[Congressional Record (Bound Edition), Volume 153 (2007), Part 7]
[HOU]
[Pages 9925-10116]
[From the U.S. Government Publishing Office, www.gpo.gov]




CONFERENCE REPORT ON H.R. 1591, U.S. TROOP READINESS, VETERANS' HEALTH, 
                   AND IRAQ ACCOUNTABILITY ACT, 2007

  Mr. OBEY submitted the following conference report and statement on 
the bill (H.R. 1591) making emergency supplemental appropriations for 
the fiscal year ending September 30, 2007, and for other purposes:

                  Conference Report (H. Rept. 110-107)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     1591), ``making emergency supplemental appropriations for the 
     fiscal year ending September 30, 2007, and for other 
     purposes'', having met, after full and free conference, have 
     agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate, and agree to the same with an 
     amendment, as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert:

     That the following sums are appropriated, out of any money in 
     the Treasury not otherwise appropriated, for the fiscal year 
     ending September 30, 2007, and for other purposes, namely:

                                TITLE I

            GLOBAL WAR ON TERROR SUPPLEMENTAL APPROPRIATIONS

                               CHAPTER 1

                       DEPARTMENT OF AGRICULTURE

                      Foreign Agricultural Service


                     Public Law 480 Title II Grants

       For an additional amount for ``Public Law 480 Title II 
     Grants'', during the current fiscal year, not otherwise 
     recoverable, and unrecovered prior years' costs, including 
     interest thereon, under the Agricultural Trade Development 
     and Assistance Act of 1954, for commodities supplied in 
     connection with dispositions abroad under title II of said 
     Act, $460,000,000, to remain available until expended.

                    GENERAL PROVISION--THIS CHAPTER

       Sec. 1101. There is hereby appropriated $40,000,000 to 
     reimburse the Commodity Credit Corporation for the release of 
     eligible commodities under section 302(f)(2)(A) of the Bill 
     Emerson Humanitarian Trust Act (7 U.S.C. 1736f-1): Provided, 
     That any such funds made available to reimburse the Commodity 
     Credit Corporation shall only be used to replenish the Bill 
     Emerson Humanitarian Trust.

                               CHAPTER 2

                         DEPARTMENT OF JUSTICE

                            Legal Activities


            SALARIES AND EXPENSES, GENERAL LEGAL ACTIVITIES

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


             salaries and expenses, united states attorneys

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

                     United States Marshals Service


                         salaries and expenses

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

                       National Security Division

                         Salaries and Expenses

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

                    Federal Bureau of Investigation


                         Salaries and Expenses

       For an additional amount for ``Salaries and Expenses'', 
     $268,000,000, of which $258,000,000 is to remain available 
     until September 30, 2008 and $10,000,000 is to remain 
     available until expended to implement corrective actions in 
     response to the findings and recommendations in the 
     Department of Justice Office of Inspector General report 
     entitled, ``A Review of the Federal Bureau of Investigation's 
     Use of National Security Letters'', of which $500,000 shall 
     be transferred to and merged with ``Department of Justice, 
     Office of the Inspector General''.

                    Drug Enforcement Administration


                         Salaries and Expenses

       For an additional amount for ``Salaries and Expenses'', 
     $12,166,000, to remain available until September 30, 2008.

          Bureau of Alcohol, Tobacco, Firearms and Explosives


                         Salaries and Expenses

       For an additional amount for ``Salaries and Expenses'', 
     $4,000,000, to remain available until September 30, 2008.

                         Federal Prison System


                         Salaries and Expenses

       For an additional amount for ``Salaries and Expenses'', 
     $17,000,000, to remain available until September 30, 2008.

                               CHAPTER 3

                    DEPARTMENT OF DEFENSE--MILITARY

                           MILITARY PERSONNEL

                        Military Personnel, Army

       For an additional amount for ``Military Personnel, Army'', 
     $8,853,350,000.

                        Military Personnel, Navy

       For an additional amount for ``Military Personnel, Navy'', 
     $1,100,410,000.

                    Military Personnel, Marine Corps

       For an additional amount for ``Military Personnel, Marine 
     Corps'', $1,495,827,000.

                     Military Personnel, Air Force

       For an additional amount for ``Military Personnel, Air 
     Force'', $1,218,587,000.

                        Reserve Personnel, Army

       For an additional amount for ``Reserve Personnel, Army'', 
     $147,244,000.

                        Reserve Personnel, Navy

       For an additional amount for ``Reserve Personnel, Navy'', 
     $86,023,000.

                    Reserve Personnel, Marine Corps

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

                      Reserve Personnel, Air Force

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

                     National Guard Personnel, Army

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

                  National Guard Personnel, Air Force

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

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army

       For an additional amount for ``Operation and Maintenance, 
     Army'', $20,373,379,000.

                    Operation and Maintenance, Navy


                     (including transfer of funds)

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

                Operation and Maintenance, Marine Corps

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

                  Operation and Maintenance, Air Force

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

                Operation and Maintenance, Defense-Wide

       For an additional amount for ``Operation and Maintenance, 
     Defense-Wide'', $2,714,487,000, of which--
       (1) not to exceed $25,000,000 may be used for the Combatant 
     Commander Initiative Fund, to be used in support of Operation 
     Iraqi Freedom and Operation Enduring Freedom; and
       (2) not to exceed $200,000,000, to remain available until 
     expended, may be used for payments to reimburse Pakistan, 
     Jordan, and other key cooperating nations, for logistical, 
     military, and other support provided to United States 
     military operations, notwithstanding any other provision of 
     law: Provided, That such payments may be made in such amounts 
     as the Secretary of Defense, with the concurrence of the 
     Secretary of State, and in consultation with the Director of 
     the Office of Management and Budget, may determine, in his 
     discretion, based on documentation determined by the 
     Secretary of Defense to adequately account for the support 
     provided, and such determination is final and conclusive upon 
     the accounting officers of the United States, and 15 days 
     following notification to the appropriate congressional 
     committees: Provided further, That the Secretary of Defense 
     shall provide quarterly reports to the congressional defense 
     committees on the use of funds provided in this paragraph.

                Operation and Maintenance, Army Reserve

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

                Operation and Maintenance, Navy Reserve

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

            Operation and Maintenance, Marine Corps Reserve

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

              Operation and Maintenance, Air Force Reserve

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

             Operation and Maintenance, Army National Guard

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

             Operation and Maintenance, Air National Guard

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

                    Afghanistan Security Forces Fund

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

                       Iraq Security Forces Fund

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

                           Iraq Freedom Fund


                     (including transfer of funds)

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

             Joint Improvised Explosive Device Defeat Fund

       For an additional amount for ``Joint Improvised Explosive 
     Device Defeat Fund'',

[[Page 9926]]

     $2,432,800,000, to remain available until September 30, 2009.

                    Strategic Reserve Readiness Fund


                     (INCLUDING TRANSFER OF FUNDS)

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

                              PROCUREMENT

                       Aircraft Procurement, Army

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

                       Missile Procurement, Army

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

        Procurement of Weapons and Tracked Combat Vehicles, Army

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

                    Procurement of Ammunition, Army

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

                        Other Procurement, Army

       For an additional amount for ``Other Procurement, Army'', 
     $11,076,137,000, to remain available until September 30, 
     2009.

                       Aircraft Procurement, Navy

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

                       Weapons Procurement, Navy

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

            Procurement of Ammunition, Navy and Marine Corps

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

                        Other Procurement, Navy

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

                       Procurement, Marine Corps

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

                    Aircraft Procurement, Air Force

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

                     Missile Procurement, Air Force

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

                  Procurement of Ammunition, Air Force

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

                      Other Procurement, Air Force

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

                       Procurement, Defense-Wide

       For an additional amount for ``Procurement, Defense-Wide'', 
     $980,050,000, to remain available until September 30, 2009.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Research, Development, Test and Evaluation, Army

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

            Research, Development, Test and Evaluation, Navy

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

         Research, Development, Test and Evaluation, Air Force

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

        Research, Development, Test and Evaluation, Defense-Wide

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

                     REVOLVING AND MANAGEMENT FUNDS

                     Defense Working Capital Funds

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

                     National Defense Sealift Fund

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

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

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

         Drug Interdiction and Counter-Drug Activities, Defense

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

                            RELATED AGENCIES

               Intelligence Community Management Account

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

                    GENERAL PROVISIONS--THIS CHAPTER

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


                          (transfer of funds)

       Sec. 1302. Upon his determination that such action is 
     necessary in the national interest, the Secretary of Defense 
     may transfer between appropriations up to $3,500,000,000 of 
     the funds made available to the Department of Defense in this 
     chapter: Provided, That the Secretary shall notify the 
     Congress promptly of each transfer made pursuant to the 
     authority in this section: Provided further, That the 
     authority provided in this section is in addition to any 
     other transfer authority available to the Department of 
     Defense and is subject to the same terms and conditions as 
     the authority provided in section 8005 of the Department of 
     Defense Appropriations Act, 2007 (Public Law 109-289; 120 
     Stat. 1257), except for the fourth proviso: Provided further, 
     That funds previously transferred to the ``Joint Improvised 
     Explosive Device Defeat Fund'' and the ``Iraq Security Forces 
     Fund'' under the authority of section 8005 of Public Law 109-
     289 and transferred back to their source appropriations 
     accounts shall not be taken into account for purposes of the 
     limitation on the amount of funds that may be transferred 
     under section 8005.
       Sec. 1303. Funds appropriated in this chapter, or made 
     available by the transfer of funds in or pursuant to this 
     chapter, for intelligence activities are deemed to be 
     specifically authorized by the Congress for purposes of 
     section 504(a)(1) of the National Security Act of 1947 (50 
     U.S.C. 414(a)(1)).
       Sec. 1304. None of the funds provided in this chapter may 
     be used to finance programs or activities denied by Congress 
     in fiscal years 2006 or 2007 appropriations to the Department 
     of Defense or to initiate a procurement or research, 
     development, test and evaluation new start program without 
     prior written notification to the congressional defense 
     committees.


                          (TRANSFER OF FUNDS)

       Sec. 1305. During fiscal year 2007, the Secretary of 
     Defense may transfer not to exceed $6,300,000 of the amounts 
     in or credited to the Defense Cooperation Account, pursuant 
     to 10 U.S.C. 2608, to such appropriations or funds of the 
     Department of Defense as he shall determine for use 
     consistent with the purposes for which such funds were 
     contributed and accepted: Provided, That such amounts shall 
     be available for the same time period as the appropriation to 
     which transferred: Provided further, That the Secretary shall 
     report to the Congress all transfers made pursuant to this 
     authority.
       Sec. 1306. (a) Authority To Provide Support.--Of the amount 
     appropriated by this chapter under the heading, ``Drug 
     Interdiction and Counter-Drug Activities, Defense'', not to 
     exceed $60,000,000 may be used for support for counter-drug 
     activities of the Governments of Afghanistan and Pakistan: 
     Provided, That such support shall be in addition to support 
     provided for the counter-drug activities of such Governments 
     under any other provision of the law.

[[Page 9927]]

       (b) Types of Support.--
       (1) Except as specified in subsection (b)(2) of this 
     section, the support that may be provided under the authority 
     in this section shall be limited to the types of support 
     specified in section 1033(c)(1) of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85, as 
     amended by Public Laws 106-398, 108-136, and 109-364) and 
     conditions on the provision of support as contained in 
     section 1033 shall apply for fiscal year 2007.
       (2) The Secretary of Defense may transfer vehicles, 
     aircraft, and detection, interception, monitoring and testing 
     equipment to said Governments for counter-drug activities.
       Sec. 1307. (a) From funds made available for operation and 
     maintenance in this chapter to the Department of Defense, not 
     to exceed $456,400,000 may be used, notwithstanding any other 
     provision of law, to fund the Commanders' Emergency Response 
     Program, for the purpose of enabling military commanders in 
     Iraq and Afghanistan to respond to urgent humanitarian relief 
     and reconstruction requirements within their areas of 
     responsibility by carrying out programs that will immediately 
     assist the Iraqi and Afghan people.
       (b) Quarterly Reports.--Not later than 15 days after the 
     end of each fiscal year quarter, the Secretary of Defense 
     shall submit to the congressional defense committees a report 
     regarding the source of funds and the allocation and use of 
     funds during that quarter that were made available pursuant 
     to the authority provided in this section or under any other 
     provision of law for the purposes of the programs under 
     subsection (a).
       Sec. 1308. Section 9010 of division A of Public Law 109-289 
     is amended by striking ``2007'' each place it appears and 
     inserting ``2008''.
       Sec. 1309. During fiscal year 2007, supervision and 
     administration costs associated with projects carried out 
     with funds appropriated to ``Afghanistan Security Forces 
     Fund'' or ``Iraq Security Forces Fund'' in this chapter may 
     be obligated at the time a construction contract is awarded: 
     Provided, That for the purpose of this section, supervision 
     and administration costs include all in-house Government 
     costs.
       Sec. 1310. Section 1005(c)(2) of the National Defense 
     Authorization Act, Fiscal Year 2007 (Public Law 109-364) is 
     amended by striking ``$310,277,000'' and inserting 
     ``$376,446,000''.
       Sec. 1311. None of the funds appropriated or otherwise made 
     available by this or any other Act shall be obligated or 
     expended by the United States Government for a purpose as 
     follows:
       (1) To establish any military installation or base for the 
     purpose of providing for the permanent stationing of United 
     States Armed Forces in Iraq.
       (2) To exercise United States control over any oil resource 
     of Iraq.
       Sec. 1312. None of the funds made available in this Act may 
     be used in contravention of the following laws enacted or 
     regulations promulgated to implement the United Nations 
     Convention Against Torture and Other Cruel, Inhuman or 
     Degrading Treatment or Punishment (done at New York on 
     December 10, 1984):
       (1) Section 2340A of title 18, United States Code;
       (2) Section 2242 of the Foreign Affairs Reform and 
     Restructuring Act of 1998 (division G of Public Law 105-277; 
     112 Stat. 2681-822; 8 U.S.C. 1231 note) and regulations 
     prescribed thereto, including regulations under part 208 of 
     title 8, Code of Federal Regulations, and part 95 of title 
     22, Code of Federal Regulations; and
       (3) Sections 1002 and 1003 of the Department of Defense, 
     Emergency Supplemental Appropriations to Address Hurricanes 
     in the Gulf of Mexico, and Pandemic Influenza Act, 2006 
     (Public Law 109-148).
       Sec. 1313. (a) Report by Secretary of Defense.--Not later 
     than 30 days after the date of the enactment of this Act, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report that contains individual 
     transition readiness assessments by unit of Iraq and Afghan 
     security forces. The Secretary of Defense shall submit to the 
     congressional defense committees updates of the report 
     required by this subsection every 90 days after the date of 
     the submission of the report until October 1, 2008. The 
     report and updates of the report required by this subsection 
     shall be submitted in classified form.
       (b) Report by OMB.--
       (1) The Director of the Office of Management and Budget, in 
     consultation with the Secretary of Defense; the Commander, 
     Multi-National Security Transition Command--Iraq; and the 
     Commander, Combined Security Transition Command--Afghanistan, 
     shall submit to the congressional defense committees not 
     later than 120 days after the date of the enactment of this 
     Act and every 90 days thereafter a report on the proposed use 
     of all funds under each of the headings ``Iraq Security 
     Forces Fund'' and ``Afghanistan Security Forces Fund'' on a 
     project-by-project basis, for which the obligation of funds 
     is anticipated during the three-month period from such date, 
     including estimates by the commanders referred to in this 
     paragraph of the costs required to complete each such 
     project.
       (2) The report required by this subsection shall include 
     the following:
       (A) The use of all funds on a project-by-project basis for 
     which funds appropriated under the headings referred to in 
     paragraph (1) were obligated prior to the submission of the 
     report, including estimates by the commanders referred to in 
     paragraph (1) of the costs to complete each project.
       (B) The use of all funds on a project-by-project basis for 
     which funds were appropriated under the headings referred to 
     in paragraph (1) in prior appropriations Acts, or for which 
     funds were made available by transfer, reprogramming, or 
     allocation from other headings in prior appropriations Acts, 
     including estimates by the commanders referred to in 
     paragraph (1) of the costs to complete each project.
       (C) An estimated total cost to train and equip the Iraq and 
     Afghan security forces, disaggregated by major program and 
     sub-elements by force, arrayed by fiscal year.
       (c) Notification.--The Secretary of Defense shall notify 
     the congressional defense committees of any proposed new 
     projects or transfers of funds between sub-activity groups in 
     excess of $15,000,000 using funds appropriated by this Act 
     under the headings ``Iraq Security Forces Fund'' and 
     ``Afghanistan Security Forces Fund''.
       Sec. 1314. None of the funds appropriated or otherwise made 
     available by this chapter may be obligated or expended to 
     provide award fees to any defense contractor contrary to the 
     provisions of section 814 of the National Defense 
     Authorization Act, Fiscal Year 2007 (Public Law 109-364).
       Sec. 1315. Not more than 85 percent of the funds 
     appropriated in this chapter for operation and maintenance 
     shall be available for obligation unless and until the 
     Secretary of Defense submits to the congressional defense 
     committees a report detailing the use of Department of 
     Defense funded service contracts conducted in the theater of 
     operations in support of United States military and 
     reconstruction activities in Iraq and Afghanistan: Provided, 
     That the report shall provide detailed information specifying 
     the number of contracts and contract costs used to provide 
     services in fiscal year 2006, with sub-allocations by major 
     service categories: Provided further, That the report also 
     shall include estimates of the number of contracts to be 
     executed in fiscal year 2007: Provided further, That the 
     report shall include the number of contractor personnel in 
     Iraq and Afghanistan funded by the Department of Defense: 
     Provided further, That the report shall be submitted to the 
     congressional defense committees not later than August 1, 
     2007.
       Sec. 1316. Section 1477 of title 10, United States Code, is 
     amended--
       (1) in subsection (a), by striking ``A death gratuity'' and 
     inserting ``Subject to subsection (d), a death gratuity'';
       (2) by redesignating subsection (d) as subsection (e) and, 
     in such subsection, by striking ``If an eligible survivor 
     dies before he'' and inserting ``If a person entitled to all 
     or a portion of a death gratuity under subsection (a) or (d) 
     dies before the person''; and
       (3) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) During the period beginning on the date of the 
     enactment of this subsection and ending on September 30, 
     2007, a person covered by section 1475 or 1476 of this title 
     may designate another person to receive not more than 50 
     percent of the amount payable under section 1478 of this 
     title. The designation shall indicate the percentage of the 
     amount, to be specified only in 10 percent increments up to 
     the maximum of 50 percent, that the designated person may 
     receive. The balance of the amount of the death gratuity 
     shall be paid to or for the living survivors of the person 
     concerned in accordance with paragraphs (1) through (5) of 
     subsection (a).''.
       Sec. 1317. Section 9007 of Public Law 109-289 is amended by 
     striking ``20'' and inserting ``287''.
       Sec. 1318. Inspection of Military Medical Treatment 
     Facilities, Military Quarters Housing Medical Hold Personnel, 
     and Military Quarters Housing Medical Holdover Personnel. (a) 
     Periodic Inspection Required.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act, and annually thereafter, the 
     Secretary of Defense shall inspect each facility of the 
     Department of Defense as follows:
       (A) Each military medical treatment facility.
       (B) Each military quarters housing medical hold personnel.
       (C) Each military quarters housing medical holdover 
     personnel.
       (2) Purpose.--The purpose of an inspection under this 
     subsection is to ensure that the facility or quarters 
     concerned meets acceptable standards for the maintenance and 
     operation of medical facilities, quarters housing medical 
     hold personnel, or quarters housing medical holdover 
     personnel, as applicable.
       (b) Acceptable Standards.--For purposes of this section, 
     acceptable standards for the operation and maintenance of 
     military medical treatment facilities, military quarters 
     housing medical hold personnel, or military quarters housing 
     medical holdover personnel are each of the following:
       (1) Generally accepted standards for the accreditation of 
     medical facilities, or for facilities used to quarter 
     individuals with medical conditions that may require medical 
     supervision, as applicable, in the United States.
       (2) Where appropriate, standards under the Americans with 
     Disabilities Act of 1990 (42 U.S.C. 12101 et seq.).
       (c) Additional Inspections on Identified Deficiencies.--
       (1) In general.--In the event a deficiency is identified 
     pursuant to subsection (a) at a facility or quarters 
     described in paragraph (1) of that subsection--
       (A) the commander of such facility or quarters, as 
     applicable, shall submit to the Secretary a detailed plan to 
     correct the deficiency; and

[[Page 9928]]

       (B) the Secretary shall reinspect such facility or 
     quarters, as applicable, not less often than once every 180 
     days until the deficiency is corrected.
       (2) Construction with other inspections.--An inspection of 
     a facility or quarters under this subsection is in addition 
     to any inspection of such facility or quarters under 
     subsection (a).
       (d) Reports on Inspections.--A complete copy of the report 
     on each inspection conducted under subsections (a) and (c) 
     shall be submitted in unclassified form to the applicable 
     military medical command and to the congressional defense 
     committees.
       (e) Report on Standards.--In the event no standards for the 
     maintenance and operation of military medical treatment 
     facilities, military quarters housing medical hold personnel, 
     or military quarters housing medical holdover personnel exist 
     as of the date of the enactment of this Act, or such 
     standards as do exist do not meet acceptable standards for 
     the maintenance and operation of such facilities or quarters, 
     as the case may be, the Secretary shall, not later than 30 
     days after that date, submit to the congressional defense 
     committees a report setting forth the plan of the Secretary 
     to ensure--
       (1) the adoption by the Department of standards for the 
     maintenance and operation of military medical facilities, 
     military quarters housing medical hold personnel, or military 
     quarters housing medical holdover personnel, as applicable, 
     that meet--
       (A) acceptable standards for the maintenance and operation 
     of such facilities or quarters, as the case may be; and
       (B) where appropriate, standards under the Americans with 
     Disabilities Act of 1990; and
       (2) the comprehensive implementation of the standards 
     adopted under paragraph (1) at the earliest date practicable.
       Sec. 1319. From funds made available for the ``Iraq 
     Security Forces Fund'' for fiscal year 2007, up to 
     $155,500,000 may be used, notwithstanding any other provision 
     of law, to provide assistance, with the concurrence of the 
     Secretary of State, to the Government of Iraq to support the 
     disarmament, demobilization, and reintegration of militias 
     and illegal armed groups.
       Sec. 1320. Independent Assessment of Capabilities of Iraqi 
     Security Forces. (a) In General.--Of the amount appropriated 
     or otherwise made available for the Department of Defense, 
     $750,000 is provided to commission an independent, private-
     sector entity, which operates as a 501(c)(3) with recognized 
     credentials and expertise in military affairs, to prepare an 
     independent report assessing the following:
       (1) The readiness of the Iraqi Security Forces (ISF) to 
     assume responsibility for maintaining the territorial 
     integrity of Iraq, denying international terrorists a safe 
     haven, and bringing greater security to Iraq's 18 provinces 
     in the next 12-18 months, and bringing an end to sectarian 
     violence to achieve national reconciliation.
       (2) The training; equipping; command, control and 
     intelligence capabilities; and logistics capacity of the ISF.
       (3) The likelihood that, given the ISF's record of 
     preparedness to date, following years of training and 
     equipping by U.S. forces, the continued support of U.S. 
     troops will contribute to the readiness of the ISF to fulfill 
     the missions outlined in subparagraph (1).
       (b) Report.--Not later than 120 days after passage of this 
     Act, the designated private sector entity shall provide an 
     unclassified report, with a classified annex, containing its 
     findings, to the House and Senate Committees on Armed 
     Services, Appropriations, Foreign Relations, and 
     Intelligence.
       Sec. 1321. Award of Medal of Honor to Woodrow W. Keeble for 
     Valor During Korean War. (a) Waiver of Time Limitations.--
     Notwithstanding any applicable time limitation under section 
     3744 of title 10, United States Code, or any other time 
     limitation with respect to the award of certain medals to 
     individuals who served in the Armed Forces, the President may 
     award to Woodrow W. Keeble the Medal of Honor under section 
     3741 of that title for the acts of valor described in 
     subsection (b).
       (b) Acts of Valor.--The acts of valor referred to in 
     subsection (a) are the acts of Woodrow W. Keeble, then-acting 
     platoon leader, carried out on October 20, 1951, during the 
     Korean War.


                          (TRANSFER OF FUNDS)

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


                          (TRANSFER OF FUNDS)

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

                               CHAPTER 4

                          DEPARTMENT OF ENERGY

                    ATOMIC ENERGY DEFENSE ACTIVITIES

                National Nuclear Security Administration


                    Defense Nuclear Nonproliferation

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

                    GENERAL PROVISION--THIS CHAPTER


                          (TRANSFER OF FUNDS)

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

                               CHAPTER 5

                    DEPARTMENT OF HOMELAND SECURITY

                        Analysis and Operations

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

              United States Customs and Border Protection


                         SALARIES AND EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

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


 Air and Marine Interdiction, Operations, Maintenance, and Procurement

       For an additional amount for ``Air and Marine Interdiction, 
     Operations, Maintenance, and Procurement'', for air and 
     marine operations on the Northern Border, including the final 
     Northern Border air wing, $120,000,000, to remain available 
     until September 30, 2008.

           United States Immigration and Customs Enforcement


                         Salaries and Expenses

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

                 Transportation Security Administration


                           Aviation Security

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


                          Federal Air Marshals

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

                    National Protection and Programs


           Infrastructure Protection and Information Security

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

                        Office of Health Affairs

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

                  Federal Emergency Management Agency


                     Management and Administration

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


                        State and Local Programs

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


                EMERGENCY MANAGEMENT PERFORMANCE GRANTS

       For an additional amount for ``Emergency Management 
     Performance Grants'', $100,000,000.

           United States Citizenship and Immigration Services

       For an additional amount for expenses of ``United States 
     Citizenship and Immigration Services'' to address backlogs of 
     security checks associated with pending applications and 
     petitions, $10,000,000, to remain available until September 
     30, 2008: Provided, That none of the funds made available 
     under this heading shall

[[Page 9929]]

     be available for obligation until the Secretary of Homeland 
     Security, in consultation with the United States Attorney 
     General, submits to the Committees on Appropriations of the 
     Senate and the House of Representatives a plan to eliminate 
     the backlog of security checks that establishes information 
     sharing protocols to ensure United States Citizenship and 
     Immigration Services has the information it needs to carry 
     out its mission.

                         Science and Technology


           Research, Development, Acquisition, and Operations

       For an additional amount for ``Research, Development, 
     Acquisition, and Operations'' for air cargo security 
     research, $10,000,000, to remain available until expended.

                   Domestic Nuclear Detection Office


                 Research, Development, and Operations

       For an additional amount for ``Research, Development, and 
     Operations'' for non-container, rail, aviation and intermodal 
     radiation detection activities, $39,000,000, to remain 
     available until expended.


                          SYSTEMS ACQUISITION

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

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 1501. (a) Amendments.--Section 550 of the Department 
     of Homeland Security Appropriations Act, 2007 (6 U.S.C. 121 
     note) is amended by:
       (1) in subsection (c), by striking ``consistent with 
     similar'' and inserting ``identical to the protections 
     given'';
       (2) in subsection (c), by striking ``, site security plans, 
     and other information submitted to or obtained by the 
     Secretary under this section, and related vulnerability or 
     security information, shall be treated as if the information 
     were classified material'' and inserting ``and site security 
     plans shall be treated as sensitive security information (as 
     that term is used in section 1520.5 of title 49, Code of 
     Federal Regulations, or any subsequent regulations relating 
     to the same matter)''; and
       (3) by adding at the end of the section the following:
       ``(h) This section shall not preclude or deny any right of 
     any State or political subdivision thereof to adopt or 
     enforce any regulation, requirement, or standard of 
     performance with respect to chemical facility security that 
     is more stringent than a regulation, requirement, or standard 
     of performance issued under this section, or otherwise impair 
     any right or jurisdiction of any State with respect to 
     chemical facilities within that State.''.
       (b) Regulatory Clarification.--Not later than 60 days after 
     the date of the enactment of this Act, the Secretary of 
     Homeland Security shall update the regulations administered 
     by the Secretary that govern sensitive security information, 
     including 49 CFR 1520, to ensure the protection of all 
     information required to be protected under section 550(c) of 
     the Department of Homeland Security Appropriations Act, 2007 
     (6 U.S.C. 121 note), as amended by paragraph (a).
       Sec. 1502. None of the funds provided in this Act, or 
     Public Law 109-295, shall be available to carry out section 
     872 of Public Law 107-296.
       Sec. 1503. Linking of Award Fees Under Department of 
     Homeland Security Contracts to Successful Acquisition 
     Outcomes. The Secretary of Homeland Security shall require 
     that all contracts of the Department of Homeland Security 
     that provide award fees link such fees to successful 
     acquisition outcomes (which outcomes shall be specified in 
     terms of cost, schedule, and performance).

                               CHAPTER 6

                           LEGISLATIVE BRANCH

                        HOUSE OF REPRESENTATIVES

                         Salaries and Expenses

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

                        Allowances and Expenses

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

                    GOVERNMENT ACCOUNTABILITY OFFICE

                         Salaries and Expenses

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

                               CHAPTER 7

                         DEPARTMENT OF DEFENSE

                      Military Construction, Army

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

              Military Construction, Navy and Marine Corps

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

                    Military Construction, Air Force

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

            Department of Defense Base Closure Account 2005

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

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 1701. Notwithstanding any other provision of law, none 
     of the funds in this or any other Act may be used to close 
     Walter Reed Army Medical Center until equivalent medical 
     facilities at the Walter Reed National Military Medical 
     Center at Naval Medical Center, Bethesda, Maryland, and/or 
     the Fort Belvoir, Virginia, Community Hospital have been 
     constructed and equipped: Provided, That to ensure that the 
     quality of care provided by the Military Health System is not 
     diminished during this transition, the Walter Reed Army 
     Medical Center shall be adequately funded, to include 
     necessary renovation and maintenance of existing facilities, 
     to maintain the maximum level of inpatient and outpatient 
     services.
       Sec. 1702. Notwithstanding any other provision of law, none 
     of the funds in this or any other Act shall be used to 
     reorganize or relocate the functions of the Armed Forces 
     Institute of Pathology (AFIP) until the Secretary of Defense 
     has submitted, not later than December 31, 2007, a detailed 
     plan and timetable for the proposed reorganization and 
     relocation to the Committees on Appropriations and Armed 
     Services of the Senate and House of Representatives. The plan 
     shall take into consideration the recommendations of a study 
     being prepared by the Government Accountability Office (GAO), 
     provided that such study is available not later than 45 days 
     before the date specified in this section, on the impact of 
     dispersing selected functions of AFIP among several 
     locations, and the possibility of consolidating those 
     functions at one location. The plan shall include an analysis 
     of the options for the location and operation of the Program 
     Management Office for second opinion consults that are 
     consistent with the recommendations of the Base Realignment 
     and Closure Commission, together with the rationale for the 
     option selected by the Secretary.

                               CHAPTER 8

                 DEPARTMENT OF STATE AND RELATED AGENCY

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs


                    DIPLOMATIC AND CONSULAR PROGRAMS

                     (INCLUDING TRANSFER OF FUNDS)

       For an additional amount for ``Diplomatic and Consular 
     Programs'', $870,658,000, to remain available until September 
     30, 2008, of which $96,500,000 for World Wide Security 
     Upgrades is available until expended: Provided, That of the 
     funds appropriated under this heading, not more than 
     $20,000,000 shall be made available for public diplomacy 
     programs: Provided further, That prior to the obligation of 
     funds pursuant to the previous proviso, the Secretary of 
     State shall submit a report to the Committees on 
     Appropriations describing a comprehensive public diplomacy 
     strategy, with goals and expected

[[Page 9930]]

     results, for fiscal years 2007 and 2008: Provided further, 
     That of the amount available under this heading, $258,000 
     shall be transferred to, and merged with, funds available in 
     fiscal year 2007 for expenses for the United States 
     Commission on International Religious Freedom: Provided 
     further, That 20 percent of the amount available for Iraq 
     operations shall not be obligated until the Committees on 
     Appropriations receive and approve a detailed plan for 
     expenditure, prepared by the Secretary of State, and 
     submitted within 60 days after the date of enactment of this 
     Act: Provided further, That within 15 days of enactment of 
     this Act, the Office of Management and Budget shall apportion 
     $15,000,000 from amounts appropriated or otherwise made 
     available by chapter 8 of title II of division B of Public 
     Law 109-148 under the heading ``Emergencies in the Diplomatic 
     and Consular Service'' for emergency evacuations: Provided 
     further, That of the amount made available under this heading 
     for Iraq, not to exceed $20,000,000 may be transferred to, 
     and merged with, funds in the ``Emergencies in the Diplomatic 
     and Consular Service'' appropriations account, to be 
     available only for terrorism rewards.


                    OFFICE OF THE INSPECTOR GENERAL

                     (INCLUDING TRANSFER OF FUNDS)

       For an additional amount for ``Office of Inspector 
     General'', $36,500,000, to remain available until December 
     31, 2008: Provided, That $35,000,000 shall be transferred to 
     the Special Inspector General for Iraq Reconstruction for 
     reconstruction oversight.


               Educational and Cultural Exchange Programs

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

                      International Organizations


              Contributions to International Organizations

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


        Contributions for International Peacekeeping Activities

       For an additional amount for ``Contributions for 
     International Peacekeeping Activities'', $288,000,000, to 
     remain available until September 30, 2008.

                             RELATED AGENCY

                    Broadcasting Board of Governors


                 International Broadcasting Operations

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

                     BILATERAL ECONOMIC ASSISTANCE

                  Funds Appropriated to the President


           United States Agency for International Development

                Child Survival and Health Programs Fund

                     (including transfer of funds)

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


              International Disaster and Famine Assistance

       For an additional amount for ``International Disaster and 
     Famine Assistance'', $165,000,000, to remain available until 
     expended.


   Operating Expenses of the United States Agency for International 
                              Development

       For an additional amount for ``Operating Expenses of the 
     United States Agency for International Development'', 
     $8,700,000, to remain available until September 30, 2008.


   Operating Expenses of the United States Agency for International 
                Development Office of Inspector General

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

                  Other Bilateral Economic Assistance


                         Economic Support Fund

       For an additional amount for ``Economic Support Fund'', 
     $2,649,300,000, to remain available until September 30, 2008: 
     Provided, That of the funds appropriated under this heading, 
     $57,400,000 shall be made available to nongovernmental 
     organizations in Iraq for economic and social development 
     programs and activities in areas of conflict: Provided 
     further, That the responsibility for policy decisions and 
     justifications for the use of funds appropriated by the 
     previous proviso shall be the responsibility of the United 
     States Chief of Mission in Iraq: Provided further, That none 
     of the funds appropriated under this heading in this Act or 
     in prior Acts making appropriations for foreign operations, 
     export financing, and related programs may be made available 
     for the Political Participation Fund and the National 
     Institutions Fund: Provided further, That of the funds made 
     available under the heading ``Economic Support Fund'' in 
     Public Law 109-234 for Iraq to promote democracy, rule of law 
     and reconciliation, $2,000,000 should be made available for 
     the United States Institute of Peace for programs and 
     activities in Afghanistan to remain available until September 
     30, 2008.


          Assistance for Eastern Europe and the Baltic States

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

                          Department of State


                             Democracy Fund

       For an additional amount for ``Democracy Fund'', 
     $260,000,000, to remain available until September 30, 2008: 
     Provided, That of the funds appropriated under this heading, 
     not less than $190,000,000 shall be made available for the 
     Human Rights and Democracy Fund of the Bureau of Democracy, 
     Human Rights, and Labor, Department of State, and not less 
     than $60,000,000 shall be made available for the United 
     States Agency for International Development, for democracy, 
     human rights and rule of law programs in Iraq: Provided 
     further, That not later than 60 days after enactment of this 
     Act, the Secretary of State shall submit a report to the 
     Committees on Appropriations describing a comprehensive, 
     long-term strategy, with goals and expected results, for 
     strengthening and advancing democracy in Iraq.


          International Narcotics Control and Law Enforcement

                    (including rescission of funds)

       For an additional amount for ``International Narcotics 
     Control and Law Enforcement'', $257,000,000, to remain 
     available until September 30, 2008.
       Of the amounts made available for procurement of a maritime 
     patrol aircraft for the Colombian Navy under this heading in 
     Public Law 109-234, $13,000,000 are rescinded.


                    Migration and Refugee Assistance

       For an additional amount for ``Migration and Refugee 
     Assistance'', $130,500,000, to remain available until 
     September 30, 2008, of which not less than $5,000,000 shall 
     be made available to rescue Iraqi scholars.


     United States Emergency Refugee and Migration Assistance Fund

       For an additional amount for ``United States Emergency 
     Refugee and Migration Assistance Fund'', $55,000,000, to 
     remain available until expended.


    Nonproliferation, Anti-terrorism, Demining and Related Programs

       For an additional amount for ``Nonproliferation, Anti-
     Terrorism, Demining and Related Programs'', $57,500,000, to 
     remain available until September 30, 2008.

                       Department of the Treasury


               International Affairs Technical Assistance

       For an additional amount for ``International Affairs 
     Technical Assistance'', $2,750,000, to remain available until 
     September 30, 2008.

                          MILITARY ASSISTANCE

                  Funds Appropriated to the President


                   Foreign Military Financing Program

       For an additional amount for ``Foreign Military Financing 
     Program'', $265,000,000, to remain available until September 
     30, 2008.


                        Peacekeeping Operations

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

                    GENERAL PROVISIONS--THIS CHAPTER


                         authorization of funds

       Sec. 1801. Funds appropriated by this title may be 
     obligated and expended notwithstanding section 10 of Public 
     Law 91-672 (22 U.S.C. 2412), section 15 of the State 
     Department Basic Authorities Act of 1956 (22 U.S.C. 2680), 
     section 313 of the Foreign Relations Authorization Act, 
     Fiscal Years 1994 and 1995 (22 U.S.C. 6212), and section 
     504(a)(1) of the National Security Act of 1947 (50 U.S.C. 
     414(a)(1)).


                    EXTENSION OF OVERSIGHT AUTHORITY

       Sec. 1802. Section 3001(o)(1)(B) of the Emergency 
     Supplemental Appropriations Act for Defense and for the 
     Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-
     106; 117 Stat. 1238; 5 U.S.C. App., note to section 8G of 
     Public Law 95-452), as amended by section 1054(b) of the John 
     Warner National Defense Authorization Act for Fiscal Year 
     2007 (Public Law 109-364; 120 Stat. 2397) and section 2 of 
     the Iraq Reconstruction Accountability Act of 2006 (Public 
     Law 109-440), is amended by inserting ``or fiscal year 2007'' 
     after ``fiscal year 2006''.


                                lebanon

       Sec. 1803. (a) Limitation on Economic Support Fund 
     Assistance for Lebanon.--None of the funds made available in 
     this Act under the

[[Page 9931]]

     heading ``Economic Support Fund'' for cash transfer 
     assistance for the Government of Lebanon may be made 
     available for obligation until the Secretary of State reports 
     to the Committees on Appropriations on Lebanon's economic 
     reform plan and on the specific conditions and verifiable 
     benchmarks that have been agreed upon by the United States 
     and the Government of Lebanon pursuant to the Memorandum of 
     Understanding on cash transfer assistance for Lebanon.
       (b) Limitation on Foreign Military Financing Program and 
     International Narcotics Control and Law Enforcement 
     Assistance for Lebanon.--None of the funds made available in 
     this Act under the heading ``Foreign Military Financing 
     Program'' or ``International Narcotics Control and Law 
     Enforcement'' for military or police assistance to Lebanon 
     may be made available for obligation until the Secretary of 
     State submits to the Committees on Appropriations a report on 
     procedures established to determine eligibility of members 
     and units of the armed forces and police forces of Lebanon to 
     participate in United States training and assistance programs 
     and on the end use monitoring of all equipment provided under 
     such programs to the Lebanese armed forces and police forces.
       (c) Certification Required.--Prior to the initial 
     obligation of funds made available in this Act for assistance 
     for Lebanon under the headings ``Foreign Military Financing 
     Program'' and ``Nonproliferation, Anti-Terrorism, Demining 
     and Related Programs'', the Secretary of State shall certify 
     to the Committees on Appropriations that all practicable 
     efforts have been made to ensure that such assistance is not 
     provided to or through any individual, or private or 
     government entity, that advocates, plans, sponsors, engages 
     in, or has engaged in, terrorist activity.
       (d) Report Required.--Not later than 45 days after the date 
     of the enactment of this Act, the Secretary of State shall 
     submit to the Committees on Appropriations a report on the 
     Government of Lebanon's actions to implement section 14 of 
     United Nations Security Council Resolution 1701 (August 11, 
     2006).
       (e) Special Authority.--This section shall be effective 
     notwithstanding section 534(a) of Public Law 109-102, which 
     is made applicable to funds appropriated for fiscal year 2007 
     by the Continuing Appropriations Resolution, 2007 (division B 
     of Public Law 109-289, as amended by Public Law 110-5).


                           DEBT RESTRUCTURING

       Sec. 1804. Amounts appropriated for fiscal year 2007 for 
     ``Bilateral Economic Assistance--Department of the Treasury--
     Debt Restructuring'' may be used to assist Liberia in 
     retiring its debt arrearages to the International Monetary 
     Fund, the International Bank for Reconstruction and 
     Development, and the African Development Bank.


                    government accountability office

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


                    HUMAN RIGHTS AND DEMOCRACY FUND

       Sec. 1806. The Assistant Secretary of State for Democracy, 
     Human Rights, and Labor shall be responsible for all policy, 
     funding, and programming decisions regarding funds made 
     available under this Act and prior Acts making appropriations 
     for foreign operations, export financing and related programs 
     for the Human Rights and Democracy Fund of the Bureau of 
     Democracy, Human Rights, and Labor.


          INSPECTOR GENERAL OVERSIGHT OF IRAQ AND AFGHANISTAN

       Sec. 1807. (a) In General.--Subject to paragraph (2), the 
     Inspector General of the Department of State and the 
     Broadcasting Board of Governors (referred to in this section 
     as the ``Inspector General'') may use personal services 
     contracts to engage citizens of the United States to 
     facilitate and support the Office of the Inspector General's 
     oversight of programs and operations related to Iraq and 
     Afghanistan. Individuals engaged by contract to perform such 
     services shall not, by virtue of such contract, be considered 
     to be employees of the United States Government for purposes 
     of any law administered by the Office of Personnel 
     Management. The Secretary of State may determine the 
     applicability to such individuals of any law administered by 
     the Secretary concerning the performance of such services by 
     such individuals.
       (b) Conditions.--The authority under paragraph (1) is 
     subject to the following conditions:
       (1) The Inspector General determines that existing 
     personnel resources are insufficient.
       (2) The contract length for a personal services contractor, 
     including options, may not exceed 1 year, unless the 
     Inspector General makes a finding that exceptional 
     circumstances justify an extension of up to 1 additional 
     year.
       (3) Not more than 10 individuals may be employed at any 
     time as personal services contractors under the program.
       (c) Termination of Authority.--The authority to award 
     personal services contracts under this section shall 
     terminate on December 31, 2007. A contract entered into prior 
     to the termination date under this paragraph may remain in 
     effect until not later than December 31, 2009.
       (d) Other Authorities Not Affected.--The authority under 
     this section is in addition to any other authority of the 
     Inspector General to hire personal services contractors.


