[House Report 104-660]
[From the U.S. Government Publishing Office]
104th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 104-660
_______________________________________________________________________
TREASURY, POSTAL SERVICE, AND GENERAL GOVERNMENT APPROPRIATIONS BILL,
1997
_______
July 8, 1996.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______________________________________________________________________
Mr. Lightfoot, from the Committee on Appropriations, submitted the
following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 3756]
The Committee on Appropriations submits the following
report in explanation of the accompanying bill making
appropriations for the Treasury Department, the Postal Service,
the Executive Office of the President, and certain Independent
Agencies for the fiscal year ending September 30, 1997, and for
other purposes.
INDEX TO BILL AND REPORT
_______________________________________________________________________
Page number
Bill Report
Summary of the Bill........................................
3
TITLE I--DEPARTMENT OF THE TREASURY
Automation Enhancement..................................... 3
11
Bureau of Alcohol, Tobacco and Firearms.................... 13
22
Bureau of Engraving and Printing...........................
33
Bureau of the Public Debt.................................. 20
36
Departmental Offices....................................... 2
8
Federal Law Enforcement Training Center.................... 10
20
Financial Crimes Enforcement Network....................... 6
16
Financial Management Service............................... 12
21
General Provisions--Treasury Department.................... 26
46
Internal Revenue Service................................... 20
37
Office of Inspector General and Internal Audit of the
Internal Revenue Service............................... 4
12
Office of Professional Responsibility...................... 4
14
Treasury Buildings and Annex Repair and Restoration........ 5
15
Treasury Forfeiture Fund................................... 6
17
Treasury Franchise Fund.................................... 8
20
United States Customs Service.............................. 13
26
United States Mint.........................................
35
United States Secret Service............................... 24
45
Violent Crime Reduction Programs........................... 7
18
TITLE II--POSTAL SERVICE
Payment to the Postal Service Fund......................... 29
47
TITLE III--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO
THE PRESIDENT
Compensation of the President and the White House Office... 30
50
Council of Economic Advisers............................... 33
51
Executive Residence at the White House..................... 31
50
Federal Drug Control Programs..............................
58
National Security Council.................................. 34
53
Office of Administration................................... 34
53
Office of Management and Budget............................ 35
53
Office of National Drug Control Policy..................... 36
55
Office of Policy Development............................... 33
52
Special Assistance to the President and Official Residence
of the Vice President.................................. 31
51
Unanticipated Needs........................................
57
TITLE IV--INDEPENDENT AGENCIES
Committee for Purchase from People who are Blind or
Severely Disabled...................................... 38
59
Federal Election Commission................................ 38
60
Federal Labor Relations Authority.......................... 39
62
General Services Administration............................ 40
62
John F. Kennedy Assassination Records Review Board......... 55
75
Merit Systems Protection Board............................. 55
76
National Archives and Records Administration............... 55
76
Office of Government Ethics................................ 57
79
Office of Personnel Management............................. 57
80
Office of Special Counsel.................................. 61
85
United States Tax Court.................................... 62
86
TITLE V--GENERAL PROVISIONS
This Act................................................... 62
86
TITLE VI--GOVERNMENTWIDE GENERAL PROVISIONS
Departments, Agencies, and Corporations.................... 81
88
Compliance with House Rules................................
92
Tables.....................................................
126
Summary of the Total Bill
The accompanying bill contains recommendations for new
budget (obligational) authority for fiscal year 1997 for the
Department of the Treasury, the Postal Service, various offices
in the Executive Office of the President, and certain
Independent Agencies. The following table summarizes these
recommendations and reflects comparisons with the budget, as
amended, and with amounts appropriated to date for fiscal year
1996:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Bill compared with--
New budget Budget estimates -------------------------------------
(obligation) of new Recommended in New budget
Agency authority fiscal (obligational) the bill (obligational) Budget estimate,
year 1996 enacted authority, fiscal authority fiscal fiscal year 1997
to date year 1997 year 1996
--------------------------------------------------------------------------------------------------------------------------------------------------------
Treasury................................................. 10,380,513 11,284,582 9,976,559 -403,954 -1,308,023
Postal Service........................................... 121,908 102,817 85,080 -36,828 -17,737
Executive Office of the President........................ 279,244 286,339 295,339 +16,095 +9,000
Independent agencies..................................... 12,382,089 13,172,819 12,858,272 +476,183 -314,547
Grand total........................................ 23,163,754 24,846,557 23,215,250 +51,496 -1,637,307
--------------------------------------------------------------------------------------------------------------------------------------------------------
recommendation
The Committee has provided a total of $11,113,000,000 in
discretionary resources for the agencies under its
jurisdiction. After scorekeeping adjustments, this represents a
reduction of $129,514,000 in budget authority from 1996 enacted
levels and a reduction of $1,652,307,000 from the amount
requested by the President.
The Committee's recommendation will result in outlays of
$11,055,000,000 in 1997, a reduction of $512,976,000 from 1996
levels. Combined with the 1997 recommendation, since January of
1995, this subcommittee has achieved deficit saving of $1.2
billion from programs under its jurisdiction.
general statement
Last year, the Subcommittee began an ambitious oversight
agenda for programs and agencies under its jurisdiction,
effectively putting agencies on notice that it was no longer
business as usual. The Committee ultimately achieved savings of
$646 million, including the termination of 2 agencies, the
restructuring of ineffective operations, and the consolidation
of duplicative functions.
Fiscal year 1997 is the second year of the Committee's
increased oversight efforts. Over the past several months, the
Committee held 16 hearings, reviewing agency spending and
performance plans and assessing agency operations. While the
Committee is pleased with the performance of some of the
agencies under its jurisdiction, it is concerned with what
appears to be other disturbing patterns, including a misguided
perception that Congressional efforts to downsize the federal
government are a temporary short-term problem that can be
addressed using temporary short-term solutions.
The fact is, efforts to downsize, streamline and
restructure agencies under the subcommittee's jurisdiction are
not a one shot deal. They are the way of the future. As the
President has stated, the era of big government is over. Anyone
who believes otherwise will be left behind as the federal
government learns to manage its operations using less resources
more efficiently. The Committee has been nothing but forthright
about this from the first day of the 104th Congress.
Unfortunately, some agencies have simply failed to heed this
advice and continue to operate on the basis of business as
usual.
The Committee's allocation for the upcoming fiscal year
requires that spending for agencies under its jurisdiction be
reduced by $513 million, a reduction of 4.5 percent. This
allocation can not support a business as usual approach.
requests for appropriations
The Committee is acutely aware that some agencies under its
jurisdiction have become complacent in their requests for
appropriations. Agency requests for resources are premised on
the idea that inflationary adjustments should occur
automatically. Justifications for computer hardware and
software are woefully inadequate, with agencies claiming gains
in productivity but with no back up documentation. Agencies
continue to request additional resources to staff large
bureaucracies in Washington, D.C. at the expense of people on
the streets delivering services to the public. Agencies
continue to stonewall Committee efforts to test the feasibility
of privatizing traditionally governmental functions. And,
finally, some agencies fight to justify and defend operational
deficiencies on the basis of ``insufficient resources''. The
Committee does not operate on the premise that more money will
solve organizational and programmatic deficiencies. Resources
are not a panacea for what ails failing programs and the
Committee will simply not tolerate agencies hiding behind the
guise of inadequate resources as a justification for poor
performance.
1997 recommendation
In order to address the committee's concerns, the 1997
recommendation includes several bold initiatives. The Committee
has looked long and hard at programs under its jurisdiction and
the recommendations for 1997 reflect the Committee's best
judgment on ways to get programs that have gone seriously off
track--most notably IRS's Tax Systems Modernization Program--
back on. The 1997 bill reflects a commitment to provide
agencies with the resources and support necessary to satisfy
their statutory requirements and simultaneously achieve
economies of scale using smarter management practices.
The Committee is aware that many of the proposed
initiatives will be opposed by the Administration as well as
defenders of the status quo. Ultimately, however, the Committee
trusts that these defenders will understand the future will not
tolerate a complacent, business as usual, approach to meeting
our nation's most fundamental needs.
Adherence to Guidelines and Direction Included in Committee Reports
The Committee is extremely disappointed with several
agencies under its jurisdiction for failure to comply with
various directions included in the report accompanying the FY
1996 House bill as well as the report accompanying the FY 1996
conference agreement.
In some cases, agencies have knowingly disregarded
committee intent and direction; in other cases, agencies have
claimed they were unaware that certain report language even
existed or were confused about its intent. The Committee finds
both positions indefensible.
In order to address intentional disregard of Committee
direction, in many instances in the 1997 bill, the Committee
has specifically earmarked resources for certain purposes as
well as fenced appropriations pending some action on the part
of the agency. The Committee does not wish to ``micro-manage''
agencies but feels it is left with no other alternative in
order to address this problem.
In those cases where agencies claim they have disregarded
direction because they were simply ``unaware'' of certain
report language, the Committee notes that, at a minimum, two
offices within each agency share responsibility for tracking
various appropriations measures: the Budget Office and the
Office of Congressional Affairs. The Committee cautions these
offices to be more thorough in their review of Committee
reports.
Finally, for those agencies claiming they are uncertain
about Committee intent and direction, they are urged to
maintain open and frequent dialogue with the Committee in order
to avoid misunderstandings and clear up possible ambiguities.
law enforcement
The Treasury Postal Subcommittee has under its jurisdiction
about 30 percent of all federal law enforcement personnel. The
Committee is committed to strengthening and improving the
operations of these law enforcement agencies and has provided
$3.5 billion for the upcoming fiscal year, an increase of 14
percent (+$410 million) over the 1996 levels and above the
President's request by $157 million.
While the Committee is pleased that the President requested
additional resources for initiatives such as Customs' Operation
Hardline, the Committee is dismayed by the Administration's
lack of funding for other serious law enforcement issues such
as the surge of drugs entering our borders through the
Caribbean. Where the President failed to fund efforts to combat
these problems, the Committee has provided $28 million to fund
Operation Gateway, a coordinated effort to reduce air and
marine smuggling throughout the Caribbean. The Committee has
also provided $12 million for enhanced investigations of church
fires in both 1996 and 1997 and an additional $28 million for
restoration of the Customs air interdiction infrastructure
program, which has been eroded over the past several years.
The Committee also believes the Administration's efforts to
fund and coordinate investigations of missing and exploited
children are inadequate, particularly as it relates to
investigations of child pornography. The Committee has provided
a total of $4.2 million for these efforts in 1997, including
$1.6 million for the Secret Service's efforts for enhanced
forensic technologies, $400,000 for two additional staff within
the Secret Service devoted to investigations of child
pornography, and $2.2 million for the establishment and
operation of a child exploitation unit at the National Center
for Missing and Exploited Children. The Committee also calls
for enhanced coordination of efforts between the Postal
Service, the Customs Service, the General Services
Administration and the Secret Service as it relates to child
pornography investigations.
fiscal year 1997 budget resolution
The Committee is pleased to note that the report to
accompany H. Con. Res. 178 supports the prerogative of the
Appropriations Committee to pursue alternative policies from
those included in the Budget Resolution so long as the
Committee stays within its discretionary resource allocation.
In some instances, the Committee's recommendation supports the
assumptions of the budget resolution. In other cases, the
Committee has pursued alternative options. Overall, however,
the Committee has stayed within its resource allocation,
achieving $513 million in deficit reduction for the upcoming
fiscal year. Combined with the 1996 appropriation and the 1995
rescission, this subcommittee has achieved a total of $1.2
billion in deficit reduction since January of 1995.
reprogramming and transfer requirements
The Committee expects agency justifications for proposed
reprogramming requests to be clear and strongly documented.
Furthermore, except in extraordinary circumstances,
reprogramming proposals will not be approved by the Committee
45 days prior to the end of the fiscal year, nor will they be
approved if the proposed actions would effectively reverse
previous congressional directives.
The guidelines to be used to determine whether or not a
reprogramming shall be submitted to the Committee for prior
approval during fiscal year 1997 are as follows:
(1) For agencies, departments, or offices receiving
appropriations in excess of $20,000,000, a reprogramming must
be submitted if the amount to be shifted to or from any object
class, budget activity, program line item, or program activity
involved is in excess of $500,000 or 10 percent, whichever is
greater;
(2) For agencies, departments, or offices receiving
appropriations less than $20,000,000, a reprogramming must be
submitted if the amount to be shifted to or from any object
class, budget activity, program line item, or program activity
involved is in excess of $50,000 or 10 percent, whichever is
greater;
(3) For any actions which would result in a major change
contrary to the program or item presented to and approved by
the Committee or the Congress;
(4) For any action where the cumulative effect of past
reprogramming actions added to the new reprogramming would
exceed the dollar threshold mentioned above;
(5) For any actions where funds earmarked for a specific
activity are proposed to be used for another activity; and
(6) For any actions where funds earmarked for a specific
activity are in excess to meet the project or activity
requirement, and are proposed to be used for another activity.
The Committee is concerned that past transfer and
reprogramming authority has been overutilized and often used by
agencies for reorganizations that have major policy
implications. Such transfers and reprogrammings are interpreted
by the Committee as circumventing the appropriations process
and will not be condoned.
TITLE I--DEPARTMENT OF THE TREASURY
Departmental Offices
Salaries and Expenses
Appropriation, fiscal year 1996 to date................. $105,929,000
Budget estimate, fiscal year 1997....................... 120,577,000
Recommended in the bill................................. 108,447,000
Bill compared with:
Appropriation, fiscal year 1996..................... +2,518,000
Budget Estimate, fiscal year 1997................... -12,130,000
MISSION
The Departmental Offices' function in the Treasury
Department is to provide basic support to the Secretary of the
Treasury, who is the chief operating executive of the
Department. The Secretary of the Treasury maintains the primary
role in formulating and managing the domestic and international
tax and financial policies of the Federal Government. The
Secretary's responsibilities funded by the Salaries and
Expenses appropriation include: recommending and implementing
United States domestic and international economic and tax
policy; fiscal policy; governing the fiscal operations of the
Government; maintaining foreign assets control; managing the
public debt; overseeing the law enforcement functions carried
out by the Treasury Department; managing development of
financial policy; representing the United States on
international monetary, trade and investment issues; overseeing
Treasury Department overseas operations; and directing the
administrative operations of the Treasury Department.
recommendation
The funding level provided by the Committee includes a
$654,000 reduction from travel, a $500,000 reduction from OASIA
overhead, and a $250,000 reduction as identified by the
Department for program changes. Within the proposed funding
level, the Committee directs that up to $1,000,000 be used for
a re-engineering study of the Human Resources division to
develop a model to lower costs and improve efficiency; that up
to $790,000 be used to accommodate the cost of relocating
employees while repairs are ongoing at the Main Treasury
Building; and that up to $300,000 be used to develop a plan to
privatize government assets. The Departmental Offices request
of $5,600,000 for an International Trade Data System has been
provided in the Customs Service portion of the Automation
Enhancement appropriation. The request of $2,639,000 for
office-type automation upgrades was increased to $6,500,000 to
cover two years of estimated requirements and funded in the
Automation Enhancement appropriation. The Committee has
included language directing that up to $500,000 shall be used
to carry out Section 528 of this Act.
PRIVATE SECTOR TAX DEBT COLLECTION
The Committee has included a new provision (Sec. 117) which
transfers $13,000,000 from the Internal Revenue Service (IRS)
to Departmental Offices to initiate a second private sector
debt collection program which focuses on tax debt which is
classified by IRS as ``currently not collectible,'' ``available
for collection actions,'' and ``deferred (lower value
accounts).'' The Committee takes this action because of its
disappointment with the current contracting initiative and its
concern that the IRS has not established a viable program which
can be expanded and used in the future.
The Committee notes, that as of September 30, 1995, the
amount of taxes, penalties, and interest in the ``currently not
collectible'' categories of ``defunct/no asset corporations,''
``unable to locate,'' ``unable to contact,'' and ``other,''
totaled $43,400,000,000. The majority of this is not currently
being worked by the IRS because the IRS has determined that the
time and energy necessary to collect this debt it is not cost-
beneficial. Providing resources through contract to address the
$43,400,000,000 is a way of supplementing IRS staffing and
collecting amounts which IRS is not actively pursuing.
The IRS is currently collecting the debt identified as
``available for collection actions,'' which totaled
$36,600,000,000 on September 30, 1995, at the Automated Calling
Sites (ACS) as well as by Revenue Officers. The Committee
believes that the most cost effective manner of collecting this
debt is through the ACS and directs that contracting efforts
for the collection of debt classified as ``available for
collection actions,'' should not be made to the detriment of
ACS staffing and funding levels.
The IRS is not actively collecting debt classified as
``deferred (lower value accounts),'' which totaled
$1,600,000,000 on September 30, 1995. IRS is not actively
collecting this debt because IRS has determined that it is not
cost-beneficial due to the low dollar value of the debt.
Providing resources through contract to address the
$1,600,000,000 is again a way of supplementing IRS staffing and
collecting amounts which IRS is not actively pursuing.
The Committee directs that the Secretary of the Treasury
provide to the Committee within 60 days of enactment of this
Act, a proposal to establish this new contracting initiative.
The proposal should include a timetable for implementing the
contract, performance measures which will be used to compare
IRS cost and performance with private sector cost and
performance. Additionally, the proposal should include an
option for continuing and expanding the initiative if it proves
cost-beneficial.
Intergovernmental Information Technology Enterprise Panel
The Committee strongly supports the efforts of the
Department of the Treasury in the development of
intergovernmental information technology policies and programs.
Therefore, the Committee directs that, within the funds
appropriated for Departmental Offices, not less than $750,000
shall be made available for the Intergovernmental Information
Technology Enterprise Panel.
use of unobligated balances
Section 515 of this Act allows agencies to use up to fifty
percent of the unboligated balances from the previous year for
authorized purposes. The Committee believes that the best use
of these unobligated funds is the acquisition of equipment and
software which improve the productivity of the Department,
which satisfy requirements of the Chief Financial Officers Act,
or support Franchise Fund activities. Funds used in accordance
with Section 515 of this Act, shall be in addition to amounts
provided in the current appropriation.
Fire at main treasury building
The Committee appreciates the work of a large team of
firefighters and others who prevented more serious damage
during a June 26th fire at the historic Main Treasury Building.
However, the Committee recognizes that there was extensive
damage and will work with the Department of the Treasury to
provide needed restoration and reconstruction funds as soon as
possible.
automation enhancements
Appropriation, fiscal year 1996 to date.................................
Budget estimate, fiscal year 1997.......................................
Recommended in the bill................................. $27,100,000
Bill compared with:
Appropriation, fiscal year 1996..................... +27,100,000
Budget estimate, fiscal year 1997................... +27,100,000
recommendation
The Committee has included a total of $27,100,000 for the
development and acquisition of automatic data processing
equipment, software, and services for the Department of the
Treasury. These funds, which are available for two years, may
be transferred to accounts and in amounts as necessary to
satisfy the requirements of the Department's offices, bureaus,
and organizations. When transferred, these funds shall be in
addition to the amounts appropriated in this Act for these
offices, bureaus, and organizations. Furthermore, all
authorities vested in the acquisition of the necessary
services, equipment, and software may transfer to the
Department's offices, bureaus, and other organizations as the
funds are transferred. None of these funds shall be used to
support any Internal Revenue Service systems, including Tax
Systems Modernization.
The funds should be transferred as follows:
Departmental Offices.--$6,500,000 for the economic decision
support system, the automated management of Treasury documents
system, and systems to support the streamlining of
administrative services. The Committee is very pleased that the
request for Departmental Offices automation enhancements was
accompanied by a detailed plan for development and acquisition
which emphasizes purchase of off-the-shelf technology.
Customs Service.--$15,000,000 for the Automated Commercial
Environment (ACE) and $5,600,000 for the International Trade
Data System (ITDS).
Customs Automated Commercial Environment (ACE): A recent
GAO report on the modernization of the Customs Service states
that Customs' efforts to build a new information system: ``are
vulnerable to failure because the agency is not effectively
applying best practices to mitigate the serious risks
associated with such an ambitious systems modernization effort.
For example, contrary to best practices, Customs selected
hardware, software, and telecommunications for ACE and other
systems before it redesigned its key business processes. In
addition, Customs is not applying specific criteria in
assessing projects and analyzing project costs and benefits.
Finally, Customs has not established clear accountability for
ensuring that NCAP requirements are successfully implemented.''
(Customs Service Modernization: Strategic Information
Management Must Be Improved for National Automation Program To
Succeed)
The Committee is concerned that the issues raised by the
GAO report are of the same character as the problems the
Committee has found regarding the Internal Revenue Service's
Tax Systems Modernization (TSM) program. In the case of both
ACE and TSM, the agency has proceeded with system development
before completing a blueprint for the system.
The Committee has included legislative language prohibiting
expenditure of any of these funds without prior approval of the
House and Senate Committees on Appropriations. The Committee
directs the Customs Service to submit a report addressing all
of the concerns outlined in the GAO study. The Committee will
request the General Accounting Office to comment on the Customs
Service is submitted report.
International Trade Data System (ITDS): The Administration
proposed transferring $5,600,000 from the Customs Service to
Departmental Offices for the continuation of work to develop an
international trade data system and to begin operation of a
North American Trade Automation Prototype. The Committee
rejects this proposal because it believes that the Departmental
Offices account is not an appropriate location for information
systems development.
Nevertheless, the Committee recognizes that the ITDS is by
nature an interagency project, with 60 federal agencies
collecting and disseminating data on international trade, and
directs the Customs Service to operate and develop the system
under the direction of an interagency board.
As was the case with the Automated Commercial Environment,
the Committee believes that the Administration should proceed
with this project only after creating an appropriate blueprint
for the new system. The Committee therefore includes language
to prohibit expenditure of these funds without advance approval
of the House and Senate Committees on Appropriations, and
directs the Customs Service and the interagency group to
provide a report and blueprint for approval.
availability of data to congress
The Committee believes that in order to enhance the ability
of the Congress to work with the Executive Branch in providing
budgets, the Treasury Department and the Office of Management
and Budget, should work with the Legislative Branch to make
current budget data available ``online''. It would be
beneficial if the system being developed by the Department to
upgrade its capabilities in the area of tracking overall
government expenditures could provide up to date spending
information to the Congress in an on-line format.
Office of Inspector General and Internal Audit of the Internal Revenue
Service
Salaries and Expenses
Appropriation, fiscal year 1996 to date................. $29,319,000
Budget estimate, fiscal year 1997....................... 30,153,000
Recommended in the bill................................. 135,925,000
Bill compared with:
Appropriation, fiscal year 1996..................... +106,606,000
Budget estimate, fiscal year 1997................... +105,772,000
mission
This appropriation provides agencywide audit and
investigative functions to identify and correct operational and
administrative deficiencies which create conditions for
existing or potential instances of fraud, waste, and
mismanagement. The audit function provides program audit,
contract audit, and financial statement audit services.
Contract audits provide professional advice to agency
contracting officials on accounting and financial matters
relative to negotiation, award, administration, repricing, and
settlement of contracts. Program audits review and evaluate all
facets of agency operations. Financial statement audits assess
whether financial statements fairly present the agency's
financial condition and results of operations, the adequacy of
accounting controls, and compliance with laws and regulations.
The investigative function provides for the detection and
investigation of improper and illegal activities involving
programs, personnel, and operations. This appropriation also
provides for internal investigations made by the office of
Internal Affairs and Inspection in the Bureau of Alcohol,
Tobacco and Firearms, the Customs Service, and the Secret
Service and, internal audits and internal investigations of the
Inspection Service at the Internal Revenue Service.
The Inspectors General Auditor Training Institute provides
the necessary facilities, equipment, and support services for
conducting auditor training for the Federal Government
Inspector General community. Institute personnel develop and
deliver instructional programs related to basic government
audit skills. The cost of training is recovered by tuition
charged to a student's agency.
