Congressional Record (Bound Edition), Volume 153 (2007), Part 6 - Congressional Record (Bound Edition), Volume 153 for March 27, 2007

[Congressional Record (Bound Edition), Volume 153 (2007), Part 6]
[Issue]
[Pages 7707-8026]
[From the U.S. Government Publishing Office, www.gpo.gov]

[[Page 7707]]

SENATE--Tuesday, March 27, 2007

The Senate met at 10 a.m. and was called to order by the Honorable
Robert Menendez, a Senator from the State of New Jersey.
______

prayer

The Chaplain, Dr. Barry C. Black, offered the following prayer:
Let us pray.
Most holy and gracious God, who turns the shadow of night into the
glory of morning, shower our lawmakers with Your mercy this day. Calm
troubled thoughts, and guide their feet in the way of peace.
Let Your strength be more than sufficient to meet and manage their
weaknesses. Make them instruments of Your grace and goodness, as You
renew in them the joy of belonging to You. Let Your eyes rest upon our
Senators, and keep Your ears open to their prayers.
Guard their feet so that they will not deviate from the path of
unwavering integrity. Give them fresh opportunities to discover Your
unlimited power. We pray in Your blessed Name. Amen.

____________________

PLEDGE OF ALLEGIANCE

The Honorable Robert Menendez led the Pledge of Allegiance, as
follows:

I pledge allegiance to the Flag of the United States of
America, and to the Republic for which it stands, one nation
under God, indivisible, with liberty and justice for all.

____________________

APPOINTMENT OF ACTING PRESIDENT PRO TEMPORE

The PRESIDING OFFICER. The clerk will please read a communication to
the Senate from the President pro tempore (Mr. Byrd).
The assistant legislative clerk read the following letter:

U.S. Senate,

President pro tempore,

Washington, DC, March 27, 2007.
To the Senate:
Under the provisions of rule I, paragraph 3, of the
Standing Rules of the Senate, I hereby appoint the Honorable
Robert Menendez, a Senator from the State of New Jersey, to
perform the duties of the Chair.
Robert C. Byrd,
President pro tempore.

Mr. MENENDEZ thereupon assumed the chair as Acting President pro
tempore.

____________________

RECOGNITION OF THE MAJORITY LEADER

The ACTING PRESIDENT pro tempore. The majority leader is recognized.

____________________

SCHEDULE

Mr. REID. Mr. President, we are going to proceed to a period of
morning business now. It will be for 60 minutes. The time is divided
between both the majority and the minority. The Republicans are
controlling the first 30 minutes. Following morning business, the
Senate will resume consideration of H.R. 1591, which is the
supplemental appropriations bill. We will interrupt consideration of
the supplemental at 11:50 in order to debate a judicial nomination. A
vote on confirmation of the nomination of George Wu to be a U.S.
district judge will occur around 12:10 or thereabouts. The vote will be
the first vote today. After that vote, we will recess until 2:15 p.m.
in order to permit the regular Tuesday meeting of the respective party
conferences.
As a reminder, cloture was filed last evening on the supplemental
appropriations bill. Members have until 2:30 today to file first-degree
amendments.
We are conferring with the Republicans--Senator McConnell and I have
spoken on a number of occasions, not this morning yet but yesterday--to
try to arrange votes on a number of amendments, one of which is the one
filed by Senator Cochran. We are going to try to work out an orderly
process to go to an amendment relating to minimum wage. There are,
perhaps, some other amendments the Republicans want to do dealing with
strikes, dealing with the funding of this bill. There is an issue which
is important to both Democrats and Republicans dealing with county
payments and payment in lieu of taxes.
At this stage, that is the universe of the matters we will work on
and try to get time agreements to proceed to the cloture vote, which
will occur in the morning. Hopefully, we can work toward that end and
get a lot of it done today.
We all recognize the importance of this legislation, not only from
the aspect of the military, but there are other matters in the bill
that are extremely important.

____________________

RECOGNITION OF THE MINORITY LEADER

The ACTING PRESIDENT pro tempore. The minority leader is recognized.

____________________

VOTES

Mr. McCONNELL. Mr. President, let me just note the remarks of the
majority leader that there are at least three amendments, hopefully, we
can vote on today: the pending Cochran amendment; there will be a
minimum wage amendment, on which Senator Grassley and Senator Baucus
are working; and the so-called county payments amendment, which also
has bipartisan support, which was referred to by Senator Reid. It would
be my hope that we could vote on all of those today. We have, as the
majority leader indicated, the cloture motion vote in the morning, so I
think it would be good to dispose of those three for sure today, if not
others.
Mr. President, I yield the floor.

____________________

RESERVATION OF LEADER TIME

The ACTING PRESIDENT pro tempore. Under the previous order, the
leadership time is reserved.

____________________

MORNING BUSINESS

The ACTING PRESIDENT pro tempore. Under the previous order, there
will now be a period for the transaction of morning business for up to
60 minutes, with Senators permitted to speak therein for up to 10
minutes each, with the first 30 minutes under the control of the
Republicans and the final 30 minutes under the control of the majority.

____________________

IRAQ SUPPLEMENTAL

Mr. THOMAS. Mr. President, I think this is certainly one of the most
important bills we have had before us and one, frankly, that is the
most time-constrained of any we have had before us. Normally, we have a
good deal of time to talk about bills and we have budget bills that
won't go into effect until next year, but the fact is, this bill, which
is for the funding of troops, these dollars need to be available within
the next couple of weeks, as we understand it, of course. So it is
important that we recognize that and that we understand the purpose of
this bill is to fund our troops.
Whether you agree with the troops being there, the troops are there,
and the fact is that it is up to us to provide the support they need
and the dollars which are necessary to provide them the support they
need in the position they are in. If there were ever a bill that should
be recognized as having a unique purpose and should not be attached to
other kinds of nonpertinent issues, I believe this is one. We are going
to have the opportunity to decide whether we want to attach other
issues to this bill and extend it, whether we

[[Page 7708]]

want to have a situation where there is a veto and all those time-
consuming things or whether we indeed want to have a clean bill that
provides for the support of our troops who are now in Iraq and
Afghanistan.
For weeks now, the President has repeatedly said he will veto the
bill if it ties the hands of the generals on the ground. What he is
saying is he and the generals have a plan, and the fact is the plan
seems to be making more advances and accomplishments than we have had
in the past, so we need to allow that to continue to work. We have all
said the President needs a different plan. The President now has a
different plan. There is new leadership in Iraq.
So I think we need to understand where we are with respect to this
bill because we certainly have been on notice and are well aware of the
looming veto. That veto would simply take more time and keep this money
from getting where it needs to be to support the troops.
Not passing this legislation, of course, would only delay the
critical resources and the necessary equipment and training for our
soldiers who are getting ready to deploy or have, in fact, deployed.
Secretary of Defense Gates has warned the Congress that if we delay
emergency spending for our troops already deployed, many will not be
able to come home. This is a very serious statement, and we need to pay
attention to it.
I don't want to portray the President's plan in Iraq as being a
success so far, but our commanders on the ground are reporting good
news and that we are making progress, and that is what it is all about,
of course. We need to be there until we have completed our task. I
understand that explaining what the completion of the task is may not
be easy, and people have different views about what that should be, but
it is pretty clear we need to be able to get the Iraqis in a position
to govern themselves before we can return. I am for returning as soon
as possible, but I think setting an artificial definition for when they
return is not appropriate anywhere and particularly not appropriate on
this bill.
I just do not understand how Members on the other side can say one
thing in their States and then stand and do the opposite thing--stand
for supporting their troops in their States and then come here and have
exactly the opposite position in Washington. At this point, we are
where we are, and we need to have funding for our troops in the field,
no question. Nobody would argue that, and I think no one would dispute
that is a time sensitive issue as well.
We are going to be here this week on this bill. We are going to be
gone next week. If the bill were to be vetoed, then we would have to go
through that whole process. One can see that if we are going to get
this done by the date which we have all heard, which is April 15, it is
important we take off these kinds of things that are holding it up. We
should not play political one-upmanship when it comes to funding our
men and women who are in theater or are ready to deploy--I don't think
there is any question about that--nor should we attempt to move
legislation by buying votes for things that would be at the expense of
our troops.
Unfortunately, the emergency legislation we have before us has been
larded up with all manner of nonemergency spending and extraneous
measures. Not only are we attempting to tie the President's hands by
micromanaging the war, but we are trying to push through pet projects
at the expense of our troops. I understand the politics of this place.
When someone has something they would like very much to have done, the
greatest thing to do is to put it on the bill that has to pass, and
even though it is inappropriate, even though it is not a part of the
purpose of the bill, of course, I understand that helps get it done.
But the request submitted to the Congress was to have $100 billion for
troops and hurricane relief. The bill we are considering contains an
additional $20 billion--$20 billion--for individual Member requests, a
minimum wage increase, and small tax packages. The last time I checked,
none of these is an emergency, so they do not qualify for this bill. I
understand the merits of many of these things, and they should be
considered. But, again, in terms of how we do things here, this is an
emergency bill, and things that are in here ought to qualify as
emergencies or else not be on the bill.
So we have to say: Do they have merit? Of course they have merit.
There is no question that many of them do and should be individually
addressed in the normal legislative process. They should be considered
because they have merit and, indeed, are worth consideration. However,
we are also faced with the question that the majority has said we must
get our fiscal house in order. That is what we have been hearing, but
that is not what we have been doing. It is easy to say that, but it is
hard to do it.
We do need to take a look at spending. This is an emergency bill--
this is outside the budget--and so it is a wonderful place to pen on a
lot of things that are additional spending that really aren't within
the limits of spending, which all of us seem to be so proud to be
putting on in this Congress. So I think we have to take a look at all
those things. Almost to a person, everyone has come to the floor and
promised the American public that future spending would be paid for.
These things that are added are not paid for. So we are not keeping
that promise that has been made.
I think this week the majority will have an opportunity to stand by
their words. We must keep Federal spending under control and
accountable. To add things that are inappropriate, that do not fit on
the bill, that are outside the budget--to use this opportunity is not
being accountable. To add projects to emergency spending, which by
definition is outside the normal budget process, is not the right way
to accomplish this goal.
It is going to be tough. We are going to have projects that everyone
on both sides of the aisle thinks: Oh, that is good for my State--
whether it is shrimp or spinach or whatever. So there will be support
for those things. But the fact is, they do not belong on this emergency
bill.
I remind my colleagues of the budget resolution for 2007 which
explicitly defines what constitutes an emergency. It says all of the
five following criteria must be satisfied in order for something to be
considered an emergency: No. 1, is necessary, essential, or vital; No.
2, sudden, quickly coming into being, and not building up over time;
No. 3, a pressing and compelling urgent need requiring immediate
action; No. 4, an unforeseeable, unpredictable, and unanticipated
issue; and, finally, not permanent but temporary in nature.
The Senate has to establish the criteria, and I think we ought to
follow it in this budget area. I know we cannot fix the problems in
just 1 week. There should be an effort to remove all the extraneous and
nondefense spending. I look forward to bringing an important question
before us, privatizing these things. The American people will soon
learn whether the Members of the Senate have committed themselves to
getting their financial house in order, whether they will back their
words with action.
I yield the floor.
The ACTING PRESIDENT pro tempore. The Senator from Texas.
Mr. CORNYN. Mr. President, I join my distinguished colleague from
Wyoming in addressing the pending business of the Senate, which is the
emergency supplemental to help fund our troops who are serving in
harm's way. The problem with this particular legislation is it does
more than that. In fact, contrary to its advertised purpose of
supporting the troops, it undermines the ability of our commanders on
the ground to actually succeed in the goal they volunteered to achieve
and which we have asked them to do because it sets artificial timelines
and attempts to micromanage the fighting of the war on the ground.
It ultimately jeopardizes the ability to get funds for the troops, to
provide the necessary equipment, to provide the replenishment of used-
up resources that are necessary as we rotate troops who are in the
battlefield today. It would ultimately make it more likely

[[Page 7709]]

that troops who are already there--who sacrificed a lot, along with
their families--are going to have to sacrifice even more because the
troops necessary and the equipment necessary to actually rotate in and
relieve them of their responsibilities will not be available.
The other thing that is so unseemly, to me, about this whole process
is, because this is the train leaving the station and colleagues know
that this bill needs to pass, or at least some version of it--emergency
spending to support our troops--that the House, in particular, and now
the Senate has joined in a similar manner in larding this
appropriations bill with various pork projects.
My colleague from Wyoming has pointed out that the nature of
emergency spending means this money goes straight to the deficit. In
other words, the bill is passed on to the next generation and beyond
and not paid for.
We just went through an elaborate process in passing a budget
resolution. Time and time again, the new majority has said they want to
engage in some budget and fiscal discipline, but that stated goal, to
try to deal with taxpayer dollars responsibly, to find offsets for
spending and have pay-as-you-go rules is completely belied by the
actions reflected in this particular appropriations bill.
The fact is, we did debate this issue just 2 weeks ago with regard to
artificial timelines and micromanaging the war. The Senate voted 48 to
50 not to approve cloture on S.J. Res. 9, which was an effort by our
Democratic colleagues to micromanage and set artificial timelines. They
lost that vote by 48 to 50. Now they are back again, trying it another
time.
Giving the enemy a timetable when American troops will withdraw from
Iraq without regard to conditions on the ground, without regard to the
early signs of progress that we are making, only helps the enemy plan
on how to establish and accomplish their goals, not our goals. Our
focus should be on how to succeed in Iraq, not how to tie the hands of
our troops, jeopardize the funding that is necessary for their success,
and to micromanage something that we have no business micromanaging
from the Halls of Congress, thousands of miles away from the
battlefield.
The tragedy of this is it now represents 18 different proposals by
the Democrats in Congress on how to lose in Iraq and not a single
proposal on how to succeed. The chairman of the Senate Armed Services
Committee on which I serve has pointed out that there are between 5,000
and 6,000 al-Qaida operatives now in Iraq. To pass legislation which
sets an arbitrary deadline for withdrawing our combat forces without
defeating al-Qaida makes no sense, no sense at all. It will create a
power vacuum, much as Afghanistan was after the fall of the Soviet
Union, which then gave rise to a failed state and a launching pad for
terrorist attacks on the United States on September 11, 2001. We need
to do everything in our power to prevent that from happening again and
not forget the lessons of 9/11 and allow it to be repeated in Iraq.
The Iraqis know our commitment there is not open ended, and they
understand the future of Iraq is in their hands. But to pass
legislation that micromanages how our troops should fight the enemy and
essentially allow the creation of safe havens for terrorists is the
height of irresponsibility.
We pointed out before, but it is worth pointing out again, we
unanimously confirmed General Petraeus, the architect of the
counterinsurgency plan currently being carried out in Baghdad. He does
not need the armchair generals in the Senate dictating military tactics
to him. If the Members of this body really support the troops, we will
provide, unencumbered, the resources necessary for our troops to
accomplish the goals which they so valiantly and bravely volunteered to
do, under the leadership of great generals such as GEN David Petraeus.
We all want our troops home as soon as possible. We all share that
goal. But any decision to withdraw from Iraq before the Iraqis
themselves are able to stabilize their country, with our help, to allow
them to govern and defend themselves, will not heighten America's
national security but, rather, will jeopardize it.
We have had 18 proposals to date from our colleagues on the other
side of the aisle. Every attempt they have had to try to pass one of
these proposals has failed. But as Yogi Berra said, ``It's deja vu all
over again.'' Here we go again. We just voted last week 48 to 50
against legislation that would impose a deadline. I hope we will not
have to continue to debate this over and over again and continue to
send the message to our enemies: Yes, you are that much closer to
breaking America's will in this contest of wills in something that is
so important to our national security. We need to get this legislation
passed and passed soon, so our troops do not have to guess whether the
funding necessary to carry out their mission will be forthcoming.
Using the supplemental appropriations to play political games and to
pay off domestic priorities, such as peanut subsidies and spinach
subsidies, is not in the best interests of our men and women in
uniform. That is why the President has threatened to veto this bill,
due to the pork and the timelines that are included in it. I encourage
my colleagues to think long and hard before moving forward in a way
that would compromise the mission of our troops who are serving to
protect all of us.
I yield the floor.
The ACTING PRESIDENT pro tempore. The Senator from Alabama.
Mr. SHELBY. Mr. President, I rise today to speak on the amendment of
Senator Cochran, the amendment to strike the language, of which I am a
cosponsor. I raised this in the Appropriations Subcommittee on Defense
last week. Senator Cochran indicated then that he would do as he has
done; that is, to move to strike the language in the supplemental
requiring the phased withdrawal of U.S. forces from Iraq in 120 days, 4
months--120 days.
Mr. President, as you heard--and you have been a party to--4 months
is clearly not enough time for General Petraeus or the brave members of
our Armed Forces to have a chance to see if a surge in troop numbers
could turn the war. I don't know for sure. I had, as a lot of us did, a
conversation with General Petraeus before he took command about the
troop surge, about the 20,000 troops. I personally think we need
100,000 troops, but we don't have them. General Petraeus is a very
smart man. He is a combat soldier. He is in control. I believe to put
on an arbitrary timeline of 120 days is the wrong message at the wrong
time, where they are beginning--just beginning--to secure some
neighborhoods. Will they continue to do this? We hope so. But we should
bring every bit of stability we can to the Baghdad area.
I have no illusion about sooner or later coming home. I would like to
see our troops come home. I don't think that will be the end of the
struggle with Islamic fundamentalists by any stretch of the
imagination, but I think if we are able to stabilize that area of Iraq
to some degree, perhaps there can be some kind of diplomatic resolution
because ultimately none of us ever envisioned staying in Iraq. We have
been there 4 years. I wish we were not there today, but we are and we
are heavily engaged.
I think we need to give our Armed Forces every opportunity to
succeed. We should not send an ambiguous message to them: We are going
to support you today and tomorrow we want you to withdraw, in 120 days,
or begin to withdraw. I think that is the wrong message, and I think it
would undermine the morale of our troops.
Congress should not be armchair generals. We should not try to
micromanage what is going on on the ground. That is why I support the
Cochran amendment. We need to give our commanders and our soldiers
every chance to succeed in Iraq, to bring stability there, where
diplomatic maneuvers then perhaps could begin to work. Sending
ambiguous messages to our Armed Forces is not the right way. They need
our support both morally and materially. I believe at the end of the
day they are going to get it.
The President has already signaled if this language were to stay he
would

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veto this bill. I believe what he says he is going to do. But we can
strike this language today. We can move on and get this supplemental
passed to make sure our troops are well funded and that they have what
they need to succeed. And they will succeed.
The members of our Armed Forces are in harm's way every day. We know
the horror stories about war. But they bravely face a sometimes unknown
enemy and have done everything asked of them--sometimes two and three
times, Mr. President, as you well know. Micromanaging the war from the
Halls of Congress is not the right thing to do.
I urge my colleagues to support the Cochran amendment and strike this
language from the supplemental bill.
I suggest the absence of a quorum.
The ACTING PRESIDENT pro tempore. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. BOND. I ask unanimous consent that the order for the quorum call
be rescinded.
The ACTING PRESIDENT pro tempore. Without objection, it is so
ordered.
Mr. BOND. I ask unanimous consent to speak as in morning business. I
know it is not our side's time. If there is no objection, I would
appreciate using the time.
The ACTING PRESIDENT pro tempore. Without objection, it is so
ordered.
Mr. BOND. Mr. President, this is going to be a very busy day. I have
comments that will relate to what will happen when we bring the bill up
on the floor, but I thought I would take this time to talk about two
things that are extremely important. First, with respect to the bill, I
am the lead Republican cosponsor, with the Senators from North Dakota
and South Dakota, on ag disaster. We have been 3 years without an
agricultural disaster bill. We have had 3 years of agricultural
disasters. Those of us from the Midwest know that we have been
afflicted with droughts, tornadoes, tremendous losses by farmers,
livestock producers, and others in agricultural production. I visited
southwest Missouri this January and saw what some people described as
countywide tornadoes. The ice storms were so severe they broke down
trees, collapsed sheds, knocked out power, broke down fences, and put
many livestock and poultry producers on the verge of financial
disaster.
Similarly over the years, when drought has struck, the ag producers,
livestock and poultry and crops, were hit severely. This ag disaster
package is absolutely essential. I appreciate the lead of the chairman
of the Appropriations Committee in including our request for ag
disaster.
In addition, I am a very strong supporter of the amendment of the
ranking minority member of the Appropriations Committee to strike the
limitations on the ability of General Petraeus to conduct the war in
Iraq. Let us remember that General Petraeus came before the committees
to outline his new ideas, his new plan for moving forward in Iraq.
People had been saying: We need a new plan. Yes, clearly, we need a new
plan. The Bremer plan, debaathification, firing the Army, sending them
home without pay and with their weapons, turns out to have been the
absolute wrong thing to do. But General Petraeus, who was unanimously
confirmed by this body, has gone back to Iraq with his new way of going
forward.
They have made some significant changes in the rules of engagement.
Now no longer are Shia death squads or militia off-limits. Moqtada al-
Sadr has seen the light or felt the heat, and he has gone to Tehran. We
are talking action against Jaysh al-Mahdi and others who are engaged in
sectarian battles. We have a new plan of going in, holding, and
clearing, the conventional and now-proven theory of dealing with
insurgencies. You cannot just go in and wipe out people who are causing
chaos and killing their political enemies. You have to stay there and
maintain peace, security. That is what we are supporting the Iraqi
forces doing. The Iraqi forces are there. They are the ones who are
going to have to take over. The training of the Iraqi forces is the
critical element for us to assure stability in the region.
Many of my colleagues on the other side of the aisle and on mine
embraced the recommendations of the Iraq Study Group. For example, the
distinguished majority whip on December 8 on CNN said:

We ought to follow the Iraqi Study Group.

This new plan the President and General Petraeus have put forward is,
by and large, the Iraq Study Group's plan. After receiving the report,
when you look at the recommendations, they track with what we are doing
now, from sending reinforcements to Baghdad to increasing the number of
embedded American advisers, to holding the Iraqi Government responsible
for specific security and political milestones. The differences between
what we are doing now in Iraq and the Iraq Study Group recommendations
are insignificant. Sending reinforcements to Baghdad, the principal
tenet of the new plan General Petraeus has put forth, is referenced in
general by the Iraq Study Group, which said it could support a short-
term redeployment or surge of American combat forces to stabilize
Baghdad, recognizing the level of violence in and around Baghdad has
crippled the ability of both the al-Maliki Government and the U.S.
military to restore basic services and establish a modicum of law and
order. I quote:

The ISG recognized, as does the U.S. military, that Baghdad
is central to success or failure in Iraq. It is not
surprising that more troops were added--the total number of
which is still below 2005 levels.

There is one other very important point that is of concern to
everybody in this body and all Americans. The Iraq Study Group said:

The United States should not make an open-ended commitment
to keep large numbers of American troops deployed in Iraq.

President Bush said of his plan and its implementation:

I've made it clear to the Prime Minister and Iraq's other
leaders that America's commitment is not open-ended. If the
Iraqi government does not follow through on its promises, it
will lose the support of the American people.

It is clear we have a new way forward. The language in the underlying
legislation before us says we ought to set a timetable, a political
timetable. We ought to determine in this body exactly the dates when we
start removing troops from Baghdad, from Iraq, changing our policy.
I have a novel idea: Wars cannot be run from these hallowed and
comfortable and sanctified chambers 10,000 miles away from the war
zone. How about allowing the officers, the men, and the commanders in
the field--who are engaged daily, risking their lives to bring peace
and security to Iraq--to determine when and how we can best turn over
to the Iraqi security forces the critical job--the critical job--of
assuring security and a relatively peaceful country? Nobody is saying
it is going to be a Jeffersonian democracy. What we are seeking is
peace and security.
We had an open hearing with the leaders of the intelligence community
in January before the Senate Intelligence Committee. The top leaders of
that intelligence community said, unanimously, it would be very unwise
to establish a short-term political timetable for withdrawal prior to
the time the Iraqi security forces take over.
If this body, in its ``wisdom''--an oxymoron in this case--says pull
out on such-and-such date, and the Iraqi security forces are not ready
to take over, what would happen? Three things--all of them bad.
No. 1, the killing, sectarian violence between Shia and Sunnis would
escalate. You would see many more thousands killed, as we would no
longer be there to serve as a buffer and as adviser to prevent that
from happening.
No. 2, the goal of al-Qaida, as expressed by Osama bin Laden and his
No. 2 man, Ayman al-Zawahiri, to achieve the headquarters of the
caliphate in the ``land of the two rivers,'' i.e., Baghdad, would be
achieved. They would have a safe haven. They would have a safe haven
from which they could train, recruit, perhaps even get back to turning
on the dual-use facilities Saddam Hussein set up for turning out
chemical or biological weapons.

[[Page 7711]]

Now, the third thing that would happen, which is a true disaster,
would be the neighboring countries would have to come in to back up
their co-religionists. If the Sunnis are being oppressed by the Shia,
then the Sunni states will be ready, and they will come in. If they
come in, Iran and its Shia partners are all ready to come in.
What happens then? We have a conflagration in the Middle East
bringing in many countries in a region-wide war that will draw,
unfortunately, perhaps hundreds of thousands of American troops to
prevent the disaster from spreading, to support our friends in Israel.
General Petraeus has promised, in his confirmation hearings, that he
will tell us if the new plan, the new rules of engagement--putting the
Iraqi security forces out front, with American advisers continuing to
supply American troops to go after the high-value targets, the radical
Salafist jihadists of al-Qaida and other entities--we will continue to
hunt them down so they do not overwhelm the Iraqi security forces.
General Petraeus will tell us. He should know by this summer if it
fails. If it fails, he said he will tell us, and I would trust he would
begin making such changes as are necessary, without tipping off the
enemy what they are planning to do. The important thing is not telling
the enemy what our timetable is.
I think it is perhaps illustrative to share with you some comments
from an e-mail I received from a marine who has been in Iraq and who is
going back. He was commenting on a timetable. He said: I haven't polled
all of them. I don't speak for all of them, but I can tell you, a
lion's share think a timetable is a disastrous idea. I don't know what
possible benefit you can assess that would come from a timetable. Where
is the help toward mission accomplishment?
He said: Iraqis understand that progress is being made. I think the
Iraqi forces are getting ready to take over and with our help should be
able to do it sometime in 2007. But if we tell everyone exactly when
that is going to be, it gets a lot easier for the merry mujahedin to
claim victory, lay low, and then wreak havoc when the coalition packs
up shop.
This particular marine said: I'm not wild about going back to Iraq,
but I would sure as heck rather do that than essentially invalidate
everything we've done to date by leaving too early and inviting chaos.
That is the choice. Does a political timetable give Members cover
back here? Maybe. But I have even heard that ridiculed. I have heard
that ridiculed. I ask this body to strike the language, let General
Petraeus run the war, let him pursue every avenue to assure Iraq is
stable and secure. He and the President have said, if it does not work,
we will change policy. But let's give it a chance to work.
Mr. President, I appreciate the indulgence of my colleagues and yield
the floor.

____________________

CONCLUSION OF MORNING BUSINESS

The ACTING PRESIDENT pro tempore. Morning business is closed.

____________________

U.S. TROOP READINESS, VETERANS' HEALTH, AND IRAQ ACCOUNTABILITY ACT,
2007

The ACTING PRESIDENT pro tempore. Under the previous order, the
Senate will resume consideration of H.R. 1591, which the clerk will
report.
The bill clerk read as follows:

A bill (H.R. 1591) making emergency supplemental
appropriations for the fiscal year ending September 30, 2007,
and for other purposes.

Pending:

Cochran amendment No. 643 (to amendment No. 641), to strike
language that would tie the hands of the Commander-in-Chief
by imposing an arbitrary timetable for the withdrawal of U.S.
forces from Iraq, thereby undermining the position of
American Armed Forces and jeopardizing the successful
conclusion of Operation Iraqi Freedom.

The ACTING PRESIDENT pro tempore. The Senator from North Dakota.
Mr. DORGAN. Mr. President, before my colleague from Missouri, Senator
Bond, leaves the floor, I wonder if I might just engage him in a
colloquy for just a moment.
Mr. BOND. Sure.
Mr. DORGAN. Mr. President, I came to the floor to speak about
agriculture disaster provisions in the emergency supplemental bill. We
had some people on the Senate floor yesterday questioning whether they
are valid, whether they are necessary provisions to help family
farmers. I noted the Senator from Missouri was a cosponsor of mine, as
we worked together to put the agriculture disaster program in the
emergency supplemental bill.
Let me make a point and then ask a question of my colleague from
Missouri.
First of all, I appreciate very much his help. I know Missouri has
been hit with a devastating drought and other weather-related disasters
for family farmers. It has been the case in other parts of the country
as well. We have been working for some long while just to reach out a
helping hand to those farmers out there struggling who got hit with
weather-related disasters to say: You are not alone. As is the
tradition in this country when you get hit with a weather-related
disaster and lose everything, this country wants to help you some. We
help everyone around the world. It is time to take care of things at
home. That is what this provision is about.
I ask the Senator from Missouri about his motivation for being a part
of those of us who worked together to get this put in the emergency
supplemental bill. I know he strongly supports it.
The ACTING PRESIDENT pro tempore. The Senator from Missouri.
Mr. BOND. Mr. President, I thank my colleague from the Dakotas.
Before he arrived on the floor, I made the case for it. The Senator
asked about the situation in Missouri. I told them about the
devastating ice storms. We have had a historic drought. What we need is
a comprehensive national policy to deal with the problems and not just
for the Dakotas or Missouri but for Colorado, Texas, Nebraska, Kansas,
California--throughout this country--where people have been devastated
by extreme weather conditions.
We have livestock producers who were hit the hardest. There is no
safety net in place for livestock producers. They are not protected by
crop insurance, the farm bill, or disaster protection under the USDA
since the standard is crop loss and there were no crops to be lost in
the middle of the winter in an ice storm. But the devastation is there.
This body and this Government came to the rescue of people who were
absolutely wiped out by Hurricane Katrina and other natural disasters.
Well, the impact in the farm area is very severe. No, it is not the
same as a hurricane, but the weather disasters have caused tremendous
hardships and threaten to put many farmers under and destroy rural
communities.
That is why I am very pleased to join with my colleague in urging
this body to keep the agricultural disaster program, the relief we have
not had for 3 years, in this bill.
I thank my colleague.
The ACTING PRESIDENT pro tempore. The Senator from North Dakota.
Mr. DORGAN. Mr. President, I thank the Senator from Missouri for his
leadership on this issue as well.
Let me say that the Congress did help farmers in the gulf region who
lost their crops. I understand we helped cities that were devastated
and lost buildings and lives and so on. We also helped farmers who lost
their crops.
My point is--and I think the point of the Senator from Missouri is--
there is no difference between a person who loses their entire crop in
Missouri or North Dakota or in the gulf region because of a hurricane.
We do not name droughts. We name hurricanes. But if Hurricane Katrina
took your entire crop away, this Government would say: We want to help
you. So, too, should we help in the case of a drought or ice storms, as
the Senator from Missouri just described. I certainly appreciate his
help on these matters.
I wanted to come to the floor because yesterday there was some
discussion by

[[Page 7712]]

several Members of the Senate referring to the agriculture disaster
piece as pork. Now, our farmers know about pork, and they know you do
not legislate pork, you eat pork. There is a big difference.
I am just curious, why is it every time you try to do something in
this country to help people who need help, it is called pork. Well, if
you invest, for example, in public policy, as we have, to say build a
road in Iraq, that is national security. If you have a provision in an
appropriations bill that says build a road in this country, it is pork.
If you build a health clinic in Iraq, that is national security. If you
build it here, it is pork. If you build a water project in Iraq, that
is national security. If you build it here, it is pork.
Why is it, to someone in this Chamber, investing in this country is
always pork, but as long as it is investing somewhere else in this
world, that is just fine. Mr. President, $18.1 billion went out of this
Chamber in unbelievable ways for reconstruction in Iraq. Let me tell
you, any time someone is sending one-hundred-dollar bills out of the
back of a pickup truck, you don't think there is going to be graft and
fraud and corruption? You take a look at what has happened with respect
to the taxpayers' money and the way it was spent in Iraq. I described
some of that on the floor of the Senate previously.
We paid a corporation $220 million to reconstruct 142 health clinics
in Iraq. Twenty got done. The rest--122--never got done. A courageous
Iraqi doctor went to the Iraqi Health Minister and said: Well, can I
see these Iraqi clinics that were supposed to have been rehabilitated
with American taxpayer dollars?
The Iraqi Health Minister says: Well, those were ``imaginary
clinics.''
The money was not imaginary. The American taxpayer got fleeced. The
money is gone.
But why is it when we come to this Chamber and talk about investing
in people's lives in this country--a farmer, his wife, and two kids,
who live out under a yard light, who planted in the spring, trying to
make a go of it, hoping it would not rain too much, hoping it would
rain enough, hoping it would not hail or they would have crop disease
or insects, hoping they would raise a crop. Finally, when they get a
crop, they hope the price is sufficient so maybe they can make a
living. Then, along comes a storm, an unbelievably devastating storm--
perhaps an ice storm, perhaps a torrential rain--that wipes out their
entire crop, washes it away. Or maybe it is a drought. All of a sudden,
that farmer has nothing. Oh, they put the seeds in the ground, but
nothing came up, or they put the seeds in the ground, and it washed
away. The farmer ends up with nothing.
Look, the grand tradition in this Chamber has always been to provide
some disaster aid to farmers who lose everything. Why? Because we want
to maintain a network of family farms in this country. This is not new.
We have been doing it for some long while. When we have devastating
weather-related disasters hit family farmers, we help them with a
disaster bill. It is only recently that has become controversial.
Twice I have run that disaster bill through the Appropriations
Committee. Senator Conrad, myself, and others put together a bipartisan
bill. As an appropriator this year, I offered it with my colleague,
Senator Feinstein from California, and Senator Bond from Missouri--
bipartisan. We offered it a third time. It is going to come to the
floor now. It is in this bill, and we have people complaining about it.
This is investing in our country's strength. This is the best notion of
our country to say to family farmers: You had some trouble. It wasn't
your fault. We want to help you through this difficult time.
Now, we have usually done this without great controversy. The
controversy this time is because the last two times I got this through
the Senate, I was a conferee and I went to the conference. The
President was threatening to veto a bill that had agriculture disaster
help in it for family farmers. So twice we went to conference and the
U.S. House conferees, at the request of the then-Speaker of the House,
Mr. Hastert, blocked it on behalf of the President.
Well, it is here a third time and we will go to conference. This time
I will be a conferee and my colleague Senator Feinstein will be a
conferee, Senator Bond will be a conferee, and there will be bipartisan
support on the Senate side. The difference this time is we go to the
conference and the House conferees will come to conference having
passed their own disaster bill for family farmers. This time we are
going to get this to the President's desk, at long last.
Some say: Well, why just farmers? Why family farmers? There is
something unusual about those who produce from the land in this
country. It goes back to the homestead days in sod huts out there,
alone, trying to raise a family, raise a crop, make a living. We could
do, I suppose, without family farmers, but it wouldn't be the same
country. You could have corporate agri-factory farms from California to
Maine, but it wouldn't be the same country. Once they control food
production, then ask yourselves: What is going to be the cost of food
in this country?
Someone once wrote, and I have mentioned him on the floor a few
times--Rodney Nelson, in fact, a North Dakota rancher who wrote a piece
of prose about ranching and farming. He asked this question, and I
think it is important for the country. He said: What is it worth for a
kid to know how to plow a furrow, how to teach a newborn calf to suck
milk from a pail? What is it worth for a kid to know how to weld a
seam? What is it worth for a kid to know how to build a door, to build
a lean-to, to grease a combine, to pour cement? What is it worth for a
kid to learn all of those things? There is only one university in
America where you learn all of that, and that is the family farm,
America's family farm. It is an unbelievable asset to this country.
We are asking for something very simple that has been done routinely
prior to this President beginning to block it, and that is when trouble
comes, when weather disasters wipe out an entire crop, we say to
families living out there under the yardlight, trying to raise a family
and raise a crop: You are not alone. This country wants to help. That
is why we brought this in this bill to the floor of the Senate. It
won't make anybody whole, but it does say to farmers: Maybe you will
have a chance to keep going. They live on hope. How else could you
plant a crop and do anything other than hope that things will work out?
This country has a rich tradition of supporting family farmers,
because it is in this country's interests. The seedbed rolls from big
cities to small towns and enriches and nourishes this country. We have
always known that and we have always done the right thing.
Family farmers have been hard hit in the last couple of years with
weather-related disasters. This Congress took action with respect to
one facet of those weather-related disasters. We said farmers in the
Gulf of Mexico who lost their entire crops due to a hurricane named
Katrina, you are going to get some help. The rest of you, we are sorry.
Well, listen. I was supportive of saying to those farmers we are going
to give you some help. It doesn't matter to me whether it is a Katrina
or a drought that doesn't have a name or an ice storm that is not
named, weather-related disasters that destroy farmers' crops, in my
judgment, ought to be responded to by this Congress to say to those
family farmers: This has destroyed your crop, but not your hope. We
want to give you hope to be able to continue farming. That is what this
disaster piece is all about. I am proud to stand here and support it.
Those who believe this is some kind of pork do not understand what
essential investment in this country's strength is all about. An
investment in America's family farming is a good investment in this
country's future.
My colleague from California who worked with me in the Appropriations
Committee to get this done is on the floor, so let me yield the floor
to her and thank her for her leadership in responding to these needs as
well.

[[Page 7713]]

Mr. President, I yield the floor.
The ACTING PRESIDENT pro tempore. The Senator from California is
recognized.
Mrs. FEINSTEIN. I thank the Senator very much. Thank you, Mr.
President.
I very much commend the Senator from North Dakota. I think he said it
well and in a very inspiring way. If I had to summarize it, it would be
that we in America try to take care of our own--not only people in
other nations, but people who have been the victims of real disaster in
this country.
The fact is we haven't been doing it for 3 years, and the disasters
have piled up: in 2005, 2006, and 2007. This package takes care of that
problem. In my State, California, we suffered two devastating disasters
in the last 2 years which have resulted in Federal disaster
declarations: a heat wave and a freeze. We are currently suffering a
drought. Governor Schwarzenegger has certified through March 13 a loss
from the freeze of $1.397 billion. The total damage has yet to be
figured.
I think people don't understand how big this was in California. We
have losses in 35 out of 58 counties, many the most productive in the
country, that produce more agricultural products than 22 other States,
in 40 different types of crops. They include avocados, strawberries,
grapes, walnuts, guavas, lettuce, broccoli, cauliflower, artichokes,
asparagus, and celery.
The losses include $817 million in damage to California's citrus
crops. Lemons, limes, mandarins, grapefruit, navel oranges, and
Valencias are dead in the field. Here is what some of it looks like.
This is one tree.
Now, most people know Florida has oranges, but those are the oranges
we make juice out of. When you eat an orange, a tangerine, or a
grapefruit, or you put a lemon in your ice tea, those fruits are from
California. But not this year. We have lost at least 50 percent of the
navel orange crop, 65 percent of the Valencia crop, and 65 percent of
our mandarins. My farmers need this assistance.
Some of my colleagues are asking, why do we need to provide this
funding? Farmers should have their own insurance. The answer is, in
California most farmers already do have insurance, but here is the rub:
It is not going to be nearly enough to cover the damage.
Let me provide an example. According to the Department of
Agriculture's Risk Management Agency, citrus growers will be able to
collect up to $311 million in crop insurance. Now, that sounds like a
lot, but the farming costs for California's citrus industry for this
year's operations alone total $560 million. What do I mean by farming
costs? This is the amount farmers have spent to irrigate, spray, prune,
everything that is necessary to prepare a crop for harvest. But this
year, there is no harvest. Therefore, they absorb the $560 million.
They also have to begin to get ready for next year's harvest. They
need to get their loans. That will also be an incurrence of $560
million in normal farming costs. That adds up to $1.2 billion in
regular farming costs, and only $311 million--at most--in available
insurance they can recoup. And they are not guaranteed a crop next
year.
Add on to that the $100 million these growers spent in January on
wind machines, irrigation, and other methods to protect their orchards
from the freezing temperatures, plus the costs they are incurring now
to remove the dead fruit and branches.
Now, 85 percent of citrus is grown by family farmers--that is just a
fact--not the big agricultural combines. These are responsible farmers.
In fact, 75 percent of the citrus acres in California are insured, but
again, insurance alone will not cover the needs of my constituents.
This is why we need this assistance.
When some people saw there was also an appropriation for dairy milk
loss, some people actually laughed. I was offended, because in July of
2006, California experienced 2 weeks of blistering, triple digit
temperatures. For 12 days the San Joaquin Valley, the most productive
agricultural region of this country, had temperatures over 105 degrees.
What does this mean? Well, 20,552 milk cows died and 10,738 calves
died. Those are counted animals--over 30,000 dead. That doesn't include
our losses in poultry. There were so many dead carcasses, the rendering
plants could not handle the load. The State temporarily lifted the ban
on burying dead livestock in landfills, but that was still not enough.
These cows died because of the heat. Even the cows that survived
produced 25 percent less milk than is normal. So the death of these
animals, plus the stress put on the ones still producing, resulted in
more than $228 million in milk losses for my dairymen.
In addition, because regular breeding could not take place for a
month because of the death of so many animals, my farmers will again
face at least $228 million in losses for 2007. That is why my
colleague, Senator Barbara Boxer, has joined with me in helping us push
for the addition of this relief into our emergency supplemental.
This is a total of $460 million in losses. We are asking for only $95
million, and that is in this supplemental. What is more, this funding
can be accessed by dairymen on the gulf coast, including Mississippi,
Louisiana, and Arkansas, who also suffered losses due to the
hurricanes.
Let me conclude. This has not been easy, and I thank Senator Byrd,
Senator Dorgan, Senator Conrad, Senator Kohl, and Senator Reid for
their work on this Agricultural Disaster package, and also the
Republican leadership on the Appropriations Committee who acceded to
the request.
America is a great nation, and one of the reasons we are a great
nation is we don't only care about others; we care about our own. If
there is ever a time when we could help our own, it is in this
supplemental appropriation. So what I say is: Hands off, please. We
have worked hard to get where we are. The losses have been substantial.
The disasters have been large. Families who can't pay their mortgages,
who lose their boats if they are fishermen, lose their farms if they
can't make the payments, can be helped by this assistance. So I hope it
remains in. I hope we resist an effort to remove this from the
supplemental package. Again, I thank those who have helped with this.
Mr. President, I yield the floor, and I note the absence of a quorum.
The ACTING PRESIDENT pro tempore. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. DORGAN. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER (Mr. Casey). Without objection, it is so
ordered.
Mr. DORGAN. Mr. President, we are considering the supplemental
appropriations bill. I spoke earlier about the agricultural disaster
piece in that bill. I believe other colleagues will be over to talk
about that as well. My colleague, Senator Feinstein from California,
just finished discussing it. She was a major cosponsor of it. I have
indicated previously that my colleague, Senator Conrad, is coming. He
worked to create a coalition of interest and support of the
agricultural disaster piece. So when others come, I expect we will have
more discussion about this important issue.
I wish to talk for a moment about the supplemental appropriations
bill and the issue of Iraq. Earlier, one of my colleagues was
describing the issue of Iraq and the controversy that the Congress
might get involved and somehow interfere and that there cannot be 535
commanders in chief. I understand that. I wish to make a couple of
points about Iraq, however.
The issue of Iraq, as you know, casts a shadow on virtually
everything else in this country. We are spending, in terms of the lives
of American soldiers and America's treasure, an unbelievable amount
with respect to the war in Iraq. All of us want this country to
succeed. There is nobody here who doesn't want America to succeed in
whatever we are involved in.
I wish to make this point: The National Intelligence Estimate has
just been completed. There is a classified and an unclassified version.
The unclassified version tells all of us and the

[[Page 7714]]

American people that what is happening in Iraq is largely sectarian
violence. It is not a fight against the ``terrorists.'' It is sectarian
violence--Shia trying to kill Sunni, Sunni trying to kill Shia. That is
a civil war by classic definition. That is what we face in Iraq. There
is an al-Qaida presence in Al Anbar Province. We understand that. What
is happening there is largely a civil war.
Now, the head of our intelligence services in this country testified
twice. The former head, Mr. Negroponte, and the current head have
testified within the last 2\1/2\ months. Both of them have said exactly
the same thing. They have both said the greatest terrorist threat to
this country is al-Qaida, its networks around the world, and its
determination to strike us in our homeland. So the greatest threat to
our homeland is from the terrorist group al-Qaida. Both have described
al-Qaida as operating in a safe hideaway in northern Pakistan.
If the greatest threat to our country is al-Qaida, if the leadership
of al-Qaida is directing threats against our homeland and they are in a
secure hideaway in northern Pakistan, if that is the greatest threat to
our homelend, and if, in fact, what is happening in Iraq, according to
the National Intelligence Estimate, is a civil war, then I think the
question is, What better protects our country? Is it beginning to
extract from a civil war? After all, the Iraqi people have seen Saddam
Hussein executed. They have seen the opportunity to vote for their own
new Constitution. They have been given the opportunity to vote for
their own new Government. The only question remaining is, Do those same
people have the will to provide for their own security? So the question
is, What better protects our country? Is it the opportunity to extract
from a civil war at some point soon or is it the determination to
ignore the presence of the al-Qaida leadership in northern Pakistan?
If we begin to withdraw and extract from a civil war in Iraq, do we
then have a better capability to keep our eye on the ball, the greatest
threat to our country, the leadership of al-Qaida and their network
around the world? If that were the case, wouldn't this country wish to
begin to take action against the greatest threat to our homeland and
threat to our security, the leadership of al-Qaida?
That is not me describing that. That is from the National
Intelligence Estimate, the combined judgment of the intelligence
communities in our Government.
You can make a pretty strong case that Osama bin Laden, who boasted
about murdering innocent Americans on 9/11/2001--he still speaks to us
from time to time from a ``secure hideaway,'' as described by the head
of our intelligence. Al-Zawahiri and Osama bin Laden, after all of
these years having passed since 9/11, still exist. Their leadership
apparently is still intact, according to the head of our national
intelligence services. We generally know where they are. They are
apparently in a country that is supposed to be cooperating with us--
Pakistan.
The question is, Why have we not brought to justice the leadership of
al-Qaida, if that is our greatest threat? The answer, I suppose, is
because this country has 140,000-plus soldiers in Iraq prosecuting a
war in the middle of what is now a civil war in Iraq.
We can debate forever, perhaps, the conditions that got us to this
point--terrible intelligence, the most unbelievable intelligence
failure, perhaps, in the history of this country. This country told the
world that the country of Iraq possessed weapons of mass destruction
that threatened America. Now it turns out, we understand, to take one
example, that the issue of mobile chemical weapons laboratories--that
intelligence was given to us by German authorities. That came from a
fabricator who is now alleged to have been a drunk--a single source,
perhaps drunk, fabricator persuades this country to tell the world Iraq
has mobile chemical labs. But it turns out they didn't.
I could go on at great length about the intelligence failures.
Whatever the intelligence failures were, we went to Iraq. This country
went to Iraq, and a number of things have happened. We have unearthed
mass graves. Several hundred thousand Iraqis were murdered by a brutal
regime headed by Saddam Hussein. There are a number of brutal regimes
in this world. We don't take it upon ourselves--unless it is in our
national interest--to send troops to those brutal regimes. But Saddam
Hussein was, in fact, a brutal dictator. He has been executed. The
world is better for that. The country of Iraq has shed itself of a
brutal dictator. His execution comes amid other opportunities for the
people of Iraq. They have a constitution, a brandnew one; they wrote it
and voted for it. They have a new government. They have created and
voted for that government. And now we have tens and tens and tens of
thousands of American soldiers in Iraq, in the middle of a civil war.
We have taken our eye off the ball because the issue really is the
terrorist organizations that wish to commit acts of terror against our
country. The head of our national intelligence says that al-Qaida is
the greatest terrorist threat to our country. They are in secure
hideaways in northern Pakistan. It seems to me that the ability to
begin to extract ourselves from the middle of a civil war in Iraq gives
us the opportunity to put pressure on and work with other countries to
bring to justice the greatest terrorist threat to this country, the
terrorist organization that murdered Americans on 9/11/2001. That ought
to be our overriding goal. If that is the greatest terrorist threat, it
seems to me our most important job is to eliminate that threat, and
sooner rather than later.
So I end where I began. No one in this Chamber has a difference of
opinion about whether we want our country to succeed. We love our
country, and we want to succeed. We honor our soldiers, and we insist,
when we send America's sons and daughters to war, that they have all
the things they need and the support they need to do their job. But
from a policy perspective, I believe this President has made very
serious mistakes.
One of my colleagues, this morning, said the general will tell us
whether things are going well. I cannot tell you how many briefings I
have been in--top-secret briefings--month after month after month and
year after year in which the top generals have come to us and said
things are going really very well, when, in fact, that hasn't been the
case. Only later have we discovered it was not the case; it never was
the case.
It seems to me that this country has to evaluate what it can do at
this point to begin to find a way to withdraw and extract from a civil
war in Iraq. Perhaps there needs to be partitioning, I don't know. I
know that is a tough subject to introduce these days. But if there are
no alternatives, perhaps you have to partition the parties fighting
each other, the Sunnis and Shias, and try to find another device to
deal with the issue.
In any event, it seems to me it is in this country's best interest to
keep our eye on the ball, and the ball here is, according to head of
our intelligence, that the greatest terrorist threat to our country is
the leadership of al-Qaida and their network. We have not, in my
judgment, with respect to al-Qaida and the deepening problems of the
Taliban in Afghanistan, kept our eye on the ball. That is one of the
reasons there needs to be a change.
This notion of ``stay the course'' or ``cut and run,'' which was the
slogan--there is the slogan of the week or the slogan of the month. The
administration's slogan of the month last year was ``stay the course''
or ``cut and run.'' It was always a false choice that was never a
substitute for thoughtful debate. It was a thoughtless chant of things
that mattered very little.
What matters most to this country is that we are engaged in pursuits
which will provide opportunity to strengthen this country, which do
honor and justice to the efforts of our soldiers, and which relate to
responding to the terrorist threat because the threat against this
country is a very serious, abiding, long-term threat. All of us want to
succeed in dealing with that threat.

[[Page 7715]]

Mr. President, one of my colleagues, Senator Conrad, has arrived. I
think he intends to speak on this agricultural disaster issue. Let me
at this point yield the floor, and I think other colleagues will speak
on the agricultural disaster piece I spoke on earlier.
I yield the floor and suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The bill clerk proceeded to call the roll.
Mr. CONRAD. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. CONRAD. Mr. President, this week, the Senate will once again have
the opportunity to demonstrate its support for America's family farmers
and ranchers by improving emergency agricultural disaster assistance as
part of the supplemental appropriations bill.
For over a year, I, along with Senate colleagues from both sides of
the aisle, have attempted repeatedly to convince the Congress of the
United States and this administration to provide desperately needed
disaster assistance.
As part of the hurricane supplemental last year, the Senate approved
an agricultural disaster package. That measure was dropped in
conference as a result of opposition from the administration. The need
for this legislation has only been made more compelling by the severe
disasters that have hit California, Colorado, Kansas, Nebraska, New
Mexico, and Oklahoma during the final weeks of 2006.
In my own home State of North Dakota, in 2005, we had a disaster that
was devastating to thousands of farm and ranch families. This is what
we saw across North Dakota--flooded lands, over a million acres of land
that could not even be planted and another million acres of land that
was drowned out. Then, irony of ironies, the next year we had a
devastating drought--the third worst drought in this Nation's entire
history, hitting not only North Dakota but right down the heartland of
America.
This is a farm field near my home, in Burleigh County. I live in
Bismarck. This is a farm field in that same county, and you can see
almost nothing growing.
Here is the U.S. Drought Monitor, and they determine on a scientific
basis the effect of drought across America. This is from July 25, 2006,
and you can see drought right down the heartland of America--in our
case, exceptional drought. That is the dark brown right on the border
between North Dakota and South Dakota--exceptional drought. The next
category going down the scale, extreme drought, an even broader area
between the two States. We also see exceptional and extreme droughts in
these parts of the country, and then severe drought. That is the tan.
Virtually all of North Dakota had exceptional, extreme, and severe
drought conditions. And, of course, not just North Dakota, it was right
down the heartland of the country.
This is a headline from July 30, 2006, from the Grand Forks Herald:
``Dakotas the Epicenter of a Drought-Stricken Nation. More than 60
percent of the United States in drought.''
This has been an absolutely bizarre set of circumstances: One year,
extreme flooding; the next year, extreme drought. But that is the
reality of what we have confronted, and if assistance is not provided,
thousands of farm families will be forced off the land.
The President's chief economic adviser was in my office to visit me
on another matter at the same time there were independent bankers from
my State there to talk to me about agricultural assistance--bankers
talking to me about the desperate need for drought assistance. They
told me and told the President's chief economic adviser that if
assistance were not forthcoming, they would lose 5 to 10 percent of
their clients. These are farm and ranch families who work hard, who
love this country, who work the land, and who are some of the most
independent people you would ever want to meet. The last thing they
want is a government handout, but if they do not have a helping hand
extended to them, they are going to be out of business. That shouldn't
be the result. We should provide the very basic assistance we have
provided in other times in other parts of the country to those who have
been hard hit.
Let me make certain that people understand. To get any assistance,
producers will need to demonstrate they have had a 35-percent loss, and
they will get no help for that first 35 percent of loss. That is the
floor. They have to have lost 35 percent before they get anything, and
then the assistance will apply to the losses beyond 35 percent.
Nobody is getting rich on this program. Some have suggested this bill
will result in farmers becoming more than whole because of crop
insurance. That is simply incorrect. Under the provisions, a producer
receiving disaster assistance cannot recover more than 95 percent of
the expected value of the crop, after both crop insurance and the
expected market income from the crop have been deducted.
This is desperately needed. It is done in a way that is fair and
balanced and prevents abuse. I hope my colleagues will support it.
I thank the Chair, and I yield the floor.

____________________

EXECUTIVE SESSION

______

NOMINATION OF GEORGE H. WU TO BE UNITED STATES DISTRICT JUDGE

The PRESIDING OFFICER. Under the previous order, the Senate will
proceed to executive session to consider the following nomination,
which the clerk will report.
The legislative clerk read the nomination of George H. Wu, of
California, to be United States District Judge for the Central District
of California.
The PRESIDING OFFICER. Under the previous order, there will be 20
minutes for debate, equally divided between the chairman and ranking
member of the Judiciary Committee.
The Chair recognizes the gentleman from Vermont.
Mr. LEAHY. Mr. President, with this confirmation--and I expect Mr. Wu
will be confirmed--we will have confirmed 14 lifetime appointments to
the Federal bench so far this year. This is March. I mention that
because, when President Clinton was in office and the Republicans
controlled the Senate, there were only 17 confirmations during the
entire 1996 session of the Senate.
For those who think there is partisanship in the confirmation of
judges, yes, there has been. Fortunately, it has been my friends on the
other side.
Today the Senate continues, as we have since the beginning of this
Congress, to make progress on judicial nominations. The Senate will
consider and, I believe, confirm the nomination of George H. Wu to be a
United States District Judge for the Central District of California.
With this confirmation, the Senate will have confirmed 14 lifetime
appointments to the Federal bench so far this year. There were only 17
confirmations during the entire 1996 session of the Senate. I have
worked cooperatively with Members from both sides of the aisle on our
committee and in the Senate to move quickly to consider and confirm
these judicial nominations so that we can fill vacancies and improve
the administration of justice in our Nation's Federal courts.
The Administrative Office of the U.S. Courts lists 48 remaining
judicial vacancies, yet the President has sent us only 27 nominations
for these vacancies. Twenty-one of these vacancies--almost half--have
no nominee. Of the 20 vacancies deemed by the Administrative Office to
be judicial emergencies, the President has yet to send us nominees for
10 of them. That means half of the judicial emergency vacancies are
without a nominee.
Judge Wu's nomination has the support of his home State Senators, and
I thank Senators Feinstein and Boxer for their support of this
nomination.
Judge Wu has an extensive record of public service as a State trial
judge, a

[[Page 7716]]

Federal prosecutor, and a law professor. In his 14 years on the State
trial bench, Judge Wu has served in the Los Angeles Municipal Court and
in the Los Angeles Superior Court, handling an array of criminal and
civil cases. Previously, Judge Wu worked on complex commercial matters
in private practice for two Los Angeles law firms. Judge Wu has also
served as a law professor at the University of Tennessee School of Law,
and as an assistant U.S. attorney and later assistant division chief in
the civil division of the U.S. Attorney's Office for the Central
District of California.
I am pleased that the nominee before us is an Asian-Pacific American.
I have urged, and will continue to urge, the President to nominate men
and women to the Federal bench who reflect the diversity of America.
Racial and cultural diversity remains a pillar of strength for our
country and one of our greatest natural resources. Diversity on the
bench helps ensure that the words ``equal justice under law,''
inscribed in Vermont marble over the entrance to the Supreme Court, are
a reality and that justice is rendered fairly and impartially. Judicial
decisions should reflect insight and experiences as varied as America's
citizenry. A more representative judiciary helps cultivate public
confidence in the judiciary which strengthens the independence of our
Federal courts.
There is still much work to be done. Out of the 875 seats on the
Federal judiciary, there are only 5 active Asian-Pacific American
judges on the Federal bench, less than 1 percent of all Federal judges.
President Bush has nominated only two Asian-Pacific American candidates
during his 6 years in office, neither to a seat on a Federal circuit
court. With outstanding lawyers like Dean Harold Koh of Yale, Professor
Goodwin Liu of Boalt Hall School of Law at the University of California
at Berkeley, or attorneys Karen Narasaki, John Yang and Debra Yang, it
is not as if there is a dearth of qualified candidates who would be
universally endorsed.
Our Nation has highly qualified individuals of diverse heritages who
would help to unify our Nation while adding to the diversity of our
courts. I hope the President will send us more consensus nominees that
reflect the rich diversity of our Nation.
I congratulate Judge Wu, and his family, on his confirmations today.

Emergency Supplemental Appropriations

Mr. President, this emergency supplemental bill that we are debating
today has been long seen as our best chance of extricating ourselves
from the quagmire in Iraq. As one of only 23 Senators who opposed the
authorization of the use of military force, I have supported every
credible proposal that has come before this body to bring our troops
home.
The war in Iraq was not about September 11. It was not about al-
Qaida. It was not about making our Nation safer. While no one can prove
a negative, I believe the damage this war has done to our national
security, our national interest, and our international standing has
been incalculable. When we had a chance to capture Osama bin Laden, the
master mind of 9/11, we let him get away because the administration,
the Bush-Cheney administration, wanted to take our troops out of
Afghanistan and send then to Iraq, a country that had absolutely
nothing to do with 9/11. The injustices perpetrated at Abu Ghraib and
Guantanamo have tarnished our national reputation and leadership, and
the way Iraq has become a rallying cry for religious extremists has
made the American people less safe.
For whatever misguided reasons, the President started a unilateral,
preemptive war in Iraq which has cost us thousands of American lives
and made us less safe. I think that historians will look back at this
war as one of the most costly, reckless mistakes made by any
administration in this history.
This supplemental contains another $96 billion to support U.S.
military operations in Iraq and Afghanistan. I supported the use of
military force to remove the Taliban from power, and I support the
continued efforts of our military and NATO forces against the Taliban
and al-Qaida in Afghanistan. But I did not, do not, and will not agree
to the use of the U.S. military to continue putting our people in
harm's way in the middle of a continuing civil war in Iraq.
This bill also contains money to help the people of Lebanon rebuild
after the devastating war between Hezbollah and Israel last year, aid
for refugees in Darfur, the Congo, Uganda, and other humanitarian
crises, and to prevent the spread of avian influenza. It contains
resources to help Kosovo as it moves toward independence, for Liberia
to rebuild after their civil war, and to support the peace process in
Nepal which finally has a chance to shed its feudal past.
It contains a provision I sponsored, with the support of both
Republicans and Democrats, to fix the illogical and unfair provisions
in the Immigration and Naturalization Act that have been used to
prevent victims of terrorist groups or members of groups who fought
alongside the United States from admission as refugees or from
obtaining asylum.
As the chairman of the Senate's Subcommittee on State, Foreign
Operations, and Related Programs, I am also pleased to report the bill
includes, for the first time, benchmarks on a portion of the
reconstruction assistance for Iraq. We are not going to continue to
pour billions of dollars into no-bid contracts that have been plagued
by rampant fraud and shoddy workmanship. It is about time we put an end
to the practice of handing out American taxpayers' money with no
strings attached. These benchmarks reflect what the Iraqi Government
itself has pledged and what even President Bush acknowledged is
necessary if the Iraqi Government is to succeed in bringing stability
to that country.
So there is much in this bill that I support, but despite that, I do
not support the funding to continue the military operations in Iraq,
and I will vote against this bill unless it contains the provision
relating to the withdrawal of our forces, which is similar to
legislation which narrowly lost in the Senate last week. I voted for it
then, and I will vote for it again.
The withdrawal provision in this bill is not, in some respects, as
definitive as what passed the House by the slimmest of margins last
Friday. Like many others, I would have written it differently. I wanted
a deadline for commencement of the withdrawal of our forces but also
for completing it within a target date. I have cosponsored legislation
that contains such a deadline. But this provision represents a 90-
degree change of course from the President's policy of escalation in
the middle of a civil war. It is our best hope of obtaining the
majority of votes needed to begin that process. So I am confident that
once the withdrawal of our troops begins, there will be no turning
back.
We have to remove our troops from the Iraq civil war. That argument
has been made eloquently, including by former senior military officers
whose credibility is unimpeachable. Retired LTG William Odom, in an op-
ed piece of February 11 in the Washington Post, said it better than I
ever could. It is the only way the Iraqis will make the difficult
political compromises that can save their country from further
destruction.
The President has threatened to veto this bill if the troop
withdrawal provision is included. That is not surprising for a White
House that has stubbornly refused to change course even in the face of
dwindling support from the American people whose sons and daughters are
dying. For more than 4 years, President Bush, Vice President Cheney and
former Secretary of Defense Rumsfeld, backed by a rubberstamp Congress,
made one incompetent decision after another, arrogantly insisting they
knew best and dismissing anyone who so much as questioned their policy
for ``not supporting the troops.'' It has been reminiscent of the old
``soft on communism'' and ``soft on drugs'' refrains that were used,
and still are used, for political purposes to justify failed policies.
None of us should be intimidated by these worn out arguments. If they
want

[[Page 7717]]

to show their support of the troops, they should do something about our
VA system. Fix up Walter Reed and fix up the other facilities where we
are not giving proper help to our wounded soldiers when they return
from Iraq. We Democrats want to support those troops, too, and not just
to be at the parades when they go over but to be there to help them
when they come back. If this administration wants to support the
troops, it should have given them the equipment, the training, and the
armor they still don't get in a war that has lasted longer than World
War II. And they should take care of the wounded whose bodies, minds
and lives have been shattered.
None of us should have confidence in a failed war effort that has
already wrought enormous toll in American blood, treasure, and
credibility, not after the fiasco this White House has wrought. It is
time for the Congress to act as the voice and the conscience of the
American people.
Mr. President, I reserve the remainder of my time.
The PRESIDING OFFICER. The senior Senator from Pennsylvania.
Mr. SPECTER. Mr. President, I have sought recognition to urge my
colleagues to support the nomination of Judge George H. Wu to be U.S.
district judge for the Central District of California. Judge Wu
currently serves as a judge on the Los Angeles Superior Court, where he
has presided since 1996, and before that was a judge on the Los Angeles
municipal court from 1993 to 1996.
He came to those judicial positions with an excellent academic
background--a bachelor's degree from Pamona College in 1972 and a law
degree from the University of Chicago in 1975. He has an outstanding
record in the practice of law. He was assistant professor of law at the
University of Tennessee College of Law from 1979 to 1982. He was an
Assistant U.S. Attorney in the civil division of the Central District
of California office in Los Angeles from 1982 to 1989. He later served
as Assistant Division Chief in the U.S. Attorney's Office from 1991 to
1993. Judge Wu is very well qualified, rated so by the American Bar
Association. They unanimously rated Judge Wu as ``well qualified.''
His nomination to the Federal bench is recognition of the
contributions of lawyers from the Southern California Chinese Lawyers
Association, where he was a member from 1984 until the present time.
I recently spoke at the convention of lawyers from the Asian-Pacific
American Bar Association, who made the point to me that there ought to
be more representation, more diversity for judges with a background
from Asia and specifically from China. There are not very many judges
representing that particular group. I think it is a good idea to have
diversity on the Federal bench among people from all walks of life, all
backgrounds, all national origins, all ethnic representations, and
applaud his nomination from that point of view, in addition to the
excellent credentials which I have cited.
I ask unanimous consent that the full text of his resume and
background on two pages be printed in the Congressional Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:

George H. Wu

United States District Judge for the Central District of California

Birth: November 3, 1950, New York, NY.
Legal Residence: California.
Education: B.A., Pomona College, 1972; J.D., University of
Chicago Law School, 1975.
Employment: Associate, Latham & Watkins, Los Angeles, CA,
1975-1976, 1977-1978; Law Clerk, Hon. Stanley N. Barnes, U.S.
Court of Appeals for the Ninth Circuit, 1976-1977 (and again
for brief periods in 1979 and 1980); Associate, Latham &
Watkins, Los Angeles, CA, 1977-1978; Assistant Professor of
Law, University of Tennessee College of Law, 1979-1982;
Assistant U.S. Attorney, U.S. Attorney's Office, Civil
Division, Central District of California, 1982-1989;
Associate, LaBoeuf, Lamb, Leiby & MacRae, Los Angeles, CA,
1989-1991; Assistant Division Chief, U.S. Attorney's Office,
Civil Division, Central District of California, 1991-1993;
Judge, Los Angeles Municipal Court, 1993-1996; Judge, Los
Angeles Superior Court, 1996-Present.
Selected Activities: Member, Committee on Standard Jury
Instructions (Criminal and Civil) of the Superior Court of
Los Angeles County, California, 2000-2004; Member, Southern
California Chinese Lawyers Association, 1984-Present; Member,
Federal Bar Association, 1983-1986 (Member, Judicial
Evaluation Committee, 1984-1985); Member, Los Angeles County
Bar Association, 1983-1992 (Member, Committee on Federal
Courts and Practice, 1984, 1985); Member, Barristers--Los
Angeles County Bar Association, 1983-1986 (Co-Chairman,
Government Attorneys Committee, 1985-1986).
Judge George Wu was nominated in the last Congress, but his
nomination was not acted upon prior to its adjournment.
President Bush re-nominated Judge Wu on January 9, 2007. A
hearing was held on his nomination on February 6 and the
Judiciary Committee favorably reported him on March 1.
Judge Wu is a highly qualified nominee with a distinguished
record.
In 1972, he earned his B.A. degree from Pomona College. In
1975, he earned his J.D. from the University of Chicago Law
School.
After law school, Judge Wu became an associate at the firm
of Latham & Watkins in Los Angeles from 1975 to 1976.
Judge Wu subsequently served as a judicial clerk for the
Honorable Stanley N. Barnes on the U.S. Court of Appeals for
the Ninth Circuit.
From 1979 to 1982 Judge Wu was an Assistant Professor of
Law at the University of Tennessee College of Law in
Knoxville, Tennessee, where his courses included civil
procedure, torts, and labor law.
Judge Wu served as an Assistant U.S. Attorney in the Civil
Division of the Central District of California office in Los
Angeles from 1982 to 1989 and later served as Assistant
Division Chief from 1991 to 1993.
From 1989 to 1991, Judge Wu returned to private practice,
this time as an associate at LeBoeuf, Lamb, Leiby & MacRae in
Los Angeles.
In 1993, Governor Pete Wilson appointed Judge Wu to the Los
Angeles Municipal Court, which handles misdemeanor cases,
preliminary felony hearings, and small civil actions. In
1996, Governor Wilson elevated Judge Wu to the Los Angeles
Superior Court, which handles felony cases and larger civil
suits.
The American Bar Association unanimously rated Judge Wu
``Well Qualified.''

Attorney General Gonzales

Mr. SPECTER. I note we are scheduled to vote on Judge Wu at 12:10. As
ranking member, I have the balance of the time until that period. I
choose to use it to comment briefly on a letter which I received
yesterday from John M. Dowd, who is an attorney for Ms. Monica
Goodling, who was counsel to Attorney General Gonzales and White House
liaison. In this letter, Mr. Dowd asserts the basis for having Ms.
Goodling claim her constitutional rights under the fifth amendment, and
privilege against self-incrimination, not to testify before the
Judiciary Committee on our inquiry into the eight U.S. attorneys who
were asked to resign. Mr. Dowd makes the point emphatically that in
asserting this privilege against self-incrimination, Ms. Goodling is
not saying she has done anything wrong and explicitly denies any
wrongdoing but cites Supreme Court authority for the right of an
individual to claim the privilege against self-incrimination, even
those who are innocent, as well as those who might have something to
hide. There is a firm assertion of her innocence by her attorney and
her own affidavit.
I can understand the reasons for this claim of privilege and the
reasons Ms. Goodling does not want to testify before the Judiciary
Committee. In Mr. Dowd's letter, he references some of my prior
statements and then says:

Senator Schumer has no less than five times characterized
the Department's testimony to date as ``false'' or ``a
falsehood,'' and concluded that there have been misleading
statement after misleading statement, deliberate
misstatements.

If a false statement has been made to a congressional committee, that
constitutes a crime under title 18 of the United States Code, section
1001. That was the basis on which the No. 2 man in the Interior
Department entered a guilty plea during the course of the past week.
Where there have already been characterizations, as cited by Mr. Dowd
of Senator Schumer's statement that there are misleading statements
which have been made, which I state is a crime, I can understand the
sense of a potential witness in not wanting to be ensnared in that kind
of proceeding where conclusions have already been reached by Senator
Schumer who is in charge of the investigation.

[[Page 7718]]

Mr. Dowd's letter further goes on, citing comments which I had made
earlier, ``that Senator Schumer is using the hearings''--this is Mr.
Dowd's statement--``hearings to promote his political party. That is
not a legitimate reason for the Judiciary Committee to conduct
hearings.''
I have said in the Judiciary Committee hearings, in the presence of
Senator Schumer, eyeball to eyeball, so to speak, that I thought there
was a conflict of interest. In concluding there was a conflict of
interest, I did not ask Senator Schumer to step aside. I said that was
up to him.
But following the testimony of U.S. Attorney Iglesias, from New
Mexico, the very next day the Web site of the Democratic Senatorial
Campaign had Senator Domenici's picture on it, urging his defeat in the
2008 election. Then, shortly thereafter, there was a fundraising letter
from the Democratic Senatorial Campaign Committee to raise money,
saying the Democrats were elected to clean up Washington and this is an
example of what needs to be cleaned up.
Any of us may be subject to comment in a political situation. Senator
Schumer has a right to make political hay out of whatever he chooses.
But I think it is inconsistent with leading an inquiry, and I can
understand Ms. Goodling's decision not to testify in this context. I
think it is very unfortunate, because it is very important for the
Judiciary Committee to get to the bottom of what has happened with the
request for eight U.S. attorneys to resign. There is a cloud over U.S.
attorneys, and I think it has had a distinctly chilling effect on all
93 U.S. attorneys, not knowing what will come next.
It is generally agreed that the President of the United States has
the authority, standing, right to discharge U.S. attorneys for no
reason at all. When President Clinton took office, in one fell swoop he
replaced 93 U.S. attorneys and no one raised any question. But I think
not if U.S. attorneys have been asked to resign and have been replaced
for an improper reason, for a bad reason. Suggestion has been made that
the U.S. attorney in San Diego, Ms. Lam, was replaced because she was
hot on the trail of political operatives who may have been connected to
former Congressman Duke Cunningham, who is now serving an 8-year
sentence; or the allegation has been made--it has not been
substantiated but it has been made--that New Mexican U.S. Attorney
Iglesias was replaced for failure to prosecute a vote fraud case. An
extended article in the New York Times a week ago Sunday gave extensive
analysis, which might lead to the conclusion that there was
justification for Mr. Iglesias's resignation, or perhaps there was not.
But that is up to the Judiciary Committee to make a determination.
So it is unfortunate that you have a situation where witnesses are
not coming forward. It is my hope we would not rush to judgment on this
matter, that we would avoid conclusory statements, and that instead we
would wait until we find out what the facts are. If these U.S.
attorneys were asked to resign for improper reasons, I will be among
the first to say so.
I yield the floor.
The PRESIDING OFFICER. The Senator from Vermont.
Mr. LEAHY. Mr. President, it is true Ms. Goodling's attorney has said
that she will take the fifth amendment. Now, as both a former defense
attorney and a former prosecutor, I respect the right under our
Constitution for anybody to take the fifth so they won't say something
that might incriminate them and bring about criminal charges against
them from their own statements. But it is a little bit odd that in a
letter from Ms. Goodling's attorney, he speaks that she does not want
to face the fate of Mr. Libby, or words to that effect. Scooter Libby
was convicted of perjury. He was convicted of obstruction of justice.
While I realize many believe he is going to be pardoned, those are the
reasons he was convicted.
I would have assumed that Ms. Goodling--who has been a very high-
ranking member of the Department of Justice, would come in and tell the
truth. If she takes the fifth amendment, that's a more difficult thing.
We won't hear from her. If she feels that what she has to tell us would
subject her to criminal prosecution, well, that raises some serious
questions. We hope that others will testify and that they will testify
honestly. We'll continue to ask people. But it is very, very difficult
to get the facts when you have key members of the Bush-Cheney
administration taking the fifth.
Mr. President, have the yeas and nays been ordered on this?
The PRESIDING OFFICER. They have not.
Mr. LEAHY. If I have any further time, I yield it back and I request
the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There is a sufficient second.
The question is, Will the Senate advise and consent to the nomination
of George H. Wu, of California, to be a U.S. District Judge for the
Central District of California. The clerk will call the roll.
The legislative clerk called the roll.
Mr. DURBIN. I announce that the Senator from Delaware (Mr. Biden) and
the Senator from South Dakota (Mr. Johnson) are necessarily absent.
Mr. LOTT. The following Senators are necessarily absent: the Senator
from Kansas (Mr. Brownback), the Senator from Wyoming (Mr. Enzi), and
the Senator from Arizona (Mr. McCain).
The PRESIDING OFFICER. Are there any other Senators in the Chamber
desiring to vote?
The result was announced--yeas 95, nays 0, as follows:

[Rollcall Vote No. 115 Ex.]

YEAS--95

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

NOT VOTING--5

Biden
Brownback
Enzi
Johnson
McCain
The nomination was confirmed.
The PRESIDING OFFICER. Under the previous order, the motion to
reconsider is considered made and laid upon the table. The President
will be immediately notified of the Senate's action.

____________________

LEGISLATIVE SESSION

The PRESIDING OFFICER. Under the previous order, the Senate will
resume legislative session.
The majority leader.

____________________

UNANIMOUS-CONSENT AGREEMENT--H.R. 1591

Mr. REID. Mr. President, I ask unanimous consent that the vote with
respect to the Cochran amendment No. 643 occur at 5 p.m. today; the
time from 3:45 to 5 p.m. be for debate with respect to that amendment,
with the time equally divided and controlled between the two leaders or
their designees; that no amendments be in order to the amendment or the
language proposed to be stricken; that the last 10 minutes prior to the
vote be equally divided and controlled between the two leaders, with
the majority leader controlling the last 5 minutes.
The PRESIDING OFFICER. Without objection, it is so ordered.

____________________

TONY SNOW

Mr. REID. Mr. President, on a matter of concern and seriousness, in
my office

[[Page 7719]]

this morning I had a newspaper clipping regarding Tony Snow. He had a
tumor removed and the cancer had not returned, and I wrote a letter and
signed it. A few minutes later, my secretary brought in a news clipping
that Tony Snow's cancer has returned. I have known Tony Snow long
before he became the spokesperson for the White House. My relations
with him have always been superb. To me he has always been very fair. I
have great respect for him and his family.
I want the record to reflect that I speak for everyone on this side
of the aisle of our real concern. He has been a tremendously good
representative for the President. He does an outstanding job dealing
with some of the most serious issues any person could face. He has done
a wonderful job. I hope and pray that Tony Snow will again be able to
whip the cancer he has already whipped once. With the good thoughts and
prayers from everyone in this body and the many friends he has in
Washington and around the world, it will go a long way toward healing
this man who certainly deserves it.
The PRESIDING OFFICER. The Republican leader.
Mr. McCONNELL. Mr. President, let me join the majority leader in
expressing our best wishes, hopes, and prayers for Tony Snow's speedy
recovery. He has been a spectacular press secretary to the President.
He enjoys widespread respect and admiration. We wish him well for a
speedy recovery.

____________________

RECESS

The PRESIDING OFFICER. Under the previous order, the Senate stands in
recess until 2:15 p.m.
Thereupon, at 12:41 p.m., the Senate recessed until 2:15 p.m. and
reassembled when called to order by the Presiding Officer (Mr. Carper).

____________________

U.S. TROOP READINESS, VETERANS' HEALTH, AND IRAQ ACCOUNTABILITY ACT,
2007--Continued

The PRESIDING OFFICER. The Senator from Indiana.
Mr. LUGAR. Mr. President, I send to the desk an updated version of an
amendment I filed earlier today to H.R. 1591.
The PRESIDING OFFICER. Is there objection?
The Senator from Massachusetts.
Mr. KENNEDY. Mr. President, I want to cooperate with my friend and
colleague. If the Senator would give us a few moments to go over that
for the leadership to work that out. I do not do it as a matter of
personal privilege but as speaking for our leader on this side. So if
the Senator would withhold for a half an hour or so.
I would have to object to it. I do not personally object to it. I
object for the leadership until it has an opportunity to examine the
amendment.
The PRESIDING OFFICER. Objection is heard.
The Senator from Indiana.
Mr. LUGAR. Mr. President, may I raise a question. Will the
distinguished Senator be able to respond that I have submitted the
amendment, in other words, that I would not have to reappear to
resubmit the amendment at that time or is the Senator in a position to
give us that assurance?
Mr. President, I have already submitted the amendment, and I am
submitting an updated version of the amendment.
Mr. KENNEDY. Mr. President, is the Senator trying to perfect his own
amendment?
Mr. LUGAR. Yes, and I am attempting to file the amendment. It was
requested I appear in person to do so.
Mr. KENNEDY. Mr. President, if the Senator is requesting to alter his
amendment, I have no objection to him doing so.
Mr. LUGAR. I thank the Senator.
The PRESIDING OFFICER. Is there objection?
Without objection, it is so ordered.
The Senator from Massachusetts.

Amendment No. 680

(Purpose: To provide for an increase in the Federal minimum wage, and
for other purposes)

Mr. KENNEDY. Mr. President, amendment No. 680 is at the desk, and I
ask for its immediate consideration.
The PRESIDING OFFICER. Is there objection?
Without objection, the pending amendment is set aside and the clerk
will report the amendment.
The legislative clerk read as follows:

The Senator from Massachusetts [Mr. Kennedy], for himself,
Mr. Enzi, Mr. Baucus, and Mr. Grassley, proposes an amendment
numbered 680.

(The amendment is printed in today's Record under ``Text of
Amendments.'')
Mr. KENNEDY. Mr. President, for the benefit of the Members, as they
remember, we passed the substance of this legislation, I believe, 97 to
3. That is what is effectively the substance of this legislation. The
House of Representatives has passed its own minimum wage. Because of
the parliamentary complexities, we were unable to get this issue
resolved. The House has included a minimum wage provision in their
proposal.
We offer this proposal, which is an expression of the Senate. It has
broad bipartisan support--Republican and Democrat. This will mean both
pieces of legislation--the supplemental--will have the minimum wage,
and then the conferees will be able to make their judgment. But out of
it will come an increase in the minimum wage. So it is in that spirit.
I am delighted to debate the minimum wage, but I think we had a good
debate. We had, I think, close to 7 days' debate on it in the last few
weeks, so I do not think that is necessary.
That is the current situation. That is the reason that legislation is
pending at this time. I very much appreciate the cooperation of the
floor managers in letting us get this at least up before the Senate at
this time.
The PRESIDING OFFICER. The Senator from Oregon.
Mr. WYDEN. Mr. President, I ask unanimous consent to set aside the
pending amendment--is the distinguished Senator from North Carolina
intending to manage this legislation?
Mr. BURR. Mr. President, the Senator from North Carolina is not
intending to manage this side. Our manager is not here right now. I
would ask the Senator from Oregon if he would withhold setting the
current amendment aside. If he wishes to talk on an amendment, feel
free to, but at this time I would have to object to setting aside the
pending amendment.
Mr. WYDEN. Mr. President, I would be happy to do that.

Amendment No. 709

Mr. President, I ask unanimous consent to speak on the bipartisan
amendment I will be offering as soon as we have a manager on the other
side to conduct business.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator is recognized.
Mr. WYDEN. Mr. President, in a few minutes I will offer a bipartisan
amendment to address the great needs of rural communities across this
country. It is an amendment I will offer on behalf of myself, the
distinguished Senate majority leader, the chairman of the Senate
Finance Committee, the chairman of the Senate Energy Committee; my
colleague from Oregon, Senator Smith; Senator Craig of Idaho, Senator
Domenici, and a large additional group of Senators of both political
parties who wish to see reauthorized the Secure Rural Schools and
Community Self-Determination Act which is also known as the County
Payments Program.
Mr. President and colleagues, without this amendment, there is a very
real prospect small counties in the rural West are going to fall into
the Pacific Ocean. These small counties are now standing on the abyss
because without county payments funding, they simply are not going to
be able to pay for critical services such as law enforcement and rural
education.
In Oregon, the sheriff of Grants Pass told me without county payments
funding, he may have to call out the National Guard to protect public
safety. The county commissioners of Curry County report that without
county payments funding, they may have no

[[Page 7720]]

choice but to dissolve their county altogether. Local officials in Coos
County, just at the prospect of losing county payments funds, have
already released prisoners from their jails. Local communities in many
other States face similar hardships.
Some Senators may not yet be fully aware of what the county payments
law is about, so I am going to give a brief explanation of how the
program has come to be.
County payments are not welfare, but they are a more than 100-year-
old Federal obligation that goes back to the creation of the Federal
forest system. The deal was if Federal policy prevented local
communities from maximizing their revenues from their forests, the
Federal Government would provide a partial payment to these local
communities so they could pay for essential services such as law
enforcement and schools.
As environmental values changed in the 1990s, and these payments grew
even smaller, Senator Craig of Idaho and I wrote the Secure Rural
Schools and Community Self-Determination Act. That law compensated
these rural communities for part of what they needed to pay for
essential services. The act has worked extraordinarily well and expired
at the end of last year.
In this amendment, our large bipartisan coalition--and I read only a
number of the Senators from both political parties who are sponsoring
this amendment--our large group seeks to put in place a new updated
lifeline to small rural counties. County payments would be extended for
5 years and a new formula put in place to provide greater funding to
more than 80 percent of the counties in our country. The formula is
based on the current funding formula for county payments and the
acreage of U.S. Forest Service and eligible Bureau of Land Management
lands, along with a mechanism to focus support on those communities
where there is greatest economic need.
In addition to the County Payments Program, this amendment also
assists States with a similar program, the Payment in Lieu of Taxes
Program. This is a program which compensates States for the loss of tax
revenue from Federal lands in their State. For the first time in modern
history, this program will receive full funding, and it will result in
additional support for each county with Federal land.
I note at this time, particularly, the exceptional work done by the
chairman of the Senate Finance Committee, Senator Baucus, who, with
Senator Bingaman and so many of our colleagues of both political
parties, has been involved in these efforts. As a result of those
combined efforts, this amendment is paid for with all funding beyond
2007 paid for by closing tax loopholes that have been identified by
Senator Baucus, the chairman of the Senate Finance Committee.
This bipartisan amendment is supported by a diverse coalition,
including the National Association of Counties, many labor
organizations, and education advocates across the country. I urge the
Senate this afternoon to recognize the exceptional urgency of this
situation and to support the bipartisan effort to reauthorize the
County Payments Program and to strengthen the Payment in Lieu of Taxes
Program.
Rural communities across this country have been hit with a wrecking
ball. With the change in environmental values, we have seen many of
them, as they look to diversify their economies, reach out and find new
industries, yet they have still had great difficulty in paying for
essential services.
As they try to meet these challenges--and I am committed, as chairman
of the Forestry Subcommittee, to work on finding new economic
opportunities for these rural communities--the country should not turn
its back on rural America as it looks to come up with vibrant, new
economic prospects for the future.
These laws--the Secure Rural Schools and Community Self-Determination
Act and the law that puts in place the Payment in Lieu of Taxes
Program--provide essential funding and will be a lifeline as these
communities work to transition into additional areas that make sense
for resource-based economies.
Today, these small communities are asking the Senate to help them
from falling into the abyss. The blow to rural communities, if they
lose county payments, will be a crippling blow that, in my view, some
rural counties simply will not be able to recover from.
Mr. President and colleagues, let us remember rural America as we
consider this legislation. I hope Senators of both political parties
will join the very large block of Democratic and Republican Senators
who offer this amendment today.
Mr. President, we are waiting for a manager on the other side. A
number of colleagues, particularly the Senator from Illinois, has been
very gracious and very patient. I think what I wish to do is yield at
this time. When a manager comes, we will resume deliberations.
I thank the Senator from Illinois for his patience.
The PRESIDING OFFICER. The Senator yields the floor.
Who seeks recognition?
The Senator from Illinois.
Mr. OBAMA. Mr. President, it is my understanding that at this point
we cannot set aside the pending amendment because we are waiting for a
floor manager.
The PRESIDING OFFICER. The Chair will advise the Senator from
Illinois, unanimous consent needs to be sought and granted in order to
proceed while the Cochran amendment is pending.
Mr. OBAMA. Mr. President, why don't I wait to find out whether it is
possible for the Senator from Oregon to potentially call up his
amendment. If not, then what I would like to do is speak on my
amendment and find out when I can call up my amendment.
Mr. WYDEN. Mr. President, the Senator from Illinois has indicated he
would speak very briefly. I ask unanimous consent that the Senator from
Illinois could speak for his 5 minutes, and with the floor manager
coming on to the floor, that we could then turn to the county payments
legislation after the Senator from Illinois has spoken for 5 minutes.
The PRESIDING OFFICER. Is there objection? Without objection, it is
so ordered. The Senator from Illinois is recognized for 5 minutes.
Mr. OBAMA. Mr. President, I ask unanimous consent that after I speak,
if the Senator from Oregon is able to call up his amendment, I be able
to call up my amendment as well thereafter.
The PRESIDING OFFICER. Is there objection? Without objection, it is
so ordered.

Amendment No. 664

Mr. OBAMA. Mr. President, toward the end of World War II, Norman
Rockwell created a cover for the Saturday Evening Post titled
``Homecoming GI.'' It is a picture of a soldier returning from war. He
has a duffle bag clutched in his left hand. He is looking up at the
back of a brick building with laundry hanging from the back porch. A
woman in an apron sees him with outstretched arms, and a young child
races down the stairs. Everyone sees that soldier--the neighbors' kids,
the man fixing the roof, faces from another window--and everyone
welcomes that soldier who has come home from war.
That is what our Nation did for the millions of servicemembers who
returned from the Atlantic and the Pacific. We watched them come home
in waves. Some were just as strong as their first day in battle; others
limped. We saw them crowd Times Square. We saw them walk down Main
Street and sit on stoops. My grandfather, who fought in Patton's army,
would often speak about this time as America at its finest. That
homecoming didn't just happen; we were ready for it.
Long before the beaches of Normandy were stormed and the last battle
was fought, in 1943 President Roosevelt said:

Among many other things, we are, today, laying plans for
the return to civilian life of our gallant men and women in
the armed services. They must not be demobilized into an
environment of inflation and unemployment, to a place on a
bread line, or on a corner selling apples. We must, this
time, have plans ready instead of waiting to do a hasty,
inefficient, and ill-considered job at the last moment.

These are the words of wisdom that we ignore at our peril.
Today we have more than 631,000 veterans from Iraq and Afghanistan
and

[[Page 7721]]

other parts of the global war on terror. According to a recent VA
health care report, one-third--more than 205,000--have sought treatment
at VA health facilities.
Even if the war in Iraq comes to an end soon--and I hope the Senate
takes action this week to accomplish that goal--the war will live on
with our servicemembers and their families for the rest of our lives.
Unfortunately, over the past month, we have all seen the disturbing
pictures of neglect at Walter Reed. We have read about bats and
bureaucratic redtape at the VA. We have seen too many stories about our
veterans who have been forgotten--not greeted by the Nation that asked
them to serve. The time has come for us to see this generation of
veterans in all their valor and pain. We should provide them with a
plan that is worthy of their courage and will help build back the
military they love.
That is what Senator McCaskill and I are trying to do with the
amendment we offer today.
First, we provide an additional $41 million to hire more caseworkers
to assist servicemembers navigating the military's bureaucracy. The
last thing a wounded servicemember should have to face when they return
home is a front line of paperwork and delay. Right now, the caseworker-
to-service-member ratio at Walter Reed is 1 to 50. Caseworkers help
recovering soldiers schedule appointments, take care of their everyday
needs, and fill out paperwork. Military caseworkers are overwhelmed. I
understand the Army is reducing the caseworker-to-service-member ratio
to 1 to 17, and I applaud this move. Our amendment would help the
military achieve this goal at all military hospitals.
Our amendment also provides $30 million for the Armed Forces to
create an Internet-based system for servicemembers to submit their
paperwork electronically. No longer will amputees and servicemembers in
wheelchairs have to go to countless offices to fill out duplicative
forms only to learn that the forms have been lost in Government
bureaucracy.
We also need to do more to increase the number of mental health
crisis counselors available to assist recovering servicemembers and
their families. Too many servicemembers are returning home with unmet
mental health needs--stresses that are often experienced by their
family members. That is why our amendment provides $17 million for more
mental health crisis counselors.
While we all praise how our country treated the servicemembers
returning from World War II, we must remember the lessons after
Vietnam. The landmark National Vietnam Veterans Readjustment Study was
congressionally mandated in 1983, 15 years after the height of that
war. The completed report showed the vast majority of Vietnam veterans
had successfully acclimated to postwar life.
We can't wait 15 years to plan and prepare for the readjustment needs
of the servicemembers returning from Iraq and Afghanistan. The average
age of a servicemember deployed since September 11 is 27. The average
age of our Guard and Reserves is 33. Sixty percent of those deployed
have family responsibilities, and 47 percent of those who have died
have left families. Mr. President, 160,000 women have been deployed,
and 10 percent of those women are single mothers. These men and women
are going to face real challenges in readjusting to normal life.
Our amendment would provide for a study by the National Academy of
Sciences of the mental health and readjustment needs of returning
servicemembers. This study will assist the Department of Defense, the
Veterans' Administration, and Congress in planning for the long-term
needs of our veterans.
Last week I met a woman at Walter Reed. She is one of the 160,000
women who have been deployed, and she suffers from post-traumatic
stress disorder. Most of us associate PTSD with men in combat, but many
of the women in theater face firsthand dangers in their combat support
roles. Driving a truck in Baghdad is one of the most dangerous missions
around, and it is considered a support role. Women are witnessing the
horrors of improvised explosive devices and the horrors of losing
fellow servicemembers, and too many are experiencing the trauma of
sexual harassment or abuse.
This young woman was very scared, and she trembled as we spoke. I
asked her what we could do to help. She said that she could not handle
group therapy sessions; she could only tolerate one-on-one sessions
with counselors. Her experience is shared by many women. Treatment for
women with PTSD, especially sexual abuse victims, is very different
from treatment for men.
That is why as part of our amendment we want to provide $15 million
to address the unique mental health needs of women. This funding will
ensure the development and implementation of a women's treatment
program for mental health conditions, including PTSD. It will also
include the hiring and training of sexual abuse counselors so that the
servicemembers who suffer from this trauma do not have to suffer in
silence. We can do this for the woman I met at Walter Reed and the
thousands who suffer like her.
The total cost of our amendment is $103 million--less than one-tenth
of 1 percent of the total cost of this bill. This is the least we can
do for our servicemembers recovering at Walter Reed and other military
hospitals.
I am proud that Veterans For America has endorsed our amendment, and
I ask unanimous consent that their letter of endorsement be printed in
the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:

Veterans For America,

March 27, 2007.
Dear Senator Obama: Veterans for America commends you for
fighting to ensure that the service-related needs are met of
the one and a half million men and women who have been
deployed in our wars in Iraq and Afghanistan. We commend you
for fighting to enact an amendment--based primarily on the
provisions of the Dignity for Wounded Warriors Act (S. 713)--
to the current emergency supplemental appropriations bill (S.
965).
This is the most important piece of legislation offered
since the start of our wars in Iraq and Afghanistan.
Today's military is drastically different from any other we
have ever sent to war. Too many of our troops are returning
to a system that completely ignores their most urgent
service-related health and readjustment needs.
One fact is quite striking: of the tens of billions of
dollars spent to meet the needs of America's veterans, less
than one percent is spent on this generation.
We waited almost 15 years after the end of the Vietnam War
to examine the specific needs of my generation through the
National Vietnam Veterans Readjustment Study. We fought hard
for this study, and while we waited for its completion, tens
of thousands of lives were shattered.
We cannot wait that long this time. The study included in
your amendment will prevent us from failing thousands upon
thousands of our service members and veterans. We must stop
throwing money at a broken system that does not address the
most urgent unmet needs of today's service members and
veterans.
I also want to commend your efforts to recognize the
challenges faced by women service members and veterans. The
needs of women troops are being effectively ignored. This is
a national disgrace.
Again, you have my sincere thanks and the thanks of
millions of others who have proudly served our country.
Sincerely,

Bobby Muller,

President.

Mr. OBAMA. I hope my colleagues will join me in supporting this
amendment. At this point I turn the floor back to the Senator from
Oregon, Mr. Wyden, and I ask, if the floor managers are prepared, that
I be able to call up this amendment after the Senator from Oregon does
so with his amendment.
The PRESIDING OFFICER. Is there objection?
Mrs. McCASKILL. Mr. President, I ask unanimous consent to speak to
the Obama amendment and then go back to regular order.
The PRESIDING OFFICER. Is there objection?
Mr. OBAMA. Mr. President, I apologize. I should have allowed----
Mrs. MURRAY. Mr. President, if I could just clarify for all of us,
could

[[Page 7722]]

you tell us what the current unanimous consent agreement has in it?
The PRESIDING OFFICER. The pending amendment before the Senate is the
Cochran amendment. The Senator from Illinois had asked unanimous
consent to address the Senate for 5 minutes, and then when he
completed, to yield back to Senator Wyden to continue to discuss his
amendment. There was no objection. Further, after the Wyden amendment
was brought up, the next amendment to be offered would be that of the
Senator from Illinois, Mr. Obama. There was no objection.
Mrs. MURRAY. Thank you, Mr. President.
The PRESIDING OFFICER. Without objection, the Senator from Missouri
is recognized.

Amendment No. 664

Mrs. McCASKILL. Mr. President, I rise to speak in favor of the
amendment that will be offered by Senator Obama. Our amendment takes
part of the legislation we have introduced, the Dignity for the Wounded
Warriors Act, and moves it to the front of the line.
The question which has to be asked is, Why? Why is it important that
this go into this bill at this time? There is a lot of talk about what
should and shouldn't go into the supplemental. I think it is important
we realize if we don't act immediately to begin to take the kind of
care of our wounded they need to have, that they should have, that we
are morally bound to give them, then we shouldn't be passing any more
supplemental funding for any more activities in this war.
It is of primary importance to us that we take care of the men and
women who have been wounded, who have given more than most Americans
will ever give as it relates to this conflict in the Middle East.
I have to say, if you step back and look at this problem, it is not
just the active military hospitals that this amendment deals with, but
it is the entire system of medical care for our wounded and for our
veterans.
I was struck last week when a report came out on all the veterans
facilities around the country. This was an internal report done by the
Veterans' Administration but contained in that report was a startling
revelation. In that report they found there was a bat infestation in a
veterans hospital in the State of the Senator from Oregon.
Now, one would think that if you found a bat infestation in a
hospital alarms would go off, lights would signal, and the head of that
hospital would step up and say: I failed. Oh, no. The head of that
hospital said the bats had been helpful to the insect population.
Understand that with this particular species of bat, there is more
bacteria contained in an ounce of the droppings from this animal than
any other species of bat. Microbiologists yearn to study these
droppings because of all of the bacteria that is contained in them.
Something is terribly wrong when we have a veterans hospital in this
country that is putting up with an infestation of bats, and if we don't
have it in us to fix this medical facility and all others like it in
this country, then shame on us. Shame on our Nation that we can't do
what we must do to take care of those who have taken care of us.
All the rhetoric about ``support the troops''--forget about it if we
can't do basic medical care for those who are coming home who are
wounded. We specifically deal with that in our amendment, with the
additional funds in this supplemental that we have added to the
President's budget to care for our veterans and veterans facilities.
There is no job we have here that is more important. I hope my
colleagues will support this amendment and the addition of about $1.7
billion in funding to the supplemental for veterans care. They are both
important. They are both moral imperatives. It is time we make that
phrase--``support our troops''--more than a political phrase.
Mr. President, I yield to the Senator from Oregon, or to go back to
regular order.
The PRESIDING OFFICER. The Senator from Oregon is recognized.
Mr. WYDEN. Mr. President, I ask unanimous consent to set aside the
pending amendment, and I call up my bipartisan amendment on county
payments and the payment in lieu of taxes.
Mr. COCHRAN. Mr. President, reserving the right to object, I do not
intend to object but for the purpose of asking if there would be any
objection to my offering an amendment on behalf of the Senator from
Indiana, Mr. Lugar, and then yielding to the Senator. We wouldn't have
any debate, but we would just offer this amendment so it would be
pending in the regular order.
Mr. WYDEN. I would be happy to proceed, but I recognize the manager
on our side.
Mrs. MURRAY. Mr. President, if I could just clarify, is it amendment
No. 690?
Mr. COCHRAN. It is amendment No. 690.
Mrs. MURRAY. Then we would not object.

Amendment No. 690

Mr. COCHRAN. Mr. President, I send to the desk an amendment on behalf
of the Senator from Indiana, Mr. Lugar.
The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:

The Senator from Mississippi [Mr. Cochran], for Mr. Lugar,
proposes an amendment numbered 690.

The amendment is as follows:

AMENDMENT NO. 690

(Purpose: To provide that, of the funds appropriated by this Act under
the headings ``diplomatic and consular programs'' and ``Economic
Support Fund'' (except for the Community Action Program), up to
$50,000,000 may be made available to support and maintain a civilian
reserve corps)

On page 56, after line 18, insert the following:

CIVILIAN RESERVE CORPS

Sec. 1713. Of the funds appropriated by this Act under the
headings ``diplomatic and consular programs'' and ``Economic
Support Fund'' (except for the Community Action Program), up
to $50,000,000 may be made available to support and maintain
a civilian reserve corps. Funds made available under this
section shall be subject to the regular notification
procedures of the Committees on Appropriations.

Mr. COCHRAN. I thank the Chair, and I thank the distinguished Senator
from Oregon.

Amendment No. 709

Mr. WYDEN. Mr. President, I ask unanimous consent to set aside the
pending amendment and to call up our bipartisan amendment on County
Payments and the Payments in Lieu of Taxes Program.
The PRESIDING OFFICER. Without objection, it is so ordered. The clerk
will report.
The assistant legislative clerk read as follows:

The Senator from Oregon [Mr. Wyden], for himself, Mr. Reid,
Mr. Baucus, Mr. Bingaman, Mr. Smith, Ms. Cantwell, Mr.
Domenici, Mrs. Boxer, Mr. Craig, Mrs. Murray, Mr. Crapo, Mr.
Tester, Mr. Stevens, Mr. Bennett, and Ms. Murkowski, proposes
an amendment numbered 709.

Mr. WYDEN. Mr. President, I ask unanimous consent that reading of the
amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:
(The amendment is printed in today's Record under ``Text of
Amendments.'')
Mr. WYDEN. Mr. President, a great many Senators of both political
parties have signed on as cosponsors of this legislation: the
distinguished Senate majority leader; the chairman of the Senate
Finance Committee, Chairman Baucus; chairman of the Energy Committee,
Senator Bingaman; Senators Smith, Domenici, Craig, Stevens, Bennett,
Cantwell, Boxer, Murray, Crapo, Tester, and Murkowski. A great many
Senators have agreed to be cosponsors.
My understanding is that, perhaps, in a few minutes the Senate is
going to be given a choice of two approaches on how to deal with this
issue: the approach that I and a large bipartisan group of Senators are
offering this afternoon or an approach that will be offered by the
distinguished Senator from North Carolina, our colleague, Senator Burr,
which, in my view, is very restrictive and, unfortunately, it is not in
line with what Senator Craig

[[Page 7723]]

and I sought to do on a bipartisan basis back in 2000.
Our law that was enacted at that time was called the Secure Rural
Schools and Community Self-Determination Act. Unfortunately, as I
understand it, the proposal offered by the distinguished Senator from
North Carolina would, for example, make it very difficult for local law
enforcement to get some of these essential dollars that have been
absolutely critical to public safety for all these years.
My view is that, under our bipartisan proposal, local law enforcement
would have at least a fair measure of the resources they need to fight
methamphetamine in local communities across the country. Our colleague
from North Carolina, in his approach, would not make that possible.
So I hope that, as colleagues consider this debate, they will vote in
favor of the amendment I offer this afternoon, on behalf of the large
group of Senators of both political parties who have been intimately
involved in this program for many years.
Our amendment is fully paid for through the good work of the chairman
of the Senate Finance Committee, and I hope our colleagues will vote
for our amendment and will reject the amendment of the Senator from
North Carolina, which is much more restrictive and, unfortunately,
forgets the second part of the legislation that is so vital to rural
communities and that is law enforcement and roads and other essential
services.
I had a chance to speak on this earlier, so I will be brief. Other
colleagues would like to speak as well. The reality in rural America
and the rural West is that communities are about to fall off a
financial cliff.
They are going to lose these essential funds that have been part of a
Federal obligation for more than a hundred years. It is not a welfare
program. It is not some kind of a handout that goes to rural
communities in the West. These are communities where the Federal
Government owns most of the land. The local community is not allowed to
maximize its revenues on those lands because the Federal Government has
essentially said we are not going to treat them as private property,
where you generate a sale and revenue and you pay for essential
services.
So the Federal Government entered into an agreement more than a
hundred years ago to provide compensation to those local communities
where the Federal Government owned most of the land. What our
bipartisan group wants to do is update and modernize that obligation
that was incurred more than a hundred years ago when the Federal forest
system was established.
Our amendment would resolve the budget crisis that is confronting
rural communities by fully funding the County Payments Program for
2007, and then we set in place a formula that was negotiated for many
months through a large group of Senators.
I have the chart indicating the new formula that has been put into
place. It makes it very clear that Senators understand this program,
because of the will of this body, ought to be modernized. That is what
we have done. But in addition to that effort, we have made sure the
Payment in Lieu of Taxes Program, which compensates States for the loss
of tax revenue from Federal lands in that State, would receive support
as well. And every county in our country with Federal land would
benefit from this particular program. The emergency funding is what
gets us over the first year of the program; it is a 5-year program.
Senator Baucus has been willing because he feels strongly about making
sure when the Federal Government steps in and goes to bat for rural
communities, that it will be fully paid for. On the Senate Finance
Committee, because of Chairman Baucus's leadership, we are going to
raise those funds by closing tax loopholes.
I know my friend from North Carolina is going so speak in a moment. I
wish to note, again, a number of colleagues on the other side of the
aisle who are supporting this: Senators Smith, Domenici, Craig, Crapo,
Stevens, Bennett, and Murkowski. They have all said that this amendment
is the way to go if you want to stand up for rural communities. But if
you want to make a break with 100 years' worth of history and not even
give rural communities the opportunity to get support, as they
historically have, for local law enforcement, then Senators can vote
for the amendment offered by our colleague from North Carolina, Senator
Burr. I hope my colleagues will not do that.
We are going to have two votes. One will be on the amendment I
offered with that large bipartisan group of Senators I listed. I hope
Senators will vote in favor of that amendment.
There will be another amendment offered by the Senator from North
Carolina. For the reasons I have described this afternoon, I hope
Senators will vote against that. Keep in mind that under the amendment
offered by the Senator from North Carolina, if you have people who are
concerned about local law enforcement they are not, under the amendment
of the Senator from North Carolina, going to be able to get support as
it relates to law enforcement--the needed support to fight meth and to
be able to protect public safety in their communities. That is why the
large coalition I have described this afternoon is in favor of what I
am proposing.
The Senator from North Carolina has come to the floor. I have
enormous respect for him. He is going to be the ranking member on the
subcommittee. We don't happen to see eye to eye on this issue. I point
out that the predecessor of the Senator from North Carolina, Senator
Craig, is a cosponsor of this amendment. He remembers the history from
back in 2000, when we came together. It is my intent to allow the
Senator from North Carolina time to offer his amendment as well, and
then at that time I would like to respond to what the distinguished
Senator from North Carolina said about his amendment.
The PRESIDING OFFICER. The Senator from Illinois is recognized.
Mr. OBAMA. Mr. President, is it possible for the Senator from Oregon
to yield to me briefly so I could call up an amendment? I will call it
up, would not discuss it and it can then be set aside and we can
immediately go to the Senator from North Carolina.
Mr. WYDEN. I have no objection.
The PRESIDING OFFICER. Without objection, it is so ordered.

Amendment No. 664

Mr. OBAMA. Mr. President, I ask unanimous consent that the pending
amendment be set aside so I may call up amendment No. 664.
The PRESIDING OFFICER. Without objection, it is so ordered.
The clerk will report.
The assistant legislative read as follows:

The Senator from Illinois [Mr. Obama], for himself, Mrs.
McCaskill, Ms. Mikulski, Mr. Harkin, Mr. Kerry, Ms. Cantwell,
Mr. Biden, Mr. Bingaman, Mr. Casey, Mr. Durbin, and Mr.
Baucus, proposes an amendment numbered 664.

Mr. OBAMA. Mr. President, I ask unanimous consent that reading of the
amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:

(Purpose: To appropriate an additional $58,000,000 for Defense Health
program for additional mental health and related personnel, an
additional $10,000,000 for operation and maintenance for each of the
military departments for improved physical disability evaluations of
members of the Armed Forces, and an additional $15,000,000 for Defense
Health Program for women's mental health services)

At the end of chapter 3 of title I, add the following:

SEC. 1316. ADDITIONAL AMOUNT FOR DEFENSE HEALTH PROGRAM FOR
ADDITIONAL MENTAL HEALTH AND RELATED PERSONNEL.

The amount appropriated or otherwise made available by this
chapter under the heading ``Defense Health Program'' is
hereby increased by $58,000,000, with the amount of the
increase to be available for additional caseworkers at
military medical treatment facilities and other military
facilities housing patients to participate in, enhance, and
assist the Physical Disability Evaluation System (PDES)
process, and for additional mental health and mental crisis
counselors at military medical treatment facilities and other
military facilities housing patients for services for members
of the Armed Forces and their families.

[[Page 7724]]

SEC. 1317. ADDITIONAL AMOUNTS FOR OPERATION AND MAINTENANCE
FOR THE MILITARY DEPARTMENTS FOR IMPROVED
PHYSICAL DISABILITY EVALUATIONS OF MEMBERS OF
THE ARMED FORCES.

(a) Additional Amount for Operation and Maintenance,
Army.--The amount appropriated or otherwise made available by
this chapter under the heading ``Operation and Maintenance,
Army'' is hereby increased by $10,000,000, with the amount of
the increase to be available in accordance with subsection
(d).
(b) Additional Amounts for Operation and Maintenance for
Department of the Navy.--The aggregate amount appropriated or
otherwise made available by this chapter under the headings
``Operation and Maintenance, Navy'' and ``Operation and
Maintenance, Marine Corps'' is hereby increased by
$10,000,000, with the amount of the increase to be available
in accordance with subsection (d).
(c) Additional Amount for Operation and Maintenance, Air
Force.--The amount appropriated or otherwise made available
by this _chapter under the heading ``Operation and
Maintenance, Air Force'' is hereby increased by $10,000,000,
with the amount of the increase to be available in accordance
with subsection (d).
(d) Internet Access to Physical Disability Evaluations of
Members of the Armed Forces.--
(1) In general.--Each Secretary of a military department
shall, utilizing amounts appropriated by the applicable
subsection of this section, develop and implement an Internet
website to permit members of the Armed Forces who are subject
to the Physical Disability Evaluation system of such military
department to participate in such system through the
Internet.
(2) Elements.--Each Internet website under paragraph (1)
shall include the following:
(A) The availability of any forms required for the
utilization of the physical disability evaluation system
concerned by members of the Armed Forces who are subject to
such system.
(B) Secure mechanisms for the submission of forms described
in subparagraph (A) by members of the Armed Forces described
in that subparagraph, and for the tracking by such members of
the acceptance and review of any forms so submitted.
(C) Secure mechanisms for advising members of the Armed
Forces described in subparagraph (A) of any additional
information, forms, or other items that are required for the
acceptance and review of any forms so submitted.
(D) The continuous availability of assistance for members
of the Armed Forces described in subparagraph (A), including
assistance through the caseworkers assigned to such members,
in submitting and tracking forms, including assistance in
obtaining information, forms, or other items described by
subparagraph (C).

SEC. 1318. ADDITIONAL AMOUNT FOR DEFENSE HEALTH PROGRAM FOR
WOMEN'S MENTAL HEALTH SERVICES.

The amount appropriated or otherwise made available by this
chapter under the heading ``Defense Health Program'' is
hereby increased by $15,000,000, with the amount of the
increase to be available for the development and
implementation of a women's mental health treatment program
for women members of the Armed Forces to help screen and
treat women members of the Armed Forces, including services
and treatment for women who have experienced post-traumatic
stress disorder and services and treatment for women who have
experienced sexual assault or abuse, which services shall
include the hiring and training of sexual abuse crisis
counselors for members of the Armed Forces who have
experienced sexual abuse or assault.

SEC. 1319. STUDY ON MENTAL HEALTH AND READJUSTMENT NEEDS OF
MEMBERS AND FORMER MEMBERS OF THE ARMED FORCES
WHO DEPLOYED IN OPERATION IRAQI FREEDOM AND
OPERATION ENDURING FREEDOM AND THEIR FAMILIES.

(a) In General.--Using amounts appropriated or otherwise
made available by this chapter under the heading ``Defense
Health Program'', the Secretary of Defense shall, in
consultation with the Secretary of Veterans Affairs, enter
into an agreement with the National Academy of Sciences for a
study on the mental health and readjustment needs of members
and former members of the Armed Forces who deployed in
Operation Iraqi Freedom or Operation Enduring Freedom and
their families as a result of such deployment.
(b) Phases.--The study required under subsection (a) shall
consist of two phases:
(1) A preliminary phase, to be completed not later than 180
days after the date of the enactment of this Act, to
determine the parameters of the final phase of the study
under paragraph (2).
(2) A second phase, to be completed not later than two
years after the date of the enactment of this Act, to carry
out a comprehensive assessment, in accordance with the
parameters identified under paragraph (1), of the mental
health and readjustment needs of members and former members
of the Armed Forces who deployed in Operation Iraqi Freedom
or Operation Enduring Freedom and their families as a result
of such deployment.
(c) Reports.--The Secretary of Defense shall submit to
Congress, and make available to the public, a comprehensive
report on each phase of the study required under subsection
(a) not later than 30 days after the date of the completion
of such phase of the study.

Mr. OBAMA. I ask unanimous consent that Senators Casey, Baucus, and
Durbin be added as cosponsors.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from North Carolina is recognized.
Mr. BURR. Madam President, I ask unanimous consent to set the pending
amendment aside.
The PRESIDING OFFICER (Mrs. McCaskill). Without objection, it is so
ordered.

Amendment No. 709

Mr. BURR. Madam President, I ask unanimous consent to resume
consideration of the Wyden amendment.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. BURR. Madam President, I have deep respect for my colleague,
Senator Wyden. We worked together in the House. We will work together
in the Senate. As he said, this is a small disagreement we have because
I believe when you have a bill that says this money is going to be used
for schools and communities, we should make a commitment that this
money in fact does go to our Nation's schools. Today, through my
amendment, we have an opportunity to make an obligation to education.
Seventy percent of our children in high school today graduate on
time. In North Carolina it is 68 percent. That is 32 percent of
students who don't graduate on time. We hear on the floor of this
institution state all the time that there's a need to make a commitment
to education. And I believe we need to make a commitment to it.
I believe we need to make a commitment on this bill. This program was
set to sunset this year. That means the Congress, in the past, set this
program to expire, to go away; that the Federal Government had met its
obligation. I don't disagree with the Senators from Oregon, Senator
Wyden and Senator Smith, who have both been instrumental on this. North
Carolina is a beneficiary. We have a tremendous amount of public land.
I think it should continue. But at a time that we are required to
prioritize where we make our investment, I believe we would help every
community by saying 80 percent of the new money--not the money we were
using up until this point but the almost $500 million of additional
money per year we are going to pump into this program, all new money,
that 80 percent of it ought to be used for our schools. It ought to be
used for public education and ought to be there to support school
construction, K through 12, No Child Left Behind. It ought to focus on
high school graduation.
We should take America's high school children from 70 percent
graduation and drive it to 100 percent graduation. I heard the argument
this was about economic development, about communities, about law
enforcement. If you solve education, you lessen the need for law
enforcement. The reason we need so many cops on the beat today, that we
need more schools, is because our children don't have the skills to
compete in the job market. So, yes, we can add policemen and make all
Federal dollars open for every community to decide how they use them,
but let me assure you, if we don't educate our children, no matter how
much money is pumped into those communities, they will have cancer in
them.
What am I doing? It is very simple. I am going to offer an amendment
that requires 80 to 85 percent of the new dollars to be devoted solely
to education. That way every community that is the beneficiary of this
money--Oregon, with millions of dollars, and North Carolina, with the
several million dollars it gets. It is not enough to solve the
education problem, but it shows a commitment on our part to make sure
we are willing to contribute the Federal dollars that are available to
begin to address this cancer our kids have succumbed to.

[[Page 7725]]

Amendment No. 716 to Amendment No. 709

At this time, Madam President, I send to the desk a second-degree
amendment to the Wyden amendment.
The PRESIDING OFFICER. The clerk will report the amendment.
The assistant legislative clerk read as follows:

The Senator from North Carolina [Mr. Burr] proposes
amendment numbered 716 to amendment No. 709.

Mr. BURR. Madam President, I ask unanimous consent that the reading
of the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:

(Purpose: To require that payments to eligible States and eligible
counties only be used for public schools)

Beginning on page 13, strike line 22 and all that follows
through page 17, line 18, and insert the following:
``(2) Expenditure purposes.--Subject to subsection (d),
payments received by a State under subsection (a) and
distributed to eligible counties shall be expended only for
public schools of the eligible county.
``(d) Expenditure Rules for Eligible Counties.--
``(1) Allocations.--
``(A) In general.--Except as provided in paragraph (3)(B),
if an eligible county elects to receive its share of the
State payment or the county payment, not less than 80
percent, but not more than 85 percent, of the funds shall be
expended only for public schools of the eligible county.
``(B) Election as to use of balance.--Except as provided in
subparagraph (C), an eligible county shall elect to do 1 or
more of the following with the balance of any funds not
expended pursuant to subparagraph (A):
``(i) Reserve any portion of the balance for projects in
accordance with title II.
``(ii) Reserve not more than 7 percent of the total share
for the eligible county of the State payment or the county
payment for projects in accordance with title III.
``(iii) Return the portion of the balance not reserved
under clauses (i) and (ii) to the Treasury of the United
States.
``(C) Counties with modest distributions.--In the case of
each eligible county to which more than $100,000, but less
than $350,000, is distributed for any fiscal year pursuant to
either or both of paragraphs (1)(B) and (2)(B) of subsection
(a), the eligible county, with respect to the balance of any
funds not expended pursuant to subparagraph (A) for that
fiscal year, shall--
``(i) reserve any portion of the balance for--

``(I) carrying out projects under title II;
``(II) carrying out projects under title III; or
``(III) a combination of the purposes described in
subclauses (I) and (II); or

``(ii) return the portion of the balance not reserved under
clause (i) to the Treasury of the United States.
``(2) Distribution of funds.--
``(A) In general.--Funds reserved by an eligible county
under subparagraph (B)(i) or (C)(i)(I) of paragraph (1) shall
be deposited in a special account in the Treasury of the
United States.
``(B) Availability.--Amounts deposited under subparagraph
(A) shall--
``(i) be available for expenditure by the Secretary
concerned, without further appropriation; and
``(ii) remain available until expended in accordance with
title II.
``(3) Election.--
``(A) Notification.--
``(i) In general.--An eligible county shall notify the
Secretary concerned of an election by the eligible county
under this subsection not later than September 30 of each
fiscal year.
``(ii) Failure to elect.--Except as provided in
subparagraph (B), if the eligible county fails to make an
election by the date specified in clause (i), the eligible
county shall--

``(I) be considered to have elected to expend 85 percent of
the funds in accordance with paragraph (1)(A); and
``(II) return the balance to the Treasury of the United
States.

Mr. BURR. Madam President, it is very simple. The question before us,
whether it is a side-by-side we decide on or a second-degree amendment,
is: Are we going to commit to using part of these Federal dollars that
States deserve--because it is in many cases in lieu of Federal payments
for a tax--are we going to commit those to local school systems to
educate our children? That is the decision we will have.
At the end of the day, I am going to support Wyden-Reid-Baucus-
Bingaman, and however many more people go on the chart before we
actually have a vote, but before that vote we will have a decision as
to whether we are going to make a commitment to education in this
country, and I urge my colleagues to vote in favor of that.
Mr. WYDEN. Madam President, I see the distinguished Senator from
Arizona is here, but I wish to briefly respond to the comments of
Senator Burr.
When we do vote, again I would highlight that I hope Senators, on a
bipartisan basis, for the amendment I am offering on behalf of the
large group that includes Senator Smith, Senator Domenici, Senator
Craig, Senator Murkowski, and a great many Senators on the other side,
virtually every Democrat, will reject the Burr amendment. Here is the
difference, and it is striking.
The Burr amendment, offered by our distinguished colleague from North
Carolina, sets in place a Federal mandate. It is a one-size-fits-all
approach that somehow we ought to decide here in Washington, DC what
happens in these local communities. What I have decided, with our
bipartisan coalition, is we ought to have an approach that gives local
communities a lot of flexibility and a lot of freedom to design
approaches that are tailor made to their area.
I have mentioned law enforcement, for example, as one critical area a
local community might want to support under the approach I offer with
our bipartisan group but which cannot be offered under the approach of
the distinguished Senator from North Carolina, and there would be other
examples as well.
For example, if a community was concerned about its roads and was
troubled about the prospect that their roads were dangerous, so that,
for example, in the snowy seasons it would be treacherous for kids to
get to school, under our amendment local communities would have the
flexibility to support some of that upkeep for local roads. I have been
told in communities such as Fossil, in my home State, they don't think
they even have a roads program without the county payments legislation.
So there are stark differences between the approach offered by the
Senator from North Carolina and the bipartisan approach I am offering
today with many of our colleagues.
At the end of the day, the difference is the Senator from North
Carolina is offering a Federal mandate which ties the hands of local
communities and local school districts, and I gather is one of the
reasons some educational advocates have already come out against the
amendment of the Senator from North Carolina.
I hope our colleagues will support the approach we are advocating
today which gives local communities real flexibility, ensures that the
Federal Government is keeping its obligation--its more than 100-year
obligation--to these rural communities, but updates it, as we have
sought to do with this payment in lieu of taxes provision in our
amendment and with the new formula--a formula, as the distinguished
Senator from Washington, the manager of the legislation, mentioned was
arrived at only through some very difficult negotiations with many
Senators involved.
So when Senators vote in a few minutes, I hope they will support the
amendment I am offering today, with the large group of bipartisan
sponsors, and reject the amendment offered by the Senator from North
Carolina which, in my view, is a Federal mandate that greatly limits
the ability to make the best use of these county payments dollars.
Mrs. FEINSTEIN. Madam President, I rise today in support of Senator
Wyden's amendment to the emergency supplemental appropriations bill
that would provide critical funding for a multiyear extension of the
Secure Rural Schools and Community Self-Determination Act and fully
fund the Payment in Lieu of Taxes, PILT, Program.
This amendment provides nearly $5 billion for rural schools, counties
and communities through 2012--crucial to California's rural counties,
which face a devastating loss in Federal funding.

[[Page 7726]]

Last Thursday, March 22, my colleagues and I on the Senate
Appropriations Committee approved the inclusion of $425 million in
emergency appropriations to fund the Secure Rural Schools program for 1
year in the emergency supplemental--helping to immediately address the
pending budget crisis confronting over 700 counties in 39 States,
including my State of California.
This emergency funding adds $425 million to the $100 million
available from the 25 percent of receipts that compensate counties for
reductions in timber harvest on public lands.
However, our counties should not have to rely on emergency funding
year after year and be faced with such uncertainty.
We must provide our rural counties with a stable funding stream so
that they are not in the same dire situation next year and can plan for
the future.
This amendment, supported by the National Association of County
Officials, the National Forest Counties and Schools Coalition, and the
National Education Association, would maintain a safety net for
counties while gliding down funding in a predictable manner so counties
can fiscally prepare for the future.
Specifically, this amendment would provide $2.8 billion in funding
over 5 years for a multiyear extension of the Secure Rural Schools
Program. It would also provide $1.9 billion to fund the Payment in Lieu
of Taxes, PILT, Program for 5 years, from 2008 through 2012. This
program compensates States for the loss of tax revenue from Federal
lands in the State. It would also provide funding beyond fiscal year
2007 to be fully paid for by a combination of tax offsets.
In addition, it would provide California, Oregon, and Washington with
additional transition funding in the early years to minimize the
effects of the overall decline of the total authorization level to $379
million in 2011 under the Secure Rural Schools Program. The additional
transition funding for these States--California, Oregon, and
Washington--would also help counties with adjusting to the new funding
formula under the Secure Rural Schools Program.
The new funding formula would be based on the current formula of
historical payments and the current acreage of U.S. Forest Service and
eligible Bureau of Land Management lands, along with mechanism to focus
support on those communities in greatest economic need.
Under this amendment, California's counties would receive $283
million in funding from fiscal year 2007 to fiscal year 2011 from the
Secure Rural Schools Program. Without this funding, mostly rural
California counties would face sudden, catastrophic cuts. Counties in
California would lose $57 million this year alone if the Secure Rural
Schools Program is not extended.
Last year, California's counties received $69 million to fund their
schools and road and forest improvement projects from this program. The
loss of these Federal funds would have a devastating impact on
California's rural counties, resulting in school closures, teacher
layoffs, and some schools could even face bankruptcy or State takeover.
Furthermore, essential road and forest improvement projects would be
jeopardized.
For example, Trinity County received almost $8 million in funding,
and all school districts in the county could be faced with bankruptcy
and would have to eliminate the school curriculum, cut one full-time
school nurse--leaving one nurse to cover the entire 4,000-square-mile
county--and cut music and arts programs.
Plumas County, which received $7.5 million, would have to lay off
teachers--resulting in increased class sizes in grades K through 12--
eliminate all school librarians, and close school cafeterias.
Lassen County received $4 million, and over half of the 10 school
districts in the county would be faced with budget insolvency--
resulting in school libraries being closed, teacher layoffs, the
elimination of school-based health services, and the reduction of
teacher training and student textbooks.
We simply cannot allow this to happen.
It is critical that we provide immediate and long-term funding to our
rural counties that depend on the Secure Rural Schools Program for
their livelihood.
This amendment would also fund the Payment in Lieu of Taxes, PILT,
Program, providing $1.9 billion over 5 years.
This means California would receive an estimated $11 million or more
in additional dollars annually on top of the $21 million the State
currently receives from the Payment in Lieu of Taxes Program.
In recognition of the reality that Federal lands pay no local
property taxes, PILT compensates counties for the Federal lands within
their borders. PILT compensation is especially important for rural
counties with heavy concentrations of Federal lands that reduce their
available tax base.
I urge my colleagues to support this amendment so we can ensure that
our Nation's rural counties continue to receive much needed resources
to serve their schools and communities.
Mr. CRAPO. Madam President, I rise today in support of the funding
provided in the supplemental appropriations legislation for
continuation of the Secure Rural Schools and Community Self-
Determination Act, and the 5-year reauthorization of the program
through the Wyden amendment. Counties and school districts across this
country are poised to cut much needed jobs and services without this
continuation. Many of us have heard the urgent calls from constituents.
The message has been clear--``Please help us.'' And, I'm proud to
answer that call by supporting this reauthorization.
For example, Idaho's Fremont County is one of the counties across the
State and Nation that have been faced with a dire situation. Fremont
County is looking at not only eliminating road and bridge services but
also students would be impacted by a loss of nursing services for
students, playground and safety equipment at elementary schools,
library books, and continuing education instructions. Counties across
Idaho face similar difficult emergency situations.
Ideally, management of our forested land would generate the revenue
necessary to assist with services in cash-strapped communities with
large amounts of federally owned land. Unfortunately, that just hasn't
been the case for some time. We must continue to work to remove
impediments to forest health and productivity. However, in the
meantime, Congress must commit the resources necessary to ensure that
rural communities across this country do not have to forgo road
maintenance, close libraries, and make cuts to children's education.
Anything less is unacceptable.
The legislation before us today would respond by fully funding PILT
through 2012 reauthorizing Secure Rural Schools through 2011,
reauthorizing the valuable Resource Advisory Committees, RACs, and
phasing down the payments over time. I urge other Senators to join me
in supporting this amendment that fulfills the responsibility to these
communities that shoulder the local cost of the public lands we all
enjoy.
Thank you for the opportunity to share a few words.
Madam President, I yield the floor.
Mrs. MURRAY. Madam President, I thank the Senator from Oregon for
offering this amendment.
Madam President, I ask unanimous consent that Senator Salazar be
allowed to speak for 3 minutes on the pending amendment, and that
Senator McCain, who has been waiting, follow Senator Salazar with his
comments.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from Colorado is recognized for 3 minutes.
Mr. SALAZAR. Madam President, I thank my good friend, the
distinguished Senator from Arizona, and I thank Senator Murray and
Senator Wyden as well.
I wish to make two quick points in support of the amendment Senator
Wyden and our colleagues have brought to the Senate floor today.

