduct.--
       ``(1) In general.--Any tax return preparer who prepares any 
     return or claim for refund with respect to which any part of 
     an understatement of liability is due to a conduct described 
     in paragraph (2) shall pay a penalty with respect to each 
     such return or claim in an amount equal to the greater of--
       ``(A) $5,000, or
       ``(B) 50 percent of the income derived (or to be derived) 
     by the tax return preparer with respect to the return or 
     claim.
       ``(2) Willful or reckless conduct.--Conduct described in 
     this paragraph is conduct by the tax return preparer which 
     is--
       ``(A) a willful attempt in any manner to understate the 
     liability for tax on the return or claim, or
       ``(B) a reckless or intentional disregard of rules or 
     regulations.
       ``(3) Reduction in penalty.--The amount of any penalty 
     payable by any person by reason of this subsection for any 
     return or claim for refund shall be reduced by the amount of 
     the penalty paid by such person by reason of subsection 
     (a).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to returns prepared after the date of the 
     enactment of this Act.

     SEC. 8247. PENALTY FOR FILING ERRONEOUS REFUND CLAIMS.

       (a) In General.--Part I of subchapter B of chapter 68 
     (relating to assessable penalties) is amended by inserting 
     after section 6675 the following new section:

     ``SEC. 6676. ERRONEOUS CLAIM FOR REFUND OR CREDIT.

       ``(a) Civil Penalty.--If a claim for refund or credit with 
     respect to income tax (other than a claim for a refund or 
     credit relating to the earned income credit under section 32) 
     is made for an excessive amount, unless it is shown that the 
     claim for such excessive amount has a reasonable basis, the 
     person making such claim shall be liable for a penalty in an 
     amount equal to 20 percent of the excessive amount.
       ``(b) Excessive Amount.--For purposes of this section, the 
     term `excessive amount' means in the case of any person the 
     amount by which the amount of the claim for refund or credit 
     for any taxable year exceeds the amount of such claim 
     allowable under this title for such taxable year.
       ``(c) Coordination With Other Penalties.--This section 
     shall not apply to any portion of the excessive amount of a 
     claim for refund or credit which is subject to a penalty 
     imposed under part II of subchapter A of chapter 68.''.
       (b) Conforming Amendment.--The table of sections for part I 
     of subchapter B of chapter 68

[[Page 14032]]

     is amended by inserting after the item relating to section 
     6675 the following new item:

``Sec. 6676. Erroneous claim for refund or credit.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to any claim filed or submitted after the date of 
     the enactment of this Act.

     SEC. 8248. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

       Subparagraph (B) of section 401(1) of the Tax Increase 
     Prevention and Reconciliation Act of 2005 is amended by 
     striking ``106.25 percent'' and inserting ``114.25 percent''.

                 Subtitle C--Small Business Incentives

     SEC. 8301. SHORT TITLE.

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

     SEC. 8302. ENHANCED COMPLIANCE ASSISTANCE FOR SMALL 
                   BUSINESSES.

       (a) In General.--Section 212 of the Small Business 
     Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 601 
     note) is amended by striking subsection (a) and inserting the 
     following:
       ``(a) Compliance Guide.--
       ``(1) In general.--For each rule or group of related rules 
     for which an agency is required to prepare a final regulatory 
     flexibility analysis under section 605(b) of title 5, United 
     States Code, the agency shall publish 1 or more guides to 
     assist small entities in complying with the rule and shall 
     entitle such publications `small entity compliance guides'.
       ``(2) Publication of guides.--The publication of each guide 
     under this subsection shall include--
       ``(A) the posting of the guide in an easily identified 
     location on the website of the agency; and
       ``(B) distribution of the guide to known industry contacts, 
     such as small entities, associations, or industry leaders 
     affected by the rule.
       ``(3) Publication date.--An agency shall publish each guide 
     (including the posting and distribution of the guide as 
     described under paragraph (2))--
       ``(A) on the same date as the date of publication of the 
     final rule (or as soon as possible after that date); and
       ``(B) not later than the date on which the requirements of 
     that rule become effective.
       ``(4) Compliance actions.--
       ``(A) In general.--Each guide shall explain the actions a 
     small entity is required to take to comply with a rule.
       ``(B) Explanation.--The explanation under subparagraph 
     (A)--
       ``(i) shall include a description of actions needed to meet 
     the requirements of a rule, to enable a small entity to know 
     when such requirements are met; and
       ``(ii) if determined appropriate by the agency, may include 
     a description of possible procedures, such as conducting 
     tests, that may assist a small entity in meeting such 
     requirements, except that, compliance with any procedures 
     described pursuant to this section does not establish 
     compliance with the rule, or establish a presumption or 
     inference of such compliance.
       ``(C) Procedures.--Procedures described under subparagraph 
     (B)(ii)--
       ``(i) shall be suggestions to assist small entities; and
       ``(ii) shall not be additional requirements, or diminish 
     requirements, relating to the rule.
       ``(5) Agency preparation of guides.--The agency shall, in 
     its sole discretion, taking into account the subject matter 
     of the rule and the language of relevant statutes, ensure 
     that the guide is written using sufficiently plain language 
     likely to be understood by affected small entities. Agencies 
     may prepare separate guides covering groups or classes of 
     similarly affected small entities and may cooperate with 
     associations of small entities to develop and distribute such 
     guides. An agency may prepare guides and apply this section 
     with respect to a rule or a group of related rules.
       ``(6) Reporting.--Not later than 1 year after the date of 
     enactment of the Fair Minimum Wage Act of 2007, and annually 
     thereafter, the head of each agency shall submit a report to 
     the Committee on Small Business and Entrepreneurship of the 
     Senate, the Committee on Small Business of the House of 
     Representatives, and any other committee of relevant 
     jurisdiction describing the status of the agency's compliance 
     with paragraphs (1) through (5).''.
       (b) Technical and Conforming Amendment.--Section 211(3) of 
     the Small Business Regulatory Enforcement Fairness Act of 
     1996 (5 U.S.C. 601 note) is amended by inserting ``and 
     entitled'' after ``designated''.