                             FUNDING TABLES

       Sec. 1808. (a) Funds provided in this Act for the following 
     accounts shall be made available for programs and countries 
     in the amounts contained in the respective tables included in 
     the report accompanying this Act:
       ``Diplomatic and Consular Programs''.
       ``Economic Support Fund''.
       ``Democracy Fund''.
       ``International Narcotics Control and Law Enforcement''.
       ``Migration and Refugee Assistance''.
       (b) Any proposed increases or decreases to the amounts 
     contained in the tables in the accompanying report shall be 
     subject to the regular notification procedures of the 
     Committees on Appropriations and section 634A of the Foreign 
     Assistance Act of 1961.


               SPENDING PLAN AND NOTIFICATION PROCEDURES

       Sec. 1809. Not later than 45 days after enactment of this 
     Act the Secretary of State shall submit to the Committees on 
     Appropriations a report detailing planned expenditures for 
     funds appropriated under the headings in this chapter, except 
     for funds appropriated under the heading ``International 
     Disaster and Famine Assistance'': Provided, That funds 
     appropriated under the headings in this chapter, except for 
     funds appropriated under the heading named in this section, 
     shall be subject to the regular notification procedures of 
     the Committees on Appropriations.


                 conditions on assistance for pakistan

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


                         CIVILIAN RESERVE CORPS

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


                    coordinator for iraq assistance

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

                               CHAPTER 9

                     GENERAL PROVISIONS--THIS TITLE

       Sec. 1901. (a) Congress finds that it is Defense Department 
     policy that units should not be deployed for combat unless 
     they are rated ``fully mission capable''.
       (b) None of the funds appropriated or otherwise made 
     available in this or any other Act may be used to deploy any 
     unit of the Armed Forces to Iraq unless the chief of the 
     military department concerned has certified in writing to the 
     Committees on Appropriations and the Committees on Armed 
     Services at least 15 days in advance of the deployment that 
     the unit is fully mission capable.

[[Page 9932]]

       (c) For purposes of subsection (b), the term ``fully 
     mission capable'' means capable of performing assigned 
     mission essential tasks to prescribed standards under the 
     conditions expected in the theater of operations, consistent 
     with the guidelines set forth in the Department of Defense 
     readiness reporting system.
       (d) The President, by certifying in writing to the 
     Committees on Appropriations and the Committees on Armed 
     Services that the deployment to Iraq of a unit that is not 
     assessed fully mission capable is required for reasons of 
     national security and by submitting along with the 
     certification a report in classified and unclassified form 
     detailing the particular reason or reasons why the unit's 
     deployment is necessary despite the chief of the military 
     department's assessment that the unit is not fully mission 
     capable, may waive the limitation prescribed in subsection 
     (b) on a unit-by-unit basis.
       Sec. 1902. (a) Congress finds that it is Defense Department 
     policy that Army, Army Reserve, and National Guard units 
     should not be deployed for combat beyond 365 days or that 
     Marine Corps and Marine Corps Reserve units should not be 
     deployed for combat beyond 210 days.
       (b) None of the funds appropriated or otherwise made 
     available in this or any other Act may be obligated or 
     expended to initiate the development of, continue the 
     development of, or execute any order that has the effect of 
     extending the deployment for Operation Iraqi Freedom of--
       (1) any unit of the Army, Army Reserve or Army National 
     Guard beyond 365 days; or
       (2) any unit of the Marine Corps or Marine Corps Reserve 
     beyond 210 days.
       (c) The limitation prescribed in subsection (b) shall not 
     be construed to require force levels in Iraq to be decreased 
     below the total United States force levels in Iraq prior to 
     January 10, 2007.
       (d) The President, by certifying in writing to the 
     Committees on Appropriations and the Committees on Armed 
     Services that the extension of a unit's deployment in Iraq 
     beyond the periods specified in subsection (b) is required 
     for reasons of national security and by submitting along with 
     the certification a report in classified and unclassified 
     form detailing the particular reason or reasons why the 
     unit's extended deployment is necessary, may waive the 
     limitations prescribed in subsection (b) on a unit-by-unit 
     basis.
       Sec. 1903. (a) Congress finds that it is Defense Department 
     policy that Army, Army Reserve, and National Guard units 
     should not be redeployed for combat if the unit has been 
     deployed within the previous 365 consecutive days or that 
     Marine Corps and Marine Corps Reserve units should not be 
     redeployed for combat if the unit has been deployed within 
     the previous 210 days.
       (b) None of the funds appropriated or otherwise made 
     available in this or any other Act may be obligated or 
     expended to initiate the development of, continue the 
     development of, or execute any order that has the effect of 
     deploying for Operation Iraqi Freedom of--
       (1) any unit of the Army, Army Reserve or Army National 
     Guard if such unit has been deployed within the previous 365 
     consecutive days; or
       (2) any unit of the Marine Corps or Marine Corps Reserve if 
     such unit has been deployed within the previous 210 
     consecutive days.
       (c) The limitation prescribed in subsection (b) shall not 
     be construed to require force levels in Iraq to be decreased 
     below the total United States force levels in Iraq prior to 
     January 10, 2007.
       (d) The President, by certifying in writing to the 
     Committees on Appropriations and the Committees on Armed 
     Services that the redeployment of a unit to Iraq in advance 
     of the periods specified in subsection (b) is required for 
     reasons of national security and by submitting along with the 
     certification a report in classified and unclassified form 
     detailing the particular reason or reasons why the unit's 
     redeployment is necessary, may waive the limitations 
     prescribed in subsection (b) on a unit-by-unit basis.
       Sec.1904. (a) The President shall make and transmit to 
     Congress the following determinations, along with reports in 
     classified and unclassified form detailing the basis for each 
     determination, on or before July 1, 2007:
       (1) whether the Government of Iraq has given United States 
     Armed Forces and Iraqi Security Forces the authority to 
     pursue all extremists, including Sunni insurgents and Shiite 
     militias, and is making substantial progress in delivering 
     necessary Iraqi Security Forces for Baghdad and protecting 
     such Forces from political interference; intensifying efforts 
     to build balanced security forces throughout Iraq that 
     provide even-handed security for all Iraqis; ensuring that 
     Iraq's political authorities are not undermining or making 
     false accusations against members of the Iraqi Security 
     Forces; eliminating militia control of local security; 
     establishing a strong militia disarmament program; ensuring 
     fair and just enforcement of laws; establishing political, 
     media, economic, and service committees in support of the 
     Baghdad Security Plan; and eradicating safe havens;
       (2) whether the Government of Iraq is making substantial 
     progress in meeting its commitment to pursue reconciliation 
     initiatives, including enactment of a hydro-carbon law; 
     adoption of legislation necessary for the conduct of 
     provincial and local elections; reform of current laws 
     governing the de-Baathification process; amendment of the 
     Constitution of Iraq; and allocation of Iraqi revenues for 
     reconstruction projects;
       (3) whether the Government of Iraq and United States Armed 
     Forces are making substantial progress in reducing the level 
     of sectarian violence in Iraq; and
       (4) whether the Government of Iraq is ensuring the rights 
     of minority political parties in the Iraqi Parliament are 
     protected.
       (b) If the President fails to make any of the 
     determinations specified in subsection (a), the Secretary of 
     Defense shall commence the redeployment of the Armed Forces 
     from Iraq no later than July 1, 2007, with a goal of 
     completing such redeployment within 180 days.
       (c) If the President makes the determinations specified in 
     subsection (a), the Secretary of Defense shall commence the 
     redeployment of the Armed Forces from Iraq not later than 
     October 1, 2007, with a goal of completing such redeployment 
     within 180 days.
       (d) Notwithstanding any other provision of law, funds 
     appropriated or otherwise made available in this or any other 
     Act are immediately available for obligation and expenditure 
     to plan and execute a safe and orderly redeployment of the 
     Armed Forces from Iraq, as specified in subsections (b) and 
     (c).
       (e) After the conclusion of the redeployment specified in 
     subsections (b) and (c), the Secretary of Defense may not 
     deploy or maintain members of the Armed Forces in Iraq for 
     any purpose other than the following:
       (1) Protecting American diplomatic facilities and American 
     citizens, including members of the U.S. armed forces;
       (2) Serving in roles consistent with customary diplomatic 
     positions;
       (3) Engaging in targeted special actions limited in 
     duration and scope to killing or capturing members of al-
     Qaeda and other terrorist organizations with global reach; 
     and
       (4) Training and equipping members of the Iraqi Security 
     Forces.
       (f) Notwithstanding any other provision of law, 50 percent 
     of the funds appropriated by title I of this Act for 
     assistance to Iraq under each of the headings ``Economic 
     Support Fund'' and ``International Narcotics Control and Law 
     Enforcement'' shall be withheld from obligation until the 
     President has made a certification to Congress that the 
     Government of Iraq has enacted a broadly accepted hydro-
     carbon law that equitably shares oil revenues among all 
     Iraqis; adopted legislation necessary for the conduct of 
     provincial and local elections, taken steps to implement such 
     legislation, and set a schedule to conduct provincial and 
     local elections; reformed current laws governing the de-
     Baathification process to allow for more equitable treatment 
     of individuals affected by such laws; amended the 
     Constitution of Iraq consistent with the principles contained 
     in Article 137 of such constitution; and allocated and begun 
     expenditure of $10,000,000,000 in Iraqi revenues for 
     reconstruction projects, including delivery of essential 
     services, on an equitable basis.
       (g) The requirement to withhold funds from obligation 
     pursuant to subsection (f) shall not apply with respect to 
     funds made available under the heading ``Economic Support 
     Fund'' for continued support for the Community Action Program 
     and Community Stabilization Program in Iraq administered by 
     the United States Agency for International Development or for 
     programs and activities to promote democracy in Iraq.
       (h) Beginning on September 1, 2007, and every 60 days 
     thereafter, the Commander, Multi-National Forces--Iraq and 
     the United States Ambassador to Iraq shall jointly submit to 
     Congress a report describing and assessing in detail the 
     current progress being made by the Government of Iraq 
     regarding the criteria set forth in subsection (a).

                                TITLE II

           ADDITIONAL HURRICANE DISASTER RELIEF AND RECOVERY

                               CHAPTER 1

                       DEPARTMENT OF AGRICULTURE

                    GENERAL PROVISION--THIS CHAPTER

       Sec. 2101. Section 1231(k)(2) of the Food Security Act of 
     1985 (16 U.S.C. 3831(k)(2)) is amended by striking ``During 
     calendar year 2006, the'' and inserting ``The''.

                               CHAPTER 2

                         DEPARTMENT OF JUSTICE

                       Office of Justice Programs


               STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

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

                         DEPARTMENT OF COMMERCE

            National Oceanic and Atmospheric Administration


                  OPERATIONS, RESEARCH, AND FACILITIES

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

[[Page 9933]]



             NATIONAL AERONAUTICS AND SPACE ADMINISTRATION


                        Exploration Capabilities

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

                    GENERAL PROVISION--THIS CHAPTER

       Sec. 2201. Up to $48,000,000 of amounts made available to 
     the National Aeronautics and Space Administration in Public 
     Law 109-148 and Public Law 109-234 for emergency hurricane 
     and other natural disaster-related expenses may be used to 
     reimburse hurricane-related costs incurred by NASA in fiscal 
     year 2005.

                               CHAPTER 3

                      DEPARTMENT OF DEFENSE--CIVIL

                         DEPARTMENT OF THE ARMY

                       Corps of Engineers--Civil


                              CONSTRUCTION

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


                 Flood Control and Coastal Emergencies

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

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 2301. The Secretary is authorized and directed to 
     determine the value of eligible reimbursable expenses 
     incurred by local governments in storm-proofing pumping 
     stations, constructing safe houses for operators, and other 
     interim flood control measures in and around the New Orleans 
     metropolitan area that the Secretary determines to be 
     integral to the overall plan to ensure operability of the 
     stations during hurricanes, storms and high water events and 
     the flood control plan for the area.
       Sec. 2302. (a) The Secretary of the Army is authorized and 
     directed to utilize funds remaining available for obligation 
     from the amounts appropriated in chapter 3 of Public Law 109-
     234 under the heading ``Flood Control and Coastal 
     Emergencies'' for projects in the greater New Orleans 
     metropolitan area to prosecute these projects in a manner 
     which promotes the goal of continuing work at an optimal 
     pace, while maximizing, to the greatest extent practicable, 
     levels of protection to reduce the risk of storm damage to 
     people and property.
       (b) The expenditure of funds as provided in subsection (a) 
     may be made without regard to individual amounts or purposes 
     specified in chapter 3 of Public Law 109-234.
       (c) Any reallocation of funds that are necessary to 
     accomplish the goal established in subsection (a) are 
     authorized, subject to the approval of the House and Senate 
     Committees on Appropriation.
       Sec. 2303. The Chief of Engineers shall investigate the 
     overall technical advantages, disadvantages and operational 
     effectiveness of operating the new pumping stations at the 
     mouths of the 17th Street, Orleans Avenue and London Avenue 
     canals in the New Orleans area directed for construction in 
     Public Law 109-234 concurrently or in series with existing 
     pumping stations serving these canals and the advantages, 
     disadvantages and technical operational effectiveness of 
     removing the existing pumping stations and configuring the 
     new pumping stations and associated canals to handle all 
     needed discharges; and the advantages, disadvantages and 
     technical operational effectiveness of replacing or improving 
     the floodwalls and levees adjacent to the three outfall 
     canals: Provided, That the analysis should be conducted at 
     Federal expense: Provided further, That the analysis shall be 
     completed and furnished to the Congress not later than three 
     months after enactment of this Act.
       Sec. 2304. Using funds made available in Chapter 3 under 
     title II of Public Law 109-234, under the heading 
     ``Investigations'', the Secretary of the Army, in 
     consultation with other agencies and the State of Louisiana 
     shall accelerate completion as practicable the final report 
     of the Chief of Engineers recommending a comprehensive plan 
     to deauthorize deep draft navigation on the Mississippi River 
     Gulf Outlet: Provided, That the plan shall incorporate and 
     build upon the Interim Mississippi River Gulf Outlet Deep-
     Draft De-Authorization Report submitted to Congress in 
     December 2006 pursuant to Public Law 109-234.

                               CHAPTER 4

                     SMALL BUSINESS ADMINISTRATION

                     Disaster Loans Program Account


                     (including transfer of funds)

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

                               CHAPTER 5

                    DEPARTMENT OF HOMELAND SECURITY

                  Federal Emergency Management Agency


                            DISASTER RELIEF

                     (INCLUDING TRANSFER OF FUNDS)

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

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 2501. (a) In General.--Notwithstanding any other 
     provision of law, including any agreement, the Federal share 
     of assistance, including direct Federal assistance, provided 
     for the States of Louisiana, Mississippi, Florida, Alabama, 
     and Texas in connection with Hurricanes Katrina, Wilma, 
     Dennis, and Rita under sections 403, 406, 407, and 408 of the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act (42 U.S.C. 5170b, 5172, 5173, and 5174) shall be 100 
     percent of the eligible costs under such sections.
       (b) Applicability.--The Federal share provided by 
     subsection (a) shall apply to disaster assistance applied for 
     before the date of enactment of this Act.
       Sec. 2502. (a) Community Disaster Loan Act.--
       (1) In general.--Section 2(a) of the Community Disaster 
     Loan Act of 2005 (Public Law 109-88) is amended by striking 
     ``Provided further, That notwithstanding section 417(c)(1) of 
     the Stafford Act, such loans may not be canceled:''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall be effective on the date of enactment of the Community 
     Disaster Loan Act of 2005 (Public Law 109-88).
       (b) Emergency Supplemental Appropriations Act.--
       (1) In general.--Chapter 4 of title II of the Emergency 
     Supplemental Appropriations Act for Defense, the Global War 
     on Terror, and Hurricane Recovery, 2006 (Public Law 109-234) 
     is amended under Federal Emergency Management Agency, 
     ``Disaster Assistance Direct Loan Program Account'' by 
     striking ``Provided further, That notwithstanding section 
     417(c)(1) of such Act, such loans may not be canceled:''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall be effective on the date of enactment of the Emergency 
     Supplemental Appropriations Act for Defense, the Global War 
     on Terror, and Hurricane Recovery, 2006 (Public Law 109-234).
       Sec. 2503. (a) In General.--Section 2401 of the Emergency 
     Supplemental Appropriations Act for Defense, the Global War 
     on Terror, and Hurricane Recovery, 2006 (Public Law 109-234) 
     is amended by striking ``12 months'' and inserting ``24 
     months''.
       (b) Effective Date.--The amendment made by this section 
     shall be effective on the date of enactment of the Emergency 
     Supplemental Appropriations Act for Defense, the Global War 
     on Terror, and Hurricane Recovery, 2006 (Public Law 109-234).

                               CHAPTER 6

                       DEPARTMENT OF THE INTERIOR

                         National Park Service


                       Historic Preservation Fund

       For an additional amount for the ``Historic Preservation 
     Fund'' for necessary expenses related to the consequences of 
     Hurricane Katrina

[[Page 9934]]

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

                    GENERAL PROVISION--THIS CHAPTER


                     (including transfer of funds)

       Sec. 2601. Of the disaster relief funds from Public Law 
     109-234, 120 Stat. 418, 461, (June 30, 2006), chapter 5, 
     ``National Park Service--Historic Preservation Fund'', for 
     necessary expenses related to the consequences of Hurricane 
     Katrina and other hurricanes of the 2005 season that were 
     allocated to the State of Mississippi by the National Park 
     Service, $500,000 is hereby transferred to the ``National 
     Park Service--National Recreation and Preservation'' 
     appropriation: Provided, That these funds may be used to 
     reconstruct destroyed properties that at the time of 
     destruction were listed in the National Register of Historic 
     Places and are otherwise qualified to receive these funds: 
     Provided further, That the State Historic Preservation 
     Officer certifies that, for the community where that 
     destroyed property was located, the property is iconic to or 
     essential to illustrating that community's historic identity, 
     that no other property in that community with the same 
     associative historic value has survived, and that sufficient 
     historical documentation exists to ensure an accurate 
     reproduction.

                               CHAPTER 7

                        DEPARTMENT OF EDUCATION

                            Higher Education

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

                      Hurricane Education Recovery

       For carrying out activities authorized by subpart 1 of part 
     D of title V of the Elementary and Secondary Education Act of 
     1965, $30,000,000, to remain available until expended, for 
     use by the States of Louisiana, Mississippi, and Alabama 
     primarily for recruiting, retaining, and compensating new and 
     current teachers, school principals, assistant principals, 
     principal resident directors, assistant directors, and other 
     educators, who commit to work for at least three years in 
     school-based positions in public elementary and secondary 
     schools located in an area with respect to which a major 
     disaster was declared under section 401 of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5170) by reason of Hurricane Katrina or Hurricane 
     Rita, including through such mechanisms as paying salary 
     premiums, performance bonuses, housing subsidies, signing 
     bonuses, and relocation costs and providing loan forgiveness, 
     with priority given to teachers and school-based school 
     principals, assistant principals, principal resident 
     directors, assistant directors, and other educators who 
     previously worked or lived in one of the affected areas, are 
     currently employed (or become employed) in such a school in 
     any of the affected areas after those disasters, and commit 
     to continue that employment for at least 3 years, Provided, 
     That funds available under this heading to such States may 
     also be used for 1 or more of the following activities: (1) 
     to build the capacity, knowledge, and skill of teachers and 
     school-based school principals, assistant principals, 
     principal resident directors, assistant directors, and other 
     educators in such public elementary and secondary schools to 
     provide an effective education, including the design, 
     adaptation, and implementation of high-quality formative 
     assessments; (2) the establishment of partnerships with 
     nonprofit entities with a demonstrated track record in 
     recruiting and retaining outstanding teachers and other 
     school-based school principals, assistant principals, 
     principal resident directors, and assistant directors; and 
     (3) paid release time for teachers and principals to identify 
     and replicate successful practices from the fastest-improving 
     and highest-performing schools: Provided further, That the 
     Secretary of Education shall allocate amounts available under 
     this heading among such States that submit applications; that 
     such allocation shall be based on the number of public 
     elementary and secondary schools in each State that were 
     closed for 19 days or more during the period beginning on 
     August 29, 2005, and ending on December 31, 2005, due to 
     Hurricane Katrina or Hurricane Rita; and that such States 
     shall in turn allocate funds to local educational agencies, 
     with priority given first to such agencies with the highest 
     percentages of public elementary and secondary schools that 
     are closed as a result of such hurricanes as of the date of 
     enactment of this Act and then to such agencies with the 
     highest percentages of public elementary and secondary 
     schools with a student-teacher ratio of at least 25 to 1, and 
     with any remaining amounts to be distributed to such agencies 
     with demonstrated need, as determined by the State 
     Superintendent of Education: Provided further, That, in the 
     case of any State that chooses to use amounts available under 
     this heading for performance bonuses, not later than 60 days 
     after the date of enactment of this Act, and in collaboration 
     with local educational agencies, teachers' unions, local 
     principals' organizations, local parents' organizations, 
     local business organizations, and local charter schools 
     organizations, the State educational agency shall develop a 
     plan for a rating system for performance bonuses, and if no 
     agreement has been reached that is satisfactory to all 
     consulting entities by such deadline, the State educational 
     agency shall immediately send a letter notifying Congress and 
     shall, not later than 30 days after such notification, 
     establish and implement a rating system that shall be based 
     on classroom observation and feedback more than once 
     annually, conducted by multiple sources (including, but not 
     limited to, principals and master teachers), and evaluated 
     against research-based rubrics that use planning, 
     instructional, and learning environment standards to measure 
     teacher performance, except that the requirements of this 
     proviso shall not apply to a State that has enacted a State 
     law in 2006 authorizing performance pay for teachers.


                 Programs to Restart School Operations

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

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 2 701. Section 105(b) of title IV of division B of 
     Public Law 109-148 is amended by adding at the end the 
     following new sentence: ``With respect to the program 
     authorized by section 102 of this Act, the waiver authority 
     in subsection (a) of this section shall be available until 
     the end of fiscal year 2008.''
       Sec. 2 702. Notwithstanding section 2002(c) of the Social 
     Security Act (42 U.S.C. 1397a(c)), funds made available under 
     the heading ``Social Services Block Grant'' in division B of 
     Public Law 109-148 shall be available for expenditure by the 
     States through the end of fiscal year 2009.
       Sec. 2 703. (a) In the event that Louisiana, Mississippi, 
     Alabama, or Texas fails to meet its match requirement with 
     funds appropriated in fiscal years 2006 or 2007, for fiscal 
     years 2008 and 2009, the Secretary of Health and Human 
     Services may waive the application of section 2617(d)(4) of 
     the Public Health Service Act for Louisiana, Mississippi, 
     Alabama, and Texas.
       (b) The Secretary may not exercise the waiver authority 
     available under subsection (a) to allow a grantee to provide 
     less than a 25 percent matching grant.
       (c) For grant years beginning in 2008, Louisiana, 
     Mississippi, Alabama, and Texas and any eligible metropolitan 
     area in Louisiana, Mississippi, Alabama, and Texas shall 
     comply with each of the applicable requirements under title 
     XXVI of the Public Health Service Act (42 U.S.C. 300ff-11 et 
     seq.).

[[Page 9935]]



                               CHAPTER 8

                      DEPARTMENT OF TRANSPORTATION

                     Federal Highway Administration


                          Federal-Aid Highways

                        Emergency Relief Program

                    (including rescission of funds)

       For an additional amount for the Emergency Relief Program 
     as authorized under section 125 of title 23, United States 
     Code, $682,942,000, to remain available until expended: 
     Provided, That section 125(d)(1) of title 23, United States 
     Code, shall not apply to emergency relief projects that 
     respond to damage caused by the 2005-2006 winter storms in 
     the State of California: Provided further, That of the 
     unobligated balances of funds apportioned to each State under 
     chapter 1 of title 23, United States Code, $682,942,000 are 
     rescinded: Provided further, That such rescission shall not 
     apply to the funds distributed in accordance with sections 
     130(f) and 104(b)(5) of title 23, United States Code; 
     sections 133(d)(1) and 163 of such title, as in effect on the 
     day before the date of enactment of Public Law 109-59; and 
     the first sentence of section 133(d)(3)(A) of such title.

                     Federal Transit Administration


                             Formula Grants

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

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                      Office of Inspector General

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

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 2801. The third proviso under the heading ``Department 
     of Housing and Urban Development--Public and Indian Housing--
     Tenant-Based Rental Assistance'' in chapter 9 of title I of 
     division B of Public Law 109-148 (119 Stat. 2779) is amended 
     by striking ``for up to 18 months'' and inserting ``until 
     December 31, 2007''.
       Sec. 2802. Section 21033 of the Continuing Appropriations 
     Resolution, 2007 (division B of Public Law 109-289, as 
     amended by Public Law 110-5) is amended by adding after the 
     third proviso: ``: Provided further, That notwithstanding the 
     previous proviso, except for applying the 2007 Annual 
     Adjustment Factor and making any other specified adjustments, 
     public housing agencies specified in category 1 below shall 
     receive funding for calendar year 2007 based on the higher of 
     the amounts the agencies would receive under the previous 
     proviso or the amounts the agencies received in calendar year 
     2006, and public housing agencies specified in categories 2 
     and 3 below shall receive funding for calendar year 2007 
     equal to the amounts the agencies received in calendar year 
     2006, except that public housing agencies specified in 
     categories 1 and 2 below shall receive funding under this 
     proviso only if, and to the extent that, any such public 
     housing agency submits a plan, approved by the Secretary, 
     that demonstrates that the agency can effectively use within 
     12 months the funding that the agency would receive under 
     this proviso that is in addition to the funding that the 
     agency would receive under the previous proviso: (1) public 
     housing agencies that are eligible for assistance under 
     section 901 in Public Law 109-148 (119 Stat. 2781) or are 
     located in the same counties as those eligible under section 
     901 and operate voucher programs under section 8(o) of the 
     U.S. Housing Act of 1937 but do not operate public housing 
     under section 9 of such Act, and any public housing agency 
     that otherwise qualifies under this category must demonstrate 
     that they have experienced a loss of rental housing stock as 
     a result of the 2005 hurricanes; (2) public housing agencies 
     that would receive less funding under the previous proviso 
     than they would receive under this proviso and that have been 
     placed in receivership or the Secretary has declared to be in 
     breach of an Annual Contributions Contract by June 1, 2007; 
     and (3) public housing agencies that spent more in calendar 
     year 2006 than the total of the amounts of any such public 
     housing agency's allocation amount for calendar year 2006 and 
     the amount of any such public housing agency's available 
     housing assistance payments undesignated funds balance from 
     calendar year 2005 and the amount of any such public housing 
     agency's available administrative fees undesignated funds 
     balance through calendar year 2006''.
       Sec. 2803. Section 901 of Public Law 109-148 is amended by 
     deleting ``calendar year 2006'' and inserting ``calendar 
     years 2006 and 2007''.

                               TITLE III

                     OTHER EMERGENCY APPROPRIATIONS

                               CHAPTER 1

                         DEPARTMENT OF COMMERCE

            National Oceanic and Atmospheric Administration


                  OPERATIONS, RESEARCH, AND FACILITIES

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

                               CHAPTER 2

                      DEPARTMENT OF DEFENSE--CIVIL

                         DEPARTMENT OF THE ARMY

                       Corps of Engineers--Civil


                       operation and maintenance

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


                 Flood Control and Coastal Emergencies

       For an additional amount for ``Flood Control and Coastal 
     Emergencies'', as authorized by section 5 of the Act of 
     August 18, 1941 (33 U.S.C. 701n), to support emergency 
     operations, repairs and other activities in response to 
     flood, drought and earthquake emergencies as authorized by 
     law, $150,000,000, to remain available until expended: 
     Provided, That the Chief of Engineers, acting through the 
     Assistant Secretary of the Army for Civil Works, shall 
     provide a monthly report to the House and Senate Committees 
     on Appropriations detailing the allocation and obligation of 
     these funds, beginning not later than 60 days after enactment 
     of the Act.

                       DEPARTMENT OF THE INTERIOR

                         Bureau of Reclamation


                      WATER AND RELATED RESOURCES

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

                               CHAPTER 3

                       DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management


                        Wildland Fire Management

                     (Including Transfer of Funds)

       For an additional amount for ``Wildland Fire Management'', 
     $100,000,000, to remain available until expended, for urgent 
     wildland fire suppression activities: Provided, That such 
     funds shall only become available if funds previously 
     provided for wildland fire suppression will be exhausted 
     imminently and the Secretary of the Interior notifies the 
     House and Senate Committees on Appropriations in writing of 
     the need for these additional funds: Provided further, That 
     such funds are also available for repayment to other 
     appropriations accounts from which funds were transferred for 
     wildfire suppression.

                United States Fish and Wildlife Service


                          Resource Management

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

                         National Park Service


                 Operation of the National Park System

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

                    United States Geological Survey


                 Surveys, Investigations, and Research

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

                       DEPARTMENT OF AGRICULTURE

                             Forest Service


                         National Forest System

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


                        Wildland Fire Management

                     (Including Transfer of Funds)

       For an additional amount for ``Wildland Fire Management'', 
     $400,000,000, to remain available until expended, for urgent 
     wildland fire suppression activities: Provided, That such 
     funds shall only become available if funds provided 
     previously for wildland fire suppression will be exhausted 
     imminently and the Secretary of Agriculture notifies the 
     House and Senate Committees on Appropriations in writing of 
     the need for these additional funds: Provided further, That 
     such funds are also available for repayment to other 
     appropriation accounts from which funds were transferred for 
     wildfire suppression.

                    GENERAL PROVISION--THIS CHAPTER

       Sec. 3301. (a) For fiscal year 2007, payments shall be made 
     from any revenues, fees, penalties,

[[Page 9936]]

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

                               CHAPTER 4

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

               Centers for Disease Control and Prevention


                 DISEASE CONTROL, RESEARCH AND TRAINING

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

                Administration for Children and Families


                   LOW-INCOME HOME ENERGY ASSISTANCE

       For an additional amount for ``Low-Income Home Energy 
     Assistance'' under section 2604(a) through (d) of the Low-
     Income Home Energy Assistance Act of 1981 (42 U.S.C. 8623(a) 
     through (d)), $200,000,000.
       For an additional amount for ``Low-Income Home Energy 
     Assistance'' under section 2604(e) of the Low-Income Home 
     Energy Assistance Act of 1981 (42 U.S.C. 8623(e)), 
     $200,000,000.

                        Office of the Secretary


            PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND

                     (INCLUDING TRANSFER OF FUNDS)

       For an additional amount for ``Public Health and Social 
     Services Emergency Fund'' to prepare for and respond to an 
     influenza pandemic, $625,000,000, to remain available until 
     expended: Provided, That this amount shall be for activities 
     including the development and purchase of vaccine, 
     antivirals, necessary medical supplies, diagnostics, and 
     other surveillance tools: Provided further, That products 
     purchased with these funds may, at the discretion of the 
     Secretary of Health and Human Services, be deposited in the 
     Strategic National Stockpile: Provided further, That 
     notwithstanding section 496(b) of the Public Health Service 
     Act, funds may be used for the construction or renovation of 
     privately owned facilities for the production of pandemic 
     vaccine and other biologicals, where the Secretary finds such 
     a contract necessary to secure sufficient supplies of such 
     vaccines or biologicals: Provided further, That funds 
     appropriated herein may be transferred to other appropriation 
     accounts of the Department of Health and Human Services, as 
     determined by the Secretary to be appropriate, to be used for 
     the purposes specified in this sentence.


                  COVERED COUNTERMEASURE PROCESS FUND

       For carrying out section 319F-4 of the Public Health 
     Service Act (42 U.S.C. 247d-6e) to compensate individuals for 
     injuries caused by H5N1 vaccine, in accordance with the 
     declaration regarding avian influenza viruses issued by the 
     Secretary of Health and Human Services on January 26, 2007, 
     pursuant to section 319F-3(b) of such Act (42 U.S.C. 247d-
     6d(b)), $25,000,000, to remain available until expended.

                    GENERAL PROVISIONS--THIS CHAPTER


                        (including rescissions)

       Sec. 3401. (a). From unexpended balances available for the 
     Training and Employment Services account under the Department 
     of Labor, the following amounts are hereby rescinded:
       (1) $3,589,000 transferred pursuant to the 2001 Emergency 
     Supplemental Appropriations Act for Recovery from and 
     Response to Terrorist Attacks on the United States (Public 
     Law 107-38);
       (2) $834,000 transferred pursuant to the Emergency 
     Supplemental Appropriations Act of 1994 (Public Law 103-211); 
     and
       (3) $71,000 for the Consortium for Worker Education 
     pursuant to the Emergency Supplemental Act, 2002 (Public Law 
     107-117).
       (b) From unexpended balances available for the State 
     Unemployment Insurance and Employment Service Operations 
     account under the Department of Labor pursuant to the 
     Emergency Supplemental Act, 2002 (Public Law 107-117), 
     $4,100,000 are hereby rescinded.
       Sec. 3402. (a) For an additional amount under ``Department 
     of Education, Safe Schools and Citizenship Education'', 
     $8,594,000 shall be available for Safe and Drug-Free Schools 
     National Programs for competitive grants to local educational 
     agencies to address youth violence and related issues.
       (b) The competition under subsection (a) shall be limited 
     to local educational agencies that operate schools currently 
     identified as persistently dangerous under section 9532 of 
     the Elementary and Secondary Education Act of 1965.

                               CHAPTER 5

                           LEGISLATIVE BRANCH

                        ARCHITECT OF THE CAPITOL

                          Capitol Power Plant

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

                               CHAPTER 6

                     DEPARTMENT OF VETERANS AFFAIRS

                     Veterans Health Administration


                            MEDICAL SERVICES

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


                         MEDICAL ADMINISTRATION

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


                           MEDICAL FACILITIES

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


                    MEDICAL AND PROSTHETIC RESEARCH

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

                      Departmental Administration


                       General Operating Expenses

                     (including transfer of funds)

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


                     INFORMATION TECHNOLOGY SYSTEMS

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

[[Page 9937]]




                      CONSTRUCTION, MINOR PROJECTS

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

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 3601. The Director of the Congressional Budget Office 
     shall, not later than November 15, 2007, submit to the 
     Committees on Appropriations of the House of Representatives 
     and the Senate a report projecting appropriations necessary 
     for the Departments of Defense and Veterans Affairs to 
     continue providing necessary health care to veterans of the 
     conflicts in Iraq and Afghanistan. The projections should 
     span several scenarios for the duration and number of forces 
     deployed in Iraq and Afghanistan, and more generally, for the 
     long-term health care needs of deployed troops engaged in the 
     global war on terrorism over the next ten years.
       Sec. 3602. Notwithstanding any other provision of law, 
     appropriations made by Public Law 110-5, which the Secretary 
     of Veterans Affairs contributes to the Department of Defense/
     Department of Veterans Affairs Health Care Sharing Incentive 
     Fund under the authority of section 8111(d) of title 38, 
     United States Code, shall remain available until expended for 
     any purpose authorized by section 8111 of title 38, United 
     States Code.
       Sec. 3603. (a)(1) Notwithstanding any other provision of 
     law, the Secretary of Veterans Affairs (referred to in this 
     section as the ``Secretary'') may convey to the State of 
     Texas, without consideration, all right, title, and interest 
     of the United States in and to the parcel of real property 
     comprising the location of the Marlin, Texas, Department of 
     Veterans Affairs Medical Center.
       (2) The property conveyed under paragraph (1) shall be used 
     by the State of Texas for the purposes of a prison.
       (b) In carrying out the conveyance under subsection (a), 
     the Secretary--
       (1) shall not be required to comply with, and shall not be 
     held liable under, any Federal law (including a regulation) 
     relating to the environment or historic preservation; but
       (2) may, at the discretion of the Secretary, conduct 
     environmental cleanup on the parcel to be conveyed, at a cost 
     not to exceed $500,000, using amounts made available for 
     environmental cleanup of sites under the jurisdiction of the 
     Secretary.

                                TITLE IV

                             OTHER MATTERS

                               CHAPTER 1

                       DEPARTMENT OF AGRICULTURE

                          Farm Service Agency


                         SALARIES AND EXPENSES

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

                    GENERAL PROVISIONS--THIS CHAPTER

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

                               CHAPTER 2

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 4201. Hereafter, federal employees at the National 
     Energy Technology Laboratory shall be classified as 
     inherently governmental for the purpose of the Federal 
     Activities Inventory Reform Act of 1998 (31 U.S.C. 501 note).
       Sec. 4202. Prohibition on Certain Uses of Funds by BPA. 
     None of the funds made available under this or any other Act 
     shall be used during fiscal year 2007 to make, or plan or 
     prepare to make, any payment on bonds issued by the 
     Administrator of the Bonneville Power Administration 
     (referred in this section as the ``Administrator'') or for an 
     appropriated Federal Columbia River Power System investment, 
     if the payment is both--
       (1) greater, during any fiscal year, than the payments 
     calculated in the rate hearing of the Administrator to be 
     made during that fiscal year using the repayment method used 
     to establish the rates of the Administrator as in effect on 
     October 1, 2006; and
       (2) based or conditioned on the actual or expected net 
     secondary power sales receipts of the Administrator.

                               CHAPTER 3

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 4301. (a) Section 102(a)(3)(B) of the Help America 
     Vote Act of 2002 (42 U.S.C. 15302(a)(3)(B)) is amended by 
     striking ``January 1, 2006'' and inserting ``March 1, 2008''.
       (b) The amendment made by subsection (a) shall take effect 
     as if included in the enactment of the Help America Vote Act 
     of 2002.
       Sec. 4302. The structure of any of the offices or 
     components within the Office of National Drug Control Policy 
     shall remain as they were on October 1, 2006. None of the 
     funds appropriated or otherwise made available in the 
     Continuing Appropriations Resolution, 2007 (Public Law 110-5) 
     may be used to implement a reorganization of offices within 
     the Office of National Drug Control Policy without the 
     explicit approval of the Committees on Appropriations of the 
     House of Representatives and the Senate.
       Sec. 4303. From the amount provided by section 21067 of the 
     Continuing Appropriations Resolution, 2007 (Public Law 110-
     5), the National Archives and Records Administration may 
     obligate monies necessary to carry out the activities of the 
     Public Interest Declassification Board.
       Sec. 4304. Notwithstanding the notice requirement of the 
     Transportation, Treasury, Housing and Urban Development, the 
     Judiciary, the District of Columbia, and Independent Agencies 
     Appropriations Act, 2006, 119 Stat. 2509 (Public Law 109-
     115), as continued in section 104 of the Continuing 
     Appropriations Resolution, 2007 (Public Law 110-5), the 
     District of Columbia Courts may reallocate not more than 
     $1,000,000 of the funds provided for fiscal year 2007 under 
     the Federal Payment to the District of Columbia Courts for 
     facilities among the items and entities funded under that 
     heading for operations.
       Sec. 4305. (a) Not later than 90 days after the date of 
     enactment of this Act, the Secretary of the Treasury, in 
     coordination with the Securities and Exchange Commission and 
     in consultation with the Departments of State and Energy, 
     shall prepare and submit to the Senate Committee on 
     Appropriations, the House Committee on Appropriations, the 
     Senate Committee on Banking, Housing, and Urban Affairs, the 
     House Committee on Financial Services, the Senate Foreign 
     Relations Committee, and the House Foreign Affairs Committee 
     a written report, which may include a classified annex, 
     containing the names of companies which either directly or 
     through a parent or subsidiary company, including partly-
     owned subsidiaries, are known to conduct significant business 
     operations in Sudan relating to natural resource extraction, 
     including oil-related activities and mining of minerals. The 
     reporting provision shall not apply to companies operating 
     under licenses from the Office of Foreign Assets Control or 
     otherwise expressly exempted under United States law from 
     having to obtain such licenses in order to operate in Sudan.
       (b) Not later than 45 days following the submission to 
     Congress of the list of companies conducting business 
     operations in Sudan relating to natural resource extraction 
     as required above, the General Services Administration shall 
     determine whether the United States Government has an active 
     contract for the procurement of goods or services with any of 
     the identified companies, and provide notification to the 
     appropriate committees of Congress which may include a 
     classified annex, regarding the companies, nature of the 
     contract, and dollar amounts involved.


                         (including rescission)

       Sec. 4306. (a) Of the funds provided for the General 
     Services Administration, ``Office of Inspector General'' in 
     section 21061 of the Continuing Appropriations Resolution, 
     2007 (division B of Public Law 109-289, as amended by Public 
     Law 110-5), $4,500,000 are rescinded.
       (b) For an additional amount for the General Services 
     Administration, ``Office of Inspector General'', $4,500,000, 
     to remain available until September 30, 2008.
       Sec. 4307. Section 21073 of the Continuing Appropriations 
     Resolution, 2007 (Public Law 110-5) is amended by adding a 
     new subsection (j) as follows:
       ``(j) Notwithstanding section 101, any appropriation or 
     funds made available to the District of Columbia pursuant to 
     this division for `Federal Payment for Foster Care 
     Improvement in the District of Columbia' shall be available 
     in accordance with an expenditure plan submitted by the Mayor 
     of the District of Columbia not later than 60 days after the 
     enactment of this section which details the activities to be 
     carried out with such Federal Payment.''.

                               CHAPTER 4

                    DEPARTMENT OF HOMELAND SECURITY

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 4401. Not to exceed $30,000,000 from unobligated 
     balances remaining from prior appropriations for United 
     States Coast Guard, ``Retired Pay'', shall remain available 
     until expended in the account and for the purposes for which 
     the appropriations were provided, including the payment of 
     obligations otherwise chargeable to lapsed or current 
     appropriations for this purpose.
       Sec. 4402. (a) In General.--Any contract, subcontract, task 
     or delivery order described in subsection (b) shall contain 
     the following:
       (1) A requirement for a technical review of all designs, 
     design changes, and engineering change proposals, and a 
     requirement to specifically address all engineering concerns 
     identified in the review before the obligation of further 
     funds may occur.
       (2) A requirement that the Coast Guard maintain technical 
     warrant holder authority, or the equivalent, for major 
     assets.
       (3) A requirement that no procurement subject to subsection 
     (b) for lead asset production or the implementation of a 
     major design change shall be entered into unless an 
     independent third party with no financial interest in the 
     development, construction, or modification of any component 
     of the asset, selected by the Commandant, determines that 
     such action is advisable.

