To express the sense of Congress on the transition of the missions of United States Forces in Iraq to a more limited set of missions as specified by the President on September 13, 2007.

TEXT OF AMENDMENTS

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

In division C, strike section 134.
______

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

On page 806, line 16, strike ``$666,087,000'' and insert
``$751,087,000''.
On page 806, line 20, strike ``$103,921,000'' and insert
``$188,921,000''.
On page 822, between lines 18 and 19, insert the following:
Sec. __.  Notwithstanding any other provision of this Act,
amounts appropriated in this Act for the administration and
related expenses for the departmental management of the
Department of Labor, the Department of Health and Human
Services, and the Department of Education shall be reduced by
a pro rata percentage required to reduce the total amount
appropriated in this Act by $85,000,000.
______

SA 3872. Mr. GRAHAM submitted an amendment intended to be proposed by
him to the bill H.R. 2764, making appropriations for the Department of
State, foreign operations, and related programs for the fiscal year
ending September 30, 2008, and for other purposes; which was ordered to
lie on the table; as follows:

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

[[Page S15927]]

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

SA 3873. Mr. WARNER (for himself and Ms. Mikulski, Mr. Graham, Mr.
Gregg, Mr. Leahy, Mr. Sununu, Mr. Barrasso, and Mr. Voinovich)
submitted an amendment intended to be proposed by him to the bill H.R.
2764, making appropriations for the Department of State, foreign
operations, and related programs for the fiscal year ending September
30, 2008, and for other purposes; which was ordered to lie on the
table; as follows:

At the appropriate place, insert the following:

SEC. __. SMALL AND SEASONAL BUSINESSES.

(a) Short Title.--This section may be cited as the ``Save
our Small and Seasonal Businesses Act of 2007''.
(b) In General.--Section 214(g)(9)(A) of the Immigration
and Nationality Act (8 U.S.C. 1184(g)(9)(A)) is amended, by
striking ``an alien who has already been counted toward the
numerical limitation of paragraph (1)(B) during fiscal year
2004, 2005, or 2006 shall not again be counted toward such
limitation during fiscal year 2007.'' and inserting ``an
alien who has been present in the United States as an H-2B
nonimmigrant during any 1 of the 3 fiscal years immediately
preceding the fiscal year of the approved start date of a
petition for a nonimmigrant worker described in section
101(a)(15)(H)(ii)(b) shall not be counted toward such
limitation for the fiscal year in which the petition is
approved.''.
(c) Effective Date.--The amendment made by subsection (b)
shall be effective during the 1-year period beginning on
October 1, 2007.
______

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

Strike Division L and insert the following:

DIVISION L--SUPPLEMENTAL APPROPRIATIONS, DEFENSE

TITLE I--MILITARY PERSONNEL

MILIARY PERSONNEL

Military Personnel, Army

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

Military Personnel, Navy

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

Military Personnel, Marine Corps

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

Military Personnel, Air Force

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

TITLE II--OPERATION AND MAINTENANCE

OPERATION AND MAINTENANCE

Operation and Maintenance, Army

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

Operation and Maintenance, Navy

(including transfers of funds)

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

Operation and Maintenance, Marine Corps

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

Operation and Maintenance, Air Force

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

Operation and Maintenance, Defense-Wide

For an additional amount for ``Operation and Maintenance,
Defense-Wide'', $2,116,950,000, of which up to $300,000,000,
to remain available until expended, may be used for payments
to reimburse Pakistan, Jordan, and other key cooperating
nations, for logistical, military, and other support
provided, or to be provided, to United States military
operations, notwithstanding any other provision of law:
Provided, That such payments may be made in such amounts as
the Secretary of Defense, with the concurrence of the
Secretary of State, and in consultation with the Director of
the Office of Management and Budget, may determine, in his
discretion, based on documentation determined by the
Secretary of Defense to adequately account for the support
provided, and such determination is final and conclusive upon
the accounting officers of the United States, and 15 days
following notification to the appropriate congressional
committees: Provided further, That the Secretary of Defense
shall provide quarterly reports to the congressional defense
committees on the use of funds provided in this paragraph.

Operation and Maintenance, Army Reserve

For an additional amount for ``Operation and Maintenance,
Army Reserve'', $77,736,000.