     SEC. 8303. 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

[[Page 14033]]

     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. 8304. 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. 8305. 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. 8306. 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

[[Page 14034]]

     3(4) of the National Security Act of 1947 (50 U.S.C. 
     401a(4)).''.

                   TITLE IX--AGRICULTURAL ASSISTANCE

     SEC. 9001. CROP DISASTER ASSISTANCE.

       (a) Assistance Available.--There are hereby appropriated to 
     the Secretary of Agriculture such sums as are necessary, to 
     remain available until expended, to make emergency financial 
     assistance available to producers on a farm that incurred 
     qualifying quantity or quality losses for the 2005, 2006, or 
     2007 crop, due to damaging weather or any related condition 
     (including losses due to crop diseases, insects, and delayed 
     planting), as determined by the Secretary. However, to be 
     eligible for assistance, the crop subject to the loss must 
     have been planted before February 28, 2007, or, in the case 
     of prevented planting or other total loss, would have been 
     planted before February 28, 2007, in the absence of the 
     damaging weather or any related condition.
       (b) Election of Crop Year.--If a producer incurred 
     qualifying crop losses in more than one of the 2005, 2006, or 
     2007 crop years, the producer shall elect to receive 
     assistance under this section for losses incurred in only one 
     of such crop years. The producer may not receive assistance 
     under this section for more than one crop year.
       (c) Administration.--
       (1) In general.--Except as provided in paragraph (2), the 
     Secretary of Agriculture shall make assistance available 
     under this section in the same manner as provided under 
     section 815 of the Agriculture, Rural Development, Food and 
     Drug Administration and Related Agencies Appropriations Act, 
     2001 (Public Law 106-387; 114 Stat. 1549A-55), including 
     using the same loss thresholds for quantity and economic 
     losses as were used in administering that section, except 
     that the payment rate shall be 42 percent of the established 
     price, instead of 65 percent.
       (2) Loss thresholds for quality losses.--In the case of a 
     payment for quality loss for a crop under subsection (a), the 
     loss thresholds for quality loss for the crop shall be 
     determined under subsection (d).
       (d) Quality Losses.--
       (1) In general.--Subject to paragraph (3), the amount of a 
     payment made to producers on a farm for a quality loss for a 
     crop under subsection (a) shall be equal to the amount 
     obtained by multiplying--
       (A) 65 percent of the payment quantity determined under 
     paragraph (2); by
       (B) 42 percent of the payment rate determined under 
     paragraph (3).
       (2) Payment quantity.--For the purpose of paragraph (1)(A), 
     the payment quantity for quality losses for a crop of a 
     commodity on a farm shall equal the lesser of--
       (A) the actual production of the crop affected by a quality 
     loss of the commodity on the farm; or
       (B) the quantity of expected production of the crop 
     affected by a quality loss of the commodity on the farm, 
     using the formula used by the Secretary of Agriculture to 
     determine quantity losses for the crop of the commodity under 
     subsection (a).
       (3) Payment rate.--For the purpose of paragraph (1)(B) and 
     in accordance with paragraphs (5) and (6), the payment rate 
     for quality losses for a crop of a commodity on a farm shall 
     be equal to the difference between--
       (A) the per unit market value that the units of the crop 
     affected by the quality loss would have had if the crop had 
     not suffered a quality loss; and
       (B) the per unit market value of the units of the crop 
     affected by the quality loss.
       (4) Eligibility.--For producers on a farm to be eligible to 
     obtain a payment for a quality loss for a crop under 
     subsection (a), the amount obtained by multiplying the per 
     unit loss determined under paragraph (1) by the number of 
     units affected by the quality loss shall be at least 25 
     percent of the value that all affected production of the crop 
     would have had if the crop had not suffered a quality loss.
       (5) Marketing contracts.--In the case of any production of 
     a commodity that is sold pursuant to one or more marketing 
     contracts (regardless of whether the contract is entered into 
     by the producers on the farm before or after harvest) and for 
     which appropriate documentation exists, the quantity 
     designated in the contracts shall be eligible for quality 
     loss assistance based on the one or more prices specified in 
     the contracts.
       (6) Other production.--For any additional production of a 
     commodity for which a marketing contract does not exist or 
     for which production continues to be owned by the producer, 
     quality losses shall be based on the average local market 
     discounts for reduced quality, as determined by the 
     appropriate State committee of the Farm Service Agency.
       (7) Quality adjustments and discounts.--The appropriate 
     State committee of the Farm Service Agency shall identify the 
     appropriate quality adjustment and discount factors to be 
     considered in carrying out this subsection, including--
       (A) the average local discounts actually applied to a crop; 
     and
       (B) the discount schedules applied to loans made by the 
     Farm Service Agency or crop insurance coverage under the 
     Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
       (8) Eligible production.--The Secretary of Agriculture 
     shall carry out this subsection in a fair and equitable 
     manner for all eligible production, including the production 
     of fruits and vegetables, other specialty crops, and field 
     crops.
       (e) Payment Limitations.--
       (1) Limit on amount of assistance.--Assistance provided 
     under this section to a producer for losses to a crop, 
     together with the amounts specified in paragraph (2) 
     applicable to the same crop, may not exceed 95 percent of 
     what the value of the crop would have been in the absence of 
     the losses, as estimated by the Secretary of Agriculture.
       (2) Other payments.--In applying the limitation in 
     paragraph (1), the Secretary shall include the following:
       (A) Any crop insurance payment made under the Federal Crop 
     Insurance Act (7 U.S.C. 1501 et seq.) or payment under 
     section 196 of the Federal Agriculture Improvement and Reform 
     Act of 1996 (7 U.S.C. 7333) that the producer receives for 
     losses to the same crop.
       (B) The value of the crop that was not lost (if any), as 
     estimated by the Secretary.
       (f) Eligibility Requirements and Limitations.--The 
     producers on a farm shall not be eligible for assistance 
     under this section with respect to losses to an insurable 
     commodity or noninsurable commodity if the producers on the 
     farm--
       (1) in the case of an insurable commodity, did not obtain a 
     policy or plan of insurance for the insurable commodity under 
     the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) for 
     the crop incurring the losses;
       (2) in the case of a noninsurable commodity, did not file 
     the required paperwork, and pay the administrative fee by the 
     applicable State filing deadline, for the noninsurable 
     commodity under section 196 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7333) for the 
     crop incurring the losses; or
       (3) were not in compliance with highly erodible land 
     conservation and wetland conservation provisions.
       (g) Timing.--
       (1) In general.--Subject to paragraph (2), the Secretary of 
     Agriculture shall make payments to producers on a farm for a 
     crop under this section not later than 60 days after the date 
     the producers on the farm submit to the Secretary a completed 
     application for the payments.
       (2) Interest.--If the Secretary does not make payments to 
     the producers on a farm by the date described in paragraph 
     (1), the Secretary shall pay to the producers on a farm 
     interest on the payments at a rate equal to the current (as 
     of the sign-up deadline established by the Secretary) market 
     yield on outstanding, marketable obligations of the United 
     States with maturities of 30 years.
       (h) Definitions.--In this section:
       (1) Insurable commodity.--The term ``insurable commodity'' 
     means an agricultural commodity (excluding livestock) for 
     which the producers on a farm are eligible to obtain a policy 
     or plan of insurance under the Federal Crop Insurance Act (7 
     U.S.C. 1501 et seq.).
       (2) Noninsurable commodity.--The term ``noninsurable 
     commodity'' means a crop for which the producers on a farm 
     are eligible to obtain assistance under section 196 of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7333).