Office of Inspector General and Internal Audit of the Internal Revenue
Service
The Committee has moved $106,606,000 and 1,300 full-time
equivalents from the Internal Revenue Service (IRS) to a new
account, ``Office of Inspector General and Internal Audit'',
with the intention of strengthening the independence and
autonomy of internal audit and investigations. The internal
audit and investigations functions of the IRS also have an
enhanced reporting structure with director that the chief of
this function report to the Deputy Secretary of the Treasury.
The Committee's recommendation is not intended to suggest a
lack of confidence in the IRS structure. The Committee simply
desires to preserve the inspection service tradition of
constructive advice to management focused on improving IRS
programs and operations through an autonomous and independent
structure.
There have been concerns raised that the Inspector General
(IG), acting as a reviewer of government actions, hinders
agencies in considering innovative ideas and plans for fear
that the IG will later disapprove the action. It would be more
effective if the IG would provide constructive input at an
earlier stage of the process to assist the agency in making
management decisions. The IG at the General Services
Administration (GSA) participated in GSA's FORM analysis at the
initial stages of the process and in doing so helped the agency
develop a better program. The Treasury IG and the IRS Internal
Audit and Investigation organizations should consider this type
of approach to ensure concerns are raised at an earlier point
in the process of management decision making.
Independent Legal Counsel
The Committee remains concerned about the problems which
could arise if the Inspector General does not have legal
counsel which is separate and independent from the Treasury
General Counsel, an issue which was raised by the Committee in
its fiscal year 1996 report. The current situation which
provides the Inspector General's Legal Counsel with a level of
independence does not fully address the Committee's concerns
which were first raised in House Report 104-183. The Committee
believes that the growing responsibilities of the Inspector
General, especially with the transfer of IRS Internal Audit
functions to the Office Inspector General, highlight the need
for a truly independent legal counsel and requests that the
Secretary resolve this long standing issue.
Office of Professional Responsibility
Salaries and Expenses
Appropriation, fiscal year 1996 to date.................................
Budget estimate, fiscal year 1997.......................................
Recommended in the bill (by transfer)................... ($3,000,000)
Bill compared with:
Appropriation, fiscal year 1996..................... (+$3,000,000)
Budget estimate, fiscal year 1997................... (+$3,000,000)
MISSION
This appropriation provides salaries and expenses for the
oversight of internal affairs investigations within Treasury
law enforcement bureaus.
RECOMMENDATION
The Committee is concerned about oversight over Treasury
law enforcement bureaus. While the reports commissioned by the
Under Secretary on the raid on the Branch Davidian compound and
the ``Good O' Boy'' Roundup were of excellent quality and
laudable, they were ad hoc, temporary, and took place only
after a great deal of media exposure. It is possible that there
are other incidents, less followed by the media, that merit the
same level of the scrutiny as Waco and the ``Good O' Boy''
Roundup by the Under Secretary.
The Committee finds that the oversight of the Inspector
General (IG) is not sufficient to address this concern. The IG
does not have authority to require action by Treasury bureaus
on investigations and does not have sufficient criminal
investigators to initiate its own work or review the work of
internal affairs bureaus.
The Committee is furthermore concerned with the differences
in internal affairs procedures used by Treasury and the
Department of Justice, as described by the General Accounting
Office in its report ``Use of Force: ATF Policy, Training and
Review Process Are Comparable to DEA's and FBI's.'' According
to GAO, the Department of Justice often uses the attorneys
within the Criminal Division or the Civil Rights Division to
direct internal investigations of shooting incidents or
allegations of use of excessive force. The Treasury Department
has no counterpart organization to perform this role.
To correct this imbalance and create an acceptable
alternative, the Committee directs the establishment of an
Office of Professional Responsibility (OPR) within the Office
of the Under Secretary for Enforcement. It is the Committee's
intention that OPR will have the authority to undertake, on its
own initiative, investigations such as the ``Good O' Boy''
Roundup; convene panels of outside experts to review
allegations; and provide quality control for all internal
affairs offices. The Committee believes that the staff must be
composed of experienced law enforcement personnel with
extensive investigative experience. The Committee also intends
for OPR to have oversight over all Treasury law enforcement
officers and bureaus, including the Bureau of Alcohol, Tobacco
and Firearms, the U.S. Customs Service, the Internal Revenue
Service, the Secret Service, the Federal Law Enforcement
Training Center, and the Financial Crimes Enforcement Network.
However, this oversight is not intended to interfere with the
Inspector General Act, nor the exemptions granted by this Act
to the Secret Service as they relate to classified and highly
sensitive protection information.
The Committee expects the Under Secretary for Enforcement
to determine the precise authorities and responsibilities of
this office. Before obligating resources for that office, the
Committee directs the Under Secretary to submit a plan
including an organizational chart, staffing levels, position
descriptions and a list of authorities, to the House and Senate
Committees on Appropriations for approval no later than
February 1, 1997.
The Committee establishes this office out of concern that
all law enforcement agencies have adequate and appropriate
oversight. It does not believe that Treasury bureaus require
any more or better oversight than other Federal law enforcement
agencies, or that the vast majority of Treasury law enforcement
agents conform to anything less than the highest standards of
conduct on or off duty.
Treasury Buildings and Annex Repair and Restoration
Appropriation, fiscal year 1996 to date................. $21,491,000
Budget estimate, fiscal year 1997....................... 7,684,000
Recommended in the bill................................. 22,892,000
Bill compared with:
Appropriation, fiscal year 1996..................... -1,299,000
Budget estimate, fiscal year 1997................... +12,508,000
MISSION
This appropriation funds repairs, selected improvements,
and construction necessary to maintain the Main Treasury, the
Treasury Annex, and other Treasury buildings.
recommendation
The Committee has included $6,978,000 for site acquisition
and design of the ATF National Laboratory and Fire
Investigation, Research and Development Center and $8,200,000
for the construction of an educational facility at the Rowley
Secret Service Training Center. Both of these projects are
subject to authorization by the House Committee on
Transportation and Infrastructure.
Financial Crimes Enforcement Network
Salaries and Expenses
Appropriation, fiscal year 1996 to date................. $22,198,000
Budget estimate, fiscal year 1997....................... 23,137,000
Recommended in the bill................................. 22,387,000
Bill compared with:
Appropriation, fiscal year 1996..................... +189,000
Budget estimate, fiscal year 1997................... -750,000
mission
The Financial Crimes Enforcement Network (FinCEN) has
responsibility for implementing Treasury money laundering
regulations through administration of the Bank Secrecy Act, 31
U.S.C. section 5311, et seq., and serves as a United States
Government source for the systematic collation and analysis of
information to assist in the investigation of money laundering
and other financial crimes. FinCEN implements these
responsibilities through analytical and technological platforms
geared to combat money laundering through prevention--using its
regulatory authority in partnership with the financial sector;
detection--combining technology with all-source intelligence to
identify both underlying criminal financial activity as well as
emerging trends and patterns of domestic and international
money laundering; and enforcement--empowering other agencies at
the Federal, State and local, and international levels to take
action against financial criminals through the transfer of
information and expertise.
recommendation
The Committee concurs with the President's request with
three exceptions. The Committee included $1,000,000 requested
by the Administration to combat emerging money laundering
threats in the Violent Crime Trust Fund, rather than the
salaries and expenses account. The Committee denied $50,000 of
the amount requested to maintain current levels, since
legislation increasing agency contributions to employee
retirement accounts did not pass. The Committee provided an
additional $300,000 for two full-time equivalent employees to
provide outreach to Federal law enforcement.
Outreach to Federal Law Enforcement
The Committee is concerned that Federal law enforcement
officers are not taking full advantage of FinCEN's services.
Data shows that certain law enforcement agencies are making
better use of FinCEN's services than others, and that a small
number of law enforcement officers account for a majority of
requests.
The Committee believes that this imbalance can be corrected
through education and outreach, including regular surveys of
field agents to identify their needs and satisfaction with
FinCEN, visits to field offices to identify regional
information requirements and describe services, and expanded
training at all levels in how to use effectively FinCEN's
resources. This will allow Federal agents to become more
familiar with FinCEN's services, and also FinCEN analysts to
become more familiar with the needs of the agencies it serves.
The Committee has therefore provided an additional $300,000 and
2 FTE to be dedicated to outreach efforts.
Reimbursement for Services
The Committee has included legislative language allowing
the Director of FinCEN to accept reimbursement from other
Federal law agencies for extraordinary service on specific
projects, such as assigning FinCEN analysts to work full time
on a particular task force. Provision of such service will be
at the discretion of the Director.
Treasury Forfeiture Fund
(limitation on availability of deposits)
Appropriation, fiscal year 1996 to date................. $10,000,000
Budget estimate, fiscal year 1997....................... 10,000,000
Recommended in the bill................................. 7,500,000
Bill compared with:
Appropriation, fiscal year 1996..................... -2,500,000
Budget estimate, fiscal year 1997................... -2,500,000
mission
P.L. 102-393 authorized the establishment of the Treasury
Forfeiture Fund, replacing the Customs Forfeiture Fund, and
making it available to pay or reimburse certain costs and
expenses related to seizures and forfeitures that occur
pursuant to the Treasury Department's law enforcement
activities. The Coast Guard also participates in the program.
recommendation
The Committee provides legislative language allowing use of
the fund's resources for the law enforcement wireless
communications project.
Federal Wireless Communications Project
Over time, law enforcement and public safety communications
systems have developed separately to serve the needs of
particular entities. When joint operations, natural disasters,
or emergency responses require a coordinated response from
multiple levels of government, communications across divergent
systems operating on different radio frequencies are difficult
to achieve. This Committee is therefore appropriating
$7,500,000 to the Federal Law Enforcement Wireless Users Group
(FLEWUG), an interagency group led by the Departments of
Justice and Treasury to develop a communication system
compatible both among Federal agencies and state and local
entities. The Committee anticipates that an additional
$7,500,000 will be appropriated to the Department of Justice
for the same purpose.
Transfer to Special Forfeiture Fund
The Committee has included legislative language
transferring the $21,922,000 excess surplus balance that had
been transferred to ONDCP pursuant to 31 U.S.C.
Sec. 9703(g)(3)(A) back to the Treasury Forfeiture Fund.
Violent Crime Reduction Programs
Appropriation, fiscal year 1996 to date................. $76,514,000
Budget estimate, fiscal year 1997....................... 97,200,000
Recommended in the bill................................. 97,000,000
Bill compared with:
Appropriation, fiscal year 1996..................... +20,486,000
Budget estimate, fiscal year 1997................... -200,000
mission
Amounts for the Department of the Treasury's portion of
Crime Control Programs are derived from transfers from the
Violent Crime Reduction Trust Fund (VCRTF) as authorized by the
Crime Control and Law Enforcement Act of 1994.
recommendation
The Committee provides an appropriation of $97,000,000 for
Violent Crime Reduction Programs, the full amount of the
Committee's allocation.
U.S. Customs Service.............................. $15,005,000
--------------------------------------------------------
____________________________________________________
Vehicle replacement..................................... 2,000,000
Joint Customs-INS research on integrated port management 1,000,000
Maintenance and operation of Operation Hardline
equipment........................................... 9,000,000
Southwest border equipment replacement and upgrades..... 3,005,000
========================================================
____________________________________________________
U.S. Secret Service............................... 20,200,000
--------------------------------------------------------
____________________________________________________
Counterfeiting.......................................... 5,000,000
Forensic technologies to aid missing and exploited
children investigations............................. 1,600,000
Financial Institution Fraud............................. 3,000,000
TRIP.................................................... 800,000
Child Exploitation Unit................................. 1,400,000
White House Security.................................... 8,400,000
========================================================
____________________________________________________
Office of the Secretary........................... 5,971,000
--------------------------------------------------------
____________________________________________________
Taggant Study........................................... 5,971,000
========================================================
____________________________________________________
Financial Crimes Enforcement Network.............. 1,000,000
--------------------------------------------------------
____________________________________________________
Money laundering threats initiative..................... 1,000,000
========================================================
____________________________________________________
Bureau of Alcohol, Tobacco and Firearms........... 54,824,000
--------------------------------------------------------
____________________________________________________
G.R.E.A.T./grants and contracts with local governments.. 7,200,000
Administration and operation of G.R.E.A.T. Program...... 2,500,000
CEASEFIRE initiative.................................... 3,662,000
Enhance training and purchase replacement equipment..... 41,462,000
national center for missing and exploited children
The Committee is impressed with the work of the National
Center for Missing and Exploited Children (NCMEC) which has, to
date, played a role in the recovery of more than 31,000
children, worked more than 47,000 cases involving missing and
exploited children, handled more than 935,000 telephone calls
through their toll free Hotline, and trained more than 137,000
law enforcement officers nationwide. To date, NCMEC has focused
almost exclusively on missing children.
During the course of the year, the Committee heard
testimony from various law enforcement agencies under its
jurisdiction on cases involving exploited children,
particularly child pornography. The Committee also heard
testimony regarding the potential exploitation of children
through the Internet. The Committee is concerned that efforts
to combat sexual offenses against children have been largely
ignored. To address these concerns, the Committee has included
$1,400,000 in the Crime Bill Trust Fund for enhanced efforts of
the Secret Service to target crimes against children; of this
amount, $400,000 is for two additional full time employees
within the Secret Service to target child exploitation and
pornography; $765,000 is dedicated to the NCMEC to establish an
Exploited Child Unit and $235,000 is provided to support the
training of additional volunteers through NCMEC's project
ALERT. The Committee has included funds to support the
operations of the Exploited Child's Unit for FY 1997, FY 1998
and FY 1999; outyear funding for the unit is included in the
Secret Service's Base appropriation, while start-up funds are
included through the Crime Trust Fund. The Committee assumes
continued funding of $1.6 million through the Secret Service to
enhance the use of forensic technology in the investigation of
missing and exploited children.
The Committee encourages the Secret Service to coordinate
all efforts related to missing and exploited children with the
U.S. Postal Service, the Customs Service, and the General
Services Administration.
CEASEFIRE
The Committee has provided $3,662,000 to continue ATF's
CEASEFIRE program, which is designed to use advanced computer
technology to speed the identification and matching of bullets
and cartridge casings found at crime scenes. The centerpiece of
the CEASEFIRE program is the Integrated Ballistics Imaging
System (IBIS), which saves ballistics examiners time and effort
by comparing hundreds of recovered bullets and cartridge
casings automatically.
The Committee urges ATF to favorably consider the City of
Omaha, Nebraska, the Nebraska State Highway Patrol and other
Nebraska law enforcement agencies as part of this program as
well as Hennepin County, Minnesota and the city of Minneapolis.
border technology research
The Committee provides $1,000,000 for a joint project with
the Immigration and Naturalization Service (INS) to facilitate
trade and enforcement along the U.S.-Mexico border in
California. The Committee finds that both Customs and INS have
been using information technology in a haphazard fashion. This
funding will be used for a pilot project to integrate
information systems and data gathering so as to maximize
enforcement efforts while minimizing delays to commerce and
travel across the border.
Treasury Franchise Fund
The Department of Treasury was chosen as a pilot Franchise
Fund under P.L. 103-356, the Government Management and Reform
Act of 1994. Beginning in 1997, financial and administrative
services included in the Franchise Fund will be financed on a
fee-for-service basis which in the case of the Treasury's Fund,
would be for financial, debt collection, and administrative
services.
Activities that will be included in the Fund are debt
collection, financial training, and accounting cross servicing.
The Fund concept is intended to increase competition for
government and financial administrative services resulting in
lower costs and higher quality.
Federal Law Enforcement Training Center
Salaries and Expenses
Appropriation, fiscal year 1996 to date................. $36,070,000
Budget estimate, fiscal year 1997....................... 50,518,000
Recommended in the bill................................. 51,681,000
Bill compared with:
Appropriation, fiscal year 1996..................... +15,611,000
Budget estimate, fiscal year 1997................... +1,163,000
mission
The Federal Law Enforcement Training Center provides the
necessary facilities, equipment, and support services for
conducting advanced, specialized, and refresher training for
Federal law enforcement personnel. This appropriation is for
operating expenses of the Center, for research in law
enforcement training methods, and curriculum content. In
addition, the Center has a reimbursable program to accommodate
the training requirements of various Federal agencies. As funds
are available, law enforcement training is provided to certain
State and local law enforcement personnel on a space-available
basis.
recommendation
The Committee concurs with the Administration's request
with three exceptions. The Committee denies $206,000 of the
$1,458,000 that had been requested to maintain current levels
because the expected increase to Federal retirement
contributions did not pass into law. The Committee provides
funding in the salaries and expenses account for two
initiatives that the Administration had initially proposed to
be funded through the Violent Crime Reduction Trust Fund:
$355,000 and 2 FTE for new training building support and
$1,014,000 for general training that had been initially
provided in fiscal year 1996.
Acquisition, Construction, Improvements, and Related Expenses
Appropriation, fiscal year 1996 to date................. $9,663,000
Budget estimate, fiscal year 1997....................... 9,884,000
Recommended in the bill................................. 18,884,000
Bill compared with:
Appropriation, fiscal year 1996..................... +9,221,000
Budget estimate, fiscal year 1997................... +9,000,000
mission
This account provides for the acquisition, construction,
improvement, equipment, furnishing and related costs for
expansion and maintenance of facilities of the Federal Law
Enforcement Training Center.
recommendation
The Committee is concerned that the Administration
requested no resources for new construction at Glynco, Georgia
for the second year in a row. The fact that the Immigration and
Naturalization Service created a satellite facility in
Charleston, South Carolina to accommodate a surge in its
training is evidence that master plan construction projects are
absolutely essential. For that reason, the committee provides
an additional $9,000,000 for master plan projects.
Financial Management Service
Salaries and Expenses
Appropriation, fiscal year 1996 to date................. $184,300,000
Budget estimate, fiscal year 1997....................... 200,070,000
Recommended in the bill................................. 191,799,000
Bill compared with:
Appropriation, fiscal year 1996..................... +7,499,000
Budget estimate, fiscal year 1997................... -8,271,000
mission
The Financial Management Service (FMS) is responsible for
improving the quality of Government financial management and
collecting Federal debt. As the Government's central financial
agent, FMS receives and disburses public monies, maintains
Government accounts, and reports on the status of the
Government's finances. FMS is also accountable for developing
and implementing the most reliable and efficient financial
methods and systems to manage and improve the Government's cash
management, credit management, and debt collection programs.
Based on the Debt Collection Improvement Act of 1996, the
FMS became the primary agency for the collecting of Federal
non-tax debt which is due and owed to the government. Through
FMS, there is a coordinated effort to collect debt from those
who have defaulted on agreements with the Federal government.
Budget Justification Material
In addition to its annual appropriation, the Financial
Management Service (FMS) receives income for reimbursable
services performed for Federal agencies and trust funds,
primarily for payment and claims processing, and accounting and
financial operations. In fiscal year 1997, FMS estimates that
income for its reimbursable program will be approximately
$183,000,000. However, income from the reimbursable program is
not reported to Congress because it is not ``part of the
President's request.'' The Committee believes that this type of
information should be included in budget justification
materials submitted to Congress and directs FMS provide
historical tables on its reimbursable programs, including
income broken out by largest volume customers and FTEs, with
the submission of the fiscal year 1998 budget request.
Bureau of Alcohol, Tobacco and Firearms
Salaries and Expenses
Appropriation, fiscal year 1996 to date................. $377,971,000
Budget estimate, fiscal year 1997....................... 406,005,000
Recommended in the bill................................. 389,982,000
Bill compared with:
Appropriation, fiscal year 1996..................... +12,011,000
Budget estimate, fiscal year 1997................... -16,023,000
mission
The Bureau of Alcohol, Tobacco and Firearms is responsible
for the enforcement of laws designed to eliminate certain
illicit activities and to regulate lawful activities relating
to distilled spirits, beer, wine and nonbeverage alcohol
products, tobacco, firearms, and explosives.
church fire investigations
The Bureau of Alcohol, Tobacco and Firearms has
investigated 65 church fires in just 18 months--36 of which
have taken place at predominantly African-American churches.
The largest numbers of arsons have occurred in South Carolina,
North Carolina, Tennessee and Louisiana; but we have incidents
as far north as New York and as far west as Arizona.
Approximately 135 ATF special agents have been assigned to the
active investigations in the Southeast, and ATF has employed
all of its resources, including National Response Teams,
certified fire investigators and accelerant detecting canines
to investigate these crimes. Although a conspiracy was
uncovered involving at least two fires in South Carolina, no
interstate or national conspiracy has yet been uncovered.
The Committee intends to do everything in its power to stop
these crimes, and has therefore provided $12,011,000 in
supplemental appropriations for fiscal year 1996 under Title
VII of this bill and an additional $12,011,000 in fiscal year
1997 appropriations for these investigations. Resources will be
used for overtime, travel, offices, phones, reward money,
equipment, and any other legitimate expenditures directly
associated with church fire investigations. These resources may
also be used to offset the cost of joint Federal, state and
local task forces working on these cases.
atf operations
The Committee is concerned by reports that ATF does not
have sufficient resources to provide proper training and
equipment to its personnel. ATF management estimates that it
should expend about 23 percent of its resources on
``operations''--all of the legitimate expenditures of a law
enforcement agency other than salaries, benefits, rent and
utilities. This includes training, computer equipment,
vehicles, weapons, surveillance equipment, and other materials
and services necessary to conduct investigations, arrests, and
audits. ATF has informed the Committee that it requires about
$122,441 per year to fully equip and train an average full time
employee. Fiscal year 1996 appropriations fall short of this
amount, providing less than $100,000 per employee.
The President's Budget fails to address this issue. In
fiscal year 1996, ATF has 3,918 full-time equivalent employees.
The resources necessary to support this level of employment is
about $480 million--far greater than the Administration's
proposed funding of $406 million.
The Committee will not continue to allow agents or
inspectors to perform their duties without sufficient training
and equipment. To continue to do so would be a recipe for
disaster.
The Committee intends to accomplish its goal of providing
sufficient resources for ATF operations through a two-pronged
approach: selective downsizing and resources targeted for
training and equipment under the Crime Trust Fund.
downsizing atf
In light of ATF's training and equipment needs, the
Committee finds that the current staffing levels of ATF are not
sustainable over the long run given current budgetary
constraints. The Committee therefore assumes that ATF will
reduce staff by about 10 percent--from the 1996 on board level
of 3,918 to 3,473, a staffing cut of 445 full-time equivalent
employees. The Committee understands that ATF hired a large
group of agents between 1972 and 1976, and that many of these
agents are at or near retirement. Encouraging many of the more
experienced agents to take buyouts will allow the agency to
remake itself into a law enforcement organization that is
somewhat smaller, but better trained and better equipped to
operate in the difficult law enforcement environment of today.
The Committee intends that this downsizing be entirely
voluntary. Mandatory reductions force the youngest and
brightest workers out of an agency. The Committee therefore has
included a legislative provision authorizing ATF to offer
separation incentive packages to its employees as well as a
prohibition on any reductions in force. The Committee has
included legislative language requiring ATF to submit a revised
staffing plan before implementing any buyouts.
training initiative
After completion of the proposed downsizing, the Committee
intends that ATF employees be as well trained and equipped as
any law enforcement group in government. The Committee
therefore has included $41,462,000 in the Violent Crime Trust
Fund to upgrade training and to purchase needed equipment for
all ATF employees.
technical assumptions
The Committee concurs with the technical assumptions of the
President's Budget with the following exceptions:
The Committee denies the requested $9,100,000 for follow-on
funding for National Response Teams and other second year
expenses of last year's counter-terrorism initiative. The
Committee assumes gross savings of $25,534,000 as a result of
downsizing, and provides an additional $13,408,000 to cover the
cost of buyouts.
shooting incident review board
The Committee was concerned to learn from the GAO report on
ATF's use of force that its policy in reviewing shooting
incidents differs from the FBI and DEA in one important
respect: DEA and FBI include at least one outside
representative on their shooting incident review panels, while
ATF does not. Although ATF does have a representative from its
General Counsel on its Shooting Incident Review Board (SIRB),
and the ATF General Counsel reports to the overall Treasury
General Counsel, the Committee believes that this does not
provide a sufficiently ``outside'' perspective for the panel.