[[Page 7727]]

The reality of the West in America is so much of our lands are owned
by the Federal Government. We have about a third of the entire State of
Colorado--and it is a big State, but it is about a third of that
State--that is owned by the Federal Government. In some of those
counties in my State, 95 to 98 percent of the lands is owned by the
Federal Government as well. So they have been dependent on payments in
lieu of taxes in order for them to be able to pay the expenses of their
government.
Unfortunately, what has happened over many years in the past is there
has not been the full funding of the Payment in Lieu of Taxes Program.
The consequence of that is some of these small rural counties in my
State of Colorado have not had the financial wherewithal to be able to
move forward with the functioning of their government. I am hopeful the
bipartisan coalition Senator Wyden has put together will help us move
forward in the full funding of the bill.
Secondly, I wish to make a quick comment about the Secure Rural
Schools and Community Self-Determination Act of 2000. I fully support
that part of this legislation. I know the importance of funding for
those rural school districts. The rural school district I grew up in
would receive about one-half of the funding that is being spent in
other school districts in the metropolitan areas. What this funding
will do is help equalize the amount of funding we are putting into
equal education opportunity for all people, so it doesn't matter
whether you come from a wealthy urban area or you come from one of the
poorest, most rural, remote areas, there will be that funding
assistance so everyone in America has an equal educational opportunity.
Madam President, I yield the floor again, thanking my colleagues and
Senator McCain for yielding to me first.
Mrs. MURRAY. Madam President, I ask unanimous consent that following
the Senator from Arizona, the Senator from Virginia be recognized for 7
minutes.
The PRESIDING OFFICER. Is there objection?
The Chair hears none, and it is so ordered.
The Senator from Arizona.
Mr. McCAIN. Madam President, I ask unanimous consent to set aside the
pending amendment.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. McCAIN. Madam President, I rise in support of the amendment which
we will be voting on at 5 p.m. that would, according to, I believe, the
unanimous consent agreement, strike the language in this bill calling
for a withdrawal of American forces from Iraq. These same provisions
were rejected by the Senate 2 weeks ago by a 48-to-50 vote. Now here we
are debating the same provisions that have the same serious problems. I
hope they will be rejected again by the same, if not a larger, margin.
Supporters of this provision say they want a date certain for a U.S.
withdrawal from Iraq, but what they have offered us is more accurately
described as a date certain for surrender--a date certain for
surrender--with grave consequences for the future of Iraq, the
stability of the Middle East, and the security of Americans at home and
abroad. And they offer it just as the situation in Iraq, though still
fraught with difficult challenges, is beginning to improve.
The new developments argue for more effort in Iraq rather than the
withdrawal advocated by this bill's sponsors. As my colleagues know, I
have been critical of the conduct of this war since 2003, and I very
much regret that only now, 4 years into the conflict, are we beginning
to implement the kind of strategy that was necessary from the start: a
traditional counterinsurgency strategy that emphasizes protection of
the population, economic development, and political progress, all with
troop levels appropriate for the mission.
We are seeing today the emergence of precisely such a strategy. I
would emphasize this point: This new plan is not ``stay the course.''
We are not staying the course in Iraq and I would not support the
status quo any more than I have over the past 4 years. Nor have we
merely deployed a new commander, however capable, and additional
forces. America is engaged today in a fundamentally new strategy, a new
approach to the war, an approach that is already showing encouraging
signs that it might succeed.
Until now, U.S. forces did not attempt to defeat the insurgency and
the terrorists, protect the population, and end the violence so
political and economic progress could occur. Most American troops spent
their days on large forward-operating bases making forays out into
hostile territory in which they were subject to ambush. Today, U.S.
troops, along with Iraqi forces, are out of the FOBs and living in
small outposts. Today, U.S. forces are operating throughout Baghdad,
even in Shiite strongholds such as Sadr City, Sunni areas such as
Mansoor, and mixed districts such as Rashid. As of March 15, 24 joint
security stations were operational, with many more planned. American
forces in these stations are visible every day, living among the
population, building confidence that we--and not the terrorists--will
prevail. Contrary to some predictions, this has not increased U.S.
casualties. And, not surprisingly, our presence has resulted in a
dramatic increase in actionable intelligence about terrorists.
You might not know it from reading newspapers or watching the evening
news, but in Iraq today there are real signs the new strategy is
working. I wish to spend a few moments outlining some of this progress,
not to paint an overly rosy scenario but, rather, to correct what has
become an almost single-minded focus in the Congress on the prospects
of defeat. The debate in Congress has an ``Alice in Wonderland''
quality about it: We are debating efforts to micromanage a conflict
based on what the conditions were 3 months ago, not on what the reality
is today. Conditions have changed in Iraq. The Baghdad security plan--
the ``surge''--is working far better than even the most optimistic
supporter had predicted. The progress is tangible in many key areas
despite the fact only 40 percent of the planned forces are in Iraq.
Allow me to review some specifics.
In Baghdad, the military has reported an increase in real-time,
actionable intelligence provided to U.S. and Iraqi forces by a newly
confident population. Prime Minister Maliki, who prevented U.S. troops
from conducting certain Baghdad operations last year, has given the
green light to American incursions throughout the city, including
Shiite strongholds. All of the Iraqi army battalions called for under
the plan have arrived, many at or above 75 percent of their programmed
manning levels. Bomb attacks and murders are down since the surge
began. Civilians killed in Baghdad numbered 1,222 in December, 954 in
January, and fell to 494 in February. There are reports of Sunni and
Shia moving back into neighborhoods from which they had fled constant
and horrific violence. Markets that have been subject to horrific car
bombings have been turned into pedestrian malls that facilitate
commerce and thwart terrorists.
Moqtada al-Sadr has fled, possibly to Iran, and has ordered his
followers not to oppose the new Baghdad security plan. The Madhi army,
purportedly dedicated to the expulsion of Americans from Iraq, does not
today openly challenge either U.S. or Iraqi forces. American troops are
engaged in reconstruction efforts in Saudi City, with the cooperation
of the local mayor. In the western part of Baghdad, our troops are
establishing new outposts in areas--these areas here--that have been
conduits for al-Qaida in Iraq penetration into the capital city, and
have begun to clear these areas of terrorists and insurgents. The net
result of all of this is key Shiite leaders are now claiming the
Baghdad security plan was their idea, and are taking credit for the
increase in security--a development that would have been unthinkable 3
months ago.
There is progress outside Baghdad as well:
Throughout Anbar Province, Sunni sheikhs have banded together to
fight al-Qaida in Iraq, and are pouring recruits into the police
forces. Sixteen of

[[Page 7728]]

twenty-six tribes in that western province are now working against al-
Qaida. With numerous senior al-Qaida leaders killed or captured, the
younger, less experienced leaders are making mistakes, such as
targeting respected sheikhs and murdering children, that have alienated
Sunnis and their leaders.
In the town of Ramadi, hundreds of Iraqi police last week conducted a
major sweep. In the surrounding areas--all of these surrounding areas--
including Haditha and Hit, U.S. and Iraqis are conducting operations
against al-Qaida and insurgents while protecting the population.
In Diyala Province U.S. forces expelled al-Qaida forces from one of
their major bases in January, seized major weapons caches, disrupted
fighter networks, and cleared cities and villages of al-Qaida fighters.
A U.S. Stryker battalion has reinforced Diyala and is conducting major
operations against AQI forces seeking to reconstitute. At the same
time, other U.S. forces in Diyala are acting against rogue Mahdi Army
leaders in the province and are holding the Diyala and Tigris Rivers to
combat re-infiltration into Baghdad.
On the belt to the south of Baghdad, al-Qaida has come under heavy
U.S. pressure in recent weeks, with American forces destroying car bomb
factories and uncovering major weapons caches in areas such as
Yusufiya, Latifiya, and Salman Pak.
In Mosul, U.S. and Iraqi forces have killed and captured numerous al-
Qaida operatives since December.
In Samarra, American and Iraqi troops have captured al-Qaida
facilitators and north of the city, Salahuddin Province, American
troops have moved off of their forward operating base and into the town
of Bayji, an important hub on the road network.
These developments, which have occurred just 1 month into the new
strategy and with only a portion of the five additional U.S. brigades
having yet deployed, suggest that, at long last, we have a strategy in
Iraq that is succeeding. That is not to say that all is going well in
Iraq; clearly, it is not. Violence continues, the Mahdi Army recently
launched an attack in Basra, and one of Iraq's vice presidents was
gravely wounded in a bomb attack. But we all know the negatives; we
read about them every day and see them flash across our television
screens hourly. The enemy knows how attention-getting car bombs are,
and their strategy reflects this understanding.
We must try to stop such events, and push the Iraqi Government to
move forward with its reconciliation efforts and meet the benchmarks
laid out by the President. What we cannot do, and, for the sake of
America's vital national security interests, we must not do, is give up
just at the moment we are starting to turn things around in Iraq.
Yet in the face of this new reality, the proponents of the
legislation offer one prescription for the future: withdrawal of U.S.
forces. Despite the progress, despite the ongoing need for U.S. troops
to stabilize Iraq and pave the way for a political solution, despite
the moral burdens we have incurred as a result of our decision to
topple Saddam Hussein, and, above all, despite the catastrophic
consequences for vital U.S. interests that would follow a premature
withdrawal from Iraq, the sponsors of this legislation would force
precisely that.
To those who believe that the best course is to withdraw, I ask: Can
you explain to the American people precisely what you believe to be the
consequences of this action? If we follow the timetable included in
this bill--to withdraw troops whether or not we are succeeding or
failing; regardless of whether the country is secured; irrespective of
whether the Iraqis can manage their own affairs alone, or whether the
forces of terror and chaos will triumph--if we follow this timetable we
risk a catastrophe for American national security interests.
Note that American national security interests are directly at stake.
Not just Israeli interests, though Prime Minister Olmert has said that
defeat in Iraq could be devastating for his country. Not just for our
Arab friends and partners in the region, though they fear the
consequences of massive humanitarian displacement, growing Iranian
influence, and wider bloodshed. Not just for the Iraqis themselves, for
whom genocide is a real prospect should sectarian violence spiral out
of control. But for America. Success or failure in Iraq is the
transcendent issue for our foreign policy and our national security.
People say they want to defeat the terrorists. But if we withdraw from
Iraq prematurely, it will be the terrorists' greatest triumph.
Withdrawing before there is a stable and legitimate Iraqi authority
would turn Iraq into a failed state, in the heart of the Middle East.
We have seen a failed state emerge after U.S. disengagement once
before, and it cost us terribly. In pre-9/11 Afghanistan, terrorists
found sanctuary to train and plan attacks--including attacks against
America--with impunity. If we leave Iraq based on an artificial
timetable, al-Qaida will be free to plan, train for and conduct
operations from Iraq just as they did from Afghanistan. We cannot make
this fatal mistake twice.
If Iraq descends into chaos, the power vacuum there will invite
further Iranian interference, at a time when Tehran already feels
emboldened. Iraq's neighbors, from Saudi Arabia to Egypt to Turkey,
would feel their own security eroding, and may intervene on the side of
particular factions. This uncertain swirl of events could spark
regional war severely damaging to America's fundamental security
interests. And we would then face a terrible choice: watch the region
burn, watch the terrorists establish new bases, with profound
implications for the safety of Americans and their economic well-being,
or send troops back into Iraq once again.
The proponents of withdrawal state that they envision no such
catastrophe; they are not advocating a precipitous withdrawal but
something more gradual, and they would leave American troops in place
to focus on three limited objectives: protecting coalition personnel
and infrastructure, training and equipping Iraqi forces, and conducting
targeted counter-terrorism operations. But if these three missions
sound familiar, that's because they formed the centerpiece of the
strategy that was failing up until the beginning of this year. They
would forbid counterinsurgency operations, protection of the
population, and the other elements of our new strategy that are
directly responsible for the successes we have seen this year. This
legislation is a plan for failure. But neither failure nor success is
the objective of its sponsors. They wish to get out of Iraq, whatever
the consequences for America. They conceive no failure as worse than
remaining in Iraq and no success worthy of additional sacrifice. They
are wrong, terribly, terribly wrong.
These provisions draw a false distinction between terrorism and
sectarian violence. Let us think about the implications of ordering
American soldiers to target ``terrorists,'' but not those who foment
sectarian violence. Was the attack on the Golden Mosque in Samarra a
terrorist operation or the expression of sectarian violence? When the
Mahdi Army attacks government police stations, are they acting as
terrorists or as a militia? When AQI attacks a Shia village along the
Diyala River, is that terrorism or sectarian violence? What about when
an American soldier comes across some unknown assailant burying an IED
in the road? The obvious answer is that such acts very often constitute
terrorism in Iraq and sectarian violence in Iraq. The two are deeply
intertwined. To try and make an artificial distinction between
terrorism and sectarian violence is to fundamentally misunderstand al-
Qaida's strategy which is to incite sectarian violence. To say that
targeting terrorist violence is allowable while stopping sectarian
violence is illegal flies in the face of this reality, and would make
it impossible to fight this war against terrorism, let alone prevail in
it.
Some Senators have taken a different tack, arguing that Iraq is still
winnable but that, by withdrawing troops, we will actually maximize the
chances of success. They concede that a withdrawal will encourage
insurgents and

[[Page 7729]]

terrorists to unleash greater violence on the Iraqi people, but believe
that such violence might induce Iraqi politicians to make the political
decisions necessary to end it. Could this possibly be true? Can we, by
withdrawing our troops from Iraq, actually increase the stability in
Iraq rather than risk catastrophe, and induce a political solution
rather than make it less possible? Is success in Iraq as simple as
issuing redeployment orders, a move blocked only by stubborn commanders
and civilian authorities?
GEN David Petraeus, for one, believes that it is not. Of course the
dire situation in Iraq demands a political solution. That is undeniably
true. But a political solution among the Iraqis cannot be simply
conjured. It is impossible for meaningful political and economic
activity to take place in an environment as riddled with violence as
Baghdad has been. Security is the precondition for political and
economic progress, and without security, we will not see the political
progress all of us agree is necessary. In this regard, there are
positive indications. Prime Minister Maliki went to Ramadi to reach out
to Sunnis, and the Iraqi Government is pushing through a new de-
Baathification law. The oil revenue sharing law has been approved by
the Council of Ministers and should be approved by parliament soon.
Reports indicate that Iraqi officials are in discussions with a number
of non-AQI Sunni insurgent groups, while fighting has broken out
between AQI and Sunni insurgents.
Reconciliation is not the inevitable outcome of the new strategy. On
the contrary, there is no guarantee of success. What the situation
demands is not a guarantee, but rather a strategy designed to give us
the best possible chance for success. This, I believe, is what the new
plan represents.
The provisions our amendment would strike would force redeployments
of U.S. forces within 120 days, and nearly all troops would have to
leave Iraq by March 31, 2008. This does not incentivize the Government
of Iraq to make tough decisions on reconciliation; it sets the stage
for the Government's collapse. This arbitrary deadline informs our
enemies when they need no longer fear American military power. It
signals to the population that their best bet for security really does
rest in the hands of militias, rather than the Government. It
demonstrates to the Government that they cannot rely on us--after all,
we are pulling out regardless of the situation or the consequences. And
it tells the terrorists that they--not we--will prevail.
All of us want to bring our troops home, and to do so as soon as
possible. None of us, no matter how we voted on the resolution
authorizing this war, believes the situation that existed until
recently is sustainable. But there is a new situation, a new reality in
Iraq. This amendment ignores that reality and ignores the consequences
that would flow from its adoption. When Congress authorized this war,
we committed America to a mission that entails the greatest sacrifice a
country can make, one that falls disproportionately on those Americans
who love their country so much that they volunteer to risk their lives
to accomplish that mission. When we authorized this war, we accepted
the responsibility to make sure they could prevail. When we voted to
send them into battle we asked them to use every ounce of their courage
and fortitude on behalf of us.
This body unanimously confirmed General Petraeus. Why would we now
deprive him of the opportunity to pursue the strategy he helped design
and believes can work? Why would we hand our enemies a victory when we
have finally taken the initiative and they are on the defensive? Let us
give him and the soldiers he has the honor to command, Americans who
are risking everything so that this new plan can succeed, the time
necessary to achieve its objectives.
And let us elected officials who have the honor of overseeing the
conduct of our soldiers' mission in Iraq exercise a lesser magnitude of
courage--our political courage on behalf of them and the country they
serve. If any Senator believes that our troops' sacrifice is truly in
vain, the dictates of conscience demand that he or she act to prevent
it. Those who would cut off all funding for this war, though I disagree
deeply with their position, and dread its consequences, have the
courage of their convictions, and I respect them for it.
If, on the other hand, you believe, as I do, that an increase of U.S.
troops in Iraq, carrying out a counterinsurgency mission, provides the
best chance for success in Iraq, then you should give your support to
this new strategy. It may not be popular nor politically expedient, but
we are always at our best when we put aside the small politics of the
day in the interest of our Nation and the values upon which they rest.
Those are the only responsible, the only honorable choices before us.
There are no others. I wish there were. But here we are, confronting a
political, military and moral dilemma of immense importance, with the
country's most vital security interests and the lives of the best
Americans among us at stake. May God grant us the wisdom and humility
to make this difficult judgment in our country's best interests only,
and the courage to accept our responsibility for the consequences that
will ensue.
The PRESIDING OFFICER. The Senator from Washington.
Mrs. MURRAY. Madam President, under the previous unanimous consent
agreement, at 3:45 we will return to the Cochran amendment. I ask
unanimous consent that the Senator from Virginia, Mr. Webb, proceed for
up to 8 minutes and that the time remaining until 3:45 be allocated to
the Senator from South Carolina, Mr. Graham.
The PRESIDING OFFICER. Without objection, it is so ordered.

Amendment No. 692

The PRESIDING OFFICER. The Senator from Virginia.
Mr. WEBB. Madam President, I ask unanimous consent to call up my
amendment No. 692.
The PRESIDING OFFICER. Without objection, it is so ordered.
The clerk will report the amendment.
The legislative clerk read as follows:

The Senator from Virginia [Mr. Webb] proposed an amendment
numbered 692.

The amendment is as follows:

(Purpose: To prohibit the use of funds for military operations in Iran)

At the appropriate place, insert the following:

SEC. __. PROHIBITION ON USE OF FUNDS FOR MILITARY OPERATIONS
IN IRAN.

(a) Prohibition.--Notwithstanding any other provision of
law, no funds appropriated or otherwise made available by
this Act may be obligated or expended for military operations
or activities within or above the territory of Iran, or
within the territorial waters of Iran, except pursuant to a
specific authorization of Congress enacted in a statute
enacted after the date of the enactment of this Act.
(b) Exceptions.--The prohibition in subsection (a) shall
not apply with respect to military operations or activities
as follows:
(1) Military operations or activities to directly repel an
attack launched from within the territory of Iran.
(2) Military operations or activities to directly thwart an
imminent attack to be launched from within the territory of
Iran.
(3) Military operations or activities in hot pursuit of
forces engaged outside the territory of Iran who thereafter
enter into Iran.
(4) Intelligence collection activities of which Congress
has been appropriately notified under applicable law.
(c) Report.--Not later than 24 hours after determining to
utilize funds referred to in subsection (a) for purposes of a
military operation described in subsection (b), the President
shall submit to the appropriate committees of Congress a
report on the determination, including a justification for
the determination.

Mr. WEBB. Madam President, I have been on the Senate floor on a
number of occasions to discuss the amendment which I am introducing
today. I introduced it on March 5 as S. 759, which is a bill to
prohibit the use of funds for military operations in Iran without the
consent of the Congress. I am offering this legislation today as an
amendment to the fiscal 2007 emergency supplemental appropriations
bill, with the support of the chairman of the Appropriations Committee.
This bill has received a good bit of discussion and also a good bit
of correspondence from various citizens groups that have gone to
Members' offices. I will not take a great deal of time in terms of
going through a lot of

[[Page 7730]]

the debate about it. I would like to say at the outset that I have
taken great care in the preparation of this amendment to ensure that it
will not in any way prevent our military forces from carrying out their
tactical responsibilities in places such as Iraq and in other areas
that are on the coastlines and border lines of Iran. But I would like
to emphasis that, in my view, this amendment is essential to
revitalizing the constitutional health of our governmental process.
The purpose of this legislation is to restore a proper balance
between the executive and legislative branches when it comes to the
commencement of war. Any general attack on Iran would be, beyond cavil,
a commencement of a new war in a region that is already enduring two
costly and debilitating wars. If this action is to be taken, it should
be done only with the full and considered consent of the Congress.
At the same time, the legislation allows American forces to directly
respond to attacks or possible attacks which might be initiated from
Iran, as well as those which might be begun elsewhere and then carry
over into Iranian territory.
Specifically, the amendment requires that the President seek
congressional authorization prior to commencing any broad military
action in Iran, and it allows the following exceptions: first, military
operations or activities that would directly repel an attack launched
from within the territory of Iran; second, those activities that would
directly thwart an imminent attack that would be launched from Iran;
third, military operations or activities that would be in hot pursuit
of forces engaged outside the territory of Iran who thereafter would
enter Iran; and finally, those intelligence-collection activities that
have been properly noticed to the appropriate committees of Congress.
The major function of the amendment again is to restore the
constitutional balance. No administration should have the power to
commence unproved military activities against Iran or any other nation
without the approval of the Congress, but the issue of the day is Iran.
I am offering this amendment partly due to my concern over President
Bush's signing statement which accompanied the 2002 congressional
resolution authorizing the use of force in Iraq. That amendment, if you
read it carefully, indicates that this administration believes it
possesses the broadest imaginable authority to commence military action
without the consent of the Congress. It should not be left unanswered
by this body.
This amendment will not take any military operations off the table,
any options off the table. It will not tie the hands of this
administration if our military forces are actually attacked from
Iranian soil or territorial waters or by forces that retreat into
Iranian territory.
This is responsible legislation. I urge my colleagues to support it.
I yield the floor.
The PRESIDING OFFICER. The Senator from South Carolina.
Mr. GRAHAM. Madam President, I understand I have 7 minutes; is that
correct?
The PRESIDING OFFICER. The Senator has until 3:45--9 minutes.
Mr. GRAHAM. I was going to yield to Senator Coburn.
The PRESIDING OFFICER. The Senator from Oklahoma is recognized.
Mr. COBURN. Madam President, I ask unanimous consent to call up
amendments and set them aside. That way, they can be considered as
called up. Senator Graham has graciously allowed me some of his time to
do that. The amendment Nos. are 648, 649, 656, 657, 715, 717, and 718.
The PRESIDING OFFICER. The Senator from Washington.
Mrs. MURRAY. If the Senator would hold and let us take a quick look
at that. Perhaps Senator Graham could go ahead and use his time. We
will talk, and then when Senator Graham is done, before we begin the
debate on the Cochran amendment, we can work with the Senator on an
agreement on those amendments.
I object at this time, and I will work with the Senator to work out
those amendments.
The PRESIDING OFFICER. The Senator from South Carolina.
Mr. GRAHAM. Madam President, I would like to associate myself with
the comments of Senator McCain about what is going on on the ground in
Iraq. I thought he did an excellent job of explaining that this new
strategy is just what it is described as being--new. We are not sending
more people to do the same old thing. It is a fundamentally different
approach to how we handle the situation in Iraq.
The situation in Iraq is the result of not having enough forces on
the ground in the early parts of the war. The security environment in
Iraq got out of control. The terrorists seized an opportunity to divide
the Iraqis by bombing the Samarra mosque, the third most holy site in
the Shia region in Samarra. Ever since then, we have been in a conflict
between Shias and Sunnis in Baghdad.
Anbar has always been about Sunni insurgents trying to topple this
infant democracy, and it has been the place where al-Qaida has been
hiding.
The progress is that the Sunni insurgency--the tribal chiefs are
beginning to understand that their lives are better with the unified
Iraq; that if they can share in the oil revenues of the country, future
Sunni generations will be benefited. I think Shias are beginning to
understand that to reject Al-Sadr--his view of Iraq becoming a Shia
theocracy is not going to be accepted by people in the neighborhood and
other folks living in Iraq. So I think every group is beginning to
understand that through political reconciliation, they have a better,
brighter future. The way to get political reconciliation is to control
the violence. That is why we need more troops, more troops to hold
areas previously cleared, to buy time for political reconciliation and
economic progress, and the early indications are that it is working.
Now, what is not working. The Congress is not working. I think the
Congress is about to make history in all of the wrong ways. Do we
really want to be the first Congress--maybe ever in the history of the
country, that I am aware of--that would, by congressional enactment,
set a hard date to withdraw from a war in Iraq with which our vital
national security interests as Americans are intertwined? What are the
consequences of leaving in March or any other date in 2008? What
happens when we leave? No one who is offering these amendments has
really thought that through.
I do believe that a failed State in Iraq jeopardizes our national
security interests for decades, is a loss in the war on terror, is an
empowering event for extremists, a death blow to moderation, and that
we need to see this through by changing course, and this is exactly
what we are doing.
Setting a timeline for withdrawal is saying you have no confidence in
General Petraeus to execute the plan we sent him to execute. It is
saying we have no confidence in our military to deliver, because the
day you set that date, you are going to freeze political
reconciliation. People are not going to do deals the same way when they
know America is going to leave at a certain date because what happens
when America leaves will be thought of in terms of the consequences of
a particular deal.
If we leave and Iraq is in chaos, the police and the army are unable
to deal with the wolves of terrorism, then they are overwhelmed, the
country breaks apart, and the regional consequences and the
consequences to the world are monumental, in my opinion.
The first rule of medicine is to do no harm. It should be the first
rule of politics. And we have done harm with our Iraqi strategy. We
have assumed the best and never planned for the worst.
Whatever mistakes the Bush team has made, and there are many, the
Congress is about to make the greatest mistake of all; that is, to tell
the enemy what they have to do to get us out of Iraq on their terms,
not ours. It is a death blow to moderation. Who in the Mideast will try
to come together knowing that the United States cannot be counted on?
What effect would it

[[Page 7731]]

have on the worldwide terrorist networks if they believe, through their
acts of violence and barbaric behavior, that America will leave?
We cannot let suicide bombers determine the fate of the 21st century.
We cannot let people who will blow up children in a car determine the
fate of Iraq. We cannot let that happen. We are bigger than that. We
are better than that. I believe passionately, after five visits, with
one more to come, that the people in Iraq want more. They are dying for
their own freedom. I would leave tomorrow if I thought the Iraqi people
were incapable of solving their problems. I do believe the majority of
Shias, Sunnis, and Kurds want the same thing that every Member of this
body wants for their family--a better life. They have looked into the
abyss, and they are making the changes they need to make.
If we restrict funding, if we restrict our military commanders'
ability to go after the enemy in all of its forms, we are doing them a
disservice. If you set a hard deadline for withdrawal, you have doomed
us as a nation to lose in Iraq. What good would it be for one person to
be maimed or to die waiting on that day to come? If you pick March
2008, what do you tell a family member of the U.S. military why their
loved one died or was harmed, knowing that the date killed our efforts
to be successful? This is irresponsible. This does everything wrong
that the Congress could do at a time when things could get better.
I cannot promise you success. But I know our last best chance lies
with General Petraeus. Our last best chance lies with a reinforcement
of a country and a military that needs it. The military needs this
money. They deserve this money without strings attached. They deserve a
chance to turn Iraq around to make us free.
The House may be satisfied with this vote on the supplemental, and
they may think this is a victory for the Democratic leadership in the
House. I think this is a shameful chapter in the history of the House.
These votes to pass this bill were literally bought. There is money in
this bill, the supplemental bill, that has nothing to do with the
military, nothing to do with Iraq, and there was money being spent to
buy votes to make sure we drive ourselves out of Iraq without
consequence and the thought of what happens.
If we do not pass a supplemental soon, Secretary Gates has laid out
what happens in April, May, and June to our military. Because of time
limitations, I will not go into detail on what happens to the military,
but I can tell you with certainty that the military needs this money
for ongoing operations, and every month and week that goes by without
this money going into the Department of Defense, major decisions have
to be made that compromise troop safety, that hurt the quality of life
of families, and keep this surge from being successful.
If your goal is to end this war because you think we have lost,
choose an honorable path. The honorable path would be to come to this
floor, offer an amendment to stop funding now and get out of Iraq as
soon as possible. A date certain a year from now, a year and a half
from now, whatever date you pick, it ensures we lose, and it ensures
that the people who are left there to fight until that day comes get
injured and die in vain.
This is the wrong way to run a war. This is the wrong way to fight
terrorism.
Three weeks ago, I was at Guantanamo Bay listening to Shaikh
Mohammed, the mastermind of 9/11, explaining why he was at war with us.
He will be at war with us until his last breath. There are people like
him in Iraq measuring us as a nation. Please do not send them the wrong
signal. Fund our troops without condition. Stand behind General
Petraeus because he deserves our support.
We sent him off to do a mission. Give him the resources to do it, and
in time we will figure this out. This is not an open-ended commitment.
I know as well as everybody else that we are not going to be in Iraq
forever. But we need to be in Iraq on terms that will empower moderates
and deflate extremists. I believe the Iraqi political leadership, given
the breathing space, will have the ability, with our support, to
reconcile their country because it is in their best interests.
Literally thousands of Iraqis have died for their own freedom. What
more can we ask of someone. Political reconciliation is hard. It took
us 13 years to write our Constitution. We were at civil war among
ourselves. Democracy is hard, but it is worth fighting for.

Amendment No. 643

The PRESIDING OFFICER (Mr. Tester). The Senator from Washington.
Mrs. MURRAY. Mr. President, under the previous consent agreement, for
the information of all Senators, we are now going to the debate on the
Cochran amendment; is that correct?
The PRESIDING OFFICER. Under the previous order, the time until 5
p.m. is for debate with respect to amendment number 643, with the time
equally divided and controlled between the two leaders or their
designees.
Mrs. MURRAY. I yield 12 minutes to the Senator from West Virginia,
Mr. Byrd.
The PRESIDING OFFICER. The Senator from West Virginia is recognized.
Mr. BYRD. Mr. President, I thank the able Senator from Washington.
While I oppose the amendment by the Senator from Mississippi, I thank
him for his courtesy in bringing this bill to the floor. In order to
facilitate Senate action on this critical supplemental bill, the Senate
Appropriations Committee reported a bill by voice vote on Thursday,
March 22. Again, I thank the able Senator from Mississippi, Mr.
Cochran, for his support.
In this 2007 supplemental, the Congress is providing nearly $100
billion to support our military and diplomatic efforts in Iraq and
Afghanistan. This brings total appropriations for the wars to nearly
$170 billion for this year alone. When Congress approves this
supplemental, it will have appropriated $448 billion for the war in
Iraq.
As the conflict in Iraq enters its fifth year, more than 3,220
members of the uniformed services have sacrificed their lives, with
over 24,000 more wounded, many grievously wounded. The Iraq conflict
most certainly has become a civil war. The American people need to know
what we are accomplishing by remaining in Iraq. How much longer will
Congress continue to blindly write checks for this failed strategy in
Iraq? Supporting the troops means doing all we can to remove them from
this violent internal sectarian conflict in Iraq.
The American people have made it very clear where they stand on this
matter. A large majority of Americans, according to any number of
polls, wants the troops home, and the sooner the better. I, for one, am
not so stubborn that I will keep marching on toward some intangible
success in Iraq, no matter how many may die, no matter how many may be
wounded, and no matter how many families are torn apart by grief. A
continued U.S. presence is a catalyst for violence in Iraq and in the
region. It is time to remove that spark from this volatile situation
and pursue a diplomatic track which may lead to a national
reconciliation for the people of Iraq.
The language in this bill encourages a decrease in Iraqi reliance on
U.S. troops to keep the peace in Iraq and pave the way for the Iraqi
people to take steps toward national reconciliation. The language in
the bill is not Draconian, nor is it precipitous. It is simply a
recognition of the reality of the situation in Iraq. It calls for a
gradual redeployment of U.S. troops in conjunction with concerted
efforts to train and equip Iraqi security forces while building
regional and international support for the Iraqi Government. The
language permits continued counterterrorism operations by U.S. forces
and allows a limited number of U.S. forces to remain in order to
protect U.S. and coalition personnel and infrastructure. That is not a
precipitous withdrawal. It is not cutting and running. Rather, it is a
commonsense compromise between those who want all the troops home now
and those who advocate a continued massive American presence in Iraq.

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It is time--yes, time--to change course in Iraq before 3,000 more
Americans and thousands more Iraqis are killed.
I urge my colleagues to oppose the amendment to strike section
1315(a) and (b) of the bill.
I yield the floor.
The PRESIDING OFFICER. Who yields time?
Mr. COCHRAN. I yield the distinguished Senator from Louisiana 5
minutes.
The PRESIDING OFFICER. The Senator from Louisiana is recognized.
Mr. VITTER. Mr. President, I rise to encourage all of my colleagues,
Democrat and Republican, to support the Cochran amendment as a
responsible action. The situation in Iraq is deeply controversial and
divisive. As we debate it, everyone here and in the country say they
are clearly for supporting our troops in the field and giving them what
they need once they are put there to do their mission. That is why just
a week or two ago huge numbers of Members of the Senate supported the
Gregg resolution, 82 Senators saying clearly: We are going to support
the men and women in uniform in the field; likewise, they supported in
huge numbers the Murray resolution, 96 Senators, to support the men and
women in uniform in the field.
I am afraid the path some are urging us to go down today belies that
statement, contradicts that statement, and does not support those men
and women in uniform in the field.
We all know the consequences of the Reid language. That language
insists that the President pull our troops out of Iraq on a date
certain with no regard at all for the conditions on the ground or the
progress being made by our troops or the Iraqi Government. It
micromanages the war, taking what is in the purview of the Commander in
Chief and bringing it to Congress. The Reid language will absolutely
draw a veto from the President. What would that do? It would delay for
a significant amount of time getting aid, money, help, and equipment to
our troops in the field.
We should not go down this path. This language will earn a veto from
the President. Indeed, it would earn a veto from any President because
it micromanages his responsibilities as Commander in Chief, and that
will delay getting resources to folks in the field.
Our military leadership has said in no uncertain terms that they must
get this supplemental funding to support the troops in the field by
mid-April. This language will push all of that well beyond that
deadline, will delay it by 5, 6 weeks or more, and endanger our troops
in the field by not getting them the resources and equipment they need.
That is not right. That is exactly contrary to what almost all Members
of this body have spoken for: supporting our troops in the field.
This supplemental appropriations bill also has important help for the
victims of Hurricanes Katrina and Rita on the gulf coast, emergency
measures that are supported by the President and the Congress but have
not yet been fully funded. Just as we are playing politics potentially
with our troops in the field with this veto scenario, we would be
playing politics with this language, drawing a veto from the President,
with the victims of the worst natural disaster in U.S. history. That is
not right. It is politics over people. Worse than that, it is politics
over our people in uniform. It is politics over our people who suffered
the worst natural disaster in history. We should not go down this path.
We should not be so cynical and callous. We should put our people in
uniform first and get them the funds and support they need in the field
as we promise to do speech after speech after speech.
Words are cheap. Actions, votes lead to consequences. That is what
this debate and what these votes are all about--supporting our troops
in the field, supporting the victims of the worst natural disaster in
U.S. history.
I yield the floor.
The PRESIDING OFFICER. Who yields time?
The Senator from Washington.
Mrs. MURRAY. Mr. President, I yield 10 minutes to the Senator from
Nebraska, Mr. Hagel.
The PRESIDING OFFICER. The Senator from Nebraska.
Mr. HAGEL. Mr. President, there will be no victory or defeat for the
United States in Iraq. There will not be a military solution to Iraq.
Iraq belongs to the 25 million Iraqis who live there. It does not
belong to the United States. Iraq is not a prize to be won or lost.
We can help the people of Iraq, as we have been helping them over the
last 4 years, with a tremendous amount of our American blood and
treasure. We have much invested in Iraq. America has strategic
interests in the Middle East. And we will continue to help the people
of Iraq, as we will continue to protect our interests and those of our
allies in the Middle East.
But the future of Iraq, however, will be determined by the Iraqi
people. The future of Iraq will be determined by a political
accommodation by the people in Iraq, which will result in a political
resolution that will be supported by the Iraqi people, its regional
neighbors, and other powers, including the United States.
After 4 years in Iraq, America's policy there should be designed to
gradually pull the United States further away from the day-to-day
responsibilities, those day-to-day responsibilities of defending Iraq
and de facto governance of Iraq, and turning over those
responsibilities to the Iraqis, not escalating--not escalating--our
military involvement in Iraq.
Today, we are headed in the opposite direction. I will not support
sustaining a flawed and failing policy in Iraq.
We are now in our fifth year in an active war in Iraq. Iraq is more
dangerous today than at any time in the last 4 years. And--puzzling--
the administration says, we are making real progress in Iraq. So if we
are making real progress in Iraq, then why are we putting more and more
American combat troops into Iraq at the same time our allies are
leaving or have already left?
The President's strategy is taking America deeper and deeper into
this quagmire, with no exit strategy.
In January, we were told that 21,500 more U.S. troops would be sent
to Iraq. This month, we learned that as many as 7,000 more U.S. troops,
in addition to the 21,500, would be sent to Iraq. The Congressional
Budget Office has estimated that the President's recent decision to
escalate our military involvement could require as many as 48,000
additional U.S. troops in Iraq.
In January, the administration said progress on the Iraq war would be
measurable by this summer. We have heard that at 6-month intervals for
the last 2 years in oversight committee hearings. But now we are being
told that additional troops could be required in Iraq well into next
year.
This strategy to deepen America's military involvement in Iraq will
not bring a resolution in Iraq. It will only continue to undermine
America's standing in Iraq and the Middle East, complicating and
limiting our diplomatic options, and doing further damage to our
military. And we continue to finance and build the most powerful and
unaccountable mercenary armies in history, like Blackwater.
We cannot continue down a path that is destroying our military and
continuing to place our men and women in uniform in Iraq in the middle
of a civil war.
In February, the Chairman of the Joint Chiefs of Staff, General Peter
Pace, reported to Congress that there is now--his word--a
``significant'' risk that our military will not be able to respond to
an emerging crisis in another part of the world. Why did he say that?
It is because we are overburdened, overstretched. We are breaking our
force structure--third and fourth tours.
Recently, the inspector general of the Defense Department issued a
report on our National Guard. Our National Guard--our Army National
Guard in America is broken. The Chief of Staff of the Army, General
Schoomaker, has made similar, recent comments in open testimony before
the Senate Armed Services Committee.
It is now time for the Congress to step forward and establish
responsible boundaries and conditions for our continued military
involvement in Iraq. That is our responsibility. Need I remind our
colleagues in this body, the

[[Page 7733]]

Congress of the United States is a coequal branch of Government with
the President of the United States? We not only have moral obligations
but we have constitutional responsibilities.
To hear some of my colleagues say we should dispense with this
``frivolous'' debate because the President has threatened a veto--what
a waste of our time--if you logically follow that through, why do we
need a Congress? Why don't we let the President make all the choices,
make all the decisions? There are some, I suspect, in this
administration who would like that, some in this country would like
that. But we tried a monarchy once. It is not suited to America. There
are separations of power. Of course there are. But there are three
coequal branches of Government.
It is now time for the Congress to step forward, after a disastrous 4
years in Iraq. The language in the Senate supplemental bill does this
in a responsible way. The Senate language does not cut off funds. It
does not impose a precipitous withdrawal of troops from Iraq. This
language establishes a limited U.S. military mission in Iraq:
counterterrorism, training Iraqi forces, and protecting U.S. personnel.
That is not new. We have heard that from this administration over the
last 4 years. This was not dreamed up. This idea that somehow you do
not support the troops if you do not continue, in a lemming-like way,
to accept whatever this administration's policy is wrong. That is what
is wrong, and that is dangerous.
This language establishes a limited U.S. military mission in Iraq
that focuses on the things we should be doing, we can be doing. This
new and responsible mission would pull our troops out of the middle of
Iraq's civil war. Is that wrong? Is there something wrong with that--
asking these young men and women to put their lives on the line in the
middle of a civil war in Baghdad, kicking down doors, with a bull's eye
on their back--to pull them out of that? Is that wrong? Does that
somehow display a cavalier attitude toward the support of our troops? I
think not. I think just the opposite.
There is a timeline in the Senate language. But it does not establish
a binding date for U.S. withdrawal from Iraq. Let's get that clear. It
would establish the goal--those are the terms, goal--a goal that U.S.
forces not involved in this more limited military mission be redeployed
by March 2008. Is there something wrong with that? That means March of
2008 is 5 years we will have been there--5 years. We will have done
significant damage to our Marines and our Army and our National Guard
by then.
We have misunderstood, misread, misplanned, and mismanaged our
honorable intentions in Iraq with an arrogant self-delusion reminiscent
of Vietnam. Honorable intentions are not policies or plans or
responsible. It may take many years before there is a cohesive
political center in Iraq. America's options on this point have always
been limited.
I support the President's decision to initiate a new diplomatic
strategy and support a regional diplomatic process on the future of
Iraq that began on March 10 at the regional security conference in
Baghdad. But the President must devote his attention to foster those
efforts. As the Baker-Hamilton report made clear, we must develop a
regional diplomatic strategy to achieve stability in Iraq.
The PRESIDING OFFICER. The Senator's time has expired.
Mr. HAGEL. Mr. President, I ask for 60 seconds to conclude my
remarks.
Mrs. MURRAY. Mr. President, I yield the Senator 60 seconds.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. HAGEL. America finds itself in a dangerous and isolated position
in the world. We are perceived as a nation at war with Muslims. This
debilitating and dangerous perception must be reversed as the world
seeks a new center of gravity for this new century. The United States
must begin planning for a phased troop withdrawal from Iraq. The cost
of combat in Iraq in terms of American lives, dollars, and world
standing has been devastating for our country.
The American people are demanding that we develop a bipartisan
consensus for an honorable and responsible exit strategy from Iraq. If
we fail to build a bipartisan foundation for an exit strategy, America
will pay a high price for this blunder--one we will have difficulty
recovering from in the years ahead.
Our actions today in the Congress begin this effort.
Mr. President, I thank you and yield the floor.
The PRESIDING OFFICER. The Senator from Mississippi.
Mr. COCHRAN. Mr. President, I am pleased to yield to the
distinguished Senator from South Dakota, Mr. Thune, 10 minutes.
The PRESIDING OFFICER. The Senator from South Dakota.
Mr. THUNE. Mr. President, I thank the Senator from Mississippi for
yielding.
I rise in support of his amendment and also note that Friday of last
week, March 23, was, in my view, a sad day because it was on that day
the House of Representatives voted to usurp the responsibilities of the
President of the United States as Commander in Chief of the Armed
Forces. Unfortunately, the Democratic majority in the Senate, rather
than reject this ill-conceived and dangerous line of thinking, has
chosen to endorse it.
I believe the phased redeployment language in the supplemental is
wrong. Today, I ask my colleagues to stop and think about the long-term
effects the redeployment language is going to have. This language will
do more than redeploy troops. It will set a precedent that Congress may
interject itself into the military chain of command. This is not a
slippery slope, it is a straight drop to the bottom.
War requires one Commander in Chief. Every civilization, from Greece
to the British Empire, has understood this basic premise, as did our
Founders.
Wars are unpredictable, and they are fluid. Success in any military
conflict requires energy, speed, flexibility, and adaptability. I
thought the Senate understood this, particularly when we unanimously
confirmed General Petraeus to be the commander of forces in Iraq.
What are our commanders in the field supposed to think? What orders
are they to comply with? Are they going to conduct the surge or are
they going to reorganize their forces to comply with redeploying the
troops? Should we expect our commanders to read their operations orders
or congressional conference reports to determine their priorities?
This effort, led by the Democratic majority, is simply a bad idea,
and I hope my colleagues can see that the short-term gain they seek on
this bill will lead to long-term consequences for the military.
The other reason I oppose the redeployment language is it confuses
strategic policy with foreign policy. Both have the same goal: victory
in Iraq and to bring our troops home. However, that goal is arrived at
by very different means.
Our strategic policy is set by the President and by our military
commanders. Conversely, our foreign policy is set by their diplomatic
counterparts at the State Department. That is why interagency
cooperation is important now more than ever. In order for the U.S.
Government to effectively employ the elements of the national power,
Congress must resist the temptation to intervene and ultimately make
matters worse.
Redeploying our troops from Iraq on a published timeline is not going
to end the war on terrorism. To me, the redeployment language in this
bill is the strategic equivalent of the Maginot line. In World War II,
the French built a wall and the Germans went around it. If we publish
our deployment timeline, then Shia and Sunni insurgents, al-Qaida in
Iraq, and Iranian instigators will all simply wait for us to leave and
then begin their efforts to undo all we have worked for over the past 4
to 5 years.
The conflict we are fighting today is unlike any other we have
fought. That is why I find the Democratic talking points about how the
war in Iraq has lasted longer than this conflict or that

[[Page 7734]]

conflict to be so disingenuous. They are right on one point: This is
not World War II. It is not Vietnam. It is Iraq. It is the war on
terror, and our efforts in Iraq cannot be looked at in a vacuum.
Iraq is a front in the war on terror, but it is not the front in the
war on terror, because this war has no front. If you want to know where
the front is in the war on terror, then get in your car and drive 10
minutes over to the Pentagon. That is a front. Go to New York and look
at the gaping holes in the ground. That is a front. Or visit the field
in Pennsylvania where a group of brave passengers forced a plane to the
ground at the expense of their own lives. That is a front. If any of my
colleagues are still wondering where the front is on the war on terror,
you are standing on it.
In order to deal with this phenomenon, in almost every sector of U.S.
security policy we are trying to push America's enemies further away.
Port security is a perfect example. We are putting inspectors in
foreign ports to inspect cargo before it comes to the United States,
and we are allowing the Coast Guard to inspect ships further out at
sea, all for the purpose of putting the enemy farther away from us. Yet
in this instance, this bill seems to invite our enemies into the very
heart of our country. To me, it simply does not make sense.
Our colleagues on the other side also like to note there were no
Iraqis on the planes that attacked us on September 11. Well, there
weren't any Afghanis either. In fact, if we follow this line of
thinking to its logical conclusion about who was on those planes, then
perhaps this Congress should change the 2002 authorization for the use
of force and allow the President to attack Saudi Arabia, because the
majority of the hijackers were Saudis.
Of course, such a line of thinking is ridiculous because this
conflict is not about national identity, it is about ideology. It is
about good versus evil, right versus wrong, freedom versus tyranny, and
hope versus cynicism.
I will concede this administration has not handled Iraq as well as it
could have, but I also believe this debate is more about our national
identity or resolve than our involvement in Iraq.
I still believe that America, for all its faults, is a shining city
on a hill, that our greatest export should be freedom and our greatest
asset being people and ideas; that we are a beacon of hope to those who
toil in the darkness of tyranny and oppression. I also believe if we
pass this legislation, we are saying to the world the United States is
committed to defending freedom only when it is convenient or popular.
That is not the America I know. It is not the America my father, a
World War II fighter pilot, taught me about or the country we should
hope to become.
It is my sincere hope my colleagues will vote to support Senator
Cochran's amendment to remove the troop withdrawal language from this
bill. If we do not, I believe we will be doing more harm than good,
despite the intentions to the contrary.
Mr. President, I yield the remainder of my time.
The PRESIDING OFFICER. The Senator from Illinois is recognized.
Mr. OBAMA. Mr. President, we gather on another occasion to bring the
Iraq war to its fateful end. While this effort may fall short again, we
will continue to try to do what is in the national security of our
country.
The Iraq war should never have been authorized. I was proud to say so
in 2002, but I am even more proud of the plan I have offered that calls
for combat to begin redeploying on May 1 with the goal of all combat
troops out of Iraq by March 2008.
We also must make sure that we are not as careless getting out of
this war as we were getting in, and that is why this withdrawal should
be gradual, and keep some U.S. troops in the region to prevent a wider
war in the region and go after al-Qaida and other terrorists.
Those who would have us continue this war in perpetuity like to say
that this is a matter of resolve on behalf of the American people. But
the American people have been extraordinarily resolved. They have seen
their sons and daughters killed or wounded on the streets of Fallujah.
They have spent hundreds of billions of dollars on this effort--money
that could have been devoted to strengthening our homeland security and
our competitive standing as a nation.
No, it has not been a failure of resolve that has led us to this
chaos, but a failure of strategy--a strategy that has only strengthened
Iran's strategic position; increased threats posed by terrorist
organizations; reduced U.S. credibility and influence around the world;
and placed Israel and other nations friendly to the United States in
the region in greater peril.
Iraq has been a failure of strategy and that strategy must change. It
is time to bring a responsible end to this conflict because there is no
military solution to this war.
Before we send our best off to battle in the future, we must remember
what led us to this day and learn from the principles that follow.
We must remember that ideology is not a foreign policy. We must not
embark on war based on untested theories, political agendas or wishful
thinking that have little basis in fact or reality. We must focus our
efforts on the threats we know exist, and we must evaluate those
threats with sound intelligence that is never manipulated for political
reasons again.
We must remember that the cost of going it alone is immense. It is a
choice we sometimes have to make, but one that must be made rarely and
always reluctantly.
We must remember that planning for peace is just as critical as
planning for war. Iraq was not just a failure of conception, but a
failure of execution. So when a conflict does arise that requires our
involvement, we must try to understand that country's history, its
politics, its ethnic and religious divisions before our troops ever set
foot on its soil.
We must understand that setting up ballot boxes does not
automatically create a democracy. Real freedom and real stability come
from doing the hard work of helping to build a strong police force, and
a legitimate government, and ensuring that people have food, and water,
and electricity, and basic services. And we must be honest about how
much of that we can do ourselves and how much must come from the people
themselves.
And finally, we must remember that when we send our service men and
women to war, we make sure we have given them the training they need,
and the equipment that will keep them safe, and a mission they can
accomplish. And when our troops come home, it is our most solemn
responsibility to make sure they come home to the services, and the
benefits, and the care they deserve.
The cause to defend our country and our interests around the world
will never end. It will be one of our country's constant threads
through the ages. It is our sacred trust to ensure that those moments,
those times of great struggle, are the right ones. And when they are
not, we must continue to try and end those conflicts for the sake of
our country, our service men and women, and the ideals we hold dear.
For these reasons, I strongly support the provision in the
supplemental bill that calls for the withdrawal of American combat
troops by March 31, 2008, and I will oppose any efforts to strip that
provision from the bill.
Mr. BROWNBACK. Mr. President, we have arrived at a key moment for
U.S. policy in Iraq. History recalls Operations Desert Shield and Storm
in 1990 and 1991. It recalls the no-fly zones we maintained in the
1990s. It recalls the Iraq Liberation Act of 1998. It recalls our
sanctions against Saddam Hussein. And when history records Operation
Iraqi Freedom, it will remember whether Congress provided the direction
necessary to complete the mission or chose to cut it off prematurely.
History win judge today's vote.
The American people await this vote. The Iraqi people await this
vote. Al-Qaida awaits this vote. The surge is now underway. I did not
support the surge, but I hope it works. The first reports have been
encouraging, but the fog of war remains thick. Over the next

[[Page 7735]]

few months, we will be able to assess whether the surge is working or
not. Now is hardly the time to set a date for retreat.
I am not saying we should have an open-ended commitment, but I am
saying that our mission over there--and not politics over here--should
drive our policy. I know many of my colleagues believe we have nothing
to gain by staying. But I believe there is a way forward.
Everyone agrees that a political solution is crucial to success. And
it turns out that the political solution Iraqis ought to pursue is the
most American of all: Federalism.
Thankfully, in the early days in America, we did not have the kind of
factional violence and terrorism we have seen in Iraq. But it certainly
included rivalries between the colonies and different visions of the
future.
The great solution chosen by the founding fathers was federalism--
something embodied by the Senate itself. An Iraq with several federal
regions, with Baghdad as a federal capital represents the best chance
for Iraq to achieve stability.
If the surge works, federalism can provide the framework necessary to
stabilize Iraq over the long term. If the surge fails, and Iraq's
sectarian violence deepens, a federal Iraq will be the only choice
available to separate the warring factions while keeping Iraq from
breaking apart--something that we cannot allow to occur in such a vital
region.
I believe that instead of giving the terrorists a reason to be
hopeful and sending mixed signals to our forces in the field, we should
be talking about the possibility of a federal Iraq. The Iraqi
Constitution calls for it. The Iraqi Parliament passed a law supporting
it. The Kurdish region proves that it can be successful. Yes, a federal
Iraq may require the presence of U.S. forces for some period of time.
But as we have seen in Bosnia, our deployments in support of a
political solution endorsed by all sides can bring lasting peace and a
chance for a brighter future.
For this reason, I urge my colleagues to vote in favor of the Cochran
amendment. We need to stop talking about how to retreat and start
talking about winning in Iraq. A conversation about a federal Iraq is
the best way for the Senate to contribute to success in Iraq.
Mr. KENNEDY. Mr. President, I oppose the Republican effort to strike
the critical section of this bill requiring our troops in Iraq to begin
to come home in 120 days and that we finish the job in 2008.
This is a defining moment for our country. The American people are
watching, and the world is watching. The issue is clear. Will we stand
with our soldiers by ending their misguided mission and beginning to
bring them home? Or will we stand with the President and keep our
soldiers trapped in Iraq's civil war?
History will judge us. We can either continue down the President's
perilous path or insist on a new direction. If we don't change course,
we know what lies ahead--more American casualties, more deaths, more
destruction, greater loss of respect for America in the wider world,
and greater danger to our national security. A new strategy that makes
Iraqis less reliant on our military is the best way forward.
More of the same misguided policy will result in more of the same
tragedy for our military. We need a realistic strategy, and we need it
now. Iraq is the overarching issue of our time. Our national security
itself is at stake.
In this debate, we hear echoes of the past: We are accused of cutting
and running. We are accused of giving comfort to the enemy. We are told
we need to be patient and to accept the importance of staying the
course. We are told we have to give the latest escalation a chance to
succeed.
Listen to this comment from a high-ranking American official:

It became clear that if we were prepared to stay the
course, we could help to lay the cornerstone for a diverse
and independent Asia . . . If we faltered, the forces of
chaos would scent victory and decades of strife and
aggression would stretch endlessly before us. The choice was
clear. We would stay the course. And we shall stay the
course.

That is not President Bush speaking. It is President Lyndon Johnson
40 years ago, ordering a 100,000 more American soldiers to Vietnam.
Here is another quotation:

The big problem is to get territory and to keep it. You can
get it today and it will be gone next week. That is the
problem. You have to have enough people to clear it . . . and
enough people to preserve what you have done.

That is not President Bush on the need for more forces in Iraq. It is
President Johnson in 1966 as he doubled our military presence in
Vietnam.
Here is yet another familiar argument.

We are not going to tuck our tail and run . . .

Those are not President Bush's words. Those are the words of
President Johnson in 1966.
Here is another familiar argument:

We are being steadfast in Vietnam because we don't want the
next generation of Americans to have to fight another war.

That is not President Bush, but it sure sounds like him. It is Vice
President Agnew in December 1969.
Here is another familiar argument being used in the Iraq debate by
the stay-the-course Republicans that we've heard before:

We think we can bring peace. We will bring peace. The peace
that we will be able to achieve will be due to the fact that
Americans, when it really counted, did not buckle, did not
run away, but stood fast . . .

That is not President Bush. It is President Nixon in September 1969.
And here is another:

If, when the chips are down, the world's most powerful
nation, the United States of America, acts like a pitiful,
helpless giant, the forces of totalitarianism and anarchy
will threaten free nations and free institutions throughout
the world.

That's not President Bush. Those are the words of President Nixon in
April of 1970.
These words from the past resonate painfully in today's debate on
Iraq. In Vietnam, the White House grew increasingly obsessed with
victory, and increasingly divorced from the will of the people and any
rational policy. The Department of Defense kept assuring us that each
new escalation in Vietnam would be the last. We were told to be
steadfast, to stay the course, and not to retreat. There was no
military solution to that war. But we kept trying to find one anyway.
In the end, 58,000 Americans died in the search for it.
Echoes of that disaster are all around us today. Iraq is George
Bush's Vietnam.
But we have heard all that in the current debate about Iraq as well.
We have heard for years that the administration has a plan for success,
that progress is just around the corner. But the plans for success keep
getting tossed aside for new plans. The administration has benchmarks
to measure success, but there are no consequences when the benchmarks
are not met. The timelines for progress keep getting extended. We have
turned so many corners that we have ended up back where we started--
trying to control Baghdad.
It is time to change direction. Mr. President, 3,200 members of our
forces have been killed, and more than 24,000 have been wounded. The
casualties keep mounting. The violence continues to spiral upward. Our
troops are in the impossible position of trying to stabilize a country
at war with itself.
The recent National Intelligence Estimate confirms the nightmare
scenario unfolding for our troops. Iraq is sliding deeper into the
abyss of civil war, and our brave men and women are caught in the
middle of it. Prospects for halting the sectarian violence are bleak.
Greater chaos and anarchy are looming ahead. Needless additional U.S.
causalities are inevitable.
The facts speak for themselves. According to the United Nations,
nearly 35,000 civilians were violently killed in Iraq last year. Most
were killed in Baghdad, where ``unidentified bodies killed execution-
style are found in large numbers daily.''
More than 2 million refugees have fled the violence in Iraq, and
another 1.8 million have been displaced internally.
Our military should not be caught in the middle of this quagmire.
Only a political solution can solve Iraq's problems.

[[Page 7736]]

General Casey, in his testimony to the Senate Armed Services
Committee in June 2005, called for a political solution. He said:

If you look back historically at how insurgencies have been
defeated, they have been defeated when the insurgents saw
their options as better protected in the political process
and their prospects for economic advancement can be better
protected by the political process than fighting for them.
And that's the essential element here.

Last August, General Abizaid spoke about the need for a political
solution. He said:

Our troops are the best equipped, the best trained, the
best led in the world. And I am enormously proud of them, and
I have the utmost confidence in their ability to handle any
mission. Yet, sectarian violence is worse than ever in
Baghdad in particular. And I wonder about the validity of a
strategy that says that less capable troops that are not as
well equipped, trained and led as the best troops in the
world can handle the security of this country if the upswing
in violence has occurred despite the presence of the best
troops in the world. It doesn't give me a lot of confidence
in our underlying strategy. And it suggests to me that what
we need is a political rather than a military solution.

General Petraeus, the new commander of our forces in Iraq, recently
emphasized as well that there is ``no military solution'' in Iraq. But
no one in the administration has been able to clearly articulate a
political solution or how it can take hold in the midst of this chaos.
Instead of giving the Iraqis a necessary incentive to get their
political house in order by beginning an orderly redeployment of our
troops out of Iraq, the President stubbornly insists on sending more
and more American troops into Iraq's civil war. Escalation didn't work
in Vietnam and it won't work in Iraq either.
Even worse, the administration has not been honest about the number
of troops the President plans to send to Iraq for the surge.
On January 10, he announced that he had committed ``more than
20,000'' additional troops to Iraq. Within a few days, we were told the
number was 21,500.
The Congressional Budget Office estimated that it would be far higher
as much as 35,000 to 48,000 troops when support troops are included.
On February 6, I asked General Pace and Secretary Gates for the best
military estimate as to the actual size of the escalation. Their answer
was an additional 10 to 15 percent. General Pace said, ``you're going
to need no more than another 2,000, 2,500 troops on the ground.''
Nine days later, the number more than doubled. General Schoomaker
told the Armed Services Committee his estimate was somewhere between
5,000 and 6,000 troops when he included imbedded trainers. Then, on
March 6 Deputy Secretary of Defense Gordon England told a House
committee ``about 4,000, maybe as many as 7,000.''
On March 7, at the request of General Petraeus, Secretary Gates
authorized an additional 2,200 military police troops.
We still don't have an accurate total for the size of this
escalation. The administration refuses to speak with clarity and
candor.
Since the current surge began, Shiite militias in Baghdad may be
lying low, but violence has increased elsewhere in Iraq.
In Diyala province, in just 3 months, American casualties have
exceeded the number for the entire year of 2006.
In January this year, 83 American soldiers were killed, compared to
62 in the same month a year ago.
Eighty more American soldiers were killed in February this year. In
the same month last year, we lost 55 soldiers.
In March, we have already lost 76 soldiers, compared to 31 in March
2006.
Continuing our open-ended commitment to stay in Iraq will not bring
victory. It will not stop the violence, and it will not protect our
national security.
The administration has outlined military, economic, and political
benchmarks to measure success. But it has not given any timeline to
achieve them, and it has not specified any consequences if the
benchmarks are not met.
This same administration supported timelines for every Iraqi election
and for drafting the constitution. Yet it remains emphatically opposed
to any timeline for the redeployment of our military.
The American people have been patient. But America has now been in
Iraq longer than it took us to win World War II. Instead of progress,
we continue to see unacceptably high levels of violence, death, and
destruction.
We are putting too much strain on our Army, especially the Army
National Guard. Our forces are overextended. Many soldiers are now on
their third rotation. In the long run, we can't protect our Army if we
don't end the war.
Our troops have done their part. They have served with great courage.
We are proud of their service, and we are ready to welcome them home.
It is time to change course. It is time to insist that Iraqis step up
to the plate and take responsibility for their own future. It is time
to begin to redeploy our troops out of Iraq. It is time to put the
Iraqis on notice that our military will no longer be a permanent crutch
for them to lean on and avoid their responsibility to achieve a
political solution. As General Abizaid told the Armed Services
Committee last November:

I believe that more American forces prevent the Iraqis from
doing more, from taking more responsibility for their own
future.

The only practical way to accomplish the change that is long overdue
is for American combat troops to begin to come home.
Those of us who opposed the war are used to the administration's
attacks when we disagree with their wrongheaded policy. We have come to
expect that.
They have questioned our patriotism and called us defeatists.
When we challenged the President's misguided policy, they accused us
of having political motives and being partisan. But all of their
criticisms have a hollow ring, because the administration has been so
consistently wrong about the war in Iraq.
They were wrong about the link between al-Qaida and Saddam Hussein.
They were wrong about Saddam Hussein's possession of weapons of mass
destruction. They were wrong about America being greeted as liberators.
They were wrong about the insurgency being in its last throes. And they
are wrong to deny that Iraq is in a civil war. The American people are
far ahead of the administration. For all of us who oppose this
misguided war, our goals have always been clear: to protect the lives
of our soldiers and to protect our national security.
We have an obligation to stand up for our troops and stand up to our
President when he stubbornly refuses to change course in Iraq.
This legislation will do that. It will change the mission of our
military away from combat and require the President to begin to
redeploy American combat troops out of Iraq in 4 months. The target
date for the completion of the redeployment is March 2008, 1 year from
now. A limited number of troops would remain in Iraq after that, to
train and equip the Iraqi Security Forces, to conduct counter-terrorism
operations, and to guarantee the safety of our soldiers.
Legislation is clearly necessary to give the Iraqi Government enough
incentive to step up to the plate, work out its political differences,
and take responsibility for Iraq's future.
Our proposal is consistent with the bipartisan Iraq Study Group's
findings. It is also consistent with the wishes of the American people,
who want most of our troops home within a year. How much clearer does
it have to be before Republicans in Congress and the President finally
respond to the voices of the American people? We are meeting our
responsibilities by changing the mission of our military. We are not
micromanaging the war.
Many of us oppose the war, but all of us support our troops. We don't
want to keep sending more and more of them into the middle of a civil
war. Under no circumstances do we want them to go to war without proper
armor and equipment. Our troops deserve better. Their families and
loved ones deserve better.
For the sake of our men and women in uniform in Iraq and the American

[[Page 7737]]

people, it is time for us to take a stand. We need to adopt a new
strategy. We need to make clear to the Iraqi Government that the
mission of our troops must change and that we have a clear timeframe
for their departure from Iraq.
The Senate will fail our troops unless we vote to change course and
begin to bring our soldiers home.
At the end of this debate, the American people will know where each
of us stands. On our side of the aisle, we stand with the American
people. The voters told us in November to change course and begin to
bring our troops home, and that is what we want to do.
We stand with our troops. We and we alone are the ones insisting on a
policy worthy of their courage and sacrifice.
We stand for protecting America's national security. The war in Iraq
has been a disaster from the start. It has made America more hated in
the world. It has made it harder to win the war against terrorism. It
has made it harder to work with other nations on every issue.
Peace and progress in Iraq must be earned by Iraqis and their
neighbors.
We must no longer send our brave soldiers to an uncertain fate on the
streets of Baghdad.
We must begin to bring them home, to the hero's welcome they have
surely earned.
Mr. FEINGOLD. Mr. President, I strongly oppose the Cochran amendment,
which would strike language in the bill that takes a significant step
toward ending our involvement in the war in Iraq.
The language I am referring to won the support of 48 Senators just a
few weeks ago. I voted for it then and will vote to retain it today.
While it does not go as far or as fast as I would like, it would
effectively end the President's misguided policies in Iraq by
terminating, within 120 days, the current open-ended military mission
in Iraq. At that point, U.S. troops could remain in Iraq for three
specified, narrow purposes. The remainder of our troops would be
redeployed. This provision is binding and it would bring to an end our
current involvement in perhaps the greatest foreign policy mistake in
our country's history.
Some of my colleagues continue to argue that Congress should defer to
the Commander in Chief when it comes to Iraq, that we should give him
the opportunity to change course in Iraq, or that we should allow his
escalation plan the chance to succeed. Those arguments ignore our
congressional responsibilities. Congress authorized this war and it is
in our power to bring it to a close. More importantly, we have not just
the power but the responsibility to end a war that is draining vital
national security resources in pursuit of a goal that cannot be
achieved militarily. The political problems that are driving much of
the insurgency and sectarian strife in Iraq are tragic and important.
They require the attention of U.S. policymakers. They do not require in
fact, they cannot be solved by a massive and indefinite U.S. military
presence in Iraq. Our troops continue to perform heroically in Iraq but
there is no military solution to Iraq's problems.
Some of my colleagues raise the specter of dire consequences if we
redeploy U.S. forces from Iraq. That is precisely why we need a
strategic approach to redeployment, one that addresses ongoing
instability and other threats with our intelligence, diplomatic,
economic and, in a limited manner, military capabilities. Not only is
the continuation of this war not going to end sectarian and insurgent
violence, it puts off the day when we develop a comprehensive strategy
for Iraq that is sustainable and fits squarely within the larger
struggle of fighting al-Qaida.
As long as the President's policies continue, our troops will
continue to put their lives on the line, our constituents will continue
putting billions of their dollars into this war, our military readiness
will continue to erode, our Guard and Reserve members will continue to
face heavy burdens, and our ability to respond to an array of national
security challenges will continue to suffer. From Somalia to
Afghanistan to the ongoing fight against al-Qaida, we face threats and
challenges that require serious attention and resources. Right now, far
too much of both are being spent on a single country. It is this
single-minded and self-defeating policy that needs to end, and it is up
to Congress to do so.
Time and again, the President has made it clear that nothing not the
wishes of the American people, not the advice of military and foreign
policy experts, not the concerns of members of both parties will
dissuade him from pursuing policies in Iraq that are not working. Faced
with a clear mandate from the voters last November, he stalled for
time, before announcing not just a continuation but an escalation of
his policies. Congress cannot wait for the President to change course
we need to change the course ourselves.
The provision that Senator Cochran seeks to strike represents a
change of course. It requires redeployment of our troops while
recognizing that the U.S. has an ongoing role to play in addressing the
terrorist threat in Iraq. While Iraq was not a hot-bed of terrorism
before the President led us to war in that country, al-Qaida and its
allies are trying to use the anger and frustrations unleashed by that
war to their advantage. Like Afghanistan and Somalia, Iraq will need to
be closely monitored to ensure that it does not become a failed state
and breeding ground for terrorism. And we must be prepared to pursue
targeted missions to take out terrorists. But maintaining 140,000 U.S.
troops in Iraq is not the way to defeat al-Qaida. And military
operations of any size will only succeed if they are combined with
other measures including diplomatic, economic and intelligence measures
as part of a comprehensive strategy for defeating the terrorists who
threaten our country. Al-Qaida is not a one-country franchise it is a
global threat that requires a global response.
Mr. SPECTER. Mr. President, I have sought recognition to address the
amendment offered by Senator Cochran. The Senate finds itself in the
same position it was in just 2 weeks ago, when it considered an
amendment offered by the majority leader, Senator Reid. Senate
amendment No. 643, offered by the Senior Senator from Mississippi, who
is the ranking member on the Appropriations Committee, would strike the
language that is essentially that of S. J. Res. 9, which the Senate
rejected on March 15, 2007. I draw to the attention of my colleagues my
statement in the Record of March 15, 2007, at page 53166.
As I stated 2 weeks ago, I would be prepared to cross party lines, as
I have done in the past when I thought it warranted, if I agreed with
the thrust of the resolution. Seven Senators of the minority joined
with the majority in voting for cloture several weeks ago to move ahead
with the debate and try to come to a resolution on the Iraqi issue. I
was one of the seven. I would not hesitate to do so again if I agreed,
but I cannot agree with the language requiring that not later than 120
days after enactment to have phased redeployment of U.S. forces, with
the goal of redeploying by March 31, 2008, all U.S. combat forces in
Iraq.
The thrust of the language in the bill, however, is to leave Iraq in
a year, something that will ensure defeat--as setting a timetable
simply enables our opponents to wait us out.
I think beyond that, the idea of having the Congress of the United
States micromanage the war is simply not realistic, and perhaps it may
even be unlawful. I note in the case of Fleming v. Page, in 1850, the
Supreme Court said:

As Commander in Chief, he is authorized to direct the
movements of the naval and military forces placed by law at
his command, and to employ them in the manner he may deem
most effectual to harass and conquer and subdue the enemy.

That is a fairly forceful statement that it is not up to the Congress
to micromanage a war but that it is up to the Commander in Chief, the
President of the United States. That is not to say that the Congress
does not have authority in the premises. I continue to seek hearings by
the Judiciary Committee on the relative powers, authority of the
Congress under the Constitution, with our power of the purse and

[[Page 7738]]

our power to maintain and direct armies, contrasted with the
President's power as Commander in Chief.
I believe, however, it is impractical and of questionable legal
authority for us to seek to micromanage the war if the consequences of
giving an order to the President would just enable the enemy to wait us
out. That is not to say that at sometime in the future it may be
necessary, and there may be a considered joint judgment by the
Congress, to use the extraordinary power of the purse to implement our
constitutional authority to maintain armies to effectuate a withdrawal.
I had one additional thought to the substance of my floor statement
of March 15. We may find victory, unexpectedly, as Winston Churchill
said in a June 18, 1940 speech, when he was commenting on World War I:

During the first four years of the last war the Allies
experienced nothing but disaster and disappointment. That was
our constant fear: one blow after another, terrible losses,
frightful dangers. Everything miscarried. And yet at the end
of those four years the morale of the Allies was higher than
that of the Germans, who had moved from one aggressive
triumph to another, and who stood everywhere triumphant
invaders of the lands into which they had broken. During that
war we repeatedly asked ourselves the question: How are we
going to win? And no one was able ever to answer it with much
precision, until at the end, quite suddenly, quite
unexpectedly, our terrible foe collapsed before us, and we
were so glutted with victory that in our folly we threw it
away.

Churchill's words suggest that if we maintain our determination we
can win although the path to victory, at the moment, is very uncertain.
Furthermore, the President has issued a veto threat should
legislation contain the provision Senator Cochran's amendment would
strike. Such an action would deprive funds vital to U.S. troops and the
operations of the Department of Defense.
Mr. LEVIN. Mr. President, I thank the Senator from Washington for her
leadership and floor management.
The Cochran amendment would strike the heart of the provision
relating to Iraq from this supplemental appropriations bill. The main
point of our provision is a requirement that the President commence a
reduction of U.S. forces from Iraq not later than 120 days after
enactment. Not included in the reduction would be those forces that are
essential for force protection, training and equipping Iraqi forces,
and conducting targeted counterterrorism operations.
This language is essential because nothing else has been successful
in convincing the Iraqis that they have to take responsibility for
their own country and that they must make the political compromises
that are necessary to end the sectarian violence and defeat the
insurgency in Iraq. Only when the Iraqis realize the mission of U.S.
forces is going to change and that we are going to reduce the number of
U.S. forces in Iraq will they realize we cannot save them from
themselves, and that they need to act to meet the commitments they made
to themselves and to us.
Commitments are only words unless they are fulfilled. Last month,
during our debate on Iraq, I put in the Record Secretary Rice's letter
to me of January 2007 which had an enclosure of the listing of the
political commitments and the timelines the Iraqis themselves had
established. Virtually none of those commitments has been met, despite
the fact most of them were to have been fulfilled last year, and all
but one were to have been accomplished prior to this month. They
committed themselves to approve a provincial elections law and they set
a date for a provincial elections law by October of 2006. They set a
date to approve militias and other armed formations by December 2006.
They set a date for the constitutional review committee to complete its
work by January 2007. They made a commitment to conduct a referendum on
constitutional amendments which was to have been accomplished by this
month. They violated every single one of those commitments.
We need to retain this language. We need to retain the language that
we begin to reduce the number of American forces in Iraq beginning in 4
months because that reduction is the action-forcing mechanism--the sign
to the Iraqi leaders we cannot save them from themselves, and their
future is in their hands, not our hands.
The most graphic demonstration of the importance of our provision is
the fact that even our senior leaders in this administration, while
opposing our position, have used the growing support for our position
to try to impress upon the Iraqi leaders they have to move promptly to
settle their differences and to meet their commitments.
Last month while in Baghdad, Secretary Rice used the restiveness in
Washington to emphasize to the Iraqi leaders the growth of American
frustration with the absence of a political settlement in Iraq. She
said she had ``made clear that some of the debate in Washington is
indicative of the concerns that the American people have about the
prospects for success'' if Iraq's leaders do not quickly take the steps
needed to ensure longer-term stability.
Ambassador Khalilzad, in a television interview on March 9, said the
debate in Congress:

Sends a message to the Iraqis that the patience of the
American people is running out. And--

He said, Ambassador Khalilzad said--

that is helpful to my diplomacy.

The Iraqi Study Group said:

The open-ended commitment of American forces does not
provide the Iraqi government with the incentive that it needs
to take political actions that give Iraq the best chance of
quelling sectarian violence. In the absence of such an
incentive--

The Iraq Study Group said--

in the absence of ending the open-ended commitment that has
been made to Iraq, the Iraqi government might continue to
delay taking those difficult actions.

I think perhaps General Casey said it best:

The longer U.S. forces continue to bear the main burden of
Iraq's security, it lengthens the time that the government of
Iraq has to take the hard decisions about reconciliation in
dealing with the militias.

General Casey had it right. Let us not sustain the Cochran amendment.
Let's keep this critically important action-forcing mechanism in the
bill where it will do some good to force those Iraqi leaders to finally
recognize their future is in their hands, not ours.
The PRESIDING OFFICER. The Senator from Mississippi is recognized.
Mr. COCHRAN. I yield 10 minutes to the distinguished Senator from
Connecticut, Mr. Lieberman.
Mr. LIEBERMAN. Mr. President, today the Senate approaches a decisive
turning point in the history of our engagement in Iraq, a moment that
will have repercussions not only for the future of that country but for
the security of our country as well.
The immediate question before us is direct. Should Congress impose a
deadline for the withdrawal of our troops from Iraq? To that question I
answer: No, no, no.
We all know the circumstances under which this vote is taking place.
The administration is politically weak. The war is politically
unpopular. It has never been easier to advocate a withdrawal. But I
cannot support it because I believe deeply that it would be wrong. Our
cause in Iraq remains just and necessary, and we continue to have the
prospect of achieving success there.
If passed, this legislation would order a withdrawal of American
troops from Iraq to begin in 120 days, regardless of conditions on the
ground, regardless of whether we are succeeding or failing, regardless
of the consequences for America's security, regardless of the
consequences for our allies in the region, and regardless of the
recommendations of the man we unanimously put in charge of our troops
there--GEN David Petraeus. In short, this withdrawal would be ordered
by this legislation regardless of reality.
This congressionally ordered withdrawal of our troops from Iraq would
essentially be giving up on our cause in Iraq just when our prospects
are picking up there. It would snatch defeat from the jaws of progress
in Iraq today--progress that is critically important to our success in
the larger war against terrorism.
What then are the arguments given to justify such an arbitrary order
to

[[Page 7739]]

our troops from this Congress so far away?
First, proponents of withdrawal keep returning to the proposition
that American soldiers shouldn't be policing a civil war. Surely my
colleagues don't mean to say the U.S. military has never or should
never police a civil war. That would certainly come as a surprise to
our soldiers who have been keeping the peace in Bosnia and Kosovo over
the past decade, dispatched there wisely and strongly under a
Democratic President with the support of Democrats in Congress.
Clearly, our military has policed civil wars in the past and will do so
and must do so in the future. So why do proponents of withdrawal from
Iraq keep insisting it shouldn't happen now? The answer has to do with
the way some people choose to characterize what is happening in Iraq.
When they suggest our soldiers are stuck in a civil war there, it
suggests the conflict has become hopeless, a pit of violence where
there are no heroes, only villains, and where our military cannot
possibly do any good. Is this the case? I think the facts suggest not.
There are more heroes by far than villains in Iraq today and, most of
all, there is the overwhelming majority of the Iraqi people who are the
innocent victims of violence and want nothing more than to live secure
and free lives.
Iraq has a government--a government freely elected by the people; a
government where every day Iraqis of every ethnicity and sectarian
identity come together. That is not a civil war. The Iraqi Government
has faults and weaknesses, to be sure, and we should be using every
instrument at our disposal to pressure its leaders to make better
choices. But there is a world of difference between the moderates who
compose the Iraqi Government and the extremists who seek to murder
them.
The image of Iraq as a country in which everyone is complicit in the
violence also overlooks something else. It overlooks the innocent
victims of that violence who are the majority. The truth is we are
confronted in Iraq today with a deliberated, calculated campaign of
murder of civilians, often on the basis of religious identity alone, by
insurgents and terrorists.
All of us should be able to unite around the proposition, therefore,
that we as Americans have a moral responsibility not to pick up and
walk away and turn our backs on the slaughter. Like the Serb death
squads that tried to ethnically cleanse Kosovo or Hutu extremists in
Rwanda, or the jingaweit today in Darfur, the sectarian violence we are
witnessing in Iraq is directed at the extermination of human beings on
the basis of nothing more than who they are.
It is an awful irony of this debate that many of the same people who
consistently and correctly call on the United States to do more to stop
the genocide in Darfur now demand we abandon the Iraqis and invite a
genocide there.
I know some believe the violence in Iraq is inevitable, the outgrowth
of ancient hatreds that exist outside the bounds of normal politics. We
heard those arguments before also. We heard them in the 1990s about
Yugoslavia and about Rwanda. Surely, from those conflicts, we should
know better than that now.
The wanton slaughter of innocent people that our soldiers are trying
to stop in Baghdad, and now with some success, is not the inevitable
product of ancient hatreds but the consequence of a deliberate,
calculated strategy by an identifiable group of perpetrators, first and
foremost al-Qaida. We know this because al-Qaida itself has said so.
Its leaders have stated openly that they have worked to foment hatred,
fear, and violence between Sunnis and Shiites, precisely because al-
Qaida knows it represents their best opportunity to overthrow the
elected Iraqi Government, to sow the seeds of chaos, to stamp out any
hope of Middle Eastern democracy, and, sadly, as this debate shows
today, to push the United States of America--the world's superpower,
the embodiment of the hopes and dreams of so many for freedom--to the
point of retreat from Iraq.
This is also why the notion expressed in the supplemental that we can
separate the fight against terrorism from the fight against sectarian
violence in Iraq simply defies reality. The fact is, the worst
sectarian violence in Iraq is being committed by al-Qaida and other
Islamist terrorists.
The biggest cause of the violence in Iraq is not the split between
the Sunnis and Shiites but a specific ideology--the ideology of Islamic
extremism--that is trying to exploit that divide for its own evil ends.
The success of that ideology is not inevitable. Thanks to General
Petraeus, his troops, and the new strategy, sectarian violence is down.
Maqtada al-Sadr has disappeared. The Mahdi army is splintering.
Displaced Iraqi families are returning to their homes.
Of course, we will not know for some time to what extent the new
strategy will succeed, but it is clear that, for the first time in a
long time, there is reason for cautious optimism about Iraq. Why would
we, at this moment, order a withdrawal of the very troops that are
bringing greater security and a cause for optimism?
Mr. President, the record of the past 2 months shows Prime Minister
Maliki has allowed and encouraged U.S. forces to sweep into Sadr City.
He has worked with General Petraeus to ensure that all of the Iraqi
Army units required by the new strategy are available. He has flown to
the heart of Al Anbar Province to meet with Sunni leaders. These
breakthroughs have happened not in spite of but because of the American
commitment to Iraq and because of the presence of General Petraeus and
his troops.
I ask my colleagues to consider what it will mean if Congress now
orders our troops to pull back from this battle, just at the moment
that they are beginning to succeed. Consider the consequences if we
knowingly and willingly withdraw our forces and abandon one of the few
states in the Middle East to have had free, competitive elections as an
alternative to extremism and violence.
I understand the frustration and anger and sheer sense of exhaustion
so many feel about Iraq. I am acutely aware of the enormous toll this
war has taken. But I ask those determined to order a withdrawal to
think carefully about the consequences, and not just geopolitical but
moral, for the United States. We cannot redeploy from our moral
responsibility in Iraq or in our foreign policy, more generally. It is
contrary to our traditions. It is contrary to our values. It is
contrary to our interests. Yet that is precisely what this Congress
will be calling for if we order our troops to withdraw now. That is
precisely what the Congress will be calling for if we order our troops
to withdraw from Iraq now, regardless of what is happening on the
ground.
I appeal to my colleagues, don't do this. Give General Petraeus and
his troops a chance to succeed for us in Iraq. Strike this language
from this bill.
I yield the floor.
The PRESIDING OFFICER. The Senator from Washington is recognized.
Mrs. MURRAY. How much time remains on both sides?
The PRESIDING OFFICER. The majority has 12\1/2\ minutes. The
Republicans have 13 minutes.
Mrs. MURRAY. Mr. President, I yield myself 2\1/2\ minutes.
We need to change course in Iraq. That is why I support the
supplemental bill now before the Senate and oppose the Cochran
amendment that is pending. This underlying bill finally sets a new
direction for our mission in Iraq. It begins to redeploy our troops,
and it helps us refocus our efforts on fighting and winning the war on
terror.
Mr. President, our troops have done everything we have asked them to
do. Now it is time to start bringing them home. It is time for the
Iraqi people and for the Iraqi Government to take responsibility for
their own country. We should not be sending more and more Americans
into the middle of a civil war. The conflict in Iraq is not going to be
solved by military force alone. It is going to require a political
solution among Iraqis. So this underlying bill sets benchmarks for the
Iraqi

[[Page 7740]]

Government on the types of progress that we all agree they ought to be
making. They should not be stricken from this by the Cochran amendment.
The President wants to commit more American servicemembers to an
open-ended conflict. This bill recognizes that we need a new strategy.
We need to do what the Iraqi Study Group and what many generals and
what the American people have called for. We need to redeploy our
troops. The bill says a redeployment should begin within 120 days, and
it sets the goal of having most U.S. forces out of Iraq by next March.
Importantly, this bill helps us take care of those who are injured
fighting for our country. It is time we focused our attention on those
men and women who have sacrificed so much, who have come home and have
endured the hardship we have seen at Walter Reed and other facilities
across this country. We need to make sure they get the resources they
need, and this bill does that.
I am pleased to support the underlying bill. I oppose the Cochran
amendment, and I support this bill because it sets a new direction for
our policy in Iraq and it provides important new support for our
servicemembers and veterans who are here at home.
I retain the remainder of our time.
The PRESIDING OFFICER. The Senator from Mississippi is recognized.
Mr. COCHRAN. Mr. President, I yield 8 minutes to the Senator from
Virginia, Mr. Warner.
The PRESIDING OFFICER. The Senator from Virginia is recognized.
Mr. WARNER. Mr. President, I thank my long-term friend, the
distinguished Senator from Mississippi. We came to the Senate together
some 29 years ago. I commend him for the leadership he has provided
throughout his many years and, particularly, on this coming vote, which
is most important--not just to the Senate but to the whole Congress and
to the people of the United States and to the world. I strongly support
the amendment of the Senator from Mississippi, Mr. Cochran.
Some many weeks ago, shortly after January 10, when the President
announced his new strategy for a surge, I was among those few voices on
this side that expressed concern about that initiative. I believed that
this Nation had invested so heavily in Iraq, in life, in limb, and an
extraordinary amount of money, much of that having been spent on the
training of the Iraqi security forces, and that the time had come for
those security forces to bear the brunt of the battle. Our group,
having drawn up a resolution, endeavored to try to get it debated, but
the record shows that opportunity, and the opportunity to vote on it,
was not given. But that is history.
At this time, however, I believe the operations of our troops under
the new strategy are well underway. We have many men and women of our
Armed Forces in harm's way, and we must be very cautious as to the
message we send at this time.
Mr. President, I say most respectfully that with this current draft
we are trying to strike out the language that, if allowed to stand,
would send a sound all over the world. It would be the bugle of
retreat; it would be echoed and repeated from every minaret throughout
Iraq: The coalition forces have decided to take the first step
backward.
We cannot send that message at this time. I will be among those who
will constantly challenge any aspect of the policies of this
administration which I believe are not in the best interest. I have two
amendments that, hopefully, will be considered in the context of the
pending bill. One calls for an independent investigation--independent
of the Department of Defense and all entities of the Federal
Government--of the Iraqi security forces, principally the army and, to
some extent, the police, to determine what the status is of those
forces today.
What has been the result of the billions of dollars we have expended
over 2\1/2\ years to train and equip them? Are they now, or in the
immediate future, able to carry the burden of this fight to enable the
people and the Government of Iraq to have greater security and
eventually achieve the goals and the full reins of a democracy?
The other amendment I have calls for a table of benchmarks and a
reporting sequence from our administration as to whether the Iraqis are
or are not meeting those benchmarks because any option laid down is
dependent on the capability of the Iraqi security forces. Early reports
in the engagements thus far indicate that, in some measures, they have
met the commitments they made to have sent battalions, to have engaged
with such limited aggression that has been brought against them in the
course of this surge and against the coalition forces. Nevertheless, it
is the American forces that are primarily in the lead, primarily in the
support role and carrying the greater burden of this battle.
So at this time I do not think it is wise to sound that bugle, that
sound of retreat. Think of the consequences if that nation implodes and
fractures and the Government and all of the gains that we have gotten
thus far are lost. Think of the consequences on, for example, the
potential for other energy sources to be developed in that region--
energy that is vital to the world, energy that must flow from that
region through the Straits of Hormuz that could be jeopardized if there
is a convulsion among the border states and the spreading of the
anarchy that could simply flow from this most distressed land of
uncertainty we call Iraq, this situation that is so fragile at this
time.
So I urge my colleagues, with no disrespect to those who put this in
the bill, to support the Cochran amendment.
Mr. President, while I have the floor, I simply ask unanimous consent
to send a modification to the desk for an amendment filed, No. 698.
The PRESIDING OFFICER. Is there objection?
Mrs. MURRAY. Mr. President, I say to the Senator from Virginia, I
would have to object at this time. We are happy to work with the
Senator during the vote to deal with the modification.
Mr. WARNER. Mr. President, I respect the manager of the bill, and I
thank her.
Mrs. MURRAY. How much time remains on both sides?
The PRESIDING OFFICER. The majority controls 10 minutes. The minority
controls 6\1/2\ minutes. That includes 10 minutes for the leadership.
Mrs. MURRAY. I yield 3 minutes to the Senator from Illinois.
Mr. DURBIN. Mr. President, the amendment which we are going to vote
on very shortly in the Senate is a historic amendment. It is an
amendment which I think will be followed very carefully not just in the
United States but around the world, particularly in Iraq.
Understand what this amendment does. The Cochran amendment removes
the language which starts to bring American troops home. The Cochran
language, instead, calls on the President to make periodic reports to
Congress on the progress in Iraq. With all due respect to those who
support that amendment, periodic reports will not bring this war to an
end. Periodic messages from the White House will not turn over this war
to the Iraqis to defend their own country.
What we have seen in Iraq is the worst foreign policy mistake in our
time. We have paid so dearly in our Nation for this mistake. Over 3,200
of our bravest soldiers have given their lives. Over 24,000 have come
home injured, some with serious injuries that will haunt them for a
lifetime. We have spent $500 billion of our treasure in Iraq that could
have been spent in the United States for the betterment of our people.
We have given to the Iraqi people more than any other Nation could ask
for. We have stood behind them, we have deposed their dictator, we have
given them free governance and a chance at a constitution and free
elections. Now it is time for us to make it clear to the Iraqis that it
is their country, it is their war, and it is their future.
This President recently said we need to continue to send soldiers,
more soldiers, into Iraq. Sadly, many of them are being sent to battle
without the equipment, the training, the rest they need, and the time
at home with their families. We are pushing these brave

[[Page 7741]]

men and women to the limit. Voting for the Cochran amendment says it is
enough that the President sends us every 60 or 90 days a report; that
he tells us how things are going; how we are doing. Is that why we are
in Congress, to receive reports from the President, to put them on a
bookshelf somewhere and hope a staffer has time to read them? I think
not.
What we are here to do is speak for the American people who want a
new direction in Iraq. They want this Congress to stand up once and for
all and say to this President that this policy has to change. American
soldiers must start to come home in an orderly manner and the Iraqis
have to stand and defend their own country. A vote for the Cochran
amendment, sadly, will take away any type of incentive for the Iraqis
to do the right thing for their own Nation.
Many have studied this over the last 4 years, a war that has gone on
longer than World War II. They have come to the same conclusions--the
Iraq Study Group and many others--it is time for the United States to
announce a new policy. The Cochran amendment says we will stay with the
old policy; we will receive periodic reports from the White House. That
is not the answer.
What we need to do is to stand behind our soldiers by bringing them
home as quickly as possible.
Mr. COCHRAN. Mr. President, I yield 3 minutes to the distinguished
Senator from Texas, Mrs. Hutchison.
The PRESIDING OFFICER. Is there objection? That exceeds the Senator's
time.
Mr. COCHRAN. How much time do I have, Mr. President?
The PRESIDING OFFICER. The Senator has 1\1/2\ minutes before the 5
minutes.
Mr. COCHRAN. I yield 1\1/2\ minutes to the distinguished Senator from
Texas.
Mr. McCONNELL. Mr. President, I am going to use about 5 minutes of my
leader time after Senator Hutchison, and she needs a minimum of 3
minutes. I will ask unanimous consent that Senator Hutchison be allowed
to have 1\1/2\ minutes of my leader time, and I will take about 5
minutes.
Mrs. MURRAY. Mr. President, I will not object if we can add an equal
amount of time to the majority side.
Mrs. HUTCHISON. Mr. President, let me ask for 2 minutes. I thought
the last time the Chair announced the time it was 6\1/2\ minutes after
Senator Warner.
The PRESIDING OFFICER. It is 6\1/2\ minutes, but the leader gets 5 of
those 6\1/2\.
Mrs. HUTCHISON. I understand. I ask unanimous consent that I be
allowed 2 minutes, after which the leader will then be allowed his 5
minutes.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from Texas is recognized.
Mrs. HUTCHISON. I thank the Chair.
Mr. President, let me say that the distinguished deputy leader on the
other side said that if the Cochran amendment passes, it will be the
same strategy, nothing new, nothing changed.
Nothing could be further from the truth. In fact, the President heard
what the people said in the elections of last year. The President has
changed the policy. We have confirmed a general to go over there and
direct a new strategy, which, by all accounts, is beginning to have
some hope of success.
If we do what is in this bill, by not passing the Cochran amendment,
it says that the President must commence the phased redeployment of
U.S. forces from Iraq not later than 120 days after the date of this
act. That puts a bulls-eye on our troops on the ground. It says we are
not committed to do what we said we would do, to stand with Iraq to
have a stable democracy in their country. It says that we are just
going to leave.
We are not stating any benchmarks; we are not stating any success
strategies; we are saying 120 days and we are gone. What do you think
that does to our troops on the ground? What does it say to our allies?
Most importantly, what does it say to the enemy? It says the greatest
country in the world is going to be there as long as it is not very
hard. But when it gets too tough for America, we will leave and we will
walk out.
That should not be the message of the greatest country on Earth, and
I hope we will pass the Cochran amendment and do what is right for our
country for the long term.
Mr. President, I yield the floor.
The PRESIDING OFFICER. Who yields time?
The Republican leader.
Mr. McCONNELL. Mr. President, less than 2 weeks ago, a bipartisan
majority of Senators put aside disagreements over the war in Iraq and
agreed on at least one thing and that one thing was that announcing a
surrender date for our troops is certainly not in our national
interest.
It is wrong by the troops who have been risking their lives to bring
stability and order throughout Baghdad and Iraq. Certainly, they do not
want to tell the enemy they intend to run up the white flag 365 days
from today. Setting a date for withdrawal is akin to sending a memo to
our enemies to rest, refit, and replan until the day we leave. It is a
memo to our friends, too, telling them we plan to walk away and leave
them on their own, regardless of what we leave behind. We know as well
as they do that we can expect the following: a Sunni minority exposed
to the whims of the Shia majority, ethnic cleansing, and regional
instability the consequences of which are painful to contemplate but
easy to predict.
It is wrong by the commanders in the field, who have been sent into
battle with a mission to fulfill and who know better than we do how to
carry out that mission.
It is wrong by the Iraqis themselves, who have risked their lives and
fortunes on the strength of a promise that the United States of America
would stand with them and see this struggle through until the end.
We voted against setting a surrender date, despite intense political
pressure because common sense tells us that politicians in Washington
don't tell the commanders on the battlefield when the fight is won.
Common sense told us something else a few months ago. It told us we
had to change course, and that is exactly what we have done. We
realized the only way we would win this fight would be to secure the
city of Baghdad, the seat of the Iraqi Government, and home to a
quarter of its population. We implemented a strategy to do it.
Some have said there is no military, only a political solution to
ending the violence in Iraq. But we can't pretend the Iraqis will forge
a political solution unless they are secure in their homes and on their
streets. That is the key to the Petraeus strategy and to our efforts in
Baghdad.
We have been pursuing that new course for the last few months. A
Democratic-controlled Senate sent a new commander into the field of
battle to carry it out. We have seen early signs of success, enough to
believe this new approach was exactly the right thing to do.
Now Congress is being asked to fund it. I agree this is also the
right thing to do. We are not about to pull the rug out from under our
soldiers in the field just as they begin to carry out the mission we
have sent them on. We are going to give them everything they need, and
we are not going to slip a deadline now into their security package.
The Constitution gives those who oppose this war a clear and concrete
way of expressing their views, and that is to vote against funding it.
Attempting to have it both ways--by slipping a withdrawal date into
this bill and making the support of our troops contingent on a
dangerous and defeatist surrender date--was wrong a week and a half ago
and it is wrong now.
It is also dangerous. President Bush has repeatedly said he will veto
a bill that includes a surrender date. He said it again this morning.
He said this spending bill, in its current form, assumes and enforces
the failure of the new strategy even before American commanders are
able to implement their plans and he will veto it if it reaches his
desk.
I urge my colleagues not to take us down this path, not to delay the
delivery of emergency funding to our troops

[[Page 7742]]

by forcing a Presidential veto. There is no need. Nothing has changed
since the majority of us voted against this very same timeline the week
before last.
Stripping the withdrawal date will not prevent anyone in this Chamber
from expressing his or her views on Iraq. Its only effect would be to
delay the delivery of much needed funding and equipment to our soldiers
in the field. I strongly urge my colleagues to strike this dangerous
provision and support the Cochran amendment.
Mr. President, I yield the floor.
Mr. REID. Mr. President, Senator Kennedy has 2\1/2\ minutes, but he
is not here, so I will proceed to wrap up the debate.
My friend, the Republican leader, said nothing has changed since the
last vote. That is the whole problem, nothing has changed. Nothing has
changed in over 4 years of this bloody war in Iraq. One course. That
course has been followed from the very beginning and has never changed.
The choice tonight is very clear. It is as clear as it is important.
It is a choice between staying the course in Iraq and changing the
course in that faraway land. With their votes, Senators tonight can
send a message to the President that it is time to come with us, to
help find a new way and end this intractable civil war or Senators can
allow this course to continue, allow President Bush to commit more U.S.
troops in this open-ended Iraqi civil war.
After more than 4 years, the related deaths of 3,250 of our brave
soldiers, and the wounded tens of thousands of these men and women, it
is time we should change. This war is not worth the spilling of another
drop of American blood. As it stands, this emergency legislation before
this body tonight will send a signal to our President that it is time
for a new direction, it is time to set benchmarks, it is time to send a
signal to the Iraqi Government that they must take responsibility for
their own people, and it is time to start redeploying our troops and
recommitting ourselves to fighting al-Qaida and other terrorists around
the world.
If this amendment passes, sending a message to the President to
change course, that is the right way to go. If, however, Senators
decide to allow the President to continue along the line he has
outlined for more than 4 years, that would be a shame. That is what
this amendment is all about, whether this carefully crafted legislation
will be stripped from this bill. It would then turn out to be, instead
of a bill that demands the President change his policy, that we will
have a bill that gives the President a blank check and a green light to
continue the failed course we have had in Iraq.
Without this language in the supplemental, the President would be
free to keep U.S. troops in Iraq indefinitely, serving an impossible
mission of policing an acknowledged civil war. Staying the course in
Iraq will not lead to success. There are no military solutions. My
friend, the Republican leader, said ``some say.'' ``Some say.'' Well,
one person who says the war can't be won militarily is the man we have
commanding the troops over there, General Petraeus. He said 20 percent
of the war is military, the rest is political and diplomatic and
economic. That is the way it is.
The bill, without this amendment, offers a responsible strategy in
Iraq, which the American people asked for last November, a strategy
that will maximize our chances to succeed in Iraq and enhance our
ability to defeat al-Qaida. General after general after general has
said that is the right strategy. A group of patriotic Americans devoted
a year of their lives to giving the American people and this Congress
and the President the advice of their collective wisdom--and it was
wisdom--former Secretaries of Defense, Secretaries of State, college
professors, former Members of Congress. They came to the conclusion
that we have in this amendment. It is in this bill. The Iraq Study
Group agrees with what we have in this legislation.
It is time for the Senate to put a stamp of approval on people such
as Secretary Jim Baker. He is a man who is a card-carrying Republican.
He served as Secretary of State, Chief of Staff for the President of
the United States, and he has held other Cabinet positions. He is an
example of what that Iraq Study Group was all about. They did it
because it was the right thing to do. The reason we are having even
minimal contact right now with Iranians is because of Secretary Baker.
Secretary Baker said you do not only negotiate with your friends, you
have to negotiate with your enemies.
I have come to know very well a person who is part of my security
detail. He has traveled with me all over the country--has been to my
home in Searchlight. He is now headed for his third tour of duty in
Iraq. He has two little children. He is headed for Iraq. He leaves in
less than a month. I admire James for his courage and his patriotism,
but he should not be going back for a third go-around. He is a National
Guardsman.
I understand how some of my colleagues feel. In this Chamber is Joe
Lieberman. There is not a Senator for whom I have more respect than Joe
Lieberman. I know how passionately he feels on this issue.
John Warner, seated across from me, is one of my friends. I can say
that without any reservation or hesitation. We have served together for
many years. I was his subcommittee chairman in the Environment and
Public Works Committee. I know how he feels about this issue, how torn
he is as to what is the right thing to do, what is not the right thing
to do. I acknowledge the feelings of John Warner and Joe Lieberman, but
that does not take away from the way I feel about this issue.
I have said on this floor before and I will say it again, the
sparsely populated State of Nevada has lost 39 soldiers in Iraq. The
last one, I called his mother less than 2 weeks ago. Raul Bravo is
dead. He was 21 years old--a marine on his second tour of duty in Iraq.
His mother expressed to me what a tremendous loss this was. He was the
only man in her family, she said--she and her three daughters. I admire
Raul Bravo for going to Iraq twice. He did what he had to do. But we
have had too many Raul Bravos dying over there, unnecessarily, in the
middle of a civil war.
I listened to my radio yesterday morning, as I do every morning.
Yesterday morning: five dead soldiers the day before.
I say sincerely that we should not spill any more blood there. We
should start redeploying these troops, have them work in
counterterrorism, force protection, training the Iraqis.
Every one of my colleagues should understand that the Prime Minister
of Iraq told the President of the United States to his face the last
time they met: Get the American troops out of Baghdad. That is what he
told him. This was before the surge that the President came up with.
The leader of the country of Iraq told the President of the United
States: Get the American troops out of here.
The Iraqi people don't want us there. All the polls show
overwhelmingly the people, Iraqi people, don't want us there. The
majority of the people think it is OK to kill and injure Americans. Is
that what we want to be involved in? I think not.
A lot of people worked very hard on the provision that is subject to
being stricken from this bill. This is a good piece of legislation that
is in this bill. It is the right thing to do. It is good for America.
It is good for our world. And it is good for President Bush.
I yield back Senator Kennedy's time.
The PRESIDING OFFICER. The question is on agreeing to the amendment
of the Senator from Mississippi.
Mr. WARNER. Mr. President, I ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second? There is a
sufficient second.
The clerk will call the roll.
The bill clerk called the roll.
Mr. DURBIN. I announce that the Senator from South Dakota (Mr.
Johnson) is necessarily absent.
Mr. LOTT. The following Senator is necessarily absent: the Senator
from Wyoming (Mr. Enzi).
Further, if present and voting, the Senator from Wyoming (Mr. Enzi)
would have voted ``aye.''

[[Page 7743]]

The PRESIDING OFFICER (Mr. Salazar). Are there any other Senators in
the chamber desiring to vote?
The result was announced--yeas 48, nays 50, as follows:

[Rollcall Vote No. 116 Leg.]

YEAS--48

Alexander
Allard
Bennett
Bond
Brownback
Bunning
Burr
Chambliss
Coburn
Cochran
Coleman
Collins
Corker
Cornyn
Craig
Crapo
DeMint
Dole
Domenici
Ensign
Graham
Grassley
Gregg
Hatch
Hutchison
Inhofe
Isakson
Kyl
Lieberman
Lott
Lugar
Martinez
McCain
McConnell
Murkowski
Pryor
Roberts
Sessions
Shelby
Snowe
Specter
Stevens
Sununu
Thomas
Thune
Vitter
Voinovich
Warner

NAYS--50

Akaka
Baucus
Bayh
Biden
Bingaman
Boxer
Brown
Byrd
Cantwell
Cardin
Carper
Casey
Clinton
Conrad
Dodd
Dorgan
Durbin
Feingold
Feinstein
Hagel
Harkin
Inouye
Kennedy
Kerry
Klobuchar
Kohl
Landrieu
Lautenberg
Leahy
Levin
Lincoln
McCaskill
Menendez
Mikulski
Murray
Nelson (FL)
Nelson (NE)
Obama
Reed
Reid
Rockefeller
Salazar
Sanders
Schumer
Smith
Stabenow
Tester
Webb
Whitehouse
Wyden

NOT VOTING--2

Enzi
Johnson

The amendment (No. 643) was rejected.
Mr. DURBIN. Mr. President, I move to reconsider the vote.
Mr. LEVIN. Mr. President, I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Mr. REID. Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER (Mr. Salazar). The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. REID. I ask unanimous consent that the order for the quorum call
be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. REID. Mr. President, I am going to shortly suggest the absence of
a quorum again. I want to tell everybody, it is going to take us a
little while to figure out where we go next. I need to meet with
Senator McConnell, Senator Byrd, and Senator Cochran. This is not an
easy proposition. We have cloture in the morning. As we have heard from
both sides, this is a very important bill and we have to move as
quickly as we can. Well over 100 amendments have been filed on this
bill. That is going to throw a monkey wrench into things. Senator
McConnell has worked in good faith for us to get to the point where we
are today. I hope I have done the same. I represented to Senator
McConnell we could have a vote on the Iraq bill, and we have done that.
I represented to Senator McConnell we could have a vote on the minimum
wage, and we almost have that worked out. I represented to Senator
McConnell there were certain amendments a couple of his Senators wanted
to offer and we were going to work that out, and I think we have done
that.
There is something that is wanted on both sides, very important to
Senator Wyden and Senator Smith, Senator Bingaman and Senator Baucus,
and others. We are at a point where we can resolve that.
Beyond that, it is a legislative mess. Standing here in the well, I
have had five Senators come up to me and say they had emergency things
they needed done. I asked each of them: Is it in the supplemental? No.
It makes it tough to try to be everything to everybody. We need a
little time to see what we can do to work through this. I want to be as
fair as we can, but this is an unusual piece of legislation. We have a
cloture vote in the morning. The staff will work during the night to
find out which of the amendments that have been filed either are
germane or appear to be germane or are not.
We will not have a vote in the near future. It will be a little
while. I would say it will probably take us at least 15 minutes before
we know where we are going. We have Senator Cochran, Senator Byrd, who
are as experienced as anyone could be on this most important bill. We
will do our best to give everyone an idea of where we are headed.
Mr. McCONNELL. Will the majority leader yield for an observation?
Mr. REID. I am happy to yield to the Senator from Kentucky.
Mr. McCONNELL. Mr. President, I think we are close to sorting out a
way to go forward, as the majority leader has described. As soon as we
finish this colloquy, why don't we get about figuring out how to sort
that out.
Mr. REID. I appreciate that very much. I suggest the absence of a
quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. REID. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The ACTING PRESIDENT pro tempore. Without objection, it is so
ordered.
Mr. REID. Mr. President, I ask unanimous consent that the Senate now
return to the Kennedy amendment and that a Grassley second-degree
amendment be considered and agreed to; that the Kennedy amendment, as
amended, be agreed to and the motion to reconsider be laid upon the
table; that on Wednesday, March 28, there be 30 minutes of debate to
run concurrently with respect to the Wyden amendment No. 709 and the
Burr amendment No. 716, with the time equally divided and controlled
between Senators Wyden and Burr or their designees; that the Burr
amendment be modified to be a first-degree amendment; that no
amendments be in order to either amendment; that there then be 30
minutes of debate prior to a vote on the motion to invoke cloture on
H.R. 1591, with the time equally divided and controlled between the two
leaders or their designees; that upon the use of time, without further
intervening action or debate, the Senate proceed to a vote in relation
to the Wyden amendment, to be followed by a vote in relation to the
Burr amendment, and then a vote on the motion to invoke cloture; that
there be 2 minutes of debate equally divided prior to each vote; that
on Wednesday, it be in order for Senator Hagel to call up amendment No.
707 and there be 90 minutes of debate under the control of Senator
Hagel; that upon the use or yielding back of that time, the amendment
be withdrawn. That would be whether cloture is invoked or not. And it
relates to the Hagel amendment.
The ACTING PRESIDENT pro tempore. Without objection, it is so
ordered.
Mr. REID. Mr. President, we have taken, as you know, a long time to
get to this point. There are a number of other Senators who have
questions, and we are still in the process of working our way through
that.
I further ask unanimous consent that Senator Coburn be recognized to
call up six amendments en bloc--Nos. 648, 649, 656, 657, 717, and 718;
that once they are reported by number, the amendments be set aside.
The ACTING PRESIDENT pro tempore. Without objection, it is so
ordered.
The Senator from Virginia.

Amendment No. 698, as Modified

Mr. WARNER. Mr. President, I know there has been a diligent effort on
both sides to get the Byrd-Warner amendment cleared. I am hoping to get
the final clearance from Senator Stevens. I know where he is, and I
have contacted him. If that could just be held in abeyance for a minute
or two, in the meantime, may I modify one of the amendments that is
filed at the desk?

I ask unanimous consent to modify amendment No. 698.

The ACTING PRESIDENT pro tempore. Without objection, the amendment is
so modified.
The amendment (No. 698), as modified, is as follows:

(Purpose: Relating to Iraq)

At the end of chapter 3 of title I, add the following:

SEC. 1316. IRAQ.

(a) Findings.--Congress makes the following findings:

[[Page 7744]]

(1) On the fourth anniversary of Operation Iraqi Freedom,
the regime of a brutal dictator has been replaced by a
democratically elected government in the Arab world.
(2) United Nations Security Council Resolution 1723,
approved November 28, 2006, ``determin[ed] that the situation
in Iraq continues to constitute a threat to international
peace and security''.
(3) More than 137,000 United States 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 support of all Americans, which they
have strongly.
(4) Many United States military personnel have lost their
lives, and many more have been wounded, in Iraq, and the
American people will always honor their sacrifices and honor
their families.
(5) The United States Army and Marine Corps, including
their Reserve and National Guard organizations, together with
components of the other branches of the military, are under
enormous strain from multiple, extended deployments to Iraq
and Afghanistan, and these deployments, and those that will
follow, will have lasting impacts on the future recruiting,
retention and readiness of our Nation's all volunteer force.
(6) Iraq is experiencing a deteriorating problem of
sectarian and intra-sectarian violence based upon political
distrust and cultural differences between some Sunni and Shia
Muslims, concentrated primarily in Baghdad.
(7) Iraqis must reach political settlements in order to
achieve reconciliation, and the failure of the Iraqis to
reach such settlements to support a truly unified government
greatly contributes to the increasing violence in Iraq.
(8) The responsibility for internal security and halting
sectarian violence in Iraq must rest primarily with the
Government of Iraq, relying on the Iraqi Security Forces
(ISF).
(9) President George W. Bush 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.
(10) It is essential that the Government of Iraq set out
measurable and achievable benchmarks and President George W.
Bush said, on January 10, 2007, that ``America will change
our approach to help the Iraqi government as it works to meet
these benchmarks''.
(11) According to 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,
2007;
(B) referenced by the Iraq Study Group; and
(C) posted on the website of the President of Iraq.
(12) The Secretary of State indicated on January 30, 2007
that ``we expect the Prime Minister will follow through on
his pledges to the President that he would take difficult
decisions''.
(13) The Secretary of State, the Secretary of Defense, and
the Chairman of the Joint Chiefs of Staff have testified
about, and, or, provided unclassified material to members of
Congress on Iraqi commitments and goals.
(14) Congress acknowledges that the Baghdad Security Plan
is in its initially months and while there are signs of
progress, there are also signs of difficulty and uncertainty.
For these reasons, and others, Congress must have timely
reports to evaluate in performance of roles under the
Constitution of the United States.
(b) Benchmarks.--It is the sense of Congress that--
(1) United States strategy in Iraq, hereafter, should be
conditioned on the Government of Iraq 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 commitments of
the Government of Iraq to the United States, and to the
international community, including--
(A) forming a Constitutional Review Committee and then
completing the Constitutional review;
(B) enacting and implementing legislation on de-
Bathification;
(C) 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;
(D) enacting and implementing legislation on procedures to
form semi-autonomous regions;
(E) enacting and implementing legislation establishing an
Independent High Electoral Commission; provincial elections
law, provincial council authorities, and a date for
provincial elections;
(F) enacting and implementing legislation addressing
amnesty;
(G) 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;
(H) establishing supporting political media, economic, and
services committees in support of the Baghdad Security Plan;
(I) providing three trained and ready Iraqi brigades to
support Baghdad operations;
(J) providing Iraqi commanders with all authorities to
execute the Baghdad Security Plan and to make tactical and
operational decisions, in consultation with United States
commanders, without political intervention;
(K) ensuring that there Iraqi Security Forces are providing
even handed enforcement of the law against all who break it;
(L) ensuring that, according to President George W. Bush,
as Prime Minister of Iraq Maliki said ``the Baghdad security
plan will not provide a safe haven for any outlaws,
regardless of [their] sectarian or political affiliation'';
(M) establishing all of the planned joint security stations
in neighborhoods across Baghdad;
(N) increasing the number of Iraqi security forces units
capable of operating independently;
(O) allocating and spending $10 billion in Iraqi revenues
for reconstruction projects, including delivery of essential
services, on an equitable basis; and
(2) the achievement of these benchmarks by the Government
of Iraq, or the demonstration by the Government of Iraq of
satisfactory progress towards achieving these benchmarks,
should be viewed as the condition for continued United States
military and economic involvement in Iraq.
(c) Reports on Benchmarks.--
(1) In general.--The Commander, Multi-National Forces-Iraq,
in coordination with the United States Ambassador to Iraq,
shall submit a report to the Commander of United States
Central Command not later than July 15, 2007, and every 60
days thereafter. The report shall detail the status of each
of the specific benchmarks set forth in subsection (b), and
conclude whether satisfactory progress has been made toward
meeting the overall benchmarks as specified in that
subsection, in a timely manner.
(2) Assessment by commander of central command.--Upon
receipt of a report under paragraph (1), the Commander of
United States Central Command shall prepare an assessment of
the report. The report and the assessment shall be submitted
to the Secretary of Defense not later than July 20, 2007, and
every 60 days thereafter.
(3) Assessment by secretary of defense and secretary of
state.--Upon receipt of a report and assessment under
paragraph (2), the Secretary of Defense shall, in
consultation with the Secretary of State, prepare an
independent assessment of the report and submit the report
and all assessments, not later than August 1, 2007, and every
60 days thereafter, to--
(A) the Committees on Armed Services, Appropriations, and
Foreign Relations and the Select Committee on Intelligence of
the Senate; and
(B) the Committees on Armed Services, Appropriations, and
Foreign Affairs and the Permanent Select Committee on
Intelligence of the House of Representatives.
(4) Report by the president.--If any report or any of the
assessments fail to indicate satisfactory progress in any
benchmark, the President shall, within 30 days thereafter,
submit to Congress a report on those benchmarks that failed
to achieve satisfactory progress. The President's report
shall provide an explanation of why satisfactory progress was
not achieved and describe revisions to the January 10, 2007
strategy that reflect how satisfactory progress will be
attained.
(5) Termination of superseded reporting requirement.--The
reporting requirement in section 1227 of the National Defense
Authorization Act for Fiscal Year 2006 (Public Law 109-163;
119 Stat. 3465; 50 U.S.C. 1541 note) is terminated after the
reporting period ending May 31, 2007.
(d) Reports on Readiness of the Armed Forces.--
(1) Reports by service secretaries.--Commencing 60 days
after the date of the enactment of this Act, the Secretaries
of the military departments, in coordination with the Chiefs
of the Services, shall report to the Committees on Armed
Services and Appropriations of the Senate and the Committees
on Armed Services and Appropriations of the House of
Representatives, not later than 30 days before the date of
embarkation, on the deployment of any unit of the Armed
Forces of the United States, to include the Reserve Forces
and National Guard (hereafter known as ``the unit''), outside
the United States and its territories that is not considered
fully mission capable of performing reasonably assigned
mission-essential tasks to prescribed standards, under
anticipated conditions in the theater of operations, of the
supported combatant commander.
(2) Assessment of risk.--Subsequently, the supported
combatant commander, in coordination with the Commander of
Joint Forces Command, shall assess the risk of the deployment
of the unit as significant, high, medium, or low, and specify
to the Secretary

[[Page 7745]]

of Defense corrective actions to reduce that level of risk
from significant, high, or medium to low, not later than 20
days before the embarkation of the unit.
(3) Transmittal of assessment.--Thereafter, the Secretary
of Defense, in coordination with Chairman of the Joint Chiefs
of Staff, shall forward the aforementioned risk assessment to
the Committees on Armed Services and Appropriations of the
Senate and the Committees on Armed Services and
Appropriations of the House of Representatives, not later
than 10 days before the date of embarkation of the unit, with
a statement that--
(A) the risk associated with the deployment of the unit has
been mitigated to satisfaction; or
(B) the deployment of the unit has been cancelled, delayed,
or determined to be of such significant importance that
deployment of the unit is essential and the level of risk of
that deployment is vital to the national security of the
United States.

Mr. WARNER. Mr. President, I will advise the leadership as soon as I
get a message. I thank the distinguished leaders.

Amendment No. 798 to Amendment No. 680

The ACTING PRESIDENT pro tempore. Under the previous order, the clerk
will report the Grassley second-degree amendment.
The legislative clerk read as follows:

The Senator from Kentucky [Mr. McConnell], for Mr.
Grassley, proposes an amendment numbered 798 to amendment No.
680.

(The amendment is printed in today's Record under ``Text of
Amendments.'')
The ACTING PRESIDENT pro tempore. Under the previous order, the
amendment is agreed to.
The amendment (No. 798) was agreed to.

Amendment No. 680, as Amended

The ACTING PRESIDENT pro tempore. Under the previous order, the
Kennedy amendment No. 680, as amended, is agreed to.
The amendment (No. 680), as amended, was agreed to.
The ACTING PRESIDENT pro tempore. The Senator from Oklahoma is
recognized under the previous order.

Amendments Nos. 648, 649, 656, 657, 717, and 718, En Bloc

Mr. COBURN. Mr. President, I call up six amendments en bloc: 648,
649, 656, 657, 717, and 718, and I ask that they be set aside after
they are reported.
The ACTING PRESIDENT pro tempore. Without objection, it is so
ordered.
The amendments (Nos. 648, 649, 656, 657, 717, and 718, en bloc) are
as follows:

amendment no. 648

(Purpose: To remove $100 million in funding for the Republican and
Democrat party conventions in 2008)

At the appropriate place, add the following:
Notwithstanding any other provision of this Act, none of the
funds appropriated or otherwise made available in this Act
may be available for reimbursing State and local law
enforcement entities for security and related costs,
including overtime, associated with the 2008 Presidential
Candidate Nominating Conventions, and the total amount made
available in this Act in Title II, Chapter 2, under the
heading ``State and Local Law Enforcement Assistance'' is
reduced by $100,000,000.

amendment no. 649

(Purpose: To remove a $2 million earmark for the University of Vermont)

At the appropriate place, add the following:
Notwithstanding any other provision of this Act, Sec. 3608(b)
of this Act shall not take effect.

amendment no. 656

(Purpose: To require timely public disclosure of Government reports
submitted to Congress, and for other purposes)

At the appropriate place, insert the following:
Sec. ___. (a) Posting of Certain Reports on Internet
Websites.--Each report described in subsection (b) shall be
posted on the Internet website of the department or agency
submitting that report for the public not later than 48 hours
after the submission of that report to Congress.
(b) Covered Reports.--The reports described in this
subsection are each report (including any review, evaluation,
assessment, or analysis) required by a provision of this Act
to be submitted by any department or agency to Congress or
any committee of the Senate or the House of Representatives.
(c) Redaction of Certain Information.--In posting a report
on the Internet website of the department or agency under
subsection (a), the head of that department or agency may
redact any information the release of which to the public
would compromise the national security of the United States.

Amendment No. 657

(Purpose: To provide farm assistance in a fiscally responsible manner)

(The amendment is printed in today's Record under ``Text of
Amendments.'')

amendment no. 717

At the appropriate place, insert the following:

SEC. __. INAPPLICABILITY OF CERTAIN PROVISIONS.

Notwithstanding any other provision of this Act, titles II,
III, and IV of this Act shall not take effect.

amendment no. 718

At the appropriate place, insert the following:

SEC. __. INAPPLICABILITY OF CERTAIN PROVISIONS.

Notwithstanding any provision of this Act, titles II
(except for chapter 8 and 9 of title II), III, and IV of this
Act shall not take effect.

The ACTING PRESIDENT pro tempore. The amendments are pending en bloc.
Mr. LUGAR. Mr. President, I have filed amendment No. 670 to H.R.
1591. This amendment authorizes the Secretary to spend up to $50
million for the establishment and maintenance of a civilian reserve
corps to address postconflict situations and other emergencies
overseas. The amendment provides the Secretary the flexibility to use a
portion of the funding in this act to make an urgent effort to recruit
and train more civilians in planning and managing stabilization and
reconstruction.
The Senate embraced the creation of such a civilian corps when it
unanimously passed S. 3322 last May. The funding in this amendment
matches the level provided in the House version of the emergency
supplemental.
If enacted, this amendment provides the Secretary with access to
immediate funding to recruit and send civilians with the appropriate
skills to assist in reconstruction and stabilization in Iraq and
Afghanistan, as well as to emerging trouble spots around the world. The
United States must have the right structures, personnel, and resources
in place when an emergency occurs. A delay in our response of a few
weeks, or even days, can mean the difference between success and
failure.
Both the State Department and the Defense Department are keenly aware
of the importance of this amendment. They understand that, if we cannot
work together better as a government in postconflict and other unstable
situations, the United States may come to depend even more on our
military for tasks and functions far beyond its current role. This
amendment builds on the planning that has already taken place to
develop a civilian reserve and jumpstarts it so that it can be
available as soon as possible.
Mr. President, I would like to have printed in the Record at this
point a letter from the Secretary of State strongly endorsing the need
for the funding contained in this amendment.
There being no objection, the material was ordered to be printed in
the Record, as follows:

The Secretary of State,
Washington, DC, March 27, 2007.
Hon. Richard G. Lugar,
U.S. Senate,
Washington, DC.
Dear Senator Lugar: I am writing to express my strong
support for including funding of $50 million in the
supplemental appropriations bill to establish a Civilian
Reserve Corps. Since our supplemental funding request went
forward, we have worked diligently to refine a proposal to
jump start the creation of a Civilian Reserve Corps. We are
pleased the House of Representatives agrees and has included.
$50 million in its supplemental appropriations bill for this
purpose. We believe that we are able to justify and to spend
wisely these funds in building a reserve capability to
complement our internal surge capacity.
We have seen the dangers to U.S. interests that can occur
from unstable and ungoverned territories that foster the
emergence of terrorist organizations. We must find new and
better ways to respond to the urgent demands of post-conflict
stabilization and reconstruction. The Civilian Reserve Corps,
which the President proposed in his State of the Union
address, is one way to do just that. We cannot create
stability, reconstruct economies, and foster the growth of
institutions with military solutions; for these purposes we
must call on American civilians who have the necessary
expertise to assist in these vital tasks.
The Civilian Reserve Corps will tap the creativity, the
energy, and the idealism of the American people. I look
forward to working with the Congress to advance and refine

[[Page 7746]]

the legislation which will authorize the use of these funds.
Sincerely,
Condoleezza Rice.

Mr. LUGAR. In testimony before the Senate Armed Services Committee on
February 6, Secretary of Defense Robert Gates and Chairman of the Joint
Chiefs Peter Pace talked about the urgent need for civilian expertise
in the Iraq stabilization effort. General Pace also called for more
civilian resources for the broader worldwide effort, people who can
build judicial and rule of law systems, provide engineering expertise,
and bring clean water and electricity to people ``before a country
devolves into a state where the terrorists can find a home.''
Passing the amendment will demonstrate that there is a keen
understanding in the Senate that we need to move forward now to
strengthen our civilian reconstruction capabilities in Iraq and
Afghanistan.
I recommend this amendment to my colleagues and urge its adoption.
Mr. BIDEN. Mr. President, once again we are debating additional
wartime funding for Iraq. Once again, we are trying to mitigate the
damage caused by the President's utterly failed Iraq policy and the
failure to properly plan for and manage the aftermath of Saddam
Hussein's fall. I have spoken many times about how damaging this lack
of planning has been to our efforts in Iraq and to our standing in the
world.
For the past 2 months, the spotlight has shone on another
administration failure in this war: the shameful conditions our wounded
soldiers face as outpatients navigating the military health system when
they return from Iraq or Afghanistan. This is another example of gross
mismanagement and a strained system. As such, I will offer amendment
No. 766 to improve the care that members of the Armed Forces and
veterans receive at Walter Reed and other military medical facilities.
The purpose of this amendment is to ensure that some of the reasons
for concern at Walter Reed do not occur in the future. As the living
conditions for outpatients at Walter Reed Army Medical Center indicate,
moving to private contracts for maintenance can cause problems. After a
private contract was awarded for maintenance and upkeep of buildings on
the campus of Walter Reed Army Medical Center, a maintenance crew of
approximately 300 was whittled down to 50 by the time the contract went
into effect. Many of the terrible living conditions found in Building
18 were a direct result of delays in building repair and maintenance
because of a shortage in manpower. To prevent this situation from
occurring again, this amendment calls for public-private competitions
of maintenance services at military medical complexes to stop while our
country is engaged in military conflicts. It also calls for a
Government Accountability Office review of contracting-out decisions
for basic maintenance work at military facilities.
Other problems discovered at Walter Reed are directly attributable to
shortages resulting from pressures to cut budgets for military medical
services. These cuts cannot be tolerated at a time when military
medical services are needed to treat servicemembers who have been
wounded in Iraq and Afghanistan. As such, this amendment would require
medical command budgets to be equal to or exceed the prior year amount
while the Nation is involved in a major military conflict or war.
Another issue that the conditions at Walter Reed brought up is
whether or not the facility should be closed as the Base Realignment
and Closure Commission recommended. The Commission recommended building
new, modern facilities at the National Naval Medical Center at Bethesda
and at Fort Belvoir to improve the overall quality of care and access
to care in this region. Military leaders have indicated that the
planned closure has limited their ability to attract needed
professionals to jobs at Walter Reed and there have been concerns
raised whether adequate housing for the families of the wounded has
been properly planned. To deal with that, this amendment requires the
Department of Defense to submit to Congress within one year a detailed
plan that includes an evaluation of the following: the desirability of
being able to guarantee professional jobs for 2 years or more following
the closure; detailed construction plans for the new facilities and for
new family housing; and the costs and benefits of building all of the
needed medical treatment, rehabilitation, and housing before a single
unit is moved.
Another major problem and source of frustration for injured soldiers
is the length of time it takes to receive a disability determination.
In order to hasten the disability determination process, we need to
ensure that the Department of Defense has information systems capable
of communicating with those in the Department of Veterans Affairs. The
VA has been a leader in implementing electronic medical record keeping,
but we have to improve the capability of the Department of Defense to
send electronic medical records to the VA to speed up the disability
determination process. Making the disability determination system more
efficient can reduce the stress on the soldiers and their families
going through the determination process.
Caseworkers are also critical. They schedule appointments and make
sure wounded servicemembers get the rehabilitative and follow-up care
they need. As more and more soldiers and marines come home wounded,
many military caseworkers are overwhelmed. To improve the care given to
servicemembers, this amendment requires a minimum ratio of case
managers to patients of 1 to 20, that case managers have contact with
recovering servicemembers at least once a week, and that case managers
be properly trained on the military's disability and discharge systems
so they can better assist patients with their paperwork.
Currently, many combat veterans returning from Iraq and Afghanistan
have service-related mental health issues like posttraumatic stress
disorder, PTSD, and traumatic brain injury, TBI. Many have labeled TBI
the ``signature injury'' of the Iraq and Afghanistan conflicts. It is
estimated that as many as 10 percent of those serving or who have
served in Iraq and Afghanistan have brain injuries. That would mean
about 150,000 of the 1.5 million soldiers who have served in Operation
Enduring Freedom or Operation Iraqi Freedom have suffered a brain
injury. In many cases, these injuries are not diagnosed because there
is not an external wound. Depending on the severity of these injuries,
returning soldiers can require immediate treatment or not have symptoms
show up until several years later. This amendment calls for every
returning soldier to be screened for TBI. While the VA has announced
plans to do this, it needs to happen in active-duty military medical
facilities too. In addition, the amendment calls for a study on the
advisability of treating TBI as a presumptive condition in every
service's disability evaluation system, as well as the VA disability
evaluation system.
We often hear about the 25,000 soldiers and marines who have been
wounded in these wars--but that figure grossly underestimates the
demand that the VA health care system faces. Since our country was
attacked on September 11, 2001, more than 1.5 million soldiers have
been deployed to Afghanistan, Iraq, and other locations. Of these,
630,000 are now veterans and, according to the Department of Defense,
more than 205,000 have already received medical treatment through the
Department of Veterans Affairs. A recent Harvard study on the long-term
costs of treating these new veterans estimates that by 2012 more than
643,000 veterans from Iraq and Afghanistan will be using the VA system,
an almost three-fold increase of what the system faces now. With a
significant backlog of claims currently existing, the system is in
desperate need of an upgrade. To address this concern, my amendment
directs the Secretary of Veterans Affairs to submit to Congress a plan
for the long-term care needs for veterans for the next 50 years.
In addition to this amendment that I offer today, I am happy to have
also joined with my colleagues Senators Obama and McCaskill and offered
an

[[Page 7747]]

amendment based on the Dignity for Wounded Warriors Act. My amendment
complements the Obama and McCaskill amendment to improve the care our
wounded soldiers receive at Walter Reed Army Medical Center and other
military medical facilities. I believe both amendments will make
medical care better for our military personnel and veterans. I also
commend the Appropriations Committee for already providing
approximately $3.1 billion in funding above the President's request for
health programs in the Department of Defense and the Department of
Veterans Affairs. Providing $1.3 billion for defense health programs
and $1.767 billion for veterans' health programs is a great step to fix
some of the problems we currently face.
It is our highest obligation to heal the hundreds of thousands of
brave men and women who will bear the physical and emotional scars of
these wars for the rest of their lives. While President Bush and his
administration may have failed to plan adequately to ensure that these
soldiers and veterans receive the care that they deserve, we in
Congress must act now to improve this situation.
Mr. BAUCUS. Mr. President, I am pleased to join with the senior
Senator from Massachusetts, the chairman of the Health, Education,
Labor, and Pensions Committee, in support of amendment No. 680. The
substance of this amendment is what the Senate passed by a 94-to-3 vote
as the minimum wage and small business tax bill on February 1.
This amendment would thus extend to hard-working Americans a long-
overdue increase in the minimum wage. It is long past time when
Congress should have increased the minimum wage.
Now some worry that an increase in the minimum wage would burden
small businesses. Smaller businesses employ a disproportionate share of
workers earning the minimum wage.
Representatives of small businesses have therefore argued that any
increase in the minimum wage should be accompanied by tax incentives
targeted for small businesses in order to lower their costs.
Small business is particularly important in rural States like
Montana. Rural communities generally do not have large employers. Rural
families rely on small businesses for jobs.
The Finance Committee has jurisdiction over taxes. The committee held
a hearing on January 10 entitled ``Tax Incentives for Businesses in
Response to a Minimum Wage Increase.'' The committee heard from a
variety of witnesses, including labor economists, small business
owners, and tax experts.
Following that hearing, the committee held a markup on January 17.
The committee reported an original bill called the Small Business and
Work Opportunity Act of 2007.
That bill is a revenue-neutral bill containing a number of tax
incentives for small businesses and businesses that hire minimum wage
workers. The committee favorably reported the bill by unanimous voice
vote. And the majority leader included that bill in its entirety in his
amendment to the House-passed Fair Minimum Wage Act. That bill passed
the Senate on February 1.
Now the chairman of the Health, Education, Labor, and Pensions
Committee and I have included that bill in its entirety in our
amendment to the House-passed supplemental appropriations bill, the
U.S. Troops Readiness, Veterans' Health, and Iraq Accountability Act.
The small business tax provisions included in this amendment will
help small businesses to succeed. These provisions will spur investment
and thus create jobs. They will provide greater opportunity for workers
looking for a job. They all enjoy strong support.
To carry out day-to-day activities, small business owners are often
required to invest significant amounts of money in depreciable
property, such as machinery. The amendment would help business owners
to afford these large purchases for their businesses. To do so, the
amendment would extend for another year expensing under section 179 of
the Internal Revenue Code.
New equipment and property are necessary to successfully operate a
business. But large business purchases generally require depreciation
across a number of years, and depreciation requires additional
bookkeeping.
Expensing under section 179 allows for an immediate 100-percent
deduction of the cost for most personal property purchased for use in a
business. In 2007, small business owners may deduct up to $112,000 of
equipment expenses.
When small business owners are able to expense equipment, they no
longer have to keep depreciation records on that equipment. So
extending section 179 expensing would ease small business bookkeeping
burdens.
The amendment would also allow small business owners to quickly
recover the cost of improvements to their establishments through
extension and expansion of the 15-year straight-line depreciation
period for leaseholds and restaurant improvements. Without this
provision, they would have to depreciate over the course of 39 years.
Allowing retailers and restaurants to use a 15-year straight-line
depreciation period would help entrepreneurs who open a business or
remodel their property. The entrepreneur's investment could be
recovered over a period of time more closely reflecting wear and tear.
The amendment would extend the 15-year recovery period for leasehold
and restaurant improvements. The amendment would also broaden the
provision to allow retail owners and new restaurants to take advantage
of this shortened depreciation period.
The amendment would also help businesses to provide jobs for workers
who have experienced barriers to entering the workforce by extending
and expanding the work opportunity tax credit or WOTC.
WOTC encourages businesses to hire workers who might not otherwise
find work. WOTC has been remarkably successful. By reducing
expenditures on public assistance, WOTC is highly cost-effective. The
business community is highly supportive of these credits. Industries
like retail and restaurants that hire many low-skill workers find it
especially useful.
The amendment would extend WOTC for 5 years, and the amendment would
expand the credit to make it available to employers who hire veterans
disabled after 9/11.
As of July 2006, nearly 20,000 members of our Armed Forces were
wounded in action in Operation Iraqi Freedom and Operation Enduring
Freedom. Many of these soldiers are now permanently disabled. Many do
not know what they are going to do. We need to help these young men and
women. A modest tax incentive to help them get back into the workforce
is one place to start.
The amendment would simplify the way that small businesses keep
records for tax purposes. The cash method of accounting is often the
easiest method of accounting. Allowing small business to use the cash
method reduces the administrative and tax compliance burden of these
businesses.
The amendment would let more businesses take advantage of this
method. Businesses with gross receipts up to $10 million would be able
to use the cash method.
The amendment helps small businesses by modifying S corporation
rules. These modifications reduce the effect of what some call the
``sting tax.'' These modifications improve the viability of community
banks.
Senator Grassley, members of the Finance Committee, and I have worked
to develop a balanced package, and I believe that we have succeeded.
The language included in the amendment is a responsible package that
will ensure the continued growth and success of small businesses.
We have also paid for it. Most of the offsets are proposals that the
Senate has supported several times before.
The offsets include a proposal to end future tax benefits for abusive
sale in/lease out tax shelters, or SILOs. These deals use foreign tax
exempt entities to generate sham tax deductions. Even after Congress
shut these deals down in 2004, some taxpayers continue to take
excessive, unwarranted depreciation deductions on German sewer systems
and the like. The IRS says that it has

[[Page 7748]]

1,500 of these deals under audit, involving billions, yes, billions, of
dollars.
The offsets include doubling fines, penalties, and interest on taxes
owed as a result of using certain abusive offshore financial
arrangements to avoid paying taxes. Taxpayers who hide their money from
the IRS through offshore credit cards and other shady financial
arrangements need to get the message that this Congress is serious
about ending these abuses.
The offsets include closing corporate loopholes for companies who
reinvented themselves as foreign corporations to avoid paying tax here
in America. In March of 2002, Senator Grassley and I made it clear that
those who put profits ahead of patriotism did so at their own peril.
The amendment would treat those who moved offshore after that date like
a U.S. company, and the amendment would make those companies pay U.S.
taxes.
The hard-working American taxpayers whom we are trying to help in
this amendment should not have to pay more in taxes because some
taxpayers are abusing the tax system through tax shelters. They also
should not have to bear the burden of civil settlements and punitive
damages paid by companies who engage in questionable behavior.
These are sound tax policy changes. Let us finally enact an increase
in the minimum wage, and let us also pass this useful package of tax
benefits to help America's small businesses. I urge my colleagues to
support the amendment.
Mr. LUGAR. Mr. President, along with Senator Bond and Senator
Coleman, I will offer an amendment that addresses an issue about which
there has been much news reporting and hearings in both House and
Senate subcommittees; namely, the situation facing Iraqi and Afghani
interpreters and translators who are bravely working on the front lines
with our soldiers and diplomats. Such work is vital to our efforts in
these two conflicts, yet it often makes them and their families targets
for insurgents. This past week, Mr. George Packer wrote a lengthy piece
in the New Yorker on this that I commend to my colleagues.
My interest in this issue, like many of my colleagues, began last
summer when I received e-mails from a first lieutenant in the Indiana
National Guard who had recently returned from a tour in Iraq and from a
sergeant in the Army who was at the time serving in a combat support
hospital, also in Iraq.
Aaron Inkenbrandt wrote:

During my year in Iraq, I served as a military Transition
team member. As such, I lived exclusively with Iraqi forces
and acted as a mentor and advisor to them. My team and I did
much to build and train these forces under very difficult
circumstances. However, we could not have achieved success
without our Iraqi interpreters. I believe that our Nation
must reciprocate the loyalty proved by these men by offering
to them sanctuary in the United States.
Iraqi interpreters are an outstanding group of people.
These men not only act as our communicators but also our
cultural advisors and our friends. Our interpreters share
with us the dangers of combat and the rigors of military
life. While interpreters are generally well paid, the risks
associated in assisting Coalition forces are extraordinary.
Both at work and at home, interpreters fear for their lives.
This fear is often so great that they cannot tell even their
closest relatives what they do for a living.
The insurgency in Iraq has made clear that they will murder
any Iraqi caught assisting Coalition Forces. Interpreters are
especially prized by insurgents who often pay high bounties
for their killings or capture. Iraqis not associated with the
insurgency are also hostile toward interpreters. Many Iraqis
believe, though wrongly, that interpreters are snitches or
traitors. Such hostility makes life very difficult for Iraqi
interpreters.''
The withdrawal of Coalition Forces will likely increase
rather than decrease the danger posted to interpreters.
Without our protection, former interpreters will be left
defenseless before their enemies and subject to persecution
by their friends. In my opinion, [it] would be immoral and
contrary to the precepts of our Constitution to abandon these
brave patriots in light of the vast sacrifices that they have
made in the cause of freedom. Therefore, I implore you to
advocate preferable immigration status to all Iraqi
interpreters whose loyalty we reasonably ascertain.

The e-mails, and a cable that our then Ambassador to Baghdad, Zalmay
Khalilzad, released regarding the life-threatening conditions our
Foreign Service Nationals were facing prompted me to write to the
Secretary of State last July about the issue. I encouraged her to
develop a policy to address these various situations and suggest
legislative language. The United States has experience and tradition in
this respect from past wars that provide precedent and guidance.
The amendment I am offering today with Senator Bond and Senator
Coleman is not a conventional amendment for an emergency supplemental,
but because it has a direct impact on the missions in Iraq and
Afghanistan, we are hopeful this can be included in the package.
By virtue of a provision crafted by former Congressman John
Hostettler of Indiana, the 2006 Defense authorization bill established
a program to allow 50 Iraqis and Afghans who have worked for the U.S.
military as translators for at least 12 months to come to the United
States on a special visa. The program has been underway now for just
over a year and has been met with success and approval by all of the
agencies who work with it.
Since instatement, 445 applications have been received. 377 have been
approved, 10 denied and 58 are pending. Under the current cap of 50 per
year, it will take until 2016 to admit those currently in the queued--
and their families--for entry to the United States.
In order to help reduce this wait-time, my colleagues and I have
crafted an amendment that expands the program to 300 admissions per
year and also makes some other technical changes. We change the
language to include interpreters as well as translators--as that is the
proper term for those who translate conversation while translators work
on documents. We also authorize the U.S. Ambassadors in Iraq and
Afghanistan to nominate non-Department of Defense personnel under this
program, and we exempt those admitted under this program, and their
families from the numerical cap of immigrants who enter in this same,
so-called 4th Preference category. Finally, we wish to sunset the
program after 3 years.
Mrs. FEINSTEIN. Mr. President, we have before us today a supplemental
appropriations bill that will finally start the process of bringing our
troops home.
The United States today is in its fifth year in Iraq. The
administration offers no apparent road out of Iraq. It offers only an
escalation plan that keeps growing, and an open-ended commitment to a
civil war.
The Congress of the United States has an obligation to express its
voice on this matter and to offer a solution.
The search for a solution has been difficult. We have come to the
floor many times this year, and we have struggled to find the right
course of action.
I believe that path is before us today.
This legislation would initiate the orderly drawdown of our forces
and redefine the mission for a small supporting force that would
remain. It sets benchmarks for the administration and for the Iraqi
Government.
This legislation calls for actions which this administration has
stubbornly resisted, including the prompt phased redeployment of U.S.
forces from Iraq. This redeployment would begin within 120 days of the
legislation being enacted.
The legislation sets a goal of March 31, 2008, for redeploying major
combat forces from Iraq. A smaller force would be allowed to remain,
with its mission limited to protecting American and coalition personnel
and infrastructure, training and equipping Iraqi forces, and conducting
targeted counterterrorism operations.
This supplemental also calls for a vigorous ``diplomatic, political,
and economic strategy.''
This strategy would involve ``sustained engagement with Iraq's
neighbors and the international community for the purpose of working
collectively to bring stability to Iraq.''
This is the key to ending the violence in Iraq--the recognition that
the solution to Iraq lies not in U.S. force but in political
accommodation among the Iraqis.

[[Page 7749]]

This legislation also sets benchmarks for the Iraqi Government.
These include deploying trained and ready Iraqi security forces in
Baghdad; strengthening the authority of Iraqi commanders to make
tactical and operational decisions without political intervention;
disarming militias and ensuring that Iraqi security forces are
accountable only to the central government and loyal to the Iraqi
Constitution; enacting and implementing legislation to ensure that
Iraq's oil is distributed to all Iraqi citizens in an equitable manner;
enacting and implementing legislation that reforms the de-
Ba'athification process in Iraq; ensuring a fair process for amending
the Iraqi Constitution to protect minority rights; and enacting and
implementing rules to protect the rights of minority political parties
in the Iraqi Parliament.
Finally, this supplemental requires that the top U.S. commander in
Iraq report to Congress on progress by the Iraqi Government in meeting
these benchmarks--30 days after this act is enacted and every 90 days
thereafter.
Our Nation's present course of action is untenable and unsustainable.
Our very purpose for being in Iraq bears little resemblance to the
reasons Congress authorized the use of military force in October 2002.
What do we have as we enter the fifth year of this war? A terrible
human toll in dead and injured--3,200 Americans killed, more than
24,000 wounded, with estimates of Iraqi civilian deaths that soar well
into the six figures and a toll on our Treasury that is unsustainable.
According to the Congressional Research Service, the Iraq war is
already the fourth most expensive war in U.S. history, behind World War
II, Korea and Vietnam. We are spending roughly $8.4 billion in Iraq a
month--more than $2 billion a week. So far we have spent nearly $400
billion in Iraq. Think of the opportunity costs to this Nation. Wars
cost money. I understand this. But we cannot continue this level of
spending on a distant civil war with no exit strategy. If we keep our
combat forces in Iraq for years to come--as this administration seems
intent on doing--it will likely become the second costliest war we have
ever waged.
Our military cannot continue to bear this heavy burden. This war has
eroded our troop readiness, depleted military equipment, and left our
fighting forces weary.
Consider these developments:
Army and Marine officers say the rapid pace of deployments into Iraq
has put the readiness of their troops into a ``death spiral''--with 40
percent of gear worn out and soldiers and marines left fatigued and
undertrained. Our Nation owes our fighting forces better than this.
The 3rd Infantry Division, scrambling to meet deployment orders,
reportedly has sent injured troops back to Iraq--including ones so
badly injured that they could not put on their body armor. We owe our
fighting forces better than this.
The Army's medical facilities are understaffed and underfunded--not
just at Building 18 at Walter Reed--and its medical staff is
overwhelmed. We owe our fighting forces better than this.
Some 1,800 Marine Corps reservists will get letters this week
notifying them that they are being involuntarily recalled for a year,
thanks to a shortage of volunteers to fill some jobs in Iraq.
This follows news that should make everyone in this Chamber take
notice: The 82nd Airborne Division--the storied ``All-American''
Division--is so strained by this war that it can no longer respond on
short notice to a crisis.
For decades, the 82nd Airborne has kept a brigade on round-the-clock
alert--ready to respond to a crisis anywhere around the globe within 18
to 72 hours. But The New York Times reported on March 20 that the 82nd
Airborne can no longer meet this standard--a standard it has long held
with pride.
I believe the supplemental that we have before us today is the
solution to the Iraq problem. It provides a vehicle for Congress to
express its sense on Iraq and to require the President to take
concrete, measurable steps forward. It sets clear deadlines and
requires vigorous regional diplomacy. It sends a message to an
administration marked by arrogance and declares to the Iraqi Government
that their time has come.
Zalmay Khalilzad, the outgoing U.S. Ambassador to Iraq, said as much
Monday, March 26, in his farewell news conference.
Mr. Khalilzad was direct: The Iraqi leadership must understand, he
said, that time is running out.
Finally, most importantly, this legislation begins the process of
bringing our troops home.
We have a choice today. We can vote for a clear-headed Iraq policy or
do nothing. We can exercise our constitutional oversight duties or we
can be a rubberstamp for a failed Iraq policy.
I urge my colleagues to choose the first path. To choose the other is
to abdicate our responsibility.
(At the request of Mr. Lott, the following statement was ordered to
be printed in the Record.)