     SEC. 9002. LIVESTOCK ASSISTANCE.

       (a) Livestock Compensation Program.--
       (1) Availability of assistance.--There are hereby 
     appropriated to the Secretary of Agriculture such sums as are 
     necessary, to remain available until expended, to carry out 
     the livestock compensation program established under subpart 
     B of part 1416 of title 7, Code of Federal Regulations, as 
     announced by the Secretary on February 12, 2007 (72 Fed. Reg. 
     6443), to provide compensation for livestock losses between 
     January 1, 2005 and February 28, 2007, due to a disaster, as 
     determined by the Secretary (including losses due to 
     blizzards that started in 2006 and continued into January 
     2007). However, the payment rate for compensation under this 
     subsection shall be 61 percent of the payment rate otherwise 
     applicable under such program. In addition, section 
     1416.102(b)(2)(ii) of title 7, Code of Federal Regulations 
     (72 Fed. Reg. 6444) shall not apply.
       (2) Eligible applicants.--In carrying out the program 
     described in paragraph (1), the Secretary shall provide 
     assistance to any applicant that--
       (A) conducts a livestock operation that is located in a 
     disaster county with eligible livestock specified in 
     paragraph (1) of section 1416.102(a) of title 7, Code of 
     Federal Regulations (72 Fed. Reg. 6444), an animal described 
     in section 10806(a)(1) of the Farm Security and Rural 
     Investment Act of 2002 (21 U.S.C. 321d(a)(1)), or other 
     animals designated by the Secretary as livestock for purposes 
     of this subsection; and
       (B) meets the requirements of paragraphs (3) and (4) of 
     section 1416.102(a) of title 7, Code of Federal Regulations, 
     and all other eligibility requirements established by the 
     Secretary for the program.
       (3) Election of losses.--
       (A) If a producer incurred eligible livestock losses in 
     more than one of the 2005, 2006, or 2007 calendar years, the 
     producer shall elect to receive payments under this 
     subsection for losses incurred in only one of such calendar 
     years, and such losses must have been incurred in a county 
     declared or designated as a disaster county in that same 
     calendar year.
       (B) Producers may elect to receive compensation for losses 
     in the calendar year 2007 grazing season that are 
     attributable to wildfires occurring during the applicable 
     period, as determined by the Secretary.
       (4) Mitigation.--In determining the eligibility for or 
     amount of payments for which a producer is eligible under the 
     livestock compensation program, the Secretary shall not 
     penalize a producer that takes actions (recognizing disaster

[[Page 14035]]

     conditions) that reduce the average number of livestock the 
     producer owned for grazing during the production year for 
     which assistance is being provided.
       (5) Definitions.--In this subsection:
       (A) Disaster county.--The term ``disaster county'' means--
       (i) a county included in the geographic area covered by a 
     natural disaster declaration; and
       (ii) each county contiguous to a county described in clause 
     (i).
       (B) Natural disaster declaration.--The term ``natural 
     disaster declaration'' means--
       (i) a natural disaster declared by the Secretary between 
     January 1, 2005 and February 28, 2007, under section 321(a) 
     of the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1961(a));
       (ii) a major disaster or emergency designated by the 
     President between January 1, 2005 and February 28, 2007, 
     under the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.); or
       (iii) a determination of a Farm Service Agency 
     Administrator's Physical Loss Notice if such notice applies 
     to a county included under (ii).
       (b) Livestock Indemnity Payments.--
       (1) Availability of assistance.--There are hereby 
     appropriated to the Secretary of Agriculture such sums as are 
     necessary, to remain available until expended, to make 
     livestock indemnity payments to producers on farms that have 
     incurred livestock losses between January 1, 2005 and 
     February 28, 2007, due to a disaster, as determined by the 
     Secretary (including losses due to blizzards that started in 
     2006 and continued into January 2007) in a disaster county. 
     To be eligible for assistance, applicants must meet all 
     eligibility requirements established by the Secretary for the 
     program.
       (2) Election of losses.--If a producer incurred eligible 
     livestock losses in more than one of the 2005, 2006, or 2007 
     calendar years, the producer shall elect to receive payments 
     under this subsection for losses incurred in only one of such 
     calendar years. The producer may not receive payments under 
     this subsection for more than one calendar year.
       (3) Payment rates.--Indemnity payments to a producer on a 
     farm under paragraph (1) shall be made at a rate of not less 
     than 26 percent of the market value of the applicable 
     livestock on the day before the date of death of the 
     livestock, as determined by the Secretary.
       (4) Livestock defined.--In this subsection, the term 
     ``livestock'' means an animal that--
       (A) is specified in clause (i) of section 1416.203(a)(2) of 
     title 7, Code of Federal Regulations (72 Fed. Reg. 6445), or 
     is designated by the Secretary as livestock for purposes of 
     this subsection; and
       (B) meets the requirements of clauses (iii) and (iv) of 
     such section.
       (5) Definitions.--In this subsection:
       (A) Disaster county.--The term ``disaster county'' means--
       (i) a county included in the geographic area covered by a 
     natural disaster declaration; and
       (ii) each county contiguous to a county described in clause 
     (i).
       (B) Natural disaster declaration.--The term ``natural 
     disaster declaration'' means--
       (i) a natural disaster declared by the Secretary between 
     January 1, 2005 and February 28, 2007, under section 321(a) 
     of the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1961(a));
       (ii) a major disaster or emergency designated by the 
     President between January 1, 2005 and February 28, 2007, 
     under the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.); or
       (iii) a determination of a Farm Service Agency 
     Administrator's Physical Loss Notice if such notice applies 
     to a county included under (ii).