The Committee therefore directs that ATF add two outside
representatives to its SIRB, to be designated by the
Undersecretary for Enforcement.
Professional Review Board
The Professional Review Board (PRB) is composed of the
following members: the Chief of the Office of Enforcement's
(OE) Enforcement Management staff; the Deputy Assistance
Director of the Office of Science and Information Technology,
the Chief of Laboratory Services of the Office of Science and
Information Technology, the Chief of OE's Alcohol and Tobacco
Programs Division, and the Chief of the Office of Training and
Development. The Committee is concerned that there is not
sufficient representation on the PRB of individuals from
outside of ATF. The Committee therefore directs that ATF add
two law enforcement representatives to its PRB, to be
designated by the Undersecretary for Enforcement.
air program
The Committee concurs with the Administration in
terminating the ATF air program. The Committee has included
bill language that directs that ATF transfer its aircraft to
the U.S. Customs Service, and directs the Customs Service to
assign top priority to ATF requests for air assistance, second
only to its primary mission of drug interdiction.
ballistics imaging systems
The Committee is aware that both ATF and the Federal Bureau
of Investigation have developed ballistics imaging systems and
are subsidizing their purchase for state and local law
enforcement agencies. The Committee is concerned that the
Federal government not provide two such systems to any
particular crime lab, and has included a legislative
prohibition on using appropriated resources to provide
subsidized equipment to state or local authorities who have
already obtained similar equipment through a federal grant or
subsidy.
canine training
ATF has developed the only scientifically-based canine
detection program operated by law enforcement. The ATF-trained
canines are capable of detecting up to 19,000 explosive
compounds in much smaller amounts than any mechanical
instrument available today. ATF's program has been very
successful overseas, with ATF-trained canines already meeting
with success in Cyprus, Greece, Egypt, Israel and Chile.
Unfortunately, law enforcement agencies in the United States
have not benefited from this program. There is only one of
these canines in use in the U.S. today.
The Committee has provided legislative language allowing
ATF to accept reimbursement from state and local agencies for
training explosive and fire accelerant detecting canines and
their handlers.
canine explosion detection pilot program
The Committee is concerned that there exists within the
Federal government multiple canine explosion detection programs
which may be duplicitive and wasteful. Furthermore, the
Committee is concerned that consistent guidelines,
methodologies, protocols, and standards are not available for
these various explosives-detecting canine programs. Therefore,
the Committee directs the Bureau of Alcohol, Tobacco, and
Firearms (ATF) to establish a joint canine explosives detection
pilot program with the Federal Aviation Administration (FAA) at
either Washington National or Dulles International airports or
both in order to foster cooperation, coordination, and
consistency between the two explosives-detecting canine
programs. ATF and FAA shall submit their joint report to the
House and Senate Appropriations Committee.
paperwork reduction
The Committee has learned that ATF operates in a paper and
report-intensive environment that has long since been abandoned
by other law enforcement agencies. The Committee directs ATF to
examine its internal reporting requirements for series 1811
agents, compare them to the requirements of other federal
agencies, and report back to the Committee with a paperwork
reduction plan.
great program
The Committee commends ATF for its outstanding efforts as
part of the GREAT (Gang Resistance Education and Training)
program, which utilizes ATF personnel on a voluntary basis to
work with young people in schools to promote a crime-free and
gang-free environment. The nascent program in El Paso, Texas
has been particularly effective in addressing youth and gang
violence.
laboratory facilities
The Committee has denied the Administration's request for
$62,000,000 and a separate account within ATF for new
laboratory facilities. The Committee has included $6,978,000
for design and site preparation for such a facility in the
Treasury Buildings and Annex Repair and Restoration account.
out of business dealer records
The Committee is concerned that there has been some
confusion with the meaning of the legislative prohibition on
``consolidating or centralizing'' the records of Federal
firearms licensees. The Committee has added a provision which
makes it clear that ATF may retrieve out of business dealer
records by the serial number or model of a firearm, but
specifically prohibits the creation of an out of business
records database in which records may be retrieved by the name
of an individual or any personal identification such as social
security or drivers license number.
voluntary restraint agreement with russia
The Committee understands that on April 4, 1996, the United
States and Russia entered into a Voluntary Restraint Agreement
(VRA) to prevent Russia from exporting certain firearms and
ammunition to the United States. The Committee directs the
Administration to report on the steps it intends to take to
monitor or enforce this agreement, and what, if any, role will
be played by the Bureau of Alcohol, Tobacco and Firearms in
monitoring or enforcement, as well as the legal authority for
such a role. The Committee requests this report no later than
November 1, 1996.
united nations committee on firearms
The Committee understands that the United Nations' Ninth
Congress on the Prevention of Crime and the Treatment of
Offenders in Cairo, Egypt, which took place in May, 1995,
passed a resolution to study four topics: criminal cases,
accidents and suicides in which firearms are involved; illegal
transnational traffic in firearms; national legislation
relevant to firearms regulation; and firearms regulation
initiatives at the regional and interregional level. The intent
of the resolution was to establish a basis for the
consideration of measures to regulate firearms. The study will
be presented to the Commission for the Prevention of Crime and
Treatment of Offenders, which will then make recommendations to
the Economic and Social Council of the United Nations.
The Committee understands that ATF personnel are providing
technical assistance on this project to the United States
delegation. The Committee directs that ATF provide the
Committee with a report on the cost of this project to the
United States; the progress of this study; the expected
recommendations and whether the recommendations conflict with
current U.S. law; and its expected date of completion.
relief from federal firearms disabilities
The Committee has modified a continuing provision
prohibiting the Bureau of Alcohol, Tobacco and Firearms from
acting upon applications for relief from Federal firearms
disabilities. The modification holds that refusal to act upon
such applications shall not be subject to judicial review for
any felon convicted of a violent crime, firearms violation, or
drug related crime.
United States Customs Service
salaries and expenses
Appropriation, fiscal year 1996 to date................. $1,387,153,000
Budget estimate, fiscal year 1997....................... 1,466,170,000
Recommended in the bill................................. 1,489,224,000
Bill compared with:
Appropriation, fiscal year 1996..................... +102,071,000
Appropriation, fiscal year 1997..................... +23,054,000
mission
The United States Customs Service is the Nation's principal
border agency. Its mission is to ensure that all goods entering
and exiting the United States do so in accordance with all
United States laws and regulations. This mission includes
enforcing U.S. laws intended to prevent illegal trade
practices; protecting the American public and environment from
the introduction of prohibited hazardous and noxious products;
assessing and collecting revenue in the form of duties, taxes,
and fees on imported merchandise; regulating the movement of
persons, carriers, merchandise, and commodities between the
United States and other nations, while facilitating the
movement of all legitimate cargo, carriers, travelers, and
mail; interdicting narcotics and other contraband; and
enforcing certain provisions of the export control laws of the
United States.
recommendation
The Committee denies $7,696,000 of the amounts requested to
maintain current operations. This will not be needed because
expected legislative changes in retirement contributions never
materialized.
stopping drugs at the border
During the 1980's, the United States made significant
progress in reducing drug abuse. Over the course of that
decade, illicit drug use fell by more than half--from 25
million users in 1979 to just over 11 million in 1992.
``Casual'' cocaine use fell by nearly 80 percent between 1985
and 1992, while total cocaine use fell 55 percent between 1988
and 1992--from 2.9 to 1.3 million users.
Now, despite many years with some success, we are seeing
dramatic reversals: The number of teenagers using drugs
increased by over 50 percent in two years, from 2.4 million in
1992 to 3.8 million in 1994. Marijuana use by 14 and 15 year
olds increased 200 percent over the same period. One in three
high school seniors smokes marijuana today.
These statistics are significant because research now tells
us that casual drug use among teenagers today leads to hard-
core drug abuse tomorrow. Those who reach age 21 without ever
using drugs almost never try them later in life. 60 percent of
adolescents who use marijuana before age 15 will later use
cocaine. If these trends among our young continue, we will have
an epidemic by the first years of the 21st century.
The Committee believes that, in part, this reversal in the
struggle against drugs can be traced back to 1993, when the
Administration advocated a shift in expenditures from drug
interdiction to strategies targeted to source countries. As a
result of this change in policy, the amount of cocaine and
marijuana seized or turned away by the Customs Service, Coast
Guard and Department of Defense fell by half in three years--
from 435 kilograms per day in 1993 to 205 kilograms per day in
1995. The price of drugs also fell. Between February 1993 and
February 1995, the retail price of a gram of cocaine fell from
$172 to $137. Heroin prices dropped more--from $2,032 to $1,278
per gram over the same period.
The lesson here is that we can never walk away from law
enforcement, or interdiction or prevention programs because the
problem just gets worse as soon as we leave.
This year, the Administration is requesting $65,000,000 for
Operation Hardline, an effort to enhance security along the
Southwest border by adding 657 inspectors, canine officers,
agents and support personnel to the border along with enough
equipment to do their job.
The Committee concurs in this request, and has provided the
entire $65,000,000 in Hardline funding. However, the Committee
believes the President's request does not go far enough. Our
struggle against drugs requires stronger enforcement, not just
in the land between Mexico and the United States, but also in
the sea and the air. Drug smugglers have been turning to the
Virgin Islands, Puerto Rico and Miami to find easier routes
into the U.S., using aircraft and boats to drop shipments off
in Caribbean waters and the Florida coast. We need to rebuild
our aerial surveillance program to address all of these
efforts.
The Committee therefore provides an additional $28,000,000
to fund Operation Gateway, a coordinated effort to reduce air
and marine smuggling throughout the Caribbean. These resources
shall be used for both people and equipment, including the
purchase of 2 light helicopters, C-12 aircraft, 4 new vessels
for Puerto Rico and 3 for the Virgin Islands; as well as
operations and maintenance funds for all of these craft, 10
additional enforcement positions for Puerto Rico, 12 for the
Virgin Islands, facilities to house the new craft and people,
and new equipment to make smuggling more difficult in all ports
of entry.
In addition, the Committee intends to make a down payment
on restoring the Customs air program infrastructure to its
condition in 1992. The Committee has therefore set aside
$28,000,000 to upgrade air program resources. This includes $10
million to refurbish ten excess C-12 aircraft for deployment in
the Caribbean, $8 million for restoration of lost HU-25
aircraft, and $10 million for restoration of aerostats along
the Southwest border and at certain choke points in the
Caribbean. These resources shall be available for obligation
after September 30, 1997.
headquarters staffing reductions
The Customs Service, in its reorganization plan entitled
``People, Processes and Partnerships'' proposed to reduce
headquarters staffing by one third. The Committee concurs that
the major business of the Customs Service is accomplished along
the border and at ports of entry, not at headquarters, and
directs the Customs Service to proceed with these overhead
staffing reductions of about 367 FTE expeditiously. In order to
ensure these staffing reductions occur without undo hardships
for employees, the Committee has included legislative language
allowing Customs to offer buyouts to its headquarters staff,
setting aside $11,058,000 for that purpose. The Committee
assumes gross savings of $20,596,000 from this reduction. This
estimate assumes that these reductions will be complete by the
end of the first quarter, fiscal year 1997.
Reductions to headquarters staff allow the Committee to
fund specific drug interdiction strategies along the border,
including Operation Hardline and Operation Gateway.
automated commercial environment
The Committee is concerned by the results of a recent GAO
report on the modernization of the Customs Service, which
concludes that Customs' efforts: ``are vulnerable to failure
because the agency is not effectively applying best practices
to mitigate the serious risks associated with such an ambitious
systems modernization effort. For example, contrary to best
practices, Customs selected hardware, software, and
telecommunications for ACE and other systems before it
redesigned its key business processes. In addition, Customs is
not applying specific criteria in assessing projects and
analyzing project costs and benefits. Finally, Customs has not
established clear accountability for ensuring that NCAP
requirements are successfully implemented.'' (Customs Service
Modernization: Strategic Information Management Must Be
Improved for National Automation Program To Succeed)
The Committee is concerned that the issues raised by the
GAO report are of the same character as the problems the
Committee has found regarding the Internal Revenue Service's
Tax Systems Modernization (TSM) program. In the case of both
ACE and TSM, the agency has proceeded with system development
before completing a blueprint.
The Committee has including legislative language
prohibiting expenditure of any of these funds without prior
approval of the House and Senate Committees on Appropriations.
The Committee directs the Customs Service to submit a report
addressing all of the concerns outlined in the GAO study. The
Committee will request the General Accounting Office to comment
on the Customs submission.
gate program
The Committee is concerned that implementation of the
General Aviation Telephonic Entry, or ``GATE'' program has been
delayed indefinitely. The GATE program is intended to
facilitate entry of general aviation into the United States,
while still preserving security by maintaining random checks of
incoming private aircraft. The Committee has included
legislative language directing that the Customs Service begin
implementation of this program within 30 days of enactment of
this act.
trade enforcement in asia
The Committee provides $3,005,000 to enhance enforcement of
trade laws in Asia, particularly with regard to violations of
Intellectual Property Right (IPR) agreements and forced labor
statutes. This includes an additional 18 Customs Inspectors, 9
Import Specialists and 3 Operational Analysis specialists in
Los Angeles, San Francisco and Seattle, as well as additional
criminal investigators overseas in Singapore, Hong Kong and
Beijing.
spirit of st. louis airport
The Spirit of St. Louis Airport in St. Louis County,
Missouri is the second busiest airport in the FAA's Central
Region, yet it is the only major airport facility in the region
without 24 hour a day Customs clearance. The lack of Customs
service at the airport hampers the facility's utility in
relieving air traffic at Lambert International Airport,
increases delays for the general traveling public, and poses
significant difficulties for general aviation fleet operators
based at that airport. For that reason, the Committee directs
the Customs Service to designate the Spirit of St. Louis
Airport as an international port of entry.
money laundering activities
While interdicting narcotics at the border may disrupt the
lines of distribution of the major drug cartels, the key to
shutting them down is to disrupt the flow of money. The drug
cartels seem to have an endless supply of narcotics. The
Treasury Department, however, can affect the flow of dollars.
The Committee therefore urges the Customs Service to assign
money laundering investigations a high priority when allocating
the $65 million appropriated for Operation Hardline and the $28
million appropriated for Operation Gateway.
dedicated commuter lane
The Committee is interested in the results of Project
SENTRI (Secure Electronic Network for Travelers' Rapid
Inspection), which began operational tests on November 1, 1995,
at Otay Mesa, California. Under this project, pre-screened
vehicles crossing the international border travel over a
traffic lane dedicated to the exclusive use of the participants
in this project. As these vehicles approach the border, an
automated system electronically inspects the drivers,
passengers, and the vehicles to ensure that they are enrolled
in the project and have met the requirements for entry into the
United States.
The Committee is aware that there is a great need to
facilitate the flow of traffic and trade between the United
States and Mexico, particularly at one of its largest ports of
entry, El Paso, Texas. If the test of Project SENTRI at Otay
Mesa, California meets with success, El Paso would be an
excellent second test site. The Committee directs the Customs
Service to report back with a plan to develop such a test in El
Paso, including an estimate of the cost of such a test; the
construction and equipment such a test would require; any
legislative impediments to initiating this test; and a
timetable for development and implementation. The Committee
should receive this report no later than February 1, 1997.
nafta and textile enforcement
The Administration requested and the Congress approved in
fiscal years 1995 and 1996 $18 million and 186 full-time
equivalent employees for the Customs Service to enforce the
NAFTA and GATT trade agreements, particularly with regard to
textiles and apparel. In fiscal year 1997, the Committee again
provides full funding for this initiative and expects the
Customs Service to use its resources for vigorous NAFTA and
GATT enforcement, particularly with regard to textile and
apparel trade rules.
notification of policy changes
The Customs Service announced on June 14 several changes in
policy and regulation designed to prevent transshipment of
Chinese-made apparel through Hong Kong. These measures were
designed to take effect on June 17. These measures include five
requirements: (1) provide original signatures by factories and
subcontractors on textile declarations; (2) certification by
importers that these declarations are accurate; (3) single
entry bonds for all entries; (4) conditional releases for a
180-day period; (5) all merchandise must be available for
inspection by Customs Service verification teams in Hong Kong.
This change in policy will affect cotton nightwear, cotton
underwear, cotton dresses, cotton and wool skirts, and cotton
and wool men's and boys' suits.
The Committee finds that the timing of this action is
onerous. Importers only received 72 hour official notice--48 of
those occurring over a weekend. Although the Committee fully
supports all efforts to strengthen enforcement of U.S. trade
laws, the Committee finds that it is unreasonable to expect
law-abiding importers to implement major policy and procedural
changes with so little advance notice. The Committee has
therefore added a provision to the Customs Service
appropriation requiring that it provide at least 30 days notice
for any similar changes in regulations or policies.
child pornography
The Committee is concerned that it took seven months after
enactment of the 1996 appropriations bill for the Customs
Service to make available $50,000 from available funds for the
Child Pornography Tipline, as directed by Senate Report 104-
121. The Committee repeats its direction to provide $50,000
from available funds to promote public awareness of the Child
Pornography Tipline and directs the Service to coordinate its
efforts with the National Center for Missing and Exploited
Children, the U.S. Postal Service, the U.S. Secret Service and
the General Services Administration.
AIR AND MARINE INTERDICTION PROCUREMENT
Appropriation, fiscal year 1995 to date.................................
Budget Estimate, fiscal year 1996.......................................
Recommended in the bill................................. $28,000,000
Bill compared with:
Appropriation, fiscal year 1995..................... +28,000,000
Budget estimate, fiscal year 1996................... +28,000,000
MISSION
The account has been established to procure air and marine
vessles for the Customs air and marine interdiction program,
which combats the illegal entry of narcotics and other goods
into the United States.
RECOMMENDATION
The $28,000,000 appropriation shall be available for the
following purposes: $10 million for refurbishing ten excess C-
12 aircraft for deployment in the Caribbean in support of long-
term transit zone interdiction; $8 million for restoration of
Falcon interceptor HU-25 aircraft, and 10 million for the
restoration of aerostats along the Southwest and Southeast
borders.
operation and maintenance, air & marine interdiction programs
Appropriation, fiscal year 1996 to date................. $64,843,000
Budget estimate, fiscal year 1997....................... 83,363,000
Recommended in the bill................................. 83,363,000
Bill compared with:
Appropriation, fiscal year 1996..................... +18,520,000
Budget estimate, fiscal year 1997...................................
mission
The Customs Air and Marine Interdiction Program combats the
illegal entry of narcotics and other goods into the United
States. This appropriation provides all operations and
maintenance for the Customs air and marine program and support
for the interdiction of narcotics by other Federal, State and
local agencies.
atf air program
The Committee has terminated the ATF air program and
directs ATF to transfer its remaining aircraft to the U.S.
Customs Service. The Committee directs the Customs Service to
assign top priority to ATF requests for air assistance, second
only to the primary mission of drug interdiction. It is the
intention of the Committee that such services be provided
without reimbursement.
customs services at small airports
(to be derived from fees collected)
Appropriation, fiscal year 1996 to date................. $1,406,000
Budget estimate, fiscal year 1997....................... 2,406,000
Recommended in the bill................................. 2,406,000
Bill compared with:
Appropriation, fiscal year 1996..................... +1,000,000
Budget estimate, fiscal year 1997...................................
mission
Customs charges user fees at certain small airports where
the volume or value of business is insufficient to justify the
availability of Customs services. The funds generated from
these user fees are applied to expenditures incurred in
providing Customs services at each of these designated small
airports.
recommendation
The Committee provides such sums as may be necessary for
all expenditures covered by user fees at small airports.
harbor maintenance fee collection
Appropriation, fiscal year 1996 to date................. $3,000,000
Budget estimate, fiscal year 1997....................... 3,000,000
Recommended in the bill................................. 3,000,000
Bill compared with:
Appropriation, fiscal year 1996.....................................
Budget estimate, fiscal year 1997...................................
mission
The Harbor Maintenance Fee is established to provide
resources to the Army Corps of Engineers for the improvement of
American channels and harbors. It is assessed on the value of
commercial imports and exports delivered to or from certain
specified ports. The fee is collected by the U.S. Customs
Service and deposited into the Harbor Maintenance Trust Fund.
In fiscal year 1997, $3,000,000 will be transferred from the
Harbor Maintenance Trust Fund to the Customs Service Salaries
and Expenses appropriation to offset costs incurred by Customs
in collecting Harbor Maintenance Fees.
Bureau of Engraving and Printing
Currency Production..................................... $428,400,000
Estimated currency produced......................... 10.2 billion
Postage Stamp Production................................ $78,600,000
Estimated stamps produced........................... 25.0 billion
Securities, Commissions, certificates, other............ $5,000,000
Estimated number.................................... 54.0 million
mission
The Bureau of Engraving and Printing, a non-appropriated
fund account, designs, manufactures, and supplies Federal
Reserve notes, various public debt instruments, as well as most
evidences of a financial character issued by the United States,
such as postage and internal revenue stamps. The Bureau
executes certain printings for various territories administered
by the United States, particularly postage and revenue stamps.
The operations of the Bureau are financed by means of a
revolving fund established in accordance with the provisions of
Public Law 656, August 4, 1950 (31 U.S.C. 181), which requires
the Bureau to be reimbursed by customer agencies for all costs
of manufacturing products and services performed. The Bureau is
also authorized to assess amounts to acquire capital equipment
and provide for working capital needs. The anticipated work
volume is based on estimates of requirements submitted by
agencies served.
Strategic Plan
The Strategic Business Plan for 1996 which was submitted by
the BEP, while a fair overview of what the BEP should strive to
accomplish, does not contain a basis to measure performance.
The BEP, similar to the U.S. Mint, is an organization which
easily lends itself to performance measurement.
The Committee had hoped to address the possibility of
moving the BEP into a Performance Based Organization, but does
not believe the Strategic Plan offers a solid basis for
measuring performance which is necessary for a successful
Performance Based Organization. It is unfortunate that the BEP
cannot move as quickly as the U.S. Mint to embrace strong
performance measurement standards. The Committee directs the
BEP to submit, with the 1998 President's budget request, a
report which details performance measurement standards which
will be used by the BEP to justify its operating costs and
staffing allocations.
Re-Design of the $1 Bill
To combat international counterfeiting threats to the
United States, the Department of Treasury is redesigning
Federal Reserve Notes. On March 26, the first of the newly
designed $100 Federal Reserve Notes were placed into
circulation. The remainder of the Federal Reserve Notes will be
redesigned and are expected be begin circulating soon.
Replacing the estimated 6.1 billion circulating $1 Federal
Reserve Notes with newly designed notes containing special
anti-counterfeiting properties may well be cost prohibitive.
Furthermore, efforts have been initiated to replace the $1
Federal Reserve Note with a $1 coin which, if successful, would
render the $1 Federal Reserve Note obsolete. It would not be
prudent to pursue expensive anti-counterfeiting measures for
the $1 Federal Reserve Note when issues surrounding the
introduction of a $1 coin have not yet been resolved.
Therefore, the Committee directs the Department of Treasury
and the Bureau of Engraving and Printing not to pursue the
redesign of the $1 Federal Reserve Note at this time.
procurement regulations
The Committee has inserted a new provision (Sec. 526) which
authorizes the waiver of laws governing procurement or public
contracts for BEP programs and activities. This exemption which
terminates after three years will allow the BEP to react more
readily to its customers' ever changing needs by utilizing the
best business practices of the commercial marketplace. The
exemption would also provide the BEP with the flexibility to
rapidly procure state-of-the-art technology necessary to
respond to requirements for security and counterfeit deterrent
features for the Nation's currency.
The BEP shall develop internal controls which will continue
to protect the interest of the government. The Inspector
General shall assist in developing these controls, which should
not be onerous, but adequate to satisfy all concerned parties.