Operation and Maintenance, Navy Reserve

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

Operation and Maintenance, Marine Corps Reserve

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

Operations and Maintenance, Air Force Reserve

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

Operation and Maintenance, Army National Guard

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

Operation and Maintenance, Air National Guard

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

Iraq Freedom Fund

(including transfer of funds)

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

Afghanistan Security Forces Fund

(including transfer of funds)

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

Iraq Security Forces Fund

(including transfer of funds)

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

[[Page S15928]]

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

Joint Improvised Explosive Device Defeat Fund

(including transfer of funds)

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

TITLE III--PROCUREMENT

PROCUREMENT

Aircraft Procurement, Army

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

Procurement of Weapons and Tracked Combat Vehicles, Army

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

Procurement of Ammunition, Army

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

Other Procurement, Army

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

Aircraft Procurement, Navy

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

Procurement of Ammunition, Navy and Marine Corps

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

Other Procurement, Navy

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

Procurement, Marine Corps

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

Aircraft Procurement, Air Force

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

Other Procurement, Air Force

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

Procurement, Defense-Wide

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

TITLE IV--REVOLVING AND MANAGEMENT FUNDS

REVOLVING AND MANAGEMENT FUNDS

Defense Working Capital Funds

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

TITLE V--OTHER DEPARTMENT OF DEFENSE PROGRAMS

OTHER DEPARTMENT OF DEFENSE PROGRAMS

Defense Health Program

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

Drug Interdiction and Counter-Drug Activities, Defense

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

TITLE VI--GENERAL PROVISIONS

GENERAL PROVISIONS

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

(TRANSFER OF FUNDS)

Sec. 603.  Upon the determination of the Secretary of
Defense that such action is necessary in the national
interest, the Secretary may transfer between appropriations
up to $4,000,000,000 of the funds made available to the
Department of Defense in this division: Provided, That the
Secretary shall notify the Congress promptly of each transfer
made pursuant to the authority in this section: Provided
further, That the authority provided in this section is in
addition to any other transfer authority available to the
Department of Defense.
Sec. 604.  Funds appropriated in this division, or made
available by the transfer of funds in or pursuant to this
division, for intelligence activities are deemed to be
specifically authorized by the Congress for purposes of
section 504 of the National Security Act of 1947 (50 U.S.C.
414).
Sec. 605.  None of the funds provided in this division may
be used to finance programs or activities denied by Congress
in fiscal years 2007 or 2008 appropriations to the Department
of Defense or to initiate a procurement or research,
development, test and evaluation new start program without
prior written notification to the congressional defense
committees.
Sec. 606. (a) Availability of Funds for CERP.--From funds
made available in this division to the Department of Defense,
not to exceed $500,000,000 may be used, notwithstanding any
other provision of law, to fund the Commander's Emergency
Response Program, for the purpose of enabling military
commanders in Iraq to respond to urgent humanitarian relief
and reconstruction requirements within their areas of
responsibility by carrying out programs that will immediately
assist the Iraqi people, and to fund a similar program to
assist the people of Afghanistan.
(b) Quarterly Reports.--Not later than 15 days after the
end of each fiscal year quarter (beginning with the first
quarter of fiscal year 2008), the Secretary of Defense shall
submit to the congressional defense committees a report
regarding the source of funds and the allocation and use of
funds during that quarter that were made available pursuant
to the authority provided in this section or under any other
provision of law for the purposes of the programs under
subsection (a).
Sec. 607.  During the current fiscal year, funds available
to the Department of Defense for operation and maintenance
may be used, notwithstanding any other provision of law,

[[Page S15929]]

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

SA 3875. Mr. FEINGOLD (for himself, Mr. Reid, Mr. Leahy, Mr. Dodd,
Mrs. Boxer, Mr. Kennedy, Mr. Kerry, Mr. Harkin, Mr. Whitehouse, Mr.
Wyden, Mr. Durbin, Mr. Schumer, Mr. Obama, Mr. Sanders, Mr. Menendez,
Mr. Lautenberg, Mr. Brown, and Mrs. Clinton) proposed an amendment to
amendment SA 3874 proposed by Mr. McConnell (for himself, Mr.
Lieberman, Mr. Inouye, Mr. Stevens, Mr. Cochran, and Mr. Warner) to the
bill H.R. 2764, making appropriations for the Department of State,
foreign operations, and related programs for the fiscal year ending
September 30, 2008, and for other purposes; as follows:

At the appropriate place, insert the following:

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

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

SA 3876.  Mr. LEVIN (for himself, Mr. Reed, Mr. Voinovich, Mr. Hagel,
Ms. Snowe, Mr. Reid, and Mr. Salazar, proposed an amendment to
amendment

[[Page S15930]]

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

At the appropriate place, insert the following:
Sec.__. It is the sense of Congress that the missions of
the United States Armed Forces in Iraq should be transitioned
to the more limited set of missions laid out by the President
in his September 13, 2007, address to the Nation, that is, to
counterterrorism operations and training, equipping, and
supporting Iraqi forces, in addition to the necessary mission
of force protection, with the goal of completing that
transition by the end of 2008.
______

SA 3877. Mr. REID proposed an amendment to the bill H.R. 2764, making
appropriations for the Department of State, foreign operations, and
related programs for the fiscal year ending September 30, 2008, and for
other purposes; as follows:

At the end of the amendment add the following:

SECTION 1. SHORT TITLE, ETC.