     SEC. 9003. EMERGENCY CONSERVATION PROGRAM.

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

     SEC. 9004. PAYMENT LIMITATIONS.

       (a) Reduction in Payments to Reflect Payments for Same or 
     Similar Losses.--The amount of any payment for which a 
     producer is eligible under sections 9001 and 9002 shall be 
     reduced by any amount received by the producer for the same 
     loss or any similar loss under--
       (1) the Department of Defense, Emergency Supplemental 
     Appropriations to Address Hurricanes in the Gulf of Mexico, 
     and Pandemic Influenza Act, 2006 (Public Law 109-148; 119 
     Stat. 2680);
       (2) an agricultural disaster assistance provision contained 
     in the announcement of the Secretary on January 26, 2006 or 
     August 29, 2006; or
       (3) the Emergency Supplemental Appropriations Act for 
     Defense, the Global War on Terror, and Hurricane Recovery, 
     2006 (Public Law 109-234; 120 Stat. 418).
       (b) Adjusted Gross Income Limitation.--Section 1001D of the 
     Food Security Act of 1985 (7 U.S.C. 1308-3a) shall apply with 
     respect to assistance provided under sections 9001, 9002, and 
     9003.

     SEC. 9005. ADMINISTRATION.

       (a) Regulations.--The Secretary of Agriculture may 
     promulgate such regulations as are necessary to implement 
     sections 9001 and 9002.
       (b) Procedure.--The promulgation of the implementing 
     regulations and the administration of sections 9001 and 9002 
     shall be made without regard to--
       (1) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       (2) the Statement of Policy of the Secretary of Agriculture 
     effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
     notices of proposed rulemaking and public participation in 
     rulemaking; and
       (3) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'').
       (c) Congressional Review of Agency Rulemaking.--In carrying 
     out this section, the Secretary of Agriculture shall use the 
     authority provided under section 808 of title 5, United 
     States Code.
       (d) Use of Commodity Credit Corporation; Limitation.--In 
     implementing sections 9001 and 9002, the Secretary of 
     Agriculture may use the facilities, services, and authorities 
     of the Commodity Credit Corporation. The Corporation shall 
     not make any expenditures to carry out sections 9001 and 9002 
     unless funds have been specifically appropriated for such 
     purpose.

     SEC. 9006. MILK INCOME LOSS CONTRACT PROGRAM.

       (a) 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).
       (b) Section 10002 of this Act shall not apply to this 
     section except with respect to fiscal years 2007 and 2008.

     SEC. 9007. DAIRY ASSISTANCE.

       There is hereby appropriated $16,000,000 to make payments 
     to dairy producers for dairy production losses in disaster 
     counties, as defined in section 9002 of this title, to remain 
     available until expended.

     SEC. 9008. NONINSURED CROP ASSISTANCE PROGRAM.

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

     SEC. 9009. EMERGENCY GRANTS TO ASSIST LOW-INCOME MIGRANT AND 
                   SEASONAL FARMWORKERS.

       There is hereby appropriated $16,000,000 to carry out 
     section 2281 of the Food, Agriculture, Conservation and Trade 
     Act of 1990 (42 U.S.C. 5177a), to remain available until 
     expended.

     SEC. 9010. CONSERVATION SECURITY PROGRAM.

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

     SEC. 9011. ADMINISTRATIVE EXPENSES.

       There is hereby appropriated $22,000,000 for the ``Farm 
     Service Agency, Salaries and Expenses'', to remain available 
     until September 30, 2008.

     SEC. 9012. CONTRACT WAIVER.

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

                      TITLE X--GENERAL PROVISIONS

       Sec. 10001. No part of any appropriation contained in this 
     Act shall remain available for obligation beyond the current 
     fiscal year unless expressly so provided herein.
       Sec. 10002. Amounts in this Act (other than in titles VI 
     and VIII) are designated as emergency requirements 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.

  Mr. REID. Mr. President, I move to concur in the House amendment.
  Mr. President, more than 4 years ago, the Bush administration took 
this Nation to war in Iraq--took this Nation to war in Iraq without 
sufficient troops, without a plan to win the peace, and without truth 
regarding Saddam Hussein's nonexistent weapons of mass destruction or 
his nonexistent links to al-Qaida.
  Nearly 51 months later--6 months longer than it took this Nation to 
defeat Germany and Japan in World War II--the violence in Iraq 
continues and the cost to our military and our Nation has been 
frightening. More than 3,400 American troops have made the ultimate 
sacrifice--death. Nine were killed yesterday and two more today in this 
escalating violence across Iraq in which we are losing our brave men 
and women. Guard and Reserve units all across America lack equipment to 
do their jobs at home and in Iraq. U.S. citizens have provided nearly 
half a trillion dollars to cover the cost of this intractable civil 
war. And because of this war, our Nation has been totally distracted in 
its effort to defeat those who attacked us on 9/11. Indeed, more than 5 
years after 9/11, Osama bin Laden is still free, and al-Qaida remains 
an important force.
  Throughout all this, our military has performed heroically. Our 
troops have done everything asked of them and

[[Page 14036]]

even more. Our troops toppled a dictator and gave the Iraqis a chance 
to establish a new government and a new way of life. Unfortunately, the 
Bush administration did not provide them a strategy to match that 
sacrifice. Iraq is now in a state of civil war, with no end in sight, 
and our valiant troops are caught in the middle.
  Instead of accepting this reality, President Bush has stubbornly 
refused to change course. Instead of listening to his military 
commanders who say there is no military solution in Iraq, he has 
plunged our forces further into sectarian fighting. Instead of 
accepting a bipartisan path in Iraq offered by Congress and even the 
Iraq Study Group, this President stubbornly clings to his failed ``my 
way or the highway'' approach to governing America.
  MG John Batiste, who commanded the First Infantry Division in Iraq, 
says this about the President's failed Iraq policy:

       Here is the bottom line: Americans must come to grips with 
     the fact that our military alone cannot establish a 
     democracy. We cannot sustain the current operational tempo 
     without seriously damaging the Army and Marine Corps. Our 
     troops have been asked to carry the burden of an ill-
     conceived mission.