____________________

VOTE EXPLANATION

Mr. ENZI. Mr. President, I would like to state my position on
the Cochran amendment No. 643 voted on by the U.S. Senate.
I was unable to vote due to a family emergency but would have voted
in favor of the Cochran amendment. I was pleased to be an original
cosponsor of the amendment.
I do not support congressional micromanagement of military operations
and I do not support the congressionally mandated phased deployment of
our troops in Iraq.
Troop redeployment decisions should be made by military leaders and
the combat commanders who are on the ground in Iraq. I do not favor a
set redeployment date, reporting to our enemies in language ``cut in
stone.''
Congress must provide our troops with the resources they need when
they need it. I fully support our Armed Forces personnel in their
current military operations in Iraq and Afghanistan.
I want our troops to come home as soon as possible. My goal has
always been for American Armed Forces to stand down as the Iraqi forces
stand up. The United States cannot abandon the efforts of the people
who have sacrificed so much.

____________________

MORNING BUSINESS

Mrs. MURRAY. Mr. President, I ask unanimous consent that the Senate
now go into morning business, with Senators allowed to speak for 10
minutes on each side.
The ACTING PRESIDENT pro tempore. Is there objection?
Hearing no objection, it is so ordered.
Mrs. MURRAY. Mr. President, I ask unanimous consent that Senator
Coburn be recognized for up to 1 hour.
The ACTING PRESIDENT pro tempore. Without objection, it is so
ordered.

____________________

HEALTH CARE

Mr. COBURN. Mr. President, I understand that I am to be able to speak
as in morning business for up to 1 hour.
The ACTING PRESIDENT pro tempore. We are in morning business, and the
Senator is recognized for up to 1 hour.
Mr. COBURN. I thank the Chair.
Mr. President, if you go out in our country and you ask, besides the
war, what is on people's minds, the No. 1 topic you will hear about is
health care. And what are the questions that you hear? Why can't I
choose my own doctor? Why can't I pick my own health insurance plan?
Why do my premiums increase every year but my benefits don't increase?
Why do I have trouble understanding which benefits my health plan
offers? Why does my employer get a tax break from my health care but I
don't? Who can make the best health care decisions for my family, us in
Washington, the insurance bureaucrats, other people, my employer, or
how about me? How about me getting to make a decision about my health
care?
There is no question America's health care is broken. It is not that
we

[[Page 7750]]

are getting bad care, it is that we pay a tremendous amount for what we
get in our care. The estimates are anywhere from $1 out of every $3 to
$1 out of every $4 we spend on health care doesn't go to help anybody
get well in this country and doesn't go to help anybody prevent having
an illness. That is $2.2 trillion, and it will be over $2.3 trillion
this year.
When you see what happens--and these are not my numbers, by the way;
these are Price Waterhouse numbers, a breakdown on health care
dollars--what you see are some pretty interesting statistics. You see
that when we go to spend $1 on health care, 35 percent of it goes to
hospitals, 21 percent of it goes to doctors, 15 percent goes to
prescription drugs, and 5 percent goes to equipment.
All the rest of that, the medical liability insurance--nobody
realizes that is 10 percent. Ten cents out of every dollar we spend
goes to medical liability. We are insuring against a problem in health
care--10 percent. It costs us 6 percent to process the claims. One-half
of all the claims filed against all the insurance companies in this
country are denied because the people haven't met their deductible, and
yet we keep sending the claims, keep spending the money.
One out of every three people who works in a hospital, one out of
every three people who works in a doctor's office doesn't do anything
to help anybody get well. Why is that?
It is because of the system we have set up. If you add this 10
percent for liability insurance, 6 percent for processing, 5 percent
for marketing, 23 percent for the insurance industry profit--and I
doubt seriously it is that low--what you come up with is 24 percent, as
a minimum, that doesn't have anything to do with helping anybody get
well.
Now, why is that? Why is it we have this system? It is because we
have somebody besides the patient choosing what they will get in terms
of health care. In Medicaid, it is your State. Oftentimes in Medicaid
it is your State paying a very low rate, so now you get to choose from
those who will accept the lowest rates. In Medicare, they tell you
exactly what the price is. We spend all our time around here trying to
change Medicare, because when we push on the balloon one way, something
else pops out.
So whether it is the Deficit Reduction Act or some of the other
things we have had, what we find is we cannot control this tiger
because we have a bureaucratic maze that nobody understands. When we
try to use price controls, when we try to limit expenditures, we end up
losing control.
So what happens? Who makes your health care decisions? Either CMS,
the Center for Medicare Services, in conjunction with your State,
either for Medicare or Medicaid, your employer, or an insurance
company.
Whatever happened to you making decisions about your health care,
about which doctor, about which insurance policy, about which hospital
you want to go to? And why is it that if you happen to be Medicaid, you
get to choose less than somebody who doesn't happen to be Medicaid? Why
is it we are treating in an unequal fashion those who are the poorest
among us?
Why shouldn't we have the right to pick what insurance benefits are
best for us? Why shouldn't we have the right to choose who is going to
be our caregiver, whether it is a doctor, a nurse practitioner, a
physician's assistant, a chiropractor, or an optometrist? Why shouldn't
we get to choose that, rather than an insurance company or an employer
deciding who we can or cannot see?
They also decide the price we are going to pay because we are trying
to control all these costs. They are also going to decide which
hospital we go to. But how is it that we have a system now where
everybody except the patient gets to decide what happens to them in
terms of their health care?
We can't afford the health care system we have today. For one thing,
16 percent of our GDP, the highest of any country in the world by 50
percent, is spent on health care. Although we have good health care, we
don't have better health care than those countries that are spending
less. We are spending 16.2 percent, or $2.3 trillion, per year on
health care, so we should be 50 percent better off. We should have a
50-percent better life expectancy, 50 percent less heart disease, and
50 percent less cancer. Of the money we spend on health care, fully
three-quarters of that is spent on five diseases.
Think about that: 75 cents out of every dollar that actually gets
into health care, which is only 60 to 70 percent of the money we
actually pay into health care, 75 cents of that goes for either heart
disease, stroke, chronic obstructive pulmonary disease, diabetes, or
cancer. Five diseases, most of which are readily preventable--not
partially preventable but readily preventable--through increased
prevention activities.
This Government this year will spend $20 billion on prevention in 12
different agencies, through 27 different programs, none of which are
coordinated to try to maximize the education of the American people to
what they need to know about their health care so they can make
decisions on prevention. Consequently, we are very ineffective with
prevention.
If you look down the road at what is coming in terms of Medicare and
Medicaid, what you see is an unfunded liability of over $60 trillion--
$60 trillion--we are adding. This isn't about health care now. That $60
trillion that is getting ready to hit our kids and grandkids in terms
of Medicaid and Medicare that we have promised for the future, that we
have no way to pay for now, one of the great ways of lessening that
number is to change what we do on prevention. Prevention is the key.
Grandma was right: An ounce of prevention is worth a pound of cure.
As a matter of fact, it is said in 2070 $1 out of every $2 that
Medicare spends, at our current rates, will be spent on diabetes--$1 of
$2. So when you look at this Medicare number, with the vast majority of
the baby boomers who are going to retire and then their generation is
going to retire, $1 of every $2 that will be spent by Medicare will be
spent on one disease only, which means we only have $1 to spend on all
the rest of health care for seniors, plus any attempts at prevention
and at early diagnosis or new and modern treatments. We can't continue
without a coherent plan on health care.
The other problem that is facing us as a nation is right now we can't
compete globally in many areas because of health care costs. When you
compare GM and Toyota, there is a four times greater differential for
what goes into a car made in this country by one of the Big Three
versus what goes into a car made outside of this country by their
competitors. So there is no way that we can, in fact, be competitive
globally until we handle health care. There is no way we can handle
Medicare and Medicaid until we change the health care system.
Myself and Richard Burr and several other Members of the Senate will
be introducing a bill tomorrow that addresses every problem our health
care system faces today, whether it is tort liability, and making sure
people get awarded what they need when a mistake is made during the
practice of medicine, or whether it is immunizations. The fact is, we
have very few States where we have achieved 90-percent immunization.
We are going to address every problem we face, the liability that
comes at us in the future through Medicaid and Medicare, the problems
we face on liability, the problems on access, the inequality that
somebody, because they happen to work at a very low-paying job, gets
stamped with something on their forehead that says, you are of less
value than somebody who happens to work someplace that has great
insurance and a higher paying job.
Our bill changes all of that, and instead of going to the Department
of Motor Vehicles to wait in line, we are talking about a health care
system where you, the consumer, are No. 1. The government isn't No. 1,
the doctor isn't No. 1, the hospital isn't No. 1, the drug company
isn't No. 1, but you, the patient, become No. 1. You get to choose what
insurance you want, you get to choose what kind of insurance

[[Page 7751]]

you want, and you get to choose how much you will pay for it. We create
a new insurance market where everybody gets to play by an even set of
rules.
How do we do that? We do that by giving everybody the same advantage
in this country when it comes to health care, and that is a refundable
tax credit, $2,000 for every individual, or $5,000 for every family.
What that means is, if you are earning about $120,000 a year or less in
this country, you will gain in terms of your taxes off of this bill. If
you are making $120,000 or less, what is going to happen is you are
going to have the option of staying with your employer, if you like
what they have, and that tax credit will be available to your employer.
But if you decide you want something different, maybe it offers
something you don't get covered today or doesn't cover a whole lot of
things you think you need, you can take that tax credit and buy that
insurance and save the difference in the money for your future health
care. The Universal Health Care Choice and Access Act provides $2,000
for every one of the 45 million uninsured tomorrow, every one of them
as an individual.
Now, what does that buy? People say: That won't buy much. Well, if
you go to Kentucky and you happen to be 35 years of age, you can buy a
$2,000 yearly deductible policy for $897 and have $1,300 or $1,100 left
over between that and the deductible. If you try to buy that same
policy in the Chair's State, it is almost $6,000 for that identical
policy. Why? Because government has decided in New Jersey differently
than what government has decided in Kentucky. Therefore, the cost of
getting this minimal coverage, because of the mandates put on by
government--not what a patient wants but by what government says
patients should have--makes that unavailable in New Jersey.
How do we fix that? We allow people to buy insurance anywhere they
want, just like they buy their auto insurance today; like they buy
their homeowner's insurance. They can buy it from any company anywhere
in America, as long as they have a registration with a State. We create
a primary and a secondary location for that. So if you want to buy
something that has a better price, that fits your needs, you have the
capability to do that and put the difference into a health savings
account, where you can use it for future health care needs, that you
can use to apply to any deductible, or if you get enough money in it,
you can bring it down to where, if you want to, you can have a zero
deductible--if you want--but most people will not want to do that. We
allow you to select a health plan that truly meets your family's needs,
not what some Government bureaucrat says or some Senator says you must
have. It is what you want. We allow individuals to choose what they
want in terms of their health care.
What will that do in terms of the market? That is going to create
innovation in the health care market all across this country. It is
going to cause competition like crazy for the dollars. Once we truly
have competition, which is something we do not have in health care
today, which we tremendously need, then we are going to see a big
change.
The other thing this does is it gives access for affordable health
care for a ton of people who do not have it today. They get to choose
their health care provider. The patient gets to choose who takes care
of them. Not the Government, not their employer, not the Senate, not
their State insurance commissioner, but they are going to get to choose
who is going to take care of them. It is the right to choose who is
going to care for you.
How do we do that for the States? We do not mandate anything for
anyone. We do not say anybody has to do anything. But we create a lot
of incentives. We tell the States that, if you want to, you can take
your Medicaid funds and your disproportionate share funds and anybody
who is Medicaid eligible, under the 133 percent of poverty level, you
can take their $2,000, plus the Medicaid money, plus the DSH money, and
you can help them buy an insurance policy in your State. If you want to
stay with Medicaid, you can stay with Medicaid. There is no mandate
from the Federal Government other than to get people into coverage.
You ask any government tomorrow if they would take $2,000 per
eligible person in their Medicaid program, would they take a deal with
them having the freedom to design what is best for their State? Every
Governor will tell you yes. Every Governor will tell you yes. Why?
Because now we are given the resources there to allow a Medicaid
patient to be just like everybody else--a Senator, their mayor or
somebody who works at the best factory in town. They have an option to
not be discriminated against because they show a Medicaid card. Now
they have an insurance card. People ask: What about the people who do
not want to have insurance? We allow the States the opportunity to have
a default mechanism. If the State of Tennessee--I see the Senator from
Tennessee here. If the State of Tennessee wants to decide we will
option, if we have people in our State who are going to be so
irresponsible that they will not even buy themselves coverage and they
have an opportunity to take tax money to do that, then we are going to
create a default mechanism whereby the State of Tennessee--if you are a
25-year-old motorcycle rider and you don't want to buy insurance, they
can take your tax credit and buy a high-deductible policy for you so
when you go to the ER, all the rest of us don't have to pay all your
costs. What is happening in our health care system is we keep
transferring the costs so we have a rationale for jumping up the price
because they are doing something for somebody else at a low price.
What the real facts are--and we never hear it--the real facts are,
when you look at the hospitals out there, all--the vast majority of
them--and this is a very key, important point--the vast majority are
nonprofit entities. That means they pay no income taxes, they pay no
payroll taxes. On order, the vast majority, and on average, offer 10
percent of their total billed care as indigent care.
But that is not a real number. The reason it is not a real number is
because they bill the highest prices they have for that indigent care.
If you look at the cost of that care, it would be far below that. I
know in the State of Oklahoma, the hospitals there last year billed
over $5 billion in revenue, made over $5 billion in profit, and out of
that they billed another $400-some-odd million in care that was
uncollectible to people who did not have insurance or couldn't pay.
That was not really their cost. That was their billed price.
Remember, we give this nonprofit status to all these entities, this
$500 million worth of profit in Oklahoma, for example, and they pay no
taxes on that. They pay no real estate taxes. In essence, they offer
about $100 million worth of charitable care.
What this bill does is it takes away all the cost shifting.
What are the other things we do? We incentivize high-risk pools. What
about the person who gets a chronic illness and they say all of a
sudden their insurance company drops them. We have incentivized so the
insurance company is not going to do that. In every State we give a
bonus if they set up a high-risk pool and then the high-risk pool is
funded out of everybody who is insured in that State. So if you have an
insurer insuring someone with complications from diabetes and they say
we will drop this person because it is too costly, they go to the high-
risk pool. Guess what. That insurance company is going to pay for them
anyway. There is no benefit for them to drop them. There is all the
benefit then for that insurance company to get busy and involved in
managing the chronic disease, where we know we can eliminate
complications, we can improve the quality of life, and we can also
increase life expectancy by managing the chronic disease.
Here is what we do for Medicaid patients. They get a $2,000 check
from the Federal Government plus from their State. They can go into
whatever plan they want. If their State says we want to stay with
Medicaid and take that in enhanced Medicaid, the State gets to do that.
There is not a mandate in anything. What it says is: If you think a

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State Medicaid Program is better for your State, without choice, then
you can do it. But all the rest of the States are going to say I think
I would rather have our Medicaid patients have a true insurance, a real
card where they have the same access, the same equality of access as
anybody else.
All of a sudden you have everybody in the marketplace compete. They
can stay in a State-run system. They get to save what they don't spend
on their health care for future health care needs.
One of our problems is savings in this country. It is important. How
do we fix our health care system? We know that, if we look at the
liability costs that showed 10 percent of the health insurance dollar
going for liability insurance, that is an underestimate. The American
Hospital Association found, recently reestablished by another
organization, I can't remember who, that repeated the study--what we
know is each year, today, besides that 10 percent, providers order
another 8 percent of the cost of health care for tests that patients do
not need.
Why do they do that? They do that because they perceive they need to
have everything on the books to defend themselves that they can have,
so they fire a shotgun at it. We will get this test, this test, this
test--knowing they don't need it but they operate under the ``what if''
scenario, this adversary system that we have.
Finally, we address liability. We give another percentage bonus to
the States that will set up what is called a ``health court'' system.
It is a real simple system. If you have a complaint against a provider,
a hospital or a doctor, you can go to the health court. You don't have
to go to the health court. But you can go to the health court and you
can be seen in front of three lawyers, three doctors, and a judge who
have their own expert witnesses. This judge is schooled in medical
malpractice. They can make a decision for you right then.
If you accept the decision, then you give up your right to go to
court. If you don't accept the decision, you can't ever come back to
that court on that particular issue, but everything you do in court is
admissible. We do not take away anybody's right to go to court. But
what we do accomplish is making sure people get made whole quicker and
cheaper--40 percent now doesn't go to the trial lawyer for you to get
made whole.
There is no question we make mistakes in medicine every year. But why
should we drag it out for 3 to 5 years, No. 1. Why should we pay 40
percent of whatever the ultimate award is to somebody who helped us
accomplish that, where we can set up a system that will arbitrate that
in front of a nonbiased group of peers, lawyers and doctors who say:
Here is the right thing, here is the medical case, the legal case,
let's make a decision and send it on.
What it does is it saves tons of money directly, but what will it do?
As soon as you create confidence on the part of providers that they do
not have to order this other 8 percent of tests, you are going to see
that dropping about half. So we can gain 4 percent in this cost of
health care by setting up health courts, by changing the dynamic under
which we make sure people are made whole when something happens to them
in the medical malpractice area.
Not every State has to do this. But if your State decides to do this,
you get a 1-percent bonus on your Medicaid money--out of a large pool.
We have lots of ways in which we do not say we want the States to do
this and now we are going to tell you how to do it. We are saying here
are some ways we think you can also do it. Go figure out the best way
for you, and by the way, if you do some of the things that we think
will save some money, here is some extra money for you.
Ultimately, if we do not fix health care--everybody in this Chamber
knows we are going to go the way of Western Europe and that is the
following: We are going to decide that we are going to have a single-
payer system run by the Government. As P.J. O'Rourke says: ``If you
think medicine is expensive now, wait until it is free.''
We are going to control costs. We are going to do it the same way we
are trying to control costs with CMS. What happens? What happens is we
are going to start rationing care.
Let's take some real statistics. In England, diagnosis? Cancer. In
England, if you get a diagnosis of cancer right now, the average
starting time for your chemotherapy is 10 months after your diagnosis.
Anybody here who wants that kind of medicine will vote against this
bill. That is exactly what we get. We get rationing. What it means is
people with great potential will not get the treatment in time to
capture that great potential. What it means is great suffering. What it
means is loss of innovation. What it means is a lack of available, fair
access. It is everything in England in their health care system takes
away all freedom.
It is also interesting to know this past year in Canada there was a
lawsuit filed, which was won. What this individual said is the Canadian
law says I can't go to anybody except a Canadian doctor who is owned
and run by the Government. They challenged that. The Canadian supreme
court ruled on the side of the patient: You ought to have the right and
freedom to go wherever you want, to whomever you want if you are
willing to pay the bill.
Paying the bill is the insurance part of this. If you want to be able
to have that access, then you are going to want to be able to buy a
policy that allows you to have it. If you don't want that access, you
can buy a policy that says here is a straight HMO, here are the only
four doctors you can go to, and here is the hospital you are going to
get to go to.
We are talking about freedom in health care. How do we get to the
bottom line, away from 16 percent of our GDP, down to 10 percent of our
GDP? More importantly, how do we create a system that gives us better
quality, at lower cost, with better value. That is what we are talking
about.
I yield to the Senator from North Carolina.
Mr. BURR. Mr. President, I commend my colleague from Oklahoma, a dear
friend and somebody who has been passionate about health care for
years. He and I came to Washington together in 1995. We served on the
Energy and Commerce Committee, and we recognized then that changes
needed to be made. Every year we have seen the same response in
Washington. We have seen the end of a calendar year come, the need to
find savings in health care. Administrations, Republican and
Democratic, turn to Medicare and Medicaid and say we are going to
extract $60 billion, $70 billion out of savings in these health care
systems. We have laughed as they called it ``waste, fraud, and abuse''
because there is waste, fraud and abuse in it. We just didn't get any
money out of it because we have been reluctant to fix the health care
system in this country.
What are we doing? What is this plan? This plan is universal health
care. Let me say it again. This plan is universal health care. This is
providing affordable, accessible health care, provided by the private
sector, for every American in this country.
This is change in the design of health care that has been
historically, up to this point, employer negotiated, the majority
employer paid for, and an employee has very little input into the
makeup of the policies that cover them.
It doesn't reflect their age, it doesn't reflect their health
conditions, it does not reflect their income.
What we are talking about is shifting it away from employers over
time. We are talking about creating real incentives for individuals. We
are talking about making sure 47 million uninsured Americans today and
tomorrow have tax credits that can be used for real insurance coverage.
What does that provide for them? For the first time, it creates a
relationship between a patient and a health care professional.
We have talked in this institution, we have talked in this town, and
we have talked in this country about the need to project wellness and
prevention in health care. Well, this does it. This,

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for once, accomplishes that because we as individuals can negotiate our
plans, not through the group plan but as 250 million-plus Americans. We
can negotiate what makes sense for us from the standpoint of the scope
of coverage that reflects what we are willing to pay as it relates to
premium--and, by the way, provides States the capability to do the same
thing with their Medicaid beneficiaries, their Medicaid patients, if,
in fact, they want to begin to change the way their care is delivered,
by creating the same relationship between a health care professional
and them, because they now have the same insurance we do.
Medicaid beneficiaries have this big ``M'' on their foreheads. They
do not want to be on Medicaid, but they are there because it is the
last resort. What we want to do is integrate them into what all of the
rest of us have; that is, individual insurance.
Dr. Coburn hit on a real key; that is, an attempt to bring everyone's
health care costs down. It is not to pick out a group and to say, We
are going to reduce yours, and pick out a group over here and say, We
are going to reduce yours. This is an attempt--it is the first real
attempt--to bring every-body's health care costs down.
What we learned when we created Part D Medicare, the drug benefit for
35 million-plus seniors in this country, was that when we created real
competition between insurers and we brought transparency to price, two
very real things happened: In the first year, premiums dropped 28
percent over what we had projected, and drug pricing dropped 33
percent.
We have a model we have already tried that seniors across this
country say: Do not mess with this plan. That, in fact, exemplifies
what we are trying to do. We are trying to create real competition
between insurance for our insurance business; we are not letting one
employer negotiate the plan and then dump it on the employees. But the
question is, Can we have the same results as Part D by seeing the cost
of health care reduced for all Americans? Well, you start that process
when you eliminate cost-shifting. You accelerate that process when you
inject what this bill does; that is, transparency in the price of
health care that is delivered to you.
Imagine the day that you can go online and you can actually see what
your doctor's visit is going to cost, what the lab workup is going to
cost, what a visit to the emergency room at your local hospital is
going to cost. In markets in North Carolina today, some choose not to
go to the hospital for the nonemergency care, even though that may be
their primary provider; they choose to go to the community health
center because the community health center actually delivers the same
if not a better level of care. But one thing is for certain: They know
exactly what it is going to cost them. And these are individuals who
are insured.
For the first time, all Americans have an opportunity at prevention
and wellness. What does that mean? It means we can make decisions about
our health care that have an impact on the cost of our health care to
us and consequently have a ripple effect across the marketplace, that
as more and more Americans make healthy decisions, the cost of health
care overall comes down.
It means we have freed up those valuable health care dollars to make
sure they are there for the individuals who are going to be susceptible
to disease--chronic or terminal illness.
It means the relationship we have now established between patient and
health care professionals means we have recognized we can accumulate
the data we need so that Medicare reimbursements are no longer a shot
in the dark where we pull a number down that may not be reflective of
the cost of delivering the service, may not be reflective of the value
of the service. The reality is that when we create that relationship,
we are able to accomplish the accumulation of data that tells us what
things really should cost.
In health care, those healthy decisions allow individuals to make
decisions about disease management. The most costly part of the U.S.
health care system is the chronic diseases that exist and our inability
to manage those diseases. The most expensive is diabetes.
Today, we have electronic capabilities for diabetics and for coronary
heart patients where, at different periods during the day, their vital
signs can be transmitted over a telephone line to their doctor. The
doctor can instantly know whether, if it is a diabetic, they are
managing their insulin. If it is a coronary heart patient, they can
determine whether the fluid buildup means they need to adjust their
medication. What does that give us the ability to do? It means we can
take a patient who up to that point got too much fluid on the heart,
made an emergency room visit, and in all likelihood was admitted for 3
days as they get the medicine back in balance. Now, a doctor, 24 hours
a day, as these reports come in, can change their diuretic, can work
with a diabetic on checking their blood sugar and what their insulin
intake is, can detect whether they took the right medication. We can
extrapolate that across every disease because technology now lets us do
it in a real way. If we are not able to do this, then we are not able
to recognize the value of new technology.
So much technology today that would benefit us in the Medicare
marketplace is not reimbursable by Medicare. It is a decision they make
because it is not tested in the marketplace; therefore, it has no value
because they do not know how to reimburse for it. Well, the reality is,
when you have a health care system that responds to the benefits to
individuals, all of a sudden you have the market that creates a value
for the technologies and for the innovations.
So I am delighted to be here. There is so much to this bill. This
bill is the most comprehensive transformation of the health care system
in my lifetime.
One might say it is difficult to do so big a bite at one time. I made
that mistake. The reality is that when you look at the timeline we are
up against every year we do not adopt this type of transformation of
our health care system, more Americans become uninsured, more
individuals with preexisting conditions no longer can afford health
care, and the cost of everybody's health care in America goes up
because we have not eliminated cost-shifting.
With disease management we could do today if, in fact, people had
incentives in their system to take the time to monitor their health, to
take their medication, to counsel with health care professionals about
changes they could make, the more money we can save not only for each
one of us but for the total system.
I am convinced that if you could only pick one thing out of this plan
that you highlighted for the American people, it would be this: For the
first time, we are presenting a very real way to insure 47 million
Americans, the people who are most at risk in this country. If all of
us were the beneficiaries in some way of reduced prices, more access,
the ability to have transparency in pricing, the accumulation of data,
electronic medical records that enable us to find savings, if that is
the byproduct of us finding a way to use savings in the system to
insure 47 million Americans, I believe that is the right thing to do.
The President came out in the State of the Union and he presented a
very similar plan. Our plan expands on what the President said. Our
plan goes to the heart of the health care system and says: If we are
going to change it, then we have to go through total transformation.
This is that total transformation that at the end of the day empowers
every individual in this country to have custom health care coverage
for themselves, for everyone in their family, for their health
conditions, for their income and, more importantly, for their security.
So I commend the Senator for his work. I now look forward to working
with him as we go through what I think will be a very intellectual
debate about the future of health care in this country. As some look at
Europe and look at other countries and say, Maybe we ought to do that
in the future, I believe if we adopt this method we are going to have
every country in the

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world looking at this model and saying, How do we do this? How fast can
we do that?
Mr. COBURN. People may be saying: Well, how do you know this will
work? There is a great little company named MedEncentive. They have
been running pilot programs all across the country. Let me explain what
they do. They get doctors to agree to follow a certain set of protocols
called best practices, and they sign up communities, municipalities,
and their employees, and then they do a couple of things. They take
them under coverage, and they reward the employee--i.e, the patient--if
they will use those doctors.
What is unique about this system? One is, after the patient has
finished their office visit with the doctor, they have a patient-doctor
interactive form they fill out that says: The doctor wants me to take
this medicine. I understand this. Here is the reason he wants me to
take this. So they have to fill out the form to say they really
understood.
The other thing is, on the professional side, the practitioner side,
they agree to follow the best-practice model in how they treat these
patients. That was actually developed by Vanderbilt, where they
followed a best-practice guideline which helps them decide what to
order, what not to order, what to do, what not to do in terms of what
is best for that patient. They can get off if they choose to, if they
think in their medical judgment that they need to.
What has been the result? The three published results that I know of,
in all three communities, in the first year of operating this where
there was this competitive model, best-practice quality outline,
patient followup, because the insurance company is involved in making
sure the patient does that--what happened to their health care costs?
One down 18 percent, one declined 22 percent, and one declined 12
percent. Now, that is just in three. Each one of them had 300 or 400
patients and took all comers, chronic disease or not.
How did their costs go down? The costs went down for a lot of
reasons. One is they were practicing not defensive medicine, they were
practicing real medicine. They were not throwing tests at a patient
because they were worried but because they had the background of the
excellence of Vanderbilt University as a practice guideline at their
defense.
So what we know is that in the various test models where true
marketing, true competition, true transparency as far as price, true
concern for the patients' well-being, not just at the office visit but
thereafter, wellness and prevention were modified, what happens is
costs go down.
That is just in three cities in Oklahoma. It has been done all across
this country. But what we do know is that if we attack it in a
nonbureaucratic way, but we allow competitive forces--which would you
rather have, an insurance company that is invested to try to make your
health better or one that just wants to make a dollar on you and turn
on you?
So going back, let me just kind of summarize. The system we have
today limits our ability to do what we as Americans do well; that is,
discern value for what we have purchased--discern whether we get value
for it, discern how to do it, and we discern that on an individual
basis.
Our health care is not designed on an individual basis. In many
places, we get one-size-fits-all; what the Government says you will
have or what the State says you must have, you must buy this. I believe
a lot of our problems have come because we have tried to micromanage it
from Washington and from the statehouse. What we are talking about is
giving freedom of choice, not just to patients and providers but to
insurance industries.
Imagine the tremendous possibilities that will come into a market
that says: This is a new day. I get to market all sorts of different
things that might match up with different people. All of a sudden, now
I will have to compete not only with people in my State but all across
the country for the best plan that gives me the best value that meets
my needs. Why would we not want that? We have that in every other
thing. Why would we not want to capture the best aspect of the American
consumer, which is discernment?
Not long ago I was sitting with some friends and put forth the fact
that I believe Americans are smart enough to know what they want in
health care. The idea got pooh-poohed. I thought, how insulting. We can
figure out what computer to buy and how much memory we want and how big
a hard drive we want and whether we want a photo section on it or a
print lab. We can figure out all of those things--as a matter of fact,
our 10-year-old kids can figure that out--but we can't figure out how
to buy health care. We are going to say to the American people: You are
not sophisticated enough, you are not smart enough to know what is good
for you or to know what you need. So, therefore, the Government is
going to tell you what you need. That is what we have today, whether it
is the Government or your employer or somewhere else.
This bill changes all that. This is a bill that will create
transparency so you as a consumer can know what something is going to
cost. It is going to create a situation where you can perceive whether
you have value. It is going to create an incentive to save for health
care for the future and an incentive for wellness, not just by what the
insurance company will come to sell you but by the $20 billion that we
are now spending, of which less than $2 or $3 billion makes any
difference at all in somebody's health care. We are going to focus that
on true prevention. We are going to direct that the HHS relook at every
one of these programs and develop a model to where we educate the
American people about the risk.
Let me give a personal story. I am a colon cancer survivor. What we
do know is with good prevention and good screening, one out of every
two people who are going to get colon cancer we can keep from getting
it. Why wouldn't we do that? Why wouldn't we prevent half the colon
cancer in this country? We don't have a good reason. One of the reasons
is because we have an ineffective prevention program.
I am a small government person; I admit that. But there is a
legitimate role for the Federal Government when it comes to teaching
America about our health needs, prevention, and wellness. We have
plenty of money to do it if we take the same money we have now and
redirect it in a way that educates the American people. Innovation
works. We know that. Competition works.
Take, for example, a year ago a 46-inch plasma TV cost $11,526. Today
you can buy the same thing for $2,300. Next year you will be able to
buy it for $1,400. The next year you will be able to buy it for $700.
Why? Competition. Competition breeds quality and value, only if you
have a market under which you can operate. We don't have that today in
health care. Innovation also works in health care.
Look at Lasik. Here is a procedure that is not paid for by the
Government. It is not paid for by any of the insurance industry. But if
you are nearsighted and you want to be able to look far away, you can
get that done. When it first started, it was $4,000 an eye. Now there
are places you can get it done--the same piece of equipment, the same
computer--for $500 an eye. Why won't that work? It will work in health
care. It will work. Innovation will come as a result of that.
What happens when we innovate. What we get is better quality at a
lower price and better value. I am hopeful that as the American people
look at this, they will be reminded of a couple things. This is
universal coverage. Everybody in America gets treated the same by the
Federal Government when it comes to health care. Everybody in America
is on equal footing as far as the Income Tax Code is concerned when you
go to buy your health care. No longer do we advantage the very rich
with $2,700 a year in tax benefit and the very poor with $100. We
totally neutralize that and say: Everybody ought to be treated the same
under the Tax Code for health care. It is universal coverage.
No. 2, it takes away discrimination. Because you are poor, because
you

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don't have the ability to have a job that has insurance coverage today,
and if, in fact, you are at 133 percent of poverty, why should you be
discriminated against because you are on the Medicaid Program? This is
no offense to any practicing professional out there because there are
great professionals who are taking care of Medicaid patients. But if
you look at the marketeering, the ones with the best doctors, as a
rule, because Medicaid pays so low, do they have time to take care of
Medicaid patients? No. What happens is, somehow they don't have time.
So what we have done is discriminated down with Medicaid patients.
Why shouldn't a Medicaid patient get the best doctor every time, just
like a Senator? Why shouldn't they have access to capability? Why
should they be discriminated against by having a Medicaid stamp on
their forehead? We are talking about universal access, equality of
care, and personal freedom and choice. You get to decide what is best
for you and your health care and your family.
By the way, when you get this money and you haven't spent it all, you
get to save it for next year and the year after and the year after. You
can buy what is best for you with that money.
This money also goes to retirees. If you retire at 60 and are not
eligible for Medicare, you still get your tax credit. We don't
discriminate against anybody. Everybody gets the tax credit.
The final thing I would say, it doesn't cost the American taxpayer
one additional dollar in income tax. There will be no increased cost
with this plan. Actually, we have tried to make it revenue neutral. My
worry is that it will save us money. We have tried to make it where it
does not. We have tried to make it the most generous thing we can to
get the most coverage for everybody out there. Again, prevention first,
free choice, freedom, and liberty. You get to decide who cares for you,
what insurance, what hospital, and every American gets that. It is the
Government not telling you what you must do but saying here is what you
can do if you want.
I yield to the Senator from North Carolina if he has any additional
comments.
Mr. BURR. I would only use that time to thank the Senator from
Oklahoma. This is a crucial debate that this country needs to have,
this institution needs to have. More importantly, we are at a point
where we have to stop talking about what we are going to do and
actually start doing something. The Senator from Oklahoma has stated it
very well. What we can do is bring a higher level of care to all
Americans--not just some Americans, to all Americans. Through that
effort, all Americans receive a financial benefit. Our system prospers
because we are able to take care of more, and we are able to provide an
unlimited opportunity in the future because we unleash innovation and
technology in health care.
I have wondered what it would be like if we had innovation at the
same level in health care as, say, in cell phones; that we would have a
new platform every 6 years, and that platform would provide an array of
opportunities to us that we are not forced to take, but they are
available to us if, in fact, we want them. Health care has been starved
of innovation, in large measure because it treats every American
differently. This is the first real opportunity for universal coverage,
universal access, where every American has an opportunity at the best
coverage available.
I thank the Senator from Oklahoma.
Mr. COBURN. I yield the floor and suggest the absence of a quorum.
The PRESIDING OFFICER (Mr. BROWN). The clerk will call the roll.
The bill clerk proceeded to call the roll.
Mr. REID. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.

____________________

RENO-TAHOE YOUNG PROFESSIONALS NETWORK

Mr. REID. Mr. President, I rise today to honor the Reno-Tahoe Young
Professionals Network, RTYPN. This important organization has been
formed recently by local community leaders and will provide a
significant service to northern Nevada. I am pleased to recognize the
group here today.
The Reno-Tahoe area has been growing swiftly for the past decade. The
region enjoys a strong and relatively diverse economy, offering a range
of jobs and professional opportunities. Reno-Tahoe also offers a
wonderful quality of life and some of the finest recreational
opportunities in the Nation.
Despite the overall growth and undeniable lures to the region, it has
not succeeded as well in attracting and retaining young professionals,
a demographic critical to its continued and future economic growth. To
address this issue, the Economic Development Authority of Western
Nevada, EDAWN--through the leadership of Chuck Alvey, Michael Thomas,
and consultant Stacey Crowley--wisely recognized the need to provide
young local professionals with an opportunity to meaningfully engage
with regional business and community leaders and participate in
directing the region's future.
Toward that end, EDAWN launched the RTYPN, an organization designed
to teach valuable skills, provide networking and leadership
opportunities and participate in the regional discussion about how to
capitalize on the region's assets to grow a better community and
economy for the future. With the partnership of organizations such as
EDAWN and the Reno Sparks Chamber of Commerce, the creation of RTYPN
shows the vision and resourcefulness of the Reno-Tahoe community and I
am eager to learn of RTYPN's future successes.

____________________

NATIVE HAWAIIAN GOVERNMENT REORGANIZATION ACT

Mr. AKAKA. Mr. President, on January 17, 2007, Senator Inouye and I
introduced S. 310, the Native Hawaiian Government Reorganization Act of
2007 to extend the Federal policy of self-governance and self-
determination to Hawaii's indigenous people. This measure is of
critical importance to the people of Hawaii. It would, at long last,
clarify the existing legal and political relationship of Native
Hawaiians with the United States, allowing for the formation of a
government-to-government relationship.
Mr. REID. Mr. President, I am very well aware of the support of the
Senator from Hawaii for this measure and his determination to see it
enacted. As a result of the hard work by Senator Akaka as well as his
colleague, Senator Inouye, on behalf of this legislation, every Member
of this body should know how important this bill is to the people of
Hawaii.
Mr. INOUYE. I thank the Senator for his recognition of our continuing
perseverance and unwavering resolve to move this measure forward. At
its core, S. 310 is about equity. It is about establishing parity in
the Federal policies towards Native Americans, Alaska Natives, and
Native Hawaiians. Our U.S. Constitution is clear in the means by which
it addresses the status of the indigenous, native people of this land.
It is a status based not on consideration of race or ethnicity, but
rather on the political relationship that existed between the United
States and the native people who occupied and exercised sovereignty
over lands that later became part of the United States.
Mr. AKAKA. Mr. President, the senior Senator from Hawaii is
absolutely correct, and I appreciate both his comments and that of our
majority leader about my efforts to date. I first introduced this bill,
together with the members of Hawaii's Congressional Delegation, in
1999. And, I have introduced a similar bill every Congress. In each
Congress, the bill has been favorably reported by the Senate Committee
on Indian Affairs, and its companion measure has been favorably
reported by the House Committee on Natural Resources.
During the 109th Congress, Senator Inouye and I were successful in
filing a cloture motion to proceed to the bill. This procedural action
required 60 votes to bring the bill, S. 147, to the Senate floor for a
full debate and vote.

[[Page 7756]]

Falling four votes short of the required 60 votes, cloture was not
invoked. As a result, the Senate has not yet voted on the substance and
merits of this bill. In fact, the cloture vote demonstrated that if the
measure was considered on an up-or-down vote, the votes are here to
pass it by a simple majority.
Senator Inouye and I are currently working to have S. 310 considered
by the Senate Indian Affairs Committee in the near future, and brought
to the Senate floor shortly thereafter. In the U.S. House of
Representatives, the companion measure, H.R. 505, was scheduled for
markup by the House Natural Resources Committee, but Hawaii Congressman
Abercrombie was not able to be present. At Congressman Abercrombie's
request, H.R. 505 is being rescheduled for committee consideration
shortly.
Mr. REID. Mr. President, through his position on the Indian Affairs
Committee, the senior Senator from Hawaii has demonstrated leadership
on and knowledge of Indian issues. He has been second to no Member in
this body with his empathetic advocacy for fair and equitable treatment
of Native Americans. I can clearly understand what drives both Hawaii
Senators to secure some measure of fairness and self-determination for
the indigenous people of their beautiful home State. Senator Akaka's
description of events here in the Senate culminating with a failed
cloture vote was accurate.
However, I want to be very clear to every Member of this body: As a
Senator from Nevada, I strongly support S. 310. As majority leader, I
am committed to ensuring Senate consideration of S. 310 and will work
with the Senators from Hawaii to gain the support of members from both
sides of the aisle. This is my commitment to the gentlemen from Hawaii.
Mr. INOUYE. We thank you, the leader. Native Hawaiian programs and
institutions continue to be under attack in the courts. Hence, there is
an urgency to act and to clarify that the status of Native Hawaiians is
a political question best left to the political arena, namely the
Congress, to resolve.
Mr. AKAKA. I deeply appreciate the leader's commitment and support.
Hawaii is the only homeland of the Native Hawaiian people, and I remain
committed to empowering the people of Hawaii and our Nation to preserve
a Hawaii that respects Native Hawaiians and the contributions made by
those who have made Hawaii their home.

____________________

BUDGET RESOLUTION

Mr. CHAMBLISS. Mr. President, I voted against the budget resolution
for the 2008 fiscal year because it contained record-breaking tax
increases on hard-working American families in a time when we should be
putting more money back into the pockets of taxpayers, not taking it
out. This year's budget resolution is historical because it proposes
the largest tax increase ever--$916 billion in tax increases on the
backs of the American people. This is almost four times the amount of
the second largest tax hike in history, $240 billion proposed in 1993.
By letting progrowth tax policies expire, this resolution reaches deep
into the pockets of hard-working families and seeks to reduce the take-
home pay of a family of four earning $50,000 by as much as 6 percent.
Additionally, this budget ignores the concerns of future generations.
Proposed tax hikes would slow the economy, and stifle investment and
job creation. Since 2003, over 7 million new jobs have been created.
The U.S. economy is experiencing 5 uninterrupted years of growth, and
since the tax cuts of 2003, the rate of economic growth has more than
doubled. Tax increases move us in the wrong direction and that is why I
am opposing this budget resolution--because it is wrong for the
economy, wrong for hard-working families, and wrong for America.
Despite the inclusion of funding for several essential programs in
this budget resolution, it is imperative that we realize the effect of
this proposal as a whole. When we examine closely the entire package,
it is clear that the tax increases on Americans included in this budget
will serve to stunt our continued economic growth. Therefore, I opposed
this budget resolution. We simply cannot afford to appease short-term
priorities at the expense of long-term stability and prosperity. The
success of our economy depends on and demands from us fair tax policies
which enable hard-working Americans to prosper, leading us as a country
to fiscal stability.

____________________

HONORING OUR ARMED FORCES

SERGEANT WAYNE R. CORNELL

Mr. NELSON of Nebraska. Mr. President, I rise today to honor Army SGT
Wayne R. Cornell of Holstein, NE.
Sergeant Cornell will be remembered as a dedicated husband and
father. Having been deployed to Iraq earlier this year, Sergeant
Cornell made certain he would be allowed to take his 2 weeks' leave in
July. He was determined to make it home to Holstein, NE, in time to see
his wife Patricia give birth to their third child.
With both his father and grandfather having served in the military,
enlisting had always been a top priority for Sergeant Cornell. While at
Silver Lake High School in Roseland, no matter what branch of service
was making a recruiting visit to his school, Sergeant Cornell was
always the first in line to meet with the military recruiter. In
addition to his desire to enlist, Sergeant Cornell was also a skilled
martial arts student and is remembered by his teachers as a kindhearted
and well-meaning individual.
Shortly after graduating from high school in 1999, Sergeant Cornell
chose to enlist in the Nebraska Army National Guard. During 4 years
with the Guard, he served twice in Bosnia and once in Afghanistan. In
addition to his service to his country, Sergeant Cornell also served
his community as a volunteer firefighter. Last year he enlisted in the
Army; he was deployed to Iraq when called up in February. On March 20,
2007, while serving with the Army's 1st Battalion, 28th Infantry, 4th
Brigade, 1st Infantry Division, based out of Fort Riley, KS, Sergeant
Cornell passed away when the vehicle he was traveling in was struck by
a roadside bomb in Baghdad.
``He did it all for his family,'' said his wife Patricia. ``He was an
awesome father, and he just made every sacrifice for us.'' In addition
to his wife Patricia, Sergeant Cornell is survived by his two children,
Dameion, 5, and Zoie, 3, of Holstein; mother Patricia Perrie of
Holstein; father Larry Cornell of Fairmont, NE; and sisters Jadeen
Cornell of Blue Hill, NE, and Janalle Gowlovech, of Sioux Falls, SD.
I offer my sincere condolences to Sergeant Cornell's family. Not only
did he sacrifice for his family, he made the ultimate and most
courageous sacrifice for his Nation. Every American and all Nebraskans
are proud of the service of brave military personnel such as SGT Wayne
Cornell.
Mr. HAGEL. Mr. President, I rise to express my sympathy over the loss
of U.S. Army SGT Wayne Cornell of Nebraska. Sergeant Cornell was killed
in Baghdad when an improvised explosive device detonated near his
vehicle. He was 26 years old.
Sergeant Cornell grew up in the small town of Holstein, NE. A 1999
graduate of Silver Lake High School, his teachers had little doubt that
he would serve his country after graduation. He enlisted with the Army
National Guard soon after graduation and was deployed to Bosnia and
Afghanistan.
In 2006, Sergeant Cornell decided to continue his career in the Armed
Forces and enlisted with the Regular Army. He was deployed to Iraq in
February 2007 with the 1st Battalion, 28th Infantry Regiment, 4th
Brigade Combat Team, 1st Infantry Division based at Fort Riley, KS.
Sergeant Cornell was a deeply committed father and husband. He always
put his family first in the decisions he made. The Army was his means
to provide for his family, as well as serve his country. He and his
wife Patricia had two children, Dameion and Zoie, and the family is
expecting a third child in July.
In addition to his wife and children, Sergeant Cornell is survived by
his father Larry Cornell, his mother Patricia

[[Page 7757]]

Perrie, and sisters Jadeen Cornell and Janalle Gowlovech.
I ask my colleagues to join me and all Americans in honoring SGT
Wayne Cornell.

____________________

MARCH MADNESS

Mr. COLEMAN. Mr. President, I rise today to spend a few minutes
talking about March Madness. Millions of Americans are glued to their
televisions to watch basketball this time of year, and I want to talk
about a No. 1 seed that wasn't closely followed nationwide.
Everyone knows how Florida, Georgetown, UCLA, and Ohio State are
faring in their tournament games, but the Winona State Warriors may not
be on everyone's radar. Well, they should be. The Warriors set a
Division II record by winning 57 straight games over the last two
seasons. This breaks the previous record of 52 games which has been
intact since 1946. Over this stretch, the Warriors have dominated most
teams that they met with the average margin of victory being almost 20
points--including one victory by 81 points. Unfortunately, this streak
ended on Saturday as they came just a few points short of winning back-
to-back Division II championships when their opponents made a buzzer-
beating shot.
I commend Coach Mike Leaf for his accomplishments. In the 9 years he
has coached at Winona State, he has lead the Warriors to five regular-
season Northern Sun Intercollegiate Conference titles, four tournament
conference titles, four Division II tournament appearances, and the
2006 national title. He was also named national coach of the year after
leading his team to the national championship last year.
It takes a great deal to bring together a championship basketball
team. Coach Leaf has done this while serving as an inspiration to his
players and the entire Winona community. He has taught his players to
work hard and enjoy themselves while winning with class.
I ask my colleagues to join me in congratulating Coach Leaf, his
staff, his players, the students of Winona State, and all the Warrior
fans. I look forward to the continued successes of Coach Leaf and his
team next year. Go Warriors!

____________________

S. CON. RES. 21

Mr. OBAMA. Mr. President, I rise today to speak about the budget
resolution that the U.S. Senate adopted last Friday.
Every year, Congress considers a budget resolution, setting the
Government's priorities for the coming year. For the past 2 years since
my election to the Senate, I have been compelled to vote against budget
resolutions that I believed were out of touch with our fiscal realities
and national priorities. This year, I was proud to support the
resolution.
I commend the outstanding leadership of Chairman Conrad, who helped
to produce a resolution that makes great progress getting our Nation's
priorities back on track. Instead of deepening our fiscal hole with
irresponsible tax giveaways to the wealthy, this budget makes an
important departure from the Republican budgets of the recent past and
brings our budget back into balance. Instead of gutting programs that
help our most vulnerable citizens and communities, this budget allows
these programs--like the State Children's Health Insurance Program, the
Low-Income Home Energy Assistance Program, Medicare, COPS, and others--
to keep serving those who rely on the important moral commitments our
Nation has made. Instead of budget gimmicks and deferred
responsibility, this budget brings greater transparency and
responsibility back to Washington.
It does so first by reinstating pay-go. In a Democratic Senate, new
mandatory spending, just like new tax cuts, must be paid for by
offsetting spending reductions or revenue increases. Pay-go will
require tough choices and difficult tradeoffs. We will not be able
simply to pass along the debt to future generations for the choices we
make today. We will have to be accountable for paying our own bills and
collecting our own revenue. Pay-go by itself will not bring our budget
back to balance, but it will prevent deficits from getting worse. Pay-
go by itself cannot resolve our Nation's long-term liabilities, but it
will restore the budget discipline that has been lacking in Washington
for too long.
When I travel around the country or talk to families in Illinois, I
hear about the same priorities again and again. People from all walks
of life--farmers and small businesspeople, teachers and veterans,
salespeople and service workers, doctors and senior citizens, people
prospering and those struggling at the margins--all share a common set
of concerns and aspirations. They want affordable health care for
themselves and their children. They want a quality education for their
children. They want to retire with dignity. They are concerned about
our national security and our domestic security.
Unfortunately, many Americans are not convinced that their voices are
heard here in Washington. They are not convinced because the President
proposed a budget that ignores their priorities. They are not convinced
because they don't see enough serious efforts to reduce their health
care costs or to improve educational opportunities. They are not
convinced because it appears that for too long no one in Government has
been held accountable for incompetent leadership and neglect of the
public interest.
Fortunately, the budget resolution we adopted last week responds to
their voices. It demonstrates to families across the Nation that we are
once again paying attention to their concerns. They have a reason to
start once again to have confidence in their Government.
Let me give a few reasons, why I supported this resolution.
The failure of our Nation to guarantee access to affordable health
care for children is shameful, and the President's budget threatened to
worsen the situation for children in working families. This budget
rejects the President's proposed cuts to the State Children's Health
Insurance Program, extends care to 6 million additional eligible
children, and makes children's healthcare a priority for Congress.
This budget also makes progress to ensure that preschool children
from disadvantaged backgrounds will receive quality care and education;
that children, no matter where they go to school, will have an equal
opportunity for quality education; and will make college more
affordable so that our children can compete in a global marketplace. By
rejecting the President's proposed cuts in education and training, this
budget shores up the Federal end of the bargain to support No Child
Left Behind and support programs that educate individuals with
disabilities.
This budget also includes $100 million for grants to establish summer
learning programs in local school districts through the Summer Term
Education Program. I thank Chairman Conrad for his assistance in
getting my amendment to fund these programs included in the final
resolution. These grants will help students in early elementary grades
by supporting their participation in 6 weeks of summer school. Teachers
tell us that students return to school each September at levels below
their successes of the previous spring. Educators know this as ``summer
learning loss,'' and research has shown that students, on average, lose
more than 1 month of reading skills and 2 months of math skills during
the summer. The impact of summer learning loss is greatest for children
living in poverty, children with learning disabilities, and children
who do not speak English at home. The achievement gap in education
begins early in life and remains a burden for too many throughout their
time in school. The Summer Term Education Program funded by this
resolution will help to bridge this gap through structured summer
learning opportunities.
The security of our Nation at home and abroad is also a critical
priority, and honoring our veterans should be considered a sacred
obligation. This budget fully funds our defense and

[[Page 7758]]

homeland security funding needs and respects our duty to support our
veterans. These brave men and women have sacrificed so much for us and
for our Nation. Sadly, as uncovered by the Walter Reed scandal, our
Government is failing them. This budget makes it possible to provide
the quality health care and services that our veterans deserve. We
cannot ignore the reality that there are financial and human costs to
war. This budget recognizes that reality.
I am also pleased that the budget resolution includes an important
bipartisan amendment that I offered with my colleagues, Senators
Bunning, Bingaman, Lugar, and Boxer, to triple the administration's
recommendation for carbon sequestration. This amendment provides an
additional $200 million for Department of Energy efforts on carbon
sequestration, for a total of $279 million in that account. Both
environmental groups and the coal industry acknowledge the importance
of better technology for carbon sequestration and control. The
International Panel on Climate Change, environmental groups like NRDC,
and the mining industry all are on record that the long-term deep
geological storage of carbon is possible and is happening now on a
small scale. But for it to occur on a far larger scale, we must
redouble Federal efforts to make technologies widespread and economical
in the next 15 years. A recent report by the Massachusetts Institute of
Technology recommended a $5 billion program over the next 10 years to
achieve that goal. My amendment today provides a significant increase
down that path.
Too many Americans say they lack confidence in our tax system because
they hear about well-connected individuals and corporations getting
away without paying their fair share. I believe this budget will begin
to restore the confidence necessary for a fair and effective tax
system. Instead of reaching deeper into the pockets of hard-working
Americans, this budget will collect taxes where taxes are due. This
budget calls for strong new measures to close the tax gap, shut down
tax scams, and address offshore tax havens. I am proud of my efforts
with Senator Levin and the Permanent Subcommittee on Investigations to
stop tax haven abuses, and I look forward to working with my colleagues
in the 110th Congress to improve the fairness of our Tax Code.
The budget resolution we passed last week demonstrates that we can
rise above ideology and gimmicks and begin tackling the serious
challenges we face as a nation. It demonstrates that vision matters and
leadership matters. I am grateful for Chairman Conrad's extraordinary
leadership and the terrific work of his talented, dedicated, and hard-
working staff. They worked well in committee and on the floor to help
assemble a budget resolution that a majority of us in the Senate could
vote for in good conscience and with confidence that America's fiscal
policies have a chance, at long last, to get back on track.

____________________

COMMENDING MAJOR GENERAL GALE S. POLLOCK

Mr. INOUYE. Mr. President, I would like to commend the Army
leadership for selecting the first woman and nurse to serve as the
Acting Army Surgeon General. Today, MG Gale S. Pollock, a nurse, is in
charge of the Army Medical Department and leading the way in improving
organizational efficiencies and streamlining the care of our wounded
warriors.
Major General Pollock was born in Kearny, NJ, and entered the Army
Nurse Corps in 1976 after earning her BSN from the Walter Reed
Institute of Nursing through the University of Maryland. She also
completed a master of business administration from Boston University, a
master in health care administration from Baylor University, and a
master in national security and strategy from the National Defense
University. Major General Pollock also attended the U.S. Army Nurse
Anesthesia Program and is a certified registered nurse anesthetist,
CRNA, and a fellow in the American College of Healthcare Executives.
Major General Pollock's military education includes Senior Service
College at the Industrial College of the Armed Forces, the U.S. Air
Force War College, the Interagency Institute for Federal Health Care
Executives, the Military Health System CAPSTONE program, the Principles
of Advanced Nurse Administrators, and the NATO staff officer course.
On March 20, 2007, Major General Pollock, Chief of the Army Nurse
Corps, was officially named Commander of the U.S. Army Medical Command
and the Acting Army Surgeon General. Her previous military assignments
include, Commander, Pacific Regional Medical Command and Tripler Army
Medical Center, Honolulu, HI; Special Assistant to the Surgeon General
for Information Management and Health Policy; Commander, Martin Army
Community Hospital, Fort Benning, GA; Commander, U.S. Army Medical
Department Activity, Fort Drum, NY; Staff Officer, Strategic
Initiatives Command Group for the Army Surgeon General; Department of
Defense, DoD, Healthcare Advisor to the Congressional Commission on
Servicemembers and Veterans Transition Assistance; Health Fitness
Advisor at the National Defense University; Senior Policy Analyst in
Health Affairs, DoD; and Chief, Anesthesia Nursing Service at Walter
Reed Army Medical Center, Washington, DC.
Major General Pollock brings extensive leadership, education, and
experience to her new position as the Acting Army Surgeon General. As
an Army nurse and woman, I applaud her many accomplishments which have
brought her to the highest level of rank and responsibility in military
medicine.

____________________

HONORING JASON RAY

Mr. BURR. Mr. President, I rise today to honor the life of Jason Ray,
a young man whose life was tragically cut short this past weekend while
with the University of North Carolina basketball team during their trip
to the NCAA Tournament games in New Jersey.
Jason, a 21-year-old native of Concord, NC, was set to graduate from
UNC-Chapel Hill this May majoring in business administration with a
minor in religion.
Jason was best known for regularly performing at sporting events as
the university's mascot, ``Rameses.'' He was a member of UNC's
cheerleading squad.
I have seen Jason perform at the school's sporting events. I admired
his unmatched school spirit and his animated, energetic interaction
with the Tar Heel fans.
The University of North Carolina community lost a dear friend in
Jason on Monday. However, he left a legacy that will certainly last for
the many generations of fans that watched him perform. College
basketball holds a special place in North Carolinians' hearts. Jason's
team spirit and dedication helped make rooting for UNC basketball a
community tradition.
I send my thoughts and prayers to his family, teammates, classmates,
fans, and friends.

____________________

COLLEGE NATIONAL CHAMPIONS

Mr. BURR. Mr. President, I rise today to congratulate a college
basketball team that this past weekend won a national title.
I am speaking of Barton College in Wilson, NC, which beat the
defending champion Winona State to win the Division II Basketball
Championship.
Through their win, Barton College also ended Winona State's Division
II record 57-game winning streak.
Now I have seen a lot of college basketball games over the course of
my life, especially representing the State of North Carolina, where
basketball is not just a game but a way of life, but this one ranks
close to the top when it comes to exciting endings.
With only 45 seconds left to play in the game, Barton down by 7
points--a deficit that would be extremely difficult to overcome by any
team--and assisted by the stellar performance of his teammates,
Barton's Anthony Atkinson scored an unbelievable 10 points in the
remaining 39 seconds, included a buzzer-beating lay-up, to win the
Division II national title by a score of 77 to 75.

[[Page 7759]]

If you didn't see the game live, I would suggest you go on the
Internet and watch the ending to this fantastic game.
It is simply unbelievable and is reminiscent of Christian Laettner's
game-winning last-second jump shot in Duke's dramatic 104 to 103
victory over Kentucky in the East regional final of the 1992 NCAA
Tournament.
For Barton College, a small private school with a student body of
only 960 students, this win over Winona State, a relatively large
school with an enrollment of over 8,000 students, represents a ``David
and Goliath'' story for a smalltown North Carolina basketball team.
Again, I congratulate the NCAA Division II National Champion Barton
Bulldogs and head coach Ron Lievense on an extremely exciting end to an
extraordinary season.

____________________

BIOFUELS FOR ENERGY SECURITY AND TRANSPORTATION ACT

Mr. DOMENICI. Mr. President, over 18 months ago, the President signed
into law the Energy Policy Act of 2005. The enactment of that
legislation was a watershed event in structuring sound energy policy
for this Nation's future. One of the linchpins of that act is its
commitment to the development of ethanol and other alternative fuels
that will move us toward greater energy security by displacing foreign
sources of energy for our transportation fuels.
Since EPACT was enacted, we have seen a surge of interest in the
development of infrastructure for production and distribution of
ethanol and other biofuels. I am proud that the Energy Policy Act of
2005 is greatly responsible for that. EPACT is creating American energy
and American jobs in America's heartland.
Just as I am proud of the new world of alternative fuels created in
EPACT, I am also very proud of the bill Senator Bingaman and I have
introduced to build on the renewable fuels provisions of that Act--the
Biofuels for Energy Security and Transportation Act, the BEST Act--of
2007.
The Energy Policy Act established the first renewable fuels standard,
which required the production of 7.5 billion gallons of ethanol
annually by the year 2012. Private industry responded, and today we are
on course to exceeding significantly the levels set in the Energy.
Since August 2005, construction has begun on more than 70 new ethanol
biorefineries, creating more than 160,000 new jobs, and last year, this
country produced nearly 5 billion gallons of ethanol.
Building on that success, the BEST Act that Senator Bingaman and I
have introduced increases the renewable fuels standard, RFS--beginning
at a level of 8.5 billion gallons next year and increasing to 36
billion gallons in 2022. We get this ambitious RFS with the
understanding that promotion and enhancement of advanced biofuels, such
as cellulosic ethanol, will be essential to making this new goal a
reality.
In his recent State of the Union speech, the President laid out an
ambitious but worthy goal to reduce our consumption of gasoline by 20
percent in 10 years. The President envisioned biofuels as a key
component to meeting this goal. In addition to implementing the 2005
Energy Bill, the BEST Act is another step, and a very significant one,
in achieving that mark. By increasing our production and consumption of
biofuels in the United States, we can decrease our reliance on foreign
oil, while at the same time creating American jobs in a growing
biofuels industry.
To complement the increase in the renewable fuels standard, our bill
includes several measures to help promote the establishment of a
biofuels infrastructure, including grants to States and localities to
build biofuels corridors.
Another enhancement to speed production and distribution of these
fuels is Federal loan guarantees specifically for these projects. I am
pleased that we appear to be getting on the right path to implementing
a significant loan guarantee program as envisioned in the title 17 of
EPACT. This provision is absolutely essential to starting up some of
the domestic clean energy investments we so urgently need to ensure our
energy security. The BEST Act further refines those provisions to
reflect the realities of commercial project finance.
Finally, the bill increases our investment in bioenergy research and
development by 50 percent. This research is essential to developing
methods to produce advanced biofuels, such as cellulosic ethanol, that
we will need to meet our long-term goals.
Several weeks ago, Senator Bingaman and I sponsored a biofuels
conference in the Energy and Natural Resources Committee to explore all
of the issues related to this important piece of our energy policy. We
heard from numerous government and private sector scientists, industry
project developers, and the financial community. We explored every
facet of the issues related to increased biofuels production and
development. The BEST Act we have introduced is the culmination of our
deliberations. I am very pleased with this effort and hopeful that it
will be every bit as successful as the effort we spawned in the 2005
Energy bill.

____________________

ADDITIONAL STATEMENTS

______

RETIREMENT OF JOE DART

Mr. KERRY. Mr. President. I honor a great and dedicated
American, Joseph A. Dart, who for almost 30 years has championed the
rights of workers across Massachusetts. As he prepares for a well-
deserved retirement, I am grateful to be able to pay tribute to this
wonderful man and give him the recognition he deserves for touching the
lives of so many.
Joe has spent his career bringing real meaning to the American dream.
As president of the Massachusetts Building Trades Council, AFL-CIO, and
executive vice president of the Massachusetts AFL-CIO, Joe advocates
for the rights of more than 75,000 construction trades men and women
throughout the Commonwealth.
Joe has fought for, and defended, the right to collective bargaining
and the empowerment that it has brought to working families throughout
our history.
Joe helped write competitive bid laws for public construction
projects, helped to pass the OSHA 10-hour law which requires all
construction workers on public projects to undergo safety training, and
helped to pass a law strengthening wage enforcement.
Throughout his years in public service, Joe has negotiated dozens of
agreements to guarantee fair, competitive wages, a reasonable work
week, and safe working conditions on billions of dollars of
construction projects throughout the Commonwealth.
I am most fortunate to have had his support, friendship, and counsel
throughout many campaigns and many years in office here in
Massachusetts.
An exemplary community leader, Joe has worked tirelessly to uphold
the rights of thousands of Massachusetts workers who entrusted him with
this office. Massachusetts is grateful for the service he has provided.
Countless families in Massachusetts are living better, safer lives
because of Joe Dart and his commitment to organized labor.
On behalf of workers throughout our State, I am proud to honor him
for his selfless dedication to countless works across the
Commonwealth.

____________________

RECOGNIZING DR. LEN PETERS

Mrs. MURRAY. Mr. President, I would like to take this
opportunity to recognize a great contributor to the State of Washington
and to the national science and education communities. Dr. Len Peters
recently stepped down as the Director of the Pacific Northwest National
Laboratory in Richland, WA. Fortunately, Dr. Peters has agreed to
remain in Richland, working for Battelle Memorial Institute to help
promote and build education and community projects.
PNNL, a DOE national laboratory, experienced tremendous growth during
Dr. Peters' tenure. The lab added 330 new members to its world-class
staff, enabling the facility to better serve the Nation in the areas of
renewable energy, national security, and environmental research. Dr.
Peters led the

[[Page 7760]]

staff in enhancing relationships with a number of research universities
in the region, continuing his commitment to quality public-private
relationships in the interest of furthering math and science education.
Dr. Peters came to PNNL in 2003, after serving as the vice provost
for research at Virginia Polytechnic Institute and State University.
Prior to guiding Virginia Tech's ambitious research portfolio, he
served as acting vice president for research and graduate studies at
the University of Kentucky. Dr. Peters spent nearly 20 years in the
classroom, educating our next generation of scientists. He is a
distinguished scholar and a leader in the field of atmospheric
chemistry.
In his new role at Battelle, Dr. Peters will continue to serve
Washington State through community outreach programs. His work to
expand higher education opportunities in the Tri-Cities, as well as his
leadership on the Hanford Reach Interpretive Center Board are examples
of his strong commitment to building a better community, region and
State.
I thank Dr. Len Peters for his guidance and commitment to PNNL over
the past 3\1/2\ years. For the people of Washington State and the
entire Pacific Northwest region, I thank Dr. Peters for his continued
service to our community and wish him all the best in his future
endeavors.

____________________

MESSAGE FROM THE HOUSE

At 12:01 p.m., a message from the House of Representatives, delivered
by Ms. Niland, one of its reading clerks, announced that the House has
passed the following bills, in which it requests the concurrence of the
Senate:

H.R. 137. An act to amend title 18, United States Code, to
strengthen prohibitions against animal fighting, and for
other purposes.
H.R. 580. An act to amend chapter 35 of title 28, United
States Code, to provide for a 120-day limit to the term of a
United States attorney appointed on an interim basis by the
Attorney General, and for other purposes.
H.R. 753. An act to redesignate the Federal building
located at 167 North Main Street in Memphis, Tennessee, as
the ``Clifford Davis and Odell Horton Federal Building''.
H.R. 802. An act to amend the Act to Prevent Pollution from
Ships to implement MARPOL Annex VI.
H.R. 1019. An act to designate the United States
customhouse building located at 31 Gonzalez Clemente Avenue
in Mayaguez, Puerto Rico, as the ``Rafael Martinez Nadal
United States Customhouse Building''.
H.R. 1138. An act to designate the Federal building and
United States courthouse located at 306 East Main Street in
Elizabeth City, North Carolina, as the ``J. Herbert W. Small
Federal Building and United States Courthouse''.
H.R. 1195. An act to amend the Safe, Accountable, Flexible,
Efficient Transportation Equity Act: A Legacy for Users to
make technical corrections, and for other purposes.
H.R. 1468. An act to ensure that, for each small business
participating in the 8(a) business development program that
was affected by Hurricane Katrina of 2005, the period in
which it can participate is extended by 18 months.

The message further announced that the House has passed the following
bill, without amendment:

S.494. An act to endorse further enlargement of the North
Atlantic Treaty Organization (NATO) and to facilitate the
timely admission of new members to NATO, and for other
purposes.

____________________

MEASURES REFERRED

The following bills were read the first and the second times by
unanimous consent, and referred as indicated:

H.R. 238. An act to repeal a prohibition on the use of
certain funds for tunneling in certain areas with respect to
the Los Angeles to San FernandoValley Metro Rail project,
California; to the Committee on Banking, Housing, and Urban
Affairs.
H.R. 1019. An act to designate the United States
customhouse building located at 31 Gonzalez Clemente Avenue
in Mayaguez, Puerto Rico , as the ``Rafael Martinez Nadal
United States Customhouse Building''; to the Committee on
Environment and Public Works.
H.R. 1138. An act to designate the Federal building and
United States courthouse located at 306 East Main Street in
Elizabeth City, North Carolina, as the ``J. Herbert W. Small
Federal Building and United States Courthouse''; to the
Committee on Environment and Public Works.
H.R. 1195. An act to amend the Safe, Accountable, Flexible,
Efficient Transportation Equity Act: A Legacy for Users to
make technical corrections, and for other purposes; to the
Committee on Environment and Public Works.
H.R. 1468. An act to ensure that, for each small business
participating in the 8(a) business development program that
was affected by Hurricane Katrina of 2005, the period in
which it can participate is extended by 18 months; to the
Committee on Small Business and Entrepreneurship.

____________________

MEASURES PLACED ON THE CALENDAR

The following bills were read the first and second times by unanimous
consent, and placed on the calendar:

____________________

MEASURES READ THE FIRST TIME

The following bills were read the first time:

S. 997. A bill to amend the Public Health Service Act to
provide for human embryonic stem cell research.
S. 1001. A bill to restore Second Amendment rights in the
District of Columbia.

____________________

PETITIONS AND MEMORIALS

The following petitions and memorials were laid before the Senate and
were referred or ordered to lie on the table as indicated:

POM-49. A resolution adopted by the California State Lands
Commission urging the Senate to pass Senate Resolution 151;
to the Committee on Energy and Natural Resources.
Whereas, U.S. Senators Boxer and Feinstein have introduced
S. 151 to prohibit new oil and gas leasing in federal waters
off California; and
Whereas, California's 1,100 mile coastline, with its
beautiful beaches, wild cliffs, abundant fish stocks and
fragile environment is a national treasure and a valuable
state resource, which is at the heart of a tourist industry
that generates nearly five billion dollars in state and local
taxes each year; and is the heart of the state's $43 billion
ocean economy; and
Whereas, the citizens of California have long opposed new
oil and gas drilling off their coastline and support
protecting the fragile and valuable coastal environment over
development of the relatively small amounts of oil and gas
offshore California; and
Whereas, California initiated protection of its coast from
oil and gas development when the California Legislature in
1955 and 1963, prohibited oil and gas leasing in the State
waters off Monterey and Santa Cruz counties and portions of
Los Angeles, Santa Barbara, San Luis Obispo, Humboldt, and
Mendocino Counties; and
Whereas, the California State Lands Commission has not
issued any offshore oil and gas lease for new areas since the
1969 spill from a well in Federal waters off Santa Barbara
that released over three million gallons of crude oil,
coating Santa Barbara County's ocean beaches; and
Whereas, the California Legislature continued the State's
efforts to restrict oil and development in its own waters by
enacting the California Coastal Sanctuary Act in 1994, which
codified the Commission's earlier administrative prohibition
of new offshore leases and created a statutory statewide
coastal sanctuary that prohibits future oil and gas leasing
in all State coastal waters, from Mexico to the Oregon
border, in perpetuity; and
Whereas, the U.S. Congress has protected California
coastline from expanded offshore drilling for more than
twenty years, renewing this protection in the form of a
legislative moratorium contained in the annual appropriations
bill for the Department of the Interior; and
Whereas, the need for new oil development can be reduced by
improving automobile fuel efficiency and energy efficiency,
utilizing and further researching renewable energy and
alternative fuels, and fully funding energy conservation and
efficiency programs, including solar and renewables,
weatherization, and other initiatives; thus increasing energy
independence and reducing the reliance on foreign oil; and
Whereas, in spite of the steady opposition to new oil and
gas leasing off California, various proposals have been made
in the last five years to end the federal moratorium or to
take steps, such as oil and gas inventories, that are
intended to lead to new leasing; and
Whereas, the Commission has adopted six resolutions since
2001 supporting the existing moratorium on new federal leases
and opposing the new initiatives to open the California

[[Page 7761]]

coast to new oil and gas development and leases; and
Whereas, S. 151, recently introduced by Senator's Boxer and
Feinstein would permanently ban new oil and gas leasing in
federal waters, consistent with the state's own prohibition
of new leasing in state waters; now, therefore, be it
Resolved by the California State Lands Commission, That it
supports S. 151 and the prohibition it proposes for new oil
and gas leases in federal waters off California and urges
Congress to adopt this measure; and be it further
Resolved, That the Congress of the United States and the
Federal government be encouraged to explore options to
increase energy independence and reduce reliance on foreign
oil, such as incentives to improve energy efficiency,
requirements to improve automobile fuel efficiency, provide
funding for research into renewable energy and alternative
fuels, and fully funding energy conservation and efficiency;
and be it further
Resolved, That the Commission's Executive Officer transmit
copies of this resolution to the President and Vice President
of the United States, to the Governor of California, to the
Majority and Minority Leaders of the United States Senate, to
the Speaker and Minority Leader of the United States House of
Representatives, to the Chairs and Ranking Minority Members
of the House Committee on Natural Resources, the House
Committee on Energy and Commerce, the Senate Committee on
Energy and Natural Resources, and the Senate Committee on
Environment and Public Works and to each Senator and
Representative from California in the Congress of the United
States.
____

POM-50. A resolution adopted by the House of
Representatives of the Legislature of the State of Michigan
urging Congress to enact the Great Lakes Asian Carp Barrier
Act; to the Committee on Environment and Public Works.

House Resolution No. 17

Whereas, two species of Asian carp are on the verge of
invading the Great Lakes. Silver carp and bighead carp have
advanced up the Mississippi River since their escape from
southern fish farms in the early 1980s, and now have been
identified within miles of Lake Michigan in the Illinois
River near Chicago; and
Whereas, Asian carp pose a significant risk to the ecology
and economy of the Great Lakes region. Asian carp can grow as
large as 100 pounds and are voracious feeders. They compete
with native fish for food and degrade water quality by
disturbing sediments. They could become a dominant species in
the Great Lakes, threatening a $4.5 billion commercial and
recreational fishery. Silver carp can also jump up to 10 feet
out of the water when disturbed, posing a risk to
recreational boaters; and
Whereas, Asian carp are the latest in a long line of exotic
species to threaten the Great Lakes. Over 180 exotic species
have invaded the Great Lakes since European settlement. The
most harmful exotic species, zebra mussels and sea lampreys,
have cost an estimated $100 million per year to control
during the 1990s. Scientists project that Asian carp could
have a similar impact on the Great Lakes; and
Whereas, the only thing preventing the movement of Asian
carp into the Great Lakes is a temporary electrical barrier
in the Chicago Sanitary and Ship Canal operated by the United
States Army Corps of Engineers. In addition, the Army Corps
and the state of Illinois are constructing a permanent
electrical barrier to replace the temporary barrier; and
Whereas, to date, over $12 million has been spent on
construction and operation of the electrical barriers. To
help match federal funding, the state of Michigan has
contributed nearly $70,000 toward the completion of the
permanent electrical barrier; and
Whereas, current funding is insufficient to complete
construction of the permanent barrier and only finances
operation of the temporary barrier through the first half of
fiscal year 2007. In addition, there is no funding to
renovate the temporary barrier as a permanent backup to the
new barrier; and
Whereas, The Great Lakes Asian Carp Barrier Act (H.R. 553
and S. 336) would provide funds to upgrade the current
barrier and complete construction of the permanent barrier;
now, therefore, be it
Resolved by the House of Representatives, That we
memorialize the United States Congress to enact the Great
Lakes Asian Carp Barrier Act (H.R. 553 and S. 336) to protect
the Great Lakes from Asian carp; and be it further
Resolved, That copies of this resolution be transmitted to
the President of the United States Senate, the Speaker of the
United States House of Representatives, and the members of
the Michigan congressional delegation.
____

POM-51. A resolution adopted by the House of
Representatives of the General Assembly of the State of
Kentucky urging Congress to repeal the Government Pension
Offset and the Windfall Elimination Provision; to the
Committee on Finance.

House Resolution No. 45

Whereas, the intent of Congress in the enactment of the
Government Pension Offset (GPO) and the Windfall Elimination
Provision (WEP) was to protect the Social Security program
and eliminate perceived abuses in the payment of dual
benefits to certain beneficiaries; and
Whereas, the GPO and WEP, have resulted in devastating,
unintended consequences for hundreds of thousands of teachers
and other public employees nationwide; and
Whereas, the GPO affects teachers and other public
employees in Kentucky and other states who are participants
in public retirement systems but who do not participate in
the Social Security retirement program; and
Whereas, under the GPO, a teacher who receives benefits
under the Kentucky Teachers' Retirement System will suffer at
least a two-thirds reductions in the Social Security survivor
benefits the teacher would otherwise receive from a spouse's
private-sector earnings; and
Whereas, teachers in fifteen states, including Kentucky, do
not participate in the Social Security program; and
Whereas, the WEP reduces the Social Security benefits of a
teacher or other public employee who has participated and
received earnings sufficient to qualify for Social Security
retirement benefits as well as the benefits procured under
the Kentucky Teachers' Retirement System or other public
retirement system; and
Whereas, the GPO and WEP unfairly target public employees,
especially our highly valued teachers who sacrifice lucrative
earnings in the private sector to educate our children; and
Whereas, Kentucky has a significant teacher shortage and
loses more than 2000 teachers annually to retirement and must
actively recruit new teachers to meet growing enrollment
demands; and
Whereas, a federal proposal to repel both the GPO and WEP,
the Social Security Fairness Act of 2007, has been introduced
in the U.S. House of Representatives and the U.S. Senate and
clearly indicates an awareness and acknowledgment of the
devastating impact of these provisions on teachers and other
public employees; Now, therefore, be it
Resolved by the House of Representatives of the General
Assembly of the Commonwealth of Kentucky:
Section 1. The House of Representatives of the Commonwealth
of Kentucky urges the Congress of the United States to enact
the Social Security Fairness Act of 2007 or similar
legislation to repeal the GPO and WEP provisions of the
Social Security law.
Section 2. The Clerk of the House of Representatives shall
transmit copies of this Resolution to the President and Vice
President of the United States to the Speaker of the U.S.
House of Representatives, the Majority Floor Leader of the
U.S. Senate, and to each Senator and Representative from the
Commonwealth of Kentucky in the Congress of the United
States.
____

POM-52. A resolution adopted by the House of
Representatives of the Legislature of the State of Michigan
urging the President and Congress to appropriate additional
funding for the Low Income Home Energy Assistance Program; to
the Committee on Health, Education, Labor, and Pensions.

House Resolution No. 33

Whereas, Home heating is a fundamental necessity in
northern climate states during the months from October
through March, However, low-income households in Michigan and
across the nation struggle to pay for this basic necessity.
High energy bills in winter force many low-income households
into difficult situations, such as forgoing medicine or food
in order to pay energy bills or putting themselves in danger
by using stoves and portable heaters to provide warmth; and
Whereas, In the early 1980s, Congress recognized the need
for heating and other home energy assistance when it enacted
legislation to create the Low Income Home Energy Assistance
Program (LIHEAP). The LIHEAP program has become a crucial
safety net for low-income households and families across the
nation, especially in northern climate states. LIHEAP
assistance has helped millions of families keep their homes
at safe and healthy temperatures; and
Whereas, Last year Congress appropriated a record level
$3.2 billion in LIHEAP funding. In spite of this, only a
fraction of eligible low income households received
assistance. According to the United States Department of
Health and Human Services, last winter only 15 percent of 38
million eligible low-income households actually received
assistance from the LIHEAP program; and
Whereas, This year, with the adoption of a September 29th,
continuing resolution, Congress has appropriated only $1.98
billion for LIHEAP. The President's proposed FY 2008 budget
calls for funding to be reduced further to $1.78 billion.
Under these funding proposals, it is estimated that Michigan
will receive as much as $47 million dollars less than last
year. This will surely mean that state energy assistance
programs will be forced to shut down programs and turn needy
people away. Last year, even with the record level funding,
only 35 percent of eligible low-income households in Michigan
received LIHEAP assistance; and

[[Page 7762]]

Whereas, such inadequate LIHEAP funding could be disastrous
for Michigan. The state is struggling through one of the
nation's worst economic situations. Currently, nearly one
third of Michigan households are at or below 60 percent of
the state's median income, and the unemployment rate, which
is already much higher than the national average, keeps
growing. Clearly, such tough economic times coupled with a
cold, harsh winter, and high heating fuel prices, make LIHEAP
funding vital for the state of Michigan; now, therefore be it
Resolved by the House of Representatives. That we urge the
President and the Congress of the United States to
immediately increase funding for LIHEAP to at least last
year's level of $3.2 billion; and be it further
Resolved, That copies of this resolution be transmitted to
the Office of the President of the United States, the
President of the United States Senate, the Speaker of the
United States House of Representatives, and the members of
the Michigan congressional delegation.
____

POM-53. A resolution adopted by the House of
Representatives of the Legislature of the State of Michigan
urging Congress to enact the Employee Free Choice Act; to the
Committee on Health, Education, Labor, and Pensions.

House Resolution No. 21

Whereas, In 1935, the United States established, by law,
that workers must be free to form unions. The freedom to form
or join a union is internationally recognized as a
fundamental human right; and
Whereas, Union membership provides workers better wages and
benefits, and protection from discrimination and unsafe
workplaces. Unions benefit communities by strengthening tax
bases, promoting equal treatment, and enhancing civic
participation; and
Whereas, Even though on paper America's workers have the
freedom to choose for themselves whether to have a union, in
reality, workers across the nation are routinely denied that
right. More than 40 million United States workers say they
would join a union now if they had the opportunity; and
Whereas, When the right of workers to form a union is
violated, wages fall, race and gender pay gaps widen,
workplace discrimination increases, and job safety standards
disappear; and
Whereas, Many thousands of workers in our country are
routinely threatened, coerced, or fired each year because
they try to form a union. Most violations of workers' freedom
to choose a union occur behind closed doors, and each year
millions of dollars are spent to frustrate workers' efforts
to form unions; and
Whereas, A worker's fundamental right to choose a union is
a public issue that requires a public policy solution,
including legislative remedies; and
Whereas, The Employee Free Choice Act (H.R. 800) has been
introduced in the United States Congress in order to restore
workers' freedom to join a union; now, therefore, be it
Resolved by the House of Representatives, That we
memorialize the United States Congress to enact the Employee
Free Choice Act, which would authorize the National Labor
Relations Board to certify a union as the bargaining
representative when a majority of employees voluntarily sign
authorizations designating that union to represent them;
provide for first contract mediation and, arbitration; and
establish meaningful penalties for violations of a worker's
freedom to choose a union; and be it further
Resolved, That copies of this resolution be transmitted to
the President of the United States, the President of the
United States Senate, the Speaker of the United States House
of Representatives, and the members of the Michigan
congressional delegation.
____

POM-54. A resolution adopted by the Senate of the
Legislature of the State of Michigan urging the President and
Congress to increase funding for the Low Income Home Energy
Assistance Program and to facilitate the establishment of
programs that provide information about responsible energy
use; to the Committee on Health, Education, Labor, and
Pensions.

Senate Resolution No. 10

Whereas, Each winter, public and private programs offering
help to low-income families trying to heat their homes
usually find their budgets stretched thin; and
Whereas, Fortunately, there is a federally funded program
that provides energy assistance to low-income households. The
Low Income Home Energy Assistance Program (LIHEAP) is a
federal block grant program that provides billions of dollars
annually to help low-income households pay energy bills.
LIHEAP funds have averted numerous tragedies by enabling
needy families to keep their homes at healthy and safe
temperatures during the bitter cold months of winter; and
Whereas, Utility companies, government agencies, and
nonprofit organizations often make information available to
low-income families to help reduce their heating bills. Such
information often recognizes the need for reducing home
energy costs through the use of conservation technologies and
flexible bill payment practices designed to help empower low-
income consumers to pay their utility bills on a discounted
basis; and
Whereas, Coordinated and efficient consumer education
programs of federal, state, and local agencies could help
consumers take responsibility for their winter heating bills.
Educational programming on things such as how to set proper
temperatures in the home, the use of programmable
thermostats, tips on household budgeting, how to weatherize a
home, and energy efficiency training could better prepare
low-income households with the skills needed to control their
winter heating costs; and
Whereas, The President's proposed budget for next year
would reduce the percentage of eligible needy families that
receive LIHEAP assistance. The President is requesting only
$1.782 billion for LIHEAP in FY 2008. This is far less than
the $5.1 billion that is authorized for the program under the
U.S. Energy Policy Act of 2005 and a dramatic 44 percent
reduction from FY 2006 funding levels. According to the
National Energy Assistance Directors' Association (NEADA),
the President's proposed cut to LIHEAP would force states to
eliminate energy assistance to more than a million
households; and
Whereas, The President's proposal would hit Michigan
particularly hard. No other northern climate state is
suffering through such tough economic times. Michigan
finished last year with one of the nation's worst
unemployment rates, second only to Mississippi. Since 2003,
the unemployment rate in Michigan has exceeded the national
rate by an ever-widening margin. As the number of unemployed
persons in the state grows, so, too, does the number of
households seeking energy assistance. In spite of this, under
the President's proposal, it is estimated that the state
would receive nearly $50 million less than it did last year.
Clearly, we should educate customers on how to use energy
wisely and we should adequately fund the LIHEAP program to
ensure that low-income families in Michigan and across the
nation receive the help they need during the bitter cold
months of winter; now, therefore, be it
Resolved by the Senate, That we memorialize the President
and the Congress of the United States, particularly the
Michigan congressional delegation and the chairman of the
Committee on Energy and Commerce, to do all they can to
provide additional funding for the Low Income Home Energy
Assistance Program and facilitate the establishment of
programs that provide information on responsible energy use;
and be it further
Resolved, That copies of this resolution be transmitted to
the Office of the President of the United States, the
President of the United States Senate, the Speaker of the
United States House of Representatives, and the members of
the Michigan congressional delegation.

____________________

REPORTS OF COMMITTEES

The following reports of committees were submitted:

By Mr. INOUYE, from the Committee on Commerce, Science, and
Transportation, with an amendment in the nature of a
substitute:
S. 39. A bill to establish a coordinated national ocean
exploration program within the National Oceanic and
Atmospheric Administration, and for other purposes (Rept. No.
110-39).
By Mr. KENNEDY, from the Committee on Health, Education,
Labor, and Pensions, with an amendment in the nature of a
substitute:
S. 558. A bill to provide parity between health insurance
coverage of mental health benefits and benefits for medical
and surgical services.

____________________

INTRODUCTION OF BILLS AND JOINT RESOLUTIONS

The following bills and joint resolutions were introduced, read the
first and second times by unanimous consent, and referred as indicated:

[[Page 7763]]

S. 993. A bill to improve pediatric research; to the
Committee on Health, Education, Labor, and Pensions.
By Mr. TESTER (for himself and Mr. Salazar):
S. 994. A bill to amend title 38, United States Code, to
eliminate the deductible and change the method of determining
the mileage reimbursement rate under the beneficiary travel
program administered by the Secretary of Veteran Affairs, and
for other purposes; to the Committee on Veterans' Affairs.
By Mr. COLEMAN (for himself, Mr. Cochran, and Ms.
Klobuchar):
S. 995. A bill to provide for a hospital in Cass County,
Minnesota; to the Committee on Finance.
By Mrs. FEINSTEIN (for herself and Mrs. Boxer):
S. 996. A bill to amend title 49, United States Code, to
expand passenger facility fee eligibility for certain noise
compatibility projects; to the Committee on Commerce,
Science, and Transportation.
By Mr. HARKIN (for himself, Mr. Kennedy, Mr. Hatch,
Mrs. Feinstein, Mr. Smith, Mr. Reid, and Mr.
Specter):
S. 997. A bill to amend the Public Health Service Act to
provide for human embryonic stem cell research; read the
first time.
By Mr. BUNNING:
S. 998. A bill to exempt the natural aging process in the
determination of the production period for distilled spirits
under section 263A of the Internal Revenue Code of 1986; to
the Committee on Finance.
By Mr. COCHRAN (for himself, Mr. Kennedy, Mr. Warner,
Mr. Dorgan, Mrs. Murray, Ms. Collins, Mr. Reed, Ms.
Cantwell, and Mr. Coleman):
S. 999. A bill to amend the Public Health Service Act to
improve stroke prevention, diagnosis, treatment, and
rehabilitation; to the Committee on Health, Education, Labor,
and Pensions.
By Mr. STEVENS (for himself and Ms. Landrieu):
S. 1000. A bill to enhance the Federal Telework Program; to
the Committee on Homeland Security and Governmental Affairs.
By Mrs. HUTCHISON (for herself, Mr. Alexander, Mr.
Allard, Mr. Baucus, Mr. Bond, Mr. Brownback, Mr.
Burr, Mr. Bunning, Mr. Chambliss, Mr. Coburn, Mr.
Cochran, Mr. Corker, Mr. Cornyn, Mr. Craig, Mr.
Crapo, Mr. DeMint, Mrs. Dole, Mr. Domenici, Mr.
Ensign, Mr. Enzi, Mr. Graham, Mr. Grassley, Mr.
Hatch, Mr. Hagel, Mr. Inhofe, Mr. Isakson, Mr. Kyl,
Mr. Lott, Mr. Martinez, Mr. McCain, Ms. Murkowski,
Mr. Nelson of Nebraska, Mr. Roberts, Mr. Sessions,
Mr. Shelby, Mr. Smith, Mr. Stevens, Mr. Sununu, Mr.
Tester, Mr. Thomas, Mr. Thune, and Mr. Vitter):
S. 1001. A bill to restore Second Amendment rights in the
District of Columbia; read the first time.
By Mr. KENNEDY (for himself, Mr. Enzi, and Mr.
Roberts):
S. 1002. A bill to amend the Older Americans Act of 1965 to
reinstate certain provisions relating to the nutrition
services incentive program; considered and passed.
By Mr. KENNEDY (for himself, Mr. Kerry, Mrs. Boxer, Mr.
Harkin, Mr. Lautenberg, Mr. Dodd, Mr. Lieberman, Mrs.
Feinstein, Ms. Mikulski, Mr. Brown, Mr. Durbin, Mr.
Schumer, Ms. Cantwell, Mr. Biden, Mr. Levin, Mr.
Menendez, Mrs. Murray, Mrs. Clinton, Mr. Feingold,
Ms. Stabenow, and Mr. Whitehouse):
S.J. Res. 10. A joint resolution proposing an amendment to
the Constitution of the United States relative to equal
rights for men and women; to the Committee on the Judiciary.

____________________

SUBMISSION OF CONCURRENT AND SENATE RESOLUTIONS

The following concurrent resolutions and Senate resolutions were
read, and referred (or acted upon), as indicated:

By Mrs. FEINSTEIN (for herself, Ms. Collins, Mr.
Feingold, Mr. Levin, Ms. Snowe, Mr. Kerry, Mr. Biden,
Ms. Cantwell, Mr. Lieberman, Mr. Wyden, Mrs. Clinton,
Mr. Crapo, and Mr. Sanders):
S. Res. 125. A resolution designating May 18, 2007, as
``Endangered Species Day'', and encouraging the people of the
United States to become educated about, and aware of, threats
to species, success stories in species recovery, and the
opportunity to promote species conservation worldwide; to the
Committee on the Judiciary.
By Mr. AKAKA (for himself, Mr. Dodd, Mrs. Clinton, Mr.
Cochran, Mr. Durbin, Mr. Kohl, Mr. Kennedy, Mr.
Menendez, Mr. Schumer, Mr. Inouye, Ms. Stabenow, Mr.
Cardin, Mr. Levin, Mr. Crapo, Mr. DeMint, Mrs.
Feinstein, Mr. Baucus, Mr. Thomas, Mrs. Lincoln, Mr.
Allard, and Mr. Enzi):
S. Res. 126. A resolution designating April 2007 as
``Financial Literacy Month''; considered and agreed to.
By Mr. INHOFE (for himself and Mr. Dodd):
S. Res. 127. A resolution designating April 8, 2007 as
``National Cushing's Syndrome Awareness Day''; considered and
agreed to.
By Mr. REID (for himself and Mr. McConnell):
S. Res. 128. A resolution to authorize testimony, document
production, and legal representation in United States v.
Philip G. Balcombe, Sansi G. Coonan, John S. Dear, Jan
Lustig, Michella A. Marusa, Martin J. Ryan, Eleanore M.
Vouselas, and Bruno Keller; considered and agreed to.
By Mr. REID (for himself and Mr. McConnell):
S. Res. 129. A resolution to authorize testimony, document
production, and legal representation in State of Alaska v.
Robert S. Mulford and Don G. Muller; considered and agreed
to.

____________________

ADDITIONAL COSPONSORS

S. 223

At the request of Mr. Feingold, the name of the Senator from West
Virginia (Mr. Byrd) was added as a cosponsor of S. 223, a bill to
require Senate candidates to file designations, statements, and reports
in electronic form.

S. 288

At the request of Mr. Kerry, the name of the Senator from Vermont
(Mr. Sanders) was added as a cosponsor of S. 288, a bill to amend
titles 10 and 14, United States Code, to provide for the use of gold in
the metal content of the Medal of Honor.

S. 329

At the request of Mr. Crapo, the name of the Senator from Montana
(Mr. Tester) was added as a cosponsor of S. 329, a bill to amend title
XVIII of the Social Security Act to provide coverage for cardiac
rehabilitation and pulmonary rehabilitation services.

S. 350

At the request of Mr. Vitter, the names of the Senator from Nevada
(Mr. Ensign), the Senator from Arizona (Mr. Kyl) and the Senator from
Oklahoma (Mr. Inhofe) were added as cosponsors of S. 350, a bill to
prohibit certain abortion-related discrimination in government
activities.

S. 351

At the request of Mr. Vitter, the names of the Senator from Nevada
(Mr. Ensign) and the Senator from South Carolina (Mr. DeMint) were
added as cosponsors of S. 351, a bill to amend title X of the Public
Health Service Act to prohibit family planning grants from being
awarded to any entity that performs abortions.

S. 459

At the request of Ms. Snowe, the name of the Senator from Minnesota
(Ms. Klobuchar) was added as a cosponsor of S. 459, a bill to require
that health plans provide coverage for a minimum hospital stay for
mastectomies, lumpectomies, and lymph node dissection for the treatment
of breast cancer and coverage for secondary consultations.

S. 474

At the request of Mrs. Hutchison, the name of the Senator from
Oklahoma (Mr. Coburn) was added as a cosponsor of S. 474, a bill to
award a congressional gold medal to Michael Ellis DeBakey, M.D.

S. 502

At the request of Mr. Crapo, the name of the Senator from Alabama
(Mr. Shelby) was added as a cosponsor of S. 502, a bill to repeal the
sunset on the reduction of capital gains rates for individuals and on
the taxation of dividends of individuals at capital gains rates.

S. 506

At the request of Mr. Lautenberg, the names of the Senator from
Connecticut (Mr. Lieberman) and the Senator from Vermont (Mr. Sanders)
were added as cosponsors of S. 506, a bill to improve efficiency in the
Federal Government through the use of high-performance green buildings,
and for other purposes.

S. 548

At the request of Mr. Leahy, the name of the Senator from Virginia
(Mr. Warner) was added as a cosponsor of S. 548, a bill to amend the
Internal Revenue Code of 1986 to provide that a deduction equal to fair
market value shall be allowed for charitable contributions of literary,
musical, artistic, or scholarly compositions created by the donor.

[[Page 7764]]

S. 604

At the request of Mr. Lautenberg, the name of the Senator from New
Mexico (Mr. Bingaman) was added as a cosponsor of S. 604, a bill to
amend title 10, United States Code, to limit increases in the certain
costs of health care services under the health care programs of the
Department of Defense, and for other purposes.

S. 609

At the request of Mr. Rockefeller, the names of the Senator from New
York (Mrs. Clinton), the Senator from Rhode Island (Mr. Reed), the
Senator from Massachusetts (Mr. Kerry), the Senator from Idaho (Mr.
Craig), the Senator from Florida (Mr. Nelson), the Senator from
Mississippi (Mr. Cochran), the Senator from Louisiana (Ms. Landrieu),
the Senator from Hawaii (Mr. Akaka), the Senator from Washington (Ms.
Cantwell) and the Senator from Wyoming (Mr. Thomas) were added as
cosponsors of S. 609, a bill to amend section 254 of the Communications
Act of 1934 to provide that funds received as universal service
contributions and the universal service support programs established
pursuant to that section are not subject to certain provisions of title
31, United States Code, commonly known as the Antideficiency Act.

S. 613

At the request of Mr. Lugar, the name of the Senator from Nebraska
(Mr. Hagel) was added as a cosponsor of S. 613, a bill to enhance the
overseas stabilization and reconstruction capabilities of the United
States Government, and for other purposes.

S. 614

At the request of Mr. Schumer, the name of the Senator from Indiana
(Mr. Bayh) was added as a cosponsor of S. 614, a bill to amend the
Internal Revenue Code to double the child tax credit for the first
year, to expand the credit dependent care services, to provide relief
from the alternative minimum tax, and for other purposes.

S. 638

At the request of Mr. Byrd, the name of the Senator from Tennessee
(Mr. Alexander) was added as a cosponsor of S. 638, a bill to amend the
Internal Revenue Code of 1986 to provide for collegiate housing and
infrastructure grants.

S. 659

At the request of Mr. Hagel, the name of the Senator from Iowa (Mr.
Grassley) was added as a cosponsor of S. 659, a bill to amend section
1477 of title 10, United States Code, to provide for the payment of the
death gratuity with respect to members of the Armed Forces without a
surviving spouse who are survived by a minor child.

S. 694

At the request of Mrs. Clinton, the names of the Senator from Montana
(Mr. Tester) and the Senator from Rhode Island (Mr. Whitehouse) were
added as cosponsors of S. 694, a bill to direct the Secretary of
Transportation to issue regulations to reduce the incidence of child
injury and death occurring inside or outside of light motor vehicles,
and for other purposes.

S. 714

At the request of Mr. Akaka, the name of the Senator from New Jersey
(Mr. Lautenberg) was added as a cosponsor of S. 714, a bill to amend
the Animal Welfare Act to ensure that all dogs and cats used by
research facilities are obtained legally.

S. 790

At the request of Mr. Lugar, the name of the Senator from New York
(Mr. Schumer) was added as a cosponsor of S. 790, a bill to amend the
Richard B. Russell National School Lunch Act to permit the simplified
summer food programs to be carried out in all States and by all service
institutions.

S. 797

At the request of Mr. Cardin, the name of the Senator from
Massachusetts (Mr. Kennedy) was added as a cosponsor of S. 797, a bill
to amend the National Trails System Act to designate the Star-Spangled
Banner Trail in the States of Maryland and Virginia and the District of
Columbia as a National Historic Trail.

S. 798

At the request of Mr. Cardin, the names of the Senator from Louisiana
(Ms. Landrieu) and the Senator from Massachusetts (Mr. Kennedy) were
added as cosponsors of S. 798, a bill to establish the Star-Spangled
Banner and War of 1812 Bicentennial Commission, and for other purposes.

S. 807

At the request of Mrs. Lincoln, the names of the Senator from
Minnesota (Mr. Coleman) and the Senator from Oklahoma (Mr. Coburn) were
added as cosponsors of S. 807, a bill to amend the Comprehensive
Environmental Response Compensation and Liability Act of 1980 to
provide that manure shall not be considered to be a hazardous
substance, pollutant, or contaminant.

S. 823

At the request of Mr. Obama, the name of the Senator from Maryland
(Ms. Mikulski) was added as a cosponsor of S. 823, a bill to amend the
Public Health Service Act with respect to facilitating the development
of microbicides for preventing transmission of HIV/AIDS and other
diseases, and for other purposes.

S. 849

At the request of Mr. Leahy, the name of the Senator from Ohio (Mr.
Brown) was added as a cosponsor of S. 849, a bill to promote
accessibility, accountability, and openness in Government by
strengthening section 552 of title 5, United States Code (commonly
referred to as the Freedom of Information Act), and for other purposes.

S. 863

At the request of Mr. Sessions, the name of the Senator from Arizona
(Mr. McCain) was added as a cosponsor of S. 863, a bill to amend title
18, United States Code, with respect to fraud in connection with major
disaster or emergency funds.

S. 897

At the request of Ms. Mikulski, the names of the Senator from
Illinois (Mr. Durbin), the Senator from Minnesota (Mr. Coleman) and the
Senator from Georgia (Mr. Isakson) were added as cosponsors of S. 897,
a bill to amend the Internal Revenue Code of 1986 to provide more help
to Alzheimer's disease caregivers.

S. 898

At the request of Ms. Mikulski, the name of the Senator from Georgia
(Mr. Isakson) was added as a cosponsor of S. 898, a bill to amend the
Public Health Service Act to fund breakthroughs in Alzheimer's disease
research while providing more help to caregivers and increasing public
education about prevention.

S. 921

At the request of Mr. Thomas, the name of the Senator from California
(Mrs. Boxer) was added as a cosponsor of S. 921, a bill to amend title
XVIII of the Social Security Act to provide for the coverage of
marriage and family therapist services and mental health counselor
services under part B of the Medicare program, and for other purposes.

S. 937

At the request of Mrs. Clinton, the name of the Senator from
Minnesota (Mr. Coleman) was added as a cosponsor of S. 937, a bill to
improve support and services for individuals with autism and their
families.

S. 963

At the request of Mr. Menendez, the names of the Senator from
Pennsylvania (Mr. Specter) and the Senator from New Jersey (Mr.
Lautenberg) were added as cosponsors of S. 963, a bill to authorize the
Secretary of Education to make grants to educational organizations to
carry out educational programs about the Holocaust.

S. 966

At the request of Mr. Schumer, the name of the Senator from Minnesota
(Mr. Coleman) was added as a cosponsor of S. 966, a bill to enable the
Department of State to respond to a critical shortage of passport
processing personnel, and for other purposes.

S. 972

At the request of Mr. Lautenberg, the name of the Senator from
Montana (Mr. Baucus) was added as a cosponsor of S. 972, a bill to
provide for the reduction of adolescent pregnancy, HIV rates, and other
sexually transmitted diseases, and for other purposes.

S. 987

At the request of Mr. Bingaman, the names of the Senator from
Washington

[[Page 7765]]

(Ms. Cantwell), the Senator from Colorado (Mr. Salazar), the Senator
from Idaho (Mr. Craig), the Senator from Florida (Mr. Martinez) and the
Senator from Hawaii (Mr. Akaka) were added as cosponsors of S. 987, a
bill to enhance the energy security of the United States by promoting
biofuels and for other purposes.

S. 988

At the request of Ms. Mikulski, the name of the Senator from Wyoming
(Mr. Thomas) was added as a cosponsor of S. 988, a bill to extend the
termination date for the exemption of returning workers from the
numerical limitations for temporary workers.

S. RES. 76

At the request of Mr. Feingold, the names of the Senator from
Massachusetts (Mr. Kerry), the Senator from California (Mrs. Boxer),
the Senator from California (Mrs. Feinstein), the Senator from Maine
(Ms. Snowe), the Senator from Maryland (Ms. Mikulski), the Senator from
New York (Mrs. Clinton), the Senator from Connecticut (Mr. Lieberman),
the Senator from Ohio (Mr. Brown) and the Senator from Nebraska (Mr.
Hagel) were added as cosponsors of S. Res. 76, a resolution calling on
the United States Government and the international community to
promptly develop, fund, and implement a comprehensive regional strategy
in Africa to protect civilians, facilitate humanitarian operations,
contain and reduce violence, and contribute to conditions for
sustainable peace in eastern Chad, and Central African Republic, and
Darfur, Sudan.

S. RES. 82

At the request of Mr. Hagel, the name of the Senator from Georgia
(Mr. Chambliss) was added as a cosponsor of S. Res. 82, a resolution
designating August 16, 2007 as ``National Airborne Day''.

S. RES. 112

At the request of Mr. Schumer, the name of the Senator from
California (Mrs. Feinstein) was added as a cosponsor of S. Res. 112, a
resolution designating April 6, 2007, as ``National Missing Persons
Day''.

S. RES. 122

At the request of Mr. Hagel, the names of the Senator from South
Dakota (Mr. Thune), the Senator from Texas (Mrs. Hutchison) and the
Senator from North Carolina (Mrs. Dole) were added as cosponsors of S.
Res. 122, a resolution commemorating the 25th anniversary of the
construction and dedication of the Vietnam Veterans Memorial.

AMENDMENT NO. 643

At the request of Mr. Cochran, the name of the Senator from Georgia
(Mr. Chambliss) was added as a cosponsor of amendment No. 643 proposed
to H.R. 1591, a bill making emergency supplemental appropriations for
the fiscal year ending September 30, 2007, and for other purposes.

AMENDMENT NO. 647

At the request of Mr. Sessions, the name of the Senator from Arizona
(Mr. McCain) was added as a cosponsor of amendment No. 647 intended to
be proposed to H.R. 1591, a bill making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes.

____________________

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Mr. DURBIN (for himself, Mr. Coleman, Mr. Dodd, Mr. Hagel, Mr.
Obama, Mr. Kerry, Mr. Roberts, Mr. Menendez, Mr. Cochran, Mr.
Lieberman, Mr. Levin, Mr. Smith, Mr. Stevens, Mr. Akaka, Mr.
Chambliss, Ms. Stabenow, Ms. Snowe, Ms. Cantwell, Mr. Baucus,
Mr. Warner, Mr. Pryor, and Mr. Kennedy):
S. 991. A bill to establish the Senator Paul Simon Study Abroad
Foundation under the authorities of the Mutual Educational and Cultural
Exchange Act of 1961; to the Committee on Foreign Relations.
Mr. DURBIN. Mr. President, I have spoken many times about one of our
Nation's greatest public servants, the late Senator Paul Simon. He was
an honorable man who devoted his life to working for the public good.
In the months before his untimely death, Senator Simon returned to
Washington to talk to his former colleagues about the need to
strengthen our Nation's international understanding and our ability to
remain a world leader in the 21st century. His desire to promote peace
and security through mutual understanding and sensitivity to the rest
of the world was borne out of the tragic events of September 11, 2001.
Senator Simon struggled with the question of how America could lead
when so few of our citizens have the proper knowledge and understanding
of the world beyond our borders. He knew that America's security,
global competitiveness, and diplomatic efforts in working towards a
peaceful society rest on our young people's global competence and
ability to appreciate languages and cultural and social realities
beyond what they may have experienced in the United States. He
envisioned a United States populated by a generation of Americans with
a greater knowledge and understanding of the world--a generation of our
Nation's future leaders that have been abroad and have a personal
connection to another part of the world.
Senator Simon's tireless efforts led to Congress's establishment of
the Abraham Lincoln Study Abroad Commission. I was honored to serve on
this bipartisan Commission, and it was a privilege for me to introduce
legislation last year that brought Senator Simon's dream one step
closer to reality. The bill, based on the Commission's recommendations,
would have established a study abroad program for undergraduate
students that would help build global awareness and international
understanding.
I am once again proud to stand here today and introduce legislation
that embodies Senator Simon's vision. The bill has been renamed the
Senator Paul Simon Study Abroad Foundation Act so that all future
generations will remember Senator Simon's commitment to international
education.
The goal of this legislation remains the same: to encourage and
support the experience of studying abroad in developing countries--in
countries whose people, culture, language, government, and religion
might be very different from ours. This bill aims to have at least 1
million undergraduate students study abroad annually within 10 years
and to expand study abroad opportunities for students who are currently
underrepresented.
The Senator Paul Simon Study Abroad Foundation Act would establish
study abroad as a national priority and provide the catalyst for the
education community to commit to making study abroad an institutional
priority.
This legislation would create an independent public-private entity,
the Senator Paul Simon Foundation, that would award grants to carry out
the goal of making study abroad in high-quality programs in diverse
locations around the world the routine, rather than the exception, for
college students. Students who were previously unable to study abroad
due to financial constraints would be eligible for grants. Grants also
would provide colleges, universities and nongovernmental institutions
with the financial incentive to develop programs that make it easier
for college students to study abroad.
The future of our country depends on having globally literate
citizens--those who are able to look at other points of view and
incorporate those ideas into their thinking and manner of interacting
with others. I have shared this Paul Simon quote before, and I will do
so again because it is the most poignant example of Paul's vision in
his own words:

A nation cannot drift into greatness. We must dream, and we
must be willing to make small sacrifices to achieve those
dreams. This major national initiative can lift our vision
and responsiveness to the rest of the world.

I ask my colleagues to join with me and with Senator Coleman in
support of this legislation and to see to it that Senator Paul Simon's
dream of building a stronger and more culturally aware nation is
realized.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.

[[Page 7766]]

There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:

S. 991

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Senator Paul Simon Study
Abroad Foundation Act of 2007''.

SEC. 2. FINDINGS.

Congress makes the following findings:
(1) According to President George W. Bush, ``America's
leadership and national security rest on our commitment to
educate and prepare our youth for active engagement in the
international community.''.
(2) According to former President William J. Clinton,
``Today, the defense of United States interests, the
effective management of global issues, and even an
understanding of our Nation's diversity require ever-greater
contact with, and understanding of, people and cultures
beyond our borders.''.
(3) Congress authorized the establishment of the Commission
on the Abraham Lincoln Study Abroad Fellowship Program
pursuant to section 104 of the Miscellaneous Appropriations
and Offsets Act, 2004 (division H of Public Law 108-199).
Pursuant to its mandate, the Commission has submitted to
Congress and the President a report of its recommendations
for greatly expanding the opportunity for students at
institutions of higher education in the United States to
study abroad, with special emphasis on studying in developing
nations.
(4) Studies consistently show that United States students
score below their counterparts in other advanced countries on
indicators of international knowledge. This lack of global
literacy is a national liability in an age of global trade
and business, global interdependence, and global terror.
(5) By numbers ranging from 77 to more than 90 percent,
Americans believe that it is important for their children to
learn other languages, study abroad, attend a college where
they can interact with international students, learn about
other countries and cultures, and generally be prepared for
the global age, according to a December 2005 national survey
commissioned by NAFSA: Association of International
Educators.
(6) In today's world, it is more important than ever for
the United States to be a responsible, constructive leader
that other countries are willing to follow. Such leadership
cannot be sustained without an informed citizenry with much
more knowledge and awareness of the world than most Americans
currently possess.
(7) Study abroad has proven to be a very effective means of
imparting international and foreign-language competency to
students.
(8) In any given year, only approximately one percent of
all students enrolled in United States institutions of higher
education study abroad.
(9) Less than 10 percent of the students who graduate from
United States institutions of higher education with bachelors
degrees have studied abroad.
(10) Far more study abroad must take place in the
developing countries. Ninety-five percent of the world's
population growth over the next 50 years will occur outside
of Europe. Yet in the academic year 2004-2005, 60 percent of
United States students studying abroad studied in Europe, and
45 percent studied in four countries--the United Kingdom,
Italy, Spain, and France--according to the Institute of
International Education.
(11) The Final Report of the National Commission on
Terrorist Attacks Upon the United States (The 9/11 Commission
Report) recommended that the United States increase support
for ``scholarship, exchange, and library programs''. The 9/11
Public Discourse Project, successor to the 9/11 Commission,
noted in its November 14, 2005, status report that this
recommendation was ``unfulfilled,'' and stated that ``The
U.S. should increase support for scholarship and exchange
programs, our most powerful tool to shape attitudes over the
course of a generation.''. In its December 5, 2005, Final
Report on the 9/11 Commission Recommendations, the 9/11
Public Discourse Project gave the government a grade of ``D''
for its implementation of this recommendation.
(12) Investing in a national study abroad program would
help turn a grade of ``D'' into an ``A'' by equipping United
States students to communicate United States values and way
of life through the unique dialogue that takes place among
citizens from around the world when individuals study abroad.

SEC. 3. PURPOSES.

The purposes of this Act are--
(1) to significantly enhance the global competitiveness and
international knowledge base of the United States by ensuring
that more students in United States institutions of higher
education have the opportunity to acquire foreign language
skills and international knowledge through significantly
expanded study abroad;
(2) to enhance the foreign policy capacity of the United
States by significantly expanding and diversifying the talent
pool of individuals with non-traditional foreign language
skills and cultural knowledge in the United States who are
available for recruitment by United States foreign affairs
agencies, legislative branch agencies, and nongovernmental
organizations involved in foreign affairs activities;
(3) to ensure that an increasing portion of study abroad by
United States students will take place in nontraditional
study abroad destinations such as the People's Republic of
China, countries of the Middle East region, and developing
countries; and
(4) to create greater cultural understanding of the United
States by exposing foreign students and their families to
American students in countries that have not traditionally
hosted large numbers of American students.

SEC. 4. DEFINITIONS.

In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs and the Committee on
Appropriations of the House of Representatives; and
(B) the Committee on Foreign Relations and the Committee on
Appropriations of the Senate.
(2) Board.--The term ``Board'' means the Board of Directors
of the Foundation established pursuant to section 5(d).
(3) Chief executive officer.--The term ``Chief Executive
Officer'' means the chief executive officer of the Foundation
appointed pursuant to section 5(c).
(4) Foundation.--The term ``Foundation'' means the Senator
Paul Simon Study Abroad Foundation established by section
5(a).
(5) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101(a) of the Higher Education Act of 1965
(20 U.S.C. 1001(a)).
(6) Nontraditional study abroad destination.--The term
``nontraditional study abroad destination'' means a location
that is determined by the Foundation to be a less common
destination for United States students who study abroad.
(7) Study abroad.--The term ``study abroad'' means an
educational program of study, work, research, internship, or
combination thereof that is conducted outside the United
States and that carries academic credit toward fulfilling the
participating student's degree requirements.

SEC. 5. ESTABLISHMENT AND MANAGEMENT OF THE SENATOR PAUL
SIMON STUDY ABROAD FOUNDATION.

(a) Establishment.--
(1) In general.--There is established in the executive
branch a corporation to be known as the ``Senator Paul Simon
Study Abroad Foundation'' that shall be responsible for
carrying out this Act under the authorities of the Mutual
Educational and Cultural Exchange Act of 196l (22 U.S.C. 2451
et seq.). The Foundation shall be a government corporation,
as defined in section 103 of title 5, United States Code.
(2) Board of directors.--The Foundation shall be governed
by a Board of Directors chaired by the Secretary of State in
accordance with subsection (d).
(3) Intent of congress.--It is the intent of Congress in
establishing the structure of the Foundation set forth in
this subsection to create an entity that will administer a
study abroad program that--
(A) serves the long-term foreign policy and national
security needs of the United States; but
(B) operates independently of short-term political and
foreign policy considerations.
(b) Mandate of Foundation.--In administering the program
referred to in subsection (a)(3), the Foundation shall--
(1) promote the objectives and purposes of this Act;
(2) through responsive, flexible grant-making, promote
access by students at diverse institutions of higher
education, including two-year institutions, minority-serving
institutions, and institutions that serve nontraditional
students;
(3) through creative grant-making, promote access by
diverse students, including minority students, students of
limited financial means, and nontraditional students;
(4) raise funds from the private sector to supplement funds
made available under this Act; and
(5) be committed to minimizing administrative costs and to
maximizing the availability of funds for grants under this
Act.
(c) Chief Executive Officer.--
(1) In general.--There shall be in the Foundation a Chief
Executive Officer who shall be responsible for the management
of the Foundation.
(2) Appointment.--The Chief Executive Officer shall be
appointed by the Board and shall be a recognized leader in
higher education, business, or foreign policy, chosen on the
basis of a rigorous search.
(3) Relationship to board.--The Chief Executive Officer
shall report to and be under the direct authority of the
Board.
(4) Compensation and rank.--
(A) In general.--The Chief Executive Officer shall be
compensated at the rate provided for level III of the
Executive Schedule under section 5314 of title 5, United
States Code, and shall have the equivalent rank of Deputy
Secretary.
(B) Amendment.--Section 5314 of title 5, United States
Code, is amended by adding at the end the following:

[[Page 7767]]

``Chief Executive Officer, Senator Paul Simon Study Abroad
Foundation.''.
(5) Authorities and duties.--The Chief Executive Officer
shall be responsible for the management of the Foundation and
shall exercise the powers and discharge the duties of the
Foundation.
(6) Authority to appoint officers.--In consultation and
with approval of the Board, the Chief Executive Officer shall
appoint all officers of the Foundation.
(d) Board of Directors.--
(1) Establishment.--There shall be in the Foundation a
Board of Directors.
(2) Duties.--The Board shall perform the functions
specified to be carried out by the Board in this Act and may
prescribe, amend, and repeal bylaws, rules, regulations, and
procedures governing the manner in which the business of the
Foundation may be conducted and in which the powers granted
to it by law may be exercised.
(3) Membership.--The Board shall consist of--
(A) the Secretary of State (or the Secretary's designee),
the Secretary of Education (or the Secretary's designee), the
Secretary of Defense (or the Secretary's designee), and the
Administrator of the United States Agency for International
Development (or the Administrator's designee); and
(B) five other individuals with relevant experience in
matters relating to study abroad (such as individuals who
represent institutions of higher education, business
organizations, foreign policy organizations, or other
relevant organizations) who shall be appointed by the
President, by and with the advice and consent of the Senate,
of which--
(i) one individual shall be appointed from among a list of
individuals submitted by the majority leader of the House of
Representatives;
(ii) one individual shall be appointed from among a list of
individuals submitted by the minority leader of the House of
Representatives;
(iii) one individual shall be appointed from among a list
of individuals submitted by the majority leader of the
Senate; and
(iv) one individual shall be appointed from among a list of
individuals submitted by the minority leader of the Senate.
(4) Chief executive officer.--The Chief Executive Officer
of the Foundation shall serve as a nonvoting, ex officio
member of the Board.
(5) Terms.--
(A) Officers of the federal government.--Each member of the
Board described in paragraph (3)(A) shall serve for a term
that is concurrent with the term of service of the
individual's position as an officer within the other Federal
department or agency.
(B) Other members.--Each member of the Board described in
paragraph (3)(B) shall be appointed for a term of 3 years and
may be reappointed for a term of an additional 3 years.
(C) Vacancies.--A vacancy in the Board shall be filled in
the manner in which the original appointment was made.
(6) Chairperson.--There shall be a Chairperson of the
Board. The Secretary of State shall serve as the Chairperson.
(7) Quorum.--A majority of the members of the Board
described in paragraph (3) shall constitute a quorum, which,
except with respect to a meeting of the Board during the 135-
day period beginning on the date of the enactment of this
Act, shall include at least one member of the Board described
in paragraph (3)(B).
(8) Meetings.--The Board shall meet at the call of the
Chairperson.
(9) Compensation.--
(A) Officers of the federal government.--
(i) In general.--A member of the Board described in
paragraph (3)(A) may not receive additional pay, allowances,
or benefits by reason of the member's service on the Board.
(ii) Travel expenses.--Each such member of the Board shall
receive travel expenses, including per diem in lieu of
subsistence, in accordance with applicable provisions under
subchapter I of chapter 57 of title 5, United States Code.
(B) Other members.--
(i) In general.--Except as provided in clause (ii), a
member of the Board described in paragraph (3)(B)--

(I) shall be paid compensation out of funds made available
for the purposes of this Act at the daily equivalent of the
highest rate payable under section 5332 of title 5, United
States Code, for each day (including travel time) during
which the member is engaged in the actual performance of
duties as a member of the Board; and
(II) while away from the member's home or regular place of
business on necessary travel in the actual performance of
duties as a member of the Board, shall be paid per diem,
travel, and transportation expenses in the same manner as is
provided under subchapter I of chapter 57 of title 5, United
States Code.

(ii) Limitation.--A member of the Board may not be paid
compensation under clause (i)(II) for more than 90 days in
any calendar year.

SEC. 6. ESTABLISHMENT AND OPERATION OF PROGRAM.

(a) Establishment of the Program.--There is hereby
established a program, which shall--
(1) be administered by the Foundation; and
(2) award grants to--
(A) individuals for study abroad;
(B) nongovernmental institutions that provide and promote
study abroad opportunities, in consortium with institutions
described in subparagraph (C); and
(C) institutions of higher education, individually or in
consortium,
in order to accomplish the objectives set forth in subsection
(b).
(b) Objectives.--The objectives of the program established
under subsection (a) are that, within 10 years of the date of
the enactment of this Act--
(1) not less than one million undergraduate students in
United States institutions of higher education will study
abroad annually for credit;
(2) the demographics of study-abroad participation will
reflect the demographics of the United States undergraduate
population; and
(3) an increasing portion of study abroad will take place
in nontraditional study abroad destinations, with a
substantial portion of such increases taking place in
developing countries.
(c) Mandate of the Program.--In order to accomplish the
objectives set forth in subsection (b), the Foundation shall,
in administering the program established under subsection
(a), take fully into account the recommendations of the
Commission on the Abraham Lincoln Study Abroad Fellowship
Program (established pursuant to section 104 of the
Miscellaneous Appropriations and Offsets Act, 2004 (division
H of Public Law 108-199)).
(d) Structure of Grants.--In accordance with the
recommendations of the Commission on the Abraham Lincoln
Study Abroad Fellowship Program, grants awarded under the
program established under subsection (a) shall be structured
to the maximum extent practicable to promote appropriate
reforms in institutions of higher education in order to
remove barriers to participation by students in study abroad.
(e) Balance of Long-Term and Short-Term Study Abroad
Programs.--In administering the program established under
subsection (a), the Foundation shall seek an appropriate
balance between--
(1) longer-term study abroad programs, which maximize
foreign-language learning and intercultural understanding;
and
(2) shorter-term study abroad programs, which maximize the
accessibility of study abroad to nontraditional students.

SEC. 7. ANNUAL REPORT.

Not later than March 31, 2008, and each March 31
thereafter, the Foundation shall submit to Congress a report
on the implementation of this Act during the prior fiscal
year.

SEC. 8. POWERS OF THE FOUNDATION; RELATED PROVISIONS.

(a) Powers.--The Foundation--
(1) shall have perpetual succession unless dissolved by a
law enacted after the date of the enactment of this Act;
(2) may adopt, alter, and use a seal, which shall be
judicially noticed;
(3) may make and perform such contracts, grants, and other
agreements with any person or government however designated
and wherever situated, as may be necessary for carrying out
the functions of the Foundation;
(4) may determine and prescribe the manner in which its
obligations shall be incurred and its expenses allowed and
paid, including expenses for representation;
(5) may lease, purchase, or otherwise acquire, improve, and
use such real property wherever situated, as may be necessary
for carrying out the functions of the Foundation;
(6) may accept cash gifts or donations of services or of
property (real, personal, or mixed), tangible or intangible,
for the purpose of carrying out the provisions of this Act;
(7) may use the United States mails in the same manner and
on the same conditions as the executive departments;
(8) may contract with individuals for personal services,
who shall not be considered Federal employees for any
provision of law administered by the Office of Personnel
Management;
(9) may hire or obtain passenger motor vehicles; and
(10) shall have such other powers as may be necessary and
incident to carrying out this Act.
(b) Principal Office.--The Foundation shall maintain its
principal office in the metropolitan area of Washington,
District of Columbia.
(c) Applicability of Government Corporation Control Act.--
(1) In general.--The Foundation shall be subject to chapter
91 of subtitle VI of title 31, United States Code, except
that the Foundation shall not be authorized to issue
obligations or offer obligations to the public.
(2) Conforming amendment.--Section 9101(3) of title 31,
United States Code, is amended by adding at the end the
following:
``(R) the Senator Paul Simon Study Abroad Foundation.''.
(d) Inspector General.--

[[Page 7768]]

(1) In general.--The Inspector General of the Department of
State shall serve as Inspector General of the Foundation,
and, in acting in such capacity, may conduct reviews,
investigations, and inspections of all aspects of the
operations and activities of the Foundation.
(2) Authority of the board.--In carrying out the
responsibilities under this subsection, the Inspector General
shall report to and be under the general supervision of the
Board.
(3) Reimbursement and authorization of services.--
(A) Reimbursement.--The Foundation shall reimburse the
Department of State for all expenses incurred by the
Inspector General in connection with the Inspector General's
responsibilities under this subsection.
(B) Authorization for services.--Of the amount authorized
to be appropriated under section 10(a) for a fiscal year, up
to $2,000,000 is authorized to be made available to the
Inspector General of the Department of State to conduct
reviews, investigations, and inspections of operations and
activities of the Foundation.

SEC. 9. GENERAL PERSONNEL AUTHORITIES.

(a) Detail of Personnel.--Upon request of the Chief
Executive Officer, the head of an agency may detail any
employee of such agency to the Foundation on a reimbursable
basis. Any employee so detailed remains, for the purpose of
preserving such employee's allowances, privileges, rights,
seniority, and other benefits, an employee of the agency from
which detailed.
(b) Reemployment Rights.--
(1) In general.--An employee of an agency who is serving
under a career or career conditional appointment (or the
equivalent), and who, with the consent of the head of such
agency, transfers to the Foundation, is entitled to be
reemployed in such employee's former position or a position
of like seniority, status, and pay in such agency, if such
employee--
(A) is separated from the Foundation for any reason, other
than misconduct, neglect of duty, or malfeasance; and
(B) applies for reemployment not later than 90 days after
the date of separation from the Foundation.
(2) Specific rights.--An employee who satisfies paragraph
(1) is entitled to be reemployed (in accordance with such
paragraph) within 30 days after applying for reemployment
and, on reemployment, is entitled to at least the rate of
basic pay to which such employee would have been entitled had
such employee never transferred.
(c) Hiring Authority.--Of persons employed by the
Foundation, not to exceed 30 persons may be appointed,
compensated, or removed without regard to the civil service
laws and regulations.
(d) Basic Pay.--The Chief Executive Officer may fix the
rate of basic pay of employees of the Foundation without
regard to the provisions of chapter 51 of title 5, United
States Code (relating to the classification of positions),
subchapter III of chapter 53 of such title (relating to
General Schedule pay rates), except that no employee of the
Foundation may receive a rate of basic pay that exceeds the
rate for level IV of the Executive Schedule under section
5315 of such title.
(e) Definitions.--In this section--
(1) the term ``agency'' means an executive agency, as
defined by section 105 of title 5, United States Code; and
(2) the term ``detail'' means the assignment or loan of an
employee, without a change of position, from the agency by
which such employee is employed to the Foundation.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

(a) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this Act $80,000,000 for
fiscal year 2008 and each subsequent fiscal year.
(b) Allocation of Funds.--
(1) In general.--The Foundation may allocate or transfer to
any agency of the United States Government any of the funds
available for carrying out this Act. Such funds shall be
available for obligation and expenditure for the purposes for
which the funds were authorized, in accordance with authority
granted in this Act or under authority governing the
activities of the United States Government agency to which
such funds are allocated or transferred.
(2) Notification.--The Foundation shall notify the
appropriate congressional committees not less than 15 days
prior to an allocation or transfer of funds pursuant to
paragraph (1).
______

By Mrs. BOXER (for herself, Mr. Inhofe, Mr. Lautenberg, Mr.
Alexander, Mr. Cardin, Mr. Lieberman, Mrs. Clinton, Ms.
Klobuchar, and Mr. Craig):
S. 992. A bill to achieve emission reductions and cost savings
through accelerated use of cost-effective lighting technologies in
public buildings, and for other purposes; to the Committee on
Environment and Public Works.
Mrs. BOXER. Mr. President, today I am pleased to introduce the
``Public Buildings Cost Reduction Act of 2007.'' I am joined by my
Environment and Public Works Committee colleagues Senators Inhofe,
Lautenberg, Alexander, Cardin, Lieberman, Clinton, and Klobuchar. This
bill will reduce air pollution and save taxpayer money by accelerating
the use of cost-effective technologies that reduce energy use in public
buildings.
The goal of this legislation is to have the government lead by
example. This bill will help to ensure less polluting and more cost-
effective General Services Administration, or GSA, buildings. Under
this legislation, the GSA, which is the Nation's largest public real
estate organization, must establish a program to speed the use of cost-
effective and energy-efficient technology and other actions, called
``cost-effective technologies and practices'', in its buildings. GSA
also must assure that a manager is named who is responsible for
accelerating the use of cost-effective technologies and practices for
each GSA building.
In addition, the GSA must review current and available highly-
efficient lighting within 90 days, and complete a plan within 6 months
for installing highly-efficient lighting in GSA buildings. Within 1
year after enactment, GSA must issue a detailed timetable to replace
all existing inefficient lighting in GSA buildings as quickly as
feasible, within 5 years, using available funds.
A second provision in the bill requires GSA to complete a broader
plan that will: (1) achieve a 20-percent reduction in operating costs
at GSA facilities to the maximum extent feasible within 5 years after
enactment through the application of cost-effective, highly efficient
technologies and practices, using available funds; (2) describe the
current and needed funding for these programs and any issues that may
inhibit their implementation; (3) recommend uniform standards for
federal agencies for highly efficient technologies; and (4) recommend
ways to allow federal agencies to keep their savings from using
efficient technologies and practices, to use them for additional
investments and other purposes.
The bill also creates an EPA grant program to help local governments
make their buildings more efficient. This $20 million per year matching
grant program at EPA will help local governments renovate their
buildings to make them more cost-effective and energy efficient. The
grant program will require a 40 percent match from the local
government, and will require grantees to show they will cut utility
bills by 40 percent through renovations of a building or buildings that
use highly efficient technologies and practices. Further, EPA will have
to verify the efficiency and savings and issue guidelines for the
program. Grants of up to $1 million will be allowed. In addition, the
bill requires reports to Congress on progress under the program,
savings achieved, and recommendations.
I ask unanimous consent that the text of my bill be printed in the
Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 992

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Public Buildings Cost
Reduction Act of 2007''.

SEC. 2. COST-EFFECTIVE TECHNOLOGY ACCELERATION PROGRAM.

(a) Establishment.--The Administrator of General Services
(referred to in this section as the ``Administrator'') shall
establish a program to accelerate the use of more cost-
effective technologies and practices at GSA facilities.
(b) Accelerated Use of Cost-Effective Lighting
Technologies.--
(1) Review.--
(A) In general.--As part of the program under this
subsection, not later than 90 days after the date of
enactment of this Act, the Administrator shall conduct a
review of--
(i) current use of cost-effective lighting technologies in
GSA facilities; and
(ii) the availability to managers of GSA facilities of
cost-effective lighting technologies.
(B) Requirements.--The review under subparagraph (A)
shall--
(i) examine the use of cost-effective lighting technologies
and other cost-effective technologies and practices by
Federal agencies in GSA facilities; and

[[Page 7769]]

(ii) identify, in consultation with the Environmental
Protection Agency, cost-effective lighting technology
standards that could be used for all types of GSA facilities.
(2) Replacement.--
(A) In general.--As part of the program under this
subsection, not later than 180 days after the date of
enactment of this Act, the Administrator shall establish a
cost-effective lighting technology acceleration program to
achieve maximum feasible replacement of existing lighting
technologies with more cost-effective lighting technologies
in each GSA facility using available appropriations.
(B) Acceleration plan timetable.--
(i) In general.--To implement the program established under
subparagraph (A), not later than 1 year after the date of
enactment of this Act, the Administrator shall establish a
timetable including milestones for specific activities needed
to replace existing lighting technologies with more cost-
effective lighting technologies, to the maximum extent
feasible (including at the maximum rate feasible), at each
GSA facility.
(ii) Goal.--The goal of the timetable under clause (i)
shall be to complete, using available appropriations, maximum
feasible replacement of existing lighting technologies with
more cost-effective lighting technologies by not later than
the date that is 5 years after the date of enactment of this
Act.
(c) GSA Facility Cost-Effective Technologies and
Practices.--Not later than 180 days after the date of
enactment of this Act, and annually thereafter, the
Administrator shall--
(1) ensure that a manager responsible for accelerating the
use of cost-effective technologies and practices is
designated for each GSA facility; and
(2) submit to Congress a plan, to be implemented to the
maximum extent feasible (including at the maximum rate
feasible) using available appropriations, by not later than
the date that is 5 years after the date of enactment of this
Act, that--
(A) identifies the specific activities needed to achieve a
20-percent reduction in operational costs through the
application of cost-effective technologies and practices from
2003 levels at GSA facilities by not later than 5 years after
the date of enactment of this Act;
(B) describes activities required and carried out to
estimate the funds necessary to achieve the reduction
described in subparagraph (A);
(C) describes the status of the implementation of cost-
effective technologies and practices at GSA facilities,
including--
(i) the extent to which programs, including the program
established under subsection (b), are being carried out in
accordance with this Act; and
(ii) the status of funding requests and appropriations for
those programs;
(D) identifies within the planning, budgeting, and
construction process all types of GSA facility-related
procedures that inhibit new and existing GSA facilities from
implementing cost-effective technologies and practices;
(E) recommends language for uniform standards for use by
Federal agencies in implementing cost-effective technologies
and practices;
(F) in coordination with the Office of Management and
Budget, reviews the budget process for capital programs with
respect to alternatives for--
(i) permitting Federal agencies to retain all identified
savings accrued as a result of the use of cost-effective
technologies and practices; and
(ii) identifying short- and long-term cost savings that
accrue from cost-effective technologies and practices;
(G) achieves cost savings through the application of cost-
effective technologies and practices sufficient to pay the
incremental additional costs of installing the cost-effective
technologies and practices by not later than the date that is
5 years after the date of installation; and
(H) includes recommendations to address each of the
matters, and a plan for implementation of each
recommendation, described in subparagraphs (A) through (G).
(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section, to remain available until expended.

SEC. 3. ENVIRONMENTAL PROTECTION AGENCY DEMONSTRATION GRANT
PROGRAM FOR LOCAL GOVERNMENTS.

