[Congressional Record Volume 142, Number 57 (Tuesday, April 30, 1996)]
[House]
[Pages H4187-H4287]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  CORRECTION OF THE CONGRESSIONAL RECORD OF THURSDAY, APRIL 25, 1996--
 CONFERENCE REPORT ON H.R. 3019, BALANCED BUDGET LOAN DOWN PAYMENT ACT

     For consideration of the House Bill (except for section 
     101(c)) and the Senate amendment (except for section 101(d)), 
     and modifications committed to conference:
     Bob Livingston,
     John Myers,
     Bill Young,
     Ralph Regula,
     John Edward Porter,
     Hal Rogers,
     Joe Skeen,
     Frank R. Wolf,
     Barbara Vucanovich,
     Jim Lightfoot,
     Sonny Callahan,
     James T. Walsh,
     David R. Obey,
     Louis Stokes,
     Tom Bevill,
     John P. Murtha,
     Charles Wilson,
     Bill Hefner,
     Alan Mollohan,
     For consideration of section 101(c) of the House bill, and 
     section 101(d) of the Senate amendment, and modifications 
     committed to conference:
     John Edward Porter,
     Bill Young,
     Ernest Istook,
     Dan Miller,
     Jay Dickey,
     Frank Riggs,
     Roger F. Wicker,
     Bob Livingston,
     David R. Obey,
     Louis Stokes,
     Steny Hoyer,
     Nancy Pelosi,
     Nita M. Lowey,
                                Managers on the Part of the House.

     Mark O. Hatfield,
     Ted Stevens,
     Thad Cochran,
     Arlen Specter,
     Pete V. Domenici,
     Christopher S. Bond,
     Slade Gorton,
     Mitch McConnell,
     Connie Mack,
     Richard C. Shelby,
     James M. Jeffords,
     Robert F. Bennett,
     Ben Nighthorse Campbell,
     Robert Byrd,
     Daniel K. Inouye,
     Fritz Hollings,
     J. Bennett Johnston,
     Patrick J. Leahy,
     Dale Bumpers,
     Frank R. Lautenberg,
     Tom Harkin,
     Barbara A. Mikulski,
     Harry Reid,
     J. Robert Kerrey,
     Patty Murray,
                               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 vote of the two Houses on the 
     amendment of the Senate to the bill (H.R. 3019) making 
     appropriations for fiscal year 1996 to make a further 
     downpayment toward a balanced budget, 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 
     report.
       Report language included by the Senate in the report 
     accompanying S. 1594 (S. Rept. 104-236) which is not changed 
     by the conference are approved by the committee of 
     conference. 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.

 TITLE I--OMNIBUS APPROPRIATIONS DEPARTMENTS OF COMMERCE, JUSTICE, AND 
               STATE, THE JUDICIARY, AND RELATED AGENCIES

       Sec. 101.(a).--The text of the language included under 
     section 101(a) of this conference agreement represents the 
     final agreement on appropriations for the Departments of 
     Commerce, Justice, and State, the Judiciary, and Related 
     Agencies for fiscal year 1996, with the exception of those 
     Department of Justice General Provisions that were enacted 
     into law in Public Law 104-99. It marks the end of the 
     process that began with H.R. 2076, reported by the House 
     Committee on Appropriations (H. Rep. 104-196) on July 19, 
     1995, and passed by the House on July 26, 1995. The bill was 
     then reported by the Senate Committee on Appropriations (S. 
     Rep. 104-139) on September 12, 1995, and passed by the Senate 
     on September 29, 1995. The conference report (H. Rep. 104-
     378, * print) was filed on December 1, 1995, and adopted in 
     the House on December 6, 1995, and in the Senate on December 
     7, 1995. The President vetoed the bill on December 19, 1995, 
     and on January 3, 1996, although a majority of the House 
     voted for the conference report, the House did not override 
     the veto by the required two-thirds vote. Since that time, 
     funding for many of the programs in this bill has been 
     provided on a temporary basis, although a number of critical 
     law enforcement, judicial, consular, diplomatic security, and 
     small business programs were provided full-year spending 
     authority. While this conference agreement includes the full 
     text of the fiscal year 1996 Commerce, Justice, and State, 
     the Judiciary, and Related Agencies appropriations bill, with 
     the exception noted above, much of the language is identical 
     to the language included in the conference report on H.R. 
     2076. As a result, only the changes from the conference 
     report on H.R. 2076 are addressed in the statement of 
     managers that follows. With the exceptions that follow, the 
     statement of managers in the conference report on H.R. 2076 
     (H. Rep. 104-378, * print) and the applicable portions of the 
     House and Senate reports on H.R. 2076, remain controlling and 
     are incorporated by reference.

                         DEPARTMENT OF JUSTICE

                         General Administration


                         salaries and expenses

       The conference agreement includes $74,282,000 for General 
     Administration, as provided in both the House and Senate 
     bills. The conference agreement also includes a provision 
     that modifies the language, proposed in the House bill and 
     not included in the Senate bill, that limits the number of 
     positions and amounts for the Department Leadership program. 
     The conference agreement does not limit funding under the 
     Department Leadership program to the Offices of the Attorney 
     General and the Deputy Attorney General, as proposed in the 
     House bill. The Senate bill did not include this provision.


                         counterterrorism fund

       The conference agreement includes $16,898,000 for the 
     Counterterrorism Fund, as provided in both the House and 
     Senate bills. The conferees understand that balances of 
     $24,445,000 remain available from the 1995 Supplemental 
     Appropriation, Public Law 104-19, for authorized purposes of 
     this Fund. The Senate bill included a provision in Title III 
     which designated $7,000,000 for emergency expenses to enhance 
     Federal Bureau of Investigation (FBI) efforts in the United 
     States to combat Middle Eastern terrorism, including efforts 
     to prevent fundraising in the United States on the behalf of 
     organizations that support terrorism to undermine the peace

[[Page H4188]]

     process. These funds would have been available only pursuant 
     to an official budget request that declares the funds to be 
     an emergency.
       The conferees support the purposes set forth in the Senate 
     amendment. However, the conferees have not included the 
     emergency appropriation for the FBI proposed by the Senate 
     because the conferees were informed that the Department of 
     Justice did not plan to submit an emergency request for 
     funding as required by the Senate bill and the Department of 
     Justice currently has sufficient funding available to enhance 
     the FBI's efforts to combat the flow of dollars to support 
     Middle Eastern terrorism. The conferees note that there are 
     funding balances available in the Department of Justice 
     Counterterrorism Fund which can be applied to this effort. 
     Accordingly, the Attorney General is directed to submit a 
     proposal by May 15, 1996 to the House and Senate Committees 
     on Appropriations to reprogram no less than $4,000,000 in 
     funds from the Counterterrorism Fund to enable the FBI to 
     carry out enhanced efforts in the United States to combat 
     Middle Eastern terrorism, and specifically to enhance FBI 
     efforts to prevent fundraising on behalf of organizations 
     that promote terrorism.

                            Legal Activities


         salaries and expenses, united states marshals service

       The conferees are concerned about growing detention needs 
     identified by the Marshals Service in many areas of the 
     country. The conferees understand that the General Services 
     Administration is planning a shared-use detention facility 
     adjacent to the new courthouse in Portland, Oregon, and 
     expect the Department of Justice to fully cooperate in this 
     planning effort.


           salaries and expenses, community relations service

       The conference agreement provides $5,319,000 for the 
     Community Relations Service (CRS) as proposed by both the 
     House and Senate. The conferees have also agreed to include a 
     provision added by the Senate, which allows the transfer of 
     additional amounts, pursuant to reprogramming requirements 
     under section 605, if the Attorney General determines that 
     emergent circumstances require additional funding for 
     conflict prevention and resolution activities. The language 
     included in the Senate bill has been modified to assure that 
     the transfer will not be subject to limitations that apply to 
     other Department of Justice transfers.

                    Federal Bureau of Investigation


                         salaries and expenses

                     (including transfer of funds)

       The conference agreement includes $2,407,483,000 as 
     proposed by both the House and Senate. Of the amount in the 
     House and Senate bills, $9,500,000 was provided for the FBI 
     to purchase DNA equipment for State and local forensic 
     laboratories. The conferees have agreed to expand the allowed 
     use of these funds, and make up to the full $9,500,000 
     available for a new State Identification Grants project which 
     would allow States to purchase computerized identification 
     systems that are compatible and integrated with the National 
     Crime Information Center and the Integrated Automated 
     Fingerprint Identification Systems of the FBI. Funds would 
     only be available for this new purpose upon enactment of an 
     authorization. The Senate bill, in section 118, included the 
     authorization and funding for this program. The House bill 
     did not contain a provision on this matter.
       The conferees have also included a technical change to 
     clarify that funds provided for the Department of Justice 
     Working Capital Fund to support the NCIC 2000 project are in 
     addition to funds provided under this heading.

                    Drug Enforcement Administration


                         salaries and expenses

       The conference agreement includes $810,168,000 for the 
     salaries and expenses of the Drug Enforcement Administration 
     (DEA) as proposed by the Senate, instead of $805,688,000 as 
     proposed by the House. The additional funds are to support 
     DEA's enforcement activities on the Southwest border and in 
     rural communities.

                 Immigration and Naturalization Service


                         salaries and expenses

       The conference agreement includes a technical change to 
     amounts made available through fiscal year 1997, to reflect a 
     bipartisan, bicameral agreement with the Administration on 
     INS training and hiring priorities for fiscal year 1996, as 
     proposed by both the House and Senate bills. The conference 
     agreement also corrects a technical error in the amounts 
     allocated under the Violent Crime Reduction Trust Fund, as 
     proposed by both the House and Senate bills.
       Realignment of Border Patrol positions from interior 
     stations.--The conferees are concerned with the manner in 
     which INS is developing its plan to realign Border Patrol 
     positions from the interior to the front lines of the border. 
     In an effort to balance the goal of the Congress to add 1,000 
     Border Patrol agents to the front lines of the border and the 
     concerns of the Department of Justice and INS over the 
     ability to hire and train a growing workforce of 
     inexperienced agents, the Committees provided resources for 
     800 new Border Patrol agents and the realignment of 200 
     Border Patrol agent positions from interior locations to the 
     front lines of the border. On February 1, 1996, the 
     Committees provided guidance to the Department of Justice on 
     how INS should implement this realignment. Specifically, the 
     Committee directed that any agent redeployment to the border 
     should not create a void in the INS enforcement presence in 
     interior locations and that the backfill plan for affected 
     interior posts should include the following considerations: 
     (1) personnel/relocation issues of agents currently occupying 
     interior positions; (2) the appropriate mix of personnel 
     required to maintain the current functions and activities in 
     interior locations; and (3) the number of INS personnel in 
     interior locations should be maintained unless local law 
     enforcement and other elected officials have had an 
     opportunity to review and comment on any proposed reduction 
     in personnel at any of these posts. The conferees are aware 
     that there is concern in some communities about the potential 
     effect of removing a uniformed presence of immigration 
     officers from these locations. The conferees recognize that 
     in some interior stations, particularly those located in 
     Southwest border States, the ``mix'' of personnel should not 
     be limited to INS officers, but should be comprised of a 
     balanced mix of both Border Patrol agents and INS officers, 
     with each carrying out the functions for which they are 
     trained. The conferees therefore direct INS to adjust any 
     preliminary plans to realign all Border Patrol agent 
     positions from any one interior location to address the need 
     to continue the functions and activities at current levels 
     that require uniformed Border Patrol agents. Furthermore, the 
     conferees expect INS to submit a redeployment plan that 
     addresses these concerns for approval by the Committees on 
     Appropriations of both the House and Senate by May 15, 1996.

                         Federal Prison System


                         salaries and expenses

       The conferees are aware of a recent report issued by the 
     National Institute of Corrections (NIC) which identifies 
     serious problems with regard to the District of Columbia 
     Department of Corrections operation of and facilities located 
     at the Lorton Correctional Complex. Pursuant to the relevant 
     section of the District of Columbia Appropriations Chapter, 
     the conferees direct that the Bureau of Prisons spend 
     $200,000 of the amount provided for the NIC to do a study, on 
     behalf of the District of Columbia, for alternatives to 
     correct the problems identified in the recent NIC report. The 
     conferees direct that this plan be completed by December 31, 
     1996 and forwarded to the President, Congress, and the 
     District of Columbia Financial Responsibility and Management 
     Assistance Authority.

                       Office of Justice Programs


               state and local law enforcement assistance

              violent crime reduction trust fund programs

       Local Law Enforcement Block Grant.--The conference 
     agreement includes $503,000,000 for the Local Law Enforcement 
     Block Grant program, instead of $1,903,000,000 as proposed by 
     the House and $783,000,000 as proposed by the Senate. Of this 
     amount, the conference agreement provides $11,000,000 for the 
     Boys and Girls Clubs of America, $15,000,000 for the 
     Metropolitan Police Department in Washington, D.C. and up to 
     $18,000,000 for drug courts subject to the reprogramming 
     requirement in section 605. The Senate bill included 
     $20,000,000 for the Boys and Girls Clubs of America, 
     $20,000,000 for the Metropolitan Police Department in 
     Washington, D.C. and $25,000,000 for drug courts. The House 
     bill did not include separate earmarks for these programs.
       As proposed in both bills, the conference agreement 
     provides that the funding will be distributed to local 
     governments under the allocation and purposes set forth in 
     H.R. 728, as passed by the House of Representatives on 
     February 14, 1995, with some modifications included in the 
     conference report on H.R. 2076. The conferees have added 
     language to recognize Puerto Rico as a unit of local 
     government for the purpose of allocation of these funds and 
     have added language prohibiting the use of grants awarded 
     under the block grant as matching funds for any other Federal 
     grant program.
       The conferees have also agreed that the funding provided 
     under the block grant for Boys and Girls Clubs of America is 
     made available for the same purposes and in the same manner 
     as funds appropriated under previous appropriations acts for 
     the Department of Justice and will continue to be matched at 
     no less than the same ratio to private sector funds for the 
     establishment of new Boys and Girls Clubs. The conferees 
     expect that this funding will provide at least 100 new Boys 
     and Girls Clubs to serve up to 100,000 children throughout 
     the United States.
       In addition, the conferees are aware of the negative impact 
     that the financial crisis in the Nation's Capital has had on 
     the Metropolitan Police Department's ability to effectively 
     fight crime and have provided $15,000,000 specifically for 
     this purpose, in lieu of any funds that would have been 
     available under the formula allocation of the block grant. 
     This is of great concern to the citizens of the city, the 
     Mayor, the District Council, the D.C. Financial 
     Responsibility Authority and the Congress. The amounts 
     provided are intended to support the priorities identified by 
     the Chief of Police to supplement budgeted amounts for the 
     MPD as

[[Page H4189]]

     part of a long-range strategy. The conferees agree that the 
     allocation of these funds is to be made by the Chief of 
     Police, after appropriate consultation with the Committees on 
     Appropriations and the Committees on Judiciary of both the 
     House and Senate. The conferees have included language 
     requiring that these funds, as other Federal funds 
     appropriated to the District, are to be held by the Control 
     Authority and allocated to the MPD by the Authority, based on 
     compliance with the Chief of Police's plan.
       The conference agreement does not include $80,000,000 for 
     the Crime Prevention Block Grant program authorized in 
     Subtitle B of title III of the 1994 Crime Bill, as proposed 
     by the Senate. The House bill did not include funding for 
     this program.

                  Community Oriented Policing Services


              violent crime reduction trust fund programs

       The conference agreement includes $1,400,000,000 for 
     Community Oriented Policing Services (COPS), instead of 
     $975,000,000 as proposed by the Senate and no funding for 
     this program as proposed by the House. Of the amount 
     provided, $10,000,000 is included for the Police Corps 
     program. The conferees have also included a technical change 
     referencing the authorizations for the Police Corps program 
     under the 1994 Crime Bill, as proposed by the Senate.
       The conferees agree that the funding provided should be 
     used for the purpose of providing grants which will yield at 
     least 19,000 additional police officers on the street in 
     order to reach the goal of 100,000 additional police officers 
     by the year 2000 which will require similar funding levels in 
     fiscal years 1997 through 1999 with the balance to be funded 
     in the year 2000. The conferees note that with this funding, 
     two years into the six-year Community Policing program, at 
     least 45,000 police will have been hired. A clear path to 
     achieving the mutual objective of putting more police on the 
     street has been established. In addition, the conferees have 
     provided $503,000,000 for the Local Law Enforcement block 
     Grant that should provide for even more police being hired at 
     an even faster pace.
       The conferees agree that the primary objective of COPS 
     funding is to hire new police officers in the most cost-
     effective manner possible. The conferees direct that, from 
     this point forward, the COPS office use grant funds to the 
     maximum extent possible to hire more police, and should not 
     use these funds for non-hiring projects. Funding for these 
     purposes, such as equipment, training and overtime, is 
     available to localities through the Local Law Enforcement 
     Block Grant and need not be duplicated under this program. 
     The conferees have also included language that limits the 
     amount spent on program management and administration to 130 
     positions and $14,602,000.

               General Provisions--Department of Justice

       The conference agreement includes the following General 
     Provisions for the Department of Justice that were not 
     enacted into law under Public Law 104-99. The conferees have 
     also included language under section 616 to reinforce that 
     the General Provisions for the Department of Justice enacted 
     under section 211 of Public Law 104-99 shall continue to 
     remain in effect. A Department of Justice legal opinion dated 
     February 27, 1996, states that all the General Provisions for 
     the Department of Justice included in the conference report 
     on H.R. 2076, with the exception of section 114, were enacted 
     into law under Public Law 104-99 on January 26, 1996. The 
     Senate bill repeated all general provisions, except for 
     sections 116 through 119 which were permanent changes to law, 
     and the House bill did not include any of the general 
     provisions with the exception of section 114.
       The conferees note that under section 106, which is 
     currently enacted in law, the Department of Justice was 
     provided the authority to spend up to $10,000,000 for rewards 
     for information regarding acts of terrorism against the 
     United States. The conferees agree that the Attorney General, 
     before making any international reward, should continue to 
     consult and coordinate with the Secretary of State.
       Sec. 114. The conferees have agreed to include section 114 
     and have revised the language proposed in the House and 
     Senate bills which authorizes a new Violent Offender 
     Incarceration and Truth-in-Sentencing Incentive Grants 
     program to replace the program currently authorized in Title 
     II of the Violent Crime Control and Law Enforcement Act of 
     1994. The House bill included the revised Violent Offender 
     Incarceration and Truth-in-Sentencing Incentive Grants 
     program as passed in the conference report on H.R. 2076. The 
     Senate bill included a revision to the language included in 
     the conference report on H.R. 2076.
       As provided in both the House and Senate bills, the 
     conference agreement includes $617,500,000 under the Violent 
     Crime Reduction Programs for State and Local Law Enforcement 
     Assistance for this provision. Of the funds provided, and 
     after amounts allocated for incarceration for criminal 
     aliens, the Cooperative Agreement Program and incarceration 
     of Indians on Tribal lands, $403,875,000 is available for 
     State Prison Grants and the administration of this program.
       The conferees agree that the Violent Offender Incarceration 
     and Truth-in-Sentencing Incentive Grants program should 
     reward and provide an incentive to States that are taking the 
     necessary steps to keep violent criminals off the streets. 
     The conferees further agree that the program currently 
     authorized in the Violent Crime Control and Law Enforcement 
     Act of 1994 fails to provide an adequate incentive for States 
     to adopt tougher sentencing policies. The conferees are also 
     concerned that sufficient seed money to States is needed to 
     encourage States to adopt truth-in-sentencing. Thus, of the 
     amount available, the conferees have agreed that 50 percent 
     would be set aside for Truth-in-Sentencing Grants and the 
     remaining 50 percent would be distributed as General Grants 
     to all states that qualify. Under the revised language, 
     States would no longer be forced to choose between mutually 
     exclusive grant programs. States qualifying for Truth-in-
     Sentencing Grants would receive those funds in addition to 
     any General Grant funds they are eligible to receive. The 
     conferees further intend that in the future the percentage of 
     prison grant funds dedicated to General Grants should decline 
     in order to provide a greater incentive for States to adopt 
     truth-in-sentencing policies.
       The conferees have therefore adopted language that provides 
     that all States that provide assurances to the Attorney 
     General that the State has implemented, or will implement, 
     correctional policies and programs that (a) ensure that 
     violent offenders serve a substantial portion of the 
     sentences imposed; (b) are designed to provide sufficiently 
     severe punishment for violent offenders, including violent 
     juvenile offenders; and (c) ensure that the prison time 
     served is appropriately related to the determination that the 
     inmate is a violent offender and for a period of time deemed 
     necessary to protect the public, will receive ``seed'' 
     funding to increase their capacity of prison space. A State 
     will receive additional funding from General Grants if the 
     State can demonstrate that, in addition to the above 
     assurances, the State has (a) increased the number of persons 
     sentenced to prison who have been arrested for violent 
     crimes; or (b) increased the sentences of persons convicted 
     of violent crimes or the average prison time actually served; 
     or (c) increased by over 10 percent over the last three years 
     the number of persons sent to prison for committing violent 
     crime.
       A State will be eligible to receive a Truth-in-Sentencing 
     Grant in addition to General Grant funding it is eligible 
     for, if the State has adopted truth-in-sentencing laws which 
     require persons sentenced to prisons for violent crimes to 
     serve at least 85 percent of their sentence. In addition, if 
     a State practices indeterminate sentencing, that is, a State 
     in which the sentence imposed by the court may involve a 
     range of imprisonment, it may be eligible to receive a Truth-
     in-Sentencing Grant if (1) the State has ``sentencing and 
     release guidelines'' (which refers to guidelines that by law 
     are utilized both by courts for guidance in imposing a 
     sentence and by parole release authorities in establishing a 
     presumptive release date when the offender has entered 
     prison) and violent offenders serve on average not less than 
     85 percent of the period to the presumptive release date 
     prescribed by these guidelines, or (2) the State demonstrates 
     that violent offenders serve on average not less than 85 
     percent of the maximum prison term allowed under the sentence 
     imposed by the court.
       The revised language included in this section authorizes 
     $10,267,600,000 for fiscal years 1996 through 2000 for States 
     to build or expand correctional facilities for the purpose of 
     incapacitating criminals convicted of part I violent crimes, 
     or persons adjudicated delinquent for an act which if 
     committed by an adult, would be a part I violent crime. It 
     does not allow funds to be used to operate prisons as 
     provided in the current program and it requires a ten percent 
     match by the State instead of a 25 percent match as included 
     in the current program. The conferees agree that in 
     developing criteria for determining the eligibility for 
     funding to build or expand bedspace, the Department of 
     Justice should include a requirement that States demonstrate 
     the ability to fully support, operate and maintain the prison 
     for which the State is seeking construction funds.
       Other provisions of the new authorization require that 
     States share up to 15 percent of the funds received with 
     counties and other units of local government for the 
     construction and expansion of correctional facilities, 
     including jails, to the extent that such units of local 
     government house state prisoners due to States carrying out 
     the policies of the Act. In addition, under exigent 
     circumstances, States may also use funds to expand juvenile 
     correctional facilities, including pretrial detention 
     facilities and juvenile boot camps. In order to be eligible 
     for grants, States are also required to implement policies 
     that provide for the recognition of the rights and needs of 
     crime victims.
       In addition, of the total amount provided, $200,000,000 is 
     available for payments to States for the incarceration of 
     criminal aliens. The conferees intend that this funding 
     should be merged with and administered under the State 
     Criminal Alien Assistance Program (SCAAP), including the 
     normal authority to utilize up to one percent of the funds 
     for administrative purposes. The conferees expect the 
     Department of Justice to provide these funds to eligible 
     States in a timely manner.
       Sec. 120.--The conference agreement includes a new general 
     provision, as proposed by the Senate as section 116, which 
     extends the Department of Justice's pilot debt collection 
     project through September 30, 1997. The House bill did not 
     include this provision.

[[Page H4190]]

       Sec. 121.--The conference agreement includes a new general 
     provision, proposed by the Senate as section 117, which 
     amends the 1994 Crime Bill to define ``educational expenses'' 
     to be funded under the Police Corps program. The conference 
     agreement modifies the language proposed by the Senate to 
     assure that the course of education being pursued under this 
     program is related to law enforcement purposes. The House 
     bill did not include this provision.
       Sec. 122.--The conference agreement includes a technical 
     correction, similar to section 109 as proposed by the Senate, 
     to the U.S. Code citation regarding the Assets Forfeiture 
     Fund to conform to changes enacted into law under Public Law 
     104-66 and Public Law 104-99 and to ensure the intended 
     effect of these changes. The House bill did not include this 
     technical correction.

              DEPARTMENT OF COMMERCE AND RELATED AGENCIES

                         DEPARTMENT OF COMMERCE

                  Trade and Infrastructure Development

                 U.S. Travel and Tourism Administration

       The conference agreement, like the House and Senate bills, 
     does not include funding for the U.S. Travel and Tourism 
     Administration. Its functions are in the process of being 
     transferred to the International Trade Administration, and no 
     further funding is required.

                Economic and Information Infrastructure


       national telecommunications and information administration

                         salaries and expenses

       The conference agreement includes language proposed by the 
     Senate clarifying the authority of the Secretary of Commerce 
     to charge federal agencies for spectrum management, analysis, 
     operations and related services, which was not addressed in 
     the House bill, and making technical changes to language 
     included in the House bill regarding the retention and use of 
     all funds so collected.

                         Science and Technology

             National Institute of Standards and Technology


                     industrial technology services

       The conference agreement includes $301,000,000 for 
     Industrial Technology Services, of which $80,000,000 is for 
     the Manufacturing Extension Partnership (MEP) program, and of 
     which $221,000,000 is for the Advanced Technology Program 
     (ATP). The House bill included $80,000,000 for the MEP, and 
     $100,000,000 in contingent appropriations for ATP. The Senate 
     bill included $80,000,000 for MEP, and $235,000,000 in 
     contingent appropriations for ATP.
       The amount provided for ATP in this agreement represents 
     the Commerce Department's most recent estimate of the amount 
     required to pay for continuation grants required in fiscal 
     year 1996 for ATP awards made in fiscal year 1995 and prior 
     years. The conferees are agreed that the Commerce Department 
     and NIST should accord highest priority to honoring these 
     prior year commitments. The Department shall submit a plan 
     indicating how it intends to spend the funds available for 
     ATP this year within 30 days of the enactment of this Act.
       The conferees remain supportive of biotechnology research 
     and innovation centers which provide technical and financial 
     assistance, education and training to help create and promote 
     promising new companies. The conferees note that the 
     Department has previously provided support for these centers 
     in several States, including Massachusetts, and believe that 
     such support is in keeping with the Department's mission of 
     promoting both economic and trade opportunities. Therefore, 
     the conferees believe that the Department should make 
     available sufficient funds for continuing operations of these 
     centers at levels consistent with previous years.

            National Oceanic and Atmospheric Administration


                  operations, research, and facilities

                     (including transfer of funds)

       The conference agreement includes a direct appropriation of 
     $1,792,677,000 for the National Oceanic and Atmospheric 
     Administration's Operations, Research, and Facilities 
     account, as proposed by the House, instead of $1,799,677,000 
     as proposed by the Senate. The conference agreement does not 
     include $7,000,000 proposed in the Senate bill for the Global 
     Learning and Observations to Benefit the Environment program. 
     The House bill and the conference agreement do not include 
     funding for this program.
       In addition, the following clarifications of issues in the 
     statement of managers accompanying the conference report on 
     H.R. 2076 are provided:
       The conferees do not expect NOAA to undertake a deep ocean 
     isolation study during fiscal year 1996.
       Funds for mapping, charting, and geodesy services are to be 
     used to acquire such services through contracts entered into 
     with qualified private sector contractors when such contracts 
     are the most cost-effective method of obtaining those 
     services.
       Because of the reduced funding level for the fleet and the 
     emphasis on contracting for services, the conferees would 
     like NOAA to submit a plan for purchases of fleet vessel 
     equipment prior to expending funds for this purpose.
       The conferees agree with language included in the Senate 
     report on H.R. 2076 regarding NOAA utilization of the UNOLS 
     (university) fleet for its research needs.
       The conferees strongly concur with the House, Senate, and 
     joint House/Senate conference reports to H.R. 2076 regarding 
     NMFS and NOAA actions on sea turtle conservation and shrimp 
     fishery issues except that the conferees direct that any 
     revisions, if necessary, that are based on the NMFS November 
     14, 1994 or subsequent Biological Opinions shall include the 
     results of the independent scientific peer review and 
     alternatives for lessening the economic impact on the shrimp 
     fishing industry as directed in both the House and Senate 
     reports to H.R. 2076. Additionally, the conferees direct NMFS 
     and the Department of Commerce to provide within 30 days of 
     enactment of this Act a detailed written report to the 
     Committees on Appropriations that includes: (1) the results 
     of the independent peer review of the NMFS November 14, 1994 
     Biological Opinion on sea turtle conservation as directed in 
     the conference report to H.R. 2076; (2) the findings and 
     recommendations of the scientific expert working group 
     directed to be established in the House and Senate reports to 
     H.R. 2076; (3) the results of the meetings with the shrimp 
     fishing industry and the conservation community as directed 
     by the House and Senate reports to H.R. 2076; and (4) 
     conclusions of the economic impact analysis directed to be 
     completed in the House and Senate reports to H.R. 2076. The 
     conferees are concerned that NOAA and the Department of 
     Commerce are proceeding with additional restrictions on the 
     shrimp fishery before the results of these analyses and 
     reviews are completed and despite NMFS and Coast Guard data 
     confirming that shrimp fishermen are complying with existing 
     fishing restrictions at a 97 to 99 percent rate.