  Earlier this year, former U.S. Secretary of State Henry Kissinger 
said: The problems in Iraq are more complex than Vietnam, and military 
victory is no longer possible. Henry Kissinger said--and I repeat--the 
problems in Iraq are more complex than Vietnam, and military victory is 
no longer possible.
  GEN George Casey, former Commander of U.S. Forces in Iraq, and 
currently Chief of Staff of the Army, said:

       It has always been my view that a heavy and sustained 
     military presence was not going to solve the problem in Iraq.

  That was General Casey. Six months ago, the Iraq Study Group said the 
situation in Iraq was grave and deteriorating. The civil war in Iraq 
has only gotten more pronounced since then. Unfortunately, the 
President's escalation strategy has not produced the positive results 
we seek. Attacks on U.S. forces have increased, not decreased. Since 
the onset of this latest surge, more than three U.S. soldiers have been 
killed every day. Nearly 90 soldiers have been killed this month so 
far, and almost 400 since the escalation plan began. Sectarian killings 
have increased to presurge levels.
  According to today's Washington Post newspaper, over 300 unidentified 
corpses, most dumped in streets and alleys and water sewer systems, 
showing signs of torture and execution, were found all across the 
capital of Iraq in the month of May. And the month of May is not over.
  Four million Iraqis, including 1.6 million children, have fled their 
homes because of the violence, setting the stage for a massive 
humanitarian crisis.
  Our military has been pushed to the breaking point. To make up for 
the shortages of combat-ready forces, tours of duty have now been 
extended from 12 to 15 months, with many soldiers now in their third 
and fourth tours.
  Mr. President, I spoke just last week to one Nevada family whose son 
was killed in action last week. We all remember there were three 
hostages, prisoners of war. I called the father, and he said: I pray 
that my boy is one of the three. There were four that were 
unidentified. Well, his prayers were not answered. His son was the one 
incinerated in the humvee, and they had to wait until they took DNA to 
find out it was his son.
  This soldier had survived four vehicle explosions during his four 
tours of duty. That is too much to ask of any soldier or his family. 
Perhaps, not surprisingly after all, this soldier expressed 
reservations about the war in Iraq, is what he told his best friend 
before he left for the fourth time. His grandfather said:

       It is a waste of young lives. We should not be in the 
     middle of a civil war.

  Meanwhile, our capacity to respond to other challenges around the 
world has been greatly constrained. Terror attacks across the world are 
up, not down. U.S. influence and standing is down, not up. By focusing 
on Iraq and doing little or nothing in the rest of the Middle East, 
this critical region has been destabilized even further and stands even 
closer to a broader regional war.
  The American people saw all this unfolding last November and they 
reached a conclusion that enough was enough. That is why they sent this 
President and Congress a clear and unmistakable challenge and a direct 
message: Find a responsible end to this war.
  That is what congressional Democrats have done. From the very first 
day of this democratically controlled Congress, we have made it clear 
to the President that the days of blank checks and green lights for his 
failed policy are over. After 6 years of rubberstamping President 
Bush's failed policy, Congress has reasserted its rightful position in 
our constitutional form of Government.
  Democrats have held more hearings on Iraq in 4 months than the 
Republican-controlled Congress held in 4 years. We have repeatedly 
forced our Republican colleagues in the Senate and in the House to 
debate and vote on where people stand with respect to the President's 
failed Iraq policy. With each step we have taken, the pressure on the 
President and his Republican allies to change course has grown.
  The most important step we have taken occurred last month. In the 
face of heavy White House pressure and more misleading statements by 
administration officials, Congress was able to pass a bill that did 
what the American people asked us to do: No. 1, fully fund our troops 
and, No. 2, immediately change the direction of the war in Iraq.
  In addition, the bill provides much needed funds to procure 
additional equipment for our Guard and Reserve and to provide health 
care services for active-duty troops and America's heroic veterans.
  As the Senate Democratic leader, I am very proud of Senate Democrats. 
In less than 4 months of Democratic control, with virtual Democratic 
unanimity, Congress sent the President binding language that would 
truly compel him to do what the American people desire. Unfortunately, 
though, the President vetoed that important legislation, leaving him 
further isolated from the American people, military experts, and an 
increasing number of his own political party.
  In the days since that veto, we have had negotiations with the 
administration about how to proceed. The President made it very clear 
as late as last night that he intended to veto any effort to implement 
timelines, transition the mission, or ensure the readiness of our 
troops before they are deployed. Furthermore, here in the Senate our 
minority colleagues made it clear they are determined to place 
procedural hurdles, most notably requiring 60 votes rather than a 
simple majority, in front of those who seek to significantly alter the 
President's Iraq policy. Democratic unanimity with a handful of 
Republicans will not be sufficient to do what we believe must be done. 
Until more Republicans develop the courage to step forward and insist 
that the President change course in Iraq, Republican intransigence has 
left us with no good options.
  How to vote on this bill before us is a very difficult and personal 
decision for each Member of this Senate. There are many thoughtful 
members of my caucus who believe we should vote no, and continue to 
vote no until the President and his supporters come to their senses. 
There are equally thoughtful members who believe we must vote yes 
because this bill does take a step forward in holding the President and 
the Iraqis accountable and it does increase pressure on this 
administration and its supporters to change direction in Iraq.
  Although this is a very close call for me, as I suspect it is for 
many Senators, I have decided to support this measure. But let me say, 
I know those who oppose this bill care as deeply about the safety of 
our troops as I do. They know I care as deeply about changing the 
course in Iraq as they do.
  This bill before us clearly does not go as far as a bipartisan 
majority of Congress would like. But it goes a lot further than the 
President and his supporters were willing to go earlier this