(a) Grant Program.--
(1) In general.--The Administrator of the Environmental
Protection Agency (referred to in this section as the
``Administrator'') shall establish a demonstration program
under which the Administrator shall provide competitive
grants to assist local governments (such as municipalities
and counties), with respect to local government buildings--
(A) to deploy cost-effective technologies and practices;
and
(B) to achieve operational cost savings, through the
application of cost-effective technologies and practices, as
verified by the Administrator.
(2) Cost sharing.--The Federal share of the cost of an
activity carried out using a grant provided under this
section shall be 40 percent.
(3) Maximum amount.--The amount of a grant provided under
this subsection shall not exceed $1,000,000.
(b) Guidelines.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall issue
guidelines to implement the grant program established under
subsection (a).
(2) Requirements.--The guidelines under paragraph (1) shall
establish--
(A) standards for monitoring and verification of
operational cost savings through the application of cost-
effective technologies and practices reported by grantees
under this section;
(B) standards for grantees to implement training programs,
and to provide technical assistance and education, relating
to the retrofit of buildings using cost-effective
technologies and practices; and
(C) a requirement that each local government that receives
a grant under this section shall achieve facility-wide cost
savings, through renovation of existing local government
buildings using cost-effective technologies and practices, of
at least 40 percent as compared to the baseline operational
costs of the buildings before the renovation (as calculated
assuming a 3-year, weather-normalized average).
(c) Compliance With State and Local Law.--Nothing in this
section or any program carried out using a grant provided
under this section supersedes or otherwise affects any State
or local law, to the extent that the State or local law
contains a requirement that is more stringent than the
relevant requirement of this section.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2007 through 2012.
(e) Reports.--
(1) In general.--The Administrator shall provide annual
reports to Congress on cost savings achieved and actions
taken and recommendations made under this section, and any
recommendations for further action.
(2) Final report.--The Administrator shall issue a final
report at the conclusion of the program, including findings,
a summary of total cost savings achieved, and recommendations
for further action.
(f) Termination.--The program under this section shall
terminate on September 30, 2012.

SEC. 4. DEFINITIONS.

In this Act:
(1) Cost-effective lighting technology.--
(A) In general.--The term ``cost-effective lighting
technology'' means a lighting technology that--
(i) will result in substantial operational cost savings by
ensuring an installed consumption of not more than 1 watt per
square foot; or
(ii) is contained in a list under--

(I) section 553 of Public Law 95-619 (42 U.S.C. 8259b); and
(II) Federal acquisition regulation 23-203.

(B) Inclusions.--The term ``cost-effective lighting
technology'' includes--
(i) lamps;
(ii) ballasts;
(iii) luminaires;
(iv) lighting controls;
(v) daylighting; and
(vi) early use of other highly cost-effective lighting
technologies.
(2) Cost-effective technologies and practices.--The term
``cost-effective technologies and practices'' means a
technology or practice that--
(A) will result in substantial operational cost savings by
reducing utility costs; and
(B) complies with the provisions of section 553 of Public
Law 95-619 (42 U.S.C. 8259b) and Federal acquisition
regulation 23-203.
(3) Operational cost savings.--
(A) In general.--The term ``operational cost savings''
means a reduction in end-use operational costs through the
application of cost-effective technologies and practices,
including a reduction in electricity consumption relative to
consumption by the same customer or at the same facility in a
given year, as defined in guidelines promulgated by the
Administrator pursuant to section 3(b), that achieves cost
savings sufficient to pay the incremental additional costs of
using cost-effective technologies and practices by not later
than the date that is 5 years after the date of installation.
(B) Inclusions.--The term ``operational cost savings''
includes savings achieved at a facility as a result of--
(i) the installation or use of cost-effective technologies
and practices; or
(ii) the planting of vegetation that shades the facility
and reduces the heating, cooling, or lighting needs of the
facility.
(C) Exclusion.--The term ``operational cost savings'' does
not include savings from measures that would likely be
adopted in the absence of cost-effective technology and
practices programs, as determined by the Administrator.
(4) GSA facility.--
(A) In general.--The term ``GSA facility'' means any
building, structure, or facility, in whole or in part
(including the associated support systems of the building,
structure, or facility) that--
(i) is constructed (including facilities constructed for
lease), renovated, or purchased, in whole or in part, by the
Administrator for use by the Federal Government; or

[[Page 7770]]

(ii) is leased, in whole or in part, by the Administrator
for use by the Federal Government--

(I) except as provided in subclause (II), for a term of not
less than 5 years; or
(II) for a term of less than 5 years, if the Administrator
determines that use of cost-effective technologies and
practices would result in the payback of expenses.

(B) Inclusion.--The term ``GSA facility'' includes any
group of buildings, structures, or facilities described in
subparagraph (A) (including the associated energy-consuming
support systems of the buildings, structures, and
facilities).
(C) Exemption.--The Administrator may exempt from the
definition of ``GSA facility'' under this paragraph a
building, structure, or facility that meets the requirements
of section 543(c) of Public Law 95-619 (42 U.S.C. 8253(c)).
______

By Mrs. CLINTON (for herself and Mr. Dodd):
S. 993. A bill to improve pediatric research; to the Committee on
Health, Education, Labor, and Pensions.
Mrs. CLINTON. Mr. President, today I am introducing the Pediatric
Research Improvement Act, legislation to reauthorize the Pediatric Rule
and extend it permanently. I believe that doing so is critically
important to ensure that the drugs designed for children are safe and
effective for children. This legislation will result in better health
outcomes for our children, grandchildren, and many generations of
children to come.
In 1998, the FDA issued a regulation called the pediatric rule, which
allowed the agency to require companies to perform pediatric clinical
trials on medications used by children. It is important to note that
this requirement does not slow the drug approval process. If a drug is
not likely to be used in the pediatric population, it is not subject to
this testing. Companies can also apply for a deferral, so that they can
perform necessary tests after a drug has been approved and is being
used in the adult population.
In October 2002, a U.S. District Court found that the FDA had
exceeded its statutory authority when it promulgated the Pediatric
Rule, and that Congress needed to explicitly award the FDA the power to
require these clinical trials.
In response, I worked with my colleagues in Congress to pass the
Pediatric Research Equity Act, legislation that codified the Pediatric
Rule, and which was signed into law on December 3, 2003.
Since 2003, over 100 drugs have been evaluated under PREA--and since
1998, more than 1,000 drugs have fallen under the authority of the
pediatric rule. The legislation has successfully resulted in increased
pediatric evaluations. We've been able to collect data on drugs
commonly used in children--like azithromycin, an antibiotic used to
treat bronchitis, pneumonia, and other respiratory infections--as well
as drugs that may not be so commonly used, but that help keep children
alive, like emtriva, one of the newer drugs we have to treat AIDS.
But unless we act to reauthorize this legislation now, the pediatric
rule is set to sunset on September 30 of this year, placing in jeopardy
the ability of the agency to require these safeguards for our children.
In order to address this, I am introducing the Pediatric Research
Improvement Act to remove the sunset for the pediatric rule, so that we
will never again be in danger of losing the authority to make sure that
the drugs designed for children are safe for children.
In addition to making the rule permanent, this reauthorization would
do the following:
Improves Coordination between Pediatric Specialists and Others at the
FDA. In order to improve coordination with the pediatric exclusivity
provisions of the Best Pharmaceuticals for Children Act (BPCA), PRIA
would expand an internal FDA committee to review all issues of
pediatric-related labeling and assessments. Doing so ensures that a
drug that falls under PRIA or BPCA is reviewed not only by experts for
that particular drug, but those with pediatric expertise.
Streamlines the process for obtaining pediatric data on already-
marketed drugs. If a company chooses not to pursue pediatric
exclusivity for an already marketed drug under the Best Pharmaceuticals
for Children Act, the Secretary has the authority to require the
submission of pediatric data for the drug. This authority has never
been utilized, in part due to the lengthy administrative process
required. PRIA would streamline this administrative process and help
get essential data on drugs for which it is vitally needed, while
preserving the ability of companies to have a fair review of the
agency's decisions.
Increases Data about the Use and Applicability of PRIA. PRIA would
require two reports--one from the Institute of Medicine and one from
the GAO--that would allow us to have better data on the number and ways
in which the pediatric rule is used, and evaluate its contributions to
ensuring overall pediatric drug safety.
This legislation is supported by the American Academy of Pediatrics,
Elizabeth Glaser Pediatric AIDS Foundation, Ambulatory Pediatric
Association, American Pediatric Society, Association of Medical School
Pediatric Department Chairs, and the Society for Pediatric Research.
I look forward to working with my colleagues in Congress to pass this
vital piece of legislation as quickly as possible, and help to ensure
that our pediatricians and other health professionals have the tools
they need to provide safe and effective treatment to our Nation's
children.
______

By Mr. TESTER (for himself and Mr. Salazar):
S. 994. A bill to amend title 38, United States Code, to eliminate
the deductible and change the method of determining the mileage
reimbursement rate under the beneficiary travel program administered by
the Secretary of Veteran Affairs, and for other purposes; to the
Committee on Veterans' Affairs.
Mr. TESTER. Mr. President, today I am proud to introduce legislation
that will go a long ways toward meeting our Nation's obligations to our
rural veterans. The Disabled Fairness Act will make a real improvement
in the lives of America's rural veterans--more than 17,000 of whom live
in my State.
For many veterans who live far from a VA hospital or community health
center, transportation remains the single biggest obstacle to care.
Today, disabled veterans are eligible to have only a small fraction of
their transportation costs reimbursed. They must pay the first $18 per
month out of their own pocket. And after that, they receive
reimbursement at the rate of just 11 cents per mile--less than one-
quarter of the current rate of 48.5 cents per mile for Government
employees. The reimbursement rate has not been changed since 1977. That
is unacceptable.
In Montana, we have several very good VA health clinics, as well as
one of the best hospitals in the VA system, the Ft. Harrison Hospital
in Helena. But the smaller clinics simply cannot provide all the
services that Ft. Harrison offers. That is no complaint against these
clinics, it is just a fact.
So when a disabled veteran in my State gets in his car and drives 200
miles from Havre to the Ft. Harrison VA hospital in Helena to receive
treatment for an injury he suffered while defending our country, he
will be reimbursed $4. On the way back, he will be eligible to be
reimbursed $22. That is $26 total for a trip that the Federal
Government estimates will actually cost $194. That is a slap in the
face to someone whose life has been fundamentally altered by the wounds
they suffered on the field of battle.
In the last month, AAA reports that the price of gas in Montana has
increased 36 cents over the last month. That means disabled veterans
are spending much more of their own money to get to a VA hospital,
especially in places like Montana, where a trip to the hospital can
mean a journey of hundreds of miles.
The Disabled Veterans Fairness Act ends this practice. My bill
repeals the $18 per month deductible that disabled veterans must
satisfy before they can be eligible for reimbursement for mileage
traveled to and from a VA hospital for treatment. The bill also raises
the reimbursement rate from the current level of 11 cents per mile to
the prevailing rate for Federal employees, as

[[Page 7771]]

determined by the General Services Administration.
I also want to thank Senator Salazar for his advice on this
legislation. I am proud to have him as a cosponsor. He has worked so
hard to improve the lives of rural veterans, and I look forward to
supporting his efforts in the coming months as well.
______

By Mrs. FEINSTEIN (for herself and Mrs. Boxer):
S. 996. A bill to amend title 49, United States Code, to expand
passenger facility fee eligibility for certain noise compatibility
projects; to the Committee on Commerce, Science, and Transportation.
Mrs. FEINSTEIN. Mr. President, I rise today to introduce legislation
to allow the Los Angeles World Airports to provide the Lennox and
Inglewood School Districts, which lie directly in the Los Angeles
International Airport's flight path, with noise reduction funds.
This bill would authorize the Los Angeles World Airports to allow the
use of passenger facility fees for noise reduction projects at these
schools.
In 1980, the Lennox School District and the City of Los Angeles
settled a lawsuit, allowing aircraft carrying up to 40 million people
per year to fly overhead the schools. The City also agreed to provide
approximately $2.5 million to the Lennox School District.
Currently, an airplane flies a few hundred feet above the Lennox and
Inglewood schools about every three minutes. The noise is deafening. It
rattles windows, disrupts lessons, and makes it very difficult for
these students to learn.
In February 2005, the Lennox and Inglewood School Districts settled a
lawsuit with the Los Angeles World Airports under which the Los Angeles
International Airport agreed to provide the School Districts with more
than $110 million in noise mitigation funds over 10 years. These funds
are essential for the improvement of conditions at these schools.
Unfortunately, the Federal Aviation Administration interpreted the
1980 agreement and Federal law in a way that prevents the payment of
the funds under the 2005 agreement.
Thus, Federal legislation is necessary to allow the use of passenger
facility fees for noise reduction projects at the Lennox and Inglewood
schools. I am introducing legislation to do just this.
This bill was drafted with the assistance of the Federal Aviation
Administration, and it has the support of the Lennox and Inglewood
School Districts, the Los Angeles World Airports, and the Los Angeles
Mayor, Antonio Villaraigosa. My colleague in the House of
Representatives, Congresswoman Jane Harman, will introduce this same
bill today.
I urge my colleagues to join me in supporting this non-controversial
legislation that will allow for the use of passenger facility fees for
noise reduction projects in the Lennox and Inglewood School Districts.
I ask unanimous consent that the text of this legislation be printed in
the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:

S. 996

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. EXPANDED PASSENGER FACILITY FEE ELIGIBILITY FOR
NOISE COMPATIBILITY PROJECTS.

Section 40117(b) of title 49, United States Code, is
amended by adding at the end the following:
``(7) Noise mitigation for certain schools.--
``(A) In general.--In addition to the uses specified in
paragraphs (1), (4), and (6), the Secretary may authorize a
passenger facility fee imposed under paragraph (1) or (4) at
a large hub airport that is the subject of an amended
judgment and final order in condemnation filed on January 7,
1980, by the Superior Court of the State of California for
the county of Los Angeles, to be used for a project to carry
out noise mitigation for a building, or for the replacement
of a relocatable building with a permanent building, in the
noise impacted area surrounding the airport at which such
building is used primarily for educational purposes,
notwithstanding the air easement granted or any terms to the
contrary in such judgment and final order, if--
``(i) the Secretary determines that the building is
adversely affected by airport noise;
``(ii) the building is owned or chartered by the school
district that was the plaintiff in case number 986,442 or
986,446, which was resolved by such judgment and final order;
``(iii) the project is for a school identified in 1 of the
settlement agreements effective February 16, 2005, between
the airport and each of the school districts;
``(iv) in the case of a project to replace a relocatable
building with a permanent building, the eligible project
costs are limited to the actual structural construction costs
necessary to mitigate aircraft noise in instructional
classrooms to an interior noise level meeting current
standards of the Federal Aviation Administration; and
``(v) the project otherwise meets the requirements of this
section for authorization of a passenger facility fee.
``(B) Eligible project costs.--In subparagraph (A)(iv), the
term `eligible project costs' means the difference between
the cost of standard school construction and the cost of
construction necessary to mitigate classroom noise to the
standards of the Federal Aviation Administration.''.
______

By Mr. STEVENS (for himself and Ms. Landrieu):
S. 1000. A bill to enhance the Federal Telework Program; to the
Committee on Homeland Security and Governmental Affairs.
Mr. STEVENS. Mr. President, today I am joined by Senator Landrieu in
introducing the Telework Enhancement Act of 2007. This legislation will
build on the existing Federal telework program to ensure maximum
participation in the program among those in the Federal workforce. This
measure will improve the cost-efficiency of the Federal Government and
will also serve to reduce traffic congestion and thereby save fuel and
greenhouse gas emissions. It will also enhance efforts by the Federal
Government with respect to continuity of operations, COOP, provide
employee incentives to attract and retain highly skilled Federal
personnel, and provide a model for the private sector.
In 2000, the key legislation affecting telework in the Federal
Government was signed into law as part of that year's highway bill. The
enacted provision provided that ``each executive agency . . . establish
a policy under which eligible employees of the agency may participate
in telecommuting to the maximum extent possible without diminished
employee performance.'' The measure was intended to apply to 25 percent
of the Federal workforce, and to an additional 25 percent of the
workforce each year thereafter.
The objective of that measure, as outlined in the bill's conference
report, was to ``reduce traffic congestion'' and to allow Federal
employees to telework to the maximum extent possible. The Report also
made clear that each Federal agency was to establish telework criteria,
and remove any ``managerial, logistical, organizational, or other
barriers to full implementation and successful functioning of the
policy. . . and provide for adequate administrative, human resources,
technical, and logistical support for carrying out the policy.''
The lead agencies that have carried out this telework mandate are
Office of Personnel Management, OPM, and the General Services
Administration, GSA. Together these agencies formed a common Web site
www.telework.gov to facilitate the advancement of the program, which
has had a degree of success. As of 2004, of the 1.7 million Federal
employees in the 82 agencies, 752,337 had been deemed eligible for
telework, which was an increase from 521,542 in 2001. But despite a
very loose definition of ``telework,'' which only requires that an
employee work from home 1 day per week to be considered a
``teleworker,'' 140,694, or 19 percent of those eligible, were deemed
as having teleworked in 2004. Critics argue that this low percentage of
teleworkers comparable to the much larger pool of telework-eligible
employees can be attributed to insufficient employee education, program
coordination, and workforce culture issues.
While OPM and GSA should be commended for the strides they have made
in implementing the Federal telework program, there are several
enhancements to the program that can be made legislatively to
facilitate the original goal of maximizing telework among eligible
Federal employees.

[[Page 7772]]

The bill we introduce today would, among other things: invert the
telework eligibility presumption to make all Federal employees eligible
unless expressly determined otherwise; revise the definition of
``telework'' to be an arrangement where the employee regularly works at
an alternate site at least 2 business days per week in order to reduce
his/her commute, the current definition only requires 1 day; require
that each agency designate a full-time Telework Managing Officer, TMO,
within the agency's chief administrative office, or comparable agency
office, to oversee the respective agency's telework program; require
that the TMO coordinate the telework policy for the agency or office,
serve as the liaison between employees and managers, and keep employees
informed of their telework eligibility; require the TMO to work to
expand the agency's telework program, oversee the COOP program, and
develop a telework performance and accountability system; require the
TMO to submit a report to the head of the agency annually with an
analysis of measures in place to carry out the telework policy; and
require the Government Accountability Office, GAO, to evaluate each
agency's telework policy, and publish a report that rates each policy
and the level of employee participation.
The events of September 11, 2001, the anthrax attacks that occurred
shortly thereafter, and the recent severe weather experienced across
the country have focused our attention on the importance of energy
independence, as well as our need to be prepared in the event of a
disaster. This legislation would be a step toward achieving these
broader national strategic objectives, and I urge my colleagues to
support it.
I ask unanimous consent that the text of the bill be printed in the
Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:

S. 1000

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Telework Enhancement Act of
2007''.

SEC. 2. FEDERAL GOVERNMENT TELEWORK REQUIREMENT.

(a) In General.--
(1) Eligibility.--Within 1 year after the date of enactment
of this Act, the head of each Executive agency shall
establish a policy under which each employee of the agency,
except as provided in subsection (d), shall be eligible to
participate in telework.
(2) Participation policy.--The policy shall ensure that
eligible employees participate in telework to the maximum
extent possible without diminishing employee performance or
agency operations.
(b) Application to Judicial Branch Employees.--Within 1
year after the date of enactment of this Act, the Chief
Justice of the United States shall establish a policy for
employees of the judicial branch under which such employees,
except employees designated by the Chief Justice as employees
to whom the policy does not apply, shall participate in
telework to the maximum extent possible without diminishing
employee performance or judicial operations.
(c) Application to Legislative Branch Employees.--
(1) House of Representatives.--Within 1 year after the date
of enactment of this Act, the Speaker of the House of
Representatives, in consultation with the Minority Leader of
the House, shall establish a policy for employees of the
House of Representatives under which such employees, except
employees designated by the Speaker as employees to whom the
policy does not apply, shall participate in telework to the
maximum extent possible without diminishing employee
performance or House operations.
(2) Senate.--Within 1 year after the date of enactment of
this Act, the Majority Leader of the Senate, in consultation
with the Minority Leader of the Senate, shall establish a
policy for employees of the Senate under which such
employees, except employees designated by the Majority Leader
as employees to whom the policy does not apply, shall
participate in telework to the maximum extent possible
without diminishing employee performance or Senate
operations.
(3) Other Legislative Branch Employees.--Within 1 year
after the date of enactment of this Act, the Speaker of the
House of Representatives and the Majority Leader of the
Senate jointly shall establish a policy for employees of the
legislative branch who are not employees of either House
under which such employees, except employees designated by
the Speaker and the Majority Leader as employees to whom the
policy does not apply, shall participate in telework to the
maximum extent possible without diminishing employee
performance or legislative branch operations.
(d) Ineligible Employees.--
(1) Executive agencies.--Subsection (a)(1) does not apply
to executive agency employees--
(A) whose duties involve the daily handling of secure
materials, necessary contact with special equipment, or daily
physical presence;
(B) who are assigned to national security or intelligence
functions; or
(C) whose functions are otherwise inappropriate for
teleworking and which are designated by the head of the
agency as functions to which the policy does not apply.
(2) Judicial and legislative branch employees.--The Chief
Justice and the officers of the Senate and House of
Representatives described in subsection (c) may designate as
ineligible to participate in telework employees whose duties
are the same as, or similar to, the duties described in
paragraph (1).

SEC. 3. TRAINING AND MONITORING.

The head of each executive agency shall ensure that--
(1) telework training is incorporated in the agency's new
employee orientation procedures;
(2) periodic employee reviews are conducted for all
employees, including those described in section 1(a)(3), to
ascertain whether telework is appropriate for the employee's
job description and the extent to which it is being utilized
by the employee.

SEC. 4. TELEWORK MANAGING EMPLOYEE.

(a) In General.--The head of each executive agency, the
Chief Justice, the Speaker of the House of Representatives,
and the Majority Leader of the Senate shall appoint a full
time senior level employee of the agency, the judicial
branch, the House of Representatives, and the Senate,
respectively as the Telework Managing Officer. The Telework
Managing Office shall be established within the office of the
chief administrative officer or a comparable office with
similar functions.
(b) Duties.--The Telework Managing Officer shall--
(1) serve as liaison between employees engaged in
teleworking and their employing entity;
(2) ensure that the organization's telework policy is
communicated effectively to employees;
(3) encourage all eligible employees to engage in telework
to the maximum practicable extent consistent with meeting
performance requirements and maintaining operations;
(4) assist the head of the agency in the development and
maintenance of agencywide telework policies;
(5) educate administrative units on telework policies,
programs, and training courses;
(6) provide written notification to all employees of
specific telework programs and employee eligibility;
(7) focus on expanding and monitoring agency telework
programs;
(8) recommend and oversee telework-specific pilot programs
for employees and managers, including tracking performance
and monitoring activities;
(9) promote teleconferencing devices;
(10) develop monthly productivity awards for teleworkers;
(11) develop and administer a telework performance
reporting system; and
(12) assist the head of the agency in designating employees
to telework to continue agency operations in the event of a
major disaster (as defined in section 102 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5122)).
(c) Report.--The Telework Managing Officer shall submit a
report to the head of the employing agency, the Chief
Justice, the Speaker of the House of Representatives, or the
Majority Leader of the Senate, as the case may be, and the
Comptroller General at least once every 12 months that
includes a statement of the applicable telework policy, a
description of measures in place to carry out the policy, and
an analysis of the participation by employees of the entity
in teleworking during the preceding 12-month period.

SEC. 5. ANNUAL TELEWORK AGENCY RATING.

(a) In General.--The Comptroller General shall establish a
system for evaluating--
(1) the telework policy of each executive agency, the
judicial branch, and the legislative branch; and
(2) on an annual basis the participation in teleworking by
their employees.
(b) Report.--The Comptroller General shall publish a report
each year rating--
(1) the telework policy of each entity to which this Act
applies;
(2) the degree of participation by employees of each such
entity in teleworking during the 12-month period covered by
the report; and
(3) for each executive agency--
(A) the number of employees in the agency;
(B) the number of those employees who are eligible to
telework;
(C) the number of employees who engage on a regular basis
in teleworking; and
(D) the number of employees who engage on an occasional or
sporadic basis in teleworking.

[[Page 7773]]

SEC. 7 DEFINITIONS.

In this Act:
(1) Employee.--The term ``employee'' has the meaning given
that term by section 8101(1) of title 5, United States Code,
but does not include--
(A) justices of the Supreme Court, judges of Courts of
Appeals, or judges of the District Courts;
(B) a Member of the United States House of Representatives;
or
(C) a United States Senator.
(2) Executive agency.--The term ``Executive agency'' has
the meaning given that term by section 105 of title 5, United
States Code.
(3) Telework.--The term ``telework'' means a work
arrangement in which an employee regularly performs
officially assigned duties at home or other worksites
geographically convenient to the residence of the employee
that--
(A) reduces or eliminates the employee's commute between
his or her residence and his or her place of employment; and
(B) occurs at least 2 business days per week on a recurring
basis.
Mr. KENNEDY. Mr. President, stroke is a devastating disease that
affects young and old, women and men, regardless of their race or
ethnic background. The physical, emotional, and financial toll of
stroke on individuals and their families is enormous.
Fortunately, we have achieved major advances in the prevention and
treatment of stroke in recent years that have reduced the high toll of
death and disability. The Nation's investment in research through the
National Institutes of Health has led to many of these advances, and
it's tragic that so many stroke patients do not yet have access to
these advances.
That's why Senator Cochran and I have introduced the bipartisan
Stroke Treatment and Ongoing Prevention Act in Congress, to help bring
what we've learned in the laboratory to the bedside of the patient more
quickly. Both Houses of Congress know the importance of this issue, and
identical legislation has been introduced in the House of
Representatives. This bill is intended to become a national commitment
to end the suffering from stroke. It will also be a promise that every
American can lead a better and healthier life.
______

By Mr. KENNEDY (for himself, Mr. Kerry, Mrs. Boxer, Mr. Harkin,
Mr. Lautenberg, Mr. Dodd, Mr. Lieberman, Mrs. Feinstein, Ms.
Mikulski, Mr. Brown, Mr. Durbin, Mr. Schumer, Ms. Cantwell, Mr.
Biden, Mr. Levin, Mr. Menendez, Mrs. Murray, Mrs. Clinton, Mr.
Feingold, Ms. Stabenow, and Mr. Whitehouse):
S.J. Res. 10. A joint resolution proposing an amendment to the
Constitution of the United States relative to equal rights for men and
women; to the Committee on the Judiciary.
Mr. KENNEDY. Mr. President, it's a privilege to join my colleagues in
reintroducing the Equal Rights Amendment to the Constitution. Our
strong commitment to equal rights for men and women should be clearly
reflected in the Nation's founding document.
The ERA is essential to guarantee that the freedoms protected by our
Constitution apply equally to men and women. From the beginning of our
history as a Nation, women have had to wage a constant, long and
difficult battle to win the same basic rights granted to men. That
battle goes on today, since discrimination still continues in many
ways.
Despite passage of the Equal Pay Act and the Civil Rights Act in the
1960s, discrimination against women continues to permeate the workforce
and many areas of the economy. Today, women earn about 77 cents for
each dollar earned by men, and the gap is even greater for women of
color. In 2004, African American women earned only 67 percent of the
earnings of white men, and Hispanic women earned only 56 percent.
Women with college and professional degrees have achieved advances in
a number of professional and managerial occupations in recent years.
Yet more than 60 percent of working women are still clustered in a
narrow range of traditionally female, traditionally low-paying
occupations, and female-headed households continue to dominate the
bottom rungs of the economic ladder.
A stronger effort is clearly needed to finally live up to our
commitment of full equality. The Equal Rights Amendment alone cannot
remedy all discrimination, but it will clearly strengthen the ongoing
efforts of women across the country to obtain equal treatment.
We know from the failed ratification experiences of the past that
amending the Constitution to include the ERA will not be easy to
achieve. But its extraordinary significance requires us to continue the
battle to finally see it approved by Congress and ratified by the
States. The women of America deserve no less.
I ask unanimous consent that the text of the resolution be printed in
the Record.
There being no objection, the joint resolution was ordered to be
printed in the Record, as follows:

S.J. Res. 10

Resolved by the Senate and House of Representatives of the
United States of America in Congress assembled (two-thirds of
each House concurring therein), That the following article is
proposed as an amendment to the Constitution of the United
States, which shall be valid to all intents and purposes as
part of the Constitution when ratified by the legislatures of
three-fourths of the several States:

``Article--

``Section 1. Equality of rights under the law shall not be
denied or abridged by the United States or by any State on
account of sex.
``Section 2. The Congress shall have the power to enforce,
by appropriate legislation, the provisions of this article.
``Section 3. This article shall take effect 2 years after
the date of ratification.''.

____________________

SUBMITTED RESOLUTIONS

______

SENATE RESOLUTION 125--DESIGNATING MAY 18, 2007, AS ``ENDANGERED
SPECIES DAY'', AND ENCOURAGING THE PEOPLE OF THE UNITED STATES TO
BECOME EDUCATED ABOUT, AND AWARE OF, THREATS TO SPECIES, SUCCESS
STORIES IN SPECIES RECOVERY, AND THE OPPORTUNITY TO PROMOTE SPECIES
CONSERVATION WORLDWIDE

Mrs. FEINSTEIN (for herself, Ms. Collins, Mr. Feingold, Mr. Levin,
Ms. Snowe, Mr. Kerry, Mr. Biden, Ms. Cantwell, Mr. Lieberman, Mr.
Wyden, Mrs. Clinton, Mr. Crapo, and Mr. Sanders) submitted the
following resolution; which was referred to the Committee on the
Judiciary:

S. Res. 125

Whereas in the United States and around the world, more
than 1,000 species are officially designated as at risk of
extinction and thousands more also face a heightened risk of
extinction;
Whereas the actual and potential benefits derived from many
species have not yet been fully discovered and would be
permanently lost if not for conservation efforts;
Whereas recovery efforts for species such as the whooping
crane, Kirtland's warbler, the peregrine falcon, the gray
wolf, the gray whale, the grizzly bear, and others have
resulted in great improvements in the viability of such
species;
Whereas saving a species requires a combination of sound
research, careful coordination, and intensive management of
conservation efforts, along with increased public awareness
and education;
Whereas two-thirds of endangered or threatened species
reside on private lands;
Whereas voluntary cooperative conservation programs have
proven to be critical for habitat restoration and species
recovery; and
Whereas education and increasing public awareness are the
first steps in effectively informing the public about
endangered species and species restoration efforts: Now,
therefore, be it
Resolved, That the Senate--
(1) designates May 18, 2007, as ``Endangered Species Day'';
and
(2) encourages--
(A) educational entities to spend at least 30 minutes on
Endangered Species Day teaching and informing students about
threats to, and the restoration of, endangered species around
the world, including the essential role of private landowners
and private stewardship to the protection and recovery of
species;
(B) organizations, businesses, private landowners, and
agencies with a shared interest in conserving endangered
species to collaborate on educational information for use in
schools; and
(C) the people of the United States to observe the day with
appropriate ceremonies and activities.

Mrs. FEINSTEIN. Mr. President, I rise today to submit a resolution to
establish the second annual ``Endangered

[[Page 7774]]

Species Day'' on May 18, 2007. I am submitting this resolution with
Senators Collins, Feingold, Levin, Snowe, Kerry, Biden, Cantwell,
Lieberman, Wyden, Clinton, Crapo, and Sanders whose co-sponsorship I
appreciate.
I want to commend my constituent Mr. David Robinson, who first
suggested the establishment of an ``Endangered Species Day.''
Individuals like Mr. Robinson do make a difference.
The designation of an ``Endangered Species Day'' provides a multitude
of opportunities for young people, students, and the general public to
learn more about endangered species both in our country and abroad.
Last year, thirty-six events were held across the country to
highlight endangered species success stories. The Governor of Maine,
the Rhode Island State legislature, and the cities and counties of
Santa Barbara, San Diego, and San Francisco also declared State and
local Endangered Species Days. Zoos and aquariums across the country,
such as the Roger Williams Zoo and the San Diego Zoo, also held
educational events.
Endangered Species Day 2006 provided an opportunity for schools,
libraries, museums, zoos, aquariums, botanical gardens, agencies,
businesses, community groups, and conservation organizations to educate
the public about the importance of protecting endangered species and to
highlight everyday actions that individuals and groups can take to help
protect our nation's wildlife, fish, and plants.
Based on the success of last year, I believe that ``Endangered
Species Day'' fosters increased communication and awareness about many
of the most endangered species by encouraging such activities as school
field trips to the zoo or attending a lecture at the local library.
In my home State of California, I am especially proud of the
conservation and management efforts that have helped significantly
restore populations of California condor, winter run chinook salmon,
the least Bell's vireo songbird, and the California gray whale.
Despite these success stories, we need to be aware that more can be
done. At this time, we have more than 1,800 species in the U.S. and
abroad, which are designated as ``at risk'' for extinction. One small
step is to increase awareness about the seriousness of the
circumstances facing many of these endangered species and educating the
public about these species.
I am submitting this resolution with the hope that ``Endangered
Species Day'' can spark the wonder and interest in our youth to
continue the conservation efforts we have begun, but still are far from
finishing.
I urge my colleagues to join me in supporting this resolution.

____________________

SENATE RESOLUTION 126--DESIGNATING APRIL 2007 AS ``FINANCIAL LITERACY
MONTH''

Mr. AKAKA (for himself, Mr. Dodd, Mrs. Clinton, Mr. Cochran, Mr.
Durbin, Mr. Kohl, Mr. Kennedy, Mr. Menendez, Mr. Schumer, Mr. Inouye,
Ms. Stabenow, Mr. Cardin, Mr. Levin, Mr. Crapo, Mr. DeMint, Mrs.
Feinstein, Mr. Baucus, Mr. Thomas, Mrs. Lincoln, Mr. Allard, and Mr.
Enzi) submitted the following resolution; which was considered and
agreed to:

S. Res. 126

Whereas the personal savings rate of people in the United
States declined from minus 0.5 percent in 2005 to minus 1.0
percent in 2006, making 2005 and 2006 the only years since
the Great Depression years of 1932 and 1933 when the savings
rate has been negative;
Whereas the 2006 Retirement Confidence Survey conducted by
the Employee Benefit Research Institute found that only 42
percent of workers or their spouses calculated how much they
need to save for retirement, down from 53 percent in 2000;
Whereas consumer debt exceeded $2,400,000,000,000 in 2006;
Whereas household debt reached a record $12,800,000,000,000
in 2006;
Whereas, during the second quarter of 2006, a record high
of 14.5 percent of disposable personal income went to paying
the interest on personal debt;
Whereas over 1,000,000 individuals in the United States
filed for bankruptcy in 2006;
Whereas nearly half of adults in the United States are not
aware that they can access their credit reports for free;
Whereas, in a 2006 survey, the Jump$tart Coalition for
Personal Financial Literacy found that high school seniors
scored an average of only 52.4 percent on an exam testing
knowledge of basic personal finance;
Whereas approximately 10,000,000 households in the United
States do not have accounts at mainstream financial
institutions such as banks or credit unions;
Whereas expanding access to the mainstream financial system
will provide individuals with less expensive and more secure
options for managing their finances and building wealth;
Whereas the 2004 Survey of the States compiled by the
National Council on Economic Education found that only 17
States require an economics course to be offered to high
school students;
Whereas quality personal financial education is essential
to ensure that individuals are prepared to manage money,
credit, and debt, and to become responsible workers, heads of
households, investors, entrepreneurs, business leaders, and
citizens;
Whereas increased financial literacy empowers individuals
to make wise financial decisions and reduces the confusion
caused by the increasingly complex economy of the United
States;
Whereas a greater understanding of, and familiarity with,
financial markets and institutions will lead to increased
economic activity and growth;
Whereas, in 2003, Congress found it important to coordinate
Federal financial literacy efforts and formulate a national
strategy; and
Whereas, in light of that finding, Congress established the
Financial Literacy and Education Commission and designated
the Office of Financial Education of the Department of the
Treasury to provide support for the Commission: Now,
therefore, be it
Resolved, That the Senate--
(1) designates April 2007 as ``Financial Literacy Month''
to raise public awareness about--
(A) the importance of financial education in the United
States; and
(B) the serious consequences that may result from a lack of
understanding about personal finances; and
(2) calls on the Federal Government, States, localities,
schools, nonprofit organizations, businesses, and the people
of the United States to observe the month with appropriate
programs and activities.

____________________

SENATE RESOLUTION 127--DESIGNATING APRIL 8, 2007 AS ``NATIONAL
CUSHING'S SYNDROME AWARENESS DAY''

Mr. INHOFE (for himself and Mr. Dodd) submitted the following
resolution; which was considered and agreed to:

S. Res. 127

Whereas Cushing's Syndrome annually affects an estimated 10
to 15 people per million, most of whom are currently between
the ages of 20 and 50;
Whereas Cushing's Syndrome is an endocrine or hormonal
disorder caused by prolonged exposure of the body's tissue to
high levels of the hormone cortisol;
Whereas exposure to cortisol can occur by overproduction in
the body or by taking glucocrticoid hormones, which are
routinely prescribed for asthma, rheumatoid arthritis, lupus,
or as an immunosuppressant following transplantation;
Whereas the syndrome may also result from pituitary
adenomas, ectopic ACTH syndrome, adrenal tumors, and Familial
Cushing's Syndrome;
Whereas Cushing's Syndrome can cause abnormal weight gain,
skin changes, and fatigue and ultimately lead to diabetes,
high blood pressure, depression, osteoporosis, and death;
Whereas Cushing's Syndrome is diagnosed through a series of
tests, often requiring x-ray examinations of adrenal or
pituitary glands to locate tumors;
Whereas many people who suffer from Cushing's Syndrome are
misdiagnosed or go undiagnosed for years because many of the
symptoms are mirrored in milder diseases, thereby delaying
important treatment options;
Whereas treatments for Cushing's Syndrome include surgery,
radiation, chemotherapy, cortisol-inhibiting drugs, and
reducing the dosage of glucocorticoid hormones;
Whereas Cushing's Syndrome was discovered by Dr. Harvey
Williams Cushing, who was born on April 8th, 1869;
Whereas the Dr. Harvey Cushing stamp was part of the United
States Postal Service's ``Great American'' series, initiated
in 1980 to recognize individuals for making significant
contributions to the heritage and culture of the United
States;
Whereas President Ronald Reagan spoke on April 8, 1987, in
the Rose Garden at a White House ceremony to unveil the
commemorative stamp honoring Dr. Harvey Cushing;
Whereas following the ceremony, President Reagan hosted a
reception in the State Dining Room for Mrs. John Hay Whitney,
Dr. Cushing's daughter, and representatives of

[[Page 7775]]

the American Association of Neurological Surgeons; and
Whereas the Senate is an institution that can raise
awareness in the general public and the medical community of
Cushing's Syndrome; Now, therefore, be it
Resolved, That the Senate--
(1) designates April 8, 2007, as ``National Cushing's
Syndrome Awareness Day'';
(2) recognizes that all Americans should become more
informed and aware of Cushing's Syndrome;
(3) calls upon the people of the United States to observe
the date with appropriate ceremonies and activities; and
(4) directs the Secretary of the Senate to transmit a copy
of this resolution to the Cushing's Understanding, Support &
Help Organization.

____________________

SENATE RESOLUTION 128--TO AUTHORIZE TESTIMONY, DOCUMENT PRODUCTION, AND
LEGAL REPRESENTATION IN UNITED STATES V. PHILIP G. BALCOMBE, SANSI G.
COONAN, JOHN S. DEAR, JAN LUSTIG, MICHELLA A. MARUSA, MARTIN J. RYAN,
ELEANORE M. VOUSELAS, AND BRUNO KELLER

Mr. REID (for himself and Mr. McConnell) submitted the following
resolution; which was considered and agreed to:

S. Res. 128

Whereas, in the case of United States v. Philip G.
Balcombe, Sansi G. Coonan, John S. Dear, Jan Lustig, Michella
A. Marusa, Martin J. Ryan, Eleanore M. Vouselas, and Bruno
Keller, Cr. No. 07-207, pending in federal district court in
Albuquerque, New Mexico, testimony and documents have been
requested from Maggie Murray, an employee in the office of
Senator Pete Domenici;
Whereas, pursuant to sections 703(a) and 704(a)(2) of the
Ethics in Government Act of 1978, 2 U.S.C. Sec. Sec. 288b(a)
and 288c(a)(2), the Senate may direct its counsel to
represent employees of the Senate with respect to any
subpoena, order, or request for testimony relating to their
official responsibilities;
Whereas, by the privileges of the Senate of the United
States and Rule XI of the Standing Rules of the Senate, no
evidence under the control or in the possession of the Senate
may, by the judicial or administrative process, be taken from
such control or possession but by permission of the Senate;
Whereas, when it appears that evidence under the control or
in the possession of the Senate may promote the
administration of justice, the Senate will take such action
as will promote the ends of justice consistent with the
privileges of the Senate: Now, therefore, be it
Resolved, That Maggie Murray and any other employees of
Senator Domenici's office from whom testimony or the
production of documents may be required are authorized to
testify and produce documents in the case of United States v.
Philip G. Balcombe, Sansi G. Coonan, John S. Dear, Jan
Lustig, Michella A. Marusa, Martin J. Ryan, Eleanore M.
Vouselas, and Bruno Keller, except concerning matters for
which a privilege should be asserted.
Sec. 2. The Senate Legal Counsel is authorized to represent
Maggie Murray and other employees of Senator Domenici's staff
in the actions referenced in section one of this resolution.

____________________

SENATE RESOLUTION 129--TO AUTHORIZE TESTIMONY, DOCUMENT PRODUCTION, AND
LEGAL REPRESENTATION IN STATE OF ALASKA V. ROBERT S. MULFORD AND DON G.
MULLER

Mr. REID (for himself and Mr. McConnell) submitted the following
resolution; which was considered and agreed to:

S. Res. 129

Whereas, in the cases of State of Alaska v. Robert S.
Mulford (Cr. No. 4FA-07-547) and Don G. Muller (Cr. No. 4FA-
07-548), pending in state court in Fairbanks, Alaska,
testimony and documents have been requested from Diane
Hutchison, an employee in the office of Senator Ted Stevens;
Whereas, pursuant to sections 703(a) and 704(a)(2) of the
Ethics in Government Act of 1978, 2 U.S.C. Sec. Sec. 288b(a)
and 288c(a)(2), the Senate may direct its counsel to
represent employees of the Senate with respect to any
subpoena, order, or request for testimony relating to their
official responsibilities;
Whereas, by the privileges of the Senate of the United
States and Rule XI of the Standing Rules of the Senate, no
evidence under the control or in the possession of the Senate
may, by the judicial or administrative process, be taken from
such control or possession but by permission of the Senate;
Whereas, when it appears that evidence under the control or
in the possession of the Senate may promote the
administration of justice, the Senate will take such action
as will promote the ends of justice consistent with the
privileges of the Senate: Now, therefore, be it
Resolved that Diane Hutchison and any other employees of
Senator Stevens' office from whom testimony or the production
of documents may be required are authorized to testify and
produce documents in the cases of State of Alaska v. Robert
S. Mulford and Don G. Muller, except concerning matters for
which a privilege should be asserted.
Sec. 2. The Senate Legal Counsel is authorized to represent
Diane Hutchison and other employees of Senator Stevens' staff
in the actions referenced in section one of this resolution.

____________________

AMENDMENTS SUBMITTED AND PROPOSED

SA 648. Mr. COBURN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, making emergency
supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes.
SA 649. Mr. COBURN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra.
SA 650. Mr. McCAIN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 651. Mr. McCAIN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 652. Mr. WARNER (for himself and Mr. Webb) submitted an
amendment intended to be proposed by him to the bill H.R.
1591, supra; which was ordered to lie on the table.
SA 653. Mr. GREGG submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 654. Mr. INHOFE submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 655. Mrs. HUTCHISON submitted an amendment intended to
be proposed by her to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 656. Mr. COBURN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra.
SA 657. Mr. COBURN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra.
SA 658. Mr. GRASSLEY (for himself and Mr. Baucus) submitted
an amendment intended to be proposed by him to the bill H.R.
1591, supra; which was ordered to lie on the table.
SA 659. Mr. DORGAN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 660. Mrs. BOXER submitted an amendment intended to be
proposed by her to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 661. Mr. KOHL (for himself, Ms. Snowe, Mr. Feingold, and
Ms. Landrieu) submitted an amendment intended to be proposed
by him to the bill H.R. 1591, supra; which was ordered to lie
on the table.
SA 662. Mr. DOMENICI submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 663. Ms. STABENOW (for herself and Mr. Levin) submitted
an amendment intended to be proposed by her to the bill H.R.
1591, supra; which was ordered to lie on the table.
SA 664. Mr. OBAMA (for himself, Mrs. McCaskill, Ms.
Mikulski, Mr. Harkin, Mr. Kerry, Ms. Cantwell, Mr. Biden, Mr.
Bingaman, Mr. Casey, Mr. Durbin, Mr. Baucus, Ms. Landrieu,
and Mr. Leahy) submitted an amendment intended to be proposed
by him to the bill H.R. 1591, supra.
SA 665. Mr. REED submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 666. Mrs. CLINTON submitted an amendment intended to be
proposed by her to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 667. Mrs. CLINTON (for herself and Mr. Feingold)
submitted an amendment intended to be proposed by her to the
bill H.R. 1591, supra; which was ordered to lie on the table.
SA 668. Mrs. CLINTON submitted an amendment intended to be
proposed by her to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 669. Mr. LIEBERMAN (for himself, Mrs. Boxer, Mr.
Kennedy, Mrs. Clinton, Ms. Cantwell, Mr. Akaka, Mr. Biden,
Ms. Landrieu, and Mr. Menendez) submitted an amendment
intended to be proposed by him to the bill H.R. 1591, supra;
which was ordered to lie on the table.
SA 670. Mr. LUGAR submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 671. Mr. DOMENICI submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 672. Mr. CRAIG submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.

[[Page 7776]]

SA 673. Mr. HAGEL (for himself, Mr. Harkin, Mr. Grassley,
and Mr. Durbin) submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 674. Mr. COCHRAN (for himself and Mr. Lott) submitted an
amendment intended to be proposed by him to the bill H.R.
1591, supra; which was ordered to lie on the table.
SA 675. Mr. THOMAS submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 676. Mr. FEINGOLD (for himself, Mrs. Boxer, and Mr.
Leahy) submitted an amendment intended to be proposed by him
to the bill H.R. 1591, supra; which was ordered to lie on the
table.
SA 677. Mr. LEAHY submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 678. Mr. LEAHY submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 679. Ms. COLLINS (for herself and Mr. Lieberman)
submitted an amendment intended to be proposed by her to the
bill H.R. 1591, supra; which was ordered to lie on the table.
SA 680. Mr. KENNEDY (for himself, Mr. Enzi, Mr. Baucus, and
Mr. Grassley) submitted an amendment intended to be proposed
by him to the bill H.R. 1591, supra.
SA 681. Mr. LEAHY submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 682. Mr. LEAHY (for himself, Mr. Bond, Ms. Landrieu, Mr.
Dodd, Mr. Bingaman, Ms. Mikulski, Ms. Cantwell, Mr. Baucus,
Mr. Brown, Mr. Kerry, Mr. Durbin, Mr. Rockefeller, Mr.
Domenici, and Mr. Biden) submitted an amendment intended to
be proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 683. Mr. DORGAN (for himself, Mr. Conrad, Mr. Johnson,
and Mr. Thune) submitted an amendment intended to be proposed
by him to the bill H.R. 1591, supra; which was ordered to lie
on the table.
SA 684. Mr. OBAMA (for himself, Mrs. McCaskill, Ms.
Mikulski, Mr. Harkin, Mr. Kerry, Ms. Cantwell, Mr. Biden, and
Mr. Bingaman) submitted an amendment intended to be proposed
by him to the bill H.R. 1591, supra; which was ordered to lie
on the table.
SA 685. Mr. KENNEDY submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 686. Mr. KENNEDY submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 687. Mr. KERRY submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 688. Mr. LEVIN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 689. Mr. LUGAR submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 690. Mr. COCHRAN (for Mr. Lugar) proposed an amendment
to the bill H.R. 1591, supra.
SA 691. Mr. WEBB (for himself and Mr. Byrd) submitted an
amendment intended to be proposed by him to the bill H.R.
1591, supra; which was ordered to lie on the table.
SA 692. Mr. WEBB proposed an amendment to the bill H.R.
1591, supra.
SA 693. Mr. DODD submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 694. Mr. WARNER submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 695. Mr. WARNER submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 696. Mr. WARNER submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 697. Mr. WARNER (for himself, Mr. Byrd, Ms. Collins, Mr.
Nelson of Nebraska, Ms. Snowe, Mr. Salazar, Ms. Murkowski,
and Mr. Smith) submitted an amendment intended to be proposed
by him to the bill H.R. 1591, supra; which was ordered to lie
on the table.
SA 698. Mr. WARNER submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 699. Mr. GRASSLEY submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 700. Mr. GRASSLEY submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 701. Mr. GRASSLEY submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 702. Mr. DeMINT submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 703. Mr. DeMINT submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 704. Mr. DeMINT submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 705. Mr. HAGEL (for himself, Mr. Webb, and Mr. Salazar)
submitted an amendment intended to be proposed by him to the
bill H.R. 1591, supra; which was ordered to lie on the table.
SA 706. Mr. BURR submitted an amendment intended to be
proposed to amendment SA 641 proposed by Mr. Byrd to the bill
H.R. 1591, supra; which was ordered to lie on the table.
SA 707. Mr. HAGEL (for himself, Mr. Webb, and Mr. Salazar)
submitted an amendment intended to be proposed by him to the
bill H.R. 1591, supra; which was ordered to lie on the table.
SA 708. Mr. KYL submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 709. Mr. WYDEN (for himself, Mr. Reid, Mr. Baucus, Mr.
Bingaman, Mr. Smith, Ms. Cantwell, Mr. Domenici, Mrs. Boxer,
Mr. Craig, Mrs. Murray, Mr. Crapo, Mr. Tester, Mr. Stevens,
Mr. Bennett, Ms. Murkowski, Mr. Salazar, and Mrs. Feinstein)
proposed an amendment to the bill H.R. 1591, supra.
SA 710. Mr. KYL submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 711. Mr. GREGG submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 712. Mr. DOMENICI submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 713. Mr. COLEMAN (for himself and Ms. Klobuchar)
submitted an amendment intended to be proposed by him to the
bill H.R. 1591, supra; which was ordered to lie on the table.
SA 714. Mr. VOINOVICH submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 715. Mr. COBURN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 716. Mr. BURR proposed an amendment to amendment SA 709
proposed by Mr. WYDEN (for himself, Mr. Reid, Mr. Baucus, Mr.
Bingaman, Mr. Smith, Ms. Cantwell, Mr. Domenici, Mrs. Boxer,
Mr. Craig, Mrs. Murray, Mr. Crapo, Mr. Tester, Mr. Stevens,
Mr. Bennett, Ms. Murkowski, Mr. Salazar, and Mrs. Feinstein)
to the bill H.R. 1591, supra.
SA 717. Mr. COBURN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra.
SA 718. Mr. COBURN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra.
SA 719. Mr. ALEXANDER submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 720. Mr. ALEXANDER submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 721. Mr. ALEXANDER submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 722. Mr. DOMENICI (for himself and Mrs. Hutchison)
submitted an amendment intended to be proposed by him to the
bill H.R. 1591, supra; which was ordered to lie on the table.
SA 723. Mr. DOMENICI submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 724. Mrs. BOXER submitted an amendment intended to be
proposed by her to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 725. Mrs. BOXER submitted an amendment intended to be
proposed by her to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 726. Mr. KERRY submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 727. Mr. STEVENS submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 728. Mr. BOND submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table .
SA 729. Mr. VITTER submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 730. Mr. VITTER submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.

[[Page 7777]]

SA 731. Mr. VITTER submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 732. Ms. LANDRIEU submitted an amendment intended to be
proposed by her to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 733. Ms. LANDRIEU submitted an amendment intended to be
proposed by her to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 734. Mr. SANDERS submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 735. Mr. SANDERS submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 736. Mr. SANDERS submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 737. Mr. SANDERS (for himself, Mr. Reed, Mr. Bingaman,
Mr. Menendez, Mr. Kerry, Mr. Harkin, Mr. Wyden, Mrs. Clinton,
and Mr. Sununu) submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 738. Mr. BIDEN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 739. Mr. BIDEN (for himself, Mr. Kennedy, Mr. Kerry, Mr.
Durbin, and Mr. Pryor) submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 740. Mr. CASEY submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 741. Mr. KENNEDY submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 742. Mr. BAUCUS submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 743. Mr. LAUTENBERG submitted an amendment intended to
be proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 744. Ms. STABENOW submitted an amendment intended to be
proposed by her to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 745. Mr. PRYOR submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 746. Mr. TESTER submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 747. Mr. PRYOR submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 748. Mr. CHAMBLISS submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 749. Mr. ENSIGN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 750. Mr. ENSIGN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 751. Mr. ENSIGN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 752. Mr. ENSIGN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 753. Mr. ENSIGN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 754. Mr. SHELBY (for himself and Ms. Mikulski) submitted
an amendment intended to be proposed by him to the bill H.R.
1591, supra; which was ordered to lie on the table.
SA 755. Mr. LEAHY (for himself and Mr. Specter) submitted
an amendment intended to be proposed by him to the bill H.R.
1591, supra; which was ordered to lie on the table.
SA 756. Ms. LANDRIEU submitted an amendment intended to be
proposed by her to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 757. Mr. BYRD (for himself and Mr. Inouye) submitted an
amendment intended to be proposed by him to the bill H.R.
1591, supra; which was ordered to lie on the table.
SA 758. Mr. INOUYE submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 759. Mrs. CLINTON (for herself and Mr. Schumer)
submitted an amendment intended to be proposed by her to the
bill H.R. 1591, supra; which was ordered to lie on the table.
SA 760. Mr. ENSIGN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 761. Mr. ENSIGN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 762. Mr. VOINOVICH (for himself, Mr. Inhofe, Mr. Warner,
Mrs. Hutchison, Mr. Craig, Mr. Coburn, and Mr. Enzi)
submitted an amendment intended to be proposed by him to the
bill H.R. 1591, supra; which was ordered to lie on the table.
SA 763. Mr. BROWNBACK (for himself and Mr. Roberts)
submitted an amendment intended to be proposed by him to the
bill H.R. 1591, supra; which was ordered to lie on the table.
SA 764. Mr. BINGAMAN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 765. Mr. SMITH (for himself and Mr. Coleman) submitted
an amendment intended to be proposed to amendment SA 680
submitted by Mr. Kennedy (for himself, Mr. Emzi, Mr. Baucus,
and Mr. Grassley) to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 766. Mr. BIDEN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 767. Mr. KENNEDY (for himself, Mr. Lieberman, Mr. Leahy,
Mr. Smith, and Mr. Levin) submitted an amendment intended to
be proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 768. Mrs. CLINTON (for herself and Mr. Schumer)
submitted an amendment intended to be proposed by her to the
bill H.R. 1591, supra; which was ordered to lie on the table.
SA 769. Ms. SNOWE submitted an amendment intended to be
proposed by her to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 770. Ms. SNOWE (for herself and Mr. Kohl) submitted an
amendment intended to be proposed by her to the bill H.R.
1591, supra; which was ordered to lie on the table.
SA 771. Ms. SNOWE submitted an amendment intended to be
proposed by her to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 772. Ms. SNOWE submitted an amendment intended to be
proposed by her to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 773. Mr. LEAHY submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 774. Mr. BAUCUS submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 775. Mr. BAUCUS submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 776. Ms. LANDRIEU (for herself and Mr. Cochran)
submitted an amendment intended to be proposed by her to the
bill H.R. 1591, supra; which was ordered to lie on the table.
SA 777. Mr. THUNE submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 778. Ms. COLLINS submitted an amendment intended to be
proposed by her to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 779. Ms. SNOWE submitted an amendment intended to be
proposed by her to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 780. Mr. GRASSLEY (for himself and Mr. Baucus) submitted
an amendment intended to be proposed by him to the bill H.R.
1591, supra; which was ordered to lie on the table.
SA 781. Mrs. LINCOLN (for herself, Mr. Smith, and Ms.
Cantwell) submitted an amendment intended to be proposed by
her to the bill H.R. 1591, supra; which was ordered to lie on
the table.
SA 782. Mrs. LINCOLN submitted an amendment intended to be
proposed by her to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 783. Mr. DORGAN submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 784. Mr. DURBIN (for himself, Mr. Biden, Mr. Menendez,
Mr. Levin, and Mr. Cardin) submitted an amendment intended to
be proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 785. Mr. DURBIN (for himself, Mrs. Boxer, and Mr. Brown)
submitted an amendment intended to be proposed by him to the
bill H.R. 1591, supra; which was ordered to lie on the table.
SA 786. Mr. BINGAMAN (for himself and Mrs. Hutchison)
submitted an amendment intended to be proposed by him to the
bill H.R. 1591, supra; which was ordered to lie on the table.
SA 787. Mr. LEVIN (for himself, Ms. Stabenow, and Mr.
Durbin) submitted an amendment intended to be proposed by him
to the bill H.R. 1591, supra; which was ordered to lie on the
table.
SA 788. Mr. GREGG submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 789. Mr. GREGG submitted an amendment intended to be
proposed by him to the

[[Page 7778]]

bill H.R. 1591, supra; which was ordered to lie on the table.
SA 790. Mr. GREGG submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 791. Mr. BAYH submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table .
SA 792. Mr. BAYH submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table .
SA 793. Ms. KLOBUCHAR submitted an amendment intended to be
proposed by her to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 794. Mr. SALAZAR submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 795. Mr. THUNE submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 796. Mr. REID submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table .
SA 797. Mr. GRASSLEY submitted an amendment intended to be
proposed by him to the bill H.R. 1591, supra; which was
ordered to lie on the table.
SA 798. Mr. GRASSLEY submitted an amendment intended to be
proposed to amendment SA 680 submitted by Mr. Kennedy (for
himself, Mr. Enzi, Mr. Baucus, and Mr. Grassley) to the bill
H.R. 1591, supra.
SA 799. Mr. LUGAR (for himself, Mr. Bond, and Mr. Coleman)
submitted an amendment intended to be proposed by him to the
bill H.R. 1591, supra; which was ordered to lie on the table.
SA 800. Mrs. LINCOLN (for herself, Mr. Smith, and Ms.
Cantwell) submitted an amendment intended to be proposed to
amendment SA 680 submitted by Mr. Kennedy (for himself, Mr.
Enzi, Mr. Baucus, and Mr. Grassley) to the bill H.R. 1591,
supra; which was ordered to lie on the table.
SA 801. Mrs. LINCOLN (for herself, Mr. Smith, and Ms.
Cantwell) submitted an amendment intended to be proposed to
amendment SA 658 submitted by Mr. Grassley (for himself and
Mr. Baucus) and intended to be proposed to the bill H.R.
1591, supra; which was ordered to lie on the table.
SA 802. Mrs. LINCOLN submitted an amendment intended to be
proposed to amendment SA 658 submitted by Mr. Grassley (for
himself and Mr. Baucus) and intended to be proposed to the
bill H.R. 1591, supra; which was ordered to lie on the table.
SA 803. Mrs. LINCOLN submitted an amendment intended to be
proposed to amendment SA 680 submitted by Mr. Kennedy (for
himself, Mr. Enzi, Mr. Baucus, and Mr. Grassley) to the bill
H.R. 1591, supra; which was ordered to lie on the table.
SA 804. Mrs. LINCOLN submitted an amendment intended to be
proposed to amendment SA 780 submitted by Mr. Grassley (for
himself and Mr. Baucus) and intended to be proposed to the
bill H.R. 1591, supra; which was ordered to lie on the table.
SA 805. Mrs. LINCOLN submitted an amendment intended to be
proposed to amendment SA 780 submitted by Mr. Grassley (for
himself and Mr. Baucus) and intended to be proposed to the
bill H.R. 1591, supra; which was ordered to lie on the table.
SA 806. Mr. THOMAS submitted an amendment intended to be
proposed to amendment SA 675 submitted by Mr. Thomas and
intended to be proposed to the bill H.R. 1591, supra; which
was ordered to lie on the table.

____________________

TEXT OF AMENDMENTS

SA 649. Mr. COBURN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
as follows:

At the appropriate place, add the following:
Notwithstanding any other provision of this Act, Sec. 3608(b)
of this Act shall not take effect.
______

SA 650. Mr. McCAIN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

Beginning on page 144, strike line 23 through line 4 on
page 145.
______

SA 651. Mr. McCAIN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

Beginning on page 139, strike line 3 through line 17.
______

SA 652. Mr. WARNER (for himself and Mr. Webb) submitted an amendment
intended to be proposed by him to the bill H.R. 1591, making emergency
supplemental appropriations for the fiscal year ending September 30,
2007, and for other purposes; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. ___. WAIVER FOR CERTAIN STATES, LOCAL EDUCATIONAL
AGENCIES, AND SCHOOLS.

A State, local educational agency, or school shall be held
harmless and not subject to the penalties provision under
section 1111(g) of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6311(g)), the requirements of school or
local educational agency improvement, corrective action,
restructuring, or other sanctions or penalties under section
1116 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6313), or any other sanctions or penalties
relating to academic assessments under the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) for
the 2006-2007 school year if the following criteria are met:
(1) The State (in the case of a local educational agency or
school, the State within which such local educational agency
or school exists) had 1 or more approved academic assessment
plans for the 2005-2006 school year.
(2) The State (in the case of a local educational agency or
school, the State within which such local educational agency
or school exists) had 1 or more of such plans subsequently
held invalid by the Department of Education for the 2006-2007
school year.
(3) The Governor of the State (in the case of a local
educational agency or school, the State within which such
local educational agency or school exists) certifies, in
writing, to the Secretary of Education that--
(A) the State cannot effectively train its educators on a
new or alternative assessment or assessments in place of the
assessment or assessments for which the plan or plans were
held invalid by the Department of Education, prior to the
date the assessment or assessments are to be administered;
and
(B) the administration of any new or alternative assessment
or assessments, in place of the assessment or assessments for
which the plan or plans were held invalid by the Department
of Education, in the 2006-2007 school year is not in the best
interest of the public school system and the children such
system serves.
(4) The Governor of the State (in the case of a local
educational agency or school, the State within which such
local educational agency or school exists) certifies, in
writing, to the Secretary of Education that the local
educational agency or school failed to make adequate yearly
progress (as described in section 1111(b)(2) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6311(b)(2))) based on academic assessments administered in
the 2006-2007 school year or the State would be subject to
the penalties provision under section 1111(g) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6311(g)) or any other sanctions or penalties relating to
academic assessments under the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6301 et seq.) for the 2006-
2007 school year solely because the State, local educational
agency, or school meets each of the criteria described in
paragraphs (1) through (3).
______

SA 653. Mr. GREGG submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 50, strike line 7 and all that follows through page
52, line 5.
On page 52, line 8 strike ``1711'' and insert in lieu
thereof ``1710''.
On page 56, line 6 strike ``1712'' and insert in lieu
thereof ``1711''.
______

SA 654. Mr. INHOFE submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

[[Page 7779]]

On page 22, strike line 17 and all that follows through
``(B) the Secretary'' on line 21 and insert the following:
(A) the commander of such facility or quarters, as
applicable, shall--
(i) in the case of a facility or quarters recommended for
closure or realignment under the 2005 round of defense base
closure and realignment, comply with the requirements
applicable to such closure or realignment pursuant to the
Defense Base Closure and Realignment Act of 1990 (part A of
title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) and
submit to the Secretary a report comparing the costs and
feasibility of--

(I) accelerating the schedule for closing or realigning the
facility or quarters; and
(II) transferring the operations and personnel from such
facility or quarters to an alternate temporary and adequate
facility or quarters until such closure or realignment is
completed; or

(ii) in the case of a facility or quarters not recommended
for closure or realignment under the 2005 round of defense
base closure and realignment, submit to the Secretary a
detailed plan to correct the deficiency; and
(B) the Secretary
______

SA 655. Mrs. HUTCHISON submitted an amendment intended to be proposed
by her to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

On page 28, between lines 18 and 19, insert the following:
Sec. 13__. (a)(1) Notwithstanding any other provision of
law, the Secretary of Veterans Affairs (referred to in this
section as the ``Secretary'') may convey to the State of
Texas, without consideration, all right, title, and interest
of the United States in and to the parcel of real property
comprising the location of the Marlin, Texas, Department of
Veterans Affairs Medical Center.
(2) The property conveyed under paragraph (1) shall be used
by the State of Texas for the purposes of a prison.
(b) In carrying out the conveyance under subsection (a),
the Secretary--
(1) shall not be required to comply with, and shall not be
held liable under, any Federal law (including a regulation)
relating to the environment or historic preservation; but
(2) may, at the discretion of the Secretary, conduct
environmental cleanup on the parcel to be conveyed, at a cost
not to exceed $500,000, using amounts made available for
environmental cleanup of sites under the jurisdiction of the
Secretary.
______

SA 656. Mr. COBURN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
as follows:

SA 657. Mr. COBURN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

In title IV, strike sections 411 and all that follows
through the section heading for section 471 and insert the
following:

SEC. 411. CROP DISASTER ASSISTANCE.

(a) In General.--Subject to the availability of
appropriated funds under section 421, the Secretary shall
make emergency financial assistance authorized under this
section available to producers on a farm that have incurred
qualifying losses described in subsection (c).
(b) Administration.--
(1) In general.--Except as provided in paragraph (2), the
Secretary shall make assistance available under this section
in the same manner as provided under section 815 of the
Agriculture, Rural Development, Food and Drug Administration
and Related Agencies Appropriations Act, 2001 (Public Law
106-387; 114 Stat. 1549A-55), including using the same loss
thresholds for quantity and economic losses as were used in
administering that section, except that the payment rate
shall be 55 percent of the established price, instead of 65
percent.
(2) Noninsured producers.--For producers on a farm that
were eligible to acquire crop insurance for the applicable
production loss and failed to do so or failed to submit an
application for the noninsured assistance program for the
loss, the Secretary shall make assistance in accordance with
paragraph (1), except that the payment rate shall be 20
percent of the established price, instead of 50 percent.
(c) Qualifying Losses.--Assistance under this section shall
be made available to producers on farms, other than producers
of sugar beets, that incurred qualifying quantity or quality
losses for the applicable crop due to damaging weather or any
related condition (including losses due to crop diseases,
insects, and delayed harvest), as determined by the
Secretary.
(d) Quality Losses.--
(1) In general.--In addition to any payment received under
subsection (b), subject to the availability of appropriated
funds under section 421, the Secretary shall make payments to
producers on a farm described in subsection (a) that incurred
a quality loss for the applicable crop of a commodity in an
amount equal to the product obtained by multiplying--
(A) the payment quantity determined under paragraph (2);
(B)(i) in the case of an insurable commodity, the coverage
level elected by the insured under the policy or plan of
insurance under the Federal Crop Insurance Act (7 U.S.C. 1501
et seq.); or
(ii) in the case of a noninsurable commodity, the
applicable coverage level for the payment quantity determined
under paragraph (2); by
(C) 55 percent of the payment rate determined under
paragraph (3).
(2) Payment quantity.--For the purpose of paragraph (1)(A),
the payment quantity for quality losses for a crop of a
commodity on a farm shall equal the lesser of--
(A) the actual production of the crop affected by a quality
loss of the commodity on the farm; or
(B)(i) in the case of an insurable commodity, the actual
production history for the commodity by the producers on the
farm under the Federal Crop Insurance Act (7 U.S.C. 1501 et
seq.); or
(ii) in the case of a noninsurable commodity, the
established yield for the crop for the producers on the farm
under section 196 of the Federal Agriculture Improvement and
Reform Act of 1996 (7 U.S.C. 7333).
(3) Payment rate.--
(A) In general.--For the purpose of paragraph (1)(B), the
payment rate for quality losses for a crop of a commodity on
a farm shall be equal to the difference between (as
determined by the applicable State committee of the Farm
Service Agency)--
(i) the per unit market value that the units of the crop
affected by the quality loss would have had if the crop had
not suffered a quality loss; and
(ii) the per unit market value of the units of the crop
affected by the quality loss.
(B) Factors.--In determining the payment rate for quality
losses for a crop of a commodity on a farm, the applicable
State committee of the Farm Service Agency shall take into
account--
(i) the average local market quality discounts that
purchasers applied to the commodity during the first 2 months
following the normal harvest period for the commodity;
(ii) the loan rate and repayment rate established for the
commodity under the marketing loan program established for
the commodity under subtitle B of title I of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 7931 et
seq.);
(iii) the market value of the commodity if sold into a
secondary market; and
(iv) other factors determined appropriate by the committee.
(4) Eligibility.--
(A) In general.--For producers on a farm to be eligible to
obtain a payment for a quality loss for a crop under this
subsection--
(i) the amount obtained by multiplying the per unit loss
determined under paragraph (1) by the number of units
affected by the quality loss shall be reduced by the amount
of any indemnification received by the producers on the farm
for quality loss adjustment for the commodity under a policy
or plan of insurance under the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.); and
(ii) the remainder shall be at least 25 percent of the
value that all affected production of the crop would have had
if the crop had not suffered a quality loss.
(B) Ineligibility.--If the amount of a quality loss payment
for a commodity for the producers on a farm determined under
this paragraph is equal to or less than zero, the producers
on the farm shall be ineligible for assistance for the
commodity under this subsection.
(5) Eligible production.--The Secretary shall carry out
this subsection in a fair and equitable manner for all
eligible production, including the production of fruits and
vegetables, other specialty crops, and field crops.
(e) Election of Crop Year.--If a producer incurred
qualifying crop losses in more than

[[Page 7780]]

1 of the crop years during the applicable period, the
producers on a farm shall elect to receive assistance under
this section for losses incurred in only 1 of the crop years.
(f) Payment Limitation.--
(1) Limitation.--Assistance provided under this section to
the producers on a farm for losses to a crop, together with
the amounts specified in paragraph (2) applicable to the same
crop, may not exceed 95 percent of what the value of the crop
would have been in the absence of the losses, as estimated by
the Secretary.
(2) Other payments.--In applying the limitation in
paragraph (1), the Secretary shall include the following:
(A) Any crop insurance payment made under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.) or payment under
section 196 of the Federal Agricultural Improvement and
Reform Act of 1996 (7 U.S.C. 7333) that the producers on the
farm receive for losses to the same crop.
(B) The value of the crop that was not lost (if any), as
estimated by the Secretary.
(g) Timing.--
(1) In general.--Subject to paragraph (2), the Secretary
shall make payments to producers on a farm for a crop under
this section not later than 60 days after the date the
producers on the farm submit to the Secretary a completed
application for the payments.
(2) Interest.--If the Secretary does not make payments to
the producers on a farm by the date described in paragraph
(1), the Secretary shall pay to the producers on a farm
interest on the payments at a rate equal to the current (as
of the sign-up deadline established by the Secretary) market
yield on outstanding, marketable obligations of the United
States with maturities of 30 years.

SEC. 412. LIVESTOCK ASSISTANCE.

(a) Livestock Compensation Program.--
(1) Use of appropriated funds.--Effective beginning on the
date of enactment of this Act, subject to the availability of
appropriated funds under section 421, the Secretary shall
carry out the 2002 Livestock Compensation Program announced
by the Secretary on October 10, 2002 (67 Fed. Reg. 63070), to
provide compensation for livestock losses during the
applicable period for losses (including losses due to
blizzards that began in calendar year 2006 and continued in
January 2007) due to a disaster, as determined by the
Secretary, except that the payment rate shall be 80 percent
of the payment rate established for the 2002 Livestock
Compensation Program.
(2) Eligible applicants.--In carrying out the program
described in paragraph (1), the Secretary shall provide
assistance to any applicant for livestock losses during the
applicable period that--
(A)(i) conducts a livestock operation that is located in a
disaster county, including any applicant conducting a
livestock operation with eligible livestock (within the
meaning of the livestock assistance program under section
101(b) of division B of Public Law 108-324 (118 Stat. 1234));
or
(ii) produces an animal described in section 10806(a)(1) of
the Farm Security and Rural Investment Act of 2002 (21 U.S.C.
321d(a)(1));
(B) demonstrates to the Secretary that the applicant
suffered a material loss of pasture or hay production, or
experienced substantially increased feed costs, due to
damaging weather or a related condition during the calendar
year, as determined by the Secretary; and
(C) meets all other eligibility requirements established by
the Secretary for the program.
(3) Mitigation.--In determining the eligibility for or
amount of payments for which a producer is eligible under the
livestock compensation program, the Secretary shall not
penalize a producer that takes actions (recognizing disaster
conditions) that reduce the average number of livestock the
producer owned for grazing during the production year for
which assistance is being provided.
(4) Payments for reduction in grazing on federal land.--
(A) In general.--In carrying out this subsection, the
Secretary shall make payments to livestock producers that are
in proportion to any reduction during calendar year 2007 in
grazing on Federal land in a disaster county leased by the
producers a result of actions described in subparagraph (B).
(B) Federal actions.--Actions referred to in subparagraph
(A) are actions taken during calendar year 2007 by the Bureau
of Land Management or other Federal agency to restrict or
prohibit grazing otherwise allowed under the terms of the
lease of the producers in order to expedite the recovery of
the Federal land from drought, wildfire, or other natural
disaster declared by the Secretary during the applicable
period.
(5) Limitation.--The Secretary shall ensure, to the maximum
extent practicable, that producers on a farm do not receive
duplicative payments under this subsection and another
Federal program with respect to any loss.
(b) Livestock Indemnity Payments.--
(1) In general.--Subject to the availability of
appropriated funds under section 421, the Secretary shall
make livestock indemnity payments to producers on farms that
have incurred livestock losses during the applicable period
(including losses due to blizzards that began in calendar
year 2006 and continued in January 2007) due to a disaster,
as determined by the Secretary, including losses due to
hurricanes, floods, anthrax, wildfires, and extreme heat.
(2) Payment rates.--Indemnity payments to a producer on a
farm under paragraph (1) shall be made at a rate of not less
than 30 percent of the market value of the applicable
livestock on the day before the date of death of the
livestock, as determined by the Secretary.
(c) Ewe Lamb Replacement and Retention.--
(1) In general.--Subject to the availability of
appropriated funds under section 421, the Secretary shall use
$13,000,000 of the funds made available under that section to
make payments to producers located in disaster counties under
the Ewe Lamb Replacement and Retention Payment Program under
part 784 of title 7, Code of Federal Regulations (or a
successor regulation) for each qualifying ewe lamb retained
or purchased during the period beginning on January 1, 2006,
and ending on December 31, 2006, by the producers.
(2) Ineligibility for other assistance.--A producer that
receives assistance under this subsection shall not be
eligible to receive assistance under subsection (a).
(d) Election of Production Year.--If a producer incurred
qualifying production losses in more than one of the
production years, the producers on a farm shall elect to
receive assistance under this section in only one of the
production years.
(e) Exception.--Notwithstanding any other provision of this
section, livestock producers on a farm shall be eligible to
receive assistance under subsection (a) or livestock
indemnity payments under subsection (b) if the producers on a
farm--
(1) have livestock operations in a county included in the
geographic area covered by a major disaster or emergency
designated by the President under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121
et seq.) due to blizzards, ice storms, or other winter-
related causes during the period of December 2006 through
January 2007; and
(2) meet all eligibility requirements for the assistance or
payments other than the requirements relating to disaster
declarations by the Secretary under subsections (a) and
(b)(1).

Subtitle B--Miscellaneous

SEC. 421. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--The Secretary shall use to carry out this
title funds derived from annual appropriations for the
Department of Agriculture, as determined by the Secretary.
(b) Limitation.--Notwithstanding any other provision of
this title, the authority provided by this title and the
amendments made by this title shall apply only to the extent
that funds are appropriated in advance in an annual
appropriations Act for the Department of Agriculture.

Subtitle C--Emergency Designation

SEC. 431. EMERGENCY DESIGNATION.

______

SA 658. Mr. GRASSLEY (for himself and Mr. Baucus) submitted an
amendment intended to be proposed by him to the bill H.R. 1591, making
emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

Strike all after the first word and insert the following:

V--FAIR MINIMUM WAGE AND TAX RELIEF

Subtitle A--Fair Minimum Wage

SEC. 500. SHORT TITLE.

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

SEC. 501. MINIMUM WAGE.

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

SEC. 502. APPLICABILITY OF MINIMUM WAGE TO THE COMMONWEALTH
OF THE NORTHERN MARIANA ISLANDS.

[[Page 7781]]

minimum wage under section 6(a)(1) of such Act), beginning 6
months after the date of enactment of this Act and every 6
months thereafter until the minimum wage applicable to the
Commonwealth of the Northern Mariana Islands under this
subsection is equal to the minimum wage set forth in such
section.

Subtitle B--Small Business Tax Incentives

SEC. 510. SHORT TITLE; AMENDMENT OF CODE.

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

PART I--SMALL BUSINESS TAX RELIEF PROVISIONS

Subpart A--General Provisions

SEC. 511. EXTENSION OF INCREASED EXPENSING FOR SMALL
BUSINESSES.

Section 179 (relating to election to expense certain
depreciable business assets) is amended by striking ``2010''
each place it appears and inserting ``2011''.

SEC. 512. EXTENSION AND MODIFICATION OF 15-YEAR STRAIGHT-LINE
COST RECOVERY FOR QUALIFIED LEASEHOLD
IMPROVEMENTS AND QUALIFIED RESTAURANT
IMPROVEMENTS; 15-YEAR STRAIGHT-LINE COST
RECOVERY FOR CERTAIN IMPROVEMENTS TO RETAIL
SPACE.

(a) Extension of Leasehold and Restaurant Improvements.--
(1) In general.--Clauses (iv) and (v) of section
168(e)(3)(E) (relating to 15-year property) are each amended
by striking ``January 1, 2008'' and inserting ``January 1,
2009''.
(2) Effective date.--The amendment made by this subsection
shall apply to property placed in service after December 31,
2007.
(b) Modification of Treatment of Qualified Restaurant
Property as 15-Year Property for Purposes of Depreciation
Deduction.--
(1) Treatment to include new construction.--Paragraph (7)
of section 168(e) (relating to classification of property) is
amended to read as follows:
``(7) Qualified restaurant property.--The term `qualified
restaurant property' means any section 1250 property which is
a building (or its structural components) or an improvement
to such building if more than 50 percent of such building's
square footage is devoted to preparation of, and seating for
on-premises consumption of, prepared meals.''.
(2) Effective date.--The amendment made by this subsection
shall apply to any property placed in service after the date
of the enactment of this Act, the original use of which
begins with the taxpayer after such date.
(c) Recovery Period for Depreciation of Certain
Improvements to Retail Space.--
(1) 15-year recovery period.--Section 168(e)(3)(E)
(relating to 15-year property) is amended by striking ``and''
at the end of clause (vii), by striking the period at the end
of clause (viii) and inserting ``, and'', and by adding at
the end the following new clause:
``(ix) any qualified retail improvement property placed in
service before January 1, 2009.''.
(2) Qualified retail improvement property.--Section 168(e)
is amended by adding at the end the following new paragraph:
``(8) Qualified retail improvement property.--
``(A) In general.--The term `qualified retail improvement
property' means any improvement to an interior portion of a
building which is nonresidential real property if--
``(i) such portion is open to the general public and is
used in the retail trade or business of selling tangible
personal property to the general public, and
``(ii) such improvement is placed in service more than 3
years after the date the building was first placed in
service.
``(B) Improvements made by owner.--In the case of an
improvement made by the owner of such improvement, such
improvement shall be qualified retail improvement property
(if at all) only so long as such improvement is held by such
owner. Rules similar to the rules under paragraph (6)(B)
shall apply for purposes of the preceding sentence.
``(C) Certain improvements not included.--Such term shall
not include any improvement for which the expenditure is
attributable to--
``(i) the enlargement of the building,
``(ii) any elevator or escalator,
``(iii) any structural component benefitting a common area,
or
``(iv) the internal structural framework of the
building.''.
(3) Requirement to use straight line method.--Section
168(b)(3) is amended by adding at the end the following new
subparagraph:
``(I) Qualified retail improvement property described in
subsection (e)(8).''.
(4) Alternative system.--The table contained in section
168(g)(3)(B) is amended by inserting after the item relating
to subparagraph (E)(viii) the following new item:

(E)(ix)...........................................................39''.

(5) Effective date.--The amendments made by this subsection
shall apply to property placed in service after the date of
the enactment of this Act.

SEC. 513. CLARIFICATION OF CASH ACCOUNTING RULES FOR SMALL
BUSINESS.

(a) Cash Accounting Permitted.--
(1) In general.--Section 446 (relating to general rule for
methods of accounting) is amended by adding at the end the
following new subsection:
``(g) Certain Small Business Taxpayers Permitted To Use
Cash Accounting Method Without Limitation.--
``(1) In general.--An eligible taxpayer shall not be
required to use an accrual method of accounting for any
taxable year.
``(2) Eligible taxpayer.--For purposes of this subsection,
a taxpayer is an eligible taxpayer with respect to any
taxable year if--
``(A) for each of the prior taxable years ending on or
after the date of the enactment of this subsection, the
taxpayer (or any predecessor) met the gross receipts test in
effect under section 448(c) for such taxable year, and
``(B) the taxpayer is not subject to section 447 or 448.''.
(2) Expansion of gross receipts test.--
(A) In general.--Paragraph (3) of section 448(b) (relating
to entities with gross receipts of not more than $5,000,000)
is amended to read as follows:
``(3) Entities meeting gross receipts test.--Paragraphs (1)
and (2) of subsection (a) shall not apply to any corporation
or partnership for any taxable year if, for each of the prior
taxable years ending on or after the date of the enactment of
the Small Business and Work Opportunity Act of 2007, the
entity (or any predecessor) met the gross receipts test in
effect under subsection (c) for such prior taxable year.''.
(B) Conforming amendments.--Section 448(c) of such Code is
amended--
(i) by striking ``$5,000,000'' in the heading thereof,
(ii) by striking ``$5,000,000'' each place it appears in
paragraph (1) and inserting ``$10,000,000'', and
(iii) by adding at the end the following new paragraph:
``(4) Inflation adjustment.--In the case of any taxable
year beginning in a calendar year after 2008, the dollar
amount contained in paragraph (1) shall be increased by an
amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, by substituting `calendar year 2007' for
`calendar year 1992' in subparagraph (B) thereof.
``If any amount as adjusted under this subparagraph is not
a multiple of $100,000, such amount shall be rounded to the
nearest multiple of $100,000.''.
(b) Clarification of Inventory Rules for Small Business.--
(1) In general.--Section 471 (relating to general rule for
inventories) is amended by redesignating subsection (c) as
subsection (d) and by inserting after subsection (b) the
following new subsection:
``(c) Small Business Taxpayers Not Required To Use
Inventories.--
``(1) In general.--A qualified taxpayer shall not be
required to use inventories under this section for a taxable
year.
``(2) Treatment of taxpayers not using inventories.--If a
qualified taxpayer does not use inventories with respect to
any property for any taxable year beginning after the date of
the enactment of this subsection, such property shall be
treated as a material or supply which is not incidental.
``(3) Qualified taxpayer.--For purposes of this subsection,
the term `qualified taxpayer' means--
``(A) any eligible taxpayer (as defined in section
446(g)(2)), and
``(B) any taxpayer described in section 448(b)(3).''.
(2) Conforming amendments.--
(A) Subpart D of part II of subchapter E of chapter 1 is
amended by striking section 474.
(B) The table of sections for subpart D of part II of
subchapter E of chapter 1 is amended by striking the item
relating to section 474.
(c) Effective Date and Special Rules.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after the date of the
enactment of this Act.
(2) Change in method of accounting.--In the case of any
taxpayer changing the taxpayer's method of accounting for any
taxable year under the amendments made by this section--
(A) such change shall be treated as initiated by the
taxpayer;
(B) such change shall be treated as made with the consent
of the Secretary of the Treasury; and
(C) the net amount of the adjustments required to be taken
into account by the taxpayer under section 481 of the
Internal Revenue Code of 1986 shall be taken into account
over a period (not greater than 4 taxable years) beginning
with such taxable year.

[[Page 7782]]

SEC. 514. EXTENSION AND MODIFICATION OF COMBINED WORK
OPPORTUNITY TAX CREDIT AND WELFARE-TO-WORK
CREDIT.

(a) Extension.--Section 51(c)(4)(B) (relating to
termination) is amended by striking ``2007'' and inserting
``2012''.
(b) Increase in Maximum Age for Designated Community
Residents.--
(1) In general.--Paragraph (5) of section 51(d) is amended
to read as follows:
``(5) Designated community residents.--
``(A) In general.--The term `designated community resident'
means any individual who is certified by the designated local
agency--
``(i) as having attained age 18 but not age 40 on the
hiring date, and
``(ii) as having his principal place of abode within an
empowerment zone, enterprise community, renewal community, or
rural renewal county.
``(B) Individual must continue to reside in zone,
community, or county.--In the case of a designated community
resident, the term `qualified wages' shall not include wages
paid or incurred for services performed while the
individual's principal place of abode is outside an
empowerment zone, enterprise community, renewal community, or
rural renewal county.
``(C) Rural renewal county.--For purposes of this
paragraph, the term `rural renewal county' means any county
which--
``(i) is outside a metropolitan statistical area (defined
as such by the Office of Management and Budget), and
``(ii) during the 5-year periods 1990 through 1994 and 1995
through 1999 had a net population loss.''.
(2) Conforming amendment.--Subparagraph (D) of section
51(d)(1) is amended to read as follows:
``(D) a designated community resident,''.
(c) Clarification of Treatment of Individuals Under
Individual Work Plans.--Subparagraph (B) of section 51(d)(6)
(relating to vocational rehabilitation referral) is amended
by striking ``or'' at the end of clause (i), by striking the
period at the end of clause (ii) and inserting ``, or'', and
by adding at the end the following new clause:
``(iii) an individual work plan developed and implemented
by an employment network pursuant to subsection (g) of
section 1148 of the Social Security Act with respect to which
the requirements of such subsection are met.''.
(d) Treatment of Disabled Veterans Under the Work
Opportunity Tax Credit.--
(1) Disabled veterans treated as members of targeted
group.--
(A) In general.--Subparagraph (A) of section 51(d)(3)
(relating to qualified veteran) is amended by striking
``agency as being a member of a family'' and all that follows
and inserting ``agency as--
``(i) being a member of a family receiving assistance under
a food stamp program under the Food Stamp Act of 1977 for at
least a 3-month period ending during the 12-month period
ending on the hiring date, or
``(ii) entitled to compensation for a service-connected
disability incurred after September 10, 2001.''.
(B) Definitions.--Paragraph (3) of section 51(d) is amended
by adding at the end the following new subparagraph:
``(C) Other definitions.--For purposes of subparagraph (A),
the terms `compensation' and `service-connected' have the
meanings given such terms under section 101 of title 38,
United States Code.''.
(2) Increase in amount of wages taken into account for
disabled veterans.--Paragraph (3) of section 51(b) is
amended--
(A) by inserting ``($12,000 per year in the case of any
individual who is a qualified veteran by reason of subsection
(d)(3)(A)(ii))'' before the period at the end, and
(B) by striking ``ONLY FIRST $6,000 of'' in the heading
and inserting ``LIMITATION ON''.
(e) Effective Date.--The amendments made by this section
shall apply to individuals who begin work for the employer
after the date of the enactment of this Act, in taxable years
ending after such date.

SEC. 515. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

(a) Employment Taxes.--Chapter 25 (relating to general
provisions relating to employment taxes) is amended by adding
at the end the following new section:

``SEC. 3511. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

``(a) General Rules.--For purposes of the taxes, and other
obligations, imposed by this subtitle--
``(1) a certified professional employer organization shall
be treated as the employer (and no other person shall be
treated as the employer) of any work site employee performing
services for any customer of such organization, but only with
respect to remuneration remitted by such organization to such
work site employee, and
``(2) exclusions, definitions, and other rules which are
based on the type of employer and which would (but for
paragraph (1)) apply shall apply with respect to such taxes
imposed on such remuneration.
``(b) Successor Employer Status.--For purposes of sections
3121(a)(1), 3231(e)(2)(C), and 3306(b)(1)--
``(1) a certified professional employer organization
entering into a service contract with a customer with respect
to a work site employee shall be treated as a successor
employer and the customer shall be treated as a predecessor
employer during the term of such service contract, and
``(2) a customer whose service contract with a certified
professional employer organization is terminated with respect
to a work site employee shall be treated as a successor
employer and the certified professional employer organization
shall be treated as a predecessor employer.
``(c) Liability of Certified Professional Employer
Organization.--Solely for purposes of its liability for the
taxes, and other obligations, imposed by this subtitle--
``(1) a certified professional employer organization shall
be treated as the employer of any individual (other than a
work site employee or a person described in subsection (f))
who is performing services covered by a contract meeting the
requirements of section 7705(e)(2), but only with respect to
remuneration remitted by such organization to such
individual, and
``(2) exclusions, definitions, and other rules which are
based on the type of employer and which would (but for
paragraph (1)) apply shall apply with respect to such taxes
imposed on such remuneration.
``(d) Treatment of Credits.--
``(1) In general.--For purposes of any credit specified in
paragraph (2)--
``(A) such credit with respect to a work site employee
performing services for the customer applies to the customer,
not the certified professional employer organization,
``(B) the customer, and not the certified professional
employer organization, shall take into account wages and
employment taxes--
``(i) paid by the certified professional employer
organization with respect to the work site employee, and
``(ii) for which the certified professional employer
organization receives payment from the customer, and
``(C) the certified professional employer organization
shall furnish the customer with any information necessary for
the customer to claim such credit.
``(2) Credits specified.--A credit is specified in this
paragraph if such credit is allowed under--
``(A) section 41 (credit for increasing research activity),
``(B) section 45A (Indian employment credit),
``(C) section 45B (credit for portion of employer social
security taxes paid with respect to employee cash tips),
``(D) section 45C (clinical testing expenses for certain
drugs for rare diseases or conditions),
``(E) section 51 (work opportunity credit),
``(F) section 51A (temporary incentives for employing long-
term family assistance recipients),
``(G) section 1396 (empowerment zone employment credit),
``(H) 1400(d) (DC Zone employment credit),
``(I) Section 1400H (renewal community employment credit),
and
``(J) any other section as provided by the Secretary.
``(e) Special Rule for Related Party.--This section shall
not apply in the case of a customer which bears a
relationship to a certified professional employer
organization described in section 267(b) or 707(b). For
purposes of the preceding sentence, such sections shall be
applied by substituting `10 percent' for `50 percent'.
``(f) Special Rule for Certain Individuals.--For purposes
of the taxes imposed under this subtitle, an individual with
net earnings from self-employment derived from the customer's
trade or business is not a work site employee with respect to
remuneration paid by a certified professional employer
organization.
``(g) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(b) Certified Professional Employer Organization Defined.--
Chapter 79 (relating to definitions) is amended by adding at
the end the following new section:

``SEC. 7705. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS
DEFINED.

[[Page 7783]]

``(5) agrees to verify on such periodic basis as the
Secretary may prescribe that it continues to meet the
requirements of this subsection, and
``(6) agrees to notify the Secretary in writing within such
time as the Secretary may prescribe of any change that
materially affects whether it continues to meet the
requirements of this subsection.
``(c) Bond and Independent Financial Review Requirements.--
``(1) In general.--An organization meets the requirements
of this paragraph if such organization--
``(A) meets the bond requirements of paragraph (2), and
``(B) meets the independent financial review requirements
of paragraph (3).
``(2) Bond.--
``(A) In general.--A certified professional employer
organization meets the requirements of this paragraph if the
organization has posted a bond for the payment of taxes under
subtitle C (in a form acceptable to the Secretary) in an
amount at least equal to the amount specified in subparagraph
(B).
``(B) Amount of bond.--For the period April 1 of any
calendar year through March 31 of the following calendar
year, the amount of the bond required is equal to the greater
of--
``(i) 5 percent of the organization's liability under
section 3511 for taxes imposed by subtitle C during the
preceding calendar year (but not to exceed $1,000,000), or
``(ii) $50,000.
``(3) Independent financial review requirements.--A
certified professional employer organization meets the
requirements of this paragraph if such organization--
``(A) has, as of the most recent review date, caused to be
prepared and provided to the Secretary (in such manner as the
Secretary may prescribe) an opinion of an independent
certified public accountant that the certified professional
employer organization's financial statements are presented
fairly in accordance with generally accepted accounting
principles, and
``(B) provides, not later than the last day of the second
month beginning after the end of each calendar quarter, to
the Secretary from an independent certified public accountant
an assertion regarding Federal employment tax payments and an
examination level attestation on such assertion.

Such assertion shall state that the organization has withheld
and made deposits of all taxes imposed by chapters 21, 22,
and 24 of the Internal Revenue Code in accordance with
regulations imposed by the Secretary for such calendar
quarter and such examination level attestation shall state
that such assertion is fairly stated, in all material
respects.
``(4) Controlled group rules.--For purposes of the
requirements of paragraphs (2) and (3), all professional
employer organizations that are members of a controlled group
within the meaning of sections 414(b) and (c) shall be
treated as a single organization.
``(5) Failure to file assertion and attestation.--If the
certified professional employer organization fails to file
the assertion and attestation required by paragraph (3) with
respect to any calendar quarter, then the requirements of
paragraph (3) with respect to such failure shall be treated
as not satisfied for the period beginning on the due date for
such attestation.
``(6) Review date.--For purposes of paragraph (3)(A), the
review date shall be 6 months after the completion of the
organization's fiscal year.
``(d) Suspension and Revocation Authority.--The Secretary
may suspend or revoke a certification of any person under
subsection (b) for purposes of section 3511 if the Secretary
determines that such person is not satisfying the
representations or requirements of subsections (b) or (c), or
fails to satisfy applicable accounting, reporting, payment,
or deposit requirements.
``(e) Work Site Employee.--For purposes of this title--
``(1) In general.--The term `work site employee' means,
with respect to a certified professional employer
organization, an individual who--
``(A) performs services for a customer pursuant to a
contract which is between such customer and the certified
professional employer organization and which meets the
requirements of paragraph (2), and
``(B) performs services at a work site meeting the
requirements of paragraph (3).
``(2) Service contract requirements.--A contract meets the
requirements of this paragraph with respect to an individual
performing services for a customer if such contract is in
writing and provides that the certified professional employer
organization shall--
``(A) assume responsibility for payment of wages to such
individual, without regard to the receipt or adequacy of
payment from the customer for such services,
``(B) assume responsibility for reporting, withholding, and
paying any applicable taxes under subtitle C, with respect to
such individual's wages, without regard to the receipt or
adequacy of payment from the customer for such services,
``(C) assume responsibility for any employee benefits which
the service contract may require the organization to provide,
without regard to the receipt or adequacy of payment from the
customer for such services,
``(D) assume responsibility for hiring, firing, and
recruiting workers in addition to the customer's
responsibility for hiring, firing and recruiting workers,
``(E) maintain employee records relating to such
individual, and
``(F) agree to be treated as a certified professional
employer organization for purposes of section 3511 with
respect to such individual.
``(3) Work site coverage requirement.--The requirements of
this paragraph are met with respect to an individual if at
least 85 percent of the individuals performing services for
the customer at the work site where such individual performs
services are subject to 1 or more contracts with the
certified professional employer organization which meet the
requirements of paragraph (2) (but not taking into account
those individuals who are excluded employees within the
meaning of section 414(q)(5)).
``(f) Determination of Employment Status.--Except to the
extent necessary for purposes of section 3511, nothing in
this section shall be construed to affect the determination
of who is an employee or employer for purposes of this title.
``(g) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(c) Conforming Amendments.--
(1) Section 3302 is amended by adding at the end the
following new subsection:
``(h) Treatment of Certified Professional Employer
Organizations.--If a certified professional employer
organization (as defined in section 7705), or a customer of
such organization, makes a contribution to the State's
unemployment fund with respect to a work site employee, such
organization shall be eligible for the credits available
under this section with respect to such contribution.''.
(2) Section 3303(a) is amended--
(A) by striking the period at the end of paragraph (3) and
inserting ``; and'' and by inserting after paragraph (3) the
following new paragraph:
``(4) if the taxpayer is a certified professional employer
organization (as defined in section 7705) that is treated as
the employer under section 3511, such certified professional
employer organization is permitted to collect and remit, in
accordance with paragraphs (1), (2), and (3), contributions
during the taxable year to the State unemployment fund with
respect to a work site employee.'', and
(B) in the last sentence--
(i) by striking ``paragraphs (1), (2), and (3)'' and
inserting ``paragraphs (1), (2), (3), and (4)'', and
(ii) by striking ``paragraph (1), (2), or (3)'' and
inserting ``paragraph (1), (2), (3), or (4)''.
(3) Section 6053(c) (relating to reporting of tips) is
amended by adding at the end the following new paragraph:
``(8) Certified professional employer organizations.--For
purposes of any report required by this subsection, in the
case of a certified professional employer organization that
is treated under section 3511 as the employer of a work site
employee, the customer with respect to whom a work site
employee performs services shall be the employer for purposes
of reporting under this section and the certified
professional employer organization shall furnish to the
customer any information necessary to complete such reporting
no later than such time as the Secretary shall prescribe.''.
(d) Clerical Amendments.--
(1) The table of sections for chapter 25 is amended by
adding at the end the following new item:

``Sec. 3511. Certified professional employer organizations''.

(2) The table of sections for chapter 79 is amended by
inserting after the item relating to section 7704 the
following new item:

``Sec. 7705. Certified professional employer organizations defined''.

[[Page 7784]]

(g) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply with respect to wages for services performed on or
after January 1 of the first calendar year beginning more
than 12 months after the date of the enactment of this Act.
(2) Certification program.--The Secretary of the Treasury
shall establish the certification program described in
section 7705(b) of the Internal Revenue Code of 1986, as
added by subsection (b), not later than 6 months before the
effective date determined under paragraph (1).
(h) No Inference.--Nothing contained in this section or the
amendments made by this section shall be construed to create
any inference with respect to the determination of who is an
employee or employer--
(1) for Federal tax purposes (other than the purposes set
forth in the amendments made by this section), or
(2) for purposes of any other provision of law.

SEC. 516. ACCELERATED DEPRECIATION FOR INVESTMENT IN HIGH
OUT-MIGRATION COUNTIES.

(a) In General.--Section 168 (relating to accelerated cost
recovery system) is amended by adding at the end the
following new subsection:
``(l) Rural Investment Property.--
``(1) In general.--For purposes of subsection (a), the
applicable recovery period for qualified rural investment
property shall be determined in accordance with the table
contained in paragraph (2) in lieu of the table contained in
subsection (c).
``(2) Applicable recovery period for rural investment
property.--For purposes of paragraph (1)--
The applicable
`` ``In the case of: recovery period is:
3-year property............................................2 years
5-year property............................................3 years
7-year property............................................4 years
10-year property...........................................6 years
15-year property...........................................9 years
20-year property..........................................12 years
Nonresidential real property................................22 years.

``(3) Qualified rural investment property defined.--For
purposes of this subsection--
``(A) In general.--The term `qualified rural investment
property' means property which is property described in the
table in paragraph (2) and which is--
``(i) used by the taxpayer predominantly in the active
conduct of a trade or business within a high out-migration
county,
``(ii) not used or located outside such county on a regular
basis,
``(iii) not acquired (directly or indirectly) by the
taxpayer from a person who is related to the taxpayer (within
the meaning of section 465(b)(3)(C)), and
``(iv) not property (or any portion thereof) placed in
service for purposes of operating any racetrack or other
facility used for gambling.
``(B) High out-migration county.--The term `high out-
migration county' means any county which--
``(i) is outside a metropolitan statistical area (defined
as such by the Office of Management and Budget), and
``(ii) during the 5-year periods 1990 through 1994 and 1995
through 1999 had a net population loss.
``(4) Termination.--This subsection shall not apply to
property placed in service after March 31, 2008.''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after the date of
the enactment of this Act, the original use of which begins
with the taxpayer after such date.

Subpart B--Subchapter S Provisions

SEC. 521. CAPITAL GAIN OF S CORPORATION NOT TREATED AS
PASSIVE INVESTMENT INCOME.

(a) In General.--Section 1362(d)(3) is amended by striking
subparagraphs (B), (C), (D), (E), and (F) and inserting the
following new subparagraph:
``(B) Passive investment income defined.--
``(i) In general.--Except as otherwise provided in this
subparagraph, the term `passive investment income' means
gross receipts derived from royalties, rents, dividends,
interest, and annuities.
``(ii) Exception for interest on notes from sales of
inventory.--The term `passive investment income' shall not
include interest on any obligation acquired in the ordinary
course of the corporation's trade or business from its sale
of property described in section 1221(a)(1).
``(iii) Treatment of certain lending or finance
companies.--If the S corporation meets the requirements of
section 542(c)(6) for the taxable year, the term `passive
investment income' shall not include gross receipts for the
taxable year which are derived directly from the active and
regular conduct of a lending or finance business (as defined
in section 542(d)(1)).
``(iv) Treatment of certain dividends.--If an S corporation
holds stock in a C corporation meeting the requirements of
section 1504(a)(2), the term `passive investment income'
shall not include dividends from such C corporation to the
extent such dividends are attributable to the earnings and
profits of such C corporation derived from the active conduct
of a trade or business.
``(v) Exception for banks, etc.--In the case of a bank (as
defined in section 581) or a depository institution holding
company (as defined in section 3(w)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(w)(1)), the term `passive
investment income' shall not include--

``(I) interest income earned by such bank or company, or
``(II) dividends on assets required to be held by such bank
or company, including stock in the Federal Reserve Bank, the
Federal Home Loan Bank, or the Federal Agricultural Mortgage
Bank or participation certificates issued by a Federal
Intermediate Credit Bank.''.

(b) Conforming Amendment.--Clause (i) of section
1042(c)(4)(A) is amended by striking ``section
1362(d)(3)(C)'' and inserting ``section 1362(d)(3)(B)''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. 522. TREATMENT OF BANK DIRECTOR SHARES.

(a) In General.--Section 1361 (defining S corporation) is
amended by adding at the end the following new subsection:
``(f) Restricted Bank Director Stock.--
``(1) In general.--Restricted bank director stock shall not
be taken into account as outstanding stock of the S
corporation in applying this subchapter (other than section
1368(f)).
``(2) Restricted bank director stock.--For purposes of this
subsection, the term `restricted bank director stock' means
stock in a bank (as defined in section 581) or a depository
institution holding company (as defined in section 3(w)(1) of
the Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1)), if
such stock--
``(A) is required to be held by an individual under
applicable Federal or State law in order to permit such
individual to serve as a director, and
``(B) is subject to an agreement with such bank or company
(or a corporation which controls (within the meaning of
section 368(c)) such bank or company) pursuant to which the
holder is required to sell back such stock (at the same price
as the individual acquired such stock) upon ceasing to hold
the office of director.
``(3) Cross reference.--

``For treatment of certain distributions with respect to restricted
bank director stock, see section 1368(f)''.

(b) Distributions.--Section 1368 (relating to
distributions) is amended by adding at the end the following
new subsection:
``(f) Restricted Bank Director Stock.--If a director
receives a distribution (not in part or full payment in
exchange for stock) from an S corporation with respect to any
restricted bank director stock (as defined in section
1361(f)), the amount of such distribution--
``(1) shall be includible in gross income of the director,
and
``(2) shall be deductible by the corporation for the
taxable year of such corporation in which or with which ends
the taxable year in which such amount in included in the
gross income of the director.''.
(c) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2006.
(2) Special rule for treatment as second class of stock.--
In the case of any taxable year beginning after December 31,
1996, restricted bank director stock (as defined in section
1361(f) of the Internal Revenue Code of 1986, as added by
this section) shall not be taken into account in determining
whether an S corporation has more than 1 class of stock.

SEC. 523. SPECIAL RULE FOR BANK REQUIRED TO CHANGE FROM THE
RESERVE METHOD OF ACCOUNTING ON BECOMING S
CORPORATION.

(a) In General.--Section 1361, as amended by this Act, is
amended by adding at the end the following new subsection:
``(g) Special Rule for Bank Required To Change From the
Reserve Method of Accounting on Becoming S Corporation.--In
the case of a bank which changes from the reserve method of
accounting for bad debts described in section 585 or 593 for
its first taxable year for which an election under section
1362(a) is in effect, the bank may elect to take into account
any adjustments under section 481 by reason of such change
for the taxable year immediately preceding such first taxable
year.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006.

SEC. 524. TREATMENT OF THE SALE OF INTEREST IN A QUALIFIED
SUBCHAPTER S SUBSIDIARY.

[[Page 7785]]

``(ii) Termination by reason of sale of stock.--If the
failure to meet the requirements of subparagraph (B) is by
reason of the sale of stock of a corporation which is a
qualified subchapter S subsidiary, the sale of such stock
shall be treated as if--

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

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

SEC. 525. ELIMINATION OF ALL EARNINGS AND PROFITS
ATTRIBUTABLE TO PRE-1983 YEARS FOR CERTAIN
CORPORATIONS.

In the case of a corporation which is--
(1) described in section 1311(a)(1) of the Small Business
Job Protection Act of 1996, and
(2) not described in section 1311(a)(2) of such Act,
the amount of such corporation's accumulated earnings and
profits (for the first taxable year beginning after the date
of the enactment of this Act) shall be reduced by an amount
equal to the portion (if any) of such accumulated earnings
and profits which were accumulated in any taxable year
beginning before January 1, 1983, for which such corporation
was an electing small business corporation under subchapter S
of the Internal Revenue Code of 1986.

SEC. 526. EXPANSION OF QUALIFYING BENEFICIARIES OF AN
ELECTING SMALL BUSINESS TRUST.

(a) No Look Through for Eligibility Purposes.--Clause (v)
of section 1361(c)(2)(B) is amended by adding at the end the
following new sentence: ``This clause shall not apply for
purposes of subsection (b)(1)(C).''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.

PART II--REVENUE PROVISIONS

SEC. 531. MODIFICATION OF EFFECTIVE DATE OF LEASING
PROVISIONS OF THE AMERICAN JOBS CREATION ACT OF
2004.

(a) Leases to Foreign Entities.--Section 849(b) of the
American Jobs Creation Act of 2004 is amended by adding at
the end the following new paragraph:
``(5) Leases to foreign entities.--In the case of tax-
exempt use property leased to a tax-exempt entity which is a
foreign person or entity, the amendments made by this part
shall apply to taxable years beginning after December 31,
2006, with respect to leases entered into on or before March
12, 2004.''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in the enactment of the
American Jobs Creation Act of 2004.

SEC. 532. APPLICATION OF RULES TREATING INVERTED CORPORATIONS
AS DOMESTIC CORPORATIONS TO CERTAIN
TRANSACTIONS OCCURRING AFTER MARCH 20, 2002.

then paragraph (1) shall apply to such corporation but only
with respect to taxable years of such corporation beginning
after December 31, 2006.
``(B) Special rules.--Subject to such rules as the
Secretary may prescribe, in the case of a corporation to
which paragraph (1) applies by reason of this paragraph--
``(i) the corporation shall be treated, as of the close of
its last taxable year beginning before January 1, 2007, as
having transferred all of its assets, liabilities, and
earnings and profits to a domestic corporation in a
transaction with respect to which no tax is imposed under
this title,
``(ii) the bases of the assets transferred in the
transaction to the domestic corporation shall be the same as
the bases of the assets in the hands of the foreign
corporation, subject to any adjustments under this title for
built-in losses,
``(iii) the basis of the stock of any shareholder in the
domestic corporation shall be the same as the basis of the
stock of the shareholder in the foreign corporation for which
it is treated as exchanged, and
``(iv) the transfer of any earnings and profits by reason
of clause (i) shall be disregarded in determining any deemed
dividend or foreign tax creditable to the domestic
corporation with respect to such transfer.
``(C) Regulations.--The Secretary may prescribe such
regulations as may be necessary or appropriate to carry out
this paragraph, including regulations to prevent the
avoidance of the purposes of this paragraph.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2006.

SEC. 533. DENIAL OF DEDUCTION FOR PUNITIVE DAMAGES.

(a) Disallowance of Deduction.--
(1) In general.--Section 162(g) (relating to treble damage
payments under the antitrust laws) is amended--
(A) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively,
(B) by striking ``If'' and inserting:
``(1) Treble damages.--If'', and
(C) by adding at the end the following new paragraph:
``(2) Punitive damages.--No deduction shall be allowed
under this chapter for any amount paid or incurred for
punitive damages in connection with any judgment in, or
settlement of, any action. This paragraph shall not apply to
punitive damages described in section 104(c).''.
(2) Conforming amendment.--The heading for section 162(g)
is amended by inserting ``Or Punitive Damages'' after
``Laws''.
(b) Inclusion in Income of Punitive Damages Paid by Insurer
or Otherwise.--
(1) In general.--Part II of subchapter B of chapter 1
(relating to items specifically included in gross income) is
amended by adding at the end the following new section:

``SEC. 91. PUNITIVE DAMAGES COMPENSATED BY INSURANCE OR
OTHERWISE.

``Gross income shall include any amount paid to or on
behalf of a taxpayer as insurance or otherwise by reason of
the taxpayer's liability (or agreement) to pay punitive
damages.''.
(2) Reporting requirements.--Section 6041 (relating to
information at source) is amended by adding at the end the
following new subsection:
``(h) Section To Apply to Punitive Damages Compensation.--
This section shall apply to payments by a person to or on
behalf of another person as insurance or otherwise by reason
of the other person's liability (or agreement) to pay
punitive damages.''.
(3) Conforming amendment.--The table of sections for part
II of subchapter B of chapter 1 is amended by adding at the
end the following new item:

``Sec. 91. Punitive damages compensated by insurance or otherwise''.

(c) Effective Date.--The amendments made by this section
shall apply to damages paid or incurred on or after the date
of the enactment of this Act.

SEC. 534. DENIAL OF DEDUCTION FOR CERTAIN FINES, PENALTIES,
AND OTHER AMOUNTS.

[[Page 7786]]

``(A) a nongovernmental entity which exercises self-
regulatory powers (including imposing sanctions) in
connection with a qualified board or exchange (as defined in
section 1256(g)(7)), or
``(B) to the extent provided in regulations, a
nongovernmental entity which exercises self-regulatory powers
(including imposing sanctions) as part of performing an
essential governmental function.
``(5) Exception for taxes due.--Paragraph (1) shall not
apply to any amount paid or incurred as taxes due.''.
(b) Reporting of Deductible Amounts.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 is amended by inserting after section 6050V the
following new section:

``SEC. 6050W. INFORMATION WITH RESPECT TO CERTAIN FINES,
PENALTIES, AND OTHER AMOUNTS.

``(a) Requirement of Reporting.--
``(1) In general.--The appropriate official of any
government or entity which is described in section 162(f)(4)
which is involved in a suit or agreement described in
paragraph (2) shall make a return in such form as determined
by the Secretary setting forth--
``(A) the amount required to be paid as a result of the
suit or agreement to which paragraph (1) of section 162(f)
applies,
``(B) any amount required to be paid as a result of the
suit or agreement which constitutes restitution or
remediation of property, and
``(C) any amount required to be paid as a result of the
suit or agreement for the purpose of coming into compliance
with any law which was violated or involved in the
investigation or inquiry.
``(2) Suit or agreement described.--
``(A) In general.--A suit or agreement is described in this
paragraph if--
``(i) it is--

``(I) a suit with respect to a violation of any law over
which the government or entity has authority and with respect
to which there has been a court order, or
``(II) an agreement which is entered into with respect to a
violation of any law over which the government or entity has
authority, or with respect to an investigation or inquiry by
the government or entity into the potential violation of any
law over which such government or entity has authority, and

The written statement required under the preceding sentence
shall be furnished to the person at the same time the
government or entity provides the Secretary with the
information required under subsection (a).
``(c) Appropriate Official Defined.--For purposes of this
section, the term `appropriate official' means the officer or
employee having control of the suit, investigation, or
inquiry or the person appropriately designated for purposes
of this section.''.
(2) Conforming amendment.--The table of sections for
subpart B of part III of subchapter A of chapter 61 is
amended by inserting after the item relating to section 6050V
the following new item:

``Sec. 6050W. Information with respect to certain fines, penalties, and
other amounts''.

(c) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred on or after the date
of the enactment of this Act, except that such amendments
shall not apply to amounts paid or incurred under any binding
order or agreement entered into before such date. Such
exception shall not apply to an order or agreement requiring
court approval unless the approval was obtained before such
date.

SEC. 535. REVISION OF TAX RULES ON EXPATRIATION OF
INDIVIDUALS.

(a) In General.--Subpart A of part II of subchapter N of
chapter 1 is amended by inserting after section 877 the
following new section:

``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.

Proper adjustment shall be made in the amount of any gain or
loss subsequently realized for gain or loss taken into
account under the preceding sentence.
``(3) Exclusion for certain gain.--
``(A) In general.--The amount which, but for this
paragraph, would be includible in the gross income of any
individual by reason of this section shall be reduced (but
not below zero) by $600,000. For purposes of this paragraph,
allocable expatriation gain taken into account under
subsection (f)(2) shall be treated in the same manner as an
amount required to be includible in gross income.
``(B) Cost-of-living adjustment.--
``(i) In general.--In the case of an expatriation date
occurring in any calendar year after 2007, the $600,000
amount under subparagraph (A) shall be increased by an amount
equal to--

``(I) such dollar amount, multiplied by
``(II) the cost-of-living adjustment determined under
section 1(f)(3) for such calendar year, determined by
substituting `calendar year 2006' for `calendar year 1992' in
subparagraph (B) thereof.

``(ii) Rounding rules.--If any amount after adjustment
under clause (i) is not a multiple of $1,000, such amount
shall be rounded to the next lower multiple of $1,000.
``(4) Election to continue to be taxed as united states
citizen.--
``(A) In general.--If a covered expatriate elects the
application of this paragraph--
``(i) this section (other than this paragraph and
subsection (i)) shall not apply to the expatriate, but
``(ii) in the case of property to which this section would
apply but for such election, the expatriate shall be subject
to tax under this title in the same manner as if the
individual were a United States citizen.
``(B) Requirements.--Subparagraph (A) shall not apply to an
individual unless the individual--
``(i) provides security for payment of tax in such form and
manner, and in such amount, as the Secretary may require,
``(ii) consents to the waiver of any right of the
individual under any treaty of the United States which would
preclude assessment or collection of any tax which may be
imposed by reason of this paragraph, and
``(iii) complies with such other requirements as the
Secretary may prescribe.
``(C) Election.--An election under subparagraph (A) shall
apply to all property to which this section would apply but
for the election and, once made, shall be irrevocable. Such
election shall also apply to property the basis of which is
determined in whole or in part by reference to the property
with respect to which the election was made.
``(b) Election To Defer Tax.--
``(1) In general.--If the taxpayer elects the application
of this subsection with respect to any property treated as
sold by reason of subsection (a), the payment of the
additional tax attributable to such property shall be
postponed until the due date of the return for the taxable
year in which such property is disposed of (or, in the case
of property disposed of in a transaction in which gain is not
recognized in whole or in part, until such other date as the
Secretary may prescribe).
``(2) Determination of tax with respect to property.--For
purposes of paragraph (1), the additional tax attributable to
any property is an amount which bears the same ratio to the
additional tax imposed by this chapter for the taxable year
solely by reason of subsection (a) as the gain taken into
account under subsection (a) with respect to such property
bears to the total gain taken into account under subsection
(a) with respect to all property to which subsection (a)
applies.
``(3) Termination of postponement.--No tax may be postponed
under this subsection later than the due date for the return
of tax imposed by this chapter for the taxable year which
includes the date of death of the expatriate (or, if earlier,
the time that the security provided with respect to the
property fails to meet the requirements of paragraph (4),
unless the taxpayer corrects such failure within the time
specified by the Secretary).
``(4) Security.--
``(A) In general.--No election may be made under paragraph
(1) with respect to any property unless adequate security is
provided to the Secretary with respect to such property.
``(B) Adequate security.--For purposes of subparagraph (A),
security with respect to any property shall be treated as
adequate security if--
``(i) it is a bond in an amount equal to the deferred tax
amount under paragraph (2) for the property, or
``(ii) the taxpayer otherwise establishes to the
satisfaction of the Secretary that the security is adequate.
``(5) Waiver of certain rights.--No election may be made
under paragraph (1) unless

[[Page 7787]]

the taxpayer consents to the waiver of any right under any
treaty of the United States which would preclude assessment
or collection of any tax imposed by reason of this section.
``(6) Elections.--An election under paragraph (1) shall
only apply to property described in the election and, once
made, is irrevocable. An election may be made under paragraph
(1) with respect to an interest in a trust with respect to
which gain is required to be recognized under subsection
(f)(1).
``(7) Interest.--For purposes of section 6601--
``(A) the last date for the payment of tax shall be
determined without regard to the election under this
subsection, and
``(B) section 6621(a)(2) shall be applied by substituting
`5 percentage points' for `3 percentage points' in
subparagraph (B) thereof.
``(c) Covered Expatriate.--For purposes of this section--
``(1) In general.--Except as provided in paragraph (2), the
term `covered expatriate' means an expatriate.
``(2) Exceptions.--An individual shall not be treated as a
covered expatriate if--
``(A) the individual--
``(i) became at birth a citizen of the United States and a
citizen of another country and, as of the expatriation date,
continues to be a citizen of, and is taxed as a resident of,
such other country, and
``(ii) has not been a resident of the United States (as
defined in section 7701(b)(1)(A)(ii)) during the 5 taxable
years ending with the taxable year during which the
expatriation date occurs, or
``(B)(i) the individual's relinquishment of United States
citizenship occurs before such individual attains age 18\1/
2\, and
``(ii) the individual has been a resident of the United
States (as so defined) for not more than 5 taxable years
before the date of relinquishment.
``(d) Exempt Property; Special Rules for Pension Plans.--
``(1) Exempt property.--This section shall not apply to the
following:
``(A) United states real property interests.--Any United
States real property interest (as defined in section
897(c)(1)), other than stock of a United States real property
holding corporation which does not, on the day before the
expatriation date, meet the requirements of section
897(c)(2).
``(B) Specified property.--Any property or interest in
property not described in subparagraph (A) which the
Secretary specifies in regulations.
``(2) Special rules for certain retirement plans.--
``(A) In general.--If a covered expatriate holds on the day
before the expatriation date any interest in a retirement
plan to which this paragraph applies--
``(i) such interest shall not be treated as sold for
purposes of subsection (a)(1), but
``(ii) an amount equal to the present value of the
expatriate's nonforfeitable accrued benefit shall be treated
as having been received by such individual on such date as a
distribution under the plan.
``(B) Treatment of subsequent distributions.--In the case
of any distribution on or after the expatriation date to or
on behalf of the covered expatriate from a plan from which
the expatriate was treated as receiving a distribution under
subparagraph (A), the amount otherwise includible in gross
income by reason of the subsequent distribution shall be
reduced by the excess of the amount includible in gross
income under subparagraph (A) over any portion of such amount
to which this subparagraph previously applied.
``(C) Treatment of subsequent distributions by plan.--For
purposes of this title, a retirement plan to which this
paragraph applies, and any person acting on the plan's
behalf, shall treat any subsequent distribution described in
subparagraph (B) in the same manner as such distribution
would be treated without regard to this paragraph.
``(D) Applicable plans.--This paragraph shall apply to--
``(i) any qualified retirement plan (as defined in section
4974(c)),
``(ii) an eligible deferred compensation plan (as defined
in section 457(b)) of an eligible employer described in
section 457(e)(1)(A), and
``(iii) to the extent provided in regulations, any foreign
pension plan or similar retirement arrangements or programs.
``(e) Definitions.--For purposes of this section--
``(1) Expatriate.--The term `expatriate' means--
``(A) any United States citizen who relinquishes
citizenship, and
``(B) any long-term resident of the United States who--
``(i) ceases to be a lawful permanent resident of the
United States (within the meaning of section 7701(b)(6)), or
``(ii) commences to be treated as a resident of a foreign
country under the provisions of a tax treaty between the
United States and the foreign country and who does not waive
the benefits of such treaty applicable to residents of the
foreign country.
``(2) Expatriation date.--The term `expatriation date'
means--
``(A) the date an individual relinquishes United States
citizenship, or
``(B) in the case of a long-term resident of the United
States, the date of the event described in clause (i) or (ii)
of paragraph (1)(B).
``(3) Relinquishment of citizenship.--A citizen shall be
treated as relinquishing United States citizenship on the
earliest of--
``(A) the date the individual renounces such individual's
United States nationality before a diplomatic or consular
officer of the United States pursuant to paragraph (5) of
section 349(a) of the Immigration and Nationality Act (8
U.S.C. 1481(a)(5)),
``(B) the date the individual furnishes to the United
States Department of State a signed statement of voluntary
relinquishment of United States nationality confirming the
performance of an act of expatriation specified in paragraph
(1), (2), (3), or (4) of section 349(a) of the Immigration
and Nationality Act (8 U.S.C. 1481(a)(1)-(4)),
``(C) the date the United States Department of State issues
to the individual a certificate of loss of nationality, or
``(D) the date a court of the United States cancels a
naturalized citizen's certificate of naturalization.

Subparagraph (A) or (B) shall not apply to any individual
unless the renunciation or voluntary relinquishment is
subsequently approved by the issuance to the individual of a
certificate of loss of nationality by the United States
Department of State.
``(4) Long-term resident.--The term `long-term resident'
has the meaning given to such term by section 877(e)(2).
``(f) Special Rules Applicable to Beneficiaries' Interests
in Trust.--
``(1) In general.--Except as provided in paragraph (2), if
an individual is determined under paragraph (3) to hold an
interest in a trust on the day before the expatriation date--
``(A) the individual shall not be treated as having sold
such interest,
``(B) such interest shall be treated as a separate share in
the trust, and
``(C)(i) such separate share shall be treated as a separate
trust consisting of the assets allocable to such share,
``(ii) the separate trust shall be treated as having sold
its assets on the day before the expatriation date for their
fair market value and as having distributed all of its assets
to the individual as of such time, and
``(iii) the individual shall be treated as having
recontributed the assets to the separate trust.

Subsection (a)(2) shall apply to any income, gain, or loss of
the individual arising from a distribution described in
subparagraph (C)(ii). In determining the amount of such
distribution, proper adjustments shall be made for
liabilities of the trust allocable to an individual's share
in the trust.
``(2) Special rules for interests in qualified trusts.--
``(A) In general.--If the trust interest described in
paragraph (1) is an interest in a qualified trust--
``(i) paragraph (1) and subsection (a) shall not apply, and
``(ii) in addition to any other tax imposed by this title,
there is hereby imposed on each distribution with respect to
such interest a tax in the amount determined under
subparagraph (B).
``(B) Amount of tax.--The amount of tax under subparagraph
(A)(ii) shall be equal to the lesser of--
``(i) the highest rate of tax imposed by section 1(e) for
the taxable year which includes the day before the
expatriation date, multiplied by the amount of the
distribution, or
``(ii) the balance in the deferred tax account immediately
before the distribution determined without regard to any
increases under subparagraph (C)(ii) after the 30th day
preceding the distribution.
``(C) Deferred tax account.--For purposes of subparagraph
(B)(ii)--
``(i) Opening balance.--The opening balance in a deferred
tax account with respect to any trust interest is an amount
equal to the tax which would have been imposed on the
allocable expatriation gain with respect to the trust
interest if such gain had been included in gross income under
subsection (a).
``(ii) Increase for interest.--The balance in the deferred
tax account shall be increased by the amount of interest
determined (on the balance in the account at the time the
interest accrues), for periods after the 90th day after the
expatriation date, by using the rates and method applicable
under section 6621 for underpayments of tax for such periods,
except that section 6621(a)(2) shall be applied by
substituting `5 percentage points' for `3 percentage points'
in subparagraph (B) thereof.
``(iii) Decrease for taxes previously paid.--The balance in
the tax deferred account shall be reduced--

``(I) by the amount of taxes imposed by subparagraph (A) on
any distribution to the person holding the trust interest,
and
``(II) in the case of a person holding a nonvested
interest, to the extent provided in regulations, by the
amount of taxes imposed by subparagraph (A) on distributions
from the trust with respect to nonvested interests not held
by such person.

``(D) Allocable expatriation gain.--For purposes of this
paragraph, the allocable expatriation gain with respect to
any beneficiary's interest in a trust is the amount of

[[Page 7788]]

gain which would be allocable to such beneficiary's vested
and nonvested interests in the trust if the beneficiary held
directly all assets allocable to such interests.
``(E) Tax deducted and withheld.--
``(i) In general.--The tax imposed by subparagraph (A)(ii)
shall be deducted and withheld by the trustees from the
distribution to which it relates.
``(ii) Exception where failure to waive treaty rights.--If
an amount may not be deducted and withheld under clause (i)
by reason of the distributee failing to waive any treaty
right with respect to such distribution--

``(I) the tax imposed by subparagraph (A)(ii) shall be
imposed on the trust and each trustee shall be personally
liable for the amount of such tax, and
``(II) any other beneficiary of the trust shall be entitled
to recover from the distributee the amount of such tax
imposed on the other beneficiary.

Such tax shall be imposed on the trust and each trustee shall
be personally liable for the amount of such tax and any other
beneficiary of the trust shall be entitled to recover from
the covered expatriate or the estate the amount of such tax
imposed on the other beneficiary.
``(G) Definitions and special rules.--For purposes of this
paragraph--
``(i) Qualified trust.--The term `qualified trust' means a
trust which is described in section 7701(a)(30)(E).
``(ii) Vested interest.--The term `vested interest' means
any interest which, as of the day before the expatriation
date, is vested in the beneficiary.
``(iii) Nonvested interest.--The term `nonvested interest'
means, with respect to any beneficiary, any interest in a
trust which is not a vested interest. Such interest shall be
determined by assuming the maximum exercise of discretion in
favor of the beneficiary and the occurrence of all
contingencies in favor of the beneficiary.
``(iv) Adjustments.--The Secretary may provide for such
adjustments to the bases of assets in a trust or a deferred
tax account, and the timing of such adjustments, in order to
ensure that gain is taxed only once.
``(v) Coordination with retirement plan rules.--This
subsection shall not apply to an interest in a trust which is
part of a retirement plan to which subsection (d)(2) applies.
``(3) Determination of beneficiaries' interest in trust.--
``(A) Determinations under paragraph (1).--For purposes of
paragraph (1), a beneficiary's interest in a trust shall be
based upon all relevant facts and circumstances, including
the terms of the trust instrument and any letter of wishes or
similar document, historical patterns of trust distributions,
and the existence of and functions performed by a trust
protector or any similar adviser.
``(B) Other determinations.--For purposes of this section--
``(i) Constructive ownership.--If a beneficiary of a trust
is a corporation, partnership, trust, or estate, the
shareholders, partners, or beneficiaries shall be deemed to
be the trust beneficiaries for purposes of this section.
``(ii) Taxpayer return position.--A taxpayer shall clearly
indicate on its income tax return--

``(I) the methodology used to determine that taxpayer's
trust interest under this section, and
``(II) if the taxpayer knows (or has reason to know) that
any other beneficiary of such trust is using a different
methodology to determine such beneficiary's trust interest
under this section.

``(g) Termination of Deferrals, Etc.--In the case of any
covered expatriate, notwithstanding any other provision of
this title--
``(1) any period during which recognition of income or gain
is deferred shall terminate on the day before the
expatriation date, and
``(2) any extension of time for payment of tax shall cease
to apply on the day before the expatriation date and the
unpaid portion of such tax shall be due and payable at the
time and in the manner prescribed by the Secretary.
``(h) Imposition of Tentative Tax.--
``(1) In general.--If an individual is required to include
any amount in gross income under subsection (a) for any
taxable year, there is hereby imposed, immediately before the
expatriation date, a tax in an amount equal to the amount of
tax which would be imposed if the taxable year were a short
taxable year ending on the expatriation date.
``(2) Due date.--The due date for any tax imposed by
paragraph (1) shall be the 90th day after the expatriation
date.
``(3) Treatment of tax.--Any tax paid under paragraph (1)
shall be treated as a payment of the tax imposed by this
chapter for the taxable year to which subsection (a) applies.
``(4) Deferral of tax.--The provisions of subsection (b)
shall apply to the tax imposed by this subsection to the
extent attributable to gain includible in gross income by
reason of this section.
``(i) Special Liens for Deferred Tax Amounts.--
``(1) Imposition of lien.--
``(A) In general.--If a covered expatriate makes an
election under subsection (a)(4) or (b) which results in the
deferral of any tax imposed by reason of subsection (a), the
deferred amount (including any interest, additional amount,
addition to tax, assessable penalty, and costs attributable
to the deferred amount) shall be a lien in favor of the
United States on all property of the expatriate located in
the United States (without regard to whether this section
applies to the property).
``(B) Deferred amount.--For purposes of this subsection,
the deferred amount is the amount of the increase in the
covered expatriate's income tax which, but for the election
under subsection (a)(4) or (b), would have occurred by reason
of this section for the taxable year including the
expatriation date.
``(2) Period of lien.--The lien imposed by this subsection
shall arise on the expatriation date and continue until--
``(A) the liability for tax by reason of this section is
satisfied or has become unenforceable by reason of lapse of
time, or
``(B) it is established to the satisfaction of the
Secretary that no further tax liability may arise by reason
of this section.
``(3) Certain rules apply.--The rules set forth in
paragraphs (1), (3), and (4) of section 6324A(d) shall apply
with respect to the lien imposed by this subsection as if it
were a lien imposed by section 6324A.
``(j) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(b) Inclusion in Income of Gifts and Bequests Received by
United States Citizens and Residents From Expatriates.--
Section 102 (relating to gifts, etc. not included in gross
income) is amended by adding at the end the following new
subsection:
``(d) Gifts and Inheritances From Covered Expatriates.--
``(1) Treatment of gifts and inheritances.--
``(A) In general.--Subsection (a) shall not exclude from
gross income the value of any property acquired by gift,
bequest, devise, or inheritance from a covered expatriate
after the expatriation date.
``(B) Determination of basis.--Notwithstanding sections
1015 or 1022, the basis of any property described in
subparagraph (A) in the hands of the donee or the person
acquiring such property from the decedent shall be equal to
the fair market value of the property at the time of the
gift, bequest, devise, or inheritance.
``(2) Exceptions for transfers otherwise subject to estate
or gift tax.--Paragraph (1) shall not apply to any property
if either--
``(A) the gift, bequest, devise, or inheritance is--
``(i) shown on a timely filed return of tax imposed by
chapter 12 as a taxable gift by the covered expatriate, or
``(ii) included in the gross estate of the covered
expatriate for purposes of chapter 11 and shown on a timely
filed return of tax imposed by chapter 11 of the estate of
the covered expatriate, or
``(B) no such return was timely filed but no such return
would have been required to be filed even if the covered
expatriate were a citizen or long-term resident of the United
States.
``(3) Definitions.--For purposes of this subsection, any
term used in this subsection which is also used in section
877A shall have the same meaning as when used in section
877A.''.
(c) Definition of Termination of United States
Citizenship.--Section 7701(a) is amended by adding at the end
the following new paragraph:
``(50) Termination of united states citizenship.--
``(A) In general.--An individual shall not cease to be
treated as a United States citizen before the date on which
the individual's citizenship is treated as relinquished under
section 877A(e)(3).
``(B) Dual citizens.--Under regulations prescribed by the
Secretary, subparagraph (A) shall not apply to an individual
who became at birth a citizen of the United States and a
citizen of another country.''.
(d) Ineligibility for Visa or Admission to United States.--
(1) In general.--Section 212(a)(10)(E) of the Immigration
and Nationality Act (8 U.S.C. 1182(a)(10)(E)) is amended to
read as follows:
``(E) Former citizens not in compliance with expatriation
revenue provisions.--Any alien who is a former citizen of the
United States who relinquishes United States citizenship
(within the meaning of

[[Page 7789]]

section 877A(e)(3) of the Internal Revenue Code of 1986) and
who is not in compliance with section 877A of such Code
(relating to expatriation) is inadmissible.''.
(2) Availability of information.--
(A) In general.--Section 6103(l) (relating to disclosure of
returns and return information for purposes other than tax
administration) is amended by adding at the end the following
new paragraph:
``(21) Disclosure to deny visa or admission to certain
expatriates.--Upon written request of the Attorney General or
the Attorney General's delegate, the Secretary shall disclose
whether an individual is in compliance with section 877A (and
if not in compliance, any items of noncompliance) to officers
and employees of the Federal agency responsible for
administering section 212(a)(10)(E) of the Immigration and
Nationality Act solely for the purpose of, and to the extent
necessary in, administering such section 212(a)(10)(E).''.
(B) Safeguards.--Section 6103(p)(4) (relating to
safeguards) is amended by striking ``or (20)'' each place it
appears and inserting ``(20), or (21)''.
(3) Effective dates.--The amendments made by this
subsection shall apply to individuals who relinquish United
States citizenship on or after the date of the enactment of
this Act.
(e) Conforming Amendments.--
(1) Section 877 is amended by adding at the end the
following new subsection:
``(h) Application.--This section shall not apply to an
expatriate (as defined in section 877A(e)) whose expatriation
date (as so defined) occurs on or after the date of the
enactment of this subsection.''.
(2) Section 2107 is amended by adding at the end the
following new subsection:
``(f) Application.--This section shall not apply to any
expatriate subject to section 877A.''.
(3) Section 2501(a)(3) is amended by adding at the end the
following new subparagraph:
``(C) Application.--This paragraph shall not apply to any
expatriate subject to section 877A.''.
(4) Section 6039G(a) is amended by inserting ``or 877A''
after ``section 877(b)''.
(5) The second sentence of section 6039G(d) is amended by
inserting ``or who relinquishes United States citizenship
(within the meaning of section 877A(e)(3))'' after ``section
877(a))''.
(f) Clerical Amendment.--The table of sections for subpart
A of part II of subchapter N of chapter 1 is amended by
inserting after the item relating to section 877 the
following new item:

``Sec. 877A. Tax responsibilities of expatriation''.

(g) Effective Date.--
(1) In general.--Except as provided in this subsection, the
amendments made by this section shall apply to expatriates
(within the meaning of section 877A(e) of the Internal
Revenue Code of 1986, as added by this section) whose
expatriation date (as so defined) occurs on or after the date
of the enactment of this Act.
(2) Gifts and bequests.--Section 102(d) of the Internal
Revenue Code of 1986 (as added by subsection (b)) shall apply
to gifts and bequests received on or after the date of the
enactment of this Act, from an individual or the estate of an
individual whose expatriation date (as so defined) occurs
after such date.
(3) Due date for tentative tax.--The due date under section
877A(h)(2) of the Internal Revenue Code of 1986, as added by
this section, shall in no event occur before the 90th day
after the date of the enactment of this Act.

SEC. 536. LIMITATION ON ANNUAL AMOUNTS WHICH MAY BE DEFERRED
UNDER NONQUALIFIED DEFERRED COMPENSATION
ARRANGEMENTS.