[[Page 9938]]

       (4) A requirement for independent life-cycle cost estimates 
     of lead assets and major design and engineering changes.
       (5) A requirement for the measurement of contractor and 
     subcontractor performance based on the status of all work 
     performed. For contracts under the Integrated Deepwater 
     Systems program, such requirement shall include a provision 
     that links award fees to successful acquisition outcomes 
     (which shall be defined in terms of cost, schedule, and 
     performance).
       (6) A requirement that the Commandant of the Coast Guard 
     assign an appropriate officer or employee of the Coast Guard 
     to act as chair of each integrated product team and higher-
     level team assigned to the oversight of each integrated 
     product team.
       (7) A requirement that the Commandant of the Coast Guard 
     may not award or issue any contract, task or delivery order, 
     letter contract modification thereof, or other similar 
     contract, for the acquisition or modification of an asset 
     under a procurement subject to subsection (b) unless the 
     Coast Guard and the contractor concerned have formally agreed 
     to all terms and conditions or the head of contracting 
     activity for the Coast Guard determines that a compelling 
     need exists for the award or issue of such instrument.
       (b) Contracts, Subcontracts, Task and Delivery Orders 
     Covered.--Subsection (a) applies to--
       (1) any major procurement contract, first-tier subcontract, 
     delivery or task order entered into by the Coast Guard;
       (2) any first-tier subcontract entered into under such a 
     contract;
       (3) any task or delivery order issued pursuant to such a 
     contract or subcontract.
       (c) Expenditure of Deepwater Funds.--Of the funds available 
     for the Integrated Deepwater Systems program, $650,000,000 
     may not be obligated until the Committees on Appropriations 
     of the Senate and the House of Representatives receive an 
     expenditure plan directly from the Coast Guard that--
       (1) defines activities, milestones, yearly costs, and life-
     cycle costs for each procurement of a major asset, including 
     an independent cost estimate for each;
       (2) identifies life-cycle staffing and training needs of 
     Coast Guard project managers and of procurement and contract 
     staff;
       (3) identifies competition to be conducted in each 
     procurement;
       (4) describes procurement plans that do not rely on a 
     single industry entity or contract;
       (5) contains very limited indefinite delivery/indefinite 
     quantity contracts and explains the need for any indefinite 
     delivery/indefinite quantity contracts;
       (6) complies with all applicable acquisition rules, 
     requirements, and guidelines, and incorporates the best 
     systems acquisition management practices of the Federal 
     Government;
       (7) complies with the capital planning and investment 
     control requirements established by the Office of Management 
     and Budget, including circular A-11, part 7;
       (8) includes a certification by the head of contracting 
     activity for the Coast Guard and the Chief Procurement 
     Officer of the Department of Homeland Security that the Coast 
     Guard has established sufficient controls and procedures and 
     has sufficient staffing to comply with all contracting 
     requirements, and that any conflicts of interest have been 
     sufficiently addressed;
       (9) includes a description of the process used to act upon 
     deviations from the contractually specified performance 
     requirements and clearly explains the actions taken on such 
     deviations;
       (10) includes a certification that the Assistant Commandant 
     of the Coast Guard for Engineering and Logistics is 
     designated as the technical authority for all engineering, 
     design, and logistics decisions pertaining to the Integrated 
     Deepwater Systems program; and
       (11) identifies progress in complying with the requirements 
     of subsection (a).
       (d) Reports.--(1) Not later than 30 days after the date of 
     enactment of this Act, the Commandant of the Coast Guard 
     shall submit to the Committees on Appropriations of the 
     Senate and the House of Representatives; the Committee on 
     Commerce, Science and Transportation of the Senate; and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives: (i) a report on the resources (including 
     training, staff, and expertise) required by the Coast Guard 
     to provide appropriate management and oversight of the 
     Integrated Deepwater Systems program; and (ii) a report on 
     how the Coast Guard will utilize full and open competition 
     for any contract that provides for the acquisition or 
     modification of assets under, or in support of, the 
     Integrated Deepwater Systems program, entered into after the 
     date of enactment of this Act; and (2) within 30 days 
     following the submission of the expenditure plan required 
     under subsection (c), the Government Accountability Office 
     shall review the plan and brief the Committees on 
     Appropriations of the Senate and the House of Representatives 
     on its findings.
       Sec. 4403. None of the funds provided in this Act or any 
     other Act may be used to alter or reduce operations within 
     the Civil Engineering Program of the Coast Guard nationwide, 
     including the civil engineering units, facilities, design and 
     construction centers, maintenance and logistics command 
     centers, the Coast Guard Academy and the Coast Guard Research 
     and Development Center, except as specifically authorized by 
     a statute enacted after the date of enactment of this Act.


                    (including rescissions of funds)

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

                               CHAPTER 5

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 4501. Section 20515 of the Continuing Appropriations 
     Resolution, 2007 (division B of Public Law 109-289, as 
     amended by Public Law 110-5) is amended by inserting before 
     the period: ``; and of which, not to exceed $143,628,000 
     shall be available for contract support costs under the terms 
     and conditions contained in Public Law 109-54''.
       Sec. 4502. Section 20512 of the Continuing Appropriations 
     Resolution, 2007 (division B of Public Law 109-289, as 
     amended by Public Law 110-5) is amended by inserting after 
     the first dollar amount: ``, of which not to exceed 
     $7,300,000 shall be transferred to the `Indian Health 
     Facilities' account; the amount in the second proviso shall 
     be $18,000,000; the amount in the third proviso shall be 
     $525,099,000; the amount in the ninth proviso shall be 
     $269,730,000; and the $15,000,000 allocation of funding under 
     the eleventh proviso shall not be required''.
       Sec. 4503. Section 20501 of the Continuing Appropriations 
     Resolution, 2007 (division B of Public Law 109-289, as 
     amended by Public Law 110-5) is amended by inserting after 
     ``$55,663,000'' the following: ``of which $13,000,000 shall 
     be for Save America's Treasures''.
       Sec. 4504. Funds made available to the United States Fish 
     and Wildlife Service for fiscal year 2007 under the heading 
     ``Land Acquisition'' may be used for land conservation 
     partnerships authorized by the Highlands Conservation Act of 
     2004.

[[Page 9939]]



                               CHAPTER 6

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                     National Institutes of Health


         National Institute of Allergy and Infectious Diseases

                          (TRANSFER OF FUNDS)

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


                         OFFICE OF THE DIRECTOR

                          (Transfer of Funds)

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


                     NATIONAL COUNCIL ON DISABILITY

                         Salaries and Expenses

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

                    GENERAL PROVISIONS--THIS CHAPTER


             (including TRANSFERs OF FUNDS and rescission)

       Sec. 4601. Section 20602 of the Continuing Appropriations 
     Resolution, 2007 (division B of Public Law 109-289, as 
     amended by Public Law 110-5) is amended by inserting the 
     following after ``$5,000,000'': ``(together with an 
     additional $7,000,000 which shall be transferred by the 
     Pension Benefit Guaranty Corporation as an authorized 
     administrative cost), to remain available through September 
     30, 2008,''.
       Sec. 4602. Section 20607 of the Continuing Appropriations 
     Resolution, 2007 (division B of Public Law 109-289, as 
     amended by Public Law 110-5) is amended by inserting ``of 
     which $9,666,000 shall be for the Women's Bureau,'' after 
     ``for child labor activities,''.
       Sec. 4603. Of the amount provided for ``Department of 
     Health and Human Services, Health Resources and Services 
     Administration, Health Resources and Services'' in the 
     Continuing Appropriations Resolution, 2007 (division B of 
     Public Law 109-289, as amended by Public Law 110-5), 
     $23,000,000 shall be for Poison Control Centers.
       Sec. 4604. From the amounts made available by the 
     Continuing Appropriations Resolution, 2007 (division B of 
     Public Law 109-289, as amended by Public Law 110-5) for the 
     Office of the Secretary, General Departmental Management 
     under the Department of Health and Human Services, $1,000,000 
     are rescinded.
       Sec. 4605. Section 20625(b)(1) of the Continuing 
     Appropriations Resolution, 2007 (division B of Public Law 
     109-289, as amended by Public Law 110-5) is amended by--
       (1) striking ``$7,172,994,000'' and inserting 
     ``$7,176,431,000'';
       (2) amending subparagraph (A) to read as follows: ``(A) 
     $5,454,824,000 shall be for basic grants under section 1124 
     of the Elementary and Secondary Education Act of 1965 (ESEA), 
     of which up to $3,437,000 shall be available to the Secretary 
     of Education on October 1, 2006, to obtain annually updated 
     educational-agency-level census poverty data from the Bureau 
     of the Census;''; and
       (3) amending subparagraph (C) to read as follows: ``(C) not 
     to exceed $2,352,000 may be available for section 1608 of the 
     ESEA and for a clearinghouse on comprehensive school reform 
     under part D of title V of the ESEA;''.
       Sec. 4606. The provision in the first proviso under the 
     heading ``Rehabilitation Services and Disability Research'' 
     in the Department of Education Appropriations Act, 2006, 
     relating to alternative financing programs under section 
     4(b)(2)(D) of the Assistive Technology Act of 1998 shall not 
     apply to funds appropriated by the Continuing Appropriations 
     Resolution, 2007.
       Sec. 4607. Notwithstanding sections 20639 and 20640 of the 
     Continuing Appropriations Resolution, 2007, as amended by 
     section 2 of the Revised Continuing Appropriations 
     Resolution, 2007 (Public Law 110-5), the Chief Executive 
     Officer of the Corporation for National and Community Service 
     may transfer an amount of not more than $1,360,000 from the 
     account under the heading ``National and Community Service 
     Programs, Operating Expenses'' under the heading 
     ``Corporation for National and Community Service'', to the 
     account under the heading ``Salaries and Expenses'' under the 
     heading ``Corporation for National and Community Service''.
       Sec. 4608. (a) Section 1310.12(a) of title 45, Code of 
     Federal Regulations, shall take effect 30 days after the date 
     of enactment of this Act.
       (b)(1) Notwithstanding subsection (a), any vehicle used to 
     transport children for a Head Start program as of January 1, 
     2007, shall not be subject to a requirement under such 
     section (including a requirement based on the definitions set 
     forth or referenced in section 1310.3 or any other provision 
     set forth or referenced in part 1310 of such title, or any 
     corresponding similar regulation or ruling) regarding rear 
     emergency exit doors, for 1 year after that date of 
     enactment.
       (2) Not later than 60 days after the National Highway 
     Traffic Safety Administration of the Department of 
     Transportation submits its study on occupant protection on 
     Head Start transit vehicles (related to Government 
     Accountability Office report GAO-06-767R), the Secretary of 
     Health and Human Services shall review and shall revise as 
     necessary the allowable alternate vehicle standards described 
     in that part 1310 (or any corresponding similar regulation or 
     ruling) relating to allowable alternate vehicles used to 
     transport children for a Head Start program. In making any 
     such revision, the Secretary shall revise the standards to be 
     consistent with the findings contained in such study, 
     including making a determination on the exemption of such a 
     vehicle from Federal seat spacing requirements, and Federal 
     supporting seating requirements related to 
     compartmentalization, if such vehicle meets all other 
     applicable Federal motor vehicle safety standards, including 
     standards for seating systems, occupant crash protection, 
     seat belt assemblies, and child restraint anchorage systems 
     consistent with that part 1310 (or any corresponding similar 
     regulation or ruling).
       (3) Notwithstanding subsection (a), until such date as the 
     Secretary of Health and Human Services completes the review 
     and any necessary revision specified in paragraph (2), the 
     provisions of section 1310.12(a) relating to Federal seat 
     spacing requirements, and Federal supporting seating 
     requirements related to compartmentalization, for allowable 
     alternate vehicles used to transport children for a Head 
     Start program, shall not apply to such a vehicle if such 
     vehicle meets all other applicable Federal motor vehicle 
     safety standards, as described in paragraph (2).

                               CHAPTER 7

                           LEGISLATIVE BRANCH

                        HOUSE OF REPRESENTATIVES

      Payment to Widows and Heirs of Deceased Members of Congress

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

                               CHAPTER 8

                    GENERAL PROVISIONS--THIS CHAPTER


                          TECHNICAL AMENDMENT

       Sec. 4801. (a) Notwithstanding any other provision of law, 
     subsection (c) under the heading ``Assistance for the 
     Independent States of the Former Soviet Union'' in Public Law 
     109-102, shall not apply to funds appropriated by the 
     Continuing Appropriations Resolution, 2007 (Public Law 109-
     289, division B) as amended by Public Laws 109-369, 109-383, 
     and 110-5.
       (b) Section 534(k) of the Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 2006 
     (Public Law 109-102) is amended, in the second proviso, by 
     inserting after ``subsection (b) of that section'' the 
     following: ``and the requirement that a majority of the 
     members of the board of directors be United States citizens 
     provided in subsection (d)(3)(B) of that section''.
       (c) Subject to section 101(c)(2) of the Continuing 
     Appropriations Resolution, 2007 (division B of Public Law 
     109-289, as amended by Public Law 110-5), the amount of funds 
     appropriated for ``Foreign Military Financing Program'' 
     pursuant to such Resolution shall be construed to be the 
     total of the amount appropriated for such program by section 
     20401 of that Resolution and the amount made available for 
     such program by section 591 of the Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 2006 
     (Public Law 109-102) which is made applicable to the fiscal 
     year 2007 by the provisions of such Resolution.
       Sec. 4802. Notwithstanding any provision of title I of 
     division B of the Continuing Appropriations Resolution, 2007 
     (division B of Public Law 109-289, as amended by Public Laws 
     109-369, 109-383, and 110-5), the dollar amount limitation of 
     the first proviso under the heading, ``Administration of 
     Foreign Affairs, Diplomatic and Consular Programs'', in title 
     IV of the Science, State, Justice, Commerce, and Related 
     Agencies Appropriations Act, 2006 (Public Law 109-108; 119 
     Stat. 2319) shall not apply to funds appropriated under such 
     heading for fiscal year 2007.

                               CHAPTER 9

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

             Office of Federal Housing Enterprise Oversight


                         Salaries and Expenses

                     (including transfer of funds)

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

[[Page 9940]]



                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 4901. Hereafter, funds limited or appropriated for the 
     Department of Transportation may be obligated or expended to 
     grant authority to a Mexican motor carrier to operate beyond 
     United States municipalities and commercial zones on the 
     United States-Mexico border only to the extent that--
       (1) granting such authority is first tested as part of a 
     pilot program;
       (2) such pilot program complies with the requirements of 
     section 350 of Public Law 107-87 and the requirements of 
     section 31315(c) of title 49, United States Code, related to 
     pilot programs; and
       (3) simultaneous and comparable authority to operate within 
     Mexico is made available to motor carriers domiciled in the 
     United States.
       Sec. 4902. Funds provided for the ``National Transportation 
     Safety Board, Salaries and Expenses'' in section 21031 of the 
     Continuing Appropriations Resolution, 2007 (division B of 
     Public Law 109-289, as amended by Public Law 110-5) include 
     amounts necessary to make lease payments due in fiscal year 
     2007 only, on an obligation incurred in 2001 under a capital 
     lease.
       Sec. 4903. Section 21033 of the Continuing Appropriations 
     Resolution, 2007 (division B of Public Law 109-289, as 
     amended by Public Law 110-5) is amended by adding after the 
     second proviso: ``: Provided further, That paragraph (2) 
     under such heading in Public Law 109-115 (119 Stat. 2441) 
     shall be funded at $149,300,000, but additional section 8 
     tenant protection rental assistance costs may be funded in 
     2007 by using unobligated balances, notwithstanding the 
     purposes for which such amounts were appropriated, including 
     recaptures and carryover, remaining from funds appropriated 
     to the Department of Housing and Urban Development under this 
     heading, the heading `Annual Contributions for Assisted 
     Housing', the heading `Housing Certificate Fund', and the 
     heading `Project-Based Rental Assistance' for fiscal year 
     2006 and prior fiscal years: Provided further, That paragraph 
     (3) under such heading in Public Law 109-115 (119 Stat. 2441) 
     shall be funded at $47,500,000: Provided further, That 
     paragraph (4) under such heading in Public Law 109-115 (119 
     Stat. 2441) shall be funded at $5,900,000: Provided further, 
     That paragraph (5) under such heading in Public Law 109-115 
     (119 Stat. 2441) shall be funded at $1,281,100,000, of which 
     $1,251,100,000 shall be allocated for the calendar year 2007 
     funding cycle on a pro rata basis to public housing agencies 
     based on the amount public housing agencies were eligible to 
     receive in calendar year 2006, and of which up to $30,000,000 
     shall be available to the Secretary to allocate to public 
     housing agencies that need additional funds to administer 
     their section 8 programs, with up to $20,000,000 to be for 
     fees associated with section 8 tenant protection rental 
     assistance''.
       Sec. 4904. Section 232(b) of the Departments of Veterans 
     Affairs and Housing and Urban Development, and Independent 
     Agencies Appropriations Act, 2001 (Public Law 106-377) is 
     amended to read as follows:
       ``(b) Applicability.--In the case of any dwelling unit 
     that, upon the date of the enactment of this Act, is assisted 
     under a housing assistance payment contract under section 
     8(o)(13) as in effect before such enactment, or under section 
     8(d)(2) of the United States Housing Act of 1937 (42 U.S.C. 
     1437f(d)(2)) as in effect before the enactment of the Quality 
     Housing and Work Responsibility Act of 1998 (title V of 
     Public Law 105-276), assistance may be renewed or extended 
     under such section 8(o)(13), as amended by subsection (a), 
     provided that the initial contract term and rent of such 
     renewed or extended assistance shall be determined pursuant 
     to subparagraphs (F) and (H), and subparagraphs (C) and (D) 
     of such section shall not apply to such extensions or 
     renewals.''.

                               CHAPTER 10

                      GENERAL PROVISIONS--THIS ACT


                         AVAILABILITY OF FUNDS

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


                        DESIGNATION FOR TITLE I

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


                 EMERGENCY DESIGNATION FOR OTHER TITLES

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

                                TITLE V

                        AGRICULTURAL ASSISTANCE

     SEC. 5101. CROP DISASTER ASSISTANCE.

       (a) Assistance Available.--There are hereby appropriated to 
     the Secretary of Agriculture such sums as are necessary, to 
     remain available until expended, to make emergency financial 
     assistance available to producers on a farm that incurred 
     qualifying quantity or quality losses for the 2005 or 2006 
     crop, or that part of the 2007 crop year before February 28, 
     2007, due to damaging weather or any related condition 
     (including losses due to crop diseases, insects, and delayed 
     planting), as determined by the Secretary. However, to be 
     eligible for assistance, the crop subject to the loss must 
     have been planted before February 28, 2007 or, in the case of 
     prevented planting or other total loss, would have been 
     planted before February 28, 2007 in the absence of the 
     damaging weather or any related condition.
       (b) Election of Crop Year.--If a producer incurred 
     qualifying crop losses in more than one of the 2005, 2006, or 
     2007 crop years, the producer shall elect to receive 
     assistance under this section for losses incurred in only one 
     of such crop years. The producer may not receive assistance 
     under this section for more than one crop year.
       (c) Administration.--
       (1) In general.--Except as provided in paragraph (2), the 
     Secretary of Agriculture shall make assistance available 
     under this section in the same manner as provided under 
     section 815 of the Agriculture, Rural Development, Food and 
     Drug Administration and Related Agencies Appropriations Act, 
     2001 (Public Law 106-387; 114 Stat. 1549A-55), including 
     using the same loss thresholds for quantity and economic 
     losses as were used in administering that section, except 
     that the payment rate shall be 50 percent of the established 
     price, instead of 65 percent.
       (2) Loss thresholds for quality losses.--In the case of a 
     payment for quality loss for a crop under subsection (a), the 
     loss thresholds for quality loss for the crop shall be 
     determined under subsection (d).
       (d) Quality Losses.--
       (1) In general.--Subject to paragraph (3), the amount of a 
     payment made to producers on a farm for a quality loss for a 
     crop under subsection (a) shall be equal to the amount 
     obtained by multiplying--
       (A) 65 percent of the payment quantity determined under 
     paragraph (2); by
       (B) 50 percent of the payment rate determined under 
     paragraph (3).
       (2) Payment quantity.--For the purpose of paragraph (1)(A), 
     the payment quantity for quality losses for a crop of a 
     commodity on a farm shall equal the lesser of--
       (A) the actual production of the crop affected by a quality 
     loss of the commodity on the farm; or
       (B) the quantity of expected production of the crop 
     affected by a quality loss of the commodity on the farm, 
     using the formula used by the Secretary of Agriculture to 
     determine quantity losses for the crop of the commodity under 
     subsection (a).
       (3) Payment rate.--For the purpose of paragraph (1)(B) and 
     in accordance with paragraphs (5) and (6), the payment rate 
     for quality losses for a crop of a commodity on a farm shall 
     be equal to the difference between--
       (A) the per unit market value that the units of the crop 
     affected by the quality loss would have had if the crop had 
     not suffered a quality loss; and
       (B) the per unit market value of the units of the crop 
     affected by the quality loss.
       (4) Eligibility.--For producers on a farm to be eligible to 
     obtain a payment for a quality loss for a crop under 
     subsection (a), the amount obtained by multiplying the per 
     unit loss determined under paragraph (1) by the number of 
     units affected by the quality loss shall be at least 25 
     percent of the value that all affected production of the crop 
     would have had if the crop had not suffered a quality loss.
       (5) Marketing contracts.--In the case of any production of 
     a commodity that is sold pursuant to one or more marketing 
     contracts (regardless of whether the contract is entered into 
     by the producers on the farm before or after harvest) and for 
     which appropriate documentation exists, the quantity 
     designated in the contracts shall be eligible for quality 
     loss assistance based on the one or more prices specified in 
     the contracts.
       (6) Other production.--For any additional production of a 
     commodity for which a marketing contract does not exist or 
     for which production continues to be owned by the producer, 
     quality losses shall be based on the average local market 
     discounts for reduced quality, as determined by the 
     appropriate State committee of the Farm Service Agency.
       (7) Quality adjustments and discounts.--The appropriate 
     State committee of the Farm Service Agency shall identify the 
     appropriate quality adjustment and discount factors to be 
     considered in carrying out this subsection, including--
       (A) the average local discounts actually applied to a crop; 
     and
       (B) the discount schedules applied to loans made by the 
     Farm Service Agency or crop insurance coverage under the 
     Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
       (8) Eligible production.--The Secretary of Agriculture 
     shall carry out this subsection in a fair and equitable 
     manner for all eligible production, including the production 
     of fruits and vegetables, other specialty crops, and field 
     crops.
       (e) Payment Limitations.--
       (1) Limit on amount of assistance.--Assistance provided 
     under this section to a producer for losses to a crop, 
     together with the amounts specified in paragraph (2) 
     applicable to the same crop, may not exceed 95 percent of 
     what the value of the crop would have been in the absence of 
     the losses, as estimated by the Secretary of Agriculture.
       (2) Other payments.--In applying the limitation in 
     paragraph (1), the Secretary shall include the following:
       (A) Any crop insurance payment made under the Federal Crop 
     Insurance Act (7 U.S.C. 1501 et

[[Page 9941]]

     seq.) or payment under section 196 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7333) that the 
     producer receives for losses to the same crop.
       (B) The value of the crop that was not lost (if any), as 
     estimated by the Secretary.
       (f) Eligibility Requirements and Limitations.--The 
     producers on a farm shall not be eligible for assistance 
     under this section with respect to losses to an insurable 
     commodity or noninsurable commodity if the producers on the 
     farm--
       (1) in the case of an insurable commodity, did not obtain a 
     policy or plan of insurance for the insurable commodity under 
     the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) for 
     the crop incurring the losses;
       (2) in the case of a noninsurable commodity, did not file 
     the required paperwork, and pay the administrative fee by the 
     applicable State filing deadline, for the noninsurable 
     commodity under section 196 of the Federal Agriculture 
     Improvement and Reform Act of 1996 (7 U.S.C. 7333) for the 
     crop incurring the losses; or
       (3) were not in compliance with highly erodible land 
     conservation and wetland conservation provisions.
       (g) Timing.--
       (1) In general.--Subject to paragraph (2), the Secretary of 
     Agriculture shall make payments to producers on a farm for a 
     crop under this section not later than 60 days after the date 
     the producers on the farm submit to the Secretary a completed 
     application for the payments.
       (2) Interest.--If the Secretary does not make payments to 
     the producers on a farm by the date described in paragraph 
     (1), the Secretary shall pay to the producers on a farm 
     interest on the payments at a rate equal to the current (as 
     of the sign-up deadline established by the Secretary) market 
     yield on outstanding, marketable obligations of the United 
     States with maturities of 30 years.
       (h) Definitions.--In this section:
       (1) Insurable commodity.--The term ``insurable commodity'' 
     means an agricultural commodity (excluding livestock) for 
     which the producers on a farm are eligible to obtain a policy 
     or plan of insurance under the Federal Crop Insurance Act (7 
     U.S.C. 1501 et seq.).
       (2) Noninsurable commodity.--The term ``noninsurable 
     commodity'' means a crop for which the producers on a farm 
     are eligible to obtain assistance under section 196 of the 
     Federal Agriculture Improvement and Reform Act of 1996 (7 
     U.S.C. 7333).

     SEC. 5102. LIVESTOCK ASSISTANCE.

       (a) Livestock Compensation Program.--
       (1) Availability of assistance.--There are hereby 
     appropriated to the Secretary of Agriculture such sums as are 
     necessary, to remain available until expended, to carry out 
     the livestock compensation program established under subpart 
     B of part 1416 of title 7, Code of Federal Regulations, as 
     announced by the Secretary on February 12, 2007 (72 Fed. Reg. 
     6443), to provide compensation for livestock losses between 
     January 1, 2005 and February 28, 2007, due to a disaster, as 
     determined by the Secretary (including losses due to 
     blizzards that started in 2006 and continued into January 
     2007). However, the payment rate for compensation under this 
     subsection shall be 70 percent of the payment rate otherwise 
     applicable under such program. In addition, section 
     1416.102(b)(2)(ii) of title 7, Code of Federal Regulations 
     (72 Fed. Reg. 6444) shall not apply.
       (2) Eligible applicants.--In carrying out the program 
     described in paragraph (1), the Secretary shall provide 
     assistance to any applicant that--
       (A) conducts a livestock operation that is located in a 
     disaster county with eligible livestock specified in 
     paragraph (1) of section 1416.102(a) of title 7, Code of 
     Federal Regulations (72 Fed. Reg. 6444), an animal described 
     in section 10806(a)(1) of the Farm Security and Rural 
     Investment Act of 2002 (21 U.S.C. 321d(a)(1)), or other 
     animals designated by the Secretary as livestock for purposes 
     of this subsection; and
       (B) meets the requirements of paragraphs (3) and (4) of 
     section 1416.102(a) of title 7, Code of Federal Regulations, 
     and all other eligibility requirements established by the 
     Secretary for the program.
       (3) Election of losses.--
       (A) If a producer incurred eligible livestock losses in 
     more than one of the 2005, 2006, or 2007 calendar years, the 
     producer shall elect to receive payments under this 
     subsection for losses incurred in only one of such calendar 
     years, and such losses must have been incurred in a county 
     declared or designated as a disaster county in that same 
     calendar year.
       (B) Producers may elect to receive compensation for losses 
     in the calendar year 2007 grazing season that are 
     attributable to wildfires occurring during the applicable 
     period, as determined by the Secretary.
       (4) Mitigation.--In determining the eligibility for or 
     amount of payments for which a producer is eligible under the 
     livestock compensation program, the Secretary shall not 
     penalize a producer that takes actions (recognizing disaster 
     conditions) that reduce the average number of livestock the 
     producer owned for grazing during the production year for 
     which assistance is being provided.
       (5) Definitions.--In this subsection:
       (A) Disaster county.--The term ``disaster county'' means--
       (i) a county included in the geographic area covered by a 
     natural disaster declaration; and
       (ii) each county contiguous to a county described in clause 
     (i).
       (B) Natural disaster declaration.--The term ``natural 
     disaster declaration'' means--
       (i) a natural disaster declared by the Secretary between 
     January 1, 2005 and February 28, 2007 under section 321(a) of 
     the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1961(a));
       (ii) a major disaster or emergency designated by the 
     President between January 1, 2005 and February 28, 2007 under 
     the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.); or
       (iii) a determination of a Farm Service Agency 
     Administrator's Physical Loss Notice if such notice applies 
     to a county included under (ii).
       (b) Livestock Indemnity Payments.--
       (1) Availability of assistance.--There are hereby 
     appropriated to the Secretary of Agriculture such sums as are 
     necessary, to remain available until expended, to make 
     livestock indemnity payments to producers on farms that have 
     incurred livestock losses between January 1, 2005 and 
     February 28, 2007, due to a disaster, as determined by the 
     Secretary (including losses due to blizzards that started in 
     2006 and continued into January 2007) in a disaster county. 
     To be eligible for assistance, applicants must meet all 
     eligibility requirements established by the Secretary for the 
     program.
       (2) Election of losses.--If a producer incurred eligible 
     livestock losses in more than one of the 2005, 2006, or 2007 
     calendar years, the producer shall elect to receive payments 
     under this subsection for losses incurred in only one of such 
     calendar years. The producer may not receive payments under 
     this subsection for more than one calendar year.
       (3) Payment rates.--Indemnity payments to a producer on a 
     farm under paragraph (1) shall be made at a rate of not less 
     than 30 percent of the market value of the applicable 
     livestock on the day before the date of death of the 
     livestock, as determined by the Secretary.
       (4) Livestock defined.--In this subsection, the term 
     ``livestock'' means an animal that--
       (A) is specified in clause (i) of section 1416.203(a)(2) of 
     title 7, Code of Federal Regulations (72 Fed. Reg. 6445), or 
     is designated by the Secretary as livestock for purposes of 
     this subsection; and
       (B) meets the requirements of clauses (iii) and (iv) of 
     such section.
       (5) Definitions.--In this subsection:
       (A) Disaster county.--The term ``disaster county'' means--
       (i) a county included in the geographic area covered by a 
     natural disaster declaration; and
       (ii) each county contiguous to a county described in clause 
     (i).
       (B) Natural disaster declaration.--The term ``natural 
     disaster declaration'' means--
       (i) a natural disaster declared by the Secretary between 
     January 1, 2005 and February 28, 2007 under section 321(a) of 
     the Consolidated Farm and Rural Development Act (7 U.S.C. 
     1961(a));
       (ii) a major disaster or emergency designated by the 
     President between January 1, 2005 and February 28, 2007 under 
     the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121 et seq.); or
       (iii) a determination of a Farm Service Agency 
     Administrator's Physical Loss Notice if such notice applies 
     to a county included under (ii).

     SEC. 5103. EMERGENCY CONSERVATION PROGRAM.

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

     SEC. 5104. PAYMENT LIMITATIONS.

       (a) Reduction in Payments to Reflect Payments for Same or 
     Similar Losses.--The amount of any payment for which a 
     producer is eligible under sections 5101 and 5102 shall be 
     reduced by any amount received by the producer for the same 
     loss or any similar loss under--
       (1) the Department of Defense, Emergency Supplemental 
     Appropriations to Address Hurricanes in the Gulf of Mexico, 
     and Pandemic Influenza Act, 2006 (Public Law 109-148; 119 
     Stat. 2680);
       (2) an agricultural disaster assistance provision contained 
     in the announcement of the Secretary on January 26, 2006, or 
     August 29, 2006; or
       (3) the Emergency Supplemental Appropriations Act for 
     Defense, the Global War on Terror, and Hurricane Recovery, 
     2006 (Public Law 109-234; 120 Stat. 418).
       (b) Adjusted Gross Income Limitation.--Section 1001D of the 
     Food Security Act of 1985 (7 U.S.C. 1308-3a) shall apply with 
     respect to assistance provided under sections 5101, 5102, and 
     5103.

     SEC. 5105. ADMINISTRATION.

       (a) Regulations.--The Secretary of Agriculture may 
     promulgate such regulations as are necessary to implement 
     sections 5101 and 5102.
       (b) Procedure.--The promulgation of the implementing 
     regulations and the administration of sections 5101 and 5102 
     shall be made without regard to--
       (1) the notice and comment provisions of section 553 of 
     title 5, United States Code;
       (2) the Statement of Policy of the Secretary of Agriculture 
     effective July 24, 1971 (36 Fed. Reg. 13804), relating to 
     notices of proposed rulemaking and public participation in 
     rulemaking; and
       (3) chapter 35 of title 44, United States Code (commonly 
     known as the ``Paperwork Reduction Act'').
       (c) Congressional Review of Agency Rulemaking.--In carrying 
     out this section, the Secretary of Agriculture shall use the 
     authority

[[Page 9942]]

     provided under section 808 of title 5, United States Code.
       (d) Use of Commodity Credit Corporation; Limitation.--In 
     implementing sections 5101 and 5102, the Secretary of 
     Agriculture may use the facilities, services, and authorities 
     of the Commodity Credit Corporation. The Corporation shall 
     not make any expenditures to carry out sections 5101 and 5102 
     unless funds have been specifically appropriated for such 
     purpose.

     SEC. 5106. MILK INCOME LOSS CONTRACT PROGRAM.

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

     SEC. 5107. DAIRY ASSISTANCE.

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

     SEC. 5108. NONINSURED CROP ASSISTANCE PROGRAM.

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

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

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

     SEC. 5110. CONSERVATION SECURITY PROGRAM.

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

     SEC. 5111. ADMINISTRATIVE EXPENSES.

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

     SEC. 5112. CONTRACT WAIVER.

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

                                TITLE VI

            ELIMINATION OF SCHIP SHORTFALL AND OTHER MATTERS

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

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

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

     SEC. 6001. ELIMINATION OF REMAINDER OF SCHIP FUNDING 
                   SHORTFALLS FOR FISCAL YEAR 2007.

       (a) Elimination of Remainder of Funding Shortfalls, Tiered 
     Match, and Other Limitation on Expenditures.--Section 2104(h) 
     of the Social Security Act (42 U.S.C. 1397dd(h)), as added by 
     section 201(a) of the National Institutes of Health Reform 
     Act of 2006 (Public Law 109-482), is amended--
       (1) in the heading for paragraph (2), by striking 
     ``remainder of reduction'' and inserting ``part''; and
       (2) by striking paragraph (4) and inserting the following:
       ``(4) Additional amounts to eliminate remainder of fiscal 
     year 2007 funding shortfalls.--
       ``(A) In general.--From the amounts provided in advance in 
     appropriations Acts, the Secretary shall allot to each 
     remaining shortfall State described in subparagraph (B) such 
     amount as the Secretary determines will eliminate the 
     estimated shortfall described in such subparagraph for the 
     State for fiscal year 2007.
       ``(B) Remaining shortfall state described.--For purposes of 
     subparagraph (A), a remaining shortfall State is a State with 
     a State child health plan approved under this title for which 
     the Secretary estimates, on the basis of the most recent data 
     available to the Secretary as of the date of the enactment of 
     this paragraph, that the projected Federal expenditures under 
     such plan for the State for fiscal year 2007 will exceed the 
     sum of--
       ``(i) the amount of the State's allotments for each of 
     fiscal years 2005 and 2006 that will not be expended by the 
     end of fiscal year 2006;
       ``(ii) the amount of the State's allotment for fiscal year 
     2007; and
       ``(iii) the amounts, if any, that are to be redistributed 
     to the State during fiscal year 2007 in accordance with 
     paragraphs (1) and (2).''.
       (b) Conforming Amendments.--Section 2104(h) of such Act (42 
     U.S.C. 1397dd(h)) (as so added), is amended--
       (1) in paragraph (1)(B), by striking ``subject to paragraph 
     (4)(B) and'';
       (2) in paragraph (2)(B), by striking ``subject to paragraph 
     (4)(B) and'';
       (3) in paragraph (5)(A), by striking ``and (3)'' and 
     inserting ``(3), and (4)''; and
       (4) in paragraph (6)--
       (A) in the first sentence--
       (i) by inserting ``or allotted'' after ``redistributed''; 
     and
       (ii) by inserting ``or allotments'' after 
     ``redistributions''; and
       (B) by striking ``and (3)'' and inserting ``(3), and (4)''.
       Sec. 6002. (a) Prohibition.--
       (1) Limitation on secretarial authority.--Notwithstanding 
     any other provision of law, the Secretary of Health and Human 
     Services shall not, prior to the date that is 1 year after 
     the date of enactment of this Act, take any action (through 
     promulgation of regulation, issuance of regulatory guidance, 
     or other administrative action) to--
       (A) finalize or otherwise implement provisions contained in 
     the proposed rule published on January 18, 2007, on pages 
     2236 through 2248 of volume 72, Federal Register (relating to 
     parts 433, 447, and 457 of title 42, Code of Federal 
     Regulations);
       (B) promulgate or implement any rule or provisions similar 
     to the provisions described in subparagraph (A) pertaining to 
     the Medicaid program established under title XIX of the 
     Social Security Act or the State Children's Health Insurance 
     Program established under title XXI of such Act; or
       (C) promulgate or implement any rule or provisions 
     restricting payments for graduate medical education under the 
     Medicaid program.
       (2) Continuation of other secretarial authority.--The 
     Secretary of Health and Human Service shall not be prohibited 
     during the period described in paragraph (1) from taking any 
     action (through promulgation of regulation, issuance of 
     regulatory guidance, or other administrative action) to 
     enforce a provision of law in effect as of the date of 
     enactment of this Act with respect to the Medicaid program or 
     the State Children's Health Insurance Program, or to 
     promulgate or implement a new rule or provision during such 
     period with respect to such programs, other than a rule or 
     provision described in paragraph (1) and subject to the 
     prohibition set forth in that paragraph.
       (b) Requirement for Use of Tamper-Resistant Prescription 
     Pads Under the Medicaid Program.--
       (1) In general.--Section 1903(i) of the Social Security Act 
     (42 U.S.C. 1396b(i)) is amended--
       (A) by striking ``or'' at the end of paragraph (21);
       (B) by striking the period at the end of paragraph (22) and 
     inserting ``; or''; and
       (C) by inserting after paragraph (22) the following new 
     paragraph:
       ``(23) with respect to amounts expended for medical 
     assistance for covered outpatient drugs (as defined in 
     section 1927(k)(2)) for which the prescription was executed 
     in written (and non-electronic) form unless the prescription 
     was executed on a tamper-resistant pad.''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall apply to prescriptions executed after September 30, 
     2007.
       (c) Extension of Certain Pharmacy Plus Waivers.--
       (1) Authority to continue to operate waivers.--
     Notwithstanding any other provision of law, any State that is 
     operating a Pharmacy Plus waiver described in paragraph (2) 
     which would otherwise expire on June 30, 2007, may elect to 
     continue to operate the waiver through December 31, 2009.
       (2) Pharmacy plus waiver described.--For purposes of 
     paragraph (1), a Pharmacy Plus waiver described in this 
     paragraph is a waiver approved by the Secretary of Health and 
     Human Services under the authority of section 1115 of the 
     Social Security Act (42 U.S.C. 1315) that provides coverage 
     for prescription drugs for individuals who have attained age 
     65 and whose family income does not exceed 200 percent of the 
     poverty line (as defined in section 2110(c)(5) of such Act 
     (42 U.S.C. 1397jj(c)(5)).

                               TITLE VII

                    FAIR MINIMUM WAGE AND TAX RELIEF

                     Subtitle A--Fair Minimum Wage

     SEC. 7000. SHORT TITLE.

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

     SEC. 7001. MINIMUM WAGE.

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

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

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

[[Page 9943]]

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

     SEC. 7003. STUDY ON PROJECTED IMPACT.

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

                 Subtitle B--Small Business Incentives

     SEC. 7004. SHORT TITLE.

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

     SEC. 7005. ENHANCED COMPLIANCE ASSISTANCE FOR SMALL 
                   BUSINESSES.

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

     SEC. 7006. SMALL BUSINESS CHILD CARE GRANT PROGRAM.

       (a) Establishment.--The Secretary of Health and Human 
     Services (referred to in this section as the ``Secretary'') 
     shall establish a program to award grants to States, on a 
     competitive basis, to assist States in providing funds to 
     encourage the establishment and operation of employer-
     operated child care programs.
       (b) Application.--To be eligible to receive a grant under 
     this section, a State shall prepare and submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary may require, 
     including an assurance that the funds required under 
     subsection (e) will be provided.
       (c) Amount and Period of Grant.--The Secretary shall 
     determine the amount of a grant to a State under this section 
     based on the population of the State as compared to the 
     population of all States receiving grants under this section. 
     The Secretary shall make the grant for a period of 3 years.
       (d) Use of Funds.--
       (1) In general.--A State shall use amounts provided under a 
     grant awarded under this section to provide assistance to 
     small businesses (or consortia formed in accordance with 
     paragraph (3)) located in the State to enable the small 
     businesses (or consortia) to establish and operate child care 
     programs. Such assistance may include--
       (A) technical assistance in the establishment of a child 
     care program;
       (B) assistance for the startup costs related to a child 
     care program;
       (C) assistance for the training of child care providers;
       (D) scholarships for low-income wage earners;
       (E) the provision of services to care for sick children or 
     to provide care to school-aged children;
       (F) the entering into of contracts with local resource and 
     referral organizations or local health departments;
       (G) assistance for care for children with disabilities;
       (H) payment of expenses for renovation or operation of a 
     child care facility; or
       (I) assistance for any other activity determined 
     appropriate by the State.
       (2) Application.--In order for a small business or 
     consortium to be eligible to receive assistance from a State 
     under this section, the small business involved shall prepare 
     and submit to the State an application at such time, in such 
     manner, and containing such information as the State may 
     require.
       (3) Preference.--
       (A) In general.--In providing assistance under this 
     section, a State shall give priority to an applicant that 
     desires to form a consortium to provide child care in a 
     geographic area within the State where such care is not 
     generally available or accessible.
       (B) Consortium.--For purposes of subparagraph (A), a 
     consortium shall be made up of 2 or more entities that shall 
     include small businesses and that may include large 
     businesses, nonprofit agencies or organizations, local 
     governments, or other appropriate entities.
       (4) Limitations.--With respect to grant funds received 
     under this section, a State may not provide in excess of 
     $500,000 in assistance from such funds to any single 
     applicant.
       (e) Matching Requirement.--To be eligible to receive a 
     grant under this section, a State shall provide assurances to 
     the Secretary that, with respect to the costs to be incurred 
     by a covered entity receiving assistance in carrying out 
     activities under this section, the covered entity will make 
     available (directly or through donations from public or 
     private entities) non-Federal contributions to such costs in 
     an amount equal to--
       (1) for the first fiscal year in which the covered entity 
     receives such assistance, not less than 50 percent of such 
     costs ($1 for each $1 of assistance provided to the covered 
     entity under the grant);
       (2) for the second fiscal year in which the covered entity 
     receives such assistance, not less than 66\2/3\ percent of 
     such costs ($2 for each $1 of assistance provided to the 
     covered entity under the grant); and
       (3) for the third fiscal year in which the covered entity 
     receives such assistance, not less than 75 percent of such 
     costs ($3 for each $1 of assistance provided to the covered 
     entity under the grant).
       (f) Requirements of Providers.--To be eligible to receive 
     assistance under a grant awarded under this section, a child 
     care provider--
       (1) who receives assistance from a State shall comply with 
     all applicable State and local licensing and regulatory 
     requirements and all applicable health and safety standards 
     in effect in the State; and
       (2) who receives assistance from an Indian tribe or tribal 
     organization shall comply with all applicable regulatory 
     standards.