Web Press
The Committee is concerned that the Bureau of Engraving and
Printing (BEP) has not followed through on Congressional
direction contained in the House report which accompanies
Public Law 104-52 concerning development of the Web Press.
On December 1, 1995, the BEP sent a letter to the Committee
requesting additional time to review the Web Press development,
stating that after this review it would inform the Committee of
its plan with respect to the future of the Web Press.
Additionally, the letter stated that the Committee would
receive periodic updates on this project and a promise that the
use of the press would be discontinued if not fully operational
by April 1996. The Committee accepted the delay in implementing
the Congressional direction so that the new Director of the BEP
would have adequate time to perform his review.
In response to questions submitted by the Committee, the
BEP indicated that the Department of Treasury is reviewing its
options with regard to the Web Press. The Committee repeats its
direction that BEP immediately suspend development and
implementation of the Web Press. Furthermore, the Committee
directs the BEP to submit a report by December 1, 1996 which
details plans for the use of the space which will be vacated
with the removal of the Web Press.
United States Mint
U.S. Mint
Circulating Coinage 1997................................ $995,160,000
Estimated number of coins........................... 20.3 billion
Numismatic and Investment Products...................... $274,727,000
Estimated number of coins........................... 10.0 billion
mission
The United States Mint manufactures coins, receives
deposits of gold and silver bullion, and safeguards the
Government's holdings of monetary metals.
In fiscal year 1996, Congress established the United States
Mint Public Enterprise Fund which authorizes the U.S. Mint to
use proceeds from the sale of coins to finance the cost of its
operations. This has eliminated the need for future
appropriations to support the mission of the U.S. Mint.
Reports Submitted to Committee
The Committee is very pleased with the format of the
information submitted with the 1997 President's budget as well
as the first quarter reports on the operations of the
Enterprise Fund and the U.S. Mint's Strategic Plan. The
Committee directs the Director of the U.S. Mint continue to
provide this information to the Committee.
Sale of Gold and Platinum Coins
The Committee has included two provisions (Sec. 523 and
Sec. 524) which allow the Secretary of the Treasury to expand
the sale of gold bullion and platinum coins for the Numismatic
Coin program. These provisions will allow the U.S. Mint, in
addition to its American Eagle gold bullion coins (.9167 fine),
to mint .9999 gold bullion coins and platinum bullion coins.
Recent market studies identify growing markets for gold and
platinum bullion products. The studies, however, reveal a
strong preference in these markets for ``pure'' gold (24 karat)
bullion coins. Sec. 523 will allow the U.S. Mint to enter this
market in addition to its command of the 22 karat market. Sec.
524 will allow the U.S. Mint to enter the platinum coin market.
Receipts from the sales of these additional programs is
estimated at $21,100,000 in 1997 and $88,900,000 over five
years and will be deposited into the General Fund of the
Treasury for deficit reduction.
improved personnel management demonstration project
The Committee has included a provision (Sec. 527) which
authorizes the U.S. Mint to establish a demonstration project
to test changes in personnel management policies and procedures
which would result in improved Federal personnel management
under the authorities of Chapter 47 of title 5, United States
Code. The Committee had hoped to provide greater authorities to
allow the establishment of a Performance Based Organization
(PBO) for the U.S. Mint, but the inclusion of such legislation
was not feasible at this time. However, the Committee believes
that within the authorities granted by title 5, the U.S. Mint
should be able to begin the process of changing personnel
management policies and procedures so that overall U.S. Mint
operations could become a performance-based organization.
The Director of the U.S. Mint should keep the Committee
appraised of the actions taken to implement this provision.
This should be done with an initial report on what actions will
be taken to implement this provision and quarterly reports
thereafter on the organization's performance under this
provision.
The Committee recognizes that this is a bold new concept
which will require significant input and possible revision on
the part of the Department of Treasury and the U.S. Mint. The
Department and the U.S. Mint should continue to work with the
Committee to establish valid measures and plans for
implementation.
Bureau of the Public Debt
administering the public debt
Appropriation, fiscal year 1996 to date................. $170,000,000
Budget estimate, fiscal year 1997....................... 171,910,000
Recommended in the bill................................. 165,335,000
Bill compared with:
Appropriation, fiscal year 1996..................... -4,665,000
Budget estimate, fiscal year 1997................... -6,575,000
mission
This appropriation provides funds for the conduct of all
public debt operations and the promotion of the sale of U.S.
savings-type securities.
recommendation
The Bureau of Public Debt (BPD) currently estimates a
fiscal year 1997 requirement for 1,825 full-time equivalent
(FTE) positions. However, the President's 1997 budget
originally requested 1,875 FTEs for the BPD. The result is that
the 1997 budget is overestimated by $2,280,000 and 50 FTEs. The
Committee has reduced the BPD budget to reflect the most recent
estimates of requirements for the upcoming fiscal year.
unobligated balances
Since fiscal year 1992, the Bureau of Public Debt (BPD) has
consistently overstated its annual budget requirements and has
ended each year with a substantial amount of unobligated one-
year funds. From fiscal year 1992 through 1995, this
overstating of budget requirements totaled nearly $22,000,000
in one-year funds. The Committee is concerned that such
budgeting practices appear to allow the Department to ``park''
funds at the BPD for use by other organizations at a later
point in time. This is not acceptable because it does not allow
the Committee full view of the agency's true requirements. The
Committee directs the Department of Treasury's Office of Budget
to ensure that this practice is not continued and that future
requests for BPD accurately represent the agency's
requirements.
Internal Revenue Service
The Committee has provided a total of $6,571,968,000 for
the Internal Revenue Service (IRS) for taxpayer assistance,
processing of tax returns, collection activities, tax fraud and
financial investigations, compliance activities, ADP support of
operations, tax systems modernization, and overall management
of the organization. This is a 10.5 percent reduction from 1996
levels and 17.8 percent below the President's request.
The IRS has been directed by Congress to enforce some of
the most unpopular laws of the United States and the Committee
acknowledges that this is a difficult task. However, the
Committee believes that, within the funds provided, the IRS
should be able to accomplish its mission. The funding level
provided, when compared to other activities financed by tax
dollars, appears adequate for IRS' mission. The Committee
notes, for example, that in 1997, the U.S. Army, with
$6,320,026,000, will procure its required aircraft, missiles,
ammunition, and tanks; not to mention the hundreds of other
miscellaneous items it needs such as tents, radios, and
parachutes. Additionally, the U.S. Marine Corps, with
$6,102,108,000, will pay its 174,000 active duty members who
are sent to some the most dangerous regions on earth to protect
American interests. When taken in this context, the Committee
is certain that the IRS will also consider the amount
appropriated adequate for its mission.
processing, assistance, and management
Appropriation, fiscal year 1996 to date................. $1,723,764,000
Budget estimate, fiscal year 1997....................... 1,779,663,000
Recommended in the bill................................. 1,616,379,000
Bill compared with:
Appropriation, fiscal year 1996..................... -107,385,000
Budget estimate, fiscal year 1997................... -163,284,000
mission
This appropriation provides for processing tax returns and
related documents, processing data for compiling statistics of
income, assisting taxpayers in correct filing of their returns
and in paying taxes that are due overall planning, and
direction of the Internal Revenue Service, and management of
financial resources and procurement.
recommendation
The Committee recommends reducing the following accounts to
the 1994 funding levels: travel a reduction of $396,000 and
resource management a reduction of $21,414,000. Additionally,
the Committee accepted the recommendation by IRS to reduce this
account by $17,104,000 in compliance with Executive Order
12837. The breakout by activity is as follows: taxpayer
services $482,049,000, returns processing $829,666,000,
resource management $198,215,000, and management services
$106,449,000. As discussed below, the Committee also reduced
this account by $106,606,000 for the Inspection functions.
opportunities for outsourcing returns processing
The Committee believes that outsourcing some of the work
associated with returns may be efficient, including such
activities as sorting mail, data entry, and check processing.
The Committee directs the Commissioner to study the potential
costs and benefits and provide a report no later than December
31, 1996, describing the potential for efficiencies through
outsourcing certain returns processing activities.
school bus services
Many school districts procure bus service from individuals
who own their own busses and run their own small businesses.
The IRS has recently determined that these individuals should
be considered employees of the school system, not contractors.
This is a tremendous burden for the affected school districts
that must pay back payroll taxes for individuals which were
originally hired as contractors.
The IRS should work with the appropriate Congressional
committees to ensure that this situation is resolved and relief
is granted to the affected school districts.
taxpayer services
In Public Law 104-134, the Omnibus Consolidated Rescissions
and Appropriations Act of 1996, Congress included a provision
directing the IRS to restore taxpayer services to the 1995
levels. This action was prompted by the IRS decision to
drastically reduce the hours of operation at walk-in taxpayer
service centers during 1996. This IRS decision appeared ill
advised, especially during tax season, and caused serious
problems for many taxpayers who needed assistance from the IRS.
The Committee has included the provision once again and
requires the IRS reinstate taxpayer services to 1995 levels.
holtsville, new york irs service center
The Committee is concerned about the progress being made on
the proposed renovation of the IRS Service Center in
Holtsville, New York into a regional customer service center.
Due to the inability of the IRS to finalize its plan for the
renovation, the project is at least two years behind schedule.
Therefore, the Committee requests that the IRS provide a
detailed report to the Committee, within 90 days of enactment,
its plans to establish the regional customer service center in
Holtsville, New York.
tax policy
The Committee is concerned that the IRS too often involves
itself in the development of tax policy issues rather than
concentrating on how to administer current tax law. The
Committee believes that IRS should perform administrative and
operational functions as they relate to tax policy and should
not be involved with developing tax policy. The Department of
Treasury currently has in place an organizational structure
with responsibility for developing and producing tax policy and
therefore IRS' actions with regard to developing tax policy
appear duplicative.
tax law enforcement
Appropriation, fiscal year 1996 to date................. $4,097,294,000
Budget estimate, fiscal year 1997....................... 4,527,821,000
Recommended in the bill................................. 4,052,586,000
Bill compared with:
Appropriation, fiscal year 1996..................... -44,708,000
Budget estimate, fiscal year 1997................... -475,235,000
mission
This appropriation provides for the examination of tax
returns, both domestic and international, and the
administrative and judicial settlement of taxpayer appeals of
examination findings. It also provides for technical rulings,
monitoring employee pension plans, determining qualifications
of organizations seeking tax-exempt status, examining tax
returns of exempt organizations, enforcing statutes relating to
detection and investigation of criminal violations of the
internal revenue laws, collecting unpaid accounts, compiling
statistics of income and compliance research, and securing
unfiled tax returns and payments.
recommendation
The Committee recommends reducing the following accounts to
the 1994 funding levels: travel by $8,727,000; resource
management by $50,807,000; and compliance research by
$7,842,000. Additionally, the Committee accepted the
recommendation by IRS to reduce this account by $18,821,000 in
compliance with Executive Order 12837 and $3,096,000 to reflect
a 1996 reprogramming action. As discussed below, the Committee
did not provide the total Administration request of
$359,000,000 for the Revenue Protection Initiative and
therefore did not assume the $67,500,000 in savings associated
with full implementation.
compliance initiative
The Administration requested $359,000,000 for the Revenue
Protection Initiative which is also known as the Compliance
Initiative. The Compliance Initiative was started in fiscal
year 1995 as a 5-year, $2,000,000,000 program to increase the
amount of taxes collected. In fiscal year 1996, the Committee
did not have adequate resources to fund the second year of this
5-year program. The Committee regrets that, once again, it
simply does not have adequate resources to re-start this
program at the level requested.
compliance research
The Committee is concerned that the IRS is pursuing
``lifestyle'' audits of taxpayers that appear to go beyond the
traditional audit approach. In a lifestyle audit, the IRS not
only inquires as to the legitimacy of tax deduction claims by
the taxpayer, it also questions the ability of the taxpayer to
support what the IRS auditor perceives is the taxpayer's
lifestyle. Such questions appear inappropriate as part of an
IRS audit and the IRS should suspend such questioning as a
matter of course.
Additionally, the Committee has eliminated the
appropriation language request of $1,000,000 for Compliance
Research.
Criminal Investigative Division (CID)
The Committee believes that the work performed by the CID,
especially in the area of motor fuel excise tax evasion and
bankruptcy fraud, to be some of the most important law
enforcement efforts within the Department of the Treasury. It
is the Committee's desire to protect the investment which has
been made in these efforts by setting a ``floor'' on the CID
funding and staffing levels. Therefore, within the amounts
appropriated, the Committee directs that the funding level for
the Criminal Investigative Division (CID) be no less than
$437,778,000, an increase of $27,462,000 over the 1997 request.
Any reduction to this level requires prior approval from the
House Appropriations Committee.
irs performance measures
The Committee is very concerned that the IRS has not yet
developed adequate performance measures to analyze its cost and
performance. Since fiscal year 1995, the Committee has been
urging the Department of the Treasury to implement performance
measures as a way to justify budget requests. Additionally, the
Government and Performance Results Act (GPRA) requires agencies
develop a strategic plan and methods for measuring performance
against the plan. The IRS has not provided a strategic plan or
adequate performance measures which can be used to measure cost
and performance. The Committee directs that a strategic plan
and detailed performance measures be submitted with the fiscal
year 1998 budget request. This request is consistent with the
requirements contained in the GPRA.
information systems
Appropriation, fiscal year 1996 to date................. $1,527,154,000
Budget estimate, fiscal year 1997....................... 1,687,674,000
Recommended in the bill................................. 1,077,450,000
Bill compared with:
Appropriation, fiscal year 1996..................... -449,704,000
Budget estimate, fiscal year 1997................... -610,224,000
mission
This appropriation provides for servicewide data processing
support, including the evaluation, development, and
implementation of computer systems, software, and hardware
requirements. This appropriation also includes funds for Tax
Systems Modernization.
tax systems modernization
The Committee has provided a total of $424,500,000 in new
funds for the Tax Systems Modernization (TSM) project,
$270,500,000 less than was provided in 1996 and $250,500,000
less than the Department of Treasury's revised request.
Additionally, the Committee has rescinded $174,447,000 from
funds appropriated in prior years. To offset the fiscal year
1996 supplemental for ATF's Church Fire investigations, the
Committee further rescinds $12,011,000 from unobligated fiscal
year 1996 funds (included under Title VII).
The Committee has included language ``fencing'' the entire
amount appropriated for TSM until the Internal Revenue Service
(IRS) establishes a restructured contractual relationship with
the commercial sector. If the IRS determines that such
restructuring should include the development of a new contract,
the Committee has included language directing the transfer of
necessary TSM funds to the Department of Defense for this
activity. It is the Committee's position that the Department of
Defense will conduct all activities associated with the
development of a request for proposal (RFP), conducting a
bidder's conference, evaluation of responses to the RFP, and
contract award. The Committee also directs the Associate
Commissioner of the IRS for Modernization, to assist the
Department of Defense by providing data, information, and
general oversight on behalf of the IRS.
The Committee has included language limiting the number of
IRS employees in support of TSM to 150 FTEs, a reduction of
2,016 FTEs, from the 1996 estimated levels. The Committee
further limits the total size of the Government Procurement
Management Office to 50 individuals.
management of tsm program
In fiscal year 1996, Congress provided $695,000,000 for
TSM, ``fencing'' $100,000,000 until the Department of Treasury
submitted a report which addressed project priorities, a plan
to mitigate the deficiencies identified by the General
Accounting Office (GAO), a milestone schedule for development
and implementation of TSM, and a plan to expand the utilization
of external expertise for systems development and total program
management. On May 6, 1996, the Department of Treasury and the
Internal Revenue Service submitted a well written report which
did address, at least in part, the Committee's request.
However, the report, entitled, ``Report to the House and Senate
Appropriations Committees, Progress Report on IRS's Management
and Implementation of Tax Systems Modernization,'' did not
fully address all of the Committee's concerns. Specifically,
IRS continues to operate TSM without a complete systems
architecture in place, has not committed to a specific date at
which time this architecture will be in place, and continues
many modernization efforts in-house despite compelling evidence
that these efforts are better suited for outsourcing.
In response to how IRS would implement corrections to GAO-
identified deficiencies, the Committee found that Treasury's
May 6 report simply identified plans which IRS is the process
of developing and organizations the IRS is in the process of
creating. Unfortunately, there is only modest evidence that
concrete actions for improvement have been taken. Additionally
the Committee believes these plans identified by IRS will
require a tremendous amount of attention and follow-through,
something which is a systemic and fundamental problem at the
IRS. Given past performance, the Committee is not confident
that IRS will complete the plans identified in the report and
then implement necessary changes in the process used to manage
and develop TSM.
As required by the report which accompanied the Treasury,
Postal Service, and General Government Appropriations Act,
1996, the GAO reviewed the May 6, 1996, Treasury Department
report to determine if IRS had corrected the deficiencies
identified by GAO's April 1995 report to Congress. On June 7,
1996, GAO provided the Committee with its assessment and
acknowledged IRS is moving in the right direction. However, the
GAO also states:
``* * * the IRS still does not have (1) effective
strategic information management practices needed to
manage TSM as an investment, (2) mature and disciplined
software development processes needed to assure that
systems built will perform as intended, (3) a completed
systems architecture that is detailed enough to guide
and control systems development, and (4) a schedule for
accomplishing any of the above * * *''
This assessment is very concerning to the Committee. It
appears that, while there is much movement at IRS, there is no
discernible forward progress. There is action--creating of
organizations, titles, and plans for improvement--but it is
unclear whether this action will ever culminate in an IRS that
has improved processes for effectively managing TSM development
and implementation.
The Committee believes that the major problem with the
plans IRS is developing is that they are an attempt to put a
new management design, focused on a single point of control and
accountability, on top of an old management structure which
does not readily accept change and promotes consensus decision
making, not centralized control and accountability. The
Committee is not confident that these plans will come to
fruition given that the current IRS culture is clearly in
conflict with a modernized, integrated, and efficient
organization.
As the Committee has pursued aggressive oversight over TSM,
it has found that the TSM program has not been provided
sufficient management support because it is perceived by many
within IRS as a threat to their independence and autonomy.
Traditionally, IRS is an organization which disperses authority
and responsibility to all of the various factions within the
organization. The Committee believes that TSM, with its use of
modern technology to provide integrated data management, is in
conflict with IRS' management style and therefore, is not
accepted. Furthermore, the efficiencies which will be produced
by TSM may ultimately lead to staffing reductions; reductions
which are not perceived as beneficial to IRS as an
organization.
The Committee believes that only by fully implementing the
recommendations of the GAO, as identified in its April 1995
report, will the IRS ever gain control of this multi-billion
dollar development program. The IRS must implement the GAO
recommendations before the Committee will consider IRS actions
in compliance with Congressional direction. The Committee
stands willing to assist the IRS as it seeks to improve its
operations with the full implementation of TSM, but it is not
willing to put any more money into TSM until drastic and
measurable action is taken by the IRS. The Committee believes
that drastic action includes ``outsourcing'' TSM development,
integration, testing, and implementation of the program. Within
the amount appropriated for TSM, the Committee has provided
$50,000,000 for the IRS to initiate a restructured contractual
relationship with a private sector company to accomplish this
outsourcing objective. The Committee believes the private
sector company should be responsible for all activities
associated with delivering a system which meets IRS
requirements, including the design of a systems architecture,
and technical system requirements.
There are many dedicated individuals within the IRS who are
determined to see TSM succeed. The Committee believes that what
has been lacking is the institutional will necessary to put
aside factionalism and unite behind a workable strategy for
TSM. It is imperative that the factions within the IRS
structure turn over authority and responsibility to the
Associate Commissioner of IRS for Modernization and the new
program management structure. Absent this action, the Committee
believes TSM will fail.
The Committee also believes that only through strong
management of all information systems development activities,
will the IRS ever gain control of its modernization program. A
single person accountable to the Commissioner for all systems
development activities will ensure that the systems will
support IRS in the future. Therefore, the Committee agrees with
the GAO in recommending that the Commissioner of IRS give the
Associate Commissioner of IRS for Modernization, management and
control responsibility for all systems development activities,
including those of IRS' research and development division. All
systems, both TSM and non-TSM, must undergo review for approval
by the Investment Review Board and be prioritized based on
explicit decision criteria which measure the cost-benefit of
the development effort. With regards to TSM, the Associate
Commissioner of IRS for Modernization, through the new IRS
program management structure, should be responsible for
developing functional requirements, managing the restructured
contractual relationship, budgetary issues, and acceptance
testing. Furthermore, the Associate Commissioner should be
responsible for implementing necessary changes to current
legacy systems. These actions must be completed within 30 days
of enactment of this Act and the Commissioner of IRS should
send notification to the Committee that this action has been
completed.
The Committee believes that the new management structure
which enhances technology and contract management efforts
through the Chief Information Officer (CIO) will not be changed
and will supplement the overall efforts of managing TSM and
other technology improvement efforts.
Another continuing problem with the TSM program is that its
definition continually changes, with projects flowing in and
out of ``TSM'' depending on the overall funding level. If
funding is high, a majority of projects are considered part of
TSM. If money is cut, fewer projects are considered TSM.
Therefore, the Committee directs that the definition of TSM be
considered the program and projects identified in the May 6,
1996 Treasury Department report. If any program or project is
added to or deleted from the projects identified in the May
1996 report, the Department of Treasury must notify the
Committees on Appropriations of the House and Senate of the
change. The notification must include a justification for
adding or deleting the program or project, an analysis of the
impact on budgetary and staffing levels and, if a project is
being added, a certification that the program or project is
identified and included in the approved systems architecture.
Furthermore, no funds outside of the $424,500,000 which has
been identified for TSM may be used to support TSM programs or
projects. Funds available for other information systems
requirements shall not be used to support TSM without prior
approval from the Committee on Appropriations of the House and
Senate.
effective management organization
The Treasury Department has established a Modernization
Management Board to review IRS's plans, decisions, and
progress. The Committee is very pleased with the establishment
of this Board and believes, if structured correctly and
provided with authority to enforce its recommendations, this
``TSM control board'' will be effective. The Board should
obtain assistance from the Department of Defense Software
Managers Network which has experience in Federal large-scale
systems development and from the Defense Acquisition University
which can provide technical assistance in the area of program
management. The Board should be responsible for providing
expert independent assessment of progress and assist in the
restructuring, integrating, and improving of TSM planning and
budgeting.
non-tsm systems development
The Committee believes that within the funds appropriated,
the IRS will be able to fully fund current operations for the
Legacy system for which the IRS requested $670,169,000. The
Committee has not reduced funding for the Legacy system.
administrative provisions--internal revenue service
Section 101. The Committee has included a provision which
allows the transfer of funds between Internal Revenue Service
appropriations. The transfer is limited to 5 percent of the
appropriation and is subject to prior Congressional approval.
Section 102. The Committee has included a provision which
requires the Internal Revenue Service maintain a training
program in taxpayers' rights, dealing courteously with the
taxpayers, and cross cultural relations.
Section 103. The Committee has included a new provision
which requires the Internal Revenue Service maintain taxpayer
services at not less that 1995 levels.
Section 104. The Committee has included a new provision
which requires the Internal Revenue Service receive prior
approval before it can obligate funds for separation agreements
in accordance with section 525 of this Act. Section 525 allows
for voluntary separation of employees under certain
circumstances. The IRS must submit, for Congressional approval,
a management plan for the use of this authority.
United States Secret Service
Salaries and Expenses
Appropriation, fiscal year 1996 to date................. $531,944,000
Budget estimate, fiscal year 1997....................... 516,182,000
Recommended in the bill................................. 528,368,000
Bill compared with:
Appropriation, fiscal year 1996..................... -3,578,000
Budget estimate, fiscal year 1997................... +12,186,000
mission
The Secret Service is responsible for the security of the
President, the Vice President and other dignitaries and
designated individuals; for enforcement of laws relating to
obligations and securities of the United States and financial
crimes such as financial institution fraud and other fraud; and
for protection of the White House and other buildings within
Washington, DC.
recommendation
The Committee includes $23,195,000 for additional white
House Security upgrades, an increase of $4,325,000 from the
amount requested by the President. The Committee provides
$4,000,000 for additional White House security requirements
through the Salaries and Expenses Account instead of $2,639,000
through the Crime Bill Trust Fund, as proposed by the
President. The Committee includes an additional $1,361,000
beyond the President's request to support additional Secret
Service staffing requirements identified in the ``White House
Security Review''. Finally, the Committee has included $1.2
million in the base appropriation, available on September 30,
1997, for the second and third year of operational costs
associated with the Exploited Child Unit at the National Center
for Missing and Exploited Children.