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

Sec. 1. Short title, etc.

TITLE I--INDIVIDUAL TAX RELIEF

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

TITLE II--REVENUE PROVISIONS

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

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

Subtitle B--Codification of Economic Substance Doctrine

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

Subtitle C--Other Provisions

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

TITLE I--INDIVIDUAL TAX RELIEF

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

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

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

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

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

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

SEC. 104. REFUNDABLE CHILD CREDIT.

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

TITLE II--REVENUE PROVISIONS

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

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

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

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

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

[[Page S15931]]

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

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

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

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

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

Subtitle B--Codification of Economic Substance Doctrine

SEC. 211. CODIFICATION OF ECONOMIC SUBSTANCE DOCTRINE.

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

SEC. 212. PENALTIES FOR UNDERPAYMENTS.

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

[[Page S15932]]

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

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

``(ii) Specified large corporation.--

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

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

Subtitle C--Other Provisions

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

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

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

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

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

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

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

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

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

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

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

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

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

The percentage under subparagraph (B) of section 401(1) of
the Tax Increase Prevention and Reconciliation Act of 2005 in
effect on the date of the enactment of this Act is increased
by 52.5 percentage points.
______

SA 3878. Ms. SNOWE (for herself, Mr. Sununu, Mr. Dodd, Mr. Gregg, Ms.
Collins, Mr. Lieberman, Mr. Reed, and Mr. Whitehouse) submitted an
amendment intended to be proposed by her to the bill H.R. 2764, making
appropriations for the Department of State, foreign operations, and
related programs for the fiscal year ending September 30, 2008, and for
other purposes; which was ordered to lie on the table; as follows:

On page 14, beginning in line 23, strike ``fishery.'' and
insert ``fishery: Provided further, That, of the funds
provided, not less than $15,000,000 in the aggregate is
provided to Connecticut, Maine, New Hampshire, and Rhode
Island for the alleviation of economic impacts associated
with Amendment 13 and subsequent Framework adjustments,
including Framework 42.''.
______

SA 3879. Mr. CARDIN (for himself, Mr. Warner, Ms. Mikulski, and Mr.
Webb) submitted an amendment intended to be proposed by him to the bill
H.R. 2764, making appropriations for the Department of State, foreign
operations, and related programs for the fiscal year ending September
30, 2008, and for other purposes; as follows:

At the appropriate place, insert the following:

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

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

[[Page S15933]]

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

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

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

[[Page S15934]]

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

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

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

SA 3880. Mr. PRYOR (for Mr. Biden) proposed an amendment to the
resolution S. Res. 279, expressing the sense of the Senate regarding
the 125th anniversary of the 1882 Treaty of Peace, Amity, Commerce and
Navigation between the Kingdom and Chosun (Korea) and the United
States; as follows:

On page 4, strike lines 4 through 10 and insert the
following:
``(2) the economic relationship, highlighting the vibrancy
and diversity of the common interests of the United States
and the Republic of Korea, should be broadened and
deepened;''.
On page 5, lines 4 and 5, strike ``and support for
peacekeeping'' and insert ``, support for peacekeeping, and
protection of the environment''.
______

SA 3881. Mr. PRYOR (for Mr. Nelson of Florida) proposed an amendment
to the concurrent resolution S. Con. Res. 53, condemning the kidnapping
and hostage-taking of 3 United States citizens for over 4 years by the
Revolutionary Armed Forces of Colombia (FARC), and demanding their
immediate and unconditional release; as follows:

Strike ``on July 25, 2003'' and all that follows in the
eighth whereas clause of the preamble and insert ``in a
videotape seized by the Government of Colombia and aired on
November 30, 2007;''.
______

SA 3882. Mr. PRYOR (for Mr. Feingold) proposed an amendment to the
bill S. 2135, to prohibit the recruitment or use of child soldiers, to
designate persons who recruit or use child soldiers as inadmissible
aliens, to allow the deportation of persons who recruit or use child
soldiers, and for other purposes; as follows:

On page 4, line 7, insert after ``state-sponsored'' the
following: ``, excluding any group assembled solely for non-
violent political association''.
______

SA 3883. Mr. PRYOR (for Mr. Biden) proposed an amendment to the
resolution S. Res. 279, expressing the sense of the Senate regarding
the 125th anniversary of the 1882 Treaty of Peace, Amity, Commerce and
Navigation between the Kingdom and Chosun (Korea) and the United
States; as follows:

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

____________________