[[Page 9944]]

       (g) State-Level Activities.--A State may not retain more 
     than 3 percent of the amount described in subsection (c) for 
     State administration and other State-level activities.
       (h) Administration.--
       (1) State responsibility.--A State shall have 
     responsibility for administering a grant awarded for the 
     State under this section and for monitoring covered entities 
     that receive assistance under such grant.
       (2) Audits.--A State shall require each covered entity 
     receiving assistance under the grant awarded under this 
     section to conduct an annual audit with respect to the 
     activities of the covered entity. Such audits shall be 
     submitted to the State.
       (3) Misuse of funds.--
       (A) Repayment.--If the State determines, through an audit 
     or otherwise, that a covered entity receiving assistance 
     under a grant awarded under this section has misused the 
     assistance, the State shall notify the Secretary of the 
     misuse. The Secretary, upon such a notification, may seek 
     from such a covered entity the repayment of an amount equal 
     to the amount of any such misused assistance plus interest.
       (B) Appeals process.--The Secretary shall by regulation 
     provide for an appeals process with respect to repayments 
     under this paragraph.
       (i) Reporting Requirements.--
       (1) 2-year study.--
       (A) In general.--Not later than 2 years after the date on 
     which the Secretary first awards grants under this section, 
     the Secretary shall conduct a study to determine--
       (i) the capacity of covered entities to meet the child care 
     needs of communities within States;
       (ii) the kinds of consortia that are being formed with 
     respect to child care at the local level to carry out 
     programs funded under this section; and
       (iii) who is using the programs funded under this section 
     and the income levels of such individuals.
       (B) Report.--Not later than 28 months after the date on 
     which the Secretary first awards grants under this section, 
     the Secretary shall prepare and submit to the appropriate 
     committees of Congress a report on the results of the study 
     conducted in accordance with subparagraph (A).
       (2) 4-year study.--
       (A) In general.--Not later than 4 years after the date on 
     which the Secretary first awards grants under this section, 
     the Secretary shall conduct a study to determine the number 
     of child care facilities that are funded through covered 
     entities that received assistance through a grant awarded 
     under this section and that remain in operation, and the 
     extent to which such facilities are meeting the child care 
     needs of the individuals served by such facilities.
       (B) Report.--Not later than 52 months after the date on 
     which the Secretary first awards grants under this section, 
     the Secretary shall prepare and submit to the appropriate 
     committees of Congress a report on the results of the study 
     conducted in accordance with subparagraph (A).
       (j) Definitions.--In this section:
       (1) Covered entity.--The term ``covered entity'' means a 
     small business or a consortium formed in accordance with 
     subsection (d)(3).
       (2) Indian community.--The term ``Indian community'' means 
     a community served by an Indian tribe or tribal organization.
       (3) Indian tribe; tribal organization.--The terms ``Indian 
     tribe'' and ``tribal organization'' have the meanings given 
     the terms in section 658P of the Child Care and Development 
     Block Grant Act of 1990 (42 U.S.C. 9858n).
       (4) Small business.--The term ``small business'' means an 
     employer who employed an average of at least 2 but not more 
     than 50 employees on the business days during the preceding 
     calendar year.
       (5) State.--The term ``State'' has the meaning given the 
     term in section 658P of the Child Care and Development Block 
     Grant Act of 1990 (42 U.S.C. 9858n).
       (k) Application to Indian Tribes and Tribal 
     Organizations.--In this section:
       (1) In general.--Except as provided in subsection (f)(1), 
     and in paragraphs (2) and (3), the term ``State'' includes an 
     Indian tribe or tribal organization.
       (2) Geographic references.--The term ``State'' includes an 
     Indian community in subsections (c) (the second and third 
     place the term appears), (d)(1) (the second place the term 
     appears), (d)(3)(A) (the second place the term appears), and 
     (i)(1)(A)(i).
       (3) State-level activities.--The term ``State-level 
     activities'' includes activities at the tribal level.
       (l) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated to 
     carry out this section, $50,000,000 for the period of fiscal 
     years 2008 through 2012.
       (2) Studies and administration.--With respect to the total 
     amount appropriated for such period in accordance with this 
     subsection, not more than $2,500,000 of that amount may be 
     used for expenditures related to conducting studies required 
     under, and the administration of, this section.
       (m) Termination of Program.--The program established under 
     subsection (a) shall terminate on September 30, 2012.

     SEC. 7007. STUDY OF UNIVERSAL USE OF ADVANCE PAYMENT OF 
                   EARNED INCOME CREDIT.

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

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

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

     SEC. 7009. REPORTS ON ACQUISITIONS OF ARTICLES, MATERIALS, 
                   AND SUPPLIES MANUFACTURED OUTSIDE THE UNITED 
                   STATES.

       Section 2 of the Buy American Act (41 U.S.C. 10a) is 
     amended--
       (1) by striking ``Notwithstanding'' and inserting the 
     following:
       ``(a) In General.--Notwithstanding''; and
       (2) by adding at the end the following:
       ``(b) Reports.--
       ``(1) In general.--Not later than 180 days after the end of 
     each of fiscal years 2007 through 2011, the head of each 
     Federal agency shall submit to the Committee on Homeland 
     Security and Governmental Affairs of the Senate and the 
     Committee on Oversight and Government Reform of the House of 
     Representatives a

[[Page 9945]]

     report on the amount of the acquisitions made by the agency 
     in that fiscal year of articles, materials, or supplies 
     purchased from entities that manufacture the articles, 
     materials, or supplies outside of the United States.
       ``(2) Contents of report.--The report required by paragraph 
     (1) shall separately include, for the fiscal year covered by 
     such report--
       ``(A) the dollar value of any articles, materials, or 
     supplies that were manufactured outside the United States;
       ``(B) an itemized list of all waivers granted with respect 
     to such articles, materials, or supplies under this Act, and 
     a citation to the treaty, international agreement, or other 
     law under which each waiver was granted;
       ``(C) if any articles, materials, or supplies were acquired 
     from entities that manufacture articles, materials, or 
     supplies outside the United States, the specific exception 
     under this section that was used to purchase such articles, 
     materials, or supplies; and
       ``(D) a summary of--
       ``(i) the total procurement funds expended on articles, 
     materials, and supplies manufactured inside the United 
     States; and
       ``(ii) the total procurement funds expended on articles, 
     materials, and supplies manufactured outside the United 
     States.
       ``(3) Public availability.--The head of each Federal agency 
     submitting a report under paragraph (1) shall make the report 
     publicly available to the maximum extent practicable.
       ``(4) Exception for intelligence community.--This 
     subsection shall not apply to acquisitions made by an agency, 
     or component thereof, that is an element of the intelligence 
     community as specified in, or designated under, section 3(4) 
     of the National Security Act of 1947 (50 U.S.C. 401a(4)).''.

               Subtitle C--Small Business Tax Incentives

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

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

               Subtitle C--Small Business Tax Incentives

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

              PART I--Small Business Tax Relief Provisions


                      SUBPART A--General Provisions

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


             SUBPART B--Gulf Opportunity Zone Tax Incentives

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


                    SUBPART C--Subchapter S Provisions

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

                      PART II--Revenue Provisions

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

              PART I--SMALL BUSINESS TAX RELIEF PROVISIONS

                     Subpart A--General Provisions

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

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

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

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

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

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

[[Page 9946]]

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

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

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

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

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

     SEC. 7515. FAMILY BUSINESS TAX SIMPLIFICATION.

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

            Subpart B--Gulf Opportunity Zone Tax Incentives

     SEC. 7521. EXTENSION OF INCREASED EXPENSING FOR QUALIFIED 
                   SECTION 179 GULF OPPORTUNITY ZONE PROPERTY.

       Paragraph (2) of section 1400N(e) (relating to qualified 
     section 179 Gulf Opportunity Zone property) is amended--
       (1) by striking ``this subsection, the term'' and inserting 
     ``this subsection--
       ``(A) In general.--The term'', and
       (2) by adding at the end the following new subparagraph:
       ``(B) Extension for certain property.--In the case of 
     property substantially all of the use of which is in one or 
     more specified portions of the GO Zone (as defined by 
     subsection (d)(6)), such term shall include section 179 
     property (as so defined) which is described in subsection 
     (d)(2), determined--
       ``(i) without regard to subsection (d)(6), and
       ``(ii) by substituting `2008' for `2007' in subparagraph 
     (A)(v) thereof.''.

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

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

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

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

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

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

                   Subpart C--Subchapter S Provisions

     SEC. 7531. CAPITAL GAIN OF S CORPORATION NOT TREATED AS 
                   PASSIVE INVESTMENT INCOME.

       (a) In General.--Section 1362(d)(3) is amended by striking 
     subparagraphs (B), (C), (D), (E), and (F) and inserting the 
     following new subparagraph:
       ``(B) Passive investment income defined.--
       ``(i) In general.--Except as otherwise provided in this 
     subparagraph, the term `passive investment income' means 
     gross receipts derived from royalties, rents, dividends, 
     interest, and annuities.

[[Page 9947]]

       ``(ii) Exception for interest on notes from sales of 
     inventory.--The term `passive investment income' shall not 
     include interest on any obligation acquired in the ordinary 
     course of the corporation's trade or business from its sale 
     of property described in section 1221(a)(1).
       ``(iii) Treatment of certain lending or finance 
     companies.--If the S corporation meets the requirements of 
     section 542(c)(6) for the taxable year, the term `passive 
     investment income' shall not include gross receipts for the 
     taxable year which are derived directly from the active and 
     regular conduct of a lending or finance business (as defined 
     in section 542(d)(1)).
       ``(iv) Treatment of certain dividends.--If an S corporation 
     holds stock in a C corporation meeting the requirements of 
     section 1504(a)(2), the term `passive investment income' 
     shall not include dividends from such C corporation to the 
     extent such dividends are attributable to the earnings and 
     profits of such C corporation derived from the active conduct 
     of a trade or business.
       ``(v) Exception for banks, etc.--In the case of a bank (as 
     defined in section 581) or a depository institution holding 
     company (as defined in section 3(w)(1) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1813(w)(1)), the term `passive 
     investment income' shall not include--

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

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

     SEC. 7532. TREATMENT OF BANK DIRECTOR SHARES.

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

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

     SEC. 7533. SPECIAL RULE FOR BANK REQUIRED TO CHANGE FROM THE 
                   RESERVE METHOD OF ACCOUNTING ON BECOMING S 
                   CORPORATION.

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

     SEC. 7534. TREATMENT OF THE SALE OF INTEREST IN A QUALIFIED 
                   SUBCHAPTER S SUBSIDIARY.

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

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

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

     SEC. 7535. ELIMINATION OF ALL EARNINGS AND PROFITS 
                   ATTRIBUTABLE TO PRE-1983 YEARS FOR CERTAIN 
                   CORPORATIONS.

       In the case of a corporation which is--
       (1) described in section 1311(a)(1) of the Small Business 
     Job Protection Act of 1996, and
       (2) not described in section 1311(a)(2) of such Act,

     the amount of such corporation's accumulated earnings and 
     profits (for the first taxable year beginning after the date 
     of the enactment of this Act) shall be reduced by an amount 
     equal to the portion (if any) of such accumulated earnings 
     and profits which were accumulated in any taxable year 
     beginning before January 1, 1983, for which such corporation 
     was an electing small business corporation under subchapter S 
     of the Internal Revenue Code of 1986.

     SEC. 7536. DEDUCTIBILITY OF INTEREST EXPENSE ON INDEBTEDNESS 
                   INCURRED BY AN ELECTING SMALL BUSINESS TRUST TO 
                   ACQUIRE S CORPORATION STOCK.

       (a) In General.--Subparagraph (C) of section 641(c)(2) 
     (relating to modifications) is amended by inserting after 
     clause (iii) the following new clause:
       ``(iv) Any interest expense paid or accrued on indebtedness 
     incurred to acquire stock in an S corporation.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

                      PART II--REVENUE PROVISIONS

     SEC. 7541. INCREASE IN AGE OF MINOR CHILDREN WHOSE UNEARNED 
                   INCOME IS TAXED AS IF PARENT'S INCOME.

       (a) In General.--Subparagraph (A) of section 1(g)(2) 
     (relating to child to whom subsection applies) is amended to 
     read as follows:
       ``(A) such child--
       ``(i) has not attained age 18 before the close of the 
     taxable year, or
       ``(ii)(I) has attained age 18 before the close of the 
     taxable year and meets the age requirements of section 
     152(c)(3) (determined without regard to subparagraph (B) 
     thereof), and
       ``(II) whose earned income (as defined in section 
     911(d)(2)) for such taxable year does not exceed one-half of 
     the amount of the individual's support (within the meaning of 
     section 152(c)(1)(D) after the application of section 
     152(f)(5) (without regard to subparagraph (A) thereof)) for 
     such taxable year,''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.

     SEC. 7542. SUSPENSION OF CERTAIN PENALTIES AND INTEREST.

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

     SEC. 7543. MODIFICATION OF COLLECTION DUE PROCESS PROCEDURES 
                   FOR EMPLOYMENT TAX LIABILITIES.

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

[[Page 9948]]

     under this section with respect to unpaid employment taxes 
     arising in the most recent 2-year period before the beginning 
     of the taxable period with respect to which the levy is 
     served. For purposes of the preceding sentence, the term 
     `employment taxes' means any taxes under chapter 21, 22, 23, 
     or 24.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to levies served on or after the date that is 120 
     days after the date of the enactment of this Act.

     SEC. 7544. PERMANENT EXTENSION OF IRS USER FEES.

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

     SEC. 7545. INCREASE IN PENALTY FOR BAD CHECKS AND MONEY 
                   ORDERS.

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

     SEC. 7546. UNDERSTATEMENT OF TAXPAYER LIABILITY BY RETURN 
                   PREPARERS.

       (a) Application of Return Preparer Penalties to All Tax 
     Returns.--
       (1) Definition of tax return preparer.--Paragraph (36) of 
     section 7701(a) (relating to income tax preparer) is 
     amended--
       (A) by striking ``income'' each place it appears in the 
     heading and the text, and
       (B) in subparagraph (A), by striking ``subtitle A'' each 
     place it appears and inserting ``this title''.
       (2) Conforming amendments.--
       (A)(i) Section 6060 is amended by striking ``INCOME TAX 
     RETURN PREPARERS'' in the heading and inserting ``TAX RETURN 
     PREPARERS''.
       (ii) Section 6060(a) is amended--
       (I) by striking ``an income tax return preparer'' each 
     place it appears and inserting ``a tax return preparer'',
       (II) by striking ``each income tax return preparer'' and 
     inserting ``each tax return preparer'', and
       (III) by striking ``another income tax return preparer'' 
     and inserting ``another tax return preparer''.
       (iii) The item relating to section 6060 in the table of 
     sections for subpart F of part III of subchapter A of chapter 
     61 is amended by striking ``income tax return preparers'' and 
     inserting ``tax return preparers''.
       (iv) Subpart F of part III of subchapter A of chapter 61 is 
     amended by striking ``INCOME TAX RETURN PREPARERS'' in the 
     heading and inserting ``TAX RETURN PREPARERS''.
       (v) The item relating to subpart F in the table of subparts 
     for part III of subchapter A of chapter 61 is amended by 
     striking ``income tax return preparers'' and inserting ``tax 
     return preparers''.
       (B) Section 6103(k)(5) is amended--
       (i) by striking ``income tax return preparer'' each place 
     it appears and inserting ``tax return preparer'', and
       (ii) by striking ``income tax return preparers'' each place 
     it appears and inserting ``tax return preparers''.
       (C)(i) Section 6107 is amended--
       (I) by striking ``INCOME TAX RETURN PREPARER'' in the 
     heading and inserting ``TAX RETURN PREPARER'',
       (II) by striking ``an income tax return preparer'' each 
     place it appears in subsections (a) and (b) and inserting ``a 
     tax return preparer'',
       (III) by striking ``Income Tax Return Preparer'' in the 
     heading for subsection (b) and inserting ``Tax Return 
     Preparer'', and
       (IV) in subsection (c), by striking ``income tax return 
     preparers'' and inserting ``tax return preparers''.
       (ii) The item relating to section 6107 in the table of 
     sections for subchapter B of chapter 61 is amended by 
     striking ``Income tax return preparer'' and inserting ``Tax 
     return preparer''.
       (D) Section 6109(a)(4) is amended--
       (i) by striking ``an income tax return preparer'' and 
     inserting ``a tax return preparer'', and
       (ii) by striking ``income return preparer'' in the heading 
     and inserting ``tax return preparer''.
       (E) Section 6503(k)(4) is amended by striking ``Income tax 
     return preparers'' and inserting ``Tax return preparers''.
       (F)(i) Section 6694 is amended--
       (I) by striking ``INCOME TAX RETURN PREPARER'' in the 
     heading and inserting ``TAX RETURN PREPARER'',
       (II) by striking ``an income tax return preparer'' each 
     place it appears and inserting ``a tax return preparer'',
       (III) in subsection (c)(2), by striking ``the income tax 
     return preparer'' and inserting ``the tax return preparer'',
       (IV) in subsection (e), by striking ``subtitle A'' and 
     inserting ``this title'', and
       (V) in subsection (f), by striking ``income tax return 
     preparer'' and inserting ``tax return preparer''.
       (ii) The item relating to section 6694 in the table of 
     sections for part I of subchapter B of chapter 68 is amended 
     by striking ``income tax return preparer'' and inserting 
     ``tax return preparer''.
       (G)(i) Section 6695 is amended--
       (I) by striking ``INCOME'' in the heading, and
       (II) by striking ``an income tax return preparer'' each 
     place it appears and inserting ``a tax return preparer''.
       (ii) Section 6695(f) is amended--
       (I) by striking ``subtitle A'' and inserting ``this 
     title'', and
       (II) by striking ``the income tax return preparer'' and 
     inserting ``the tax return preparer''.
       (iii) The item relating to section 6695 in the table of 
     sections for part I of subchapter B of chapter 68 is amended 
     by striking ``income''.
       (H) Section 6696(e) is amended by striking ``subtitle A'' 
     each place it appears and inserting ``this title''.
       (I)(i) Section 7407 is amended--
       (I) by striking ``INCOME TAX RETURN PREPARERS'' in the 
     heading and inserting ``TAX RETURN PREPARERS'',
       (II) by striking ``an income tax return preparer'' each 
     place it appears and inserting ``a tax return preparer'',
       (III) by striking ``income tax preparer'' both places it 
     appears in subsection (a) and inserting ``tax return 
     preparer'', and
       (IV) by striking ``income tax return'' in subsection (a) 
     and inserting ``tax return''.
       (ii) The item relating to section 7407 in the table of 
     sections for subchapter A of chapter 76 is amended by 
     striking ``income tax return preparers'' and inserting ``tax 
     return preparers''.
       (J)(i) Section 7427 is amended--
       (I) by striking ``INCOME TAX RETURN PREPARERS'' in the 
     heading and inserting ``TAX RETURN PREPARERS'', and
       (II) by striking ``an income tax return preparer'' and 
     inserting ``a tax return preparer''.
       (ii) The item relating to section 7427 in the table of 
     sections for subchapter B of chapter 76 is amended to read as 
     follows:

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

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

     SEC. 7547. PENALTY FOR FILING ERRONEOUS REFUND CLAIMS.

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

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

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

[[Page 9949]]

     the excessive amount of a claim for refund or credit which is 
     subject to a penalty imposed under part II of subchapter A of 
     chapter 68.''.
       (b) Conforming Amendment.--The table of sections for part I 
     of subchapter B of chapter 68 is amended by inserting after 
     the item relating to section 6675 the following new item:

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

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

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

     David R. Obey,
     Rosa L. DeLauro,
     John P. Murtha,
     Peter J. Visclosky,
     Nita Lowey,
     Carolyn Kilpatrick,
     Norman D. Dicks,
     Chet Edwards,
     Alan B. Mollohan,
     John Olver,
     Jose E. Serrano,
     Debbie Wasserman Schultz,
     James E. Clyburn,
                                Managers on the Part of the House.

     Robert C. Byrd
     Daniel K. Inouye,
     Patrick J. Leahy,
     Tom Harkin,
     Barbara A. Mikulski,
     Herb Kohl,
     Patty Murray,
     Byron L. Dorgan,
     Dianne Feinstein,
     Richard J. Durbin,
     Tim Johnson,
     Mary L. Landrieu,
     Jack Reed,
     Frank R. Lautenberg,
     Ben Nelson,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 1591) making 
     emergency supplemental appropriations for the fiscal year 
     ending September 30, 2007, and for other purposes, submit the 
     following joint statement to the House and the Senate in 
     explanation of the effects of the action agreed upon by the 
     managers and recommended in the accompanying conference 
     report.
       Report language included by the House in the report 
     accompanying H.R. 1591 (H. Rept. 110-60) and included by the 
     Senate in the report accompanying S. 965 (S. Rept. 110-37) 
     should be complied with unless specifically addressed in this 
     statement of the managers. The statement of the managers, 
     while repeating some report language for emphasis, is not 
     intended to negate the language referred to above unless 
     expressly provided herein.
       The conference agreement designates amounts in title I as 
     emergency requirements pursuant to section 402 of H. Con. 
     Res. 95 (109th Congress) and as making appropriations for 
     contingency operations directly related to the global war on 
     terrorism and other unanticipated defense-related operations 
     pursuant to section 402 of H. Con. Res. 376 (109th Congress). 
     Further, the agreement designates amounts in titles II, III, 
     V, and VI as emergency requirements pursuant to section 402 
     of H. Con. Res. 95 (109th Congress) and pursuant to section 
     501 of H. Con. Res. 376 (109th Congress). The House proposed 
     designations under H. Con. Res. 376 on an item-by-item basis, 
     while the Senate included designations under H. Con. Res. 95 
     title-by-title.

   TITLE I--SUPPLEMENTAL APPROPRIATIONS FOR THE GLOBAL WAR ON TERROR

                  CHAPTER 1--DEPARTMENT OF AGRICULTURE

                      Foreign Agricultural Service


                     PUBLIC LAW 480 TITLE II GRANTS

       The conference agreement provides $460,000,000, to be 
     available until expended, for Public Law 480 Title II grants, 
     instead of $450,000,000 as proposed by the House and 
     $475,000,000 as proposed by the Senate.
       The Farm Security and Rural Investment Act of 2002 required 
     the establishment of a micronutrient fortification program 
     relating to the utilization of foods for humanitarian 
     assistance programs such as title II of Public Law 480. The 
     conferees encourage the Secretary of Agriculture to move 
     forward with such a program. The conferees direct that any 
     such funds used for this purpose during fiscal year 2007 
     should be used for internal federal agency operations to 
     develop a framework for this program and not be used for the 
     purpose of executing any grant, contract, or cooperative 
     agreement with a non-federal entity.

                     GENERAL PROVISION THIS CHAPTER

       Sec. 1101. The conference agreement provides $40,000,000, 
     instead of $82,000,000 as proposed by the Senate, for 
     replenishment of the Bill Emerson Humanitarian Trust.
       The conferees direct the Secretary to provide quarterly 
     reports to the Committees on Appropriations of the House of 
     Representatives and the Senate on the available cash, amount 
     of commodity by type, and detail of disbursements made during 
     that quarterly period.

                    CHAPTER 2--DEPARTMENT OF JUSTICE

                            Legal Activities


            SALARIES AND EXPENSES, GENERAL LEGAL ACTIVITIES

       The conference agreement includes $1,648,000 for General 
     Legal Activities for the Criminal Division as proposed by the 
     House, instead of $4,093,000 as proposed by the Senate and 
     requested by the President. The funds are provided for 
     litigation support services to the Special Inspector General 
     for Iraqi Reconstruction for ongoing investigations and cases 
     involving corruption in the reconstruction of Iraq. The 
     conference agreement does not include $2,445,000 as requested 
     by the President and as proposed by the Senate to create Iraq 
     and Afghanistan Support Units within General Legal 
     Activities, Criminal Division. While the conferees support 
     these activities, they can be provided for with funds 
     available to the Secretary of State.


             SALARIES AND EXPENSES, UNITED STATES ATTORNEYS

       The conference agreement includes $5,000,000 for the United 
     States Attorneys as proposed by the House and requested by 
     the President, instead of $12,500,000 as proposed by the 
     Senate. The funds are provided for extraordinary litigation 
     expenses associated with terrorism prosecutions.

                     United States Marshals Service


                         SALARIES AND EXPENSES

       The conference agreement includes $6,450,000 for the United 
     States Marshals Service, instead of $2,750,000 as proposed by 
     the House and $32,500,000 as proposed by the Senate. The 
     funds are provided for security at high-threat terrorist 
     trials in the United States and to support judicial and 
     witness security in Afghanistan.
       The conference agreement does not include a rescission of 
     $15,000,000 from funds made available in this Act for 
     Department of State Educational and Cultural Exchange 
     Programs, as proposed by the Senate.
       The conferees are aware of substandard conditions in space 
     occupied by U.S. Marshals Service employees in the Moultrie 
     Courthouse Building in the District of Columbia. The Senate 
     bill included funds within chapter 2 of title I for the U.S. 
     Marshals to address some of the problems, but the conference 
     agreement does not include these funds. The conferees direct 
     the U.S. Marshals and the District of Columbia Courts to work 
     together in a coordinated manner to develop a renovation and 
     improvement plan that addresses these issues. The conferees 
     believe that the Committees on Appropriations should consider 
     progress in these plans when developing the fiscal year 2008 
     appropriations bills.
       The conferees also direct that the Inspector General of the 
     Department of Justice shall conduct a review of the health, 
     safety, and security conditions in the Moultrie Courthouse 
     Building space occupied by the U.S. Marshals. Not later than 
     90 days after the date of the enactment of this Act, the 
     Inspector General of the Department of Justice shall submit 
     to the Committees on Appropriations a written report that 
     contains the findings of the review and includes 
     recommendations, as may be appropriate.

                       National Security Division


                         SALARIES AND EXPENSES

       The conference agreement includes $1,736,000 for the 
     National Security Division for investigations and 
     prosecutions as proposed by the House and Senate.

                    Federal Bureau of Investigation


                         SALARIES AND EXPENSES

       The conference agreement includes $268,000,000 for the 
     Federal Bureau of Investigation (FBI) instead of $118,260,000 
     as proposed by the House and as requested by the President 
     and $348,260,000 as proposed by the Senate. Funding is 
     provided for counterterrorism and weapons of mass destruction 
     operations and support requirements.
       The conferees concur with the language in the Senate report 
     regarding the March 2007 report by the Office of Inspector 
     General (OIG) regarding the FBI's use of national security 
     letters. The conferees are extremely concerned by the OIG 
     report and the failings of the FBI to correct the actions 
     earlier in the investigation. The conference agreement 
     includes $10,000,000 as proposed by the Senate to ensure that 
     the Inspector General's recommendations are implemented by 
     the FBI in an expeditious manner. The conference agreement 
     includes bill language transferring $500,000 to the OIG from 
     the FBI for continued audits and investigations related to 
     national security letters.

[[Page 9950]]



                    Drug Enforcement Administration


                         SALARIES AND EXPENSES

       The conference agreement includes $12,166,000 for the Drug 
     Enforcement Administration (DEA) instead of $8,468,000 as 
     proposed by the House and as requested by the President and 
     $25,100,000 as proposed by the Senate. The funds provided 
     above the amount requested by the President are provided to 
     hire additional DEA special agents and support personnel 
     related to the Global War on Terror. The conferees concur 
     with language in the House report directing the DEA 
     Administrator to submit a report on a plan to target and 
     arrest Afghan Drug Kingpins.

          Bureau of Alcohol, Tobacco, Firearms and Explosives


                         SALARIES AND EXPENSES

       The conference agreement includes $4,000,000 for the Bureau 
     of Alcohol, Tobacco, Firearms and Explosives, as proposed by 
     the House and the Senate and as requested by the President.

                         Federal Prison System


                         SALARIES AND EXPENSES

       The conference agreement includes $17,000,000 for the 
     Federal Prison System, as proposed by the House and the 
     Senate and as requested by the President.

                               CHAPTER 3

                    DEPARTMENT OF DEFENSE--MILITARY

       The conference agreement provides $95,528,670,000 for the 
     Department of Defense, instead of $95,529,712,000, as 
     proposed by the House, and $93,532,793,000, as proposed by 
     the Senate.
       The following table provides details of the supplemental 
     appropriations for the Department of Defense--Military.

[[Page 9951]]

  

TH24AP07.001


[[Page 9952]]


  

TH24AP07.002


[[Page 9953]]


  


                         Reporting Requirements

       The conferees direct the Secretary of Defense to provide a 
     report to the congressional defense committees within 30 days 
     after the date of enactment of this legislation on the 
     allocation of the funds within the accounts listed in this 
     chapter. The Secretary shall submit updated reports 30 days 
     after the end of each fiscal quarter until funds listed in 
     this chapter are no longer available for obligation. The 
     conferees direct that these reports shall include: a detailed 
     accounting of obligations and expenditures of appropriations 
     provided in this chapter by program and sub activity group 
     for the continuation of the war in Iraq and Afghanistan; a 
     listing of equipment procured using funds provided in this 
     chapter. The conferees expect that in order to meet 
     unanticipated requirements, the Department of Defense may 
     need to transfer funds within these appropriations accounts 
     for purposes other than those specified in this report. The 
     conferees direct the Department of Defense to follow normal 
     prior approval reprogramming procedures should it be 
     necessary to transfer funding between different 
     appropriations accounts in this chapter.

            Mine Resistant Ambush Protected Vehicles (MRAPs)

       The amended supplemental budget request includes 
     $1,832,300,000 for Mine Resistant Ambush Protected (MRAPs ) 
     Vehicles. These vehicles provide superior protection to our 
     troops trom Improvised Explosive Devices (IEDs). Recognizing 
     the survivability enhancements brought to our warfighters by 
     MRAPs, Congress previously appropriated $592,000,000 for 
     MRAPs in fiscal year 2007. Since IEDs continue to be the 
     biggest threat to our troops in theater, the conferees 
     believe it is imperative that these critical force protection 
     items be provided to the warfighter as quickly as possible. 
     Therefore, based on the most current information provided by 
     the military services, the conferees provide $1,200,000,000 
     above the request for a total of $3,032,300,000 for MRAPs in 
     the conference agreement. Further, the conferees designate 
     MRAPs as a congressional interest item. The table below 
     delineates MRAP funding in the conference agreement by 
     appropriations account.
       Given this program's critical importance, the conferees 
     expect funds to be placed on contract expeditiously and 
     direct the military services to jointly report to the 
     congressional defense committees no later than 30 days after 
     the enactment of this Act on the MRAP program's status, 
     requirements, and the execution of funds provided in the 
     conference agreement. Further, the conferees direct the 
     services to provide updates to the congressional defense 
     committees every 30 days thereafter until all funds provided 
     in the conference agreement are fully obligated.

                                        FY 2007 SUPPLEMENTAL MRAP FUNDING
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                              Supplemental                       Conference vs.
                                                                 Request         Conference          Request
----------------------------------------------------------------------------------------------------------------
Operation and Maintenance, Navy...........................            24,000            24,000  ................
Other Procurement Army, line 129..........................           770,000         1,217,000          +447,000
Other Procurement, Navy, line 124.........................           122,000           130,040            +8,040
Procurement, Marine Corps, line 70........................           678,000         1,263,360          +585,360
Other Procurement, Air Force, line 8 (Air Force)..........            15,200           139,040          +123,840
Procurement, Defense-wide, line 59 (SOCOM)................            73,100           108,860           +35,760
Procurement, Defense-wide, line 61 (SOCOM)................           150,000           150,000  ................
                                                           -----------------------------------------------------
    Total, MRAPs..........................................         1,832,300         3,032,300        +1,200,000
----------------------------------------------------------------------------------------------------------------

                          Classified Programs

       Recommended adjustments to classified programs are 
     addressed in a classified annex accompanying this conference 
     report.

                           MILITARY PERSONNEL

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 9954]]

  

TH24AP07.003


[[Page 9955]]


  

       The conference agreement provides $13,507,993,000 for 
     Military Personnel, instead of $ 13,566,940,000 as proposed 
     by the House, and $13,435,445,000 as proposed by the Senate. 
     The conferees provide $1,148,369,000 above the President's 
     request to fully fund all identified shortfalls for Basic 
     Allowance for Housing for the remainder of fiscal year 2007.
       The conferees are encouraged by the recent success of the 
     Armed Forces to meet or exceed their established recruiting 
     and retention goals and urge the Services to continue 
     pursuing innovative and cost-effective programs to attract 
     and retain high-quality personnel. However, recruiting and 
     retaining challenges still exist, particularly within highly 
     specialized occupational disciplines.
       For this reason, the conference agreement fully funds the 
     supplemental request for recruiting and retention incentives 
     and provides an additional $10,000,000 to specific reserve 
     components that identified recruitment and retention 
     shortfalls.

                        Military Personnel, Army

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 9956]]

  

TH24AP07.004


[[Page 9957]]


  

TH24AP07.005


[[Page 9958]]



  


                    Army Physical Disability System

       The conferees direct the Secretary of the Army to take the 
     necessary actions to implement the recommendations of the 
     Army Inspector General to improve legal representation for 
     soldiers pursuing claims through the Army Physical Disability 
     Evaluation System. 

                        Military Personnel, Navy

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 9959]]

  

TH24AP07.006


[[Page 9960]]

TH24AP07.007



[[Page 9961]]

  


                    Military Personnel, Marine Corps

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 9962]]

  

TH24AP07.008


[[Page 9963]]



  

TH24AP07.009


[[Page 9964]]



  


                     Military Personnel, Air Force

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 9965]]

  

TH24AP07.010


[[Page 9966]]



  

TH24AP07.011


[[Page 9967]]



  


                        Reserve Personnel, Army

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 9968]]

     TH24AP07.012
     


[[Page 9969]]

  

TH24AP07.013


[[Page 9970]]



  


                        Reserve Personnel, Navy

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 9971]]

     TH24AP07.014
     


[[Page 9972]]

  

TH24AP07.015


[[Page 9973]]



  


                    Reserve Personnel, Marine Corps

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 9974]]

     TH24AP07.016
     


[[Page 9975]]

     TH24AP07.017
     


[[Page 9976]]

  


                      Reserve Personnel, Air Force

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 9977]]

  

TH24AP07.018


[[Page 9978]]

TH24AP07.019




[[Page 9979]]

  


                     National Guard Personnel, Army

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 9980]]

     TH24AP07.020
     


[[Page 9981]]

     TH24AP07.021
     


[[Page 9982]]

  


                  National Guard Personnel, Air Force

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 9983]]

     TH24AP07.022
     


[[Page 9984]]

  

TH24AP07.023


[[Page 9985]]



  


                       operation and maintenance

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 9986]]

     TH24AP07.024
     


[[Page 9987]]

  

       The conference agreement provides $50,429,975,000 for 
     Operation and Maintenance, instead of $52,499,979,000 as 
     proposed by the House, and $48,784,490,000 as proposed by the 
     Senate. The conferees provide a net increase $171,368,000 
     above the President's request. The level of funding agreed to 
     by the conferees fully funds critical ground combat 
     operations, flying hours, military intelligence activities, 
     logistical support, fuel purchases, base support, depot 
     maintenance and over-ocean transportation related to the. 
     wars in Iraq and Afghanistan.
       The conferees believe that military operations in 
     Afghanistan are vital to defeating terrorism and therefore 
     provide an additional $750,000,000 for OPERATION ENDURING 
     FREEDOM above the original budget request as follows:

                       OPERATION ENDURING FREEDOM

                           ($'s in millions)

Army...............................................................+510
Navy...............................................................+100
Marine Corps........................................................+45
Air Force...........................................................+80
Defense-wide........................................................+15
    Total OEF......................................................+750

                    Operation and Maintenance, Army

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 9988]]

     TH24AP07.025
     


[[Page 9989]]

  

TH24AP07.026


[[Page 9990]]



  


                 Commanders' Emergency Response Program

       Within the funds provided for Operation and Maintenance, 
     Army, the conference agreement includes $456,400,000 for the 
     Commanders' Emergency Response Program (CERP). Within this 
     amount, $350,400,000 shall be for CERP activities in Iraq and 
     $106,000,000 for activities in Afghanistan.
       The following table provides details within Operation and 
     Maintenance, Army line items recommended by the conferees:

------------------------------------------------------------------------
                                                           Conference
                  Line and Category                      Recommendation
------------------------------------------------------------------------
135  OIF/OEF Operations and Sustainment..............          3,472,494
135  LOGCAP..........................................          2,511,402
135  Subsistence.....................................            965,300
135..................................................      IBA/RFI/Other
                                                        Force Protection
135  Predeployment Training and Support..............          1,484,768
135  Active Component Overstrength (30K).............            386,189
135  Soldier and Family Support......................            863,365
135  Contract Linguists/Cultural Advisors............            884,902
135  CONUS Base Support/Security.....................            851,903
135  Recruiting and Retention........................            215,869
135  Reconstruction Support (GRD/PCO)................            790,082
135  BCT Acceleration................................            177,245
135  Theater Plus Up/Surge...........................          3,029,745
135  COCOM Regional War on Terror....................             90,832
135  Other GWOT......................................            218,949
135  Intelligence Activities.........................            119,859
                                                      ------------------
    Subtotal Additional Activities...................         17,606,616
136  CERP............................................            456,400
411  Security programs...............................            597,614
421  Second Destination Transportation...............          1,712,749
                                                      ------------------
        Grand Total, Operation and Maintenance, Army.         20,373,379
------------------------------------------------------------------------

                    Operation and Maintenance, Navy

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 9991]]

  

TH24AP07.027


[[Page 9992]]



  

TH24AP07.028


[[Page 9993]]



  

TH24AP07.029


[[Page 9994]]



  


                     Unexecutable Depot Maintenance

       In the fiscal year 2007 emergency supplemental request, the 
     Navy requested funding for additional depot maintenance 
     associated with the surge of combat forces to Iraq and the 
     CENTCOM area of responsibility. Based on more recent analysis 
     of depot maintenance requirements subsequent to the budget 
     submission, the conferees reduce the amount of funding 
     identified by the Navy as being unexecutable in fiscal year 
     2007.

                Operation and Maintenance, Marine Corps

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 9995]]

  

TH24AP07.030


[[Page 9996]]



  

TH24AP07.031


[[Page 9997]]



  


                          Unexecutable Funding

       Subsequent to the budget submission, the Marine Corps 
     identified $300,000,000 that is unexecutable in fiscal year 
     2007 based on unanticipated lag time associated with current 
     funding execution.

                  Operation and Maintenance, Air Force

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 9998]]

  

TH24AP07.032


[[Page 9999]]



  

TH24AP07.033


[[Page 10000]]



  

TH24AP07.034


[[Page 10001]]



  


                Operation and Maintenance, Defense-Wide

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10002]]

     TH24AP07.035
     


[[Page 10003]]

  

TH24AP07.036

 
[[Page 10004]]



                  Expeditionary Virtual Network (EVNO)

       The conference agreement deletes funds requested within the 
     Defense Information Systems Agency for the expeditionary 
     virtual network. The conferees direct that these activities 
     shall be funded within funds made available in this Act for 
     the Iraq Security Forces Fund. 

                      SOAR Virtual School District

       The conferees direct that the Deputy Undersecretary of 
     Defense for Military Community and Family Policy shall 
     release a request for proposal as soon as practicable for 
     funding provided in the fiscal year 2007 Defense 
     Appropriations Act for Student Online Achievement Resources 
     (SOAR Virtual School District), an Internet-based initiative 
     designed to assist children from military families reap the 
     greatest benefit from their public education, especially as 
     families relocate and students move from school to school. 
     This effort shall involve online assessments to identify 
     strengths and weaknesses in both literacy and math and will 
     be provided by a teacher education program of an institution 
     of higher education that has experience working with teachers 
     to provide curricula for children of Armed Forces personnel. 
     Further, this project shall link schools through a ``virtual 
     school district,'' providing a vehicle by which a student's 
     individual performance records can transfer to a student's 
     new school.

                        Family Advocacy Programs

       The conference agreement provides $10,000,000 for Family 
     Advocacy Programs, instead of $17,000,000 as proposed by the 
     House. Of the additional amounts provided, $4,000,000 is to 
     fund initiatives to bolster Guard and Reserve family pre-
     deployment and post deployment support programs. These 
     initiatives should utilize Joint Reserve & Guard Family 
     Assistance Centers. The conferees also provide $6,000,000 to 
     support the child care needs of deployed Guard and Reserve 
     members in their local communities, to include respite and 
     emergency child care.
       The conferees also are aware of and concerned about the 
     growing need for family members to have access to 
     professional counseling to help alleviate the mental stresses 
     associated with deployments. At select bases around the 
     country, it has been reported that children of service 
     members are experiencing higher truancy rates and falling 
     grades in school. As such, the conferees urge the family 
     advocacy programs to work with the Department's Health 
     Affairs office, specifically the Defense Health Program, to 
     coordinate efforts to ensure that counseling is provided to 
     all family members of the active duty and reserve component 
     members on deployment or preparing for deployment overseas.

                         Global Train And Equip

       The conference report does not contain an emergency 
     appropriation requested by the Administration for Global 
     Train and Equip authorized under section 1206 of the Fiscal 
     Year 2006 National Defense Authorization Act. Based upon 
     discussions with the Department of Defense, the conferees 
     understand that the Department, working with other federal 
     agencies, has identified requirements associated with Global 
     Train and Equip activities, and is developing a reprogramming 
     request for consideration by the congressional defense 
     committees. The conferees await such a request and anticipate 
     favorable consideration of the reprogramming, provided that 
     the sources of funds meet the committees' approval.

                       Handgun Replacement Study

       The conferees provide $5,000,000 only for a study that 
     examines joint sidearm requirements (including service-unique 
     requirements, as appropriate), the M9 9mm handgun's 
     capabilities (including its lethality), and handgun and 
     ammunition alternatives that address these requirements. The 
     conferees understand that it will be necessary to purchase up 
     to 50 handguns and associated ammunition to conduct this 
     study. In order to inform deliberations on the fiscal year 
     2008 appropriations bill for the Department of Defense, the 
     conferees direct that the results of the study be provided in 
     a written report to the congressional defense committees by 
     August 31, 2007.

                Operation And Maintenance, Army Reserve

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10005]]

     TH24AP07.037
     


[[Page 10006]]

  


                Operation and Maintenance, Navy Reserve

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10007]]

  

TH24AP07.038


[[Page 10008]]



  


            operation and Maintenance, Marine Corps Reserve

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10009]]

     TH24AP07.039
     


[[Page 10010]]

  


              Operation and Maintenance, Air Force Reserve

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10011]]

     TH24AP07.040
     


[[Page 10012]]

  


             Operation and Maintenance, Army National Guard

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10013]]

     TH24AP07.041
     


[[Page 10014]]

     TH24AP07.042
     


[[Page 10015]]

  


             Operation and Maintenance, Air National Guard

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10016]]

     TH24AP07.043
     


[[Page 10017]]

  


                    Afghanistan Security Forces Fund

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10018]]

     TH24AP07.044
     


[[Page 10019]]

  


                       Iraq Security Forces Fund

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10020]]

     TH24AP07.045
     
      

[[Page 10021]]

                       Iraq Security Forces Fund

       The conference agreement includes $3,842,300,000, the same 
     level as proposed by both the House and the Senate for the 
     Iraq Security Forces Fund. Within this amount, the conference 
     agreement includes $155,500,000 for assistance to the 
     Government of Iraq to disarm, demobilize and reintegrate 
     militias and illegal armed groups. The House had proposed to 
     delete these funds.
       The conference agreement modifies a general provision 
     proposed by the House that required certain reports before 
     the obligation of more than 50 percent of the funds made 
     available under this heading.
       The conference agreement deletes the withholding of funds 
     under this heading until the reports are provided and, in 
     lieu thereof, requires the submission of the aforementioned 
     reports to the congressional defense committees. The 
     conferees note the pressing need for the data mandated in 
     these reports and fully expect the Department of Defense and 
     the Office of Management and Budget to submit these reports, 
     and any updates thereto, within the timeframes identified in 
     the provision. 