The Committee is concerned that law enforcement sedans,
surveillance vans and follow up vehicles continue to exceed
current federal replacement standards for both age and mileage.
The Committee includes the full amount of the President's
request for the replacement of vehicles in the security fleet.
The Committee has reduced the amount requested by the
President to maintain current services by $2,842,000. The
President's budget assumed enactment of legislation to increase
the employers contribution to the Civil Service Retirement
System; since this legislation will not be enacted, these
savings are available. The Committee also denies the
President's request to reduce overtime pay by $4,000,000 as
well as a transfer of $3,032,000 from salaries and expenses to
the Crime Bill Trust Fund.
ACQUISITION, CONSTRUCTION, IMPROVEMENT AND RELATED EXPENSES
Appropriation, fiscal year 1996 to date.................................
Budget estimate, fiscal year 1997....................... $29,165,000
Recommended in the bill................................. 31,298,000
Bill compared with:
Appropriation, fiscal year 1996..................... +31,298,000
Budget estimate, fiscal year 1997................... +2,133,000
MISSION
The Committee has established a new account for the
acquisition, construction, improvement, equipment, furnishing
and related costs for construction and maintenance of the new
Secret Service Headquarters Building.
RECOMMENDATION
The Committee has included $2,133,000 for mainframe
computer and software system upgrades through the Acquisition
and Construction Account instead of the Crime Bill Trust Fund
as proposed by the President.
General Provisions--Department of the Treasury
Section 111. The Committee continues the provision
requiring the Secretary of Treasury to comply with certain
reprogramming guidelines when obligating or expending funds for
law enforcement activities.
Sec. 112. The Committee continues the provision allowing
the Department of Treasury to purchase uniforms, insurance, and
motor vehicles without regard to the general purchase price
limitation, and enter into contracts with the State Department
for health and medical services for Treasury employees in
overseas locations.
Sec. 113. The Committee continues the provision restricting
the use of funds appropriated to the IRS if employees or
private sector employees under contract to the IRS are not in
compliance with the Fair Debt Collection Practices Act.
Sec. 114. The Committee continues the provision mandating
the IRS institute policies and procedures which safeguard the
confidentiality of taxpayer information.
Sec. 115. The Committee continues the provision requiring
expenditure of funds so as not to diminish efforts under the
Federal Alcohol Administration Act.
Sec. 116. The Committee inserts this provision which
modifies the Treasury Forfeiture Fund to discontinue transfers
between the Treasury Forfeiture Fund and the Special Forfeiture
Fund.
Sec. 117. The Committee inserts this provision which
provides $13,000,000 in IRS funding to continue the current
contract for private sector debt collection and transfers
another $13,000,000 to the Departmental Offices Appropriation
to initiate a second contract.
Sec. 118. The Committee inserts this provision which
creates a priority placement and job retraining program for
employees who have been, or are about to be, separated from
government service as a result of a reduction in force. The
Treasury Department shall provide such employees priority
placement for other Treasury vacancies as they occur, may
provide job placement and counseling services, and shall refer
eligible employees for possible positions with any new private
sector contractor working as part of the Internal Revenue
Service's Tax Systems Modernization (TSM) program.
TITLE II--POSTAL SERVICE
Payments to the Postal Service
Payment to the Postal Service Fund
Appropriation, fiscal year 1996 to date................. $85,080,000
Budget estimate, fiscal year 1997....................... 102,817,000
Recommended in the bill................................. 85,080,000
Bill compared with:
Appropriation, fiscal year 1996.....................................
Budget estimate, fiscal year 1997................... -17,737,000
payment to the postal service fund for nonfunded liabilities
Appropriation, fiscal year 1996 to date................. $36,828,000
Budget estimate, fiscal year 1997.......................................
Recommended in the bill.................................................
Bill compared with:
Appropriation, fiscal year 1996..................... -36,828,000
Budget estimate, fiscal year 1997...................................
recommendation
The Committee's recommendation includes $61,433,000, as
requested by the Postal Service, for free mail for the blind
and overseas voting, and $23,617,000 of the $29,000,000
requested for the revenue forgone reimbursement. Because of
budgetary constraints, the Committee recommends no funding for
the $12,384,000 reconciliation adjustment and defers, without
prejudice, funding for this item.
Although the Committee was unable to provide any resources
for the reconciliation adjustment and only partial funding for
the revenue forgone reimbursement, the Committee continues to
recognize the obligation of the Congress to reimburse the
Postal Service for these expenses.
child pornography
The Committee commends the U.S. Postal Service for its
outstanding work combating child pornography. To date, Postal
Inspectors have conducted more than 2,600 child pornography
investigations, resulting in over 2,400 arrests. Last month,
after two years of investigation, the Postal Inspection Service
successfully shut down the largest known commercial distributor
of child pornography in U.S. history operating out of San
Ysidro, California and Mexico. The Committee believes that
federal child pornography efforts have been largely ignored
and, as such, provides additional funds for these
investigations in the U.S. Customs Service and the U.S. Secret
Service. Additionally, the Committee has earmarked $1.0 million
through the Crime Bill Trust Fund to enhance the child
pornography work of the National Center for Missing and
Exploited Children. The Committee urges the Postal Service to
coordinate their efforts with these groups as well as the
General Services Administration so as to maximize national
child pornography investigations.
american canyon, california zip code
The Committee is disappointed that the Postal Service has
continued to deny the City of American Canyon, California, its
own zip code. Despite the fact that American Canyon is a
separately incorporated municipality of more than 8,000
residents in Napa County, it is assigned the same zip code as
the city of Vallejo in Solano County. Not only is this a matter
of civic identity, but the situation disadvantages the city and
its residents. Mail intended for Solano County residents is
misdelivered, and residents have to drive more than six miles
to obtain postal services. The unified zip code also makes it
difficult for the State Controller and the State Board of
Equalization to apportion state subvention funds to cities.
The Committee notes that many communities smaller than
American Canyon have their own zip codes. Even President
Clinton has a special zip code so friends can write him
directly and privately. Under such circumstances, the Committee
strongly encourages senior management to reconsider the Postal
Service decision and assign American Canyon its own zip code.
postal service in northern virginia
The Committee is concerned about postal service in the
northern Virginia region. While service has improved, it had
the lowest on-time delivery performance on overnight local
First-Class mail in the nation in the second quarter of FY
1996. Although the northern Virginia postal service has
achieved record levels for on-time delivery performance in the
third quarter of FY 1996, northern Virginia still ranks as one
of the lowest in the nation. Therefore, the Committee directs
the U.S. Postal Service to provide the Committee with a
progress report on efforts to improve mail service in northern
Virginia. Such report should review the effectiveness of
reforms that have been implemented and should detail other
actions to be taken to improve mail delivery in northern
Virginia. This report shall be submitted to the Committee two
weeks after the FY 1996 fourth quarter service performance
report is issued.
post office at stony brook, new york
The Committee recognizes that the U.S. Post Office located
in Stony Brook, New York is a vital part of the downtown area.
In fact, the community of Stony Brook has expressed its
overwhelming support for retaining the Post Office in its
present location. It has come to the attention of the Committee
that the Post Office is pursuing several innovative strategies
for retaining the Post Office in Stony Brook and the Committee
strongly encourages the Post Office to continue to pursue every
alternative which allows them to remain at their present
location. We urge them to follow through with a 30-35 year
commitment to the community of Stony Brook.
sparta township post office
The Committee is aware that a new Post Office is needed in
Sparta, New Jersey and understands that the Postal Service is
currently reviewing various options for a new facility. While
the Committee realizes that the Sparta Post Office must go
through the normal process, the Committee supports the proposed
project and encourages the Postal Service to continue working
with the residents of Sparta to ensure that an updated facility
is acquired.
kinnelon borough, new jersey zip code
The Committee believes that the Postal Service should
reconsider its decision to deny Kinnelon Borough, New Jersey
its own zip code. Despite the fact that Kinnelon is a separate
incorporated municipality of more than 8,000 residents in
Morris County, it is assigned three separate zip codes. The
Committee notes that many communities smaller than Kinnelon
Borough have their own zip codes. Under such circumstances, the
Committee strongly encourages the Postal Service to give
further consideration to assigning Kinnelon Borough its own zip
code.
Recycling Hotline
The Committee is aware that, since 1992, the United States
Postal Service and other Government agencies have been
encouraged to participate in programs with the private sector
to effectively reduce environmental degradation. The Postal
Service has been working to expand a successful regional
environmental/recycling hotline to a nationwide network. This
program has won a number of awards and the Committee
congratulates the Postal Service for its participation in it.
The Committee encourages the Postal Service to continue such
efforts and to report to the Committee on its involvement with
the recycling hotline within 60 days of enactment of this
legislation.
TITLE III--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO
THE PRESIDENT
total reductions within the executive office of the president
Excluding the Office of National Drug Control Policy and
drug related activities, the Committee assumes savings of
$1,843,000 from 1996 levels and $1,000,000 from the levels
requested by the President for activities funded through the
various Executive Office of the President accounts.
travel of executive office of the president employees
The Committee is concerned with the growth in travel
obligations for accounts within the Executive Office of the
President. Assuming the President's request for travel in 1997,
obligations have grown by 38 percent since 1992, including a
growth of 370 percent within the Office of Policy Development
and 157 percent for the Council of Economic Advisers. The
Committee finds this growth excessive and urges a careful
review of travel to ensure that it is necessary to support the
President's policy priorities.
computer modernization
For the past two years, the Office of Administration has
committed to providing the subcommittee with blueprints,
schedules and priorities for computer modernization efforts
within the Executive Office of the President. To date, the
Committee has received no such blueprint. The Committee is
adamant that it will not continue to fund computer software and
hardware purchases without the appropriate blueprints and
schedules needed to build efficient automation systems. The
Committee has fenced all funding for all computer hardware and
software purchases, including those for maintenance and
replacement, pending the submission and approval of a
modernization blueprint.
Compensation of the President and the White House Office
compensation of the president
Appropriation, fiscal year 1996 to date................. $250,000
Budget estimate, fiscal year 1997....................... 250,000
Recommended in the bill................................. 250,000
Bill compared with:
Appropriation, fiscal year 1996.....................................
Budget estimate, fiscal year 1997...................................
salaries and expenses
Appropriation, fiscal year 1996 to date................. $39,459,000
Budget estimate, fiscal year 1997....................... 40,193,000
Recommended in the bill................................. 40,193,000
Bill compared with:
Appropriation, fiscal year 1996..................... +734,000
Budget estimate, fiscal year 1997...................................
mission
These funds provide for the compensation of the President
and official expenses. Those funds also provide the President
with staff assistance and provide administrative services for
the direct support of the President.
background investigation reports
The Committee has included bill language based upon the
President's announced policy of June 14, 1996 concerning
background investigation reports and the written consent of the
person who is the subject of the investigation. Under that
policy, when an extraordinary circumstance exists concerning
national security or a criminal investigation and written
consent cannot be obtained, such circumstances must be set
forth in a letter of justification signed by the Counsel to the
President and concurred in by the Attorney General or the
Deputy Attorney General.
The Committee is concerned about the invasion of privacy of
private individuals that has occurred when employees of the
White House improperly acquired FBI backgound files of former
administration employees. The Committee urges a thorough and
timely investigation into this situation.
Executive Residence at the White House
operating expenses
Appropriation, fiscal year 1996 to date................. $7,827,000
Budget estimate, fiscal year 1997....................... 7,827,000
Recommended in the bill................................. 7,827,000
Bill compared with:
Appropriation, fiscal year 1996.....................................
Budget estimate, fiscal year 1997...................................
Mission
These funds provide for the care, maintenance, and
operation of the Executive Residence.
young americans chef program
The Committee understands that the position of intern for
the Young Americans Chef Program is currently vacant and the
National Park Service does not anticipate filling it in the
current fiscal year. The Committee repeats its position that
the Executive Residence should review the appropriateness of
continuing this program in light of tight budgetary
constraints.
Special Assistance to the President and the Official Residence of the
Vice President
operating expenses
Appropriation, fiscal year 1996 to date................. $324,000
Budget estimate, fiscal year 1997....................... 324,000
Recommended in the bill................................. 324,000
Bill compared with:
Appropriation, fiscal year 1996.....................................
Budget estimate, fiscal year 1997...................................
salaries and expenses
Appropriation, fiscal year 1996 to date................. $3,280,000
Budget estimate, fiscal year 1997....................... 3,280,000
Recommended in the bill................................. 3,280,000
Bill compared with:
Appropriation, fiscal year 1996.....................................
Budget estimate, fiscal year 1997...................................
mission
These funds are to be used by the Vice President to carry
out responsibilities assigned him by the President and by
various statutes. These funds also provide for the care and
operation of the Vice President's official residence. Also
included in this presentation are the operations of a gift fund
for the official residence of the Vice President.
Council of Economic Advisers
Salaries and Expenses
Appropriation, fiscal year 1996 to date................. $3,180,000
Budget estimate, fiscal year 1997....................... 3,439,000
Recommended in the bill................................. 3,439,000
Bill compared with:
Appropriation, fiscal year 1996..................... +259,000
Budget estimate, fiscal year 1997...................................
mission
The Council of Economic Advisers analyzes the national
economy and its various segments, advises the President on
economic developments, recommends policies for economic growth
and stability, appraises economic programs and policies of the
Federal Government, and assists in preparation of the annual
Economic Report of the President to Congress.
special personnel services
The Committee notes that obligations for special personnel
services have grown by 130 percent since 1992. The Committee
urges the CEA to review the average cost per special employee
and to submit, as part of its 1998 budget request, a
justification for the use of this category of employee versus a
full time employee equivalent. This justification should
include a cost comparison of each category of employee.
duplication of effort: economic advice to the president
The Committee is pleased with the report submitted by the
Council of Economic Advisers regarding its unique role in
providing economic advice to the President. The Committee feels
that the CEA plays an important role in providing impartial
advice to the President and, as such, continues funding the
Council during the upcoming fiscal year. The Committee remains
concerned, however, that there is duplication of effort in this
regard within the EOP and addresses this issue within the
Office of Management and Budget.
Office of Policy Development
Salaries and Expenses
Appropriation, fiscal year 1996 to date................. $3,867,000
Budget estimate, fiscal year 1997....................... 3,867,000
Recommended in the bill................................. 3,867,000
Bill compared with:
Appropriation, fiscal year 1996.....................................
Budget estimate, fiscal year 1997...................................
mission
The Office of Policy Development supports the National
Economic Council and the Domestic Policy Council in carrying
out their responsibilities to advise and assist the President
in the formulation, coordination, and implementation of
economic and domestic policy. The Office of Policy Development
also provides support for other domestic policy development and
implementation activities as directed by the President.
fy 1998 budget submission
The Committee is concerned that the Office of
Administration was unable to account for obligations by Object
Class within the Office of Policy Development for the Domestic
Policy Council and the National Economic Council. As part of
its FY 1998 budget submission, the Committee directs the Office
of Administration to submit a budget request by Object Class
for the Domestic Policy Council and the National Economic
Council.
National Security Council
salaries and expenses
Appropriation, fiscal year 1996 to date................. $6,648,000
Budget estimate, fiscal year 1997....................... 6,648,000
Recommended in the bill................................. 6,648,000
Bill compared with:
Appropriation, fiscal year 1996.....................................
Budget estimate, fiscal year 1997...................................
mission
The National Security Council advises the President on the
integration of domestic, foreign, and military policies
relating to national security.
special personnel services
The Committee notes that obligations for special personnel
services have grown by an unjustifiable 811 percent since 1992.
While the Committee supports the use of detailees and other
special employees for the important work of the NSC, the
Committee urges the NSC to be more prudent in its use of such
employees.
Office of Administration
salaries and expenses
Appropriation, fiscal year 1996 to date................. $25,736,000
Budget estimate, fiscal year 1997....................... 26,100,000
Recommended in the bill................................. 26,100,000
Bill compared with:
Appropriation, fiscal year 1996..................... +364,000
Budget estimate, fiscal year 1997...................................
mission
The Office of Administration's mission is to provide high-
quality, cost-effective, administrative services to the
Executive Office of the President. These services, defined by
Executive Order 12028 of 1977, include financial, personnel,
library and records services, information management systems
support, and general office services.
Office of Management and Budget
salaries and expenses
Appropriation, fiscal year 1996 to date................. $55,573,000
Budget estimate, fiscal year 1997....................... 55,573,000
Recommended in the bill................................. 55,573,000
Bill compared with:
Appropriation, fiscal year 1996.....................................
Budget estimate, fiscal year 1997...................................
mission
The Office of Management and Budget assists the President
in the discharge of budgetary, economic, management, and other
executive responsibilities.
economic advice to the president
Government wide, there are 5,796 economists employed in 51
different federal agencies including 27 full time employees
within OMB, 15 senior economists at the Council of Economic
Advisers and 21 full time employees of the National Economic
Council. Last year, the Committee became concerned about the
duplication of effort within the Executive Office of the
President as it relates to providing the President with
economic advice, particularly the duplicative roles of OMB, NEC
and the CEA. While the Committee understands the role each
group plays in both the Troika and the overall coordination of
economic policy within the Executive Branch, the Committee can
not justify 28 full time economists within OMB, six of whom are
simply charged with providing economic policy ``backup'' and
liaison with Treasury on tax policy and tax expenditures. The
Committee directs OMB to report back, as part of its 1998
budget request, on savings that can be achieved by eliminating
these six positions.
ses employment levels
OMB currently employs 75 SES employees making the ratio of
SES employees to total OMB employees 1:7. The Committee finds
this ratio excessive and directs OMB to submit, as part of its
FY 1998 budget request, justification for these SES levels and
a position description for each SES employee.
year 2000 software conversion
The Committee is concerned by reports that the federal
government may be underestimating the potential complexity and
cost of converting date fields in software code, especially
embedded systems, to accommodate operation in the year 2000.
Virtually all of today's computer software programs have a two-
digit date year field instead of a four-digit year date field.
Consequently, at the turn of the century, computers will be
unable to differentiate between the years ``1900'' and
``2000''. If this software problem is not addressed promptly,
the Committee is concerned that the vast majority of date
sensitive computer information may be rendered unusable.
The Committee directs the Office of Management and Budget
to assess the risk to government systems of software programs
that are not equipped to handle the change of date caused by
the turn of the century. OMB should consult with federal
agencies and submit to the House Committee on Appropriations,
the House Committee on Government Reform and Oversight, and the
House Science Committee a report which (1) includes a cost
estimate to ensure software code date field conversion by the
year 2000; (2) delineates a planned strategy to ensure that all
information technology, as defined by the Information
Technology Management Reform Act of 1996, purchased by an
agency will operate in 2000 without technical modifications;
and (3) a time table for implementation of the planned
strategy. This report should be submitted no later than
November 1, 1996.
international cooperative administrative support services
As part of the National Performance Review, the State
Department and other Departments and agencies with an overseas
presence have been working cooperatively through the
President's Management Council to devise a new system to
allocate costs of staff and operations overseas, to replace the
current Foreign Affairs Administrative Support system. This new
system, known as International Cooperative Administrative
Support Services, ICASS, would make the allocation of costs
among participating agencies more transparent and establish
local councils to make the provision of administrative services
more responsive to the needs of each agency. Currently, pilot
projects are underway in 4 countries, and in fiscal year 1997,
all posts will be participating in a test of the system. The
new system is to be fully implemented in fiscal year 1998,
including the new allocations of costs. Consequently, the
Office of Management and Budget is directed to ensure that in
the President's budget submission for fiscal year 1998, each
Federal agency budget for the cost of its overseas presence in
accordance with ICASS and display its request accordingly, and
to carry out full implementation of ICASS in fiscal year 1998.
Office of National Drug Control Policy
salaries and expenses
Appropriation, fiscal year 1996 to date................. $26,900,000
Budget estimate, fiscal year 1997....................... 34,838,000
Recommended in the bill................................. 34,838,000
Bill compared with:
Appropriation, fiscal year 1996..................... +7,938,000
Budget estimate, fiscal year 1997...................................
mission
The Office of National Drug Control Policy, established by
the Anti-Drug Abuse Act of 1988, is charged with developing
policies, objectives and priorities for the National Drug
Control Program as defined by the Act and Executive Order
12880.
recommendation
The Committee recommendation includes $17,000,000 for
counternarcotics research and development, $1,000,000 for
policy research and evaluation, $14,750,000 for the salaries
and expenses of the office, $1,000,000 for conferences on model
state drug laws and $1,268,000 for public service announcements
aimed at the prevention of narcotics addiction.
public service announcements
The Committee has been impressed by the work of the
Partnership for a Drug Free America as well as other
organizations and individuals who volunteer time for drug abuse
prevention advertisements. Convincing the young never to try
illicit narcotics is ultimately the only way to ``win'' the
struggle against drug abuse. The Committee has therefore
included $1,268,000 to support the production and dissemination
of additional public service announcements.
model state drug law conferences
The Committee has been pleased to support implementation of
model state drug law conferences, which bring together
educators, drug prevention and treatment experts, law
enforcement and corrections officials, district and county
attorneys and others to discuss the latest innovations in anti-
drug abuse programs. These conferences serve as a valuable tool
for those on the front lines to share information about what
works and what doesn't. The Committee provides a second
installment of $1,000,000 to continue the work of these
conferences. The Committee will continue to fund these
conferences until they have taken place in all 50 states.
senior staff of the office of national drug control policy
The Committee would like to express its disappointment with
the quality of work of senior staff in the Office of National
Drug Policy. Over the course of the past year, this Committee
has directed that office to complete at least two specific
tasks: adjudicate a technical disagreement between the Bureau
of Alcohol, Tobacco and Firearms and the Federal Bureau of
Investigation relating to the development of ballistics
technology, and implement a series of conferences on model
state drug laws. In both instances, ONDCP failed to complete
these tasks in a timely and professional manner and, in fact,
directly challenged and circumvented Congressional intention
regarding the obligation of funds. Specifically, in the first
case, the Committee received complaints of bias and a lack of
professionalism from private industry, local law enforcement,
and Federal agencies. In the second, ONDCP delayed five months
over ``technical problems'' with what should have been a
routine contract, causing the cancellation of several
conferences and jeopardizing the implementation of several
more. In both cases, the Committee was forced to intervene to
correct the matter, in the first instance taking the issue out
of ONDCP's jurisdiction, and in the second writing legislation
forcing ONDCP to follow the Congress' direction.
bloated bureaucracy at ondcp
The Committee was dismayed by ONDCP's draft staffing plan
and organizational chart as submitted on May 31, 1996. It
appears that ONDCP has taken Congressional support for the new
Drug Czar's office to an extreme, proposing a bloated
bureaucracy with exaggerated staffing requirements.
The Committee understands that there are numerous and
complex federal programs that address the nation's drug
problem, and that ONDCP is responsible for coordinating all
federal drug efforts. However, ONDCP's proposed organization
places nearly half of its personnel in administrative overhead
of one sort or another. In reviewing the proposed
organizational chart, the Committee found offices with
overlapping functions: a ``Strategic Planning'' office, a
``Strategy Implementation & Evaluation'' office and a
``Programs, Budget, Research & Data'' office. The Committee
also believes that individual offices are bloated and overly
graded. For instance, the Chief of Staff's office has a Chief
of Staff (with a salary of $122,688 per year), a Secretary to
the Chief of Staff ($38,262), an Executive Assistant ($70,804),
a Deputy Chief of Staff ($83,284), a Secretary to the Deputy
Chief of Staff ($38,262), a Staff Assistant ($34,747), a Staff
Assistant ($31,459), an Assistant for Support Services
($83,284), a Support Specialist ($38,262), a Supply/Mail
Specialist ($31,459), an Administrative Support Assistant
($28,404), a Correspondence Manager ($59,917), a Correspondence
Specialist ($50,388), a Correspondence Specialist ($50,388), an
Administrative Specialist ($38,262), Assistant for Personnel
($59,917), an Administrative Support Specialist ($28,404), an
Assistant for Budget ($70,804) and a Budget Specialist
($50,388). Overall, 1 in 10 ONDCP employees will earn over
$100,000.