                       Technology Administration

       Office of the Under Secretary/Office of Technology Policy


                         salaries and expenses

       The conference agreement provides $7,000,000 for the Office 
     of Technology Policy, instead of $5,000,000 as proposed by 
     the House, and $5,000,000 and an additional $2,000,000 in 
     contingent appropriations as proposed by the Senate.
       The $2,000,000 provided over the House amount, which is 
     also $2,000,000 over the amount provided in the conference 
     report on H.R. 2076, is to be used to support the civilian 
     technology initiatives with which the Technology 
     Administration is involved, including international science 
     and technology policy assessment, industrial competitiveness 
     studies, support for the U.S./Israel Secretariat and the 
     National Medal of Technology. The funds are not intended to 
     be used to supplant the need for the downsizing of employment 
     that is nearing completion in the Technology Administration.
       The Senate bill provided an additional $2,000,000 in 
     contingent appropriations for the U.S.-Israel Science and 
     Technology Commission, which is not included in the 
     conference agreement. As provided in both the House and 
     Senate reports on H.R. 2076, the Committees continue to 
     support the U.S.-Israel Science and Technology Commission. 
     The conferees expect the Commerce Department to provide its 
     commitment of $2,500,000 for this program in fiscal year 1996 
     from within available resources, subject to the standard 
     transfer and reprogramming procedures set forth under 
     sections 205 and 605 of this section of the bill.

               General Provisions--Department of Commerce

       Sec. 206. The conference agreement does not include 
     language proposed by the Senate to prohibit the use of funds 
     by the Secretary of Commerce to issue final determinations 
     under the Endangered Species Act. The House bill contained no 
     provision on this matter under this Chapter. Language on this 
     issue is not necessary under this Chapter because the issue 
     is being addressed on a government-wide basis under the 
     Department of Interior and Related Agencies Chapter.
       Sec. 210. The conference agreement includes a modified 
     general provision proposed by the House, but not in the 
     Senate bill, to prohibit the use of funds to develop or 
     implement new individual fishing quota, individual 
     transferable quota, or individual transferable effort 
     allocation programs until offsetting fees to pay for the cost 
     of administering such programs are authorized. The House 
     provision applied only to individual transferable quota 
     programs. In addition, the conference agreement adds language 
     not in the House bill to clarify that the restriction does 
     not apply to any program approved prior to January 4, 1995.
       Sec. 211. The conference agreement includes a general 
     provision, similar to language proposed under title III of 
     the Senate bill, to amend Section 308(d) of the 
     Interjurisdictional Fisheries Act of 1986 to increase 
     flexibility in providing grants to commercial fishermen for 
     uninsured losses resulting from a fishery resource disaster 
     arising from a natural disaster. The changes from the 
     language proposed by the Senate are designed to provide 
     further assurances that any fishing boat bought back under 
     this program must be scrapped or otherwise disposed of in a 
     way that prevents the boat from reentering any fishery. The 
     House bill contained no similar provision
       Sec. 212. The conference report includes a general 
     provision, not in either bill, giving the Secretary of 
     Commerce authority to

[[Page H4191]]

     award contracts for mapping and charting activities in 
     accordance with the Brooks Act, Title IX of the Federal 
     Property and Administrative Services Act of 1949 (40 U.S.C. 
     541 et seq.). The statement of managers accompanying the 
     conference report on H.R. 2076 indicated that the conferees 
     expected NOAA to award contracts in accordance with this Act, 
     but the Department has indicated that statutory language is 
     required to carry out the conferees' intent.

                DEPARTMENT OF STATE AND RELATED AGENCIES

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs


                    diplomatic and consular programs

       The conference agreement, like the House and Senate 
     versions of H.R. 3019, strikes language included in the 
     conference report on H.R. 2076 which prohibited the extension 
     of machine readable visa fees after April 1, 1996. In section 
     112 of Public Law 104-92, a full year extension of the 
     authority to collect the fee was enacted into law.
       The statement of managers in the conference agreement on 
     H.R. 2076 (H. Rep. 104-378) contained an incorrect 
     description of the contents of the agreement relating to 
     funding for the Diplomatic Telecommunications Service (DTS). 
     That conference report included language that provided 
     $24,856,000 for DTS operation of existing base services, and 
     not to exceed $17,144,000 for enhancements to remain 
     available until expended, of which $9,600,000 was not to be 
     made available until expiration of 15 days after submission 
     of the pilot project report. The conferees have agreed to 
     reduce the amount withheld from $9,600,000 to $2,500,000.


           security and maintenance of united states missions

       The conference report includes $385,760,000 for Security 
     and Maintenance of United States Missions, as proposed in 
     both the House and Senate bills, but does not include an 
     additional contingent appropriation of $8,500,000 as proposed 
     in title IV of the Senate bill.
       The additional rescission in this account proposed by the 
     Senate is addressed separately under the Rescissions section.

              International Organizations and Conferences


              contributions to international organizations

       The conference agreement includes $892,000,000 for 
     Contributions to International Organizations, to pay the 
     costs assessed to the United States for membership in 
     international organizations, compared to $700,000,000 and an 
     additional $158,000,000 in contingent appropriations in the 
     House bill, and $700,000,000 and an additional $223,000,000 
     in contingent appropriations in the Senate bill.
       In addition, the conference agreement includes language 
     withholding $80,000,000 of the total provided, to be made 
     available on a quarterly basis upon certification by the 
     Secretary of State that the United Nations has taken no 
     action to increase funding for any United Nations program 
     without identifying an offsetting decrease elsewhere in the 
     United Nations budget and cause the United Nations to exceed 
     its no growth budget for the biennium 1996-1997 adopted in 
     December, 1995. The House bill contained a proviso 
     withholding one-half of the proposed contingent funding for 
     this account until the Secretary of State certified that the 
     United Nations had taken no action to cause it to exceed its 
     no growth budget for the biennium 1996-1997 adopted in 
     December, 1995. The Senate bill contained no provision on 
     this matter.
       From within the funds provided under this heading, funding 
     is to be provided at the full fiscal year 1996 request level 
     to the International Atomic Energy Agency, the World Trade 
     Organization, the North Atlantic Treaty Organization, and the 
     related North Atlantic Assembly. Funding is also provided at 
     the full fiscal year 1996 request level to the United Nations 
     to fully fund the United States commitment at the 25 percent 
     assessment rate provided that the certifications that it is 
     not overspending its no-growth budget are made. No funds are 
     to be provided to the United Nations Industrial Development 
     Organization, the Inter-American Indian Institute, the Pan 
     American Railway Congress Association, the Permanent 
     International Association of Road Congresses, and the World 
     Tourism Organization. Should the requested funding level, 
     which is provided in this conference agreement, fall short of 
     actual assessments, the shortfall should be allocated among 
     the remaining organizations and be prioritized according to 
     the importance of each international organization to the 
     national interest of the United States.


        contributions for international peacekeeping activities

       The conference agreement includes $359,000,000 for 
     Contributions for International Organizations, compared with 
     $225,000,000 and an additional $2,000,000 in contingent 
     appropriations in the House bill, and $225,000,000 and an 
     additional $215,000,000 in contingent appropriations in the 
     Senate bill.
       In addition, the conference agreement includes a technical 
     correction in language included in the conference report on 
     H.R. 2076, as proposed in both the House and Senate versions 
     of H.R. 3019.
       The conference agreement retains the limitations on 
     expenditure of these funds, as contained in both the House 
     and Senate bills and the conference report on H.R. 2076.

                            RELATED AGENCIES

                  Arms Control and Disarmament Agency


                arms control and disarmament activities

       The conference agreement includes $38,700,000, instead of 
     $35,700,000, as proposed by the Senate, and $32,700,000, as 
     proposed by the House.

                    United States Information Agency


               educational and cultural exchange programs

       The conference agreement does not include bill language 
     proposed by the Senate to provide $1,800,000 to the Mike 
     Mansfield Fellowship Program. The House bill contained no 
     provision on this matter.
       While the conferees have not included the language proposed 
     by the Senate, they have agreed that the USIA shall disburse 
     funds in the amount of $1,800,000 to the Mansfield Center for 
     Pacific Affairs to cover the Center's costs in fully 
     implementing the Mike Mansfield Fellowships including the 
     posting of seven 1995 fellows and their immediate families in 
     Japan in order that the fellows may work in a Japanese 
     government agency for one year, preparation and training for 
     ten 1996 fellows, the recruitment and selection of the ten 
     1997 fellows, and attendant administrative costs.

      General Provisions--Department of State and Related Agencies

       Sec. 405. The conference agreement provides a full-year 
     waiver of the limitation on operations of the Department of 
     State, the U.S. Information Agency, and the Arms Control and 
     Disarmament Agency in the absence of an authorization, as 
     proposed in the Senate bill. The House bill included a waiver 
     until April 1, 1996.
       The conference agreement does not include a provision, 
     included in the Senate bill as section 407, to extend the 
     authorization for the Au Pair program through the year 1999. 
     The House bill contained no similar provision. This provision 
     is not required, because a free-standing two-year 
     authorization for the program has been enacted into law (P.L. 
     104-72).
       Sec. 407.--The conference agreement includes language, as 
     provided in both the House and Senate bills, to allow the 
     Eisenhower Exchange Fellowship Program to use one-third of 
     earned but unused trust income each year for three years 
     beginning in fiscal year 1996.
       Sec. 410.--The conference agreement includes a provision 
     authorizing continuing contract authority for the 
     construction of a USIA international broadcasting facility on 
     Tinian, Commonwealth of the Northern Mariana Islands, as 
     proposed by the Senate bill. The House bill contained no 
     similar provision.
       The conferees agree that prior to the award of a contract 
     for this facility, USIA is required to submit a final plan 
     for this facility, including expected cost, construction 
     time, funding requirements, and expected utilization of the 
     facility, according to the standard reprogramming 
     requirements of the Committees on Appropriations of the House 
     and the Senate, the House International Relations Committee, 
     and the Senate Foreign Relations Committee.
       Sec. 411.--The conference agreement includes language 
     proposed in section 3010 of the Senate bill relating to the 
     Arms Control and Disarmament Agency that makes unexpended 
     carryover appropriated in fiscal year 1995 for activities 
     related to the implementation of the Chemical Weapons 
     Convention available for ACDA operations. The House bill 
     contained no provision on this issue.

                            RELATED AGENCIES

                     Competitiveness Policy Council


                         salaries and expenses

       The conference agreement includes $50,000 for the 
     Competitiveness Policy Council instead of $100,000 as 
     proposed by the Senate and no funding as proposed by the 
     House. The conference agreement also includes language 
     stating that this is the final Federal payment to the 
     Council. As a result, the conferees expect the Council to use 
     the remaining funds to proceed with the orderly termination 
     of the Council.

                   Federal Communications Commission


                         salaries and expenses

       The conference agreement provides $185,709,000 in total 
     resources for the Federal Communications Commission, 
     $10,000,000 more than provided in the conference report on 
     H.R. 2076 and in the House bill, and $10,000,000 less than 
     provided in the Senate bill. The additional $10,000,000 over 
     the House bill is to be derived from increased fees and is 
     being provided to the Commission to cover costs associated 
     with implementation of the Telecommunications Act of 1996.
       The conference agreement also includes bill language 
     revisions to the FCC fee schedule relating to ten specific 
     television broadcasting fee categories, as proposed in the 
     Senate bill. The House bill contained no similar provision.
       The conference agreement includes language, not in either 
     the House or Senate bill, to allow the Federal Communications 
     Commission to address an issue that appears to present unique 
     circumstances that require immediate attention. WQED, which 
     operates two non-commercial stations in Pittsburgh, 
     Pennsylvania, has indicated it is in financial difficulty, 
     and is seeking the opportunity to obtain a determination on 
     an expedited basis as to whether it could convert one of its 
     stations to a commercial station and then assign the license 
     for the station, using the

[[Page H4192]]

     proceeds to relieve its financial difficulties. The language 
     included in the conference report addresses this situation by 
     assuring speedy consideration of the issue by the FCC. The 
     language requires the FCC to make a determination on a 
     petition submitted by WQED within 30 days, and gives the FCC 
     the authority to provide WQED the relief it is seeking as one 
     of the options that the FCC can consider in making its 
     determination.
       The Conference agreement does not include language proposed 
     in the Senate bill requiring the FCC to pay the travel-
     related expenses of the Federal-State Joint Board on 
     Universal Service, but the conferees expect that these 
     expenses will be covered within the additional resources 
     provided by the agreement. The House bill contained no 
     similar provision.

                       Legal Services Corporation


               payment to the legal services corporation

       The conference agreement provides $278,000,000 for the 
     Legal Services Corporation, as proposed by the House, instead 
     of $300,000,000 as proposed by the Senate. In addition, the 
     conference agreement does not include $9,000,000 in 
     additional contingent appropriations, as proposed by the 
     Senate under title IV of the Senate bill.
       Within the total amounts provided, the conferees agree that 
     the funds should be distributed as follows: (1) $269,400,000 
     for basic field programs and required independent audits 
     carried out in accordance with section 509; (2) $1,500,000 
     for the Office of Inspector General; and (3) $7,100,000 for 
     management and administration. The conferees are aware that 
     the Legal Services Corporation has recently identified 
     $400,000 in prior year carryover funds. The conferees expect 
     the Committees on Appropriations of the House and Senate to 
     be notified prior to any further expenditure of these funds 
     in accordance with section 605 of this Act. The conference 
     agreement does not include language, proposed by the Senate, 
     for payment of attorneys fees for a specific civil action.
       The Legal Services Corporation historically has distributed 
     funding for basic field programs (for all eligible clients) 
     on an equal figure per poor person based on the 1990 census, 
     with an exception that adjusts the formula for certain 
     isolated states and territories. The conferees are encouraged 
     that the Corporation has worked expeditiously to distribute 
     funding on a competitive award basis, and urge the 
     Corporation to continue implementation of the system that has 
     been developed to continue providing grants to all eligible 
     populations.


         administrative provisions--legal services corporation

       The conference agreement includes language proposed by the 
     Senate under section 504 to provide an exception to the 
     prohibition contained therein that would permit recipients of 
     LSC grants to use funds derived from non-Federal sources to 
     comment on public rulemakings or to respond to a written 
     request for information or testimony from a governmental 
     body, so long as the response is made only to the parties 
     that make the request and the recipient does not arrange for 
     the request to be made. The House bill contained no similar 
     exception to the prohibition contained in the bill.
       The conference agreement corrects a code citation in 
     section 504(a)(10)(c), as proposed in the Senate bill. The 
     House bill contained the code citation provided in the 
     conference report on H.R. 2076.
       The conference agreement includes language under section 
     508 to allow for the collection of attorneys fees for cases 
     or matters pending prior to enactment of this Act. This 
     provision does not allow the collection of attorneys fees for 
     any new or additional claim or matter not initiated prior to 
     enactment of this Act. Neither the House nor Senate bill 
     contained a provision on this matter.
       The conference agreement makes a modification to language 
     included in section 508 in both the House and Senate bills to 
     provide for a limited transition time for LSC grantees to 
     dispose of pending cases and matters initiated prior to 
     enactment of this Act, which would now be prohibited under 
     this Act. The agreement provides LSC grantees until August 1, 
     1996 to dispose of all such cases.
       The conference agreement contains modifications to language 
     in section 509 proposed by the Senate related to the 
     procedures by which LSC grantees are audited and the manner 
     in which recipients contract with licensed independent 
     certified public accountants for financial and compliance 
     audits. Also included are modifications to language proposed 
     by the Senate to clarify that only the Office of the 
     Inspector General shall have oversight responsibility to 
     ensure the quality and integrity of the financial and 
     compliance audit process. Language is also included, as 
     proposed by the Senate, to clarify the Corporation 
     management's duties and responsibilities to resolve 
     deficiencies and non-compliance reported by the Office of the 
     Inspector General. Further, language is included, as proposed 
     by the Senate, authorizing the Office of the Inspector 
     General to conduct additional on-site monitoring, audits, and 
     inspections necessary for programmatic, financial and 
     compliance oversight. The House bill contained the provisions 
     included in the conference report on H.R. 2076.

                      Ounce of Prevention Council

       The conference agreement includes $1,500,000 for the Ounce 
     of Prevention Council as proposed by the Senate. The House 
     bill did not include funding for this organization.

                           GENERAL PROVISIONS

       Sec. 609. The conference agreement includes a general 
     provision prohibiting use of funds to pay for expansion of 
     diplomatic or consular operations in Vietnam unless the 
     President certifies within 60 days that Vietnam is 
     cooperating in full faith with the U.S. on POW/MIA issues. 
     The conference report on H.R. 2076 and the House bill 
     contained a provision prohibiting use of funds unless the 
     President certifies that Vietnam is fully cooperating with 
     the U.S. on these issues. The Senate bill did not include a 
     provision on this matter.
       Sec. 616-617. The conference agreement includes two 
     provisions clarifying the relationship of provisions in the 
     Commerce, Justice, and State, the Judiciary, and Related 
     Agencies appropriations bill to several full-year provisions 
     provided in previous continuing resolutions and the Balanced 
     Budget Downpayment Act, I.
       The Senate bill included a provision repealing the section 
     of the Balanced Budget Downpayment Act, I that set out the 
     operating rates for programs funded under the Commerce, 
     Justice, and State the Judiciary, and Related Agencies 
     appropriations bill.
       The House bill included a provision, section 105, that 
     addressed the relationship of the provisions of this bill to 
     previous year 1996 appropriations measures for all the 
     appropriations bills included in H.R. 3019.

                              RESCISSIONS

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs


            acquisition and maintenance of buildings abroad

                              (rescission)

       The conference agreement includes a rescission of 
     $64,500,000 from balances in the Acquisition and Maintenance 
     of Buildings Abroad account, compared with a rescission of 
     $60,000,000 included in the conference report on H.R. 2076 
     and proposed in the House bill and a rescission of 
     $95,500,000 proposed in the Senate bill.

                          DISTRICT OF COLUMBIA

       Section 101(b) of H.R. 3019 provides appropriations for 
     programs, projects and activities provided for in the 
     conference report (House Report 104-455 filed January 31, 
     1996) that accompanied the District of Columbia 
     Appropriations Act, 1996 (H.R. 2546). The conference report 
     was adopted in the House of Representatives on January 31, 
     1996, but was not voted on by the Senate because of a 
     filibuster. The Senate voted on a motion to invoke cloture 
     and close further debate on four separate occasions. The 
     required 60 votes were not attained on any of those votes 
     which occurred on February 27, 1996 (54-44); February 29, 
     1996 (52-42); March 5, 1996 (53-43); and March 12, 1996 (56-
     44). H.R. 3019 as passed the House on March 7, 1996, did not 
     include funding for the District of Columbia government; 
     however, the bill as passed the Senate on March 19, 1996, 
     included the conference report (House Report 104-455) that 
     accompanied H.R. 2546 with certain modifications that are 
     explained later in this statement. The language and 
     allocations set forth in House Report 104-294, Senate Report 
     104-144, and House Report 104-455 are to be complied with 
     unless specifically addressed to the contrary in the 
     accompanying bill and statement of the managers. The 
     conference agreement also includes various technical changes 
     to headings and section references.

                    D.C. Chartered Health Plan, Inc.

       The conferees note that language in section 3008 of H.R. 
     3019, the Omnibus Consolidated Rescissions and Appropriations 
     Act of 1996, under the jurisdiction of the Subcommittee on 
     the Departments of Labor, Health and Human Services, and 
     Education, provides a waiver to the D.C. Chartered Health 
     Plan, Inc., a private provider of managed health care in the 
     District that was established in 1988 and provides health 
     care to 40 percent of the Medicaid AFDC beneficiaries in the 
     District.

                            Infant Mortality

       The conferees are deeply concerned that the status of 
     infant mortality and morbidity in the Nation's Capital 
     continues to be the poorest in the United States. The 
     Departments of Labor, Health and Human Services, and 
     Education and Related Agencies Appropriations Act for fiscal 
     year 1991 (H.R. 5257) included funds in the budget for the 
     National Institute of Child Health and Human Development 
     (NICHD) ``to conduct research on pregnancy and perinatology 
     with special emphasis on the determinants and consequences of 
     environmental contributions, including crack cocaine abuse, 
     to the low birth weight and infant mortality problems in the 
     District.'' (Senate Report 101-516, page 118). The report 
     further states that ``The plan should include research 
     projects * * * and the means to contract with a local host 
     institution to provide the clinical facilities associated 
     infrastructure to operate them''.
       The conferees request that the NICHD continue its research 
     on pregnancy and perinatology as directed in Senate Report 
     101-516 and conduct its study within the jurisdictional 
     bounds of the Nation's Capital as spelled out in that report. 
     Further, the conferees urge NICHD to solicit bids only within 
     the District of Columbia, consistent with the intent of 
     Congress as originally reflected in Senate Report 101-516.

                          D.C. Canine Facility

       As noted on page 120 of the conference report (House Report 
     104-455) that accompanied the District of Columbia 
     Appropriations Act, 1996 (H.R. 2546), the Metropolitan

[[Page H4193]]

     Police Department has had a long-standing need to construct a 
     modernized canine training facility at a location near D.C. 
     Village. The funding for this project has been available for 
     some time; however, for various reasons construction of the 
     facility has been delayed and contract bids have been allowed 
     to expire. The conferees have been informed that the District 
     government has identified approximately $750,000 for 
     construction of the facility and again is proceeding with the 
     required contracting procedures. The schedule provided by 
     District officials calls for the contract to be awarded in 
     July with construction to begin immediately thereafter so 
     that the facility can be occupied by February 1997. The 
     conferees direct District officials to expedite this long 
     overdue project and to immediately advise the House and 
     Senate Committees on Appropriations of any delays. District 
     officials are requested to provide monthly progress reports 
     with detailed explanations for deviations from the schedule. 
     The reports are to be provided to the House and Senate 
     Committees on Appropriations on the first day of each month 
     following the enactment of this Act.
       The present canine facility being used by the Metropolitan 
     Police Department is located on property that is being 
     transferred to the Architect of the Capitol as required by 
     Public Law 98-340 and referenced in section 1565 of this Act. 
     For several years the plan has been to use the existing 
     facility, when it becomes available, for the U.S. Capitol 
     Police who have been occupying temporary structures while 
     waiting for the Metropolitan Police to move to their new 
     quarters. During the transition period while the new D.C. 
     canine facility is being constructed, the conferees believe 
     that co-location of the Metropolitan Police and the U.S. 
     Capitol Police canine forces is more economical than 
     providing two separate facilities. The conferees therefore 
     direct the Metropolitan Police Department to share the 
     existing canine facility at D.C. Village with the U.S. 
     Capitol Police and its canine training program. The conferees 
     request monthly reports from both police forces on the status 
     of this sharing arrangement. The first report is due April 
     30, 1996, with subsequent reports due on the last day of each 
     month until the Metropolitan Police move into the new D.C. 
     canine facility.

                Title I--Fiscal Year 1996 Appropriations


               federal contribution for education reform

       The conference action deletes this paragraph and the 
     Federal appropriation of $14,930,000 instead of reallocating 
     the low-income scholarship funding of $5,250,000 to repair, 
     modernization, maintenance and planning consistent with 
     subtitles A and F of title II of the bill, the August 14, 
     1995, recommendations of the ``Superintendent's Task Force on 
     Education Infrastructure for the 21st Century'', and the June 
     13, 1995, ``Accelerating Education Reform in the District of 
     Columbia: Building on BESST'' (which is the acronym for the 
     Superintendent's educational reform agenda ``Bringing 
     Education Services to Students'') as proposed by the Senate.


                   governmental direction and support

       The conference action includes a proviso transferred from 
     the deleted paragraph ``Education Reform'' that directs the 
     District government to enter into negotiations with Gallaudet 
     University for the purpose of transferring the Hamilton 
     Junior High School building from the District's public school 
     system to Gallaudet. The conferees expect that such a 
     transaction, which would require the agreement of both 
     Gallaudet and the District government, would result in 
     substantial proceeds being made available for improving the 
     District's public school facilities in the same ward. The 
     Hamilton School, which is in the midst of the Gallaudet 
     campus, was appraised at approximately $4,000,000 in 1990, 
     though it may be worth somewhat less at present. There is 
     some evidence that the title to the land on which Hamilton is 
     located is vested in the Federal government. The conferees 
     are hopeful that a mutually satisfactory arrangement can be 
     worked out voluntarily between the two parties, with area 
     students the beneficiaries.


                            education reform

       The conference action deletes this paragraph which 
     appropriated $14,930,000 from the District's general fund for 
     Education Reform initiatives. The proviso in this paragraph 
     relating to Gallaudet University has been transferred to the 
     heading ``Governmental Direction and Support''.


                           general provisions

       Lorton Correctional Complex.--The conference action amends 
     section 151 of H.R. 2546 (House Report 104-455) concerning 
     the Lorton Correctional Complex to reflect the findings of a 
     report dated January 30, 1996, issued recently by the 
     National Institute of Corrections (NIC) which identifies very 
     serious problems with the operation, management, and physical 
     plant. The amendment agreed to by the conferees addresses 
     many of the concerns raised by the NIC report and conforms 
     the initial language to changed timetables. Subsection (a) 
     added by the conferees directs the NIC acting for and on 
     behalf of the District of Columbia to hire a consultant to 
     develop a plan for short-term improvements on a limited 
     number of administrative and physical plant reforms that can 
     be completed within a three to five month time-frame. The 
     language also requires the NIC to submit their report to the 
     President, the Congress, the Mayor, and the District of 
     Columbia Financial Responsibility and Management Assistance 
     Authority no later than September 30, 1996. Subsection (b) 
     directs the NIC acting for and on behalf of the District of 
     Columbia to hire a consultant to develop at least four 
     optional long-term plans for the Lorton Correctional Complex, 
     including: (1) a plan under which the Lorton Correctional 
     Complex will be closed and inmates transferred to new 
     facilities constructed and operated by private entities; (2) 
     a plan under which the Lorton Correctional Complex will 
     remain in operation under the management of the District of 
     Columbia subject to such modification as the District 
     considers appropriate; (3) a plan under which the Federal 
     government will operate the Lorton Correctional Complex and 
     the inmates will be sentenced and treated in accordance with 
     guidelines applicable to Federal prisoners; and (4) a plan 
     under which the Lorton Correctional Complex will be operated 
     under private management. The language also requires the NIC 
     to submit their report to the President, the Congress, the 
     Mayor, and the District of Columbia Financial Responsibility 
     and Management Assistance Authority no later than December 
     31, 1996.
       Adoptions by unmarried couples.--The conference action 
     deletes section 152 of H.R. 2546 (House Report 104-455) that 
     would have prohibited adoptions by unmarried couples except 
     in those cases where one of the individuals was the natural 
     parent.
       Chief Financial Officer powers.--The conference action 
     inserts a new section 152 effective during fiscal years 1996 
     and 1997 which clarifies certain duties and responsibilities 
     of the Chief Financial Officer to enable the CFO to exercise 
     his authority with the independence called for under Public 
     Law 104-8, approved April 17, 1995, which created the 
     District of Columbia Financial Responsibility and Management 
     Assistance Authority and established the Chief Financial 
     Officer position. The Treasurer of the District, the 
     Controller of the District and the head of the Office of 
     Financial Information Services were placed under the CFO's 
     authority by Public Law 104-8. The clarifying language places 
     the directors of the Office of the Budget and the Department 
     of Finance and Revenue as well as all other District of 
     Columbia executive branch accounting, budget, and financial 
     management personnel under the CFO's authority thereby 
     providing the CFO with control over all financial activities 
     of the District government as envisioned by Public Law 104-8. 
     All of these individuals will be appointed by, serve at the 
     pleasure of, and act under the direction and control of the 
     CFO.
       Property conveyance.--The conference action inserts a new 
     section 156 requiring the transfer of certain property to the 
     Architect of the Capitol. Public Law 98-340, approved July 3, 
     1984, provided for a multi-jurisdictional land exchange to 
     allow the Washington Metropolitan Area Transit Authority to 
     complete construction of the Green Line, which was the last 
     segment of the region's rapid rail system. This land exchange 
     resulted from a decision to place a Metro station and parking 
     facility across the Anacostia River near the juncture of the 
     South Capitol Street Bridge and I-295, and involved the 
     Washington Metropolitan Area Transit Authority, the District 
     of Columbia, the National Park Service, and the Architect of 
     the Capitol. The Agreement, which was entered into 12 years 
     ago, included a commitment by the District of Columbia to 
     transfer a portion of D.C. Village to the Architect of the 
     Capitol in exchange for land under the Architect of the 
     Capitol's jurisdiction that was transferred for the Metro 
     facility. All work called for under the Agreement has been 
     completed, including the relocation of Shepherd Parkway. The 
     conferees have included language in section 156 of this Act 
     which requires the District government to provide the 
     Architect of the Capitol with a deed for the property in 
     accordance with the Agreement not later than 30 days after 
     the enactment of H.R. 3019.