[[Page 14037]]

month. That is why we saw this headline in a recent edition of the Los 
Angeles Times. Here is what it said: ``Senate Tilting On Iraq Policies; 
Republicans Show Their Strongest Willingness Yet To Rein In Bush.''
  Here is what the bill requires of the administration and Iraqis, the 
one before us tonight: It establishes 18 benchmarks on which to measure 
the Iraqi Government's performance; restricts the use of foreign aid to 
the Iraqi Government should they fail to make meaningful progress; 
requires the President to certify that the Iraqi Government deserves 
these funds even if they fail to perform as promised; requires the 
administration to testify before Congress and an independent assessment 
by the Government Accountability Office on the performance of the Iraqi 
Government; requires the President submit a report on the combat 
proficiency of Iraqi security forces; requires the President to 
redeploy our troops if the Iraqi Government concludes our presence is 
no longer desired; restricts use of Defense Department funding until 
Congress receives information about contractors in Iraq; and states 
official U.S. policy precludes permanent military bases in Iraq, no 
torture of detainees, and no designs on Iraqi oil.
  When the President signs the bill, that will be the law. Some of this 
language is taken from an amendment offered by Senator John Warner last 
week. Senator Warner offered his amendment as an alternative to the 
Feingold-Reid amendment that would have immediately transitioned the 
mission in Iraq and required a phased redeployment by April 2008. 
Naturally I said the Feingold-Reid language was far superior to the 
Warner language. However, today we don't have the option of choosing 
between Feingold-Reid and Warner. I wish we did. Although the Warner 
language is weak by comparison to Feingold-Reid, and I so stated on the 
Senate floor last week, I believe we can begin holding the 
administration accountable if we adopt the Warner language plus the 
other Iraq-related provisions contained in this bill, which I have 
outlined.
  I know none of these measures comes close to the timelines and 
accountability provisions I supported in the vetoed bill. However, I 
also know these provisions will force the administration to do more 
than they have ever done before. I also know the stakes are too high 
and our obligation to the troops and the country is too great for us to 
stop working to force the President and his supporters to change 
course. The burden for securing and governing Iraq must now rest with 
the Iraqi people.
  As General Abizaid said:

       It is easy for Iraqis to reply upon us to do this work. I 
     believe that more American forces prevent the Iraqis from 
     doing more, from taking more responsibility for their own 
     future.

  GEN Doug Lute, recently nominated by President Bush to be his war 
czar, said:

       We believe at some point, in order to break this dependence 
     on the coalition, you simply have to back off and let the 
     Iraqis step forward.

  As long as I am Democratic leader and this President persists in 
pursuing the worst foreign policy blunder in this Nation's history, the 
American people should know I am determined to fight for change in 
Iraq. The Senate Armed Services Committee reported the fiscal year 2008 
Defense authorization bill earlier today. We will move to it in our 
next work period, which starts in about 10 days. This battle for 
responsible and effective Iraq policy will be joined in the Senate no 
later than when we take up that bill. Senate Democrats will not stop 
our efforts to change our course in this war until either enough 
Republicans join us to reject President Bush's failed policy or we get 
a new President.
  In 1941, in an address at Harrow School, Winston Churchill said:

       Never give in. Never give in. Never, never, never. . . .

  My colleagues here in the Senate, particularly my Republican 
colleagues, should know this is precisely my attitude when it comes to 
bringing about a change in course in the intractable civil war in Iraq. 
Although I didn't get everything I sought in the bill before us, and 
that is an understatement, I will not give up until the supporters of 
the President's failed policy accept the realities on the ground in 
Iraq, until they accept that the President's plan is not working, that 
this war must come to an end, and that it is time for our troops to 
come home in a safe and responsible way.
  Paraphrasing the words of Winston Churchill, when it comes to forcing 
the President to change course in Iraq, Senate Democrats will never 
give in, never give in, never, never, never.
  I ask for the yeas and nays.
  Mr. WARNER. I ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second?
  There is a sufficient second.
  The question is on agreeing to the motion.
  The clerk will call the roll.
  The legislative clerk called the roll.
  Mr. DURBIN. I announce that the Senator from South Dakota (Mr. 
Johnson) and the Senator from New York (Mr. Schumer) are necessarily 
absent.
  Mr. LOTT. The following Senators are necessarily absent: the Senator 
from Kansas (Mr. Brownback), the Senator from Minnesota (Mr. Coleman), 
the Senator from Utah (Mr. Hatch), and the Senator from Wyoming (Mr. 
Thomas).
  Further, if present and voting, the Senator from Utah (Mr. Hatch) and 
the Senator from Minnesota (Mr. Coleman) would have voted ``yea.''
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
desiring to vote?
  The result was announced--yeas 80, nays 14, as follows:
  The result was announced--yeas 80, nays 14, as follows:

                      [Rollcall Vote No. 181 Leg.]

                                YEAS--80

     Akaka
     Alexander
     Allard
     Baucus
     Bayh
     Bennett
     Biden
     Bingaman
     Bond
     Brown
     Bunning
     Byrd
     Cantwell
     Cardin
     Carper
     Casey
     Chambliss
     Cochran
     Collins
     Conrad
     Corker
     Cornyn
     Craig
     Crapo
     DeMint
     Dole
     Domenici
     Dorgan
     Durbin
     Ensign
     Feinstein
     Graham
     Grassley
     Gregg
     Hagel
     Harkin
     Hutchison
     Inhofe
     Inouye
     Isakson
     Klobuchar
     Kohl
     Kyl
     Landrieu
     Lautenberg
     Levin
     Lieberman
     Lincoln
     Lott
     Lugar
     Martinez
     McCain
     McCaskill
     McConnell
     Menendez
     Mikulski
     Murkowski
     Murray
     Nelson (FL)
     Nelson (NE)
     Pryor
     Reed
     Reid
     Roberts
     Rockefeller
     Salazar
     Sessions
     Shelby
     Smith
     Snowe
     Specter
     Stabenow
     Stevens
     Sununu
     Tester
     Thune
     Vitter
     Voinovich
     Warner
     Webb

                                NAYS--14

     Boxer
     Burr
     Clinton
     Coburn
     Dodd
     Enzi
     Feingold
     Kennedy
     Kerry
     Leahy
     Obama
     Sanders
     Whitehouse
     Wyden

                             NOT VOTING--6

     Brownback
     Coleman
     Hatch
     Johnson
     Schumer
     Thomas
  The motion was agreed to.
  Mr. DURBIN. I move to reconsider the vote and to lay that motion on 
the table.
  The motion to lay on the table was agreed to.