(a) In General.--Section 409A(a) of the Internal Revenue
Code of 1986 (relating to inclusion of gross income under
nonqualified deferred compensation plans) is amended--
(1) by striking ``and (4)'' in subclause (I) of paragraph
(1)(A)(i) and inserting ``(4), and (5)'', and
(2) by adding at the end the following new paragraph:
``(5) Annual limitation on aggregate deferred amounts.--
``(A) Limitation.--The requirements of this paragraph are
met if the plan provides that the aggregate amount of
compensation which is deferred for any taxable year with
respect to a participant under the plan may not exceed the
applicable dollar amount for the taxable year.
``(B) Inclusion of future earnings.--If an amount is
includible under paragraph (1) in the gross income of a
participant for any taxable year by reason of any failure to
meet the requirements of this paragraph, any income (whether
actual or notional) for any subsequent taxable year shall be
included in gross income under paragraph (1)(A) in such
subsequent taxable year to the extent such income--
``(i) is attributable to compensation (or income
attributable to such compensation) required to be included in
gross income by reason of such failure (including by reason
of this subparagraph), and
``(ii) is not subject to a substantial risk of forfeiture
and has not been previously included in gross income.
``(C) Aggregation rule.--For purposes of this paragraph,
all nonqualified deferred compensation plans maintained by
all employers treated as a single employer under subsection
(d)(6) shall be treated as 1 plan.
``(D) Applicable dollar amount.--For purposes of this
paragraph--
``(i) In general.--The term `applicable dollar amount'
means, with respect to any participant, the lesser of--

``(I) the average annual compensation which was payable
during the base period to the participant by the employer
maintaining the nonqualified deferred compensation plan (or
any predecessor of the employer) and which was includible in
the participant's gross income for taxable years in the base
period, or
``(II) $1,000,000.

``(ii) Base period.--

``(I) In general.--The term `base period' means, with
respect to any computation year, the 5-taxable year period
ending with the taxable year preceding the computation year.
``(II) Elections made before computation year.--If, before
the beginning of the computation year, an election described
in paragraph (4)(B) is made by the participant to have
compensation for services performed in the computation year
deferred under a nonqualified deferred compensation plan, the
base period shall be the 5-taxable year period ending with
the taxable year preceding the taxable year in which the
election is made.
``(III) Computation year.--For purposes of this clause, the
term `computation year' means any taxable year of the
participant for which the limitation under subparagraph (A)
is being determined.
``(IV) Special rule for employees of less than 5 years.--If
a participant did not perform services for the employer
maintaining the nonqualified deferred compensation plan (or
any predecessor of the employer) during the entire 5-taxable
year period referred to in subparagraph (A) or (B), only the
portion of such period during which the participant performed
such services shall be taken into account.''.

(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2006,
except that--
(A) the amendments shall only apply to amounts deferred
after December 31, 2006 (and to earnings on such amounts),
and
(B) taxable years beginning on or before December 31, 2006,
shall be taken into account in determining the average annual
compensation of a participant during any base period for
purposes of section 409A(a)(5)(D) of the Internal Revenue
Code of 1986 (as added by such amendments).
(2) Guidance relating to certain existing arrangements.--
Not later than 60 days after the date of the enactment of
this Act, the Secretary of the Treasury shall issue guidance
providing a limited period during which a nonqualified
deferred compensation plan adopted before December 31, 2006,
may, without violating the requirements of section 409A(a) of
such Code, be amended--
(A) to provide that a participant may, no later than
December 31, 2007, cancel or modify an outstanding deferral
election with regard to all or a portion of amounts deferred
after December 31, 2006, to the extent necessary for the plan
to meet the requirements of section 409A(a)(5) of such Code
(as added by the amendments made by this section), but only
if amounts subject to the cancellation or modification are,
to the extent not previously included in gross income,
includible in income of the participant when no longer
subject to substantial risk of forfeiture, and
(B) to conform to the requirements of section 409A(a)(5) of
such Code (as added by the amendments made by this section)
with regard to amounts deferred after December 31, 2006.

SEC. 537. INCREASE IN CRIMINAL MONETARY PENALTY LIMITATION
FOR THE UNDERPAYMENT OR OVERPAYMENT OF TAX DUE
TO FRAUD.

(a) In General.--Section 7206 (relating to fraud and false
statements) is amended--
(1) by striking ``Any person who--'' and inserting ``(a) in
general.--'', and
(2) by adding at the end the following new subsection:
``(b) Increase in Monetary Limitation for Underpayment or
Overpayment of Tax Due to Fraud.--If any portion of any
underpayment (as defined in section 6664(a)) or overpayment
(as defined in section 6401(a)) of tax required to be shown
on a return is attributable to fraudulent action described in
subsection (a), the applicable dollar amount under subsection
(a) shall in no event be less than an amount equal to such
portion. A rule similar to the rule under section 6663(b)
shall apply for purposes of determining the portion so
attributable.''.
(b) Increase in Penalties.--
(1) Attempt to evade or defeat tax.--Section 7201 is
amended--
(A) by striking ``$100,000'' and inserting ``$500,000'',
(B) by striking ``$500,000'' and inserting ``$1,000,000'',
and
(C) by striking ``5 years'' and inserting ``10 years''.

[[Page 7790]]

(2) Willful failure to file return, supply information, or
pay tax.--Section 7203 is amended--
(A) in the first sentence--
(i) by striking ``Any person'' and inserting the following:
``(a) In General.--Any person'', and
(ii) by striking ``$25,000'' and inserting ``$50,000'',
(B) in the third sentence, by striking ``section'' and
inserting ``subsection'', and
(C) by adding at the end the following new subsection:
``(b) Aggravated Failure To File.--
``(1) In general.--In the case of any failure described in
paragraph (2), the first sentence of subsection (a) shall be
applied by substituting--
``(A) `felony' for `misdemeanor',
``(B) `$500,000 ($1,000,000' for `$25,000 ($100,000', and
``(C) `10 years' for `1 year'.''.
``(2) Failure described.--A failure described in this
paragraph is a failure to make a return described in
subsection (a) for a period of 3 or more consecutive taxable
years if the aggregate tax liability for such period is not
less than $100,000.''.
(3) Fraud and false statements.--Section 7206(a) (as
redesignated by subsection (a)) is amended--
(A) by striking ``$100,000'' and inserting ``$500,000'',
(B) by striking ``$500,000'' and inserting ``$1,000,000'',
and
(C) by striking ``3 years'' and inserting ``5 years''.
(c) Effective Date.--The amendments made by this section
shall apply to actions, and failures to act, occurring after
the date of the enactment of this Act.

SEC. 538. DOUBLING OF CERTAIN PENALTIES, FINES, AND INTEREST
ON UNDERPAYMENTS RELATED TO CERTAIN OFFSHORE
FINANCIAL ARRANGEMENTS.

(a) Determination of Penalty.--
(1) In general.--Notwithstanding any other provision of
law, in the case of an applicable taxpayer--
(A) the determination as to whether any interest or
applicable penalty is to be imposed with respect to any
arrangement described in paragraph (2), or to any
underpayment of Federal income tax attributable to items
arising in connection with any such arrangement, shall be
made without regard to the rules of subsections (b), (c), and
(d) of section 6664 of the Internal Revenue Code of 1986, and
(B) if any such interest or applicable penalty is imposed,
the amount of such interest or penalty shall be equal to
twice that determined without regard to this section.
(2) Applicable taxpayer.--For purposes of this subsection--
(A) In general.--The term ``applicable taxpayer'' means a
taxpayer which--
(i) has underreported its United States income tax
liability with respect to any item which directly or
indirectly involves--

(I) any financial arrangement which in any manner relies on
the use of offshore payment mechanisms (including credit,
debit, or charge cards) issued by banks or other entities in
foreign jurisdictions, or
(II) any offshore financial arrangement (including any
arrangement with foreign banks, financial institutions,
corporations, partnerships, trusts, or other entities), and

(ii) has neither signed a closing agreement pursuant to the
Voluntary Offshore Compliance Initiative established by the
Department of the Treasury under Revenue Procedure 2003-11
nor voluntarily disclosed its participation in such
arrangement by notifying the Internal Revenue Service of such
arrangement prior to the issue being raised by the Internal
Revenue Service during an examination.
(B) Authority to waive.--The Secretary of the Treasury or
the Secretary's delegate may waive the application of
paragraph (1) to any taxpayer if the Secretary or the
Secretary's delegate determines that the use of such offshore
payment mechanisms is incidental to the transaction and, in
addition, in the case of a trade or business, such use is
conducted in the ordinary course of the type of trade or
business of the taxpayer.
(C) Issues raised.--For purposes of subparagraph (A)(ii),
an item shall be treated as an issue raised during an
examination if the individual examining the return--
(i) communicates to the taxpayer knowledge about the
specific item, or
(ii) has made a request to the taxpayer for information and
the taxpayer could not make a complete response to that
request without giving the examiner knowledge of the specific
item.
(b) Applicable Penalty.--For purposes of this section, the
term ``applicable penalty'' means any penalty, addition to
tax, or fine imposed under chapter 68 of the Internal Revenue
Code of 1986.
(c) Effective Date.--The provisions of this section shall
apply to interest, penalties, additions to tax, and fines
with respect to any taxable year if, as of the date of the
enactment of this Act, the assessment of any tax, penalty, or
interest with respect to such taxable year is not prevented
by the operation of any law or rule of law.

SEC. 539. INCREASE IN PENALTY FOR BAD CHECKS AND MONEY
ORDERS.

(a) In General.--Section 6657 (relating to bad checks) is
amended--
(1) by striking ``$750'' and inserting ``$1,250'', and
(2) by striking ``$15'' and inserting ``$25''.
(b) Effective Date.--The amendments made by this section
apply to checks or money orders received after the date of
the enactment of this Act.

SEC. 540. TREATMENT OF CONTINGENT PAYMENT CONVERTIBLE DEBT
INSTRUMENTS.

any regulations which require original issue discount to be
determined by reference to the comparable yield of a fixed-
rate debt instrument shall be applied as if the regulations
require that such comparable yield be determined by reference
to a fixed-rate debt instrument which is convertible into
stock.
``(B) Special rule.--For purposes of subparagraph (A), the
comparable yield shall be determined without taking into
account the yield resulting from the conversion of a debt
instrument into stock.''.
(b) Cross Reference.--Section 163(e)(6) (relating to cross
references) is amended by adding at the end the following:
``For the treatment of contingent payment convertible debt,
see section 1275(d)(2).''.
(c) Effective Date.--The amendments made by this section
shall apply to debt instruments issued on or after the date
of the enactment of this Act.

SEC. 541. EXTENSION OF IRS USER FEES.

Subsection (c) of section 7528 (relating to Internal
Revenue Service user fees) is amended by striking ``September
30, 2014'' and inserting ``September 30, 2016''.

SEC. 542. MODIFICATION OF COLLECTION DUE PROCESS PROCEDURES
FOR EMPLOYMENT TAX LIABILITIES.

(a) In General.--Section 6330(f) (relating to jeopardy and
State refund collection) is amended--
(1) by striking ``; or'' at the end of paragraph (1) and
inserting a comma,
(2) by adding ``or'' at the end of paragraph (2), and
(3) by inserting after paragraph (2) the following new
paragraph:
``(3) the Secretary has served a levy in connection with
the collection of taxes under chapter 21, 22, 23, or 24,''.
(b) Effective Date.--The amendments made by this section
shall apply to levies issued on or after the date that is 120
days after the date of the enactment of this Act.

SEC. 543. MODIFICATIONS TO WHISTLEBLOWER REFORMS.

[[Page 7791]]

the direction and control of the Whistleblower Office or the
office assigned to investigate the matter under subparagraph
(A). No individual or legal representative whose assistance
is so requested may by reason of such request represent
himself or herself as an employee of the Federal Government.
``(B) Funding of assistance.--From the amounts available
for expenditure under subsection (b), the Whistleblower
Office may, with the agreement of the individual described in
subsection (b), reimburse the costs incurred by any legal
representative of such individual in providing assistance
described in subparagraph (A).
``(d) Reports.--The Secretary shall each year conduct a
study and report to Congress on the use of this section,
including--
``(1) an analysis of the use of this section during the
preceding year and the results of such use, and
``(2) any legislative or administrative recommendations
regarding the provisions of this section and its
application.''.
(2) Conforming amendment.--Section 406 of division A of the
Tax Relief and Health Care Act of 2006 is amended by striking
subsections (b) and (c).
(3) Report on implementation.--Not later than 6 months
after the date of the enactment of this Act, the Secretary of
the Treasury shall submit to Congress a report on the
establishment and operation of the Whistleblower Office under
section 7623(c) of the Internal Revenue Code of 1986.
(c) Publicity of Award Appeals.--Paragraph (4) of section
7623(b), as added by the Tax Relief and Health Care Act of
2006, is amended to read as follows:
``(4) Appeal of award determination.--
``(A) In general.--Any determination regarding an award
under paragraph (1), (2), or (3) may, within 30 days of such
determination, be appealed to the Tax Court (and the Tax
Court shall have jurisdiction with respect to such matter).
``(B) Publicity of appeals.--Notwithstanding sections 7458
and 7461, the Tax Court may, in order to preserve the
anonymity, privacy, or confidentiality of any person under
this subsection, provide by rules adopted under section 7453
that portions of filings, hearings, testimony, evidence, and
reports in connection with proceedings under this subsection
may be closed to the public or to inspection by the
public.''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to information
provided on or after the date of the enactment of this Act.
(2) Publicity of award appeals.--The amendment made by
subsection (c) shall take effect as if included in the
amendments made by section 406 of the Tax Relief and Health
Care Act of 2006.

SEC. 544. MODIFICATIONS OF DEFINITION OF EMPLOYEES COVERED BY
DENIAL OF DEDUCTION FOR EXCESSIVE EMPLOYEE
REMUNERATION.

(a) In General.--Paragraph (3) of section 162(m) is amended
to read as follows:
``(3) Covered employee.--For purposes of this subsection,
the term `covered employee' means, with respect to any
taxpayer for any taxable year, an individual who--
``(A) was the chief executive officer of the taxpayer, or
an individual acting in such a capacity, at any time during
the taxable year,
``(B) is 1 of the 4 highest compensated officers of the
taxpayer for the taxable year (other than the individual
described in subparagraph (A)), or
``(C) was a covered employee of the taxpayer (or any
predecessor) for any preceding taxable year beginning after
December 31, 2006.
``In the case of an individual who was a covered employee
for any taxable year beginning after December 31, 2006, the
term `covered employee' shall include a beneficiary of such
employee with respect to any remuneration for services
performed by such employee as a covered employee (whether or
not such services are performed during the taxable year in
which the remuneration is paid).''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2006.

SEC. 545. INCREASE IN AGE OF MINOR CHILDREN WHOSE UNEARNED
INCOME IS TAXED AS IF PARENT'S INCOME.

``(I) who has not attained age 24 before the close of such
taxable year, 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)) for such taxable year, and''.

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

SEC. 546. INCREASE IN INFORMATION RETURN PENALTIES.

(a) Failure to File Correct Information Returns.--
(1) In general.--Section 6721(a)(1) is amended--
(A) by striking ``$50'' and inserting ``$250'', and
(B) by striking ``$250,000'' and inserting ``$3,000,000''.
(2) Reduction where correction in specified period.--
(A) Correction within 30 days.--Section 6721(b)(1) is
amended--
(i) by striking ``$15'' and inserting ``$50'',
(ii) by striking ``$50'' and inserting ``$250'', and
(iii) by striking ``$75,000'' and inserting ``$500,000''.
(B) Failures corrected on or before august 1.--Section
6721(b)(2) is amended--
(i) by striking ``$30'' and inserting ``$100'',
(ii) by striking ``$50'' and inserting ``$250'', and
(iii) by striking ``$150,000'' and inserting
``$1,500,000''.
(3) Lower limitation for persons with gross receipts of not
more than $5,000,000.--Section 6721(d)(1) is amended--
(A) in subparagraph (A)--
(i) by striking ``$100,000'' and inserting ``$1,000,000'',
and
(ii) by striking ``$250,000'' and inserting ``$3,000,000'',
(B) in subparagraph (B)--
(i) by striking ``$25,000'' and inserting ``$175,000'', and
(ii) by striking ``$75,000'' and inserting ``$500,000'',
and
(C) in subparagraph (C)--
(i) by striking ``$50,000'' and inserting ``$500,000'', and
(ii) by striking ``$150,000'' and inserting ``$1,500,000''.
(4) Penalty in case of intentional disregard.--Section
6721(e) is amended--
(A) by striking ``$100'' in paragraph (2) and inserting
``$500'',
(B) by striking ``$250,000'' in paragraph (3)(A) and
inserting ``$3,000,000''.
(b) Failure to Furnish Correct Payee Statements.--
(1) In general.--Section 6722(a) is amended--
(A) by striking ``$50'' and inserting ``$250'', and
(B) by striking ``$100,000'' and inserting ``$1,000,000''.
(2) Penalty in case of intentional disregard.--Section
6722(c) is amended--
(A) by striking ``$100'' in paragraph (1) and inserting
``$500'', and
(B) by striking ``$100,000'' in paragraph (2)(A) and
inserting ``$1,000,000''.
(c) Failure to Comply With Other Information Reporting
Requirements.--Section 6723 is amended--
(1) by striking ``$50'' and inserting ``$250'', and
(2) by striking ``$100,000'' and inserting ``$1,000,000''.
(d) Effective Date.--The amendments made by this section
shall apply with respect to information returns required to
be filed on or after January 1, 2008.

SEC. 547. E-FILING REQUIREMENT FOR CERTAIN LARGE
ORGANIZATIONS.

(a) In General.--The first sentence of section 6011(e)(2)
is amended to read as follows: ``In prescribing regulations
under paragraph (1), the Secretary shall take into account
(among other relevant factors) the ability of the taxpayer to
comply at reasonable cost with the requirements of such
regulations.''.
(b) Conforming Amendment.--Section 6724 is amended by
striking subsection (c).
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending on or after December 31,
2008.

SEC. 548. EXPANSION OF IRS ACCESS TO INFORMATION IN NATIONAL
DIRECTORY OF NEW HIRES FOR TAX ADMINISTRATION
PURPOSES.

(a) In General.--Paragraph (3) of section 453(j) of the
Social Security Act (42 U.S.C. 653(j)) is amended to read as
follows:
``(3) Administration of federal tax laws.--The Secretary of
the Treasury shall have access to the information in the
National Directory of New Hires for purposes of administering
the Internal Revenue Code of 1986.''.
(b) Effective Date.--The amendment made by this section
shall take effect on the date of the enactment of this Act.

SEC. 549. DISCLOSURE OF PRISONER RETURN INFORMATION TO
FEDERAL BUREAU OF PRISONS.

[[Page 7792]]

Prisons may redisclose information received under
subparagraph (A)--
``(i) only to those officers and employees of the Bureau
who are personally and directly engaged in taking
administrative actions to address violations of
administrative rules and regulations of the prison facility,
and
``(ii) solely for the purposes described in subparagraph
(C).
``(C) Restriction on use of disclosed information.--Return
information disclosed under this paragraph may be used only
for the purposes of--
``(i) preventing the filing of false or fraudulent returns;
and
``(ii) taking administrative actions against individuals
who have filed or attempted to file false or fraudulent
returns.''.
(2) Procedures and record keeping related to disclosure.--
Subsection (p)(4) of section 6103 is amended--
(A) by striking ``(14), or (17)'' in the matter before
subparagraph (A) and inserting ``(14), (17), or (21)'', and
(B) by striking ``(9), or (16)'' in subparagraph (F)(i) and
inserting ``(9), (16), or (21)''.
(3) Evaluation by treasury inspector general for tax
administration.--Paragraph (3) of section 7803(d) is amended
by striking ``and'' at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and
inserting ``; and'', and by adding at the end the following
new subparagraph:
``(C) not later than 3 years after the date of the
enactment of section 6103(l)(21), submit a written report to
Congress on the implementation of such section.''.
(b) Annual Reports.--
(1) In general.--The Secretary of the Treasury shall submit
to Congress and make publicly available an annual report on
the filing of false and fraudulent returns by individuals
incarcerated in Federal and State prisons.
(2) Contents of report.--The report submitted under
paragraph (1) shall contain statistics on the number of false
or fraudulent returns associated with each Federal and State
prison and such other information that the Secretary
determines is appropriate.
(3) Exchange of information.--For the purpose of gathering
information necessary for the reports required under
paragraph (1), the Secretary of the Treasury shall enter into
agreements with the head of the Federal Bureau of Prisons and
the heads of State agencies charged with responsibility for
administration of State prisons under which the head of the
Bureau or Agency provides to the Secretary not less
frequently than annually the names and other identifying
information of prisoners incarcerated at each facility
administered by the Bureau or Agency.
(c) Effective Date.--The amendments made by this section
shall apply to disclosures on or after January 1, 2008.

SEC. 550. MODIFICATION OF CRIMINAL PENALTIES FOR WILLFUL
FAILURES INVOLVING TAX PAYMENTS AND FILING
REQUIREMENTS.

(a) Increase in Penalty for Attempt to Evade or Defeat
Tax.--Section 7201 (relating to attempt to evade or defeat
tax) is amended--
(1) by striking ``$100,000'' and inserting ``$500,000'',
(2) by striking ``$500,000'' and inserting ``$1,000,000'',
and
(3) by striking ``5 years'' and inserting ``10 years''.
(b) Modification of Penalties for Willful Failure to File
Return, Supply Information, or Pay Tax.--
(1) In general.--Section 7203 (relating to willful failure
to file return, supply information, or pay tax) is amended--
(A) in the first sentence--
(i) by striking ``Any person'' and inserting the following:
``(a) In General.--Any person'', and
(ii) by striking ``$25,000'' and inserting ``$50,000'',
(B) in the third sentence, by striking ``section'' and
inserting ``subsection'', and
(C) by adding at the end the following new subsection:
``(b) Aggravated Failure to File.--
``(1) In general.--In the case of any failure described in
paragraph (2), the first sentence of subsection (a) shall be
applied by substituting--
``(A) `felony' for `misdemeanor',
``(B) `$250,000 ($500,000' for `$50,000 ($100,000', and
``(C) `5 years' for `1 year'.
``(2) Failure described.--A failure described in this
paragraph is--
``(A) a failure to make a return described in subsection
(a) for any 3 taxable years occurring during any period of 5
consecutive taxable years if the aggregate tax liability for
such period is not less than $50,000, or
``(B) a failure to make a return if the tax liability
giving rise to the requirement to make such return is
attributable to an activity which is a felony under any State
or Federal law.''.
(2) Penalty may be applied in addition to other
penalties.--Section 7204 (relating to fraudulent statement or
failure to make statement to employees) is amended by
striking ``the penalty provided in section 6674'' and
inserting ``the penalties provided in sections 6674 and
7203(b)''.
(c) Fraud and False Statements.--Section 7206 (relating to
fraud and false statements) is amended--
(1) by striking ``$100,000'' and inserting ``$500,000'',
(2) by striking ``$500,000'' and inserting ``$1,000,000'',
and
(3) by striking ``3 years'' and inserting ``5 years''.
(d) Increase in Monetary Limitation for Underpayment or
Overpayment of Tax Due to Fraud.--Section 7206 (relating to
fraud and false statements), as amended by subsection (a)(3),
is amended--
(1) by striking ``Any person who--'' and inserting ``(a) In
General.--Any person who--'', and
(2) by adding at the end the following new subsection:
``(b) Increase in Monetary Limitation for Underpayment or
Overpayment of Tax Due to Fraud.--If any portion of any
underpayment (as defined in section 6664(a)) or overpayment
(as defined in section 6401(a)) of tax required to be shown
on a return is attributable to fraudulent action described in
subsection (a), the applicable dollar amount under subsection
(a) shall in no event be less than an amount equal to such
portion. A rule similar to the rule under section 6663(b)
shall apply for purposes of determining the portion so
attributable.''.
(e) Effective Date.--The amendments made by this section
shall apply to actions, and failures to act, occurring after
the date of the enactment of this Act.

SEC. 551. UNDERSTATEMENT OF TAXPAYER LIABILITY BY RETURN
PREPARERS.

[[Page 7793]]

(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. 552. PENALTY FOR FILING ERRONEOUS REFUND CLAIMS.

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

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

``(a) Civil Penalty.--If a claim for refund or credit with
respect to income tax (other than a claim for a refund or
credit relating to the earned income credit under section 32)
is made for an excessive amount, unless it is shown that the
claim for such excessive amount has a reasonable basis, the
person making such claim shall be liable for a penalty in an
amount equal to 20 percent of the excessive amount.
``(b) Excessive Amount.--For purposes of this section, the
term `excessive amount' means in the case of any person the
amount by which the amount of the claim for refund or credit
for any taxable year exceeds the amount of such claim
allowable under this title for such taxable year.
``(c) Coordination With Other Penalties.--This section
shall not apply to any portion of the excessive amount of a
claim for refund or credit on which a penalty is imposed
under part II of subchapter A of chapter 68.''.
(b) Conforming Amendment.--The table of sections for part I
of subchapter B of chapter 68 is amended by inserting after
the item relating to section 6675 the following new item:

``Sec. 6676. Erroneous claim for refund or credit.''.
(c) Effective Date.--The amendments made by this section
shall apply to any claim--
(1) filed or submitted after the date of the enactment of
this Act, or
(2) filed or submitted prior to such date but not withdrawn
before the date which is 30 days after such date of
enactment.

SEC. 553. 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 ``24-month period''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to notices
provided by the Secretary of the Treasury, or his delegate
after the date which is 6 months after the date of the
enactment of this Act.
(2) Exception for certain taxpayers.--The amendments made
by this section shall not apply to any taxpayer with respect
to whom a suspension of any interest, penalty, addition to
tax, or other amount is in effect on the date which is 6
months after the date of the enactment of this Act.

SEC. 554. ADDITIONAL REASONS FOR SECRETARY TO TERMINATE
INSTALLMENT AGREEMENTS.

(a) In General.--Section 6159(b)(4) (relating to failure to
pay an installment or any other tax liability when due or to
provide requested financial information) is amended by
striking ``or'' at the end of subparagraph (B), by
redesignating subparagraph (C) as subparagraph (E), and by
inserting after subparagraph (B) the following new
subparagraphs:
``(C) to make a Federal tax deposit under section 6302 at
the time such deposit is required to be made,
``(D) to file a return of tax imposed under this title by
its due date (including extensions), or''.
(b) Conforming Amendment.--The heading for paragraph (4) of
section 6159(b) is amended by striking ``Failure to pay an
installment or any other tax liability when due or to provide
requested financial information'' and inserting ``Failure to
make payments or deposits or file returns when due or to
provide requested financial information''.
(c) Effective Date.--The amendments made by this section
shall apply to failures occurring on or after the date of the
enactment of this Act.

SEC. 555. OFFICE OF CHIEF COUNSEL REVIEW OF OFFERS-IN-
COMPROMISE.

(a) In General.--Section 7122(b) (relating to record) is
amended by striking ``Whenever a compromise'' and all that
follows through ``his delegate, with his reasons therefor''
and inserting ``If the Secretary determines that an opinion
of the General Counsel for the Department of the Treasury, or
the Counsel's delegate, is required with respect to a
compromise, there shall be placed on file in the office of
the Secretary such opinion, with the reasons therefor''.
(b) Conforming Amendments.--Section 7122(b) is amended by
striking the second and third sentences.
(c) Effective Date.--The amendments made by this section
shall apply to offers-in-compromise submitted or pending on
or after the date of the enactment of this Act.

SEC. 556. AUTHORIZATION FOR FINANCIAL MANAGEMENT SERVICE
RETENTION OF TRANSACTION FEES FROM LEVIED
AMOUNTS.

[[Page 7794]]

(b) Retention of Fees by Financial Management Service.--The
Financial Management Service may retain the amount of any
transaction fee imposed under section 6331(h)(4) of the
Internal Revenue Code of 1986. Any amount retained by the
Financial Management Service under that section shall be
deposited into the account of the Department of the Treasury
under section 3711(g)(7) of title 31, United States Code.
(c) Effective Date.--The amendment made by this section
shall apply to amounts levied after the date of the enactment
of this Act.

SEC. 557. AUTHORITY FOR UNDERCOVER OPERATIONS.

Paragraph (6) of section 7608(c) (relating to application
of section) is amended by striking ``2007'' both places it
appears and inserting ``2008''.

SEC. 558. INCREASE IN PENALTY EXCISE TAXES ON THE POLITICAL
AND EXCESS LOBBYING ACTIVITIES OF SECTION
501(C)(3) ORGANIZATIONS.

(a) Taxes on Disqualifying Lobbying Expenditures of Certain
Organizations.--
(1) In general.--Section 4912(a) (relating to tax on
organization) is amended by striking ``5 percent'' and
inserting ``10 percent''.
(2) Tax on management.--Section 4912(b) is amended by
striking ``5 percent'' and inserting ``10 percent''.
(b) Taxes on Political Expenditures of Section 501(c)(3)
Organizations.--
(1) In general.--Section 4955(a) (relating to initial
taxes) is amended--
(A) in paragraph (1), by striking ``10 percent'' and
inserting ``20 percent'', and
(B) in paragraph (2), by striking ``2\1/2\ percent'' and
inserting ``5 percent''.
(2) Increased limitation for managers.--Section 4955(c)(2)
is amended--
(A) by striking ``$5,000'' and inserting ``$10,000'', and
(B) by striking ``$10,000'' and inserting ``$20,000''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. 559. INCREASED PENALTY FOR FAILURE TO FILE FOR EXEMPT
ORGANIZATIONS.

(a) In General.--Subparagraph (A) of section 6652(c)(1)
(relating to annual returns under section 6033(a)(1) or
6012(a)(6)) is amended by adding at the end the following new
sentence: ``In the case of an organization having gross
receipts exceeding $25,000,000 for any year, with respect to
the return so required, the first sentence of this
subparagraph shall be applied by substituting `$250' for
`$20' and, in lieu of applying the second sentence of this
subparagraph, the maximum penalty under this subparagraph
shall not exceed $125,000.''.
(b) Conforming Amendment.--The third sentence of section
6652(c)(1)(A) is amended by inserting ``but not exceeding
$25,000,000'' after ``$1,000,000''.
(c) Effective Date.--The amendments made by this section
shall apply to returns required to be filed on or after
January 1, 2008.

SEC. 560. PENALTIES FOR FAILURE TO FILE CERTAIN RETURNS
ELECTRONICALLY.

(a) In General.--Part I of subchapter A of chapter 68
(relating to additions to the tax, additional amounts, and
assessable penalties) is amended by inserting after section
6652 the following new section:

``SEC. 6652A. FAILURE TO FILE CERTAIN RETURNS ELECTRONICALLY.

``(a) In General.--If a person fails to file a return
described in section 6651 or 6652(c)(1) in electronic form as
required under section 6011(e)--
``(1) such failure shall be treated as a failure to file
such return (even if filed in a form other than electronic
form), and
``(2) the penalty imposed under section 6651 or 6652(c),
whichever is appropriate, shall be equal to the greater of--
``(A) the amount of the penalty under such section,
determined without regard to this section, or
``(B) the amount determined under subsection (b).
``(b) Amount of Penalty.--
``(1) In general.--Except as provided in paragraphs (2) and
(3), the penalty determined under this subsection is equal to
$40 for each day during which a failure described under
subsection (a) continues. The maximum penalty under this
paragraph on failures with respect to any 1 return shall not
exceed the lesser of $20,000 or 10 percent of the gross
receipts of the taxpayer for the year.
``(2) Increased penalties for taxpayers with gross receipts
between $1,000,000 and $100,000,000.--
``(A) Taxpayers with gross receipts between $1,000,000 and
$25,000,000.--In the case of a taxpayer having gross receipts
exceeding $1,000,000 but not exceeding $25,000,000 for any
year--
``(i) the first sentence of paragraph (1) shall be applied
by substituting `$200' for `$40', and
``(ii) in lieu of applying the second sentence of paragraph
(1), the maximum penalty under paragraph (1) shall not exceed
$100,000.
``(B) Taxpayers with gross receipts over $25,000,000.--
Except as provided in paragraph (3), in the case of a
taxpayer having gross receipts exceeding $25,000,000 for any
year--
``(i) the first sentence of paragraph (1) shall be applied
by substituting `$500' for `$40', and
``(ii) in lieu of applying the second sentence of paragraph
(1), the maximum penalty under paragraph (1) shall not exceed
$250,000.
``(3) Increased penalties for certain taxpayers with gross
receipts exceeding $100,000,000.--In the case of a return
described in section 6651--
``(A) Taxpayers with gross receipts between $100,000,000
and $250,000,000.--In the case of a taxpayer having gross
receipts exceeding $100,000,000 but not exceeding
$250,000,000 for any year--
``(i) the amount of the penalty determined under this
subsection shall equal the sum of--

``(I) $50,000, plus
``(II) $1,000 for each day during which such failure
continues (twice such amount for each day such failure
continues after the first such 60 days), and

``(ii) the maximum amount under clause (i)(II) on failures
with respect to any 1 return shall not exceed $200,000.
``(B) Taxpayers with gross receipts over $250,000,000.--In
the case of a taxpayer having gross receipts exceeding
$250,000,000 for any year--
``(i) the amount of the penalty determined under this
subsection shall equal the sum of--

``(I) $250,000, plus
``(II) $2,500 for each day during which such failure
continues (twice such amount for each day such failure
continues after the first such 60 days), and

``(ii) the maximum amount under clause (i)(II) on failures
with respect to any 1 return shall not exceed $250,000.
``(C) Exception for certain returns.--Subparagraphs (A) and
(B) shall not apply to any return of tax imposed under
section 512.''.
(b) Clerical Amendment.--The table of sections for part I
of subchapter A of chapter 68 is amended by inserting after
the item relating to section 6652 the following new item:

``Sec. 6652A. Failure to file certain returns electronically.''.
(c) Effective Date.--The amendments made by this section
shall apply to returns required to be filed on or after
January 1, 2008.

PART III--GENERAL PROVISIONS

SEC. 561. ENHANCED COMPLIANCE ASSISTANCE FOR SMALL
BUSINESSES.

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

[[Page 7795]]

develop and distribute such guides. An agency may prepare
guides and apply this section with respect to a rule or a
group of related rules.
``(6) Reporting.--Not later than 1 year after the date of
enactment of the Fair Minimum Wage Act of 2007, and annually
thereafter, the head of each agency shall submit a report to
the Committee on Small Business and Entrepreneurship of the
Senate, the Committee on Small Business of the House of
Representatives, and any other committee of relevant
jurisdiction describing the status of the agency's compliance
with paragraphs (1) through (5).''.
(b) Technical and Conforming Amendment.--Section 211(3) of
the Small Business Regulatory Enforcement Fairness Act of
1996 (5 U.S.C. 601 note) is amended by inserting ``and
entitled'' after ``designated''.

SEC. 562. SMALL BUSINESS CHILD CARE GRANT PROGRAM.

(a) Establishment.--The Secretary of Health and Human
Services (referred to in this section as the ``Secretary'')
shall establish a program to award grants to States, on a
competitive basis, to assist States in providing funds to
encourage the establishment and operation of employer-
operated child care programs.
(b) Application.--To be eligible to receive a grant under
this section, a State shall prepare and submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require,
including an assurance that the funds required under
subsection (e) will be provided.
(c) Amount and Period of Grant.--The Secretary shall
determine the amount of a grant to a State under this section
based on the population of the State as compared to the
population of all States receiving grants under this section.
The Secretary shall make the grant for a period of 3 years.
(d) Use of Funds.--
(1) In general.--A State shall use amounts provided under a
grant awarded under this section to provide assistance to
small businesses (or consortia formed in accordance with
paragraph (3)) located in the State to enable the small
businesses (or consortia) to establish and operate child care
programs. Such assistance may include--
(A) technical assistance in the establishment of a child
care program;
(B) assistance for the startup costs related to a child
care program;
(C) assistance for the training of child care providers;
(D) scholarships for low-income wage earners;
(E) the provision of services to care for sick children or
to provide care to school-aged children;
(F) the entering into of contracts with local resource and
referral organizations or local health departments;
(G) assistance for care for children with disabilities;
(H) payment of expenses for renovation or operation of a
child care facility; or
(I) assistance for any other activity determined
appropriate by the State.
(2) Application.--In order for a small business or
consortium to be eligible to receive assistance from a State
under this section, the small business involved shall prepare
and submit to the State an application at such time, in such
manner, and containing such information as the State may
require.
(3) Preference.--
(A) In general.--In providing assistance under this
section, a State shall give priority to an applicant that
desires to form a consortium to provide child care in a
geographic area within the State where such care is not
generally available or accessible.
(B) Consortium.--For purposes of subparagraph (A), a
consortium shall be made up of 2 or more entities that shall
include small businesses and that may include large
businesses, nonprofit agencies or organizations, local
governments, or other appropriate entities.
(4) Limitations.--With respect to grant funds received
under this section, a State may not provide in excess of
$500,000 in assistance from such funds to any single
applicant.
(e) Matching Requirement.--To be eligible to receive a
grant under this section, a State shall provide assurances to
the Secretary that, with respect to the costs to be incurred
by a covered entity receiving assistance in carrying out
activities under this section, the covered entity will make
available (directly or through donations from public or
private entities) non-Federal contributions to such costs in
an amount equal to--
(1) for the first fiscal year in which the covered entity
receives such assistance, not less than 50 percent of such
costs ($1 for each $1 of assistance provided to the covered
entity under the grant);
(2) for the second fiscal year in which the covered entity
receives such assistance, not less than 66\2/3\ percent of
such costs ($2 for each $1 of assistance provided to the
covered entity under the grant); and
(3) for the third fiscal year in which the covered entity
receives such assistance, not less than 75 percent of such
costs ($3 for each $1 of assistance provided to the covered
entity under the grant).
(f) Requirements of Providers.--To be eligible to receive
assistance under a grant awarded under this section, a child
care provider--
(1) who receives assistance from a State shall comply with
all applicable State and local licensing and regulatory
requirements and all applicable health and safety standards
in effect in the State; and
(2) who receives assistance from an Indian tribe or tribal
organization shall comply with all applicable regulatory
standards.
(g) State-Level Activities.--A State may not retain more
than 3 percent of the amount described in subsection (c) for
State administration and other State-level activities.
(h) Administration.--
(1) State responsibility.--A State shall have
responsibility for administering a grant awarded for the
State under this section and for monitoring covered entities
that receive assistance under such grant.
(2) Audits.--A State shall require each covered entity
receiving assistance under the grant awarded under this
section to conduct an annual audit with respect to the
activities of the covered entity. Such audits shall be
submitted to the State.
(3) Misuse of funds.--
(A) Repayment.--If the State determines, through an audit
or otherwise, that a covered entity receiving assistance
under a grant awarded under this section has misused the
assistance, the State shall notify the Secretary of the
misuse. The Secretary, upon such a notification, may seek
from such a covered entity the repayment of an amount equal
to the amount of any such misused assistance plus interest.
(B) Appeals process.--The Secretary shall by regulation
provide for an appeals process with respect to repayments
under this paragraph.
(i) Reporting Requirements.--
(1) 2-year study.--
(A) In general.--Not later than 2 years after the date on
which the Secretary first awards grants under this section,
the Secretary shall conduct a study to determine--
(i) the capacity of covered entities to meet the child care
needs of communities within States;
(ii) the kinds of consortia that are being formed with
respect to child care at the local level to carry out
programs funded under this section; and
(iii) who is using the programs funded under this section
and the income levels of such individuals.
(B) Report.--Not later than 28 months after the date on
which the Secretary first awards grants under this section,
the Secretary shall prepare and submit to the appropriate
committees of Congress a report on the results of the study
conducted in accordance with subparagraph (A).
(2) 4-year study.--
(A) In general.--Not later than 4 years after the date on
which the Secretary first awards grants under this section,
the Secretary shall conduct a study to determine the number
of child care facilities that are funded through covered
entities that received assistance through a grant awarded
under this section and that remain in operation, and the
extent to which such facilities are meeting the child care
needs of the individuals served by such facilities.
(B) Report.--Not later than 52 months after the date on
which the Secretary first awards grants under this section,
the Secretary shall prepare and submit to the appropriate
committees of Congress a report on the results of the study
conducted in accordance with subparagraph (A).
(j) Definitions.--In this section:
(1) Covered entity.--The term ``covered entity'' means a
small business or a consortium formed in accordance with
subsection (d)(3).
(2) Indian community.--The term ``Indian community'' means
a community served by an Indian tribe or tribal organization.
(3) Indian tribe; tribal organization.--The terms ``Indian
tribe'' and ``tribal organization'' have the meanings given
the terms in section 658P of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858n).
(4) Small business.--The term ``small business'' means an
employer who employed an average of at least 2 but not more
than 50 employees on the business days during the preceding
calendar year.
(5) State.--The term ``State'' has the meaning given the
term in section 658P of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858n).
(k) Application to Indian Tribes and Tribal
Organizations.--In this section:
(1) In general.--Except as provided in subsection (f)(1),
and in paragraphs (2) and (3), the term ``State'' includes an
Indian tribe or tribal organization.
(2) Geographic references.--The term ``State'' includes an
Indian community in subsections (c) (the second and third
place the term appears), (d)(1) (the second place the term
appears), (d)(3)(A) (the second place the term appears), and
(i)(1)(A)(i).
(3) State-level activities.--The term ``State-level
activities'' includes activities at the tribal level.
(l) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section, $50,000,000 for the period of fiscal
years 2008 through 2012.

[[Page 7796]]

(2) Studies and administration.--With respect to the total
amount appropriated for such period in accordance with this
subsection, not more than $2,500,000 of that amount may be
used for expenditures related to conducting studies required
under, and the administration of, this section.
(m) Termination of Program.--The program established under
subsection (a) shall terminate on September 30, 2012.

SEC. 563. STUDY OF UNIVERSAL USE OF ADVANCE PAYMENT OF EARNED
INCOME CREDIT.

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

SEC. 564. SENSE OF THE SENATE CONCERNING PERSONAL SAVINGS.

(a) Findings.--The Senate finds that--
(1) the personal saving rate in the United States is at its
lowest point since the Great Depression, with the rate having
fallen into negative territory;
(2) the United States ranks at the bottom of the Group of
Twenty (G-20) nations in terms of net national saving rate;
(3) approximately half of all the working people of the
United States work for an employer that does not offer any
kind of retirement plan;
(4) existing savings policies enacted by Congress provide
limited incentives to save for low- and moderate-income
families; and
(5) the Social Security program was enacted to serve as the
safest component of a retirement system that also includes
employer-sponsored retirement plans and personal savings.
(b) Sense of the Senate.--It is the sense of the Senate
that--
(1) Congress should enact policies that promote savings
vehicles for retirement that are simple, easily accessible
and provide adequate financial security for all the people of
the United States;
(2) it is important to begin retirement saving as early as
possible to take full advantage of the power of compound
interest; and
(3) regularly contributing money to a financially-sound
investment account is one important method for helping to
achieve one's retirement goals.

SEC. 565. RENEWAL GRANTS FOR WOMEN'S BUSINESS CENTERS.

(a) In General.--Section 29 of the Small Business Act (15
U.S.C. 656) is amended by adding at the end the following:
``(m) Continued Funding for Centers.--
``(1) In general.--A nonprofit organization described in
paragraph (2) shall be eligible to receive, subject to
paragraph (3), a 3-year grant under this subsection.
``(2) Applicability.--A nonprofit organization described in
this paragraph is a nonprofit organization that has received
funding under subsection (b) or (l).
``(3) Application and approval criteria.--
``(A) Criteria.--Subject to subparagraph (B), the
Administrator shall develop and publish criteria for the
consideration and approval of applications by nonprofit
organizations under this subsection.
``(B) Contents.--Except as otherwise provided in this
subsection, the conditions for participation in the grant
program under this subsection shall be the same as the
conditions for participation in the program under subsection
(l), as in effect on the date of enactment of this Act.
``(C) Notification.--Not later than 60 days after the date
of the deadline to submit applications for each fiscal year,
the Administrator shall approve or deny any application under
this subsection and notify the applicant for each such
application.
``(4) Award of grants.--
``(A) In general.--Subject to the availability of
appropriations, the Administrator shall make a grant for the
Federal share of the cost of activities described in the
application to each applicant approved under this subsection.
``(B) Amount.--A grant under this subsection shall be for
not more than $150,000, for each year of that grant.
``(C) Federal share.--The Federal share under this
subsection shall be not more than 50 percent.
``(D) Priority.--In allocating funds made available for
grants under this section, the Administrator shall give
applications under this subsection or subsection (l) priority
over first-time applications under subsection (b).
``(5) Renewal.--
``(A) In general.--The Administrator may renew a grant
under this subsection for additional 3-year periods, if the
nonprofit organization submits an application for such
renewal at such time, in such manner, and accompanied by such
information as the Administrator may establish.
``(B) Unlimited renewals.--There shall be no limitation on
the number of times a grant may be renewed under subparagraph
(A).
``(n) Privacy Requirements.--
``(1) In general.--A women's business center may not
disclose the name, address, or telephone number of any
individual or small business concern receiving assistance
under this section without the consent of such individual or
small business concern, unless--
``(A) the Administrator is ordered to make such a
disclosure by a court in any civil or criminal enforcement
action initiated by a Federal or State agency; or
``(B) the Administrator considers such a disclosure to be
necessary for the purpose of conducting a financial audit of
a women's business center, but a disclosure under this
subparagraph shall be limited to the information necessary
for such audit.
``(2) Administration use of information.--This subsection
shall not--
``(A) restrict Administration access to program activity
data; or
``(B) prevent the Administration from using client
information (other than the information described in
subparagraph (A)) to conduct client surveys.
``(3) Regulations.--The Administrator shall issue
regulations to establish standards for requiring disclosures
during a financial audit under paragraph (1)(B).''.
(b) Repeal.--Section 29(l) of the Small Business Act (15
U.S.C. 656(l)) is repealed effective October 1 of the first
full fiscal year after the date of enactment of this Act.
(c) Transitional Rule.--Notwithstanding any other provision
of law, a grant or cooperative agreement that was awarded
under subsection (l) of section 29 of the Small Business Act
(15 U.S.C. 656), on or before the day before the date
described in subsection (b) of this section, shall remain in
full force and effect under the terms, and for the duration,
of such grant or agreement.

SEC. 566. REPORTS ON ACQUISITIONS OF ARTICLES, MATERIALS, AND
SUPPLIES MANUFACTURED OUTSIDE THE UNITED
STATES.

Section 2 of the Buy American Act (41 U.S.C. 10a) is
amended--
(1) by striking ``Notwithstanding'' and inserting the
following:
``(a) In General.--Notwithstanding''; and
(2) by adding at the end the following:
``(b) Reports.--
``(1) In general.--Not later than 180 days after the end of
each of fiscal years 2007 through 2011, the head of each
Federal agency shall submit to the Committee on Homeland
Security and Governmental Affairs of the Senate and the
Committee on Oversight and Government Reform of the House of
Representatives a report on the amount of the acquisitions
made by the agency in that fiscal year of articles,
materials, or supplies purchased from entities that
manufacture the articles, materials, or supplies outside of
the United States.
``(2) Contents of report.--The report required by paragraph
(1) shall separately include, for the fiscal year covered by
such report--
``(A) the dollar value of any articles, materials, or
supplies that were manufactured outside the United States;
``(B) an itemized list of all waivers granted with respect
to such articles, materials, or supplies under this Act, and
a citation to the treaty, international agreement, or other
law under which each waiver was granted;
``(C) if any articles, materials, or supplies were acquired
from entities that manufacture articles, materials, or
supplies outside the United States, the specific exception
under this section that was used to purchase such articles,
materials, or supplies; and
``(D) a summary of--
``(i) the total procurement funds expended on articles,
materials, and supplies manufactured inside the United
States; and
``(ii) the total procurement funds expended on articles,
materials, and supplies manufactured outside the United
States.
``(3) Public availability.--The head of each Federal agency
submitting a report under paragraph (1) shall make the report
publicly available to the maximum extent practicable.
``(4) Exception for intelligence community.--This
subsection shall not apply to acquisitions made by an agency,
or component thereof, that is an element of the intelligence
community as specified in, or designated under, section 3(4)
of the National Security Act of 1947 (50 U.S.C. 401a(4)).''.

SEC. 567. SENSE OF THE SENATE REGARDING REPEAL OF 1993 INCOME
TAX INCREASE ON SOCIAL SECURITY BENEFITS.

It is the sense of the Senate that Congress should repeal
the 1993 tax increase on Social Security benefits and
eliminate wasteful spending, such as spending on unnecessary
tax loopholes, in order to fully offset the cost of such
repeal and avoid forcing taxpayers to pay substantially more
interest to foreign creditors.

SEC. 568. SENSE OF THE SENATE REGARDING PERMANENT TAX
INCENTIVES TO MAKE EDUCATION MORE AFFORDABLE
AND MORE ACCESSIBLE FOR AMERICAN FAMILIES.

It is the sense of the Senate that Congress should make
permanent the tax incentives to make education more
affordable and more accessible for American families and
eliminate wasteful spending, such as spending on unnecessary
tax loopholes, in order to fully offset the cost of such
incentives and avoid

[[Page 7797]]

forcing taxpayers to pay substantially more interest to
foreign creditors.

SEC. 569. RESPONSIBLE GOVERNMENT CONTRACTOR REQUIREMENTS.

Section 274A(e) of the Immigration and Nationality Act (8
U.S.C. 1324a(e)) is amended by adding at the end the
following new paragraph:
``(10) Prohibition on award of government contracts,
grants, and agreements.--
``(A) Employers with no contracts, grants, or agreements.--
``(i) In general.--Subject to clause (iii) and subparagraph
(C), if an employer who does not hold a Federal contract,
grant, or cooperative agreement is determined to have
violated this section, the employer shall be debarred from
the receipt of a Federal contract, grant, or cooperative
agreement for a period of 7 years.
``(ii) Placement on excluded list.--The Secretary of
Homeland Security or the Attorney General shall advise the
Administrator of General Services of the debarment of an
employer under clause (i) and the Administrator of General
Services shall list the employer on the List of Parties
Excluded from Federal Procurement and Nonprocurement Programs
for a period of 7 years.
``(iii) Waiver.--

``(I) Authority.--The Administrator of General Services, in
consultation with the Secretary of Homeland Security and the
Attorney General, may waive operation of clause (i) or may
limit the duration or scope of a debarment under clause (i)
if such waiver or limitation is necessary to national defense
or in the interest of national security.
``(II) Notification to congress.--If the Administrator
grants a waiver or limitation described in subclause (I), the
Administrator shall submit to each member of the Committee on
the Judiciary of the Senate and of the Committee on the
Judiciary of the House of Representatives immediate notice of
such waiver or limitation.
``(III) Prohibition on judicial review.--The decision of
whether to debar or take alternative action under this clause
shall not be judicially reviewed.

``(B) Employers with contracts, grants, or agreements.--
``(i) In general.--Subject to clause (iii) and subclause
(C), an employer who holds a Federal contract, grant, or
cooperative agreement and is determined to have violated this
section shall be debarred from the receipt of new Federal
contracts, grants, or cooperative agreements for a period of
10 years.
``(ii) Notice to agencies.--Prior to debarring the employer
under clause (i), the Secretary of Homeland Security, in
cooperation with the Administrator of General Services, shall
advise any agency or department holding a contract, grant, or
cooperative agreement with the employer of the Government's
intention to debar the employer from the receipt of new
Federal contracts, grants, or cooperative agreements for a
period of 10 years.
``(iii) Waiver.--

``(I) Authority.--After consideration of the views of any
agency or department that holds a contract, grant, or
cooperative agreement with the employer, the Administrator of
General Services, in consultation with the Secretary of
Homeland Security and the Attorney General, may waive
operation of clause (i) or may limit the duration or scope of
the debarment under clause (i) if such waiver or limitation
is necessary to the national defense or in the interest of
national security.
``(II) Notification to congress.--If the Administrator
grants a waiver or limitation described in subclause (I), the
Administrator shall submit to each member of the Committee on
the Judiciary of the Senate and of the Committee on the
Judiciary of the House of Representatives immediate notice of
such waiver or limitation.
``(III) Prohibition on judicial review.--The decision of
whether to debar or take alternate action under this clause
shall not be judicially reviewed.

``(C) Exemption from penalty for employers participating in
the basic pilot program.--In the case of imposition on an
employer of a debarment from the receipt of a Federal
contract, grant, or cooperative agreement under subparagraph
(A) or (B), that penalty shall be waived if the employer
establishes that the employer was voluntarily participating
in the basic pilot program under section 403(a) of the
Illegal Immigration Reform and Immigrant Responsibility Act
of 1996 (8 U.S.C. 1324a note) at the time of the violations
of this section that resulted in the debarment.''.
______

SA 659. Mr. DORGAN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the end of subtitle F of title IV, add the following:

SEC. 4__. APPLICABILITY OF COUNTRY OF ORIGIN LABELING
REQUIREMENTS.

Section 285 of the Agricultural Marketing Act of 1946 (7
U.S.C. 1638d) is amended by striking ``September 30, 2008''
and inserting ``September 30, 2007''.
______

SA 660. Mrs. BOXER submitted an amendment intended to be proposed by
her to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. MAN-PORTABLE AIR DEFENSE SYSTEMS.

(a) In General.--Notwithstanding any other provision of
law, the Secretary of State may authorize the use of counter-
MANPADS equipment to protect the civil reserve air fleet if
the Secretary determines that--
(1) such use is in the national security or foreign policy
interests of the United States; and
(2) sufficient safeguards are in place to ensure that the
technology relating to such use is not diverted or
compromised.
(b) Definition of MANPADS.--In this section, the term
``MANPADS'' means--
(1) a surface-to-air missile system designed to be man-
portable and carried and fired by a single individual; and
(2) any other surface-to-air missile system designed to be
operated and fired by more than one individual acting as a
crew and portable by several individuals.
(c) Regulations.--The Secretary of State shall, in
consultation with the Secretary of Commerce, promulgate
regulations to carry out the section.
______

SA 661. Mr. KOHL (for himself, Ms. Snowe, Mr. Feingold, and Ms.
Landrieu) submitted an amendment intended to be proposed by him to the
bill H.R. 1591, making emergency supplemental appropriations for the
fiscal year ending September 30, 2007, and for other purposes; which
was ordered to lie on the table; as follows:

At the end of chapter 10 of title III, add the following:
Sec. 4004. With respect to any funds made available under
this or any other Act for the operation, capital improvement,
or management of public housing as authorized under sections
9(d) and 9(e) of the United States Housing Act of 1937 (42
U.S.C. 1437g(d) and (e)), the Secretary of Housing and Urban
Development shall not impose any requirement or guideline
relating to asset management that restricts or limits in any
way the use of capital funds for central office costs
pursuant to section 9(g)(1) or 9(g)(2) of such Act (42 U.S.C.
1437g(g)(1),(2)).
______

SA 662. Mr. DOMENICI submitted an amendment intended to be proposed
by him to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

On page 37, between lines 10 and 11, insert the following:

International Commissions

international boundary and water commission, united states and mexico

For an additional amount for the ``International Boundary
and Water Commission, United States and Mexico'',
$21,700,000, to remain available until expended: Provided,
That of the funds appropriated under this heading, not less
than $11,700,000 shall be made available for sediment removal
and construction associated with the Rio Grande Canalization
project in Dona Ana County, New Mexico: Provided further,
That of the funds appropriated under this heading, not less
than $10,000,000 shall be made available for sediment removal
associated with the Rio Grande Flood Control System
Rehabilitation project in El Paso County, Texas.
______

SA 663. Ms. STABENOW (for herself and Mr. Levin) submitted an
amendment intended to be proposed by her to the bill H.R. 1591, making
emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

On page 60, strike lines 21 and 22 and insert the
following: ``the 2005 season, $18,590,000, to remain
available until expended, of which $15,590,000 shall be for
emergency repairs to breakwaters and dredging of commerical
and shallow draft harbors in the Detroit District.''
______

SA 664. Mr. OBAMA (for himself, Mrs. McCaskill, Ms. Mikulski, Mr.
Harkin, Mr. Kerry, Ms. Cantwell, Mr. Biden, Mr. Bingaman, Mr. Casey,
Mr. Durbin, Mr. Baucus, Ms. Landrieu, and Mr. Leahy) submitted an
amendment intended to be proposed by him to the bill H.R. 1591, making
emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; as follows:

At the end of chapter 3 of title I, add the following:

[[Page 7798]]

SEC. 1316. ADDITIONAL AMOUNT FOR DEFENSE HEALTH PROGRAM FOR
ADDITIONAL MENTAL HEALTH AND RELATED PERSONNEL.

SEC. 1317. ADDITIONAL AMOUNTS FOR OPERATION AND MAINTENANCE
FOR THE MILITARY DEPARTMENTS FOR IMPROVED
PHYSICAL DISABILITY EVALUATIONS OF MEMBERS OF
THE ARMED FORCES.

SEC. 1318. ADDITIONAL AMOUNT FOR DEFENSE HEALTH PROGRAM FOR
WOMEN'S MENTAL HEALTH SERVICES.

SEC. 1319. STUDY ON MENTAL HEALTH AND READJUSTMENT NEEDS OF
MEMBERS AND FORMER MEMBERS OF THE ARMED FORCES
WHO DEPLOYED IN OPERATION IRAQI FREEDOM AND
OPERATION ENDURING FREEDOM AND THEIR FAMILIES.

SA 665. Mr. REED submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 62, line 18, insert before the period at the end
the following: ``: Provided further, That the Secretary of
the Army, acting through the Chief of Engineers, shall use
not more than $3,250,000 of the amounts made available under
this heading to rehabilitate the flood damage reduction
project, Woonsocket, Rhode Island to federal levee standards.
______

SA 666. Mrs. CLINTON submitted an amendment intended to be proposed
by her to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of chapter 5 of title I, add the following:

SEC. 1503. LINKING OF AWARD FEES UNDER DEPARTMENT OF HOMELAND
SECURITY CONTRACTS TO SUCCESSFUL ACQUISITION
OUTCOMES.

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

SA 667. Mrs. CLINTON (for herself and Mr. Feingold) submitted an
amendment intended to be proposed by her to the bill H.R. 1591, making
emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

At the appropriate place, insert the following:

SEC. __. REPORT ON SUPPORTING THE RESTORATION OF DEMOCRATIC
RULE IN ZIMBABWE.

(a) In General.--Not later than 90 days after the date of
the enactment of this Act, the Secretary of State shall
submit to Congress a report detailing a comprehensive plan
for supporting and assisting the people of Zimbabwe in their
efforts to restore democratic rule.
(b) Consultation.--The Secretary of State shall develop the
plan described in subsection (a) in consultation with--
(1) the United Nations;
(2) the African Union;
(3) the Southern African Development Community;
(4) other multilateral organizations; and
(5) interested States.
______

SA 668. Mrs. CLINTON submitted an amendment intended to be proposed
by her to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of chapter 3 of title I, add the following:

SEC. 1316. LINKING OF AWARD FEES UNDER DEPARTMENT OF DEFENSE
CONTRACTS TO SUCCESSFUL ACQUISITION OUTCOMES.

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

SA 669. Mr. LIEBERMAN (for himself, Mrs. Boxer, Mr. Kennedy, Mrs.
Clinton, Ms. Cantwell, Mr. Akaka, Mr. Biden, Ms. Landrieu, and Mr.
Menendez) submitted an amendment intended to be proposed by him to the

[[Page 7799]]

bill H.R. 1591, making emergency supplemental appropriations for the
fiscal year ending September 30, 2007, and for other purposes; which
was ordered to lie on the table; as follows:

At the end of chapter 3 of title I, add the following:

SEC. 1316. ADDITIONAL AMOUNT FOR DEFENSE HEALTH PROGRAM FOR
ENHANCED ACTIVITIES OF THE DEFENSE AND VETERANS
BRAIN INJURY CENTER.

The amount appropriated or otherwise made available by this
chapter under the heading ``Defense Health Program'' is
hereby increased by $17,000,000, with the amount of the
increase to be available for the Defense and Veterans Brain
Injury Center (DVBIC) for activities as follows:
(1) To provide care to members of the Armed Forces with
traumatic brain injury at sites of the Defense and Veterans
Brain Injury Center.
(2) To develop best practices on diagnosis and short-term
and long-term medical care for traumatic brain injury and
disseminate such practices to medical treatment facilities
and centers of the Department of Defense and the Department
of Veterans Affairs.
(3) To conduct outreach and education to families of
members of the Armed Forces and veterans who are affected by
traumatic brain injury.
(4) To investigate promising preventive interventions and
early interventions (including behavioral and pharmacological
treatments) to mitigate the impact of traumatic brain injury.
______

SA 670. Mr. LUGAR submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 56, after line 18, insert the following:

CIVILIAN RESERVE CORPS

Sec. 1713. Of the funds appropriated by this chapter under
the heading ``Economic Support Fund'' and available for Iraq
and Afghanistan, up to $50,000,000 may be made available to
establish and maintain a civilian reserve corps. Funds made
available under this section shall be subject to the regular
notification procedures of the Committees on Appropriations.
______

SA 671. Mr. DOMENICI submitted an amendment intended to be proposed
by him to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

Strike section 413.
______

SA 672. Mr. CRAIG submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

Beginning on page 89, line 8, strike ``available until
expended,'' and all that follows through ``that within 30
days'' on page 90, line 15, and insert ``available until
expended.

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 avialable until expended, of which
$45,000,000 shall be used for facility and equipment upgrades
at the Department of Veterans Affairs polytrauma
rehabilitation centers and the polytrauma network sites:
Provided, That within 30 days
______

SA 673. Mr. HAGEL (for himself, Mr. Harkin, Mr. Grassley, and Mr.
Durbin) submitted an amendment intended to be proposed by him to the
bill H.R. 1591, making emergency supplemental appropriations for the
fiscal year ending September 30, 2007, and for other purposes; which
was ordered to lie on the table; as follows:

At the end of chapter 9 of title II, add the following:

SEC. 2904. PAYMENT OF DEATH GRATUITY WITH RESPECT TO MEMBERS
OF THE ARMED FORCES WITHOUT A SURVIVING SPOUSE
WHO ARE SURVIVED BY A MINOR CHILD.

Section 1477 of title 10, United States Code, is amended--
(1) in subsection (a), by inserting ``, subject to
subsection (d),'' after ``shall be paid'';
(2) by redesignating subsection (d) as subsection (e); and
(3) by inserting after subsection (c) the following new
subsection (d):
``(d)(1) In the case of a person covered by section 1475 or
1476 of this title who has no surviving spouse, but who has
one or more surviving children (as prescribed by subsection
(b)) under the age of 18 years who, after the death of the
person, will be in the custody of a parent (as prescribed by
subsection (c)) or brother or sister (as prescribed by
subsection (a)) of the person, the death gratuity shall be
paid to such parent, brother, or sister as designated by the
person, whether in the full amount payable under section 1478
of this title or in such portion of such amount as the person
shall specify.
``(2) If the amount of the death gratuity specified for
payment under paragraph (1) is less than the full amount of
the death gratuity payable under section 1478 of this title,
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 (2) through (5) of subsection (a).
``(3) An individual designated for the payment of death
gratuity under paragraph (1) shall be treated as an eligible
survivor for purposes of subsection (e).''.
______

SA 674. Mr. COCHRAN (for himself and Mr. Lott) submitted an amendment
intended to be proposed by him to the bill H.R. 1591, making emergency
supplemental appropriations for the fiscal year ending September 30,
2007, and for other purposes; which was ordered to lie on the table; as
follows:

On page 28, beginning on line 14, strike ``the Commander,
Multi-National Forces-Iraq shall submit'' and insert ``the
Commander, Multi-National Forces-Iraq and the United States
Ambassador to Iraq shall jointly submit''.
______

SA 675. Mr. THOMAS submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:
Sec. __. (a) Notwithstanding any other provision of this
Act, the following amounts provided in this Act are rescinded
and shall be null and void:
(1) $24,000,000 for funding sugar beets.
(2) $3,000,000 for funding for sugar cane.
(3) $20,000,000 for insect infestation damage
reimbursements in Nevada, Idaho, and Utah.
(4) $2,100,000,000 for crop production losses.
(5) $1,500,000,000 for livestock production losses.
(6) $100,000,000 for Dairy Production losses.
(7) $13,000,000 for Ewe Lamb Replacement and Retention
program.
(8) $32,000,000 for Livestock Indemnity program.
(9) $40,000,000 for the Tree Assistance program.
(10) $100,000,000 million for Small Agricultural Dependent
Businesses.
(11) $6,000,000 for North Dakota flooded crop land.
(12) $35,000,000 for emergency conservation program.
(13) $50,000,000 for the emergency watershed program.
(14) $115,000,000 for the conservation security program.
(15) $18,000,000 for drought assistance in upper Great
Plains/South West.
(16) Provisions that extend the availability by a year
$3,500,000 in funding for guided tours of the Capitol. Also a
provision allows transfer of funds from holiday ornament
sales in the Senate gift shop.
(17) $165,900,000 for fisheries disaster relief, funded
through NOAA.
(18) $12,000,000 for forest service money (requested by the
President in the non-emergency fiscal year 2008 budget).
(19) $425,000,000 for education grants for rural areas-
(Secure Rural Schools program).
(20) $640,000,000 for LIHEAP.
(21) $25,000,000 for asbestos abatement at the Capitol
Power Plant.
(22) $388,900,000 for funding for backlog of old Department
of Transportation projects.
(23) $22,800,000 for geothermal research and development.
(24) $500,000,000 for wildland fire management.
(25) $13,000,000 for mine safety technology research.
(26) $31,000,000 for 1 month extension of Milk Income Loss
Contract program (MILC).
(27) $50,000,000 for fisheries disaster mitigation fund.
(28) Subsections (a) and (b) of section 1315 (Iraq
withdraw).
(29) Any provision relating to Hurricane Katrina, Hurricane
Rita, Hurricane Wilma, or Hurricane Dennis emergency
assistance.
(30) $100,000,000 for the 2008 Presidential Candidate
Nominating Conventions.
(b) Notwithstanding any other provision of this Act, any
provision relating to the Federal minimum wage and any
related changes to the Internal Revenue Code of 1986, shall
be null and void.
______

SA 676. Mr. FEINGOLD (for himself, Mrs. Boxer, and Mr. Leahy)
submitted an amendment intended to be proposed by him to the bill H.R.
1591, making emergency supplemental appropriations for the fiscal year
ending September 30, 2007, and for other purposes;

[[Page 7800]]

which was ordered to lie on the table; as follows:

At the end of chapter 3 of title I, add the following:

SEC. 1316. PROHIBITION ON USE OF FUNDS TO MAINTAIN THE UNITED
STATES ARMED FORCES IN IRAQ.

(a) Prohibition.--Commencing 120 days after the date of the
enactment of this Act, no funds appropriated or otherwise
made available by this Act may be obligated or expended to
continue the deployment of members of the United States Armed
Forces to Iraq.
(b) Exceptions.--The prohibition under subsection (a) shall
not apply to the use of funds as follows:
(1) To conduct targeted counterterrorism operations in
Iraq.
(2) To provide security for United States infrastructure
and personnel.
(3) To train Iraqi security forces.
(4) To provide for the safe redeployment from Iraq of
members of the United States Armed Forces who are not needed
to perform any of the tasks described in paragraphs (1)
through (3).
______

SA 677. Mr. LEAHY submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 40, line 1, strike ``$5,000,000'' and insert in
lieu thereof ``$10,000,000''.
______

SA 678. Mr. LEAHY submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 44, line 16, strike ``$323,000,000'' and insert in
lieu thereof ``$328,000,000''.
On page 44, line 24, strike ``$45,000,000'' and insert in
lieu thereof ``$50,000,000''.
On page 42, line 20, strike ``$210,000,000'' and insert in
lieu thereof ``$205,000,000''.
______

SA 679. Ms. COLLINS (for herself and Mr. Lieberman) submitted an
amendment intended to be proposed by her to the bill H.R. 1591, making
emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

At the end of title III, add the following new section:

procurement of small arms

Sec. 4104. (a) None of the funds appropriated or otherwise
made available by this Act may be obligated or expended for
the procurement of small arms, including pistols, rifles, and
machine guns of .50 caliber or below, for assistance to the
military or security forces of Iraq or Afghanistan unless
such arms are procured through a contract awarded on or after
January 1, 2007, using competitive procedures that require
full and open competition and that are open to all qualified
manufacturers in the United States.
(b) The restriction under subsection (a) applies to
contracts to procure small arms and associated equipment,
including magazines and cleaning kits.
______

SA 680. Mr. KENNEDY (for himself, Mr. Enzi, Mr. Baucus, and Mr.
Grassley) submitted an amendment intended to be proposed by him to the
bill H.R. 1591, making emergency supplemental appropriations for the
fiscal year ending September 30, 2007, and for other purposes; as
follows:

At the end add the following:

TITLE V--FAIR MINIMUM WAGE AND TAX RELIEF

Subtitle A--Fair Minimum Wage

SEC. 500. SHORT TITLE.

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

SEC. 501. MINIMUM WAGE.

SEC. 502. APPLICABILITY OF MINIMUM WAGE TO THE COMMONWEALTH
OF THE NORTHERN MARIANA ISLANDS.

(a) In General.--Section 6 of the Fair Labor Standards Act
of 1938 (29 U.S.C. 206) shall apply to the Commonwealth of
the Northern Mariana Islands.
(b) Transition.--Notwithstanding subsection (a), the
minimum wage applicable to the Commonwealth of the Northern
Mariana Islands under section 6(a)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(a)(1)) shall be--
(1) $3.55 an hour, beginning on the 60th day after the date
of enactment of this Act; and
(2) increased by $0.50 an hour (or such lesser amount as
may be necessary to equal the minimum wage under section
6(a)(1) of such Act), beginning 6 months after the date of
enactment of this Act and every 6 months thereafter until the
minimum wage applicable to the Commonwealth of the Northern
Mariana Islands under this subsection is equal to the minimum
wage set forth in such section.

Subtitle B--Small Business Tax Incentives

SEC. 510. SHORT TITLE; AMENDMENT OF CODE.

PART I--SMALL BUSINESS TAX RELIEF PROVISIONS

Subpart A--General Provisions

SEC. 511. EXTENSION OF INCREASED EXPENSING FOR SMALL
BUSINESSES.

Section 179 (relating to election to expense certain
depreciable business assets) is amended by striking ``2010''
each place it appears and inserting ``2011''.

(a) Extension of Leasehold and Restaurant Improvements.--
(1) In general.--Clauses (iv) and (v) of section
168(e)(3)(E) (relating to 15-year property) are each amended
by striking ``January 1, 2008'' and inserting ``April 1,
2008''.
(2) Effective date.--The amendment made by this subsection
shall apply to property placed in service after December 31,
2007.
(b) Modification of Treatment of Qualified Restaurant
Property as 15-Year Property for Purposes of Depreciation
Deduction.--
(1) Treatment to include new construction.--Paragraph (7)
of section 168(e) (relating to classification of property) is
amended to read as follows:
``(7) Qualified restaurant property.--The term `qualified
restaurant property' means any section 1250 property which is
a building (or its structural components) or an improvement
to such building if more than 50 percent of such building's
square footage is devoted to preparation of, and seating for
on-premises consumption of, prepared meals.''.
(2) Effective date.--The amendment made by this subsection
shall apply to any property placed in service after the date
of the enactment of this Act, the original use of which
begins with the taxpayer after such date.
(c) Recovery Period for Depreciation of Certain
Improvements to Retail Space.--
(1) 15-year recovery period.--Section 168(e)(3)(E)
(relating to 15-year property) is amended by striking ``and''
at the end of clause (vii), by striking the period at the end
of clause (viii) and inserting ``, and'', and by adding at
the end the following new clause:
``(ix) any qualified retail improvement property placed in
service before April 1, 2008.''.
(2) Qualified retail improvement property.--Section 168(e)
is amended by adding at the end the following new paragraph:
``(8) Qualified retail improvement property.--
``(A) In general.--The term `qualified retail improvement
property' means any improvement to an interior portion of a
building which is nonresidential real property if--
``(i) such portion is open to the general public and is
used in the retail trade or business of selling tangible
personal property to the general public, and
``(ii) such improvement is placed in service more than 3
years after the date the building was first placed in
service.
``(B) Improvements made by owner.--In the case of an
improvement made by the owner of such improvement, such
improvement shall be qualified retail improvement property
(if at all) only so long as such improvement is held by such
owner. Rules similar to the rules under paragraph (6)(B)
shall apply for purposes of the preceding sentence.
``(C) Certain improvements not included.--Such term shall
not include any improvement for which the expenditure is
attributable to--
``(i) the enlargement of the building,
``(ii) any elevator or escalator,
``(iii) any structural component benefitting a common area,
or
``(iv) the internal structural framework of the
building.''.

[[Page 7801]]

(3) Requirement to use straight line method.--Section
168(b)(3) is amended by adding at the end the following new
subparagraph:
``(I) Qualified retail improvement property described in
subsection (e)(8).''.
(4) Alternative system.--The table contained in section
168(g)(3)(B) is amended by inserting after the item relating
to subparagraph (E)(viii) the following new item:

(E)(ix)...........................................................39''.

(5) Effective date.--The amendments made by this subsection
shall apply to property placed in service after the date of
the enactment of this Act.

SEC. 513. CLARIFICATION OF CASH ACCOUNTING RULES FOR SMALL
BUSINESS.

SEC. 514. EXTENSION AND MODIFICATION OF COMBINED WORK
OPPORTUNITY TAX CREDIT AND WELFARE-TO-WORK
CREDIT.

(a) Extension.--Section 51(c)(4)(B) (relating to
termination) is amended by striking ``2007'' and inserting
``2012''.
(b) Increase in Maximum Age for Designated Community
Residents.--
(1) In general.--Paragraph (5) of section 51(d) is amended
to read as follows:
``(5) Designated community residents.--
``(A) In general.--The term `designated community resident'
means any individual who is certified by the designated local
agency--
``(i) as having attained age 18 but not age 40 on the
hiring date, and
``(ii) as having his principal place of abode within an
empowerment zone, enterprise community, or renewal community.
``(B) Individual must continue to reside in zone or
community.--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, or renewal community.''.
(2) Conforming amendment.--Subparagraph (D) of section
51(d)(1) is amended to read as follows:
``(D) a designated community resident,''.
(c) Clarification of Treatment of Individuals Under
Individual Work Plans.--Subparagraph (B) of section 51(d)(6)
(relating to vocational rehabilitation referral) is amended
by striking ``or'' at the end of clause (i), by striking the
period at the end of clause (ii) and inserting ``, or'', and
by adding at the end the following new clause:
``(iii) an individual work plan developed and implemented
by an employment network pursuant to subsection (g) of
section 1148 of the Social Security Act with respect to which
the requirements of such subsection are met.''.
(d) Treatment of Disabled Veterans Under the Work
Opportunity Tax Credit.--
(1) Disabled veterans treated as members of targeted
group.--
(A) In general.--Subparagraph (A) of section 51(d)(3)
(relating to qualified veteran) is amended by striking
``agency as being a member of a family'' and all that follows
and inserting ``agency as--
``(i) being a member of a family receiving assistance under
a food stamp program under the Food Stamp Act of 1977 for at
least a 3-month period ending during the 12-month period
ending on the hiring date, or
``(ii) entitled to compensation for a service-connected
disability incurred after September 10, 2001.''.
(B) Definitions.--Paragraph (3) of section 51(d) is amended
by adding at the end the following new subparagraph:
``(C) Other definitions.--For purposes of subparagraph (A),
the terms `compensation' and `service-connected' have the
meanings given such terms under section 101 of title 38,
United States Code.''.
(2) Increase in amount of wages taken into account for
disabled veterans.--Paragraph (3) of section 51(b) is
amended--
(A) by inserting ``($12,000 per year in the case of any
individual who is a qualified veteran by reason of subsection
(d)(3)(A)(ii))'' before the period at the end, and
(B) by striking ``only first $6,000 of'' in the heading
and inserting ``limitation on''.
(e) Effective Date.--The amendments made by this section
shall apply to individuals who begin work for the employer
after the date of the enactment of this Act, in taxable years
ending after such date.

SEC. 515. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

(a) Employment Taxes.--Chapter 25 (relating to general
provisions relating to employment taxes) is amended by adding
at the end the following new section:

``SEC. 3511. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

[[Page 7802]]

``(2) a customer whose service contract with a certified
professional employer organization is terminated with respect
to a work site employee shall be treated as a successor
employer and the certified professional employer organization
shall be treated as a predecessor employer.
``(c) Liability of Certified Professional Employer
Organization.--Solely for purposes of its liability for the
taxes, and other obligations, imposed by this subtitle--
``(1) a certified professional employer organization shall
be treated as the employer of any individual (other than a
work site employee or a person described in subsection (f))
who is performing services covered by a contract meeting the
requirements of section 7705(e)(2), but only with respect to
remuneration remitted by such organization to such
individual, and
``(2) exclusions, definitions, and other rules which are
based on the type of employer and which would (but for
paragraph (1)) apply shall apply with respect to such taxes
imposed on such remuneration.
``(d) Treatment of Credits.--
``(1) In general.--For purposes of any credit specified in
paragraph (2)--
``(A) such credit with respect to a work site employee
performing services for the customer applies to the customer,
not the certified professional employer organization,
``(B) the customer, and not the certified professional
employer organization, shall take into account wages and
employment taxes--
``(i) paid by the certified professional employer
organization with respect to the work site employee, and
``(ii) for which the certified professional employer
organization receives payment from the customer, and
``(C) the certified professional employer organization
shall furnish the customer with any information necessary for
the customer to claim such credit.
``(2) Credits specified.--A credit is specified in this
paragraph if such credit is allowed under--
``(A) section 41 (credit for increasing research activity),
``(B) section 45A (Indian employment credit),
``(C) section 45B (credit for portion of employer social
security taxes paid with respect to employee cash tips),
``(D) section 45C (clinical testing expenses for certain
drugs for rare diseases or conditions),
``(E) section 51 (work opportunity credit),
``(F) section 51A (temporary incentives for employing long-
term family assistance recipients),
``(G) section 1396 (empowerment zone employment credit),
``(H) 1400(d) (DC Zone employment credit),
``(I) Section 1400H (renewal community employment credit),
and
``(J) any other section as provided by the Secretary.
``(e) Special Rule for Related Party.--This section shall
not apply in the case of a customer which bears a
relationship to a certified professional employer
organization described in section 267(b) or 707(b). For
purposes of the preceding sentence, such sections shall be
applied by substituting `10 percent' for `50 percent'.
``(f) Special Rule for Certain Individuals.--For purposes
of the taxes imposed under this subtitle, an individual with
net earnings from self-employment derived from the customer's
trade or business is not a work site employee with respect to
remuneration paid by a certified professional employer
organization.
``(g) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(b) Certified Professional Employer Organization Defined.--
Chapter 79 (relating to definitions) is amended by adding at
the end the following new section:

``SEC. 7705. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS
DEFINED.

``(a) In General.--For purposes of this title, the term
`certified professional employer organization' means a person
who has been certified by the Secretary for purposes of
section 3511 as meeting the requirements of subsection (b).
``(b) General Requirements.--A person meets the
requirements of this subsection if such person--
``(1) demonstrates that such person (and any owner,
officer, and such other persons as may be specified in
regulations) meets such requirements as the Secretary shall
establish with respect to tax status, background, experience,
business location, and annual financial audits,
``(2) computes its taxable income using an accrual method
of accounting unless the Secretary approves another method,
``(3) agrees that it will satisfy the bond and independent
financial review requirements of subsection (c) on an ongoing
basis,
``(4) agrees that it will satisfy such reporting
obligations as may be imposed by the Secretary,
``(5) agrees to verify on such periodic basis as the
Secretary may prescribe that it continues to meet the
requirements of this subsection, and
``(6) agrees to notify the Secretary in writing within such
time as the Secretary may prescribe of any change that
materially affects whether it continues to meet the
requirements of this subsection.
``(c) Bond and Independent Financial Review Requirements.--
``(1) In general.--An organization meets the requirements
of this paragraph if such organization--
``(A) meets the bond requirements of paragraph (2), and
``(B) meets the independent financial review requirements
of paragraph (3).
``(2) Bond.--
``(A) In general.--A certified professional employer
organization meets the requirements of this paragraph if the
organization has posted a bond for the payment of taxes under
subtitle C (in a form acceptable to the Secretary) in an
amount at least equal to the amount specified in subparagraph
(B).
``(B) Amount of bond.--For the period April 1 of any
calendar year through March 31 of the following calendar
year, the amount of the bond required is equal to the greater
of--
``(i) 5 percent of the organization's liability under
section 3511 for taxes imposed by subtitle C during the
preceding calendar year (but not to exceed $1,000,000), or
``(ii) $50,000.
``(3) Independent financial review requirements.--A
certified professional employer organization meets the
requirements of this paragraph if such organization--
``(A) has, as of the most recent review date, caused to be
prepared and provided to the Secretary (in such manner as the
Secretary may prescribe) an opinion of an independent
certified public accountant that the certified professional
employer organization's financial statements are presented
fairly in accordance with generally accepted accounting
principles, and
``(B) provides, not later than the last day of the second
month beginning after the end of each calendar quarter, to
the Secretary from an independent certified public accountant
an assertion regarding Federal employment tax payments and an
examination level attestation on such assertion.
Such assertion shall state that the organization has withheld
and made deposits of all taxes imposed by chapters 21, 22,
and 24 of the Internal Revenue Code in accordance with
regulations imposed by the Secretary for such calendar
quarter and such examination level attestation shall state
that such assertion is fairly stated, in all material
respects.
``(4) Controlled group rules.--For purposes of the
requirements of paragraphs (2) and (3), all professional
employer organizations that are members of a controlled group
within the meaning of sections 414(b) and (c) shall be
treated as a single organization.
``(5) Failure to file assertion and attestation.--If the
certified professional employer organization fails to file
the assertion and attestation required by paragraph (3) with
respect to any calendar quarter, then the requirements of
paragraph (3) with respect to such failure shall be treated
as not satisfied for the period beginning on the due date for
such attestation.
``(6) Review date.--For purposes of paragraph (3)(A), the
review date shall be 6 months after the completion of the
organization's fiscal year.
``(d) Suspension and Revocation Authority.--The Secretary
may suspend or revoke a certification of any person under
subsection (b) for purposes of section 3511 if the Secretary
determines that such person is not satisfying the
representations or requirements of subsections (b) or (c), or
fails to satisfy applicable accounting, reporting, payment,
or deposit requirements.
``(e) Work Site Employee.--For purposes of this title--
``(1) In general.--The term `work site employee' means,
with respect to a certified professional employer
organization, an individual who--
``(A) performs services for a customer pursuant to a
contract which is between such customer and the certified
professional employer organization and which meets the
requirements of paragraph (2), and
``(B) performs services at a work site meeting the
requirements of paragraph (3).
``(2) Service contract requirements.--A contract meets the
requirements of this paragraph with respect to an individual
performing services for a customer if such contract is in
writing and provides that the certified professional employer
organization shall--
``(A) assume responsibility for payment of wages to such
individual, without regard to the receipt or adequacy of
payment from the customer for such services,
``(B) assume responsibility for reporting, withholding, and
paying any applicable taxes under subtitle C, with respect to
such individual's wages, without regard to the receipt or
adequacy of payment from the customer for such services,
``(C) assume responsibility for any employee benefits which
the service contract may require the organization to provide,
without regard to the receipt or adequacy of payment from the
customer for such services,
``(D) assume responsibility for hiring, firing, and
recruiting workers in addition to

[[Page 7803]]

the customer's responsibility for hiring, firing and
recruiting workers,
``(E) maintain employee records relating to such
individual, and
``(F) agree to be treated as a certified professional
employer organization for purposes of section 3511 with
respect to such individual.
``(3) Work site coverage requirement.--The requirements of
this paragraph are met with respect to an individual if at
least 85 percent of the individuals performing services for
the customer at the work site where such individual performs
services are subject to 1 or more contracts with the
certified professional employer organization which meet the
requirements of paragraph (2) (but not taking into account
those individuals who are excluded employees within the
meaning of section 414(q)(5)).
``(f) Determination of Employment Status.--Except to the
extent necessary for purposes of section 3511, nothing in
this section shall be construed to affect the determination
of who is an employee or employer for purposes of this title.
``(g) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(c) Conforming Amendments.--
(1) Section 3302 is amended by adding at the end the
following new subsection:
``(h) Treatment of Certified Professional Employer
Organizations.--If a certified professional employer
organization (as defined in section 7705), or a customer of
such organization, makes a contribution to the State's
unemployment fund with respect to a work site employee, such
organization shall be eligible for the credits available
under this section with respect to such contribution.''.
(2) Section 3303(a) is amended--
(A) by striking the period at the end of paragraph (3) and
inserting ``; and'' and by inserting after paragraph (3) the
following new paragraph:
``(4) if the taxpayer is a certified professional employer
organization (as defined in section 7705) that is treated as
the employer under section 3511, such certified professional
employer organization is permitted to collect and remit, in
accordance with paragraphs (1), (2), and (3), contributions
during the taxable year to the State unemployment fund with
respect to a work site employee.'', and
(B) in the last sentence--
(i) by striking ``paragraphs (1), (2), and (3)'' and
inserting ``paragraphs (1), (2), (3), and (4)'', and
(ii) by striking ``paragraph (1), (2), or (3)'' and
inserting ``paragraph (1), (2), (3), or (4)''.
(3) Section 6053(c) (relating to reporting of tips) is
amended by adding at the end the following new paragraph:
``(8) Certified professional employer organizations.--For
purposes of any report required by this subsection, in the
case of a certified professional employer organization that
is treated under section 3511 as the employer of a work site
employee, the customer with respect to whom a work site
employee performs services shall be the employer for purposes
of reporting under this section and the certified
professional employer organization shall furnish to the
customer any information necessary to complete such reporting
no later than such time as the Secretary shall prescribe.''.
(d) Clerical Amendments.--
(1) The table of sections for chapter 25 is amended by
adding at the end the following new item:

``Sec. 3511. Certified professional employer organizations''.

(2) The table of sections for chapter 79 is amended by
inserting after the item relating to section 7704 the
following new item:

``Sec. 7705. Certified professional employer organizations defined''.

(e) Reporting Requirements and Obligations.--The Secretary
of the Treasury shall develop such reporting and
recordkeeping rules, regulations, and procedures as the
Secretary determines necessary or appropriate to ensure
compliance with the amendments made by this section with
respect to entities applying for certification as certified
professional employer organizations or entities that have
been so certified. Such rules shall be designed in a manner
which streamlines, to the extent possible, the application of
requirements of such amendments, the exchange of information
between a certified professional employer organization and
its customers, and the reporting and recordkeeping
obligations of the certified professional employer
organization.
(f) User Fees.--Subsection (b) of section 7528 (relating to
Internal Revenue Service user fees) is amended by adding at
the end the following new paragraph:
``(4) Certified professional employer organizations.--The
fee charged under the program in connection with the
certification by the Secretary of a professional employer
organization under section 7705 shall not exceed $500.''.
(g) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply with respect to wages for services performed on or
after January 1 of the first calendar year beginning more
than 12 months after the date of the enactment of this Act.
(2) Certification program.--The Secretary of the Treasury
shall establish the certification program described in
section 7705(b) of the Internal Revenue Code of 1986, as
added by subsection (b), not later than 6 months before the
effective date determined under paragraph (1).
(h) No Inference.--Nothing contained in this section or the
amendments made by this section shall be construed to create
any inference with respect to the determination of who is an
employee or employer--
(1) for Federal tax purposes (other than the purposes set
forth in the amendments made by this section), or
(2) for purposes of any other provision of law.

Subpart B--Subchapter S Provisions

SEC. 521. CAPITAL GAIN OF S CORPORATION NOT TREATED AS
PASSIVE INVESTMENT INCOME.

SEC. 522. TREATMENT OF BANK DIRECTOR SHARES.

[[Page 7804]]

section 1361(f)), the amount of such distribution--
``(1) shall be includible in gross income of the director,
and
``(2) shall be deductible by the corporation for the
taxable year of such corporation in which or with which ends
the taxable year in which such amount in included in the
gross income of the director.''.
(c) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2006.
(2) Special rule for treatment as second class of stock.--
In the case of any taxable year beginning after December 31,
1996, restricted bank director stock (as defined in section
1361(f) of the Internal Revenue Code of 1986, as added by
this section) shall not be taken into account in determining
whether an S corporation has more than 1 class of stock.

SEC. 523. SPECIAL RULE FOR BANK REQUIRED TO CHANGE FROM THE
RESERVE METHOD OF ACCOUNTING ON BECOMING S
CORPORATION.

SEC. 524. TREATMENT OF THE SALE OF INTEREST IN A QUALIFIED
SUBCHAPTER S SUBSIDIARY.

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

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

SEC. 525. ELIMINATION OF ALL EARNINGS AND PROFITS
ATTRIBUTABLE TO PRE-1983 YEARS FOR CERTAIN
CORPORATIONS.

SEC. 526. EXPANSION OF QUALIFYING BENEFICIARIES OF AN
ELECTING SMALL BUSINESS TRUST.

PART II--REVENUE PROVISIONS

SEC. 531. MODIFICATION OF EFFECTIVE DATE OF LEASING
PROVISIONS OF THE AMERICAN JOBS CREATION ACT OF
2004.

SEC. 532. APPLICATION OF RULES TREATING INVERTED CORPORATIONS
AS DOMESTIC CORPORATIONS TO CERTAIN
TRANSACTIONS OCCURRING AFTER MARCH 20, 2002.

(a) In General.--Section 7874(b) (relating to inverted
corporations treated as domestic corporations) is amended to
read as follows:
``(b) Inverted Corporations Treated as Domestic
Corporations.--
``(1) In general.--Notwithstanding section 7701(a)(4), a
foreign corporation shall be treated for purposes of this
title as a domestic corporation if such corporation would be
a surrogate foreign corporation if subsection (a)(2) were
applied by substituting `80 percent' for `60 percent'.
``(2) Special rule for certain transactions occurring after
march 20, 2002.--
``(A) In general.--If--
``(i) paragraph (1) does not apply to a foreign
corporation, but
``(ii) paragraph (1) would apply to such corporation if, in
addition to the substitution under paragraph (1), subsection
(a)(2) were applied by substituting `March 20, 2002' for
`March 4, 2003' each place it appears,
then paragraph (1) shall apply to such corporation but only
with respect to taxable years of such corporation beginning
after December 31, 2006.
``(B) Special rules.--Subject to such rules as the
Secretary may prescribe, in the case of a corporation to
which paragraph (1) applies by reason of this paragraph--
``(i) the corporation shall be treated, as of the close of
its last taxable year beginning before January 1, 2007, as
having transferred all of its assets, liabilities, and
earnings and profits to a domestic corporation in a
transaction with respect to which no tax is imposed under
this title,
``(ii) the bases of the assets transferred in the
transaction to the domestic corporation shall be the same as
the bases of the assets in the hands of the foreign
corporation, subject to any adjustments under this title for
built-in losses,
``(iii) the basis of the stock of any shareholder in the
domestic corporation shall be the same as the basis of the
stock of the shareholder in the foreign corporation for which
it is treated as exchanged, and
``(iv) the transfer of any earnings and profits by reason
of clause (i) shall be disregarded in determining any deemed
dividend or foreign tax creditable to the domestic
corporation with respect to such transfer.
``(C) Regulations.--The Secretary may prescribe such
regulations as may be necessary or appropriate to carry out
this paragraph, including regulations to prevent the
avoidance of the purposes of this paragraph.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2006.

SEC. 533. DENIAL OF DEDUCTION FOR PUNITIVE DAMAGES.

``SEC. 91. PUNITIVE DAMAGES COMPENSATED BY INSURANCE OR
OTHERWISE.

``Sec. 91. Punitive damages compensated by insurance or otherwise''.
(c) Effective Date.--The amendments made by this section
shall apply to damages paid or incurred on or after the date
of the enactment of this Act.

SEC. 534. DENIAL OF DEDUCTION FOR CERTAIN FINES, PENALTIES,
AND OTHER AMOUNTS.

(a) In General.--Subsection (f) of section 162 (relating to
trade or business expenses) is amended to read as follows:

[[Page 7805]]

``(f) Fines, Penalties, and Other Amounts.--
``(1) In general.--Except as provided in paragraph (2), no
deduction otherwise allowable shall be allowed under this
chapter for any amount paid or incurred (whether by suit,
agreement, or otherwise) to, or at the direction of, a
government or entity described in paragraph (4) in relation
to the violation of any law or the investigation or inquiry
by such government or entity into the potential violation of
any law.
``(2) Exception for amounts constituting restitution or
paid to come into compliance with law.--Paragraph (1) shall
not apply to any amount which--
``(A) the taxpayer establishes--
``(i) constitutes restitution (including remediation of
property) for damage or harm caused by or which may be caused
by the violation of any law or the potential violation of any
law, or
``(ii) is paid to come into compliance with any law which
was violated or involved in the investigation or inquiry, and
``(B) is identified as restitution or as an amount paid to
come into compliance with the law, as the case may be, in the
court order or settlement agreement.
A taxpayer shall not meet the requirements of subparagraph
(A) solely by reason an identification under subparagraph
(B). This paragraph shall not apply to any amount paid or
incurred as reimbursement to the government or entity for the
costs of any investigation or litigation.
``(3) Exception for amounts paid or incurred as the result
of certain court orders.--Paragraph (1) shall not apply to
any amount paid or incurred by order of a court in a suit in
which no government or entity described in paragraph (4) is a
party.
``(4) Certain nongovernmental regulatory entities.--An
entity is described in this paragraph if it is--
``(A) a nongovernmental entity which exercises self-
regulatory powers (including imposing sanctions) in
connection with a qualified board or exchange (as defined in
section 1256(g)(7)), or
``(B) to the extent provided in regulations, a
nongovernmental entity which exercises self-regulatory powers
(including imposing sanctions) as part of performing an
essential governmental function.
``(5) Exception for taxes due.--Paragraph (1) shall not
apply to any amount paid or incurred as taxes due.''.
(b) Reporting of Deductible Amounts.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 is amended by inserting after section 6050V the
following new section:

``SEC. 6050W. INFORMATION WITH RESPECT TO CERTAIN FINES,
PENALTIES, AND OTHER AMOUNTS.

``(ii) the aggregate amount involved in all court orders
and agreements with respect to the violation, investigation,
or inquiry is $600 or more.
``(B) Adjustment of reporting threshold.--The Secretary may
adjust the $600 amount in subparagraph (A)(ii) as necessary
in order to ensure the efficient administration of the
internal revenue laws.
``(3) Time of filing.--The return required under this
subsection shall be filed not later than--
``(A) 30 days after the date on which a court order is
issued with respect to the suit or the date the agreement is
entered into, as the case may be, or
``(B) the date specified Secretary.
``(b) Statements To Be Furnished to Individuals Involved in
the Settlement.--Every person required to make a return under
subsection (a) shall furnish to each person who is a party to
the suit or agreement a written statement showing--
``(1) the name of the government or entity, and
``(2) the information supplied to the Secretary under
subsection (a)(1).
The written statement required under the preceding sentence
shall be furnished to the person at the same time the
government or entity provides the Secretary with the
information required under subsection (a).
``(c) Appropriate Official Defined.--For purposes of this
section, the term `appropriate official' means the officer or
employee having control of the suit, investigation, or
inquiry or the person appropriately designated for purposes
of this section.''.
(2) Conforming amendment.--The table of sections for
subpart B of part III of subchapter A of chapter 61 is
amended by inserting after the item relating to section 6050V
the following new item:

``Sec. 6050W. Information with respect to certain fines, penalties, and
other amounts''.
(c) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred on or after the date
of the enactment of this Act, except that such amendments
shall not apply to amounts paid or incurred under any binding
order or agreement entered into before such date. Such
exception shall not apply to an order or agreement requiring
court approval unless the approval was obtained before such
date.

SEC. 535. REVISION OF TAX RULES ON EXPATRIATION OF
INDIVIDUALS.

(a) In General.--Subpart A of part II of subchapter N of
chapter 1 is amended by inserting after section 877 the
following new section:

``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.

``(a) General Rules.--For purposes of this subtitle--
``(1) Mark to market.--Except as provided in subsections
(d) and (f), all property of a covered expatriate to whom
this section applies shall be treated as sold on the day
before the expatriation date for its fair market value.
``(2) Recognition of gain or loss.--In the case of any sale
under paragraph (1)--
``(A) notwithstanding any other provision of this title,
any gain arising from such sale shall be taken into account
for the taxable year of the sale, and
``(B) any loss arising from such sale shall be taken into
account for the taxable year of the sale to the extent
otherwise provided by this title, except that section 1091
shall not apply to any such loss.
Proper adjustment shall be made in the amount of any gain or
loss subsequently realized for gain or loss taken into
account under the preceding sentence.
``(3) Exclusion for certain gain.--
``(A) In general.--The amount which, but for this
paragraph, would be includible in the gross income of any
individual by reason of this section shall be reduced (but
not below zero) by $600,000. For purposes of this paragraph,
allocable expatriation gain taken into account under
subsection (f)(2) shall be treated in the same manner as an
amount required to be includible in gross income.
``(B) Cost-of-living adjustment.--
``(i) In general.--In the case of an expatriation date
occurring in any calendar year after 2007, the $600,000
amount under subparagraph (A) shall be increased by an amount
equal to--

[[Page 7806]]

postponed until the due date of the return for the taxable
year in which such property is disposed of (or, in the case
of property disposed of in a transaction in which gain is not
recognized in whole or in part, until such other date as the
Secretary may prescribe).
``(2) Determination of tax with respect to property.--For
purposes of paragraph (1), the additional tax attributable to
any property is an amount which bears the same ratio to the
additional tax imposed by this chapter for the taxable year
solely by reason of subsection (a) as the gain taken into
account under subsection (a) with respect to such property
bears to the total gain taken into account under subsection
(a) with respect to all property to which subsection (a)
applies.
``(3) Termination of postponement.--No tax may be postponed
under this subsection later than the due date for the return
of tax imposed by this chapter for the taxable year which
includes the date of death of the expatriate (or, if earlier,
the time that the security provided with respect to the
property fails to meet the requirements of paragraph (4),
unless the taxpayer corrects such failure within the time
specified by the Secretary).
``(4) Security.--
``(A) In general.--No election may be made under paragraph
(1) with respect to any property unless adequate security is
provided to the Secretary with respect to such property.
``(B) Adequate security.--For purposes of subparagraph (A),
security with respect to any property shall be treated as
adequate security if--
``(i) it is a bond in an amount equal to the deferred tax
amount under paragraph (2) for the property, or
``(ii) the taxpayer otherwise establishes to the
satisfaction of the Secretary that the security is adequate.
``(5) Waiver of certain rights.--No election may be made
under paragraph (1) unless the taxpayer consents to the
waiver of any right under any treaty of the United States
which would preclude assessment or collection of any tax
imposed by reason of this section.
``(6) Elections.--An election under paragraph (1) shall
only apply to property described in the election and, once
made, is irrevocable. An election may be made under paragraph
(1) with respect to an interest in a trust with respect to
which gain is required to be recognized under subsection
(f)(1).
``(7) Interest.--For purposes of section 6601--
``(A) the last date for the payment of tax shall be
determined without regard to the election under this
subsection, and
``(B) section 6621(a)(2) shall be applied by substituting
`5 percentage points' for `3 percentage points' in
subparagraph (B) thereof.
``(c) Covered Expatriate.--For purposes of this section--
``(1) In general.--Except as provided in paragraph (2), the
term `covered expatriate' means an expatriate.
``(2) Exceptions.--An individual shall not be treated as a
covered expatriate if--
``(A) the individual--
``(i) became at birth a citizen of the United States and a
citizen of another country and, as of the expatriation date,
continues to be a citizen of, and is taxed as a resident of,
such other country, and
``(ii) has not been a resident of the United States (as
defined in section 7701(b)(1)(A)(ii)) during the 5 taxable
years ending with the taxable year during which the
expatriation date occurs, or
``(B)(i) the individual's relinquishment of United States
citizenship occurs before such individual attains age 18\1/
2\, and
``(ii) the individual has been a resident of the United
States (as so defined) for not more than 5 taxable years
before the date of relinquishment.
``(d) Exempt Property; Special Rules for Pension Plans.--
``(1) Exempt property.--This section shall not apply to the
following:
``(A) United states real property interests.--Any United
States real property interest (as defined in section
897(c)(1)), other than stock of a United States real property
holding corporation which does not, on the day before the
expatriation date, meet the requirements of section
897(c)(2).
``(B) Specified property.--Any property or interest in
property not described in subparagraph (A) which the
Secretary specifies in regulations.
``(2) Special rules for certain retirement plans.--
``(A) In general.--If a covered expatriate holds on the day
before the expatriation date any interest in a retirement
plan to which this paragraph applies--
``(i) such interest shall not be treated as sold for
purposes of subsection (a)(1), but
``(ii) an amount equal to the present value of the
expatriate's nonforfeitable accrued benefit shall be treated
as having been received by such individual on such date as a
distribution under the plan.
``(B) Treatment of subsequent distributions.--In the case
of any distribution on or after the expatriation date to or
on behalf of the covered expatriate from a plan from which
the expatriate was treated as receiving a distribution under
subparagraph (A), the amount otherwise includible in gross
income by reason of the subsequent distribution shall be
reduced by the excess of the amount includible in gross
income under subparagraph (A) over any portion of such amount
to which this subparagraph previously applied.
``(C) Treatment of subsequent distributions by plan.--For
purposes of this title, a retirement plan to which this
paragraph applies, and any person acting on the plan's
behalf, shall treat any subsequent distribution described in
subparagraph (B) in the same manner as such distribution
would be treated without regard to this paragraph.
``(D) Applicable plans.--This paragraph shall apply to--
``(i) any qualified retirement plan (as defined in section
4974(c)),
``(ii) an eligible deferred compensation plan (as defined
in section 457(b)) of an eligible employer described in
section 457(e)(1)(A), and
``(iii) to the extent provided in regulations, any foreign
pension plan or similar retirement arrangements or programs.
``(e) Definitions.--For purposes of this section--
``(1) Expatriate.--The term `expatriate' means--
``(A) any United States citizen who relinquishes
citizenship, and
``(B) any long-term resident of the United States who--
``(i) ceases to be a lawful permanent resident of the
United States (within the meaning of section 7701(b)(6)), or
``(ii) commences to be treated as a resident of a foreign
country under the provisions of a tax treaty between the
United States and the foreign country and who does not waive
the benefits of such treaty applicable to residents of the
foreign country.
``(2) Expatriation date.--The term `expatriation date'
means--
``(A) the date an individual relinquishes United States
citizenship, or
``(B) in the case of a long-term resident of the United
States, the date of the event described in clause (i) or (ii)
of paragraph (1)(B).
``(3) Relinquishment of citizenship.--A citizen shall be
treated as relinquishing United States citizenship on the
earliest of--
``(A) the date the individual renounces such individual's
United States nationality before a diplomatic or consular
officer of the United States pursuant to paragraph (5) of
section 349(a) of the Immigration and Nationality Act (8
U.S.C. 1481(a)(5)),
``(B) the date the individual furnishes to the United
States Department of State a signed statement of voluntary
relinquishment of United States nationality confirming the
performance of an act of expatriation specified in paragraph
(1), (2), (3), or (4) of section 349(a) of the Immigration
and Nationality Act (8 U.S.C. 1481(a)(1)-(4)),
``(C) the date the United States Department of State issues
to the individual a certificate of loss of nationality, or
``(D) the date a court of the United States cancels a
naturalized citizen's certificate of naturalization.
Subparagraph (A) or (B) shall not apply to any individual
unless the renunciation or voluntary relinquishment is
subsequently approved by the issuance to the individual of a
certificate of loss of nationality by the United States
Department of State.
``(4) Long-term resident.--The term `long-term resident'
has the meaning given to such term by section 877(e)(2).
``(f) Special Rules Applicable to Beneficiaries' Interests
in Trust.--
``(1) In general.--Except as provided in paragraph (2), if
an individual is determined under paragraph (3) to hold an
interest in a trust on the day before the expatriation date--
``(A) the individual shall not be treated as having sold
such interest,
``(B) such interest shall be treated as a separate share in
the trust, and
``(C)(i) such separate share shall be treated as a separate
trust consisting of the assets allocable to such share,
``(ii) the separate trust shall be treated as having sold
its assets on the day before the expatriation date for their
fair market value and as having distributed all of its assets
to the individual as of such time, and
``(iii) the individual shall be treated as having
recontributed the assets to the separate trust.
Subsection (a)(2) shall apply to any income, gain, or loss of
the individual arising from a distribution described in
subparagraph (C)(ii). In determining the amount of such
distribution, proper adjustments shall be made for
liabilities of the trust allocable to an individual's share
in the trust.
``(2) Special rules for interests in qualified trusts.--
``(A) In general.--If the trust interest described in
paragraph (1) is an interest in a qualified trust--
``(i) paragraph (1) and subsection (a) shall not apply, and
``(ii) in addition to any other tax imposed by this title,
there is hereby imposed on each distribution with respect to
such interest a tax in the amount determined under
subparagraph (B).
``(B) Amount of tax.--The amount of tax under subparagraph
(A)(ii) shall be equal to the lesser of--

[[Page 7807]]

``(i) the highest rate of tax imposed by section 1(e) for
the taxable year which includes the day before the
expatriation date, multiplied by the amount of the
distribution, or
``(ii) the balance in the deferred tax account immediately
before the distribution determined without regard to any
increases under subparagraph (C)(ii) after the 30th day
preceding the distribution.
``(C) Deferred tax account.--For purposes of subparagraph
(B)(ii)--
``(i) Opening balance.--The opening balance in a deferred
tax account with respect to any trust interest is an amount
equal to the tax which would have been imposed on the
allocable expatriation gain with respect to the trust
interest if such gain had been included in gross income under
subsection (a).
``(ii) Increase for interest.--The balance in the deferred
tax account shall be increased by the amount of interest
determined (on the balance in the account at the time the
interest accrues), for periods after the 90th day after the
expatriation date, by using the rates and method applicable
under section 6621 for underpayments of tax for such periods,
except that section 6621(a)(2) shall be applied by
substituting `5 percentage points' for `3 percentage points'
in subparagraph (B) thereof.
``(iii) Decrease for taxes previously paid.--The balance in
the tax deferred account shall be reduced--

``(D) Allocable expatriation gain.--For purposes of this
paragraph, the allocable expatriation gain with respect to
any beneficiary's interest in a trust is the amount of gain
which would be allocable to such beneficiary's vested and
nonvested interests in the trust if the beneficiary held
directly all assets allocable to such interests.
``(E) Tax deducted and withheld.--
``(i) In general.--The tax imposed by subparagraph (A)(ii)
shall be deducted and withheld by the trustees from the
distribution to which it relates.
``(ii) Exception where failure to waive treaty rights.--If
an amount may not be deducted and withheld under clause (i)
by reason of the distributee failing to waive any treaty
right with respect to such distribution--

``(F) Disposition.--If a trust ceases to be a qualified
trust at any time, a covered expatriate disposes of an
interest in a qualified trust, or a covered expatriate
holding an interest in a qualified trust dies, then, in lieu
of the tax imposed by subparagraph (A)(ii), there is hereby
imposed a tax equal to the lesser of--
``(i) the tax determined under paragraph (1) as if the day
before the expatriation date were the date of such cessation,
disposition, or death, whichever is applicable, or
``(ii) the balance in the tax deferred account immediately
before such date.
Such tax shall be imposed on the trust and each trustee shall
be personally liable for the amount of such tax and any other
beneficiary of the trust shall be entitled to recover from
the covered expatriate or the estate the amount of such tax
imposed on the other beneficiary.
``(G) Definitions and special rules.--For purposes of this
paragraph--
``(i) Qualified trust.--The term `qualified trust' means a
trust which is described in section 7701(a)(30)(E).
``(ii) Vested interest.--The term `vested interest' means
any interest which, as of the day before the expatriation
date, is vested in the beneficiary.
``(iii) Nonvested interest.--The term `nonvested interest'
means, with respect to any beneficiary, any interest in a
trust which is not a vested interest. Such interest shall be
determined by assuming the maximum exercise of discretion in
favor of the beneficiary and the occurrence of all
contingencies in favor of the beneficiary.
``(iv) Adjustments.--The Secretary may provide for such
adjustments to the bases of assets in a trust or a deferred
tax account, and the timing of such adjustments, in order to
ensure that gain is taxed only once.
``(v) Coordination with retirement plan rules.--This
subsection shall not apply to an interest in a trust which is
part of a retirement plan to which subsection (d)(2) applies.
``(3) Determination of beneficiaries' interest in trust.--
``(A) Determinations under paragraph (1).--For purposes of
paragraph (1), a beneficiary's interest in a trust shall be
based upon all relevant facts and circumstances, including
the terms of the trust instrument and any letter of wishes or
similar document, historical patterns of trust distributions,
and the existence of and functions performed by a trust
protector or any similar adviser.
``(B) Other determinations.--For purposes of this section--
``(i) Constructive ownership.--If a beneficiary of a trust
is a corporation, partnership, trust, or estate, the
shareholders, partners, or beneficiaries shall be deemed to
be the trust beneficiaries for purposes of this section.
``(ii) Taxpayer return position.--A taxpayer shall clearly
indicate on its income tax return--

[[Page 7808]]

``(ii) included in the gross estate of the covered
expatriate for purposes of chapter 11 and shown on a timely
filed return of tax imposed by chapter 11 of the estate of
the covered expatriate, or
``(B) no such return was timely filed but no such return
would have been required to be filed even if the covered
expatriate were a citizen or long-term resident of the United
States.
``(3) Definitions.--For purposes of this subsection, any
term used in this subsection which is also used in section
877A shall have the same meaning as when used in section
877A.''.
(c) Definition of Termination of United States
Citizenship.--Section 7701(a) is amended by adding at the end
the following new paragraph:
``(50) Termination of united states citizenship.--
``(A) In general.--An individual shall not cease to be
treated as a United States citizen before the date on which
the individual's citizenship is treated as relinquished under
section 877A(e)(3).
``(B) Dual citizens.--Under regulations prescribed by the
Secretary, subparagraph (A) shall not apply to an individual
who became at birth a citizen of the United States and a
citizen of another country.''.
(d) Ineligibility for Visa or Admission to United States.--
(1) In general.--Section 212(a)(10)(E) of the Immigration
and Nationality Act (8 U.S.C. 1182(a)(10)(E)) is amended to
read as follows:
``(E) Former citizens not in compliance with expatriation
revenue provisions.--Any alien who is a former citizen of the
United States who relinquishes United States citizenship
(within the meaning of section 877A(e)(3) of the Internal
Revenue Code of 1986) and who is not in compliance with
section 877A of such Code (relating to expatriation) is
inadmissible.''.
(2) Availability of information.--
(A) In general.--Section 6103(l) (relating to disclosure of
returns and return information for purposes other than tax
administration) is amended by adding at the end the following
new paragraph:
``(21) Disclosure to deny visa or admission to certain
expatriates.--Upon written request of the Attorney General or
the Attorney General's delegate, the Secretary shall disclose
whether an individual is in compliance with section 877A (and
if not in compliance, any items of noncompliance) to officers
and employees of the Federal agency responsible for
administering section 212(a)(10)(E) of the Immigration and
Nationality Act solely for the purpose of, and to the extent
necessary in, administering such section 212(a)(10)(E).''.
(B) Safeguards.--Section 6103(p)(4) (relating to
safeguards) is amended by striking ``or (20)'' each place it
appears and inserting ``(20), or (21)''.
(3) Effective dates.--The amendments made by this
subsection shall apply to individuals who relinquish United
States citizenship on or after the date of the enactment of
this Act.
(e) Conforming Amendments.--
(1) Section 877 is amended by adding at the end the
following new subsection:
``(h) Application.--This section shall not apply to an
expatriate (as defined in section 877A(e)) whose expatriation
date (as so defined) occurs on or after the date of the
enactment of this subsection.''.
(2) Section 2107 is amended by adding at the end the
following new subsection:
``(f) Application.--This section shall not apply to any
expatriate subject to section 877A.''.
(3) Section 2501(a)(3) is amended by adding at the end the
following new subparagraph:
``(C) Application.--This paragraph shall not apply to any
expatriate subject to section 877A.''.
(4) Section 6039G(a) is amended by inserting ``or 877A''
after ``section 877(b)''.
(5) The second sentence of section 6039G(d) is amended by
inserting ``or who relinquishes United States citizenship
(within the meaning of section 877A(e)(3))'' after ``section
877(a))''.
(f) Clerical Amendment.--The table of sections for subpart
A of part II of subchapter N of chapter 1 is amended by
inserting after the item relating to section 877 the
following new item:

``Sec. 877A. Tax responsibilities of expatriation''.
(g) Effective Date.--
(1) In general.--Except as provided in this subsection, the
amendments made by this section shall apply to expatriates
(within the meaning of section 877A(e) of the Internal
Revenue Code of 1986, as added by this section) whose
expatriation date (as so defined) occurs on or after the date
of the enactment of this Act.
(2) Gifts and bequests.--Section 102(d) of the Internal
Revenue Code of 1986 (as added by subsection (b)) shall apply
to gifts and bequests received on or after the date of the
enactment of this Act, from an individual or the estate of an
individual whose expatriation date (as so defined) occurs
after such date.
(3) Due date for tentative tax.--The due date under section
877A(h)(2) of the Internal Revenue Code of 1986, as added by
this section, shall in no event occur before the 90th day
after the date of the enactment of this Act.

SEC. 536. LIMITATION ON ANNUAL AMOUNTS WHICH MAY BE DEFERRED
UNDER NONQUALIFIED DEFERRED COMPENSATION
ARRANGEMENTS.

``(ii) Base period.--

[[Page 7809]]

previously included in gross income, includible in income of
the participant when no longer subject to substantial risk of
forfeiture, and
(B) to conform to the requirements of section 409A(a)(5) of
such Code (as added by the amendments made by this section)
with regard to amounts deferred after December 31, 2006.

SEC. 537. INCREASE IN CRIMINAL MONETARY PENALTY LIMITATION
FOR THE UNDERPAYMENT OR OVERPAYMENT OF TAX DUE
TO FRAUD.

(a) In General.--Section 7206 (relating to fraud and false
statements) is amended--
(1) by striking ``Any person who--'' and inserting ``(a) In
General.--'', and
(2) by adding at the end the following new subsection:
``(b) Increase in Monetary Limitation for Underpayment or
Overpayment of Tax Due to Fraud.--If any portion of any
underpayment (as defined in section 6664(a)) or overpayment
(as defined in section 6401(a)) of tax required to be shown
on a return is attributable to fraudulent action described in
subsection (a), the applicable dollar amount under subsection
(a) shall in no event be less than an amount equal to such
portion. A rule similar to the rule under section 6663(b)
shall apply for purposes of determining the portion so
attributable.''.
(b) Increase in Penalties.--
(1) Attempt to evade or defeat tax.--Section 7201 is
amended--
(A) by striking ``$100,000'' and inserting ``$500,000'',
(B) by striking ``$500,000'' and inserting ``$1,000,000'',
and
(C) by striking ``5 years'' and inserting ``10 years''.
(2) Willful failure to file return, supply information, or
pay tax.--Section 7203 is amended--
(A) in the first sentence--
(i) by striking ``Any person'' and inserting the following:
``(a) In General.--Any person'', and
(ii) by striking ``$25,000'' and inserting ``$50,000'',
(B) in the third sentence, by striking ``section'' and
inserting ``subsection'', and
(C) by adding at the end the following new subsection:
``(b) Aggravated Failure To File.--
``(1) In general.--In the case of any failure described in
paragraph (2), the first sentence of subsection (a) shall be
applied by substituting--
``(A) `felony' for `misdemeanor',
``(B) `$500,000 ($1,000,000' for `$25,000 ($100,000', and
``(C) `10 years' for `1 year'.''.
``(2) Failure described.--A failure described in this
paragraph is a failure to make a return described in
subsection (a) for a period of 3 or more consecutive taxable
years if the aggregate tax liability for such period is not
less than $100,000.''.
(3) Fraud and false statements.--Section 7206(a) (as
redesignated by subsection (a)) is amended--
(A) by striking ``$100,000'' and inserting ``$500,000'',
(B) by striking ``$500,000'' and inserting ``$1,000,000'',
and
(C) by striking ``3 years'' and inserting ``5 years''.
(c) Effective Date.--The amendments made by this section
shall apply to actions, and failures to act, occurring after
the date of the enactment of this Act.

SEC. 538. DOUBLING OF CERTAIN PENALTIES, FINES, AND INTEREST
ON UNDERPAYMENTS RELATED TO CERTAIN OFFSHORE
FINANCIAL ARRANGEMENTS.

SEC. 539. INCREASE IN PENALTY FOR BAD CHECKS AND MONEY
ORDERS.

SEC. 540. TREATMENT OF CONTINGENT PAYMENT CONVERTIBLE DEBT
INSTRUMENTS.

(a) In General.--Section 1275(d) (relating to regulation
authority) is amended--
(1) by striking ``The Secretary'' and inserting the
following:
``(1) In general.--The Secretary'', and
(2) by adding at the end the following new paragraph:
``(2) Treatment of contingent payment convertible debt.--
``(A) In general.--In the case of a debt instrument which--
``(i) is convertible into stock of the issuing corporation,
into stock or debt of a related party (within the meaning of
section 267(b) or 707(b)(1)), or into cash or other property
in an amount equal to the approximate value of such stock or
debt, and
``(ii) provides for 1 or more contingent payments,
any regulations which require original issue discount to be
determined by reference to the comparable yield of a fixed-
rate debt instrument shall be applied as if the regulations
require that such comparable yield be determined by reference
to a fixed-rate debt instrument which is convertible into
stock.
``(B) Special rule.--For purposes of subparagraph (A), the
comparable yield shall be determined without taking into
account the yield resulting from the conversion of a debt
instrument into stock.''.
(b) Cross Reference.--Section 163(e)(6) (relating to cross
references) is amended by adding at the end the following:
``For the treatment of contingent payment convertible debt,
see section 1275(d)(2).''.
(c) Effective Date.--The amendments made by this section
shall apply to debt instruments issued on or after the date
of the enactment of this Act.

SEC. 541. EXTENSION OF IRS USER FEES.

Subsection (c) of section 7528 (relating to Internal
Revenue Service user fees) is amended by striking ``September
30, 2014'' and inserting ``September 30, 2016''.

SEC. 542. MODIFICATION OF COLLECTION DUE PROCESS PROCEDURES
FOR EMPLOYMENT TAX LIABILITIES.

SEC. 543. MODIFICATIONS TO WHISTLEBLOWER REFORMS.

[[Page 7810]]

(b) Whistleblower Office.--
(1) In general.--Section 7623 is amended by adding at the
end the following new subsections:
``(c) Whistleblower Office.--
``(1) In general.--There is established in the Internal
Revenue Service an office to be known as the `Whistleblower
Office' which--
``(A) shall at all times operate at the direction of the
Commissioner and coordinate and consult with other divisions
in the Internal Revenue Service as directed by the
Commissioner,
``(B) shall analyze information received from any
individual described in subsection (b) and either investigate
the matter itself or assign it to the appropriate Internal
Revenue Service office,
``(C) shall monitor any action taken with respect to such
matter,
``(D) shall inform such individual that it has accepted the
individual's information for further review,
``(E) may require such individual and any legal
representative of such individual to not disclose any
information so provided,
``(F) in its sole discretion, may ask for additional
assistance from such individual or any legal representative
of such individual, and
``(G) shall determine the amount to be awarded to such
individual under subsection (b).
``(2) Funding for office.--There is authorized to be
appropriated $10,000,000 for each fiscal year for the
Whistleblower Office. These funds shall be used to maintain
the Whistleblower Office and also to reimburse other Internal
Revenue Service offices for related costs, such as costs of
investigation and collection.
``(3) Request for assistance.--
``(A) In general.--Any assistance requested under paragraph
(1)(F) shall be under the direction and control of the
Whistleblower Office or the office assigned to investigate
the matter under subparagraph (A). No individual or legal
representative whose assistance is so requested may by reason
of such request represent himself or herself as an employee
of the Federal Government.
``(B) Funding of assistance.--From the amounts available
for expenditure under subsection (b), the Whistleblower
Office may, with the agreement of the individual described in
subsection (b), reimburse the costs incurred by any legal
representative of such individual in providing assistance
described in subparagraph (A).
``(d) Reports.--The Secretary shall each year conduct a
study and report to Congress on the use of this section,
including--
``(1) an analysis of the use of this section during the
preceding year and the results of such use, and
``(2) any legislative or administrative recommendations
regarding the provisions of this section and its
application.''.
(2) Conforming amendment.--Section 406 of division A of the
Tax Relief and Health Care Act of 2006 is amended by striking
subsections (b) and (c).
(3) Report on implementation.--Not later than 6 months
after the date of the enactment of this Act, the Secretary of
the Treasury shall submit to Congress a report on the
establishment and operation of the Whistleblower Office under
section 7623(c) of the Internal Revenue Code of 1986.
(c) Publicity of Award Appeals.--Paragraph (4) of section
7623(b), as added by the Tax Relief and Health Care Act of
2006, is amended to read as follows:
``(4) Appeal of award determination.--
``(A) In general.--Any determination regarding an award
under paragraph (1), (2), or (3) may, within 30 days of such
determination, be appealed to the Tax Court (and the Tax
Court shall have jurisdiction with respect to such matter).
``(B) Publicity of appeals.--Notwithstanding sections 7458
and 7461, the Tax Court may, in order to preserve the
anonymity, privacy, or confidentiality of any person under
this subsection, provide by rules adopted under section 7453
that portions of filings, hearings, testimony, evidence, and
reports in connection with proceedings under this subsection
may be closed to the public or to inspection by the
public.''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to information
provided on or after the date of the enactment of this Act.
(2) Publicity of award appeals.--The amendment made by
subsection (c) shall take effect as if included in the
amendments made by section 406 of the Tax Relief and Health
Care Act of 2006.

SEC. 544. MODIFICATIONS OF DEFINITION OF EMPLOYEES COVERED BY
DENIAL OF DEDUCTION FOR EXCESSIVE EMPLOYEE
REMUNERATION.

PART III--GENERAL PROVISIONS

SEC. 551. ENHANCED COMPLIANCE ASSISTANCE FOR SMALL
BUSINESSES.

SEC. 552. SMALL BUSINESS CHILD CARE GRANT PROGRAM.

[[Page 7811]]

(b) Application.--To be eligible to receive a grant under
this section, a State shall prepare and submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require,
including an assurance that the funds required under
subsection (e) will be provided.
(c) Amount and Period of Grant.--The Secretary shall
determine the amount of a grant to a State under this section
based on the population of the State as compared to the
population of all States receiving grants under this section.
The Secretary shall make the grant for a period of 3 years.
(d) Use of Funds.--
(1) In general.--A State shall use amounts provided under a
grant awarded under this section to provide assistance to
small businesses (or consortia formed in accordance with
paragraph (3)) located in the State to enable the small
businesses (or consortia) to establish and operate child care
programs. Such assistance may include--
(A) technical assistance in the establishment of a child
care program;
(B) assistance for the startup costs related to a child
care program;
(C) assistance for the training of child care providers;
(D) scholarships for low-income wage earners;
(E) the provision of services to care for sick children or
to provide care to school-aged children;
(F) the entering into of contracts with local resource and
referral organizations or local health departments;
(G) assistance for care for children with disabilities;
(H) payment of expenses for renovation or operation of a
child care facility; or
(I) assistance for any other activity determined
appropriate by the State.
(2) Application.--In order for a small business or
consortium to be eligible to receive assistance from a State
under this section, the small business involved shall prepare
and submit to the State an application at such time, in such
manner, and containing such information as the State may
require.
(3) Preference.--
(A) In general.--In providing assistance under this
section, a State shall give priority to an applicant that
desires to form a consortium to provide child care in a
geographic area within the State where such care is not
generally available or accessible.
(B) Consortium.--For purposes of subparagraph (A), a
consortium shall be made up of 2 or more entities that shall
include small businesses and that may include large
businesses, nonprofit agencies or organizations, local
governments, or other appropriate entities.
(4) Limitations.--With respect to grant funds received
under this section, a State may not provide in excess of
$500,000 in assistance from such funds to any single
applicant.
(e) Matching Requirement.--To be eligible to receive a
grant under this section, a State shall provide assurances to
the Secretary that, with respect to the costs to be incurred
by a covered entity receiving assistance in carrying out
activities under this section, the covered entity will make
available (directly or through donations from public or
private entities) non-Federal contributions to such costs in
an amount equal to--
(1) for the first fiscal year in which the covered entity
receives such assistance, not less than 50 percent of such
costs ($1 for each $1 of assistance provided to the covered
entity under the grant);
(2) for the second fiscal year in which the covered entity
receives such assistance, not less than 66\2/3\ percent of
such costs ($2 for each $1 of assistance provided to the
covered entity under the grant); and
(3) for the third fiscal year in which the covered entity
receives such assistance, not less than 75 percent of such
costs ($3 for each $1 of assistance provided to the covered
entity under the grant).
(f) Requirements of Providers.--To be eligible to receive
assistance under a grant awarded under this section, a child
care provider--
(1) who receives assistance from a State shall comply with
all applicable State and local licensing and regulatory
requirements and all applicable health and safety standards
in effect in the State; and
(2) who receives assistance from an Indian tribe or tribal
organization shall comply with all applicable regulatory
standards.
(g) State-Level Activities.--A State may not retain more
than 3 percent of the amount described in subsection (c) for
State administration and other State-level activities.
(h) Administration.--
(1) State responsibility.--A State shall have
responsibility for administering a grant awarded for the
State under this section and for monitoring covered entities
that receive assistance under such grant.
(2) Audits.--A State shall require each covered entity
receiving assistance under the grant awarded under this
section to conduct an annual audit with respect to the
activities of the covered entity. Such audits shall be
submitted to the State.
(3) Misuse of funds.--
(A) Repayment.--If the State determines, through an audit
or otherwise, that a covered entity receiving assistance
under a grant awarded under this section has misused the
assistance, the State shall notify the Secretary of the
misuse. The Secretary, upon such a notification, may seek
from such a covered entity the repayment of an amount equal
to the amount of any such misused assistance plus interest.
(B) Appeals process.--The Secretary shall by regulation
provide for an appeals process with respect to repayments
under this paragraph.
(i) Reporting Requirements.--
(1) 2-year study.--
(A) In general.--Not later than 2 years after the date on
which the Secretary first awards grants under this section,
the Secretary shall conduct a study to determine--
(i) the capacity of covered entities to meet the child care
needs of communities within States;
(ii) the kinds of consortia that are being formed with
respect to child care at the local level to carry out
programs funded under this section; and
(iii) who is using the programs funded under this section
and the income levels of such individuals.
(B) Report.--Not later than 28 months after the date on
which the Secretary first awards grants under this section,
the Secretary shall prepare and submit to the appropriate
committees of Congress a report on the results of the study
conducted in accordance with subparagraph (A).
(2) 4-year study.--
(A) In general.--Not later than 4 years after the date on
which the Secretary first awards grants under this section,
the Secretary shall conduct a study to determine the number
of child care facilities that are funded through covered
entities that received assistance through a grant awarded
under this section and that remain in operation, and the
extent to which such facilities are meeting the child care
needs of the individuals served by such facilities.
(B) Report.--Not later than 52 months after the date on
which the Secretary first awards grants under this section,
the Secretary shall prepare and submit to the appropriate
committees of Congress a report on the results of the study
conducted in accordance with subparagraph (A).
(j) Definitions.--In this section:
(1) Covered entity.--The term ``covered entity'' means a
small business or a consortium formed in accordance with
subsection (d)(3).
(2) Indian community.--The term ``Indian community'' means
a community served by an Indian tribe or tribal organization.
(3) Indian tribe; tribal organization.--The terms ``Indian
tribe'' and ``tribal organization'' have the meanings given
the terms in section 658P of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858n).
(4) Small business.--The term ``small business'' means an
employer who employed an average of at least 2 but not more
than 50 employees on the business days during the preceding
calendar year.
(5) State.--The term ``State'' has the meaning given the
term in section 658P of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858n).
(k) Application to Indian Tribes and Tribal
Organizations.--In this section:
(1) In general.--Except as provided in subsection (f)(1),
and in paragraphs (2) and (3), the term ``State'' includes an
Indian tribe or tribal organization.
(2) Geographic references.--The term ``State'' includes an
Indian community in subsections (c) (the second and third
place the term appears), (d)(1) (the second place the term
appears), (d)(3)(A) (the second place the term appears), and
(i)(1)(A)(i).
(3) State-level activities.--The term ``State-level
activities'' includes activities at the tribal level.
(l) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section, $50,000,000 for the period of fiscal
years 2008 through 2012.
(2) Studies and administration.--With respect to the total
amount appropriated for such period in accordance with this
subsection, not more than $2,500,000 of that amount may be
used for expenditures related to conducting studies required
under, and the administration of, this section.
(m) Termination of Program.--The program established under
subsection (a) shall terminate on September 30, 2012.

SEC. 553. STUDY OF UNIVERSAL USE OF ADVANCE PAYMENT OF EARNED
INCOME CREDIT.

SEC. 554. SENSE OF THE SENATE CONCERNING PERSONAL SAVINGS.

(a) Findings.--The Senate finds that--
(1) the personal saving rate in the United States is at its
lowest point since the Great

[[Page 7812]]

Depression, with the rate having fallen into negative
territory;
(2) the United States ranks at the bottom of the Group of
Twenty (G-20) nations in terms of net national saving rate;
(3) approximately half of all the working people of the
United States work for an employer that does not offer any
kind of retirement plan;
(4) existing savings policies enacted by Congress provide
limited incentives to save for low- and moderate-income
families; and
(5) the Social Security program was enacted to serve as the
safest component of a retirement system that also includes
employer-sponsored retirement plans and personal savings.
(b) Sense of the Senate.--It is the sense of the Senate
that--
(1) Congress should enact policies that promote savings
vehicles for retirement that are simple, easily accessible
and provide adequate financial security for all the people of
the United States;
(2) it is important to begin retirement saving as early as
possible to take full advantage of the power of compound
interest; and
(3) regularly contributing money to a financially-sound
investment account is one important method for helping to
achieve one's retirement goals.

SEC. 555. RENEWAL GRANTS FOR WOMEN'S BUSINESS CENTERS.

SEC. 556. REPORTS ON ACQUISITIONS OF ARTICLES, MATERIALS, AND
SUPPLIES MANUFACTURED OUTSIDE THE UNITED
STATES.

SEC. 557. SENSE OF THE SENATE REGARDING REPEAL OF 1993 INCOME
TAX INCREASE ON SOCIAL SECURITY BENEFITS.

SEC. 558. SENSE OF THE SENATE REGARDING PERMANENT TAX
INCENTIVES TO MAKE EDUCATION MORE AFFORDABLE
AND MORE ACCESSIBLE FOR AMERICAN FAMILIES.

SEC. 559. RESPONSIBLE GOVERNMENT CONTRACTOR REQUIREMENTS.

``(I) Authority.--The Administrator of General Services, in
consultation with the Secretary of Homeland Security and the
Attorney General, may waive operation of

[[Page 7813]]

clause (i) or may limit the duration or scope of a debarment
under clause (i) if such waiver or limitation is necessary to
national defense or in the interest of national security.
``(II) Notification to congress.--If the Administrator
grants a waiver or limitation described in subclause (I), the
Administrator shall submit to each member of the Committee on
the Judiciary of the Senate and of the Committee on the
Judiciary of the House of Representatives immediate notice of
such waiver or limitation.
``(III) Prohibition on judicial review.--The decision of
whether to debar or take alternative action under this clause
shall not be judicially reviewed.

SA 681. Mr. LEAHY submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the end of chapter 3 of title I, add the following:

SEC. 1316. AMOUNTS FOR PROCUREMENT OF DEPLOYABLE, TWO-WAY,
SPEECH-TO-SPEECH LANGUAGE TRANSLATION DEVICES
FOR USE IN IRAQ AND AFGHANISTAN.

Of the amount appropriated or otherwise made available by
this chapter under the heading ``Other Procurement, Army'',
the amount ($12,800,000) otherwise available for the Sequoyah
Foreign Language Translation System shall be available
instead for the procurement of deployable, two-way, speech-
to-speech language translation devices for use in Iraq and
Afghanistan.
______

SA 682. Mr. LEAHY (for himself, Mr. Bond, Ms. Landrieu, Mr. Dodd, Mr.
Bingaman, Ms. Mikulski, Ms. Cantwell, Mr. Baucus, Mr. Brown, Mr. Kerry,
Mr. Durbin, Mr. Rockefeller, Mr. Domenici, and Mr. Biden) submitted an
amendment intended to be proposed by him to the bill H.R. 1591, making
emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

At the end of chapter 3 of title I, add the following:

SEC. 1316. ADDITIONAL AMOUNT FOR NATIONAL GUARD AND RESERVE
EQUIPMENT FOR EQUIPMENT FOR THE ARMY NATIONAL
GUARD.

The amount appropriated by this chapter under the heading
``National Guard and Reserve Equipment'' is hereby increased
by $1,000,000,000, with the amount of the increase to be
available for equipment for the Army National Guard:
Provided, That the amount provided under this heading is
designated as an emergency requirement pursuant to section
402 of H. Con. Res. 376 (109th Congress) as made applicable
to the House of Representatives pursuant to H. Res. 818
(109th Congress), and as an emergency requirement pursuant to
section 402 of S. Con. Res. 83 (109th Congress) as made
applicable to the Senate by section 7035 of Public Law 109-
234.
______

SA 683. Mr. DORGAN (for himself, Mr. Conrad, Mr. Johnson, and Mr.
Thune) submitted an amendment intended to be proposed by him to the
bill H.R. 1591, making emergency supplemental appropriations for the
fiscal year ending September 30, 2007, and for other purposes; which
was ordered to lie on the table; as follows:

At the end of chapter 8 of title III, add the following:

SEC. 38__. AWARD OF MEDAL OF HONOR TO WOODROW W. KEEBLE FOR
VALOR DURING KOREAN WAR.

(a) Waiver of Time Limitations.--Notwithstanding any
applicable time limitation under section 3744 of title 10,
United States Code, or any other time limitation with respect
to the award of certain medals to individuals who served in
the Armed Forces, the President may award to Woodrow W.
Keeble the Medal of Honor under section 3741 of that title
for the acts of valor described in subsection (b).
(b) Acts of Valor.--The acts of valor referred to in
subsection (a) are the acts of Woodrow W. Keeble, then-acting
platoon leader, carried out on October 20, 1951, during the
Korean War.
______

SA 684. Mr. OBAMA (for himself, Mrs. McCaskill, Ms. Mikulski, Mr.
Harkin, Mr. Kerry, Ms. Cantwell, Mr. Biden, and Mr. Bingaman) submitted
an amendment intended to be proposed by him to the bill H.R. 1591,
making emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

At the end of chapter 3 of title I, add the following:

SEC. 1316. ADDITIONAL AMOUNT FOR DEFENSE HEALTH PROGRAM FOR
ADDITIONAL MENTAL HEALTH AND RELATED PERSONNEL.