                           Iraq Freedom Fund

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10022]]

     TH24AP07.046
     
      

[[Page 10023]]

             Joint Improvised Explosive Device Defeat Fund

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10024]]

     TH24AP07.047
     
      

[[Page 10025]]

             Joint Improvised Explosive Device Defeat Fund

       The conference agreement provides $2,432,800,000 for the 
     Joint Improvised Explosive Device Defeat Organization 
     (JIEDDO), as requested, and proposed by both the House and 
     the Senate. Both chambers have expressed concerns with 
     JIEDDO's management practices, and the conferees concur with 
     the findings made by the respective Committees. The conferees 
     direct the Joint Improvised Explosive Device Defeat 
     Organization to adhere to the reporting requirements as set 
     forth in Senate Report 110-37 and the direction and 
     reprogramming requirements as set forth in House Report 110-
     60.
       The conferees agree to provide substantial resources to the 
     JIEDDO in support of the prescribed objective to develop and 
     field innovative solutions and countermeasures to mitigate 
     the critical threat posed by improvised explosive devices. 
     However, the conferees remain concerned with the 
     organization's financial management practices, including its 
     continued failure to provide a plan for obligation and 
     expenditures for previously appropriated and for currently 
     requested funding. The conferees are concerned that the 
     organization is not effectively managing its resources to 
     deliver effective counter-IED solutions to theater. 
     Furthermore, the conferees are concerned with the JIEDDO's 
     inability to provide timely and detailed responses to the 
     congressional defense committees' inquiries for specific 
     information regarding its budget requests. The conferees will 
     be hard-pressed to fully fund future budget requests unless 
     the JIEDDO improves its financial management practices and 
     its responsiveness. 

                    Strategic Reserve Readiness Fund

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10026]]

     TH24AP07.048
     
      

[[Page 10027]]

                    Strategic Reserve Readiness Fund

       The conference agreement provides $2,000,000,000 to 
     establish the Strategic Reserve Readiness Fund, instead of 
     $2,500,000,000 as proposed by the House. From the amount 
     provided, $1,000,000,000 shall be transferred to the National 
     Guard and Reserve Equipment appropriation to support 
     improvements to the readiness of the Army National Guard. 

                              PROCUREMENT

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10028]]

     TH24AP07.049
     
      

[[Page 10029]]

                         Aircraft Combat Losses

       The conferees have agreed to fund procurement of aircraft 
     to replace combat losses. The conference agreement includes 
     funding for three F/A-18E/F aircraft to directly replace F/A-
     18 aircraft lost in combat and to fund a single EA-18G 
     aircraft which is a functional replacement for an EA-6B 
     Prowler combat loss. Additionally, funding is provided to 
     bolster the readiness and capabilities of aviation assets 
     operating in extremely high rates. As such, the conferees 
     agree to fund six UH-60 helicopters and five C-130 aircraft. 

                   Funding for Efforts in Base Budget

       The conferees agree to delete funding for procurement items 
     that are better suited to receive funding through the normal 
     budget process. Replacing obsolete computer equipment and 
     installing non-emergency equipment modifications or upgrades 
     should be funded as part of the base budget. The Department 
     of Defense is encouraged to appropriately identify their 
     needs so that only emergency items are requested in the 
     supplementals and routine procurements are funded in the 
     normal budget process. Additionally, the Department is 
     reminded that supplemental funding should not be requested 
     for items that can not be executed in a timely fashion. 

                       Aircraft Procurement, Army

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10030]]

     TH24AP07.050
     


[[Page 10031]]

     TH24AP07.051
     
      

[[Page 10032]]

                       Missile Procurement, Army

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10033]]

     TH24AP07.052
     


[[Page 10034]]

     TH24AP07.053
     
      

[[Page 10035]]

        Procurement of Weapons and Tracked Combat Vehicles, Army

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10036]]

     TH24AP07.054
     


[[Page 10037]]

     TH24AP07.055
     
      

[[Page 10038]]

                    Procurement of Ammunition, Army

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10039]]

     TH24AP07.056
     
      

[[Page 10040]]

                        Other Procurement, Army

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10041]]

     TH24AP07.057
     


[[Page 10042]]

     TH24AP07.058
     


[[Page 10043]]

     TH24AP07.059
     


[[Page 10044]]

     TH24AP07.060
     


[[Page 10045]]

     TH24AP07.061
     


[[Page 10046]]

     TH24AP07.062
     
      

[[Page 10047]]

   Single Channel Ground and Airborne Radio System (SINCGARS) Family

       The conferees are concerned that the Army may not be using 
     all the available and qualified industrial capacity to 
     deliver funded quantities of SINCGARS radios to units in the 
     field. The conferees strongly encourage the Army to pursue 
     aggressively the necessary industrial capacity to produce the 
     needed SINCGARS radios and to equip the units of the Army, 
     including the Army Reserve Components, in a timely manner. 
     The conferees recommend $458,709,000 for SINCGARS radios, a 
     reduction of $75,000,000 from the amended budget request. 
     Additionally, $175,000,000 of the amount provided may not be 
     obligated by the Army until 15 days after the Secretary of 
     the Army provides a report to the congressional defense 
     committees that includes an evaluation of SINCGARS capable 
     commercial off-the-shelf tactical radios that can meet 
     operational needs and that explains the Army's strategy to 
     leverage available industrial capacity in order to produce 
     the needed radios at a significantly faster rate. 

                       Aircraft Procurement, Navy

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10048]]

     TH24AP07.063
     


[[Page 10049]]

     TH24AP07.064
     
      

[[Page 10050]]

                       Weapons Procurement, Navy

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10051]]

     TH24AP07.065
     


[[Page 10052]]

     TH24AP07.066
     
      

[[Page 10053]]

            Procurement of Ammunition, Navy and Marine Corps

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10054]]

     TH24AP07.067
     

   


[[Page 10055]]

                        Other Procurement, Navy

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10056]]

     TH24AP07.068
     


[[Page 10057]]

     TH24AP07.069
     
      

[[Page 10058]]

                       Procurement, Marine Corps

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10059]]

     TH24AP07.070
     


[[Page 10060]]

     TH24AP07.071
     


[[Page 10061]]

     TH24AP07.072
     
      

[[Page 10062]]

                    Aircraft Procurement, Air Force

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10063]]

     TH24AP07.073
     


[[Page 10064]]

     TH24AP07.074
     
      

[[Page 10065]]

                     Missile Procurement, Air Force

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10066]]

     TH24AP07.075
     


[[Page 10067]]

     TH24AP07.076
     
      

[[Page 10068]]

                  Procurement of Ammunition, Air Force

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10069]]

     TH24AP07.077
     


[[Page 10070]]

     TH24AP07.078
     
      

[[Page 10071]]

                      Handgun Replacement Program

       The supplemental request includes $89,800,000 to replace 
     the Air Force M9 9mm handgun and associated ammunition. The 
     conferees understand that the Army, Marine Corps, Navy, and 
     Special Operations
       Command procure the M9 9mm handgun as their standard issue 
     sidearm. Therefore, the conferees believe that a replacement 
     or upgrade to the 9mm handgun should address joint 
     requirements. Since this coordination did not occur prior to 
     the supplemental budget submission, the conferees deny the 
     requested funding for a single service replacement program. 
     However, recognizing the importance of a reliable and lethal 
     sidearm to the warfighter, the conferees provide $5,000,000 
     only for a study that examines joint sidearm requirements 
     (including service-unique requirements, as appropriate), the 
     M9 9mm handgun capabilities (including its lethality), and 
     handgun and ammunition alternatives that address these 
     requirements. The conferees understand that it will be 
     necessary to purchase up to 50 handguns and associated 
     ammunition to conduct this study. In order to inform 
     deliberations on the fiscal year 2008 appropriations bill for 
     the Department of Defense, the conferees direct that the 
     results of the study be provided in a written report to the 
     congressional defense committees by August 31, 2007. 

                      Other Procurement, Air Force

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10072]]

     TH24AP07.079
     


[[Page 10073]]

     TH24AP07.080
     
      

[[Page 10074]]

       Global Broadcast Service--Rucksack Portable Receive Suite

       The conferees understand that additional research and 
     development would further reduce the weight of the Global 
     Broadcast Service--Rucksack Portable Receive Suite (GBS-
     RPRS). Due to the premature request, the conferees deny 
     funding for this item, without prejudice. The conferees 
     encourage the Air Force to proceed with the development 
     effort and intend to review the program should a request be 
     received for funding in fiscal year 2008.

                       Procurement, Defense-Wide

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10075]]

     TH24AP07.081
     


[[Page 10076]]

     TH24AP07.082
     
      

[[Page 10077]]

                  National Guard and Reserve Equipment

       The conference agreement provides funding for National 
     Guard and Reserve Equipment for the Army National Guard in 
     the Strategic Reserve Readiness Fund instead of in the 
     National Guard and Reserve Equipment account as proposed by 
     the Senate.

[[Page 10078]]

     TH24AP07.083
     
      

[[Page 10079]]

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10080]]

     TH24AP07.084
     
      

[[Page 10081]]

            Research, Development, Test and Evaluation, Army

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10082]]

     TH24AP07.085
     


[[Page 10083]]

     TH24AP07.086
     
      

[[Page 10084]]

            Research, Development, Test and Evaluation, Navy

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10085]]

     TH24AP07.087
     


[[Page 10086]]

     TH24AP07.088
     
      

[[Page 10087]]

         Research, Development, Test and Evaluation, Air Force

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10088]]

     TH24AP07.089
     


[[Page 10089]]

     TH24AP07.090
     
      

[[Page 10090]]

        Research, Development, Test and Evaluation, Defense-Wide

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10091]]

     TH24AP07.091
     


[[Page 10092]]

     TH24AP07.092
     
      

[[Page 10093]]

                    REVOLVING AND MANAGEMENT FUNDS 

                     Defense Working Capital Funds

       The conference agreement provides $1,315,526,000, as 
     proposed by both the House and the Senate. 

                     National Defense Sealift Fund

       The conference agreement provides $5,000,000 as proposed by 
     both the House and the Senate. 

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10094]]

     TH24AP07.093
     


[[Page 10095]]

     TH24AP07.094
     
      

[[Page 10096]]

       The conference agreement provides $3,251,853,000 for the 
     Defense Health Program, instead of $2,789,703,000 as proposed 
     by the House and $2,466,847,000 as proposed by the Senate. 

Traumatic Brain Injury (TBI) and Post Traumatic Stress Disorder (PTSD) 
                         Treatment and Research

       The conferees believe that, if a service member is 
     correctly diagnosed with TBI or PTSD, the better chance he or 
     she has of a full recovery. It is critical that health care 
     providers are given the resources necessary to make accurate, 
     timely referrals for appropriate treatment and that service 
     members have high priority access to such services. 
     Therefore, the conference agreement provides $900,000,000 for 
     access, treatment and research for TBI and PTSD. Of the 
     amount provided, $600,000,000 is for operation and 
     maintenance and $300,000,000 is for research, development, 
     test and evaluation to conduct peer reviewed research.
       By increasing funding for TBI and PTSD, the conferees 
     believe that the Defense Department now will have significant 
     resources to dramatically improve screening for risk factors, 
     diagnosis, treatment, counseling, research, facilities and 
     equipment to prevent or treat these illnesses.
       If the Secretary of Defense determines that funds made 
     available within the operation and maintenance account for 
     the treatment of TBI and PTSD are excess to the requirements 
     of the Department of Defense, the conference agreement 
     provides the authority to transfer excess amounts to the 
     Department of Veterans Affairs to be available only for the 
     same purpose.

                      Care Giver Support Programs

       The conference agreement provides $12,000,000 for care 
     giver support programs, to be allocated as recommended in 
     House Report 110-60, in order to assist the military medical 
     facilities' nurses and doctors who are treating the wounded 
     by ensuring they have sufficient stress prevention and 
     management programs.

                          Amputee Health Care

       The conference agreement provides a total of $61,950,000 
     for amputee health care. The additional monies, to be 
     allocated consistent with House Report 110-60, will enhance 
     health care services and operations at Walter Reed, Brooke 
     Army Medical Center/Center for the Intrepid, Landstuhl 
     Regional Medical Center and National Naval Medical Center--
     Balboa.

              Sustaining the Military Health Care Benefit

       When the fiscal year 2007 budget request was submitted, it 
     assumed savings anticipated from legislation that would have 
     significantly increased fees and premiums paid by military 
     members. The legislation was not enacted by Congress. The 
     conference agreement provides $660,750,000 to fully fund the 
     Defense Health Program for fiscal year 2007. The conferees 
     strongly urge the Department to examine other ways to sustain 
     the benefit without relying on Congress to enact legislation 
     that would increase the out-of-pocket costs to the 
     beneficiaries.

           Military Health Care Budget--``Efficiency Wedge''

       The conference agreement provides $500,000,000 in operation 
     and maintenance and procurement funding to reverse 
     ``efficiency wedge'' savings mandated by the Department of 
     Defense. The monies are to be allocated consistent with 
     Senate Report 110-37 and will return funding to appropriate 
     levels within the Direct Care system and allow the services 
     to address critical needs.

  Health Care in Support of Army Modular Force Conversion and Global 
                              Positioning

       The conferees are concerned that the Army has been directed 
     to cover costs associated with health care support of Army 
     modular force (AMF) conversion and global positioning. The 
     cost of these movements is estimated at $68,000,000 and will 
     enable the Army to provide the capacity to meet increases in 
     the demand for health care created as the Army repositions 
     forces. This necessary funding is required to ensure that 
     soldiers, particularly those returning from combat, and their 
     families are able to access military health care.
       The conferees direct the Assistant Secretary of Defense for 
     Health Affairs and the Surgeon General of the Army to 
     coordinate an effort and report back to the congressional 
     defense committees by June 29, 2007, on how these anticipated 
     costs will be funded to ensure soldiers and their families 
     affected by AMF and global positioning will have access to 
     the health care they deserve.

                         Traumatic Brain Injury

       The conferees direct the Assistant Secretary of Defense for 
     Health Affairs to submit a report to the congressional 
     defense committees regarding the extent of, treatment of, and 
     outreach to patients with traumatic brain injury, through 
     military hospitals and outpatient clinics and their families. 
     The report shall be submitted within 120 days after enactment 
     of this Act, and it shall describe the Department's diagnosis 
     and screening processes, communication procedures and 
     policies for family members, and provide an accounting of 
     funds budgeted and expended for this type of injury.

         Drug Interdiction and Counter-Drug Activities, Defense

       The conference agreement provides $254,665,000, as proposed 
     by the Senate, instead of $259,115,000 as proposed by the 
     House.
       The conference agreement on items addressed by either the 
     House or the Senate is as follows:

[[Page 10097]]

     TH24AP07.095
     
      

[[Page 10098]]

                            RELATED AGENCIES

               Intelligence Community Management Account

       The conference agreement provides $71,726,000 as proposed 
     by the Senate instead of $57,426,000 as proposed by the 
     House.

                    GENERAL PROVISIONS--THIS CHAPTER

       The conference agreement retains a provision (Section 
     1301), as proposed by both the House and Senate, which 
     provides for the obligation of appropriations made available 
     in this chapter until September 30, 2007.
       The conference agreement includes a provision (Section 
     1302), as proposed by the Senate, relating to general 
     transfer authority.
       The conference agreement retains a provision (Section 
     1303), as proposed by both the House and Senate, which 
     provides for the obligation and expenditure of funds related 
     to activities pursuant to section 504(a)(1) of the National 
     Security Act of 1947.
       The conference agreement retains a provision (Section 
     1304), as proposed by both the House and Senate, which 
     prohibits funds provided in this chapter to finance programs 
     or activities denied by Congress, or to initiate a new start 
     program without prior notification to the congressional 
     defense committees.
       The conference agreement includes a provision (Section 
     1305), as proposed by the Senate, relating to amounts 
     transferred or credited to the Defense Cooperation Account.
       The conference agreement modifies a provision (Section 
     1306), as proposed by both the House and Senate, which 
     provides funds for support for counter-drug activities of the 
     Governments of Afghanistan and Pakistan.
       The conference agreement includes a provision (Section 
     1307), as proposed by the Senate, relating to the Commanders' 
     Emergency Response Program.
       The conference agreement includes a provision (Section 
     1308), as proposed by the House, relating to submission of 
     the Measuring Stability in Iraq report.
       The conference agreement includes a provision (Section 
     1309), as proposed by the Senate, relating to supervision and 
     administrative costs associated with construction contracts 
     in Iraq and Afghanistan.
       The conference agreement retains a provision (Section 
     1310), as proposed by both the House and Senate, relating to 
     U.S. contributions to NATO common-funded budgets.
       The conference agreement retains a provision (Section 
     1311), as proposed by both the House and Senate, relating to 
     permanent bases in Iraq.
       The conference agreement includes a provision (Section 
     1312), as proposed by the Senate, which prohibits funds to 
     contravene laws or regulations promulgated to implement the 
     United Nations Convention Against Torture and Other Cruel, 
     Inhuman or Degrading Treatment or Punishment.
       The conference agreement deletes a provision, as proposed 
     by the House (Section 1312), permitting the transfer of up to 
     $100,000,000 from Operation and Maintenance, Defense-Wide to 
     the Department of State ``Economic Support Fund'' to support 
     provincial reconstruction teams in Iraq and Afghanistan. The 
     conference agreement includes funds for this activity within 
     the appropriation for the Iraq Freedom Fund.
       The conference agreement modifies a provision (Section 
     1313), as proposed by the House, relating to the withholding 
     of funds appropriated under certain headings until the 
     Department of Defense and the Office of Management and Budget 
     submit certain reports relating to Iraq and Afghanistan 
     security forces.
       The conference agreement modifies a provision (Section 
     1314), as proposed by the House, relating to contractor award 
     fees.
       The conference agreement modifies a provision (Section 
     1315), as proposed by the House, relating to the cost of 
     Department of Defense contracts and number of contracted 
     personnel in Iraq and Afghanistan by deleting the reduction 
     of $815,000,000, increasing the amounts withheld pending a 
     DoD report on contract costs and personnel, and clarifying 
     the reporting requirements.
       The conference agreement includes a provision (Section 
     1316), as proposed by the House, which provides temporary 
     authority to allow service members to designate a portion of 
     their death gratuity benefit to someone other than next of 
     kin.
       The conference agreement includes a provision (Section 
     1317), as proposed by the Senate, which provides up to 287 
     heavy armored vehicles for force protection purposes in Iraq 
     and Afghanistan.
       The conference agreement modifies a provision (Section 
     1318), as proposed by the Senate, which requires the 
     Secretary of Defense to inspect all military medical 
     treatment facilities and military quarters housing medical 
     hold and medical holdover personnel.
       The conference agreement does not include a provision, as 
     proposed by the House (Section 1320), relating to the legal 
     representation for soldiers pursuing claims through the Army 
     Physical Disability Evaluation System. The conference 
     agreement addresses this matter elsewhere in the joint 
     explanatory statement.
       The conference agreement includes a provision (Section 
     1319), as proposed by the Senate, regarding the disarming of 
     militias.
       The conference agreement modifies a provision (Section 
     1320), as proposed by the Senate, relating to an independent 
     assessment of the capabilities of the Iraqi security forces.
       The conference agreement includes a provision (Section 
     1321) which provides a one-time waiver of time limitations 
     for the award of the Medal of Honor.
       The conference agreement includes a provision (Section 
     1322) that from funds appropriated in ``Other Procurement, 
     Army'', in the Department of Defense Appropriations Act, 
     2006, $6,250,000 shall be transferred to ``Military 
     Construction, Army''.
       The conference agreement includes a provision (Section 
     1323) permitting the transfer of up to $110,000,000 from 
     various appropriations to the Department of State ``Economic 
     Support Fund'' to support programs in Pakistan.
       The conference agreement deletes a provision, as proposed 
     by the House (Section 1319), which would have amended section 
     l403(a) of the Floyd D. Spence National Defense Authorization 
     Act for fiscal year 2001 (as amended).
       The conference agreement deletes a provision, as proposed 
     by the Senate (Section 1318), relating to the redevelopment 
     of the industrial sector in Iraq. The conference agreement 
     addresses this issue within the appropriation for the Iraq 
     Freedom Fund.
       The conference agreement deletes a provision, as proposed 
     by the Senate (Section 1319), to provide $1,500,000,000 for 
     Mine Resistant Ambush Protected Vehicles. This matter is 
     addressed within various appropriations in this chapter.

                               CHAPTER 4

                          DEPARTMENT OF ENERGY

                    ATOMIC ENERGY DEFENSE ACTIVITIES

                NATIONAL NUCLEAR SECURITY ADMINISTRATION

                    DEFENSE NUCLEAR NONPROLIFERATION

       The conference agreement provides $150,000,000 for Defense 
     Nuclear Nonproliferation activities by the National Nuclear 
     Security Administration, as proposed by the House instead of 
     $63,000,000 as proposed by the Senate. Within the amounts 
     provided, $136,000,000 is included for the International 
     Nuclear Materials Protection and Cooperation program, 
     including $25,000,000 for Rosatom Weapons Complex activities 
     to begin comprehensive security upgrades at Mayak plutonium 
     facilities where Russia recently agreed to allow access to 
     U.S. teams for cooperative security work; $87,000,000 for the 
     Megaports initiative to accelerate activities in host 
     countries with seaports that have signed implementation 
     agreements but are currently not funded to complete 
     deployment of radiation detection equipment for scanning 
     cargo containers; and $24,000,000 for additional high 
     priority activities. Further the recommendation includes 
     $14,000,000 for the Global Threat Reduction Initiative for 
     Kazakhstan spent fuel security activities.
       Sec. 1401. The conference agreement includes a provision 
     regarding National Nuclear Security Administration transfer 
     authority.

                               CHAPTER 5

                    DEPARTMENT OF HOMELAND SECURITY

              Office of the Under Secretary for Management

       The conferees agree with the Senate's concern that the 
     management and administrative challenges facing the 
     Department will increase unless a stronger focus is placed on 
     hiring, training, and maintaining career leaders. In 
     particular, the conferees are concerned that the Department 
     and its components will not be able to function effectively 
     when the change in administration occurs in 2009. The 
     conferees direct the Department to provide, by July 20, 2007, 
     a report on senior staffing, as proposed by the Senate. The 
     conferees further direct the Government Accountability Office 
     to assess the strengths and weaknesses of the report within 
     90 days after the Department submits the report. In addition, 
     the conferees provide $900,000 in title IV of the bill for 
     the Under Secretary for Management to award a grant or 
     contract to the National Academy of Public Administration 
     (NAPA) to undertake a study to compare the Department of 
     Homeland Security's reported senior career and political 
     staffing levels and senior career training programs with 
     those of similarly structured cabinet-level agencies. NAPA is 
     an independent, non-partisan organization chartered by 
     Congress to assist Federal, State, and local governments in 
     improving their effectiveness, efficiency, and 
     accountability. The conferees direct the Department to 
     execute such grant or contract no later than the July 20, 
     2007, report submission date, and for NAPA to submit its 
     report within six months thereafter.

                Office of the Chief Information Officer

       The Chief Information Officer is directed to submit to the 
     Committees on Appropriations no later than 30 days after the 
     date of enactment of this Act a report on the full costs to 
     transition information to the Department of Homeland 
     Security's primary data center. This report is to include, by 
     departmental component: a schedule for data transition; costs 
     for each fiscal year required to complete the transition; 
     identification of items associated with the transition 
     required to be procured and related procurement schedule; and 
     identification of any transition costs provided in fiscal 
     year 2007 or requested in the fiscal year 2008 President's 
     budget. A report on the same elements for the data center to 
     be selected in the summer of 2007

[[Page 10099]]

     shall be submitted to the Committees on Appropriations no 
     later than 30 days after a final selection has been made.

                        Analysis and Operations

       The conferees provide an additional $15,000,000 in support 
     of the State and local fusion center program, instead of 
     $35,000,000 as proposed by the House. The Senate bill 
     contains no similar provision. These funds, along with 
     amounts made available to date in fiscal year 2007, will 
     allow DHS to support 35 fully-operational centers by the end 
     of 2008.
       Consistent with the House report, the conferees direct the 
     Department's Chief Intelligence Officer to provide on-going, 
     quarterly updates to the Committees on Appropriations, 
     starting on July 1, 2007, that detail progress in placing DHS 
     homeland security intelligence professionals in State and 
     local fusion centers. These reports shall include: the 
     qualification criteria used by DHS to decide where and how to 
     place DHS intelligence analysts and related technology; total 
     expenditures to support each center to date and during the 
     most recent quarter of the current fiscal year, in the same 
     categorization as materials submitted to the Committees on 
     Appropriations on March 23, 2007; the location of each fusion 
     center, including identification of those with DHS personnel, 
     both operational and planned; the schedule for operational 
     stand-up of planned fusion centers; the number of DHS-funded 
     employees located at each fusion center, including details on 
     whether the employees are contract or government staff; the 
     privacy protection policies of each center, including the 
     number of facility personnel trained in Federal privacy, 
     civil rights, and civil liberties laws and standards; and the 
     number of local law enforcement agents at each center 
     approved or pending approval to receive and review classified 
     intelligence information.

              United States Customs and Border Protection


                         salaries and expenses

                     (including transfer of funds)

       The conferees provide an additional $115,000,000 for 
     Salaries and Expenses, instead of $100,000,000 as proposed by 
     the House and $140,000,000 as proposed by the Senate. 
     Included in this amount are funds to:
       (1) implement Security and Accountability For Every Port 
     Act of 2006 (Public Law 109-347) requirements and advance 
     goals of the Secure Freight Initiative to improve 
     significantly the ability of United States Customs and Border 
     Protection (CBP) to target and analyze U.S.-bound cargo 
     containers; expand the screening of such cargo overseas and 
     the capacity to physically inspect containers; procure and 
     integrate non-intrusive inspection equipment into inspection 
     and radiation detection operations; and improve supply chain 
     security, to include enhanced analytic and targeting systems 
     using data collected via commercial and government 
     technologies and databases;
       (2) support hiring of not less than an additional 600 CBP 
     Officers, and additional intelligence and trade specialist 
     and support positions for targeting and screening on the 
     Northern Border, at overseas locations, and at the National 
     Targeting Center, and staffing required for Northern Border 
     Air and Marine Operations; and
       (3) transfer up to $5,000,000 to the Federal Law 
     Enforcement Training Center for basic training costs 
     associated with the additional personnel funded in this Act.
       The conferees direct CBP to submit expenditure and staffing 
     plans for these additional funds to the Committees on 
     Appropriations no later than 30 days after the date of 
     enactment of this Act and prior to the obligation of the 
     funds.
       The conferees direct CBP to sustain the current level of 
     Border Patrol staffing on the Northern Border and to inform 
     the Committees on Appropriations immediately if CBP does not 
     expect to achieve its plan of having at least 1,179 Border 
     Patrol agents permanently deployed to the Northern Border by 
     the end of fiscal year 2007.


                        alien smuggling tracking

       The conferees are aware that CBP has established an Office 
     of Alien Smuggling Interdiction (ASI), including three field-
     level Regional Carrier Liaison Groups. According to CBP, ASI 
     facilitates the exchange of intelligence and information 
     within CBP and between CBP and external agencies related to 
     alien trafficking and smuggling; coordinates such efforts 
     within CBP; and maintains close working relationships with 
     other offices, including the Human Smuggling and Trafficking 
     Center (HSTC), the Border Patrol, and the U.S. Coast Guard. 
     The conferees agree such efforts are consistent with the CBP 
     mission to interdict smuggling, but also coordination 
     requires active CBP participation in the multi-agency HSTC. 
     The conferees direct CBP and ICE jointly to brief the 
     Committees on Appropriations no later than 60 days after the 
     date of enactment of this Act on the role each agency plays 
     in enforcing laws against human smuggling, how those missions 
     are coordinated, and the timeline for placement of CBP 
     detailees at the HSTC.


                              construction

       The conferees have recently become aware of significant CBP 
     construction program management lapses that may adversely 
     impact deployment of new Border Patrol agents and endanger 
     the successful implementation of border security initiatives. 
     The conferees direct CBP to review and assess the staffing 
     levels committed to facilities management and oversight and 
     submit the Construction Master Plan required by Public Law 
     109-295 to the Committees on Appropriations as expeditiously 
     as possible.


                   permanent border patrol checkpoint

       The conferees understand that CBP agrees that no permanent 
     checkpoint will be planned for Southern Arizona without 
     significant and direct community involvement. Any planned 
     permanent checkpoint must: (1) be part of an overall network 
     of border security technology and infrastructure, as well as 
     an increase in personnel; (2) be designed to significantly 
     reduce the number of illegal immigrants and the amount of 
     contraband entering the U.S. through Arizona, and increase 
     the security of our nation by employing technology and 
     capabilities to detect individuals or implements associated 
     with terrorism; and (3) contain attributes that reduce to a 
     minimum the impact on the commerce and quality of life of 
     communities. Prior to the operation of a possible permanent 
     checkpoint in Southern Arizona, CBP must ensure that any 
     temporary checkpoint be administered in a manner consistent 
     with current case law, and address the checkpoint's impact on 
     residents, legitimate travelers, and public safety.

 Air and Marine Interdiction, Operations, Maintenance, and Procurement

       The conferees provide an additional $120,000,000 for Air 
     and Marine Interdiction, Operations, Maintenance, and 
     Procurement, instead of $150,000,000 as proposed by the House 
     and $75,000,000 as proposed by the Senate. Included in this 
     amount are funds to accelerate planned deployment of Northern 
     Border Air and Marine operations. This includes: 
     establishment of the final Northern Border air wing; 
     procurement of assets, such as fixed wing aircraft, 
     helicopters, unmanned aerial systems, marine and riverine 
     vessels, and other equipment; relocation of aircraft; site 
     acquisition; and the design and building of facilities. The 
     conferees direct CBP to submit an expenditure plan for the 
     use of these funds to the Committees on Appropriations no 
     later than 30 days after the date of enactment of this Act 
     and prior to the obligation of the funds.

           United States Immigration and Customs Enforcement


                         SALARIES AND EXPENSES

       The conferees provide an additional $10,000,000 for 
     Salaries and Expenses instead of $20,000,000 as proposed by 
     the Senate. The House bill contains no similar provision. Of 
     this amount, $5,000,000 is provided to create a security 
     advisory opinion review unit within the Visa Security Program 
     consistent with the Senate report. The remaining $5,000,000 
     is provided for the Human Smuggling and Trafficking Center 
     (HSTC). The conferees intend that U.S. Immigration and 
     Customs Enforcement (ICE) serve as the Department's lead at 
     the HSTC, but also direct CBP, given its border protection, 
     inspection, and interdiction missions, to fully participate 
     in the HSTC. The conferees direct ICE to submit an 
     expenditure plan for the use of the HSTC funds to the 
     Committees on Appropriations no later than 30 days after the 
     date of enactment of this Act and prior to the obligation of 
     the funds.

                 Transportation Security Administration


                           AVIATION SECURITY

       The conferees provide an additional $970,000,000 for 
     Aviation Security instead of $1,250,000,000 as proposed by 
     the House and $660,000,000 as proposed by the Senate. Within 
     this total, $815,000,000 is for the procurement and 
     installation of checked baggage explosives detection systems; 
     $45,000,000 is for the expansion of checkpoint explosives 
     detection pilot systems; and $110,000,000 is for air cargo 
     security. Funding for the procurement and installation of 
     checked baggage explosives detection systems and checkpoint 
     explosives detection pilots is available until expended. 
     Funding for air cargo security is available until September 
     30, 2009.
       The conferees direct the Transportation Security 
     Administration (TSA) to utilize funding for explosives 
     detection systems at airports that would derive significant 
     security benefits, consistent with the optimal screening 
     solutions prioritized in TSA's strategic plan for electronic 
     baggage screening. As directed by the Senate, TSA shall 
     submit a revised fiscal year 2007 explosives detection system 
     expenditure plan to the Committees on Appropriations no later 
     than 90 days after the date of enactment of this Act.
       The conferees provide $45,000,000 for the deployment and 
     pilot testing of advanced checkpoint explosives detection 
     equipment and screening technologies to determine preferred 
     operational and equipment protocols. The fiscal year 2008 
     budget request identifies a number of emerging technologies 
     that could be expedited so that airline passengers and carry-
     on baggage are screened for explosives, weapons, and other 
     threat objects by the most advanced equipment currently under 
     development. TSA has lagged behind in this area and should 
     use this funding to accelerate this work. The conferees are 
     disappointed that TSA failed to meet a January

[[Page 10100]]

     23, 2007, deadline to submit a strategic plan for deployment 
     of checkpoint technologies and direct TSA to expeditiously 
     submit that strategic plan, as directed in the joint 
     explanatory statement of managers accompanying the fiscal 
     year 2007 conference report (Report 109-699), and include 
     these additional funds as part of this effort.
       The conferees provide $110,000,000 for air cargo security. 
     This funding sets a path for all cargo carried on passenger 
     aircraft to be screened. Within the amount provided, the 
     conferees direct TSA to: (1) hire no fewer than 150 
     additional air cargo inspectors to establish a more robust 
     enforcement and compliance regime; (2) complete air cargo 
     vulnerability assessments, as described in TSA's recent 
     report on air cargo security for all Category X airports; (3) 
     expand the National Explosives Detection Canine Program by no 
     fewer than 170 additional canine teams; and (4) procure and 
     install explosives detection systems, explosives trace 
     machines, and other technologies to screen air cargo. The 
     conferees permit a portion of these funds to be used for 
     proprietary canine teams led by TSA, as proposed by the 
     Senate. In addition, the conferees direct TSA to pursue 
     canine screening methods utilized internationally, which 
     focus on air samples taken from air cargo for explosives 
     detection. Within 90 days after the date of enactment of this 
     Act, TSA shall provide an expenditure plan detailing how it 
     will utilize the $110,000,000 to increase the screening of 
     air cargo carried on passenger aircraft.


                          FEDERAL AIR MARSHALS

       The conferees provide an additional $8,000,000 for Federal 
     Air Marshals instead of $15,000,000 as proposed by the 
     Senate. The House bill contains no similar provision. Funding 
     shall be used to support higher coverage on critical flights 
     that would otherwise have had insufficient coverage. The 
     conferees direct TSA to report back within 30 days from the 
     date of enactment of this Act on how these additional funds 
     will be allocated.

                    National Protection and Programs


           INFRASTRUCTURE PROTECTION AND INFORMATION SECURITY

       The conferees provide an additional $37,000,000 for 
     Infrastructure Protection and Information Security instead of 
     $25,000,000 as proposed by the House and $18,000,000 as 
     proposed by the Senate. Of this total amount, $25,000,000 
     shall be to develop State and local interoperability plans in 
     support of the state interoperable grant program; and 
     $12,000,000 shall be to support implementation of new 
     chemical security regulations.
       As outlined in the House report, the conferees direct the 
     Office of Emergency Communications to work in conjunction 
     with the Science and Technology Office of Interoperable 
     Communications and the Federal Emergency Management Agency to 
     support the efforts of State and local governments as they 
     develop state interoperable communications plans. Within 30 
     days from the date of enactment of this Act, DHS is directed 
     to provide the Committees on Appropriations a detailed 
     expenditure plan for execution of a nationwide state 
     interoperable communications planning effort, including key 
     milestones for achievement of the decisions necessary to 
     support the Public Safety Interoperable Communications Grant 
     Program. The conferees encourage the Department to allow 
     States that do not use reallocated public safety spectrum to 
     be eligible for the Public Safety Interoperable grant funds 
     as long as their systems are compatible with those using 
     reallocated spectrum.
       The conferees provide $12,000,000 to ensure that DHS is 
     able to implement chemical facility security regulations 
     efficiently and effectively as described in the Senate 
     report.
       The conferees are concerned with the process used by the 
     Office of Cyber Security to acquire access to a facility for 
     a Secret Service-led computer forensics training program. 
     While the conferees strongly support the Department's efforts 
     to fight cyber-crime, the Department's first notification to 
     Congress of this program was via a press release announcing 
     the Secretary's ribbon cutting at the planned center. This 
     approach represents a violation of the spirit, if not the 
     letter, of section 503 of the Department of Homeland Security 
     Appropriations Act, 2007 (Public Law 109-295). Within 30 days 
     from the date of enactment of this Act, the Secretary is 
     directed to submit to the Committees on Appropriations a 
     report providing a detailed description of the source and 
     amount of funds to be used in support of the new program, the 
     original purpose of each of the funding sources, a legal 
     opinion providing the legal basis for the actions taken in 
     establishing this activity, and the process that will be used 
     in the future to ensure that Congress is informed in advance 
     of any activity that could be construed as either creating 
     new programs or making awards that do not involve an 
     appropriate competitive solicitation of participants or 
     service providers. In addition, the report shall include a 
     justification outlining why this activity is properly 
     undertaken by the Secret Service and DHS rather than the 
     Federal Bureau of Investigation and the Department of 
     Justice.

                        Office of Health Affairs

       The conferees provide $15,000,000 for the Office of Health 
     Affairs instead of $18,000,000 as proposed by the Senate. The 
     House bill contains no similar funding. Of this amount, 
     $4,000,000 is to support medical readiness, planning, and 
     other activities tasked to this Office.
       The remaining $11,000,000 is for nuclear event public 
     health assessment and planning. The Office of Health Affairs, 
     in conjunction with appropriate agencies and national labs, 
     shall: expeditiously develop plans for the response to, and 
     model the effects of, a 0.1, 1.0 and 10 kiloton nuclear 
     explosion on each tier one Urban Area Security Initiative 
     (UASI) city, where such analysis has not already been 
     completed; assess whether current response and recovery plans 
     of all levels of government provide the greatest public 
     health benefit; document what modifications and appropriate 
     practices for responding to such an event would improve 
     health outcomes; assess if identified affected distribution 
     systems would be sufficient to support the proposed response; 
     and set a strategy, in consultation with the Federal 
     Emergency Management Agency and other appropriate agencies, 
     to ensure consistent and sufficient delivery of information 
     to the public, medical community, and first responders on 
     appropriate protective actions to prepare for and respond to 
     a nuclear attack.
       The Office of Health Affairs shall provide quarterly 
     briefings to the Committees on Appropriations on the status 
     of this assessment beginning three months after the date of 
     enactment of this Act.
       In addition, of the amount made available for the 
     assessment, up to $2,000,000 is for the National Academy of 
     Sciences (NAS) to evaluate the Department's estimates of the 
     effects of a nuclear attack and the current level of 
     preparation in tier one UASI cities. NAS shall report on: 
     available healthcare capacity to treat the affected 
     population; treatments available for pertinent radiation 
     illnesses; efficacy of medical countermeasures; the likely 
     capability of the Federal, State, and local authorities to 
     deliver available medical countermeasures in a timely enough 
     way to be effective; and the overall expected benefit of 
     available countermeasures and those in the development 
     pipeline. NAS shall also assess the availability, quality, 
     and benefit of public and medical education in reducing the 
     illness and death associated with a nuclear attack. NAS shall 
     submit its report to the Committees on Appropriations within 
     18 months after the date of enactment of this Act.
       The conferees note the Department has not finalized its 
     Protective Action Guides for Radiological Dispersal Devices 
     and Improvised Nuclear Device Incidents for Federal agencies, 
     State and local governments, emergency responders, and the 
     general public. This guidance would be critical in planning 
     and responding to radiological incidents. The conferees 
     direct the Department to finalize this guidance as quickly as 
     possible.
       The conferees direct the Office of Health Affairs to submit 
     an expenditure plan prior to the obligation of any funds 
     provided under this heading. Funds are available until 
     September 30, 2008.

                  Federal Emergency Management Agency


                     MANAGEMENT AND ADMINISTRATION

       The conferees provide $25,000,000 for Management and 
     Administration instead of $25,000,000 as proposed by the 
     House for Salaries and Expenses and $20,000,000 as proposed 
     by the Senate for Administrative and Regional Operations. 
     Within the funding provided, $10,000,000 is for disaster 
     communications equipment to be placed in Federal Emergency 
     Management Agency (FEMA) regions across the country; 
     $2,500,000 is to strengthen interstate mutual aid agreements; 
     $5,000,000 is for regional strike teams; $6,000,000 is for 
     improvements for financial and information systems; $500,000 
     is for the Law Enforcement Liaison Office; $500,000 is for 
     the Disability Coordinator; and $500,000 is for the National 
     Advisory Council. The conferees include bill language 
     prohibiting the obligation of this $25,000,000 until the 
     Committees on Appropriations receive and approve an 
     expenditure plan. Such plan should be submitted within 45 
     days after the date of enactment of this Act. Funds are 
     available until September 30, 2008.
       The ``Management and Administration'' account combines the 
     former ``Administrative and Regional Operations'' and 
     ``Readiness, Mitigation, Response, and Recovery'' accounts. A 
     provision is included to transfer all funds in the 
     ``Administrative and Regional Operations'' and ``Readiness, 
     Mitigation, Response, and Recovery'' accounts into the new 
     ``Management and Administration'' account.


                          Nuclear Preparedness

       The conferees are concerned that cities have little 
     guidance available to them to better prepare their 
     populations to react in the critical moments shortly after a 
     nuclear event. The conferees direct FEMA, in conjunction with 
     the Office of Health Affairs, to report on the general status 
     and adequacy of public fallout shelters and other protective 
     measures, as appropriate, and pre-planned guidance to the 
     public in the tier one UASI cities. Further, FEMA shall 
     report on how it is coordinating with State and local 
     governments and the Department of Health and Human Services 
     for delivery of prepackaged announcements with major radio 
     and television outlets to assure immediate and helpful 
     guidance after a nuclear attack.