              Title II--District of Columbia School Reform

       The conference action amends the District of Columbia 
     school reforms reflected in the conference report (House 
     Report 104-455) on H.R. 2546, the District of Columbia 
     Appropriations Act for fiscal year 1996. the conference 
     agreement deletes ``Subtitle C--Even Start''; ``Subtitle G--
     Residential School''; and ``Subtitle N--Low-Income 
     Scholarships'' that were included in House Report 104-455. 
     The conference agreement incorporates the provisions of 
     ``Subtitle H--Progress Reports and Accountability'' that was 
     included in House Report 104-455 as the last two sections of 
     subtitle A. The conference agreement also incorporates many 
     of the provisions of ``Subtitle J--Management and Fiscal 
     Accountability'' and ``Subtitle K--Personal Accountability 
     and Preservation of School-Based Resources'' into various 
     general provisions under title I. The remaining sections of 
     subtitles J and K have been consolidated into a new 
     ``Subtitle G--Management and Fiscal Accountability; 
     Preservation of School-Based Resources''.
       Recently, the Council of the District of Columbia passed 
     D.C. Bill 11-318, the Public Charter Schools Act of 1996. On 
     March 26, 1996, the Mayor returned the bill to the Council 
     without his signature. In his letter the Mayor states that 
     ``The legislation creates extensive regulations for proposed 
     charter schools without providing significant

[[Page H4194]]

     independent authority.'' His letter further states ``In 
     addition, proposed charter schools might not have available 
     to them certain regional and central system support provided 
     to other schools within the system.'' The conferees are 
     committed to ensuring that charter schools become a reality 
     in the District and have therefore included Subtitle B--
     Public Charter Schools, in title II of the conference 
     agreement. This subtitle addresses the concerns expressed by 
     the Mayor.
       The conference agreement includes residential education as 
     a program that can be provided in a public charter school and 
     requires the District to provide the $130,000 prorata share 
     of Public Charter School Board operating expenses for the 
     remainder of fiscal year 1996. In addition, the conferees 
     note that other portions of this conference agreement provide 
     the U.S. Department of Education with additional funds to 
     support charter school activities in the various states. The 
     conferees intend that the Department provide the District of 
     Columbia with appropriate financial and technical assistance 
     to support the start-up of the Charter School Board.
       The conference agreement amends ``Subtitle D--World Class 
     Schools Task Force'' by changing the letter designation from 
     ``D'' to ``C'' and including language to provide funding 
     authorizations in fiscal year 1997. The conference agreement 
     also makes other technical changes in dates as appropriate.
       The conferees are deeply concerned about the state of the 
     facilities in the District of Columbia public school system. 
     Subtitle E--School Facilities Repair and Improvement, calls 
     for the U.S. General Services Administration to provide 
     technical assistance to the District of Columbia public 
     schools in the development of a facilities revitalization 
     plan. It also provides waivers to allow private companies to 
     donate materials and services to rehabilitate school 
     facilities. The conference agreement includes narrowly drawn 
     waivers to ensure that private employees may donate their 
     services. The language also ensures that employees of the 
     District of Columbia government will not be called upon to 
     ``volunteer'' to provide services for which they would be 
     paid as a part of their employment.
       The conferees encourage the District of Columbia Public 
     Schools in their efforts to establish a residential school to 
     serve the residents of the District of Columbia. The 
     conferees look forward to having the thoughts and plans of 
     the Superintendent and other school officials during 
     consideration of the District's fiscal year 1997 budget and 
     financial plan. Without the availability of Federal funds, 
     the authorizing language included in the conference report 
     (House Report 104-455) on H.R. 2546 as ``Subtitle G--
     Residential School'' has been deleted.
       The conferees believe that leveraging private sector funds 
     to provide the public schools with access to state-of-the-art 
     technology and implementing a regional workforce training 
     initiative are essential to creating a model public education 
     system in the Nation's Capital. In the absence of Federal 
     funds for fiscal year 1996, the conferees have amended the 
     authorizations included in the conference report (House 
     Report 104-455) on H.R. 2546 for these programs to begin in 
     fiscal year 1997. The conference agreement deletes section 
     2704(e) ``Professional Development Program for Teachers and 
     Administrators'' that had been included in the conference 
     report (House Report 104-455) on H.R. 2546.

            DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES

       Section 101(c) provides fiscal year 1996 appropriations for 
     the Department of the Interior and Related Agencies which are 
     effective upon enactment of this Act as if it had been 
     enacted into law as the regular appropriations Act.
       The conference agreement on section 101(c) incorporates 
     many of the provisions of the conference agreement on H.R. 
     1977, House Report 104-402. Report language and allocations 
     set forth in the conference agreement on H.R. 1977 that are 
     not changed by the conference agreement on section 101(c) of 
     H.R. 3019 are approved by the committee of conference. The 
     report language and allocations adopted by the conference 
     agreement on H.R. 1977 are unchanged unless expressly 
     provided herein.

                  TITLE I--DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management


                   management of lands and resources

       $567,453,000 is appropriated for Management of Lands and 
     Resources instead of $568,062,000 as proposed by the 
     conference agreement on H.R. 1977. The change from the 
     earlier agreement is a decrease of $609,000 for headquarters 
     administration.
       Bill Language. Language restricting the use of funds for 
     the Mojave National Preserve in California has been deleted. 
     This issue is dealt with in more detail in section 119 of 
     this Act under the heading General Provisions, Department of 
     the Interior.


                       payments in lieu of taxes

       $113,500,000 is appropriated for Payments in Lieu of Taxes 
     instead of $101,500,000 as proposed by the conference 
     agreement on H.R. 1977.


                   oregon and california grant lands

       $97,452,000 is appropriated for Oregon and California Grant 
     Lands instead of $93,379,000 as proposed by the conference 
     agreement on H.R. 1977. The change from the earlier agreement 
     is an increase of $4,073,000 for collocation of the Oregon 
     State office of the Bureau of Land Management with the 
     Pacific northwest regional office of the Forest Service.

                United States Fish and Wildlife Service


                          resource management

       $501,010,000 is appropriated for Resource Management 
     instead of $497,943,000 as proposed by the conference 
     agreement on H.R. 1977. Changes from the earlier agreement 
     include a decrease of $183,000 for headquarters 
     administration and an increase of $3,250,000 for the 
     endangered species program.
       The managers understand that the Service has been directed 
     by the U.S. district court for the western district of 
     Washington to finalize critical habitat designation for the 
     marbled murrelet by May 15, 1996 and that the Department of 
     Justice has filed a motion to stay enforcement of the order. 
     The managers expect the Service, to the extent it proceeds 
     with the critical habitat designation process for the marbled 
     murrelet, to consider carefully the concerns of all 
     interested parties including the States and private 
     landowners. Potential economic impacts on private landowners 
     should be fully evaluated and, to the extent practicable, 
     every attempt should be made to ameliorate adverse impacts 
     and use Federal lands in establishing critical habitat. If 
     the May 15 deadline remains in effect and proves to be 
     unrealistic, the Service should so notify the court and 
     petition for an extension.
       Bill Language. Language has been included placing a 
     moratorium on the use of funds by the Secretaries of the 
     Interior and Commerce for endangered species listing 
     activities, except for delisting, reclassification and 
     emergency listings. An earmark of $4 million is included for 
     those activities not subject to the moratorium. The managers 
     have also provided authority to the President to suspend the 
     moratorium if he determines that such a suspension is 
     appropriate based on public interest in sound environmental 
     management, sustainable resource use, protection of national 
     or local interests or protection of cultural, biological or 
     historic resources. Any such suspension must be reported to 
     the Congress.

                         National Park Service


                 operation of the national park system

       $1,082,481,000 is appropriated for Operation of the 
     National Park System instead of $1,083,151,000 as proposed by 
     the conference agreement on H.R. 1977. The change to the 
     previous agreement is a decrease of $670,000 for headquarters 
     administration.
       The managers understand that the Service and the Federal 
     Highway Administration are in the process of realigning and 
     widening the 15th Street corridor at Raoul Wallenberg Place 
     in Washington, DC. The managers are aware of concerns that 
     this effort will have a negative impact on the size and 
     quality of the sports field located across the street from 
     the Holocaust Memorial Museum. The managers expect the 
     Service to provide an assessment to the House and Senate 
     Committees on Appropriations on the impact the construction 
     of this corridor will have on said field including any 
     alterations to the current size and quality of the playing 
     area and an estimate of the length of time the field will 
     remain unusable for sporting events. This assessment should 
     also include a cost estimate for (1) preservation or 
     realignment of the field needed to allow sports activities to 
     continue; (2) leveling of the field and repair of the field's 
     surface with new grass; and (3) annual maintenance of the 
     field. This assessment should be completed as expeditiously 
     as possible.
       Bill Language. Language restricting the use of funds for 
     the Mojave National Preserve in California has been deleted. 
     This issue is dealt with in more detail in section 119 of 
     this Act under the heading General Provisions, Department of 
     the Interior.


                              construction

       The managers on the part of the House do not agree with the 
     Senate position, expressed in a colloquy during Senate debate 
     on H.R. 3019, with respect to the Natchez Trace Parkway.

                    United States Geological Survey


                 surveys, investigations, and Research

       $730,163,000 is appropriated for Surveys, Investigations, 
     and Research instead of $730,503,000 as proposed by the 
     conference agreement on H.R. 1977. The change from the 
     earlier agreement is a decrease of $340,000 for headquarters 
     administration.
       The managers agree that, within the funds provided for 
     natural resources research in the State of Florida, the 
     Survey should maintain the same level of funding as was 
     provided in fiscal year 1995 by the National Biological 
     Service for manatee research as part of the Sirenia Project.

                      Minerals Management Service


                royalty and offshore minerals management

       $182,555,000 is appropriated for Royalty and Offshore 
     Minerals Management instead of $182,994,000 as proposed by 
     the conference agreement on H.R. 1977. The change from the 
     earlier agreement is a decrease of $439,000 for headquarters 
     administration.

                        Bureau of Indian Affairs


                      operation of indian programs

       Bill Language. Language is included to permit the use of 
     prior year unobligated balances for employee severance, 
     relocation, and related expenses until September 30, 1996 
     instead of March 30, 1996 as proposed by the conference 
     agreement on H.R. 1977.

[[Page H4195]]

                          Departmental Offices

                        Departmental Management


                         salaries and expenses

       $56,912,000 is appropriated for Salaries and Expenses 
     instead of $57,796,000 as proposed by the conference 
     agreement on H.R. 1977. The change from the earlier agreement 
     is a decrease of $884,000 for headquarters administration in 
     the departmental direction account. Because it is halfway 
     through the fiscal year, the managers agree that maximum 
     flexibility is permitted in allocating this reduction within 
     that account.

                        Office of the Solicitor


                         salaries and expenses

       $34,427,000 is appropriated for Salaries and Expenses 
     instead of $34,608,000 as proposed by the conference 
     agreement on H.R. 1977. The change from the earlier agreement 
     is a decrease of $181,000 for headquarters administration.

             GENERAL PROVISIONS, DEPARTMENT OF THE INTERIOR

       Lanaguage is included in section 119 on the management of 
     the Mojave National Preserve. The managers have agreed to 
     remove the statutory restrictions on the National Park 
     Service and the Bureau of Land Management which were included 
     in the conference agreement on H.R. 1977. The Park Service, 
     under this provision, is permitted to manage the Preserve but 
     limited in its management practices to those ``historical 
     management practices'' of the Bureau of Land Management until 
     the Service has completed a conceptual management plan and 
     received approval of that plan from the House and Senate 
     Committees on Appropriations. The provision also limits 
     operating funds to $1,100,000 unless approval for an 
     additional amount is obtained from the House and Senate 
     Committees on Appropriations. The managers agree that this 
     provision will expire on September 30, 1996. The managers 
     have also provided authority to the President to suspend the 
     restrictions in section 119 if he determines that such a 
     suspension is appropriate based on public interest in sound 
     environmental management, sustainable resource use, 
     protection of national or local interests or protection of 
     cultural, biological or historic resources. Any such 
     suspension must be reported to the Congress.

                       TITLE II--RELATED AGENCIES

                       DEPARTMENT OF AGRICULTURE

                             Forest Service


                       state and private forestry

       $136,884,000 is appropriated for State and Private Forestry 
     instead of $136,794,000 as proposed by the conference 
     agreement on H.R. 1977. The change from the earlier agreement 
     is an increase of $90,000 for collocation of the Oregon State 
     office of the Bureau of Land Management with the Pacific 
     northwest regional office of the Forest Service.
       Bill Language. Earmarks $200,000 as proposed by the Senate, 
     for a grant to the World Forestry Center for research on land 
     exchange efforts in the Umpqua River Basin Region in Oregon.


                         national forest system

       $1,257,057,000 is appropriated for the National Forest 
     System instead of $1,256,253,000 as proposed by the 
     conference agreement on H.R. 1977. The change from the 
     earlier agreement is an increase of $804,000 for collocation 
     of the Oregon State office of the Bureau of Land Management 
     with the Pacific northwest regional office of the Forest 
     Service.
       Bill Language. The managers have not agreed to a specific 
     dollar limitation on travel expenses within the National 
     Forest System as proposed by the Senate.


                              construction

       $163,600,000 is appropriated for Construction instead of 
     $163,500,000 as proposed by the conference agreement on H.R. 
     1977. The change from the earlier agreement is an increase of 
     $100,000 for collocation of the Oregon State office of the 
     Bureau of Land Management with the Pacific northwest regional 
     office of the Forest Service.
       Bill Language. Language has been included to permit the 
     transfer of trail construction funds, appropriated in fiscal 
     year 1995 for the construction of the Columbia Gorge 
     Discovery Center, to the group titled the ``Non-Profit 
     Citizens for the Columbia Gorge Discovery Center'', as 
     proposed by the Senate.


                            land acquisition

       $39,400,000 is appropriated for Land Acquisition instead of 
     $41,200,000 as proposed by the conference agreement on H.R. 
     1977, a reduction of $1,800,000 below the earlier agreement, 
     including decreases of $1,700,000 for Federal land 
     acquisition and $100,000 for acquisition management. The 
     managers are very concerned that the Service has proceeded 
     with specific land acquisitions this year without the 
     approval of the House and Senate appropriations committees, 
     and bill language has been included requiring the Service to 
     obtain the approval of the committees before proceeding with 
     any further land acquisitions in fiscal year 1996.


                southeast alaska economic disaster fund

       $110,000,000 is appropriated for the Southeast Alaska 
     Economic Disaster Fund. No funds were provided for this new 
     account in the conference agreement on H.R. 1977. These funds 
     are provided for grants to communities affected by the 
     declining timber program on the Tongass National Forest. This 
     issue is discussed in more detail in section 325 of Title 
     III--General Provisions.


               administrative provisions, forest service

       The Tongass National Forest provisions addressed under this 
     heading in the conference agreement on H.R. 1977 have been 
     moved to section 325 under Title III--General Provisions.

                          DEPARTMENT OF ENERGY


                 fossil energy research and development

       $417,018,000 is appropriated for Fossil Energy Research and 
     Development instead of $417,169,000 as proposed by the 
     conference agreement on H.R. 1977. The change from the 
     earlier agreement is a decrease of $151,000 for headquarters 
     administration.
       The managers understand that the fiscal year 1997 budget 
     will reflect the transfer of the health and safety research 
     programs of the Bureau of Mines to the National Institute for 
     Occupational Safety and Health (NIOSH) in the Department of 
     Health and Human Services. The managers encouraged such a 
     transfer in the fiscal year 1996 conference agreement on H.R. 
     1977 and see no reason to delay the transfer. The managers 
     strongly encourage the Department of Energy to enter into an 
     interagency agreement with NIOSH for the fiscal year 1996 
     funding. In determining the allocation of funds for the 
     transferred functions, the managers expect the DOE and NIOSH 
     to consider the concerns of all interested parties, including 
     industry and labor. The managers also expect the agencies to 
     recognize the importance of maintaining a health and safety 
     research presence in the East and in the West.


                          energy conservation

       $553,189,000 is appropriated for Energy Conservation 
     instead of $553,293,000 as proposed by the conference 
     agreement on H.R. 1977. The change from the earlier agreement 
     is a decrease of $104,000 for headquarters administration.

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                         Indian Health Service


                         indian health services

       Bill Language. The managers have not agreed to earmark 
     funds for inhalant abuse treatment programs as proposed by 
     the Senate. The managers understand that the Indian Health 
     Service provides for both direct care and referrals for 
     adolescents afflicted with inhalant abuse problems and 
     encourage IHS to continue to refer patients, as appropriate, 
     for treatment of such abuse. The managers are aware of the 
     particular expertise of the Our Home Inhalant Abuse Center, 
     and encourage IHS to continue to refer patients to this 
     facility, as appropriate.

                         OTHER RELATED AGENCIES

                        Smithsonian Institution


                         salaries and expenses

       $311,188,000 is appropriated for Salaries and Expenses 
     instead of $308,188,000 as proposed by the conference 
     agreement on H.R. 1977. The change from the earlier agreement 
     is an increase of $3,000,000 for voluntary separation 
     incentive payments and other costs associated with employee 
     separations pursuant to the authority provided for employee 
     ``buy-outs'' in section 339 of this Act.

                     TITLE III--GENERAL PROVISIONS

       Section 314. Deletes the language dealing with the Interior 
     Columbia Basin Ecosystem Management Project proposed in the 
     conference agreement on H.R. 1977 and replaces it with a 
     limitation on the use of funds for implementing regulations 
     or requirements to regulate non-Federal lands with respect to 
     this project.
       Section 325. Bill language is included providing for a one-
     year moratorium on establishment of a new Tongass Land 
     Management Plan for the Tongass National Forest in southeast 
     Alaska. The moratorium would be in effect for one year after 
     the date of enactment of this Act rather than for two fiscal 
     years as proposed by the conference agreement on H.R. 1977. 
     In amending or revising the current plan, the Secretary may 
     establish habitat conservation areas, and impose any 
     restriction or land use designations deemed appropriate, so 
     long as the number of acres in the timber base and resulting 
     allowable sale quantity is not less than the amounts 
     identified in the preferred alternative (alternative P) in 
     the October 1992 Tongass land and resource management plan. 
     The Secretary may implement compatible standards and 
     guidelines, as necessary, to protect habitat and preserve 
     multiple uses of the Tongass National Forest.
       The language has been augmented from the version included 
     in H.R. 1977 to address the Administration's concerns about 
     clearcutting. The provision makes it clear that nothing in 
     this section shall be interpreted as mandating clearcutting 
     or unsustainable timber harvesting. The language also makes 
     it clear that any revision, amendment, or modification shall 
     be based on research results obtained through the application 
     of the scientific method and sound, verifiable scientific 
     data. Data are sound, verifiable, and scientific only when 
     they are collected and analyzed using the scientific method. 
     The scientific method requires the statement of an hypothesis 
     capable of proof or disproof; preparation of a study plan 
     designed to collect accurate data to test the hypothesis; 
     collection and analysis of the data in conformance with the 
     study plan; and confirmation, modification, or denial of the 
     hypothesis based upon peer-reviewed analysis of the collected 
     data. The data used shall include information collected in 
     the southeast Alaska ecosystem.

[[Page H4196]]

       The section also includes language to allow certain timber 
     sales, that have cleared the National Environmental Policy 
     Act (NEPA) and the Alaska National Interest Lands 
     Conservation Act (ANILCA) review processes, to be awarded if 
     the Forest Service determines that additional analysis under 
     NEPA and ANILCA is not necessary.
       The managers have also provided authority to the President 
     to suspend the provisions mentioned above with respect to the 
     Tongass National Forest in Alaska if he determines that such 
     a suspension is appropriate based on public interest in sound 
     environmental management or protection of cultural, 
     biological or historic resources. Any such suspension must be 
     reported to the Congress. Language is included to clarify 
     that if the suspension is exercised, the duration of the 
     suspension would not exceed the period in which the 
     provisions of the section would otherwise be in effect.
       The managers are very concerned about the negative impacts 
     on the southeastern Alaska economy of a declining Federal 
     timber program on the Tongass National Forest. The managers 
     are aware of concerns that proposed modifications to the 
     Tongass Land Management Plan give insufficient attention to 
     the economic ramifications of a reduced timber sales program, 
     and urge the Administration to consider strongly the 
     socioeconomic impacts of its proposed alternatives. In 
     implementing this section, the Forest Service shall prepare a 
     city-by-city socioeconomic analysis of the effect of reducing 
     the suitable timber land base or timber sales levels on the 
     communities of southeast Alaska and on the potential of 
     restoring a timber economy in Wrangell and Sitka.
       To address these job losses and economic impacts, a new 
     southeast Alaska disaster assistance fund totaling $110 
     million has been established under the Forest Service. The 
     funds are provided as direct grants to the affected 
     communities to employ former timber workers and for community 
     development projects, and as direct payments in proportion to 
     the percentage of Tongass timber receipts realized by these 
     communities in fiscal year 1995.
       The grants are provided with broad authority for the 
     community to pursue economic and infrastructure development 
     projects that employ displaced timber workers. This fund is 
     intended to be an interim measure until while uncertainties 
     with the available timber supply are resolved and a timber 
     economy revitalized. The managers encourage the affected 
     communities to develop comprehensive plans for how they 
     intend to spend these funds.
       The managers strongly urge the Administration to comply 
     with the requirement of the Tongass Timber Reform Act to meet 
     ``market demand'' for timber sales on the Tongass. The 
     President may nevertheless choose to suspend this section.
       The managers agree that the availability of funds from this 
     new disaster assistance fund is contingent upon the President 
     executing the waiver authority. In the event legislation is 
     enacted in the future that increases the timber sales program 
     to meet market demand on the Tongass National Forest, it 
     would be the expectation of the managers that these funds 
     would be no longer available.
       Travel. The managers have not agreed to place a statutory 
     limit on the use of travel funds as proposed by the House. 
     The managers expect each agency under the jurisdiction of the 
     Interior and Related Agencies bill to monitor carefully 
     travel expenses and to avoid non-essential travel.
       Section 336. Inserts new language placing a moratorium on 
     the issuance of a final rulemaking on jurisdiction, 
     management and control over navigable waters in the State of 
     Alaska with respect to subsistence fishing. The moratorium is 
     for fiscal year 1996 rather than through May 15, 1997, as 
     proposed by the Senate. The managers are concerned that 
     recent court decisions place requirements on the Departments 
     of the Interior and Agriculture to assume management 
     authority in navigable waters and that such management could 
     cost each agency several millions of dollars annually. In an 
     era of declining budgets, this added burden would have an 
     adverse impact on other important programs. The managers urge 
     the State of Alaska and all parties involved to work toward 
     developing a viable, long term solution to the subsistence 
     problem. The solution should provide for State management of 
     fish and wildlife in Alaska while protecting those who depend 
     on subsistence resources.
       Employee Details. The managers have not agreed to place a 
     statutory limitation on the temporary detail of employees 
     within the Department of the Interior as proposed by the 
     House. The Department should continue to report quarterly on 
     the use of employee details and should not use such personnel 
     details to offset programmatic or administrative reductions.
       Section 337. Directs the Department of the Interior to 
     transfer to the Daughters of the American Colonists a plaque 
     in the possession of the National Park Service. The Park 
     Service currently has this plaque in storage and this 
     provision provides for its return to the organization that 
     originally placed the plaque on the Great Southern Hotel in 
     Saint Louis, Missouri in 1933 to mark the site of Fort San 
     Carlos.
       Section 338. Inserts new language requiring that funds 
     obligated for salaries and expenses of the Pennsylvania 
     Avenue Development Corporation and for international forestry 
     activities of the Forest Service be offset from other 
     specified sources upon enactment of this Act.
       Section 339. Provides one-time authority for the 
     Smithsonian Institution to offer early retirement 
     opportunities and retirement bonuses to employees through 
     October 1, 1996.
       Greens Creek Land Exchange. The managers have not agreed to 
     bill language, proposed by the Senate in Title III, section 
     3015 of the Senate passed version of H.R. 3019, which would 
     have incorporated the Greens Creek Land Exchange Act of 1996 
     into this Act. This legislation was signed into law (Public 
     Law 104-123) on April 1, 1996.

            DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES

       Agency Priorities. The managers have not agreed to 
     statutory language, proposed by the Senate in section 1203 of 
     Title II, chapter 12, which would have mandated the 
     allocation of emergency supplemental funds based on agency 
     prioritization processes. The managers understand that the 
     initial estimates of emergency requirements that have been 
     provided are based on very preliminary information and that 
     those initial estimates, because of time constraints, may not 
     have included every project which needs to be addressed. The 
     managers expect each agency to develop on-the-ground 
     estimates of all its natural disaster related needs and to 
     address these needs consistent with agency priorities.
       Contingent Appropriations. The availability of those 
     portions of the appropriations detailed in this chapter that 
     are in excess of the Administration's budget request for 
     emergency supplemental appropriations are contingent upon 
     receipt of a budget request that includes a Presidential 
     designation of such amount as emergency requirements as 
     defined in the Balanced Budget and Emergency Deficit Control 
     Act of 1985, as amended.

                       DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management


                        construction and access

       An additional $5,000,000 in emergency supplemental 
     appropriations for Construction and Access is made available 
     as proposed by the Senate instead of $4,242,000 as proposed 
     by the House. Of this amount, $758,000 is contingent upon 
     receipt of a budget request that includes a Presidential 
     designation of such amount as an emergency requirement as 
     defined in the Balanced Budget and Emergency Deficit Control 
     Act of 1985, as amended.


                   oregon and california grant lands

       An additional $35,000,000 in emergency supplemental 
     appropriations for Oregon and California Grant Lands is made 
     available as proposed by the Senate instead of $19,548,000 as 
     proposed by the House. Of this amount, $15,452,000 is 
     contingent upon receipt of a budget request that includes a 
     Presidential designation of such amount as an emergency 
     requirement as defined in the Balanced Budget and Emergency 
     Deficit Control Act of 1985, as amended.

                United States Fish and Wildlife Service


                          resource management

       An additional $1,600,000 in emergency supplemental 
     appropriations for Resource Management is made available as 
     proposed by the Senate instead of no funding as proposed by 
     the House. The entire amount is contingent upon receipt of a 
     budget request that includes a Presidential designation of 
     such amount as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.


                              construction

       An additional $37,300,000 in emergency supplemental 
     appropriations for Construction is made available as proposed 
     by the Senate instead of $20,505,000 as proposed by the 
     House. Of this amount, $16,795,000 is contingent upon receipt 
     of a budget request that includes a Presidential designation 
     of such amount as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.
       The managers have neither agreed to bill language, proposed 
     by the Senate, earmarking specific funds for Devils Lake, ND 
     nor to report language earmarking funds for other locations. 
     The Service should carefully consider the needs at Devils 
     Lake, ND and at Kenai, AK as it allocates funds.

                         National Park Service


                              construction

       An additional $47,000,000 in emergency supplemental 
     appropriations for Construction is made available as proposed 
     by the Senate instead of $33,601,000 as proposed by the 
     House. Of this amount, $13,399,000 is contingent upon receipt 
     of a budget request that includes a Presidential designation 
     of such amount as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.

                    United States Geological Survey


                 surveys, investigations, and research

       An additional $2,000,000 in emergency supplemental 
     appropriations for Surveys, Investigations, and Research is 
     made available as proposed by the Senate instead of 
     $1,176,000 as proposed by the House. Of this amount, $824,000 
     is contingent upon receipt of a budget request that includes 
     a Presidential designation of such amount as an emergency 
     requirement as defined in the Balanced Budget and Emergency 
     Deficit Control Act of 1985, as amended.

                        Bureau of Indian Affairs


                      operation of indian programs

       An additional $500,000 in emergency supplemental 
     appropriations for the Operation of

[[Page H4197]]

     Indian Programs is made available as proposed by the House 
     and by the Senate.


                              construction

       An additional $16,500,000 in emergency supplemental 
     appropriations for Construction is made available as proposed 
     by the Senate instead of $9,428,000 as proposed by the House. 
     Of this amount, $7,072,000 is contingent upon receipt of a 
     budget request that includes a Presidential designation of 
     such amount as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.

                 Territorial and International Affairs


                       assistance to territories

       An additional $13,000,000 in emergency supplemental 
     appropriations for Assistance to Territories is made 
     available as proposed by the Senate instead of $2,000,000 as 
     proposed by the House. Of this amount, $11,000,000 is 
     contingent upon receipt of a budget request that includes a 
     Presidential designation of such amount as an emergency 
     requirement as defined in the Balanced Budget and Emergency 
     Deficit Control Act of 1985, as amended.

                       DEPARTMENT OF AGRICULTURE

                             Forest Service


                         national forest system

       An additional $26,600,000 in emergency supplemental 
     appropriations for the National Forest System is made 
     available as proposed by the Senate instead of $20,000,000 as 
     proposed by the House. Of this amount $6,600,000 is 
     contingent upon receipt of a budget request that includes a 
     Presidential designation of such amount as an emergency 
     requirement as defined in the Balanced Budget and Emergency 
     Deficit Control Act of 1985, as amended.
       The managers have not agreed to bill language, proposed by 
     the Senate, earmarking specific funds for the Amalgamated 
     Mill site in the Willamette National Forest, OR. The Service 
     should carefully consider the needs at this site as it 
     allocates funds.