                            vote explanation

 Mr. SCHUMER. Mr. President, I am entering this statement in 
the Record because I am attending my daughter's graduation 
baccalaureate service in New York. Had I been here I would have voted 
in favor of the supplemental appropriations bill because I believe we 
must fund the troops who are in harm's way. However, I believe just as 
strongly that we must change our mission in Iraq away from policing a 
civil war and toward a much more narrowly focused goal of 
counterterrorism, which requires a much smaller number of troops. That 
is what the Feingold-Reid amendment stood for and that is why I voted 
for it on May 16, 2007. Unfortunately, it did not have enough votes to 
pass. Our effort to force the President to change the mission in Iraq 
will continue almost immediately with the DOD authorization bill and 
will not end until we succeed.
  Mr. KYL. Mr. President, I voted tonight for H.R. 2206, but I am 
disappointed that it has taken so long to

[[Page 14038]]

complete work on this legislation, while we have troops deployed and 
under fire fighting against an enemy that, as few others have in 
history, seeks our total destruction.
  For 108 days, the majority held up vital funding for our troops' 
equipment and training. All this time, the majority has been playing 
politics with this funding, even sending to the President a bill that 
they knew would be vetoed. And this is not my analysis; we know this 
through the Democrats' own words. Senator Harry Reid, the Democratic 
leader in the Senate, said, ``We are going to pick up Senate seats as a 
result of this war.'' And ``well, it doesn't matter what resolution we 
move forward to. You know, I can count. I don't know if we'll get 60 
votes. But I'll tell you one thing, there are 21 Republicans up for 
reelection this time.''
  So, with that in mind, we finally received the final version of the 
security supplemental at 8 p.m., the last night before the Memorial Day 
work period. While Democrats finally decided to listen to our generals 
and not MoveOn.org and yielded to Republicans' demand to exclude an 
arbitrary withdrawal date, this bill still has serious flaws. A policy 
that would potentially restrict the very economic reconstruction funds 
that are necessary to achieve the political and diplomatic solution 
General Petraeus says we need represents bad public policy, to say the 
least.
  What's more, I am disappointed to see, yet again, that the majority 
would use the needs of our troops as leverage to include extraneous, 
and in many cases ill-conceived, spending and policy provisions. Among 
these are a raise in the federal minimum wage to $7.25 an hour; $22 
million in Corps of Engineers funding specifically earmarked for Long 
Island and Westchester County, and certain areas of New Jersey; $40 
million in agriculture assistance specifically earmarked for certain 
areas of Kansas affected by the recent tornadoes; $10 million for 
radios for the Capitol Police; several new provisions to give certain 
labor unions and Continental and American Airlines relief from their 
employer pension plan contribution obligations; and a provision that 
mandates that the Secretary of Health and Human Services approve a 
state's request to extend a waiver for the Pharmacy Plus program, 
making Wisconsin the only state to benefit from this provision.
  The delay in passage of the security supplemental caused by the 
majority party created significant disruptions for the Department of 
Defense and for our men and women deployed in the war against 
terrorists.
  Since the emergency request was submitted by the President, the 
Department of Defense has realigned significant funds internally and 
submitted to Congress approximately six reprogramming requests driven 
by the delays in the supplemental.
  Secretary Gates stated in an April 11 letter to the Senate 
Appropriations Committee, ``[i]t is a simple fact of life that if the . 
. . [supplemental] is not enacted soon, the Army faces a real and 
serious funding problem that will require increasingly disruptive and 
costly measures to be initiated--measures that will, inevitably, 
negatively impact readiness and Army personnel and their families.''
  Then, Secretary Gates in a May 9 letter to Senator McCain wrote:

       [i]n submitting the FY07 supplemental request in early 
     February, the Department planned on these funds becoming 
     available by not later than mid-April. Accordingly, starting 
     in mid-April, the Department began a series of actions to 
     mitigate the impact of the delay in the supplemental on our 
     deployed forces by slowing down spending in less critical 
     accounts. In addition, funds budgeted for fourth quarter Army 
     operations and personnel costs have been or are in the 
     process of being moved forward and expended to partially make 
     up the shortfall.
       These actions have resulted in the Army having to take a 
     series of steps including deferring repair of equipment and 
     restraining supply purchases. In short, these steps, while 
     necessary to account for the delay in the supplemental, have 
     already caused disruptions within the Department.

  Mr. President, here are just a few specific examples of disruptions 
that have occurred within the Army:

       Facility maintenance and purchases for barracks, mold 
     abatement projects, and dining facilities has been deferred. 
     As a result, there is a risk of troops returning from combat 
     tours to sub-standard barracks and facilities that had been 
     scheduled for renovation or updates while soldiers were 
     deployed;
       Orders of supplies have been reduced. Deferring orders for 
     major repair parts and unit level maintenance items creates 
     system lag and an accumulation of backlogged orders waiting 
     to be placed. Units can sustain operations for only a limited 
     time by consuming existing inventory.

  In his May 9 letter to Senator McCain, Secretary Gates also made 
clear that these disruptions would have effects on the war effort:

       [T]he lack of timely supplemental funds has limited the 
     Department's ability to properly contract for the 
     reconstitution of equipment for both the active and reserve 
     forces. This situation increases the readiness risk of our 
     military with each passing day should the nation require the 
     use of these forces prior to the equipment becoming 
     available. In other cases, the funding delay negatively 
     impacts our forces in the field by needlessly delaying the 
     accelerated fielding of new force protection capabilities 
     such as the Mine Resistant Ambush Protected (MRAP) vehicle 
     and counter-IED technologies developed and acquired by the 
     Joint IED Defeat Organization (JIEDDO). Finally, the ongoing 
     delay resulted in the depletion of funds necessary to 
     accelerate the training of Iraqi security forces.