The Committee fails to see how this type of bureaucratic
overhead contributes to the war on drugs. The Committee also
finds it incredible that a 154-person organization with the
majority of its operational budget tied to simple pay and rent
requirements would find it necessary to hire two full time
staff that are paid $70,804 and $50,388 a year, respectively,
to review internal budget matters. The Committee believes that
the proposed staffing chart, as submitted on May 31, 1996, is
empire building at its worst. As such, the Committee directs
that ONDCP reduce its staffing plan by 25 positions and provide
the Committee a revised chart no later than February 1, 1997.
The Committee has used savings from limiting ONDCP's staffing
upgrades to 129 full time employees, instead of the proposed
154, to fund public service announcements and conferences on
model state drug laws. The Committee notes that the proposed
staffing level of 129 will be an increase of 90 employees from
the level on board at the beginning of fiscal year 1996.
opportunities for ondcp
While the Committee has many concerns regarding ONDCP and
its operations, it also recognizes the continuing need for
strong, central direction of our Federal drug efforts. Under
respected new leadership, ONDCP has the opportunity to
aggressively pursue opportunities to expand and improve the
coordinated Federal efforts. The need for ONDCP remains very
high given the continuing drug crisis across the country. The
Committee therefore hopes that identified problems can be
resolved quickly so that ONDCP can continue and improve its
very critical work.
Unanticipated Needs
Appropriation, fiscal year 1996 to date................. $1,000,000
Budget estimate, fiscal year 1997....................... 1,000,000
Recommended in the bill.................................................
Bill compared with:
Appropriation, fiscal year 1996..................... -1,000,000
Budget estimate, fiscal year 1997................... -1,000,000
mission
These funds enable the President to meet unanticipated
exigencies in support of the national interest, security or
defense.
recommendation
Since 1989, funds have been obligated from this account
only once: in 1994 when $250,000 was obligated to start up the
John F. Kennedy Records Review Board. The Committee believes
there are other more pressing priorities requiring funding in
the upcoming fiscal year. In the event that the President
requires the use of funds for unanticipated needs, the
Committee is willing to consider either a supplemental or a
transfer request.
Federal Drug Control Programs
high intensity drug trafficking areas program
Appropriation, fiscal year 1996 to date................. $103,000,000
Budget estimate, fiscal year 1997....................... 103,000,000
Recommended in the bill................................. 113,000,000
Bill compared with:
Appropriation, fiscal year 1996..................... +10,000,000
Budget estimate, fiscal year 1997................... +10,000,000
mission
The High Intensity Drug Trafficking Areas (HIDTA) Program
was established by the Anti-Drug Abuse Act of 1988 to provide
assistance to Federal and State and local law enforcement
entities operating in those areas most adversely affected by
drug trafficking. Since January 1990, the Director of the
Office of National Drug Control Policy has designated seven
areas as HIDTAs: New York, Los Angeles, Miami, Houston,
Baltimore/Washington, Puerto Rico/Virgin Islands, and the
Southwest Border.
recommendation
The Committee has included legislative language
establishing new High Intensity Drug Trafficking Areas in Lake
County, Indiana; the Gulf Coast states of Louisiana, Alabama,
and Mississippi; and the Midwest states of Iowa, Missouri,
Nebraska, South Dakota, and Kansas.
methamphetamine use in the midwest
The Committee is concerned with the rise of methamphetamine
(``meth'') use in the Midwest. In Des Moines, meth seizures
increased more than 4,000 percent in 1994 over the previous
year. Overall, Iowa saw a 400 percent increase in meth seizures
from fiscal year 1994 to fiscal year 1995. Methamphetamines are
highly addictive. When ingested, they cause insomnia for
several days at a stretch. They initially induce euphoria and
high-energy, but later lead to paranoia, violent behavior and
deep depression. Ample supplies mean relatively low prices. The
meth ``high'' lasts much longer than the ``high'' from the more
expensive cocaine. The rural Midwest is a popular location for
meth manufacturers because the production process causes a foul
odor. Open spaces and low population density allow them to
engage in this process without arousing suspicion.
Methamphetamines are produced and transported throughout the
Midwest, including the states of Iowa, Missouri, Nebraska,
South Dakota, and Kansas.
For these reasons, the Committee has provided $5,000,000
for a Midwest High Intensity Drug Trafficking Area focusing on
methamphetamine use and production in a five state area
including Iowa, Missouri, Nebraska, South Dakota and Kansas.
drug trafficking in lake county, indiana
Lake County, Indiana has phenomenal problems with drug-
related violence and crime. Located along the drug trade route
between Chicago and Detroit, Lake County is increasingly being
used as a hub for drug activities. As a result, the City of
Gary, located in northern Lake County, led the nation for the
past two out of three years in murders per capita. Gary police
estimate that one out of every fourteen city residents is now a
gang member. The Gangster Disciples, one of the nation's
largest gangs, recently applied to use Gary's convention center
to hold a national gang summit.
The Committee therefore directs of Office of National Drug
Control Policy to establish a High Intensity Drug Trafficking
Area in Lake County, Indiana and has provided $3,000,000 for
this purpose in 1997.
southwest border hidta
Some drug trafficking estimates indicate that 70 percent of
all cocaine comes from Mexico and, of that, 45 percent comes
through the El Paso, Texas area. The Committee commends the
work of the Southwest border HIDTA, and believes that the
efforts of that HIDTA will be crucial in stemming the flow of
drugs into this country. The Committee urges the Director of
ONDCP to assign a high priority to funding this HIDTA.
drug trafficking along the gulf coast
The Committee is aware that the Gulf Coast states of
Alabama, Louisiana, and Mississippi are experiencing high
volumes of air, marine, and overland drug traffic. To fill the
gap between existing High Intensity Drug Trafficking Areas
(HIDTA's) in the Miami area and the Southwest Border, the
Committee directs the Office of National Drug Control Policy to
designate the states of Alabama, Louisiana and Mississippi as a
HIDTA. The Committee has provided $2,000,000 for establishment
of the Gulf Coast states HIDTA.
TITLE IV--INDEPENDENT AGENCIES
Committee for Purchase from People Who Are Blind or Severely Disabled
salaries and expenses
Appropriation, fiscal year 1996 to date................. $1,800,000
Budget estimate, fiscal year 1997....................... 1,800,000
Recommended in the bill................................. 1,800,000
Bill compared with:
Appropriation, fiscal year 1996.....................................
Budget estimate, fiscal year 1997...................................
mission
The Committee for Purchase From People Who Are Blind or
Severely Disabled was established by the Wagner-O'Day Act of
1938, as amended. Its primary objective is to increase the
employment opportunities for people who are blind or have other
severe disabilities and, whenever possible, to prepare them to
engage in competitive employment.
Federal Election Commission
salaries and expenses
Appropriation, fiscal year 1996 to date................. $26,521,000
Budget estimate, fiscal year 1997....................... 29,371,000
Recommended in the bill................................. 27,524,000
Bill compared with:
Appropriation, fiscal year 1996..................... +1,003,000
Budget estimate, fiscal year 1997................... -1,847,000
mission
The Commission administers the disclosure of campaign
finance information, enforces limitations on contributions and
expenditures, supervises the public funding of Presidential
elections, and performs other tasks related to Federal
elections.
recommendation
The Committee has carefully reviewed FEC's request, the
President's recommendations and the pending House
reauthorization. Given current funding constraints, the
Committee found it necessary to sort through these various
recommendations on the basis of items that are necessary for
the FEC to meet its statutory responsibilities versus those
that are simply nice to have. The Committee has also
established computer modernization as a top priority and is
convinced that, through a modernized organizational process,
FEC can more effectively meet its statutory responsibilities.
Overall, the Committee's recommendation is 3 percent above the
1996 appropriated level and is based on the following
assumptions:
full time employment levels
The Committee's recommendation assumes full salary and
benefit increases to support 310 full time employee
equivalents, a reduction of 3 full time employees from the
current operating level. As discussed below, the Committee has
applied this reduction to the Press Office.
press office
The Committee is concerned that FEC employs 5 full time
employees in the Press Office. While FEC has a statutory
responsibility to respond to press inquiries, the Committee
feels 5 full time employees for an organization of FEC's size
is excessive. The Committee notes that the Department of the
Treasury, which oversees an annual operating budget of $10.4
billion and over 140,000 employees, has 5 full time press
employees with one additional employee dedicated to media
inquiries on an ad hoc basis.
FEC has maintained that the Press Office plays a critical
role in furthering public disclosure and promoting voluntary
compliance with the law. The Committee has found, however, that
the FEC does not measure of ``voluntary compliance''; thus it
is difficult to measure the Press Office's impact on this
objective. The Committee also believes there is considerable
overlap of disclosure activities among the Press Office, the
Information Division, the Data Division and Public Records.
The Committee notes that, during the 1992-1994 election
cycles, Press Office workloads dropped significantly and FEC
anticipates only a modest increase in the number of people
served in 1996. Additionally, during 1995 and 1996 the FEC has
been making certain information available through the Internet
and, in February of 1996, initiated a ``home page'' on the
World Wide Web. Information previously available only through
contact with FEC staff, including the Press Office, can now be
accessed electronically including: summary financial
information about candidates including campaign receipts,
disbursements, cash-on-hand and debt; news releases summarizing
campaign finance activity; and information for the general
public including a guide for participation in federal
elections.
Given these considerations, and recognizing that there is
some need to have media questions answered by a press
``expert'', the Committee has included sufficient funds for 2
full time press employees. The Committee is confident that
FEC's statutory disclosure responsibilities will not be
impacted by this action. In the event that FEC finds it is
unable to meet its statutory responsibilities with two full
time press employees, the Committee will consider a
reprogramming request.
tuition payments
The Committee continues to question the necessity of
funding tuition assistance payments to FEC employees. While the
Committee fully supports employees continuing their education,
in a era of scarce resources, it is difficult to justify the
continued support of this expenditure particularly since it has
no discernible effect on FEC's ability to meet its statutory
responsibilities.
travel
Since 1991, FEC travel expenditures have grown by more than
60 percent. The Committee has frozen FEC travel at 1991 levels.
The Committee believes that FEC travel should begin to decrease
as FEC begins to modernize itself and is able to communicate
with outside persons electronically.
adp, electronic filing and single point of entry
The FEC is requesting $3,260,000 in FY 1997 to begin the
next stage of a 5 year $20,762,000 computer modernization
effort including electronic filing and single point of entry.
The Committee commends the FEC on its report to the Committee
regarding these initiatives, as directed in the 1996
appropriations bill. The FEC has provided the Committee with a
clear blueprint for modernization, including appropriate
schedules and priorities. The Committee has reduced FEC's
request by $760,000, fencing $2,500,000 for computer
modernization, including electronic filing and single point of
entry. This represents an increase of more than 60 percent from
the 1996 level of $1.5 million.
The Committee is convinced that, while the cost estimates
provided in the December 1995 report on modernization are
valid, the FEC can secure better pricing for both hardware and
software procurement. As such, the Committee directs FEC to
complete its modernization plan for FY 1997 as submitted to the
Committee in the FEC's FY 1997 budget request.
Federal Labor Relations Authority
salaries and expenses
Appropriation, fiscal year 1996 to date................. $20,542,000
Budget estimate, fiscal year 1997....................... 21,988,000
Recommended in the bill................................. 21,588,000
Bill compared with:
Appropriation, fiscal year 1996..................... +1,046,000
Budget estimate, fiscal year 1997................... -400,000
mission
The Federal Labor Relations Authority (FLRA) serves as a
neutral party in the settlement of disputes that arise between
unions, employees, and agencies on matters outlined in the
Federal Service Labor Management Relations statute, decides
major policy issues, prescribes regulations, and disseminates
information appropriate to the needs of agencies, labor
organizations, and the public. Establishment of the FLRA gives
full recognition to the role of the Federal Government as an
employer.
recommendation
The Committee denies the net increase of 5 FTE, but
provides sufficient resources to cover pay raises and
inflation.
General Services Administration
federal buildings fund
construction and acquisition
Limitations on availability of revenue (not an
appropriation):
Fiscal year 1996 to date............................ $545,002,000
Budget estimate, fiscal year 1997................... 715,179,000
Recommended in the bill............................. 540,000,000
Bill compared with:
Appropriation, fiscal year 1996..................... -5,002,000
Budget estimate, fiscal year 1997................... -175,179,000
Recommendations
The Committee has made $540,000,000 available from the
Federal Buildings Fund for the construction and acquisition of
Federal buildings.
The Committee has listed the projects in the legislative
language but has not specifically identified the amount
designated for each project. The Committee believes that within
the $540,000,000 made available, the General Services
Administration (GSA) should have adequate funds to design and
build the projects as listed. The Committee directs the
Administrator of General Services to report to the Committee,
within 90 days of enactment of this Act, on a funding strategy
for each project based upon the $540,000,000 made available for
construction and acquisition.
Additionally, the Committee has included a provision which
requires a minimum 10 percent reduction in U.S. Courthouse
construction costs. The Committee believes that GSA has many
cost cutting suggestions which it has shared with the Judiciary
that, if used, would achieve the savings envisioned by this
provision. Furthermore, the Committee believes that the current
design guide used as a basis for U.S. Courthouse design and
construction, while beneficial, is too liberal and needs to be
reexamined by the Judicial Conference of the United States and
GSA to ensure that courthouse construction represents the
absolute best use of taxpayer dollars. This reexamination
should result in a new design guide which must be completed no
later than April 1, 1997.
The Committee expects that serious action must be taken to
reduce the design and construction of facilities that are
costly and inefficient. The Committee therefore directs that
the revised design guide include changes that will result in
significant savings in current and future courthouse
construction. This revised design guide should be developed
through a working committee that consists of representatives
from the Judicial Conference, the GSA, and the OMB.
The Committee has included a provision (Sec. 405), similar
to a provision carried in both 1996 and 1997, which prohibits
the expenditure of funds for the submission of a fiscal year
1998 request for U.S. Courthouse construction which does not
meet the design guide standards and does not reflect the
priorities of the Judicial Conference of the United States. The
provision has been changed to include language requiring a
standardized courtroom utilization study for requested
projects.
moratorium on new construction
The General Services Administration (GSA) through its
Federal Buildings Fund (FBF), supports the construction and
acquisition of Federal buildings, including U.S. Courthouses,
office buildings, laboratories, and border stations. The House
Budget Resolution for fiscal year 1997 includes the assumption
of $545,000,000 in savings associated with continuing the 1996
moratorium on new Federal building construction. Unfortunately,
this number was calculated by using the 1996 limitation on new
construction and is not relevant to the 1997 program.
Furthermore, because of the way the FBF operates, these savings
are not achievable. The true reduction in the President's
request that could be achieved from a moratorium on new
construction is $70,785,000 in budget authority and $2,123,000
in outlays. The conference agreement on the 1997 Budget does
not address the issue of a moratorium.
Not only are the savings assumed in the Budget Resolution
impossible to achieve in 1997, but the Committee is also
concerned that continuing this moratorium will severely impact
the ability of the Congress to insure the proper execution of
government programs. The vast majority of the construction
program is for special purpose facilities such as U.S.
Courthouses and U.S. Customs Service-Immigration and
Naturalization Service Border Stations, which are needed to
support crime control activities. Furthermore, Congress will
eventually need to construct these facilities. The longer we
delay actual construction, the more costly the construction
becomes due to inflation and lost opportunities. Additionally,
the Committee believes that deferring construction needlessly
defers economic growth in those areas of the country where
construction is planned. A six-year moratorium as proposed by
the fiscal year 1997 House Budget Resolution, translates into a
10 to 15 year delay in economic activity, job growth, and
personal earnings in the affected states.
For these reasons, the Committee has not implemented the
House Budget Resolution recommendation of a blanket moratorium;
instead the Committee has achieved significant savings in the
construction program with a thorough analysis of each project.
The Committee has provided $540,000,000 for new construction;
$175,179,000 less than the 1997 President's request and
$5,002,000 less than 1996 levels.
Additionally, the Committee has included language requiring
that the cost of U.S. Courthouse construction be reduced by at
least 10 percent by curtailing planned interior finishes, and
increasing efficiencies in the design and construction of
projects. Furthermore, the Committee requires that the fiscal
year 1998 request for U.S. Courthouse construction include only
those courthouses which meet design guide standards for
construction.
The Committee directs that these design guide standards
increase the efficiencies of courthouse design because
statistics show that for every 1 percent increase in design
efficiency there is a $900,000 reduction in cost. The design
guide standards must increase efficiencies.
repairs and alterations
Limitations on availability of revenue (not an
appropriation):
Fiscal year 1996 to date............................ $637,000,000
Budget estimate, fiscal year 1997................... 775,034,000
Recommended in the bill............................. 635,000,000
Bill compared with:
Appropriation, fiscal year 1996..................... -2,000,000
Budget estimate, fiscal year 1997................... -140,034,000
recommendation
The Committee has made $635,000,000 available from the
Federal Buildings Fund for the repair and alteration of Federal
buildings.
The Committee has listed the projects in the legislative
language but has not specifically identified the amount
designated for each project. The Committee believes that within
the $635,000,000 made available, the General Services
Administration (GSA) should have adequate funds for necessary
repairs and alterations on the projects as listed. The
Committee directs the Administrator of General Services to
report to the Committee, within 90 days of enactment of this
Act, on a funding strategy for each project based upon the
$635,000,000 made available for repairs and alterations.
environmental clean up activities
southeast federal center
The Committee has included $20,000,000 for clean up of
environmental contamination at the Southeast Federal Center
(SEFC) in Washington, DC. According to tests conducted by the
GSA, the SEFC is contaminated with PCB's, asbestos, heavy
metals, and volatile organic compounds. Additionally,
biological hazardous waste has been found in some of the
existing buildings.
On April 19, 1996, the Environmental Protection Agency
(EPA) requested GSA submit an application for a Storm Water
Discharge Permit. This request is the result of a multi-media
inspection conducted at the SEFC during May, 1995 to locate
contamination sources of the Anacostia River. Specifically, the
EPA wants to ensure that GSA is complying with applicable laws
and regulations concerning conservation and toxic substances.
The results of the EPA requested study is an indication there
may be contaminants entering the Anacostia River from the SEFC
storm sewers.
To initiate corrective action, the Administration requested
$29,999,000 in new construction funds. The Committee has
provided $20,000,000 for this purpose. The Committee requests
that the Administrator keep it informed of the plans and total
cost of the remediation requirements.
holtsville-brookhaven irs service center
In fiscal year 1995, Congress provided $19,183,000 for an
Administration-proposed renovation of the IRS Service Center in
Holtsville, New York. Due to the inability of the IRS to
finalize plans for this facility, the GSA was not able to
obligate these funds. In fiscal year 1997, the Administration
has proposed a ``re-scoped'' renovation project for the
Holtsville/Brookhaven IRS Service Center based on the finalized
IRS plans for this facility
Due to the change in IRS plans, the Committee agreed to a
March 27, 1996, GSA request to reprogram $13,483,000 from
fiscal year 1995 funds made available for the Holtsville IRS
Service Center project which remained unobligated. The
Committee has included language which extends the availability
of the remaining $5,700,000 until September 30, 1998. The
$5,700,000 balance in fiscal year 1995 unobligated funds will
be retained and used in the construction phase of the re-scoped
project requested in fiscal year 1997. This $5,700,000 is in
addition to the $2,272,000 requested by the Administration to
initiate the re-scoped project for the Brookhaven IRS Service
Center.
space requirements analysis
The Committee directs the Administrator of General Services
to submit a space requirements analysis study for Johnstown,
Pennsylvania. This 11(b) study should be submitted to the
appropriate Congressional committees.
u.s. courthouse--baltimore
The Committee understands that there are structural,
operational, and functional deficiencies at the Edward A.
Garmatz Federal Building and U.S. Courthouse in Baltimore,
Maryland. These problems may well hamper the building's
usefulness as a courthouse and detract from substantial urban
renewal surrounding its location. The Committee directs GSA to
develop a master plan for the interior and exterior of the
courthouse which addresses these problems.
requirements of the smithsonian institution
The Committee understands that the Smithsonian Institution
has a desire to consolidate its office space in a building with
close proximity to the Smithsonian's Castle building. The
Smithsonian has contacted the GSA concerning space which may be
available that would meet their needs. The GSA should report to
the Committee on the options which may be available to
accommodate the Smithsonian's requirements.
building security enhancements
The Committee has provided a total $240,000,000, the amount
requested, to fund necessary expenses for enhancement of
Federal building security. The Committee requests the
Administrator of General Services provide a report to the
Committee which details, by agency and organization, the
security enhancements which have been funded to date by GSA, as
well as those planned in fiscal years 1997 and 1998. For those
expenses for which GSA has received reimbursement, the GSA
should note the amount of the reimbursement. The report should
also address the costs associated with retrofitting all federal
facilities with security window film to mitigate potential
losses, as stipulated in a June 28, 1995, Presidential
memorandum. This report should accompany the fiscal year 1998
budget submission.
international boundary and water commission (IBWC)
The Committee is aware that the GSA is evaluating options
to provide appropriate office space for a new IBWC headquarters
building in El Paso, Texas. It is unclear at this time if this
will be done through the leasing of commercial office space or
the construction of a new building. The Committee directs the
GSA to continue working with the IBWC on an adequate and
appropriate plan for providing necessary office space for a new
headquarters building.
operations and leasing
Consistent with Congressional intent to streamline the
budget process, the Committee has combined the funds
traditionally made available for ``Rental of Space'' and
``Building Operations.'' This action will provide GSA with
greater flexibility in executing its business-like approach
advocated by the Administrator and the Commissioner of Public
Buildings during the Committee's GSA hearing. Although the
language provides a single limitation of $3,903,205,000, it is
the Committee's intent that $1,559,410,000 be made available
for Building Operations and $2,343,795,000 be made available
for Rental of Space. The Committee directs that the accounting
for these two activities remain separate; funds may be
transferred between the accounts without prior Congressional
approval.
automation enhancements
The Committee has established a new account within the
Federal Building Fund, the Automation Enhancements account, and
has made $4,800,000 available for activities associated with
automation enhancements. These funds are to be used for the
development and acquisition of automatic data processing
equipment, software, and services for the Public Buildings
Service. However, none of the funds shall be available until
the Commissioner of Public Buildings has submitted for approval
to the Committees on Appropriations of the House and Senates a
report which sets out a systems investment plan that
identifies, evaluates, and prioritizes all system enhancements
planned for fiscal year 1997; a milestone schedule for the
development and implementation of all projects included in the
systems investment plan; and a certification that a systems
architecture plan, if necessary, exists and will be used for
systems development.
western human nutrition research center
The Western Human Nutrition Research Center (WHNRC), is
operated by the Agricultural Research Service (ARS) of the U.S.