                              construction

       An additional $60,800,000 in emergency supplemental 
     appropriations for Construction is made available as proposed 
     by the Senate instead of $60,000,000 as proposed by the 
     House. Of this amount, $20,800,000 is contingent upon receipt 
     of a budget request that includes a Presidential designation 
     of such amount as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.

Appropriations for the Departments of Labor, Health and Human Services 
                   and Education and Related Agencies

       Section 101(d) of H.R. 3019 provides appropriations for 
     programs, projects and activities in the Departments of 
     Labor, Health and Human Services and Education and Related 
     Agencies Appropriations Act, 1996. In implementing this 
     agreement, the departments and agencies should comply with 
     the language and instructions set forth in House report 104-
     209 and Senate reports 104-145 and 104-236. In those cases 
     where this language and instruction specifically addresses 
     the allocation of funds which parallels the funding levels 
     specified in the Congressional budget justifications 
     accompanying the fiscal year 1996 budget or the underlying 
     authorizing statute, the conferees concur with those 
     recommendations. With respect to the provisions in the above 
     House and Senate reports that specifically allocate funds 
     that are not allocated by formula in the underlying statute 
     or identified in the budget justifications, the conferees 
     have reviewed each and have included those in which they 
     concur in this joint statement.
       None of the appropriations provided herein are contingent 
     upon any subsequent actions by the Congress or the President.
       The Departments of Labor, Health and Human Services and 
     Education and Related Agencies Appropriations Act, Fiscal 
     Year 1996, put in place by this bill, incorporates the 
     following agreements of the managers:

                      TITLE I--DEPARTMENT OF LABOR

                 Employment and Training Administration


                    training and employment services

       The conference agreement includes $4,146,278,000, instead 
     of $3,108,978,000 as proposed by the House and $4,322,278,000 
     as proposed by the Senate. The agreement includes 
     $625,000,000 for the summer youth employment program, instead 
     of $635,000,000 as proposed by the Senate and no funding as 
     proposed by the House.
       The conference recognizes that in many high unemployment 
     and high poverty areas, the number of low-income youth 
     seeking summer employment far exceeds the number of job 
     opportunities. The conference also recognizes, however, that 
     the current federally-funded summer jobs program has not 
     lived up to its potential for providing meaningful work 
     experience and teaching solid job skills to such youth. The 
     conference is also aware that the relevant authorizing 
     committees are developing job training reform legislation to 
     consolidate over 90 separate programs and to block grant 
     funds and authority to States and localities. The conference, 
     therefore, considers funds for the fiscal year 1996 summer 
     jobs program to be transition funding--in future years to be 
     folded into the new consolidated block grants for at-risk 
     youth. Governors and localities will have considerable 
     flexibility to use these funds in subsequent years to develop 
     meaningful programs for at-risk youth that teach youngsters 
     job skills in demand and sound work habits; that are closely 
     linked to the needs of employers; and that offer integrated 
     work and academic learning opportunities to youth who 
     demonstrate a willingness to learn and responsible behavior.
       The agreement includes an amount of $2,500,000 for the 
     fiscal year 1996 Paralympic Games, instead of $5,000,000 as 
     proposed in the House and Senate bills. These funds will be 
     used by the organizer of the games for the following 
     activities prior to, during, and immediately following the 
     games: (1) training and employment costs of volunteers 
     working in the games; (2) training and staff costs for the 
     days of the games; (3) training and travel for officials of 
     the games. The grantee shall provide such information as 
     shall be required by the Department of Labor, including a 
     detailed statement of work and budget, and financial reports 
     providing a breakout of the costs of the activities performed 
     under the grant. The conferees have also provided funding for 
     the Paralympic Games in the Department of Education and in 
     the Social Security Administration.
       The agreement includes language to permit service delivery 
     areas to transfer funds between titles II-B and II-C of the 
     Job Training Partnership Act, with the approval of the 
     Governor of the State. The House and Senate bills only 
     permitted the transfer to take place from title II-C to title 
     II-B. In addition, the agreement permits the transfer of 
     funds between title II-A and title III of the Act as proposed 
     by the Senate, instead of permitting the transfer of funds 
     between all title II programs and title III as proposed by 
     the House.
       It is the intent of the conferees that in committing 
     National Reserve account funds appropriated under title III 
     of the Job Training Partnership Act, the Secretary of Labor 
     encourage Governors to contract, where possible, with the 
     private sector for the provision of outplacement services to 
     Federal employees seeking employment in the private sector.
       The conferees have included funds to continue the National 
     Occupational Information Coordinating Committee (NOICC) and 
     its affiliated State committees during the anticipated 
     transition to a new administrative structure proposed in 
     pending authorizing legislation and urge that the Departments 
     of Labor and Education rely on NOICC advice and personnel 
     during this transition.
       The conference agreement for the Job Training Partnership 
     Act pilots and demonstrations maintains the current level for 
     the Microenterprise Grants program and the American Samoan 
     employment and training program, and includes the level 
     recommended in the Senate report accompanying H.R. 2127 for 
     an industrial employment program for the disabled.


            community service employment for older americans

       The conference agreement includes $373,000,000, instead of 
     $350,000,000 as proposed by both the House and the Senate. 
     The agreement earmarks 22 percent of the funds for the States 
     and 78 percent for national contractors as proposed by the 
     Senate, instead of 35 percent for the States and 65 percent 
     for the contractors as proposed by the House.


     state unemployment insurance and employment service operations

       The conference agreement includes $110,000,000 for the one-
     stop career centers program as proposed by the Senate, 
     instead of $92,000,000 as proposed by the House.


        payments to the unemployment trust fund and other funds

                              (rescission)

       The conference agreement rescinds $266,000,000 from this 
     account as proposed by the Senate, instead of $250,000,000 as 
     proposed by the House.

                  Employment Standards Administration


                         salaries and expenses

       The conference agreement includes $266,644,000, instead of 
     $255,734,000 as proposed by the House and the Senate.

             Occupational Safety and Health Administration


                         salaries and expenses

       The conference agreement includes $304,984,000, instead of 
     $280,000,000 as proposed by the House and $288,985,000 as 
     proposed by the Senate.
       It is the intent of the conferees that the Occupational 
     Safety and Health Administration give high priority to 
     effective voluntary cooperative efforts such as the Voluntary 
     Protection Program.

                        Departmental Management


                         salaries and expenses

       The conference agreement includes $141,350,000, instead of 
     $136,300,000 as proposed by the House and $140,380,000 as 
     proposed by the Senate. Additional funding is provided to 
     avoid lengthy staff furloughs in the Benefits Review Board.
       The conferees have provided $8,900,000 for the Bureau of 
     International Labor Affairs. This amount includes full 
     funding for activities to combat international child labor 
     problems as outlined in the Senate report on H.R. 2127.
       The conferees understand that there is some question 
     concerning the funding level for ILAB needed to avoid 
     personnel furloughs. The conferees reiterate that they have 
     provided transfer authority to the Secretary to deal with 
     such exigencies and encourage him to propose reprogramming of 
     funds if necessary to avoid furloughs.

[[Page H4198]]

       In addition, the agreement includes language proposed by 
     the Senate to restrict certain activities of the Office of 
     the Solicitor and the Benefits Review Board with respect to 
     cases under the Longshore and Harbor Workers' Compensation 
     Act. The language provides that if the Board, prior to 
     September 12, 1996, fails to act on any Longshore decision 
     that has been appealed to it and has been pending before it 
     for more than 12 months, the decision shall be considered 
     affirmed by the Board on that date and shall be considered 
     the final order of the Board for purposes of obtaining a 
     review in the U.S. Courts of Appeal. Further, beginning on 
     September 13, 1996, the Board shall decide all appeals under 
     the Longshore Act not later than one year after the appeal 
     was filed; if the Board fails to do so, then the decision 
     shall be considered the final order of the Board for purposes 
     of obtaining a review in the U.S. Courts of Appeal. The 
     petitioner has the option to continue the proceeding before 
     the Board for a period of 60 days; if no decision is made 
     during that time, the decision shall be considered the final 
     order of the Board for purposes of obtaining a review in the 
     U.S. Courts of Appeals. The House bill had no similar 
     provision. The language is not applicable to the review of 
     any decisions under the Black Lung Benefits Act.
       The conferees intend that, to the extent possible, funding 
     for technical assistance and training for local displaced 
     homemaker programs should not be reduced by more than the 
     overall percentage reduction for the Women's Bureau.
       The conferees support the ongoing efforts to rid the 
     International Brotherhood of Teamsters of organized crime 
     influence pursuant to the consent decree. Consistent with 
     direction provided in both the House and Senate committee 
     reports on the fiscal year 1996 appropriations bill, the 
     conferees provide that up to $5,600,000 of the amounts 
     available for obligation to the Department of Labor during 
     fiscal year 1996 may be allocated for this purpose, subject 
     to normal reprogramming requirements of the committees.
       The conferees have agreed to include a fund transfer 
     provision (section 103) to give the Department more 
     flexibility in managing its appropriations. However, the 
     continuation of this provision in the future will depend on 
     the Department's achieving and maintaining audited financial 
     statements in accordance with the Chief Financial Officers 
     Act of 1990 and Office of Management and Budget Bulletin No. 
     93-06.

                           General Provisions

       The conference agreement includes a general provision 
     proposed by the House modified to set aside section 427(c) of 
     the Job Training Partnership Act in cases where a Job Corps 
     center does not meet national performance standards 
     established by the Secretary. The Senate bill had no similar 
     provision. Section 427(c) prohibits the Department of Labor 
     from contracting with a private contractor to operate a Job 
     Corps civilian conservation center.
       The conference agreement includes a general provision as 
     proposed by the Senate modified to prohibit the Occupational 
     Safety and Health Administration and the State programs that 
     operate with Federal funds from promulgating or issuing any 
     proposed or final standard or guideline with respect to 
     ergonomic protection but permits the agency to conduct any 
     peer-reviewed risk assessment activity regarding ergonomics. 
     The House bill would have also prohibited the development of 
     any standard or guideline and the recording and reporting of 
     any occupational injuries and illnesses related to ergonomic 
     protection.

           TITLE II--DEPARTMENT OF HEALTH AND HUMAN SERVICES

              Health Resources and Services Administration


                     health resources and services

       The conference agreement appropriates $3,077,857,000 
     instead of $3,052,752,000 as proposed by the House and 
     $2,954,864,000 in regular funding and $55,256,000 in 
     contingency funding as proposed by the Senate.
       The conference agreement includes the legal citation for 
     the Native Hawaiian Health Care program as proposed by the 
     Senate. The House bill did not include the citation. The 
     conferees have increased funding for the consolidated health 
     centers line so that health care activities funded under the 
     Native Hawaiian Health Care program can be supported under 
     the broader health centers line if the agency feels it is 
     appropriate.
       The conference agreement includes an additional $62,700,000 
     over fiscal year 1995 for title II of the Ryan White AIDS 
     CARE Act for a total funding level of $260,847,000. The House 
     bill included an increase of $52,000,000 over the fiscal year 
     1995 level. The Senate amendment provided the additional 
     $52,000,000 but as part of its contingent funding section. 
     The conference agreement incorporates bill language in the 
     Senate amendment that would make clear that the $52,000,000 
     is to be used for the AIDS drug assistance portion of title 
     II and distributed according to the current formula. The 
     conference agreement also identifies in bill language the 
     amounts appropriated for titles I and II of the Ryan White 
     AIDS CARE Act as provided in the House bill.
       The conference agreement does not include $3,256,000 in 
     contingency funding for the National Health Service Corps 
     (NHSC) as proposed by the Senate. The conference agreement 
     provides $115,745,000 in non-contingent funding. The House 
     bill did not include contingent funding for NHSC.
       The conference agreement includes language as proposed by 
     the House limiting new cities entering the title I Ryan White 
     program to those permitted in the pending reauthorization 
     bill. The Senate amendment had no similar provision.
       The conference agreement includes language holding the 
     formula grant funding for current title I grantees under the 
     Ryan White AIDS CARE Act to no less than 99 percent of their 
     fiscal year 1995 funding level by reallocating supplemental 
     grant funds. The Senate amendment included a hold harmless 
     provision assuring 100 percent of the fiscal year 1995 
     funding level in fiscal year 1996 for current title I 
     grantees. The House bill had no comparable provision.
       The conference agreement deletes language proposed in the 
     Senate amendment and last year's bill identifying funding for 
     Area Health Education Centers and overriding set-asides in 
     the authorizing statute pertaining to the types of centers 
     that may be funded. The house bill had no comparable 
     provision. The conferees understand that this language is no 
     longer necessary.
       The conference agreement modifies a technical legal 
     citation contained in both the House bill and Senate 
     amendment pertaining to the Federal Tort Claims Act.
       The conferees intend that the agency may use up to 
     $3,000,000 of the funding provided for the National Health 
     Service Corps for State offices of rural health.
       The conferees strongly believe that the family planning 
     program should be formally administered, as well as funded, 
     in the Health Resources and Services Administration as a 
     separate program within the Office of the Administrator, but 
     have chosen to leave the decision regarding administration to 
     the Secretary and have not mandated the transfer.
       The conferees include $20,000,000 for health care 
     facilities grants, of which $10,000,000 is designated for the 
     facility requested in the President's fiscal year 1996 
     budget, and $10,000,000 is designated for items identified in 
     the Senate report accompanying the amendment to H.R. 3019 
     pertaining to oral health care and health care for 
     disadvantaged women. Also included as part of this second 
     $10,000,000 is funding to improve rural health care access.

               Centers for Disease Control and Prevention


                disease control, research, and training

                              (rescission)

       Full year funding for the Centers for Disease Control and 
     Prevention (CDC) was provided in P.L. 104-91, the continuing 
     resolution enacted January 6, 1996.
       The conference agreement includes language as proposed by 
     the House rescinding obligated, but unexpended, balances from 
     grants to States in fiscal years 1993, 1994, and 1995 for 
     immunization activities. The agreement includes language as 
     proposed by the House providing authority to transfer funds 
     available from the sale of surplus vaccine from the vaccine 
     stockpile to other activities within the jurisdiction of the 
     agency, with prompt notification of Congress of any transfer. 
     These two provisions were included in nearly identical form 
     in sections 209 and 211 of the Senate amendment. The 
     conference agreement incorporates one technical citation 
     change on the second provision contained in the Senate 
     amendment.
       The conferees are agreed that funding for the research and 
     training activities of the National Institute for 
     Occupational Safety and Health has been provided on a 
     consolidated basis as proposed by the Senate. The table 
     printed in the Congressional Record accompanying H.R. 3019 as 
     passed by the House had allocated funds separately for 
     research and training activities.
       The conferees are supportive of CDC proceeding with a 
     school-based immunization demonstration program to carry 
     forward the recommendations of the Advisory Committee on 
     Immunization Practices for early adolescents, to the extent 
     this is possible using available funds, including section 317 
     carryover funds.
       The conferees are aware of the benefits of community health 
     promotion programs that control the spread of infectious 
     diseases, reduce chronic disease, and lower risk factors and 
     encourage the Director to support activities to evaluate 
     innovative health information dissemination programs for the 
     development of models for public outreach and professional 
     development.
       The conferees intend that as CDC applies the $31,000,000 
     administrative reduction that was included in P.L. 104-91 
     providing full year funding for the agency that equipment 
     expenditures be included in the definition of administrative 
     expenses.
       The conferees confirm their understanding that the National 
     Immunization Survey will be continued in fiscal year 1996.

                     National Institutes of Health

       The National Institutes of Health (NIH) were funded for the 
     full year in P.L. 104-91, the continuing resolution enacted 
     January 6, 1996.
       The conferees have specifically endorsed the following 
     initiatives mentioned in the Senate report:
       (a) The neurodegenerative disorders initiative within the 
     Office of the Director;
       (b) The Office of Rare Disease Research program;
       (c) The Institutional Development Award Program (IDeA) 
     grant program; and
       (d) The Office of Dietary Supplements program.

[[Page H4199]]

       Of the $20,000,000 provided within the National Center for 
     Research Resources for extramural facility construction, the 
     conferees intend that $2,500,000 be reserved for construction 
     and renovation projects at qualified regional primate 
     centers.
       The conferees are very supportive of the efforts of the 
     National Institute on Aging to enhance research on 
     Alzheimer's disease and urge the Institute to consider it a 
     top priority. The conferees understand that promising 
     research opportunities in the neuroscience of Alzheimer's 
     disease exist, including research on the formation and 
     maintenance of synapses, the mechanisms of beta-amyloid 
     formation, and the biochemical action mechanisms of drugs 
     used in the treatment of Alzheimer's disease. The Institute 
     is strongly encouraged to focus additional attention on these 
     promising areas, including consideration of expanding the 
     number of Alzheimer's Disease research centers.
       The conferees are supportive of expanding alternative 
     resources to the use of animals, particularly through 
     ensuring regular access to human tissues and organs. The 
     conferees recommend that the Director of NIH give 
     consideration to establishing a multi-Institute initiative to 
     support an expanded human tissue resource and ensure that the 
     needs of the scientific community can be served.
       The conferees are agreed that sufficient funds have been 
     provided within the Office of the Director to provide core 
     support for the National Bioethics Advisory Commission.
       The conferees intend NIH to hold administrative costs 
     within the research management and support category to 7.5 
     percent below fiscal year 1995 levels (with an additional 2.5 
     percent reduction to congressional and public affairs 
     functions) as indicated in the House report on H.R. 2127. 
     However, the conferees do not intend that public education 
     programs that are placed within the research management and 
     support budget of some Institutes be considered part of the 
     cost pool to be reduced.
       The conferees request NIH to expeditiously complete review 
     of its intramural primate facilities and promptly begin the 
     surplusing of those facilities NIH deems to be excess 
     property.
       Public Law 104-91, which provided full year funding for the 
     National Institutes of Health, includes $26,598,000 for the 
     Office of AIDS Research (OAR), including $10,000,000 for the 
     Director's emergency discretionary fund authorized by section 
     2356 of the Public Health Service Act. Funding for AIDS 
     research for fiscal year 1996 was provided in the manner set 
     forth in H.R. 2127 as passed by the House, which provided 
     appropriations to each Institute including funding for AIDS. 
     The bill as reported in the Senate had appropriated funds for 
     AIDS research to the Office of AIDS Research, as had been 
     done in fiscal year 1995. The conferees are agreed that the 
     fiscal year 1996 funding structure for AIDS research 
     activities of the NIH is not a precedent for the allocation 
     of AIDS research funding for fiscal year 1997. The conferees 
     continue to strongly support the critical work of the 
     Director of the OAR to coordinate the scientific, budgetary, 
     legislative, and policy elements of the NIH AIDS research 
     program and agree that the funding structure for AIDS 
     research in fiscal year 1996 should not diminish this 
     important responsibility. The conferees note that section 
     212, providing 3 percent transfer authority within the total 
     identified by the NIH for AIDS research, enhances the 
     Director's authority to ensure that AIDS research supported 
     by the NIH is carried out in accordance with the AIDS 
     research plan.

       Substance Abuse and Mental Health Services Administration

       The conference report provides $1,883,715,000 for the 
     Substance Abuse and Mental Health Services Administration, of 
     which $275,420,000 is provided for the mental health block 
     grant, and $1,234,107,000 is provided for the substance abuse 
     block grant. The agreement also funds consolidated substance 
     abuse treatment and substance abuse prevention demonstration 
     programs at $90,000,000 each. The House bill included 
     $1,883,715,000 and the Senate bill included $1,800,469,000.
       The conferees understand that SAMHSA has undertaken an 
     agency reorganization to streamline administrative functions. 
     In addition, the agency will begin implementation of new 
     knowledge development and application (KDA) grants in fiscal 
     year 1996. The conferees continue to encourage SAMHSA to 
     focus on evaluation and reporting of outcomes for activities 
     funded under the block grants, demonstrations and KDAs. The 
     conferees understand that KDA grants will generally fund 
     applied research and evaluation, not services. The agreement 
     specifically directs that any KDA grant include a plan to 
     measure and publicly report outcomes relating to the 
     grantee's stated goals and, where relevant, the incidence of 
     substance abuse among individuals studied. The conferees 
     strongly encourage SAMHSA to aggressively and effectively 
     disseminate the results of KDA grants and to integrate these 
     results into services funded in whole or in part by the 
     Federal block grants as well as non-federally funded 
     substance abuse and mental health services. In determining 
     the allocation of funding to existing substance abuse 
     demonstration projects, the conferees encourage the agency to 
     give full consideration to those projects which impact 
     pregnant women and children.
       The conferees recommend that in awarding KDA grants to 
     eligible grantees the Secretary give priority to the 
     development of knowledge and specific interventions that 
     improve the quality and access to services in areas where 
     there is a high incidence of substance abuse and mental 
     illness coupled with other contributing conditions such as 
     high rates of co-morbidities, particularly HIV infection, 
     long waiting lists for treatment, or homelessness.

               Agency for Health Care Policy and Research


                    health care policy and research

       The conference agreement provides a total funding level of 
     $125,310,000 as proposed by the House instead of $128,470,000 
     as proposed by the Senate. Of this amount, $65,186,000 is 
     provided in Federal funds and $60,124,000 is provided through 
     one percent evaluation funding. The House bill provided 
     $94,186,000 in Federal funds and $31,124,000 in one percent 
     funding, while the Senate amendment provided $65,390,000 in 
     Federal funds and $63,080,000 in one percent evaluation 
     funding.

                  Health Care Financing Administration


                           program management

       The conference agreement makes available $1,734,810,000 as 
     proposed by the House instead of $2,111,406,000 as proposed 
     by the Senate and provides an additional $396,000,000 within 
     title VI of the bill for payment safeguard activities, 
     providing total program management funding of $2,130,810,000. 
     The Senate amendment had no comparable title VI provision. 
     The funding in title VI would be canceled if there is a 
     subsequent appropriation enacted for Medicare contractors in 
     an authorizing bill.
       The conferees strongly encourage Medicare contractors to 
     promptly purchase and utilize commercially available 
     automated data processing systems designed to detect abusive 
     Medicare billings.
       The conferees encourage the Health Care Financing 
     Administration to conduct a demonstration program to evaluate 
     whether cardiac case management of patients suffering from 
     congestive heart failure would increase the quality of care 
     delivered and patient satisfaction, as well as deliver such 
     care in a more cost effective manner than current practice.
       The conferees specifically endorse the following:
       (a) No funds may be used for implementation of the 
     Medicare/Medicaid data bank as mentioned in the House report;
       (b) HCFA is encouraged to give full and fair consideration 
     to a proposal to develop a comprehensive health care 
     information management system that would link patient care 
     data across the full range of health care as mentioned in the 
     Senate report.

                Administration for Children and Families


               low income home energy assistance program

                         (Including Rescission)

       The conference agreement provides a rescission of 
     $100,000,000 in previously appropriated 1996 funding as 
     recommended in the House and Senate bills. Total fiscal year 
     1996 funding for the Low Income Home Energy Assistance 
     Program (LIHEAP) is $900,000,000. The conferees intend that 
     up to $22,500,000 of the amounts provided for LIHEAP for 
     fiscal year 1996 be used for the leveraging incentive fund. 
     The conference agreement provides $300,000,000 for the 
     contingency fund for fiscal year 1997, instead of providing 
     that amount for fiscal year 1996 as proposed by the Senate. 
     The agreement also extends the availability for another year 
     of any funds remaining unobligated in the contingency fund at 
     the end of fiscal year 1996. Finally, the agreement does not 
     provide advance fiscal year 1997 funding for the LIHEAP 
     program, the same as the House bill and $1,000,000,000 less 
     than the Senate bill. Funding for FY 1997 will be considered 
     as part of the regular fiscal year 1997 appropriations bill.


                     refugee and entrant assistance

       The conference agreement provides $402,172,000 for Refugee 
     and Entrant Assistance programs, instead of $397,872,000 as 
     proposed in both the House and Senate bills. The agreement 
     includes $55,397,000 for the Targeted Assistance program, an 
     increase of $4,300,000 above the amount provided in the House 
     and Senate bills and the same amount provided in fiscal year 
     1995. The conferees expect that domestic health assessment 
     activities within the preventive health program will be 
     administered in accordance with the decisions of the 
     Secretary of Health & Human Services and direct the 
     Department to notify the Appropriations Committee of such 
     decisions in a timely manner. The conferees agree to the 
     allocation of targeted assistance contained in the House 
     Report 104-209.


                      social services block grant

       The conference agreement provides a mandatory appropriation 
     for the Social Services Block Grant of $2,381,000,000. The 
     House bill provided $2,520,000,000, and the Senate bill 
     provided $2,310,000,000.


                 children and families services program

       The conference agreement includes $4,788,364,000, instead 
     of $4,715,580,000 as proposed by the House and $4,743,604,000 
     as proposed by the Senate.
       The conferees agree with language in Senate report 104-145 
     which would allocate $1,500,000 under the developmental 
     disabilities program for the fifth year of a 5-year 
     demonstration project known as transition and natural 
     supports in the workplace.

[[Page H4200]]

       It has come to the attention of the conferees that eligible 
     Community Development Corporations serving remote rural areas 
     have encountered difficulty in meeting some of the criteria 
     for competing for Community Economic Development (CED) 
     grants. The conferees strongly urge the Office of Community 
     Services to adjust the criteria used in evaluating 
     applications to take into account the unique aspects of job 
     creation in remote rural areas, particularly as they relate 
     to cost per job requirements.
       With respect to Head Start, the conference agreement does 
     not include $250,000 proposed in Senate report 104-145 to 
     continue a demonstration program to train head Start teachers 
     in scientific principles. No funds were included for the 
     program in the House bill.
       With respect to the transitional living program for runaway 
     and homeless youth, the conferees are agreed that the 
     increase provided over the fiscal year 1995 amount shall be 
     for nine grantees whose grants expired in September, 1995 and 
     who were unable to compete for fiscal year 1996 grants 
     because of a departmental administrative oversight.
       The conference agreement includes an earmark of 
     $435,463,000 for the Community Services Block Grant Act as 
     proposed by the Senate. The House had earmarked the same 
     amount in a different manner.

                        Administration on Aging


                        aging services programs

       The conference agreement includes $829,393,000, instead of 
     $801,232,000 as proposed by the House and $831,027,000 as 
     proposed by the Senate.
       The agreement eliminates as separate line items the 
     ombudsman program and the prevention of elder abuse program. 
     Funds for these programs are earmarked in the bill within the 
     supportive services and centers line time and the fiscal year 
     1995 level.
       The agreement includes a legislative provision as proposed 
     by the Senate that would prevent any State from having its 
     administrative costs under title III of the Older Americans 
     Act reduced by more than five percent below the fiscal year 
     1995 level. The House had no similar provision.
       The conference agreement includes three specific funding 
     levels identified in Senate report 104-145 with respect to 
     the aging research program.

                        Office of the Secretary


                    general departmental management

       The conference agreement includes $146,127,000, instead of 
     $143,127,000 as proposed by the House and $137,127,000 as 
     proposed by the Senate.
       The conferees have included an additional $2,000,000 for 
     the Office of the Secretary of the Department of Health and 
     Human Services. The conferees intend that none of these 
     additional funds shall be available to the Office of 
     Intergovernmental Affairs, the immediate office of the 
     Assistant Secretary for Health, the Office of the Assistant 
     Secretary for Legislation or the Office of the Assistant 
     Secretary for Public Affairs. The Secretary is requested to 
     notify the Appropriations Committees of any employees 
     detailed into these offices. The conferees commend the 
     Secretary for the recent reorganization of her office and her 
     decision to replace the Office of the Assistant Secretary for 
     Health with a smaller office which would serve as the senior 
     advisor for health policy. The conferees direct that the 
     Secretary provide the Appropriations Committees with the 
     estimated funding levels and FTE levels for each of the 
     individual offices for fiscal year 1996 funded from this 
     account as soon as possible after enactment of this bill.
       The conferees are agreed that funds are to be made 
     available to the Office of Women's Health from funds 
     available to the Department to carry out development and 
     implementation of the national women's health clearinghouse.
       Sufficient funds have been included by the conferees for 
     the continuation of the existing human services 
     transportation technical assistance program at the fiscal 
     year 1995 funding level.
       The agreement does not include a legal citation for the 
     National Vaccine program as proposed by the Senate. The House 
     bill included no citation. No funding is provided within this 
     account for this program.
       The agreement includes a House provision identifying 
     $7,500,000 for extramural construction within the Office of 
     Minority Health. The Senate bill did not include this 
     provision.