[[Page 10101]]




                        State and Local Programs

       The conferees provide an additional $552,500,000 for State 
     and Local Programs instead of $415,000,000 as proposed by the 
     House and $850,000,000 proposed by the Senate. Within the 
     funding provided, $190,000,000 is for port security grants 
     pursuant to the Security and Accountability For Every Port 
     Act of 2006 (Public Law 109-347); $325,000,000 is for 
     intercity rail passenger transportation, freight rail, and 
     transit security grants; $35,000,000 is for regional 
     catastrophic event planning grants and regional technical 
     assistance; and $2,500,000 is for technical assistance 
     programs.
       The conferees continue to be concerned about the 
     Department's poor track record for awarding security grants 
     on a timely basis. The additional funding provided in this 
     Act for port security and rail and mass transit security 
     grants shall be awarded by September 30, 2007. The conferees 
     direct the Department to provide potential grant recipients 
     with pending applications an opportunity to apply for these 
     additional funds.
       The conferees provide $35,000,000 for all-hazard regional 
     catastrophic event planning grants and regional technical 
     assistance as proposed by the Senate. These funds are 
     provided for grants and technical assistance to tier one UASI 
     cities and other participating governments for the purpose of 
     developing all-hazard regional catastrophic event plans and 
     preparedness. FEMA Regional Offices are directed to work with 
     the UASI areas in this effort. Plans and preparedness efforts 
     must address every risk and include logistics, response 
     (including mass evacuation and shelter-in-place), recovery, 
     public education, and business outreach. The conferees 
     include bill language prohibiting the obligation of funds for 
     regional catastrophic event planning grants and regional 
     technical assistance until the Committees on Appropriations 
     receive and approve an expenditure plan. The conferees direct 
     FEMA to provide the expenditure plan by July 1, 2007, so as 
     not to delay this important initiative. The Department shall 
     report to the Committees on Appropriations no later than 
     January 15, 2008, regarding the results of this effort.
       The conferees recognize that the majority of grant dollars 
     are spent on first responder equipment at the State and local 
     level. To be effective, it is imperative that first 
     responders are also trained to properly use and maintain the 
     equipment. Therefore, the conferees provide $2,500,000 to the 
     technical assistance program for operation and maintenance 
     training on detection and response equipment. The program 
     must be competitively awarded. Funds are available until 
     September 30, 2007.


                Emergency Management Performance Grants

       The conferees provide an additional $100,000,000 for 
     Emergency Management Performance Grants. The conferees do not 
     include bill language proposed by the Senate to provide funds 
     for expenses related to the Nationwide Plan Review.
       The conferees are concerned by the findings of the 
     Department's Plan Review, which found that emergency 
     management plans across the country are not up-to-date or 
     systematic. State and local emergency management agencies use 
     Emergency Management Performance Grants to enhance their 
     emergency management capabilities and to link efforts 
     regionally and nationwide. The conferees direct FEMA to 
     provide guidelines encouraging State and local governments to 
     address the findings identified in the Nationwide Plan 
     Review. The conferees also direct FEMA to brief the 
     Committees on Appropriations regarding the status of 
     successfully addressing the Nationwide Plan Review findings 
     no later than June 29, 2007.

           United States Citizenship and Immigration Services

       The conferees agree to provide an additional $10,000,000 
     for United States Citizenship and Immigration Services 
     instead of $30,000,000 as proposed by the Senate. The House 
     bill contains no similar provision. The conferees understand 
     that there are approximately 170,000 immigration applications 
     and petitions awaiting security checks by the Federal Bureau 
     of Investigation. These funds are provided under the terms 
     and conditions listed in the Senate report, including a 
     restriction from obligation until the Committees on 
     Appropriations receive a specific plan that describes how 
     this security check backlog will be addressed 
     comprehensively.

                         Science and Technology


           Research, Development, Acquisition, and Operations

       The conferees provide an additional $10,000,000 for 
     Research, Development, Acquisition, and Operations instead of 
     $15,000,000 as proposed by the Senate. The House bill 
     contains no similar provision. The conferees direct that this 
     funding be used for research on improved air cargo screening 
     technologies to protect aircraft from explosives and other 
     harmful materials, as discussed in the Senate report. None of 
     the funds shall be used to continue, beyond the current 
     timeframe, ongoing air cargo pilots. The benefits and 
     findings from these pilots should be made available to all 
     stakeholders as quickly as possible.

                   Domestic Nuclear Detection Office


                 Research, Development, and Operations

       The conferees provide an additional $39,000,000 for 
     Research, Development and Operations as proposed by the 
     Senate. The House bill contains no similar provision. Within 
     the funding provided, $5,000,000 is to enhance detection 
     links between seaports and railroads as authorized in Section 
     121(i) of Security and Accountability For Every Port Act of 
     2006 (Public Law 109-347); $8,000,000 is to accelerate 
     development and deployment of detection systems at 
     international rail border crossings; and $26,000,000 is for 
     development and deployment of a variety of screening 
     technologies at aviation facilities as discussed in the 
     Senate report. Funding is available until expended.


                          Systems Acquisition

       The conferees provide an additional $223,500,000 for 
     Systems Acquisition instead of $400,000,000 as proposed by 
     the House. The Senate bill contains no similar provision. 
     Funding shall be used to acquire and deploy additional 
     radiation portal monitors at all locations DHS determines 
     necessary. No funds shall be used to acquire advanced 
     spectroscopic portal monitors until the Secretary of Homeland 
     Security certifies that these systems will achieve a 
     significant increase in operational effectiveness. If the 
     Secretary is unable to certify an increase in operational 
     effectiveness, the conferees direct the Domestic Nuclear 
     Detection Office to acquire currently available radiation 
     portal monitors. Funds are available until expended.


                           General Provisions

       Section 1501.--The conferees modify a provision proposed by 
     both the House and Senate that clarifies Federal preemption 
     of State and local chemical site security regulations. The 
     conferees also modify a House provision on information 
     security standards for chemical facility vulnerability 
     information.
       Sec. 1502.--The conferees include a provision proposed by 
     the Senate that precludes the Department from using funds in 
     this Act or provided by P.L. 109-295 to carry out 
     reorganization authority. The House bill contains no similar 
     provision.
       Sec. 1503.--The conferees include a provision proposed by 
     the Senate that mandates that the Department of Homeland 
     Security require all contracts that provide award fees to 
     link such fees to successful acquisition outcomes. The House 
     bill contains no similar provision.
       The conferees do not include a provision proposed by the 
     Senate regarding the Domestic Preparedness Equipment 
     Technical Assistance Program.

                               CHAPTER 6

                        HOUSE OF REPRESENTATIVES


                         Salaries and Expenses

       The conferees agree to provide $6,437,000 for the House of 
     Representatives for business continuity and disaster 
     recovery. Inasmuch as this item relates solely to the House, 
     and in accord with long practice under which each body 
     determines its own housekeeping requirements and the other 
     concurs without intervention, the managers on the part of the 
     Senate, at the request of the managers on the part of the 
     House, have receded to the amendment of the House.

                    GOVERNMENT ACCOUNTABILITY OFFICE


                         Salaries and Expenses

       The conference agreement provides $374,000 to the 
     Government Accountability Office to remain available until 
     September 30, 2008. This is the same amount as proposed by 
     the Senate. The House bill carried no such provision.

                               CHAPTER 7

                         DEPARTMENT OF DEFENSE

       NATO Security Investment Program (NSIP) reimbursement for 
     military construction in Afghanistan.--The conferees 
     understand that military construction projects carried out in 
     Afghanistan may be eligible for reimbursement under NSIP. The 
     conferees therefore direct the Department of Defense to 
     aggressively pursue NSIP funding for military construction in 
     Afghanistan and review all future projects for NSIP 
     eligibility.

                      Military Construction, Army

       The conferees agree to provide $1,255,890,000 for Military 
     Construction, Army, instead of $1,329,240,000 as proposed by 
     the House and $1,261,390,000 as proposed by the Senate. The 
     funds are provided as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                                   Conference
                  Location                        Project description            Request           Agreement
----------------------------------------------------------------------------------------------------------------
CO Fort Carson.............................  Unit Operations Facilities...  .................         18,000,000
GA: Fort Stewart...........................  Unit Operations Facilities...  .................         30,500,000
KS: Fort Riley.............................  Site Prep, Accelerated BCT...          1,500,000          1,500,000

[[Page 10102]]

 
KS: Fort Riley.............................  Unit Operations Facilities...  .................         24,000,000
KY: Fort Campbell..........................  Unit Operations Facilities...  .................         18,000,000
MD: Fort Meade.............................  Military Intelligence Admin/          42,000,000         42,000,000
                                              Ops Center.
MO: Fort Leonard Wood......................  Trainee Barracks Complex.....  .................         77,100,000
NY: Fort Drum..............................  Unit Operations Facilities...  .................         14,600,000
NC: Fort Bragg.............................  Unit Operations Facilities...  .................         11,800,000
TX: Fort Bliss.............................  Unit Operations Facilities...  .................         38,000,000
TX: Fort Hood..............................  Unit Operations Facilities...  .................  .................
WW: Unspecified............................  Growing the Force Projects,          250,000,000
                                              Various Locs.
Afghanistan: Bagram AB.....................  Bulk Fuel Storage, Phase 1...          9,500,000          9,500,000
Afghanistan: Bagram AB.....................  Bulk Fuel Storage, Phase 2...         25,000,000         25,000,000
Afghanistan: Bagram AB.....................  CMU Barracks.................         17,000,000         17,000,000
Afghanistan: Bagram AB.....................  Communications System                  8,200,000          8,200,000
                                              Facility.
Afghanistan: Bagram AB.....................  Electrical Distribution/              17,500,000         17,500,000
                                              Utility Chase.
Afghanistan: Bagram AB.....................  New Roads....................         26,000,000
Afghanistan: Bagram AB.....................  Perimeter Fence and Guard              8,900,000          8,900,000
                                              Towers.
Afghanistan: Bagram AB.....................  RSOI Surge Area..............         14,000,000         14,000,000
Afghanistan: Bagram AB.....................  Storm Water Collection.......          5,600,000          5,600,000
Afghanistan: Bagram AB.....................  Water Treatment and                   22,000,000         22,000,000
                                              Distribution.
Afghanistan: Bagram AB.....................  WWTP and Sewer Collection....         16,500,000         16,500,000
Afghanistan: Various Locations.............  Road--Freedom/Asabalad to             17,500,000         17,500,000
                                              Blessing.
Afghanistan: Various Locations.............  Road--Naray to Kamdash.......         27,000,000         27,000,000
Afghanistan: Various Locations.............  Road--Asmar to Naray.........          9,700,000          9,700,000
Afghanistan: Various Locations.............  Road--Jalalabad to Shali Kot.         15,000,000         15,000,000
Afghanistan: Various Locations.............  Road--South of Jalalabad.....          6,800,000          6,800,000
Afghanistan: Various Locations.............  Road--Through Sharana........          7,300,000          7,300,000
Afghanistan: Various Locations.............  Road--West of Orgun-E........          7,300,000          7,300,000
Afghanistan: Various Locations.............  Road--South of Sharana.......         33,000,000         33,000,000
Afghanistan: Various Locations.............  Road--Khowst to BSP9.........          7,900,000          7,900,000
Afghanistan: Various Locations.............  Road--FB Chamkani to Pakistan         13,000,000         13,000,000
                                              Border.
Afghanistan: Various Locations.............  Road--West of Khowst.........          9,700,000          9,700,000
Afghanistan: Various Locations.............  Road--North of Waza Kwah.....         36,000,000         36,000,000
Afghanistan: Various Locations.............  Road--Qalat to Mazan.........         30,000,000         30,000,000
Afghanistan: Various Locations.............  Road--Qalat to Shinkay.......         57,000,000         57,000,000
Afghanistan: Various Locations.............  Road--Tarin Kowt to Oshay....         34,000,000         34,000,000
Afghanistan: Various Locations.............  Road--Crossings 1 to 2 (BAF            3,550,000          3,550,000
                                              to Kabul).
Afghanistan: Various Locations.............  Road--Crossings 2 to 3 (BAF              790,000            790,000
                                              to Kabul).
Afghanistan: Various Locations.............  Road--Crossing 3 to 5KM (BAF           3,550,000          3,550,000
                                              to Kabul).
Afghanistan: Various Locations.............  Dry Stream Bed Crossing 1              8,300,000          8,300,000
                                              (BAF to Kabul).
Afghanistan: Various Locations.............  Dry Stream Bed Crossing 2              8,300,000          8,300,000
                                              (BAF to Kabul).
Afghanistan: Various Locations.............  Dry Stream Bed Crossing 3             34,000,000         34,000,000
                                              (BAF to Kabul).
Iraq: AI Asad..............................  Detainee Interrogation                 5,500,000
                                              Facility.
Iraq: AI Asad..............................  Electrical Infrastructure             14,600,000         14,600,000
                                              Upgrades.
Iraq: AI Asad..............................  Heavy Aircraft Apron.........         14,400,000         14,400,000
Iraq: AI Asad..............................  Runway With Shelters.........         13,600,000         13,600,000
Iraq: AI Asad..............................  Transient Aircraft Apron.....          4,150,000          4,150,000
Iraq: AI Asad..............................  Water Storage Tanks..........         14,000,000         14,000,000
Iraq: Camp Anaconda........................  CJSOAC Operations Center.....          3,450,000          3,450,000
Iraq: Camp Anaconda........................  North Entry Control Point....          7,400,000          7,400,000
Iraq: Camp Anaconda........................  POL Tanks....................          9,900,000          9,900,000
Iraq: Camp Anaconda........................  South Entry Control Point....          7,500,000          7,500,000
Iraq: Camp Anaconda........................  Truck Lane Access Road.......          2,600,000          2,600,000
Iraq: Camp Anaconda........................  Water Storage Tanks..........         10,000,000         10,000,000
Iraq: Camp Anaconda........................  Water Wells..................          2,200,000          2,200,000
Iraq: Various Locations....................  Facilities Replacement.......         96,000,000
Iraq: AI Asad..............................  Facilities Replacement.......  .................         23,000,000
Iraq: Camp Adder...........................  Facilities Replacement.......  .................          1,800,000
Iraq: Camp Anaconda........................  Facilities Replacement.......  .................          7,000,000
Iraq: Camp Speicher........................  Facilities Replacement.......  .................         19,000,000
Iraq: Oayyarah West........................  Facilities Replacement.......  .................          1,800,000
Iraq: Scania...............................  Facilities Replacement.......  .................          2,400,000
Iraq: Victory Base.........................  Facilities Replacement.......  .................         33,000,000
Iraq: Various Locations....................  Facilities Replacement--AT/FP  .................          8,000,000
Iraq: Various Locations....................  Life Support Areas...........         75,000,000
Iraq: AI Asad..............................  Life Support Areas...........  .................         16,500,000
Iraq: Camp Adder...........................  Life Support Areas...........  .................          8,500,000
Iraq: Camp Anaconda........................  Life Support Areas...........  .................          8,500,000
Iraq: Camp Speicher........................  Life Support Areas...........  .................          8,500,000
Iraq: Victory Base.........................  Life Support Areas...........  .................         33,000,000
Worldwide: Unspecified.....................  Planning and Design (Growing         151,700,000        151,700,000
                                              the Force).
Worldwide: Unspecified.....................  Planning and Design (GWOT)...         23,900,000         22,000,000
                                                                           -------------------------------------
    Total..................................  .............................      1,289,290,000      1,255,890,000
----------------------------------------------------------------------------------------------------------------

       Coordination of military road construction in 
     Afghanistan.--The conferees agree to include a provision, as 
     proposed by the House, to prohibit the obligation or 
     expenditure of $369,690,000 in funds until the Secretary of 
     Defense submits a detailed report on the coordination of 
     military road construction in Afghanistan with NATO and 
     coalition nations. The Senate bill contained no similar 
     provision.
       Growing the Force, Army.--The conferees agree to provide 
     $401,700,000 for construction and planning and design efforts 
     in support of the Army's proposed permanent end-strength 
     increase of up to 65,000 soldiers. The conferees are 
     concerned, however, about the lack of an overall plan to 
     station and accommodate these increases with the necessary 
     facilities. The conferees therefore agree to include language 
     that prohibits the obligation and expenditure of these funds 
     until the Secretary of Defense submits a Grow the Force 
     Stationing Plan that includes the following for the entire 
     65,000-soldier increase: the new units to be created and the 
     number of soldiers in each such unit; the specific increases 
     in the number of soldiers to existing units; the installation 
     where each new unit or augmented unit will be located; the 
     estimated dates of initial operational capability and full 
     operational capability of each new unit; the types of 
     temporary and permanent facilities required (including family 
     housing) and the estimated cost; and any other pertinent 
     information. This report also shall provide the same 
     information, where appropriate, for the proposed increase of 
     8,200 personnel to the Army National Guard and the proposed 
     increase of 1,000 personnel to the Army Reserve.
       Permanent bases in Iraq.--The conferees agree to include a 
     provision, as proposed by the Senate, to prohibit the 
     obligation or expenditure of $274,800,000 in funds until the 
     Secretary of Defense certifies that none of these funds are 
     to be used for the permanent basing of U.S. military 
     personnel in Iraq. The House bill contained no similar 
     provision.

              Military Construction, Navy and Marine Corps

       The conferees agree to provide $370,990,000 for Military 
     Construction, Navy and Marine Corps, instead of $389,300,000 
     as proposed by the House and $347,890,000 as proposed by the 
     Senate. The funds are provided as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                                   Conference
                  Location                        Project description            Request           Agreement
----------------------------------------------------------------------------------------------------------------
AZ: MCAS Yuma..............................  Grow the Force Interim                        --          1,200,000
                                              Facilities Site Prep.
CA: MCAS Miramar...........................  Grow the Force Interim                        --          4,800,000
                                              Facilities Site Prep.
CA: Camp Pendleton.........................  Grow the Force Interim                        --         39,730,000
                                              Facilities Site Prep.

[[Page 10103]]

 
CA: Twentynine Palms.......................  Grow the Force Interim                        --         27,340,000
                                              Facilities Site Prep.
HI: MCB Hawaii.............................  Grow the Force Interim                        --          2,170,000
                                              Facilities Site Prep.
NC: Camp Lejeune...........................  3/9 Maintenance/Operations            41,490,000         41,490,000
                                              Complex.
NC: Camp Lejeune...........................  BEO, Hadnot Point............         40,560,000         40,560,000
NC: Camp Lejeune...........................  EOD Building FC292 Addition..          2,570,000          2,570,000
NC: Camp Lejeune...........................  Mess Hall....................         16,100,000         16,100,000
NC: Camp Lejeune...........................  MP Company Operations Complex          5,800,000          5,800,000
NC: Camp Lejeune...........................  Regimental Headquarters                8,600,000          8,600,000
                                              Addition.
NC: Camp Lejeune...........................  Truck Company Maintenance/Ops          9,150,000          9,150,000
                                              Complex.
NC: Camp Lejeune...........................  Grow the Force Interim                        --         50,660,000
                                              Facilities Site Prep.
NC: MCAS Cherry Point......................  Grow the Force Interim                        --         27,050,000
                                              Facilities Site Prep.
NC: MCAS New River.........................  Grow the Force Interim                        --            850,000
                                              Facilities Site Prep.
Djibouti: Camp Lemonier....................  Electrical Power Plant.......         17,990,000         17,990,000
Djibouti: Camp Lemonier....................  Wastewater Treatment.........         19,700,000         19,700,000
Djibouti: Camp Lemonier....................  Water Production.............         18,310,000                 --
Djibouti: Camp Lemonier....................  Water Storage................          5,630,000          5,630,000
Worldwide: Unspecified.....................  Unspecified Construction.....        153,800,000                 --
Worldwide: Unspecified.....................  Planning and Design (GWOT)...          4,600,000          3,400,000
Worldwide: Unspecified.....................  Planning and Design (Growing          46,200,000         46,200,000
                                              the Force).
                                                                           -------------------------------------
    Total..................................  .............................        390,500,000        390,500,000
----------------------------------------------------------------------------------------------------------------

       Growing the Force, Marine Corps.--The conferees agree to 
     provide $324,270,000 for construction and planning and design 
     efforts in support of the Marine Corps' proposed permanent 
     end-strength increase of up to 27,000 marines. The conferees 
     are concerned, however, about the lack of an overall plan to 
     station and accommodate these increases with the necessary 
     facilities. The conferees therefore agree to include language 
     that prohibits the obligation and expenditure of these funds 
     until the Secretary of Defense submits a Grow the Force 
     Stationing Plan that includes the following for the entire 
     27,000-marine increase: the new units to be created and the 
     number of marines in each such unit; the specific increases 
     in the number of marines to existing units; the installations 
     where each new unit or augmented unit will be located; the 
     estimated dates of initial operational capability and full 
     operational capability of each new unit; the types of 
     temporary and permanent facilities required (including family 
     housing) and the estimated cost; and any other pertinent 
     information.

                    Military Construction, Air Force

       The conferees agree to provide $43,300,000 for Military 
     Construction, Air Force, instead of $60,200,000 as proposed 
     by the House and $34,700,000 as proposed by the Senate. The 
     funds are provided as follows:

------------------------------------------------------------------------
                                   Project                    Conference
           Location              description      Request     Agreement
------------------------------------------------------------------------
Afghanistan: Bagram AB.......  Hot Cargo Pad      7,300,000    7,300,000
                                and Access
                                Road.
Afghanistan: Bagram AB.......  Parallel          49,000,000   33,000,000
                                Taxiway.
Worldwide: Unspecified.......  Planning and       3,900,000    3,000,000
                                Design.
                                               -------------------------
    Total....................  ...............   60,200,000   43,300,000
------------------------------------------------------------------------

       Parallel Taxiway, Bagram, Afghanistan.--The conferees agree 
     to provide $33,000,000 to extend the existing parallel 
     taxiway at Bagram, rather than the $49,000,000 requested to 
     build a new taxiway. One of the justifications for this 
     project provided by the Deparment of Defense is to allow for 
     parking expansion to accommodate wide-body aircraft. The 
     conferees note, however, that the Administration's March 9 
     revisions deleted the Strategic Aircraft Ramp from the 
     original request, indicating that it no longer considers such 
     expansion to be a priority.

               Base Realignment and Closure Account 2005

       The conferees agree to provide $3,136,802,000 for the Base 
     Realignment and Closure Account 2005 as proposed by both the 
     House and the Senate.

                    General Provisions--This Chapter

       The conferees agree to include a modified general provision 
     related to the Walter Reed Army Medical Center.
       The conferees agree to include a general provision proposed 
     by the Senate related to the Armed Forces Institute of 
     Pathology. The House bill contained no similar provision.

                               CHAPTER 8

                 DEPARTMENT OF STATE AND RELATED AGENCY

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs


                    Diplomatic and Consular Programs

                     (including transfer of funds)

       The conference agreement includes $870,658,000 for 
     Diplomatic and Comular Programs, instead of $966,954,000 as 
     proposed by the House and $815,796,000 as proposed by the 
     Senate. Within the total under this heading, $96,500,000 is 
     for World Wide Security Upgrades and is available until 
     expended, instead of $102,155,000 as proposed by the House 
     and $70,000,000 as proposed by the Senate.
       The conference agreement includes the transfer of $258,000 
     to the United States Commission on International Religious 
     Freedom from within the funds provided under the heading as 
     proposed by the House. The Senate included no similar 
     provision.
       The conference agreement includes $20,000,000 under this 
     heading for public diplomacy programs, as proposed by the 
     Senate. The House included the same amount for this purpose, 
     but did not include the language in the bill.
       The conferees recognize that public diplomacy activities, 
     when effectively implemented, engage and inform foreign 
     audiences, communicate and advocate policies of the United 
     States, and convey shared interests and values across the 
     globe. These activities are important in building the 
     goodwill and cooperation that is necessary for the United 
     States to achieve our foreign policy and national security 
     goals. The conferees believe that although there has been 
     increased attention on public diplomacy efforts since the 
     terrorist attacks of September 11, 2001, a more focused 
     interagency effort is necessary. Therefore, the conferees 
     direct that the Secretary of State develop a comprehensive, 
     interagency strategy for public diplomacy programming in 
     predominantly Muslim countries, as proposed by the Senate, 
     including programming efforts via various media. The 
     conferees expect the plan to include planned expenditures, by 
     category, of funding available in fiscal year 2007 for public 
     diplomacy activities, as proposed by the House. The conferees 
     direct the report to be provided to the Committees on 
     Appropriations not later than 45 days after the enactment of 
     this Act.
       The conference agreement includes $750,000,000 for 
     Diplomatic and Consular Programs relating to Iraq, instead of 
     $790,641,000 as proposed by the House and $723,896,000 as 
     proposed by the Senate. The conferees understand that a 
     Memorandum of Agreement between the Departments of State and 
     Defense was finalized on February 27, 2007, specifying 
     operational requirements, authorities, and responsibilities 
     shared between the U.S. Mission in Iraq and the Multi-
     National Forces in Iraq. The conferees recognize that the 
     assumptions on which the request was based may have changed. 
     Therefore, the conference agreement includes bill language 
     withholding from obligation twenty percent of the amount made 
     available under this heading for Iraq operations until the 
     Committes on Appropriations receive and approve a detailed 
     expenditure plan of funding for such operations, similar to 
     language proposed by the House. The Senate bill included no 
     similar provision.
       The fiscal year 2005 Emergency Supplemental Appropriations 
     Act (P.L. 109-13) included $592,000,000 for the construction 
     of a new embassy compound in Baghdad, Iraq, based on a number 
     of 1,157 desks and 619 beds. The conferees are dismayed to 
     learn that the Department of State continues to plan for an 
     increase in staffing of thirty percent in desks and an 
     increase of ninety-six percent in beds above the amount 
     approved by the Congress. Therefore, the conferees direct the 
     Secretary of State, in consultation with the U.S. Chief of 
     Mission in Iraq, to undertake a review of the current 
     personnel plan for the Mission in Iraq and provide 
     justification for the deviation from the 2005-approved plan 
     prior to obligation of funding under this heading. The 
     conferees expect a report on the new embassy compound 
     personnel requirements in light of the available office 
     space, including a housing plan from the Overseas Buildings 
     Operations Bureau, not later than 45 days of enactment of 
     this Act.
       The conference agreement does not include language under 
     this heading included in the House bill providing up to 
     $50,000,000 to establish and maintain a civilian reserve 
     corps. Instead, the conference agreement includes a modified 
     general provision similar to language in section 1712 of the 
     Senate bill.
       The conference agreement includes a provision directing the 
     Office of Management and Budget to apportion $15,000,000 
     appropriated in the fiscal year 2006 Emergency Supplemental 
     Appropriations Act (P.L. 109-148) for Emergencies in the 
     Diplomatic and Consular Service funding, as proposed by the

[[Page 10104]]

     Senate. The House included no similar provision.
       The conference agreement includes a provision similar to 
     that proposed by the Senate authorizing the transfer of up to 
     $20,000,000 from funds made available under this heading to 
     the Emergencies in the Diplomatic and Consular Service 
     account only for the payment of terrorism rewards. The House 
     bill included no similar provision.
       The conferees concur with language included in the House 
     report denying funds requested for salaries and allowances 
     for new domestic staff positions and to lease additional 
     space.
       Funds under this heading are provided on an emergency 
     basis.
       The conference agreement allocates funding as follows:

                                        DIPLOMATIC AND CONSULAR PROGRAMS
                                                 (In thousands)
----------------------------------------------------------------------------------------------------------------
                           Account                              Request       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Afghanistan.................................................      $47,155      $82,155      $55,000      $79,000
World Wide Security Upgrades (non-add)......................       47,155       82,155       55,000       79,000
Iraq........................................................      823,941      790,641      723,896      750,000
Sudan.......................................................       21,900       21,900       16,900       19,400
World Wide Security Upgrades (non-add)......................       20,000       20,000       15,000       17,500
Public Diplomacy............................................       20,000       20,000       20,000       20,000
Bureau of Intelligence and Research.........................            0        2,000            0        2,000
U.S. Commission on International Religious Freedom..........            0          258            0          258
Civilian Reserve Corps (up to authority)\1\.................            0       50,000     [50,000]     [50,000]
                                                             ---------------------------------------------------
    Total--Diplomatic and Consular Programs.................      912,996      966,954      815,796     870,658
----------------------------------------------------------------------------------------------------------------
\1\Note: Numbers in brackets are ``non-adds''.

                    OFFICE OF THE INSPECTOR GENERAL

                     (INCLUDING TRANSFER OF FUNDS)

       The conference agreement includes $36,500,000 for the 
     Office of the Inspector General as proposed by the Senate, 
     instead of $46,800,000 as proposed by the House. Within the 
     amount provided under this heading, $35,000,000 is for a 
     transfer to the Special Inspector General for Iraq 
     Reconstruction (SIGIR) to conduct oversight work on 
     reconstruction projects in Iraq, $1,300,000 is for the 
     Department of State Inspector General's oversight work 
     related to operations in Iraq, and $200,000 is for the 
     Department of State Inspector General's oversight work 
     related to operations in Afghanistan.
       The conferees direct the SIGIR to report to the Committees 
     on Appropriations not later than 90 days of enactment of this 
     Act on the number of personnel, contract services, and 
     budgetary needs of SIGIR at the time of the report and the 
     projected operational requirements for the remainder of 
     fiscal year 2007 and fiscal year 2008. The conferees intend 
     that the report specifically address the personnel and 
     resource requirements of section 2 of P.L. 109-440. The SIGIR 
     shall inform the Committees on Appropriations regarding the 
     enactment of any legislation subsequent to the submission of 
     the report which imposes additional oversight 
     responsibilities on SIGIR or which otherwise affects its 
     operational requirements.
       Funds under this heading are provided on an emergency 
     basis.


               EDUCATIONAL AND CULTURAL EXCHANGE PROGRAMS

       The conference agreement includes $20,000,000 for 
     Educational and Cultural Exchange Programs as proposed by the 
     House, instead of $10,000,000 as proposed by the Senate.
       The conferees concur with language in the Senate report 
     regarding support for a pilot program, which would create a 
     two-way exchange component of the Youth Exchange and Study 
     program.
       Funds under this heading are provided on an emergency 
     basis.

                      International Organizations


              CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS

       The conference agreement includes $50,000,000 for 
     Contributions to International Organizations, instead of 
     $59,000,000 as proposed by the Senate. The House bill 
     included no similar provision.
       These funds are intended to pay arrears to organizations 
     that are involved in global efforts to combat international 
     terrorism and to prevent the spread of avian influenza.
       Funds under this heading are provided on an emergency 
     basis.


        contributions for international peacekeeping activities

       The conference agreement provides $288,000,000 for assessed 
     costs of U.N. peacekeeping operations as proposed by the 
     House instead of $200,000,000 as proposed by the Senate. 
     Within the total provided under this heading, $184,000,000 is 
     for the U.N. Interim Force in Lebanon, $16,000,000 is for the 
     U.N. Mission in Timor Leste, and $88,000,000 is intended for 
     a potential U.N. mission in Chad, as proposed by the House. 
     The Senate bill included funding for Chad under the 
     Peacekeeping Operations account.
       The conferees direct that if funds are not obligated for a 
     U.N. mission in Chad by August 15, 2007, the Department of 
     State should consult with the Committees on Appropriations on 
     the funding needs for other priority missions within the 
     Contributions for International Peacekeeping Activities 
     account.
       Funds under this heading are provided on an emergency 
     basis.

                             RELATED AGENCY

                    Broadcasting Board of Governors


                 international broadcasting operations

       The conference agreement includes $10,000,000 for 
     International Broadcasting Operations as proposed by the 
     House and the Senate.
       Funds under this heading are provided on an emergency 
     basis.

                     BILATERAL ECONOMIC ASSISTANCE

           United States Agency for International Development

                  Funds Appropriated to the President


                child survival and health programs fund

                     (Including Transfer of Funds)

       The conference agreement includes $161,000,000 for the 
     Child Survival and Health Programs Fund account, as proposed 
     by the House and the Senate.
       The conference agreement includes language, similar to that 
     proposed by the Senate, providing authority to the President 
     to use funding under the Millennium Challenge Corporation and 
     Global HIV/AIDS Initiative accounts to combat an avian 
     influenza pandemic, if he determines that the human-to-human 
     transmission of the avian influenza virus is efficient and 
     sustained, and is spreading internationally. The conferees 
     note that this is the highest threat level of the World 
     Health Organization's Global Influenza Preparedness Plan. The 
     conferees expect the Office of Management and Budget to 
     request reimbursement of any funds used from the Millennium 
     Challenge Corporation and Global HIV/AIDS Initiative accounts 
     in the event the President exercises this authority.
       The conferees endorse House report language requiring a 
     report on planned expenditures not later than 45 days of 
     enactment of this Act.
       Funds under this heading are provided on an emergency 
     basis.


              international disaster and famine assistance

       The conference agreement includes $165,000,000 for 
     International Disaster and Famine Assistance, instead of 
     $135,000,000 as proposed by the House and $187,000,000 as 
     proposed by the Senate.
       Within the total provided under this heading, not less than 
     $45,000,000 is for Iraq, not less than $44,000,000 is for 
     Sudan, not less than $20,000,000 is for Somalia, and not less 
     than $16,000,000 is for assistance for internally displaced 
     persons in and near Kabul, Afghanistan. The remaining 
     $40,000,000 is included for unmet or unforeseen humanitarian 
     assistance requirements in countries such as the Central 
     African Republic, Chad, the Democratic Republic of the Congo, 
     and Uganda.
       Funds under this heading are provided on an emergency 
     basis.


   operating expenses of the united states agency for international 
                              development

       The conference agreement includes $8,700,000 for operating 
     expenses of the United States Agency for International 
     Development (USAID), instead of $10,700,000 as proposed by 
     the House and $5,700,000 as proposed by the Senate. The 
     conferees provide additional funding for security and other 
     operating costs associated with USAID personnel in 
     Afghanistan.
       Funds under this heading are provided on an emergency 
     basis.


   operating expenses of the united states agency for international 
                              development

                      Office of inspector general

       The conference agreement includes $3,500,000 for operating 
     expenses of the USAID Office of Inspector General as proposed 
     by the House instead of $4,000,000 as proposed by the Senate. 
     The conferees intend that the additional funding is for 
     expenses associated with oversight of the expanded programs 
     in Afghanistan and Iraq.
       Funds under this heading are provided on an emergency 
     basis.

[[Page 10105]]



                  Other Bilateral Economic Assistance


                         ECONOMIC SUPPORT FUND

       The conference agreement includes $2,649,300,000 for 
     Economic Support Fund, instead of $2,953,000,000 as proposed 
     by the House and $2,602,200,000 as proposed by the Senate.
       The conference agreement includes $1,574,000,000 for Iraq 
     under this heading, instead of $1,887,000,000 as proposed by 
     the House and $1,524,000,000 as proposed by the Senate.
       Of the amounts provided for Iraq, the conferees include 
     $57,400,000 for economic and social development programs in 
     areas of conflict in Iraq, and intend these funds to be used 
     to counter extremist elements in that country. The conferees 
     provide the U.S. Chief of Mission in Iraq with the 
     responsibility for policy decisions and justification for the 
     use of these funds. The conferees do not support the 
     Department of State proposal to provide assistance directly 
     to Iraqi political parties, as contained in the budget 
     request justification materials, and note that these funds 
     are in lieu of those requested for the Political 
     Participation Fund and the National Institutions Fund.
       The conference agreement includes not less than $95,000,000 
     for the Community Action Program, instead of $75,000,000 as 
     proposed by the House and $100,000,000 as proposed by the 
     Senate. Of the funds provided for the Community Action 
     Program under this heading, the conferees instruct that not 
     less than $5,000,000 be provided for the Marla Ruzicka Iraqi 
     War Victims Fund as proposed by the Senate. The House did not 
     include a similar provision.
       The conferees concur with language in the House report 
     requiring a report on the ethnic and geographic distribution 
     of U.S. assistance programs in Iraq, specifically to the 
     Nineveh Plain region.
       The conference agreement includes $737,000,000 for 
     assistance for Afghanistan, instead of $743,000,000 as 
     proposed by the House and $686,000,000 as proposed by the 
     Senate. Of the funds provided for Afghanistan, the conference 
     agreement provides $10,000,000 for the Afghan Civilian 
     Assistance Program as proposed by the Senate. The House 
     included no similar provision.
       The conference agreement provides $295,000,000 for 
     assistance for Lebanon, instead of $300,000,000 as proposed 
     by the House and $265,000,000 as proposed by the Senate. The 
     conferees note that language establishing conditions on 
     assistance for Lebanon is included under the general 
     provisions for this chapter.
       The conference agreement includes $3,000,000 for 
     environmental remediation and health activities in Vietnam, 
     instead of $3,200,000 as proposed by the Senate. The House 
     did not include a similar provision. The conferees endorse 
     language in the Senate report regarding this matter, and 
     stipulate that prior to the obligation of these funds the 
     Committees on Appropriations be consulted on the planned use 
     of the funds. The conferees recommend that these funds be 
     matched, to the maximum extent possible, with contributions 
     from other public and private sources.
       The conference agreement includes $2,000,000 for assistance 
     for Uganda as proposed by the Senate. The House did not 
     include a similar provision. The conferees endorse language 
     in the Senate report regarding this matter, and stipulate 
     that prior to the obligation of these funds the Committees on 
     Appropriations be consulted on the planned use of the funds.
       The conference agreement includes $5,000,000 for assistance 
     for Nepal, instead of $6,000,000 as proposed by the Senate. 
     The House did not include a similar provision. The conferees 
     intend these funds be used to support elections and for 
     demobilization and reintegration of former combatants. The 
     conferees endorse language in the Senate report regarding 
     this matter, and stipulate that prior to the obligation of 
     these funds the Committees on Appropriations be consulted on 
     the planned use of the funds.
       The conference agreement includes $5,000,000 for typhoon 
     reconstruction assistance for the Philippines, instead of 
     $6,000,000 as proposed by the Senate. The House did not 
     include a similar provision.
       The conference agreement includes $10,300,000 for 
     assistance for Jordan under this heading. The conferees 
     intend these funds to be used to improve basic education, 
     health, water and sanitation services in Jordanian 
     communities that have experienced a significant influx of 
     Iraqi refugees.
       The conference agreement does not provide $110,000,000 for 
     Pakistan under this heading, as proposed by the Senate. The 
     House did not include a similar provision.
       Funds under this heading are provided on an emergency 
     basis.
       The conference agreement allocates funding as follows:

                                              ECONOMIC SUPPORT FUND
----------------------------------------------------------------------------------------------------------------
                    Account  ($ in thousands)                       Request      House      Senate    Conference
----------------------------------------------------------------------------------------------------------------
Iraq:
Security:
Provincial Reconstruction Teams (PRTs)..........................     720,000     620,000     660,000     620,000
Community Action Program (CAP)..................................      50,000      75,000     100,000      95,000
    Marla Ruzicka Iraqi War Victims Fund........................           0           0       5,000       5,000
Community Stabilization Program (CSP)...........................     384,000     354,000     384,000     354,000
Local Governance Program........................................     100,000     100,000      90,000      90,000
    Subtotal Security...........................................   1,254,000   1,149,000   1,234,000   1,159,000
Economic:
Private Sector Agribusiness Development.........................      75,000      75,000      70,000      70,000
Strengthen Financial Markets....................................      12,500      12,500      10,000      10,000
Financial Market Development....................................      12,500      12,500      10,000      10,000
Targeted Development Programs...................................          --          --          --      57,400
    Subtotal Economic...........................................     100,000     100,000      90,000     147,400
Political:
National Capacity Development...................................     180,000     160,000     140,000     140,000
Policy, Subsidy, Legal and Regulatory Reform....................     110,000      90,000      60,000      60,000
Democracy.......................................................     428,000     388,000          --          --
Civil Society Development.......................................          --          --          --      67,600
    Subtotal Political..........................................     718,000     638,000     200,000     267,600
Provided under Democracy Fund...................................          --          --   [385,000]   [250,000]
                                                                 -----------------------------------------------
    Subtotal--Iraq ESF..........................................   2,072,000   1,887,000   1,524,000   1,574,000
Afghanistan:
Provincial Reconstruction Teams (PRTs)..........................     117,000     217,000     144,000     174,000
Rural Development...............................................     120,000     160,000     125,000     155,000
Agriculture.....................................................      13,000      13,000      25,000      19,000
Governance Capacity Building....................................      21,000      21,000    [25,000]      25,000
New Power Generation Construction...............................      40,000      40,000      40,000      40,000
Rural Road Construction.........................................     342,000     292,000     342,000     314,000
Civilian Assistance Program.....................................          --          --      10,000      10,000
                                                                 -----------------------------------------------
    Subtotal--Afghanistan ESF...................................     653,000     743,000     686,000     737,000
Lebanon:
Budget Support..................................................     250,000     250,000     250,000     250,000
Project Assistance..............................................      50,000      50,000      15,000      45,000
Provided under Democracy Fund...................................          --          --    [35,000]     [5,000]
                                                                 -----------------------------------------------
    Subtotal--Lebanon ESF.......................................     300,000     300,000     265,000     295,000
Sierra Leone Special Court......................................          --       3,000          --       3,000
Jordan:
Basic Education and Health Activities...........................          --          --          --      10,300
Permissive Transfer from Iraq PRT Funding (non-add).............          --          --   (100,000)          --
                                                                 -----------------------------------------------
    Subtotal--Jordan ESF........................................          --          --          --      10,300
Nepal Elections and Peace Process...............................          --          --       6,000       5,000
Democratic Republic of the Congo Governance and Peace Process...          --      15,000          --      15,000
Liberian Presidential Personal Security.........................          --       5,000          --         \1\
Uganda Peace Process............................................          --          --       2,000       2,000
Vietnam Environment and Health Programs.........................          --          --       3,200       3,000
Philippines Reconstruction......................................          --          --       6,000       5,000
                                                                 ===============================================
        Total--ESF..............................................   3,135,000   2,953,000   2,602,200   2,649,300
----------------------------------------------------------------------------------------------------------------
\1\Funding for this purpose is included under the Nonproliferation, Anti-Terrorism, Demining and Related
  Programs account.


[[Page 10106]]

          ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC STATES

       The conference agreement includes $229,000,000 for 
     Assistance for Eastern Europe and the Baltic States for 
     assistance for Kosovo, instead of $239,000,000 as proposed by 
     the House and $214,000,000 as proposed by the Senate. The 
     conferees endorse the reporting requirement included in the 
     House report regarding the proposed pledge of funds.
       Funds under this heading are provided on an emergency 
     basis.