SEC. 1317. ADDITIONAL AMOUNTS FOR OPERATION AND MAINTENANCE
FOR THE MILITARY DEPARTMENTS FOR IMPROVED
PHYSICAL DISABILITY EVALUATIONS OF MEMBERS OF
THE ARMED FORCES.

[[Page 7814]]

(B) Secure mechanisms for the submission of forms described
in subparagraph (A) by members of the Armed Forces described
in that subparagraph, and for the tracking by such members of
the acceptance and review of any forms so submitted.
(C) Secure mechanisms for advising members of the Armed
Forces described in subparagraph (A) of any additional
information, forms, or other items that are required for the
acceptance and review of any forms so submitted.
(D) The continuous availability of assistance for members
of the Armed Forces described in subparagraph (A), including
assistance through the caseworkers assigned to such members,
in submitting and tracking forms, including assistance in
obtaining information, forms, or other items described by
subparagraph (C).

SEC. 1318. ADDITIONAL AMOUNT FOR DEFENSE HEALTH PROGRAM FOR
WOMEN'S MENTAL HEALTH SERVICES.

SEC. 1319. OFFSET.

The amount appropriated or otherwise made available by this
chapter under the heading ``Iraq Freedom Fund'' is hereby
reduced by $103,000,000.

SEC. 1320. STUDY ON MENTAL HEALTH AND READJUSTMENT NEEDS OF
MEMBERS AND FORMER MEMBERS OF THE ARMED FORCES
WHO DEPLOYED IN OPERATION IRAQI FREEDOM AND
OPERATION ENDURING FREEDOM AND THEIR FAMILIES.

SA 685. Mr. KENNEDY submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. PROHIBITION ON MODIFICATIONS TO CONSULTING AND
EDUCATIONAL SERVICES OF THE ARMED FORCES
INSTITUTE OF PATHOLOGY.

No funds appropriated or otherwise made available by this
Act or any other Act may be obligated or expended to plan
for, prepare for, or implement any action to reduce,
eliminate, or substantially modify the consulting services or
educational services provided by the Armed Forces Institute
of Pathology.
______

SA 686. Mr. KENNEDY submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. PROHIBITION ON MODIFICATIONS TO CONSULTING AND
EDUCATIONAL SERVICES OF THE ARMED FORCES
INSTITUTE OF PATHOLOGY.

SA 687. Mr. KERRY submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 70, between lines 5 and 6, insert the following:

SEC. 2403. RESERVIST PROGRAMS.

(a) Definitions.--In this section--
(1) the term ``activated'' means receiving an order placing
a Reservist on active duty;
(2) the term ``active duty'' has the meaning given that
term in section 101 of title 10, United States Code;
(3) the terms ``Administration'' and ``Administrator'' mean
the Small Business Administration and the Administrator
thereof, respectively;
(4) the term ``Reservist'' means a member of a reserve
component of the Armed Forces, as described in section 10101
of title 10, United States Code;
(5) the term ``Service Corps of Retired Executives'' means
the Service Corps of Retired Executives authorized by section
8(b)(1) of the Small Business Act (15 U.S.C. 637(b)(1));
(6) the term ``small business concern'' has the meaning
given that term in section 3 of the Small Business Act (15
U.S.C. 632);
(7) the term ``small business development center'' means a
small business development center described in section 21 of
the Small Business Act (15 U.S.C. 648); and
(8) the term ``women's business center'' means a women's
business center described in section 29 of the Small Business
Act (15 U.S.C. 656).
(b) Application Period.--Section 7(b)(3)(C) of the Small
Business Act (15 U.S.C. 636(b)(3)(C)) is amended by striking
``90 days'' and inserting ``1 year''.
(c) Preapproval Process.--
(1) Definition.--In this subsection, the term ``eligible
Reservist'' means a Reservist who--
(A) has not been ordered to active duty;
(B) expects to be ordered to active duty during a period of
military conflict; and
(C) can reasonably demonstrate that the small business
concern for which that Reservist is a key employee will
suffer economic injury in the absence of that Reservist.
(2) Establishment.--Not later than 6 months after the date
of enactment of this Act, the Administrator shall establish a
preapproval process, under which the Administrator--
(A) may approve a loan to a small business concern under
section 7(b)(3) of the Small Business Act (15 U.S.C.
636(b)(3)) before an eligible Reservist employed by that
small business concern is activated; and
(B) shall distribute funds for any loan approved under
subparagraph (A) if that eligible Reservist is activated.
(d) Outreach and Technical Assistance Program.--
(1) In general.--Not later than 6 months after the date of
enactment of this Act, the Administrator, in consultation
with the Secretary of Veterans Affairs and the Secretary of
Defense, shall develop a comprehensive outreach and technical
assistance program (in this subsection referred to as the
``program'') to--
(A) market the loans available under section 7(b)(3) of the
Small Business Act (15 U.S.C. 636(b)(3)) to Reservists, and
family members of Reservists, that are on active duty and
that are not on active duty; and
(B) provide technical assistance to a small business
concern applying for a loan under that section.
(2) Components.--The program shall--
(A) incorporate appropriate websites maintained by the
Administration, the Department of Veterans Affairs, and the
Department of Defense; and
(B) require that information on the program is made
available to small business concerns directly through--
(i) the district offices and resource partners of the
Administration, including small business development centers,
women's business centers, and the Service Corps of Retired
Executives; and
(ii) other Federal agencies, including the Department of
Veterans Affairs and the Department of Defense.
(3) Report.--
(A) In general.--Not later than 6 months after the date of
enactment of this Act, and every 6 months thereafter until
the date that is 30 months after such date of enactment, the
Administrator shall submit to Congress a report on the status
of the program.
(B) Contents.--Each report submitted under subparagraph (A)
shall include--
(i) for the 6-month period ending on the date of that
report--

(I) the number of loans approved under section 7(b)(3) of
the Small Business Act (15 U.S.C. 636(b)(3));

[[Page 7815]]

(II) the number of loans disbursed under that section; and
(III) the total amount disbursed under that section; and

(ii) recommendations, if any, to make the program more
effective in serving small business concerns that employ
Reservists.
______

SA 688. Mr. LEVIN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 96, after line 19, add the following:
Sec. 3___. Section 20501 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as
amended by Public Law 110-5; 121 Stat. 26) is amended by
striking ``Superfund', $1,251,574,000.'' and inserting
``Superfund', $1,251,574,000: Provided, That $19,000,000 of
the amount provided for Environmental Protection Agency,
Science and Technology shall be for the Climate Protection
Program.''.
______

SA 689. Mr. LUGAR submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 56, after line 18, insert the following:

CIVILIAN RESERVE CORPS

SA 690. Mr. COCHRAN (for Mr. Lugar) proposed an amendment to the bill
H.R. 1591, making emergency supplemental appropriations for the fiscal
year ending September 30, 2007, and for other purposes; as follows:

On page 56, after line 18, insert the following:

CIVILIAN RESERVE CORPS

SA 691. Mr. WEBB (for himself and Mr. Byrd) submitted an amendment
intended to be proposed by him to the bill H.R. 1591, making emergency
supplemental appropriations for the fiscal year ending September 30,
2007, and for other purposes; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. __. PROHIBITION ON USE OF FUNDS FOR MILITARY OPERATIONS
IN IRAN.

(a) Prohibition.--No funds appropriated or otherwise made
available by this Act may be obligated or expended for
military operations or activities within or above the
territory of Iran, or within the territorial waters of Iran,
except pursuant to a specific authorization of Congress
enacted in a statute enacted after the date of the enactment
of this Act.
(b) Exceptions.--The prohibition in subsection (a) shall
not apply with respect to military operations or activities
as follows:
(1) Military operations or activities to directly repel or
thwart an attack or imminent attack on United States forces
or interests from within the territory of Iran.
(2) Military operations or activities in hot pursuit of
forces engaged outside the territory of Iran who thereafter
enter into Iran.
(3) Intelligence collection activities of which Congress
has been appropriately notified under applicable law.
(c) Report.--Not later than 24 hours after determining to
utilize funds referred to in subsection (a) for purposes of a
military operation described in subsection (b), the President
shall submit to the appropriate committees of Congress a
report on the determination, including a justification for
the determination.
______

SA 692. Mr. WEBB proposed an amendment to the bill H.R. 1591, making
emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; as follows:

At the appropriate place, insert the following:

SEC. __. PROHIBITION ON USE OF FUNDS FOR MILITARY OPERATIONS
IN IRAN.

SA 693. Mr. DODD submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the end of chapter 10 of title III, add the following:
Sec. 4004. For an additional amount to carry out housing
counseling, $25,000,000, to remain available until expended,
shall be made available to the Secretary of Housing and Urban
Development, Provided, That the amount provided under this
section is designated as an emergency requirement pursuant to
section 402 of H. Con. Res. 95 (109th Congress).
______

SA 694. Mr. WARNER submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 94, between lines 10 and 11, insert the following:
Sec. 2904. (a) It is the sense of Congress that the
realignment of functions from Walter Reed Army Medical
Center, as prescribed under the 2005 round of defense base
closure and realignment, should be accelerated to minimize
the uncertainty faced by the dedicated professionals serving
at the Center, and to ensure the quickest possible completion
of facilities and the immediate transfer of functions from
the Center.
(b) Of the funds appropriated by this chapter for military
construction under the heading ``Department of Defense Base
Closure Account, 2005'', $123,000,000 shall be deposited into
the Department of Defense Base Closure Account 2005
established under section 2906A(a)(1) of the Defense Base
Closure and Realignment Act of 1990 (part A of title XXIX of
Public Law 101-510; 10 U.S.C. 2687 note) and made available
for the acceleration of construction activities related to
the closure of Walter Reed Army Medical Center.
______

SA 695. Mr. WARNER submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

[[Page 7816]]

for the ability to accommodate contingency, mobilization,
surge, and future total force requirements at both existing
and potential receiving locations to support operations and
training.
(6) Congress took no action to disapprove the decisions of
the Commission, thus allowing the totality of the 2005 round
of defense base closure and realignment to become law on
November 20, 2005.
(7) Contained within the totality of the 2005 BRAC
decisions was the realignment of the Walter Reed Army Medical
Center in Washington, D.C., which would result in the closure
of the main post and the relocation of--
(A) all tertiary (sub-specialty and complex care) medical
services, Legal Medicine, and a Pathology Program Management
Office to National Naval Medical Center, Bethesda, Maryland;
(B) all non-tertiary (primary and specialty) patient care
functions to a new community hospital at Fort Belvoir,
Virginia;
(C) the Armed Forces Medical Examiner, DNA Registry, and
Accident Investigation to Dover Air Force Base, Delaware; and
(D) the Combat Casualty Care Research sub-function and the
enlisted histology technician training to Fort Sam Houston,
Texas.
(8) The decision to close Walter Reed Army Medical Center
is estimated to save the Department of Defense over
$170,000,000 annually after 2011.
(9) The cost to maintain and renovate current facilities at
Walter Reed Army Medical Center and in the national capitol
region was estimated by the Department of the Army to exceed
$13,000,000,000 over the next 13 years.
(10) A delay in the closure or realignment of a military
installation would cause further disruption and uncertainty
for the workforce supporting the installation and the local
community surrounding the installation until the action is
complete.
(11) The Defense Base Closure and Realignment Act of 1990
(part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
note) requires the Secretary of Defense to complete all such
closures and realignments no later than September 15, 2011,
in order minimize to the negative impact on military
operations and local communities by establishing clear,
specific goals for the realignment and closure activities.
(12) The inadequate conditions and processes recently
identified at Walter Reed Army Medical Center are, in part,
due to antiquated facilities spread over a 113-acre campus,
which was not initially designed for processes necessitated
by current military operations.
(13) The BRAC decision will allow the Department of Defense
to transform legacy medical facilities into a premier,
modern, state-of-the-art joint operational medical facility
that will combine the best military practitioners, medical
practices, and medical research efforts from both the
Department of the Army and the Department of the Navy under
one roof working side-by-side for wounded servicemembers.
(14) The acceleration of the construction at the receiving
locations from the closure of Walter Reed Army Medical Center
will allow for a quicker transition of functions and patient
services to newer, more modern facilities, significantly
improving the capability to care for our Nation's wounded
service members.
(15) Any action by Congress to delay or reverse the BRAC
decision to close Walter Reed Army Medical Center will result
in an unprecedented disruption to the BRAC process and
introduce a level of uncertainty in every other BRAC
decision, which could paralyze the efforts of the military
and local communities to faithfully carry out the decisions
made under the 2005 round of defense base closure and
realignment.
(b) It is the sense of Congress that the realignment of
functions from Walter Reed Army Medical Center, as prescribed
under the 2005 round of defense base closure and realignment,
should be accelerated to minimize the uncertainty faced by
the dedicated professionals serving at the Center, and to
ensure the quickest possible completion of facilities and the
immediate transfer of functions from the Center.
(c) There are authorized to be appropriated $123,000,000
for an additional amount to be deposited into the Department
of Defense Base Closure Account 2005 established under
section 2906A(a)(1) of the Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law
101-510; 10 U.S.C. 2687 note) for the purpose of accelerating
construction activities related to the closure of Walter Reed
Army Medical Center. Any funds so appropriated shall remain
available until expended.
______

SA 696. Mr. WARNER submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 94, between lines 10 and 11, insert the following:
Sec. 2904. (a) Congress makes the following findings:
(1) Congress authorized the 2005 Defense Base Closure and
Realignment (BRAC) process in the National Defense
Authorization Act for Fiscal Year 2002 (Public Law 107-107)
as the only fair and objective way for the Department of
Defense to reduce excess military base infrastructure and to
obtain savings from these reductions.
(2) In order to ensure a fair and objective process, the
President was required to present to Congress a list of bases
to be closed or realigned, as determined by the BRAC
Commission, in a totality without any changes or alterations.
(3) The President submitted to Congress the decisions of
the BRAC Commission under the 2005 round of defense base
closure and realignment on September 15, 2005, two and a half
years after the commencement of Operation Iraqi Freedom.
(4) As part of the BRAC process, the Secretary of Defense
was required by law to assess the probable threats to
national security and, as part of such assessment, determine
the potential, prudent, surge requirements to meet those
threats.
(5) The Department of Defense and the BRAC Commission were
required by law to determine whether each decision accounted
for the ability to accommodate contingency, mobilization,
surge, and future total force requirements at both existing
and potential receiving locations to support operations and
training.
(6) Congress took no action to disapprove the decisions of
the Commission, thus allowing the totality of the 2005 round
of defense base closure and realignment to become law on
November 20, 2005.
(7) Contained within the totality of the 2005 BRAC
decisions was the realignment of the Walter Reed Army Medical
Center in Washington, D.C., which would result in the closure
of the main post and the relocation of--
(A) all tertiary (sub-specialty and complex care) medical
services, Legal Medicine, and a Pathology Program Management
Office to National Naval Medical Center, Bethesda, Maryland;
(B) all non-tertiary (primary and specialty) patient care
functions to a new community hospital at Fort Belvoir,
Virginia;
(C) the Armed Forces Medical Examiner, DNA Registry, and
Accident Investigation to Dover Air Force Base, Delaware; and
(D) the Combat Casualty Care Research sub-function and the
enlisted histology technician training to Fort Sam Houston,
Texas.
(8) The decision to close Walter Reed Army Medical Center
is estimated to save the Department of Defense over
$170,000,000 annually after 2011.
(9) The cost to maintain and renovate current facilities at
Walter Reed Army Medical Center and in the national capitol
region was estimated by the Department of the Army to exceed
$13,000,000,000 over the next 13 years.
(10) A delay in the closure or realignment of a military
installation would cause further disruption and uncertainty
for the workforce supporting the installation and the local
community surrounding the installation until the action is
complete.
(11) The Defense Base Closure and Realignment Act of 1990
(part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
note) requires the Secretary of Defense to complete all such
closures and realignments no later than September 15, 2011,
in order minimize to the negative impact on military
operations and local communities by establishing clear,
specific goals for the realignment and closure activities.
(12) The inadequate conditions and processes recently
identified at Walter Reed Army Medical Center are, in part,
due to antiquated facilities spread over a 113-acre campus,
which was not initially designed for processes necessitated
by current military operations.
(13) The BRAC decision will allow the Department of Defense
to transform legacy medical facilities into a premier,
modern, state-of-the-art joint operational medical facility
that will combine the best military practitioners, medical
practices, and medical research efforts from both the
Department of the Army and the Department of the Navy under
one roof working side-by-side for wounded servicemembers.
(14) The acceleration of the construction at the receiving
locations from the closure of Walter Reed Army Medical Center
will allow for a quicker transition of functions and patient
services to newer, more modern facilities, significantly
improving the capability to care for our Nation's wounded
service members.
(15) Any action by Congress to delay or reverse the BRAC
decision to close Walter Reed Army Medical Center will result
in an unprecedented disruption to the BRAC process and
introduce a level of uncertainty in every other BRAC
decision, which could paralyze the efforts of the military
and local communities to faithfully carry out the decisions
made under the 2005 round of defense base closure and
realignment.
(b) It is the sense of Congress that the realignment of
functions from Walter Reed Army Medical Center, as prescribed
under the 2005 round of defense base closure and realignment,
should be accelerated to minimize the uncertainty faced by
the dedicated professionals serving at the Center, and to
ensure the quickest possible completion of

[[Page 7817]]

facilities and the immediate transfer of functions from the
Center.
(c) Of the funds appropriated by this chapter for military
construction under the heading ``Department of Defense Base
Closure Account, 2005'', $123,000,000 shall be deposited into
the Department of Defense Base Closure Account 2005
established under section 2906A(a)(1) of the Defense Base
Closure and Realignment Act of 1990 (part A of title XXIX of
Public Law 101-510; 10 U.S.C. 2687 note) and made available
for the acceleration of construction activities related to
the closure of Walter Reed Army Medical Center.
______

SA 697. Mr. WARNER (for himself, Mr. Byrd, Ms. Collins, Mr. Nelson of
Nebraska, Ms. Snowe, Mr. Salazar, Ms. Murkowski, and Mr. Smith)
submitted an amendment intended to be proposed by him to the bill H.R.
1591, making emergency supplemental appropriations for the fiscal year
ending September 30, 2007, and for other purposes; which was ordered to
lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. INDEPENDENT ASSESSMENT OF CAPABILITIES OF THE IRAQI
SECURITY FORCES.

(a) Findings.--Congress makes the following findings:
(1) The responsibility for Iraq's internal security and
halting sectarian violence must rest primarily with the
Government of Iraq, relying on the Iraqi Security Forces
(ISF).
(2) In quarterly reports to Congress, and in testimony
before a number of congressional committees, the Department
of Defense reported progress towards training and equipping
Iraqi Security Forces; however, the subsequent performance of
the Iraqi Security Forces has been uneven and occasionally
appeared inconsistent with those reports.
(3) On November 15, 2005, President Bush said, ``The plan
[is] that we will train Iraqi troops to be able to take the
fight to the enemy. And as I have consistently said, as the
Iraqis stand up, we will stand down''.
(4) In testimony to Congress, on November 15, 2006, U.S.
Central Command Commander General John Abizaid said, ``I
believe that more American forces prevent the Iraqis from
doing more, from taking more responsibility for their own
future''.
(5) On January 10, 2007, the President announced a new
strategy, which consists of three basic elements: diplomatic,
economic, and military; the central component of the military
element being an augmentation of the present level of the
U.S. military forces with more than 20,000 additional U.S.
military troops to Iraq to ``work alongside Iraqi units and
be embedded in their formations. Our troops will have a well-
defined mission: to help Iraqis clear and secure
neighborhoods, to help them protect the local population, and
to help ensure that the Iraqi forces left behind are capable
of providing the security that Baghdad needs''.
(6) 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.
(7) The latest National Intelligence Estimate (NIE) on
Iraq, entitled ``Prospects for Iraq's Stability: A
Challenging Road Ahead,'' released in January 2007, found:
``If strengthened Iraqi Security Forces (ISF), more loyal to
the government and supported by Coalition forces, are able to
reduce levels of violence and establish more effective
security for Iraq's population, Iraqi leaders could have an
opportunity to begin the process of political compromise
necessary for longer term stability, political progress, and
economic recovery''.
(8) The NIE also stated that ``[d]espite real improvements,
the Iraqi Security Forces (ISF)--particularly the Iraqi
police--will be hard pressed in the next 12-18 months to
execute significantly increased security responsibilities''.
(9) The current and prospective readiness of the ISF is
critical to (A) the long term stability of Iraq, (B) the
force protection of U.S. forces conducting combined
operations with the ISF; and (C) the scale of U.S. forces
deployed to Iraq.
(b) Independent Assessment of Capabilities of Iraqi
Security Forces.--
(1) In general.--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:
(A) The readiness of the Iraqi Security Forces (ISF) to
assume responsibility for maintaining the territorial
integrity of Iraq, denying international terrorists a safe
haven, and bringing greater security to Iraq's 18 provinces
in the next 12-18 months, and bringing an end to sectarian
violence to achieve national reconciliation.
(B) The training; equipping; command, control and
intelligence capabilities; and logistics capacity of the ISF.
(C) The likelihood that, given the ISF's record of
preparedness to date, following years of training and
equipping by US forces, the continued support of US troops
will contribute to the readiness of the ISF to fulfill the
missions outlined in subparagraph (A).
(2) Report.--Not later than 120 days after passage of this
Act, the designated private sector entity shall provide an
unclassified report, with a classified annex, containing its
findings, to the House and Senate Committees on Armed
Services, Appropriations, Foreign Relations, and
Intelligence.
______

SA 698. Mr. WARNER submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

SEC. 1. SENSE OF THE SENATE CONCERNING IRAQ.

Whereas on the fourth anniversary of Operation Iraqi
Freedom, the regime of a brutal dictator has been replaced by
a democratically elected government in the Arab world;
Whereas, the United Nations Security Council Resolution
1723, approved November 28, 2006, ``determin[ed] that the
situation in Iraq continues to constitute a threat to
international peace and security;''
Whereas, over 137,000 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 support of all Americans, which they
have strongly;
Whereas many American service personnel have lost their
lives, and many more have been wounded, in Iraq, and the
American people will always honor their sacrifices and honor
their families;
Whereas the U.S. Army and Marine Corps, including their
Reserve and National Guard organizations, together with
components of the other branches of the military, are under
enormous strain from multiple, extended deployments to Iraq
and Afghanistan, and these deployments, and those that will
follow, will have lasting impacts on the future recruiting,
retention and readiness of our nation's all volunteer force;
Whereas Iraq is experiencing a deteriorating problem of
sectarian and intra-sectarian violence based upon political
distrust and cultural differences between some Sunni and Shia
Muslims, concentrated primarily in Baghdad;
Whereas Iraqis must reach political settlements in order to
achieve reconciliation, and the failure of the Iraqis to
reach such settlements to support a truly unified government
greatly contributes to the increasing violence in Iraq;
Whereas the responsibility for Iraq's internal security and
halting sectarian violence must rest primarily with the
Government of Iraq, relying on the Iraqi Security Forces
(ISF);
Whereas 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;
Whereas it is essential that the 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;''
Whereas according to 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, 2007;
(b) referenced by the Iraq Study Group; and (c) posted on the
President of Iraq's website;
Whereas the Secretary of State indicated on January 30,
2007 that ``we expect the Prime Minister will follow through
on his pledges to the President that he would take difficult
decisions.''
Whereas the Secretary of State, the Secretary of Defense,
and the Chairman of the Joint Chiefs of Staff have testified
about, and, or, provided unclassified material to members of
Congress on Iraqi commitments and goals.
Whereas Congress acknowledges that the Baghdad Security
Plan is in it's initial months and while there are signs of
progress, there are also signs of difficulty and uncertainty.
Now therefore be it
Resolved that
(1) The United States strategy in Iraq, hereafter, should
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:
(a) forming a Constitutional Review Committee and
completing the Constitutional review;
(b) enacting and implementing legislation on de-
Bathification;
(c) enacting and implementing legislation to ensure the
equitable distribution of hydrocarbon resources to the people
of Iraq without regard to the sect or ethnicity of
recipients, and ensuring that the energy resources of Iraq
benefit Sunni Arabs, Shia

[[Page 7818]]

Arabs, Kurds, and other Iraqi citizens in an equitable
manner;
(d) enacting and implementing legislation on procedures to
form semi-autonomous regions;
(e) enacting and implementing legislation establishing an
Independent High Electoral Commission; provincial elections
law; provincial council authorities; and a date for
provincial elections;
(f) enacting and implementing legislation addressing
amnesty;
(g) enacting and implementing legislation establishing a
strong militia disbarment program to ensure that such
security forces are accountable only to the central
government and loyal to the constitution of Iraq;
(h) establishing supporting political media, economic, and
services committees in support of the Baghdad Security Plan;
(i) providing three trained and ready Iraqi brigades to
support Baghdad operations;
(j) 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;
(k) ensuring that the Iraqi Security Forces are providing
even handed enforcement of the law against all who break it;
(l) ensuring that, the Baghdad security plan is not
providing a safe haven for any outlaws, regardless of their
sectarian or political affiliation; as Prime Minister Maliki
stated to President Bush.
(m) establishing all of the planned joint security stations
in neighborhoods across Baghdad;
(n) increasing the number of Iraqi security forces units
capable of operating independently;
(o) allocating and spending $10 billion in Iraqi revenues
for reconstruction projects, including delivery of essential
services, on an equitable basis;
(2) The Iraqi government achieving, or demonstrating
satisfactory progress towards achieving these benchmarks
should be viewed as the condition for continued United States
military and economic involvement in Iraq;
Sec. 2. Reporting Requirements.
A. Report Required on Benchmarks
(1) The Commander, Multi-National Forces-Iraq, in
coordination with the United States Ambassador to Iraq, shall
submit a report (hereafter known as ``the report''), to the
Commander of U.S. Central Command not later than July 15,
2007, and every 60 days thereafter. The report shall detail
the status of each of the specific benchmarks established in
Section 1, and conclude whether satisfactory progress has
been made toward meeting the overall benchmarks as defined in
Section 1, in a timely manner.
(2) Upon receipt of the report, the Commander of U.S.
Central Command shall prepare an assessment of the report.
The report and the assessment shall be submitted to the
Secretary of Defense not later than July 20, 2007, and every
60 days thereafter.
(3) Upon receipt of the report and assessment, the
Secretary of Defense shall, in consultation with the
Secretary of State, prepare their independent assessment of
and submit the report and all assessments to the Committees
on Armed Services; Appropriations; Foreign Relations or
International Relations; and Intelligence of the Senate and
House of Representatives, not later than August 1, 2007, and
every 60 days thereafter.
(4) If the report or any of the assessments fail to
indicate satisfactory progress in any benchmark, the
President shall submit, within 30 days thereafter, a report
to Congress on those benchmarks that failed to achieve
satisfactory progress. The Presidents' report shall provide
an explanation of why satisfactory progress was not achieved
and describe revisions to the January 10, 2007 strategy, that
reflect how satisfactory progress will be attained.
(5) The reporting requirement detailed in Section 1227 of
the National Defense Authorization Act for Fiscal Year 2007
is terminated after a reporting period ending May 31, 2007.
B. Reports on Readiness of the Armed Forces.
(1) Commencing 60 days after the enactment of this Act, the
Secretaries of the military services, in coordination with
the Chiefs of the Services, shall report to the Committees on
Armed Services and Appropriations of the Senate and the House
of Representatives, not later than 30 days before the date of
embarkation, the deployment of any unit of the Armed Forces
of the United States, to include the Reserve Forces and
National Guard (hereafter known as ``the unit''), outside the
United States and its territories, that is not deemed fully
mission capable of performing reasonably assigned mission-
essential tasks to prescribed standards, under anticipated
conditions in the theater of operations, of the supported
combatant commander.
(2) Subsequently, the supported combatant commander, in
coordination with the Commander of Joint Forces Command,
shall assess the risk of the deployment of the unit as
significant, high, medium, or low, and specify corrective
actions to reduce that level of risk from significant, high,
or medium to low to the Secretary of Defense, not later than
20 days before the embarkation of the unit.
(3) Thereafter, the Secretary of Defense, in coordination
with Chairman of the Joint Chiefs of Staff, shall forward the
aforementioned risk assessment to the Committees on Armed
Services and Appropriations of the Senate and the House of
Representatives, not later than 10 days before the date of
embarkation of the unit, with a statement that the risk
associated with the deployment of ``the unit'' has been
mitigated to satisfaction, or that the deployment of ``the
unit'' has been canceled, delayed, or determined to be of
such significant importance that deployment of ``the unit''
is essential and the level of risk of that deployment is
vital to national security.

______

SA 699. Mr. GRASSLEY submitted an amendment intended to be proposed
by him to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

Strike section 2704 and insert the following:
Sec. 2704. (a) Elimination of Remainder of SCHIP Funding
Shortfalls for Fiscal Year 2007.--
(1) In general.--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, is
amended--
(A) by redesignating paragraphs (4) through (7) as
paragraphs (5) through (8), respectively;
(B) by inserting after paragraph (3), the following:
``(4) Additional amounts to eliminate remainder of fiscal
year 2007 funding shortfalls.--
``(A) Allotment authority.--From the amounts made available
under subparagraph (D) for additional allotments under this
paragraph, subject to subparagraph (C), 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 March 31, 2007, that the
projected Federal expenditures under such plan for the State
for fiscal year 2007 will exceed the sum of--
``(i) the amount of the State's allotments for each of
fiscal years 2005 and 2006 that will not be expended by the
end of fiscal year 2006;
``(ii) the amount of the State's allotment for fiscal year
2007; and
``(iii) the amounts, if any, that are to be redistributed
to the State during fiscal year 2007 in accordance with
paragraphs (1) and (2).
``(C) Proration rule.--If the amount available under
subparagraph (D) is less than the total amount of the
estimated shortfalls determined by the Secretary under
subparagraph (A), the amount of the allotment for each
remaining shortfall State determined under such subparagraph
shall be reduced proportionally.
``(D) Appropriation; allotment authority.--For the purpose
of providing additional allotments to remaining shortfall
States under this paragraph there is appropriated, out of any
funds in the Treasury not otherwise appropriated, such sums
as are necessary for fiscal year 2007, not to exceed
$750,000,000. Amounts appropriated pursuant to the preceding
sentence are designated as an emergency requirement pursuant
to section 402 of H. Con. Res. 95 (109th Congress).''.
(2) Conforming amendments.--Such section is further
amended--
(A) in paragraph (1)(B), by striking ``paragraph (4)(B)''
and inserting ``paragraph (5)(B)'';
(B) in paragraph (2)--
(i) in the paragraph heading, by striking ``remainder of
reduction'' and inserting ``part'';
(ii) in subparagraph (A), by striking ``paragraph (5)(B)''
and inserting ``paragraph (6)(B)''; and
(iii) in subparagraph (B), by striking ``paragraph (4)(B)''
and inserting ``paragraph (5)(B)'';
(C) in paragraph (5) (as redesignated by paragraph
(1)(A))--
(i) in subparagraph (A), by inserting ``or allotted'' after
``redistributed''; and
(ii) in subparagraph (B)--

(I) by inserting ``or allotted'' after ``redistributed'';
(II) by striking ``To the'' and inserting the following:

``(i) In general.--Subject to clause (ii), to the''; and

(III) by adding at the end the following new clause:

``(ii) Exception for remaining shortfall states with lowest
third ranking of uninsured children.--Only with respect to
the amounts allotted under paragraph(4) to a remaining
shortfall State described in subparagraph (B) of such
paragraph, clause (i) shall not apply to any such State that,
on

[[Page 7819]]

the basis of the most recent American Community Survey of the
Bureau of the Census (or, until such data is available, on
the basis of the 3 most recent Annual Social and Economic
Supplements of the Current Population Survey of the Bureau of
the Census), ranks in the lowest \1/3\ of States in terms of
the State's percentage of low-income children without health
insurance.'';
(D) in subparagraph (6)(A) (as so redesignated), by
striking ``and (3)'' and inserting ``(3), and (4)''; and
(E) in paragraph (7) (as so redesignated)--
(i) in the first sentence_

(I) by inserting ``or allotted'' after ``redistributed'';
and
(II) by inserting ``or allotments'' after
``redistributions''; and

(ii) in the second sentence, by striking ``and (3), in
accordance with paragraph (5)'' and inserting ``(3), and (4)
in accordance with paragraph (6)''.
(b) Improving Access to Dental Services and Mental Health
Services for Children.--Title V of the Social Security Act
(42 U.S.C. 701 et seq.) is amended by adding at the end the
following:

``SEC. 511. SEPARATE PROGRAM TO IMPROVE ACCESS TO DENTAL
SERVICES AND MENTAL HEALTH SERVICES.

``(a) Authority To Award Allotments.--For the purpose
described in subsection (b)(1), the Secretary shall allot to
each State which has transmitted an application under
subsection (c) that has been approved by the Secretary an
amount equal to the product of--
``(1) the amount appropriated in subsection (h) for the
period of fiscal years 2007 through 2012; and
``(2) the proportion that the number of low-income children
for that State bears to the total of such numbers of children
for all the States with approved applications under this
section for such period.
``(b) Purpose; Priority for Use of Funds.--
``(1) Purpose.--The purpose of an allotment under
subsection (a) to a State is to enable the State to carry out
activities that are designed to improve access to dental
services and mental health services for targeted low-income
children and other children with low income or limited
availability of health services.
``(2) Priority for use of funds.--In carrying out
activities with funds from an allotment made under this
section, a State shall give priority to activities that are
designed to improve access to dental services and mental
health services for targeted low-income children.
``(c) Application.--A State that desires to receive an
allotment under this section shall submit, not later than
June 1, 2007, an application to the Secretary in such form
and manner, and containing such information, as the Secretary
may require. Such application shall include--
``(1) a detailed description of the activities proposed to
be conducted with funds from the allotment;
``(2) quality and outcomes performance measures to evaluate
the effectiveness of such activities; and
``(3) an assurance that the State shall--
``(A) conduct an assessment of the effectiveness of such
activities against such performance measures; and
``(B) cooperate with the collection and reporting of data
and other information determined as a result of conducting
such assessments to the Secretary, in such form and manner as
the Secretary shall require.
``(d) Report.--Not later than March 31, 2008, the Secretary
shall submit a report to Congress on the activities conducted
with funds allotted under this section.
``(e) Supplement, Not Supplant.--Funds awarded under this
section shall be used to supplement, not supplant, non-
Federal funds that are otherwise available for activities
conducted with funds from an allotment made under this
section.
``(f) Application of Other Provisions.--
``(1) In general.--Sections 503, 507, and 508 shall apply
to allotments under subsection (a) to the same extent and in
the same manner as such sections apply to allotments under
section 502(c).
``(2) Reports.--Section 506 shall apply to allotments under
subsection (a) to the extent determined by the Secretary to
be appropriate.
``(g) Definitions.--In this section:
``(1) Targeted low-income children.--The term `targeted
low-income children' means, with respect to a State, children
enrolled in the State child health plan under title XXI.
``(2) Low-income children.--The term `low-income children'
has the meaning given the term `low-income child' under
section 2110(c)(4).
``(h) Appropriation.--There is appropriated, out of any
money in the Treasury not otherwise appropriated,
$250,000,000 for the period of fiscal years 2007 through 2012
for the purpose of making allotments under this section.''.
(c) Funding Provisions.--
(1) Repeal of the limited continuous enrollment provision
for certain beneficiaries under the medicare advantage
program.--
(A) In general.--Subparagraph (E) of section 1851(e)(2) of
the Social Security Act (42 U.S.C. 1395w-21(e)(2)), as added
by section 206(a) of division B of the Tax Relief and Health
Care Act of 2006 (Public Law 109-432), is repealed.
(B) Conforming amendment.--Section 1860D-1(b)(1)(B)(iii) of
the Social Security Act (42 U.S.C. 1395w-101(b)(1)(B)(iii)),
as amended by 206(b) of division B of the Tax Relief and
Health Care Act of 2006 (Public Law 109-432), is amended by
striking ``subparagraphs (B), (C), and (E)'' and inserting
``subparagraphs (B) and (C)''.
(C) Effective date.--The amendments made by this paragraph
shall take effect on the day after the date of enactment of
this Act.
(2) Requirement for use of tamper-resistant prescription
pads under the medicaid program.--
(A) In general.--Section 1903(i) of the Social Security Act
(42 U.S.C. 1396b(i)) is amended--
(i) by striking ``or'' at the end of paragraph (21);
(ii) by striking the period at the end of paragraph (22)
and inserting ``; or''; and
(iii) 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.''.
(B) Effective date.--The amendments made by subparagraph
(A) shall apply to prescriptions executed after September 30,
2007.
(3) Extension of ssi asset verification demonstration to
medicaid.--
(A) In general.--Subject to subparagraph (B), the Secretary
of Health and Human Services shall collaborate with the
Commissioner of Social Security to provide for the use, for
purposes of verifying financial eligibility for medical
assistance under State plans under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.), of the system
administered by the Commissioner (under section
1631(e)(1)(B)(ii) of such Act (42 U.S.C. 1383(e)(1)(B)(ii))
under which the Commissioner may obtain information held by
financial institutions in order to verify eligibility for
benefits under title XVI of such Act (42 U.S.C. 1381 et
seq.).
(B) Limitation.--For purposes of this paragraph, use of the
system described in subparagraph (A), and the information
obtained through such system, shall be limited to
determinations of eligibility for medical assistance in
States in which such system is being used by the Commissioner
to verify eligibility for benefits under such title XVI.
(C) Sharing by commissioner of information obtained from
financial institutions.--Notwithstanding the Right to
Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.) or any
other provision of law, information obtained by the
Commissioner from financial institutions under the system
described in subparagraph (A) may, for purposes of carrying
out this paragraph, be shared with the agencies of States
specified in subparagraph (B) which are administering the
plans of such States under title XIX of the Social Security
Act.
(d) General Effective Date; Applicability.--Except as
otherwise provided, the amendments made by this section take
effect on the date of enactment of this Act and apply without
fiscal year limitation.

______

SA 700. Mr. GRASSLEY submitted an amendment intended to be proposed
by him to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

Beginning on page 85, between lines 7 and 8, insert the
following:

Nothing in the preceding sentence shall be construed as
prohibiting the Secretary of Health and Human Services during
the period described in such sentence from promulgating or
implementing a rule designed to prevent fraud and protect the
integrity of the Medicaid program or the State Children's
Health Insurance Program, reduce inappropriate spending under
such programs, or protect hospitals and other providers of
items and services under such programs by permitting such
hospitals and providers to retain all allowable Federal,
State, and local payments for items or services provided to
recipients of medical assistance under the Medicaid program
or child health assistance under the State Children's Health
Insurance Program.
______

SA 701. Mr. GRASSLEY submitted an amendment intended to be proposed
by him to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

Beginning on page 85, between lines 7 and 8, insert the
following:

[[Page 7820]]

prevent fraud and protect the integrity of the Medicaid
program or the State Children's Health Insurance Program or
reduce inappropriate spending under such programs.
______

SA 702. Mr. DeMINT submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

Strike subtitle C of title IV.
______

SA 703. Mr. DeMINT submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 135, strike lines 5 through 14.
______

SA 704. Mr. DeMINT submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the end of chapter 1 of title III, insert the following:

SEC. 3104. SPINACH.

No funds made available under this Act shall be used to
make payments to growers and first handlers, as defined by
the Secretary of Health and Human Services, of fresh spinach
that were unable to market spinach crops as a result of the
Food and Drug Administration Public Health Advisory issued on
September 14, 2006.
______

SA 705. Mr. HAGEL (for himself, Mr. Webb, and Mr. Salazar) submitted
an amendment intended to be proposed by him to the bill H.R. 1591,
making emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

CHAPTER 8--ADDITIONAL POLICY AND REQUIREMENTS ON IRAQ

SEC. 1803. LIMITATION ON AVAILABILITY OF FUNDS FOR DEPLOYMENT
OF UNITS UNLESS FULLY MISSION CAPABLE.

(a) Limitation.--Commencing 120 days after the date of the
enactment of this Act, no funds appropriated or otherwise
made available by this Act or any other Act may be obligated
or expended for the deployment of a unit or member of the
Armed Forces unless the Chief of Staff of the Armed Force
concerned certifies to the congressional defense committees,
not later than 15 days before the date of such deployment,
that the unit or member, as the case may be, is fully mission
capable.
(b) Fully Mission Capable.--For purposes of this section, a
unit or member of the Armed Forces shall be rated as being
fully mission capable only if--
(1) the unit or member is capable of performing assigned
mission-essential tasks to prescribed standards under
anticipated conditions in the theater of operations of
deployment in accordance with guidelines set forth in the
Department of Defense readiness reporting system; and
(2) the unit or member is capable of performing such other
assigned mission tasks, including mission tasks outside the
theater of operations of deployment, that could reasonably be
expected to arise during the period of deployment.
(c) Applicability to Voluntary Deployments.--The limitation
in subsection (a) shall apply with respect to the deployment
of any member of the Armed Forces who voluntarily consents to
deployment.
(d) Waiver Authority.--
(1) In general.--The President may waive the applicability
of the limitation in subsection (a) to the deployment of a
unit or member of the Armed Forces if the President certifies
to the congressional defense committees, not later than 15
days before the date of such deployment, that--
(A) any equipment required for the unit or member to be
deployed as fully mission capable that is not available at
the time of deployment will be supplied upon arrival in the
theater of operations to which the unit or member is
deployed; and
(B) the unit or member has met, prior to deployment, all
other requirements to be rated as fully mission capable.
(2) Case-by-case basis.--Any waiver under paragraph (1)
shall be made on a case-by-case basis.
(e) Additional Waiver Authority.--The President may waive
the applicability of the limitation in subsection (a) in the
event of a requirement for the use of military force in time
of national emergency.

SEC. 1804. LIMITATION ON EXTENDING LENGTH OF DEPLOYMENTS FOR
OPERATION IRAQI FREEDOM.

(a) Limitation.--Commencing 120 days after the date of the
enactment of this Act, no funds appropriated or otherwise
made available by this Act or any other Act may be obligated
or expended to deploy, continue the deployment, or execute
any order that has the effect of extending the deployment of
a unit or member of the Armed Forces for Operation Iraqi
Freedom as follows:
(1) In the case of a unit or member of the Army (including
a unit or member of the Army National Guard or the Army
Reserve), if the deployment or continuation or extension of
deployment would result in the deployment of the unit or
member for more than 365 consecutive days.
(2) In the case of a unit or member of the Marine Corps
(including a unit or member of the Marine Corps Reserve), if
the deployment or continuation or extension of deployment
would result in the deployment of the unit or member for more
than 210 consecutive days.
(b) Exception.--The limitation in subsection (a) shall not
apply to designated key command headquarters personnel or
other members of the Armed Forces who are required to
maintain continuity of mission and situational awareness
between rotating forces.
(c) Deployment Defined.--For purposes of this section, the
term ``deployment'' has the meaning given that term in
section 991(b) of title 10, United States Code.

SEC. 1805. MINIMUM PERIOD BETWEEN DEPLOYMENTS FOR OPERATION
IRAQI FREEDOM.

(a) Minimum Period for Certain Members of the Army and
Marine Corps.--
(1) In general.--Commencing 120 days after the date of the
enactment of this Act, no funds appropriated or otherwise
made available by this Act or any other Act may be obligated
or expended to deploy for Operation Iraqi Freedom a unit or
member of the Armed Forces specified in paragraph (2) unless
the period between the deployment of the unit or member for
Operation Iraqi Freedom covered by this subsection and the
previous deployment of the unit or member is equal to or
longer than the period of such previous deployment of the
unit or member.
(2) Covered units and members.--The units and members of
the Armed Forces specified in this paragraph are as follows:
(A) Units and members of the regular Army.
(B) Units and members of the regular Marine Corps.
(b) Minimum Period for Members of Army Reserve, Marine
Corps Reserve, and Army National Guard.--Commencing 120 days
after the date of the enactment of this Act, no funds
appropriated or otherwise made available by this Act or any
other Act may be obligated or expended to deploy for
Operation Iraqi Freedom a unit or member of the Army Reserve,
Marine Corps Reserve, or Army National Guard if the unit or
member has been deployed at any time within the five years
preceding the date of the deployment covered by this
subsection.
(c) Deployment Defined.--For purposes of this section, the
term ``deployment'' has the meaning given that term in
section 991(b) of title 10, United States Code.

SEC. 1806. ADDITIONAL AMOUNT FOR NATIONAL GUARD PERSONNEL,
ARMY.

The amount appropriated by chapter 3 of this title under
the heading ``National Guard Personnel, Army'' is hereby
increased by $597,100,000.

SEC. 1807. ADDITIONAL AMOUNT FOR OPERATION AND MAINTENANCE,
ARMY NATIONAL GUARD.

The amount appropriated by chapter 3 of this title under
the heading ``Operation and Maintenance, Army National
Guard'' is hereby increased by $460,700,000.

SEC. 1808. ADDITIONAL AMOUNT FOR NATIONAL GUARD AND RESERVE
EQUIPMENT.

The amount appropriated by chapter 3 of this title under
the heading ``National Guard and Reserve Equipment'' is
hereby increased by $364,900,000, with the amount of such
increase to be available for National Guard equipment needs.

SEC. 1809. ADDITIONAL AMOUNT FOR PROCUREMENT, MARINE CORPS.

The amount appropriated by chapter 3 of this title under
the heading ``Procurement, Marine Corps'' is hereby increased
by $1,700,000,000, with the amount of such increase to be
available for additional Mine Resistant Ambush Protection
vehicles.

SEC. 1810. REPORTS ON UNITED STATES EFFORTS FOR IRAQ.

[[Page 7821]]

(C) To utilize United States political, economic, and
military assistance to facilitate the reconstruction of Iraq.
(D) To secure the delivery of pledged economic and other
assistance for Iraq from the international community, and to
secure additional pledges of assistance for Iraq, including
specific information regarding the status of assistance
pledges for Iraq from the international community.
(E) To ensure that the Government of Iraq is increasing and
improving the delivery of basic services to the people of
Iraq.
(2) Information on status of pledged assistance.--The
description of pledged economic and other assistance for Iraq
under paragraph (1)(D) shall include information on the
current status of delivery of assistance for Iraq under
pledges of assistance from the international community.
(c) Form of Report.--Each report under this section shall
be submitted in unclassified form, but may include a
classified annex.
(d) Appropriate Committees of Congress Defined.--In this
section, the term ``appropriate committees of Congress''
means--
(1) the Committees on Armed Services, Foreign Relations,
and Appropriations of the Senate; and
(2) the Committees on Armed Services, Foreign Affairs, and
Appropriations of the House of Representatives.

SEC. 1811. EMERGENCY DESIGNATION.

Amounts provided in this chapter are designated as
emergency requirements pursuant to section 403 of H.Con.Res.
95 (109th Congress), the concurrent resolution on the budget
for fiscal year 2006.
______

SA 706. Mr. BURR submitted an amendment intended to be proposed to
amendment SA 641 proposed by Mr. Byrd to the bill H.R. 1591, making
emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

On page 112, line 14, insert before the period the
following: ``; in addition to the amounts transferred, an
additional $111,000,000 is appropriated to the Public Health
and Social Services Emergency Fund to carry out section 319L
of the Public Health Service Act (the Biomedical Advanced
Research and Development Authority), which shall be
designated as an emergency requirement pursuant to section
402 of S. Con. Res. 83 (109th Congress), the concurrent
resolution on the budget for fiscal year 2007, as made
applicable in the Senate by section 7035 of Public Law 109-
234, to remain available until expended, and to be offset
through striking the amount appropriated in chapter I of
title III (Department of Agriculture) for the Farm Service
Agency, reducing the amount appropriated under section 412 by
$12,000,000, and striking the amount appropriated under
section 416''.
______

SA 707. Mr. HAGEL (for himself, Mr. Webb, and Mr. Salazar) submitted
an amendment intended to be proposed by him to the bill H.R. 1591,
making emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

At the end of title I, add the following:

CHAPTER 8--ADDITIONAL POLICY AND REQUIREMENTS ON IRAQ

SEC. 1801. SENSE OF CONGRESS.

It is the sense of Congress that--
(1) the primary objective of United States strategy in Iraq
should be to achieve a political solution and national
reconciliation in Iraq through increased, concerted regional
and international diplomacy;
(2) the United States should engage all nations in the
Middle East, including Iraq's immediate neighbors, in
developing a regional, internationally sponsored peace and
reconciliation process for Iraq;
(3) the regional security conferences on Iraq that are
being organized by Prime Minister of Iraq Nuri al-Maliki
represent important first steps to achieve a more robust
diplomatic initiative that should be given the full and
direct support by the President; and
(4) the President and the Government of Iraq should build
on the momentum of the Baghdad conference and the upcoming
ministerial meeting by convening a diplomatic conference with
the purpose of bringing stability to the region, reinforcing
national reconciliation efforts, achieving the withdrawal of
the United States Armed Forces from Iraq, and promoting a
comprehensive regional diplomatic solution.

SEC. 1802. FINDINGS REGARDING THE UNITED STATES ARMED FORCES.

Congress makes the following findings:
(1) The United States Armed Forces, and the members of the
Armed Forces and their families, are under enormous strain
from multiple, extended deployments to Iraq and Afghanistan.
(2) The readiness of nondeployed Army and Marine Corps
units has declined significantly due to a lack of equipment
and insufficient time to train, thereby jeopardizing their
capability to respond quickly and effectively to other crises
or contingencies in the world.
(3) The Navy and Air Force are sustaining high operating
tempos in support of military operations in Iraq and
Afghanistan, as well as conducting other global missions.
(4) Each of the Armed Forces has important requirements to
modernize and recapitalize aging legacy platforms and systems
if our Nation is to possess the military capability needed to
defend against a growing array of dynamic and challenging
threats to our national security.
(5) The current deployment tempo of the United States Armed
Forces will have lasting impacts on the future recruitment,
retention, and readiness of the All-Volunteer Force.

SEC. 1803. LIMITATION ON AVAILABILITY OF FUNDS FOR DEPLOYMENT
OF UNITS UNLESS FULLY MISSION CAPABLE.

SEC. 1804. LIMITATION ON EXTENDING LENGTH OF DEPLOYMENTS FOR
OPERATION IRAQI FREEDOM.

(a) Limitation.--Commencing 120 days after the date of the
enactment of this Act, no funds appropriated or otherwise
made available by this Act or any other Act may be obligated
or expended to deploy, continue the deployment, or execute
any order that has the effect of extending the deployment of
a unit or member of the Armed Forces for Operation Iraqi
Freedom as follows:
(1) In the case of a unit or member of the Army (including
a unit or member of the Army National Guard or the Army
Reserve), if the deployment or continuation or extension of
deployment would result in the deployment of the unit or
member for more than 365 consecutive days.
(2) In the case of a unit or member of the Marine Corps
(including a unit or member of the Marine Corps Reserve), if
the deployment or continuation or extension of deployment
would result in the deployment of the unit or member for more
than 210 consecutive days.
(b) Exception.--The limitation in subsection (a) shall not
apply to designated key command headquarters personnel or
other members of the Armed Forces who are required to
maintain continuity of mission and situational awareness
between rotating forces.
(c) Deployment Defined.--For purposes of this section, the
term ``deployment'' has the meaning given that term in
section 991(b) of title 10, United States Code.

SEC. 1805. MINIMUM PERIOD BETWEEN DEPLOYMENTS FOR OPERATION
IRAQI FREEDOM.

[[Page 7822]]

be obligated or expended to deploy for Operation Iraqi
Freedom a unit or member of the Armed Forces specified in
paragraph (2) unless the period between the deployment of the
unit or member for Operation Iraqi Freedom covered by this
subsection and the previous deployment of the unit or member
is equal to or longer than the period of such previous
deployment of the unit or member.
(2) Covered units and members.--The units and members of
the Armed Forces specified in this paragraph are as follows:
(A) Units and members of the regular Army.
(B) Units and members of the regular Marine Corps.
(b) Minimum Period for Members of Army Reserve, Marine
Corps Reserve, and Army National Guard.--Commencing 120 days
after the date of the enactment of this Act, no funds
appropriated or otherwise made available by this Act or any
other Act may be obligated or expended to deploy for
Operation Iraqi Freedom a unit or member of the Army Reserve,
Marine Corps Reserve, or Army National Guard if the unit or
member has been deployed at any time within the five years
preceding the date of the deployment covered by this
subsection.
(c) Deployment Defined.--For purposes of this section, the
term ``deployment'' has the meaning given that term in
section 991(b) of title 10, United States Code.

SEC. 1806. ADDITIONAL AMOUNT FOR NATIONAL GUARD PERSONNEL,
ARMY.

The amount appropriated by chapter 3 of this title under
the heading ``National Guard Personnel, Army'' is hereby
increased by $597,100,000.

SEC. 1807. ADDITIONAL AMOUNT FOR OPERATION AND MAINTENANCE,
ARMY NATIONAL GUARD.

The amount appropriated by chapter 3 of this title under
the heading ``Operation and Maintenance, Army National
Guard'' is hereby increased by $460,700,000.

SEC. 1808. ADDITIONAL AMOUNT FOR NATIONAL GUARD AND RESERVE
EQUIPMENT.

SEC. 1809. ADDITIONAL AMOUNT FOR PROCUREMENT, MARINE CORPS.

SEC. 1810. REPORTS ON UNITED STATES EFFORTS FOR IRAQ.

(a) Reports Required.--Not later than 60 days after the
date of the enactment of this Act, and every 60 days
thereafter, the President shall submit to the appropriate
committees of Congress a report that sets forth a
comprehensive description and assessment of current United
States diplomatic, political, and economic efforts with
respect to Iraq.
(b) Elements.--
(1) In general.--Each report under subsection (a) shall set
forth, current as of the date of such report, a comprehensive
description and assessment of United States diplomatic,
political, and economic efforts with respect to Iraq,
including efforts as follows:
(A) To achieve broad-based national political
reconciliation in Iraq that includes all of Iraq's
communities.
(B) To engage all nations in the Middle East, including
Iraq's immediate neighbors, the international community, and
international institutions in developing a regional,
internationally-sponsored reconciliation and reconstruction
process for Iraq.
(C) To utilize United States political, economic, and
military assistance to facilitate the reconstruction of Iraq.
(D) To secure the delivery of pledged economic and other
assistance for Iraq from the international community, and to
secure additional pledges of assistance for Iraq, including
specific information regarding the status of assistance
pledges for Iraq from the international community.
(E) To ensure that the Government of Iraq is increasing and
improving the delivery of basic services to the people of
Iraq.
(2) Information on status of pledged assistance.--The
description of pledged economic and other assistance for Iraq
under paragraph (1)(D) shall include information on the
current status of delivery of assistance for Iraq under
pledges of assistance from the international community.
(c) Form of Report.--Each report under this section shall
be submitted in unclassified form, but may include a
classified annex.
(d) Appropriate Committees of Congress Defined.--In this
section, the term ``appropriate committees of Congress''
means--
(1) the Committees on Armed Services, Foreign Relations,
and Appropriations of the Senate; and
(2) the Committees on Armed Services, Foreign Affairs, and
Appropriations of the House of Representatives.

SEC. 1811. EMERGENCY DESIGNATION.

Amounts provided in this chapter are designated as
emergency requirements pursuant to section 403 of H. Con.
Res. 95 (109th Congress), the concurrent resolution on the
budget for fiscal year 2006.
______

SA 708. Mr. KYL submitted an amendment intended to be proposed by him
to the bill H.R. 1591, making emergency supplemental appropriations for
the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At page 53, strike line 12 and all that follows through
page 56, line 4 and insert the following:
``(b) Automatic Relief for the Hmong and Other Groups That
Do Not Pose a Threat to the United States.--For purposes of
section 212(a)(3)(B) of the Immigration and Nationality Act
(INA) (8 U.S.C. Sec. 1181(a)(3)(B)), the Hmong, the
Montagnards, the Karen National Union/Karen National
Liberation Army (KNU/KNLA), the Chin National Front/Chin
National Army (CNF/CNA), the Chin National League for
Democracy (CNLD), the Kayan New Land Party (KNLP), the Arakan
Liberation Party (ALP), the Mustangs, the Alzados, and the
Karenni National Progressive Party shall not be considered to
be a terrorist organization on the basis of any act or event
occurring before the date of the enactment of this section.
Nothing in this subsection may be construed to alter or limit
the authority of the Secretary of State and Secretary of
Homeland Security to exercise their discretionary authority
pursuant to section 212(d)(3)(B)(i) of the INA (8 U.S.C.
1182(d)(3)(B)(i).''.
(c) Technical Correction.--Section 212(a)(3)(B)(ii) of the
INA (8 U.S.C. 1182(a)(3)(B)(vi)) is amended by striking
``Subclause (VII)'' and replacing it with ``Subclause (IX)''.
(d) Effective Date.--The amendments made by this section
shall take effect on the date of enactment of this section,
and these amendments and section 212(a)(3)(B)(ii) of the INA
(8 U.S.C. 1182(a)(3)(B)(ii), as amended by this section,
shall apply to--
(1) removal proceedings instituted before, on, or after the
date of the enactment of this section; and
(2) acts and conditions constituting a ground for
inadmissibility, excludability, deportation, or removal
occurring or existing before, on, or after such date.
______

SA 709. Mr. WYDEN (for himself, Mr. Reid, Mr. Baucus, Mr. Bingaman,
Mr. Smith, Ms. Cantwell, Mr. Domenici, Mrs. Boxer, Mr. Craig, Mrs.
Murray, Mr. Crapo, Mr. Tester, and Mr. Stevens, Mr. Bennett Ms.
Murkowski, Mr. Salazar, and Mrs. Feinstein) proposed an amendment to
the bill H.R. 1591, making emergency supplemental appropriations for
the fiscal year ending September 30, 2007, and for other purposes; as
follows:

Beginning on page 75, strike line 25 and all that follows
through page 76, line 15, and insert the following:

SEC. 2601. SECURE RURAL SCHOOLS AND COMMUNITY SELF-
DETERMINATION PROGRAM.

(a) Reauthorization of the Secure Rural Schools and
Community Self-Determination Act of 2000.--The Secure Rural
Schools and Community Self-Determination Act of 2000 (16
U.S.C. 500 note; Public Law 106-393) is amended by striking
sections 1 through 403 and inserting the following:

``SECTION 1. SHORT TITLE.

``This Act may be cited as the `Secure Rural Schools and
Community Self-Determination Act of 2000'.

``SEC. 2. PURPOSES.

``The purposes of this Act are--
``(1) to stabilize and transition payments to counties to
provide funding for schools and roads that supplements other
available funds;
``(2) to make additional investments in, and create
additional employment opportunities through, projects that--
``(A)(i) improve the maintenance of existing
infrastructure;
``(ii) implement stewardship objectives that enhance forest
ecosystems; and
``(iii) restore and improve land health and water quality;
``(B) enjoy broad-based support; and
``(C) have objectives that may include--
``(i) road, trail, and infrastructure maintenance or
obliteration;
``(ii) soil productivity improvement;
``(iii) improvements in forest ecosystem health;
``(iv) watershed restoration and maintenance;
``(v) the restoration, maintenance, and improvement of
wildlife and fish habitat;
``(vi) the control of noxious and exotic weeds; and
``(vii) the reestablishment of native species; and
``(3) to improve cooperative relationships among--
``(A) the people that use and care for Federal land; and
``(B) the agencies that manage the Federal land.

``SEC. 3. DEFINITIONS.

``In this Act:
``(1) Adjusted share.--The term `adjusted share' means the
number equal to the quotient obtained by dividing--

[[Page 7823]]

``(A) the number equal to the quotient obtained by
dividing--
``(i) the base share for the eligible county; by
``(ii) the income adjustment for the eligible county; by
``(B) the number equal to the sum of the quotients obtained
under subparagraph (A) and paragraph (8)(A) for all eligible
counties.
``(2) Base share.--The term `base share' means the number
equal to the average of--
``(A) the quotient obtained by dividing--
``(i) the number of acres of Federal land described in
paragraph (7)(A) in each eligible county; by
``(ii) the total number acres of Federal land in all
eligible counties in all eligible States; and
``(B) the quotient obtained by dividing--
``(i) the amount equal to the average of the 3 highest 25-
percent payments and safety net payments made to each
eligible State for each eligible county during the
eligibility period; by
``(ii) the amount equal to the sum of the averages
calculated under clause (i) and paragraph (9)(B)(i) for all
eligible counties in all eligible States during the
eligibility period.
``(3) County payment.--The term `county payment' means the
payment for an eligible county calculated under section
101(b).
``(4) Eligible county.--The term `eligible county' means
any county that--
``(A) contains Federal land (as defined in paragraph (7));
and
``(B) elects to receive a share of the State payment or the
county payment under section 102(b).
``(5) Eligibility period.--The term `eligibility period'
means fiscal year 1986 through fiscal year 1999.
``(6) Eligible state.--The term `eligible State' means a
State or territory of the United States that received a 25-
percent payment for 1 or more fiscal years of the eligibility
period.
``(7) Federal land.--The term `Federal land' means--
``(A) land within the National Forest System, as defined in
section 11(a) of the Forest and Rangeland Renewable Resources
Planning Act of 1974 (16 U.S.C. 1609(a)) exclusive of the
National Grasslands and land utilization projects designated
as National Grasslands administered pursuant to the Act of
July 22, 1937 (7 U.S.C. 1010-1012); and
``(B) such portions of the revested Oregon and California
Railroad and reconveyed Coos Bay Wagon Road grant land as are
or may hereafter come under the jurisdiction of the
Department of the Interior, which have heretofore or may
hereafter be classified as timberlands, and power-site land
valuable for timber, that shall be managed, except as
provided in the former section 3 of the Act of August 28,
1937 (50 Stat. 875; 43 U.S.C. 1181c), for permanent forest
production.
``(8) 50-Percent adjusted share.--The term `50-percent
adjusted share' means the number equal to the quotient
obtained by dividing--
``(A) the number equal to the quotient obtained by
dividing--
``(i) the 50-percent base share for the eligible county; by
``(ii) the income adjustment for the eligible county; by
``(B) the number equal to the sum of the quotients obtained
under subparagraph (A) and paragraph (1)(A) for all eligible
counties.
``(9) 50-Percent base share.--The term `50-percent base
share' means the number equal to the average of--
``(A) the quotient obtained by dividing--
``(i) the number of acres of Federal land described in
paragraph (7)(B) in each eligible county; by
``(ii) the total number acres of Federal land in all
eligible counties in all eligible States; and
``(B) the quotient obtained by dividing--
``(i) the amount equal to the average of the 3 highest 50-
percent payments made to each eligible county during the
eligibility period; by
``(ii) the amount equal to the sum of the averages
calculated under clause (i) and paragraph (2)(B)(i) for all
eligible counties in all eligible States during the
eligibility period.
``(10) 50-percent payment.--The term `50-percent payment'
means the payment that is the sum of the 50-percent share
otherwise paid to a county pursuant to title II of the Act of
August 28, 1937 (chapter 876; 50 Stat. 875; 43 U.S.C. 1181f),
and the payment made to a county pursuant to the Act of May
24, 1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f-1 et
seq.).
``(11) Full funding amount.--The term `full funding amount'
means--
``(A) $526,079,656 for fiscal year 2007;
``(B) $520,000,000 for fiscal year 2008; and
``(C) for fiscal year 2009 and each fiscal year thereafter,
the amount that is equal to 90 percent of the full funding
amount for the preceding fiscal year.
``(12) Income adjustment.--The term `income adjustment'
means the square of the quotient obtained by dividing--
``(A) the per capita personal income for each eligible
county; by
``(B) the median per capita personal income of all eligible
counties.
``(13) Per capita personal income.--The term `per capita
personal income' means the most recent per capita personal
income data, as determined by the Bureau of Economic
Analysis.
``(14) Safety net payments.--The term `safety net payments'
means the special payment amounts paid to States and counties
required by section 13982 or 13983 of the Omnibus Budget
Reconciliation Act of 1993 (Public Law 103-66; 16 U.S.C. 500
note; 43 U.S.C. 1181f note).
``(15) Secretary concerned.--The term `Secretary concerned'
means--
``(A) the Secretary of Agriculture or the designee of the
Secretary of Agriculture with respect to the Federal land
described in paragraph (7)(A); and
``(B) the Secretary of the Interior or the designee of the
Secretary of the Interior with respect to the Federal land
described in paragraph (7)(B).
``(16) State payment.--The term `State payment' means the
payment for an eligible State calculated under section
101(a).
``(17) 25-Percent payment.--The term `25-percent payment'
means the payment to States required by the sixth paragraph
under the heading of `forest service' in the Act of May 23,
1908 (35 Stat. 260; 16 U.S.C. 500), and section 13 of the Act
of March 1, 1911 (36 Stat. 963; 16 U.S.C. 500).

``TITLE I--SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL
LAND

``SEC. 101. SECURE PAYMENTS FOR STATES CONTAINING FEDERAL
LAND.

``(a) State Payment.--For each of fiscal years 2007 through
2011, the Secretary of Agriculture shall calculate for each
eligible State an amount equal to the sum of the products
obtained by multiplying--
``(1) the adjusted share for each eligible county within
the eligible State; by
``(2) the full funding amount for the fiscal year.
``(b) County Payment.--For each of fiscal years 2007
through 2011, the Secretary of the Interior shall calculate
for each eligible county that received a 50-percent payment
during the eligibility period an amount equal to the product
obtained by multiplying--
``(1) the 50-percent adjusted share for the eligible
county; by
``(2) the full funding amount for the fiscal year.

``SEC. 102. PAYMENTS TO STATES AND COUNTIES.

``(a) Payment Amounts.--Except as provided in section 103,
the Secretary of the Treasury shall pay to--
``(1) a State an amount equal to the sum of the amounts
elected under subsection (b) by each county within the State
for--
``(A) if the county is eligible for the 25-percent payment,
the share of the 25-percent payment; or
``(B) the share of the State payment of the eligible
county; and
``(2) a county an amount equal to the amount elected under
subsection (b) by each county for--
``(A) if the county is eligible for the 50-percent payment,
the 50-percent payment; or
``(B) the county payment for the eligible county.
``(b) Election to Receive Payment Amount.--
``(1) Election; submission of results.--
``(A) In general.--The election to receive a share of the
State payment, the county payment, a share of the State
payment and the county payment, a share of the 25-percent
payment, the 50-percent payment, or a share of the 25-percent
payment and the 50-percent payment, as applicable, shall be
made at the discretion of each affected county by August 1,
2007, and August 1 of each second fiscal year thereafter, in
accordance with paragraph (2), and transmitted to the
Secretary concerned by the Governor of each eligible State.
``(B) Failure to transmit.--If an election for an affected
county is not transmitted to the Secretary concerned by the
date specified under subparagraph (A), the affected county
shall be considered to have elected to receive a share of the
State payment, the county payment, or a share of the State
payment and the county payment, as applicable.
``(2) Duration of election.--
``(A) In general.--A county election to receive a share of
the 25-percent payment or 50-percent payment, as applicable
shall be effective for 2 fiscal years.
``(B) Full funding amount.--If a county elects to receive a
share of the State payment or the county payment, the
election shall be effective for all subsequent fiscal years
through fiscal year 2011.
``(3) Source of payment amounts.--The payment to an
eligible State or eligible county under this section for a
fiscal year shall be derived from--
``(A) any revenues, fees, penalties, or miscellaneous
receipts, exclusive of deposits to any relevant trust fund,
special account, or permanent operating funds, received by
the Federal Government from activities by the Bureau of Land
Management or the Forest Service on the applicable Federal
land; and
``(B) to the extent of any shortfall, out of any amounts in
the Treasury of the United States not otherwise appropriated.
``(c) Distribution and Expenditure of Payments.--

[[Page 7824]]

``(1) Distribution method.--A State that receives a payment
under subsection (a) for Federal land described in section
3(7)(A) shall distribute the appropriate payment amount among
the appropriate counties in the State in accordance with--
``(A) the Act of May 23, 1908 (16 U.S.C. 500); and
``(B) section 13 of the Act of March 1, 1911 (36 Stat. 963;
16 U.S.C. 500).
``(2) Expenditure purposes.--Subject to subsection (d),
payments received by a State under subsection (a) and
distributed to counties in accordance with paragraph (1)
shall be expended as required by the laws referred to in
paragraph (1).
``(d) Expenditure Rules for Eligible Counties.--
``(1) Allocations.--
``(A) Use of portion in same manner as 25-percent payment
or 50-percent payment, as applicable.--Except as provided in
paragraph (3)(B), if an eligible county elects to receive its
share of the State payment or the county payment, not less
than 80 percent, but not more than 85 percent, of the funds
shall be expended in the same manner in which the 25-percent
payments or 50-percent payment, as applicable, are required
to be expended.
``(B) Election as to use of balance.--Except as provided in
subparagraph (C), an eligible county shall elect to do 1 or
more of the following with the balance of any funds not
expended pursuant to subparagraph (A):
``(i) Reserve any portion of the balance for projects in
accordance with title II.
``(ii) Reserve not more than 7 percent of the total share
for the eligible county of the State payment or the county
payment for projects in accordance with title III.
``(iii) Return the portion of the balance not reserved
under clauses (i) and (ii) to the Treasury of the United
States.
``(C) Counties with modest distributions.--In the case of
each eligible county to which more than $100,000, but less
than $350,000, is distributed for any fiscal year pursuant to
either or both of paragraphs (1)(B) and (2)(B) of subsection
(a), the eligible county, with respect to the balance of any
funds not expended pursuant to subparagraph (A) for that
fiscal year, shall--
``(i) reserve any portion of the balance for--

``(I) carrying out projects under title II;
``(II) carrying out projects under title III; or
``(III) a combination of the purposes described in
subclauses (I) and (II); or

``(I) be considered to have elected to expend 85 percent of
the funds in accordance with paragraph (1)(A); and
``(II) return the balance to the Treasury of the United
States.

``(B) Counties with minor distributions.--In the case of
each eligible county to which less than $100,000 is
distributed for any fiscal year pursuant to either or both of
paragraphs (1)(B) and (2)(B) of subsection (a), the eligible
county may elect to expend all the funds in the same manner
in which the 25-percent payments or 50-percent payments, as
applicable, are required to be expended.
``(e) Time for Payment.--The payments required under this
section for a fiscal year shall be made as soon as
practicable after the end of that fiscal year.

``SEC. 103. TRANSITION PAYMENTS TO THE STATES OF CALIFORNIA,
OREGON, AND WASHINGTON.

``(a) Definitions.--In this section:
``(1) Adjusted amount.--The term `adjusted amount' means,
with respect to a covered State--
``(A) for fiscal year 2007--
``(i) the sum of the amounts paid in fiscal year 2006 under
section 102(a)(2) (as in effect on September 29, 2006) for
the eligible counties in the covered State that have elected
under section 102(b) to receive a share of the State payment
for fiscal year 2007; and
``(ii) the sum of the amounts paid in fiscal year 2006
under section 103(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment
for fiscal year 2007;
``(B) for fiscal year 2008, 90 percent of--
``(i) the sum of the amounts paid in fiscal year 2006 under
section 102(a)(2) (as in effect on September 29, 2006) for
the eligible counties in the covered State that have elected
under section 102(b) to receive a share of the State payment
for fiscal year 2008; and
``(ii) the sum of the amounts paid in fiscal year 2006
under section 103(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment
for fiscal year 2008;
``(C) for fiscal year 2009, 81 percent of--
``(i) the sum of the amounts paid in fiscal year 2006 under
section 102(a)(2) (as in effect on September 29, 2006) for
the eligible counties in the covered State that have elected
under section 102(b) to receive a share of the State payment
for fiscal year 2009; and
``(ii) the sum of the amounts paid in fiscal year 2006
under section 103(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment
for fiscal year 2009; and
``(D) for fiscal year 2010, 73 percent of--
``(i) the sum of the amounts paid in fiscal year 2006 under
section 102(a)(2) (as in effect on September 29, 2006) for
the eligible counties in the covered State that have elected
under section 102(b) to receive a share of the State payment
for fiscal year 2010; and
``(ii) the sum of the amounts paid in fiscal year 2006
under section 103(a)(2) (as in effect on September 29, 2006)
for the eligible counties in the State of Oregon that have
elected under section 102(b) to receive the county payment
for fiscal year 2010.
``(2) Covered state.--The term `covered State' means each
of the States of California, Oregon, and Washington.
``(b) Transition Payments.--For each of fiscal years 2007
through 2010, in lieu of the payment amounts that otherwise
would have been made under paragraphs (1)(B) and (2)(B) of
section 102(a), the Secretary of the Treasury shall pay the
adjusted amount to each covered State and the eligible
counties within the covered State, as applicable, from funds
in the Treasury of the United States not otherwise
appropriated.
``(c) Distribution of Adjusted Amount in Oregon and
Washington.--It is the intent of Congress that the method of
distributing the payments under subsection (b) among the
counties in the States of Oregon and Washington for each of
fiscal years 2007 through 2010 be in the same proportion that
the payments were distributed to the eligible counties in
fiscal year 2006.
``(d) Distribution of Payments in California.--The
following payments shall be distributed among the eligible
counties in the State of California in the same proportion
that payments under section 102(a)(2) (as in effect on
September 29, 2006) were distributed to the eligible counties
in fiscal year 2006:
``(1) Payments to the State of California under subsection
(b).
``(2) The shares of the eligible counties of the State
payment for California under section 102 for fiscal year
2011.
``(e) Treatment of Payments.--For purposes of this Act, any
payment made under subsection (b) shall be considered to be a
payment made under section 102(a).

``TITLE II--SPECIAL PROJECTS ON FEDERAL LAND

``SEC. 201. DEFINITIONS.

``In this title:
``(1) Participating county.--The term `participating
county' means an eligible county that elects under section
102(d) to expend a portion of the Federal funds received
under section 102 in accordance with this title.
``(2) Project funds.--The term `project funds' means all
funds an eligible county elects under section 102(d) to
reserve for expenditure in accordance with this title.
``(3) Resource advisory committee.--The term `resource
advisory committee' means--
``(A) an advisory committee established by the Secretary
concerned under section 205; or
``(B) an advisory committee determined by the Secretary
concerned to meet the requirements of section 205.
``(4) Resource management plan.--The term `resource
management plan' means--
``(A) a land use plan prepared by the Bureau of Land
Management for units of the Federal land described in section
3(7)(B) pursuant to section 202 of the Federal Land Policy
and Management Act of 1976 (43 U.S.C. 1712); or
``(B) a land and resource management plan prepared by the
Forest Service for units of the National Forest System
pursuant to section 6 of the Forest and Rangeland Renewable
Resources Planning Act of 1974l (16 U.S.C. 1604).

``SEC. 202. GENERAL LIMITATION ON USE OF PROJECT FUNDS.

``(a) Limitation.--Project funds shall be expended solely
on projects that meet the requirements of this title.
``(b) Authorized Uses.--Project funds may be used by the
Secretary concerned for the purpose of entering into and
implementing cooperative agreements with willing Federal
agencies, State and local governments, private and nonprofit
entities, and landowners for protection, restoration, and
enhancement of fish and wildlife habitat, and other resource
objectives consistent with the purposes of this Act on
Federal land and on non-

[[Page 7825]]

Federal land where projects would benefit the resources on
Federal land.

``SEC. 203. SUBMISSION OF PROJECT PROPOSALS.

``(a) Submission of Project Proposals to Secretary
Concerned.--
``(1) Projects funded using project funds.--Not later than
September 30 for fiscal year 2007, and each September 30
thereafter for each succeeding fiscal year through fiscal
year 2011, each resource advisory committee shall submit to
the Secretary concerned a description of any projects that
the resource advisory committee proposes the Secretary
undertake using any project funds reserved by eligible
counties in the area in which the resource advisory committee
has geographic jurisdiction.
``(2) Projects funded using other funds.--A resource
advisory committee may submit to the Secretary concerned a
description of any projects that the committee proposes the
Secretary undertake using funds from State or local
governments, or from the private sector, other than project
funds and funds appropriated and otherwise available to do
similar work.
``(3) Joint projects.--Participating counties or other
persons may propose to pool project funds or other funds,
described in paragraph (2), and jointly propose a project or
group of projects to a resource advisory committee
established under section 205.
``(b) Required Description of Projects.--In submitting
proposed projects to the Secretary concerned under subsection
(a), a resource advisory committee shall include in the
description of each proposed project the following
information:
``(1) The purpose of the project and a description of how
the project will meet the purposes of this title.
``(2) The anticipated duration of the project.
``(3) The anticipated cost of the project.
``(4) The proposed source of funding for the project,
whether project funds or other funds.
``(5)(A) Expected outcomes, including how the project will
meet or exceed desired ecological conditions, maintenance
objectives, or stewardship objectives.
``(B) An estimate of the amount of any timber, forage, and
other commodities and other economic activity, including jobs
generated, if any, anticipated as part of the project.
``(6) A detailed monitoring plan, including funding needs
and sources, that--
``(A) tracks and identifies the positive or negative
impacts of the project, implementation, and provides for
validation monitoring; and
``(B) includes an assessment of the following:
``(i) Whether or not the project met or exceeded desired
ecological conditions; created local employment or training
opportunities, including summer youth jobs programs such as
the Youth Conservation Corps where appropriate.
``(ii) Whether the project improved the use of, or added
value to, any products removed from land consistent with the
purposes of this title.
``(7) An assessment that the project is to be in the public
interest.
``(c) Authorized Projects.--Projects proposed under
subsection (a) shall be consistent with section 2.

``SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY SECRETARY
CONCERNED.

``(a) Conditions for Approval of Proposed Project.--The
Secretary concerned may make a decision to approve a project
submitted by a resource advisory committee under section 203
only if the proposed project satisfies each of the following
conditions:
``(1) The project complies with all applicable Federal laws
(including regulations).
``(2) The project is consistent with the applicable
resource management plan and with any watershed or subsequent
plan developed pursuant to the resource management plan and
approved by the Secretary concerned.
``(3) The project has been approved by the resource
advisory committee in accordance with section 205, including
the procedures issued under subsection (e) of that section.
``(4) A project description has been submitted by the
resource advisory committee to the Secretary concerned in
accordance with section 203.
``(5) The project will improve the maintenance of existing
infrastructure, implement stewardship objectives that enhance
forest ecosystems, and restore and improve land health and
water quality.
``(b) Environmental Reviews.--
``(1) Request for payment by county.--The Secretary
concerned may request the resource advisory committee
submitting a proposed project to agree to the use of project
funds to pay for any environmental review, consultation, or
compliance with applicable environmental laws required in
connection with the project.
``(2) Conduct of environmental review.--If a payment is
requested under paragraph (1) and the resource advisory
committee agrees to the expenditure of funds for this
purpose, the Secretary concerned shall conduct environmental
review, consultation, or other compliance responsibilities in
accordance with Federal laws (including regulations).
``(3) Effect of refusal to pay.--
``(A) In general.--If a resource advisory committee does
not agree to the expenditure of funds under paragraph (1),
the project shall be deemed withdrawn from further
consideration by the Secretary concerned pursuant to this
title.
``(B) Effect of withdrawal.--A withdrawal under
subparagraph (A) shall be deemed to be a rejection of the
project for purposes of section 207(c).
``(c) Decisions of Secretary Concerned.--
``(1) Rejection of projects.--
``(A) In general.--A decision by the Secretary concerned to
reject a proposed project shall be at the sole discretion of
the Secretary concerned.
``(B) No administrative appeal or judicial review.--
Notwithstanding any other provision of law, a decision by the
Secretary concerned to reject a proposed project shall not be
subject to administrative appeal or judicial review.
``(C) Notice of rejection.--Not later than 30 days after
the date on which the Secretary concerned makes the rejection
decision, the Secretary concerned shall notify in writing the
resource advisory committee that submitted the proposed
project of the rejection and the reasons for rejection.
``(2) Notice of project approval.--The Secretary concerned
shall publish in the Federal Register notice of each project
approved under subsection (a) if the notice would be required
had the project originated with the Secretary.
``(d) Source and Conduct of Project.--Once the Secretary
concerned accepts a project for review under section 203, the
acceptance shall be deemed a Federal action for all purposes.
``(e) Implementation of Approved Projects.--
``(1) Cooperation.--Notwithstanding chapter 63 of title 31,
United States Code, using project funds the Secretary
concerned may enter into contracts, grants, and cooperative
agreements with States and local governments, private and
nonprofit entities, and landowners and other persons to
assist the Secretary in carrying out an approved project.
``(2) Best value contracting.--
``(A) In general.--For any project involving a contract
authorized by paragraph (1) the Secretary concerned may elect
a source for performance of the contract on a best value
basis.
``(B) Factors.--The Secretary concerned shall determine
best value based on such factors as--
``(i) the technical demands and complexity of the work to
be done;
``(ii)(I) the ecological objectives of the project; and
``(II) the sensitivity of the resources being treated;
``(iii) the past experience by the contractor with the type
of work being done, using the type of equipment proposed for
the project, and meeting or exceeding desired ecological
conditions; and
``(iv) the commitment of the contractor to hiring highly
qualified workers and local residents.
``(3) Merchantable timber contracting pilot program.--
``(A) Establishment.--The Secretary concerned shall
establish a pilot program to implement a certain percentage
of approved projects involving the sale of merchantable
timber using separate contracts for--
``(i) the harvesting or collection of merchantable timber;
and
``(ii) the sale of the timber.
``(B) Annual percentages.--Under the pilot program, the
Secretary concerned shall ensure that, on a nationwide basis,
not less than the following percentage of all approved
projects involving the sale of merchantable timber are
implemented using separate contracts:
``(i) For fiscal year 2007, 25 percent.
``(ii) For fiscal year 2008, 35 percent.
``(iii) For fiscal year 2009, 45 percent.
``(iv) For each of fiscal years 2010 and 2011, 50 percent.
``(C) Inclusion in pilot program.--The decision whether to
use separate contracts to implement a project involving the
sale of merchantable timber shall be made by the Secretary
concerned after the approval of the project under this title.
``(D) Assistance.--
``(i) In general.--The Secretary concerned may use funds
from any appropriated account available to the Secretary for
the Federal land to assist in the administration of projects
conducted under the pilot program.
``(ii) Maximum amount of assistance.--The total amount
obligated under this subparagraph may not exceed $1,000,000
for any fiscal year during which the pilot program is in
effect.
``(E) Review and report.--
``(i) Initial report.--Not later than September 30, 2009,
the Comptroller General shall submit to the Committees on
Agriculture, Nutrition, and Forestry and Energy and Natural
Resources of the Senate and the Committees on Agriculture and
Natural Resources of the House of Representatives a report
assessing the pilot program.
``(ii) Annual report.--The Secretary concerned shall submit
to the Committees on Agriculture, Nutrition, and Forestry and
Energy and Natural Resources of the Senate

[[Page 7826]]

and the Committees on Agriculture and Natural Resources of
the House of Representatives an annual report describing the
results of the pilot program.
``(f) Requirements for Project Funds.--The Secretary shall
ensure that at least 50 percent of all project funds be used
for projects that are primarily dedicated--
``(1) to road maintenance, decommissioning, or
obliteration; or
``(2) to restoration of streams and watersheds.

``SEC. 205. RESOURCE ADVISORY COMMITTEES.

``(a) Establishment and Purpose of Resource Advisory
Committees.--
``(1) Establishment.--The Secretary concerned shall
establish and maintain resource advisory committees to
perform the duties in subsection (b), except as provided in
paragraph (4).
``(2) Purpose.--The purpose of a resource advisory
committee shall be--
``(A) to improve collaborative relationships; and
``(B) to provide advice and recommendations to the land
management agencies consistent with the purposes of this
title.
``(3) Access to resource advisory committees.--To ensure
that each unit of Federal land has access to a resource
advisory committee, and that there is sufficient interest in
participation on a committee to ensure that membership can be
balanced in terms of the points of view represented and the
functions to be performed, the Secretary concerned may,
establish resource advisory committees for part of, or 1 or
more, units of Federal land.
``(4) Existing advisory committees.--
``(A) In general.--An advisory committee that meets the
requirements of this section, an advisory committee
established before the date of enactment of this Act, or an
advisory committee determined by the Secretary concerned to
meet the requirements of this section before the date of
enactment of this Act may be deemed by the Secretary
concerned to be a resource advisory committee for the
purposes of this title.
``(B) Charter.--A charter for a committee described in
subparagraph (A) that was filed on or before September 29,
2006, shall be considered to be filed for purposes of this
Act.
``(C) Bureau of land management advisory committees.--The
Secretary of the Interior may deem a resource advisory
committee meeting the requirements of subpart 1784 of part
1780 of title 43, Code of Federal Regulations, as a resource
advisory committee for the purposes of this title.
``(b) Duties.--A resource advisory committee shall--
``(1) review projects proposed under this title by
participating counties and other persons;
``(2) propose projects and funding to the Secretary
concerned under section 203;
``(3) provide early and continuous coordination with
appropriate land management agency officials in recommending
projects consistent with purposes of this Act under this
title;
``(4) provide frequent opportunities for citizens,
organizations, tribes, land management agencies, and other
interested parties to participate openly and meaningfully,
beginning at the early stages of the project development
process under this title;
``(5)(A) monitor projects that have been approved under
section 204; and
``(B) advise the designated Federal official on the
progress of the monitoring efforts under subparagraph (A);
and
``(6) make recommendations to the Secretary concerned for
any appropriate changes or adjustments to the projects being
monitored by the resource advisory committee.
``(c) Appointment by the Secretary.--
``(1) Appointment and term.--
``(A) In general.--The Secretary concerned, shall appoint
the members of resource advisory committees for a term of 4
years beginning on the date of appointment.
``(B) Reappointment.--The Secretary concerned may reappoint
members to subsequent 4-year terms.
``(2) Basic requirements.--The Secretary concerned shall
ensure that each resource advisory committee established
meets the requirements of subsection (d).
``(3) Initial appointment.--Not later than 180 days after
the date of the enactment of this Act, the Secretary
concerned shall make initial appointments to the resource
advisory committees.
``(4) Vacancies.--The Secretary concerned shall make
appointments to fill vacancies on any resource advisory
committee as soon as practicable after the vacancy has
occurred.
``(5) Compensation.--Members of the resource advisory
committees shall not receive any compensation.
``(d) Composition of Advisory Committee.--
``(1) Number.--Each resource advisory committee shall be
comprised of 15 members.
``(2) Community interests represented.--Committee members
shall be representative of the interests of the following 3
categories:
``(A) 5 persons that--
``(i) represent organized labor or non-timber forest
product harvester groups;
``(ii) represent developed outdoor recreation, off highway
vehicle users, or commercial recreation activities;
``(iii) represent--

``(I) energy and mineral development interests; or
``(II) commercial or recreational fishing interests;

``(iv) represent the commercial timber industry; or
``(v) hold Federal grazing or other land use permits, or
represent nonindustrial private forest land owners, within
the area for which the committee is organized.
``(B) 5 persons that represent--
``(i) nationally recognized environmental organizations;
``(ii) regionally or locally recognized environmental
organizations;
``(iii) dispersed recreational activities;
``(iv) archaeological and historical interests; or
``(v) nationally or regionally recognized wild horse and
burro interest groups, wildlife or hunting organizations, or
watershed associations.
``(C) 5 persons that--
``(i) hold State elected office (or a designee);
``(ii) hold county or local elected office;
``(iii) represent American Indian tribes within or adjacent
to the area for which the committee is organized;
``(iv) are school officials or teachers; or
``(v) represent the affected public at large.
``(3) Balanced representation.--In appointing committee
members from the 3 categories in paragraph (2), the Secretary
concerned shall provide for balanced and broad representation
from within each category.
``(4) Geographic distribution.--The members of a resource
advisory committee shall reside within the State in which the
committee has jurisdiction and, to extent practicable, the
Secretary concerned shall ensure local representation in each
category in paragraph (2).
``(5) Chairperson.--A majority on each resource advisory
committee shall select the chairperson of the committee.
``(e) Approval Procedures.--
``(1) In general.--Subject to paragraph (3), each resource
advisory committee shall establish procedures for proposing
projects to the Secretary concerned under this title.
``(2) Quorum.--A quorum must be present to constitute an
official meeting of the committee.
``(3) Approval by majority of members.--A project may be
proposed by a resource advisory committee to the Secretary
concerned under section 203(a), if the project has been
approved by a majority of members of the committee from each
of the 3 categories in subsection (d)(2).
``(f) Other Committee Authorities and Requirements.--
``(1) Staff assistance.--A resource advisory committee may
submit to the Secretary concerned a request for periodic
staff assistance from Federal employees under the
jurisdiction of the Secretary.
``(2) Meetings.--All meetings of a resource advisory
committee shall be announced at least 1 week in advance in a
local newspaper of record and shall be open to the public.
``(3) Records.--A resource advisory committee shall
maintain records of the meetings of the committee and make
the records available for public inspection.

``SEC. 206. USE OF PROJECT FUNDS.

``(a) Agreement Regarding Schedule and Cost of Project.--
``(1) Agreement between parties.--The Secretary concerned
may carry out a project submitted by a resource advisory
committee under section 203(a) using project funds or other
funds described in section 203(a)(2), if, as soon as
practicable after the issuance of a decision document for the
project and the exhaustion of all administrative appeals and
judicial review of the project decision, the Secretary
concerned and the resource advisory committee enter into an
agreement addressing, at a minimum, the following:
``(A) The schedule for completing the project.
``(B) The total cost of the project, including the level of
agency overhead to be assessed against the project.
``(C) For a multiyear project, the estimated cost of the
project for each of the fiscal years in which it will be
carried out.
``(D) The remedies for failure of the Secretary concerned
to comply with the terms of the agreement consistent with
current Federal law.
``(2) Limited use of federal funds.--The Secretary
concerned may decide, at the sole discretion of the Secretary
concerned, to cover the costs of a portion of an approved
project using Federal funds appropriated or otherwise
available to the Secretary for the same purposes as the
project.
``(b) Transfer of Project Funds.--
``(1) Initial transfer required.--As soon as practicable
after the agreement is reached under subsection (a) with
regard to a project to be funded in whole or in part using
project funds, or other funds described in section 203(a)(2),
the Secretary concerned shall transfer to the applicable unit
of National Forest System land or Bureau of Land Management
District an amount of project funds equal to--
``(A) in the case of a project to be completed in a single
fiscal year, the total amount specified in the agreement to
be paid using project funds, or other funds described in
section 203(a)(2); or
``(B) in the case of a multiyear project, the amount
specified in the agreement to be paid

[[Page 7827]]

using project funds, or other funds described in section
203(a)(2) for the first fiscal year.
``(2) Condition on project commencement.--The unit of
National Forest System land or Bureau of Land Management
District concerned, shall not commence a project until the
project funds, or other funds described in section 203(a)(2)
required to be transferred under paragraph (1) for the
project, have been made available by the Secretary concerned.
``(3) Subsequent transfers for multiyear projects.--
``(A) In general.--For the second and subsequent fiscal
years of a multiyear project to be funded in whole or in part
using project funds, the unit of National Forest System land
or Bureau of Land Management District concerned shall use the
amount of project funds required to continue the project in
that fiscal year according to the agreement entered into
under subsection (a).
``(B) Suspension of work.--The Secretary concerned shall
suspend work on the project if the project funds required by
the agreement in the second and subsequent fiscal years are
not available.

``SEC. 207. AVAILABILITY OF PROJECT FUNDS.

``(a) Submission of Proposed Projects to Obligate Funds.--
By September 30 of each fiscal year through fiscal year 2011,
a resource advisory committee shall submit to the Secretary
concerned pursuant to section 203(a)(1) a sufficient number
of project proposals that, if approved, would result in the
obligation of at least the full amount of the project funds
reserved by the participating county in the preceding fiscal
year.
``(b) Use or Transfer of Unobligated Funds.--Subject to
section 208, if a resource advisory committee fails to comply
with subsection (a) for a fiscal year, any project funds
reserved by the participating county in the preceding fiscal
year and remaining unobligated shall be available for use as
part of the project submissions in the next fiscal year.
``(c) Effect of Rejection of Projects.--Subject to section
208, any project funds reserved by a participating county in
the preceding fiscal year that are unobligated at the end of
a fiscal year because the Secretary concerned has rejected
one or more proposed projects shall be available for use as
part of the project submissions in the next fiscal year.
``(d) Effect of Court Orders.--
``(1) In general.--If an approved project under this Act is
enjoined or prohibited by a Federal court, the Secretary
concerned shall return the unobligated project funds related
to the project to the participating county or counties that
reserved the funds.
``(2) Expenditure of funds.--The returned funds shall be
available for the county to expend in the same manner as the
funds reserved by the county under subparagraph (B) or (C)(i)
of section 102(d)(1).

``SEC. 208. TERMINATION OF AUTHORITY.

``(a) In General.--The authority to initiate projects under
this title shall terminate on September 30, 2011.
``(b) Deposits in Treasury.--Any project funds not
obligated by September 30, 2012, shall be deposited in the
Treasury of the United States.

``TITLE III--COUNTY FUNDS

``SEC. 301. DEFINITIONS.

``In this title:
``(1) County funds.--The term `county funds' means all
funds an eligible county elects under section 102(d) to
reserve for expenditure in accordance with this title.
``(2) Participating county.--The term `participating
county' means an eligible county that elects under section
102(d) to expend a portion of the Federal funds received
under section 102 in accordance with this title.

``SEC. 302. USE.

``(a) Authorized Uses.--A participating county, including
any applicable agencies of the participating county, shall
use county funds, in accordance with this title, only--
``(1) to carry out activities under the Firewise
Communities program to provide to homeowners in fire-
sensitive ecosystems education on, and assistance with
implementing, techniques in home siting, home construction,
and home landscaping that can increase the protection of
people and property from wildfires;
``(2) to reimburse the participating county for search and
rescue and other emergency services, including firefighting,
that are--
``(A) performed on Federal land after the date on which the
use was approved under subsection (b);
``(B) paid for by the participating county; and
``(3) to develop community wildfire protection plans in
coordination with the appropriate Secretary concerned.
``(b) Proposals.--A participating county shall use county
funds for a use described in subsection (a) only after a 45-
day public comment period, at the beginning of which the
participating county shall--
``(1) publish in any publications of local record a
proposal that describes the proposed use of the county funds;
and
``(2) submit the proposal to any resource advisory
committee established under section 205 for the participating
county.

``SEC. 303. CERTIFICATION.

``(a) In General.--Not later than February 1 of the year
after the year in which any county funds were expended by a
participating county, the appropriate official of the
participating county shall submit to the Secretary concerned
a certification that the county funds expended in the
applicable year have been used for the uses authorized under
section 302(a), including a description of the amounts
expended and the uses for which the amounts were expended.
``(b) Review.--The Secretary concerned shall review the
certifications submitted under subsection (a) as the
Secretary concerned determines to be appropriate.

``SEC. 304. TERMINATION OF AUTHORITY.

``(a) In General.--The authority to initiate projects under
this title terminates on September 30, 2011.
``(b) Availability.--Any county funds not obligated by
September 30, 2012, shall be deposited in the Treasury of the
United States.

``TITLE IV--MISCELLANEOUS PROVISIONS

``SEC. 401. REGULATIONS.

``The Secretary of Agriculture and the Secretary of the
Interior shall jointly issue regulations to carry out the
purposes of this Act.

``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

``(a) In General.--There are authorized to be appropriated
such sums as are necessary to carry out this Act for each of
fiscal years 2007 through 2011.
``(b) Emergency Designation.--Of the amounts authorized to
be appropriated under subsection (a) for fiscal year 2007,
$425,000,000 is designated as an emergency requirement
pursuant to section 402 of H. Con. Res. 95 (109th Congress).

``SEC. 403. TREATMENT OF FUNDS AND REVENUES.

``(a) Relation to Other Appropriations.--Funds made
available under section 402 and funds made available to a
Secretary concerned under section 206 shall be in addition to
any other annual appropriations for the Forest Service and
the Bureau of Land Management.
``(b) Deposit of Revenues and Other Funds.--All revenues
generated from projects pursuant to title II, including any
interest accrued from the revenues, shall be deposited in the
Treasury of the United States.''.
(b) Forest Receipt Payments to Eligible States and
Counties.--
(1) Act of may 23, 1908.--The sixth paragraph under the
heading ``forest service'' in the Act of May 23, 1908 (16
U.S.C. 500) is amended in the first sentence by striking
``twenty-five percentum'' and all that follows through
``shall be paid'' and inserting the following: ``an amount
equal to the annual average of 25 percent of all amounts
received for the applicable fiscal year and each of the
preceding 6 fiscal years from each national forest shall be
paid''.
(2) Weeks law.--Section 13 of the Act of March 1, 1911
(commonly known as the ``Weeks Law'') (16 U.S.C. 500) is
amended in the first sentence by striking ``twenty-five
percentum'' and all that follows through ``shall be paid''
and inserting the following: ``an amount equal to the annual
average of 25 percent of all amounts received for the
applicable fiscal year and each of the preceding 6 fiscal
years from each national forest shall be paid''.
(c) Payments in Lieu of Taxes.--
(1) In general.--Section 6906 of title 31, United States
Code, is amended to read as follows:

``Sec. 6906. Funding

``For each of fiscal years 2008 through 2012, such sums as
are authorized under this chapter shall be made available to
the Secretary of the Interior, out of any amounts in the
Treasury not otherwise appropriated, for obligation or
expenditure in accordance with this chapter.''.
(2) Conforming amendment.--The table of sections for
chapter 69 of title 31, United States Code, is amended by
striking the item relating to section 6906 and inserting the
following:

``6906. Funding.''.
(d) Increase in Information Return Penalties.--
(1) Failure to file correct information returns.--
(A) In general.--Section 6721(a)(1) of the Internal Revenue
Code of 1986 is amended--
(i) by striking ``$50'' and inserting ``$250'', and
(ii) by striking ``$250,000'' and inserting ``$3,000,000''.
(B) Reduction where correction in specified period.--
(i) Correction within 30 days.--Section 6721(b)(1) of such
Code is amended--

(I) by striking ``$15'' and inserting ``$50'',
(II) by striking ``$50'' and inserting ``$250'', and
(III) by striking ``$75,000'' and inserting ``$500,000''.

(ii) Failures corrected on or before august 1.--Section
6721(b)(2) of such Code is amended--

(I) by striking ``$30'' and inserting ``$100'',
(II) by striking ``$50'' and inserting ``$250'', and
(III) by striking ``$150,000'' and inserting
``$1,500,000''.

(C) Lower limitation for persons with gross receipts of not
more than $5,000,000.--Section 6721(d)(1) of such Code is
amended--

[[Page 7828]]

(i) in subparagraph (A)--

(I) by striking ``$100,000'' and inserting ``$1,000,000'',
and
(II) by striking ``$250,000'' and inserting ``$3,000,000'',

(ii) in subparagraph (B)--

(I) by striking ``$25,000'' and inserting ``$175,000'', and
(II) by striking ``$75,000'' and inserting ``$500,000'',
and

(iii) in subparagraph (C)--

(I) by striking ``$50,000'' and inserting ``$500,000'', and
(II) by striking ``$150,000'' and inserting ``$1,500,000''.

(D) Penalty in case of intentional disregard.--Section
6721(e) of such Code is amended--
(i) by striking ``$100'' in paragraph (2) and inserting
``$500'',
(ii) by striking ``$250,000'' in paragraph (3)(A) and
inserting ``$3,000,000''.
(2) Failure to furnish correct payee statements.--
(A) In general.--Section 6722(a) of the Internal Revenue
Code of 1986 is amended--
(i) by striking ``$50'' and inserting ``$250'', and
(ii) by striking ``$100,000'' and inserting ``$1,000,000''.
(B) Penalty in case of intentional disregard.--Section
6722(c) of such Code is amended--
(i) by striking ``$100'' in paragraph (1) and inserting
``$500'', and
(ii) by striking ``$100,000'' in paragraph (2)(A) and
inserting ``$1,000,000''.
(3) Failure to comply with other information reporting
requirements.--Section 6723 of the Internal Revenue Code of
1986 is amended--
(A) by striking ``$50'' and inserting ``$250'', and
(B) by striking ``$100,000'' and inserting ``$1,000,000''.
(4) Effective date.--The amendments made by this section
shall apply with respect to information returns required to
be filed on or after January 1, 2008.
(e) Repeal of Suspension of Certain Penalties and
Interest.--
(1) In general.--Section 6404 of the Internal Revenue Code
of 1986 is amended by striking subsection (g).
(2) Effective date.--
(A) In general.--Except as provided in paragraph (2), the
amendment made by this section shall apply to notices
provided by the Secretary of the Treasury, or his delegate
after the date which is 6 months after the date of the
enactment of this Act.
(B) Exception for certain taxpayers.--The amendment made by
this section shall not apply to any taxpayer with respect to
whom a suspension of any interest, penalty, addition to tax,
or other amount is in effect on the date which is 6 months
after the date of the enactment of this Act.
(f) Participants in Government Section 457 Plans Allowed to
Treat Elective Deferrals as Roth Contributions.--
(1) In general.--Section 402A(e)(1) of the Internal Revenue
Code of 1986 (defining applicable retirement plan) is amended
by striking ``and'' at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and
inserting ``, and'', and by adding at the end the following:
``(C) an eligible deferred compensation plan (as defined in
section 457(b)) of an eligible employer described in section
457(e)(1)(A).''.
(2) Elective deferrals.--Section 402A(e)(2) of the Internal
Revenue Code of 1986 (defining elective deferral) is amended
to read as follows:
``(2) Elective deferral.--The term `elective deferral'
means--
``(A) any elective deferral described in subparagraph (A)
or (C) of section 402(g)(3), and
``(B) any elective deferral of compensation by an
individual under an eligible deferred compensation plan (as
defined in section 457(b)) of an eligible employer described
in section 457(e)(1)(A).''.
(3) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2007.
______

SA 710. Mr. KYL submitted an amendment intended to be proposed by him
to the bill H.R. 1591, making emergency supplemental appropriations for
the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At page 52, line 16, strike ``may determine'' and all that
follows through page 53, line 11 and insert the following:
``may determine in such Secretary's sole unreviewable
discretion that--
(1) subsection (a)(3)(B)(i)(IV)(bb) of this section shall
not apply to an alien;
(II) subsection (a)(3)(B)(i)(VII) of this section shall not
apply to an alien who endorsed or espoused terrorist activity
or persuaded others to endorse or espouse terrorist activity
or support a terrorist organization described in clause
(vi)(III);
(III) subsection (a)(3)(B)(iv)(VI) of this section shall
not apply with respect to any material support that an alien
afforded under duress (as that term is defined in common law)
to an organization or individual that has engaged in a
terrorist activity; or
(IV) subsection (a)(3)(B)(vi)(III) of this section shall
not apply to a group that--
(aa) does not pose a threat to the United States or other
democratic countries; and
(bb) has not engaged in terrorist activity targeted at
civilians; or
(V) subsection (a)(3)(B)(vi)(III) of this section shall not
apply to a group solely by virtue of its having a subgroup
within the scope of that subsection.
``Such a determination shall neither prejudice the ability
of the United States Government to commence criminal or civil
proceedings involving a beneficiary of such a determination
or any other person, nor create any substantive or procedural
right or benefit for a beneficiary of such a determination or
any other person. Not withstanding any other provision of law
(statutory or non-statutory), including but not limited to
section 2241 of title 28, or any other habeas corpus
provision, and sections 1361 and 1651 of such title, no court
shall have jurisdiction to review such a determination or
revocation except in a proceeding for review of a final order
of removal pursuant to section 242 and only to the extent
provided in section 242(a)(2)(D). The Secretary of State may
not exercise the discretion provided in this clause with
respect to an alien at any time during which the alien is the
subject of pending removal proceedings under section 1229a of
title 8.''.
______

SA 711. Mr. GREGG submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 50, strike line 7 and all that follows through page
52, line 5.
______

SA 712. Mr. DOMENICI submitted an amendment intended to be proposed
by him to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

On page 62, line 18, insert the following before the
period:
Provided further, That the Secretary of the Army, acting
through the Chief of Engineers, is provided an additional
$10,000,000 under this heading to rehabilitate the flood
damage projects for the Albuquerque Middle Rio Grande levee,
New Mexico; the Abeytas to Bernardo levee in Socorro County,
New Mexico; and the Glenwood/Whitewater Creek levee in Catron
County, New Mexico, to Federal levee standards: Provided
further, That the amount provided under this heading is
designated as an emergency requirement pursuant to section
402 of H. Con. Res. 95 (109th Congress).
______

SA 713. Mr. COLEMAN (for himself and Ms. Klobuchar) submitted an
amendment intended to be proposed by him to the bill H.R. 1591, making
emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

At the end of chapter 9 of title II, add the following:

CONVEYANCE OF A-12 BLACKBIRD AIRCRAFT TO THE MINNESOTA AIR NATIONAL
GUARD HISTORICAL FOUNDATION

Sec. 2904. (a) Conveyance Required.--The Secretary of the
Air Force shall convey, without consideration, to the
Minnesota Air National Guard Historical Foundation, Inc. (in
this section referred to as the ``Foundation''), a non-profit
entity located in the State of Minnesota, A-12 Blackbird
aircraft with tail number 60-6931 that is under the
jurisdiction of the National Museum of the United States Air
Force and, as of January 1, 2007, was on loan to the
Foundation and display with the 133rd Airlift Wing at
Minneapolis-St. Paul International Airport, Minnesota.
(b) Condition.--The conveyance required by subsection (a)
shall be subject to the requirement that Foundation utilize
and display the aircraft described in that subsection for
educational and other appropriate public purposes as jointly
agreed upon by the Secretary and the Foundation before the
conveyance.
(c) Relocation of Aircraft.--As part of the conveyance
required by subsection (a), the Secretary shall relocate the
aircraft described in that subsection to Minneapolis-St. Paul
International Airport and undertake any reassembly of the
aircraft required as part of the conveyance and relocation.
Any costs of the Secretary under this subsection shall be
borne by the Secretary.
(d) Maintenance Support.--The Secretary may authorize the
133rd Airlift Wing to provide support to the Foundation for
the maintenance of the aircraft relocated under subsection
(a) after its relocation under that subsection.
(e) Reversion of Aircraft.--
(1) Reversion.--In the event the Foundation ceases to
exist, all right, title, and interest in and to the aircraft
conveyed under subsection (a) shall revert to the United
States, and the United States shall have immediate right of
possession of the aircraft.
(2) Assumption of possession.--Possession under paragraph
(1) of the aircraft conveyed

[[Page 7829]]

under subsection (a) shall be assumed by the 133rd Airlift
Wing.
(f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection
with the conveyance required by subsection (a) as the
Secretary considers appropriate to protect the interests of
the United States.
______

SA 714. Mr. VOINOVICH submitted an amendment intended to be proposed
by him to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. SENSE OF CONGRESS REGARDING BUDGETING FOR OPERATION
IRAQI FREEDOM AND THE GLOBAL WAR ON TERRORISM.

(a) Findings.--Congress makes the following findings:
(1) The global war on terrorism began in September 2001 and
military operations in Iraq began in March 2003, and United
States military involvement in Iraq and Afghanistan no longer
represents unforeseen, unpredictable, or unanticipated
events.
(2) Since the beginning of the global war on terrorism and
the military operations in Iraq, Congress has provided
$503,000,000,000 in budget authority to carry out Operation
Iraqi Freedom and the global war on terrorism, including
funding for military operations and other defense activities,
indigenous security forces, diplomatic operations, and
foreign aid.
(3) The President has requested $98,000,000,000 in
additional fiscal year 2007 supplemental appropriations to
carry out Operation Iraqi Freedom and the global war on
terrorism, bringing the total appropriated upon the date of
the enactment of this Act for that purpose to
$601,000,000,000.
(4) The President has requested $145,000,000,000 in fiscal
year 2008 supplemental appropriations to carry out Operation
Iraqi Freedom and the global war on terrorism.
(5) During the past few years, both the President and
Congress have consistently underestimated the future costs of
carrying out Operation Iraqi Freedom and the global war on
terrorism in budget requests and in congressional budget
resolutions.
(6) The President and Congress have provided funds to carry
out Operation Iraqi Freedom and the global war on terrorism
largely through the use of supplemental appropriations bills
that escape the budget limitations imposed on regular
appropriations.
(7) As a result of insufficient budget projections and
exemption of supplemental appropriations from budget rules,
Congress and the President have provided the public with
erroneous information regarding the true impact of Operation
Iraqi Freedom and the global war on terrorism on future
budget deficits and the growth of the national debt.
(b) Sense of Congress.--It is the sense of Congress that--
(1) fiscal year 2008 should be the last fiscal year for
which Congress provides funding to carry out Operation Iraqi
Freedom and the global war on terrorism through the use of
supplemental appropriations that generally are not subject to
budget limitations; and
(2) beginning in fiscal year 2009, Congress should include
funding to carry out Operation Iraqi Freedom and the global
war on terrorism in the regular budget and appropriations
processes so that the public is able to recognize and
understand the costs of carrying out such activities and
Congress may consider whether additional spending and revenue
policies should be enacted to offset such costs.
______

SA 715. Mr. COBURN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:
Sec. __. In accordance with paragraphs (4) and (5) of
section 203(d) of the Legislative Reorganization Act of 1946
(2 U.S.C. 166(d)), the Congressional Research Service may not
refuse a request from a Member of the Senate or House of
Representatives for compilation and analysis of earmarks
contained in appropriations bills and amendments.
______

SA 716. Mr. BURR proposed an amendment to amendment SA 709 proposed
by Mr. Wyden (for himself, Mr. Reid, Mr. Baucus, Mr. Bingaman, Mr.
Smith, Ms. Cantwell, Mr. Domenici, Mrs. Boxer, Mr. Craig, Mrs. Murray,
Mr. Crapo, Mr. Tester, Mr. Stevens, Mr. Bennett, Ms. Murkowski, Mr.
Salazar, and Mrs. Feinstein) to the bill H.R. 1591, making emergency
supplemental appropriations for the fiscal year ending September 30,
2007, and for other purposes; as follows:

``(I) carrying out projects under title II;
``(II) carrying out projects under title III; or
``(III) a combination of the purposes described in
subclauses (I) and (II); or

``(I) be considered to have elected to expend 85 percent of
the funds in accordance with paragraph (1)(A); and
``(II) return the balance to the Treasury of the United
States.

SA 717. Mr. COBURN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
as follows:

At the appropriate place, insert the following:

SEC. __. INAPPLICABILITY OF CERTAIN PROVISIONS.

Notwithstanding any other provision of this Act, titles II,
III, and IV of this Act shall not take effect.
______

SA 718. Mr. COBURN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
as follows:

SEC. __. INAPPLICABILITY OF CERTAIN PROVISIONS.

Notwithstanding any provision of this Act, titles II
(except for chapter 8 and 9 of title II), III, and IV of this
Act shall not take effect.
______

SA 719. Mr. ALEXANDER submitted an amendment intended to be proposed
by him to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

[[Page 7830]]

Beginning on page 95, strike line 22 and all that follows
through page 96, line 8.
______

SA 720. Mr. ALEXANDER submitted an amendment intended to be proposed
by him to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

On page 96, lines 5 and 6, strike ``a State found within
Federal Emergency Management Agency Region IV or VI'' and
insert ``the State of Alabama, Florida, Louisiana,
Mississippi, or Texas''.
______

SA 721. Mr. ALEXANDER submitted an amendment intended to be proposed
by him to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

On page 96, lines 6 through 8, strike ``The provisions of
this section shall cease to be in effect twenty-four months
following the date of enactment of this Act.'' and insert
``This section shall cease to be in effect as of the date
that is 180 days after the date of enactment of this Act, and
the authority provided by this section is contingent on
authorization by the appropriate committees of Congress prior
to implementation.''.
______

SA 722. Mr. DOMENICI (for himself and Mrs. Hutchison) submitted an
amendment intended to be proposed by him to the bill H.R. 1591, making
emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

On page 37, between lines 10 and 11, insert the following:

International Commissions

international boundary and water commission, united states and mexico

(including rescission of funds)

SA 723. Mr. DOMENICI submitted an amendment intended to be proposed
by him to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

SA 724. Mrs. BOXER submitted an amendment intended to be proposed by
her to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 28, between lines 18 and 19, insert the following:
Sec. 1316. It is the sense of the Senate that a portion of
the funds appropriated or otherwise made available by this
Act should be used to begin the phased redeployment of United
States military forces from Iraq.
______

SA 725. Mrs. BOXER submitted an amendment intended to be proposed by
her to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the end of chapter 3 of title I, add the following:

SEC. 1316. RESEARCH ON MENTAL HEALTH NEEDS OF FEMALE MEMBERS
OF THE ARMED FORCES.

Of the amount appropriated or otherwise made available by
this chapter under the heading ``Defense Health Program'',
$10,000,000 shall be available for research on the mental
health needs of female members of the Armed Forces, with a
specific emphasis on post traumatic stress disorder and
sexual trauma and the development of new treatment models.
______

SA 726. Mr. KERRY submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 40, line 3, insert after ``Public Law 109-13:'' the
following: ``Provided further, That of the funds appropriated
under this heading that are available for assistance for
Iraq, not less than $1,000,000 shall be made available for a
Youth Center/Work Study Program in Iraq to be administered by
the Iraqi Ministry of Youth and Sport:''.
______

SA 727. Mr. STEVENS submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the end of chapter 3 of title I, add the following:

SEC. 1316. REDEVELOPMENT OF INDUSTRIAL SECTOR IN IRAQ.

Of the amount appropriated or otherwise made available by
this chapter under the heading ``Iraq Freedom Fund'', up to
$100,000,000 may be obligated and expended for purposes of
the Task Force to Improve Business and Stability Operations
in Iraq.
______

SA 728. Mr. BOND submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table, as follows:

At the end of chapter 10 of title II, insert the following:
Sec. 4004. In section 21307 of Public Law 110-5, in the
first proviso, strike out ``for such account''.
______

SA 729. Mr. VITTER submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 64, between lines 15 and 16, insert the following:
Sec. 23__. Not later than 90 days after the date of
enactment of this Act, the Chief of Engineers shall, at full
Federal expense, investigate and submit to Congress an
analysis of--
(1) 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 the matter under the heading ``flood control
and coastal emergencies'' of chapter 3 of title II of the
Emergency Supplemental Appropriations Act for Defense, the
Global War on Terror, and Hurricane Recovery, 2006 (Public
Law 109-234; 120 Stat. 454) concurrently or in series with
existing pumping stations serving those canals;
(2) the advantages, disadvantages, and technical
operational effectiveness of removing the existing pumping
stations and configuring the new pumping stations and
associated canals to handle all needed discharges; and
(3) the advantages, disadvantages, and technical
operational effectiveness of replacing or improving the
floodwalls and levees adjacent to the 3 canals specified in
paragraph (1).

______

SA 730. Mr. VITTER submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

Beginning on page 60, strike line 23 and all that follows
through page 70, line 13, and insert the following:
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, $2,257,700,000, to remain available until expended:
Provided, That $2,000,000,000 of the amount provided may be
used by the Secretary of the Army to carry out projects and
measures to provide the level of protection necessary to
achieve the certification required for the 100-year level of
flood protection in accordance with the national flood

[[Page 7831]]

insurance program under the base flood elevations in
existence at the time of construction of the enhancements for
the West Bank and Vicinity and Lake Ponchartrain and
Vicinity, Louisiana, projects, as described under the heading
``Flood Control and Coastal Emergencies'', in chapter 3 of
Public Law 109-148: Provided further, That $150,000,000 of
the amount provided may be used to support emergency
operations, repairs and other activities in response to
flood, drought and earthquake emergencies as authorized by
law: Provided further, That $107,700,000 of the amount
provided may be used to implement the projects for hurricane
storm damage reduction, flood damage reduction, and ecosystem
restoration within Hancock, Harrison, and Jackson Counties,
Mississippi substantially in accordance with the Report of
the Chief of Engineers dated December 31, 2006, and entitled
``Mississippi, Coastal Improvements Program Interim Report,
Hancock, Harrison, and Jackson Counties, Mississippi'':
Provided further, That projects authorized for implementation
under this Chief's report shall be carried out at full
Federal expense, except that the non-Federal interests shall
be responsible for providing any lands, easements, rights-of-
way, disposal areas, and relocations required for
construction of the project and for all costs associated with
operation and maintenance of the project: Provided further,
That any project using funds appropriated under this heading
shall be initiated only after non-Federal interests have
entered into binding agreements with the Secretary requiring
the non-Federal interests to pay 100 percent of the
operation, maintenance, repair, replacement, and
rehabilitation costs of the project and to hold and save the
United States free from damages due to the construction or
operation and maintenance of the project, except for damages
due to the fault or negligence of the United States or its
contractors.

DEPARTMENT OF INTERIOR.

BUREAU OF RECLAMATION.

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

SEC. 2301. GENERAL PROVISIONS--THIS CHAPTER.

The Secretary is authorized and directed to reimburse local
governments for expenses they have incurred in storm-proofing
pumping stations, constructing safe houses for operators, and
other interim flood control measures in and around the New
Orleans metropolitan area, provided the Secretary determines
those elements of work and related expenses to be integral to
the overall plan to ensure operability of the stations during
hurricanes, storms and high water events and the flood
control plan for the area.
Sec. 2302. The limitation concerning total project costs in
section 902 of the Water Resources Development Act of 1986,
as amended (33 U.S.C. 2280), shall not apply during fiscal
year 2008 to any water resources project for which funds were
made available during fiscal year 2007.
Sec. 2303.(a) The Secretary of the Army is authorized and
directed to utilize funds remaining available for obligation
from the amounts appropriated in chapter 3 of Public Law 109-
234 under the heading ``Flood Control and Coastal
Emergencies'' for projects in the greater New Orleans
metropolitan area to prosecute these projects in a manner
which promotes the goal of continuing work at an optimal
pace, while maximizing, to the greatest extent practicable,
levels of protection to reduce the risk of storm damage to
people and property.
(b) The expenditure of funds as provided in subsection (a)
may be made without regard to individual amounts or purposes
specified in chapter 3 of Public Law 109-234.
(c) Any reallocation of funds that are necessary to
accomplish the goal established in subsection (a) are
authorized. Reallocation of funds in excess of $250,000,000
or 50 percent, whichever is less, of the individual amounts
specified in chapter 3 of Public Law 109-234 require
notifications of the House and Senate Committees on
Appropriation.

CHAPTER 4--SMALL BUSINESS ADMINISTRATION--DISASTER LOANS PROGRAM
ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ``Disaster Loans Program
Account'' for administrative expenses to carry out the
disaster loan program, $25,069,000, to remain available until
expended, which may be transferred to and merged with ``Small
Business Administration, Salaries and Expenses''.

SEC. 2401. GENERAL PROVISIONS--THIS CHAPTER.

In this section--
(1) the term ``Administrator'' means the Administrator of
the Small Business Administration;
(2) the term ``covered small business concern'' means a
small business concern--
(A) that is located in any area in Louisiana or Mississippi
for which the President declared a major disaster because of
Hurricane Katrina of 2005 or Hurricane Rita of 2005;
(B) that has not more than 50 full-time employees; and
(C) that--
(i)(I) suffered a substantial economic injury as a result
of Hurricane Katrina of 2005 or Hurricane Rita of 2005,
because of a reduction in travel or tourism to the area
described in subparagraph (A); and
(II) demonstrates that, during the 1-year period ending on
August 28, 2005, not less than 45 percent of the revenue of
that small business concern resulted from tourism or travel
related sales; or
(ii)(I) suffered a substantial economic injury as a result
of Hurricane Katrina of 2005 or Hurricane Rita of 2005; and
(II) operates in a parish or county for which the
population on the date of enactment of this Act, as
determined by the Administrator, is not greater than 75
percent of the population of that parish or county before
August 28, 2005, based on the most recent United States
population estimate available before August 28, 2005;
(3) the term ``major disaster'' has the meaning given that
term in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122); and
(4) the term ``small business concern'' has the meaning
given that term in section 3 of the Small Business Act (15
U.S.C. 632).
(b) Appropriation.--
(1) In General.--There are appropriated, out of any money
in the Treasury not otherwise appropriated, $25,000,000 to
the Administrator, which, except as provided in paragraph (2)
or (3), shall be used for loans under section 7(b)(2) of the
Small Business Act (15 U.S.C. 636(b)(2)) to covered small
business concerns.
(2) Administrative Expenses.--Of the amounts made available
under paragraph (1), not more than $8,750,000 may be
transferred to and merged with ``Salaries and Expenses'' to
carry out the disaster loan program of the Small Business
Administration.
(3) Other Uses of Funds.--The Administrator may use amounts
made available under paragraph (1) for other purposes
authorized for amounts in the ``Disaster Loans Program
Account'' or transfer such amounts to and merge such amounts
with ``Salaries and Expenses'', if--
(A) such amounts are--
(i) not obligated on the later of 5 months after the date
of enactment of this Act and August 29, 2007; or
(ii) necessary to provide assistance in the event of a
major disaster; and
(B) not later than 5 days before any such use or transfer
of amounts, the Administrator provides written notification
of such use or transfer to the Committee on Appropriations of
the Senate and the Committee on Appropriations of the House
of Representatives.

SEC. 2402. OTHER PROGRAMS.

(a) HUBZONES.--Section 3(p) of the Small Business Act (15
U.S.C. 632(p)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (D), by striking ``or'';
(B) in subparagraph (E), by striking the period at the end
and inserting ``; or''; and
(C) by adding at the end the following:
``(F) an area in which the President has declared a major
disaster (as that term is defined in section 102 of the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5122)) as a result of Hurricane Katrina of
August 2005 or Hurricane Rita of September 2005, during the
time period described in paragraph (8).''; and
(2) by adding at the end the following:
``(8) Time period.--The time period for the purposes of
paragraph (1)(F)--
``(A) shall be the 2-year period beginning on the later of
the date of enactment of this paragraph and August 29, 2007;
and
``(B) may, at the discretion of the Administrator, be
extended to be the 3-year period beginning on the later of
the date of enactment of this paragraph and August 29,
2007.''.
(b) Relief From Test Program.--Section 711(d) of the Small
Business Competitive Demonstration Program Act of 1988 (15
U.S.C. 644 note) is amended--
(1) by striking ``The Program'' and inserting the
following:
``(1) In general.--Except as provided in paragraph (2), the
Program''; and
(2) by adding at the end the following:
``(2) Exception.--
``(A) In general.--The Program shall not apply to any
contract related to relief or reconstruction from Hurricane
Katrina of 2005 or Hurricane Rita of 2005 during the time
period described in subparagraph (B).
``(B) Time period.--The time period for the purposes of
subparagraph (A)--
``(i) shall be the 2-year period beginning on the later of
the date of enactment of this paragraph and August 29, 2007;
and
``(ii) may, at the discretion of the Administrator, be
extended to be the 3-year period beginning on the later of
the date of enactment of this paragraph and August 29,
2007.''.

CHAPTER 5--DEPARTMENT OF HOMELAND SECURITY--FEDERAL EMERGENCY
MANAGEMENT AGENCY

DISASTER RELIEF.

For an additional amount for ``Disaster Relief'' for
necessary expenses under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.),
$3,610,000,000, to remain available until expended.

[[Page 7832]]

______

SA 731. Mr. VITTER submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 64, between lines 15 and 16, insert the following:
Section 23_. (a) Using funds made available in Chapter 3
under Title II of Public Law 109-234 (120 Stat. 453), under
the heading ``Investigations'', within three months after the
date of enactment of this Act, the Secretary of the Army, in
consultation with other agencies and the State of Louisiana
shall submit to Congress a final report of the Chief of
Engineers recommending a comprehensive plan to install a
permanent storm surge and intrusion barrier on the lower
Mississippi River Gulf-outlet and to restore associated
structural and non-structural hurricane and storm surge
reduction in this region to ensure the level of protection
necessary to achieve the certification required for the 100-
year level of flood protection in accordance with the
national flood insurance program under the base flood
elevations in existence at the time of construction of the
enhancements as part of the Lake Pontchartrain and Vicinity
Louisiana project as described under the heading ``Flood
Control and Coastal Emergencies'', in chapter 3 of Public Law
109-148: 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.
______

SA 732. Ms. LANDRIEU submitted an amendment intended to be proposed
by her to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

At the appropriate place in title II Chapter 3 General
Provisions, insert the following:
Section _. 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: 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.
______

SA 733. Ms. LANDRIEU submitted an amendment intended to be proposed
by her to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows;

On page 59, between lines 23 and 24, insert the following:

ECONOMIC DEVELOPMENT ADMINISTRATION

For an additional amount for the Economic Development
Administration, $175,000,000, to remain available until
expended, for use in providing grants to the Port of New
Orleans to relocate public facilities located along the
Mississippi River Gulf Outlet that are adversely affected by
the closing of the Mississippi River Gulf Outlet: Provided,
That the amount provided under this heading is designated as
an emergency requirement pursuant to section 402 of H. Con.
Res. 95 (109th Congress).
______

SA 734. Mr. SANDERS submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows;

At the end of title III, add the following:

NO AUTHORITY TO INITIATE MILITARY ACTION AGAINST IRAN

Sec. 4104. No provision of this Act, the Authorization for
Use of Military Force (Public Law 107-40; 50 U.S.C. 1541
note), or the Authorization for Use of Military Force Against
Iraq Resolution of 2002 (Public Law 107-243; 50 U.S.C. 1541
note), may be construed as granting authority to the
President to initiate military action against Iran.
______

SA 735. Mr. SANDERS submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows;

At the end of title III, add the following:

PROHIBITION ON USE OF FUNDS TO INITIATE OFFENSIVE MILITARY ACTION

Sec. 4104. None of the funds appropriated or otherwise made
available by this Act may be obligated or expended to
initiate offensive military action against any country,
including Iran, that is not authorized by law.
______

SA 736. Mr. SANDERS submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows;

At the end of title III, add the following:

SENSE OF CONGRESS REGARDING INITIATING MILITARY ACTION AGAINST IRAN

Sec. 4104. It is the sense of Congress that--
(1) initiating military action against Iran without
congressional approval does not fall within the President's
``Commander in Chief'' powers under article II, section 2, of
the Constitution of the United States;
(2) the Authorization for Use of Military Force (Public Law
107-40; 50 U.S.C. 1541 note), approved in response to the
terrorist attacks of September 11, 2001, does not explicitly
or implicitly extend to authorizing military action against
Iran, including over its nuclear program;
(3) the Authorization for Use of Military Force Against
Iraq Resolution of 2002 (Public Law 107-243; 50 U.S.C. 1541
note) does not explicitly or implicitly extend to authorizing
military action against Iran, including over its nuclear
program; and
(4) seeking congressional authority prior to taking
military action against Iran is not discretionary, but is a
legal and constitutional requirement.
______

SA 737. Mr. SANDERS (for himself, Mr. Reed, Mr. Bingaman, Mr.
Menendez, Mr. Kerry, Mr. Harkin, Mr. Wyden, Mrs. Clinton, and Mr.
Sununu) submitted an amendment intended to be proposed by him to the
bill H.R. 1591, making emergency supplemental appropriations for the
fiscal year ending September 30, 2007, and for other purposes; which
was ordered to lie on the table; as follows;

On page 99, line 4, strike ``ties'' and insert ``ties:
Provided further, That $242,200,000 of the amount provided
shall be used for the weatherization assistance program of
the Department of Energy''.
______

SA 738. Mr. BIDEN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows;

At the appropriate place, insert the following:

TITLE VI--FUNDING FOR GLOBAL WAR ON TERROR

SEC. 601. FINDINGS.

The Congress finds the following:
(1) It is estimated that the top 1 percent of income
earners in the United States will receive at total of $715
billion in tax cuts between 2001 and 2010 under current law.
(2) It is estimated that in the single year 2009, tax cuts
for the top 1 percent of income earners will total over $94
billion.
(3) To date all of the funds for military operations in
Iraq and Afghanistan have been designated as emergency
spending.
(4) Operations in Iraq alone have now lasted longer than
World War II and are not ``unanticipated uncontrollable
expenditures'' as defined by the Congressional Budget Act.

SEC. 602. SENSE OF THE SENATE.

It is the sense of the Senate that in order to fund the
operations of the Government under chapter 3 of title I of
this Act, including $1,500,000,000 for mine resistant ambush
protected vehicles, the Committee on Finance of the Senate
should report to the Senate not later than 30 days after the
date of the enactment of this Act legislation which increases
revenues to the Treasury in the amount of $93,500,000,000
during taxable years 2007 through 2011 by reducing scheduled
and existing income tax reductions enacted since taxable year
2001 with respect to the top 1 percent of income earners.
______

SA 739. Mr. BIDEN (for himself, Mr. Kennedy, Mr. Kerry, Mr. Durbin,
and Mr. Pryor) submitted an amendment intended to be proposed by him to
the bill H.R. 1591, making emergency supplemental appropriations for
the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the end of chapter 3 of title I, add the following:

SEC. 1316. ADDITIONAL AMOUNT FOR PROCUREMENT, MARINE CORPS,
FOR ACCELERATION OF PROCUREMENT OF ADDITIONAL
2,500 MINE RESISTANT AMBUSH PROTECTED VEHICLES
FOR THE ARMED FORCES.

(a) Additional Amount.--The amount appropriated by this
chapter under the heading ``Procurement, Marine Corps'' is
hereby increased by $1,500,000,000, with the amount of the
increase to be available to the Marine

[[Page 7833]]

Corps for the procurement of an additional 2,500 Mine
Resistant Ambush Protected (MRAP) vehicles for the regular
and reserve components of the Armed Forces by not later than
December 31, 2007.
(b) Supplement Not Supplant.--The amount available under
subsection (a) for the procurement of vehicles described in
that subsection is in addition to any other amounts available
under this chapter for that purpose.
______

SA 740. Mr. CASEY submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the end of subtitle A of title IV, add the following:

SEC. 4__. DAIRY LOSSES.

The Secretary shall use such funds of the Commodity Credit
Corporation as are necessary to make payments to producers on
a dairy farm in the State of Pennsylvania in the amount of
$2.50 per hundredweight of milk produced by the dairy
producers during the period beginning on August 1, 2006, and
ending on February 28, 2007.
______

SA 741. Mr. KENNEDY submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE V--FAIR MINIMUM WAGE

SEC. 500. SHORT TITLE.

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

SEC. 501. MINIMUM WAGE.

SEC. 502. APPLICABILITY OF MINIMUM WAGE TO THE COMMONWEALTH
OF THE NORTHERN MARIANA ISLANDS.

SA 742. Mr. BAUCUS submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows;

On page 35, line 3, insert after ``law'' the following: ``:
Provided, That of the funds appropriated under this heading,
up to $1,900,000 may be available for the construction of a
Deployment Processing Facility for the Montana Air National
Guard''.
______

SA 743. Mr. LAUTENBERG submitted an amendment intended to be proposed
by him to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. . FAA PERSONNEL MANAGEMENT SYSTEM ARBITRATION.

Section 40122(a) of title 49, United States Code, is
amended--
(1) by striking the second and third sentences of paragraph
(2);
(2) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(3) by inserting after paragraph (2) the following:
``(3) Arbitration.--
``(A) In general.--If the services of the Federal Mediation
and Conciliation Service under paragraph (2) do not lead to
an agreement, the Federal Service Impasses Panel shall assert
jurisdiction over the issues in controversy in accordance
with subsection (g)(2)(C) and order binding arbitration.
``(B) Arbitration board.--The Panel shall appoint an
arbitration board composed of 3 professional private
arbitrators with Federal sector experience. The Executive
Director of the Panel shall request a list of not fewer than
15 arbitrators from the Director of the Federal Mediation and
Conciliation Service. Each party shall select one arbitrator
and the Executive Director of the Panel shall select the
third and final member of the arbitration board.
``(C) Ratification and approval.--In accordance with
subsection (g)(2)(C), upon reaching agreement or at the
conclusion of the binding arbitration, the final agreement
shall be subject to ratification by the exclusive
representative, upon request, and approval by the head of the
agency.
``(D) Enforcement actions.--Each United States district
court and each United States court of a place subject to the
jurisdiction of the United States shall have jurisdiction of
any action brought to enforce this paragraph. Upon the
application of any exclusive bargaining representative, any
changes implemented in the personnel management system by the
Administrator after July 9, 2005, without the agreement of
the exclusive bargaining representative and before the
agreement ratified and approved under subparagraph (C) takes
effect shall be reversed and the status quo ante shall be
restored until the date certified by the exclusive bargaining
representative and the Administrator as the date on which the
ratified and approved agreement takes effect.''
______

SA 744. Ms. STABENOW submitted an amendment intended to be proposed
by her to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

In section 402, strike paragraph (2) and insert the
following:
(2) Applicable crop.--The term ``applicable crop'' means--
(A) 1 or more crops planted, or prevented from being
planted, during, as elected by the producers on a farm, 1
of--
(i) the 2005 crop year;
(ii) the 2006 crop year; or
(iii) that part of the 2007 crop year that takes place
before the end of the applicable period; and
(B) that part of the 2004 crop of sugar beets that was
damaged during calendar year 2005.

______

SA 745. Mr. PRYOR submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the end of chapter 5 of title I, add the following:

SEC. 1503. DOMESTIC PREPAREDNESS EQUIPMENT TECHNICAL
ASSISTANCE PROGRAM.

Of the amount appropriated or otherwise made available by
this chapter under the heading ``state and local program''
and available under that heading for regional grants and
technical assistance, $5,000,000 shall be available for the
Domestic Preparedness Equipment Technical Assistance Program
(DPETAP).
______

SA 746. Mr. TESTER submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 94, between lines 10 and 11, insert the following:
Sec. 2904. (a) Additional Amount for Medical Services.--The
amount appropriated or otherwise made available by this
chapter under the heading ``medical services'' is increased
by $127,000,000.
(b) Availability.--Of the amount appropriated or otherwise
made available by this chapter under the heading ``medical
services'', as increased by subsection (a), $127,000,000
shall be available for increasing the reimbursement rate for
beneficiary travel described in section 111 of title 38,
United States Code.

______

SA 747. Mr. PRYOR submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 25, strike line 11 and all that follows through
page 26, line 24 and insert:
(b) Classified Campaign Plan.--The President shall create a
classified campaign plan for Iraq, including strategic and
operational benchmarks and projected redeployment

[[Page 7834]]

dates of US forces ITom Iraq as those benchmarks are met.
(c) Commencement of Phased Redeployment of United States
Forces From Iraq.--
(1) Transition of mission.--The President shall promptly
transition the mission of United States forces in Iraq to the
limited purposes set forth in paragraph (2)
(2) Commencement of phased redeployment from iraq.--The
President shall commence the phased redeployment of United
States forces from Iraq pursuant to the plan required in
subsection
(b) except for the limited number that are essential for
the following Purposes:
(A) Protecting United States and coalition personnel and
infrastructure.
(B) Training and equipping Iraqi forces.
(C) Conducting targeted counter-terrorism operations.
(3) Comprehensive strategy.--Paragraph (2) shall be
implemented as part of a comprehensive diplomatic, political,
and economic strategy that includes sustained engagement with
Iraq's neighbors and the international community for the
purpose of working collectively to bring stability to Iraq.
(4) Reports required.--Not later than 60 days after the
date of enactment of this Act, the President shall submit the
plan required in subsection (b), and every 90 days
thereafter, provide classified reports to Congress on the
progress made in transitioning the mission of United States
forces in Iraq and implementing the phased redeployment of
United States forces from Iraq as required by subsection (b).
(d) Benchmarks for the Government of Iraq.--
______

SA 748. Mr. CHAMBLISS submitted an amendment intended to be proposed
by him to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. ____. AUTHORITY TO WAIVE ANNUAL LIMITATIONS ON TOTAL
COMPENSATION PAID TO CERTAIN FEDERAL CIVILIAN
EMPLOYEES.