                      Office of Inspector General

       The conference agreement includes total funding for the 
     Office of Inspector General of $79,162,000 as proposed by the 
     Senate instead of $73,956,000 as proposed by the House. Of 
     the total amount, $43,000,000 is provided in title VI of the 
     Labor-HHS-Education Appropriations Act as proposed by the 
     House, and the balance of the funds are provided in this 
     account.
       The agreement includes language proposed by the Senate, not 
     included by the House, which would allow the Inspector 
     General to expend funds transferred to it by the Departments 
     of Justice or Treasury or the Postal Service as a result of 
     asset forfeitures. The forfeitures would be from 
     investigations in which the IG participated.


            public health and social services emergency fund

       The conference agreement includes $9,000,000 for the 
     Emergency Fund as proposed by the Senate. The House bill 
     included no provision for this.
       With respect to the $2,000,000 identified for the 
     implementation of clinical trails related to the early 
     detection of breast cancer, the conferees are agreed that 
     those departmental agencies and institutes with substantial 
     experience and expertise in these matters must be directly 
     involved in the administration of this effort.

                           General Provisions

       The conference agreement includes a limitation in the House 
     bill which prohibits the use of funds for a statutory set-
     aside earmarking the first $5,000,000 of any funds 
     appropriated for NIH extramural facility construction for 
     primate centers. Instead, the conferees have reserved 
     $2,500,000 of the NIH funds provided for extramural 
     construction for primate centers. The Senate amendment had no 
     similar provision.
       The conference agreement includes a provision limiting the 
     amount of one percent evaluation set-aside funding that can 
     be tapped from the Public Health Service agencies to amounts 
     identified in the conference report prior to a report to 
     Congress. The agreement also includes language prohibiting 
     other taps and assessments unless reported to Congress. The 
     House bill and the Senate amendment had similar language for 
     the first provision; the House bill included languages 
     similar to the second provision.
       The conference agreement includes a general provision as 
     proposed by the House that prohibits the funding of the 
     Federal Council on Aging and the Advisory Board on Child 
     Abuse and Neglect. The Senate had no similar provision.
       The conference agreement deletes language included in the 
     Senate amendment pertaining to a rescission of Centers for 
     Disease Control and Prevention (CDC) funding and a 
     reallocation of funds in the agency's vaccine stockpile 
     surplus. These provisions were included under a CDC heading 
     in the House bill, which is reflected in the conference 
     agreement.


                          (Transfer of Funds)

       The conference agreement includes a general provisions as 
     proposed by the House that would authorize the Department of 
     Health and Human Services to transfer up to one percent of 
     funds in any appropriation account to any other account in 
     the Department, provided that the receiving account is not 
     increased by more than three percent thereby and that the 
     Appropriations Committees are notified at least 15 days in 
     advance of any transfer. The Senate had no similar provision.
       The conferees have agreed to include this transfer 
     provision to give the Department more flexibility in managing 
     its appropriations. However, the continuation of this 
     provision in the future will depend on the Department's 
     achieving and maintaining audited financial statements in 
     accordance with the Chief Financial Officers Act of 1990 and 
     Office of Management and Budget Bulletin No. 93-06.


                          (Transfer of Funds)

       The conference agreement includes language permitting the 
     Director of the National Institutes of Health jointly with 
     the Director of the Office of AIDS Research to transfer up to 
     3 percent among the Institutes, Centers, and the National 
     Library of Medicine from the total identified in their 
     apportionment for AIDS research. The transfer must take place 
     within 30 days of enactment of the Act and Congress is to be 
     promptly notified. The House bill and the Senate amendment 
     had similar provisions.
       The conference agreement includes a provision in the House 
     bill permitting the National Library of Medicine at the 
     National Institutes of Health to enter into personal services 
     contracts. The Senate amendment had no similar provision.
       The conference agreement deletes without prejudice a 
     general provision proposed by the Senate that would deem an 
     AFDC waiver submitted by the State of Texas under section 
     1115 of the Social Security Act approved upon the date of 
     enactment of this Act, notwithstanding the Secretary's 
     authority to approve the application. The House had no 
     similar provision.
       The conference agreement includes a provision in the Senate 
     amendment requiring the Secretary of Health and Human 
     Services to reimburse Medicaid claims for State-operated 
     psychiatric hospitals between December 31, 1993 and December 
     31, 1995 that the Secretary would otherwise intend to defer 
     for reimbursement. The provision caps the total amount of 
     claims that could be reimbursed at $54,000,000. The conferees 
     added a provision establishing a new Medicaid matching 
     formula for a State highly affected by disproportionate share 
     hospital payments, effective for State fiscal years 1996-97 
     and 1997-1997. The house bill had no similar provisions.
       The conferees are aware of a number of outstanding Medicaid 
     issues which could not be addressed in this bill. Of 
     particular concern is the 100 percent cap on funding for 
     public hospitals as well as the dilemma faced by several 
     States that have included a modified Federal matching payment 
     in their fiscal year 1997 budgets, reflecting the effort made 
     by the Congress in Medicaid Reform to address the current 
     inequity faced by States with rates between 40 and 50 
     percent. The conferees understand the difficulties that may 
     State Medicaid programs are experiencing, and urge that these 
     important matters be addressed expeditiously by the 
     authorizing committees.

[[Page H4201]]

                   TITLE III--DEPARTMENT OF EDUCATION


                            Education Reform

       The conference agreement includes $530,000,000 for 
     Education Reform programs. Included in this amount is 
     $350,000,000 for the Goals 2000: Educate America Act and 
     language, proposed by the House, which prohibits the use of 
     funds for Goals 2000 national programs. Also included is 
     $180,000,000 for school-to-work programs. The House bill 
     provided $484,500,000 for Education Reform activities, 
     including a contingent appropriation of $389,500,000. The 
     Senate amendment provided $536,000,000 and included 
     $151,000,000 in fiscal year 1997 funding.
       The conference agreement amends the Goals 2000: Educate 
     America Act. Specifically, the agreement includes language in 
     title VII of the bill which:
       Permits school districts, in States that elect not to 
     participate in the Goals 2000 program, to apply directly to 
     the Secretary of Education for Goals 2000 funding, if the 
     State education agency approves;
       Eliminates the requirement that States submit their 
     improvement plans to the Secretary of Education for approval;
       Deletes the requirement for the composition of State and 
     local panels that develop State and local improvement plans;
       Eliminates the National Education Standards and Improvement 
     Council;
       Removes the requirement for States to develop opportunity-
     to-learn standards;
       Clarifies that no State, local education agency, or school 
     shall be required, as a condition of receiving assistance 
     under this title to provide outcomes-based education, or 
     school-based health clinics; and
       Clarifies that nothing in the Goals 2000 legislation will 
     require or permit any State or Federal official to inspect a 
     home, judge how parents raise their children, or remove 
     children from their parents.
       The conferees agree that a State education agency must give 
     approval in order for a local educational agency to apply to 
     the Secretary of Education for funding. A State educational 
     agency is permitted to make a blanket approval or disapproval 
     regarding the participation of local education agencies.
       Regarding the provision on alternatives to secretarial 
     approval of State plans, the conferees agree that submission 
     of such report and notification of amendments to previous 
     State plans meets the requirements of section 306.
       The conferees agree that local education agencies, as part 
     of their school improvement plan, can use their Goals 2000 
     funds for the acquisition of computer technology and the use 
     of technology-enhanced curricula and instruction. The 
     Department of Education is encouraged to advise States that 
     their Goals 2000 funds may be used for this purpose.
       The conference agreement includes a provision, proposed by 
     the Senate, which authorizes the Secretary of Education to 
     grant up to six additional State education agencies authority 
     to waive Federal statutory or regulatory requirements for 
     fiscal year 1996 and succeeding fiscal years. The House bill 
     contained no similar provision.


                    education for the disadvantaged

       The conference agreement includes $7,228,116,000 for 
     Education for the Disadvantaged of which $1,298,386,000 
     becomes available on October 1, 1996 for academic year 1996-
     97. The House provided an appropriation of $6,049,113,000 for 
     this activity and a contingent appropriation of $961,000,000 
     for a total funding level of $7,010,113,000. The Senate 
     amendment provided a fiscal year 1996 appropriation of 
     $6,513,511,000 and a fiscal year 1997 appropriation of 
     $814,489,000 for a total funding level of $7,328,000,000. 
     With respect to the fiscal year 1997 funding, it is the 
     intent of the conferees to provide all funding for title I 
     for the 1997-98 school year through the appropriation of 
     fiscal year 1997 funds in the fiscal year 1997 Labor, Health 
     and Human Services, and Education and Related Agencies bill. 
     The conferees intend that the committee work to adjust the 
     fiscal year 1997 602(b) allocations such that title I can be 
     returned to a normal appropriations and obligation pattern.
       The conference agreement provides that up to $3,500,000 of 
     title I funds be made available to the Secretary to obtain 
     local-education-agency level census poverty data from the 
     Bureau of the Census.
       The agreement does not include provisions, included in the 
     House bill, which would have overridden the provisions of 
     title I regarding minimum State grants and language which 
     would have eliminated a State option to reserve a portion of 
     their title I funds for school improvement activities.


                               impact aid

       The conference agreement provides $693,000,000 for the 
     Impact Aid program, the same as the House bill and an 
     increase of $1,841,000 over the Senate amount of 
     $691.159,000. In combination with the $35,000,000 provided 
     for Impact Aid in P.L. 104-61, this appropriation provides a 
     total of $728,000,000 for Impact Aid in fiscal year 1996, the 
     same amount provided by Congress in fiscal year 1995.
       Within the total provided, the conference agreement 
     includes $581,707,000 for Basic Support Payments, $1,304,000 
     less than the House bill amount of $583,011,000 and $537,000 
     above the Senate bill level of $581,170,000. The agreement 
     also includes $16,293,000 for Payments for Federal Property, 
     an increase of $1,304,000 over both the House and Senate bill 
     amounts of $14,989,000.
       The conference agreement modifies a provision proposed by 
     the Senate (Section 306) regarding unobligated Impact Aid 
     construction funds. The agreement provides that one-half of 
     such unobligated funds shall be awarded for the construction 
     of public elementary or secondary schools on Indian 
     reservations, and that one-half of such funds shall be made 
     available to school districts with military impact according 
     to section 8007 of the Elementary and Secondary Education Act 
     as amended.


                      school improvement programs

       The conference agreement includes $1,223,708,000 for School 
     Improvement programs. The House bill provided $946,227,000 
     for programs in this account. The Senate provided 
     $1,156,987,000 including $208,000,000 in fiscal year 1997 
     appropriations.
       The conferees specifically provide for the following 
     activity included in the Senate report:
       The funds provided for the Education of Native Hawaiians 
     are allocated as follows:

Curricula Development, Teacher Training and Recruitment......$1,500,000
Community-Based Education Learning Centers......................800,000
Hawaiian Higher Education Programs............................1,400,000
Gifted and Talented Program...................................1,200,000
Special Education Programs....................................1,200,000
Native Hawaiian Education Council and Island Councils...........300,000
Family-Based Education Centers................................5,600,000

       The agreement provides $465,981,000 for Safe and Drug Free 
     Schools and Communities instead of the $400,000,000 provided 
     by both the House and Senate bills. This funding level, the 
     same as in fiscal year 1995, provides for $440,981,000 for 
     State Grants and $25,000,000 for National Programs.


                   bilingual and immigrant education

       The conference agreement provides $178,000,000 for 
     Bilingual and Immigrant Education instead of the $150,000,000 
     provided in the House and Senate bills.
       The conferees provided no funding for support services or 
     professional development activities given their belief that 
     funds should be focused on the education of students and the 
     other funding sources available to the Secretary to fund 
     these activities. However, if the Secretary feels that 
     funding these activities within this account is justified, 
     the two Committees will consider a reprogramming request for 
     the Department.


                           special education

       The conference agreement includes $3,245,447,000 for 
     special education programs, the same amount recommended by 
     both the House and Senate bills.
       The conferees have also modified a provision proposed by 
     the Senate to enable the Republic of the Marshall Islands, 
     the Federated States of Micronesia, and the Republic of Palau 
     to be eligible to receive both formula and discretionary 
     grants. The agreement also includes language proposed by the 
     Senate that permits the Department of Education to distribute 
     funding to the federal center and regional centers in 
     proportion to the funding levels made available in the 
     previous fiscal year.
       The conferees agree that Centers for the Deaf under Post 
     Secondary Education programs should be awarded on a 
     competitive basis instead of continuing the four existing 
     centers as proposed in the Senate report.


            rehabilitation services and disability research

       The conference agreement includes $2,456,120,000 for 
     Rehabilitation Services and Disability Research instead of 
     the $2,452,620,000 proposed in both the House and Senate 
     bills.
       The conference agreement includes $7,000,000 to support the 
     Department of Education's portion of the fiscal year 1996 
     Paralympic Games through funding the Atlanta Paralympic 
     Organizing Committee. The house bill included $4,500,000 
     while the Senate bill contained no similar provision. The 
     grantee shall provide such information as shall be required 
     by the Department of Education, including a detailed 
     statement of work and budget, and financial reports providing 
     a breakout of the costs of the activities performed under the 
     grant. The conferees have also provided funding for the 
     Paralympic Games in the Department of Labor and in the Social 
     Security Administration.
       The conferees increased funding for this account by 
     $1,000,000 and direct the Department to use these funds to 
     enable the two active regional head injury centers first 
     funded in 1992 to continue serving as national resources to 
     assist the States in improving the quality and cost 
     effectiveness of services for victims of traumatic grain 
     injury. The conferees direct the Rehabilitation Services 
     Administration to work with the staffs of these regional 
     centers to further develop plans of operation, including 
     appropriate methods of organizing and coordinating State, 
     private provider and victim support resources to improve the 
     quality of traumatic brain injury services and for 
     disseminating this information on a national basis. The 
     centers are to work with the Department to present to the 
     committees, by September 30, 1996, an evaluation plan of the 
     present and planned services of the Centers and, upon 
     approval, to

[[Page H4202]]

     implement the plan. In addition, the Department is instructed 
     to work with the centers to develop a funding strategy that 
     will eliminate the need for further federal funding for this 
     national demonstration activity and to report to the 
     Committees with such a plan by September 30, 1996.


                     vocational and adult education

       The conference agreement provides $1,340,261,000 for 
     Vocational and Adult Education. The House bill provided 
     $1,257,134,000 while the Senate bill included $1,340,638,000. 
     The conference agreement eliminates the requirement for the 
     establishment of State vocational education councils as a 
     condition of receiving funding under the Carl D. Perkins 
     Vocational and Applied Technology Education Act.
       While the conferees have eliminated funding for State 
     councils, the conferees have no objection to States using a 
     portion of their Vocational Education funds for State 
     councils or human resource investment councils.
       The conference agreement includes $4,723,000 for prisoner 
     literacy programs, instead of $5,100,000 as proposed by the 
     Senate. The House bill contained no similar provision.


                      student financial assistance

       The conference agreement specifies appropriations for 
     Student Financial Assistance in Titles I and III of the Act. 
     In the aggregate, the agreement appropriates $6,258,587,000, 
     instead of $6,643,246,000 as proposed by the House and 
     $6,165,290,000 together with $90,000,000 in contingent 
     funding as proposed by the Senate. The conference agreement 
     sets the maximum Pell Grant at $2,470, an increase of $30 
     over the House passed maximum grant of $2,440 and $30 below 
     the $2,500 maximum grant in the Senate bill. The maximum 
     grant of $2,470 is the highest maximum grant ever provided.
       In the aggregate, the agreement provides $4,914,000,000 in 
     new budget authority for the Pell Grant program. This amount 
     combined with $1,304,000,000 in funding which carries forward 
     from previous years, makes available $6,218,000,000 in budget 
     authority for Pell Grants in fiscal year 1996. The Senate 
     bill included $4,814,000,000 and the House bill included 
     $5,423,331,000.
       The conference agreement places a cap of 3,650,000 on Pell 
     Grant participants in the 1995-1996 school year, as proposed 
     by the House instead of 3,634,000 as proposed by the Senate. 
     This cap will not deny awards to any eligible students and 
     has been imposed to reflect the actual number of students 
     receiving grants and actual program costs.
       The conference agreement provides $93,297,000 for new 
     contributions to institutional revolving loan funds, an 
     increase of $93,297,000 over the House bill which did not 
     provide new capital contributions and a decrease of 
     $64,703,000 below the Senate bill level of $158,000,000
       The conference agreement provides $31,375,000 for State 
     Student incentive Grants, a decrease of $32,000,000 below the 
     Senate bill level of $63,375,000. The House bill did not 
     provide funding for this program. The conferees have provided 
     this funding with the understanding that no new funding will 
     be provided for the program in fiscal year 1997. The 
     conferees reiterate that all States have participated in this 
     program since 1978, a sufficient period of time to develop 
     independent and self-sufficient State grant Programs. 
     According to the Department of Education, the federal 
     appropriation for State Student Incentive Grants represent 
     less than 2.5% of total State student assistance. The 
     conferees believe that States have operated this program with 
     a combination of State and federal funds for several years, 
     and the termination of federal support for this program 
     should not result in the termination of substantial 
     downsizing of continuing State grant programs.


                            Higher Education

       The conference agreement provides $836,964,000 for Higher 
     Education programs, the same amount included in the House and 
     Senate bills. The agreement includes a provision proposed by 
     the Senate requiring the Department to award the same number 
     of new Byrd Scholarships in fiscal year 1996 as were awarded 
     in fiscal year 1995 and to prorate downward the amounts for 
     new and continuing Byrd Scholarships to accommodate the 
     awarding of new scholarships. The House bill did not include 
     a similar provision.


                           howard university

       The conference agreement provides $182,348,000 for Howard 
     University, an increase of $7,677,000 over the amount 
     provided in both the House and Senate bills. The agreement 
     includes $152,859,000 for the Academic program, $7,677,000 
     more than the amount in the House and Senate bills, and 
     $29,489,000 for the University Hospital, the same amount 
     provided in the House and Senate bills. The agreement also 
     allows the University to use a part of its Academic program 
     appropriation for the endowment at its discretion. The 
     conferees direct that Howard notify the Congress of any 
     transfer from the Academic program to the Endowment fund at 
     least 15 days prior to execution of the transfer. The 
     agreement does not provide funding for the research or 
     construction programs.


             education research, statistics and improvement

       The conference agreement includes $351,268,000 for 
     Education Research, Statistics and Improvement. The House 
     bill included an fiscal year 1996 appropriation of 
     $328,268,000 for this activity and a contingency 
     appropriation of $23,000,000 for a total funding level of 
     $338,268,000 through an fiscal year 1996 appropriation of 
     $328,268,000 and an fiscal year 1997 appropriation of 
     $10,000,000.
       The agreement includes a provision proposed by the House 
     that prohibits the use of federal funds to fund the Goals 
     2000 Community Partnership program.
       The conference agreement earmarks $3,000,000 within the 
     Fund for the Improvement of Education as proposed by the 
     Senate for programs such as those authorized by Part E of 
     title III of the ESEA for equipment and materials necessary 
     for hands-on instruction through assistance to State and 
     local agencies.
       With respect to the Regional Educational Laboratories the 
     agreement includes $51,000,000. The conferees note that the 
     current laboratories' contracts have removed substantial 
     funds from the programmatic control of the individual 
     laboratories' governing boards and pulled the laboratories 
     programs of work away from the needs of educators and 
     policymakers in the ten individual laboratory regions. It is 
     the intent of the conferees that no funds provided be used 
     for any purpose other than work that is determined by the 
     priorities of the regional governing board of each individual 
     laboratory. All funds provided to the Regional Educational 
     Laboratories shall be allocated according to each 
     laboratory's percentage of the total amount that was provided 
     to the ten regional educational laboratories by the 
     Department of Education on December 11, 1995. Any special 
     services requested by the Department of Education, other than 
     the OERI National Educational Research Policy and Priorities 
     Board for the purpose of aiding their oversight of federal 
     education research and development program, shall be provided 
     only if each Regional Educational Laboratory agrees that the 
     priorities are consistent with its mission and the costs of 
     such special services are reimbursed to each laboratory from 
     the discretionary funds available to the Department. Further, 
     the Conferees direct the Secretary to survey each regional 
     educational laboratory to establish that all funds provided 
     serve the priority R & D needs identified by the regional 
     education board of each laboratory, document any resource 
     allocation or work priority concerns reported by the 
     laboratories and provide a report of all concerns to the 
     House and Senate Appropriations Committees not later than 
     January 31, 1997.
       The agreement also includes a provision proposed by the 
     Senate that extends star school partnership projects that 
     received continuation grants in fiscal year 1996.
       Due to the lateness in the fiscal year, conferees have 
     provided that the funds provided for the International 
     Education Exchange program should be used to continue current 
     grantees.
       The conferees have not provided funding for the extended 
     time and learning program. The Senate bill had included 
     $2,000,000 for this purpose. The House bill contained no 
     similar provision.


                               libraries

       The conference agreement includes $132,505,000 for library 
     programs instead of $131,505,000 as proposed by both the 
     House and Senate bills.
       Within the funds appropriated for library research and 
     demonstration, the conferees have provided $1,000,000 for the 
     Survivors of he Shoah Visual History Foundation for a multi-
     media project to document Holocaust survivor testimony. The 
     conferees acknowledge and support the mission of the U.S. 
     Holocaust Memorial Council and the role the council plays in 
     developing and coordinating programs relating to the 
     Holocaust. The $1,000,000 contained in this bill are to 
     supplement the work of the council. These funds have been 
     included for the Survivors of the Shoah Visual History 
     Foundation project because of the extraordinary nature of the 
     work and contribution of Mr. Steven Spielberg. The conferees 
     concur with the view that this direct grant will put the 
     imprimatur of the U.S. government in a unique manner to 
     repudiate any future claims that the Holocaust never 
     occurred. Because of the special nature of this grant, the 
     conferees do not view this as a precedent for future 
     requests.
       The conferees also have provided $1,000,000 for the final 
     phase of the portals demonstration project and, finally the 
     conferees have provided $1,000,000 for the National Museum of 
     Women in the Arts for activities associated with the 
     archiving of works by women artists.

                           General Provisions

       The conference agreement includes a general provision as 
     proposed by the House that would prohibit the use of funds 
     appropriated in the bill for opportunity to learn standards 
     or strategies. The Senate had no similar provision.
       The conference agreement includes language which reduces 
     the fund available to the Secretary for the administration of 
     the student loan programs, as provided under section 458 of 
     the Higher Education Act. Section 458 provides mandatory 
     spending for student loan administration in amounts which 
     exceed what the Secretary needs for fiscal year 1996. By 
     limiting the amount available to $436,000,000, compared to 
     the $550,000,000 allowed by the Higher Education Act, the 
     agreement achieves savings of $114,000,000. To ensure 
     appropriate scoring of this action by the Congressional 
     Budget Office, the agreement also limits the authority

[[Page H4203]]

     in section 458 which would otherwise permit the Secretary to 
     draw funds from fiscal year 1997 amounts into fiscal year 
     1996.
       The agreement further provides that the Secretary will pay 
     to guaranty agencies the administrative cost allowances owned 
     such agencies for fiscal year 1995 in the amount currently 
     estimated, $95,000,000. The agreement also provides that the 
     Secretary will calculate and pay administrative cost 
     allowances for fiscal year 1996 at the rate of 0.85 percent 
     of the total principal amount of loans upon which insurance 
     was issued on or after October 1, 1995. The estimated amount 
     of such payments is $81,000,000.
       The agreement prohibits the Secretary from requiring the 
     return of reserve amounts held by guaranty agencies in fiscal 
     year 1996 except after consultation with the House and Senate 
     authorizing committees. Any such amounts returned must be 
     deposited in the Treasury to help reduce the deficit.
       No funds available to the Secretary may be used by the 
     Secretary to pay administrative fees to institutions 
     participating in the Federal Direct Student Loan Program.
       The conference agreement restricts the authority of the 
     Secretary to hire advertising agencies or other third parties 
     to provide advertising services to the Department for any 
     student loan program. The Committee does not intend this 
     language to limit the ability of the Secretary to obtain 
     outside assistance to develop and issue informational 
     brochures or similar material for the programs that help 
     students, guidance counselors, student aid administrators, or 
     others, learn such things as how the programs work or their 
     terms and conditions.
       The conference agreement includes a general provision as 
     proposed by the House modified to prohibit the use of funds 
     appropriated in the bill for four specific boards and 
     commissions currently funded by the Department of Education. 
     The Senate had no similar provision.


                          (transfer of funds)

       The conference agreement includes a general provision as 
     proposed by the House that would authorize the Department of 
     Education to transfer up to one percent of funds in any 
     appropriation account to any other account in the Department, 
     provided that the receiving account is not increased by more 
     than three percent thereby and that the Appropriations 
     Committees are notified at least 15 days in advance of any 
     transfer. The Senate had no similar provision.
       The conferees have agreed to include this transfer 
     provision to give the Department more flexibility in managing 
     its appropriations. However, the continuation of this 
     provision in the future will depend on the Department's 
     achieving and maintaining audited financial statements in 
     accordance with the Chief Financial Officers Act of 1990 and 
     Office of Management and Budget Bulletin No. 93-06.

                       TITLE IV--RELATED AGENCIES

             Corporation for National and Community Service


                  domestic volunteer service programs

                           operating expenses

       The conference agreement appropriates $198,393,000 for the 
     Domestic Volunteer Service programs, an increase of 
     $2,123,000 over the House appropriation of $196,270,000 and a 
     decrease of $2,901,000 below the Senate appropriation of 
     $201,294,000. The agreement provides $41,385,000 for regular 
     VISTA Operations. No funding is specifically provided for the 
     VISTA Literacy program, however, the conferees agree that 
     funds may be used to conduct literacy activities previously 
     funded by the VISTA Literacy program.

               Federal Mediation and Conciliation Service

       The agreement provides $32,896,000 for the Federal 
     Mediation and Conciliation Service, the same as the House 
     bill and an increase of $500,000 over the Senate bill.

                     National Labor Relations Board

       The agreement provides $170,743,000 for the National Labor 
     Relations Board, instead of $167,245,000 provided in both the 
     House and Senate bills. The agreement also deletes language 
     proposed by the House concerning the issuance of section 
     10(j) injunctions. The agreement includes language to 
     prohibit the agency from promulgating a final rule on the 
     appropriateness of requested single location bargaining units 
     in representation cases.

                     Social Security Administration


                  supplemental security income program

       The agreement provides $18,545,512,000 for the Supplemental 
     Security Income program, a decrease of $49,500,000 below the 
     Senate bill and $208,322,000 below the House bill. Of this 
     amount, the managers have provided $1,500,000 to support a 
     demonstration project relating to the Paralympic Games. The 
     grantee shall provide such information as shall be required 
     by the Social Security Administration, including a detailed 
     statement of the activities to be supported under the grant 
     and the budget for each activity, and financial reports 
     documenting how the funds were actually expended.
       The agreement makes available an additional amount of 
     $15,000,000 for the processing of Continuing Disability 
     Reviews (CDRs), which was not included in the House or Senate 
     bills, subject to concomitant adjustment of the 
     Subcommittee's 602(b) allocation as permitted by P.L. 104-
     121.


                 Limitation on Administrative Expenses

       The agreement limits administrative expenditures to 
     $5,821,768,000 for the Social Security Administration, a 
     decrease of $23,415,000 below the Senate bill and $88,500,000 
     below the House bill. The agreement includes bill language 
     proposed by the Senate permitting the agency to retain any 
     unobligated funds at the end of the fiscal year for its 
     automation initiative.
       The agreement also includes an additional limitation of 
     $60,000,000 for the processing of Continuing Disability 
     Reviews (CDRs), which was not included in the House or Senate 
     bills, subject to concomitant adjustment of the 
     Subcommittee's 602(b) allocation as permitted by P.L. 104-
     121.
       The conferees strongly urge that SSA work with an industry-
     based consortium dedicated to improving software 
     productivity, and with experience institutionalizing software 
     processes and methods; sufficient funds have been included in 
     the conference agreement for this purpose.

                       Railroad Retirement Board


                      limitation on administration

       The agreement provides a limitation for administrative 
     expenses of $73,169,000 which may be derived from railroad 
     retirement accounts. In combination with a limitation of 
     $16,786,000 from the railroad unemployment insurance 
     administration fund, the agreement provides a total of 
     $89,955,000 for the administrative expenses of the Railroad 
     Retirement Board, an increase of $861,000 above the Senate 
     bill and a decrease of $861,000 below the House bill.


   Limitation on Railroad Unemployment Insurance Administration Fund

       The agreement provides a limitation on administrative 
     expenses of $16,786,000 from moneys credited to the railroad 
     unemployment insurance administration fund. Combined with a 
     limitation of $73,169,000 on administrative expenses derived 
     from the railroad retirement accounts, the agreement provides 
     $89,955,000 for the administrative expenses of the Railroad 
     Retirement Board, an increase of $861,000 over the Senate 
     bill and a decrease of $861,000 below the House bill.