                          DEPARTMENT OF STATE

                             Democracy Fund

       The conference agreement provides $260,000,000 for 
     Democracy Fund, instead of $465,000,000 as proposed by the 
     Senate. The House provided funding for this purpose under the 
     requested accounts. The conference agreement includes the 
     following amounts in the accounts requested: $125,000,000 for 
     assistance for Iraq; $25,000,000 for assistance for 
     Afghanistan; $15,000,000 for assistance for Kosovo; and 
     $30,000,000 for assistance for Lebanon.
       The conference agreement provides a total of $250,000,000 
     for democracy, human rights and rule of law programs in Iraq, 
     of which $190,000,000 is for the Human Rights and Democracy 
     Fund (HRDF) of the Department of State's Bureau of Democracy, 
     Human Rights, and Labor, and $60,000,000 is for USAID. The 
     conferees direct that funds included under this heading for 
     assistance for Lebanon be made available to the HRDF, and 
     that of the funds included for media and democracy programs 
     in Somalia, $3,000,000 be made available to USAID, and 
     $2,000,000 to the HRDF.
       The conference agreement includes language, similar to that 
     proposed by the Senate, requiring the Secretary of State to 
     submit a report to the Committees on Appropriations not later 
     than 60 days after enactment of this Act describing a 
     comprehensive, long-term strategy, with goals and expected 
     results, for strengthening and advancing democracy in Iraq. 
     This report should be developed in consultation with USAID, 
     and should include the anticipated funding required for 
     successful implementation of the strategy in subsequent 
     fiscal years.
       The conferees endorse language in the Senate report 
     regarding the conduct of appropriate rule of law programs 
     concurrently with activities to professionalize the Afghan 
     National Police.
       Funds under this heading are provided on an emergency 
     basis.
       The conference agreement allocates funding as follows:

                                                 DEMOCRACY FUND
----------------------------------------------------------------------------------------------------------------
                  Account ($ in thousands)                      Request       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Afghanistan.................................................     [21,000]          \1\       25,000          \2\
Iraq
Continuation of Democracy Programs..........................    [181,600]          \1\      200,000      200,000
Political Participation Fund................................     [42,800]          \1\       19,400          \2\
National Institutions Fund (including Parliament)...........     [76,000]          \1\       38,000          \2\
Human Rights................................................     [40,000]          \1\       40,000       40,000
Women's Programs............................................     [10,000]          \1\       10,000       10,000
Provincial Funds via PRTs...................................     [32,000]          \1\       32,000          \2\
Security for International Election Monitors................     [17,600]          \1\       17,600          \2\
International Visitors Program..............................      [8,000]          \1\        8,000          \2\
Support for Media...........................................     [20,000]          \1\       20,000          \2\
                                                             ---------------------------------------------------
    Subtotal--Iraq..........................................    [428,000]    [388,000]      385,000      250,000
                                                             ===================================================
Kosovo
Legislative Reform..........................................      [2,000]          \1\        2,000          \2\
Conflict Mitigation.........................................      [5,000]          \1\        5,000          \2\
Institution/Capacity Building...............................      [8,000]          \1\        8,000          \2\
                                                             ---------------------------------------------------
    Subtotal--Kosovo........................................     [15,000]          \1\       15,000          \2\
                                                             ===================================================
Lebanon
Strength the Rule of Law....................................  ...........          \1\       10,000          \2\
Municipal Capacity Building.................................  ...........          \1\       20,000          \2\
Promote Consensus Building..................................  ...........          \1\        5,000  ...........
Democracy Programs..........................................  ...........  ...........  ...........        5,000
                                                             ---------------------------------------------------
    Subtotal--Lebanon.......................................     [35,000]          \1\       35,000        5,000
                                                             ===================================================
Somalia
Media and Democracy Programs................................  ...........  ...........        5,000        5,000
                                                             ---------------------------------------------------
    Subtotal--Somalia.......................................  ...........  ...........        5,000        5,000
                                                             ===================================================
        Total--DF...........................................  ...........  ...........      465,000      260,000
----------------------------------------------------------------------------------------------------------------
\1\The House included these funds in the accounts requested.
\2\The conference agreement includes these funds in the accounts requested.

          INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT

                    (INCLUDING RESCISSION OF FUNDS)

       The conference agreement includes $257,000,000 for 
     International Narcotics Control and Law Enforcement, instead 
     of $334,500,000 as proposed by the House and $210,000,000 as 
     proposed by the Senate. The conference agreement includes the 
     rescission of $13,000,000 in prior appropriations as proposed 
     by the Senate. House bill did not include a similar 
     provision.
       The conferees endorse language included in the Senate 
     report denying funding for construction of corrections 
     facilities.
       Funds under this heading are provided on an emergency 
     basis.
       The conference agreement allocates funding as follows:

                               INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT
----------------------------------------------------------------------------------------------------------------
                  Account  ($ in thousands)                     Request       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Iraq........................................................      200,000      180,000      150,000      150,000
Afghanistan.................................................  ...........       94,500  ...........       47,000
Lebanon.....................................................       60,000       60,000       60,000       60,000
                                                             ---------------------------------------------------
    Total--INCLE............................................      260,000      334,500      210,000      257,000
----------------------------------------------------------------------------------------------------------------

                    migration and refugee assistance

       The conference agreement includes $130,500,000 for 
     Migration and Refugee Assistance, instead of $111,500,000 as 
     proposed by the House and $143,000,000 as proposed by the 
     Senate.
       The conference agreement provides not less than $5,000,000 
     to rescue Iraqi scholars, as proposed by the Senate. The 
     House bill did not include a similar provision. The conferees 
     endorse language on this matter in the Senate report and urge 
     the Department of State to act expeditiously to develop and 
     implement a plan for resettling Iraqi scholars.
       Funds under this heading are provided on an emergency 
     basis.
       The conference agreement allocates funding as follows:

                                        MIGRATION AND REFUGEE ASSISTANCE
----------------------------------------------------------------------------------------------------------------
                  Account  ($ in thousands)                     Request       House        Senate     Conference
----------------------------------------------------------------------------------------------------------------
Afghanistan.................................................  ...........  ...........       18,000       16,000
Iraq........................................................       15,000       15,000       65,000       45,000
Allocated to Other Countries................................            0            0       60,000            0
Unallocated for Unforeseen Requirements.....................       56,500       96,500  ...........       69,500
                                                             ---------------------------------------------------
    Total--MRA..............................................       71,500      111,500      143,000      130,500
----------------------------------------------------------------------------------------------------------------

     united states emergency refugee and migration assistance fund

       The conference agreement includes $55,000,000 for the 
     United States Emergency Refugee and Migration Assistance Fund 
     as proposed by the Senate, instead of $35,000,000 as proposed 
     by the House.
       Funds under this heading are provided on an emergency 
     basis.

[[Page 10107]]




    nonproliferation, anti-terrorism, demining and related programs

       The conference agreement includes $57,500,000 for 
     Nonproliferation, Anti-Terrorism, Demining and Related 
     Programs, instead of $87,500,000 as proposed by the House and 
     $27,500,000 as proposed by the Senate. The conferees 
     $25,000,000 for border security programs in Jordan, and 
     include $5,000,000, as proposed in the House bill under 
     ``Economic Support Fund'', for the protection of the Liberian 
     President.
       The conferees direct the Secretary of State to submit to 
     the Committees on Appropriations not later than 30 days after 
     enactment of this Act a report on strengthening the personal 
     security of President of South Sudan. This report shall 
     include a spending plan for the use of funds appropriated in 
     fiscal year 2007, including from Peacekeeping Operations or 
     Nonproliferation, Anti-Terrorism, Demining and Related 
     Programs.
       Funds under this heading are provided on an emergency 
     basis.

                       Department of the Treasury


               international affairs technical assistance

       The conference agreement includes $2,750,000 for 
     International Affairs Technical Assistance as proposed by 
     both the House and the Senate.
       Funds under this heading are provided on an emergency 
     basis.

                          MILITARY ASSISTANCE

                  Funds Appropriated to the President


                   foreign military financing program

       The conference agreement includes $265,000,000 for the 
     Foreign Military Financing Program, instead of $260,000,000 
     as proposed by the House and $220,000,000 as proposed by the 
     Senate. The conference agreement includes $220,000,000 for 
     assistance for Lebanon and $45,000,000 for assistance for 
     Jordan.
       The conferees recognize that Jordan is a key ally of the 
     United States in the region and affirm the special transfer 
     authorities of the President under section 614(a) of the 
     Foreign Assistance Act of 1961 should additional emergency 
     security assistance for Jordan be required.
       Funds under this heading are provided on an emergency 
     basis.


                        PEACEKEEPING OPERATIoNS

       The conference agreement includes $230,000,000 for 
     Peacekeeping Operations, instead of $225,000,000 as proposed 
     by the House and $323,000,000 as proposed by the Senate.
       The conferees endorse language in the House report 
     directing the Department of State to report on the status of 
     implementation of the African Union Mission in Sudan (AMIS) 
     mandate and to provide a timetable for a hybrid U.N./AMIS 
     peacekeeping force in Darfur.
       The conferees direct the Secretary of State to submit a 
     report to the Committees on Appropriations not later than 30 
     days after enactment of this Act, and every 30 days 
     thereafter until September 30, 2008, detailing the obligation 
     and expenditure of funds made available under this heading. 
     The conferees request that this information be provided on a 
     country-by-country basis, with descriptive information on 
     activities supported.
       Funds under this heading are provided on an emergency 
     basis.

                    GENERAL PROVISIONS--THIS CHAPTER

       Section 1801. Authorization of Funds--The conference 
     agreement includes a general provision authorizing the 
     expenditure of funds provided by this title, as proposed by 
     the Senate (sec. 1701). The House bill did not include a 
     similar provision.
       The conference agreement does not include a general 
     provision proposed by the Senate extending the availability 
     of funds (sec. 1702).
       Sec. 1802. Extension of Oversight Authority--The conference 
     agreement includes a general provision extending the 
     authority of the Special Inspector General for Iraq 
     Reconstruction through fiscal year 2007, as proposed by the 
     Senate (sec. 1703). The House proposed a similar provision 
     (sec. 1801) extending the authority for both fiscal years 
     2007 and 2008.
       Sec. 1803. Lebanon--The conference agreement includes a 
     general provision restricting certain assistance for Lebanon, 
     similar to language proposed by the House (sec. 1802) and the 
     Senate (sec. 1706).
       Sec. 1804. Debt Restructuring--The conference agreement 
     includes a general provision permitting the use of funds made 
     available in fiscal year 2007 for debt restructuring to 
     assist Liberia, as proposed by both the House and Senate.
       The conference agreement does not include a general 
     provision authorizing the transfer of funds under the 
     Economic Support Fund account to other accounts for 
     assistance for Jordan, as proposed by the Senate (sec. 1705).
       Sec. 1805. Government Accountability Office--The conference 
     agreement includes a new provision requiring that the 
     Department of State support personnel from the Government 
     Accountability Office (GAO) for periods of not less than 45 
     days to conduct oversight in Iraq. The conferees expect that 
     housing and office space, appropriate for handling classified 
     materials, for three GAO personnel would be provided in 
     Baghdad's International Zone.
       Sec. 1806. Human Rights and Democracy Fund--The conference 
     agreement includes a general provision regarding the 
     management responsibilities of the Assistant Secretary of 
     State for Democracy, Human Rights, and Labor, as proposed by 
     the Senate (sec. 1707). The House bill included no similar 
     provision.
       Sec. 1807. Inspector General Oversight of Iraq and 
     Afghanistan--The conference agreement modifies a general 
     provision from the Senate bill (sec. 1708) regarding certain 
     authorities of the Department of State's Inspector General. 
     The House bill included no similar provision.
       Sec. 1808. Funding Tables--The conference agreement 
     modifies a general provision from the Senate bill (sec. 1709) 
     requiring that certain funds provided in this chapter be made 
     available for programs and countries in the amounts contained 
     in the respective tables included in this Statement of 
     Managers, subject to the regular notification procedures of 
     the Committees on Appropriations. The House bill included no 
     similar provision.
       Sec. 1809. Spending Plan and Notification Procedures--The 
     conference agreement modifies a general provision included in 
     the Senate bill (sec. 1711) regarding the submission of a 
     report detailing planned expenditures for funds appropriated 
     under the headings in this chapter. The House bill included 
     no similar general provision.
       Sec. 1810. Conditions on Assistance for Pakistan--The 
     conference agreement includes a provision requiring the 
     Secretary of State to submit an implementation plan to the 
     Committees on Appropriations before any nonproject assistance 
     is made available to the Government of Pakistan. This report 
     shall detail the process by which the use of these funds will 
     be determined and overseen, as well as outline the benchmarks 
     for the use of these funds. The report shall also detail the 
     United States and Pakistani entities responsible for 
     implementation and oversight, and assess their operational 
     capacity. The conferees expect the spending plan to include 
     detailed information on assistance by sector and program, 
     project, and activity. This report shall also indicate which 
     ``FATA Sustainable Development Plan'' sub-sector is supported 
     by each program, project, or activity. The conferees also 
     direct that $5,000,000 of the funds made available for 
     Pakistan under the heading ``Economic Support Fund'' be 
     provided for political party development and election 
     observation programs to the Human Rights and Democracy Fund.
       Sec. 1811. Civilian Reserve Corps--The conference agreement 
     modifies language proposed by the House (under the heading 
     ``Diplomatic and Consular Programs'') and by the Senate (sec. 
     1712) authorizing the Secretary of State to make available up 
     to $50,000,000 to support and maintain a civilian reserve 
     corps.
       Sec. 1812. Coordinator for Iraq Assistance--The conference 
     agreement includes a provision concerning the appointment and 
     duties of a new Coordinator for Iraq Assistance, as proposed 
     by the House. The Senate bill included no similar provision. 
     The conferees expect the Coordinator to consult on a regular 
     and ongoing basis with the U.S. Chief of Mission in Iraq.

                               CHAPTER 9

                     GENERAL PROVISIONS--THIS TITLE

       The conference agreement includes a provision proposed by 
     the House related to the mission capabilities of units 
     deployed to Iraq.
       The conference agreement includes a provision proposed by 
     the House related to the deployment of units in Iraq.
       The conference agreement includes a provision proposed by 
     the House related to the early redeployment of troops to 
     Iraq.
       The conference agreement includes modified House and Senate 
     language establishing benchmarks and timetables for the 
     redeployment of U.S. combat forces from Iraq.

      TITLE II--ADDITIONAL HURRICANE DISASTER RELIEF AND RECOVERY

       Funding in this title provides continuing support for 
     hurricane disaster relief and recovery. One of the groups 
     that has been most adversely affected are the children in the 
     Gulf Coast region. The conferees provide additional funding 
     of $4,610,000,000 to the Federal Emergency Management Agency 
     Disaster Relief fund. This funding can help continue to 
     address the needs of the estimated 372,000 students affected 
     by Hurricane Katrina. The Disaster Relief fund includes 
     support for public assistance grants to repair and 
     reconstruct school buildings, replace contents in schools 
     including books and desks, and provide portable classrooms. A 
     provision included in this legislation mandates that the full 
     cost of the assistance to affected States, applied for prior 
     to enactment of this Act, is borne by the federal government.
       The supplemental also provides $30,000,000 in emergency 
     assistance for the public elementary and secondary schools 
     most severely impacted by the 2005 Gulf Coast hurricanes in 
     order to help them recruit and retain high quality classroom 
     teachers for the children returning to these communities.
       The supplemental also extends the availability of 
     $550,000,000 in emergency funds provided for the Title XX 
     Social Services Block Grant in 2006 that will otherwise 
     expire on

[[Page 10108]]

     September 30, 2007. A portion of these funds will be used to 
     provide behavioral health services, foster care, protective, 
     and day care services for children.

                               CHAPTER 1

                       DEPARTMENT OF AGRICULTURE

                    GENERAL PROVISION--THIS CHAPTER

       Sec. 2101. The conference agreement includes a general 
     provision that would allow the Secretary of Agriculture to 
     continue to enroll eligible participants into the Emergency 
     Forestry Conservation Reserve Program (EFCRP) as proposed by 
     the Senate. The EFCRP was created in the aftermath of 
     Hurricane Katrina to assist forest landowners with the 
     restoration of damaged timber stands.
       The conference agreement does not include additional 
     hurricane disaster assistance for livestock, irrigated crops, 
     or citrus as proposed by the House. Qualifying losses are 
     covered under the Agriculture Assistance title.

                               CHAPTER 2

                         DEPARTMENT OF JUSTICE

                       Office of Justice Programs


               STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

       The conference agreement includes $50,000,000 for Edward 
     Byrne Discretionary Grants for State and local law 
     enforcement, instead of $170,000,000 as proposed by the 
     Senate. The House did not include this funding. This funding 
     is provided for local law enforcement initiatives in the Gulf 
     Coast region related to the aftermath of Hurricanes Katrina 
     and Rita. The conferees agree that funding shall be 
     distributed to the States in relation to their level of 
     violent crime as estimated by the Federal Bureau of 
     Investigation's Uniform Crime Report for 2005.
       The conference agreement does not include $100,000,000 for 
     Edward Byrne Discretionary Grants for State and local law 
     enforcement for security related to the 2008 Presidential 
     Conventions. As proposed by the Senate, the funds would have 
     been distributed equally between the host cities of Denver, 
     Colorado and St. Paul, Minnesota. The House proposed no 
     funding.

                         DEPARTMENT OF COMMERCE

            National Oceanic and Atmospheric Administration


                  OPERATIONS, RESEARCH, AND FACILITIES

       The conference agreement includes $110,000,000 under this 
     heading, instead of $120,000,000 as proposed by the House and 
     $165,900,000 as proposed by the Senate. Within this amount, 
     the Senate proposal included $60,400,000 for a salmon fishery 
     disaster along the Klamath River. The House provided funding 
     for this purpose in a different title. The conferees agree to 
     provide funding for the consequences of this disaster in 
     Title III of this Act.
       The conferees provide: $24,000,000 for the Office of Coast 
     Survey and the Office of Response and Restoration to conduct 
     scanning and mapping as well as to provide debris removal in 
     Louisiana's traditional fishing grounds; $85,000,000 for 
     assistance programs authorized under section 115 of the 
     Magnuson-Stevens Fishery Conservation and Management 
     Reauthorization Act of 2006, of which funding shall be 
     distributed to eligible recipients in States most affected by 
     Hurricanes Katrina and Rita; and $1,000,000 for real-time 
     observations and forecasts for critical marine navigation at 
     the next highest priority seaports along the northern Gulf of 
     Mexico, and to continue to repair and replace tide gauge 
     stations throughout the entire region which are critical 
     components to coastal shipboard navigation and storm surge 
     information.
       The conferees direct the Department of Commerce to work 
     with the States of Louisiana, Mississippi, and Alabama and 
     other appropriate entities to distribute assistance funding 
     based on an assessment of the needs of the fishing industries 
     in those States. The conferees direct the Department of 
     Commerce to notify the Committees on Appropriations on the 
     allocation of funds provided under this heading for the above 
     activities no later than 15 days prior to obligaion of such 
     funds.

             NATIONAL AERONAUTICS AND SPACE ADMINISTRATION


                        EXPLORATION CAPABILITIES

       The conference agreement includes $35,000,000 for risk 
     mitigation projects at the National Aeronautics and Space 
     Administration (NASA), as proposed by the House. The Senate 
     did not include funding under this heading.

                    GENERAL PROVISION--THIS CHAPTER

       The conference agreement includes language to allow NASA to 
     use previously appropriated emergency funds to cover 
     hurricane response expenses incurred in fiscal year 2005.

                               CHAPTER 3

                      DEPARTMENT OF DEFENSE--CIVIL

                         DEPARTMENT OF THE ARMY

                       Corps of Engineers--Civil


                              CONSTRUCTION

       The conference agreement provides $25,300,000 for 
     ``Construction'', instead of $37,080,000 as proposed by the 
     House and $150,000,000 as proposed by the Senate. These funds 
     are provided for necessary expenses related to the 
     consequences of Hurricane Katrina and other hurricanes of the 
     2005 season, and may be used to continue construction of 
     projects related to interior drainage for the greater New 
     Orleans metropolitan area.


                 FLOOD CONTROL AND COASTAL EMERGENCIES

       The conference agreement provides $1,407,700,000 for 
     ``Flood Control and Coastal Emergencies'' as proposed by the 
     Senate instead of $1,300,000,000 as proposed by the House. 
     Additional funding for this account is provided under title 
     III.
       The Conferees include $107,700,000 to construct interim 
     flood and storm damage reduction measures recommended in the 
     Chief of Engineers report dated December 31, 2006, entitled'' 
     Mississippi Coastal Improvements Program, Interim Report'', 
     at full federal expense.
       Funds provided in Public Law 109-148, the third emergency 
     supplemental appropriations act of 2006, were intended to 
     complete the West Bank and vicinity and Lake Pontchartrain 
     and vicinity, Louisiana, projects. However, the magnitude of 
     the effort required to provide the pre-Katrina authorized 
     levels of protection is now recognized to be much greater 
     than originally anticipated. Accordingly, $1,300,000,000 is 
     included to complete the pre-Katrina authorized level of 
     protection for the West Bank and vicinity project as well as 
     make progress toward providing authorized protection for the 
     remaining portions of the Lake Pontchartrain and vicinity 
     project.
       The Conferees are aware that the Corps of Engineers is 
     considering the placement of interim protective structures at 
     the Inner Harbor Navigation Canal to provide an enhanced 
     measure of protection against storm surges traveling up the 
     Mississippi River Gulf Outlet or the Gulf Intracoastal 
     Waterway until authorized permanent protective measures can 
     be designed and built. The Conferees support this use of 
     Flood Control and Coastal Emergency funds made available 
     under P.L. 109-234. The Corps is reminded that a potentially 
     catastrophic emergency situation continues to exist at the 
     Inner Harbor and encourages the Corps to employ all 
     legitimate emergency means and authorities to ensure that 
     some enhanced level of interim protection can be put into 
     place during 2007, and that permanent protective structures 
     can be completed by 2010.
       Additionally, a provision is included to allow the 
     reallocation of funds provided in chapter 3 of Public Law 
     109-234 under the heading ``Flood Control and Coastal 
     Emergencies'' for projects in the greater New Orleans area. 
     The provision requires any reallocation of funds be approved 
     by the House and Senate Committees on Appropriations. The 
     Conferees are aware of only one instance where the 
     reallocation of funds is advisable, the provision of 
     permanent protection at the Inner Harbor Navigation Canal. 
     While the Conferees recognize there may be future 
     circumstances where the use of this authority will be 
     desirable, the Corps is instructed to use it judiciously.

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 2301. The conference agreement includes a provision 
     relating to reimbursements to local governments for expenses 
     incurred for eligible storm and flood damage reduction 
     activities.
       Sec. 2302. The conference agreement includes a provision 
     related to the utilization of funds provided under Public Law 
     109-234.
       Sec. 2303. The conference agreement includes a provision 
     directing the study of the effectiveness of pumping stations 
     and other alternatives at specific sites in New Orleans.
       Sec. 2304. The conference agreement includes a provision 
     directing the acceleration of the Mississippi River Gulf 
     Outlet study, as practicable.

                               CHAPTER 4

                     SMALL BUSINESS ADMINISTRATION

                     Disaster Loans Program Account


                     (INCLUDING TRANSFER OF FUNDS)

       The conference agreement modifies the House and Senate 
     proposals and provides for the use of $25,069,000 in 
     unobligated balances of the Disaster Loans Program Account to 
     be used for administrative expenses. The House and Senate 
     recommended $25,069,000 as a new appropriation.
       The conference agreement also provides that $25,000,000 in 
     unobligated balances shall be used for the Small Business 
     Administration Disaster Loans Program for Economic Injury 
     Disaster Loans. Not more than $8,750,000 may be used for 
     administrative expenses. The Senate proposed a direct 
     appropriation as part of section 2401. The House did not 
     include similar language.

                    GENERAL PROVISIONS--THIS CHAPTER

       The conference agreement does not include language proposed 
     as Senate section 2401 regarding Economic Injury Disaster 
     Loans.
       The conference agreement does not include language proposed 
     as Senate section 2402 to extend the HUBZone program and to 
     terminate the Small Business Competitive Demonstration 
     Program.
       The conference agreement does not include language proposed 
     as Senate section 2403 to modify the Reservist Program.

[[Page 10109]]



                                CHAPTERS

                    DEPARTMENT OF HOMELAND SECURITY

      Office of the Federal Coordinator for Gulf Coast Rebuilding

       The conferees understand the Office of the Federal 
     Coordinator for Gulf Coast Rebuilding is working on several 
     initiatives, such as working with the Federal Emergency 
     Management Agency (FEMA) to advance public assistance 
     projects, including those that focus on education and 
     criminal justice; working with the Department of Housing and 
     Urban Development (HUD) on a public housing plan; and 
     developing a plan to transition evacuees into permanent 
     housing. The conferees agree that the housing problem in the 
     Gulf Coast is especially daunting and expect the Office of 
     the Federal Coordinator for Gulf Coast Rebuilding to take a 
     leadership role in order to ensure progress is made. The 
     focus of the Office of the Federal Coordinator for Gulf Coast 
     Rebuilding should not only be on public housing but also on 
     other HUD programs including Section 202, Section 811, and 
     rental assistance. The conferees expect that a near-term goal 
     is to develop housing solutions for all evacuees. The 
     conferees direct the Office of the Federal Coordinator for 
     Gulf Coast Rebuilding to provide quarterly progress reports 
     to the Committees on Appropriations outlining monthly 
     progress on ongoing initiatives, factors delaying progress, 
     and the goals and expectations against which progress is 
     being measured.

                  FEDERAL EMERGENCY MANAGEMENT AGENCY

                            Disaster Relief


                     (INCLUDING TRANSFER OF FUNDS)

       The conferees provide $4,610,000,000 for Disaster Relief 
     instead of $4,310,000,000 as proposed by the House and 
     Senate. The conferees agree with the House report requiring 
     the Government Accountability Office to review how FEMA 
     develops its estimates of the funds needed to respond to any 
     given disaster.
       The conferees provide that $4,000,000 of the amount 
     provided be transferred to the Office of Inspector General to 
     increase oversight of Hurricanes Katrina, Rita, and Wilma 
     expenditures and eliminate waste, fraud and abuse, as 
     proposed by the House.

                           GENERAL PROVISIONS

       Section 2501.--The conferees include provisions proposed by 
     the House and Senate eliminating the State and local match 
     requirement for certain Federal assistance applied for prior 
     to enactment of this Act pursuant to Title IV of the Stafford 
     Act in response to Hurricanes Katrina, Rita, Wilma, and 
     Dennis in Louisiana, Mississippi, Texas, Florida, and 
     Alabama. The conferees direct FEMA to apply the cost share 
     waiver to all eligible projects for which a ``request for 
     public assistance from'' has been submitted and for other 
     needs assistance that has been applied for by an individual 
     prior to enactment of this Act.
       Section 2502.--The conferees include a provision proposed 
     by the House and Senate restoring FEMA's ability to forgive 
     Community Disaster Loans that were issued in response to 
     Hurricanes Katrina and Rita. This is consistent with previous 
     disasters. This provision is retroactive to the date of 
     enactment of P.L. 109-234 and P.L. 109-88, as proposed by the 
     House.
       Section 2503.--The conferees include a provision proposed 
     by the House and Senate extending the availability of 
     utilities assistance for those leases negotiated by State and 
     local governments and reimbursed by FEMA. This provision is 
     retroactive to the date of enactment of P.L. 109-234, as 
     proposed by the House.

                               CHAPTER 6

                       DEPARTMENT OF THE INTERIOR

                         National Park Service


                       Historic Preservation Fund

       The conference agreement provides $10,000,000 for the 
     historic preservation fund instead of $15,000,000 as 
     recommended by the Senate and no funding recommended by the 
     House. The agreement includes the bill language and 
     instructions recommended by the Senate.

                    GENERAL PROVISIONS--THIS CHAPTER


                     (INCLUDING TRANSFER OF FUNDS)

       Section 2601. The conference agreement modifies language 
     proposed by the Senate. The conference agreement makes a 
     technical correction to P.L. 109-234 permitting $500,000 of 
     emergency Hurricane Katrina disaster funds provided in fiscal 
     year 2006 to be transferred from the National Park Service 
     Historic Preservation Fund account to the National Recreation 
     and Preservation account. These funds will be used for 
     hurricane related reconstruction activities.

                               CHAPTER 7

                        DEPARTMENT OF EDUCATION

                            Higher Education

       The conference agreement includes $30,000,000 for grants to 
     institutions of higher education impacted by Hurricanes 
     Katrina or Rita. The House bill and Senate amendment also 
     proposed $30,000,000 for grants to institutions of higher 
     education, but used different eligibility criteria to define 
     how the funds should be allocated. The conferees direct the 
     Secretary to allocate funds to interested eligible 
     institutions based on their share of unreimbursed expenses, 
     including tuition and fees revenue lost, expenses incurred in 
     remediating the effects of the hurricanes, and estimated 
     construction costs for repairing and replacing campus 
     buildings. These data should reflect revenue lost and 
     expenses incurred through the current semester of this 
     academic year.
       The conferees direct the Department to disburse these funds 
     within 60 days of the date of enactment of this act. The 
     conferees also direct the Department to brief the Committees 
     on Appropriations of the House of Representatives and Senate 
     on the proposed methodology for allocating these funds prior 
     to any action notifying the public of the availability of 
     these funds.

                      Hurricane Education Recovery

       The conference agreement provides $30,000,000 for grants to 
     hurricane-impacted States and local educational agencies to 
     build the capacity of public schools that were forced to 
     suspend operations due to Hurricane Katrina or Hurricane 
     Rita. The House bill and Senate amendment also proposed 
     $30,000,000 for this purpose, but used different criteria 
     regarding the use and distribution of the funds. The 
     conferees request that the Department of Education provide 
     quarterly reports to the House Committee on Education and 
     Labor; the Senate Committee on Health, Education, Labor, and 
     Pensions; and the House and Senate Committees on 
     Appropriations on the use of this emergency assistance, 
     including amounts paid for recruitment incentives such as 
     performance pay, relocation, and housing.


                 PROGRAMS TO RESTART SCHOOL OPERATIONS

       The conference agreement modifies bill language proposed by 
     the House and Senate to expand the uses of funds provided for 
     emergency aid to restart school operations appropriated in 
     Public Law 109-148 to include costs associated with 
     recruitment and retention of educators and other activities 
     to assist in building the capacity of public schools that 
     were forced to suspend operations due to Hurricane Katrina or 
     Hurricane Rita. The House bill and Senate amendment had 
     similar language.

                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 2701. The conference agreement modifies bill language 
     proposed by the House and Senate providing flexibility to 
     eligible States and local educational agencies in the use of 
     emergency aid to restart school operations appropriated in 
     Public Law 109-148.
       Sec. 2702. The conference agreement includes a provision 
     similar to that proposed by the House and the Senate that 
     extends until September 30, 2009, the availability of 
     emergency title XX Social Services Block Grant funds provided 
     to the States affected by the 2005 Gulf Coast hurricanes 
     under the Department of Defense, Emergency Supplemental 
     Appropriations to Address Hurricanes in the Gulf of Mexico, 
     and Pandemic Influenza Act, 2006.
       Sec. 2703. The conference agreement includes language 
     permitting the Secretary of Health and Human Services to 
     grant waivers modifying three provisions of the Ryan White 
     State HIV/AIDS grants for four States affected by the 2005 
     Gulf Coast hurricanes. The Senate amendment included similar 
     language. The House bill did not include a similar provision.

                               CHAPTER 8

                      DEPARTMENT OF TRANSPORTATION

                     Federal Highway Administration


                          Federal-Aid Highways

                        EMERGENCY RELIEF PROGRAM

                    (INCLUDING RESCISSION OF FUNDS)

       The conference agreement includes $682,942,000 for the 
     Emergency Relief Program, instead of $388,903,000 as proposed 
     by the Senate. The House had no similar funding provision. 
     The conference agreement also includes language that waives 
     the per-State per-disaster limitation for the 2005-2006 
     winter storms which severely impacted forty counties in the 
     State of California. In taking this action, the conferees 
     make eligible the costs associated with this disaster that 
     exceed the statutory limitation but do not prioritize them 
     above the costs associated with any other disaster eligible 
     for emergency relief assistance. The conference agreement 
     eliminates the total current backlog of formal and pending 
     requests for emergency relief funding.
       The cost of providing these funds is offset by a rescission 
     of an equal amount of the unobligated balances of funds 
     apportioned to the states under chapter 1 of title 23, United 
     States Code, excluding safety programs and funds set aside 
     within the state for population areas. The conferees direct 
     the FHWA to administer the rescission by allowing each state 
     maximum flexibility in making adjustments among the 
     apportioned highway programs.

                     Federal Transit Administration


                             FORMULA GRANTS

       The conference agreement includes $35,000,000, instead of 
     $75,000,000 as proposed by the Senate, for the Federal 
     Transit Administration's formula grant program for emergency 
     expenses associated with the continuation of transit services 
     in communities severely impacted by Hurricanes Katrina and

[[Page 10110]]

     Rita. The conferees direct that funding shall be allocated by 
     the Secretary both for operating expenses necessary to keep 
     transit services affordable for local residents as well as 
     for capital costs associated with the replacement of rolling 
     stock destroyed by the hurricanes. The conferees direct the 
     Federal Transit Administration to make this assistance 
     available without requirement for local match. The House 
     included no similar appropriation.

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                      Office of Inspector General

       The conference agreement provides $7,000,000 for the Office 
     of the Inspector General instead of $10,240,000 as proposed 
     by the House and $5,000,000 as proposed by the Senate. These 
     funds shall be used to meet the necessary HUD OIG expenses 
     related to the auditing and oversight of HUD funds provided 
     previously to address the consequences of Hurricanes Katrina 
     and Rita. These funds shall remain available until expended, 
     as proposed by the Senate. The conferees believe that the 
     oversight of emergency CDBG funds is an important 
     responsibility for the HUD IG to ensure that disaster funds 
     provided for the Gulf are used efficiently and effectively. 
     The conferees expect the OIG to establish benchmarks to 
     identify the effective use of these funds.
       Since this is a substantial increase of funding for the 
     OIG, the conferees direct that these supplemental funds not 
     be used solely to increase the number of OIG staff. The 
     conferees cannot be certain that resources will be available 
     to annualize the costs of such a substantial staffing boost. 
     Rather, the conferees expect the OIG to view these 
     supplemental resources as non-recurring and focus these 
     resources on a multi-year effort targeted solely on HUD-
     related investigations and audits related to the emergency 
     CDBG and other HUD funds provided to rebuild the Gulf region 
     and house low-income tenants.

                    GENERAL PROVISIONS--THIS CHAPTER

       The conference agreement includes a general provision as 
     proposed by the House to extend until December 31, 2007 the 
     existing authority to waive Section 8 income eligibility and 
     tenant contribution requirements for the Disaster Voucher 
     Program. The Senate did not include a similar provision.
       The conference agreement modifies a general provision 
     proposed by both the House and Senate that temporarily 
     exempts specific categories of public housing authorities 
     from the new 12-month formula for the Tenant-Based Rental 
     Assistance program. To the extent a demonstration of need is 
     made, the specific categories are as follows: 1) public 
     housing agencies impacted by Hurricanes Katrina and Rita; and 
     2) public housing agencies that are under receivership or 
     declared to be in breach of their Annual Contributions 
     Contract. Public housing agencies that spent more than the 
     total of their allocated funds for 2005 and 2006 may not 
     receive a higher allocation. The conference agreement does 
     not include an exemption for public housing authorities 
     operating under the Moving to Work program as proposed by the 
     House.
       The conference agreement includes a new general provision 
     that extends until December 31, 2007, the provision of Sec. 
     901 of Public Law 109-148. This provision will continue to 
     allow public housing authorities in the most heavily impacted 
     areas in Mississippi and Louisiana the flexibility to combine 
     separate funding streams to assist tenants and reconstruct 
     and rehabilitate low-income rental housing.
       The conference agreement does not include language proposed 
     by the House to extend the funds associated with the Disaster 
     Voucher Program because Congress has been assured by senior 
     level officials from the Department of Housing and Urban 
     Development (HUD) that HUD will obligate all remaining funds 
     prior to September 30, 2007.

               TITLE III--OTHER EMERGENCY APPROPRIATIONS

                               CHAPTER 1

                         DEPARTMENT OF COMMERCE

            National Oceanic and Atmospheric Administration


                  OPERATIONS, RESEARCH, AND FACILITIES

       The conferees provide $60,400,000, as proposed by the House 
     and the Senate, for disaster relief for commercial salmon 
     fishermen and other eligible entities along the coasts of 
     California and Oregon due to the 2006 salmon fishery failure 
     in the Klamath River as designated under section 312(a) of 
     the Magnuson-Stevens Fishery Conservation and Management Act 
     (16 U.S.C. 1861a(a)) and declared by the Secretary of 
     Commerce on August 10, 2006.

                               CHAPTER 2

                      DEPARTMENT OF DEFENSE--CIVIL

                         DEPARTMENT OF THE ARMY

                       Corps of Engineers--Civil


                       OPERATION AND MAINTENANCE

       The conference agreement provides $3,000,000 for 
     ``Operation and Maintenance'' as proposed by the Senate. 
     Funds are provided for emergency dredging needs due to the 
     effects of hurricanes of the 2005 season.


                 FLOOD CONTROL AND COASTAL EMERGENCIES

       The conference agreement provides $150,000,000 for ``Flood 
     Control and Coastal Emergencies'' as proposed by the Senate 
     in title II. Funds are provided for repairs to eligible 
     Federal facilities damaged by natural disasters and emergency 
     drought assistance.

                       DEPARTMENT OF THE INTERIOR

                         BUREAU OF RECLAMATION


                      WATER AND RELATED RESOURCES

       The conference agreement provides $18,000,000 for ``Water 
     and Related Resources'' as proposed by the Senate.

                               CHAPTER 3

                       DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management


                        wildland Fire Management

                     (Including Transfer of Funds)

       The conference agreement provides $100,000,000 of emergency 
     funding for wildland fire management activities of the 
     Department of the Interior as proposed by both the House and 
     the Senate.


                United States Fish and Wildlife Service

                          Resource Management

       The conference agreement provides $7,398,000 of emergency 
     funding for activities related to avian flu within the 
     resource management account as recommended by both the House 
     and the Senate.


                         National Park Service

                 OPERATION OF THE NATIONAL PARK SYSTEM

       The conference agreement provides $525,000 of emergency 
     funding for activities related to avian flu within the 
     Operation of the National Park System account as recommended 
     by both the House and the Senate.


                    United States Geological Survey

                 Surveys, Investigations, and Research

       The conference agreement provides $5,270,000 of emergency 
     funding for activities related to avian flu within the 
     Surveys, Investigations, and Research account as recommended 
     by both the House and the Senate.

                       DEPARTMENT OF AGRICULTURE

                             Forest Service


                         National Forest System

       The conference agreement includes $12,000,000 of emergency 
     funding for the national forest system as recommended by the 
     Senate instead of no funding as recommended by the House. The 
     conference agreement is consistent with the Senate proposal 
     to increase drug eradication on national forest system lands 
     and clarifies that these funds should be used for law 
     enforcement against all types of drug traffickers. The 
     managers agree that funding should be directed for increased 
     staffing, equipment, training and cooperative agreements to 
     increase protection of national forest lands in areas that 
     face the highest concentration of drug-trafficking activity.


                        WILDLAND FIRE MANAGEMENT

                     (INCLUDING TRANSFER OF FUNDS)

       The conference agreement provides $400,000,000 of emergency 
     funding for wildland fire management activities of the Forest 
     Service as proposed by both the House and the Senate.

                    GENERAL PROVISIONS--THIS CHAPTER

       Section 3301. The conference agreement replaces language 
     recommended by the House in section 4501 and language 
     recommended by the Senate in Title II, section 2601, dealing 
     with payments for county schools and other purposes. The 
     agreement makes one-time payments to States in the same 
     amounts and in the same manner, to the maximum extent 
     practicable, as were done in 2006 under the Secure Rural 
     Schools and Community Self-Determination Act of 2000. The 
     agreement allows certain revenues, fees, penalties or 
     miscellaneous receipts for both the Forest Service and the 
     Bureau of Land Management, not to exceed $100,000,000, to be 
     distributed, 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. The 
     agreement also appropriates $425,000,000 of emergency funding 
     to cover any shortfall for payments made under this section 
     from funds not otherwise appropriated. Lastly, the agreement 
     amends this Act to allow the resource advisory committees to 
     function for another full year.

                               CHAPTER 4

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

               Centers for Disease Control and Prevention


                 DISEASE CONTROL, RESEARCH AND TRAINING

       The conference agreement provides $13,000,000, to remain 
     available until September 30, 2008, for research to develop 
     mine safety technology, including necessary repairs and 
     improvements to leased laboratories as proposed by the 
     Senate. The House bill did not include a similar provision.
       The conference agreement includes a bill language 
     provision, as proposed by the Senate, that quarterly progress 
     reports on technology development shall be submitted to the 
     House and Senate Committees on Appropriations, the House 
     Committee on Education and Labor, and the Senate Committee on 
     Health, Education, Labor and Pensions. The House bill did not 
     include a similar provision.
       The conference agreement also includes $50,000,000 to 
     remain available until expended

[[Page 10111]]

     for health monitoring and treatment of rescue and recovery 
     workers who responded to the attacks of September 11, 2001 as 
     specified 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. These funds will continue baseline and follow-up 
     screening, clinical examinations, long-term medical health 
     monitoring, and analysis for rescue and recovery personnel 
     who were exposed to toxins during their service in response 
     to the attacks, and support treatment services for those 
     rescue and recovery personnel suffering illness or injuries 
     related to their exposure. The Senate amendment proposed 
     $3,589,000 for this purpose. The House bill had no similar 
     provision.

                Administration for Children and Families


                   LOW-INCOME HOME ENERGY ASSISTANCE

       The conference agreement provides $400,000,000 for the Low-
     Income Home Energy Assistance Program, including $200,000,000 
     for State block grants and $200,000,000 for the contingent 
     emergency reserve. The Senate amendment included $640,000,000 
     (equally divided between the State block grants and the 
     emergency reserve) and the House bill included $400,000,000 
     (also equally divided).
       The conference agreement does not include bill language 
     proposed by the House permitting a State, or other grantee, 
     to obligate the block grant through September 30, 2008, to 
     address home energy needs in the event of an emergency or for 
     crisis intervention. The Senate amendment did not contain 
     similar language.

                        Office of the Secretary


            PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND

                     (INCLUDING TRANSFER OF FUNDS)

       The conference agreement provides $625,000,000, to remain 
     available until expended, for the Department of Health and 
     Human Services to prepare for and respond to an influenza 
     pandemic. The House bill included $969,650,000 and the Senate 
     amendment included $820,000,000 for this purpose. These funds 
     are intended to be used to purchase antivirals, establish 
     high-volume domestic surge capacity through vaccine purchases 
     and retrofitting of production facilities, and accelerate 
     development of cell-based vaccine capabilities as proposed by 
     the Administration.
       The conference agreement includes bill language provisions 
     proposed by both the House and Senate giving the Secretary 
     various authorities to purchase goods for the.stockpile, 
     enter into contracts for the construction or renovation of 
     privately owned facilities for the production of pandemic 
     vaccine or other biologicals, and to transfer funds to other 
     HHS accounts.
       The conferees direct the Secretary to provide on a monthly 
     basis to the Committees on Appropriations of the House of 
     Representatives and the Senate a table identifying the 
     obligation, as well as any unobligated balances, of funds 
     received for pandemic influenza preparedness. The level of 
     detail provided in the report should be at the program level 
     identified in the table on the second page of the December 
     29, 2006, report to Congress on pandemic influenza 
     preparedness spending. This table should be in addition to 
     the semi-annual report to the House and Senate Committees on 
     Appropriations that identifies the disbursement of pandemic 
     influenza preparedness funds at the level of detail specified 
     in the statement of managers accompanying the conference 
     report for the Department of Defense, Emergency Supplemental 
     Appropriations to Address Hurricanes in the Gulf of Mexico, 
     and Pandemic Influenza Act, 2006.


                  COVERED COUNTERMEASURE PROCESS FUND

       The conference agreement includes $25,000,000, to remain 
     available until expended, for the compensation fund 
     established by the Public Readiness and Emergency 
     Preparedness (PREP) Act. The House bill and the Senate 
     amendment had proposed $50,000,000 for this purpose.