(a) Waiver Authority.--For pay earned during calendar years
2006 and 2007 and notwithstanding section 5547 of title 5,
United States Code, the head of an executive agency or the
head of a military department may waive, subject to
subsection (c), the limitation established in that section
for total compensation (including limitations on the
aggregate of basic pay and premium pay payable in a calendar
year) of an employee who performs work while engaged in
repair, recovery, restoration, and other authorized actions
associated with the destruction caused by natural disasters
in Louisiana, Mississippi, and Alabama.
(b) Pay Earned in 2006 but Paid in 2007.--With regard to
subsection (c), to the extent that a waiver granted under
subsection (a) results in additional pay for calendar year
2006 that is paid in calendar year 2007, such additional pay
paid in calendar year 2007 shall not be used to compute the
total maximum compensation for calendar year 2007.
(c) Maximum Total Compensation.--The total compensation of
an employee whose pay is covered by a waiver under subsection
(a) may not exceed $200,000 in calendar year 2006 and
$212,000 in calendar year 2007.
(d) Additional Pay Not Considered Basic Pay.--To the extent
that a waiver under subsection (a) results in payment of
additional premium pay of a type that is normally creditable
as basic pay for retirement or any other purpose, such
additional pay--
(1) shall not be considered to be basic pay for any
purpose; and
(2) shall not be used in computing a lump sum payment for
accumulated and accrued annual leave under section 5551 of
title 5, United States Code.
______

SA 749. Mr. ENSIGN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 63, strike lines 14 through 19.
______

SA 750. Mr. ENSIGN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the end of title III, insert the following:

RESCISSION

Sec. __. Five percent of each amount appropriated under the
Continuing Appropriations Resolution, 2007 (as amended by the
Revised Continuing Appropriations Resolution, 2007 (Public
Law 110-5)) is rescinded, except that none of the amount
appropriated under the following provisions of the Continuing
Appropriations Resolution, 2007 shall be rescinded:
(1) Section 101(a)(7).
(2) Chapter 2 or 8 of title II.
______

SA 751. Mr. ENSIGN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

In the second sentence of the matter under the heading
``low-income home energy assistance'' in the matter under the
heading ``Administration for Children and Families'' in the
matter under the heading ``DEPARTMENT OF HEALTH AND HUMAN
SERVICES'', in chapter 7 of title II (relating to amounts for
section 2604(e) of the Low-Income Home Energy Assistance Act
of 1981), strike ``$320,000,000'' and insert the following
``$320,000,000: Provided, That $80,000,000 of that
$320,000,000 shall be transferred to the Secretary of the
Interior, for the account entitled `payments in lieu of
taxes', to implement sections 6901 through 6907 of title 31,
United States Code''.
______

SA 752. Mr. ENSIGN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 3, strike lines 13 through 22 and insert the
following:

salaries and expenses, united states attorneys

For an additional amount for ``Salaries and Expenses,
United States Attorneys'', $17,500,000, to remain available
until September 30, 2008.

United States Marshals Service

salaries and expenses, united states marshals service

For an additional amount for ``Salaries and Expenses,
United States Marshals Service'', $37,500,000, to remain
available until September 30, 2008: Provided, That of the
amounts made available in this Act for ``Educational and
Cultural Exchange Programs'', $25,000,000 is rescinded.
______

SA 753. Mr. ENSIGN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 3, strike lines 13 through 22 and insert the
following:

salaries and expenses, united states attorneys

For an additional amount for ``Salaries and Expenses,
United States Attorneys'', $17,500,000, to remain available
until September 30, 2008: Provided, That $12,500,000 of such
amount shall be used by the United States Attorneys' Offices
to prosecute child pornographers and individuals who exploit
children.

United States Marshals Service

salaries and expenses, united states marshals service

For an additional amount for ``Salaries and Expenses,
United States Marshals Service'', $37,500,000, to remain
available until September 30, 2008: Provided, That
$12,500,000 of such amount shall be used by the United States
Marshals Service to carry out the Adam Walsh Child Protection
and Safety Act of 2006 (Public Law 109-248; 120 Stat. 587),
and the amendments made by that Act, and to track down
unregistered convicted sex offenders: Provided Further, That
of the amounts made available in this Act for ``Educational
and Cultural Exchange Programs'', $25,000,000 is rescinded.
______

SA 754. Mr. SHELBY (for himself and Ms. Mikulski) submitted an
amendment intended to be proposed by him to the bill H.R. 1591, making
emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

On page 60, line 4, strike the period and insert the
following ``: Provided, that of the amount made available
under this heading, $20,000,000 shall be for the Lunar
Precursor and Robotic Program.''
______

SA 755. Mr. LEAHY (for himself and Mr. Specter) submitted an
amendment intended to be proposed by him to the bill H.R. 1591, making
emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

At the appropriate place, insert the following:

CHAPTER __--THE JUDICIARY

Supreme Court of the United States

salaries and expenses

For an additional amount for ``salaries and expenses'' for
the salaries of Justices of

[[Page 7835]]

the Supreme Court, $27,000, Provided, That the amount
provided under this heading is designated as an emergency
requirement pursuant to section 402 of H. Con. Res. 95 (109th
Congress).

United States Court of Appeals for the Federal Circuit

salaries and expenses

For an additional amount for ``salaries and expenses'' for
the salaries of the judges of the United States Court of
Appeals for the Federal Circuit, $29,000, Provided, That the
amount provided under this heading is designated as an
emergency requirement pursuant to section 402 of H. Con. Res.
95 (109th Congress).

United States Court of International Trade

salaries and expenses

For an additional amount for ``salaries and expenses'' for
the salaries of the judges of the United States Court of
International Trade, $18,000, Provided, That the amount
provided under this heading is designated as an emergency
requirement pursuant to section 402 of H. Con. Res. 95 (109th
Congress).

Courts of Appeals, District Courts, and Other Judicial Services

salaries and expenses

For an additional amount for ``salaries and expenses'' for
the salaries of the judges of the Courts of Appeals and
District Courts, $5,279,000, Provided, That the amount
provided under this heading is designated as an emergency
requirement pursuant to section 402 of H. Con. Res. 95 (109th
Congress).

General Provisions--The Judiciary

Sec. ____. (a) Pursuant to section 140 of Public Law 97-92,
justices and judges of the United States are authorized
during fiscal year 2007 to receive a salary adjustment in
accordance with section 461 of title 28, United States Code.
(b) This section shall be effective as of January 1, 2007,
and shall apply only with respect to the salaries of justices
and judges for whom appropriations are made available under
this chapter, notwithstanding section 603 of title 28, United
States Code, or similar provision of law.
______

SA 756. Ms. LANDRIEU submitted an amendment intended to be proposed
by her to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of chapter 3 of title I, add the following:

SEC. __. ADDITIONAL AMOUNT FOR DEFENSE HEALTH PROGRAM.

The amount appropriated or otherwise made available by this
chapter under the heading ``DEFENSE HEALTH PROGRAM'' is
hereby increased by $20,000,000, with the amount of the
increase to be available to provide for:
(1) The development of a field-deployable system which
would mitigate the impact of traumatic brain injury, such as
deployable ice water immersion cooling system.
(2) The development of an ice water immersion cooling
system to treat traumatic brain injuries, suitable for use in
a stationary medical treatment center.
______

SA 757. Mr. BYRD (for himself and Mr. Inouye) submitted an amendment
intended to be proposed by him to the bill H.R. 1591, making emergency
supplemental appropriations for the fiscal year ending September 30,
2007, and for other purposes; which was ordered to lie on the table; as
follows:

On page 11, between lines 4 and 5, insert the following:

(rescission)

Of the amount appropriated by title III of division A of
Public Law 109-148 under the heading ``Other Procurement
Army'', $6,250,000 is hereby rescinded.
On page 34, line 5, strike ``$1,261,390,000'' and insert
``$1,267,640,000''.
______

SA 758. Mr. INOUYE submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the end of chapter 3 of title I, add the following:

SEC. 1316. STUDY ON REFORM OF NATIONAL SECURITY SYSTEM.

Of the amount appropriated or otherwise made available by
this chapter under the heading ``Operation and Maintenance,
Defense-Wide'', up to $4,000,000 may be available for a
detailed, objective study of the current national security
system in order to identify the reforms to the system that
will be required to assure that the system possesses the
capabilities required to meet the future national security
interests of the United States.
______

SA 759. Mrs. CLINTON (for herself and Mr. Schumer) submitted an
amendment intended to be proposed by her to the bill H.R. 1591, making
emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

At the appropriate place in chapter 7 of title II, insert
the following:
Sec. __. For an additional amount to enable the Centers for
Disease Control and Prevention to carry out activities under
section 5011(b) 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), and in addition to giving first priority to the
entities described in such section, also including first
priority for the World Trade Center Environmental Health
Center at Bellevue Hospital, $296,700,000 to remain available
until September 30, 2008.
______

SA 760. Mr. ENSIGN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 83, strike lines 14 through 20, and insert the
following:
``(C) Limitation on use of funds.--A State shall not use
amounts allotted under this paragraph for expenditures for
providing child health assistance or other health benefits
coverage for any nonpregnant adult.
``(D) Appropriation; allotment authority.--For the purpose
of providing additional allotments to remaining shortfall
States under this paragraph there is appropriated, out of any
funds in the Treasury not otherwise appropriated, such sums
as are necessary for fiscal year 2007.''.
______

SA 761. Mr. ENSIGN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 83, strike lines 14 through 20, and insert the
following:
``(C) Limitation on use of funds.--A State shall not use
amounts allotted under this paragraph for expenditures for
providing child health assistance or other health benefits
coverage for any nonpregnant childless adult.
``(D) Appropriation; allotment authority.--For the purpose
of providing additional allotments to remaining shortfall
States under this paragraph there is appropriated, out of any
funds in the Treasury not otherwise appropriated, such sums
as are necessary for fiscal year 2007.''.
______

SA 762. Mr. VOINOVICH (for himself, Mr. Inhofe, Mr. Warner, Mrs.
Hutchison, Mr. Craig, Mr. Coburn, and Mr. Enzi) submitted an amendment
intended to be proposed by him to the bill H.R. 1591, making emergency
supplemental appropriations for the fiscal year ending September 30,
2007, and for other purposes; which was ordered to lie on the table; as
follows:

On page 33, strike lines 11 through 23.
______

SA 763. Mr. BROWNBACK (for himself and Mr. Roberts) submitted an
amendment intended to be proposed by him to the bill H.R. 1591, making
emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

At the appropriate place, insert the following:

IMPORTANCE OF OMITTING PROVISIONS THAT THREATEN PASSAGE OF LEGISLATION
FUNDING THE IMPLEMENTATION OF BRAC RECOMMENDATIONS

Sec. __. (a) The Senate makes the following findings:
(1) Congress and President George W. Bush approved the
final recommendations of the Defense Base Closure and
Realignment Commission under the 2005 round of defense base
closure and realignment.
(2) These recommendations propose major changes in the
positioning of United States military personnel.
(3) The Department of Defense is moving rapidly to
implement these recommendations.
(4) The communities near military installations that are
slated to receive major troop increases have already invested
time and capital in making preparations for upcoming
increases in population.
(5) Funding these recommendations on an annual basis is
absolutely necessary for their implementation and the
economic confidence of the communities that are expecting
increases in population.
(b) It is the sense of the Senate that Congress should not
include provisions that provoke veto threats from the
President in bills that appropriate funds for the
implementation of recommendations of the Base Closure and
Realignment Commission.

[[Page 7836]]

______

SA 764. Mr. BINGAMAN submitted an amendment intended to be proposed
by him to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

On page 37, between lines 10 and 11, insert the following:

International Commissions

international boundary and water commission, united states and mexico

construction

For an additional amount for ``Construction'' for the
``International Boundary and Water Commission, United States
and Mexico'', $4,300,000, to remain available until expended.
______

SA 765. Mr. SMITH (for himself and Mr. Coleman) submitted an
amendment intended to be proposed to amendment SA 680 submitted by Mr.
Kennedy (for himself, Mr. Enzi, Mr. Baucus, and Mr. Grassley) by him to
the bill H.R. 1591, making emergency supplemental appropriations for
the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

Beginning on page 32, line 13, strike all through page 39,
line 10, and insert the following:

Subtitle B--Subchapter S Provisions

SEC. 521. CAPITAL GAIN OF S CORPORATION NOT TREATED AS
PASSIVE INVESTMENT INCOME.

SEC. 522. TREATMENT OF BANK DIRECTOR SHARES.

``For treatment of certain distributions with respect to restricted
bank director stock, see section 1368(f)''.
(b) Distributions.--Section 1368 (relating to
distributions) is amended by adding at the end the following
new subsection:
``(f) Restricted Bank Director Stock.--If a director
receives a distribution (not in part or full payment in
exchange for stock) from an S corporation with respect to any
restricted bank director stock (as defined in section
1361(f)), the amount of such distribution--
``(1) shall be includible in gross income of the director,
and
``(2) shall be deductible by the corporation for the
taxable year of such corporation in which or with which ends
the taxable year in which such amount in included in the
gross income of the director.''.
(c) Effective Dates.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2006.
(2) Special rule for treatment as second class of stock.--
In the case of any taxable year beginning after December 31,
1996, restricted bank director stock (as defined in section
1361(f) of the Internal Revenue Code of 1986, as added by
this section) shall not be taken into account in determining
whether an S corporation has more than 1 class of stock.

SEC. 523. SPECIAL RULE FOR BANK REQUIRED TO CHANGE FROM THE
RESERVE METHOD OF ACCOUNTING ON BECOMING S
CORPORATION.

(a) In General.--Section 1361, as amended by this Act, is
amended by adding at the end the following new subsection:
``(g) Special Rule for Bank Required to Change From the
Reserve Method of Accounting on Becoming S Corporation.--In
the case of a bank which changes from the reserve method of
accounting for bad debts described in section 585 or 593 for
its first taxable year for which an election under section
1362(a) is in effect, the bank may elect to take into account
any adjustments under section 481 by reason of such change
for the taxable year immediately preceding such first taxable
year.''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006.

SEC. 524. TREATMENT OF THE SALE OF INTEREST IN A QUALIFIED
SUBCHAPTER S SUBSIDIARY.

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

SEC. 525. ELIMINATION OF ALL EARNINGS AND PROFITS
ATTRIBUTABLE TO PRE-1983 YEARS FOR CERTAIN
CORPORATIONS.

In the case of a corporation which is--
(1) described in section 1311(a)(1) of the Small Business
Job Protection Act of 1996, and
(2) not described in section 1311(a)(2) of such Act,
the amount of such corporation's accumulated earnings and
profits (for the first taxable year beginning after December
31, 2006) shall be reduced by an amount equal to the portion
(if any) of such accumulated earnings and profits which were
accumulated in any taxable year beginning before January 1,
1983, for which such corporation was an electing small
business corporation under subchapter S of the Internal
Revenue Code of 1986.

SEC. 526. EXPANSION OF QUALIFYING BENEFICIARIES OF AN
ELECTING SMALL BUSINESS TRUST.

(a) No Look Through for Eligibility Purposes.--Clause (v)
of section 1361(c)(2)(B) is amended by adding at the end the
following new sentence: ``This clause shall not apply for
purposes of subsection (b)(1)(C).''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2006.

[[Page 7837]]

______

SA 766. Mr. BIDEN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. PROHIBITION ON COMPETITIVE SOURCING OF CERTAIN
ACTIVITIES AT MEDICAL FACILITIES OF THE
DEPARTMENT OF DEFENSE.

(a) Prohibition on Competitive Sourcing of Certain
Activities at Medical Facilities of the Department of
Defense.--
(1) Prohibition on initiation of competitive sourcing
activities at medical facilities of department of defense
during period of major military conflict.--
(A) In general.--Except as provided in paragraph (2),
during a period in which the Armed Forces are involved in a
major military conflict, the Secretary of Defense shall not
take any action under the Office of Management and Budget
Circular A-76 or any other similar administrative regulation,
directive, or policy--
(i) to subject work performed by an employee of a medical
facility of the Department of Defense or employee of a
private contractor of such a medical facility to public-
private competition; or
(ii) to convert such employee or the work performed by such
employee to private contractor performance.
(B) Exception to prevent negative impact on provision of
services.--Paragraph (1) shall not apply to any action at a
medical facility of the Department of Defense if the
Secretary of Defense certifies to Congress that not
initiating such action during such period would have a
negative impact on the provision of services at such military
medical facility.
(2) Study on competitive sourcing activities at medical
facilities of department of defense.--The Comptroller General
of the United States shall assess the efficiency and
advisability of subjecting work performed by an employee of a
medical facility of the Department of Defense or a private
contractor of such a medical facility to public-private
competition, or converting such employee or the work
performed by such employee to private contractor performance,
under the Office of Management and Budget Circular A-76 or
any other similar administrative regulation, directive, or
policy.
(b) Minimum Budget for Medical Services of the Armed Forces
During Period of Major Military Conflict.--
(1) In general.--Except as provided in paragraph (2), if
the Armed Forces are involved in a major military conflict at
the time the President submits the budget for a fiscal year
to Congress, the President shall not include in that budget a
total aggregate amount allocated for medical services for the
Department of Defense and the Department of Veterans Affairs
that is less than the total aggregate amount allocated for
such purposes in the budget submitted by the President to
Congress for the previous fiscal year.
(2) Exception.--Paragraph (1) shall not apply if the
President--
(A) certifies to Congress that submitting a total aggregate
amount allocated for medical services for the Department of
Defense and the Department of Veterans Affairs that is less
than that required under paragraph (1) is in the national
interest; and
(B) submits to Congress a report on the reasons for the
reduction described by subparagraph (A).
(c) Limitation on Implementation of Recommendation To Close
Walter Reed Army Medical Center.--
(1) Limitation on implementation of recommendations.--The
Secretary of Defense shall not take any action to implement
the recommendations of the Defense Base Closure and
Realignment Commission under the 2005 round of defense base
closure and realignment relating to the transfer of medical
services from Walter Reed Army Medical Center to the National
Naval Medical Center at Bethesda and at Fort Belvoir during
the period beginning on the date of the enactment of this Act
and ending on the date that is 60 days after the date on
which Congress receives the plan required under paragraph
(2).
(2) Plan required.--Not later than one year after the date
of the enactment of this Act, the Secretary of Defense shall
submit to Congress a plan that includes an assessment of the
following:
(A) The feasibility and advisability of providing current
or prospective employees at Walter Reed Army Medical Center a
guarantee that their employment will continue for more than
two years after the date on which Walter Reed Army Medical
Center is closed.
(B) Detailed construction plans for new medical facilities
and family housing at the National Naval Medical Center at
Bethesda and at Fort Belvoir to accommodate the transfer of
medical services from Walter Reed Army Medical Center to the
National Naval Medical Center at Bethesda and at Fort
Belvoir.
(C) The costs, feasibility, and advisability of completing
all of the construction planned for the transfer of medical
services from Walter Reed Army Medical Center to the National
Naval Medical Center at Bethesda and at Fort Belvoir before
any patients are transferred to such new facilities from
Walter Reed Army Medical Center as a result of the
recommendations of the Defense Base Closure and Realignment
Commission under the 2005 round of defense base closure and
realignment.
(d) Improving Case Management Services for Members of the
Armed Forces.--
(1) Case managers.--
(A) In general.--The Secretary of Defense shall assign at
least one case manager for every 20 recovering servicemembers
to assist in the recovery of such recovering servicemember.
(B) Minimum contact.--The Secretary of Defense shall ensure
that case managers meet with each of their assigned
recovering servicemembers not less than once per week.
(C) Training.--The Secretary of Defense shall ensure that
case managers of the Department of Defense are familiar with
the disability and discharge system of the Department of
Defense and that such case managers are able to assist
recovering servicemembers complete necessary and related
forms.
(2) Recovering servicemember.--In this subsection, the term
``recovering servicemember'' means a member of the Armed
Forces, including a member of the National Guard or a
Reserve, who is undergoing medical treatment, recuperation,
or therapy, or is otherwise in medical hold or holdover
status, for an injury, illness, or disease incurred or
aggravated while on active duty in the Armed Forces.
(e) Screening for Traumatic Brain Injury.--
(1) Screening required.--The Secretary of Defense shall
screen every member of the Armed Forces returning from
deployment in Operation Iraqi Freedom or Operation Enduring
Freedom for traumatic brain injury upon the return of each
such member.
(2) Studies on treating traumatic brain injury as
presumptive condition for disability compensation.--
(A) Study by secretary of defense.--
(i) In general.--The Secretary of Defense shall conduct a
study on the feasability and advisability of treating
traumatic brain injury as a presumptive condition for members
of the Armed Forces who served in Operation Iraqi Freedom or
Operation Enduring Freedom for the qualification for
disability compensation under laws administered by the
Secretary of Defense.
(ii) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Defense shall submit
to Congress a report on the results of the study required by
clause (i).
(B) Study by secretary of veterans affairs.--
(i) In general.--The Secretary of Veterans Affairs shall
conduct a study on the feasability and advisability of
treating traumatic brain injury as a presumptive condition
for the qualification for veterans who served as members of
the Armed Forces in Operation Iraqi Freedom or Operation
Enduring Freedom for disability compensation under laws
administered by the Secretary of Veterans Affairs.
(ii) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Veterans Affairs
shall submit to Congress a report on the results of the study
required by clause (i).
(C) Study by director of national institutes of health.--
(i) In general.--The Director of the National Institutes of
Health shall conduct a study on traumatic brain injury,
including the detection of traumatic brain injury and the
measurement and classification of the severity of traumatic
brain injury.
(ii) Report.--Not later than 180 days after the date of the
enactment of this Act, the Director of the National
Institutes of Health shall submit to Congress a report on the
results of the study required by clause (i).
(f) Requiring Medical Records Management Systems of
Department of Defense To Communicate With Medical Records
Management Systems of Department of Veterans Affairs.--
(1) In general.--Not later than two years after the date of
the enactment of this Act, the Secretary of Defense shall
ensure that the medical records management systems of the
Department of Defense are capable of transmitting medical
records to and receiving medical records from the medical
records management systems of the Department of Veterans
Affairs electronically.
(2) Initiation of activities.--Not later than one year
after the date of the enactment of this Act, the Secretary of
Defense shall begin any activities required to meet the
requirements of paragraph (1).
(g) Department of Veterans Affairs Assessment of Long-Term
Care Needs of Veterans.--
(1) Assessment of long-term care needs.--The Secretary of
Veterans Affairs shall assess the current ability of the
Department of Veterans Affairs to meet long-term care needs
of veterans during the 50-year period that begins on the date
of the enactment of this Act.
(2) Determination of actions required to meet long-term
care needs.--The Secretary

[[Page 7838]]

of Veterans Affairs shall determine what actions are required
to ensure that the needs described in paragraph (1) are
satisfied.
(3) Report required.--Not later than one year after the
date of the enactment of this Act, the Secretary of Veterans
Affairs shall submit to Congress a report on the assessment
required in paragraph (1) and the determination required in
paragraph (2).
______

SA 767. Mr. KENNEDY (for himself, Mr. Lieberman, Mr. Leahy, Mr.
Smith, and Mr. Levin) submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. TEMPORARY INCREASE IN NUMBER OF IRAQI AND AFGHAN
TRANSLATORS IN THE UNITED STATES ARMED FORCES
ELIGIBLE FOR SPECIAL IMMIGRANT STATUS.

Section 1059(c) of the National Defense Authorization Act
for Fiscal Year 2006 (8 U.S.C. 1101 note) is amended--
(1) in paragraph (1), by striking ``The total'' and
inserting ``Except as provided under paragraph (3), the
total'';
(2) in paragraph (2), by inserting ``and shall not be
counted against the numerical limitations under sections
202(a) and 203(b)(4) of the Immigration and Nationality Act
(8 U.S.C. 1152(a) and 1153(b)(4))'' before the period at the
end; and
(3) by adding at the end the following:
``(3) Additional visas available for fiscal year 2007.--
Notwithstanding paragraph (1), up to 500 principal aliens may
be provided special immigrant status under this section
during fiscal year 2007.''.
______

SA 768. Mrs. CLINTON (for herself and Mr. Schumer) submitted an
amendment intended to be proposed by her to the bill H.R. 1591, making
emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

SA 769. Ms. SNOWE submitted an amendment intended to be proposed by
her to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 70, between lines 5 and 6, insert the following:
(c) Catastrophic Disaster Areas.--Section 3(p) of the Small
Business Act (15 U.S.C. 632(p)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (F), as added by subsection (a) of this
section, by striking the period at the end and inserting ``;
or''; and
(B) by adding at the end the following:
``(G) catastrophic disaster areas, for a period of not
longer than 3 years, as determined by the Administrator.'';
and
(2) in paragraph (4), by adding at the end the following:
``(E) Catastrophic disaster area.--The term `catastrophic
disaster area' means an area--
``(i) affected by--

``(I) a disaster determined to be an incident of national
significance under Homeland Security Presidential Directive-
5, or any successor to that directive; or
``(II) a catastrophic incident, as that term is defined in
section 501 of the Homeland Security Act of 2002 (6 U.S.C.
311); and

``(ii) for which the Administrator determines that
designation as a HUBZone would substantially contribute to
the reconstruction and recovery effort in that area.''.
______

SA 770. Ms. SNOWE (for herself and Mr. Kohl) submitted an amendment
intended to be proposed by her to the bill H.R. 1591, making emergency
supplemental appropriations for the fiscal year ending September 30,
2007, and for other purposes; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. ___. CLARIFICATION OF ELIGIBLE CONTRIBUTIONS IN
CONNECTION WITH REGIONAL CENTERS RESPONSIBLE
FOR IMPLEMENTING THE OBJECTIVES OF THE HOLLINGS
MANUFACTURING PARTNERSHIP PROGRAM.

Paragraph (3) of section 25(c) of the National Institute of
Standards and Technology Act (15 U.S.C. 278k(c)(3)) is
amended to read as follows:
``(3) Financial Support.--
``(A) In general.--Any nonprofit institution, or group
thereof, or consortia of nonprofit institutions, including
entities existing on August 23, 1988, may submit to the
Secretary an application for financial support under this
subsection, in accordance with the procedures established by
the Secretary and published in the Federal Register under
paragraph (2).
``(B) Center contributions.--In order to receive assistance
under this section, an applicant for financial assistance
under subparagraph (A) shall provide adequate assurances that
non-Federal assets obtained from the applicant and the
applicant's partnering organizations will be used as a
funding source to meet not less than 50 percent of the costs
incurred in connection with the activities undertaken to
improve the management, productivity, and technological
performance of small- and medium-sized manufacturing
companies.
``(C) Agreements with other entities.--In meeting the 50
percent requirement, it is anticipated that a Center will
enter into agreements with other entities such as private
industry, universities, other Federal agencies, and State
governments to accomplish programmatic objectives and access
new and existing resources that will further the impact of
the Federal investment made on behalf of small- and medium-
sized manufacturing companies. All non-Federal costs,
contributed by such entities and determined by a Center as
programmatically reasonable and allocable are includable as a
portion of the Center's contribution.
``(D) Allocation of legal rights.--Each applicant under
subparagraph (A) shall also submit a proposal for the
allocation of any legal right associated with any invention
that may result from an activity of a Center for which such
applicant receives financial assistance under this
section.''.
______

SA 771. Ms. SNOWE submitted an amendment intended to be proposed by
her to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 70, between lines 5 and 6, insert the following:
(c) Subcontracts.--Section 15 of the Small Business Act (15
U.S.C. 640) is amended by adding at the end the following:
``(q) Disaster Subcontracting Policy.--As soon as is
practicable, the Administrator may issue a policy reflecting
the recommendations of the Comptroller General in the report
titled `Hurricane Katrina: Agency Contracting Should Be More
Complete Regarding Subcontracting Opportunities for Small
Businesses' (relating to small business disaster
subcontracting compliance and reporting), GAO-07-205, dated
March 2007.''.
______

SA 772. Ms. SNOWE submitted an amendment intended to be proposed by
her to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 69, strike line 5 and all that follows through page
70, line 5, and insert the following:
(b) Termination of Program.--Section 711(c) of the Small
Business Competitive Demonstration Program Act of 1988 (15
U.S.C. 644 note) is amended by inserting after ``January 1,
1989'' the following: ``, and shall terminate on the date of
enactment of the U.S. Troop Readiness, Veterans' Care,
Katrina Recovery, and Iraq Accountability Appropriations Act,
2007''.
______

SA 773. Mr. LEAHY submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. INCREASING NUMBER OF H-2B NONIMMIGRANT VISAS FOR
FISCAL YEAR 2007.

Section 214(g)(1)(B) of the Immigration and Nationality Act
(8 U.S.C. 1184(g)(1)(B)) is amended to read as follows:
``(B) under section 101(a)(15)(H)(ii)(b), may not exceed--
``(i) 106,000 in fiscal year 2007; and
``(ii) 66,000 in any fiscal year other than fiscal year
2007.''.
______

SA 774. Mr. BAUCUS submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 85, line 21, strike ``20'' and insert ``17.4''.
______

SA 775. Mr. BAUCUS submitted an amendment intended to be proposed by

[[Page 7839]]

him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 85, strike lines 8 through 21.
______

SA 776. Ms. LANDRIEU (for herself and Mr. Cochran) submitted an
amendment intended to be proposed by her to the bill H.R. 1591, making
emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

At the appropriate place, insert the following:

Hurricane Education Recovery

For carrying out activities authorized by subpart 1 of
part D of title V of the Elementary and Secondary Education
Act of 1965, $30,000,000, to remain available until expended,
for use by the States of Louisiana, Mississippi, and Alabama
primarily for recruiting, retaining, and compensating new and
current teachers, principals, school leaders, and other
educators for positions in public elementary and secondary
schools located in an area with respect to which a major
disaster was declared under section 401 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5170) by reason of Hurricane Katrina or Hurricane
Rita, including through such mechanisms as paying salary
premiums, performance bonuses, housing subsidies, and
relocation costs, with priority given to teachers and school
leaders who were displaced from, or lost employment in,
Louisiana, Mississippi, or Alabama by reason of Hurricane
Katrina or Hurricane Rita and who return to and are rehired
by such State or local educational agency; Provided, That
funds available under this heading to such States may also be
used for 1 or more of the following activities: (1) to build
the capacity of such public elementary and secondary schools
to provide an effective education, including the design,
adaptation, and implementation of high-quality formative
assessments; (2) the establishment of partnerships with
nonprofit entities with a demonstrated track record in
recruiting and retaining outstanding teachers and other
school leaders; and (3) paid release time for teachers and
principals to identify and replicate successful practices
from the fastest-improving and highest-performing schools:
Provided further, That the Secretary of Education shall
allocate amounts available under this heading among such
States that submit applications; that such allocation shall
be based on the number of public elementary and secondary
schools in each State that were closed for 19 days or more
during the period beginning on August 29, 2005, and ending on
December 31, 2005, due to Hurricane Katrina or Hurricane
Rita; and that such States shall in turn allocate funds, on a
competitive basis, to local educational agencies, with
priority given first to such agencies with the highest
percentages of public elementary and secondary schools that
are closed as a result of such hurricanes as of the date of
enactment of this Act and then to such agencies with the
highest percentages of public elementary and secondary
schools with a student-teacher ratio of at least 25 to 1, and
with any remaining amounts to be distributed to such agencies
with demonstrated need, as determined by the State
educational agency: Provided further, That, in the case of a
State that chooses to use amounts available under this
heading for performance bonuses, not later than 60 days after
the date of enactment of this Act and after consultation
with, as applicable, local educational agencies, teachers'
unions, local principals' organizations, local parents'
organizations, local business organizations, and local
charter schools organizations, such State shall establish and
implement a rating system for such performance bonuses based
on strong learning gains for students and growth in student
achievement, based on classroom observation and feedback at
least 4 times annually, conducted by multiple sources
(including principals and master teachers), and evaluated
against research-validated rubrics that use planning,
instructional, and learning environment standards to measure
teaching performance: Provided further, That the amount
provided under this heading is designated as an emergency
requirement pursuant to section 402 of H. Con. Res. 95 (109th
Congress).

Hurricane Education Recovery

programs to restart school operations

Funds made available under section 102 of the Hurricane
Education Recovery Act (title IV of division B of Public Law
109-148) may be used by the States of Louisiana, Mississippi,
Alabama, and Texas, in addition to the uses of funds
described in section 102(e) for the following costs: (1)
recruiting, retaining and compensating new and current
teachers, principals, school leaders, other school
administrators, and other educators for positions in
reopening public elementary and secondary schools impacted by
Hurricane Katrina or Hurricane Rita, including through such
mechanisms as paying salary premiums, performance bonuses,
housing subsidies and relocation costs; and (2) activities to
build the capacity of reopening such public elementary and
secondary schools to provide an effective education,
including the design, adaptation, and implementation of high-
quality formative assessments; the establishment of
partnerships with nonprofit entities with a demonstrated
track record in recruiting and retaining outstanding teachers
and other school leaders; and paid release time for teachers
and principals to identify and replicate successful practices
from the fastest-improving and highest-performing schools:
Provided, further, That in the case of a State that chooses
to use amounts available under this heading for performance
bonuses, not later than 60 days after the date of enactment
of this Act, and after consultation with, as applicable,
local educational agencies, teachers' unions, local
principals' organizations, local parents' organizations,
local business organizations, and local charter schools
organizations, such State shall establish and implement a
rating system that shall be based on strong learning gains
for students and growth in student achievement, based on
classroom observation and feedback at least 4 times annually,
conducted by multiple sources (including principals and
master teachers), and evaluated against research-validated
rubrics that use planning, instructional, and learning
environment standards to measure teaching performance:
Provided further, That the amount provided under this heading
is designated as an emergency requirement pursuant to section
402 of H. Con. Res. 95 (109th Congress).
______

SA 777. Mr. THUNE submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At end of chapter 3 of title I, add the following:

SEC. 1316. ADDITIONAL AMOUNT FOR OPERATION AND MAINTENANCE,
AIR FORCE.

(a) Additional Amount.--The amount appropriated or
otherwise made available by this chapter under the heading
``Operation and Maintenance, Air Force'' is hereby increased
by $100,000,000.
(b) Offset.--The amount appropriated or otherwise made
available by chapter 2 of title II under the heading ``State
and Local Law Enforcement Assistance'' is hereby decreased by
$100,000,000, with the amount of the decrease to be allocated
to amounts otherwise available under that heading for
reimbursement of State and local law enforcement entities for
security and related costs associated with the 2008
Presidential Candidate Nominating Conventions.
______

SA 778. Ms. COLLINS submitted an amendment intended to be proposed by
her to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 33, strike lines 11 through 23 and insert the
following:
Sec. 1502. (a) Any provision of the interim final
regulations issued under section 550 of the Department of
Homeland Security Appropriations Act, 2007 (6 U.S.C. 121
note) relating to the preemption of State law, or the law of
a political subdivision thereof, shall have no force or
effect.
(b) Nothing in subsection (a) shall be construed to effect
the interpretation by any court of Federal preemption of
State law, or the law of a political subdivision thereof,
under section 550 of the Department of Homeland Security
Appropriations Act, 2007 (6 U.S.C. 121 note).
______

SA 779. Ms. SNOWE submitted an amendment intended to be proposed by
her to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:
Not later than 120 days after enactment of this provision,
the Commander, Multi-National Forces-Iraq, having consulted
with the relevant U.S. and Iraqi officials, shall provide a
report detailing the status of the specific 5 benchmarks
described below and declaring, in his judgment, whether each
has been met:
(a) Iraqi assumption of control of its military;
(b) enactment of a Militia Law to disarm and demobilize
militias and to ensure that such security forces are
accountable only to the central government and loyal to the
constitution of Iraq;
(c) completion of the constitutional review and a
referendum held on special amendments to the Iraq
Constitution that ensure equitable participation in
the Government of Iraq without regard to religious sect or
ethnicity;
(d) completion of provincial election law and preparation
for the conduct of provincial elections that ensures
equitable constitution of provincial representative bodies
without regard to religious sect or ethnicity;

[[Page 7840]]

(e) enactment and implementation of legislation to ensure
that the energy resources of Iraq benefit Sunni Arabs, Shia
Arabs, Kurds, and other Iraqi citizens in an equitable
manner; and
(f) enactment and implementation of legislation that
equitably reforms the de-Ba'athification process in Iraq.
Not later than 14 days after submission of that report to
Congress, the Commander, Multi-National Forces-Iraq shall
appear to testify before the relevant committees of
jurisdiction in both the House of Representatives and the
Senate to provide his personal and professional opinion
regarding:
(a) the Iraqi government's success or failure to meet the
benchmarks listed
(b) the ability of the Iraqi government to meet these
benchmarks Should the Commander, Multi-National Forces, Iraq
report and testify that the Iraqi government has failed to
meet the benchmarks listed, then the Commander, Multi-
National Forces, Iraq shall be required to present:
(a) plans for the phased redeployment of U.S. Armed Forces
deployed to Iraq in support of the Baghdad Security Plan as
outlined by the President
(b) plans for changing the mission of US forces to: (i)
Train and equip Iraqi forces. (ii) Assist Iraqi deployed
brigades with intelligence, transportation, air support, and
logistics support. (iii) Protect United States and coalition
personnel and infrastructure. (iv) Maintain rapid-reaction
teams and special operations teams to undertake strike
missions against al Qaeda in Iraq, and for other missions
considered vital by the U.S. commander in Iraq.''
______

SA 780. Mr. GRASSLEY (for himself and Mr. Baucus) submitted an
amendment intended to be proposed by him to the bill H.R. 1591, making
emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

Strike all after the first word and insert the following:

V--FAIR MINIMUM WAGE AND TAX RELIEF

Subtitle A--Fair Minimum Wage

SEC. 500. SHORT TITLE.

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

SEC. 501. MINIMUM WAGE.

SEC. 502. APPLICABILITY OF MINIMUM WAGE TO THE COMMONWEALTH
OF THE NORTHERN MARIANA ISLANDS.

Subtitle B--Small Business Tax Incentives

SEC. 510. SHORT TITLE; AMENDMENT OF CODE.

PART I--SMALL BUSINESS TAX RELIEF PROVISIONS

Subpart A--General Provisions

SEC. 511. EXTENSION OF INCREASED EXPENSING FOR SMALL
BUSINESSES.

Section 179 (relating to election to expense certain
depreciable business assets) is amended by striking ``2010''
each place it appears and inserting ``2011''.

(E)(ix)...........................................................39''.

(5) Effective date.--The amendments made by this subsection
shall apply to property placed in service after the date of
the enactment of this Act.

SEC. 513. CLARIFICATION OF CASH ACCOUNTING RULES FOR SMALL
BUSINESS.

[[Page 7841]]

partnership for any taxable year if, for each of the prior
taxable years ending on or after the date of the enactment of
the Small Business and Work Opportunity Act of 2007, the
entity (or any predecessor) met the gross receipts test in
effect under subsection (c) for such prior taxable year.''.
(B) Conforming amendments.--Section 448(c) of such Code is
amended--
(i) by striking ``$5,000,000'' in the heading thereof,
(ii) by striking ``$5,000,000'' each place it appears in
paragraph (1) and inserting ``$10,000,000'', and
(iii) by adding at the end the following new paragraph:
``(4) Inflation adjustment.--In the case of any taxable
year beginning in a calendar year after 2008, the dollar
amount contained in paragraph (1) shall be increased by an
amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, by substituting `calendar year 2007' for
`calendar year 1992' in subparagraph (B) thereof.
``If any amount as adjusted under this subparagraph is not
a multiple of $100,000, such amount shall be rounded to the
nearest multiple of $100,000.''.
(b) Clarification of Inventory Rules for Small Business.--
(1) In general.--Section 471 (relating to general rule for
inventories) is amended by redesignating subsection (c) as
subsection (d) and by inserting after subsection (b) the
following new subsection:
``(c) Small Business Taxpayers Not Required To Use
Inventories.--
``(1) In general.--A qualified taxpayer shall not be
required to use inventories under this section for a taxable
year.
``(2) Treatment of taxpayers not using inventories.--If a
qualified taxpayer does not use inventories with respect to
any property for any taxable year beginning after the date of
the enactment of this subsection, such property shall be
treated as a material or supply which is not incidental.
``(3) Qualified taxpayer.--For purposes of this subsection,
the term `qualified taxpayer' means--
``(A) any eligible taxpayer (as defined in section
446(g)(2)), and
``(B) any taxpayer described in section 448(b)(3).''.
(2) Conforming amendments.--
(A) Subpart D of part II of subchapter E of chapter 1 is
amended by striking section 474.
(B) The table of sections for subpart D of part II of
subchapter E of chapter 1 is amended by striking the item
relating to section 474.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. 514. EXTENSION AND MODIFICATION OF COMBINED WORK
OPPORTUNITY TAX CREDIT AND WELFARE-TO-WORK
CREDIT.

SEC. 515. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

(a) Employment Taxes.--Chapter 25 (relating to general
provisions relating to employment taxes) is amended by adding
at the end the following new section:

``SEC. 3511. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

[[Page 7842]]

``(B) section 45A (Indian employment credit),
``(C) section 45B (credit for portion of employer social
security taxes paid with respect to employee cash tips),
``(D) section 45C (clinical testing expenses for certain
drugs for rare diseases or conditions),
``(E) section 51 (work opportunity credit),
``(F) section 51A (temporary incentives for employing long-
term family assistance recipients),
``(G) section 1396 (empowerment zone employment credit),
``(H) 1400(d) (DC Zone employment credit),
``(I) Section 1400H (renewal community employment credit),
and
``(J) any other section as provided by the Secretary.
``(e) Special Rule for Related Party.--This section shall
not apply in the case of a customer which bears a
relationship to a certified professional employer
organization described in section 267(b) or 707(b). For
purposes of the preceding sentence, such sections shall be
applied by substituting `10 percent' for `50 percent'.
``(f) Special Rule for Certain Individuals.--For purposes
of the taxes imposed under this subtitle, an individual with
net earnings from self-employment derived from the customer's
trade or business is not a work site employee with respect to
remuneration paid by a certified professional employer
organization.
``(g) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(b) Certified Professional Employer Organization Defined.--
Chapter 79 (relating to definitions) is amended by adding at
the end the following new section:

``SEC. 7705. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS
DEFINED.

[[Page 7843]]

collect and remit, in accordance with paragraphs (1), (2),
and (3), contributions during the taxable year to the State
unemployment fund with respect to a work site employee.'',
and
(B) in the last sentence--
(i) by striking ``paragraphs (1), (2), and (3)'' and
inserting ``paragraphs (1), (2), (3), and (4)'', and
(ii) by striking ``paragraph (1), (2), or (3)'' and
inserting ``paragraph (1), (2), (3), or (4)''.
(3) Section 6053(c) (relating to reporting of tips) is
amended by adding at the end the following new paragraph:
``(8) Certified professional employer organizations.--For
purposes of any report required by this subsection, in the
case of a certified professional employer organization that
is treated under section 3511 as the employer of a work site
employee, the customer with respect to whom a work site
employee performs services shall be the employer for purposes
of reporting under this section and the certified
professional employer organization shall furnish to the
customer any information necessary to complete such reporting
no later than such time as the Secretary shall prescribe.''.
(d) Clerical Amendments.--
(1) The table of sections for chapter 25 is amended by
adding at the end the following new item:

``Sec. 3511. Certified professional employer organizations''.

(2) The table of sections for chapter 79 is amended by
inserting after the item relating to section 7704 the
following new item:

``Sec. 7705. Certified professional employer organizations defined''.

SEC. 516. ACCELERATED DEPRECIATION FOR INVESTMENT IN HIGH
OUT-MIGRATION COUNTIES.

(a) In General.--Section 168 (relating to accelerated cost
recovery system) is amended by adding at the end the
following new subsection:
``(m) Rural Investment Property.--
``(1) In general.--For purposes of subsection (a), the
applicable recovery period for qualified rural investment
property shall be determined in accordance with the table
contained in paragraph (2) in lieu of the table contained in
subsection (c).
``(2) Applicable recovery period for rural investment
property.--For purposes of paragraph (1)--
The applicable
`` ``In the case of: recovery period is:
3-year property...........................................2 years
5-year property...........................................3 years
7-year property...........................................4 years
10-year property..........................................6 years
15-year property..........................................9 years
20-year property.........................................12 years
Nonresidential real property................................22 years.
``(3) Qualified rural investment property defined.--For
purposes of this subsection--
``(A) In general.--The term `qualified rural investment
property' means property which is property described in the
table in paragraph (2) and which is--
``(i) used by the taxpayer predominantly in the active
conduct of a trade or business within a high out-migration
county,
``(ii) not used or located outside such county on a regular
basis,
``(iii) not acquired (directly or indirectly) by the
taxpayer from a person who is related to the taxpayer (within
the meaning of section 465(b)(3)(C)), and
``(iv) not property (or any portion thereof) placed in
service for purposes of operating any racetrack or other
facility used for gambling.
``(B) High out-migration county.--The term `high out-
migration county' means any county which--
``(i) is outside a metropolitan statistical area (defined
as such by the Office of Management and Budget), and
``(ii) during the 5-year periods 1990 through 1994 and 1995
through 1999 had a net population loss.
``(4) Termination.--This subsection shall not apply to
property placed in service after March 31, 2008.''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after the date of
the enactment of this Act, the original use of which begins
with the taxpayer after such date.

Subpart B--Subchapter S Provisions

SEC. 521. CAPITAL GAIN OF S CORPORATION NOT TREATED AS
PASSIVE INVESTMENT INCOME.

SEC. 522. TREATMENT OF BANK DIRECTOR SHARES.

[[Page 7844]]

``For treatment of certain distributions with respect to restricted
bank director stock, see section 1368(f)''.

SEC. 523. SPECIAL RULE FOR BANK REQUIRED TO CHANGE FROM THE
RESERVE METHOD OF ACCOUNTING ON BECOMING S
CORPORATION.

SEC. 524. TREATMENT OF THE SALE OF INTEREST IN A QUALIFIED
SUBCHAPTER S SUBSIDIARY.

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

SEC. 525. ELIMINATION OF ALL EARNINGS AND PROFITS
ATTRIBUTABLE TO PRE-1983 YEARS FOR CERTAIN
CORPORATIONS.

In the case of a corporation which is--
(1) described in section 1311(a)(1) of the Small Business
Job Protection Act of 1996, and
(2) not described in section 1311(a)(2) of such Act,

the amount of such corporation's accumulated earnings and
profits (for the first taxable year beginning after the date
of the enactment of this Act) shall be reduced by an amount
equal to the portion (if any) of such accumulated earnings
and profits which were accumulated in any taxable year
beginning before January 1, 1983, for which such corporation
was an electing small business corporation under subchapter S
of the Internal Revenue Code of 1986.

SEC. 526. EXPANSION OF QUALIFYING BENEFICIARIES OF AN
ELECTING SMALL BUSINESS TRUST.

SEC. 527. DEDUCTIBILITY OF INTEREST EXPENSE ON INDEBTEDNESS
INCURRED BY AN ELECTING SMALL BUSINESS TRUST TO
ACQUIRE S CORPORATION STOCK.

(a) In General.--Subparagraph (C) of section 641(c)(2)
(relating to modifications) is amended by inserting after
clause (iii) the following new clause:
``(iv) Any interest expense paid or accrued on indebtedness
incurred to acquire stock in an S corporation.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2006.

PART II--REVENUE PROVISIONS

SEC. 531. MODIFICATION OF EFFECTIVE DATE OF LEASING
PROVISIONS OF THE AMERICAN JOBS CREATION ACT OF
2004.

SEC. 532. APPLICATION OF RULES TREATING INVERTED CORPORATIONS
AS DOMESTIC CORPORATIONS TO CERTAIN
TRANSACTIONS OCCURRING AFTER MARCH 20, 2002.

SEC. 533. DENIAL OF DEDUCTION FOR PUNITIVE DAMAGES.

``SEC. 91. PUNITIVE DAMAGES COMPENSATED BY INSURANCE OR
OTHERWISE.

``Gross income shall include any amount paid to or on
behalf of a taxpayer as insurance or otherwise by reason of
the taxpayer's

[[Page 7845]]

liability (or agreement) to pay punitive damages.''.
(2) Reporting requirements.--Section 6041 (relating to
information at source) is amended by adding at the end the
following new subsection:
``(h) Section To Apply to Punitive Damages Compensation.--
This section shall apply to payments by a person to or on
behalf of another person as insurance or otherwise by reason
of the other person's liability (or agreement) to pay
punitive damages.''.
(3) Conforming amendment.--The table of sections for part
II of subchapter B of chapter 1 is amended by adding at the
end the following new item:

``Sec. 91. Punitive damages compensated by insurance or otherwise''.

(c) Effective Date.--The amendments made by this section
shall apply to damages paid or incurred on or after the date
of the enactment of this Act.

SEC. 534. DENIAL OF DEDUCTION FOR CERTAIN FINES, PENALTIES,
AND OTHER AMOUNTS.

A taxpayer shall not meet the requirements of subparagraph
(A) solely by reason an identification under subparagraph
(B). This paragraph shall not apply to any amount paid or
incurred as reimbursement to the government or entity for the
costs of any investigation or litigation unless such amount
is paid or incurred for a cost or fee regularly charged for
any routine audit or other customary review performed by the
government or entity.
``(3) Exception for amounts paid or incurred as the result
of certain court orders.--Paragraph (1) shall not apply to
any amount paid or incurred by order of a court in a suit in
which no government or entity described in paragraph (4) is a
party.
``(4) Certain nongovernmental regulatory entities.--An
entity is described in this paragraph if it is--
``(A) a nongovernmental entity which exercises self-
regulatory powers (including imposing sanctions) in
connection with a qualified board or exchange (as defined in
section 1256(g)(7)), or
``(B) to the extent provided in regulations, a
nongovernmental entity which exercises self-regulatory powers
(including imposing sanctions) as part of performing an
essential governmental function.
``(5) Exception for taxes due.--Paragraph (1) shall not
apply to any amount paid or incurred as taxes due.''.
(b) Reporting of Deductible Amounts.--
(1) In general.--Subpart B of part III of subchapter A of
chapter 61 is amended by inserting after section 6050V the
following new section:

``SEC. 6050W. INFORMATION WITH RESPECT TO CERTAIN FINES,
PENALTIES, AND OTHER AMOUNTS.

``Sec. 6050W. Information with respect to certain fines, penalties, and
other amounts''.

SEC. 535. REVISION OF TAX RULES ON EXPATRIATION OF
INDIVIDUALS.

(a) In General.--Subpart A of part II of subchapter N of
chapter 1 is amended by inserting after section 877 the
following new section:

``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.

``(ii) Rounding rules.--If any amount after adjustment
under clause (i) is not a multiple of $1,000, such amount
shall be rounded to the next lower multiple of $1,000.

[[Page 7846]]

``(4) Election to continue to be taxed as united states
citizen.--
``(A) In general.--If a covered expatriate elects the
application of this paragraph--
``(i) this section (other than this paragraph and
subsection (i)) shall not apply to the expatriate, but
``(ii) in the case of property to which this section would
apply but for such election, the expatriate shall be subject
to tax under this title in the same manner as if the
individual were a United States citizen.
``(B) Requirements.--Subparagraph (A) shall not apply to an
individual unless the individual--
``(i) provides security for payment of tax in such form and
manner, and in such amount, as the Secretary may require,
``(ii) consents to the waiver of any right of the
individual under any treaty of the United States which would
preclude assessment or collection of any tax which may be
imposed by reason of this paragraph, and
``(iii) complies with such other requirements as the
Secretary may prescribe.
``(C) Election.--An election under subparagraph (A) shall
apply to all property to which this section would apply but
for the election and, once made, shall be irrevocable. Such
election shall also apply to property the basis of which is
determined in whole or in part by reference to the property
with respect to which the election was made.
``(b) Election To Defer Tax.--
``(1) In general.--If the taxpayer elects the application
of this subsection with respect to any property treated as
sold by reason of subsection (a), the payment of the
additional tax attributable to such property shall be
postponed until the due date of the return for the taxable
year in which such property is disposed of (or, in the case
of property disposed of in a transaction in which gain is not
recognized in whole or in part, until such other date as the
Secretary may prescribe).
``(2) Determination of tax with respect to property.--For
purposes of paragraph (1), the additional tax attributable to
any property is an amount which bears the same ratio to the
additional tax imposed by this chapter for the taxable year
solely by reason of subsection (a) as the gain taken into
account under subsection (a) with respect to such property
bears to the total gain taken into account under subsection
(a) with respect to all property to which subsection (a)
applies.
``(3) Termination of postponement.--No tax may be postponed
under this subsection later than the due date for the return
of tax imposed by this chapter for the taxable year which
includes the date of death of the expatriate (or, if earlier,
the time that the security provided with respect to the
property fails to meet the requirements of paragraph (4),
unless the taxpayer corrects such failure within the time
specified by the Secretary).
``(4) Security.--
``(A) In general.--No election may be made under paragraph
(1) with respect to any property unless adequate security is
provided to the Secretary with respect to such property.
``(B) Adequate security.--For purposes of subparagraph (A),
security with respect to any property shall be treated as
adequate security if--
``(i) it is a bond in an amount equal to the deferred tax
amount under paragraph (2) for the property, or
``(ii) the taxpayer otherwise establishes to the
satisfaction of the Secretary that the security is adequate.
``(5) Waiver of certain rights.--No election may be made
under paragraph (1) unless the taxpayer consents to the
waiver of any right under any treaty of the United States
which would preclude assessment or collection of any tax
imposed by reason of this section.
``(6) Elections.--An election under paragraph (1) shall
only apply to property described in the election and, once
made, is irrevocable. An election may be made under paragraph
(1) with respect to an interest in a trust with respect to
which gain is required to be recognized under subsection
(f)(1).
``(7) Interest.--For purposes of section 6601--
``(A) the last date for the payment of tax shall be
determined without regard to the election under this
subsection, and
``(B) section 6621(a)(2) shall be applied by substituting
`5 percentage points' for `3 percentage points' in
subparagraph (B) thereof.
``(c) Covered Expatriate.--For purposes of this section--
``(1) In general.--Except as provided in paragraph (2), the
term `covered expatriate' means an expatriate.
``(2) Exceptions.--An individual shall not be treated as a
covered expatriate if--
``(A) the individual--
``(i) became at birth a citizen of the United States and a
citizen of another country and, as of the expatriation date,
continues to be a citizen of, and is taxed as a resident of,
such other country, and
``(ii) has not been a resident of the United States (as
defined in section 7701(b)(1)(A)(ii)) during the 5 taxable
years ending with the taxable year during which the
expatriation date occurs, or
``(B)(i) the individual's relinquishment of United States
citizenship occurs before such individual attains age 18\1/
2\, and
``(ii) the individual has been a resident of the United
States (as so defined) for not more than 5 taxable years
before the date of relinquishment.
``(d) Exempt Property; Special Rules for Pension Plans.--
``(1) Exempt property.--This section shall not apply to the
following:
``(A) United states real property interests.--Any United
States real property interest (as defined in section
897(c)(1)), other than stock of a United States real property
holding corporation which does not, on the day before the
expatriation date, meet the requirements of section
897(c)(2).
``(B) Specified property.--Any property or interest in
property not described in subparagraph (A) which the
Secretary specifies in regulations.
``(2) Special rules for certain retirement plans.--
``(A) In general.--If a covered expatriate holds on the day
before the expatriation date any interest in a retirement
plan to which this paragraph applies--
``(i) such interest shall not be treated as sold for
purposes of subsection (a)(1), but
``(ii) an amount equal to the present value of the
expatriate's nonforfeitable accrued benefit shall be treated
as having been received by such individual on such date as a
distribution under the plan.
``(B) Treatment of subsequent distributions.--In the case
of any distribution on or after the expatriation date to or
on behalf of the covered expatriate from a plan from which
the expatriate was treated as receiving a distribution under
subparagraph (A), the amount otherwise includible in gross
income by reason of the subsequent distribution shall be
reduced by the excess of the amount includible in gross
income under subparagraph (A) over any portion of such amount
to which this subparagraph previously applied.
``(C) Treatment of subsequent distributions by plan.--For
purposes of this title, a retirement plan to which this
paragraph applies, and any person acting on the plan's
behalf, shall treat any subsequent distribution described in
subparagraph (B) in the same manner as such distribution
would be treated without regard to this paragraph.
``(D) Applicable plans.--This paragraph shall apply to--
``(i) any qualified retirement plan (as defined in section
4974(c)),
``(ii) an eligible deferred compensation plan (as defined
in section 457(b)) of an eligible employer described in
section 457(e)(1)(A), and
``(iii) to the extent provided in regulations, any foreign
pension plan or similar retirement arrangements or programs.
``(e) Definitions.--For purposes of this section--
``(1) Expatriate.--The term `expatriate' means--
``(A) any United States citizen who relinquishes
citizenship, and
``(B) any long-term resident of the United States who--
``(i) ceases to be a lawful permanent resident of the
United States (within the meaning of section 7701(b)(6)), or
``(ii) commences to be treated as a resident of a foreign
country under the provisions of a tax treaty between the
United States and the foreign country and who does not waive
the benefits of such treaty applicable to residents of the
foreign country.
``(2) Expatriation date.--The term `expatriation date'
means--
``(A) the date an individual relinquishes United States
citizenship, or
``(B) in the case of a long-term resident of the United
States, the date of the event described in clause (i) or (ii)
of paragraph (1)(B).
``(3) Relinquishment of citizenship.--A citizen shall be
treated as relinquishing United States citizenship on the
earliest of--
``(A) the date the individual renounces such individual's
United States nationality before a diplomatic or consular
officer of the United States pursuant to paragraph (5) of
section 349(a) of the Immigration and Nationality Act (8
U.S.C. 1481(a)(5)),
``(B) the date the individual furnishes to the United
States Department of State a signed statement of voluntary
relinquishment of United States nationality confirming the
performance of an act of expatriation specified in paragraph
(1), (2), (3), or (4) of section 349(a) of the Immigration
and Nationality Act (8 U.S.C. 1481(a)(1)-(4)),
``(C) the date the United States Department of State issues
to the individual a certificate of loss of nationality, or
``(D) the date a court of the United States cancels a
naturalized citizen's certificate of naturalization.

[[Page 7847]]

``(A) the individual shall not be treated as having sold
such interest,
``(B) such interest shall be treated as a separate share in
the trust, and
``(C)(i) such separate share shall be treated as a separate
trust consisting of the assets allocable to such share,
``(ii) the separate trust shall be treated as having sold
its assets on the day before the expatriation date for their
fair market value and as having distributed all of its assets
to the individual as of such time, and
``(iii) the individual shall be treated as having
recontributed the assets to the separate trust.

[[Page 7848]]

``(3) Certain rules apply.--The rules set forth in
paragraphs (1), (3), and (4) of section 6324A(d) shall apply
with respect to the lien imposed by this subsection as if it
were a lien imposed by section 6324A.
``(j) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(b) Inclusion in Income of Gifts and Bequests Received by
United States Citizens and Residents From Expatriates.--
Section 102 (relating to gifts, etc. not included in gross
income) is amended by adding at the end the following new
subsection:
``(d) Gifts and Inheritances From Covered Expatriates.--
``(1) Treatment of gifts and inheritances.--
``(A) In general.--Subsection (a) shall not exclude from
gross income the value of any property acquired by gift,
bequest, devise, or inheritance from a covered expatriate
after the expatriation date.
``(B) Determination of basis.--Notwithstanding sections
1015 or 1022, the basis of any property described in
subparagraph (A) in the hands of the donee or the person
acquiring such property from the decedent shall be equal to
the fair market value of the property at the time of the
gift, bequest, devise, or inheritance.
``(2) Exceptions for transfers otherwise subject to estate
or gift tax.--Paragraph (1) shall not apply to any property
if either--
``(A) the gift, bequest, devise, or inheritance is--
``(i) shown on a timely filed return of tax imposed by
chapter 12 as a taxable gift by the covered expatriate, or
``(ii) included in the gross estate of the covered
expatriate for purposes of chapter 11 and shown on a timely
filed return of tax imposed by chapter 11 of the estate of
the covered expatriate, or
``(B) no such return was timely filed but no such return
would have been required to be filed even if the covered
expatriate were a citizen or long-term resident of the United
States.
``(3) Definitions.--For purposes of this subsection, any
term used in this subsection which is also used in section
877A shall have the same meaning as when used in section
877A.''.
(c) Definition of Termination of United States
Citizenship.--Section 7701(a) is amended by adding at the end
the following new paragraph:
``(50) Termination of united states citizenship.--
``(A) In general.--An individual shall not cease to be
treated as a United States citizen before the date on which
the individual's citizenship is treated as relinquished under
section 877A(e)(3).
``(B) Dual citizens.--Under regulations prescribed by the
Secretary, subparagraph (A) shall not apply to an individual
who became at birth a citizen of the United States and a
citizen of another country.''.
(d) Ineligibility for Visa or Admission to United States.--
(1) In general.--Section 212(a)(10)(E) of the Immigration
and Nationality Act (8 U.S.C. 1182(a)(10)(E)) is amended to
read as follows:
``(E) Former citizens not in compliance with expatriation
revenue provisions.--Any alien who is a former citizen of the
United States who relinquishes United States citizenship
(within the meaning of section 877A(e)(3) of the Internal
Revenue Code of 1986) and who is not in compliance with
section 877A of such Code (relating to expatriation) is
inadmissible.''.
(2) Availability of information.--
(A) In general.--Section 6103(l) (relating to disclosure of
returns and return information for purposes other than tax
administration) is amended by adding at the end the following
new paragraph:
``(21) Disclosure to deny visa or admission to certain
expatriates.--Upon written request of the Attorney General or
the Attorney General's delegate, the Secretary shall disclose
whether an individual is in compliance with section 877A (and
if not in compliance, any items of noncompliance) to officers
and employees of the Federal agency responsible for
administering section 212(a)(10)(E) of the Immigration and
Nationality Act solely for the purpose of, and to the extent
necessary in, administering such section 212(a)(10)(E).''.
(B) Safeguards.--Section 6103(p)(4) (relating to
safeguards) is amended by striking ``or (20)'' each place it
appears and inserting ``(20), or (21)''.
(3) Effective dates.--The amendments made by this
subsection shall apply to individuals who relinquish United
States citizenship on or after the date of the enactment of
this Act.
(e) Conforming Amendments.--
(1) Section 877 is amended by adding at the end the
following new subsection:
``(h) Application.--This section shall not apply to an
expatriate (as defined in section 877A(e)) whose expatriation
date (as so defined) occurs on or after the date of the
enactment of this subsection.''.
(2) Section 2107 is amended by adding at the end the
following new subsection:
``(f) Application.--This section shall not apply to any
expatriate subject to section 877A.''.
(3) Section 2501(a)(3) is amended by adding at the end the
following new subparagraph:
``(C) Application.--This paragraph shall not apply to any
expatriate subject to section 877A.''.
(4) Section 6039G(a) is amended by inserting ``or 877A''
after ``section 877(b)''.
(5) The second sentence of section 6039G(d) is amended by
inserting ``or who relinquishes United States citizenship
(within the meaning of section 877A(e)(3))'' after ``section
877(a))''.
(f) Clerical Amendment.--The table of sections for subpart
A of part II of subchapter N of chapter 1 is amended by
inserting after the item relating to section 877 the
following new item:

``Sec. 877A. Tax responsibilities of expatriation''.

SEC. 536. LIMITATION ON ANNUAL AMOUNTS WHICH MAY BE DEFERRED
UNDER NONQUALIFIED DEFERRED COMPENSATION
ARRANGEMENTS.

``(ii) Base period.--

[[Page 7849]]

the entire 5-taxable year period referred to in subparagraph
(A) or (B), only the portion of such period during which the
participant performed such services shall be taken into
account.''.

SEC. 537. MODIFICATION OF CRIMINAL PENALTIES FOR WILLFUL
FAILURES INVOLVING TAX PAYMENTS AND FILING
REQUIREMENTS.

(a) Increase in Penalty for Attempt to Evade or Defeat
Tax.--Section 7201 (relating to attempt to evade or defeat
tax) is amended--
(1) by striking ``$100,000'' and inserting ``$500,000'',
(2) by striking ``$500,000'' and inserting ``$1,000,000'',
and
(3) by striking ``5 years'' and inserting ``10 years''.
(b) Modification of Penalties for Willful Failure to File
Return, Supply Information, or Pay Tax.--
(1) In general.--Section 7203 (relating to willful failure
to file return, supply information, or pay tax) is amended--
(A) in the first sentence--
(i) by striking ``Any person'' and inserting the following:
``(a) In General.--Any person'', and
(ii) by striking ``$25,000'' and inserting ``$50,000'',
(B) in the third sentence, by striking ``section'' and
inserting ``subsection'', and
(C) by adding at the end the following new subsection:
``(b) Aggravated Failure to File.--
``(1) In general.--In the case of any failure described in
paragraph (2), the first sentence of subsection (a) shall be
applied by substituting--
``(A) `felony' for `misdemeanor',
``(B) `$250,000 ($500,000' for `$50,000 ($100,000', and
``(C) `5 years' for `1 year'.
``(2) Failure described.--A failure described in this
paragraph is--
``(A) a failure to make a return described in subsection
(a) for any 3 taxable years occurring during any period of 5
consecutive taxable years if the aggregate tax liability for
such period is not less than $50,000, or
``(B) a failure to make a return if the tax liability
giving rise to the requirement to make such return is
attributable to an activity which is a felony under any State
or Federal law.''.
(2) Penalty may be applied in addition to other
penalties.--Section 7204 (relating to fraudulent statement or
failure to make statement to employees) is amended by
striking ``the penalty provided in section 6674'' and
inserting ``the penalties provided in sections 6674 and
7203(b)''.
(c) Fraud and False Statements.--Section 7206 (relating to
fraud and false statements) is amended--
(1) by striking ``$100,000'' and inserting ``$500,000'',
(2) by striking ``$500,000'' and inserting ``$1,000,000'',
and
(3) by striking ``3 years'' and inserting ``5 years''.
(d) Increase in Monetary Limitation for Underpayment or
Overpayment of Tax Due to Fraud.--Section 7206 (relating to
fraud and false statements), as amended by subsection (a)(3),
is amended--
(1) by striking ``Any person who--''and inserting ``(a) In
General.--Any person who--'', and
(2) by adding at the end the following new subsection:
``(b) Increase in Monetary Limitation for Underpayment or
Overpayment of Tax Due to Fraud.--If any portion of any
underpayment (as defined in section 6664(a)) or overpayment
(as defined in section 6401(a)) of tax required to be shown
on a return is attributable to fraudulent action described in
subsection (a), the applicable dollar amount under subsection
(a) shall in no event be less than an amount equal to such
portion. A rule similar to the rule under section 6663(b)
shall apply for purposes of determining the portion so
attributable.''.
(e) Effective Date.--The amendments made by this section
shall apply to actions, and failures to act, occurring after
the date of the enactment of this Act.

SEC. 538. DOUBLING OF CERTAIN PENALTIES, FINES, AND INTEREST
ON UNDERPAYMENTS RELATED TO CERTAIN OFFSHORE
FINANCIAL ARRANGEMENTS.

SEC. 539. INCREASE IN PENALTY FOR BAD CHECKS AND MONEY
ORDERS.

SEC. 540. TREATMENT OF CONTINGENT PAYMENT CONVERTIBLE DEBT
INSTRUMENTS.

[[Page 7850]]

an amount equal to the approximate value of such stock or
debt, and
``(ii) provides for 1 or more contingent payments,

SEC. 541. EXTENSION OF IRS USER FEES.

Subsection (c) of section 7528 (relating to Internal
Revenue Service user fees) is amended by striking ``September
30, 2014'' and inserting ``September 30, 2016''.

SEC. 542. MODIFICATION OF COLLECTION DUE PROCESS PROCEDURES
FOR EMPLOYMENT TAX LIABILITIES.

SEC. 543. MODIFICATIONS TO WHISTLEBLOWER REFORMS.

(a) Modification of Tax Threshold for Awards.--Subparagraph
(B) of section 7623(b)(5), as added by the Tax Relief and
Health Care Act of 2006, is amended by striking
``$2,000,000'' and inserting ``$20,000''.
(b) Whistleblower Office.--
(1) In general.--Section 7623 is amended by adding at the
end the following new subsections:
``(c) Whistleblower Office.--
``(1) In general.--There is established in the Internal
Revenue Service an office to be known as the `Whistleblower
Office' which--
``(A) shall at all times operate at the direction of the
Commissioner and coordinate and consult with other divisions
in the Internal Revenue Service as directed by the
Commissioner,
``(B) shall analyze information received from any
individual described in subsection (b) and either investigate
the matter itself or assign it to the appropriate Internal
Revenue Service office,
``(C) shall monitor any action taken with respect to such
matter,
``(D) shall inform such individual that it has accepted the
individual's information for further review,
``(E) may require such individual and any legal
representative of such individual to not disclose any
information so provided,
``(F) in its sole discretion, may ask for additional
assistance from such individual or any legal representative
of such individual, and
``(G) shall determine the amount to be awarded to such
individual under subsection (b).
``(2) Funding for office.--There is authorized to be
appropriated $10,000,000 for each fiscal year for the
Whistleblower Office. These funds shall be used to maintain
the Whistleblower Office and also to reimburse other Internal
Revenue Service offices for related costs, such as costs of
investigation and collection.
``(3) Request for assistance.--
``(A) In general.--Any assistance requested under paragraph
(1)(F) shall be under the direction and control of the
Whistleblower Office or the office assigned to investigate
the matter under subparagraph (A). No individual or legal
representative whose assistance is so requested may by reason
of such request represent himself or herself as an employee
of the Federal Government.
``(B) Funding of assistance.--From the amounts available
for expenditure under subsection (b), the Whistleblower
Office may, with the agreement of the individual described in
subsection (b), reimburse the costs incurred by any legal
representative of such individual in providing assistance
described in subparagraph (A).
``(d) Reports.--The Secretary shall each year conduct a
study and report to Congress on the use of this section,
including--
``(1) an analysis of the use of this section during the
preceding year and the results of such use, and
``(2) any legislative or administrative recommendations
regarding the provisions of this section and its
application.''.
(2) Conforming amendment.--Section 406 of division A of the
Tax Relief and Health Care Act of 2006 is amended by striking
subsections (b) and (c).
(3) Report on implementation.--Not later than 6 months
after the date of the enactment of this Act, the Secretary of
the Treasury shall submit to Congress a report on the
establishment and operation of the Whistleblower Office under
section 7623(c) of the Internal Revenue Code of 1986.
(c) Publicity of Award Appeals.--Paragraph (4) of section
7623(b), as added by the Tax Relief and Health Care Act of
2006, is amended to read as follows:
``(4) Appeal of award determination.--
``(A) In general.--Any determination regarding an award
under paragraph (1), (2), or (3) may, within 30 days of such
determination, be appealed to the Tax Court (and the Tax
Court shall have jurisdiction with respect to such matter).
``(B) Publicity of appeals.--Notwithstanding sections 7458
and 7461, the Tax Court may, in order to preserve the
anonymity, privacy, or confidentiality of any person under
this subsection, provide by rules adopted under section 7453
that portions of filings, hearings, testimony, evidence, and
reports in connection with proceedings under this subsection
may be closed to the public or to inspection by the
public.''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to information
provided on or after the date of the enactment of this Act.
(2) Publicity of award appeals.--The amendment made by
subsection (c) shall take effect as if included in the
amendments made by section 406 of the Tax Relief and Health
Care Act of 2006.

SEC. 544. MODIFICATIONS OF DEFINITION OF EMPLOYEES COVERED BY
DENIAL OF DEDUCTION FOR EXCESSIVE EMPLOYEE
REMUNERATION.

SEC. 545. INCREASE IN AGE OF MINOR CHILDREN WHOSE UNEARNED
INCOME IS TAXED AS IF PARENT'S INCOME.

(a) In General.--Subparagraph (A) of section 1(g)(2)
(relating to child to whom subsection applies) is amended to
read as follows:
``(A) such child--
``(i) has not attained age 18 before the close of the
taxable year, or
``(ii)(I) has attained age 18 before the close of the
taxable year and meets the age requirements of section
152(c)(3) (determined without regard to subparagraph (B)
thereof), and
``(II) whose earned income (as defined in section
911(d)(2)) for such taxable year does not exceed one-half of
the amount of the individual's support (within the meaning of
section 152(c)(1)(D) after the application of section
152(f)(5)) for such taxable year,''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. 546. INCREASE IN INFORMATION RETURN PENALTIES.

[[Page 7851]]

(3) Lower limitation for persons with gross receipts of not
more than $5,000,000.--Section 6721(d)(1) is amended--
(A) in subparagraph (A)--
(i) by striking ``$100,000'' and inserting ``$1,000,000'',
and
(ii) by striking ``$250,000'' and inserting ``$3,000,000'',
(B) in subparagraph (B)--
(i) by striking ``$25,000'' and inserting ``$175,000'', and
(ii) by striking ``$75,000'' and inserting ``$500,000'',
and
(C) in subparagraph (C)--
(i) by striking ``$50,000'' and inserting ``$500,000'', and
(ii) by striking ``$150,000'' and inserting ``$1,500,000''.
(4) Penalty in case of intentional disregard.--Section
6721(e) is amended--
(A) by striking ``$100'' in paragraph (2) and inserting
``$500'',
(B) by striking ``$250,000'' in paragraph (3)(A) and
inserting ``$3,000,000''.
(b) Failure to Furnish Correct Payee Statements.--
(1) In general.--Section 6722(a) is amended--
(A) by striking ``$50'' and inserting ``$250'', and
(B) by striking ``$100,000'' and inserting ``$1,000,000''.
(2) Penalty in case of intentional disregard.--Section
6722(c) is amended--
(A) by striking ``$100'' in paragraph (1) and inserting
``$500'', and
(B) by striking ``$100,000'' in paragraph (2)(A) and
inserting ``$1,000,000''.
(c) Failure to Comply With Other Information Reporting
Requirements.--Section 6723 is amended--
(1) by striking ``$50'' and inserting ``$250'', and
(2) by striking ``$100,000'' and inserting ``$1,000,000''.
(d) Effective Date.--The amendments made by this section
shall apply with respect to information returns required to
be filed on or after January 1, 2008.

SEC. 547. E-FILING REQUIREMENT FOR CERTAIN LARGE
ORGANIZATIONS.

SEC. 548. EXPANSION OF IRS ACCESS TO INFORMATION IN NATIONAL
DIRECTORY OF NEW HIRES FOR TAX ADMINISTRATION
PURPOSES.

SEC. 549. DISCLOSURE OF PRISONER RETURN INFORMATION TO
FEDERAL BUREAU OF PRISONS.

(a) Disclosure.--
(1) In general.--Subsection (l) of section 6103 (relating
to disclosure of returns and return information for purposes
other than tax administration) is amended by adding at the
end the following new paragraph:
``(21) Disclosure of return information of prisoners to
federal bureau of prisons.--
``(A) In general.--Under such procedures as the Secretary
may prescribe, the Secretary may disclose return information
with respect to persons incarcerated in Federal prisons whom
the Secretary believes filed or facilitated the filing of
false or fraudulent returns to the head of the Federal Bureau
of Prisons if the Secretary determines that such disclosure
is necessary to permit effective tax administration.
``(B) Disclosure by agency to employees.--The head of the
Federal Bureau of Prisons may redisclose information received
under subparagraph (A)--
``(i) only to those officers and employees of the Bureau
who are personally and directly engaged in taking
administrative actions to address violations of
administrative rules and regulations of the prison facility,
and
``(ii) solely for the purposes described in subparagraph
(C).
``(C) Restriction on use of disclosed information.--Return
information disclosed under this paragraph may be used only
for the purposes of--
``(i) preventing the filing of false or fraudulent returns;
and
``(ii) taking administrative actions against individuals
who have filed or attempted to file false or fraudulent
returns.''.
(2) Procedures and record keeping related to disclosure.--
Subsection (p)(4) of section 6103 is amended--
(A) by striking ``(14), or (17)'' in the matter before
subparagraph (A) and inserting ``(14), (17), or (21)'', and
(B) by striking ``(9), or (16)'' in subparagraph (F)(i) and
inserting ``(9), (16), or (21)''.
(3) Evaluation by treasury inspector general for tax
administration.--Paragraph (3) of section 7803(d) is amended
by striking ``and'' at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and
inserting ``; and'', and by adding at the end the following
new subparagraph:
``(C) not later than 3 years after the date of the
enactment of section 6103(l)(21), submit a written report to
Congress on the implementation of such section.''.
(b) Annual Reports.--
(1) In general.--The Secretary of the Treasury shall submit
to Congress and make publicly available an annual report on
the filing of false and fraudulent returns by individuals
incarcerated in Federal and State prisons.
(2) Contents of report.--The report submitted under
paragraph (1) shall contain statistics on the number of false
or fraudulent returns associated with each Federal and State
prison and such other information that the Secretary
determines is appropriate.
(3) Exchange of information.--For the purpose of gathering
information necessary for the reports required under
paragraph (1), the Secretary of the Treasury shall enter into
agreements with the head of the Federal Bureau of Prisons and
the heads of State agencies charged with responsibility for
administration of State prisons under which the head of the
Bureau or Agency provides to the Secretary not less
frequently than annually the names and other identifying
information of prisoners incarcerated at each facility
administered by the Bureau or Agency.
(c) Effective Date.--The amendments made by this section
shall apply to disclosures on or after January 1, 2008.

SEC. 550. UNDERSTATEMENT OF TAXPAYER LIABILITY BY RETURN
PREPARERS.

[[Page 7852]]

(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 RETRUN PREPARERS'' in the
heading and inserting ``TAX RETRUN 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 RETRUN PREPARERS'' in the
heading and inserting ``TAX RETRUN 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. 551. PENALTY FOR FILING ERRONEOUS REFUND CLAIMS.

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

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

SEC. 552. SUSPENSION OF CERTAIN PENALTIES AND INTEREST.

(a) In General.--Paragraphs (1)(A) and (3)(A) of section
6404(g) are each amended by striking ``18-month period'' and
inserting ``36-month period''.
(b) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to notices
provided by the Secretary of the Treasury, or his delegate
after the date which is 6 months after the date of the
enactment of this Act.
(2) Exception for certain taxpayers.--The amendments made
by this section shall not apply to any taxpayer with respect
to whom a suspension of any interest, penalty, addition to
tax, or other amount is in effect on the date which is 6
months after the date of the enactment of this Act.

SEC. 553. ADDITIONAL REASONS FOR SECRETARY TO TERMINATE
INSTALLMENT AGREEMENTS.

SEC. 554. OFFICE OF CHIEF COUNSEL REVIEW OF OFFERS-IN-
COMPROMISE.

SEC. 555. AUTHORIZATION FOR FINANCIAL MANAGEMENT SERVICE
RETENTION OF TRANSACTION FEES FROM LEVIED
AMOUNTS.

[[Page 7853]]

``(A) shall be treated as an expense under section 6341,
``(B) may be collected through a levy under this
subsection, and
``(C) shall be in addition to the amount of tax liability
with respect to which such levy was approved.''.
(b) Retention of Fees by Financial Management Service.--The
Financial Management Service may retain the amount of any
transaction fee imposed under section 6331(h)(4) of the
Internal Revenue Code of 1986. Any amount retained by the
Financial Management Service under that section shall be
deposited into the account of the Department of the Treasury
under section 3711(g)(7) of title 31, United States Code.
(c) Effective Date.--The amendment made by this section
shall apply to amounts levied after the date of the enactment
of this Act.

SEC. 556. AUTHORITY FOR UNDERCOVER OPERATIONS.

Paragraph (6) of section 7608(c) (relating to application
of section) is amended by striking ``2007'' both places it
appears and inserting ``2008''.

SEC. 557. INCREASE IN PENALTY EXCISE TAXES ON THE POLITICAL
AND EXCESS LOBBYING ACTIVITIES OF SECTION
501(C)(3) ORGANIZATIONS.

SEC. 558. INCREASED PENALTY FOR FAILURE TO FILE FOR EXEMPT
ORGANIZATIONS.

SEC. 559. PENALTIES FOR FAILURE TO FILE CERTAIN RETURNS
ELECTRONICALLY.

``SEC. 6652A. FAILURE TO FILE CERTAIN RETURNS ELECTRONICALLY.

``(I) $50,000, plus
``(II) $1,000 for each day during which such failure
continues (twice such amount for each day such failure
continues after the first such 60 days), and

``(I) $250,000, plus
``(II) $2,500 for each day during which such failure
continues (twice such amount for each day such failure
continues after the first such 60 days), and

``(ii) the maximum amount under clause (i)(II) on failures
with respect to any 1 return shall not exceed $250,000.
``(C) Exception for certain returns.--Subparagraphs (A) and
(B) shall not apply to any return of tax imposed under
section 511.''.
(b) Clerical Amendment.--The table of sections for part I
of subchapter A of chapter 68 is amended by inserting after
the item relating to section 6652 the following new item:

``Sec. 6652A. Failure to file certain returns electronically.''.
(c) Effective Date.--The amendments made by this section
shall apply to returns required to be filed on or after
January 1, 2008.

PART III--GENERAL PROVISIONS

SEC. 561. ENHANCED COMPLIANCE ASSISTANCE FOR SMALL
BUSINESSES.

[[Page 7854]]

that the guide is written using sufficiently plain language
likely to be understood by affected small entities. Agencies
may prepare separate guides covering groups or classes of
similarly affected small entities and may cooperate with
associations of small entities to develop and distribute such
guides. An agency may prepare guides and apply this section
with respect to a rule or a group of related rules.
``(6) Reporting.--Not later than 1 year after the date of
enactment of the Fair Minimum Wage Act of 2007, and annually
thereafter, the head of each agency shall submit a report to
the Committee on Small Business and Entrepreneurship of the
Senate, the Committee on Small Business of the House of
Representatives, and any other committee of relevant
jurisdiction describing the status of the agency's compliance
with paragraphs (1) through (5).''.
(b) Technical and Conforming Amendment.--Section 211(3) of
the Small Business Regulatory Enforcement Fairness Act of
1996 (5 U.S.C. 601 note) is amended by inserting ``and
entitled'' after ``designated''.

SEC. 562. SMALL BUSINESS CHILD CARE GRANT PROGRAM.

[[Page 7855]]

(3) State-level activities.--The term ``State-level
activities'' includes activities at the tribal level.
(l) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section, $50,000,000 for the period of fiscal
years 2008 through 2012.
(2) Studies and administration.--With respect to the total
amount appropriated for such period in accordance with this
subsection, not more than $2,500,000 of that amount may be
used for expenditures related to conducting studies required
under, and the administration of, this section.
(m) Termination of Program.--The program established under
subsection (a) shall terminate on September 30, 2012.

SEC. 563. STUDY OF UNIVERSAL USE OF ADVANCE PAYMENT OF EARNED
INCOME CREDIT.

SEC. 564. SENSE OF THE SENATE CONCERNING PERSONAL SAVINGS.

SEC. 565. RENEWAL GRANTS FOR WOMEN'S BUSINESS CENTERS.

SEC. 566. REPORTS ON ACQUISITIONS OF ARTICLES, MATERIALS, AND
SUPPLIES MANUFACTURED OUTSIDE THE UNITED
STATES.

SEC. 567. SENSE OF THE SENATE REGARDING REPEAL OF 1993 INCOME
TAX INCREASE ON SOCIAL SECURITY BENEFITS.

SEC. 568. SENSE OF THE SENATE REGARDING PERMANENT TAX
INCENTIVES TO MAKE EDUCATION MORE AFFORDABLE
AND MORE ACCESSIBLE FOR AMERICAN FAMILIES.

It is the sense of the Senate that Congress should make
permanent the tax incentives

[[Page 7856]]

to make education more affordable and more accessible for
American families and eliminate wasteful spending, such as
spending on unnecessary tax loopholes, in order to fully
offset the cost of such incentives and avoid forcing
taxpayers to pay substantially more interest to foreign
creditors.

SEC. 569. RESPONSIBLE GOVERNMENT CONTRACTOR REQUIREMENTS.

SEC. 570. DISABILITY PREFERENCE PROGRAM FOR TAX COLLECTION
CONTRACTS.

(a) In General.--Section 6306 (relating to qualified tax
collection contracts) is amended--
(1) by striking ``Nothing'' in subsection (a) and inserting
``Except as provided in subsection (c), nothing'',
(2) by redesignating subsections (c), (d), (e), and (f) as
subsections (d), (e), (f), and (g), respectively, and
(3) by inserting after subsection (b) the following new
subsection:
``(c) Disability Preference Program for Tax Collection
Contracts.--
``(1) In general.--The Secretary shall provide a qualifying
disability preference to any program under which any
qualified tax collection contract is awarded on or after the
effective date of this subsection and shall ensure compliance
with the requirements of paragraph (3).
``(2) Qualifying disability preference.--
``(A) In general.--For purposes of this subsection, the
term `qualifying disability preference' means a preference
pursuant to which at least 10 percent (in both number and
aggregate dollar amount) of the accounts covered by qualified
tax collection contracts are awarded to persons satisfying
the following criteria:
``(i) Such person employs within the United States at least
50 severely disabled individuals.
``(ii) Such person shall agree as an enforceable condition
of its bid for a qualified tax collection contract that
within 90 days after the date such contract is awarded, not
less than 35 percent of the employees of such person employed
in connection with providing services under such contract
shall--

``(I) be hired after the date such contract is awarded, and
``(II) be severely disabled individuals.

``(B) Determination of satisfaction of criteria.--Within 60
days after the end of the period specified in subparagraph
(A)(ii), the Secretary shall determine whether such person
has met the 35 percent requirement specified in such
subparagraph, and if such requirement has not been met, shall
terminate the contract for nonperformance. For purposes of
determining whether such 35 percent requirement has been
satisfied, severely disabled individuals providing services
under such contract shall not include any severely disabled
individuals who were counted toward satisfaction of the 50-
employee requirement specified in subparagraph (A)(i), unless
such person replaced such individuals by hiring additional
severely disabled individuals who do not perform services
under such contract.
``(3) Program-wide employment of severely disabled
individuals.--Not less than 15 percent of all individuals
hired by all persons to whom tax collection contracts are
issued by the Secretary under this section, to perform work
under such tax collection contracts, shall qualify as
severely disabled individuals.
``(4) Severely disabled individual.--For purposes of this
subsection, the term `severely disabled individual' means any
one of the following:
``(A) Any veteran of the United States Armed Forces with--
``(i) a disability determined by the Secretary of Veterans
Affairs to be service-connected, or
``(ii) a disability deemed by statute to be service-
connected.
``(B) Any individual who is a disabled beneficiary (as
defined in section 1148(k)(2) of the Social Security Act (42
U.S.C. 1320b-19(k)(2)) or who would be considered to be such
a disabled beneficiary but for having income or assets in
excess of the income or asset eligibility limits established
under title II or XVI of the Social Security Act,
respectively.''.
(b) Report by Government Accountability Office.--
(1) In general.--The Comptroller General of the United
States shall conduct a study of the effectiveness and
efficiency of the use of private contractors for Internal
Revenue Service debt collection. The study required by this
paragraph shall be completed in time to be taken into account
by Congress before any new contracting is carried out under
section 6306 of the Internal Revenue Code of 1986 in years
following 2008.
(2) Study of comparable efforts.--As part of the study
required under paragraph (1), the Comptroller General shall--
(A) make every effort to determine the relative
effectiveness and efficiency of debt collection contracting
by Federal staff compared to private contractors, using a
cost calculation for both Federal staff and private
contractors which includes all benefits and overhead costs,
(B) compare the cost effectiveness of the contracting
approach of the Department of the Treasury to that of the
Department of Education's Office of Student Financial
Assistance, and
(C) survey State tax debt collection experiences for
lessons that may be applicable to the Internal Revenue
Service collection efforts.
(c) Effective Date.--The amendments made by this section
shall apply to any tax collection contract awarded on or
after the date of the enactment of this Act.
______

SA 781. Mrs. LINCOLN (for herself, Mr. Smith, and Ms. Cantwell)
submitted an amendment intended to be proposed by her to the bill H.R.
1591, making emergency supplemental appropriations for the fiscal year
ending September 30, 2007, and for other purposes; which was ordered to
lie on the table; as follows:

At the end of title V, add the following:

[[Page 7857]]

SEC. ___. DEDUCTION FOR QUALIFIED TIMBER GAIN.

(a) In General.--Part I of subchapter P of chapter 1 is
amended by adding at the end the following new section:

``SEC. 1203. DEDUCTION FOR QUALIFIED TIMBER GAIN.

``(a) In General.--In the case of a taxpayer which elects
the application of this section for a taxable year, there
shall be allowed a deduction against gross income equal to 60
percent of the lesser of--
``(1) the taxpayer's qualified timber gain for such year,
or
``(2) the taxpayer's net capital gain for such year.
``(b) Qualified Timber Gain.--For purposes of this section,
the term `qualified timber gain' means, with respect to any
taxpayer for any taxable year, the excess (if any) of--
``(1) the sum of the taxpayer's gains described in
subsections (a) and (b) of section 631 for such year, over
``(2) the sum of the taxpayer's losses described in such
subsections for such year.
``(c) Special Rules for Pass-Thru Entities.--In the case of
any qualified timber gain of a pass-thru entity (as defined
in section 1(h)(10)), the election under this section shall
be made separately by each taxpayer subject to tax on such
gain.''.
(b) Coordination With Maximum Capital Gains Rates.--
(1) Taxpayers other than corporations.--Paragraph (2) of
section 1(h) is amended to read as follows:
``(2) Reduction of net capital gain.--For purposes of this
subsection, the net capital gain for any taxable year shall
be reduced (but not below zero) by the sum of--
``(A) the amount which the taxpayer takes into account as
investment income under section 163(d)(4)(B)(iii), and
``(B) the lesser of--
``(i) the amount described in paragraph (1) of section
1203(a), or
``(ii) the amount described in paragraph (2) of such
section.''.
(2) Corporations.--Section 1201 is amended by redesignating
subsection (b) as subsection (c) and inserting after
subsection (a) the following new subsection:
``(b) Qualified Timber Gain Not Taken Into Account.--For
purposes of this section, in the case of a corporation with
respect to which an election is in effect under section 1203,
the net capital gain for any taxable year shall be reduced
(but not below zero) by the corporation's qualified timber
gain (as defined in section 1203(b)).''.
(c) Deduction Allowed Whether or Not Individual Itemizes
Other Deductions.--Subsection (a) of section 62 is amended by
inserting before the last sentence the following new
paragraph:
``(21) Qualified timber gains.--The deduction allowed by
section 1203.''.
(d) Deduction Allowed in Computing Adjusted Current
Earnings.--Subparagraph (C) of section 56(g)(4) is amended by
adding at the end the following new clause:
``(vii) Deduction for qualified timber gain.--Clause (i)
shall not apply to any deduction allowed under section
1203.''.
(e) Deduction Allowed in Computing Taxable Income of
Electing Small Business Trusts.--Subparagraph (C) of section
641(c)(2) is amended by inserting after clause (iii) the
following new clause:
``(iv) The deduction allowed under section 1203.''.
(f) Conforming Amendments.--
(1) Subparagraph (B) of section 172(d)(2) is amended to
read as follows:
``(B) the exclusion under section 1202 and the deduction
under section 1203 shall not be allowed.''.
(2) Paragraph (4) of section 642(c) is amended by striking
the first sentence and inserting the following: ``To the
extent that the amount otherwise allowable as a deduction
under this subsection consists of gain described in section
1202(a) or qualified timber gain (as defined in section
1203(b)), proper adjustment shall be made for any exclusion
allowable to the estate or trust under section 1202 and for
any deduction allowable to the estate or trust under section
1203.''
(3) Paragraph (3) of section 643(a) is amended by striking
the last sentence and inserting the following: ``The
exclusion under section 1202 and the deduction under section
1203 shall not be taken into account.''
(4) Subparagraph (C) of section 643(a)(6) is amended to
read as follows:
``(C) Paragraph (3) shall not apply to a foreign trust. In
the case of such a trust--
``(i) there shall be included gains from the sale or
exchange of capital assets, reduced by losses from such sales
or exchanges to the extent such losses do not exceed gains
from such sales or exchanges, and
``(ii) the deduction under section 1203 shall not be taken
into account.''.
(5) Paragraph (4) of section 691(c) is amended by inserting
``1203,'' after ``1202,''.
(6) Paragraph (2) of section 871(a) is amended by inserting
``and 1203'' after ``section 1202''.
(7) The table of sections for part I of subchapter P of
chapter 1 is amended by adding at the end the following new
item:

``Sec. 1203. Deduction for qualified timber gain.''.

(g) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment
of this Act and before January 1, 2009.
(2) Taxable years which include date of enactment.--In the
case of any taxable year which includes the date of the
enactment of this Act, for purposes of the Internal Revenue
Code of 1986, the taxpayer's qualified timber gain shall not
exceed the excess that would be described in section 1203(b)
of such Code, as added by this section, if only dispositions
of timber after such date were taken into account.
______

SA 782. Mrs. LINCOLN submitted an amendment intended to be proposed
by her to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

At the end of title V, add the following:

SEC. ___. SPECIAL PERIOD OF LIMITATION WHEN UNIFORMED
SERVICES RETIRED PAY IS REDUCED AS A RESULT OF
AWARD OF DISABILITY COMPENSATION.

(a) In General.--Subsection (d) of section 6511 (relating
to special rules applicable to income taxes) is amended by
adding at the end the following new paragraph:
``(8) Special rules when uniformed services retired pay is
reduced as a result of award of disability compensation.--
``(A) Period of limitation on filing claim.--If the claim
for credit or refund relates to an overpayment of tax imposed
by subtitle A on account of--
``(i) the reduction of uniformed services retired pay
computed under section 1406 or 1407 of title 10, United
States Code, or
``(ii) the waiver of such pay under section 5305 of title
38 of such Code,
as a result of an award of compensation under title 38 of
such Code pursuant to a determination by the Secretary of
Veterans Affairs, the 3-year period of limitation prescribed
in subsection (a) shall be extended, for purposes of
permitting a credit or refund based upon the amount of such
reduction or waiver, until the end of the 1-year period
beginning on the date of such determination.
``(B) Limitation to 5 taxable years.--Subparagraph (A)
shall not apply with respect to any taxable year which began
more than 5 years before the date of such determination.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to claims for credit or refund filed after the
date of the enactment of this Act.
(c) Transition Rules.--In the case of a determination
described in paragraph (8) of section 6511(d) of the Internal
Revenue Code of 1986 (as added by this section) which is made
by the Secretary of Veterans Affairs after December 31, 2000,
and before the date of the enactment of this Act, such
paragraph--
(1) shall not apply with respect to any taxable year which
began before January 1, 2001, and
(2) shall be applied by substituting ``the date of the
enactment of this paragraph'' for ``the date of such
determination'' in subparagraph (A) thereof.
(d) Penalty for Filing Erroneous Refund Claims.--
(1) In general.--Part I of subchapter B of chapter 68
(relating to assessable penalties) is amended by inserting
after section 6675 the following new section:

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

``(a) Civil Penalty.--If a claim for refund or credit with
respect to income tax (other than a claim for a refund or
credit relating to the earned income credit under section 32)
is made for an excessive amount, unless it is shown that the
claim for such excessive amount has a reasonable basis, the
person making such claim shall be liable for a penalty in an
amount equal to 20 percent of the excessive amount.
``(b) Excessive Amount.--For purposes of this section, the
term `excessive amount' means in the case of any person the
amount by which the amount of the claim for refund or credit
for any taxable year exceeds the amount of such claim
allowable under this title for such taxable year.
``(c) Coordination With Other Penalties.--This section
shall not apply to any portion of the excessive amount of a
claim for refund or credit on which a penalty is imposed
under part II of subchapter A of chapter 68.''.
(2) Conforming amendment.--The table of sections for part I
of subchapter B of chapter 68 is amended by inserting after
the item relating to section 6675 the following new item:

``Sec. 6676. Erroneous claim for refund or credit.''.

(3) Effective date.--The amendments made by this subsection
shall apply to any return filed on or after January 1, 2008.

______

SA 783. Mr. DORGAN submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

[[Page 7858]]

On Page 62, line 18, insert the following before the
period:
Provided further, That the Secretary of the Army, acting
through the Chief of Engineers, is provided an additional
$3,000,000 under this heading to rehabilitate the flood
damage project for Marmarth, North Dakota, to Federal levee
standards: Provided further, That the amount provided under
this heading is designated as an emergency requirement
pursuant to section 402 of H. Con. Res. 95 (109th Congress).
______

SA 784. Mr. DURBIN (for himself, Mr. Biden, Mr. Menendez, Mr. Levin,
and Mr. Cardin) submitted an amendment intended to be proposed by him
to the bill H.R. 1591, making emergency supplemental appropriations for
the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 44, beginning on line 16, strike ``$323,000,000''
and all that follows through ``$128,000,000'' on line 17 and
insert the following: ``$373,000,000, to remain available
until September 30, 2008, of which up to $178,000,000''.

______

SA 785. Mr. DURBIN (for himself, Mrs. Boxer, and Mr. Brown) submitted
an amendment intended to be proposed by him to the bill H.R. 1591,
making emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

Beginning on page 37, line 25, strike ``$161,000,000'' and
all that follows through page 38, line 7, and insert the
following: ``$211,000,000, to remain available until
September 30, 2008: Provided, That notwithstanding any other
provision of law, funds made available under the heading
`Millennium Challenge Corporation' and `Global HIV/AIDS
Initiative' in prior Acts making appropriations for foreign
operations, export financing and related programs may be made
available to combat the avian influenza, subject to the
regular notification procedures of the Committees on
Appropriations: Provided further, That of the funds
appropriated under this heading, $50,000,000 shall be made
available to combat the spread of multidrug resistant
tuberculosis (MDR-TB) and extremely or extensively drug
resistant tuberculosis (XDR-TB) in sub-Saharan Africa.''.

______

SA 786. Mr. BINGAMAN (for himself and Mrs. Hutchison) submitted an
amendment intended to be proposed by him to the bill H.R. 1591, making
emergency supplemental appropriations for the fiscal year ending
September 30, 2007, and for other purposes; which was ordered to lie on
the table; as follows:

On page 14, line 21, strike beginning with ``to'' through
``Asia:'' on line 24 and insert ``, to remain available until
expended of which $20,000,000 shall be for the National Guard
Counterdrug Support Program to be allocated to States based
on the most immediate drug threats: Provided, That the
remainder of these funds may be used only for such activities
related to Afghanistan and Central Asia:''.

______

SA 787. Mr. LEVIN (for himself, Ms. Stabenow, and Mr. Durbin)
submitted an amendment intended to be proposed by him to the bill H.R.
1591, making emergency supplemental appropriations for the fiscal year
ending September 30, 2007, and for other purposes; which was ordered to
lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. EMERALD ASH BORER.

The Secretary shall use $15,000,000 of funds of the
Commodity Credit Corporation to carry out activities for the
eradication of the emerald ash borer in the States of
Michigan, Ohio, Indiana, Illinois and Maryland.
______

SA 788. Mr. GREGG submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 11, strike line 1 and all that follows through page
155, line 15, and insert the following:

Other Procurement, Army

For an additional amount for ``Other Procurement, Army'',
$12,588,272,000, to remain available until September 30,
2009.

Aircraft Procurement, Navy

For an additional amount for ``Aircraft Procurement,
Navy'', $963,903,000, to remain available until September 30,
2009.

Weapons Procurement, Navy

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

Procurement of Ammunition, Navy and Marine Corps

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

Other Procurement, Navy

For an additional amount for ``Other Procurement, Navy'',
$722,506,000, to remain available until September 30, 2009.

Procurement, Marine Corps

For an additional amount for ``Procurement, Marine Corps'',
$3,896,389,000, to remain available until September 30, 2009.

Aircraft Procurement, Air Force

For an additional amount for ``Aircraft Procurement, Air
Force'', $1,431,756,000, to remain available until September
30, 2009.

Missile Procurement, Air Force

For an additional amount for ``Missile Procurement, Air
Force'', $78,900,000, to remain available until September 30,
2009.

Procurement of Ammunition, Air Force

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

Other Procurement, Air Force

For an additional amount for ``Other Procurement, Air
Force'', $1,972,131,000, to remain available until September
30, 2009.

Procurement, Defense-Wide

For an additional amount for ``Procurement, Defense-Wide'',
$903,092,000, to remain available until September 30, 2009.

National Guard and Reserve Equipment

For an additional amount for ``National Guard and Reserve
Equipment'', $1,000,000,000, to remain available until
September 30, 2009.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION

Research, Development, Test and Evaluation, Army

For an additional amount for ``Research, Development, Test
and Evaluation, Army'', $125,576,000, to remain available
until September 30, 2008.

Research, Development, Test and Evaluation, Navy

For an additional amount for ``Research, Development, Test
and Evaluation, Navy'', $308,212,000, to remain available
until September 30, 2008.

Research, Development, Test and Evaluation, Air Force

For an additional amount for ``Research, Development, Test
and Evaluation, Air Force'', $233,869,000, to remain
available until September 30, 2008.

Research, Development, Test and Evaluation, Defense-Wide

For an additional amount for ``Research, Development, Test
and Evaluation, Defense-Wide'', $522,804,000, to remain
available until September 30, 2008.

REVOLVING AND MANAGEMENT FUNDS

National Defense Sealift Fund

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

Defense Working Capital Funds

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

OTHER DEPARTMENT OF DEFENSE PROGRAMS

Defense Health Program

For an additional amount for ``Defense Health Program'',
$2,466,847,000; of which $2,277,147,000 shall be for
operation and maintenance; of which $118,000,000, to remain
available for obligation until September 30, 2009, shall be
for Procurement; and of which $71,700,000, to remain
available for obligation until September 30, 2008, shall be
for Research, development, test and evaluation.

Drug Interdiction and Counter-Drug Activities, Defense

(including transfer of funds)

For an additional amount for ``Drug Interdiction and
Counter-Drug Activities, Defense'', $254,665,000, to remain
available until expended: Provided, That these funds may be
used only for such activities related to Afghanistan and
Central Asia: Provided further, That the Secretary of Defense
may transfer such funds only to appropriations for military
personnel; operation and maintenance; procurement; and
research, development, test and evaluation: Provided further,
That the funds transferred shall be merged with and be
available for the same purposes and for the same time period
as the appropriation to which transferred: Provided further,
That the transfer authority provided in this paragraph is in
addition to any other transfer authority available to the
Department of Defense: Provided further, That upon a
determination that all or part of the funds transferred from
this appropriation are not necessary for the purposes
provided herein, such amounts may be transferred back to this
appropriation.

RELATED AGENCY

Intelligence Community Management Account

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

GENERAL PROVISIONS--THIS CHAPTER

Sec. 1301. Appropriations provided in this chapter are
available for obligation until

[[Page 7859]]

September 30, 2007, unless otherwise provided in this
chapter.

(transfer of funds)

Sec. 1302. Upon his determination that such action is
necessary in the national interest, the Secretary of Defense
may transfer between appropriations up to $3,500,000,000 of
the funds made available to the Department of Defense in this
title: Provided, That the Secretary shall notify the Congress
promptly of each transfer made pursuant to the authority in
this section: Provided further, That the authority provided
in this section is in addition to any other transfer
authority available to the Department of Defense and is
subject to the same terms and conditions as the authority
provided in section 8005 of the Department of Defense
Appropriations Act, 2007 (Public Law 109-289; 120 Stat.
1257), except for the fourth proviso: Provided further, That
funds previously transferred to the ``Joint Improvised
Explosive Device Defeat Fund'' and the ``Iraq Security Forces
Fund'' under the authority of section 8005 of Public Law 109-
289 and transferred back to their source appropriations
accounts shall not be taken into account for purposes of the
limitation on the amount of funds that may be transferred
under section 8005.
Sec. 1303. Funds appropriated in this chapter, or made
available by the transfer of funds in or pursuant to this
chapter, for intelligence activities are deemed to be
specifically authorized by the Congress for purposes of
section 504(a)(1) of the National Security Act of 1947 (50
U.S.C. 414(a)(1)).
Sec. 1304. None of the funds provided in this chapter may
be used to finance programs or activities denied by Congress
in fiscal years 2006 or 2007 appropriations to the Department
of Defense or to initiate a procurement or research,
development, test and evaluation new start program without
prior written notification to the congressional defense
committees.
Sec. 1305. During fiscal year 2007, the Secretary of
Defense may transfer not to exceed $6,300,000 of the amounts
in or credited to the Defense Cooperation Account, pursuant
to 10 U.S.C. 2608, to such appropriations or funds of the
Department of Defense as he shall determine for use
consistent with the purposes for which such funds were
contributed and accepted: Provided, That such amounts shall
be available for the same time period as the appropriation to
which transferred: Provided further, That the Secretary shall
report to the Congress all transfers made pursuant to this
authority.
Sec. 1306. (a) Authority to Provide Support.--Of the amount
appropriated by this title under the heading, ``Drug
Interdiction and Counter-Drug Activities, Defense'', not to
exceed $60,000,000 may be used for support for counter-drug
activities of the Governments of Afghanistan, Kazakhstan, and
Pakistan: Provided, That such support shall be in addition to
support provided for the counter-drug activities of such
Governments under any other provision of the law.
(b) Types of Support.--
(1) Except as specified in subsection (b)(2) of this
section, the support that may be provided under the authority
in this section shall be limited to the types of support
specified in section 1033(c)(1) of the National Defense
Authorization Act for Fiscal Year 1998 (Public Law 105-85, as
amended by Public Laws 106-398, 108-136, and 109-364) and
conditions on the provision of support as contained in
section 1033 shall apply for fiscal year 2007.
(2) The Secretary of Defense may transfer vehicles,
aircraft, and detection, interception, monitoring and testing
equipment to said Governments for counter-drug activities.
Sec. 1307. (a) From funds made available for operations and
maintenance in this title to the Department of Defense, not
to exceed $456,400,000 may be used, notwithstanding any other
provision of law, to fund the Commander's Emergency Response
Program, for the purpose of enabling military commanders in
Iraq and Afghanistan to respond to urgent humanitarian relief
and reconstruction requirements within their areas of
responsibility by carrying out programs that will immediately
assist the Iraqi and Afghan people.
(b) Quarterly Reports.--Not later than 15 days after the
end of each fiscal year quarter, the Secretary of Defense
shall submit to the congressional defense committees a report
regarding the source of funds and the allocation and use of
funds during that quarter that were made available pursuant
to the authority provided in this section or under any other
provision of law for the purposes of the programs under
subsection (a).
Sec. 1308. During fiscal year 2007, supervision and
administration costs associated with projects carried out
with funds appropriated to ``Afghanistan Security Forces
Fund'' or ``Iraq Security Forces Fund'' in this chapter may
be obligated at the time a construction contract is awarded:
Provided, That for the purpose of this section, supervision
and administration costs include all in-house Government
costs.
Sec. 1309. Section 1005(c)(2) of the National Defense
Authorization Act, Fiscal Year 2007 (Public Law 109-364) is
amended by striking ``$310,277,000'' and inserting
``$376,446,000''.
Sec. 1310. None of the funds appropriated or otherwise made
available by this or any other Act shall be obligated or
expended by the United States Government for a purpose as
follows:
(1) To establish any military installation or base for the
purpose of providing for the permanent stationing of United
States Armed Forces in Iraq.
(2) To exercise United States control over any oil resource
of Iraq.
Sec. 1311. None of the funds made available in this Act may
be used in contravention of the following laws enacted or
regulations promulgated to implement the United Nations
Convention Against Torture and Other Cruel, Inhuman or
Degrading Treatment or Punishment (done at New York on
December 10, 1984):
(1) Section 2340A of title 18, United States Code;
(2) Section 2242 of the Foreign Affairs Reform and
Restructuring Act of 1998 (division G of Public Law 105-277;
112 Stat. 2681-822; 8 U.S.C. 1231 note) and regulations
prescribed thereto, including regulations under part 208 of
title 8, Code of Federal Regulations, and part 95 of title
22, Code of Federal Regulations; and
(3) Sections 1002 and 1003 of the Department of Defense,
Emergency Supplemental Appropriations to Address Hurricanes
in the Gulf of Mexico, and Pandemic Influenza Act, 2006
(Public Law 109-148).
Sec. 1312. Section 9007 of Public Law 109-289 is amended by
striking ``20'' and inserting ``287''.
Sec. 1313. Inspection of Military Medical Treatment
Facilities, Military Quarters Housing Medical Hold Personnel,
and Military Quarters Housing Medical Holdover Personnel.l
(a) Periodic Inspection Required.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and annually thereafter, the
Secretary of Defense shall inspect each facility of the
Department of Defense as follows:
(A) Each military medical treatment facility.
(B) Each military quarters housing medical hold personnel.
(C) Each military quarters housing medical holdover
personnel.
(2) Purpose.--The purpose of an inspection under this
subsection is to ensure that the facility or quarters
concerned meets acceptable standards for the maintenance and
operation of medical facilities, quarters housing medical
hold personnel, or quarters housing medical holdover
personnel, as applicable.
(b) Acceptable Standards.--For purposes of this section,
acceptable standards for the operation and maintenance of
military medical treatment facilities, military quarters
housing medical hold personnel, or military quarters housing
medical holdover personnel are each of the following:
(1) Generally accepted standards for the accreditation of
non-military medical facilities, or for facilities used to
quarter individuals with medical conditions that may require
medical supervision, as applicable, in the United States.
(2) Standards under the Americans with Disabilities Act of
1990 (42 U.S.C. 12101 et seq.).
(c) Additional Inspections on Identified Deficiencies.--
(1) In general.--In the event a deficiency is identified
pursuant to subsection (a) at a facility or quarters
described in paragraph (1) of that subsection--
(A) the commander of such facility or quarters, as
applicable, shall submit to the Secretary a detailed plan to
correct the deficiency; and
(B) the Secretary shall reinspect such facility or
quarters, as applicable, not less often than once every 180
days until the deficiency is corrected.
(2) Construction with other inspections.--An inspection of
a facility or quarters under this subsection is in addition
to any inspection of such facility or quarters under
subsection (a).
(d) Reports on Inspections.--A complete copy of the report
on each inspection conducted under subsections (a) and (c)
shall be submitted in unclassified form to the applicable
military medical command and to the congressional defense
committees.
(e) Report on Standards.--In the event no standards for the
maintenance and operation of military medical treatment
facilities, military quarters housing medical hold personnel,
or military quarters housing medical holdover personnel exist
as of the date of the enactment of this Act, or such
standards as do exist do not meet acceptable standards for
the maintenance and operation of such facilities or quarters,
as the case may be, the Secretary shall, not later than 30
days after that date, submit to Congress a report setting
forth the plan of the Secretary to ensure--
(1) the adoption by the Department of standards for the
maintenance and operation of military medical facilities,
military quarters housing medical hold personnel, or military
quarters housing medical holdover personnel, as applicable,
that meet--
(A) acceptable standards for the maintenance and operation
of such facilities or quarters, as the case may be; and
(B) standards under the Americans with Disabilities Act of
1990; and
(2) the comprehensive implementation of the standards
adopted under paragraph (1) at the earliest date practicable.

[[Page 7860]]

Sec. 1314. From funds made available for the ``Iraq
Security Forces Fund'' for fiscal year 2007, up to
$155,500,000 may be used, notwithstanding any other provision
of law, to provide assistance, with the concurrence of the
Secretary of State, to the Government of Iraq to support the
disarmament, demobilization, and reintegration of militias
and illegal armed groups.
Sec. 1315. Revision of United States Policy on Iraq. (a)
Findings.--Congress makes the following findings:
(1) Congress and the American people will continue to
support and protect the members of the United States Armed
Forces who are serving or have served bravely and honorably
in Iraq.
(2) The circumstances referred to in the Authorization for
Use of Military Force Against Iraq Resolution of 2002 (Public
Law 107-243) have changed substantially.
(3) United States troops should not be policing a civil
war, and the current conflict in Iraq requires principally a
political solution.
(4) United States policy on Iraq must change to emphasize
the need for a political solution by Iraqi leaders in order
to maximize the chances of success and to more effectively
fight the war on terror.
(b) Prompt Commencement of Phased Redeployment of United
States Forces From Iraq.--
(1) Transition of mission.--The President shall promptly
transition the mission of United States forces in Iraq to the
limited purposes set forth in paragraph (2).
(2) Commencement of phased redeployment from iraq.--The
President shall commence the phased redeployment of United
States forces from Iraq not later than 120 days after the
date of the enactment of this Act, with the goal of
redeploying, by March 31, 2008, all United States combat
forces from Iraq except for a limited number that are
essential for the following purposes:
(A) Protecting United States and coalition personnel and
infrastructure.
(B) Training and equipping Iraqi forces.
(C) Conducting targeted counter-terrorism operations.
(3) Comprehensive strategy.--Paragraph (2) shall be
implemented as part of a comprehensive diplomatic, political,
and economic strategy that includes sustained engagement with
Iraq's neighbors and the international community for the
purpose of working collectively to bring stability to Iraq.
(4) Reports required.--Not later than 60 days after the
date of the enactment of this Act, and every 90 days
thereafter, the President shall submit to Congress a report
on the progress made in transitioning the mission of the
United States forces in Iraq and implementing the phased
redeployment of United States forces from Iraq as required
under this subsection, as well as a classified campaign plan
for Iraq, including strategic and operational benchmarks and
projected redeployment dates of United States forces from
Iraq.
(c) Benchmarks for the Government of Iraq.--
(1) Sense of congress.--It is the sense of Congress that--
(A) achieving success in Iraq is dependent on the
Government of Iraq meeting specific benchmarks, as reflected
in previous commitments made by the Government of Iraq,
including--
(i) deploying trained and ready Iraqi security forces in
Baghdad;
(ii) strengthening the authority of Iraqi commanders to
make tactical and operational decisions without political
intervention;
(iii) disarming militias and ensuring that Iraqi security
forces are accountable only to the central government and
loyal to the constitution of Iraq;
(iv) enacting and implementing legislation to ensure that
the energy resources of Iraq benefit all Iraqi citizens in an
equitable manner;
(v) enacting and implementing legislation that equitably
reforms the de-Ba'athification process in Iraq;
(vi) ensuring a fair process for amending the constitution
of Iraq so as to protect minority rights; and
(vii) enacting and implementing rules to equitably protect
the rights of minority political parties in the Iraqi
Parliament; and
(B) each benchmark set forth in subparagraph (A) should be
completed expeditiously and pursuant to a schedule
established by the Government of Iraq.
(2) Report.--Not later than 30 days after the date of the
enactment of this Act, and every 60 days thereafter, the
Commander, Multi-National Forces-Iraq shall submit to
Congress a report describing and assessing in detail the
current progress being made by the Government of Iraq in
meeting the benchmarks set forth in paragraph (1)(A).

CHAPTER 4

DEPARTMENT OF ENERGY

ATOMIC ENERGY DEFENSE ACTIVITIES

National Nuclear Security Administration

Defense Nuclear Nonproliferation

For an additional amount for ``Defense Nuclear
Nonproliferation'', $63,000,000.

CHAPTER 5

DEPARTMENT OF HOMELAND SECURITY

United States Customs and Border Protection

Salaries and Expenses

For an additional amount for ``Salaries and Expenses'',
$140,000,000, to remain available until September 30, 2008.

Air and Marine Interdiction, Operations, Maintenance, and Procurement

For an additional amount for ``Air and Marine Interdiction,
Operations, Maintenance, and Procurement'', for air and
marine operations on the Northern Border and the Great Lakes,
including the final Northern Border air wing, $75,000,000, to
remain available until September 30, 2008.

Immigration and Customs Enforcement

Salaries and Expenses

For an additional amount for ``Salaries and Expenses'',
$20,000,000, to remain available until September 30, 2008.

Transportation Security Administration

Aviation Security

For an additional amount for ``Aviation Security'',
$660,000,000; of which $600,000,000 shall be for procurement
and installation of checked baggage explosives detection
systems, to remain available until expended; and $60,000,000
shall be for air cargo security, to remain available until
September 30, 2008.

Federal Air Marshals

For an additional amount for ``Federal Air Marshals'',
$15,000,000, to remain available until September 30, 2008.

Preparedness

management and administration

For an additional amount for ``Office of the Chief Medical
Officer'' for nuclear preparedness and other activities,
$18,000,000, to remain available until September 30, 2008.

Infrastructure Protection and Information Security

For an additional amount for ``Infrastructure Protection
and Information Security'' for chemical site security
activities, $18,000,000, to remain available until September
30, 2008.

Federal Emergency Management Agency

Administrative and Regional Operations

For an additional amount for ``Administrative and Regional
Operations'' for necessary expenses related to title V of the
Homeland Security Act of 2002 (6 U.S.C. 101 et seq. (as
amended by section 611 of the Post-Katrina Emergency
Management Reform Act of 2006 (6 U.S.C. 701 note; Public Law
109-295))), $20,000,000, to remain available until September
30, 2008: Provided, That none of the funds available under
this heading may be obligated until the Committees on
Appropriations of the Senate and the House of Representatives
receive and approve a plan for expenditure.

State and Local Programs

For an additional amount for ``State and Local Programs'',
$850,000,000; of which $190,000,000 shall be for port
security pursuant to section 70107(l) of title 46 United
States Code; $625,000,000 shall be for intercity rail
passenger transportation, freight rail, and transit security
grants; and $35,000,000 shall be for regional grants and
technical assistance to high risk urban areas for
catastrophic event planning and preparedness: Provided, That
none of the funds made available under this heading may be
obligated for such regional grants and technical assistance
until the Committees on Appropriations of the Senate and the
House of Representatives receive and approve a plan for
expenditure: Provided further, That funds for such regional
grants and technical assistance shall remain available until
September 30, 2008.

Emergency Management Performance Grants

For an additional amount for ``Emergency Management
Performance Grants'' for necessary expenses related to the
Nationwide Plan Review, $100,000,000.

United States Citizenship and Immigration Services

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

Science and Technology

Research, Development, Acquisition, and Operations

For an additional amount for ``Research, Development,
Acquisition, and Operations'' for air cargo research,
$15,000,000, to remain available until expended.

[[Page 7861]]

Domestic Nuclear Detection Office

Research, Development, and Operations

For an additional amount for ``Research, Development, and
Operations'' for non-container, rail, aviation and intermodal
radiation detection activities, $39,000,000, to remain
available until expended.

GENERAL PROVISIONS--THIS CHAPTER

Sec. 1501. None of the funds provided in this Act, or
Public Law 109-295, shall be available to carry out section
872 of Public Law 107-296.
Sec. 1502. Section 550 of the Department of Homeland
Security Appropriations Act, 2007 (6 U.S.C. 121 note) is
amended by adding at the end the following:
``(h) This section shall not preclude or deny any right of
any State or political subdivision thereof to adopt or
enforce any regulation, requirement, or standard of
performance with respect to chemical facility security that
is more stringent than a regulation, requirement, or standard
of performance issued under this section, or otherwise impair
any right or jurisdiction of any State with respect to
chemical facilities within that State, unless there is an
actual conflict between this section and the law of that
State.''.

CHAPTER 6

MILITARY CONSTRUCTION

Military Construction, Army

For an additional amount for ``Military Construction,
Army'', $1,261,390,000, to remain available until September
30, 2008: Provided, That such funds may be obligated and
expended to carry out planning and design and military
construction projects not otherwise authorized by law:
Provided further, That of the funds provided under this
heading, $280,300,000 shall not be obligated or expended
until the Secretary of Defense certifies that none of the
funds are to be used for the purpose of providing facilities
for the permanent basing of U.S. military personnel in Iraq.

Military Construction, Navy and Marine Corps

For an additional amount for ``Military Construction, Navy
and Marine Corps'', $347,890,000, to remain available until
September 30, 2008: Provided, That such funds may be
obligated and expended to carry out planning and design and
military construction projects not otherwise authorized by
law.

Military Construction, Air Force

For an additional amount for ``Military Construction, Air
Force'', $34,700,000, to remain available until September 30,
2008: Provided, That such funds may be obligated and expended
to carry out planning and design and military construction
projects not otherwise authorized by law.

CHAPTER 7

DEPARTMENT OF STATE AND RELATED AGENCY

DEPARTMENT OF STATE

Administration of Foreign Affairs

Diplomatic and Consular Programs

For an additional amount for ``Diplomatic and Consular
Programs'', $815,796,000, to remain available until September
30, 2008, of which $70,000,000 for World Wide Security
Upgrades is available until expended: Provided, That of the
funds appropriated under this heading, not more than
$20,000,000 shall be made available for public diplomacy
programs: Provided further, That prior to the obligation of
funds pursuant to the previous proviso, the Secretary of
State shall submit a report to the Committees on
Appropriations describing a comprehensive public diplomacy
strategy, with goals and expected results, for fiscal years
2007 and 2008: Provided further, That within 15 days of
enactment of this Act, the Office of Management and Budget
shall apportion $15,000,000 from amounts appropriated or
otherwise made available by chapter 8 of title II of division
B of Public Law 109-148 under the heading ``Emergencies in
the Diplomatic and Consular Service'' for emergency
evacuations: Provided further, That of the amount made
available under this heading for Iraq, not to exceed
$20,000,000 may be transferred to, and merged with, funds in
the ``Emergencies in the Diplomatic and Consular Service''
appropriations account, to be available only for emergency
evacuations and terrorism rewards.

Office of Inspector General

For an additional amount for ``Office of Inspector
General'', $36,500,000, to remain available until December
31, 2008: Provided, That of the funds appropriated under this
heading, not less than $1,500,000 shall be made available for
activities related to oversight of assistance furnished for
Iraq and Afghanistan with funds appropriated in this Act and
in prior appropriations Acts: Provided further, That
$35,000,000 of these funds shall be transferred to the
Special Inspector General for Iraq Reconstruction for
reconstruction oversight.

Educational and Cultural Exchange Programs

For an additional amount for ``Educational and Cultural
Exchange Programs'', $25,000,000, to remain available until
expended.

International Organizations

Contributions to International Organizations

For an additional amount for ``Contributions to
International Organizations'', $59,000,000, to remain
available until September 30, 2008.

Contributions for International Peacekeeping Activities

For an additional amount for ``Contributions for
International Peacekeeping Activities'', $200,000,000, to
remain available until September 30, 2008.

RELATED AGENCY

Broadcasting Board of Governors

International Broadcasting Operations

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

FOREIGN OPERATIONS

BILATERAL ECONOMIC ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

United States Agency for International Development

Child Survival and Health Programs Fund

For an additional amount for ``Child Survival and Health
Programs Fund'', $161,000,000, to remain available until
September 30, 2008: Provided, That notwithstanding any other
provision of law, funds made available under the heading
``Millennium Challenge Corporation'' and ``Global HIV/AIDS
Initiative'' in prior Acts making appropriations for foreign
operations, export financing and related programs may be made
available to combat the avian influenza, subject to the
regular notification procedures of the Committees on
Appropriations.

International Disaster and Famine Assistance

For an additional amount for ``International Disaster and
Famine Assistance'', $187,000,000, to remain available until
expended: Provided, That of the funds appropriated under this
heading, not less than $65,000,000 shall be made available
for assistance for internally displaced persons in Iraq, not
less than $18,000,000 shall be made available for emergency
shelter, fuel and other assistance for internally displaced
persons in Afghanistan, not less than $10,000,000 shall be
made available for assistance for northern Uganda, not less
than $10,000,000 shall be made available for assistance for
eastern Democratic Republic of the Congo, and not less than
$10,000,000 shall be made available for assistance for Chad.

Operating Expenses of the United States Agency for International
Development

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

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

For an additional amount for ``Operating Expenses of the
United States Agency for International Development Office of
Inspector General'', $4,000,000, to remain available until
September 30, 2008: Provided, That of the funds appropriated
under this heading, not less than $3,000,000 shall be made
available for activities related to oversight of assistance
furnished for Iraq with funds appropriated in this Act and in
prior appropriations Acts, and not less than $1,000,000 shall
be made available for activities related to oversight of
assistance furnished for Afghanistan with funds appropriated
in this Act and in prior appropriations Acts.

OTHER BILATERAL ECONOMIC ASSISTANCE

Economic Support Fund

For an additional amount for ``Economic Support Fund'',
$2,602,200,000, to remain available until September 30, 2008:
Provided, That of the funds appropriated under this heading
that are available for assistance for Iraq, not less than
$100,000,000 shall be made available to the United States
Agency for International Development for continued support
for its Community Action Program in Iraq, of which not less
than $5,000,000 shall be made available for the fund
established by section 2108 of Public Law 109-13: Provided
further, That of the funds appropriated under this heading
that are available for assistance for Afghanistan, not less
than $10,000,000 shall be made available to the United States
Agency for International Development for continued support
for its Afghan Civilian Assistance Program: Provided further,
That of the funds appropriated under this heading, not less
than $6,000,000 shall be made available for assistance for
elections, reintegration of ex-combatants, and other
assistance to support the peace process in Nepal: Provided
further, That of the funds appropriated under this heading,
not less than $3,200,000 shall be made available,
notwithstanding any other provision of law, for assistance
for Vietnam for environmental remediation of dioxin storage
sites and to support health programs in communities near
those sites: Provided further, That funds made available
pursuant to the previous proviso should be matched, to the
maximum extent possible,

[[Page 7862]]

with contributions from other governments, multilateral
organizations, and private sources: Provided further, That of
the funds made available under this heading, not less than
$6,000,000 shall be made available for typhoon reconstruction
assistance for the Philippines: Provided further, That of the
funds made available under this heading, not less than
$110,000,000 shall be made available for assistance for
Pakistan, of which not less than $5,000,000 shall be made
available for political party development and election
monitoring activities: Provided further, That of the funds
appropriated under this heading, not less than $2,000,000
shall be made available to support the peace process in
northern Uganda: Provided further, That of the funds made
available under the heading ``Economic Support Fund'' in
Public Law 109-234 for Iraq to promote democracy, rule of law
and reconciliation, $2,000,000 should be made available for
the United States Institute of Peace for programs and
activities in Afghanistan to remain available until September
30, 2008.

DEPARTMENT OF STATE

Assistance for Eastern Europe and the Baltic States

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

Democracy Fund

For an additional amount for ``Democracy Fund'',
$465,000,000, to remain available until September 30, 2008:
Provided, That of the funds appropriated under this heading,
not less than $385,000,000 shall be made available for the
Human Rights and Democracy Fund of the Bureau of Democracy,
Human Rights and Labor, Department of State, for democracy,
human rights, and rule of law programs in Iraq: Provided
further, That prior to the initial obligation of funds made
available under this heading for Iraq for the Political
Participation Fund or the National Institutions Fund, the
Secretary of State shall submit a report to the Committees on
Appropriations describing a comprehensive, long-term
strategy, with goals and expected results, for strengthening
and advancing democracy in Iraq: Provided further, That of
the funds appropriated under this heading, not less than
$5,000,000 shall be made available for media and
reconciliation programs in Somalia.

International Narcotics Control and Law Enforcement

(including rescission of funds)

For an additional amount for ``International Narcotics
Control and Law Enforcement'', $210,000,000, to remain
available until September 30, 2008.
Of the amounts made available for procurement of a maritime
patrol aircraft for the Colombian Navy under this heading in
Public Law 109-234, $13,000,000 are rescinded.

Migration and Refugee Assistance

For an additional amount for ``Migration and Refugee
Assistance'', $143,000,000, to remain available until
September 30, 2008: Provided, That of the funds appropriated
under this heading, not less than $65,000,000 shall be made
available for assistance for Iraqi refugees including not
less than $5,000,000 to rescue Iraqi scholars, and not less
than $18,000,000 shall be made available for assistance for
Afghan refugees.

United States Emergency Refugee and Migration Assistance Fund

For an additional amount for ``United States Emergency
Refugee and Migration Assistance Fund'', $55,000,000, to
remain available until expended.

Nonproliferation, Anti-terrorism, Demining and Related Programs

For an additional amount for ``Nonproliferation, Anti-
Terrorism, Demining and Related Programs'', $27,500,000, to
remain available until September 30, 2008.

DEPARTMENT OF THE TREASURY

International Affairs Technical Assistance Program

For an additional amount for ``International Affairs
Technical Assistance'', $2,750,000, to remain available until
September 30, 2008.

MILITARY ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

Foreign Military Financing Program

For an additional amount for ``Foreign Military Financing
Program'', $220,000,000, to remain available until September
30, 2008, for assistance for Lebanon.

Peacekeeping Operations

(including transfer of funds)

For an additional amount for ``Peacekeeping Operations'',
$323,000,000, to remain available until September 30, 2008,
of which up to $128,000,000 may be transferred, subject to
the regular notification procedures of the Committees on
Appropriations, to ``Contributions to International
Peacekeeping Activities'', to be made available,
notwithstanding any other provision of law, for assessed
costs of United Nations Peacekeeping Missions: Provided, That
of the funds appropriated under this heading, not less than
$45,000,000 shall be made available, notwithstanding section
660 of the Foreign Assistance Act of 1961, for assistance for
Liberia for security sector reform.

GENERAL PROVISIONS--THIS CHAPTER

authorization of funds

Sec. 1701. Funds appropriated by this title may be
obligated and expended notwithstanding section 10 of Public
Law 91-672 (22 U.S.C. 2412), section 15 of the State
Department Basic Authorities Act of 1956 (22 U.S.C. 2680),
section 313 of the Foreign Relations Authorization Act,
Fiscal Years 1994 and 1995 (22 U.S.C. 6212), and section
504(a)(1) of the National Security Act of 1947 (50 U.S.C.
414(a)(1)).

extension of availability of funds

Sec. 1702. Section 1302(a) of Public Law 109-234 is amended
by striking ``one additional year'' and inserting in lieu
thereof ``two additional years''.

EXTENSION OF OVERSIGHT AUTHORITY

Sec. 1703. Section 3001(o)(1)(B) of the Emergency
Supplemental Appropriations Act for Defense and for the
Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-
106; 117 Stat. 1238; 5 U.S.C. App., note to section 8G of
Public Law 95-452), as amended by section 1054(b) of the John
Warner National Defense Authorization Act for Fiscal Year
2007 (Public Law 109-364; 120 Stat. 2397) and section 2 of
the Iraq Reconstruction Accountability Act of 2006 (Public
Law 109-440), is amended by inserting ``or fiscal year 2007''
after ``fiscal year 2006''.

DEBT RESTRUCTURING

Sec. 1704. Amounts appropriated for fiscal year 2007 for
``Bilateral Economic Assistance--Department of the Treasury--
Debt Restructuring'' may be used to assist Liberia in
retiring its debt arrearages to the International Monetary
Fund, the International Bank for Reconstruction and
Development, and the African Development Bank.

JORDAN

(Including Transfer of Funds)

Sec. 1705. Of the funds appropriated by this Act for
assistance for Iraq under the heading ``Economic Support
Fund'' that are available to support Provincial
Reconstruction Team activities, up to $100,000,000 may be
transferred to, and merged with, funds appropriated by this
Act under the headings ``Foreign Military Financing Program''
and ``Nonproliferation, Anti-terrorism, Demining and Related
Programs'' for assistance for Jordan: Provided, That funds
transferred pursuant to this section shall be subject to the
regular notification procedures of the Committees on
Appropriations.

LEBANON

Sec. 1706. Prior to the initial obligation of funds made
available in this Act for assistance for Lebanon under the
headings ``Foreign Military Financing Program'' and
``Nonproliferation, Anti-terrorism, Demining and Related
Programs'', the Secretary of State shall certify to the
Committees on Appropriations that all practicable efforts
have been made to ensure that such assistance is not provided
to or through any individual, or private or government
entity, that advocates, plans, sponsors, engages in, or has
engaged in, terrorist activity: Provided, That this section
shall be effective notwithstanding section 534(a) of Public
Law 109-102, which is made applicable to funds appropriated
for fiscal year 2007 by the Continuing Appropriations
Resolution, 2007, as amended.

HUMAN RIGHTS AND DEMOCRACY FUND

Sec. 1707. The Assistant Secretary of State for Democracy,
Human Rights and Labor shall be responsible for all policy,
funding, and programming decisions regarding funds made
available under this Act and prior Acts making appropriations
for foreign operations, export financing and related programs
for the Human Rights and Democracy Fund of the Bureau of
Democracy, Human Rights and Labor.

INSPECTOR GENERAL OVERSIGHT OF IRAQ AND AFGHANISTAN

Sec. 1708. (a) In General.--Subject to paragraph (2), the
Inspector General of the Department of State and the
Broadcasting Board of Governors (referred to in this section
as the ``Inspector General'') may use personal services
contracts to engage citizens of the United States to
facilitate and support the Office of the Inspector General's
oversight of programs and operations related to Iraq and
Afghanistan. Individuals engaged by contract to perform such
services shall not, by virtue of such contract, be considered
to be employees of the United States Government for purposes
of any law administered by the Office of Personnel
Management. The Secretary of State may determine the
applicability to such individuals of any law administered by
the Secretary concerning the performance of such services by
such individuals.
(b) Conditions.--The authority under paragraph (1) is
subject to the following conditions:
(1) The Inspector General determines that existing
personnel resources are insufficient.
(2) The contract length for a personal services contractor,
including options, may not exceed 1 year, unless the
Inspector General makes a finding that exceptional
circumstances justify an extension of up to 2 additional
years.
(3) Not more than 20 individuals may be employed at any
time as personal services contractors under the program.

[[Page 7863]]

(c) Termination of Authority.--The authority to award
personal services contracts under this section shall
terminate on December 31, 2008. A contract entered into prior
to the termination date under this paragraph may remain in
effect until not later than December 31, 2009.
(d) Other Authorities Not Affected.--The authority under
this section is in addition to any other authority of the
Inspector General to hire personal services contractors.

FUNDING TABLES

Sec. 1709. (a) Funds provided in this Act for the following
accounts shall be made available for programs and countries
in the amounts contained in the respective tables included in
the report accompanying this Act:
``Diplomatic and Consular Programs''.
``Educational and Cultural Exchange Programs''.
``International Disaster and Famine Assistance''.
``Economic Support Fund''.
``Assistance for Eastern Europe and Baltic States''.
``Democracy Fund''.
``Migration and Refugee Assistance''.
``Nonproliferation, Anti-Terrorism, Demining and Related
Programs''.
``Peacekeeping Operations''.
(b) Any proposed increases or decreases to the amounts
contained in the tables in the accompanying report shall be
subject to the regular notification procedures of the
Committees on Appropriations and section 634A of the Foreign
Assistance Act of 1961.