                      TITLE V--GENERAL PROVISIONS

       The conference agreement deletes language contained in the 
     House bill stating that States remain free not to fund 
     abortions with Federal funds provided in the bill to the 
     extent that the State deems appropriate, except where the 
     life of the mother would be endangered if the fetus were 
     carried to term. The Senate amendment contained no similar 
     provision. The conference agreement includes, as did both the 
     House bill and the Senate amendment, the language from 
     previous years prohibiting Federal funding of abortion except 
     in the cases of rape, incest and endangerment of the life of 
     the mother.
       The conference agreement modifies a provision proposed by 
     the House and Senate bills to exclude from participation in 
     the Pell Grant program institutions which are ruled to be 
     ineligible to participate in a federal student loan program 
     as a result of default rate determinations issued by the 
     Secretary subsequent to February 14, 1996.
       The conference agreement includes a general provision 
     proposed by the Senate to limit expenditures on cash 
     performance awards to no more than one percent of amounts 
     appropriated for salaries for each agency funded in the bill. 
     In addition, the provision reduces the amounts otherwise 
     appropriated for salaries and expenses in the bill by 
     $30,500,000, to be allocated by the Office of Management and 
     Budget, as proposed by the Senate. The House bill had no 
     similar provision.
       The conference agreement includes language contained in the 
     Senate amendment which amends the Public Health Service Act 
     to prohibit the Federal government and State and local 
     entities who receive Federal financial assistance from 
     discriminating against entities which refuse to provide or 
     refer for provision of abortions or training to perform 
     abortions. The provision requires the Federal government and 
     State and local entities to deem an entity accredited that 
     would be accredited except for accreditation requirements 
     pertaining to the provision of abortions and abortion 
     training. The House bill contained a similar provision.
       The conference agreement includes language contained in the 
     House bill which modifies the Medicare certification survey 
     schedule for home health agencies to permit States greater 
     flexibility to target resources on problem agencies in order 
     to free up funds for certification of new facilities. The 
     agreement also contains language not contained in the House 
     bill that would permit expanded use by Medicare providers of 
     private accreditation by national bodies for initial 
     certifications and recertifications for those national bodies 
     that can demonstrate that their accreditation assures 
     compliance with all Medicare requirements. This ``deeming'' 
     provision would not apply to renal dialysis facilities and 
     durable medical equipment suppliers. There is no intent to 
     change current law or current policy with respect to the 
     deeming of skilled nursing facilities. The agreement also 
     includes language not included in the House bill requiring 
     the Secretary of Health and Human Services to conduct a study 
     of and to report on the effectiveness and appropriateness of 
     the current mechanisms for surveying and certifying skilled 
     nursing facilities and renal dialysis facilities. The Senate 
     amendment contained no similar provision.
       The conferees are concerned that quality of care not 
     decline for the large and growing

[[Page H4204]]

     number of Medicare beneficiaries receiving home health 
     services. All agencies should be surveyed at reasonable 
     intervals with no more than a 15 month schedule for those 
     agencies with poor prior performance. If there is a change in 
     ownership, surveys shall occur no less frequently than on a 
     15 month schedule. Within one year of enactment of this 
     legislation the conferees direct HCFA to report to Congress 
     on the status of implementation of this policy and the impact 
     on quality of care for beneficiaries. In particular, the 
     report shall contain data supporting HCFA's contention that 
     quality of care will improve if resources are targeted on 
     problem agencies.
       The conferees expect that the study and report required in 
     this provision will include careful analysis of the adequacy 
     of current nursing facility accreditation standards. 
     Attention should be given to the cost effectiveness of 
     expanding the use of voluntary private accreditation, and 
     whether it is a tool for quality enhancement and as a mean to 
     enable government agencies to focus federal attention more 
     directly on those nursing facilities which need increased 
     oversight. The study should also review the information of 
     accrediting bodies to determine whether it might assist HCFA 
     to access data needed to monitor the performance of nursing 
     facilities. The study should evaluate State-level changes in 
     standards for accreditation of nursing facilities to 
     determine the extent to which they have strengthened the 
     safety net that is vital to assure a baseline of quality and 
     consumer protection. Finally, the conferees are interested in 
     innovative regulatory and nonregulatory incentives for all 
     nursing facilities to continually improve the quality of 
     services provided to Medicare and Medicaid patients. 
     Therefore, the Secretary should include in the report whether 
     such incentives would encourage and reward optimal 
     performance with particular emphasis on improved patient 
     outcomes.
       The conference agreement includes language in the Senate 
     amendment requiring the Secretary of Health and Human 
     Services to grant a waiver under the Medicaid program to 
     Charter Health Plan, Inc. of the District of Columbia of the 
     requirement that no more than 75 percent of a managed care 
     provider's enrollment may be Medicaid patients. The House 
     bill had no similar provision.
       The conference agreement includes language requiring the 
     Secretary of Health and Human Services to compile data on the 
     number of females in the U.S. who have been subjected to 
     female genital mutilation, to conduct outreach to communities 
     that practice female genital mutilation, and to develop 
     curriculum recommendations for medical schools regarding the 
     practice. The Senate amendment contained a similar provision, 
     but also established criminal penalties for those who 
     performed the procedure on minors. The House bill had no 
     similar provisions.

                  TITLE VI--ADDITIONAL APPROPRIATIONS

       The conference agreement includes title VI of the bill 
     proposed by the House modified to exclude Social Security 
     Administration funding for continuing disability reviews. The 
     House bill established a separate title VI which provided 
     partial appropriations for three different appropriation 
     accounts. It included $396,000,000 for HCFA Program 
     Management for payment safeguard activities, $43,000,000 for 
     the HHS IG for Medicare-related activities and $111,000,000 
     for the Social Security Administration administrative account 
     for continuing disability reviews. These amounts, when 
     combined with the amounts appropriated for these activities 
     in the regular titles of the bill, provided full-year 
     appropriations. Under the language in title VI, if a 
     subsequent appropriation is enacted in another bill for FY 
     1996 for these activities, then the amount appropriated in 
     title VI would be canceled. The Senate had no similar 
     provision.

                          Conference Agreement

       The following table displays the amounts agreed to for each 
     program, project or activity with appropriate comparisons: 

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[[Page H4278]]

 DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT AND 
                          INDEPENDENT AGENCIES


                              sec. 101(e)

       The conferees agree that House report 104-384 is to be used 
     as the guiding document for the departments, agencies, 
     commissions, corporations, and offices under the jurisdiction 
     of the House and Senate subcommittees on the Departments of 
     Veterans Affairs and Housing and Urban Development and 
     Independent Agencies, along with House report 104-201 and 
     Senate report 104-140. The following explanations are to be 
     taken as clarifications or supplements to the directions 
     contained in House report 104-384, dated December 6, 1995 and 
     Senate report 104-236 dated March 6, 1996:

                TITLE I--DEPARTMENT OF VETERANS AFFAIRS

                      Departmental Administration


                       general operating expenses

       Limits the amount of funds available for payroll costs of 
     the Office of the Secretary to not exceed $3,206,000, instead 
     of $2,766,000 as proposed by the House and deleting such 
     limitation as proposed by the Senate. Deletes the salary 
     limitations proposed by the House and stricken by the Senate 
     for the Office of the Assistant Secretary for Policy and 
     Planning, the Office of the Assistant Secretary for 
     Congressional Affairs, and the Office of the Assistant 
     Secretary for Public and Intergovernmental Affairs. The 
     limitation of salary funds for the Office of the Secretary is 
     the amount requested in the 1996 Budget and will support the 
     current employment level.


                      construction, major projects

       Deletes language proposing contingent appropriations of an 
     additional $70,100,000 for construction, major projects as 
     proposed by the House and $16,000,000 as proposed by the 
     Senate. The approved major construction projects are as 
     specified in House Report 104-384, the Conference Report and 
     Joint Explanatory Statement of the Committee of Conference on 
     H.R. 2099.


                       administrative provisions

       Inserts section 108 authorizing the construction of 
     outpatient clinics in Brevard County, FL, Travis Air Force 
     Base, CA, and Boston, MA; leases at Ft. Myers, FL and New 
     York, NY; and a research facility at Portland, OR. The 
     conferees urge the VA to review its options to acquire 
     additional land for the expansion of the Camp Butler National 
     Cemetery.
       Inserts, as section 109, language designating the Walla 
     Walla VA Medical Center as the Jonathan M. Wainwright 
     Memorial VA Medical Center. The Senate proposed this language 
     as a miscellaneous provision.
       Deletes a miscellaneous provision as proposed by the Senate 
     that would require the VA to develop a plan for the 
     allocation of health care resources. This matter was 
     addressed in amendment numbered 14 of House Report 104-384, 
     the Joint Explanatory Statement of the Committee of 
     Conference on H.R. 2099. The conferees note that the VA is 
     currently developing the allocation plan.

         TITLE II--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

               Annual Contributions For Assisted Housing

       The conferees recommend decreasing the amount appropriated 
     for annual contributions for assisted housing in H.R. 2099, 
     from $10,155,795,000 to $9,818,795,000. The decrease of 
     $337,000,000 is comprised of three components. First, 
     $69,000,000 is taken from amounts available for property 
     disposition activities associated with selling mortgages and 
     properties acquired or held by the Federal Housing 
     Administration (FHA). Despite the decrease, the conferees 
     understand the reduction will not materially impact the 
     Department's ability to meet its statutory and policy 
     responsibilities in disposing of these properties on a timely 
     basis.
       Second, the conferees agree to add $25,000,000 to the 
     $233,168,000 provided for the section 811 housing program for 
     the disabled, and to add $50,000,000 to the $780,190,000 
     provided for the section 202 housing program for the elderly. 
     However, rather than spending the additional funding on new 
     construction or acquisition of buildings, the funds must be 
     applied to extending the contract terms of the rental 
     assistance program.
       Finally, funding for renewing expiring or terminating 
     section 8 subsidy contracts has been reduced from 
     $4,350,862,000 to $4,007,862,000. Though the decrease will 
     not reduce the number of households assisted under this 
     program from the level specified in H.R. 2099, it will reduce 
     the term of the rental assistance contracts from two years.
       H.R. 2099, the 1996 VA/HUD and Independent Agencies 
     appropriations measure, included a provision designed to 
     replace the Low Income Housing Preservation.
       H.R. 2099, the 1996 VA/HUD and Independent Agencies 
     appropriations measure, included a provision designed to 
     replace the Low Income Housing Preservation and Resident 
     Homeownership Act (LIHPRHA) with a less expensive program 
     that avoids dependence on continuing section 8 rental 
     subsidies while, at the same time, preserves affordable 
     housing opportunities for low-income families.
       The recently enacted Housing Opportunity Program Extension 
     Act of 1996 incorporated the provisions of the revised 
     preservation program contained in H.R. 2099. Due to delays, 
     however, the calendar deadlines utilized in this legislation 
     for filing and for funding eligibility determinations are no 
     longer valid and must be adjusted. Therefore, the conferees 
     have adjusted dates to conform the provisions in the 
     Extension Act.
       As a further refinement of the revised preservation 
     program, the conferees have added a third criteria for the 
     Department to utilize in setting appropriate rents for 
     properties. This change will enable properties which utilize 
     the capital loan/capital grant program to retain working 
     families in affordable housing developments and to achieve an 
     appropriate mix of income levels.

Public Housing Demolition, Site Revitalization, and Replacement Housing 
                                 Grants

       The conferees are aware of the urgent need to accelerate 
     the demolition of distressed public housing developments and 
     have agreed to provide $200,000,000 above the amount 
     recommended in H.R. 2099 for the severely distressed public 
     housing program. This addition increases funding for the 
     program from $280,000,000 to $480,000,000.
       The HOPE VI program was created in 1992 as a means to 
     replace obsolete public housing developments aggressively 
     with homes that are architecturally appealing, have lower 
     densities, and are better suited to the needs of low-income 
     families and their surrounding neighborhoods. In the last 
     four years, the Department has found it necessary to refine 
     PHA plans after awarding the grants, usually because of 
     complicated financing associated with the construction of 
     these developments. The formal competition process required 
     by the Act, however, constrains HUD from being able to make 
     changes on a timely basis. Therefore, to facilitate actual 
     site demolition and rehabilitation, the conferees have 
     deleted a requirement for a formal competition regarding how 
     these funds are awarded. In place of a formal competition, 
     HUD plans to utilize a comprehensive, merit-based selection 
     process.

             Drug Elimination Grants for Low-Income Housing

       The conference agreement permits the Secretary to waive the 
     requirement to set-aside a portion of these funds for the 
     youth sport program, though the activity remains an eligible 
     activity of the program. This requirement has been burdensome 
     for both the Department and public housing authorities to 
     administer.
       Noting the importance and need to fight crime in public 
     housing and to create safe environments for low-income 
     families, the conferees have decided to fully fund the Drug 
     Elimination Grant program despite dwindling discretionary 
     resources. There is, however, a significant crime problem 
     that plaques the assisted housing portfolio. Unfortunately, 
     the owners of these properties do not have access to funding 
     from the drug elimination program. It is the opinion of the 
     conferees that the authorizing committee should consider this 
     problem and rectify it with appropriate legislation.

                   Community Planning and Development


                      community development grants

       At the request of the Secretary, the conferees agree to 
     set-aside $50,000,000 from the community development block 
     grant account for economic development initiatives to be made 
     available pursuant to a competitive selection process.

                       Administrative Provisions

        Extend Administrative Provisions From the Rescission Act

       It is critical to deregulate the public and assisted 
     housing portfolios by providing them with the greatest degree 
     of flexibility possible, and therefore agree to expand the 
     eligible uses of modernization funds to capital purposes.
       The conferees believe that mixed-income developments, where 
     the portion of apartments dedicated to low-income families 
     are indistinguishable from the remaining market-rate 
     apartments, will foster safe neighborhoods and will provide 
     for fiscally viable developments. Therefore, the conferees 
     recommend inclusion of several provisions designed to 
     facilitate their creation and financing.


                         employment limitations

       The conferees agree to increase the number of assistant 
     secretaries to eight from the seven provided in H.R. 2099, 
     but have retained the provisions regarding the levels of 
     Schedule C and noncareer SES employees. HUD is directed to 
     present a plan to the House and Senate Committees on 
     Appropriations by September 30, 1996, that describes its 
     reorganization strategy, including:
       (1) the organizational structure, including the number of 
     field offices, regional offices, and FHA offices;
       (2) the programmatic staffing levels required to meet the 
     needs and services identified in HUD's mission statement;
       (3) the responsibilities and duties of headquarters, the 
     field offices, regional offices and FHA offices, the services 
     they will provide, and the level of programmatic staff 
     necessary to carry out these functions;
       (4) the relationship between Headquarters and the field 
     offices, regional offices, and FHA offices; and
       (5) the annual schedule by which the Secretary intends to 
     reduce staff to 7,500 by the year 2002.
       If the level of FTEs required to administer the programs 
     effectively is greater than 7,500, the Secretary must justify 
     the increase.

[[Page H4279]]

                         repeal of frost-leland

       Although the conferees agree to repeal the Frost-Leland 
     amendment, it was not agreed that the City of Dallas be 
     reimbursed for expenses it incurred demolishing a public 
     housing project in West Dallas pursuant to a court order.


                         fha assignment program

       The conferees have amended provisions of the Balanced 
     Budget Downpayment Act, I, which reformed the FHA Assignment 
     Program. The first change corrects terminology included in 
     that Act. Additionally, because of delays in enacting this 
     appropriations measure, several dates used in the original 
     legislation are no longer valid and have been changed. First, 
     the effective date of the reform has been changed to the date 
     of enactment of this legislation to prevent a circumstance 
     where people who applied for assignment after March 15, 1996, 
     would find the program retroactively terminated. Thirty days 
     after enactment, HUD is required to issue regulations. The 
     second date change allows the reforms to be utilized for all 
     mortgages executed during fiscal year 1996 and in prior 
     years.


 changes to state of new york's community development block grant and 
                             home programs

       To ensure that the CDBG Small Cities program in the State 
     of New York is operated as efficiently as possible, the 
     conferees agree to limit the amount of funds made available 
     for multi-year commitments to 35 percent. Additionally, the 
     conferees agree to provide the State of New York's HOME funds 
     directly to the Chief Executive Officer of the State, to be 
     used in accordance with provisions of law.


                    minimum rent tenant protections

       The conferees agree that every public housing and section 8 
     housing resident who receives the benefit of housing 
     assistance should contribute at least $25 towards their rent. 
     There may be occasions, however, where families are 
     experiencing serious financial hardship and cannot afford 
     even the most minimal contribution. Therefore, a provision 
     has been added to allow the Secretary or a public housing 
     agency to waive the minimum rent requirement to provide a 
     transition period for affected families not to exceed three 
     months.
       The conferees have agreed to delete a provision proposed in 
     H.R. 2099 which would have directed the transfer of fair 
     housing enforcement responsibilities to the Department of 
     Justice.

                    TITLE III--INDEPENDENT AGENCIES

                       Department of the Treasury


           community development financial institutions fund

                            program account

       The conferees agree to provide $45,000,000, instead of 
     $50,000,000 as proposed by the Senate and $25,000,000 as 
     proposed by the House. The conferees also agree to remove 
     legislative provisions restricting the size of the staff for 
     this effort.

             Corporation for National and Community Service


       national and community service programs operating expenses

       Appropriates $400,500,000 for National and Community 
     Service Programs Operating Expenses as proposed by the 
     Senate, instead of termination, or $383,500,000 if offsetting 
     savings were found, as proposed by the House. The recommended 
     amount is $69,500,000 below the 1995 level and $416,976,000 
     below the budget request.
       The bill includes language eliminating grants to Federal 
     agencies. This will permit all money to be directed outside 
     of the Federal bureaucracy and should help reduce the cost 
     per participant.
       The conferees are aware of recent commitments by the 
     Corporation to improve the management of the AmeriCorps 
     program and reduce costs. In addition to eliminating grants 
     to federal agencies, such actions include decreasing the 
     reliance on federal funds by increasing the matching 
     requirement for private funds, reminding sponsors of all 
     prohibited activities, including lobbying and partisan 
     political activities, improving grant reviews, and expanding 
     efforts in program evaluation. It is the conferees' intent 
     that the appropriating and authorizing committees will 
     carefully monitor the Corporation's activities to ensure that 
     the agreed to reforms are carried out and to prevent any 
     abuses in the future.
       The conferees agree to include the Sense of the Congress 
     language proposed by the Senate. This language urges the 
     President to nominate expeditiously a Chief Financial Officer 
     and to implement as quickly as possible the recommendations 
     of the independent auditors to improve the financial 
     management of the Corporation's funds. The language also 
     urges the Corporation to submit a reprogramming proposal for 
     up to $3,000,000 to carry out financial management system 
     reforms if the Chief Financial Officer determines such 
     additional resources are needed.


                      office of inspector general

       Appropriates $2,000,000 for the Office of Inspector 
     General. The conferees expect that the Inspector General will 
     periodically report to the Congress on progress in improving 
     the Corporation's financial management systems and in 
     developing auditable financial statements.

                    Environmental Protection Agency


                         science and technology

       The conferees agree to a technical change to House Report 
     104-384 related to the Mine Waste Technology program. The 
     science and technology account includes $3,000,000 for this 
     program, in lieu of funding in the hazardous substance 
     superfund account.


                 environmental programs and management

       The conferees agree to provide $127,000,000 in addition to 
     the amount proposed for environmental programs and management 
     in H.R. 2099. Of this amount, the conferees agree that up to 
     $40,000,000 is available for enforcement activities.
       In 1994, under the U.S. Global Climate Change Action Plan, 
     the Administration approached developing countries about 
     undertaking joint activities to reduce global emissions. The 
     joint implementation project thus established encourages 
     partnerships between businesses and non-governmental 
     organizations in the United States and developing countries, 
     offering the potential to achieve greater emission reductions 
     worldwide than would be possible with each country acting 
     alone. Recognizing that meaningful near-term reductions in 
     greenhouse gas emissions can only be realized through 
     voluntary, public-private relationships such as the joint 
     implementation program, the conferees urge that from the 
     funds provided for the climate change action plan, the Agency 
     provide $3,000,000 for completion of climate change country 
     studies and development of developing country national action 
     plans and $7,000,000 for joint implementation plan 
     activities.


                        buildings and facilities

       The conferees agree to provide $50,000,000 in addition to 
     the amount proposed for buildings and facilities in H.R. 
     2099. This additional funding is for the first phase of 
     construction of a new consolidated research facility at 
     Research Triangle Park, North Carolina. The conferees agree 
     that the total construction cost for this new research 
     facility shall not exceed $232,000,000.


                     hazardous substance superfund

       The conferees agree to provide $150,000,000 in addition to 
     the amount proposed for hazardous substance superfund in H.R. 
     2099. The conferees agree that such additional funds, 
     $100,000,000 of which become available on September 1, 1996, 
     are for clean-up response and enforcement activities, subject 
     to normal reprogramming guidelines. The conferees agree that 
     $2,000,000 of this additional amount is for worker training 
     grants under NIEHS, bringing this program to $18,500,000 for 
     fiscal year 1996.


                   state and tribal assistance grants

       The conferees agree to provide $490,000,000 in addition to 
     the amount proposed for environmental programs and 
     infrastructure assistance under state and tribal assistance 
     grants in H.R. 2099. Of this additional amount, $448,500,000 
     is for capitalization grants, $3,500,000 is for a water 
     distribution system grant in the South Buffalo/Kittaning 
     area, Pennsylvania, $25,000,000 is for a special projects 
     grant for Boston Harbor for a total of $50,000,000 in fiscal 
     year 1996, and $13,000,000 is for a construction grant for 
     wastewater treatment facilities in Watertown, South Dakota. 
     Of the $448,500,000, $225,000,000 is for Safe Drinking Water 
     State Revolving Fund capitalization grants which, added to 
     the $275,000,000 proposed in H.R. 2099 and the $225,000,000 
     provided in previous appropriations acts, brings the total 
     available for the Safe Drinking Water SRF to $725,000,000. 
     All of these funds shall be available if authorization for 
     such SRF is enacted prior to August 1, 1996, however, if no 
     such authorization is enacted prior to August 1, 1996, these 
     funds will become available for wastewater capitalization 
     grants.
       The conferees understand the Agency has convened a federal 
     advisory committee to address water pollution issues related 
     to wet weather. The conferees believe that EPA should take 
     advantage of the many stakeholders concerned about stormwater 
     at the table and use this opportunity to see if these 
     participants can reach consensus on a simplified, 
     environmentally protective, workable, cost-effective 
     stormwater program for municipalities regardless of 
     population and all entities whether or not they are already 
     covered under the Phase I NPDES program.
       Finally, the conferees note that $700,000 of funds proposed 
     in H.R. 2099 for Manns Choice and $100,000 of funds proposed 
     in H.R. 2099 for Taylor Township, Pennsylvania, be used for 
     wastewater treatment facility improvements in Juniata Terrace 
     Borough, Mifflin County, Pennsylvania ($250,000) and 
     Curwensville Borough-Pike Township, Clearfield County, 
     Pennsylvania ($150,000) and for combined sewer overflow 
     improvements for Logan Township, Blair County, Pennsylvania 
     ($400,000).


                       administrative provisions

       The conferees have included bill language in section 304 
     which transfers real property located in Bay City, Michigan 
     to the City of Bay City or another municipal entity. In 
     addition, up to $3,000,000 of previously appropriated funds 
     shall be provided to the recipient of such real property for 
     necessary environmental remediation and rehabilitation costs 
     of the property. It is the intent of the Conferees that the 
     recipient of the property shall accept full responsibility 
     for compliance with any applicable environmental conditions 
     and that the Agency's liability shall terminate upon 
     transfer.
       The conferees have agreed to delete a provision proposed in 
     H.R. 2099 which prohibited the use of funds to implement 
     section 404(c)

[[Page H4280]]

      of the Federal Water Pollution Control Act, as amended.

                   Executive Office of the President


  council on environmental quality and office of environmental quality

       The conferees agree to provide $1,150,000 in addition to 
     the amount proposed in H.R. 2099, for a fiscal year 1996 
     total of $2,150,000 for CEQ. The conferees agree that CEQ and 
     OEQ should not augment their workforce by utilizing personnel 
     paid for by appropriations provided to any other Federal 
     agency or department.

                Department of Health and Human Services


                       office of consumer affairs

       The conferees have agreed to provide $1,800,000 for the 
     Office of Consumer Affairs. Neither the House or the Senate 
     had included this funding in the bill.

             National Aeronautics and Space Administration

       The conferees agree to provide $83,000,000 for Science, 
     Aeronautics and Technology in addition to the amounts 
     proposed H.R. 2099. Distribution of the additional funding is 
     to be addressed in the NASA operating plan for fiscal year 
     1996 and is subject to final approval by the Committees on 
     Appropriations of the House and Senate.
       The conferees do not agree that all NASA aircraft 
     consolidation should be held in abeyance pending the final 
     reports of the NASA Inspector General and the General 
     Accounting Office as proposed by the Senate. The conferees 
     note that in a letter dated March 8, 1996, the Inspector 
     General endorsed an alternative aircraft consolidation plan 
     which would leave in place five aircraft currently based at 
     Lewis Research Center, Langley Research Center, and Wallops 
     Island. Therefore, the conferees agree that the consolidation 
     of these aircraft should await final resolution of the issues 
     addressed in the initial report by the NASA Inspector General 
     with regard to consolidation savings.
       The conferees are concerned with NASA's unexpected recent 
     announcement regarding additional and accelerated personnel 
     reductions at NASA headquarters. This announcement was made 
     without prior consultation with the Congress. The proposed 
     reduction is disproportionately excessive relative to the 
     aggregate funding profile for this agency. Such substantial 
     staffing reduction may jeopardize NASA's ability to manage 
     adequately programs of continuing priority to the Congress 
     and the Nation. Therefore, the conferees direct NASA to 
     suspend immediate implementation of the administrative steps 
     to execute this proposed reduction-in-force, pending full 
     consideration by the Congress of the agency's budget for 
     fiscal year 1997.
       The conference agreement also includes two new 
     administrative provisions. The first provision ensures that 
     section 212 of Public Law 104-99 remains in effect as if 
     enacted as part of this Act. The second new provision urges 
     NASA to fund Phase A studies for a radar satellite 
     initiative.

                      National Science Foundation

       The conferees agree to provide an additional $40,000,000 
     for Research and Related Activities for the National Science 
     Foundation. The effect of this adjustment is a net reduction 
     of $140,000,000 from the budget request as compared to a 
     reduction of $180,000,000 proposed in H.R. 2099.

                      TITLE V--GENERAL PROVISIONS

       The conference agreement includes a general provision which 
     supersedes section 201(b) of Public Law 104-99.

                 TITLE II--SUPPLEMENTAL APPROPRIATIONS

                               CHAPTER 1

      DEPARTMENT OF AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG 
                  ADMINISTRATION, AND RELATED AGENCIES

                       Department of Agriculture


                   Food Safety and Inspection Service

       The conferees retain bill language included by the Senate 
     to earmark funds appropriated to the Food Safety and 
     Inspection Service for in-plant inspection personnel. The 
     House-passed bill contained no similar provision. Providing 
     sufficient funds to fully cover the salaries and expenses of 
     in-plant inspections mandated by current law was the priority 
     of Congress in the fiscal year 1996 appropriations Act. The 
     conferees regret that it has become necessary to earmark 
     funds for in-plant inspector salaries and expenses, but 
     because the agency could not provide assurances that it would 
     fulfill the intent of Congress, the conferees found this as 
     the only alternative available.


                 natural resources conservation service

               watershed and flood prevention operations

       The conference agreement provides a supplemental 
     appropriation of $80,514,000 for Watershed and Flood 
     Prevention Operations to repair damages to waterways and 
     watersheds resulting from flooding in the Pacific Northwest, 
     the Northeast blizzards, floods, and other natural disasters 
     instead of $73,200,000 as proposed by the House and 
     $107,514,00 as proposed by the Senate. The conferees 
     encourage the Department, when repairing projects with funds 
     appropriated for Emergency Watershed and Flood Prevention 
     Operations, to do so with the intent of minimizing future 
     costs and flooding.
       The conference agreement provides that the entire amount 
     shall be available only to the extent that an official budget 
     request for $80,514,000 is submitted that includes 
     designation of the entire amount as an emergency requirement.
       The conference agreement also provides that if the 
     Secretary of Agriculture determines that the cost of land and 
     restoration of farm structures exceeds the fair market value 
     of affected cropland, the Secretary may use sufficient 
     amounts ``not to exceed $7,288,000' from funds provided under 
     this heading to accept bids from willing sellers to provide 
     conservation easements for cropland inundated by floods, as 
     provided for by the Wetlands Reserve Program.


                    consolidated farm service agency

                     emergency conservation program

       The conference agreement provides a supplemental 
     appropriation of $30,000,000 for the Emergency Conservation 
     Program for expenses resulting from floods in the Pacific 
     Northwest and other natural disasters as proposed by the 
     Senate instead of $24,800,000 as proposed by the House.
       The conference agreement does not include a provision 
     proposed by the Senate that the entire amount be available 
     subject to an official budget request from the 
     Administration.


            rural housing and community development service

              rural housing insurance fund program account

       The conference agreement provides a supplemental 
     appropriation of $5,000,000 for section 502 direct loans and 
     $1,500,000 for section 504 housing repair loans for emergency 
     expenses resulting from flooding in the Pacific Northwest, 
     the Northeast blizzards and floods, Hurricane Marilyn, and 
     other natural disasters as proposed by the Senate. The House 
     bill proposed a total of $6,500,000 for both section 502 
     direct loans and section 504 housing repair loans.
       The conference agreement provides that funds be used for 
     the cost of modifying loans as defined in section 502 of the 
     Congressional Budget Act of 1974 as proposed by the House.
       The conference agreement does not include a provision 
     proposed by the Senate that the entire amount be available 
     subject to an official budget request from the 
     Administration.


                 very low-income housing repair grants

       The conference agreement provides a supplemental 
     appropriation of $1,100,000 for emergency expenses resulting 
     from flooding in the Pacific Northwest, the Northeast 
     blizzards and floods. Hurricane Marilyn, and other natural 
     disasters as proposed by both the House and Senate. The 
     conference agreement does not include a provision proposed by 
     the Senate that the entire amount be available subject to an 
     official budget request from the Administration.