Department of Agriculture (USDA), and is located at the
Presidio in San Francisco. Because of increasing rent, WHNRC
will move to the campus of the University of California, Davis,
California. Before the move can take place, construction of a
custom building is required. The Committee directs GSA to
render all possible assistance to the ARS and the USDA in
performing the architectural and engineering studies needed to
plan and design the custom building.
u.s. department of agriculture, davis, california
The Committee is disappointed, that despite repeated
requests that GSA work with the U.S. Department of Agriculture
(USDA) in Davis, California to collocate a number of USDA state
offices, the development of the collocation facility has not
proceeded as quickly as hoped. The Committee expects that
construction of the USDA collection facility at Davis,
California, will commence as soon as possible.
u.s. customshouse in new orleans, louisiana
The Committee directs the Administrator of General Services
to ensure that $3,500,000 be made available to continue the
historic renovation of vacant, underutilized, and unrenovated
space in the U.S. Customshouse in New Orleans, Louisiana. The
Committee strongly supports continuing and completing the
renovation of this National Landmark to ensure that this
building is properly maintained for existing Federal tenants
and to accommodate additional leases through existing
memorandums of understanding.
u.s. courthouse, harrisonburg, virginia
The Committee understands that the General Services
Administration (GSA) has diligently worked with Judge James H.
Michael, Jr., the Administrative Office of the United States
Courts, the U.S. Marshals Service, and the U.S. Postal Service
to finalize plans to repair, alter, and renovate the second
floor of the Harrisonburg Courthouse which is in serious
disrepair and is not adequate to accommodate existing needs.
The Fourth Circuit Judicial Council met in April, 1996, and
approved Judge Michael's request to renovate the second floor
of the building to meet the immediate space needs of the court.
Furthermore, the GSA testified that ``[t]he repairs and
alterations will be made during fiscal year 1997.'' Given these
events and circumstances, the Committee urges the GSA and
Postal Service to continue working with all interested parties
and directs the GSA to go forward with the necessary repairs
and alterations to the Harrisonburg Courthouse in fiscal year
1997.
u.s. courthouse, savannah, georgia
The Savannah historic district is a unique architectural
resource which requires careful guardianship. The GSA has made
significant efforts to ensure that the construction of a new
Courthouse Annex is compatible with the district's unique
character. To facilitate the GSA in this regard, the Committee
has included a provision (Sec. 409) directing the Administrator
of General Services to ensure that the materials used for the
project are fully compatible with the facade of the existing
Savannah Federal Building--U.S. Courthouse. The Committee takes
this action to ensure compatibility with the existing Savannah
historic district and to ensure that the Annex will not
endanger the National Landmark status of the Savannah historic
district.
U.S. Department of Agriculture
animal and plant health inspection service
The main facility of the National Veterinary Service
Laboratory (NVSL) of the United States Department of
Agriculture (USDA) Animal and Plant Health Inspection Service
(APHIS) is located in an industrial area near Interstate 35 in
Ames, Iowa. In addition, the APHIS rents commercial separate
spaces for the Diagnostic Bacteriology Lab (DBL) and the
Pathobiology Lab (PL). The rented facilities have been found by
the Office of the Inspector General to be: ``. . . inadequate
in terms of safety and health . . .'' These facilities must be
replaced. Additionally, the APHIS should be consolidated into
one facility to reduce costs and promote efficiency.
In fiscal year 1996, the Committee recognized the need to
address these health and safety issues, especially at these
laboratories that are located in commercial areas, and directed
that $100,000 be used to initiate design of a new facility. The
Committee continues this commitment to addressing these serious
issues by including language directing that such funds as may
be necessary be available to continue this effort.
outsourcing Real Estate Services
The GSA's Public Buildings Service (PBS) has recently
released a request for an ``Expression of Interest'' in a
nation-wide contract for private sector involvement in
conducting real estate services for the government. The
Committee is pleased that PBS has taken this step because it
signals a realization that there are some positive proposals
being made by the private sector which can reduce costs and
make PBS more efficient.
The Committee believes that many of efficiencies proposed
by the private sector could be realized if PBS revised some of
its internal regulations. When developing a Request for
Proposal for this nation-wide contract, the PBS should keep in
mind that passing along its own inefficiencies to a contractor,
does not produce a true test of private sector capabilities.
Nor do such inefficiencies allow PBS employees to compete on a
level playing field. Eliminating burdensome internal
regulations can create an efficient and effective organization
as has been shown by the Reinvention Laboratories in the
Northwest/Arctic and Rocky Mountain Regions. To ensure that the
contracting effort is fair and equitable to all parties, PBS
should revise its own internal structure and regulations
similar to what has been done in the Reinvention Laboratories.
While the Committee is pleased that PBS has released an
``Expression of Interest,'' it is clear that PBS is not moving
as fast as it could to implement the Committee's 1996 direction
to test the concept of privatizing the Commercial Broker
function. The Committee directed GSA to submit a plan to
implement the privatization of the Commercial Broker function
by March 31, 1996. The Committee did not receive this plan and
can only conclude that GSA will not follow the Committee's 1996
direction. Therefore, the Committee once again directs GSA to
submit a plan to implement the privatization of the Commercial
Broker function. The plan should include an implementation date
of December 1, 1996 and should address the method that will be
used to compare and contrast efficiencies of maintaining the
function in-house versus privatization.
policy and operations
Appropriation, fiscal year 1996 to date................. $119,091,000
Budget estimate, fiscal year 1997....................... 109,473,000
Recommended in the bill................................. 109,091,000
Bill compared with:
Appropriation, fiscal year 1996..................... -10,000,000
Budget estimate, fiscal year 1997................... -382,000
mission
This appropriations account consolidates policy, oversight,
and asset management functions associated with real and
personal property, supplies, acquisition, and information
technology into a single account separate from operations. The
establishment of this appropriations account is part of the
Administration's effort to transform the General Services
Administration (GSA) into an organization responsible for
policy and oversight, and to place greater reliance on the
private sector, as appropriate. The creation of this office
will increase accountability for results, encourage innovation,
and enhance government-wide planning.
recommendation
The Committee has provided $109,091,000 for GSA's policy
and operations appropriation. Within this funding level, the
GSA shall provide the ICN the same level of funding and support
as was provided in fiscal year 1996.
Although the Committee remains concerned about combining
these two functions into one account, the Committee has agreed
to the President's request. However, the Committee continues to
believe that combining the functions which establish
Government-wide policies with the functions that support GSA
operations has potential for conflict.
The budget justification material which has been supplied
to the Committee indicates that of the $109,473,000 request for
Policy and Operations, approximately $44,000,000 is for the
Policy Office and $65,000,000 is for the Operations Office. The
Committee directs that these Offices remain separate entities
and that funding for these Offices be accounted for separately.
Furthermore, the Committee requests the Administrator of
General Services, within 30 days of enactment of this Act,
provide the Committee with a breakout, by object class, for the
Policy Office and the Operations Office, detailing the 1997
request and how Congressional reductions were applied to the
request. Additionally, the Committee requests that
justification material submitted with the 1998 budget include
object class breakouts for the separate Policy and Operations
Offices.
efforts to find missing children
The GSA has partnered with the National Center for Missing
and Exploited Children (NCMEC) to implement federal efforts to
help locate missing and exploited children. GSA's main
responsibility is to post notices of missing children in
Federal buildings. GSA has taken the initiative to use modern
technology to disseminate the information by downloading
missing children notices from the NCMEC data base via the
Internet and circulating the notices to Federal buildings
across the country. These missing children notices are then
displayed on bulletin boards and kiosks containing automated
computer displays in the lobbies of federal buildings.
Furthermore, GSA is prototyping a new method of electronically
distributing photographs of missing children. GSA is
prototyping this method in conjunction with Con Edison in New
York and the Polaroid Corporation.
The Committee is very pleased with these efforts and
especially appreciates the work of GSA's Heartland Region, in
Kansas City, Missouri, which developed this technological
approach to assist in locating missing children.
garbage collection bid package
It has come to the attention of the Committee that the GSA
has released a bid package for the collection of garbage at two
federal buildings in Kansas City, Kansas. The bid package is
153 pages long, with 18 pages marked ``deleted.'' It does not
appear to the Committee that garbage collection, something that
is done in the private sector each and every day, is as complex
as GSA is making it out to be with a 153 page bid package. It
is, of course, this type of thing that causes people to
question the government's process for procuring services and
prompts legitimate cries for procurement reform. This type of
process also is more costly and inefficient.
The Committee requests the Administrator of General
Services review the process which GSA uses to procure such
services as garbage collection to ensure that the process used
is appropriate and efficient.
post fts-2000 contract
The Committee, along with the House Committee on Government
Reform and Oversight, is concerned about GSA's revised
acquisition strategy for the Post FTS-2000 contract. In
particular, given the ever-changing world of telecommunications
services, the Committee believes that entering into a long-term
and inflexible comprehensive contract, may be ill-advised.
Additionally, contracting for local services, while
providing an opportunity for savings, is cause for concern
because it is unclear how a nation-wide contract can
accommodate variances in all areas of the country, and, in
particular, rural areas. Therefore, GSA should evaluate the
advisability of its approach before entering into such a
contract. It appears that the largest savings in the area of
local service will be in metropolitan areas of the country
where there is strong competition among carriers and a large
Federal government presence.
The Committee believes these types of changes must be
addressed in order for GSA to take full advantage of rapid
changes in the telecommunications services industry and
technology. Therefore, the Committee directs the Administrator
of General Services to review GSA's revised acquisition
strategy for the Post FTS-2000 contract and report to the
Committee on options to address the Committee's concerns prior
to entering into such a contract.
federal child care centers
Based on testimony received from the General Services
Administration, the Committee is concerned that the 103 federal
child care centers ``can only be used by an increasingly high
level group of employees, due to the high cost of care.''
Therefore, the Committee directs the Office of Management and
Budget to coordinate a government-wide review of federal child
care centers to evaluate their effectiveness and determine how
they may be improved to provide greater flexibility, access and
availability to all federal employees. The Office of Management
and Budget shall submit its findings and recommendations to the
House and Senate Appropriations Committees and appropriate
authorizing committees no later than April 30, 1997.
telecommuting centers
The Committee has been a strong supporter of flexiplace
telecommuting centers. According to GSA, by the end of 1996, it
will have opened over a dozen such centers, with continued
growth in 1997. However, the operation of these facilities has
not been authorized and when GSA uses funds from the Federal
Building Fund to support such operations, the Transportation
and Infrastructure Committee of the House should be apprised of
GSA's actions.
Nevertheless, there appears to be a great deal of interest
in opening up these Federal facilities to non-Federal
government and private entities. Therefore, the Committee has
included a new provision (Sec. 406) which opens up the
flexiplace telecommuting centers to non-Federal government and
private entities when the center is not being fully utilized by
Federal employees. However, in the interests of making the
flexiplace telecommuting centers self-supporting, the provision
requires the Administrator to charge fees for the use of any
telecommuting center to offset the cost of establishing and
operating the center. Additionally, the provision authorizes
GSA to provide technical assistance regarding alternative
workplace arrangements and directs agencies to consider the use
of alternative workplace arrangements when considering work
space needs.
The expansion of the use of these facilities should be
included in GSA's overall strategy and policy on the
telecommuting center program. Additionally, the GSA should work
with the committees of jurisdiction on any proposed expansion
of this program. The Committee directs GSA submit a report, no
later than February 1, 1997, which outlines the Federal
government policy for managing and expanding the use of
flexiplace telecommuting centers.
Standards for Wireless Communication Equipment
The Committee understands that there is considerable
controversy over proposed federal telecommunications standards
being promulgated by the GSA for the acquisition of Land Mobile
Radio systems. It is unclear if these standards are being
developed to dictate the acquisition of specific technology or
the acquisition of certain performance standards. The Committee
hopes that GSA is pursuing performance standards, as directed
by the Federal Acquisition Streamlining Act of 1994 (FASA), and
not specific technology. However, the issue is confused by
verbal statements and written correspondence which appear to
contradict each other. Therefore, the Committee requests the
Administrator of General Services review the actions to date
with regards to the development of these standards and report
to the Committee no later than November 1, 1996, on his
analysis of the process being pursued by the GSA. Additionally,
if GSA plans to issue standards quickly in an attempt to ``get
in under the wire'' and avoid requirements of FASA, it should
immediately suspend action on the drafting and discussion of
the standards as these actions are causing turmoil and
confusion in the acquisition community.
perrine primate center
The Committee understands that the NIH is considering
excessing the Perrine Primate Center. The best use of this
facility is as a site for medical research based on non-human
primates and animal husbandry which benefits the public health.
If and when control of this facility passes to GSA, the
Committee directs GSA to maintain the best use for the facility
and take into account the public benefit which has accrued and
will continue to accrue from the current research, education,
and training use at the site.
office of information technology
The Committee is concerned that the Office of Information
Technology may not be reviewing procurement requests as it has
been tasked to do under various Federal procurement reform
legislation. For example, although the Committee delegated to
the Internal Revenue Service procurement authority for the Tax
Systems Modernization (TSM) program, prior to this delegation,
the Office of Information Technology had not been providing the
level of oversight necessary for a program this size.
While the Office of Information Technology had reviewed TSM
requests for over eight years, it took no action to intervene
when it was becoming evident that the IRS effort was far off
course. The Office of Information Technology routinely granted
delegation authority for procurement requests when the IRS had
not provided a plan for how the equipment would be used or how
it would be integrated into the TSM effort. By the time the GSA
considered suspending the IRS's delegation authority, the
program was out of control and Congress was required to step in
with program direction.
The Committee hopes that with the new Chief Information
Officer, the GSA's Office of Information Technology will be in
a position to exercise more diligence when reviewing
procurement requests.
office of inspector general
Appropriation, fiscal year 1996 to date................. $33,274,000
Budget estimate, fiscal year 1997....................... 33,863,000
Recommended in the bill................................. 33,274,000
Bill compared with:
Appropriation, fiscal year 1996.....................................
Budget estimate, fiscal year 1997................... -589,000
mission
This appropriation provides agencywide audit and
investigative functions to identify and correct management and
administrative deficiencies within GSA which create conditions
for existing or potential instances of fraud, waste and
mismanagement. The audit function provides internal audit and
contract audit services. Contract audits provide professional
advice to GSA contracting officials on accounting and financial
matters relative to the negotiation, award, administration,
repricing, and settlement of contracts. Internal audits review
and evaluate all facets of GSA operations and programs, test
internal control systems, and develop information to improve
operating efficiencies and enhance customer services. The
investigative function provides for the detection and
investigation of improper and illegal activities involving GSA
programs, personnel, and operations.
form analysis process
The Committee is very pleased that the Office of the
Inspector General assisted the General Services Administration
during the FORM analysis process. The IG transformed itself
from an organization that reacts only after activities are
implemented to a pro-active organization that helped identify
areas of concern during review of activities to be undertaken
in the future. This effort was of great benefit to the GSA and
a model for additional ways in which Inspectors General can
assist in developing a Federal government that operates more
efficiently.
allowances and office staff for former presidents
Appropriation, fiscal year 1996 to date................. $2,181,000
Budget estimate, fiscal year 1997....................... 2,180,000
Recommended in the bill................................. 2,180,000
Bill compared with:
Appropriation, fiscal year 1996..................... -1,000
Budget estimate, fiscal year 1997...................................
mission
This appropriation provides support consisting of pensions,
office staffs, and related expenses for former Presidents
Gerald R. Ford, Jimmy Carter, Ronald Reagan and George Bush and
for pension and postal franking privileges for the widow of
former President Lyndon B. Johnson. Also, this appropriation is
authorized to provide funding for security and travel related
expenses for each former President and the spouse of a former
President pursuant to Section 531 of Public Law 103-329. As of
October 1, 1998, pursuant to Public Law 103-123, support will
be limited to pensions only for these individuals, including
anyone who may become a surviving spouse of these former
Presidents. Support for future former Presidents or their
surviving spouse will also be limited to pensions only
beginning five years after leaving office.
expenses, presidential transition
Appropriation, fiscal year 1996 to date.................................
Budget estimate, fiscal year 1997....................... $5,600,000
Recommended in the bill................................. 5,600,000
Bill compared with:
Appropriation, fiscal year 1996..................... +5,600,000
Budget estimate, fiscal year 1997...................................
mission
Funds are appropriated in accordance with the Presidential
Transition Act of 1963, as amended, to provide for an orderly
transfer of executive leadership. New appropriations are
generally requested in Presidential election years.
In the case where the President-elect is the incumbent
President or in the case where the Vice President-elect is the
incumbent Vice President, there shall be no expenditure of
funds for the provision of services and facilities to such
incumbent under this Act, and any funds appropriated for such
purposes shall be returned to the general funds of the
Treasury.
general provisions--general services administration
Section 401. The Committee continues the provision
providing for the crediting of amounts received as Federal
agency rental payments to the Federal Buildings Funds.
Sec. 402. The Committee continues the provision providing
funds for the hire of motor vehicles.
Sec. 403. The Committee continues the provision providing
that funds made available for activities of the Federal
Buildings Fund may be transferred between appropriations.
Sec. 404. The Committee inserts this provision repealing
Section 10 of Public Law 100-440 which sets a limit on the
number of employees in the FPS.
Sec. 405. The Committee continues the provision limiting
funding for courthouse construction which do not meet certain
standards of a capital improvement plan.
Sec. 406. The Committee modifies the provision authorizing
GSA to accept and retain income to offset the cost of the
flexiplace work telecommuting centers.
Sec. 407. The Committee inserts this provision providing no
funds be used to implement a plan for the Ronald Reagan
Building which would permit the Woodrow Wilson Center to pay
less than the rate per square foot which is paid by other
Federal entities.
Sec. 408. The Committee inserts this provision providing no
funds may be used to increase the amount of occupiable square
feet, provide cleaning services, security enhancements, or any
other service usually provided, to any agency which does not
pay the amount requested by the Administration.
Sec. 409. The Committee inserts this provision ensuring the
materials used for the facade on the United States Courthouse
Annex, Savannah, Georgia project are compatible with the
existing building.
Sec. 410. The Committee has inserted this new provision
which allows the Administrator of General Services to retain
the proceeds for the sales of real property for expenditure on
any future real property activities.
John F. Kennedy Assassination Records Review Board
Appropriation, fiscal year 1996 to date................. $2,150,000
Budget estimate, fiscal year 1997....................... 2,150,000
Recommended in the bill................................. 2,150,000
Bill compared with:
Appropriation, fiscal year 1996.....................................
Budget estimate, fiscal year 1997...................................
mission
The John F. Kennedy Assassination Records Review Board was
established to oversee an effort of enormous scope within a
three year period. The Board is charged with locating and
securing all records which relate to the assassination of
President Kennedy. These records include those of at least
fifteen Federal agencies, previous official investigation, the
Presidential libraries, and many small governmental and private
repositories throughout the country.
The purpose of the Board is to ensure the efficient, timely
and full disclosure of these records to the American public.
This effort is seen as perhaps the last opportunity to clear up
the many lingering doubts and questions surrounding the
assassination of President Kennedy.
Fiscal year 1997 is the Board's third and final year, and
it will issue a final report upon its termination.
TERMINATION COSTS
The JFK Assassination Records Review Board, as authorized
by P.L. 102-526, is mandated to identify, secure and make
available all records related to the assassination of President
Kennedy. By law, the Board has until October 1, 1996 to fulfill
its mandate, plus an additional year in the event that the
Board has not completed its work. The Board anticipates full
scale operations through July of 1997, issuing its final
recommendations, and proceeding with an orderly shutdown.
The Committee has included the final appropriation for the
Review Board with the full understanding that no additional
funds will be required to meet the statutory obligations of the
Board. The Committee commends the Board for completing its work
within the authorized time frame.
Merit Systems Protection Board
salaries and expenses
Appropriation, fiscal year 1996 to date................. $24,549,000
Budget estimate, fiscal year 1997....................... 24,549,000
Recommended in the bill................................. 23,297,000
Bill compared with:
Appropriation, fiscal year 1996..................... -1,252,000
Budget estimate, fiscal year 1997................... -1,252,000
mission
The Merit Systems Protection Board performs the
adjudicatory functions necessary to maintain the civil service
merit system. These include hearing appeals on adverse actions,
reduction-in-force actions, and retirement. The Board reports
to the President on whether merit systems are sufficiently free
from prohibited personnel practices to protect the public
interest.
recommendation
The Committee concurs with the Administration's request,
except for the denial of proposed expenditures of $1,252,000
for merit systems studies. The Committee is a aware of the fact
that MSPB is authorized to perform occasional studies of the
federal workforce and encourages it to do so. Nevertheless, the
Committee believes the MSPB should respond to specific
information requests from the Congress or the Administration on
an item of interest, rather than maintain a permanent staff for
ongoing studies. The occasional work can be completed through
contract with a think tank, non-profit organization or
consulting firm.
National Archives and Records Administration
operating expenses
Appropriation, fiscal year 1996 to date................. $199,633,000
Budget estimate, fiscal year 1997....................... 196,964,000
Recommended in the bill................................. 195,109,000
Bill compared with:
Appropriation, fiscal year 1996..................... -4,524,000
Budget estimate, fiscal year 1997................... -1,855,000
mission
The National Archives and Records Administration provides
for basic operations dealing with management of the
Government's archives and records, operation of Presidential
libraries, and for the review for declassification of
classified security information.
Management at the National Archives and Records Administration (NARA)
The NARA's role as national historian has emphasized the
acquisition of records, almost to the exclusion of sound
management principles. The Committee is pleased that current
Archivist brings broad management experience to NARA, and
believes his greatest challenge will be to marry the role of
the historian with the role of the manager. The Committee urges
the NARA to change its deep rooted culture of collecting and
retaining everything and focus on how to better manage that
which it collects and retains.
The Committee is very pleased that the Archivist has begun
a corrective process with development of a strategic plan.
According to NARA, this plan will address areas of concern and
plans to correct any deficiencies. The Committee looks forward
to reviewing the plan.
Electronic Records
The NARA is ill-equipped to deal with its current
substantial holding of electronic records and the reality of a
future explosion of such records. NARA has managed to put on-
line only limited indexing information to some of its holdings
and services.
The NARA has not obligated the $4,500,00 made available in
fiscal year 1996 for expansion of Internet applications because
it does not yet have an Information Resource Management (IRM)
plan, or data standards. Furthermore, its internal support
systems are inadequate and in need of upgrades and equipment.
The Committee is determined that all agencies wishing to
pursue expanded use of technology must first prepare a solid
blueprint for design, development, acquisition, and
implementation. The Committee appreciates the fact that the new
Archivist at NARA withheld the temptation to put together a
less than adequate plan simply for the opportunity to spend the
$4,500,000 appropriated. The Committee looks forward to
receiving a balanced and detailed plan from NARA on expansion
in the area of electronic records.
classification reform
The Committee directs the Archivist of the United States to
submit to the Committee by January 1, 1997, an update of agency
compliance with the declassification requirements of Section
3.4 of E.O. 12958, ``Classified National Security
Information,'' issued by the President on April 17, 1995. The
Committee notes that section 5.6(c)(8) of E.O. 12598 requires
agencies to account for the costs of their security
classification, including the costs incurred by contractors in
performing classified work for the Government. The Committee
directs the Archivist to submit by May 1, 1997, an agency-by-
agency report on fiscal year 1996 security classification costs
(including contractor costs) and an estimate of fiscal year
1997 security classification costs to the House Committee on
Appropriations.
rescission
The Committee has included language rescinding $4,500,000
from funds appropriated in fiscal year 1996 for cataloging,
archiving and digitizing activities because the National
Archives and Records Administration has not developed a plan as
to how these funds will be spent.
enhancement of exhibitions at archives ii facility
The NARA is encouraged to continue planning and
implementing public displays and events at the Archives II
facility. The Committee continues to hope that ongoing displays
of the White House Gift Collection can be arranged at Archives
II.
repairs and restoration
Appropriation, fiscal year 1996 to date................. $1,500,000
Budget estimate, fiscal year 1997....................... 2,750,000
Recommended in the bill................................. 9,500,000
Bill compared with:
Appropriation, fiscal year 1996..................... +8,000,000
Budget estimate, fiscal year 1997................... +6,750,000
mission
This account provides for the repair, alteration,and
improvement of Archives facilities and Presidential libraries
nationwide. It will better enable the National Archives to
maintain its facilities in proper condition for public
visitors, researchers, and employees in NARA facilities, and
also maintain the structural integrity of the buildings.
truman library
The Committee has provided up to $8,000,000 for the repair
and renovation of the Truman Library in Independence, Missouri.