                    GENERAL PROVISIONS--THIS CHAPTER


                        (INCLUDING RESCISSIONS)

       Sec. 3401. (a) The conference agreement includes three 
     provisions rescinding unobligated balances from the Training 
     and Employment Services account under the Department of 
     Labor: $3,589,000 from the 2001 Emergency Supplemental 
     Appropriations Act for Recovery from and Response to 
     Terrorist Attacks on the United States (Public Law 107-8); 
     $834,000 from the Emergency Supplemental Appropriations Act 
     of 1994 (Public Law 103-211); and $71,000 from the Emergency 
     Supplement Act, 2002 (Public Law 107-117). The Department of 
     Labor has indicated that these balances are no longer needed 
     for their original purposes. The Senate amendment included 
     only the rescission of $3,589,000 from Public Law 107-38. The 
     House bill did not contain any rescissions of Training and 
     Employment Services funds.
       (b) The conference agreement rescinds $4,100,000 from 
     unobligated balances available from the State Unemployment 
     Insurance and Employment Service Operations account under the 
     Department of Labor pursuant to Emergency Supplemental Act, 
     2002 (Public Law 107-117). Neither the House bill nor the 
     Senate amendment included this rescission.
       Sec. 3402. The conference agreement includes a provision 
     similar to one proposed by the Senate providing $8,594,000 
     for Safe and Drug-Free Schools to address youth violence and 
     related issues in schools that are identified as persistently 
     dangerous under section 9532 of the Elementary and Secondary 
     Education Act of 1965. The House bill did not contain a 
     similar provision.

                               CHAPTER 5

                           LEGISLATIVE BRANCH

                        Architect of the Capitol


                          Capitol Power Plant

       The conference agreement includes $50,000,000 to the 
     Architect of the Capitol for utility tunnel repairs and 
     asbestos abatement. The conferees agree to language 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, as proposed by the 
     Senate. This is the same amount as proposed by the House for 
     asbestos abatement and other improvements, instead of 
     $25,000,000 as proposed by the Senate for emergency utility 
     tunnel repairs and asbestos abatement. The conferees direct 
     the Government Accountability Office to assist the Committees 
     on Appropriations in their oversight of the project through 
     monitoring the Architect of the Capitol's strategic planning 
     and use of resources related to this project.

                               CHAPTER 6

                     DEPARTMENT OF VETERANS AFFAIRS

                    Veterans Benefits Administration


                       COMPENSATION AND PENSIONS

       The conferees have not included funding in this account for 
     a pilot program of benefits medical examinations as proposed 
     by the House. The Senate bill contained no similar provision. 
     Instead, the conferees have included funding under General 
     Operating Expenses for authorized examinations to assist in 
     claims processing.

                     Veterans Health Administration


                            MEDICAL SERVICES

       The conferees have agreed to provide $466,778,000 for 
     Medical Services, instead of $414,982,000 as proposed by the 
     House and $454,131,000 as proposed by the Senate. The 
     conference agreement includes $228,982,000 for treatment of 
     OIF/OEF veterans; $30,000,000 for at least one new Level I 
     polytrauma care center; $25,000,000 for prosthetics; 
     $100,000,000 for enhancement to mental health services; 
     $9,440,000 for the establishment of residential transitional 
     rehabilitation programs; $10,000,000 for additional 
     caseworkers to facilitate seamless transition; $20,000,000 
     for substance abuse treatment programs; $20,000,000 for 
     readjustment counseling efforts; $10,000,000 for blind 
     rehabilitation services; $8,000,000 for polytrauma support 
     clinic teams; and $5,356,000 for additional polytrauma points 
     of contact.
       The conferees direct the Secretary to provide a report to 
     the Committees on Appropriations of the House of 
     Representatives and the Senate within 60 days of enactment of 
     this Act detailing the number of Level I polytrauma centers 
     to be opened and sites selected. The report should include an 
     analysis of projected demand in areas of the country where 
     Level I polytrauma centers are not readily accessible.


                         MEDICAL ADMINISTRATION

       The conferees have agreed to provide $250,000,000 for 
     Medical Administration as proposed by the Senate instead of 
     $256,300,000 as proposed by the House.


                           MEDICAL FACILITIES

       The conferees have agreed to provide $595,000,000 for 
     Medical Facilities as proposed by both the House and the 
     Senate. The amount provided includes $45,000,000 for facility 
     and equipment upgrades at existing polytrauma care centers. 
     In addition, $550,000,000 is provided for non-recurring 
     maintenance and is to be allocated in a manner not subject to 
     the Veterans Equitable Resource Allocation model.
       The conferees have included language in the bill which 
     requires the Department to submit an expenditure plan within 
     30 days for the use of the non-recurring maintenance funding 
     appropriated. In addition, the Department is to provide semi-
     annual updates on the expenditure of these funds.


                    MEDICAL AND PROSTHETIC RESEARCH

       The conferees have agreed to provide $32,500,000 for 
     Medical and Prosthetic Research, instead of $35,000,000 as 
     proposed by the House and $30,000,000 as proposed by the 
     Senate.

                      Departmental Administration


                       GENERAL OPERATING EXPENSES

                     (INCLUDING TRANSFER OF FUNDS)

       The conferees have agreed to provide $83,200,000 for 
     General Operating Expenses, instead of $62,000,000 as 
     proposed by the House and $46,000,000 as proposed by the 
     Senate. The amount provided includes $20,000,000 for 
     disability medical examinations. Additionally, $60,750,000 is 
     to be used for the expenses related to hiring and training 
     additional disability claims processors and $1,250,000 is to 
     be for digitization of military service records.

[[Page 10112]]

       The conferees are concerned that effective management 
     structures and inter-agency coordination processes must be in 
     place to ensure that services of the Department of Veterans 
     Affairs are provided in a timely and efficient manner, 
     especially to returning OEF/OIF veterans. In particular, the 
     conferees are concerned about the bureaucratic process many 
     OEF/OIF veterans are encountering in transition from active 
     duty to veteran status. Therefore, the conferees have 
     included funding for the Secretary of Veterans Affairs to 
     award a grant or contract to the National Academy of Public 
     Administration, an independent, non-partisan organization, 
     which was charted by Congress to assist Federal, State, and 
     local governments in improving their effectiveness, 
     efficiency, and accountability. Such grant or contract shall 
     be to conduct a study of Department management structures in 
     place to provide health care to veterans and active duty 
     personnel of OEF/OIF, and benefits to veterans of OEF/OIF. 
     The study also should look at the organization and management 
     structure of the Department as it relates to providing health 
     care and benefits to the approximately 7.9 million veterans 
     currently enrolled in the system. The conferees direct the 
     Department to execute such grant or contract no later than 30 
     days after enactment of this Act.


                     INFORMATION TECHNOLOGY SYSTEMS

       The conferees have agreed to provide $35,100,000 for 
     Information Technology Systems, instead of $35,000,000 as 
     proposed by the House and $36,100,000 as proposed by the 
     Senate. The amount provided includes $15,100,000 for 
     electronic data breach remediation and prevention as proposed 
     by the Senate. Also included in the bill is $20,000,000 for 
     system improvements for processing OIF/OEF veterans.


                      CONSTRUCTION, MAJOR PROJECTS

       The conferees have included no funding for Construction, 
     Major Projects, as proposed by the Senate instead of 
     $23,800,000 as proposed by the House.


                      CONSTRUCTION, MINOR PROJECTS

       The conferees have agreed to provide $326,000,000 for 
     Construction, Minor Projects, instead of $260,000,000 as 
     proposed by the House and $355,907,000 as proposed by the 
     Senate. Of the amount provided, up to $36,000,000 may be used 
     for construction of polytrauma residential transitional 
     rehabilitation facilities.


                    GENERAL PROVISIONS--THIS CHAPTER

       The conferees have agreed to include a general provision 
     which directs the Congressional Budget Office to report on 
     the future funding projections for costs associated with 
     providing necessary health care to OIF/OEF veterans, as 
     proposed by the Senate.
       The conferees have not included a general provision, 
     proposed by the Senate, which would direct the Department of 
     Veterans Affairs to contract with the National Academy of 
     Public Administration for a study of management practices. 
     The conferees have included similar language in the General 
     Operating Expenses paragraph of the bill.
       The conferees have included a general provision which 
     permits the Secretary of Veterans Affairs to transfer 
     facilities to the State of Texas, as proposed by the Senate.
       The conferees have included a modified general provision, 
     proposed by the Senate, which provides for contributions to 
     the Department of Defense/Department of Veterans Affairs 
     Health Care Sharing Incentive Fund to remain available until 
     expended.

                        TITLE IV--OTHER MATTERS

                               CHAPTER 1

                       Department of Agriculture


                          FARM SERVICE AGENCY

                         SALARIES AND EXPENSES

       The conference agreement provides $37,500,000 for 'Salaries 
     and Expenses' of the Farm Service Agency instead of 
     $48,000,000 as proposed by the House and $75,000,000 as 
     proposed by the Senate.
       The conference agreement includes language that these funds 
     shall only be used for network and database/application 
     stabilization to address immediate needs identified by the 
     Department. The conferees direct the Secretary to provide a 
     monthly update to the Committees on Appropriations of the 
     House of Representatives and the Senate on the progress of 
     this project, including usage of funds as proposed by the 
     Senate.
       The conferees note that the Farm Service Agency computer 
     system that is responsible for processing payments for all 
     Farm Bill programs administered by the Farm Service Agency 
     has been experiencing periodic shutdowns due to capacity 
     overload, causing the efficiency of thousands of Farm Service 
     Agency county office employees to decrease dramatically. The 
     conferees are aware that a plan to upgrade this system is 
     being developed by USDA. The conferees direct the Secretary 
     to submit to the Committees on Appropriations of the House of 
     Representatives and the Senate, and the agriculture 
     authorizing committees of the House of Representatives and 
     the Senate a report that has been approved by the Office of 
     Management and Budget and reviewed by the Government 
     Accountability Office. The report shall include: (1) an 
     enterprise architecture; (2) an Information Technology Human 
     Capital Plan; (3) a capital investment plan for implementing 
     the enterprise architecture; (4) a description of the 
     information technology capital planning and investment 
     control process; and (5) a spending plan. The spending plan 
     shall include each specific project funded, key milestones, 
     all funding sources for each project, details of annual and 
     lifecycle costs, and projected savings or cost avoidance to 
     be achieved by the project.


                    GENERAL PROVISIONS--THIS CHAPTER

       Section 4101. The conference agreement includes language 
     regarding the Food and Drug Administration as proposed by the 
     House.
       Section 4102. The conference agreement includes language to 
     prevent the Food Safety and Inspection Service (FSIS) from 
     implementing a risk-based inspection program in any Iocation 
     until the USDA Office of the Inspector General (OIG) has 
     studied the program, including a review of the adequacy of 
     the FSIS plan for evaluating pilot projects, and reported its 
     findings to FSIS and the Committees on Appropriations of the 
     House of Representatives and the Senate; and FSIS has 
     addressed and resolved issues identified by the OIG.
       The conferees emphasize that FSIS should continue other 
     activities related to the implementation of the program, such 
     as data collection and public meetings. The conferees 
     recognize that moving forward with the risk-based inspection 
     program without comprehensive and accurate scientific data to 
     rank product risk and an unbiased system for determining 
     establishment risk would have the potential of jeopardi21ing 
     public health.
       The conference agreement does not include a rescission of 
     unobligated balances from the Trade Adjustment Assistance 
     program as proposed by the Senate.
       The conference agreement does not include language 
     regarding the implementation of the Wetlands Reserve Program 
     and the Farmland Protection Program as propose by the Senate.
       The conference agreement does not include language 
     regarding the Rural Utilities Service Guaranteed Underwriting 
     Program as proposed by the Senate.

                               CHAPTER 2


                    GENERAL PROVISIONS--THIS CHAPTER

       Section 4201. The Committee has included a provision 
     designating all Federal employees at the National Energy 
     Technology Laboratory as inherently governmental.
       Section 4202. The Committee has included a provision 
     related to the Bonneville Power Administration.

                               CHAPTER 3


                    GENERAL PROVISIONS--THIS CHAPTER

       Section 4301. The conference agreement modifies a provision 
     proposed by the House (section 4301) to amend section 
     102(a)(3)(B) of the Help America Vote Act of 2002 by striking 
     ``January 1, 2006'' and inserting ``March 1, 2008''. The 
     Senate bill did not include similar language.
       Section 4302. The conference agreement includes a provision 
     proposed by the Senate (section 3301) requiring the 
     components of the Office of National Drug Control Policy to 
     remain as they were on October 1, 2006, and requiring 
     approval of the Committees on Appropriations to implement a 
     reorganization. The House bill did not include similar 
     language.
       Section 4303. The conference agreement includes language 
     proposed by the Senate (section 3304) authorizing the 
     National Archives and Records Administration to spend fiscal 
     year 2007 funds for activities of the Public Interest 
     Declassification Board. The House bill did not include 
     similar language.
       Section 4304. The conference agreement includes language 
     proposed by the Senate (section 3307) to provide flexibility 
     to reallocate $1,000,000 in fiscal year 2007 funds for the 
     District of Columbia Courts. The House bill did not include 
     similar language.
       Sec. 4305. The conference agreement includes modified 
     language proposed by the Senate (section 3307) requiring that 
     the Treasury Department, in coordination with the Securities 
     and Exchange Commission and in consultation with the 
     Departments of State and Energy, prepare and submit a report, 
     with a classified annex as necessary, to Congress concerning 
     companies known to conduct business operations relating to 
     natural resource extraction in Sudan. The language further 
     directs the General Services Administration to notify 
     Congress of any existing Federal contracts with the 
     identified companies. The House bill did not include similar 
     language.
       Section 4306. The conference agreement modifies a provision 
     proposed by the Senate (section 3308) extending the 
     availability of $4,500,000 in fiscal year 2007 funding for 
     the General Services Administration, Office of Inspector 
     General. The House bill did not include similar language.
       Section 4307. The conference agreement includes language 
     proposed by the Senate (section 3309) which allows the 
     District of Columbia to use funds made available for foster 
     care improvements according to a spending plan submitted to 
     Congress within 60 days. The House bill did not include 
     similar language.
       The conference agreement does not include language proposed 
     as Senate section 3302 concerning funds made available in 
     section

[[Page 10113]]

     21075 of the Continuing Appropriations Resolution, 2007.
       The conference agreement does not include language proposed 
     as Senate section 3303 to make a technical correction to a 
     recipient of funds under section 613 of P.L. 109-108.
       The conference agreement does not include language proposed 
     as Senate section 3305 to require the resubmission of a 
     fiscal year 2007 spending plan by the General Services 
     Administration within 7 days.
       The conference agreement does not include language proposed 
     as Senate section 3310 to authorize a cost of living 
     adjustment for federal judges and justices for fiscal year 
     2007.

                               CHAPTER 4

                    Department of Homeland Security


                    GENERAL PROVISIONS--THIS CHAPTER

                    (INCLUDING RESCISSIONS OF FUNDS)

       Section 4401.--The conferees modify a provision proposed by 
     the Senate to address a funding shortfall in the United 
     States Coast Guard ``Retired Pay'' appropriation. The House 
     bill contains no similar provision. The conferees note that 
     estimates for this appropriation have been woefully 
     inaccurate over the past several years and direct the Coast 
     Guard to take immediate action to improve the quality and 
     reliability of the data used in its estimates. Within 45 days 
     after the date of enactment of this Act, the Coast Guard 
     shall submit a report on steps being taken to improve the 
     accuracy of its estimates for the ``Retired Pay'' 
     appropriation. In addition, the conferees direct the Coast 
     Guard to submit quarterly information to the Committees on 
     Appropriations on the use of unobligated balances made 
     available by this Act to address the projected shortfall in 
     this appropriation, as well as updated estimates for fiscal 
     year 2008.
       Sec. 4402.--The conferees modify provisions proposed by the 
     House and Senate regarding Coast Guard contracting and the 
     Integrated Deepwater Systems program.
       Sec. 4403.--The conferees include a provision proposed by 
     the Senate regarding Coast Guard's Civil Engineering Program. 
     The House bill contains no similar provision.
       Sec. 4404.--The conferees modify a provision proposed by 
     the House and rescind $30,900,000 from unobligated balances 
     made available pursuant to section 505 of Public Law 109-90. 
     The House bill rescinds $89,800,000. The Senate bill contains 
     no similar provision. The conferees note the Department's 
     poor planning and slow use of funds available pursuant to 
     section 505. In addition, to address an urgent operational 
     need, the conferees provide $30,000,000 for Coast Guard 
     ``Acquisition, Construction, and Improvements'' to help 
     mitigate the patrol boat operational gap. No additional 
     appropriation was included in either the House or Senate 
     bills. The Coast Guard is currently operating 25,000 hours, 
     or twenty-five percent, short of its needed patrol boat 
     mission hours. This ``gap'' means that undocumented migrants, 
     drugs, and other unlawful activity are less likely to be 
     intercepted by the Coast Guard. Funding provided in this 
     section is to be used to acquire four new Coastal Patrol 
     Boats, as was requested by the Department of Homeland 
     Security via official correspondence on March 11, 2007. This 
     includes the production, warranty, training, spares, 
     outfitting and project management costs for all four patrol 
     boats. The Coast Guard has indicated these new Coastal Patrol 
     Boats will partially relieve the burden on existing 110' 
     patrol boats until a replacement patrol boat can be placed in 
     service. Currently, Florida-based 110' patrol boats average 
     more than 5,500 mission hours annually which can be performed 
     by the smaller 87' Coastal Patrol Boats operating out of the 
     three primary Florida ports of Tampa, Miami and Key West. 
     This will allow the 110' patrol boats currently operating in 
     these areas to be utilized farther south where undocumented 
     migrant traffic and drug smuggling are more prevalent. In 
     addition, the conferees provide $900,000 for the Under 
     Secretary for Management to award a grant or contract to the 
     National Academy of Public Administration to compare the 
     Department of Homeland Security's reported senior career and 
     political staffing levels and senior career training programs 
     with those of similarly structured cabinet-level agencies.
       Sec. 4405.--The conferees include a provision proposed by 
     the House regarding limitations on lead system integrators. 
     The Senate bill contains no similar provision.
       The conferees do not include a provision proposed by the 
     House regarding Border Patrol checkpoints. The Senate bill 
     includes no similar provision.

                               CHAPTER 5


                    GENERAL PROVISIONS--THIS CHAPTER

       Sec. 4501 includes a technical correction to the Bureau of 
     Indian Affairs language in P.L. 110-5 as recommended by the 
     Senate in Title III, section 3501 so the Bureau may pay 
     certain contract support costs. The House had a similar 
     provision in section 4502.
       Sec. 4502 includes a technical correction to P.L. 110-5 as 
     recommended by the Senate in Title III, section 3502, to 
     allow the Indian Health Service to pay certain contract 
     support costs and transfer $7,300,000 from ``Services'' to 
     ``Facilities''. The House had a similar provision in section 
     4503.
       Sex. 4503 provides a technical correction to P.L. 110-5 
     designating the funding level for the Save America's 
     Treasures program of the National Park Service, Historic 
     Preservation Fund which was recommended by both the House and 
     the Senate.
       Sec. 4504 modifies a provision recommended by the Senate in 
     Title III, section 3504 that allows the Fish and Wildlife 
     Service to use land acquisition funds for land conservation 
     partnerships authorized by the Highlands Conservation Act of 
     2004. The House had no similar provision.
       The conference agreement does not include the proposal in 
     Senate Title II, Chapter 6, section 2601 to reauthorize the 
     Secure Rural Schools and Community Self-Determination Act of 
     2000. The conference agreement deals with this issue in Title 
     III.
       The conference agreement does not include Senate 
     recommended sections 3505, regarding the Water Environment 
     Research Foundation, and 3506 related to EPA grant funding.

                               CHAPTER 6

                Department of Health and Human Services

   National Institutes of Health, National Institute of Allergy and 
                          Infectious Diseases


                          (TRANSFER OF FUNDS)

       The conference agreement includes language proposed by the 
     House transferring $49,500,000 from the National Institutes 
     of Health, National Institute of Allergy and Infectious 
     Diseases, to the Office of the Secretary, Public Health and 
     Social Services Emergency Fund, to support advanced research 
     and development of biodefense countermeasures. This work is 
     to be conducted by the Assistant Secretary for Preparedness 
     and Response, consistent with the authority provided in the 
     Pandemic and All-Hazards Preparedness Act. The Senate 
     amendment included similar language.

                         Office of the Director


                          (transfer of funds)

       In addition to the funds transferred above, the conference 
     agreement includes language which transfers $49,500,000 from 
     the National Institutes of Health, Office of the Director, to 
     the Office of the Secretary, Public Health and Social 
     Services Emergency Fund. These funds would further increase 
     funding for advanced research and development of biodefense 
     countermeasures, consistent with the authority provided in 
     the Pandemic and All-Hazards Preparedness Act. Neither the 
     House bill nor Senate amendment included this component of 
     the advanced development transfer.

                     National Council on Disability


                         salaries and expenses

       The conference agreement includes $300,000, to remain 
     available until expended, for expenses related to meeting the 
     requirements of the Post-Katrina Emergency Management Reform 
     Act, pertaining to emergency preparedness planning to address 
     the needs of individuals with disabilities. Neither the House 
     bill nor the Senate amendment included this provision.


                    GENERAL PROVISIONS--THIS CHAPTER

              (INCLUDING TRANSFERS OF FUNDS AND RECISSION)

       Section 4601. The conference agreement includes language 
     authorizing the transfer of $7,000,000 from the Pension 
     Benefit Guaranty Corporation to the Employee Benefits 
     Security Administration (EBSA) for the development of the 
     EFAST2 electronic Form 5500 filing system, as proposed by 
     both the House bill and Senate amendment. These funds, 
     together with not less than $5,000,000 available from the 
     fiscal year 2007 appropriation for the EBSA, shall be 
     available for obligation for the EFAST2 system until 
     September 30, 2008. The House bill required that $7,500,000 
     from EBSA's fiscal year 2007 appropriation be used for the 
     EFAST2 system and allowed the funds to be available for 
     obligation for two years, while the Senate amendment proposed 
     funding of not less than $5,000,000, without extended 
     availability.
       The conferees expect EBSA to contribute an additional 
     amount of $2,500,000 from its fiscal years 2007 and 2008 
     appropriations for this system, generated by one-time cost 
     savings proposed in the last two years' budget requests. The 
     conferees also expect EBSA to minimize any potential negative 
     impact of the project's financing on enforcement activities, 
     and compliance outreach and education programs. The conferees 
     request a briefing on EBSA's plans for the EFAST2 system 
     prior to the announcement of the availability of funds for 
     its development.
       Sec. 4602. The conference agreement includes a provision 
     amending the Continuing Appropriations Resolution, 2007 that 
     designates $9,666,000 for the Women's Bureau within the 
     appropriation for ``Departmental Management, Salaries and 
     Expenses'' under the Department of Labor. Neither the House 
     bill nor the Senate amendment included this provision.
       The conferees are concerned that the progress being made by 
     International Labor Organization's International Program to 
     Eliminate Child Labor (IPEC), which is aimed at eradicating 
     the most abusive forms of child labor could be jeopardized by 
     the Department of Labor's plans not to make the United States 
     contribution to this program for FY 2007. Last May the ILO 
     reported that

[[Page 10114]]

     the number of exploited children fell by 11 percent between 
     2000 and 2004, and that the organization believes that if the 
     current pace of decline were to be sustained, the global 
     commitment to stop child labor could feasibly eliminate most 
     of the worst forms of this practice within 10 years. This is 
     a longstanding program with a unique approach that relies on 
     the obligations of ILO Member States under the requirements 
     of ILO Convention 182 on the Worst Forms of Child Labor. The 
     conferees are concerned that if the United States--the 
     largest contributor--pulls its funding commitment to this 
     program, that action would set back the global partnership 
     and have real consequences in specific countries where IPEC 
     projects are underway.
       The conferees believe the Department has the flexibility to 
     continue this program under its own procurement guidelines. 
     The conferees expect that any alternative approach should 
     yield equal or better results. Therefore, the conferees 
     direct the Department to submit a report to the Committees on 
     Appropriations of the Senate and the House of Representatives 
     that justifies any proposed approach for the use of these 
     funds by providing information to demonstrate that the 
     alternative approach will be as effective as the IPEC 
     tripartite program before any of these funds are obligated to 
     alternative entities.
       Sec. 4603. The conference agreement includes a provision 
     that designates $23,000,000 for poison control centers within 
     the appropriation for ``Health Resources and Services'' under 
     the Department of Health and Human Services. Neither the 
     House bill nor the Senate amendment included this provision. 
     The conferees direct HRSA to submit a revised operating plan 
     within fifteen days of enactment of this Act to the 
     Committees on Appropriations of the House of Representatives 
     and the Senate with respect to any changes to that plan that 
     result from this provision.
       Sec. 4604. The conference agreement rescinds $1,000,000 
     from the Office of the Secretary in the Department of Health 
     and Human Services as proposed by the Senate and deletes a 
     Senate provision pertaining to Public Law 108-406. The House 
     bill did not include these provisions.
       The conferees are concerned about delays in receiving 
     technical assistance from the Department of Health and Human 
     Services. There have been several instances in which the 
     Department has not responded to Committee requests for 
     information in a prompt, timely fashion. In addition, after 
     repeated complaints, communications between the Department 
     and the Committee staff continue to be a major problem. The 
     conferees direct the Department to expedite future 
     information requests through the Office of Resources and 
     Technology and request that the Office of Legislative Affairs 
     and the Office of Resources and Technology coordinate their 
     efforts to keep Committee staff fully informed on matters 
     concerning the Committee.
       Sec. 4607. The conference agreement includes bill language 
     permitting the Chief Executive Officer of the Corporation for 
     National and Community Service (CNCS) to transfer not more 
     than $1,360,000 from ``National and Community Services 
     Programs, Operating Expenses'' to CNCS ``Salaries and 
     Expenses'' as proposed by the Senate. The House bill did not 
     include a similar provision.
       The conferees direct that this funding be taken from the 
     Innovations, Assistance, and Other Activities budget line to 
     complete the Service Center Consolidation Plan rather than 
     the National Service Trust.
       Sec. 4608. The conference agreement includes a provision 
     proposed by the Senate modifying section 1310.12(a) of title 
     45 of the Code of Federal Regulations with respect to Head 
     Start transportation vehicles. The conferees expect that the 
     ultimate regulation governing the safety of Head Start 
     transit vehicles will be consistent with the National Highway 
     Traffic Safety Administration study on occupant protection on 
     Head Start Transit vehicles. The conferees intend the interim 
     rule to be in effect only until the Department has reviewed 
     such study and has made any necessary revisions to be 
     consistent with the study outcomes.
       The conference agreement does not include language proposed 
     by the Senate which would have created exceptions for two 
     hospitals in Minnesota and Mississippi so that they could be 
     certified as Medicare critical access hospitals. The House 
     bill contained no similar provision.
       The conference agreement does not include a provision 
     proposed by the Senate rescinding $2,000,000 from student aid 
     administration in the Department of Education and providing 
     $2,000,000 for a grant to the University of Vermont or the 
     provision also proposed by the Senate repealing the former 
     provision. The House bill did not include similar provisions.
       The conference agreement does not include a provision 
     proposed by the Senate to create an authorization of 
     appropriations for a grant to the Delta Health Alliance. The 
     House bill did not contain a similar provision.
       The conference agreement does not include a provision 
     proposed by the House extending the availability of a portion 
     of funds previously appropriated for veterans employment and 
     training activities with the Department of Labor. The Senate 
     amendment did not include this provision. The conferees agree 
     that the House provision is not needed because the Department 
     already has the authority to incur obligations for this 
     program through December 31, 2007.

                               CHAPTER 7

                           LEGISLATIVE BRANCH

                        HOUSE OF REPRESENTATIVES


      payment to widows and heirs of deceased members of congress

       The conference agreement provides $165,200 for payment to 
     Gloria W. Norwood, widow of Charles W. Norwood, late a 
     Representative from the State of Georgia, as proposed by the 
     House. Inasmuch as this item relates solely to the House, the 
     managers on the part of the Senate, at the request of the 
     managers on the part of the House, have receded to the 
     amendment of the House.

                               CHAPTER 8

                           DEPARTMENT OF STATE

                       International Commissions


              international boundary and water commission,

                        united states and mexico

                             construction.

       The conference agreement does not include an appropriation 
     to augment funding in fiscal year 2007 for the Rio Grande 
     Flood Control System Rehabilitation project, as proposed by 
     the House. The Senate included no similar provision.


                    general provisions--this chapter

       The conference agreement does not include a provision 
     proposed by the Senate (sec. 3901) concerning the United 
     States-China Economic and Security Review Commission. The 
     House bill included no similar provision.
       Sec. 4801. Technical Amendment--The conference agreement 
     includes a provision clarifying the availability of certain 
     funds in fiscal year 2007, making a technical change to the 
     composition of the Board of the Middle East Foundation and 
     clarifying the availability of funding in fiscal year 2007 
     for the Foreign Military Financing Program, as proposed by 
     the Senate. The House bill included the same provision 
     regarding the Middle Foundation.
       Sec. 4802. Funding Limitation--The conference agreement 
     includes a provision proposed by the House (sec. 4802) 
     concerning the modification of funding limitations on the 
     Department of State's Bureau of Legislative Affairs for 
     fiscal year 2007. The Senate bill included no similar 
     provision.
       The conferees direct that funding for the Bureau not exceed 
     $11,383,000, the amount requested in the fiscal year 2007 
     budget.

                               CHAPTER 9

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

             Office of Federal Housing Enterprise Oversight


                         salaries and expenses

                     (including transfer of funds)

       The conference agreement provides $6,150,000 for the Office 
     of Federal Housing Enterprise Oversight instead of $7,568,000 
     as proposed by the House and $4,800,000 as proposed by the 
     Senate. The conference agreement includes language as 
     proposed by the Senate that reduces this appropriation to 
     zero dollars through offsetting collections.


                    general provisions--this chapter

       The conference agreement includes a general provision 
     proposed by the Senate regarding a pilot program on cross-
     border trucking between the United States and Mexico. The 
     House did not include a similar provision.
       The conference agreement modifies a general provision 
     proposed by the House that allows funds provided in fiscal 
     year 2007 for the National Transportation Safety Board to be 
     used to make capital lease payments due in fiscal year 2007. 
     The Senate did not include a similar provision.
       The conference agreement includes a general provision 
     proposed by both the House and the Senate to clarify the 
     fiscal year 2007 levels of funding for the Tenant-Based 
     Rental Assistance account.
       The conference agreement includes a general provision 
     proposed by the House to allow housing projects subsidized 
     with project-based certificates to be renewed under the 
     Project-Based Rental Assistance program. The Senate did not 
     include a similar provision.
       The conference agreement does not include a provision 
     proposed by the House making a technical change to a proviso 
     regarding the ``Moving to Work'' program.
       The conference agreement does not include a provision 
     proposed by the Senate regarding asset-based management 
     because the Department of Housing and Urban Development has 
     administratively changed the compliance date to October 1, 
     2007.

                                TITLE V

                        Agricultural Assistance

       The conferees direct the Secretary to adhere to all 
     existing federal statutes, program regulations, executive 
     orders and program guidance or directives to ensure that 
     compensation is provided only where appropriate and allowed 
     under such reglations, orders or

[[Page 10115]]

     guidance and that the integrity of the program is maintained 
     without exception.
       Section. 5101. The conference agreement includes language 
     regarding Crop Disaster Assistance providing financial 
     assistance to producers on a farm who incurred qualifying 
     quantity or quality losses for a 2005, 2006 or 2007 crop 
     before February 28, 2007 due to damaging weather or any 
     related condition.
       The conference agreement does not include a separate 
     provision for sugar beet and sugar cane disaster assistance 
     as proposed by the Senate. Qualifying losses are covered 
     under the Crop Disaster Assistance provision.
       Sec. 5102. The conference agreement includes language 
     providing financial assistance through the Livestock 
     Compensation Program and the Livestock Indemnity Program for 
     livestock losses and livestock indemnity payments to 
     producers on farms that have incurred livestock losses 
     between January 1, 2005 and February 28, 2007.
       Sec. 5103. The conference agreement provides $20,000,000 
     for the Emergency Conservation Program as proposed by the 
     House instead of $35,000,000 as proposed by the Senate.
       The conference agreement does not include a separate 
     provision for the tree assistance program as proposed by the 
     Senate. Qualifying losses are covered under the Emergency 
     Conservation Program provision.
       Sec. 5104. The conference agreement includes language 
     regarding payment limitations.
       Sec. 5105. The conference agreement includes provisions 
     regarding the administration of the foregoing sections.
       Sec. 5106. The conference agreement includes language 
     regarding the National Dairy Market Loss Payment program.
       Sec. 5107. The conference agreement provides $20,000,000 
     instead of $95,000.00 as proposed by the Senate for payments 
     to dairy producers for losses in counties designated as 
     disaster areas.
       Sec. 5108. The conference agreement includes language to 
     clarify the use of claims adjustors.
       Sec. 5109. The conference agreement does not provide 
     funding for the Small Business Economic Loss Grant Program. 
     Instead, the conference agreement provides $21,000,000 to 
     carry out activities authorized under section 2281 of the 
     Food, Agriculture, Conservation and Trade Act of 1990 (42 
     U.S.C. 5177a) to provide emergency grants to assist low-
     income migrant and seasonal farmworkers. The conferee are 
     aware that storms and other natural disasters have caused 
     serious disruption to local economies and individuals who are 
     involved in agriculture but will not otherwise qualify for 
     assistance under this title.
       Sec. 5110. The conference agreement includes language 
     regarding the Conservation Security Program as proposed by 
     the Senate. In fiscal year 2007, producers hold previously 
     executed contracts with the Department of Agriculture on 
     which they have relied for undertaking various conservation 
     measures. As a consequence of current federal funding levels, 
     many producers will be unable this fiscal year to recover 
     costs already incurred that are associated with their 
     contract performance. The conference agreement will allow the 
     Department of Agriculture to meet the intended outcome of 
     contracts executed between the Department and the affected 
     producers, and to take other measures as appropriate under 
     existing authorities.
       Sec. 5111. The conference agreement provides $30,000,000, 
     as proposed by the Senate, to cover necessary costs related 
     to the administration of programs, of which $8,500,000, as 
     identified by the Farm Service Agency, is for information 
     technology upgrades to assist in carrying out the 
     agricultural disaster assistance provisions of this title.
       Sec. 5112. The conference agreement includes language to 
     clarify participation in a crop Insurance pilot program.
       The conference agreement does not provide funding for fresh 
     spinach growers and first handlers as proposed by the House.
       The conference agreement does not include language 
     regarding payments to fresh spinach growers and first 
     handlers as proposed by the Senate.
       The conference agreement does not provide funding for the 
     peanut storage costs program as proposed by the House.
       The conference agreement does not provide funding for 
     aquaculture losses as proposed by the House.
       The conference agreement does not provide funding for 
     flooded crop and grazing land as proposed by the Senate.
       The conference agreement does not provide funding for 
     insect infestations as proposed by the Senate.

                                TITLE VI

            Elimination of SCHIP shortfall and other Matters

                Department of Health and Human Services


               centers for medicare and medicaid services

                 state children's health insurance fund

       The conference agreement includes an appropriation of 
     $650,000,000 to eliminate anticipated State Children's Health 
     Insurance Program (SCHIP) funding shortfalls for fiscal year 
     2007 for 14 States. The House bill provided $750,000,000; the 
     Senate amendment included an appropriation of such sums as 
     necessary.
       Sec. 6001. The conference agreement includes language 
     similar to provisions in both the House bill and Senate 
     amendment which amend the authorizing law to describe the 
     States considered to be in shortfall.
       Sec. 6002. The conference agreement includes language which 
     prohibits the Secretary of the Department of Health and Human 
     Services from taking action in the next year to finalize or 
     otherwise implement a proposed regulation affecting the 
     Medicaid program or any regulation restricting payments for 
     graduate medical education under the Medicaid progam. The 
     Senate amendment had similar language prohibiting 
     implementation of the rules for two years. The House bill did 
     not contain a similar provision.
       The bill includes a provision to offset the estimated cost 
     of blocking the Medicaid rules in this section. This 
     provision: (1) requires States, as a condition of receiving 
     Federal matching funds in Medicaid, to require all providers 
     to use tamper-proof prescription drug pads when writing 
     prescriptions for Medicaid beneficiaries; and (2) extends 
     certain Pharmacy Plus waivers under the Medicaid program. The 
     Senate amendment contained a different offset, which 
     increased the required rebate for drugs sold through the 
     Medicaid program. The House bill contained no similar 
     provision.

                               TITLE VII

                    Fair Minimum Wage and Tax Relief


                     Subtitle A--Fair Minimum Wage

       The conference agreement includes provisions to increase 
     the Federal minimum wage in the United States to $7.25 an 
     hour over two years as proposed by both the House and the 
     Senate. The conference agreement also provides for Federal 
     minimum wage increases of $0.50 per hour, beginning 60 days 
     after enactment, and annually thereafter, in the Commonwealth 
     of the Northern Mariana Islands and American Samoa, until 
     their minimum wage reaches that of the United States. In 
     addition, the agreement requires that the Department of 
     Labor, through the Bureau of Labor Statistics, transmit a 
     report to Congress assessing the impact of wage increases in 
     the Commonwealth of the Northern Mariana Islands and American 
     Samoa not later than 32 months after enactment.
       The House bill included a phased increase of $0.50 upon 
     enactment, and $1.00 annually thereafter, in the Federal 
     minimum wage for both the Commonwealth of the Northern Manana 
     Islands and American Samoa until their minimum wage reaches 
     that of the United States, while the Senate amendment 
     provided a phased increase of $0.50 upon enactment, and $1.00 
     annually thereafter, in the Federal minimum wage for the 
     Commonwealth of the Northern Mariana Islands, but no increase 
     in American Samoa.


                 Subtitle B--Small Business Incentives

       The conference agreement modifies small business and work 
     opportunity provisions in the Senate amendment that provide 
     enhanced compliance assistance for small businesses, 
     authorize a program for small business child care grants at 
     the Department of Health and Human Services, require a study 
     on certain aspects of the Earned Income Tax Credit, authorize 
     renewal grants for women's business centers, and require a 
     report under the Buy American Act. The House bill did not 
     contain similar provisions.


                               Subtitle C

                     Small Business Tax Incentives

       The conference agreement modifies provisions in the House 
     bill and Senate amendment regarding small business 
     incentives. The conference agreement extends the Work 
     Opportunity Tax Credit (``WOTC'') through August 31, 2011, 
     later than the House proposed but sooner than the Senate 
     proposed. The conference agreement expands WOTC to include 
     more veterans with service-connected disabilities, ``high 
     risk youth,'' and employees in ``outward migration 
     counties.'' The House and the Senate had proposed various 
     enhancements.
       The conference agreement enhances the tip credit for 
     certain small businesses by freezing the minimum wage level 
     for purposes of calculating the credit. The House had similar 
     language, but the Senate did not.
       The conference agreement permanently waives both individual 
     and corporate alternative minimum tax limitations on WOTC and 
     tip credits. The House had similar language, but the Senate 
     did not.
       The conference agreement extends small business expensing 
     under section 179 through 2010 and increases the expensing 
     limit from the current $112,000 to $125,000, as the House had 
     proposed. The Senate had similar language.
       The conference agreement extends and expands several tax 
     provisions affecting Gulf Opportunity Zones affected by 
     hurricanes Katrina, Rita and Wilma. The agreement modifies 
     language proposed by the Senate. The House did not include 
     similar language.
       The conference agreement makes several changes to the 
     treatment of Subchapter S corporations. The Senate had 
     proposed similar language. The House did not include similar 
     language.
       The conference agreement raises the age of children whose 
     unearned income is taxed as their patents' income. The House 
     and Senate both had similar language.

[[Page 10116]]

       The conference agreement modifies IRC section 6404(g) which 
     provides for suspension of interest and certain penalties, 
     from the current 18 months after filing to 36 months. The 
     House had proposed 22 months and the Senate had proposed 
     repeal of suspensions.
       The conference agreement increases the penalty for bad 
     checks and money orders, creates a new penalty on claims for 
     refunds filed without any reasonable basis, and expands the 
     penalties on tax return preparers. Both House and Senate 
     proposed similar language.
       The conference agreement increases the estimated tax 
     payments due July through September, 2012 for corporations 
     with assets in excess of $l billion. The House had similar 
     language, but the Senate did not.


                           CONTRACTING REFORM

       The conference agreement does not include language proposed 
     by the House (as title V of the House bill) relating to 
     federal contracting reform.


                 NOTIFICATION OF EMERGENCY LEGISLATION

       The congressional budget resolution (H. Con. Res. 95) 
     agreed to by Congress for fiscal year 2006, and both the 
     House and Senate versions of the congressional budget 
     resolution for fiscal year 2007 include provisions relating 
     to the notification of emergency spending. These provisions 
     require a statement of how the emergency provisions contained 
     in the conference agreement meet the criteria for emergency 
     spending as identified in the budget resolution.
       The conference agreement contains emergency funding for 
     fiscal year 2007 for the global war on terror, hurricane 
     recovery in the gulf coast region, emerging threats to 
     homeland security, pandemic influenza prevention, unmet 
     veterans' healthcare needs, and agriculture disaster relief. 
     The funding is related to unanticipated needs and is for 
     situations that are sudden, urgent, and unforeseen, 
     specifically the global war on terror and thy hurricanes of 
     2005. These needs meet the criteria for emergencies.


                                EARMARKS

       Pursuant to clause 9 of rule XXI of the Rules of the House 
     of Representatives, this conference report contains no 
     congressional earmarks, limited tax benefits, or limited 
     tariff benefits as defined in clause 9(d), 9(e), or 9(f) of 
     rule XXI.

                   Conference Total--With Comparisons

       The total new budget (obligational) authority for the 
     fiscal year 2007 recommended by the Committee of Conference, 
     comparisons to the 2007 budget estimates, and the House and 
     Senate bills for 2007 follow:

                       (In thousands of dollars)

Budget estimates of new (obligational) authority, fiscal yea103,015,427
House bill, fiscal year 2007................................124,315,636
Senate bill, fiscal year 2007...............................122,807,084
Conference agreement, fiscal year 2007......................124,173,007
Conference agreement compared with:
    Budget estimates of new (obligational) authority, fiscal+21,157,580
    House bill, fiscal year 2007...............................-142,629
    Senate bill, fiscal year 2007............................+1,365,923

     David R. Obey,
     Rosa L. DeLauro,
     John P. Murtha,
     Peter J. Visclosky,
     Nita Lowey,
     Carolyn Kilpatrick,
     Norman D. Dicks,
     Chet Edwards,
     Alan B. Mollohan,
     John Olver,
     Jose E. Serrano,
     Debbie Wasserman Schultz,
     James E. Clyburn,
                                Managers on the Part of the House.

     Robert C. Byrd,
     Daniel K. Inouye,
     Patrick J. Leahy,
     Tom Harkin,
     Barbara A. Mikulski,
     Herb Kohl,
     Patty Murray,
     Byron L. Dorgan,
     Dianne Feinstein,
     Richard J. Durbin,
     Tim Johnson,
     Mary L. Landrieu,
     Jack Reed,
     Frank R. Lautenberg,
     Ben Nelson,
     Managers on the Part of the Senate.

                          ____________________