Paper Ballot Act of 2006 - Amends the Help America Vote Act of 2002 to require a state, for a regularly scheduled general election for President and Vice President, to: (1) conduct the election using only paper ballots; and (2) ensure that the number of ballots cast at a precinct or equivalent location which are placed inside a single box or similar container does not exceed 500.
Requires the ballots cast at a precinct or equivalent location to be counted by hand by election officials at the precinct. Allows a representative of each political party with a candidate on the ballot, as well as any interested member of the public, to observe the officials as they count the ballots.
Amends federal law to move observation of Washington's Birthday to Election Day during presidential election years.