                        rural utilities service

                   rural utilities assistance program

       The conference agreement provides a supplemental 
     appropriation of $11,000,000 for direct loans and grants of 
     the Rural Utilities Assistance Program and the Emergency 
     Community Water Assistance Program to assist in the recovery 
     from flooding in the Pacific Northwest and other natural 
     disasters as proposed by the Senate. The House bill proposed 
     separate appropriations of $5,000,000 for the Emergency 
     Community Water Assistance Program and $6,000,000 for the 
     Rural Utilities Assistance Program. The conference agreement 
     also provides that funds be used for the cost of modifying 
     loans as defined in section 502 of the Congressional Budget 
     Act of 1974 as proposed by the House.
       The conference agreement does not include a provision 
     proposed by the Senate that the entire amount be available 
     subject to an official budget request from the 
     Administration.


                      commodity credit corporation

              emergency livestock feed assistance program

       The conference agreement does not provide $10,000,000 of 
     Commodity Credit Corporation funds for cost-sharing 
     assistance under provisions consistent with the Emergency 
     Livestock Feed Assistance Program as proposed by the House. 
     The Senate bill contained no similar provision. The 
     Department has indicated that livestock producers who are 
     eligible for cost-sharing assistance under the Emergency 
     Livestock Feed Assistance Program will continue to be 
     eligible for this assistance provided a valid contract for 
     this program has been signed prior to enactment of new 
     legislation.


                  supplemental and rescission requests

       As part of its fiscal year 1996 supplemental and rescission 
     requests, the Administration proposed a rescission of 
     $12,000,000 from Cooperative State Research, Education, and 
     Extension Service, Buildings and Facilities, and supplemental 
     requests of $2,500,000 for the U.S.-Israel Binational 
     Agricultural Research and Development Fund program and 
     $9,500,000 for the Food Safety and Inspection Service. The 
     conference agreement does not include these proposals.


                           general provisions

       The conference agreement deletes the administrative 
     provision proposed by the Senate that would have allowed the 
     Secretary to transfer funds provided in this Chapter between 
     accounts included in this Chapter. The House bill contained 
     no similar provision.


                             seafood safety

       The conference agreement provides that any domestic fish or 
     fish product produced in

[[Page H4281]]

      compliance with food safety standards or procedures accepted 
     by the Food and Drug Administration shall be deemed to have 
     met any inspection requirements of the Department of 
     Agriculture or other Federal agency for any Federal commodity 
     purchase program, and that the Department or other Federal 
     agency may utilize lot inspection to establish a reasonable 
     degree of certainty that such fish or fish product meets 
     Federal product specifications as proposed by the Senate. The 
     House bill contained no similar provision.


                               farm loans

       The conference agreement includes language that allows the 
     Department of Agriculture to make or guarantee an operating 
     or an emergency loan to a loan applicant who was less than 90 
     days delinquent on April 4, 1996, if the loan applicant had 
     submitted an application for the loan prior to April 5, 1996. 
     The recently enacted Federal Agriculture Improvement and 
     Reform Act altered conditions under which loans could be made 
     at the time of enactment. This provision allows those 
     borrowers, whose application had been submitted, to complete 
     the process. The provision also provides that no applicant 
     may be more than 90 days delinquent.

                               CHAPTER 1A

                Department of Health and Human Services


                      food and drug administration

                      food and drug export reform

       The conference agreement includes a modification of 
     language included in both the House and Senate versions of 
     the bill allowing the export of certain unapproved drugs, 
     biologicals, animal drugs, and medical devices. The provision 
     allows pharmaceuticals and medical devices not approved in 
     the United States to be exported to any country in the world 
     if the product complies with the laws of that country and has 
     valid marketing authorization in one of the following 
     countries: Australia; Canada; Israel; Japan; New Zealand; 
     Switzerland; South Africa; or the European Union or a country 
     in the European Economic Area. The Secretary is given 
     authority to add countries to the list based on criteria set 
     forth in the conference agreement.
       The conference agreement also sets forth criteria upon 
     which the Secretary may allow direct export of a drug not 
     first approved in one of the listed countries. However, 
     devices were not included because under current law devices 
     may be exported to any country after the Secretary determines 
     that the export of the device is not contrary to public 
     health and the import is permitted into the importing 
     country. In addition, the conference agreement sets forth 
     conditions under which the Secretary may approve the export 
     of a drug or device which is used for tropical diseases or 
     other diseases not of significant prevalence in the United 
     States. To approve an application under this section, the 
     Secretary must find that the medical product will not expose 
     patients to an unreasonable risk of illness or injury and 
     that the probable health benefits outweigh the risk of injury 
     or illness, taking into account currently available 
     treatments and their economic accessibility.
       In general, a medical product may not be exported under 
     this provision unless it is unadulterated, accords to the 
     specifications of the foreign manufacturer, complies with the 
     laws of the importing country, is labeled for export, and is 
     not sold in the U.S. The drug or device must be manufactured 
     in substantial conformity with good manufacturing practices 
     applicable to that specific product or else be in compliance 
     with recognized international standards. The Secretary may 
     prohibit exports of products which are found to pose an 
     imminent hazard.
       Any person who exports a drug or device may request the 
     Secretary of Health and Human Services to certify in writing 
     that the exportation is legal. A fee of up to $175 is 
     authorized for issuance of each written export certification. 
     The conferees intend that fees be established on a sliding 
     scale to minimize the impact on small business.


                   import components used for export

       The conference agreement also allows import of certain 
     articles, which cannot now be lawfully imported, used in the 
     manufacture of drugs, biological products, devices, foods 
     (including dietary supplements), food additives, and color 
     additives if the finished products are then exported. Under 
     this provision, importers must provide the Secretary of 
     Health and Human Services with notification of the initial 
     importation, maintain records of such imports, and destroy 
     any component not used in an exported product. The agreement 
     also allows import of certain blood and tissue products 
     provided they comply with the Public Health Service Act 
     requirements, or the Secretary allows such imports. The 
     Secretary could make such a determination, for example, where 
     a blood component is imported from a country which has laws 
     and regulations relating to the collection and processing of 
     blood; the products are in compliance with such requirements; 
     the importer assures that such products are segregated from 
     U.S. products, that contamination of equipment is prevented, 
     and that records are maintained and made available to the 
     Secretary to verify such assurances; and that the importer 
     performs such tests as the Secretary may require.


                            patent extension

       The conference agreement includes a provision that would 
     extend a patent on a nonsteroidal anti-inflammatory drug. 
     Congressional hearings held on this issue support the claims 
     that the Food and Drug Administration took an unreasonable 
     length of time in the approval process for this drug. The 
     provision provides a two year extenstion.

                               CHAPTER 2

DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE JUDICIARY, AND RELATED 
                                AGENCIES

                         DEPARTMENT OF COMMERCE

                  Economic Development Administration


                economic development assistance programs

       The conference agreement includes $18,000,000 for emergency 
     expenses related to recovery and mitigation efforts 
     associated with flooding in the Pacific Northwest and other 
     disasters, to remain available until expended and to be 
     available only pursuant to an official budget request that 
     declares the funds to be emergency. The Senate bill proposed 
     $25,000,000 for emergency expenses resulting from flooding, 
     and $2,500,000 to be transferred to Salaries and Expenses. 
     The House bill contained no similar provision.

            National Oceanic and Atmospheric Administration


                              construction

       The conference agreement includes $7,500,000 in emergency 
     funds for the National Oceanic and Atmospheric 
     Administration's (NOAA) ``Construction'' account. The House 
     bill provided no funds for this purpose; the Administration 
     request was $10,000,000. These funds are to support the 
     immediate repair of fish hatcheries along the Columbia River 
     which experienced severe damage from the recent flooding in 
     the Northwest.
       The conferees note that the National Marine Fisheries 
     Service funds the Mitchell Act Hatcheries. If additional 
     funds are needed for repairs in this instance, the conferees 
     understand that funds are available within existing amounts 
     at the Federal Emergency Management Administration (FEMA) and 
     would encourage FEMA to give every consideration to 
     applications received in relation to this flood damage.

                DEPARTMENT OF STATE AND RELATED AGENCIES

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs


                    diplomatic and consular programs

       The conference agreement includes no emergency funding for 
     State Department operations to offset operating costs being 
     incurred in Bosnia as a result of the Dayton Accords, as 
     proposed by the Senate. The House bill included $2,000,000.

                            RELATED AGENCIES

                    United States Information Agency


                         salaries and expenses

       The conference agreement includes no emergency funding for 
     United States Information Agency operations to offset 
     operating costs being incurred in Bosnia as a result of the 
     Dayton Accords, as proposed by the Senate. The House bill 
     included $1,000,000.

                             RELATED AGENCY

                     Small Business Administration


                     disaster loans program account

       The conference agreement provides $71,000,000 for subsidy 
     costs associated with the SBA Disaster Loans Program, instead 
     of $72,300,000 as proposed by the House and $69,700,000 as 
     proposed by the Senate, as an emergency appropriation to 
     remain available until expended, to allow for additional loan 
     volume in response to declared disasters.
       In addition, the conferees have included $29,000,000, for 
     administrative expenses under this account, instead of 
     $27,700,000 as proposed by the House and $30,300,000 as 
     proposed by the Senate, as an emergency appropriation to 
     remain available until expended, to support SBA's disaster 
     activities in response to declared disasters.
       The conferees are concerned about the manner in which SBA 
     budgets for, and administers, disaster assistance funds. The 
     conferees are disturbed that during development of the 
     supplemental funding requirements, SBA identified $79,000,000 
     in unspent prior year funding not previously known to SBA. In 
     addition, SBA indicated a shortfall in disaster 
     administrative expenses, even though the conferees had 
     already fully funded SBA's request for these expenses. The 
     conferees expect disaster funding to be used only for the 
     purpose for which it was provided, and to accurately budget 
     for and administer these funds.
       Therefore, the conferees direct the SBA to provide, not 
     later than May 30, 1996, a report to the House and Senate 
     Appropriations Committees on the obligation of administrative 
     expenses funding to date in fiscal year 1996, and to provide 
     an updated report on August 15, 1996. These reports should 
     identify the following: (1) each headquarters' office 
     receiving administrative funding, the total funding provided, 
     and the number of FTE supported: (2) the total funding and 
     FTE (permanent and temporary) provided to each field 
     location, the date the field location was established, the 
     expected duration of employment for temporary employees for 
     each location, and the expected termination date for each 
     location; and (3) the total loan volume by location.

[[Page H4282]]

                               CHAPTER 3

                      Department of Defense--Civil

                         Department of the Army


                       corps of engineers--civil

                         general investigations

       The conference agreement includes language contained in 
     section 3007 of the Senate bill to permit the Secretary of 
     the Army to utilize funds previously appropriated for the St. 
     Louis Harbor, Missouri, project for the Upper Mississippi 
     River and Illinois Waterway navigation study. The conferees 
     agree that they will work to restore funds to the St. Louis 
     Harbor project in the future as needed.


                   operation and maintenance, general

       The conference agreement includes $30,000,000, the same as 
     the budget request, for the repair of damages to Corps of 
     Engineers projects caused by severe flooding in the Northeast 
     and Northwest as proposed by the House and the Senate. The 
     conferees have also agreed to adopt the language contained in 
     the House bill.


                 flood control and coastal emergencies

       The conference agreement includes $135,000,000, the same as 
     the budget request and the amount proposed by the House and 
     the Senate, for the Corps of Engineers to repair damage to 
     non-Federal levees and other flood control works located in 
     states affected by the Northeast and Northwest floods of 1996 
     and other natural disasters, and to replenish funds 
     transferred from other accounts for emergency work pursuant 
     to the authority of the Secretary of the Army contained in 
     Public Law 84-99. The conferees have also agreed to adopt the 
     language contained in the House bill.

                       Department of the Interior


                         bureau of reclamation

                          construction program

       The conference agreement includes $9,000,000, the same as 
     the budget request and the amount proposed by the House and 
     the Senate, for the Bureau of Reclamation to continue 
     emergency repairs at Folsom Dam in California. The conferees 
     have also agreed to delete funding requested by the President 
     and proposed by the Senate for the payment of claims 
     associated with flooding in March of 1995 in California's San 
     Joaquin Valley.

                          Department of Energy


                    atomic energy defense activities

                        other defense activities

       The conference agreement includes an additional $15,000,000 
     to accelerate activities in the Materials Protection, Control 
     and Accounting program to improve facilities and institute 
     national standards to secure stockpiles of weapons usable 
     fissible materials in Russia and the Newly Independent 
     States. No similar provision was included in the House bill, 
     the Senate bill, or the budget request.

                    Power Marketing Administrations


 construction, rehabilitation, operation and maintenance, western area 
                          power administration

                          (transfer of funds)

       The conference agreement provides for the transfer of 
     $5,500,000 from this account to the account ``Operation and 
     Maintenance, Alaska Power Administration'', as proposed by 
     the House bill and budget request, only for necessary 
     termination expenses of the Alaska Power Administration. The 
     Senate bill did not contain this provision.

                  Federal Energy Regulatory Commission

       The conference agreement deletes language contained in 
     section 3017 of the Senate bill providing for a limited 
     waiver of annual charges for the Flint Creek Project in 
     Montana.

                               CHAPTER 4

       Foreign Operations, Export Financing, and Related Programs


                  funds appropriated to the president

                          unanticipated needs

      unanticipated needs for defense of israel against terrorism

       The conference agreement provides $50,000,000 for emergency 
     expenses necessary to meet unanticipated needs for the 
     acquisition and provision of goods, services, and/or grants 
     for Israel necessary to support the eradication of terrorism 
     in and around Israel as proposed by the Senate. The conferees 
     further agree that none of the funds appropriated in this 
     paragraph shall be made available except through the regular 
     notification procedures of the Committee on Appropriations. 
     The conferees expect the aid to be provided consistent with 
     information transmitted to the Committees on Appropriations 
     in a classified document on March 25, 1996. The House bill 
     contained no similar provision.


                          military assistance

                   foreign military financing program

       The conference agreement provides $70,000,000 for grant 
     Foreign Military Financing for Jordan as proposed by both the 
     House and Senate. The conference agreement also provides that 
     such funds may be used for Jordan to finance transfers by 
     lease of defense articles under chapter 6 of the Arms Export 
     Control Act. These funds will be used to support the transfer 
     of 16 F-16 fighter aircraft to the Government of Jordan. The 
     conferees also note that the overall downsizing of the U.S. 
     defense industry is costing thousands of American defense-
     related jobs. The conferees therefore direct the Department 
     of Defense to give priority consideration to American defense 
     firms in awarding contracts for upgrades and other major 
     improvements to these aircraft prior to their delivery to the 
     Government of Jordan.

                               CHAPTER 5

            Department of the Interior and Related Agencies

       Agency Priorities. The managers have not agreed to 
     statutory language, proposed by the Senate in section 1203 of 
     Title II, chapter 12, which would have mandated the 
     allocation of emergency supplemental funds based on agency 
     prioritization processes. The managers understand that the 
     initial estimates of emergency requirements that have been 
     provided are based on very preliminary information and that 
     those initial estimates, because of time constraints, may not 
     have included every project which needs to be addressed. The 
     managers expect each agency to develop on-the-ground 
     estimates of all its natural disaster related needs and to 
     address these needs consistent with agency priorities.
       Contingent Appropriations. The availability of those 
     portions of the appropriations detailed in this chapter that 
     are in excess of the Administration's budget request for 
     emergency supplemental appropriations are contingent upon 
     receipt of a budget request that includes a Presidential 
     designation of such amounts as emergency requirements as 
     defined in the Balanced Budget and Emergency Deficit Control 
     Act of 1985, as amended.

                       Department of the Interior


                       bureau of land management

                        construction and access

       An additional $5,000,000 in emergency supplemental 
     appropriations for Construction and Access is made available 
     as proposed by the Senate instead of $4,242,000 as proposed 
     by the House. Of this amount, $758,000 is contingent upon 
     receipt of a budget request that includes a Presidential 
     designation of such amount as an emergency requirement as 
     defined in the Balanced Budget and Emergency Deficit Control 
     Act of 1985, as amended.


                   oregon and california grant lands

       An additional $35,000,000 in emergency supplemental 
     appropriations for Oregon and California Grant Lands is made 
     available as proposed by the Senate instead of $19,548,000 as 
     proposed by the House. Of this amount, $15,452,000 is 
     contingent upon receipt of a budget request that includes a 
     Presidential designation of such amount as an emergency 
     requirement as defined in the Balanced Budget and Emergency 
     Deficit Control Act of 1985, as amended.


                united states fish and wildlife service

                          resource management

       An additional $1,600,000 in emergency supplemental 
     appropriations for Resource Management is made available as 
     proposed by the Senate instead of no funding as proposed by 
     the House. The entire amount is contingent upon receipt of a 
     budget request that includes a Presidential designation of 
     such amount as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.


                              construction

       An additional $37,300,000 in emergency supplemental 
     appropriations for Construction is made available as proposed 
     by the Senate instead of $20,505,000 as proposed by the 
     House. Of this amount, $16,795,000 is contingent upon receipt 
     of a budget request that includes a Presidential designation 
     of such amount as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.
       The managers have neither agreed to bill language, proposed 
     by the Senate, earmarking specific funds for Devils Lake, ND 
     nor to report language earmarking funds for other locations. 
     The Service should carefully consider the needs at Devils 
     Lake, ND and at Kenai, AK as it allocates funds.


                         national park service

                              construction

       An additional $47,000,000 in emergency supplemental 
     appropriations for Construction is made available as proposed 
     by the Senate instead of $33,601,000 as proposed by the 
     House. Of this amount, $13,399,000 is contingent upon receipt 
     of a budget request that includes a Presidential designation 
     of such amount as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.


                    united states geological survey

                 surveys, investigations, and research

       An additional $2,000,000 in emergency supplemental 
     appropriations for Surveys, Investigations, and Research is 
     made available as proposed by the Senate instead of 
     $1,176,000 as proposed by the House. Of this amount, $824,000 
     is contingent upon receipt of a budget request that includes 
     a Presidential designation of such amount as an emergency 
     requirement as defined in the Balanced Budget and Emergency 
     Deficit Control Act of 1985, as amended.

                               CHAPTER 6

                         Department of Defense


                         military construction

     north atlantic treaty organization security investment program

       The conference agreement includes an additional $37,500,000 
     for the NATO Security Investment Program, as provided in both 
     the

[[Page H4283]]

      House and Senate bills. In addition, the conference 
     agreement includes rescissions totaling $37,500,000 to offset 
     this additional appropriation, as explained in Title III of 
     this report.


                           general provision

       The conferees agree to language proposed by the Senate 
     which gives the Secretary of the Army discretionary authority 
     to convey approximately five acres of land in Hale County, 
     Alabama. The House bill contained no similar provision.

                               CHAPTER 7

                    DEPARTMENT OF DEFENSE--MILITARY

                      SUPPLEMENTAL APPROPRIATIONS

       The House recommended a total of $782,500,000, designated 
     as emergency appropriations pursuant to the Budget Act, for 
     additional incremental U.S. military costs associated with 
     the Bosnia operation, including the NATO-led Peace 
     Implementation Force (IFOR) and Operation Deny Flight. The 
     Senate recommended $777,700,000 in new appropriations, none 
     of which were designated emergency. The House and Senate each 
     fully offset their respective supplemental funding through 
     rescissions of funds previously provided in Department of 
     Defense Appropriations Acts.
       The conference agreement provides a total of $820,000,000, 
     all designated as emergency appropriations. This amount is 
     fully offset by rescissions contained in Title III, Chapter 6 
     of the conference agreement. A summary of the conference 
     agreement by appropriations account is as follows:

                         [Dollars in thousands]                         
------------------------------------------------------------------------
            Account              Request    House    Senate   Conference
------------------------------------------------------------------------
Military Personnel:                                                     
  Army........................   244,400   262,200   244,400    257,200 
  Navy........................    11,700    11,800    11,700     11,700 
  Marine Corps................     2,600     2,700     2,600      2,600 
  Air Force...................    27,300    33,700    27,300     27,300 
  Total.......................   286,000   310,400   286,000    298,800 
Operation and Maintenance:                                              
  Army........................    48,200   235,200   195,000    241,500 
  Marine Corps................       900       900       900        900 
  Air Force...................   141,600   130,200   190,000    173,000 
  Defense-wide................    79,800    79,800    79,800     79,800 
  Total.......................   270,500   446,100   465,700    495,200 
Procurement:                                                            
  Other Procurement, Air Force    26,000    26,000    26,000     26,000 
      Grand Total.............   582,500   782,500   777,700    820,000 
------------------------------------------------------------------------

                           MILITARY PERSONNEL

       The conference agreement recommends a total of $298,800,000 
     for costs of active and reserve military personnel pay and 
     allowances. The conferees believe they have met the most 
     urgent military personnel requirements for the Bosnia 
     operation, and expect the Department to keep the Committees 
     on Appropriations advised of any revisions to these 
     estimates.

                       OPERATION AND MAINTENANCE

       The Department of Defense requested a total of $270,500,000 
     for operation and maintenance to fund the incremental costs 
     of U.S. participation in the NATO-led Bosnia Peace 
     Implementation Force (IFOR). The conferees recommend 
     $495,200,000, an increase of $224,700,000 above the 
     supplemental request, to provide for additional requirements 
     of the Army and the Air Force.

                              PROCUREMENT

                       Composite Shaft Fairwaters

       The Department of Defense Appropriations Act for Fiscal 
     Year 1996 contained $3,000,000 in ``Other Procurement, Navy'' 
     for procurement of composite shaft fairwaters for CG-47 
     cruisers. The Navy recently conducted testing of composite 
     shaft fairwaters and demonstrated extended life, reduced 
     maintenance, and improved capability for removing fairwaters 
     while a ship is waterborne. The Navy concluded, however, that 
     the most-cost effective approach is to incorporate this new 
     technology into Aegis destroyers while under construction 
     rather than to retrofit Aegis cruisers. The conferees 
     therefore direct the Under Secretary of Defense (Comptroller) 
     to submit a fiscal year 1996 transfer of $3,000,000 from 
     ``Other Procurement, Navy'' to Shipbuilding and Conversion, 
     Navy'' using standard reprogramming procedures.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Ballistic Missile Defense Management and Support

       The conferees note that a total increase to the budget of 
     $528,939,000 was provided for Ballistic Missile Defense 
     programs in the Department of Defense Appropriations Act, 
     1996. This total included a recommendation contained in the 
     National Defense Authorization Act, 1996, which cut 
     $30,000,000 from the Ballistic Missile Defense Organization's 
     (BMDO) Program Management and Support program element.
       In executing the additional tasks and responsibilities 
     required by the fiscal year 1996 program funding increases, 
     it has become clear that the burden on the BMDO Program 
     Management and Support program element has actually 
     increased. To minimize this impact, Congressional action to 
     date in proposed reprogrammings and rescissions has rejected 
     the application of any inflation reductions to BMDO accounts. 
     This bill includes a provision which further prohibits the 
     application of any portion of the proposed inflation 
     reductions against BMDO program elements.
       However, these restorations still leave BMDO with the 
     challenge of managing activities in the appropriate program 
     elements Therefore, the conferees hereby restore the 
     $30,000,000 reduction made to the Program Management and 
     Support program element. BMDO shall internally manage this 
     restoration by reallocating funds preciously identified as 
     excess because of decreased inflation estimates. The 
     inflation decreases shall be applied proportionally to each 
     BMDO RDT&E program element and project. The Director, BMDO, 
     shall provide the congressional defense committees a 
     statement detailing the specific decreases as applied to all 
     program elements.

               Defense Advanced Research Projects Agency

       The conferees direct that $500,000 of the funds provided 
     for the Defense Advanced Research Projects Agency may be 
     available to purchase photographic technology to support 
     research in detonation physics. The director of Defense 
     Research and Engineering shall provide the congressional 
     defense committees with a plan for the acquisition and use of 
     this instrument no later than may 29, 1996.

             Joint DOD-DOE Munitions Technology Development

       The conferees direct that $2,000,000 of the fiscal year 
     1996 funds allocated to the Joint DOD-DOE Munitions 
     Technology Development program element shall be used to 
     develop and test an open-architecture machine tool 
     controller.

                  Electronic Commerce Resource Centers

       The FY 1996 Defense Appropriations conference agreement 
     directed the transfer of the managerial responsibility for 
     the Electronic Commerce Resource Centers program to the 
     Defense Logistics Agency. Information from the Department has 
     subsequently come to the conferees' attention indicating that 
     the next implementation stage for this program can best be 
     accomplished under the direction of Deputy Under Secretary of 
     Defense for Logistics. The conferees endorse such action and 
     direct that a transfer of ECRC managerial responsibility to 
     the Deputy Under Secretary of Defense for Logistics be 
     accomplished expeditiously under the overall program guidance 
     expressed in the FY 1996 Defense Appropriations conference 
     report.

                           GENERAL PROVISIONS

                       General Transfer Authority

       Section 2701 of the conference agreement amends both House 
     and Senate provisions regarding the amount of additional 
     transfer authority provided under Section 8005 of the 
     Department of Defense Appropriations Act for Fiscal Year 
     1996, by providing $700,000,000 in additional transfer 
     authority. The conferees direct that the additional transfer 
     authority provided herein shall be available only to the 
     extent funds are transferred, or have been transferred during 
     the current fiscal year to cover costs associated with United 
     States military operations in support of the NATO-led Peace 
     Implementation Force (IFOR) in and around the former 
     Yugoslavia.

                             F-15E Aircraft

       The conference agreement includes a technical amendment 
     (Section 2702) requested by the Department of Defense and 
     contained in the Senate bill, which is needed to permit the 
     obligation of funding which was both authorized and 
     appropriated in fiscal year 1996 for the procurement and 
     advance procurement of F-15E aircraft.

                       C-17 Multiyear Procurement

       The conferees strongly support the multiyear procurement of 
     eighty C-17 advanced transport aircraft and have agreed to 
     bill language (Section 2703) authorizing the Air Force to 
     begin a seven-year multiyear program.
       However, the conferees also agree that additional savings 
     potentially can be generated from an accelerated multiyear 
     procurement of the C-17 over six program years. Therefore, 
     Section 2703 also directs the Secretary of Defense to enter 
     into negotiations with the C-17 aircraft and engine prime 
     contractors for contract alternatives for multiyear 
     procurement over a six-year period.
       The conference agreement prevents the exercise of the 
     multiyear authority until the Secretary of Defense certifies 
     that the Air Force will save more than 5 percent in the price 
     for eighty C-17 aircraft under a multiyear contract as 
     compared to annual lot procurement. The savings must exceed 
     the total amount of $895.3 million shown in the ``Multiyear 
     Procurement Criteria Program: C-17'' document submitted to 
     the Appropriations Committees on February 29, 1996.
       In calculating the savings from the multiyear proposals, 
     the conferees direct that the weapon system budget estimates 
     submitted with the C-17 multiyear procurement exhibits be 
     used as the baseline. The conferees also direct that in 
     conjunction with the certification required by section 
     2703(c) of the C-17 multiyear bill language, the Secretary of 
     Defense shall submit a new multiyear justification exhibit 
     package which reflects the additional savings achieved over 
     the original multiyear proposal submitted by the 
     Administration.
       The conferees believe that the seven-year authority should 
     enable the Air Force to generate savings significantly in 
     excess of the $895.3 million reflected in the original 
     multiyear proposal. It is the conferees' intent that the 
     additional savings should be realized from multiyear 
     contracts currently being negotiated. In addition, the 
     conferees believe that a six-year multiyear plan has the 
     potential to generate even greater savings.
       The conferees also agree to provisions delaying the 
     exercise of the multiyear authority to the earlier of May 24, 
     1996, or the day

[[Page H4284]]

      after enactment of a subsequent Act authorizing entry into a 
     C-17 multiyear contract. The Secretary of Defense also is 
     required to provide a detailed program plan for a six-year 
     multiyear procurement by May 24, 1996.

                                SEMATECH

       Section 2704 of the conference agreement amends a Senate 
     amendment and provides $50,000,000 for SEMATECH. This amount 
     is fully offset by rescissions in Title III, Chapter 6 of the 
     conference report.

             Overseas Humanitarian, Disaster, and Civic Aid

       The conference agreement includes Section 2705, as proposed 
     by the Senate, which provides authority to transfer up to 
     $15,000,000 in support of specific activities associated with 
     humanitarian assistance activities related to landmines.

                  Environmental Restoration Activities

       Section 2706 of the conference agreement amends a Senate 
     provision making $15,000,000 of ``Operation and Maintenance, 
     Army'' funding available in order to complete the Army's 
     remaining environmental remediation activities in recognition 
     of its 1988 agreement with National Presto Industries, Inc.