BENCHMARKS FOR CERTAIN RECONSTRUCTION ASSISTANCE FOR IRAQ

Sec. 1710. (a) Benchmarks.--Notwithstanding any other
provision of law, fifty percent of the funds appropriated by
this Act for assistance for Iraq under the headings
``Economic Support Fund'' and ``International Narcotics and
Law Enforcement'' shall be withheld from obligation until the
President certifies to the Committees on Appropriations and
Foreign Relations of the Senate and the Committees on
Appropriations and Foreign Affairs of the House of
Representatives that the Government of Iraq has--
(1) enacted a broadly accepted hydro-carbon law that
equitably shares oil revenues among all Iraqis;
(2) adopted legislation necessary for the conduct of
provincial and local elections, taken steps to implement such
legislation, and set a schedule to conduct provincial and
local elections;
(3) reformed current laws governing the de-Baathification
process to allow for more equitable treatment of individuals
affected by such laws;
(4) amended the Constitution of Iraq consistent with the
principles contained in Article 137 of such constitution; and
(5) allocated and begun expenditure of $10,000,000,000 in
Iraqi revenues for reconstruction projects, including
delivery of essential services, on an equitable basis.
(b) Exemptions.--The requirement to withhold funds from
obligation pursuant to subsection (a) shall not apply with
respect to funds made available under the heading ``Economic
Support Fund'' that are administered by the United States
Agency for International Development for continued support
for the Community Action Program, assistance for civilian
victims of the military operations, and the Community
Stabilization Program in Iraq, or for programs and activities
to promote democracy, governance, human rights, and rule of
law.
(c) Report.--At the time the President certifies to the
Committees on Appropriations and Foreign Relations of the
Senate and the Committees on Appropriations and Foreign
Affairs of the House of Representatives that the Government
of Iraq has met the benchmarks described in subsection (a),
the President shall submit to such Committees a report that
contains a detailed description of the specific actions that
the Government of Iraq has taken to meet each of the
benchmarks referenced in the certification.

RELIEF FOR IRAQI, HMONG AND OTHER REFUGEES WHO DO NOT POSE A THREAT TO
THE UNITED STATES

Sec. 1711. (a) Amendment to Authority to Determine the Bar
to Admission Inapplicable.--Section 212(d)(3)(B)(i) of the
Immigration and Nationality Act (8 U.S.C. 1182(d)(3)(B)(i))
is amended to read as follows: ``The Secretary of State,
after consultation with the Attorney General and the
Secretary of Homeland Security, or the Secretary of Homeland
Security, after consultation with the Secretary of State and
the Attorney General, may determine in such Secretary's sole
unreviewable discretion that subsection (a)(3)(B) shall not
apply with respect to an alien within the scope of that
subsection, or that subsection (a)(3)(B)(vi)(III) shall not
apply to a group. Such a determination shall neither
prejudice the ability of the United States Government to
commence criminal or civil proceedings involving a
beneficiary of such a determination or any other person, nor
create any substantive or procedural right or benefit for a
beneficiary of such a determination or any other person.
Notwithstanding any other provision of law (statutory or non-
statutory), including but not limited to section 2241 of
title 28, or any other habeas corpus provision, and sections
1361 and 1651 of such title, no court shall have jurisdiction
to review such a determination or revocation except in a
proceeding for review of a final order of removal pursuant to
section 242 and only to the extent provided in section
242(a)(2)(D). The Secretary of State may not exercise the
discretion provided in this clause with respect to an alien
at any time during which the alien is the subject of pending
removal proceedings under section 1229a of title 8.''.
(b) Automatic Relief for the Hmong and Other Groups That do
Not Pose a Threat to the United States.--Section 212(a)(3)(B)
of the Immigration and Nationality Act (8 U.S.C.
1182(a)(3)(B)) is amended--
(1) in clause (vi) in the matter preceding section (I), by
striking ``As'' and inserting ``Except as provided in clause
(vii), as''; and
(2) by adding at the end the following new clause:
``(vii) Notwithstanding clause (vi), for purposes of this
section the Hmong, the Montagnards, the Karen National Union/
Karen Liberation Army (KNU/KNLA), the Chin National Front/
Chin National Army (CNF/CNA), the Chin National League for
Democracy (CNLD), the Kayan New Land Party (KNLP), the Arakan
Liberation Party (ALP), the Mustangs, the Alzados, and the
Karenni National Progressive Party shall not be considered to
be a terrorist organization on the basis of any act or event
occurring before the date of enactment of this section.
Nothing in this subsection may be construed to alter or limit
the authority of the Secretary of State and Secretary of
Homeland Security to exercise their discretionary authority
pursuant to 212(d)(3)(B)(i) (8 U.S.C. 1182(d)(3)(B)(i)).''.
(c) Duress Exception.--Section 212(a)(3)(B)(iv)(VI) of the
Immigration and Nationality Act (8 U.S.C.
1182(a)(3)(B)(iv)(VI)) is amended by adding ``other than an
act carried out under duress'' after ``act'' and before
``that the actor knows''.
(d) Technical Correction.--Section 212(a)(3)(B)(ii) of the
Immigration and Nationality Act (8 U.S.C. 1182(a)(3)(B)(ii))
is amended by striking ``Subclause (VII)'' and inserting
``Subclause (IX)''.
(e) Regulations.--Section 212(d)(3)(B) of the Immigration
and Nationality Act (8 U.S.C. 1182(d)(3)(B)) is amended by
adding the following subsection:
``(iii) Not later than 180 days after the date of enactment
of this Act, the Secretary of the Department of Homeland
Security and Secretary of State shall each publish in the
Federal Register regulations establishing the process by
which the eligibility of a refugee, asylum seeker, or
individual seeking to adjust his immigration status is
considered eligible for any of the exceptions authorized by
clause (i), including a timeline for issuing a
determination.''.
(f) Effective Date.--The amendments made by this section
shall take effect on the date of enactment of this section,
and these amendments and sections 212(a)(3)(B) and
212(d)(3)(B) of the Immigration and Nationality Act (8 U.S.C.
1182(a)(3)(B) and 1182(d)(3)(B)), as amended by these
sections, shall apply to--
(1) removal proceedings instituted before, on, or after the
date of enactment of this section; and
(2) acts and conditions constituting a ground for
inadmissibility, excludability, deportation, or removal
occurring or existing before, on, or after such date.

SPENDING PLAN AND NOTIFICATION PROCEDURES

Sec. 1712. Not later than 45 days after enactment of this
Act the Secretary of State shall submit to the Committees on
Appropriations a report detailing planned expenditures for
funds appropriated under the headings in this chapter, except
for funds appropriated under the headings ``International
Disaster and Famine Assistance'', ``Office of the United
States Agency for International Development Inspector
General'', and ``Office of the Inspector General'': Provided,
That funds appropriated under the headings in this chapter,
except for funds appropriated under the headings named in
this section, shall be subject to the regular notification
procedures of the Committees on Appropriations.

TITLE II

KATRINA RECOVERY, VETERANS' CARE AND FOR OTHER PURPOSES

CHAPTER 1

GENERAL PROVISION--THIS CHAPTER

emergency forestry conservation reserve program

Sec. 2101. Section 1231(k)(2) of the Food Security Act of
1985 (16 U.S.C. 3831(k)(2)) is amended by striking ``During
calendar year 2006, the'' and inserting ``The''.

CHAPTER 2

DEPARTMENT OF JUSTICE

Office of Justice Programs

STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

For an additional amount for ``State and Local Law
Enforcement Assistance'', for discretionary grants authorized
by subpart 2 of part E, of title I of the Omnibus Crime
Control and Safe Streets Act of 1968, notwithstanding the
provisions of section 511 of said

[[Page 7864]]

Act, $170,000,000, to remain available until September 30,
2008: Provided, That of the amount made available under this
heading, $70,000,000 shall be for local law enforcement
initiatives in the gulf coast region related to the aftermath
of Hurricanes Katrina and Rita, of which no less than
$55,000,000 shall be for the State of Louisiana: Provided
further, That of the amount made available under this
heading, $100,000,000 shall be for reimbursing State and
local law enforcement entities for security and related
costs, including overtime, associated with the 2008
Presidential Candidate Nominating Conventions, of which
$50,000,000 shall be for the city of Denver, Colorado and
$50,000,000 shall be for the city of St. Paul, Minnesota:
Provided further, That the Department of Justice shall report
to the Committees on Appropriations of the House and the
Senate on a quarterly basis on the expenditure of the funds
provided in the previous proviso.

DEPARTMENT OF COMMERCE

National Oceanic and Atmospheric Administration

OPERATIONS, RESEARCH, AND FACILITIES

For an additional amount for ``Operations, Research, and
Facilities'', for necessary expenses related to fisheries
disasters, $165,900,000, to remain available until September
30, 2008: Provided, That of the amount provided under this
heading, the National Marine Fisheries Service shall cause
$60,400,000 to be distributed among eligible recipients of
assistance for the commercial fishery failure designated
under section 312(a) of the Magnuson-Stevens Fishery
Conservation and Management Act (16 U.S.C. 1861a(a)) and
declared by the Secretary of Commerce on August 10, 2006:
Provided further, That of the amount provided under this
heading, $105,500,000 shall be for necessary expenses related
to the consequences of Hurricanes Katrina and Rita on shrimp
and fishing industries.

PROCUREMENT, ACQUISITION, AND CONSTRUCTION

For an additional amount for ``Procurement, Acquisition and
Construction'', for necessary expenses related to disaster
response and preparedness of the Gulf of Mexico coast,
$6,000,000, to remain available until September 30, 2008.

fisheries disaster mitigation fund

For an additional amount for a ``Fisheries Disaster
Mitigation Fund'', $50,000,000, to remain available until
expended for use in mitigating the effects of commercial
fisheries failures and fishery resource disasters as
determined under the Magnuson Stevens Act (16 U.S.C. 1801 et
seq.) or the Interjurisdictional Fisheries Act (16 U.S.C.
4101 et seq.): Provided, That the Secretary of Commerce shall
obligate funds provided under this heading according to the
Magnuson Stevens Conservation Act, as amended, the
Interjurisdictional Fisheries Act, as amended, or other Acts
as the Secretary determines to be appropriate.

GENERAL PROVISION--THIS CHAPTER

Sec. 2201. Up to $48,000,000 of amounts made available to
the National Aeronautics and Space Administration in Public
Law 109-148 and Public Law 109-234 for emergency hurricane
and other natural disaster-related expenses may be used to
reimburse hurricane-related costs incurred by NASA in fiscal
year 2005.

CHAPTER 3

DEPARTMENT OF DEFENSE--CIVIL

DEPARTMENT OF THE ARMY

Corps of Engineers--Civil

CONSTRUCTION

For an additional amount for ``Construction'' for necessary
expenses related to the consequences of Hurricane Katrina and
other hurricanes of the 2005 season, $150,000,000, to remain
available until expended, which may be used to continue
construction of projects related to interior drainage for the
greater New Orleans metropolitan area.

operation and maintenance

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

Flood Control and Coastal Emergencies

For an additional amount for ``Flood Control and Coastal
Emergencies'', as authorized by section 5 of the Act of
August 18, 1941 (33 U.S.C. 701n), for necessary expenses
relating to the consequences of Hurricanes Katrina and Rita
and for other purposes, $1,557,700,000, to remain available
until expended: Provided, That $1,300,000,000 of the amount
provided may be used by the Secretary of the Army to carry
out projects and measures to provide the level of protection
necessary to achieve the certification required for the 100-
year level of flood protection in accordance with the
national flood insurance program under the base flood
elevations in existence at the time of construction of the
enhancements for the West Bank and Vicinity and Lake
Ponchartrain and Vicinity, Louisiana, projects, as described
under the heading ``Flood Control and Coastal Emergencies'',
in chapter 3 of Public Law 109-148: Provided further, That
$150,000,000 of the amount provided may be used to support
emergency operations, repairs and other activities in
response to flood, drought and earthquake emergencies as
authorized by law: Provided further, That $107,700,000 of the
amount provided may be used to implement the projects for
hurricane storm damage reduction, flood damage reduction, and
ecosystem restoration within Hancock, Harrison, and Jackson
Counties, Mississippi substantially in accordance with the
Report of the Chief of Engineers dated December 31, 2006, and
entitled ``Mississippi, Coastal Improvements Program Interim
Report, Hancock, Harrison, and Jackson Counties,
Mississippi'': Provided further, That projects authorized for
implementation under this Chief's report shall be carried out
at full Federal expense, except that the non-Federal
interests shall be responsible for providing any lands,
easements, rights-of-way, disposal areas, and relocations
required for construction of the project and for all costs
associated with operation and maintenance of the project:
Provided further, That any project using funds appropriated
under this heading shall be initiated only after non-Federal
interests have entered into binding agreements with the
Secretary requiring the non-Federal interests to pay 100
percent of the operation, maintenance, repair, replacement,
and rehabilitation costs of the project and to hold and save
the United States free from damages due to the construction
or operation and maintenance of the project, except for
damages due to the fault or negligence of the United States
or its contractors.

DEPARTMENT OF INTERIOR

Bureau of Reclamation

WATER AND RELATED RESOURCES

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

GENERAL PROVISIONS--THIS CHAPTER

Sec. 2301. The Secretary is authorized and directed to
reimburse local governments for expenses they have incurred
in storm-proofing pumping stations, constructing safe houses
for operators, and other interim flood control measures in
and around the New Orleans metropolitan area, provided the
Secretary determines those elements of work and related
expenses to be integral to the overall plan to ensure
operability of the stations during hurricanes, storms and
high water events and the flood control plan for the area.
Sec. 2302. The limitation concerning total project costs in
section 902 of the Water Resources Development Act of 1986,
as amended (33 U.S.C. 2280), shall not apply during fiscal
year 2008 to any water resources project for which funds were
made available during fiscal year 2007.
Sec. 2303. (a) The Secretary of the Army is authorized and
directed to utilize funds remaining available for obligation
from the amounts appropriated in chapter 3 of Public Law 109-
234 under the heading ``Flood Control and Coastal
Emergencies'' for projects in the greater New Orleans
metropolitan area to prosecute these projects in a manner
which promotes the goal of continuing work at an optimal
pace, while maximizing, to the greatest extent practicable,
levels of protection to reduce the risk of storm damage to
people and property.
(b) The expenditure of funds as provided in subsection (a)
may be made without regard to individual amounts or purposes
specified in chapter 3 of Public Law 109-234.
(c) Any reallocation of funds that are necessary to
accomplish the goal established in subsection (a) are
authorized. Reallocation of funds in excess of $250,000,000
or 50 percent, whichever is less, of the individual amounts
specified in chapter 3 of Public Law 109-234 require
notifications of the House and Senate Committees on
Appropriation.

CHAPTER 4

SMALL BUSINESS ADMINISTRATION

Disaster Loans Program Account

(including transfer of funds)

GENERAL PROVISIONS--THIS CHAPTER

Sec. 2401. Economic Injury Disaster Loans. (a)
Definitions.--In this section--
(1) the term ``Administrator'' means the Administrator of
the Small Business Administration;
(2) the term ``covered small business concern'' means a
small business concern--
(A) that is located in any area in Louisiana or Mississippi
for which the President declared a major disaster because of
Hurricane Katrina of 2005 or Hurricane Rita of 2005;
(B) that has not more than 50 full-time employees; and

[[Page 7865]]

(C) that--
(i)(I) suffered a substantial economic injury as a result
of Hurricane Katrina of 2005 or Hurricane Rita of 2005,
because of a reduction in travel or tourism to the area
described in subparagraph (A); and
(II) demonstrates that, during the 1-year period ending on
August 28, 2005, not less than 45 percent of the revenue of
that small business concern resulted from tourism or travel
related sales; or
(ii)(I) suffered a substantial economic injury as a result
of Hurricane Katrina of 2005 or Hurricane Rita of 2005; and
(II) operates in a parish or county for which the
population on the date of enactment of this Act, as
determined by the Administrator, is not greater than 75
percent of the population of that parish or county before
August 28, 2005, based on the most recent United States
population estimate available before August 28, 2005;
(3) the term ``major disaster'' has the meaning given that
term in section 102 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5122); and
(4) the term ``small business concern'' has the meaning
given that term in section 3 of the Small Business Act (15
U.S.C. 632).
(b) Appropriation.--
(1) In general.--There are appropriated, out of any money
in the Treasury not otherwise appropriated, $25,000,000 to
the Administrator, which, except as provided in paragraph (2)
or (3), shall be used for loans under section 7(b)(2) of the
Small Business Act (15 U.S.C. 636(b)(2)) to covered small
business concerns.
(2) Administrative expenses.--Of the amounts made available
under paragraph (1), not more than $8,750,000 may be
transferred to and merged with ``Salaries and Expenses'' to
carry out the disaster loan program of the Small Business
Administration.
(3) Other uses of funds.--The Administrator may use amounts
made available under paragraph (1) for other purposes
authorized for amounts in the ``Disaster Loans Program
Account'' or transfer such amounts to and merge such amounts
with ``Salaries and Expenses'', if--
(A) such amounts are--
(i) not obligated on the later of 5 months after the date
of enactment of this Act and August 29, 2007; or
(ii) necessary to provide assistance in the event of a
major disaster; and
(B) not later than 5 days before any such use or transfer
of amounts, the Administrator provides written notification
of such use or transfer to the Committee on Appropriations of
the Senate and the Committee on Appropriations of the House
of Representatives.
Sec. 2402. Other Programs. (a) HUBZones.--Section 3(p) of
the Small Business Act (15 U.S.C. 632(p)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (D), by striking ``or'';
(B) in subparagraph (E), by striking the period at the end
and inserting ``; or''; and
(C) by adding at the end the following:
``(F) an area in which the President has declared a major
disaster (as that term is defined in section 102 of the
Robert T. Stafford Disaster Relief and Emergency Assistance
Act (42 U.S.C. 5122)) as a result of Hurricane Katrina of
August 2005 or Hurricane Rita of September 2005, during the
time period described in paragraph (8).''; and
(2) by adding at the end the following:
``(8) Time period.--The time period for the purposes of
paragraph (1)(F)--
``(A) shall be the 2-year period beginning on the later of
the date of enactment of this paragraph and August 29, 2007;
and
``(B) may, at the discretion of the Administrator, be
extended to be the 3-year period beginning on the later of
the date of enactment of this paragraph and August 29,
2007.''.
(b) Relief From Test Program.--Section 711(d) of the Small
Business Competitive Demonstration Program Act of 1988 (15
U.S.C. 644 note) is amended--
(1) by striking ``The Program'' and inserting the
following:
``(1) In general.--Except as provided in paragraph (2), the
Program''; and
(2) by adding at the end the following:
``(2) Exception.--
``(A) In general.--The Program shall not apply to any
contract related to relief or reconstruction from Hurricane
Katrina of 2005 or Hurricane Rita of 2005 during the time
period described in subparagraph (B).
``(B) Time period.--The time period for the purposes of
subparagraph (A)--
``(i) shall be the 2-year period beginning on the later of
the date of enactment of this paragraph and August 29, 2007;
and
``(ii) may, at the discretion of the Administrator, be
extended to be the 3-year period beginning on the later of
the date of enactment of this paragraph and August 29,
2007.''.

CHAPTER 5

DEPARTMENT OF HOMELAND SECURITY

Federal Emergency Management Agency

Disaster Relief

For an additional amount for ``Disaster Relief'' for
necessary expenses under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.),
$4,310,000,000, to remain available until expended.

GENERAL PROVISIONS--THIS CHAPTER

Sec. 2501. (a) In General.--Notwithstanding any other
provision of law, including any agreement, the Federal share
of assistance, including direct Federal assistance, provided
for the States of Louisiana, Mississippi, Alabama, and Texas
in connection with Hurricanes Katrina and Rita under sections
403, 406, 407, and 408 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5170b, 5172,
5173, and 5174) shall be 100 percent of the eligible costs
under such sections.
(b) Applicability.--
(1) In general.--Subject to paragraph (2), the Federal
share provided by subsection (a) shall apply to disaster
assistance applied for before the date of enactment of this
Act.
(2) Limitation.--In the case of disaster assistance
provided under sections 403, 406, and 407 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act, the
Federal share provided by subsection (a) shall be limited to
assistance provided for projects for which applications have
been prepared for the Federal Emergency Management Agency
before the date of enactment of this Act.
Sec. 2502. (a) Section 2(a) of the Community Disaster Loan
Act of 2005 (Public Law 109-88; 119 Stat. 2061) is amended by
striking ``: Provided further, That notwithstanding section
417(c)(1) of the Stafford Act, such loans may not be
canceled''.
(b) Chapter 4 of title II of the Emergency Supplemental
Appropriations Act for Defense, the Global War on Terror, and
Hurricane Recovery, 2006 (Public Law 109-234; 120 Stat. 471)
is amended under the heading ``Disaster Assistance Direct
Loan Program Account'' under the heading ``Federal Emergency
Management Agency'' under the heading ``Department of
Homeland Security'', by striking ``Provided further, That
notwithstanding section 417(c)(1) of such Act, such loans may
not be canceled:''.
Sec. 2503. Section 2401 of the Emergency Supplemental
Appropriations Act for Defense, the Global War on Terror, and
Hurricane Recovery, 2006 (Public Law 109-234; 120 Stat. 460)
is amended by striking ``12 months'' and inserting ``24
months''.

CHAPTER 6

DEPARTMENT OF THE INTERIOR

Bureau of Land Management

Wildland Fire Management

(Including Transfer of Funds)

For an additional amount for ``Wildland Fire Management'',
$100,000,000, to remain available until expended, for urgent
wildland fire suppression activities: Provided, That such
funds shall only become available if funds previously
provided for wildland fire suppression will be exhausted
imminently and the Secretary of the Interior notifies the
House and Senate Committees on Appropriations in writing of
the need for these additional funds: Provided further, That
such funds are also available for repayment to other
appropriations accounts from which funds were transferred for
wildfire suppression.

United States Fish and Wildlife Service

Resource Management

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

National Park Service

Operation of the National Park System

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

Historic Preservation Fund

For an additional amount for the ``Historic Preservation
Fund'' for necessary expenses related to the consequences of
Hurricane Katrina and other hurricanes of the 2005 season,
$15,000,000, to remain available until September 30, 2008:
Provided, That the funds provided under this heading shall be
provided to the State Historic Preservation Officer, after
consultation with the National Park Service, for grants for
disaster relief in areas of Louisiana impacted by Hurricanes
Katrina or Rita: Provided further, That grants shall be for
the preservation, stabilization, rehabilitation, and repair
of historic properties listed in or eligible for the National
Register of Historic Places, for planning and technical
assistance: Provided further, That grants shall only be
available for areas that the President determines to be a
major disaster under section 102(2) of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C.
5122(2)) due to Hurricanes Katrina or Rita: Provided further,
That individual grants shall not be subject to a non-Federal
matching requirement: Provided further, That no more than 5
percent of funds provided under this heading for disaster
relief grants may be used for administrative expenses.

United States Geological Survey

Surveys, Investigations, and Research

For an additional amount for ``Surveys, Investigations, and
Research'' for the detection of highly pathogenic avian
influenza in

[[Page 7866]]

wild birds, including the investigation of morbidity and
mortality events, targeted surveillance in live wild birds,
and targeted surveillance in hunter-taken birds, $5,270,000,
to remain available until September 30, 2008.

DEPARTMENT OF AGRICULTURE

Forest Service

National Forest System

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

Wildland Fire Management

(Including Transfer of Funds)

For an additional amount for ``Wildland Fire Management'',
$400,000,000, to remain available until expended, for urgent
wildland fire suppression activities: Provided, That such
funds shall only become available if funds provided
previously for wildland fire suppression will be exhausted
imminently and the Secretary of Agriculture notifies the
House and Senate Committees on Appropriations in writing of
the need for these additional funds: Provided further, That
such funds are also available for repayment to other
appropriation accounts from which funds were transferred for
wildfire suppression.

GENERAL PROVISIONS--THIS CHAPTER

Sec. 2601. (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 be used to cover
any shortfall for payments made under this section.
(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.
Sec. 2602. Disaster relief funds from Public Law 109-234,
120 Stat. 418, 461, (June 30, 2006), chapter 5, ``National
Park Service--Historic Preservation Fund,'' for necessary
expenses related to the consequences of Hurricane Katrina and
other hurricanes of the 2005 season, may be used to
reconstruct destroyed properties that at the time of
destruction were listed in the National Register of Historic
Places and are otherwise qualified to receive these funds:
Provided, That the State Historic Preservation Officer
certifies that, for the community where that destroyed
property was located, that the property is iconic to or
essential to illustrating that community's historic identity,
that no other property in that community with the same
associative historic value has survived, and that sufficient
historical documentation exists to ensure an accurate
reproduction.

CHAPTER 7

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Disease Control and Prevention

DISEASE CONTROL, RESEARCH AND TRAINING

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

Administration for Children and Families

LOW-INCOME HOME ENERGY ASSISTANCE

For an additional amount for ``Low-Income Home Energy
Assistance'' under section 2604(a) through (d) of the Low-
Income Home Energy Assistance Act of 1981 (42 U.S.C. 8623(a)
through (d)), $320,000,000.
For an additional amount for ``Low-Income Home Energy
Assistance'' under section 2604(e) of the Low-Income Home
Energy Assistance Act of 1981 (42 U.S.C. 8623(e)),
$320,000,000.

Office of the Secretary

PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND

(INCLUDING TRANSFER OF FUNDS)

For an additional amount for ``Public Health and Social
Services Emergency Fund'' to prepare for and respond to an
influenza pandemic, $820,000,000, to remain available until
expended: Provided, That this amount shall be for activities
including the development and purchase of vaccine,
antivirals, necessary medical supplies, diagnostics, and
other surveillance tools: Provided further, That products
purchased with these funds may, at the discretion of the
Secretary of Health and Human Services, be deposited in the
Strategic National Stockpile: Provided further, That
notwithstanding section 496(b) of the Public Health Service
Act, funds may be used for the construction or renovation of
privately owned facilities for the production of pandemic
vaccine and other biologicals, where the Secretary finds such
a contract necessary to secure sufficient supplies of such
vaccines or biologicals: Provided further, That funds
appropriated herein may be transferred to other appropriation
accounts of the Department of Health and Human Services, as
determined by the Secretary to be appropriate, to be used for
the purposes specified in this sentence.

COVERED COUNTERMEASURE PROCESS FUND

For carrying out section 319F-4 of the Public Health
Service Act (42 U.S.C. 247d-6e) to compensate individuals for
injuries caused by H5N1 vaccine, in accordance with the
declaration regarding avian influenza viruses issued by the
Secretary of Health and Human Services on January 26, 2007,
pursuant to section 319F-3(b) of such Act (42 U.S.C. 247d-
6d(b)), $50,000,000, to remain available until expended.

DEPARTMENT OF EDUCATION

Higher Education

For an additional amount under part B of title VII of the
Higher Education Act of 1965 (``HEA'') for institutions of
higher education (as defined in section 102 of that Act) that
are located in an area in which a major disaster was declared
in accordance with section 401 of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act related to
hurricanes in the Gulf of Mexico in calendar year 2005,
$30,000,000: Provided, That such funds shall be available to
the Secretary of Education only for payments to help defray
the expenses (which may include lost revenue, reimbursement
for expenses already incurred, and construction) incurred by
such institutions of higher education that were forced to
close, relocate or significantly curtail their activities as
a result of damage directly caused by such hurricanes and for
payments to enable such institutions to provide grants to
students who attend such institutions for academic years
beginning on or after July 1, 2006: Provided further, That
such payments shall be made in accordance with criteria
established by the Secretary and made publicly available
without regard to section 437 of the General Education
Provisions Act, section 553 of title 5, United States Code,
or part B of title VII of the HEA.

GENERAL PROVISIONS--THIS CHAPTER

Sec. 2701. Section 105(b) of title IV of division B of
Public Law 109-148 is amended by adding at the end the
following new sentence: ``With respect to the program
authorized by section 102 of this Act, the waiver authority
in subsection (a) of this section shall be available until
the end of fiscal year 2008.''

(including rescission)

Sec. 2702. (a) From unexpended balances of the amounts made
available in the 2001 Emergency Supplemental Appropriations
Act for Recovery from and Response to Terrorist Attacks on
the United States (Public Law 107-38) for the Employment
Training Administration, Training and Employment Services
under the Department of Labor, $3,589,000 are rescinded.
(b) For an additional amount for the Centers for Disease
Control and Prevention for carrying out activities under
section 5011(b) of the Emergency Supplemental Appropriations
Act to Address Hurricanes in the Gulf of Mexico and Pandemic
Influenza, 2006 (Public Law 109-148), $3,589,000.
Sec. 2703. Notwithstanding section 2002(c) of the Social
Security Act (42 U.S.C. 1397a(c)), funds made available under
the heading ``Social Services Block Grant'' in division B of
Public Law 109-148 shall be available for expenditure by the
States through the end of fiscal year 2008.
Sec. 2704. Elimination of Remainder of SCHIP Funding
Shortfalls for Fiscal Year 2007. (a) Elimination of Remainder
of Funding Shortfalls, Tiered Match, and Other Limitation on
Expenditures.--Section 2104(h) of the Social Security Act (42
U.S.C. 1397dd(h)), as added by section 201(a) of the National
Institutes of Health Reform Act of 2006 (Public Law 109-482),
is amended--
(1) in the heading for paragraph (2), by striking
``remainder of reduction'' and inserting ``part''; and
(2) by striking paragraph (4) and inserting the following:
``(4) Additional amounts to eliminate remainder of fiscal
year 2007 funding shortfalls.--
``(A) In general.--The Secretary shall allot to each
remaining shortfall State described in subparagraph (B) such
amount as the Secretary determines will eliminate the
estimated shortfall described in such subparagraph for the
State for fiscal year 2007.
``(B) Remaining shortfall state described.--For purposes of
subparagraph (A),

[[Page 7867]]

a remaining shortfall State is a State with a State child
health plan approved under this title for which the Secretary
estimates, on the basis of the most recent data available to
the Secretary as of the date of the enactment of this
paragraph, that the projected federal expenditures under such
plan for the State for fiscal year 2007 will exceed the sum
of--
``(i) the amount of the State's allotments for each of
fiscal years 2005 and 2006 that will not be expended by the
end of fiscal year 2006;
``(ii) the amount of the State's allotment for fiscal year
2007; and
``(iii) the amounts, if any, that are to be redistributed
to the State during fiscal year 2007 in accordance with
paragraphs (1) and (2).
``(C) Appropriation; allotment authority.--For the purpose
of providing additional allotments to remaining shortfall
States under this paragraph there is appropriated, out of any
funds in the Treasury not otherwise appropriated, such sums
as are necessary for fiscal year 2007.''.
(b) Conforming Amendments.--Section 2104(h) of such Act (42
U.S.C. 1397dd(h)) (as so added), is amended--
(1) in paragraph (1)(B), by striking ``subject to paragraph
(4)(B) and'';
(2) in paragraph (2)(B), by striking ``subject to paragraph
(4)(B) and'';
(3) in paragraph (5)(A), by striking ``and (3)'' and
inserting ``(3), and (4)''; and
(4) in paragraph (6)--
(A) in the first sentence_
(i) by inserting ``or allotted'' after ``redistributed'';
and
(ii) by inserting ``or allotments'' after
``redistributions''; and
(B) by striking ``and (3)'' and inserting ``(3), and (4)''.
(c) General Effective Date; Applicability.--Except as
otherwise provided, the amendments made by this section take
effect on the date of enactment of this Act and apply without
fiscal year limitation.
Sec. 2705. Notwithstanding any other provision of law, the
Secretary of Health and Human Services shall not, prior to
the date that is 2 years after the date of enactment of this
Act, take any action to finalize, or otherwise implement
provisions--
(1) contained in the proposed rule published on January 18,
2007, on pages 2236 through 2258 of volume 72, Federal
Register (relating to parts 433, 447, and 457 of title 42,
Code of Federal Regulations) or any other rule that would
affect the Medicaid program established under title XIX of
the Social Security Act or the State Children's Health
Insurance Program established under title XXI of such Act in
a similar manner; or
(2) restricting payments for graduate medical education
under the Medicaid program.
(b) Increase in Basic Rebate for Single Source Drugs and
Innovator Multiple Source Drugs.--Section 1927(c)(1)(B)(i) of
the Social Security Act (42 U.S.C. 1396r-8(c)(1)(B)(i)) is
amended--
(1) in subclause (IV), by striking ``and'' after the
semicolon;
(2) in subclause (V)--
(A) by inserting ``and before April 1, 2007,'' after
``1995,''; and
(B) by striking the period and inserting ``; and''; and
(3) by adding at the end the following:

``(VI) after March 31, 2007, is 20 percent.''.

Sec. 2706. (a) For grant years beginning in 2006-2007, the
Secretary of Health and Human Services may waive the
requirements of, with respect to Louisiana, Mississippi,
Alabama, and Texas and any eligible metropolitan area in
Louisiana, Mississippi, Alabama, and Texas, the following
sections of the Public Health Service Act:
(1) Section 2612(e)(1) of such Act (42 U.S.C. 300ff-
21(b)(1)).
(2) Section 2617(b)(7)(E) of such Act (42 U.S.C. 300ff-
27(b)(7)(E)).
(3) Section 2617(d) of such Act (42 U.S.C. 300ff-27(d)),
except that such waiver shall apply so that the matching
requirement is reduced to $1 for each $4 of Federal funds
provided under the grant involved.
(b) If the Secretary of Health and Human Services grants a
waiver under subsection (b), the Secretary--
(1) may not prevent Louisiana, Mississippi, Alabama, and
Texas or any eligible metropolitan area in Louisiana,
Mississippi, Alabama, and Texas from receiving or utilizing,
or both, funds granted or distributed, or both, pursuant to
title XXVI of the Public Health Service Act (42 U.S.C. 300ff-
11 et seq.) because of the failure of Louisiana, Mississippi,
Alabama, and Texas or any eligible metropolitan area in
Louisiana, Mississippi, Alabama, and Texas to comply with the
requirements of the sections listed in paragraphs (1) through
(3) of subsection (a);
(2) may not take action due to such noncompliance; and
(3) shall assess, evaluate, and review Louisiana,
Mississippi, Alabama, and Texas or any eligible metropolitan
area's eligibility for funds under such title XXVI as if
Louisiana, Mississippi, Alabama, and Texas or such eligible
metropolitan area had fully complied with the requirements of
the sections listed in paragraphs (1) through (3) of
subsection (a).
(c) For grant years beginning in 2008, Louisiana,
Mississippi, Alabama, and Texas and any eligible metropolitan
area in Louisiana, Mississippi, Alabama, and Texas shall
comply with each of the applicable requirements under title
XXVI of the Public Health Service Act (42 U.S.C. 300ff-11 et
seq.).

CHAPTER 8

LEGISLATIVE BRANCH

ARCHITECT OF THE CAPITOL

Capitol Power Plant

For an additional amount for ``Capitol Power Plant'',
$25,000,000, for emergency utility tunnel repairs and
asbestos abatement, to remain available until September 30,
2011: Provided, That the Architect of the Capitol may not
obligate any of the funds appropriated under this heading
without approval of an obligation plan by the Committees on
Appropriations of the Senate and House of Representatives.

GOVERNMENT ACCOUNTABILITY OFFICE

Salaries and Expenses

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

CHAPTER 9

DEPARTMENT OF DEFENSE

MILITARY CONSTRUCTION

Military Construction, Air Force Reserve

(Including Rescission of Funds)

For an additional amount for ``Military Construction, Air
Force Reserve'', $3,096,000, to remain available until
September 30, 2011: Provided, That such funds may be
obligated and expended to carry out planning and design and
military construction projects not otherwise authorized by
law.
Of the funds appropriated for ``Military Construction, Air
Force Reserve'' under Public Law 109-114, $3,096,000 are
hereby rescinded.

Department of Defense Base Closure Account, 2005

For deposit into the Department of Defense Base Closure
Account 2005, established by section 2906(a)(1) of the
Defense Base Closure and Realignment Act of 1990 (10 U.S.C.
2687 note), $3,136,802,000, to remain available until
expended.

DEPARTMENT OF VETERANS AFFAIRS

Veterans Health Administration

MEDICAL SERVICES

For an additional amount for ``Medical Services'',
$454,131,000, to remain available until expended, of which
$50,000,000 shall be for the establishment of new Level I
comprehensive polytrauma centers; $9,440,000 shall be for the
establishment of polytrauma residential transitional
rehabilitation programs; $20,000,000 shall be for additional
transition caseworkers; $30,000,000 shall be for substance
abuse treatment programs; $20,000,000 for readjustment
counseling; $10,000,000 shall be for blind rehabilitation
services; $100,000,000 shall be for enhancements to mental
health services; $8,000,000 shall be for polytrauma support
clinic teams; $5,356,000 for additional polytrauma points of
contacts; and $201,335,000 shall be for treatment of
Operation Enduring Freedom and Operation Iraqi Freedom
veterans.

MEDICAL ADMINISTRATION

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

MEDICAL FACILITIES

For an additional amount for ``Medical Facilities'',
$595,000,000, to remain available until expended, of which
$45,000,000 shall be used for facility and equipment upgrades
at the Department of Veterans Affairs polytrauma
rehabilitation centers and the polytrauma network sites; and
$550,000,000 shall be for non-recurring maintenance as
identified in the Department of Veterans Affairs Facility
Condition Assessment report: Provided, That the amount
provided under this heading for non-recurring maintenance
shall be allocated in a manner outside of the Veterans
Equitable Resource Allocation and specific to the needs and
geographic distribution of Operation Enduring Freedom and
Operation Iraqi Freedom veterans: Provided further, That
within 30 days of enactment of this Act the Secretary shall
submit to the Committees on Appropriations of both Houses of
Congress an expenditure plan for non-recurring maintenance
prior to obligation.

MEDICAL AND PROSTHETIC RESEARCH

For an additional amount for ``Medical and Prosthetic
Research'', $30,000,000, to remain available until expended,
which shall be used for research related to the unique
medical needs of returning Operation Enduring Freedom and
Operation Iraqi Freedom veterans.

Departmental Administration

GENERAL OPERATING EXPENSES

For an additional amount for ``General Operating
Expenses'', $46,000,000, to remain available until expended,
for the hiring and training of new pension and compensation
claims processing personnel.

INFORMATION TECHNOLOGY SYSTEMS

For an additional amount for ``Information Technology
Systems'', $36,100,000, to remain available until expended,
of which $20,000,000 shall be for information technology
support and improvements for processing of OIF/OEF

[[Page 7868]]

veterans benefits claims, including making electronic DOD
medical records available for claims processing and enabling
electronic benefits applications by veterans; $1,000,000
shall be for the digitization of benefits records; and
$15,100,000 shall be for electronic data breach and
remediation and prevention.

CONSTRUCTION, MINOR PROJECTS

For an additional amount for ``Construction, Minor
Projects'', $355,907,000, to remain available until expended,
of which $36,000,000 shall be for construction costs
associated with the establishment of polytrauma residential
transitional rehabilitation programs.

GENERAL PROVISIONS--THIS CHAPTER

Sec. 2901. (a) Notwithstanding any other provision of law,
none of the funds in this or any other Act shall be used to
downsize staff or to close, realign or phase out essential
services at Walter Reed Army Medical Center until equivalent
medical facilities at the Walter Reed National Military
Medical Center at Naval Medical Center, Bethesda, Maryland,
and/or the Fort Belvoir, Virginia, Community Hospital have
been constructed and equipped, and until the Secretary of
Defense has certified in writing to the Congress that:
(1) the new facilities at Walter Reed National Military
Medical Center at Bethesda and/or the Fort Belvoir Community
Hospital are complete and fully operational, and
(2) replacement medical facilities at Walter Reed National
Military Medical Center at Bethesda have adequate capacity to
meet both the existing and projected demand for complex
medical care and services, including outpatient and medical
hold facilities, for combat veterans and other military
personnel.
(b) Not later than 30 days after enactment of this Act, the
Secretary of Defense shall provide to the Committees on
Appropriations of the Senate and House of Representatives a
report and proposed timetable outlining the Department's plan
to transition patients, staff and medical services to the new
facilities at Bethesda and Fort Belvoir without compromising
patient care, staffing requirements or facility maintenance
at the Walter Reed Medical Center.
(c) To ensure that the quality of care provided by the
Military Health System is not diminished during this
transition, the Walter Reed Army Medical Center shall be
adequately funded, to include necessary renovation and
maintenance of existing facilities, to continue the maximum
level of inpatient and outpatient services.
Sec. 2902. Within existing funds appropriated to
Departmental Administration, General Operating Expenses for
fiscal year 2007, and within 30 days after enactment of this
Act, the Department of Veterans Affairs shall contract with
the National Academy of Public Administration for the purpose
of conducting an independent study and analysis of the
organizational structure, management and coordination
processes, including Seamless Transition, utilized by the
Department of Veterans affairs to:
(1) provide health care to active duty and veterans of
Operation Enduring Freedom and Operation Iraqi Freedom; and
(2) provide benefits to veterans of Operation Enduring
Freedom and Operation Iraqi Freedom.
Sec. 2903. The Director of the Congressional Budget Office
shall, not later than November 15, 2007, submit to the
Committees on Appropriations of the House of Representatives
and the Senate a report projecting appropriations necessary
for the Departments of Defense and Veterans Affairs to
continue providing necessary health care to veterans of the
conflicts in Iraq and Afghanistan. The projections should
span several scenarios for the duration and number of forces
deployed in Iraq and Afghanistan, and more generally, for the
long-term health care needs of deployed troops engaged in the
global war on terrorism over the next ten years.

CHAPTER 10

DEPARTMENT OF TRANSPORTATION

Federal Highway Administration

Federal-Aid Highways

Emergency Relief Program

(including rescission of funds)

For an additional amount for the Emergency Relief Program
as authorized under section 125 of title 23, United States
Code, $388,903,000, to remain available until expended:
Provided, That of the unobligated balances of funds
apportioned to each State under chapter 1 of title 23, United
States Code, $388,903,000 are rescinded: Provided further,
That such rescission shall not apply to the funds distributed
in accordance with sections 130(f) and 104(b)(5) of title 23,
United States Code; sections 133(d)(1) and 163 of such title,
as in effect on the day before the date of enactment of
Public Law 109-59; and the first sentence of section
133(d)(3)(A) of such title: Provided further, That section
4103 of title III of this Act shall not apply to the first
proviso under this paragraph.

Federal Transit Administration

Formula Grants

For an additional amount to be allocated by the Secretary
to recipients of assistance under chapter 53 of title 49,
United States Code, directly affected by Hurricanes Katrina
and Rita, $75,000,000, for the operating and capital costs of
transit services, to remain available until expended:
Provided, That the Federal share for any project funded from
this amount shall be 100 percent.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Inspector General

For an additional amount for the Office of Inspector
General, for the necessary costs related to the consequences
of Hurricanes Katrina and Rita, $5,000,000, to remain
available until expended.

GENERAL PROVISIONS--THIS CHAPTER

Sec. 3001. Notwithstanding part 750 of title 23, Code of
Federal Regulations (or a successor regulation), if permitted
by State law, a nonconforming sign that is or has been
damaged, destroyed, abandoned, or discontinued as a result of
a hurricane that is determined to be an act of God (as
defined by State law) may be repaired, replaced, or
reconstructed if the replacement sign has the same dimensions
as the original sign, and said sign is located within a State
found within Federal Emergency Management Agency Region IV or
VI. The provisions of this section shall cease to be in
effect twenty-four months following the date of enactment of
this Act.
Sec. 3002. Section 21033 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as
amended by Public Law 110-5) is amended by adding after the
third proviso: ``: Provided further, That notwithstanding the
previous proviso, except for applying the 2007 Annual
Adjustment Factor and making any other specified adjustments,
public housing agencies that are eligible for assistance
under section 901 in Public Law 109-148 (119 Stat. 2781)
shall receive funding for calendar year 2007 based on the
amount such public housing agencies were eligible to receive
in calendar year 2006''.

TITLE III

OTHER MATTERS

CHAPTER 1

DEPARTMENT OF AGRICULTURE

Farm Service Agency

SALARIES AND EXPENSES

For an additional amount for ``Salaries and Expenses'' of
the Farm Service Agency, $75,000,000, to remain available
until expended: Provided, That this amount shall only be
available for the modernization and repair of the computer
systems used by the Farm Service Agency (including) software,
hardware, and personnel required for modernization and
repair): Provided further, That of this amount $27,000,000
shall be made available 60 days after the date on which the
Farm Service Agency submits to the Committee on
Appropriations of the Senate, the Committee on Appropriations
of the House of Representatives, and the Government
Accountability Office a spending plan for the funds.

GENERAL PROVISIONS--THIS CHAPTER

(rescission)

Sec. 3101. Of the unobligated balances of funds made
available pursuant to section 298(a) of the Trade Act of 1974
(19 U.S.C. 2401G(a)), $75,000,000 are rescinded.
Sec. 3102. (a) Section 1237A(f) of the Food Security Act of
1985 (16 U.S.C. 3837a(f)) is amended in the first sentence by
striking ``fair market value of the land less the fair market
value of such land encumbered by the easement'' and inserting
``fair market value of the land as determined in accordance
with the method of valuation used by the Secretary as of
January 1, 2003''.
(b) Section 1238I(c)(1) of the Food Security Act of 1985
(16 U.S.C. 3838i(c)(1)) is amended by inserting at the end
the following:
``(C) Valuation.--The Secretary shall determine fair market
value under this paragraph in accordance with the method of
valuation used by the Secretary as of January 1, 2003.''.
Sec. 3103. Subsection (b)(1) of section 313A of the Rural
Electrification Act shall not apply in the case of a
cooperative lender that has previously received a guarantee
under section 313A and such additional guarantees shall not
exceed the amount provided for in Public Law 110-5.

CHAPTER 2

GENERAL PROVISIONS--THIS CHAPTER

Sec. 3201. Section 20314 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as
amended by Public Law 110-5) is amended by striking
``Resources.'' and inserting in lieu thereof: ``Resources:
Provided, That $22,762,000 of the amount provided be for
geothermal research and development activities.''.
Sec. 3202. Hereafter, federal employees at the National
Energy Technology Laboratory shall be classified as
inherently governmental for the purpose of the Federal
Activities Inventory Reform Act of 1998 (31 U.S.C. 501 note).
Sec. 3203. Prohibition on Certain Uses of Funds by BPA.
None of the funds made available under this or any other Act
shall be used during fiscal year 2007 to make, or plan or
prepare to make, any payment on bonds issued by the
Administrator of the Bonneville Power Administration
(referred in this section as the ``Administrator'') or for an
appropriated Federal Columbia River Power System investment,
if the payment is both--

[[Page 7869]]

(1) greater, during any fiscal year, than the payments
calculated in the rate hearing of the Administrator to be
made during that fiscal year using the repayment method used
to establish the rates of the Administrator as in effect on
October 1, 2006; and
(2) based or conditioned on the actual or expected net
secondary power sales receipts of the Administrator.

CHAPTER 3

GENERAL PROVISIONS--THIS CHAPTER

Sec. 3301. The structure of any of the offices or
components within the Office of National Drug Control Policy
shall remain as they were on October 1, 2006. None of the
funds appropriated or otherwise made available in the
Continuing Appropriations Resolution, 2007 (Public Law 110-5)
may be used to implement a reorganization of offices within
the Office of National Drug Control Policy without the
explicit approval of the Committees on Appropriations of the
House of Representatives and the Senate.
Sec. 3302. Funds made available in section 21075 of the
Continuing Appropriations Resolution, 2007 (Public Law 110-5)
shall be made available to a 501(c)(3) entity: (1) with a
wide anti-drug coalition network and membership base, and one
with a demonstrated track record and specific expertise in
providing technical assistance, training, evaluation,
research, and capacity building to community anti-drug
coalitions; (2) with authorization from Congress, both prior
to fiscal year 2007, and in fiscal years 2008 through 2012,
to perform the duties described in subsection (1) of this
section; and (3) that has previously received funding from
Congress, including through a competitive process as well as
direct funding, for providing the duties described in
subsection (1) of this section: Provided, That funds
appropriated in section 21075 shall be obligated within sixty
days after enactment of this Act.
Sec. 3303. Funds made available under section 613 of Public
Law 109-108 (119 Stat. 2338) for Nevada's Commission on
Economic Development shall be made available to the Nevada
Center for Entrepreneurship and Technology (CET).
Sec. 3304. From the amount provided by section 21067 of the
Continuing Appropriations Resolution, 2007 (Public Law 110-
5), the National Archives and Records Administration may
obligate monies necessary to carry out the activities of the
Public Interest Declassification Board.
Sec. 3305. None of the funds appropriated or otherwise made
available in section 21063 of the Continuing Appropriations
Resolution, 2007 (Public Law 110-5) for the ``General
Services Administration, Real Property Activities, Federal
Buildings Fund'', may be obligated for design, construction,
or acquisition until the House and Senate Committees on
Appropriations approve a revised detailed plan, by project,
on the use of such funds: Provided, That the new plan shall
include funding for completion of courthouse construction
projects which received funding in fiscal year 2006 above a
level of $5,000,000: Provided further, That such plan shall
be provided by the Administrator of the General Services
Administration to the House of Representatives and the Senate
Committees on Appropriations within seven days of enactment.
Sec. 3306. Notwithstanding the notice requirement of the
Transportation, Treasury, Housing and Urban Development, the
Judiciary, the District of Columbia, and Independent Agencies
Appropriations Act, 2006, 119 Stat. 2509 (Public Law 109-
115), as continued in section 104 of the Continuing
Appropriations Resolution, 2007 (Public Law 110-5), the
District of Columbia Courts may reallocate not more than
$1,000,000 of the funds provided for fiscal year 2007 under
the Federal Payment to the District of Columbia Courts for
facilities among the items and entities funded under that
heading for operations.
Sec. 3307. (a) Not later than 90 days after the date of
enactment of this Act, the Secretary of the Treasury, in
coordination with the Securities and Exchange Commission and
in consultation with the Departments of State and Energy,
shall prepare and submit to the Senate Committee on
Appropriations, the House of Representatives Committee on
Appropriations, the Senate Foreign Relations Committee, and
the House Foreign Affairs Committee an unclassified report,
suitable to be made public, that contains the names of (1)
all companies trading in securities that are registered under
section 12 of the Securities Exchange Act of 1934 (15 U.S.C.
781) which either directly or through a parent or subsidiary
company, including partly-owned subsidiaries, conduct
business operations in Sudan relating to natural resource
extraction, including oil-related activities and mining of
minerals; and (2) the names of all other companies, which
either directly or through a parent or subsidiary company,
including partly-owned subsidiaries, conduct business
operations in Sudan relating to natural resource extraction,
including oil-related activities and mining of minerals. The
reporting provision shall not apply to companies operating
under licenses from the Office of Foreign Assets Control or
otherwise expressly exempted under United States law from
having to obtain such licenses in order to operate in Sudan.
(b) Not later than 20 days after enactment, the Secretary
of the Treasury shall inform the aforementioned committees of
Congress of any statutory or other legal impediments to the
successful completion of this report.
(c) Not later than 45 days following the submission to
Congress of the list of companies conducting business
operations in Sudan relating to natural resource extraction
required above, the General Services Administration shall
determine whether the United States Government has an active
contract for the procurement of goods or services with any of
the identified companies, and provide notification to the
appropriate committees of Congress of the companies, nature
of the contract, and dollar amounts involved.

(including rescission)

Sec. 3308. (a) Of the funds provided for the General
Services Administration, ``Office of Inspector General'' in
section 21061 of the Continuing Appropriations Resolution,
2007 (division B of Public Law 109-289, as amended by Public
Law 110-5), $8,000,000 are rescinded.
(b) For an additional amount for the General Services
Administration, ``Office of Inspector General'', $8,000,000,
to remain available until September 30, 2008.
Sec. 3309. Section 21073 of the Continuing Appropriations
Resolution, 2007 (Public Law 110-5) is amended by adding a
new subsection (j) as follows:
``(j) Notwithstanding section 101, any appropriation or
funds made available to the District of Columbia pursuant to
this division for `Federal Payment for Foster Care
Improvement in the District of Columbia' shall be available
in accordance with an expenditure plan submitted by the Mayor
of the District of Columbia not later than 60 days after the
enactment of this section which details the activities to be
carried out with such Federal Payment.''.

CHAPTER 4

GENERAL PROVISIONS--THIS CHAPTER

Sec. 3401. Any unobligated balances remaining from prior
appropriations for United States Coast Guard, ``Retired Pay''
shall remain available until expended in the account and for
the purposes for which the appropriations were provided,
including the payment of obligations otherwise chargeable to
lapsed or current appropriations for this purpose.
Sec. 3402. Integrated Deepwater System. (a) Competition for
Acquisition and Modification of Assets.--
(1) In general.--The Commandant of the Coast Guard shall
utilize full and open competition for any contract entered
into after the date of enactment of this Act that provides
for the acquisition or modification of assets under, or in
support of, the Integrated Deepwater System Program of the
Coast Guard.
(2) Exceptions.--Paragraph (1) shall not apply to the
following:
(A) The acquisition or modification of the following asset
classes for which assets of the class and related systems and
components under the Integrated Deepwater System are under a
contract for production:
(i) National Security Cutter;
(ii) Maritime Patrol Aircraft;
(iii) Deepwater Command, Control, Communications, Computer,
Intelligence, Surveillance, and Reconnaissance (C4ISR)
System; and
(iv) HC-130J Fleet Introduction.
(B) The modification of any legacy asset class under the
Integrated Deepwater System Program being performed by a
Coast Guard entity.
(b) Chair of Product and Oversight Teams.--The Commandant
of the Coast Guard shall assign an appropriate officer or
employee of the Coast Guard to act as chair of each of the
following:
(1) Each integrated product team under the Integrated
Deepwater System Program.
(2) Each higher-level team assigned to the oversight of a
product team referred to in paragraph (1).
(c) Life-cycle Cost Estimate.--The Commandant of the Coast
Guard may not enter into a contract for lead asset production
under the Integrated Deepwater System Program until the
Commandant obtains an independent estimate of life-cycle
costs of the asset concerned.
(d) Review of Acquisitions and Major Design Changes.--
(1) In general.--With the exception of assets covered under
(a)(2) of this section, the Commandant of the Coast Guard may
not carry out an action described in paragraph (2) unless an
independent third party with no financial interest in the
development, construction, or modification of any component
of the Integrated Deepwater System Program, selected by the
Commandant for purposes of the subsection, determines that
such action is advisable.
(2) Covered Actions.--The actions described in the
paragraph are as follows:
(A) The acquisition or modification of an asset under the
Integrated Deepwater System Program.
(B) The implementation of a major design change for an
asset under the Integrated Deepwater System Program.
(e) Linking of Award Fees to Successful Acquisition
Outcomes.--The Commandant of the Coast Guard shall require
that all contracts under the Integrated Deepwater System
Program that provide award fees link such fees to successful
acquisition outcomes (which shall be defined in terms of
cost, schedule, and performance).

[[Page 7870]]

(f) Contractual Agreements.--
(1) In general.--The Commandant of the Coast Guard may not
award or issue any contract, task or delivery order, letter
contract modification thereof, or other similar contract, for
the acquisition or modification of an asset under the
Integrated Deepwater System Program unless the Coast Guard
and the contractor concerned have formally agreed to all
terms and conditions.
(2) Exception.--A contract, task or delivery order, letter
contract, modification thereof, or other similar contract
described in paragraph (1) may be awarded or issued if the
head of contracting activity of the Coast Guard determines
that a compelling need exists for the award or issue of such
instrument.
(g) Designation of Technical Authority.--The Commandant of
the Coast Guard shall designate the Assistant Commandant of
the Coast Guard for Engineering and Logistics as the
technical authority for all engineering, design, and
logistics decisions pertaining to the Integrated Deepwater
System Program.
(h) Report on Personnel Required for Acquisition
Management.--Not later than 30 days after the date of the
enactment of this Act, the Commandant of the Coast Guard
shall submit to the Committees on Appropriations of the
Senate and the House of Representatives; the Committee on
Commerce, Science and Transportation of the Senate; and the
Committee on Transportation and Infrastructure of the House
of Representatives a report on the resources (including
training, staff, and expertise) required by the Coast Guard
to provide appropriate management and oversight of the
Integrated Deepwater System Program.
(i) Comptroller General Report on Progress.--Not later than
60 days after the date of enactment of this Act, the
Comptroller General of the United States shall submit to the
Committees on Appropriations of the Senate and the House of
Representatives; the Committee on Commerce, Science and
Transportation of the Senate; and the Committee on
Transportation and Infrastructure of the House of
Representatives a report describing and assessing the
progress of the Coast Guard in complying with the
requirements of this section.
Sec. 3403. None of the funds provided in this Act or any
other Act may be used to alter or reduce operations within
the Civil Engineering Program of the Coast Guard nationwide,
including the civil engineering units, facilities, design and
construction centers, maintenance and logistics command
centers, the Coast Guard Academy and the Coast Guard Research
and Development Center, except as specifically authorized by
a statute enacted after the date of enactment of this Act.

CHAPTER 5

GENERAL PROVISIONS--THIS CHAPTER

Sec. 3501. Section 20515 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as
amended by Public Law 110-5) is amended by inserting before
the period: ``; and of which, not to exceed $143,628,000
shall be available for contract support costs under the terms
and conditions contained in Public Law 109-54''.
Sec. 3502. Section 20512 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as
amended by Public Law 110-5) is amended by inserting after
the first dollar amount: ``, of which not to exceed
$7,300,000 shall be transferred to the `Indian Health
Facilities' account; the amount in the second proviso shall
be $18,000,000; the amount in the third proviso shall be
$525,099,000; the amount in the ninth proviso shall be
$269,730,000; and the $15,000,000 allocation of funding under
the eleventh proviso shall not be required''.
Sec. 3503. Section 20501 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as
amended by Public Law 110-5) is amended by inserting after
$55,663,000: ``of which $13,000,000 shall be for Save
America's Treasures''.
Sec. 3504. Of the funds made available to the United States
Fish and Wildlife Service for fiscal year 2007 under the
heading ``Land Acquisition'', not to exceed $1,980,000 may be
used for land conservation partnerships authorized by the
Highlands Conservation Act of 2004.
Sec. 3505. The Administrator of the Environmental
Protection Agency shall grant to the Water Environment
Research Foundation (WERF) such sums as were directed in
fiscal year 2005 and fiscal year 2006 for the On-Farm
Assessment and Environmental Review program: Provided, That
not less than 95 percent of funds made available shall be
used by WERF to award competitively a contract to perform the
program's environmental assessments: Provided further, That
WERF shall not retain more than 5 percent of such sums for
administrative expenses.

CHAPTER 6

DEPARTMENT OF HEALTH AND HUMAN SERVICES

National Institutes of Health

National Institute of Allergy and Infectious Diseases

(TRANSFER OF FUNDS)

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

GENERAL PROVISIONS--THIS CHAPTER

(TRANSFER OF FUNDS)

Sec. 3601. Section 20602 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as
amended by Public Law 110-5) is amended by inserting the
following after ``$5,000,000'': ``(together with an
additional $7,000,000 which shall be transferred by the
Pension Benefit Guaranty Corporation as an authorized
administrative cost)''.
Sec. 3602. Section 20625(b)(1) of the Continuing
Appropriations Resolution, 2007 (division B of Public Law
109-289, as amended by Public Law 110-5) is amended by--
(1) striking ``$7,172,994,000'' and inserting
``$7,176,431,000'';
(2) amending subparagraph (A) to read as follows:
``(A) $5,454,824,000 shall be for basic grants under
section 1124 of the Elementary and Secondary Education Act of
1965 (ESEA), of which up to $3,437,000 shall be available to
the Secretary of Education on October 1, 2006, to obtain
annually updated educational-agency-level census poverty data
from the Bureau of the Census;''; and
(3) amending subparagraph (C) to read as follows:
``(C) not to exceed $2,352,000 may be available for section
1608 of the ESEA and for a clearinghouse on comprehensive
school reform under part D of title V of the ESEA;''.
Sec. 3603. (a) From the amounts available for Department of
Education, Safe Schools and Citizenship Education as provided
by the Continuing Appropriations Resolution, 2007,
$321,500,000 shall be available for Safe and Drug-Free
Schools State Grants and $247,335,000 shall be available for
Safe and Drug-Free Schools National Programs.
(b) Of the amount available for Safe and Drug-Free National
Programs, not less than $25,000,000 shall be for competitive
grants to local educational agencies to address youth
violence and related issues.
(c) The competition under subsection (b) shall be limited
to local educational agencies that operate schools currently
identified as persistently dangerous under section 9532 of
the Elementary and Secondary Education Act of 1965.
Sec. 3604. The provision in the first proviso under the
heading ``Rehabilitation Services and Disability Research''
in the Department of Education Appropriations Act, 2006,
relating to alternative financing programs under section
4(b)(2)(D) of the Assistive Technology Act of 1998 shall not
apply to funds appropriated by the Continuing Appropriations
Resolution, 2007.

(transfer of funds)

Sec. 3605. Notwithstanding sections 20639 and 20640 of the
Continuing Appropriations Resolution, 2007, as amended by
section 2 of the Revised Continuing Appropriations
Resolution, 2007 (Public Law 110-5), the Chief Executive
Officer of the Corporation for National and Community Service
may transfer an amount of not more than $1,360,000 from the
account under the heading ``National and Community Service
Programs, Operating Expenses'' under the heading
``Corporation for National and Community Service'', to the
account under the heading ``Salaries and Expenses'' under the
heading ``Corporation for National and Community Service''.
Sec. 3606. Section 1310.12(a) of title 45 of the Code of
Federal Regulations (October 1, 2004) shall be effective 30
days after enactment of this Act except that any vehicles in
use to transport Head Start children as of January 1, 2007,
shall not be subject to a requirement under that part
regarding rear emergency exit doors for two years after the
date of enactment.
The Secretary of Health and Human Services shall revise the
allowable alternate vehicle standards described in that part
1310 (or any corresponding similar regulation or ruling) to
exempt from Federal seat spacing requirements and supporting
seating requirements related to compartmentalization any
vehicle used to transport children for a Head Start program
if the vehicle meets federal motor vehicle safety standards
for seating systems, occupant crash protection, seat belt
assemblies, and child restraint anchorage systems consistent
with that part 1310 (or any corresponding similar regulation
or ruling). Such revision shall be made in a manner
consistent with the findings of the National Highway Traffic
Safety Administration, pursuant to its study on occupant
protection on Head Start transit vehicles, related to the
Government Accountability Office report GAO-06-767R.

(including rescission)

Sec. 3607. (a) From the amounts made available by the
Continuing Appropriations Resolution, 2007 (Public Law 109-
289, as amended by the Revised Continuing Appropriations
Resolution, 2007 (Public Law 110-5)) for the Office of the
Secretary, General Departmental Management under the
Department of Health and Human Services, $1,000,000 are
rescinded.
(b) For the activities carried out by the Secretary of
Education under section 3(a) of

[[Page 7871]]

Public Law 108-406 (42 U.S.C. 15001 note), $1,000,000.

(including RESCISSION)

Sec. 3608. (a) From the amounts made available by the
Continuing Appropriations Resolution, 2007 for ``Department
of Education, Student Aid Administration'', $2,000,000 are
rescinded.
(b) For an additional amount for ``Department of Education,
Higher Education'' under part B of title VII of the Higher
Education Act of 1965 which shall be used to make a grant to
the University of Vermont for the Educational Excellence
Program, $2,000,000.
Sec. 3609. Section 1820 of the Social Security Act (42
U.S.C. 1395i-4) is amended--
(1) by redesignating subsection (j) as subsection (k); and
(2) by inserting after subsection (i) the following new
subsection:
``(j) Delta Health Initiative.--
``(1) In general.--The Secretary is authorized to award a
grant to the Delta Health Alliance, a nonprofit alliance of
academic institutions in the Mississippi Delta region, to
solicit and fund proposals from local governments, hospitals,
health care clinics, academic institutions, and rural public
health-related entities and organizations for research
development, educational programs, health care services, job
training, planning, construction, and the equipment of public
health-related facilities in the Mississippi Delta region.
``(2) Federal interest in property.--With respect to funds
used under this subsection for construction or alteration of
property, the Federal interest in the property shall last for
a period of 1 year following completion or until the Federal
Government is compensated for its proportionate interest in
the property if the property use changes or the property is
transferred or sold, whichever time period is less. At the
conclusion of such period, the Notice of Federal Interest in
such property shall be removed.
``(3) Authorization of appropriations.--There are
authorized to be appropriated such sums as may be necessary
to carry out this subsection in fiscal year 2007 and in each
of the five succeeding fiscal years.''.

CHAPTER 7

GENERAL PROVISIONS--THIS CHAPTER

Sec. 3701. Section 2(c) of the Legislative Branch
Appropriations Act, 1993 (2 U.S.C. 121d(c)) is amended by
adding at the end the following:
``(3) The Secretary of the Senate may transfer from the
fund to the Senate Employee Child Care Center proceeds from
the sale of holiday ornaments by the Senate Gift Shop for the
purpose of funding necessary activities and expenses of the
Center, including scholarships, educational supplies, and
equipment.''.

(including rescission)

Sec. 3702. (a) Of the funds provided for the ``Capitol
Guide Service and Special Services Office'' in section
20703(a) of the Continuing Appropriations Resolution, 2007
(as added by section 2 of the Revised Continuing
Appropriations Resolution, 2007 (Public Law 110-5)),
$3,500,000 are rescinded.
(b) For an additional amount for ``Capitol Guide Service
and Special Services Office'', $3,500,000, to remain
available until September 30, 2008.

CHAPTER 8

GENERAL PROVISION--THIS CHAPTER

Sec. 3801. Notwithstanding any other provision of law,
appropriations made by Public Law 110-5, or any other Act,
which the Secretary of Veterans Affairs contributes to the
Department of Defense/Department of Veterans Affairs Health
Care Sharing Incentive Fund under the authority of section
8111(d) of title 38, United States Code, shall remain
available until expended for any purpose authorized by
section 8111 of title 38, United States Code. 34

CHAPTER 9

GENERAL PROVISIONS--THIS CHAPTER

CONSULTATION REQUIREMENT

Sec. 3901. Of the funds provided in the Revised Continuing
Appropriations Resolution, 2007 (Public Law 110-5) for the
United States-China Economic and Security Review Commission,
$1,000,000 shall be available for obligation only in
accordance with a spending plan submitted to and approved by
the Committees on Appropriations which addresses the
recommendations of the Government Accountability Office's
audit of the Commission.

TECHNICAL AMENDMENT

Sec. 3902. (a) Notwithstanding any other provision of law,
subsection (c) under the heading ``Assistance for the
Independent States of the Former Soviet Union'' in Public Law
109-102, shall not apply to funds appropriated by the
Continuing Appropriations Resolution, 2007 (Public Law 109-
289, division B) as amended by Public Laws 109-369, 109-383,
and 110-5.
(b) Section 534(k) of the Foreign Operations, Export
Financing, and Related Programs Appropriations Act, 2006
(Public Law 109-102) is amended, in the second proviso, by
inserting after ``subsection (b) of that section'' the
following: ``and the requirement that a majority of the
members of the board of directors be United States citizens
provided in subsection (d)(3)(B) of that section''.
(c) Subject to section 101(c)(2) of the Continuing
Appropriations Resolution, 2007 (division B of Public Law
109-289, as amended by Public Law 110-5), the amount of funds
appropriated for ``Foreign Military Financing Program''
pursuant to such Resolution shall be construed to be the
total of the amount appropriated for such program by section
20401 of that Resolution and the amount made available for
such program by section 591 of the Foreign Operations, Export
Financing, and Related Programs Appropriations Act, 2006
(Public Law 109-102) which is made applicable to the fiscal
year 2007 by the provisions of such Resolution.

CHAPTER 10

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Federal Housing Enterprise Oversight

Salaries and Expenses

(including transfer of funds)

For an additional amount to carry out the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992,
$4,800,000, to remain available until expended, to be derived
from the Federal Housing Enterprises Oversight Fund and to be
subject to the same terms and conditions pertaining to funds
provided under this heading in Public Law 109-115: Provided,
That not to exceed the total amount provided for these
activities for fiscal year 2007 shall be available from the
general fund of the Treasury to the extent necessary to incur
obligations and make expenditures pending the receipt of
collections to the Fund: Provided further, That the general
fund amount shall be reduced as collections are received
during the fiscal year so as to result in a final
appropriation from the general fund estimated at not more
than $0.

GENERAL PROVISIONS--THIS CHAPTER

Sec. 4001. Hereafter, funds limited or appropriated for the
Department of Transportation may be obligated or expended to
grant authority to a Mexican motor carrier to operate beyond
United States municipalities and commercial zones on the
United States-Mexico border only to the extent that--
(1) granting such authority is first tested as part of a
pilot program;
(2) such pilot program complies with the requirements of
section 350 of Public Law 107-87 and the requirements of
section 31315(c) of title 49, United States Code, related to
pilot programs; and
(3) simultaneous and comparable authority to operate within
Mexico is made available to motor carriers domiciled in the
United States.
Sec. 4002. Section 21033 of the Continuing Appropriations
Resolution, 2007 (division B of Public Law 109-289, as
amended by Public Law 110-5) is amended by adding after the
second proviso: ``: Provided further, That paragraph (2)
under such heading in Public Law 109-115 (119 Stat. 2441)
shall be funded at $149,300,000, but additional section 8
tenant protection rental assistance costs may be funded in
2007 by using unobligated balances, notwithstanding the
purposes for which such amounts were appropriated, including
recaptures and carryover, remaining from funds appropriated
to the Department of Housing and Urban Development under this
heading, the heading ``Annual Contributions for Assisted
Housing'', the heading ``Housing Certificate Fund'', and the
heading ``Project-Based Rental Assistance'' for fiscal year
2006 and prior fiscal years: Provided further, That paragraph
(3) under such heading in Public Law 109-115 (119 Stat. 2441)
shall be funded at $47,500,000: Provided further, That
paragraph (4) under such heading in Public Law 109-115 (119
Stat. 2441) shall be funded at $5,900,000: Provided further,
That paragraph (5) under such heading in Public Law 109-115
(119 Stat. 2441) shall be funded at $1,281,100,000, of which
$1,251,100,000 shall be allocated for the calendar year 2007
funding cycle on a pro rata basis to public housing agencies
based on the amount public housing agencies were eligible to
receive in calendar year 2006, and of which up to $30,000,000
shall be available to the Secretary to allocate to public
housing agencies that need additional funds to administer
their section 8 programs, with up to $20,000,000 to be for
fees associated with section 8 tenant protection rental
assistance''.
Sec. 4003. The dates for subsidy reductions and
demonstrations for discontinuance of reductions in operating
subsidy under the new operating fund formula, pursuant to HUD
regulations at 24 CFR 990.230, shall be moved forward so that
the first demonstration date for asset management compliance
shall be September 1, 2007, and reductions in subsidy for
calendar year 2007 shall be limited to the 5 percent amount
referred to in such regulations. Any public housing agency
that has filed information to demonstrate compliance on or
prior to April 15, 2007 shall be permitted to re-file the
same or different information to demonstrate such compliance
on or before September 1, 2007.

CHAPTER 11

GENERAL PROVISIONS--THIS ACT

AVAILABILITY OF FUNDS

Sec. 4101. No part of any appropriation contained in this
Act shall remain available for obligation beyond the current
fiscal year unless expressly so provided herein.

[[Page 7872]]

EMERGENCY DESIGNATION FOR TITLE I

Sec. 4102. Amounts provided in title I of this Act are
designated as emergency requirements pursuant to section 402
of H. Con. Res. 95 (109th Congress), the concurrent
resolution on the budget for fiscal year 2006.

EMERGENCY DESIGNATION FOR TITLE II

Sec. 4103. Amounts provided in title II of this Act are
designated as emergency requirements pursuant to section 402
of H. Con. Res. 95 (109th Congress), the concurrent
resolution on the budget for fiscal year 2006.
______

SA 789. Mr. GREGG submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 11, line 3, strike ``$10,589,272,000'' and insert
``$12,588,272,000''.
On page 11, line 24, strike ``$1,703,389,000'' and insert
``$3,896,389,000''.
Strike title IV.
______

SA 790. Mr. GREGG submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

Strike title IV and insert the following:

TITLE IV--MINE RESISTANT AMBUSH PROTECTION FOR AMERICAN TROOPS

SEC. 401. SHORT TITLE.

This title may be cited as the ``Mine Resistant Ambush
Protection for American Troops Act of 2007''.

PROCUREMENT

Other Procurement, Army

For an additional amount for ``Other Procurement, Army'',
$1,999,000,000, to remain available until September 30, 2009.

Procurement, Marine Corps

For an additional amount for ``Procurement, Marine Corps'',
$2,193,000,000, to remain available until September 30, 2009.

SEC. 402. CONSTRUCTION.

(a) Emergency Designation.--The amounts provided under this
title are designated as an emergency requirement pursuant to
section 402 of H. Con. Res. 95 (109th Congress).
(b) Supplement Not Supplant.--The amounts provided in this
title for the purposes so provided are in addition to any
other amounts provided in this Act for such purposes.
______

SA 791. Mr. BAYH submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At end of chapter 3 of title I, insert the following:

SEC. 1316. REPORT ON CONTINGENCY PLANNING ON IRAQ.

(a) Report Required.--Not later than 60 days after the date
of the enactment of this Act, the President shall submit to
Congress a report on United States contingency planning for
Iraq.
(b) Elements.--The report required by subsection (a) shall
include the following:
(1) Proposed United States strategic military and policy
options if the current United States plan for Iraq fails to
achieve its stated objective of transitioning Iraq to a
stable democracy and having Iraq become an ally in the war on
terror, including options on the following:
(A) Prevent the emergence of terrorist safe-havens in Iraq.
(B) An Iraq that is not allied with or a significant
supporter of Iran.
(2) The number and type of United States military forces
needed for each option proposed under paragraph (1),
including the equipment required for each such option.
(3) An estimate of the cost and schedule for each option
proposed under paragraph (1).
(4) The key assumptions underlying each option proposed
under paragraph (1).
(c) Form.--The report required by subsection (a) shall be
submitted in unclassified form, but may include a classified
annex.
______

SA 792. Mr. BAYH submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

REPORT ON CLOSING THE PREDATOR AND GLOBAL HAWK UAV PRODUCTION GAP

(a) Report Required.--Not later than 30 days after the date
of the enactment of this Act, die Secretary of Defense shall
report to the Congress no later than 90 days after enactment
of this legislation on how the Department of Defense will
rapidly reduce the gap in available Predator unmanned aerial
vehicles and associated orbits with military and intelligence
mission requirements.
(b) Elements.--The report and proposed plan shall include
the following elements:
(1) What is the shortage of available Predators, Global
Hawks and orbits to stated Department of Defense requirements
in the field, including for U.S. forces in Iraq, Afghanistan,
Colombia, East, South and Southeast Asia?
(2) What is the timeline for fully closing this shortage?
(3) Has the Department of Defense requested all necessary
funds to keep Predator, Global Hawk and associated orbit
production lines running at maximum capacity until the
shortage is fully closed? If not, why not?
(4) What steps do you recommend to close this gap?
(5) Does having a sole source producer delay meeting
Predator production and procurement timelines? If so, how can
we best open up the competition?
(6) Please provide the five year Predator, Global Hawk and
orbit requirement? Do you foresee long-endurance UAVs, armed
and for intelligence, surveillance and reconnaissance
purposes, being a long-term and growing requirement for the
United States Armed Forces?
(c) Form.--The report required by subsection (a) shall be
submitted in unclassified form, but may include a classified
annex.
______

SA 793. Ms. KLOBUCHAR submitted an amendment intended to be proposed
by him to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:
Sec. __. In providing any grants for small and rural
community technical and compliance assistance under the
Fiscal Year 2007 Operating Plan of the Environmental
Protection Agency, the Administrator of the Environmental
Protection Agency shall give priority to small systems and
qualified (as determined by the Administrator) organizations
that have the most need (or a majority of need) from small
communities in each State.
______

SA 794. Mr. SALAZAR submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

On page 56, after line 18, add the following:
Sec. 1713. (a) Quarterly Reports on Effects of
Participation in the Global War on Terrorism on Veterans and
the Department of Veterans Affairs.--
(1) Quarterly reports required.--Not later than 90 days
after the date of the enactment of this Act, and every fiscal
year quarter thereafter, the Secretary of Veterans Affairs
shall submit to the appropriate committees of Congress a
report on the effects of participation in the Global War on
Terrorism on veterans and on the Department of Veterans
Affairs.
(2) Scope of report.--Each report required by paragraph (1)
shall provide the information specified in paragraph (3),
current as of the date of such report, separately for each of
the following periods:
(A) The period of the fiscal year quarter for which such
report is submitted.
(B) The period beginning on October 1, 2001, and ending on
the last day of the most recent fiscal year completed on or
before the date of such report, with such information set
forth--
(i) in aggregate over such period; and
(ii) separately for each complete fiscal year that falls
within such period.
(3) Covered information.--The information specified in this
paragraph for a report under paragraph (1) is information on
the provision to veterans of the Global War on Terrorism of
benefits and services under the laws administered by the
Secretary of Veterans Affairs as follows:
(A) Personal information.--Aggregated personal information
on veterans of the Global War on Terrorism, including--
(i) the number of such veterans by race;
(ii) the number of such veterans by sex;
(iii) the number of such veterans by age;
(iv) the number of such veterans by marital status (whether
married, single, separated, or divorced); and
(v) the number of such veterans by residence (by State,
territory, or country).
(B) Information on military service.--Aggregated
information on the military service of veterans of the Global
War on Terrorism, including information on the following:
(i) In the case of all veterans of the Global War on
Terrorism--

(I) the number of such veterans by Armed Force, and by
component of Armed Force, in which such veterans served in
the Global War on Terrorism; and
(II) the number of such veterans by duty status in which
such veterans served in the Global War on Terrorism,
including, in the case of veterans who were members of a
reserve component of the Armed Forces, the

[[Page 7873]]

number of such veterans who were members of the National
Guard.

(ii) In the case of veterans of the Global War on Terrorism
who served only in Operation Enduring Freedom--

(I) the number of such veterans by Armed Force, and by
component of Armed Force, in which such veterans served in
Operation Enduring Freedom; and
(II) the number of such veterans by duty status in which
such veterans served in Operation Enduring Freedom,
including, in the case of veterans who were members of a
reserve component of the Armed Forces, the number of such
veterans who were members of the National Guard.

(iii) In the case of veterans of the Global War on
Terrorism who served only in Operation Iraqi Freedom--

(I) the number of such veterans by Armed Force, and by
component of Armed Force, in which such veterans served in
Operation Iraqi Freedom; and
(II) the number of such veterans by duty status in which
such veterans served in Operation Iraqi Freedom, including,
in the case of veterans who were members of a reserve
component of the Armed Forces, the number of such veterans
who were members of the National Guard.

(iv) In the case of veterans of the Global War on Terrorism
who served in both Operation Enduring Freedom and Operation
Iraqi Freedom--

(I) the number of such veterans by Armed Force, and by
component of Armed Force, in which such veterans served in
each of Operation Enduring Freedom and Operation Iraqi
Freedom; and
(II) the number of such veterans by duty status in which
such veterans served in Operation Enduring Freedom or
Operation Iraqi Freedom, including, in the case of veterans
who were members of a reserve component of the Armed Forces,
the number of such veterans who were members of the National
Guard.

(v) In the case of veterans of the Global War on Terrorism
who served in neither Operation Enduring Freedom nor
Operation Iraqi Freedom--

(I) the number of such veterans by Armed Force, and by
component of Armed Force, in which such veterans served in
the Armed Forces during the Global War on Terrorism; and
(II) the number of such veterans by duty status in which
such veterans served in the Armed Forces during the Global
War on Terrorism, including, in the case of veterans who were
members of a reserve component of the Armed Forces, the
number of such veterans who were members of the National
Guard.

(vi) The number of veterans of the Global War on Terrorism
by deployment location in the Global War on Terrorism,
including the number of such veterans deployed to each
location specified in subsection (c)(2).
(vii) The deployment history of veterans during the Global
War on Terrorism, including--

(I) the number of veterans who were deployed more than
once; and
(II) for each number of veterans who were deployed twice,
three times, four times, or more than four times, the number
of such veterans who were deployed each such number of times.

(viii) The number of veterans of the Global War on
Terrorism by grade upon completion of military service in the
Global War on Terrorism.
(ix) The medical evacuation history of veterans during the
Global War on Terrorism, including--

(I) the number of veterans who were evacuated once or more
during the Global War on Terrorism; and
(II) for each number of veterans who were evacuated twice,
three times, four times, or more than four times, the number
of such veterans who were evacuated each such number of
times.

(C) Health, counseling, and related benefits.--Aggregated
information on the health, counseling, and related benefits
and services provided by the Department of Veterans Affairs
to veterans of the Global War on Terrorism, including
information on the enrollment of such veterans in the patient
enrollment system under section 1705 of title 38, United
States Code, by priority of enrollment status.
(D) Compensation, pension, and other benefits.--Aggregated
information on the compensation, pension, and other benefits
and services provided by the Department of Veterans Affairs
to veterans of the Global War on Terrorism, including
information on the following:
(i) The claims of such veterans for compensation under
chapter 11 of title 38, United Stated Code, including--

(I) the number of claims received;
(II) the number of claims granted;
(III) the number of claims denied; and
(IV) the number of claims pending.

(ii) The amount of compensation paid to such veterans,
stated as an average monthly amount for each of the periods
covered by such report and as a total amount for both such
periods.
(iii) The claims for dependency and indemnity compensation
under chapter 13 of title 38, United States Code, with
respect to such veterans, including--

(I) the number of claims received;
(II) the number of claims granted;
(III) the number of claims denied; and
(IV) the number of claims pending.

(iv) The amount of dependency and indemnity compensation
paid with respect to such veterans, stated as an average
monthly amount for the periods covered by such report and as
a total amount for such periods.
(v) The claims for pension under chapter 15 of title 38,
United States Code, for or with respect to such veterans,
including--

(I) the number of claims received;
(II) the number of claims granted;
(III) the number of claims denied; and
(IV) the number of claims pending.

(vi) The education benefits provided to or with respect to
such veterans or other individuals under chapter 30, 32, or
35 of title 38, United States Code, or chapter 1606 or 1607
of title 10, United States, including--

(I) the number of veterans or other individuals provided
such benefits (set forth by chapter under which provided);
and
(II) the amount of such benefits (set forth by chapter
under which provided).

(vii) The vocational rehabilitation benefits and services
provided to such veterans, including--

(I) the number of veterans submitting applications for such
benefits or services;
(II) the number of applications granted;
(III) the number of applications denied;
(IV) the number of applications pending; and
(V) the type and amount of such benefits and services
provided.

(viii) The housing and small business loan guaranty
benefits provided to such veterans under chapter 37 of title
38, United States Code, and other provisions of law,
including--

(I) the number of veterans submitting applications for such
benefits;
(II) the type, and number and amount by type, of such
benefits provided; and
(III) the number and amount by type of loans in default.

(ix) The specially adapted housing assistance provided to
such veterans under chapter 21 of title 38, United States
Code, including the type and amount of assistance provided.
(x) The insurance benefits provided to or with respect to
such veterans under chapter 19 of title 38, United States
Code, including the amount of benefits provided under each
type of insurance offered by the Secretary.
(E) Burial and cemetery benefits.--Aggregated information
on the burial and cemetery benefits provided by the
Department of Veterans Affairs with respect to veterans of
the Global War on Terrorism, including information on the
following:
(i) The number of burials in a cemetery of the National
Cemetery System or Arlington National Cemetery.
(ii) The number of flags furnished under section 2301 of
title 38, United States Code.
(iii) The amount of burial allowances paid under section
2302 of title 38, United States Code.
(iv) The amount of plot allowances paid under section 2303
of title 38, United States Code.
(v) The number of headstones, markers, and burial
receptacles furnished under section 2306 of title 38, United
States Code, and the cost of furnishing such headstones,
markers, and receptacles.
(vi) The amount of burial and funeral expenses paid under
section 2307 of title 38, United States Code, for veterans
who die from a service-connected disability.
(vii) The costs of the transportation of the remains of
deceased veterans to a national cemetery under section 2308
of title 38, United States Code.
(F) Service-connected status.--A description of the way in
which the Secretary of Veterans Affairs distinguishes between
service-connected disabilities and disabilities that are not
service-connected.
(4) Protection of identities.--The Secretary shall take
appropriate actions in preparing and submitting reports under
this subsection to ensure that no personally identifying
information on any particular veteran is included or
otherwise improperly released in such reports.
(5) Definitions.--In this subsection:
(A) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(i) the Committees on Armed Services, Appropriations, and
Veterans' Affairs of the Senate; and
(ii) the Committees on Armed Services, Appropriations, and
Veterans' Affairs of the House of Representatives.
(B) Veteran of the global war on terrorism.--The term
``veteran of the Global War on Terrorism'' means a veteran of
the Global War on Terrorism who served on active military,
naval, or air service during the Global War on Terrorism in a
location specified in subsection (c)(2).
(b) Quarterly Reports on Effects of Participation in the
Global War on Terrorism on Members of the Armed Forces and
the Department of Defense.--
(1) Quarterly reports required.--Not later than 90 days
after the date of the enactment of this Act, and every 90
days thereafter, the Secretary of Defense shall submit

[[Page 7874]]

to the congressional defense committees a report on the
effects of participation in the Global War on Terrorism on
the members of the Armed Forces and on the Department of
Defense.
(2) Scope of report.--Each report required by paragraph (1)
shall include the information specified in paragraph (3),
current as of the date of such report, separately for each of
the following periods:
(A) The 90-day period ending on the date of such report.
(B) The period beginning on September 11, 2001, and ending
on the date of such report.
(3) Covered information.--The information specified in this
paragraph for a report under paragraph (1) is information on
the participation of members of the Armed Forces in the
Global War on Terrorism as follows:
(A) Personal information.--Aggregated personal information
on members of the Armed Forces participating in the Global
War on Terrorism, including--
(i) the number of such members by race;
(ii) the number of such members by sex;
(iii) the number of such members by age;
(iv) the number of such members by marital status (whether
married, single, separated, or divorced); and
(v) the number of such members by home of record (by State
or territory).
(B) Information on military service.--Aggregated
information on the military service of members of the Armed
Forces participating in the Global War on Terrorism,
including information on the following:
(i) The number of such members by Armed Force, and by
component of Armed Force, in which such members are serving
in the Global War on Terrorism.
(ii) The number of such members by duty status in which
such members are serving in the Global War on Terrorism,
including, in the case of members who are members of a
reserve component of the Armed Forces, the number of such
members who are members of the National Guard.
(iii) The number of such members by deployment status in
which such members are serving in the Global War on
Terrorism, including the number of such members who--

(I) have served only in Operation Enduring Freedom;
(II) have served only in Operation Iraqi Freedom;
(III) have served in both Operation Enduring Freedom and
Operation Iraqi Freedom; or
(IV) have served in neither Operation Enduring Freedom nor
Operation Iraqi Freedom.

(iv) The number of such members by deployment location in
the Global War on Terrorism, including the number of such
members deployed to each location specified in subsection
(c)(2).
(v) The deployment history of such members during the
Global War on Terrorism, including--

(I) the number of members who have been deployed more than
once; and
(II) for each number of members who have been deployed
twice, three times, four times, or more than four times, the
number of such members who have been deployed each such
number of times.

(vi) The number of such members by grade.
(vii) The medical evacuation history of such members during
the Global War on Terrorism, including--

(I) the number of members who have been evacuated once or
more during the Global War on Terrorism; and
(II) for each number of members who have been evacuated
twice, three times, four times, or more than four times, the
number of such members who have been evacuated each such
number of times.

(viii) The number of such members whose enlistment or
period of obligated service has been extended, or whose
eligibility for retirement has been suspended, during the
Global War on Terrorism under a provision of law (commonly
referred to as a ``stop-loss authority'') authorizing the
President to extend an enlistment or period of obligated
service, or suspend eligibility for retirement, of a member
of the Armed Forces in a time of war or national emergency
declared by Congress or the President, including--

(I) the number of such members who have been subject to the
exercise of such authority; and
(II) for each number of times being subject to the exercise
of such authority, the number of such members who have been
so subject to such authority each such number of times.

(ix) The number of such members who have been discharged or
released from the Armed Forces, including, for each category
of condition of discharge, the number of members discharged
under such category.
(C) Information on administration of armed forces.--
Aggregated information on the administration of the Armed
Forces participating in of the Global War on Terrorism,
including information on the following:
(i) The number of members of the reserve components of the
Armed Forces called or ordered to active duty for service in
the Global War on Terrorism, including--

(I) the number of members of the National Guard and the
number of Reserves so ordered;
(II) for each number of times of being so called or ordered
to active duty, the number of such members who have been so
called or order to active duty each such number of times; and
(III) the average number times being so called or ordered
to active duty among all members of the National Guard and
Reserve who have been so called or ordered to active duty.

(ii) The number of members of the Armed Forces who have
been subject to medical evacuation once or more in the Global
War on Terrorism.
(iii) The number of members of the Armed Forces whose
enlistment or period of obligated service has been extended,
or whose eligibility for retirement has been suspended, for
purposes of the Global War on Terrorism under a provision of
law (commonly referred to as a ``stop-loss authority'')
authorizing the President to extend an enlistment or period
of obligated service, or suspend eligibility for retirement,
of a member of the Armed Forces in a time of war or national
emergency declared by Congress or the President.
(iv) The number of members of the Armed Forces
participating in the Global War on Terrorism who have been
discharged or released from the Armed Forces, including--

(I) the military status of such members at the time of
discharge or release; and
(II) the nature of such discharge or release, including
less than honorable discharge for drug abuse, alcohol abuse,
domestic violence, discipline problems, and other war-related
reintegration problems.

(v) The number of members of the Armed Forces described in
subparagraph (H) who have had their discharge upgraded, set
forth by deployment status in the Global War on Terrorism and
by nature of discharge upon discharge.
(4) Definitions.--In this subsection:
(A) Congressional defense committees.--The term
``congressional defense committees'' means--
(i) the Committees on Armed Services and Appropriations of
the Senate; and
(ii) the Committees on Armed Services and Appropriations of
the House of Representatives.
(B) Member of the armed forces participating in the global
war on terrorism.--The term ``member of the Armed Forces
participating in the Global War on Terrorism'' means a member
of the Armed Forces who served on active duty in the Global
War on Terrorism at a location specified in section (c)(2).
(c) Definitional Matters.--
(1) General definition of global war on terrorism.--In this
section, the term ``Global War on Terrorism'' means the
period beginning on September 11, 2001, and ending on the
date thereafter prescribed by Presidential proclamation or by
law.
(2) Specification of locations of global war on
terrorism.--For purposes of this section, the geographic
location of the Global War on Terrorism shall be the
locations (including the airspace above) as follows:
Afghanistan, Algeria, the Arabian Sea, Armenia, Bab el
Mandeb, Bahrain, Bulgaria, Cyprus, Diego Garcia (United
Kingdom Indian Ocean Territory), Djibouti, Egypt, Eritrea,
Ethiopia, the Republic of Georgia, Greece, Guantanamo Bay,
Cuba, the Gulf of Aden, the Gulf of Aqaba, the Gulf of Oman,
the Gulf of Suez, Indonesia, the Ionian Sea, Iran, Iraq,
Israel, Japan, Jordan, Kazakhstan, Kenya, Kyrgyzstan, Kuwait,
Lebanon, the Mediterranean Sea, Oman, Pakistan, the Pentagon
Reservation, Virginia (but only on September 11, 2001), the
Persian Gulf, the Philippines, Qatar, the Red Sea, Romania,
Saudi Arabia, Somalia, the Spratley Islands, the Strait of
Hormuz, the Suez Canal, Syria, Tajikistan, Turkey,
Turkmenistan, the United Arab Emirates, Uzbekistan, Yemen,
and any other location specified for purposes of this Act by
the Secretary of Veterans Affairs in consultation with the
Secretary of Defense.
______

SA 795. Mr. THUNE submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the end of chapter 3 of title I, add insert the
following:

SEC. 1316. ADDITIONAL AMOUNT FOR OPERATION AND MAINTENANCE,
AIR FORCE.

The amount appropriated or otherwise made available by this
chapter under the heading ``Operation and Maintenance, Air
Force'' is hereby increased by $222,000,000: Provided, that
the amount provided under this heading is designated as an
emergency requirement pursuant to section 402 of H. Con. Res.
95 (109th Congress).
______

SA 796. Mr. REID submitted an amendment intended to be proposed by
him to the bill H.R. 1591, making emergency supplemental appropriations
for the fiscal year ending September 30, 2007, and for other purposes;
which was ordered to lie on the table; as follows:

At the end of title III, insert the following:

[[Page 7875]]

CLARIFICATIONS

Sec. __. The Consolidated Appropriations Act, 2005, is
amended in the matter under the heading ``community
development fund (including transfers of funds)'', in title
II, by striking ``equipment'' and inserting ``renovation and
construction''. The Transportation, Treasury, Housing and
Urban Development, the Judiciary, the District of Columbia,
and Independent Agencies Appropriations Act, 2006 is amended
in the matter under the heading ``community development fund
(including transfers of funds)'', in title III, by adding at
the end the following: ``Funds made available under this
heading for a Small Business Development Center shall be used
for revitalization costs at the College of Agriculture,
Biotechnology, and Natural Resources at the institution
involved.''.
______

SA 797. Mr. GRASSLEY submitted an amendment intended to be proposed
by him to the bill H.R. 1591, making emergency supplemental
appropriations for the fiscal year ending September 30, 2007, and for
other purposes; which was ordered to lie on the table; as follows:

At the appropriate place insert the following:

V--FAIR MINIMUM WAGE AND TAX RELIEF

Subtitle A--Fair Minimum Wage

SEC. 500. SHORT TITLE.

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

SEC. 501. MINIMUM WAGE.

SEC. 502. APPLICABILITY OF MINIMUM WAGE TO THE COMMONWEALTH
OF THE NORTHERN MARIANA ISLANDS.

Subtitle B--Small Business Tax Incentives

SEC. 510. SHORT TITLE; AMENDMENT OF CODE.

PART I--SMALL BUSINESS TAX RELIEF PROVISIONS

Subpart A--General Provisions

SEC. 511. EXTENSION OF INCREASED EXPENSING FOR SMALL
BUSINESSES.

Section 179 (relating to election to expense certain
depreciable business assets) is amended by striking ``2010''
each place it appears and inserting ``2011''.

(E)(ix)...........................................................39''.

(5) Effective date.--The amendments made by this subsection
shall apply to property placed in service after the date of
the enactment of this Act.

SEC. 513. CLARIFICATION OF CASH ACCOUNTING RULES FOR SMALL
BUSINESS.

[[Page 7876]]

``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, by substituting `calendar year 2007' for
`calendar year 1992' in subparagraph (B) thereof.
``If any amount as adjusted under this subparagraph is not
a multiple of $100,000, such amount shall be rounded to the
nearest multiple of $100,000.''.
(b) Clarification of Inventory Rules for Small Business.--
(1) In general.--Section 471 (relating to general rule for
inventories) is amended by redesignating subsection (c) as
subsection (d) and by inserting after subsection (b) the
following new subsection:
``(c) Small Business Taxpayers Not Required To Use
Inventories.--
``(1) In general.--A qualified taxpayer shall not be
required to use inventories under this section for a taxable
year.
``(2) Treatment of taxpayers not using inventories.--If a
qualified taxpayer does not use inventories with respect to
any property for any taxable year beginning after the date of
the enactment of this subsection, such property shall be
treated as a material or supply which is not incidental.
``(3) Qualified taxpayer.--For purposes of this subsection,
the term `qualified taxpayer' means--
``(A) any eligible taxpayer (as defined in section
446(g)(2)), and
``(B) any taxpayer described in section 448(b)(3).''.
(2) Conforming amendments.--
(A) Subpart D of part II of subchapter E of chapter 1 is
amended by striking section 474.
(B) The table of sections for subpart D of part II of
subchapter E of chapter 1 is amended by striking the item
relating to section 474.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. 514. EXTENSION AND MODIFICATION OF COMBINED WORK
OPPORTUNITY TAX CREDIT AND WELFARE-TO-WORK
CREDIT.

(a) Extension.--Section 51(c)(4)(B) (relating to
termination) is amended by striking ``2007'' and inserting
``2012''.
(b) Increase in Maximum Age for Designated Community
Residents.--
(1) In general.--Paragraph (5) of section 51(d) is amended
to read as follows:
``(5) Designated community residents.--
``(A) In general.--The term `designated community resident'
means any individual who is certified by the designated local
agency--
``(i) as having attained age 18 but not age 40 on the
hiring date, and
``(ii) as having his principal place of abode within an
empowerment zone, enterprise community, renewal community, or
rural renewal county.
``(B) Individual must continue to reside in zone,
community, or county.--In the case of a designated community
resident, the term `qualified wages' shall not include wages
paid or incurred for services performed while the
individual's principal place of abode is outside an
empowerment zone, enterprise community, renewal community, or
rural renewal county.
``(C) Rural renewal county.--For purposes of this
paragraph, the term `rural renewal county' means any county
which--
``(i) is outside a metropolitan statistical area (defined
as such by the Office of Management and Budget), and
``(ii) during the 5-year periods 1990 through 1994 and 1995
through 1999 had a net population loss.''.
(2) Conforming amendment.--Subparagraph (D) of section
51(d)(1) is amended to read as follows:
``(D) a designated community resident,''.
(c) Clarification of Treatment of Individuals Under
Individual Work Plans.--Subparagraph (B) of section 51(d)(6)
(relating to vocational rehabilitation referral) is amended
by striking ``or'' at the end of clause (i), by striking the
period at the end of clause (ii) and inserting ``, or'', and
by adding at the end the following new clause:
``(iii) an individual work plan developed and implemented
by an employment network pursuant to subsection (g) of
section 1148 of the Social Security Act with respect to which
the requirements of such subsection are met.''.
(d) Treatment of Disabled Veterans Under the Work
Opportunity Tax Credit.--
(1) Disabled veterans treated as members of targeted
group.--
(A) In general.--Subparagraph (A) of section 51(d)(3)
(relating to qualified veteran) is amended by striking
``agency as being a member of a family'' and all that follows
and inserting ``agency as--
``(i) being a member of a family receiving assistance under
a food stamp program under the Food Stamp Act of 1977 for at
least a 3-month period ending during the 12-month period
ending on the hiring date, or
``(ii) entitled to compensation for a service-connected
disability incurred after September 10, 2001.''.
(B) Definitions.--Paragraph (3) of section 51(d) is amended
by adding at the end the following new subparagraph:
``(C) Other definitions.--For purposes of subparagraph (A),
the terms `compensation' and `service-connected' have the
meanings given such terms under section 101 of title 38,
United States Code.''.
(2) Increase in amount of wages taken into account for
disabled veterans.--Paragraph (3) of section 51(b) is
amended--
(A) by inserting ``($12,000 per year in the case of any
individual who is a qualified veteran by reason of subsection
(d)(3)(A)(ii))'' before the period at the end, and
(B) by striking ``ONLY FIRST $6,000 of'' in the heading and
inserting ``LIMITATION ON''.
(e) Effective Date.--The amendments made by this section
shall apply to individuals who begin work for the employer
after the date of the enactment of this Act, in taxable years
ending after such date.

SEC. 515. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

(a) Employment Taxes.--Chapter 25 (relating to general
provisions relating to employment taxes) is amended by adding
at the end the following new section:

``SEC. 3511. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS.

[[Page 7877]]

customer which bears a relationship to a certified
professional employer organization described in section
267(b) or 707(b). For purposes of the preceding sentence,
such sections shall be applied by substituting `10 percent'
for `50 percent'.
``(f) Special Rule for Certain Individuals.--For purposes
of the taxes imposed under this subtitle, an individual with
net earnings from self-employment derived from the customer's
trade or business is not a work site employee with respect to
remuneration paid by a certified professional employer
organization.
``(g) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(b) Certified Professional Employer Organization Defined.--
Chapter 79 (relating to definitions) is amended by adding at
the end the following new section:

``SEC. 7705. CERTIFIED PROFESSIONAL EMPLOYER ORGANIZATIONS
DEFINED.

[[Page 7878]]

with respect to whom a work site employee performs services
shall be the employer for purposes of reporting under this
section and the certified professional employer organization
shall furnish to the customer any information necessary to
complete such reporting no later than such time as the
Secretary shall prescribe.''.
(d) Clerical Amendments.--
(1) The table of sections for chapter 25 is amended by
adding at the end the following new item:

``Sec. 3511. Certified professional employer organizations''.

(2) The table of sections for chapter 79 is amended by
inserting after the item relating to section 7704 the
following new item:

``Sec. 7705. Certified professional employer organizations defined''.

SEC. 516. ACCELERATED DEPRECIATION FOR INVESTMENT IN HIGH
OUT-MIGRATION COUNTIES.

(a) In General.--Section 168 (relating to accelerated cost
recovery system) is amended by adding at the end the
following new subsection:
``(m) Rural Investment Property.--
``(1) In general.--For purposes of subsection (a), the
applicable recovery period for qualified rural investment
property shall be determined in accordance with the table
contained in paragraph (2) in lieu of the table contained in
subsection (c).
``(2) Applicable recovery period for rural investment
property.--For purposes of paragraph (1)--
The applicable
`` ``In the case of: recovery period is:
3-year property.................................................2 years
5-year property.................................................3 years
7-year property.................................................4 years
10-year property................................................6 years
15-year property................................................9 years
20-year property...............................................12 years
Nonresidential real property..................................22 years.
``(3) Qualified rural investment property defined.--For
purposes of this subsection--
``(A) In general.--The term `qualified rural investment
property' means property which is property described in the
table in paragraph (2) and which is--
``(i) used by the taxpayer predominantly in the active
conduct of a trade or business within a high out-migration
county,
``(ii) not used or located outside such county on a regular
basis,
``(iii) not acquired (directly or indirectly) by the
taxpayer from a person who is related to the taxpayer (within
the meaning of section 465(b)(3)(C)), and
``(iv) not property (or any portion thereof) placed in
service for purposes of operating any racetrack or other
facility used for gambling.
``(B) High out-migration county.--The term `high out-
migration county' means any county which--
``(i) is outside a metropolitan statistical area (defined
as such by the Office of Management and Budget), and
``(ii) during the 5-year periods 1990 through 1994 and 1995
through 1999 had a net population loss.
``(4) Termination.--This subsection shall not apply to
property placed in service after March 31, 2008.''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after the date of
the enactment of this Act, the original use of which begins
with the taxpayer after such date.

SEC. 517. EXTENSION OF INCREASED EXPENSING FOR QUALIFIED
SECTION 179 GULF OPPORTUNITY ZONE PROPERTY.

Paragraph (2) of section 1400N(e) (relating to qualified
section 179 Gulf Opportunity Zone property) is amended--
(1) by striking ``this subsection, the term'' and inserting
``this subsection--
``(A) In general.--The term'', and
(2) by adding at the end the following new subparagraph:
``(B) Extension for certain property.--In the case of
property substantially all of the use of which is in one or
more specified portions of the GO Zone (as defined by
subsection (d)(6)), such term shall include section 179
property (as so defined) which is described in subsection
(d)(2), determined--
``(i) without regard to subsection (d)(6), and
``(ii) by substituting `2008' for `2007' in subparagraph
(A)(v) thereof.''.

Subpart B--Subchapter S Provisions

SEC. 521. CAPITAL GAIN OF S CORPORATION NOT TREATED AS
PASSIVE INVESTMENT INCOME.

SEC. 522. TREATMENT OF BANK DIRECTOR SHARES.

``(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.--

[[Page 7879]]

``For treatment of certain distributions with respect to restricted
bank director stock, see section 1368(f)''.

SEC. 523. SPECIAL RULE FOR BANK REQUIRED TO CHANGE FROM THE
RESERVE METHOD OF ACCOUNTING ON BECOMING S
CORPORATION.

SEC. 524. TREATMENT OF THE SALE OF INTEREST IN A QUALIFIED
SUBCHAPTER S SUBSIDIARY.

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

SEC. 525. ELIMINATION OF ALL EARNINGS AND PROFITS
ATTRIBUTABLE TO PRE-1983 YEARS FOR CERTAIN
CORPORATIONS.

SEC. 526. EXPANSION OF QUALIFYING BENEFICIARIES OF AN
ELECTING SMALL BUSINESS TRUST.

SEC. 527. DEDUCTIBILITY OF INTEREST EXPENSE ON INDEBTEDNESS
INCURRED BY AN ELECTING SMALL BUSINESS TRUST TO
ACQUIRE S CORPORATION STOCK.

PART II--REVENUE PROVISIONS

SEC. 531. MODIFICATION OF EFFECTIVE DATE OF LEASING
PROVISIONS OF THE AMERICAN JOBS CREATION ACT OF
2004.

SEC. 532. APPLICATION OF RULES TREATING INVERTED CORPORATIONS
AS DOMESTIC CORPORATIONS TO CERTAIN
TRANSACTIONS OCCURRING AFTER MARCH 20, 2002.

SEC. 533. DENIAL OF DEDUCTION FOR PUNITIVE DAMAGES.

``SEC. 91. PUNITIVE DAMAGES COMPENSATED BY INSURANCE OR
OTHERWISE.

``Gross income shall include any amount paid to or on
behalf of a taxpayer as insurance or otherwise by reason of
the taxpayer's liability (or agreement) to pay punitive
damages.''.

[[Page 7880]]

(2) Reporting requirements.--Section 6041 (relating to
information at source) is amended by adding at the end the
following new subsection:
``(h) Section To Apply to Punitive Damages Compensation.--
This section shall apply to payments by a person to or on
behalf of another person as insurance or otherwise by reason
of the other person's liability (or agreement) to pay
punitive damages.''.
(3) Conforming amendment.--The table of sections for part
II of subchapter B of chapter 1 is amended by adding at the
end the following new item:

``Sec. 91. Punitive damages compensated by insurance or otherwise''.

(c) Effective Date.--The amendments made by this section
shall apply to damages paid or incurred on or after the date
of the enactment of this Act.

SEC. 534. DENIAL OF DEDUCTION FOR CERTAIN FINES, PENALTIES,
AND OTHER AMOUNTS.

``SEC. 6050W. INFORMATION WITH RESPECT TO CERTAIN FINES,
PENALTIES, AND OTHER AMOUNTS.

``(ii) the aggregate amount involved in all court orders
and agreements with respect to the violation, investigation,
or inquiry is $600 or more.
``(B) Adjustment of reporting threshold.--The Secretary may
adjust the $600 amount in subparagraph (A)(ii) as necessary
in order to ensure the efficient administration of the
internal revenue laws.
``(3) Time of filing.--The return required under this
subsection shall be filed not later than--
``(A) 30 days after the date on which a court order is
issued with respect to the suit or the date the agreement is
entered into, as the case may be, or
``(B) the date specified by the Secretary.
``(b) Statements To Be Furnished to Individuals Involved in
the Settlement.--Every person required to make a return under
subsection (a) shall furnish to each person who is a party to
the suit or agreement a written statement showing--
``(1) the name of the government or entity, and
``(2) the information supplied to the Secretary under
subsection (a)(1).
The written statement required under the preceding sentence
shall be furnished to the person at the same time the
government or entity provides the Secretary with the
information required under subsection (a).
``(c) Appropriate Official Defined.--For purposes of this
section, the term `appropriate official' means the officer or
employee having control of the suit, investigation, or
inquiry or the person appropriately designated for purposes
of this section.''.
(2) Conforming amendment.--The table of sections for
subpart B of part III of subchapter A of chapter 61 is
amended by inserting after the item relating to section 6050V
the following new item:

``Sec. 6050W. Information with respect to certain fines, penalties, and
other amounts''.

SEC. 535. REVISION OF TAX RULES ON EXPATRIATION OF
INDIVIDUALS.

(a) In General.--Subpart A of part II of subchapter N of
chapter 1 is amended by inserting after section 877 the
following new section:

``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.

[[Page 7881]]

``(i) this section (other than this paragraph and
subsection (i)) shall not apply to the expatriate, but
``(ii) in the case of property to which this section would
apply but for such election, the expatriate shall be subject
to tax under this title in the same manner as if the
individual were a United States citizen.
``(B) Requirements.--Subparagraph (A) shall not apply to an
individual unless the individual--
``(i) provides security for payment of tax in such form and
manner, and in such amount, as the Secretary may require,
``(ii) consents to the waiver of any right of the
individual under any treaty of the United States which would
preclude assessment or collection of any tax which may be
imposed by reason of this paragraph, and
``(iii) complies with such other requirements as the
Secretary may prescribe.
``(C) Election.--An election under subparagraph (A) shall
apply to all property to which this section would apply but
for the election and, once made, shall be irrevocable. Such
election shall also apply to property the basis of which is
determined in whole or in part by reference to the property
with respect to which the election was made.
``(b) Election To Defer Tax.--
``(1) In general.--If the taxpayer elects the application
of this subsection with respect to any property treated as
sold by reason of subsection (a), the payment of the
additional tax attributable to such property shall be
postponed until the due date of the return for the taxable
year in which such property is disposed of (or, in the case
of property disposed of in a transaction in which gain is not
recognized in whole or in part, until such other date as the
Secretary may prescribe).
``(2) Determination of tax with respect to property.--For
purposes of paragraph (1), the additional tax attributable to
any property is an amount which bears the same ratio to the
additional tax imposed by this chapter for the taxable year
solely by reason of subsection (a) as the gain taken into
account under subsection (a) with respect to such property
bears to the total gain taken into account under subsection
(a) with respect to all property to which subsection (a)
applies.
``(3) Termination of postponement.--No tax may be postponed
under this subsection later than the due date for the return
of tax imposed by this chapter for the taxable year which
includes the date of death of the expatriate (or, if earlier,
the time that the security provided with respect to the
property fails to meet the requirements of paragraph (4),
unless the taxpayer corrects such failure within the time
specified by the Secretary).
``(4) Security.--
``(A) In general.--No election may be made under paragraph
(1) with respect to any property unless adequate security is
provided to the Secretary with respect to such property.
``(B) Adequate security.--For purposes of subparagraph (A),
security with respect to any property shall be treated as
adequate security if--
``(i) it is a bond in an amount equal to the deferred tax
amount under paragraph (2) for the property, or
``(ii) the taxpayer otherwise establishes to the
satisfaction of the Secretary that the security is adequate.
``(5) Waiver of certain rights.--No election may be made
under paragraph (1) unless the taxpayer consents to the
waiver of any right under any treaty of the United States
which would preclude assessment or collection of any tax
imposed by reason of this section.
``(6) Elections.--An election under paragraph (1) shall
only apply to property described in the election and, once
made, is irrevocable. An election may be made under paragraph
(1) with respect to an interest in a trust with respect to
which gain is required to be recognized under subsection
(f)(1).
``(7) Interest.--For purposes of section 6601--
``(A) the last date for the payment of tax shall be
determined without regard to the election under this
subsection, and
``(B) section 6621(a)(2) shall be applied by substituting
`5 percentage points' for `3 percentage points' in
subparagraph (B) thereof.
``(c) Covered Expatriate.--For purposes of this section--
``(1) In general.--Except as provided in paragraph (2), the
term `covered expatriate' means an expatriate.
``(2) Exceptions.--An individual shall not be treated as a
covered expatriate if--
``(A) the individual--
``(i) became at birth a citizen of the United States and a
citizen of another country and, as of the expatriation date,
continues to be a citizen of, and is taxed as a resident of,
such other country, and
``(ii) has not been a resident of the United States (as
defined in section 7701(b)(1)(A)(ii)) during the 5 taxable
years ending with the taxable year during which the
expatriation date occurs, or
``(B)(i) the individual's relinquishment of United States
citizenship occurs before such individual attains age 18\1/
2\, and
``(ii) the individual has been a resident of the United
States (as so defined) for not more than 5 taxable years
before the date of relinquishment.
``(d) Exempt Property; Special Rules for Pension Plans.--
``(1) Exempt property.--This section shall not apply to the
following:
``(A) United states real property interests.--Any United
States real property interest (as defined in section
897(c)(1)), other than stock of a United States real property
holding corporation which does not, on the day before the
expatriation date, meet the requirements of section
897(c)(2).
``(B) Specified property.--Any property or interest in
property not described in subparagraph (A) which the
Secretary specifies in regulations.
``(2) Special rules for certain retirement plans.--
``(A) In general.--If a covered expatriate holds on the day
before the expatriation date any interest in a retirement
plan to which this paragraph applies--
``(i) such interest shall not be treated as sold for
purposes of subsection (a)(1), but
``(ii) an amount equal to the present value of the
expatriate's nonforfeitable accrued benefit shall be treated
as having been received by such individual on such date as a
distribution under the plan.
``(B) Treatment of subsequent distributions.--In the case
of any distribution on or after the expatriation date to or
on behalf of the covered expatriate from a plan from which
the expatriate was treated as receiving a distribution under
subparagraph (A), the amount otherwise includible in gross
income by reason of the subsequent distribution shall be
reduced by the excess of the amount includible in gross
income under subparagraph (A) over any portion of such amount
to which this subparagraph previously applied.
``(C) Treatment of subsequent distributions by plan.--For
purposes of this title, a retirement plan to which this
paragraph applies, and any person acting on the plan's
behalf, shall treat any subsequent distribution described in
subparagraph (B) in the same manner as such distribution
would be treated without regard to this paragraph.
``(D) Applicable plans.--This paragraph shall apply to--
``(i) any qualified retirement plan (as defined in section
4974(c)),
``(ii) an eligible deferred compensation plan (as defined
in section 457(b)) of an eligible employer described in
section 457(e)(1)(A), and
``(iii) to the extent provided in regulations, any foreign
pension plan or similar retirement arrangements or programs.
``(e) Definitions.--For purposes of this section--
``(1) Expatriate.--The term `expatriate' means--
``(A) any United States citizen who relinquishes
citizenship, and
``(B) any long-term resident of the United States who--
``(i) ceases to be a lawful permanent resident of the
United States (within the meaning of section 7701(b)(6)), or
``(ii) commences to be treated as a resident of a foreign
country under the provisions of a tax treaty between the
United States and the foreign country and who does not waive
the benefits of such treaty applicable to residents of the
foreign country.
``(2) Expatriation date.--The term `expatriation date'
means--
``(A) the date an individual relinquishes United States
citizenship, or
``(B) in the case of a long-term resident of the United
States, the date of the event described in clause (i) or (ii)
of paragraph (1)(B).
``(3) Relinquishment of citizenship.--A citizen shall be
treated as relinquishing United States citizenship on the
earliest of--
``(A) the date the individual renounces such individual's
United States nationality before a diplomatic or consular
officer of the United States pursuant to paragraph (5) of
section 349(a) of the Immigration and Nationality Act (8
U.S.C. 1481(a)(5)),
``(B) the date the individual furnishes to the United
States Department of State a signed statement of voluntary
relinquishment of United States nationality confirming the
performance of an act of expatriation specified in paragraph
(1), (2), (3), or (4) of section 349(a) of the Immigration
and Nationality Act (8 U.S.C. 1481(a)(1)-(4)),
``(C) the date the United States Department of State issues
to the individual a certificate of loss of nationality, or
``(D) the date a court of the United States cancels a
naturalized citizen's certificate of naturalization.
Subparagraph (A) or (B) shall not apply to any individual
unless the renunciation or voluntary relinquishment is
subsequently approved by the issuance to the individual of a
certificate of loss of nationality by the United States
Department of State.
``(4) Long-term resident.--The term `long-term resident'
has the meaning given to such term by section 877(e)(2).
``(f) Special Rules Applicable to Beneficiaries' Interests
in Trust.--
``(1) In general.--Except as provided in paragraph (2), if
an individual is determined under paragraph (3) to hold an
interest in a trust on the day before the expatriation date--
``(A) the individual shall not be treated as having sold
such interest,
``(B) such interest shall be treated as a separate share in
the trust, and

[[Page 7882]]

``(C)(i) such separate share shall be treated as a separate
trust consisting of the assets allocable to such share,
``(ii) the separate trust shall be treated as having sold
its assets on the day before the expatriation date for their
fair market value and as having distributed all of its assets
to the individual as of such time, and
``(iii) the individual shall be treated as having
recontributed the assets to the separate trust.
Subsection (a)(2) shall apply to any income, gain, or loss of
the individual arising from a distribution described in
subparagraph (C)(ii). In determining the amount of such
distribution, proper adjustments shall be made for
liabilities of the trust allocable to an individual's share
in the trust.
``(2) Special rules for interests in qualified trusts.--
``(A) In general.--If the trust interest described in
paragraph (1) is an interest in a qualified trust--
``(i) paragraph (1) and subsection (a) shall not apply, and
``(ii) in addition to any other tax imposed by this title,
there is hereby imposed on each distribution with respect to
such interest a tax in the amount determined under
subparagraph (B).
``(B) Amount of tax.--The amount of tax under subparagraph
(A)(ii) shall be equal to the lesser of--
``(i) the highest rate of tax imposed by section 1(e) for
the taxable year which includes the day before the
expatriation date, multiplied by the amount of the
distribution, or
``(ii) the balance in the deferred tax account immediately
before the distribution determined without regard to any
increases under subparagraph (C)(ii) after the 30th day
preceding the distribution.
``(C) Deferred tax account.--For purposes of subparagraph
(B)(ii)--
``(i) Opening balance.--The opening balance in a deferred
tax account with respect to any trust interest is an amount
equal to the tax which would have been imposed on the
allocable expatriation gain with respect to the trust
interest if such gain had been included in gross income under
subsection (a).
``(ii) Increase for interest.--The balance in the deferred
tax account shall be increased by the amount of interest
determined (on the balance in the account at the time the
interest accrues), for periods after the 90th day after the
expatriation date, by using the rates and method applicable
under section 6621 for underpayments of tax for such periods,
except that section 6621(a)(2) shall be applied by
substituting `5 percentage points' for `3 percentage points'
in subparagraph (B) thereof.
``(iii) Decrease for taxes previously paid.--The balance in
the tax deferred account shall be reduced--

[[Page 7883]]

``(j) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section.''.
(b) Inclusion in Income of Gifts and Bequests Received by
United States Citizens and Residents From Expatriates.--
Section 102 (relating to gifts, etc. not included in gross
income) is amended by adding at the end the following new
subsection:
``(d) Gifts and Inheritances From Covered Expatriates.--
``(1) Treatment of gifts and inheritances.--
``(A) In general.--Subsection (a) shall not exclude from
gross income the value of any property acquired by gift,
bequest, devise, or inheritance from a covered expatriate
after the expatriation date.
``(B) Determination of basis.--Notwithstanding sections
1015 or 1022, the basis of any property described in
subparagraph (A) in the hands of the donee or the person
acquiring such property from the decedent shall be equal to
the fair market value of the property at the time of the
gift, bequest, devise, or inheritance.
``(2) Exceptions for transfers otherwise subject to estate
or gift tax.--Paragraph (1) shall not apply to any property
if either--
``(A) the gift, bequest, devise, or inheritance is--
``(i) shown on a timely filed return of tax imposed by
chapter 12 as a taxable gift by the covered expatriate, or
``(ii) included in the gross estate of the covered
expatriate for purposes of chapter 11 and shown on a timely
filed return of tax imposed by chapter 11 of the estate of
the covered expatriate, or
``(B) no such return was timely filed but no such return
would have been required to be filed even if the covered
expatriate were a citizen or long-term resident of the United
States.
``(3) Definitions.--For purposes of this subsection, any
term used in this subsection which is also used in section
877A shall have the same meaning as when used in section
877A.''.
(c) Definition of Termination of United States
Citizenship.--Section 7701(a) is amended by adding at the end
the following new paragraph:
``(50) Termination of united states citizenship.--
``(A) In general.--An individual shall not cease to be
treated as a United States citizen before the date on which
the individual's citizenship is treated as relinquished under
section 877A(e)(3).
``(B) Dual citizens.--Under regulations prescribed by the
Secretary, subparagraph (A) shall not apply to an individual
who became at birth a citizen of the United States and a
citizen of another country.''.
(d) Ineligibility for Visa or Admission to United States.--
(1) In general.--Section 212(a)(10)(E) of the Immigration
and Nationality Act (8 U.S.C. 1182(a)(10)(E)) is amended to
read as follows:
``(E) Former citizens not in compliance with expatriation
revenue provisions.--Any alien who is a former citizen of the
United States who relinquishes United States citizenship
(within the meaning of section 877A(e)(3) of the Internal
Revenue Code of 1986) and who is not in compliance with
section 877A of such Code (relating to expatriation) is
inadmissible.''.
(2) Availability of information.--
(A) In general.--Section 6103(l) (relating to disclosure of
returns and return information for purposes other than tax
administration) is amended by adding at the end the following
new paragraph:
``(21) Disclosure to deny visa or admission to certain
expatriates.--Upon written request of the Attorney General or
the Attorney General's delegate, the Secretary shall disclose
whether an individual is in compliance with section 877A (and
if not in compliance, any items of noncompliance) to officers
and employees of the Federal agency responsible for
administering section 212(a)(10)(E) of the Immigration and
Nationality Act solely for the purpose of, and to the extent
necessary in, administering such section 212(a)(10)(E).''.
(B) Safeguards.--Section 6103(p)(4) (relating to
safeguards) is amended by striking ``or (20)'' each place it
appears and inserting ``(20), or (21)''.
(3) Effective dates.--The amendments made by this
subsection shall apply to individuals who relinquish United
States citizenship on or after the date of the enactment of
this Act.
(e) Conforming Amendments.--
(1) Section 877 is amended by adding at the end the
following new subsection:
``(h) Application.--This section shall not apply to an
expatriate (as defined in section 877A(e)) whose expatriation
date (as so defined) occurs on or after the date of the
enactment of this subsection.''.
(2) Section 2107 is amended by adding at the end the
following new subsection:
``(f) Application.--This section shall not apply to any
expatriate subject to section 877A.''.
(3) Section 2501(a)(3) is amended by adding at the end the
following new subparagraph:
``(C) Application.--This paragraph shall not apply to any
expatriate subject to section 877A.''.
(4) Section 6039G(a) is amended by inserting ``or 877A''
after ``section 877(b)''.
(5) The second sentence of section 6039G(d) is amended by
inserting ``or who relinquishes United States citizenship
(within the meaning of section 877A(e)(3))'' after ``section
877(a))''.
(f) Clerical Amendment.--The table of sections for subpart
A of part II of subchapter N of chapter 1 is amended by
inserting after the item relating to section 877 the
following new item:

``Sec. 877A. Tax responsibilities of expatriation''.

SEC. 536. LIMITATION ON ANNUAL AMOUNTS WHICH MAY BE DEFERRED
UNDER NONQUALIFIED DEFERRED COMPENSATION
ARRANGEMENTS.

``(ii) Base period.--

[[Page 7884]]

SEC. 537. MODIFICATION OF CRIMINAL PENALTIES FOR WILLFUL
FAILURES INVOLVING TAX PAYMENTS AND FILING
REQUIREMENTS.

SEC. 538. DOUBLING OF CERTAIN PENALTIES, FINES, AND INTEREST
ON UNDERPAYMENTS RELATED TO CERTAIN OFFSHORE
FINANCIAL ARRANGEMENTS.

SEC. 539. INCREASE IN PENALTY FOR BAD CHECKS AND MONEY
ORDERS.

SEC. 540. TREATMENT OF CONTINGENT PAYMENT CONVERTIBLE DEBT
INSTRUMENTS.

[[Page 7885]]

the comparable yield of a fixed-rate debt instrument shall be
applied as if the regulations require that such comparable
yield be determined by reference to a fixed-rate debt
instrument which is convertible into stock.
``(B) Special rule.--For purposes of subparagraph (A), the
comparable yield shall be determined without taking into
account the yield resulting from the conversion of a debt
instrument into stock.''.
(b) Cross Reference.--Section 163(e)(6) (relating to cross
references) is amended by adding at the end the following:
``For the treatment of contingent payment convertible debt,
see section 1275(d)(2).''.
(c) Effective Date.--The amendments made by this section
shall apply to debt instruments issued on or after the date
of the enactment of this Act.

SEC. 541. EXTENSION OF IRS USER FEES.

Subsection (c) of section 7528 (relating to Internal
Revenue Service user fees) is amended by striking ``September
30, 2014'' and inserting ``September 30, 2016''.

SEC. 542. MODIFICATION OF COLLECTION DUE PROCESS PROCEDURES
FOR EMPLOYMENT TAX LIABILITIES.

SEC. 543. MODIFICATIONS TO WHISTLEBLOWER REFORMS.

SEC. 544. MODIFICATIONS OF DEFINITION OF EMPLOYEES COVERED BY
DENIAL OF DEDUCTION FOR EXCESSIVE EMPLOYEE
REMUNERATION.

SEC. 545. INCREASE IN AGE OF MINOR CHILDREN WHOSE UNEARNED
INCOME IS TAXED AS IF PARENT'S INCOME.

(a) In General.--Subparagraph (A) of section 1(g)(2)
(relating to child to whom subsection applies) is amended to
read as follows:
``(A) such child--
``(i) has not attained age 18 before the close of the
taxable year, or
``(ii)(I) has attained age 18 before the close of the
taxable year and meets the age requirements of section
152(c)(3) (determined without regard to subparagraph (B)
thereof), and
``(II) whose earned income (as defined in section
911(d)(2)) for such taxable year does not exceed one-half of
the amount of the individual's support (within the meaning of
section 152(c)(1)(D) after the application of section
152(f)(5) (without regard to subparagraph (A) thereof) for
such taxable year,''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. 546. INCREASE IN INFORMATION RETURN PENALTIES.

(a) Failure To File Correct Information Returns.--
(1) In general.--Section 6721(a)(1) is amended--
(A) by striking ``$50'' and inserting ``$250'', and
(B) by striking ``$250,000'' and inserting ``$3,000,000''.
(2) Reduction where correction in specified period.--
(A) Correction within 30 days.--Section 6721(b)(1) is
amended--
(i) by striking ``$15'' and inserting ``$50'',
(ii) by striking ``$50'' and inserting ``$250'', and
(iii) by striking ``$75,000'' and inserting ``$500,000''.
(B) Failures corrected on or before august 1.--Section
6721(b)(2) is amended--
(i) by striking ``$30'' and inserting ``$100'',
(ii) by striking ``$50'' and inserting ``$250'', and
(iii) by striking ``$150,000'' and inserting
``$1,500,000''.
(3) Lower limitation for persons with gross receipts of not
more than $5,000,000.--Section 6721(d)(1) is amended--
(A) in subparagraph (A)--
(i) by striking ``$100,000'' and inserting ``$1,000,000'',
and

[[Page 7886]]

(ii) by striking ``$250,000'' and inserting ``$3,000,000'',
(B) in subparagraph (B)--
(i) by striking ``$25,000'' and inserting ``$175,000'', and
(ii) by striking ``$75,000'' and inserting ``$500,000'',
and
(C) in subparagraph (C)--
(i) by striking ``$50,000'' and inserting ``$500,000'', and
(ii) by striking ``$150,000'' and inserting ``$1,500,000''.
(4) Penalty in case of intentional disregard.--Section
6721(e) is amended--
(A) by striking ``$100'' in paragraph (2) and inserting
``$500'',
(B) by striking ``$250,000'' in paragraph (3)(A) and
inserting ``$3,000,000''.
(b) Failure To Furnish Correct Payee Statements.--
(1) In general.--Section 6722(a) is amended--
(A) by striking ``$50'' and inserting ``$250'', and
(B) by striking ``$100,000'' and inserting ``$1,000,000''.
(2) Penalty in case of intentional disregard.--Section
6722(c) is amended--
(A) by striking ``$100'' in paragraph (1) and inserting
``$500'', and
(B) by striking ``$100,000'' in paragraph (2)(A) and
inserting ``$1,000,000''.
(c) Failure To Comply With Other Information Reporting
Requirements.--Section 6723 is amended--
(1) by striking ``$50'' and inserting ``$250'', and
(2) by striking ``$100,000'' and inserting ``$1,000,000''.
(d) Effective Date.--The amendments made by this section
shall apply with respect to information returns required to
be filed on or after January 1, 2008.

SEC. 547. E-FILING REQUIREMENT FOR CERTAIN LARGE
ORGANIZATIONS.

SEC. 548. EXPANSION OF IRS ACCESS TO INFORMATION IN NATIONAL
DIRECTORY OF NEW HIRES FOR TAX ADMINISTRATION
PURPOSES.

SEC. 549. DISCLOSURE OF PRISONER RETURN INFORMATION TO
FEDERAL BUREAU OF PRISONS.

(a) Disclosure.--
(1) In general.--Subsection (l) of section 6103 (relating
to disclosure of returns and return information for purposes
other than tax administration) is amended by adding at the
end the following new paragraph:
``(22) Disclosure of return information of prisoners to
federal bureau of prisons.--
``(A) In general.--Under such procedures as the Secretary
may prescribe, the Secretary may disclose return information
with respect to persons incarcerated in Federal prisons whom
the Secretary believes filed or facilitated the filing of
false or fraudulent returns to the head of the Federal Bureau
of Prisons if the Secretary determines that such disclosure
is necessary to permit effective tax administration.
``(B) Disclosure by agency to employees.--The head of the
Federal Bureau of Prisons may redisclose information received
under subparagraph (A)--
``(i) only to those officers and employees of the Bureau
who are personally and directly engaged in taking
administrative actions to address violations of
administrative rules and regulations of the prison facility,
and
``(ii) solely for the purposes described in subparagraph
(C).
``(C) Restriction on use of disclosed information.--Return
information disclosed under this paragraph may be used only
for the purposes of--
``(i) preventing the filing of false or fraudulent returns;
and
``(ii) taking administrative actions against individuals
who have filed or attempted to file false or fraudulent
returns.''.
(2) Procedures and record keeping related to disclosure.--
Subsection (p)(4) of section 6103 is amended--
(A) by striking ``(14), or (17)'' in the matter before
subparagraph (A) and inserting ``(14), (17), or (22)'', and
(B) by striking ``(9), or (16)'' in subparagraph (F)(i) and
inserting ``(9), (16), or (22)''.
(3) Evaluation by treasury inspector general for tax
administration.--Paragraph (3) of section 7803(d) is amended
by striking ``and'' at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and
inserting ``; and'', and by adding at the end the following
new subparagraph:
``(C) not later than 3 years after the date of the
enactment of section 6103(l)(22), submit a written report to
Congress on the implementation of such section.''.
(b) Annual Reports.--
(1) In general.--The Secretary of the Treasury shall submit
to Congress and make publicly available an annual report on
the filing of false and fraudulent returns by individuals
incarcerated in Federal and State prisons.
(2) Contents of report.--The report submitted under
paragraph (1) shall contain statistics on the number of false
or fraudulent returns associated with each Federal and State
prison and such other information that the Secretary
determines is appropriate.
(3) Exchange of information.--For the purpose of gathering
information necessary for the reports required under
paragraph (1), the Secretary of the Treasury shall enter into
agreements with the head of the Federal Bureau of Prisons and
the heads of State agencies charged with responsibility for
administration of State prisons under which the head of the
Bureau or Agency provides to the Secretary not less
frequently than annually the names and other identifying
information of prisoners incarcerated at each facility
administered by the Bureau or Agency.
(c) Effective Date.--The amendments made by this section
shall apply to disclosures on or after January 1, 2008.

SEC. 550. UNDERSTATEMENT OF TAXPAYER LIABILITY BY RETURN
PREPARERS.

[[Page 7887]]

(V) in subsection (f), by striking ``income tax return
preparer'' and inserting ``tax return preparer''.
(ii) The item relating to section 6694 in the table of
sections for part I of subchapter B of chapter 68 is amended
by striking ``income tax return preparer'' and inserting
``tax return preparer''.
(G)(i) Section 6695 is amended--
(I) by striking ``INCOME'' in the heading, and
(II) by striking ``an income tax return preparer'' each
place it appears and inserting ``a tax return preparer''.
(ii) Section 6695(f) is amended--
(I) by striking ``subtitle A'' and inserting ``this
title'', and
(II) by striking ``the income tax return preparer'' and
inserting ``the tax return preparer''.
(iii) The item relating to section 6695 in the table of
sections for part I of subchapter B of chapter 68 is amended
by striking ``income''.
(H) Section 6696(e) is amended by striking ``subtitle A''
each place it appears and inserting ``this title''.
(I)(i) Section 7407 is amended--
(I) by striking ``INCOME TAX RETURN PREPARERS'' in the
heading and inserting ``TAX RETURN PREPARERS'',
(II) by striking ``an income tax return preparer'' each
place it appears and inserting ``a tax return preparer'',
(III) by striking ``income tax preparer'' both places it
appears in subsection (a) and inserting ``tax return
preparer'', and
(IV) by striking ``income tax return'' in subsection (a)
and inserting ``tax return''.
(ii) The item relating to section 7407 in the table of
sections for subchapter A of chapter 76 is amended by
striking ``income tax return preparers'' and inserting ``tax
return preparers''.
(J)(i) Section 7427 is amended--
(I) by striking ``INCOME TAX RETURN PREPARERS'' in the
heading and inserting ``TAX RETURN PREPARERS'', and
(II) by striking ``an income tax return preparer'' and
inserting ``a tax return preparer''.
(ii) The item relating to section 7427 in the table of
sections for subchapter B of chapter 76 is amended to read as
follows:

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

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

SEC. 551. PENALTY FOR FILING ERRONEOUS REFUND CLAIMS.

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

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

SEC. 552. SUSPENSION OF CERTAIN PENALTIES AND INTEREST.

SEC. 553. ADDITIONAL REASONS FOR SECRETARY TO TERMINATE
INSTALLMENT AGREEMENTS.

SEC. 554. OFFICE OF CHIEF COUNSEL REVIEW OF OFFERS-IN-
COMPROMISE.

SEC. 555. AUTHORIZATION FOR FINANCIAL MANAGEMENT SERVICE
RETENTION OF TRANSACTION FEES FROM LEVIED
AMOUNTS.

[[Page 7888]]

``(B) may be collected through a levy under this
subsection, and
``(C) shall be in addition to the amount of tax liability
with respect to which such levy was approved.''.
(b) Retention of Fees by Financial Management Service.--The
Financial Management Service may retain the amount of any
transaction fee imposed under section 6331(h)(4) of the
Internal Revenue Code of 1986. Any amount retained by the
Financial Management Service under that section shall be
deposited into the account of the Department of the Treasury
under section 3711(g)(7) of title 31, United States Code.
(c) Effective Date.--The amendment made by this section
shall apply to amounts levied after the date of the enactment
of this Act.