  Multinational Force-Iraq spokesman, Army Maj. Gen. William Caldwell, 
on April 4 said, ``At the current moment, because of this lack of 
funding, MNSTC-I--Multi-National Security Transition Command-Iraq--is 
unable to continue at the pace they were in the developmental process 
of the Iraqi security forces . . . It is starting to have some impact 
today, and will only have more of an impact over time.''
  While I firmly believe that the manner in which Democrats managed 
this legislation reveals their misplaced priorities, it is absolutely 
necessary that we get this funding to the men and women on the front 
line without further delay. That is why I will vote for this 
supplemental today. Having forced our troops to wait 108 days for this 
needed funding, there is no other choice but to accept this legislative 
blackmail.
  I would also like to speak to a larger point, Mr. President. My 
friends on the other side of this issue in both houses talk about a 
failed strategy, and about a war that is lost. How do they know the 
Petraeus strategy has failed? It isn't even in place yet. The fifth 
brigade of the surge isn't there yet, and the fourth has only just 
arrived.
  Even commentators like Joel Klein of Time magazine, no friend of this 
administration or this policy, in this week's edition have been forced 
to admit that progress is being made. While pointing out the many 
struggles that remain, Mr. Klein said:

       There is good news from Iraq, believe it or not. It comes 
     from the most unlikely place: Anbar province, home of the 
     Sunni insurgency. The level of violence has plummeted in 
     recent weeks. An alliance of U.S. troops and local tribes has 
     been very effective in moving against the al-Qaeda foreign 
     fighters. A senior U.S. military official told me--confirming 
     reports from several other sources--that there have been ``a 
     couple of days recently during which there were zero 
     effective attacks and less than 10 attacks overall in the 
     province (keep in mind that an attack can be as little as one 
     round fired). This is a result of sheiks stepping up and 
     opposing AQI [al-Qaeda in Iraq] and volunteering their young 
     men to serve in the police and army units there.'' The 
     success in Anbar has led sheiks in at least two other Sunni-
     dominated provinces, Nineveh and Salahaddin, to ask for 
     similar alliances against the foreign fighters. And, as 
     Time's Bobby Ghosh has reported, an influential leader of the 
     Sunni insurgency, Harith al-Dari, has turned against al-Qaeda 
     as well. It is possible that al-Qaeda is being rejected like 
     a mismatched liver transplant by the body of the Iraqi 
     insurgency.

  What is now happening is an attempt to reconsider the vote of four 
years ago when, by large bipartisan majorities in both chambers, we 
authorized this war. In an effort to appease far left-wing groups, some 
are attempting to distance themselves from their votes to authorize 
this policy, and from their own statements acknowledging what the 
intelligence information told us: Saddam Hussein posed a grave threat 
to America's national security.
  What they're not doing is talking about the consequences of defeat. 
It is clear from respected national security

[[Page 14039]]

figures like General Anthony Zinni that ``This is no Vietnam or Somalia 
or those places where you can walk away. If we just pull out, we will 
find ourselves back in short order.''
  Additionally, even the Brookings Institution released a study that 
argues:

       Iraq appears to have many of the conditions most conducive 
     to spillover because there is a high degree of foreign 
     ``interest'' in Iraq. Ethnic, tribal, and religious groups 
     within Iraq are equally prevalent in neighboring countries 
     and they share many of the same grievances. Iraq has a 
     history of violence with its neighbors, which has fostered 
     desires for vengeance and fomented constant clashes. Iraq 
     also possesses resources that its neighbors covet--oil being 
     the most obvious, but important religious shrines also figure 
     in the mix. There is a high degree of commerce and 
     communication between Iraq and its neighbors, and its borders 
     are porous. All of this suggests that spillover from an Iraqi 
     civil war would tend toward the more dangerous end of the 
     spillover spectrum.

  We cannot forget that Iran and Syria are fostering instability in 
Iraq. Al-Qaida and Hezbollah are both active there as well.
  As I have mentioned before, but have not heard answered from the 
critics, we know that chaos in Iraq could draw in others in the region. 
For example, Saudi Arabian officials have threatened ``massive 
intervention to stop Iranian-backed Shiite militias from butchering 
Iraqi Sunnis.'' A Kurdish secession would likely cause Turkish 
intervention.
  Does anyone in Congress disagree that failing in Iraq would be a 
dramatic setback in the war against terrorists? Iraq must not be 
divorced from its context--the struggle between the forces of 
moderation and extremism in the Muslim world. After all, al-Qaida has 
been in Iraq since before the U.S. invaded and has dedicated itself to 
fomenting sectarian violence there. Osama bin Laden referred to Iraq as 
``capital of the Caliphate,'' arguing that ``[t]he most . . . serious 
issue today for the whole world is this Third World War . . . [that] is 
raging in [Iraq].''
  Terrorism expert Peter Bergen has told us that a:

       [U.S. withdrawal] would fit all too neatly into Osama bin 
     Laden's master narrative about American foreign policy. His 
     theme is that America is a paper tiger that cannot tolerate 
     body bags coming home; to back it up, he cites President 
     Ronald Reagan's 1984 withdrawal of United States troops from 
     Lebanon and President Bill Clinton's decision nearly a decade 
     later to pull troops from Somalia. A unilateral pullout from 
     Iraq would only confirm this analysis of American weakness 
     among his jihadist allies.

  Failure in Iraq will encourage further attacks against the United 
States and provide a base from which to plan and train for attacks.
  I will remind my friends who pushed so hard for this legislation, and 
who cheered for votes on an immediate withdrawal, and the passage of 
the first security supplemental which the President correctly vetoed, 
if you are going to advocate a strategy for failure or a precipitous 
withdrawal, you have the responsibility to tell the American people 
what the consequences would be, and to tell them how you would respond. 
These are the burdens of leadership.

                          ____________________