                Discharge of HIV-Positive Servicemembers

       Section 2707 of the conference agreement includes a Senate 
     provision regarding the discharge of HIV-positive 
     servicemembers.

                          B-52 Force Structure

       Section 2708 of the conference agreement amends a Senate 
     provision and adds $44,900,000 to ``Operation and 
     Maintenance, Air Force'' for the operation and maintenance of 
     94 B-52H bomber aircraft in active status or in attrition 
     reserve. This amount is fully offset by rescissions in Title 
     III, Chapter 6 of the conference report. The conferees 
     express their intent to not recommend additional funding for 
     B-52 aircraft in excess of the Air Force's stated 
     requirements unless the Air Force revises its bomber force 
     inventory estimates.

                          Mine Countermeasures

       Section 2709 of the conference agreement includes an 
     additional $10,000,000 for Shallow Mine Countermeasure 
     Demonstrations. This restores a general reduction made to 
     this account earlier in fiscal year 1996. These additional 
     funds are fully offset by rescissions in Title III, Chapter 6 
     of the conference report. The conferees believe the navy has 
     recently presented a more compelling strategy for developing 
     countermine warfare technology centered around a joint 
     exercise with Army, Navy, and Marine Corps forces of the U.S. 
     Atlantic Command in 1998. The additional funds provided in 
     the conference agreement will enable the Navy to test a 
     number of promising technologies that would otherwise miss 
     the 1998 exercise completely or else be demonstrated at less 
     than full scale. The Navy has indicated that it plans to use 
     $5,000,000 to allow the Advanced Lightweight Influence Sweep 
     System to be tested in the 1998 exercise with a full scale 
     magnet, and $5,000,000 would be used for the Explosive 
     Neutralization Advanced Technology Demonstration and Advanced 
     Degaussing.


                         army medical research

       Section 2710 of the conference agreement transfers 
     $8,000,000 of previously appropriated ``Defense Health 
     Program'' funds to the ``Research, Development, Test and 
     Evaluation, Army'' account in order to continue research of 
     neurofibromatosis. The Army has an ongoing successful 
     research program in this area. This makes a technical 
     clarification to the designation for this activity in the 
     Fiscal Year 1996 Defense Appropriations conference agreement 
     and involves no additional funds.


                          counter-drug support

       Section 2711 of the conference agreement authorizes the 
     Department to make grants to local counternarcotic task 
     forces in a high crime, low income area under its Counter 
     Drug program to provide Kevlar vests for enhanced personal 
     protection.

                               HAVE GAZE

       In section 2712 the conferees have recommended language to 
     clarify Section 8105 of Public Law 104-61 with respect to the 
     use of fiscal year 1995 funds appropriated for this Air Force 
     RDT&E program.

                      DEPARTMENT OF TRANSPORTATION

                        Office of the Secretary


                        payments to air carriers

                    (airport and airway trust fund)

       The conference agreement includes language that limits 
     obligations from the airport and airway trust fund to 
     $22,600,000 for payments to air carriers, as proposed by the 
     Senate. The House bill contained no similar provision.
       This limitation permits the obligation of general fund 
     carryover balances to pay outstanding commitments in fiscal 
     year 1996.

                     Federal Highway Administration


                          federal-aid highway

                          (highway trust fund)

       The conference agreement appropriates $300,000,000 for the 
     emergency fund to cover expenses resulting from the flooding 
     in the Mid-Atlantic, Northeast, and Northwest states, and 
     other disasters, as proposed by the Senate instead of 
     $267,000,000 as proposed by the House.
       The conference agreement waives the provisions of 23 U.S.C. 
     125(b)(1), which limit obligations to a single state 
     resulting from a single natural disaster to $100,000,000, as 
     proposed by the Senate. The House bill contained no similar 
     provision.

                    Federal Railroad Administration


                     local rail freight assistance

       The conference agreement deletes the Senate appropriation 
     of $10,000,000 to repair and rebuild rail lines of other than 
     class I railroads damaged as a result of the floods of 1996. 
     The House bill contained no similar appropriation.

                     Federal Transit Administration


                       mass transit capital fund

                (liquidation of contract authorization)

                          (highway trust fund)

       The conference agreement includes an appropriation of 
     $375,000,000 to liquidate contract authority obligations for 
     mass transit capital programs as proposed by both the House 
     and Senate.

                            Related Agencies


                        panama canal commission

                      panamaa canal revolving fund

       The conference agreement increases the limitation on 
     administrative expenses of the Panama Canal Commission by 
     $2,000,000, to be derived from the Panama Canal revolving 
     fund, as proposed the House. The Senate bill contained no 
     similar provision.

                           General Provisions

       The conference agreement deletes the Senate provision that 
     allows $3,250,000 of the Federal Transit Administration's 
     discretionary grants program for Kauai, Hawaii, to be used 
     for operating expenses. The House bill contained no similar 
     provision.
       The conference agreement includes a provision that requires 
     the Federal Highway Administration to make available up to 
     $28,000,000 in federal-aid obligation limitation to the State 
     of Missouri to make obligations for construction of a new 
     bridge in Hannibal, Missouri, from limitation set asides for 
     discretionary programs or limitation on general operating 
     expenses for fiscal year 1996. The provision further requires 
     restoration of that limitation before any funds made 
     available for the August redistribution prescribed in section 
     310 of Public Law 104-50 may be distributed. This provision 
     shall not affect the federal-aid bonus limitation provided by 
     section 310. The Senate bill contained a provision that 
     advances emergency relief funds to the State of Missouri for 
     the replacement in kind of the Hannibal bridge on the 
     Mississippi River. The House bill contained no similar 
     provision.
       The conference agreement includes a provision that permits 
     the state of Vermont to use up to $3,500,000 of the 
     discretionary grants identified in the conference agreement 
     accompanying Public Law 104-50 provided to the state and the 
     marble Valley Regional Transit District for improvements to 
     support commuter rail operations on the Clarendon-Pittsford 
     rail line between White Hall, New York, and Rutland, Vermont. 
     The Senate bill allowed the State of Vermont to obligate 
     funds apportioned to the state under the surface 
     transportation and congestion mitigation and air quality 
     improvement programs for railroad capital and/or operating 
     expenses. The House bill contained no similar provision.
       The conference agreement includes language that provides 
     the administrator of the Federal Aviation Administration 
     discretion to take into consideration unique circumstances in 
     the State of Alaska when making certain changes to specified 
     regulations, effective until June 1, 1997. The House and 
     Senate bills contained no similar provision.
       The conference agreement includes a provision that 
     specifies that the unobligated funds provided for the Chicago 
     central area circulator project in Public Law 103-122 and 
     Public Law 103-331 be available only for constructing a 5.2-
     mile light rail loop within the downtown Chicago business 
     district as described in the full funding grant agreement 
     signed on December 15, 1994, and shall not be available for 
     any other purpose. The House and Senate bills contained no 
     similar provision.

                       DEPARTMENT OF THE TREASURY

                          Departmental Offices


                         salaries and expenses

       Deletes provision proposed by the Senate as part of the 
     Administration's initiative to combat middle eastern 
     terrorism, which included $3,000,000 for the Office of 
     Foreign Assets Control.

                     United States Customs Service


                   customs services at small airports

       Deletes provision in P.L. 104-52 capping collections for 
     Customs services at small airports at $1,406,000 as proposed 
     by the House. The Senate had no comparable provision.

                        Internal Revenue Service


          administrative provisions--internal revenue service

       Amends P.L. 104-52 by adding a new provision which sets a 
     floor on the level of service, staffing, and funding for IRS 
     taxpayer service operations as proposed by the House. The 
     Senate had no comparable provision.

    Executive Office of the President and Funds Appropriated to the 
                               President

                 Office of National Drug Control Policy


                         salaries and expenses

       Provides that $1,000,000 of the amounts available to the 
     Counter-Drug Technology Assessment Center shall be used for 
     conferences on model State drug laws as proposed by the 
     House. The Senate had no comparable provision.

[[Page H4285]]

       Appropriates an additional $3,400,000 for the salaries and 
     expenses of the Office of National Drug Control Policy as 
     requested by the Administration, instead of no additional 
     funding as proposed by the House and $3,900,000 as proposed 
     by the Senate. This will provide resources for an additional 
     80 full-time equivalent positions and overhead expenses for 
     30 military detailees, raising the complement of ONDCP to 154 
     positions by the end of the fiscal year.
       ONDCP has a strategic mission: to aid and oversee 
     operational agencies in coordinating the national drug 
     control policy. The Congress never intended ONDCP to become 
     an operational entity, but instead to formulate, direct, and 
     oversee the implementation of the annual drug control 
     strategy using the expertise of line agencies. The conferees 
     are concerned that a rapid expansion in staffing that is not 
     carefully thought out will result in ONDCP duplicating the 
     functions of already existing programs and agencies.
       To ensure that this does not occur, the conferees direct 
     the Director of ONDCP to submit a detailed staffing plan to 
     the House and Senate Committees on Appropriations within 30 
     days of enactment of this legislation. Such plan shall 
     include an organizational chart, a detailed description of 
     the function of each component of the office, and a detailed 
     description of the duties associated with each position.

                           General Provisions


        commission on restructuring the internal revenue service

       Includes a provision which increases, by four, the 
     membership of the Commission on Restructuring the Internal 
     Revenue Service as proposed by the Senate. The House had no 
     comparable provision.

                               Chapter 10

 DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT AND 
                          INDEPENDENT AGENCIES

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                   Community Planning and Development

                      Community Development Grants

       The Conferees agree to provide $50,000,000 for the 
     Department of Housing and Urban Development Community 
     Development Block Grant Program for emergency activities 
     related to recent Presidentially declared flood disasters.

          FEDERAL EMERGENCY MANAGEMENT AGENCY DISASTER RELIEF


                     (including transfer of funds)

       The conference agreement includes language allowing up to 
     $104,000,000 by transfer from the disaster relief account to 
     the disaster assistance direct loan program account for the 
     cost of direct loans as authorized by section 417 of the 
     Stafford Act. Language is included which limits community 
     disaster loan authority to $119,000,000, requires that the 
     Director of FEMA certify that the provisions of section 417 
     of the Stafford Act will be complied with and requires that 
     the entire amount of this transfer is available only to the 
     extent that an official budget request for a specific dollar 
     amount is forwarded to the Congress. The Conferees fully 
     expect that these terms be complied with in an expeditious 
     manner so as to release necessary loan funds to meet known 
     emergency disaster needs of the Virgin Islands.

                           General Provisions


            waiver of statutes or regulations for assistance

       The conference agreement retains a provision proposed by 
     the Senate allowing the Secretary of any department to waive 
     any statute or regulation that the Secretary administers in 
     connection with the obligation of funds for domestic 
     assistance. The Secretary may also specify alternative 
     requirements to the statutes or regulation being waived. 
     Civil rights, fair housing and nondiscrimination, the 
     environment, and labor standards statutes and regulations 
     could not be waived. The Secretary must find that the waiver 
     is required to facilitate the obligation of the assistance 
     and would not be inconsistent with the statue or regulation 
     being waived. The House bill contained no similar provision.
       This provision has been included in past disaster 
     appropriations bills. The managers expect this provision to 
     be implemented in a manner similar to past practices and only 
     in those cases where not waiving the statutes or regulations 
     would cause unnecessary and significant delays in assistance.


              priorities of allocation of emergency funds

       The conference agreement deletes a provision proposed by 
     the Senate that funds for emergency or disaster assistance 
     programs for USDA, HUD, EDA, SBA, the National Park Service 
     and the U.S. Fish and Wildlife Service could be allocated in 
     accordance with the prioritization process of the respective 
     department. The House bill contained no similar provision.
       In developing this conference agreement, the managers have 
     carefully developed the priority considerations for funding 
     the various activities included in it. For the most part, 
     there are no restricting allocations imposed in this 
     conference agreement on the funding provided for disaster 
     assistance. Priorities on allocations have only been imposed 
     where specific concerns needed to be addressed. Because these 
     matters were addressed on a case by case basis, the general 
     provision has been deleted.


                      disaster assistance offsets

       The conference agreement deletes a provision proposed by 
     the Senate that the conference agreement should include 
     sufficient reductions and savings to offset the funding 
     provided for disaster assistance. The House bill, which did 
     include offsets for disaster funding, contained no similar 
     provision. Since this conference agreement does include the 
     necessary offsets, this provision has been complied with and 
     is no longer necessary.


                budget treatment of disaster assistance

       The conference agreement deletes a provision proposed by 
     the Senate to have Congress address the manner in which 
     disaster assistance is provided and develop a long-term 
     funding plan for the budget treatment of disaster assistance 
     funding. The House bill contained no similar provision.
       This matter has been reviewed several times, and the 
     managers agree that another review and analysis would only 
     delay any decision on possible changes in how the budget 
     treatment of these type appropriations is handled. The 
     conferees agree that the results of previous analyses should 
     be considered as future budget resolutions are developed to 
     see if any changes might be warranted.


                      restriction on expenditures

       The conference agreement deletes a provision proposed by 
     the Senate that would have restricted non-defense 
     expenditures to certain fixed amounts if the funds in this 
     conference agreement and other previous Acts would cause 
     these amounts to be exceeded. The House bill contained no 
     similar provision.
       Because the funding included in this conference agreement 
     is either within the spending limits or is offset herein, 
     this provision is no longer necessary.

                 Additional Supplemental Appropriations

       On April 12, 1996, the President forwarded to the Congress 
     a supplemental appropriations request for various counter-
     drug programs. The conferees express their intent to fund 
     these additional requirements in the fiscal year 1997 
     appropriations process.

                   TITLE III--RESCISSIONS AND OFFSETS

                               Chapter 1


                      energy and water development

    subchapter a--united states enrichment corporation privatization

       The conference agreement includes language contained in the 
     Senate bill authorizing the Board of Directors of the United 
     States Enrichment Corporation to transfer the interest of the 
     United States in the United States Enrichment Corporation to 
     the private sector.


       subchapter b--bonneville power administration refinancing

       The conference agreement includes language contained in 
     section 3003 of the Senate bill regarding refinancing of 
     Bonneville Power Administration debt.

                               Chapter 2


       foreign operations, export financing, and related programs

                    export and investment assistance

                export-import bank of the united states

                         subsidy appropriation

                              (rescission)

       The conference agreement rescinds $42,000,000 of the 
     unobligated balances available under this heading instead of 
     $41,000,000 as proposed by the House. The Senate had proposed 
     a rescission of $25,000,000 from funds made available under 
     this heading in Public Law 104-107.

                               Chapter 3

            Department of the Interior and Related Agencies

                          Department of Energy


                      strategic petroleum reserve

       The managers have agreed to sell $227,000,000 worth of oil 
     from the Weeks Island site of the Strategic Petroleum Reserve 
     (SPR). The Weeks Island site in Louisiana is currently being 
     decommissioned and the oil is being relocated to other SPR 
     locations because of a water intrusion problem. This sale is 
     proposed to offset partially additional funding provided for 
     high priority education programs identified by the 
     Administration. To pay for decommissioning of the site, 5.1 
     million barrels of the 70 million barrels of Weeks Island oil 
     have already been sold in fiscal year 1996. An additional 12 
     million to 15 million barrels will need to be sold to realize 
     $227 million in revenues.

                               Chapter 4

     Departments of Labor, Health and Human Services, and Education

                Departments of Health and Human Services

       The conference agreement includes a provision as proposed 
     by the Senate rescinding funding available but unclaimed by 
     States under the Job Opportunities and Basic Skills program.

                        Department of Education

       The conference agreement includes a provision that was not 
     included in either the House or Senate bill reducing the 
     amount of new funding for the Pell Grant program by 
     $53,446,000. Because of the substantial amount of funding 
     carrying forward in FY 1996 from previous appropriations, 
     this reduction will not reduce the amount of funding actually 
     expended for Pell Grants in FY 1996.

[[Page H4286]]

       The conference agreement does not include a general 
     provision proposed by the Senate (section 3014) that 
     expressed the sense of the Senate with respect to funding for 
     the Low Income Home Energy Assistance Program (LIHEAP).

                         Military Construction


                             (rescissions)

       The conference agreement rescinds a total of $37,500,000 
     from funds appropriated for fiscal year 1996 (Public Law 104-
     32), instead of no rescissions as proposed by both the House 
     and the Senate. The conferees agree to rescind the following 
     sums from the following accounts:

Military Construction, Army..................................$6,385,000
Military Construction, Navy...................................6,385,000
Military Construction, Air Force..............................6,385,000
Military Construction, Defense-wide..........................18,345,000
                                                       ________________

      Total..................................................37,500,000

       The conferees agree to rescissions in the Army, Navy, and 
     Air Force accounts in order to bring the fiscal year 1996 
     appropriation amounts into conformance with authorization. 
     The conferees emphasize that the construction programs funded 
     by these accounts will not be changed by these rescissions, 
     and that no project will be reduced in scope or canceled.
       With regard to the ``Military Construction, Defense-wide'' 
     account, the conferees agree to the following rescissions:

Energy Conservation Investment Program......................$10,000,000
Planning and Design...........................................8,345,000
                                                       ________________

      Total..................................................18,345,000

       In the case of the Energy Conservation Investment Program, 
     the conferees agree to the rescission of $10,000,000 in order 
     to bring the program into conformance with authorization, and 
     $40,000,000 remains available for this program in fiscal year 
     1996. In the case of Planning and Design funds, the conferees 
     agree to the rescission of $8,345,000 which is not required 
     at this time, and $60,492,000 remains available in fiscal 
     year 1996.

              DEPARTMENT OF DEFENSE--MILITARY RESCISSIONS

       The House and Senate bills contained rescissions proposed 
     by the President or transfers of previously appropriated 
     Department of Defense funding in order to fully offset the 
     new defense appropriations in their respective bills. In this 
     chapter, the conferees recommend total rescissions of 
     $994,900,000, which totally offset the new appropriations 
     contained in Title II, Chapter 7 of the conference report, as 
     well as funds provided for the transfer of F-16 aircraft to 
     Jordan in Title II, Chapter 4.
       A summary of rescissions showing House, Senate, and 
     conference recommendations by appropriation account is in the 
     following table:

                               RESCISSIONS                              
                         [Dollars in thousands]                         
------------------------------------------------------------------------
             Appropriation                House      Senate   Conference
------------------------------------------------------------------------
Missile Procurement, Air Force 1995/                                    
 1997.................................   $310,000   $310,000    $310,000
Other Procurement, Air Force 1995/1997    265,000    265,000     265,000
Research, Development, Test and                                         
 Evaluation, Air Force 1995/1996......    245,000    245,000     245,000
Research, Development, Test and                                         
 Evaluation, Army 1996/1997...........      9,750      7,000      19,500
Research, Development, Test and                                         
 Evaluation, Navy 1996/1997...........     17,500     12,500      45,000
Research, Development, Test and                                         
 Evaluation, Air Force 1996/1997......     22,450     16,000      69,800
Research, Development, Test and                                         
 Evaluation, Defense-wide 1996/1997...     20,300     14,500      40,600
                                       ---------------------------------
      Grand Total.....................    890,000    870,000     994,900
------------------------------------------------------------------------

                               Chapter 7

                      DEPARTMENT OF TRANSPORTATION

                    Federal Aviation Administration


                       grants-in-aid for airports

                     (airport and away trust fund)

                 (rescission of contract authorization)

       The conference agreement includes a rescission of 
     $664,000,000 in contract authority from the grants-in-aid for 
     airports program as proposed by the Senate. The rescission of 
     contract authority applies to those funds that are not 
     available for obligation due to annual limits on obligations. 
     The House bill contained no similar rescission.

                     Federal Highway Administration


                     highway-related safety grants

                          (highway trust fund)

                 (rescission of contract authorization)

       The conference agreement includes a rescission of 
     $9,000,000 in contract authority from highway-related safety 
     grants. The rescission of contract authority applies to those 
     funds that are not available for obligation due to annual 
     limits on obligations. The House and Senate bills contained 
     no similar rescission.


                      motor carrier safety grants

                          (highway trust fund)

                 (rescission of contract authorization)

       The conference agreement includes a rescission of 
     $33,000,000 in contract authority from motor carrier safety 
     grants. The rescission of contract authority applies to those 
     funds that are not available for obligation due to annual 
     limits on obligations. The House and Senate bills contained 
     no similar rescission.

             National Highway Traffic Safety Administration


                     highway traffic safety grants

                          (highway trust fund)

                 (rescission of contract authorization)

       The conference agreement includes a rescission of 
     $56,000,000 in contract authority from highway traffic safety 
     grants. The rescission of contract authority applies to those 
     funds that are not available for obligation due to annual 
     limits on obligations. The House and Senate bills contained 
     no similar rescission.

                          INDEPENDENT AGENCIES

                    GENERAL SERVICES ADMINISTRATION


                              (rescission)

       The conferees have agreed to rescind $3,400,000 from funds 
     made available to the General Services Administration (GSA) 
     for installment acquisition payments instead of the 
     $3,500,000 rescission as proposed by the Senate and no 
     rescission as proposed by the House. This rescission offsets 
     the $3,400,000 in new budget authority for the Office of 
     National Drug Control Policy (ONDCP) as discussed in Chapter 
     9 of Title II of this Act.
       The conferees have agreed to no rescission of funds made 
     available to GSA for advance design ($200,000) and the U.S. 
     Tax Court ($200,000) as proposed by the Senate. The House did 
     not address this rescission.

                               Chapter 9

 DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT AND 
                          INDEPENDENT AGENCIES

                  FEDERAL EMERGENCY MANAGEMENT AGENCY


                            disaster relief

                              (rescission)

       The conferees have proposed a rescission of $1,000,000,000 
     of disaster relief funds to help off-set appropriations 
     levels provided in H.R. 3019. Such disaster funds were 
     provided in the disaster relief and disaster relief 
     contingency fund accounts in Public Law 104-19.
       The conferees expect that this rescission will leave the 
     Federal Emergency Management Agency approximately 
     $1,300,000,000 short of known or expected requirements by the 
     end of fiscal year 1997. As such, it is expected that FEMA 
     will request an appropriate supplemental budget request to 
     meet necessary requirements at an early point during fiscal 
     year 1997.

                               Chapter 10


                      debt collection improvements

       The conferees have agreed to include and amend a provision 
     proposed by the Senate which addresses debt collection 
     improvements, instead of no provision as proposed by the 
     House. The conferees have modified the provision so that it 
     more closely resembles the Debt Collection Improvement Act of 
     1995, as developed by the Government Reform and Oversight 
     Committee of the House of Representatives. The conferees have 
     not included language as proposed by the Senate which would 
     have permitted non-judicial foreclosure of mortgages.
       The conferees direct that the Office of Management and 
     Budget (OMB) provide coordination and oversight for 
     development and implementation of the debt collection program 
     created by this section. Additionally, with regard to the 
     Debt Collection Improvement Account, the conferees direct the 
     OMB to determine the baseline from which the increased 
     collections are measured over the prior fiscal year, taking 
     into account the recommendations made by the Secretary of the 
     Treasury in consultation with creditor agencies.
       The conferees strongly support repayment of delinquent 
     government debt by all those who can afford to do so. 
     However, the conferees recognize that those who receive 
     federal benefits, particularly Social Security benefits, may 
     be dependent upon them for a substantial part of their 
     income. In order to avoid unreasonable hardship, the 
     conferees insist that any federal debt collection effort give 
     full consideration to the financial situation of the 
     individual who may repay the debt.
       By definition, recipients of Social Security benefits are 
     elderly or totally disabled workers and their dependents, or 
     the surviving dependents of deceased workers. The conferees 
     intend that in cases where such benefits are involved, it is 
     particularly important for the Treasury Department as well as 
     all other Executive Branch organizations involved in 
     developing regulations to implement this provision, to create 
     regulatory safeguards which separate those debtors who cannot 
     repay from those who refuse to pay. In particular, those who 
     have become delinquent because of personal hardship, such as 
     debilitating disability, or death of the breadwinner, and who 
     may therefore be unable, rather than unwilling, to repay, 
     must be protected if administrative offset of those benefits 
     would cause undue financial hardship. Such safeguards are 
     critical when benefits such as Social Security are the sole 
     or major source of income for the debtor.
       The conferees want to ensure that the Department of the 
     Treasury regulations governing new debt collection procedures 
     will be

[[Page H4287]]

      cautiously and thoughtfully implemented, providing full 
     safeguards for beneficiaries. Recognizing the dependence of 
     those receiving federal benefits on those benefits, the 
     conferees direct that the Treasury Department limit automatic 
     withholding of benefits above the $9,000 annual exemption to 
     a reasonable percentage of those benefits, not to exceed 15 
     percent. Of course, debtors wishing to repay more would be 
     free to do so by remittance or other voluntary means.
       The conferees agree that it is particularly important to 
     recognize that individual circumstances change and even an 
     individual with a good repayment record could face a personal 
     or financial misfortune that makes further repayment 
     difficult, if not impossible. For example, the death of the 
     family breadwinner, despite the payment of survivor benefits, 
     could indicate a substantial loss of income to a family. To 
     suddenly or excessively reduce a surviving dependent's 
     benefits could further threaten an already precarious 
     economic situation for the affected dependent.

                       Contingent Appropriations

       The conference agreement does not include any 
     appropriations which would have been available only on the 
     enactment of subsequent legislation that would have credited 
     the Committees on Appropriations with sufficient savings to 
     offset these appropriations. The House bill and the Senate 
     amendment both contained this type of contingent 
     appropriations but in different amounts. In lieu of providing 
     any such contingent appropriations the conference agreement 
     includes regular appropriations and offsetting savings above 
     the regular appropriations or offset amounts in either the 
     House or Senate passed versions of the bill. The additional 
     amount of offsets result in this conference agreement being 
     within the designated spending limits.

                       Environmental Initiatives

       The conference agreement does not include a separate title 
     on environmental initiatives as proposed by the Senate. 
     Instead these issues have been addressed in other parts of 
     the conference agreement.

         Disclosure of Lobbying Activities by Federal Grantees

       The conference agreement deletes a provision requiring 
     disclosure of lobbying activities by Federal grantees as 
     proposed by the House. The Senate amendment contained no 
     similar provision.

                       Deficit Reduction Lock-Box

       The conference agreement deletes a provision proposed by 
     the House that would have reduced the Committees on 
     Appropriations spending allocations when spending reduction 
     amendments are adopted during consideration of appropriations 
     bills in either body. The Senate amendment contained no 
     similar provision.

                   Conference Total--With Comparisons

       The total new budget (obligational) authority for the 
     fiscal year 1996 recommended by the Committee of Conference, 
     with comparisons to the fiscal year 1995 amount, the 1996 
     budget estimates, and the House and Senate bills for 1996 
     follow:

New budget (obligational) authority, fiscal year 1995..$374,952,232,061
Budget estimates of new (obligational) authority, fiscal404,545,750,093
House bill, fiscal year 1996............................382,607,656,000
Senate bill, fiscal year 1996...........................384,492,162,999
Conference agreement, fiscal year 1996..................380,684,327,000
Conference agreement compared with:
    New budget (obligational) authority, fiscal year 1995.5,732,094,939
    Budget estimates of new (obligational) authority, fi-23,861,423,093
    House bill, fiscal year 1996.........................-1,923,329,000
    Senate bill, fiscal year 1996........................-3,807,835,999

     For consideration of the House Bill (except for section 
     101(c)) and the Senate amendment (except for section 101(d)), 
     and modifications committed to conference:
     Bob Livingston,
     John Myers,
     Bill Young,
     Ralph Regula,
     John Edward Porter,
     Hal Rogers,
     Joe Skeen,
     Frank R. Wolf,
     Barbara Vucanovich,
     Jim Lightfoot,
     Sonny Callahan,
     James T. Walsh,
     David R. Obey,
     Louis Stokes,
     Tom Bevill,
     John P. Murtha,
     Charles Wilson,
     Bill Hefner,
     Alan Mollohan,
     For consideration of section 101(c) of the House bill, and 
     section 101(d) of the Senate amendment, and modifications 
     committed to conference:
     John Edward Porter,
     Bill Young,
     Ernest Istook,
     Dan Miller,
     Jay Dickey,
     Frank Riggs,
     Roger F. Wicker,
     Bob Livingston,
     David R. Obey,
     Louis Stokes,
     Steny Hoyer,
     Nancy Pelosi,
     Nita M. Lowey,
                                Managers on the Part of the House.

     Mark O. Hatfield,
     Ted Stevens,
     Thad Cochran,
     Arlen Specter,
     Pete V. Domenici,
     Christopher S. Bond,
     Slade Gorton,
     Mitch McConnell,
     Connie Mack,
     Richard C. Shelby,
     James M. Jeffords,
     Robert F. Bennett,
     Ben Nighthorse Campbell,
     Robert Byrd,
     Daniel K. Inouye,
     Fritz Hollings,
     J. Bennett Johnston,
     Patrick J. Leahy,
     Dale Bumpers,
     Frank R. Lautenberg,
     Tom Harkin,
     Barbara A. Mikulski,
     Harry Reid,
     J. Robert Kerrey,
     Patty Murray,
     Managers on the Part of the Senate.

                          ____________________