The Committee understands that private funds totaling
$5,000,000 have been already raised to support the renovation
of this facility. The Committee requests the National Archives
to submit a plan for the expenditure of the federal funds
before any funds are obligated.
archives i renovation
The Archives I facility in Washington, DC, is badly
deteriorated. The NARA's primary solution is full renovation
for Archives I plus expansion of Archives II to accommodate the
displaced records, at a total cost of $285,700,000. The NARA
fallback solution involves renovating only the Rotunda at a
cost of $12,100,000. It is the Rotunda that serves as the
repository for the Constitution, Bill of Rights, and the
Declaration of Independence. Neither solution is practical.
NARA's primary solution is far too costly for what it gets in
return: two-thirds less storage space at a cost significantly
higher than new construction. Remodeling only the Rotunda still
leaves NARA with a deteriorating building. Additionally, NARA
has not considered the possibility of reducing the amount and
type of information archived at this facility and increasing
the amount of material permanently moved to the Archives II
facility.
Therefore, the Committee directs the NARA to develop a plan
which will address health and safety concerns, protection of
the Constitution, Bill of Rights, and the Declaration of
Independence, and the expansion of space for the public. The
plan should include total cost estimates and schedules for
completion of work. The plan should be submitted to the
Committee no later than March 1, 1997.
national historical publications and records commission
grants program
Appropriation, fiscal year 1996 to date................. $5,000,000
Budget estimate, fiscal year 1997....................... 4,000,000
Recommended in the bill................................. 4,000,000
Bill compared with:
Appropriation, fiscal year 1996..................... -1,000,000
Budget estimate, fiscal year 1997...................................
mission
This program provides for grants funding that the
Commission makes, nationwide, to preserve and publish records
that document American history. Administered within the
National Archives, which preserves Federal records, the NHPRC
helps state, local, and private institutions preserve non-
Federal records, helps publish the papers of major figures in
American history, and helps archivists and records managers
improve their techniques, training, and ability to serve a
range of information users.
Office of Government Ethics
salaries and expenses
Appropriation, fiscal year 1996 to date................. $7,776,000
Budget estimate, fiscal year 1997....................... 8,078,000
Recommended in the bill................................. 8,078,000
Bill compared with:
Appropriation, fiscal year 1996..................... +302,000
Budget estimate, fiscal year 1997...................................
mission
The Office of Government Ethics (OGE) provides overall
direction of executive branch policies designed to prevent
conflicts of interest and insure high ethical standards. The
OGE discharges its responsibilities to preserve and promote
public confidence in the integrity of executive branch
officials by developing rules and regulations pertaining to
conflicts of interest, post employment restrictions, standards
of conduct, and public and confidential financial disclosure in
the executive branch; by monitoring compliance with the public
and confidential financial disclosure requirements of the
Ethics in Government Act of 1978 and the Ethics Reform Act of
1989, to determine possible violations of applicable laws or
regulations and recommending appropriate corrective action; by
consulting with and assisting various officials in evaluating
the effectiveness of applicable laws and the resolution of
individual problems; by preparing formal advisory opinions,
informal letter opinions, policy memoranda, and Federal
Register entries on how to interpret and comply with the
requirements on conflicts of interest, post employment,
standards of conduct, and financial disclosure; and by issuing
and amending regulations implementing the procurement integrity
provisions relating to negotiating for employment, post
employment, and gratuities in the Office of Federal Procurement
Policy Act Amendments of 1988, P.L. 100-679.
Office of Personnel Management
salaries and expenses
Appropriation, fiscal year 1996 to date................. $88,000,000
Budget estimate, fiscal year 1997....................... 86,576,000
Recommended in the bill................................. 86,576,000
Bill compared with:
Appropriation, fiscal year 1996..................... -1,424,000
Budget estimate, fiscal year 1997...................................
mission
The Office of Personnel Management (OPM) is the Government
agency responsible for management of Federal human resource
policy and oversight of the merit civil service system.
Although individual agencies are increasingly responsible for
personnel operations, OPM provides a Governmentwide policy
framework for personnel matters, advises and assists agencies
(often on a reimbursable basis), and ensures that agency
operations are consistent with requirements of law, with
emphasis on such issues as veterans preference. OPM oversees
examining of applicants for employment, issues regulations and
policies on hiring, classification and pay, training,
investigations, and many other aspects of personnel management,
and operates a reimbursable training program for the
Government's managers and executives. OPM is also responsible
for administering the retirement, health benefits and life
insurance programs concerning most Federal employees, retired
Federal employees, and their survivors.
hiring treasury law enforcement
The Committee is concerned regarding disparate hiring
practices at different federal law enforcement agencies. In
particular, the Customs Service, the Bureau of Alcohol, Tobacco
and Firearms, and the Criminal Investigation Division of the
Internal Revenue Service may be at a competitive disadvantage
relative to other major law enforcement agencies that are
exempt from the competitive hiring process. For that reason,
the Committee directs the Secretary of the Treasury and the
Director of the Office of Personnel Management to implement,
not later than December 31, 1996, measures to assure that all
criminal investigator positions (series 1811) are subject to
hiring, conversion, and retention procedures similar to those
currently in place for the United States Secret Service.
alternative dispute resolution
In the fiscal year 1996 report, this Committee expressed a
concern that the current system of five separate agencies
adjudicating employee grievances is confusing and wasteful, and
requested that the Administration investigate the process and
report back to the Committee with recommendations for
improvement. In that report, the Administration disagreed with
the Committee. It found that the system is not broken, that the
major problems with the system, to the extent that they exist,
lie with the various Federal agencies, not with MSPB, FLRA,
OSC, OPM and EEOC. The Administration went on to propose some
minor modifications to legislation that would alleviate certain
overlapping jurisdictions.
After reviewing the report, the Committee cannot help but
disagree with the Administration's conclusions. Numerous
surveys have shown that the majority of federal managers and
employees are confused and intimidated by the grievance system.
The fact that a small number of personnel specialists find a
certain logic to it means nothing if few people bother to learn
about it or use it. The system must be reformed and streamlined
from top to bottom. It must be made less legalistic and
bureaucratic, the rights and responsibilities of both employees
and managers must be made clearer to both, and the pace of
adjudication must be made much faster. This means fewer layers
of appeal both within line agencies as well as within the
adjudicatory agencies.
Nevertheless, the Committee does agree with the
Administration in one critical observation: most of the problem
lies within line agencies, not the grievance agencies. Many
line agencies have established lengthy internal appeals
processes, duplicating much of the work of MSPB and the others.
This sort of redundancy adds nothing to the process. The
Committee therefore directs the Office of Personnel Management
to take all necessary steps to eliminate internal agency
appeals processes and substitute them with Alternative Dispute
Resolution processes to the extent feasible.
With regard to consolidation of the adjudicatory agencies,
the Committee finds that moving boxes around an organizational
chart without changing underlying law will do nothing to make
the process faster or more efficient. The Appropriations
Committee therefore proposes no organizational changes of its
own, and instead awaits action by the authorizing committee of
jurisdiction, the Government Reform Committee, to change the
underlying law.
voting rights act
The Committee includes language proposed by the
Administration allowing federal employees acting as Voting
Rights Act observers to receive per diem at their permanent
duty station. Many qualified employees who serve as observers
and are required to spend long hours at a hotel or other
facility serving as a headquarters may not be paid per diem
because the facility is in the city designated as their
permanent duty station. Authorization for per diem and
subsistence allowances makes it feasible for these qualified
employees to serve as observers in their local areas and allows
the Government to discontinue the practice of recruiting
observers from distant locations and assuming the burden of
significant travel costs.
federal prescription drug plans
Recently a number of significant benefit changes have been
implemented under the Federal Employees Health Benefit Program
(FEHBP), including a 20 percent copayment on retail pharmacy
prescriptions provided under the Blue Cross/Blue Shield plan.
The Committee is aware of concerns that there has been
inadequate notice of changes and that the prescription coverage
provision might well discourage use of local retail pharmacies.
The Committee hopes that OPM will continue to encourage all
FEHBP plans to find alternative savings and hold down premiums.
Much of the savings from the new prescription coverage comes
directly from the retail copayments. OPM and its carriers
should consider other commonly-used cost management options
such as full utilization of drug manufacturer rebates and
generic drug substitution.
Finally, the Committee directs OPM to require a standard,
easily readable notice on the front of each plan brochure that
says ``FOR CHANGES IN BENEFITS SEE PAGE xxx'' or some similar
message directing readers to the page where changes are
highlighted.
senior executive pay
In past years, members of the Senior Executive Service,
Senior Level, Senior Technical, Board of Contract Appeal Judges
and other similarly situated federal employees have not
received the same comparability raise granted to all other
federal employees. The Committee recognizes that during this
time of government reorganization and downsizing, it is
important that the career executive leadership, which bears the
burden of leading their agencies through this difficult period,
be treated in a fair and equitable manner. Therefore, the
Committee urges the President to provide the same comparability
and locality pay increases announced for all other employees to
these career executives in January, 1997.
providing non-public information outside of the government
The Committee understands that the Office of Personal
Management provided the home addresses or designated mailing
addresses of bargaining unit members to its labor unions. The
Committee wishes to draw OPM's attention to section 514 of
Public Law 104-52, the Treasury, Postal Service and General
Government Appropriations Act of 1996, which states:
None of the funds made available in this Act may be
used to provide any nonpublic information such as
mailing or telephone lists to any person or any
organization outside of the Federal government without
the approval of the House and Senate Committees on
Appropriations.
The Committee received no notice of this action, much less
an opportunity to disapprove any such action. The Committee
directs the Office of Personnel Management to explain, in
writing, why it failed to provide any notification.
limitation on administrative expenses
The Committee provides $93,486,000 as a limitation on
administrative expenses on trust activities, $1,250,000 below
the Administration's request of $94,736,000. The Committee
provided $10,456,000 for the FERS Automated Processing System
in fiscal year 1995, but OPM only obligated $7,945,000. In
fiscal year 1996, the Committee provided $11,300,000, but OPM
only obligated $9,621,000. For fiscal year 1997, OPM requests a
new limitation of $3,500,000. The Committee provides only
$2,250,000 for development of the FERS automated processing
system until OPM exhausts expenditures under the existing
pipeline.
office of inspector general
Appropriation, fiscal year 1996 to date................. $4,009,000
Budget estimate, fiscal year 1997....................... 960,000
Recommended in the bill................................. 960,000
Bill compared with:
Appropriation, fiscal year 1996..................... -3,049,000
Budget estimate, fiscal year 1997...................................
mission
This appropriation provides agencywide audit,
investigative, evaluation, and inspection functions to identify
management and administrative deficiencies which may create
conditions for fraud, waste and mismanagement. The audits
function provides internal agency audit, insurance audit, and
contract audit services. Contract audits provide professional
advice to agency contracting officials on accounting and
financial matters regarding the negotiation, award,
administration, repricing, and settlement of contracts.
Internal audits review and evaluate all facets of agency
operations, including financial statements. Evaluation and
inspection services provide detailed technical evaluations of
agency operations. Insurance audits review the operations of
health and life insurance carriers, health care providers, and
insurance subscribers. The investigative function provides for
the detection and investigation of improper and illegal
activities involving programs, personnel, and operations.
government payment for annuitants, employees health benefits
Appropriation, fiscal year 1996 to date................. $3,746,337,000
Budget estimate, fiscal year 1997....................... 4,059,000,000
Recommended in the bill................................. 4,059,000,000
Bill compared with:
Appropriation, fiscal year 1996..................... +312,663,000
Budget estimate, fiscal year 1997...................................
mission
This appropriation covers: (1) the Government's share of
the cost of health insurance for 1,771,000 annuitants as
defined in sections 8901 and 8906 of title 5, United States
Code; (2) the Government's share of the cost of health
insurance for about 12,000 annuitants (who were retired when
the Federal employees health benefits law became effective), as
defined in the Retired Federal Employees Health Benefits Act of
1960; and (3) the government's contribution for payment of
administrative expenses incurred by the Office of Personnel
Management in administration of the act.
government payment for annuitants, employees life insurance
Appropriation, fiscal year 1996 to date................. $32,647,000
Budget estimate, fiscal year 1997....................... 33,000,000
Recommended in the bill................................. 33,000,000
Bill compared with:
Appropriation, fiscal year 1996..................... +353,000
Budget estimate, fiscal year 1997...................................
mission
This appropriation finances the Government's share of
premiums, which is one-third the cost, for basic life insurance
for annuitants retiring after December 31, 1989.
payment to civil service retirement and disability fund
Appropriation, fiscal year 1996 to date................. $7,945,998,000
Budget estimate, fiscal year 1997....................... 7,989,000,000
Recommended in the bill................................. 7,989,000,000
Bill compared with:
Appropriation, fiscal year 1996..................... +43,002,000
Budget estimate, fiscal year 1997...................................
mission
This appropriation provides for payment of annuities,
including the payment of annuities under special acts for
persons employed on the construction of the Panama Canal or
their widows and widows of employees of the Lighthouse Service;
payment of government share of retirement costs financing the
current year's costs of the unfunded liability resulting from
any statute authorizing new or liberalized benefits, extension
of retirement coverage, or pay increases; transfers for
interest on unfunded liability and payment of military service
annuities covering interest on the unfunded liability and
annuity disbursements for military service; payments for spouse
equity providing survivor annuities to eligible former spouses
of annuitants who died between September 1978 and May 1986 and
did not elect survivor coverage, and; transfers for payment of
FERS supplemental liability covering annual amortization
payments financing supplemental liabilities for FERS.
revolving fund
Appropriation, fiscal year 1996 to date.................................
Budget estimate, fiscal year 1997....................... $5,000,000
Recommended in the bill................................. 4,755,000
Bill compared with:
Appropriation, fiscal year 1996..................... +4,755,000
Budget estimate, fiscal year 1997................... -245,000
mission
This account has been established to allow OPM to accept
reimbursement from other federal agencies for specified
personnel services.
recommendation
The Committee provides $4,755,000 in budget authority to
help reduce the accumulated Revolving Fund deficit resulting
from ten years of successive losses. This amount is intended to
offset an outstanding deficit of $33,700,000, and not to
provide any new services.
general provisions--office of personnel management
Section 421. The Committee included, at the request of the
Administration, a modification to title 5, United States Code,
which authorizes OPM to accept reimbursement for personnel
management services provided to revolving funds, government
sponsored enterprises, and other ``nonappropriated fund
instrumentalities''. This is a technical correction that allows
OPM to provide the same reimbursable service that it offers
most federal agencies to these other entities.
Office of Special Counsel
salaries and expenses
Appropriation, fiscal year 1996 to date................. $7,840,000
Budget estimate, fiscal year 1997....................... 8,311,000
Recommended in the bill................................. 7,840,000
Bill compared with:
Appropriation, fiscal year 1996.....................................
Budget estimate, fiscal year 1997................... -471,000
mission
The Office of Special Counsel: (1) investigates Federal
employee allegations of prohibited personnel practices
(including reprisal for whistleblowing) and, when appropriate,
prosecutes before the Merit Systems Protection Board; (2)
provides a channel for whistleblowing by Federal employees; and
(3) enforces the Hatch Act. The Office may transmit
whistleblower allegations to the agency head concerned and
require an agency investigation and a report to the Congress
and the President when appropriate.
The Act to Reauthorize the Office of Special Counsel and
for Other Purposes (P.L. 103-424, October 29, 1994) expanded
the Office of Special Counsel's responsibility. The Act
extended all protections of the Office to approximately 80,000
medical employees of the Department of Veterans Affairs and
whistleblower protections to certain employees of government
corporations which employ 82,000 workers.
recommendation
The Committee denies the increase of 7 full time equivalent
employees between fiscal 1996 and 1997.
reauthorization for the office of special counsel
On October 29, 1994, President Clinton signed into law H.R.
2970, legislation reauthorizing the Office of Special Counsel
(P.L. 103-424). In his signing statement, the President
identified constitutional concerns about Section 9 of the
legislation, allowing an arbitrator to order an agency to take
disciplinary action against a federal employee. The President's
signing statement drew attention to these questions and noted
that he was instructing agencies ``to follow appropriate
procedures to protect the constitutional rights of such Federal
employees and to consider the need for remedial legislation.''
The Administration has not submitted any proposal for remedial
legislation. The Committee directs the Administration to submit
its proposal for remedial legislation to the appropriate
authorizing committees as well as the House and Senate
Committees on Appropriations.
United States Tax Court
salaries and expenses
Appropriation, fiscal year 1996 to date................. $33,269,000
Budget estimate, fiscal year 1997....................... 34,293,000
Recommended in the bill................................. 33,269,000
Bill compared with:
Appropriation, fiscal year 1996.....................................
Budget estimate, fiscal year 1997................... -1,024,000
mission
The bulk of the Court's work is the trial and adjudication
of controversies involving deficiencies in income, estate, and
gift taxes. The Court also has jurisdiction to redetermine
deficiencies in certain excise taxes; to issue declaratory
judgments in the areas of qualification of retirement plans,
exemption of charitable organizations and the status of certain
governmental obligations; and to decide certain cases involving
disclosure of tax information by the Commissioner of Internal
Revenue.
TITLE V--GENERAL PROVISIONS
This Act
Section 501. The Committee continues the provision limiting
the expenditure of funds to the current year unless expressly
provided in this Act.
Sec. 502. The Committee continues the provision limiting
the expenditure of funds for consulting services under certain
conditions.
Sec. 503. The Committee continues the provision regarding
employment of certain categories of Federal employees.
Sec. 504. The Committee continues the provision prohibiting
the use of funds to engage in activities which would prohibit
the enforcement of section 307 of the 1930 Tariff Act.
Sec. 505. The Committee continues the provision prohibiting
the transfer of control over the Federal Law Enforcement
Training Center.
Sec. 506. The Committee continues the provision prohibiting
the use of funds for certain propaganda purposes.
Sec. 507. The Committee continues the provision prohibiting
the prevention of certain United States Postal Service
employees from contacting their member of Congress.
Sec. 508. The Committee continues the provision authorizing
donations of supplies and equipment to the Federal Executive
Institute.
Sec. 509. The Committee continues the provision authorizing
Secret Service to accept donations regarding protection of
former Presidents.
Sec. 510. The Committee continues the provision concerning
employment rights of Federal employees who return to their
civilian jobs after assignment with the Armed Forces.
Sec. 511. The Committee continues the provision prohibiting
the use of funds to provide any non-public mailing lists to any
person or organization outside of the Federal Government.
Sec. 512. The Committee continues the provision concerning
compliance with Buy American Act.
Sec. 513. The Committee continues the provision concerning
prohibition of contracts which use certain goods not made in
America.
Sec. 514. The Committee continues the provision concerning
prohibition of contracts.
Sec. 515. The Committee continues the provision providing
that fifty percent of unobligated balances may remain available
for certain purposes.
Sec. 516. The Committee continues the provision prohibiting
any increases in the travel object classification for any
agency funded in this Act.
Sec. 517. The Committee continues and modifies the
provision specifying the authority of the special police
officers of the Bureau of Engraving and Printing and the U.S.
Mint. The Committee has made this provision permanent law.
Sec. 518. The Committee continues the provision prohibiting
funds in this Act to be used for abortions.
Sec. 519. The Committee continues the provision providing
that Section 518 will not apply when the life of the mother
would be endangered, or that the pregnancy is the result of an
act of rape or incest.
Sec. 520. The Committee continues the provision prohibiting
implementation of an ATF ruling pertaining to the citric acid
content of vodka.
Sec. 521. The Committee inserts this provision providing
personal services contractors employed by the Department of the
Treasury to be considered as Federal employees for purposes of
making available federal employee health and life insurance.
Sec. 522. The Committee inserts this provision reducing the
number of political appointees at the U.S. Mint.
Sec. 523. The Committee inserts this provision which allows
for the minting of 24 karat gold coins.
Sec. 524. The Committee inserts this provision which allows
for the minting of platinum coins.
Sec. 525. The Committee has included a new provision that
allows three agencies under its jurisdiction to provide
voluntary separation incentive payments (``buyouts'') to its
employees to facilitate downsizing. Buyouts have several
advantages over reductions in force: they do not harm agency
morale to the same extent, avoid the ``bumping'' phenomena in
which the last hired are always the first fired, and can cost
less if they are done correctly.
The Committee is concerned that previous buyout efforts
have been somewhat haphazard. Some agencies have offered
buyouts to personnel that they intend to keep while not
offering them to people whose positions will be eliminated.
The Committee intends to ensure that no such abuses will
occur under this authority. Every buyout offer must be
carefully and specifically targeted by geographic location,
position, grade and organizational entity. Buyouts must be used
only to the extent that they help reduce the size of the
agency. Furthermore, the Committee is aware that agencies not
under its jurisdiction have attempted to abuse prior buyout
authority or extend such authority based on highly creative,
but erroneous, legal reasoning.
It is the Committee's intent that buyouts only be completed
as a consequence of the agency's strategic plan, that they be
completed by February 1, 1997, that this provision will not be
repeated in the future and that it save budgetary resources.
Sec. 526. The Committee has inserted this new provision
which states laws governing procurement and public contracts
shall not be applicable to the Bureau of Engraving and Printing
(BEP) programs and operations. The authorities of this
provision expire on September 30, 1999.
Sec. 527. The Committee has inserted this new provision
which authorizes the establishment of a demonstration project
pursuant to Title 5 authorities to test alternative management
systems of the U.S. Mint.
Sec. 528. The Committee includes a new provision to
reimburse the attorney fees and costs incurred by the former
employees of the White House Travel Office whose employment in
that office was terminated on May 19, 1993. Upon submission of
documentation verifying the former employees' attorney fees and
costs incurred as a result of that termination, the Secretary
of the Treasury shall reimburse such fees and costs out of
funds appropriated to departmental offices, salaries and
expenses.
Sec. 529. The Committee includes a new provision which
provides a restriction on the use of funds for the White House
to request official background reports without the written
consent of the individual who is the subject of the report.
TITLE VI--GOVERNMENTWIDE GENERAL PROVISIONS
Departments, Agencies, and Corporations
Section 601. The Committee continues the provision
authorizing agencies to pay travel costs of the families of
Federal employees to foreign duty to return to the United
States in the event of a death or a life threatening illness of
the employee.
Sec. 602. The Committee continues the provision requiring
agencies to administer a policy designed to ensure that all of
its workplaces are free from the illegal use of controlled
substances.
Sec. 603. The Committee continues the provision authorizing
reimbursement for travel, transportation, and subsistence
expenses incurred for training classes, conferences, or other
meetings in connection with the provision of child care
services to Federal employees.
Sec. 604. The Committee continues the provision regarding
price limitations on vehicles to be purchased by the Federal
Government.
Sec. 605. The Committee continues the provision allowing
funds made available to agencies for travel to also be used for
quarters allowances and cost-of-living allowances.
Sec. 606. The Committee continues the provision prohibiting
the Government, with certain specified exceptions, from
employing non-U.S. citizens whose posts of duty would be in the
continental U.S.
Sec. 607. The Committee continues the provision ensuring
that agencies will have authority to pay GSA bills for space
renovation and other services.
Sec. 608. The Committee continues the provision allowing
agencies to finance the costs of recycling and waste prevention
programs with proceeds from the sale of materials recovered
through such programs.
Sec. 609. The Committee continues the provision providing
that funds may be used to pay rent and other service costs in
the District of Columbia.
Sec. 610. The Committee continues the provision restricting
the President's recess appointment power.
Sec. 611. The Committee continues the provision authorizing
agencies with delegated authority to make direct expenditures
to operate, maintain, and repair its facilities using funds
otherwise available to make rental payments to GSA.
Sec. 612. The Committee continues the provision allowing
Federal agencies to use foreign credits for any purpose for
which appropriations are made in the current fiscal year.
Sec. 613. The Committee continues the provision precluding
the financing of groups by more than one Federal agency absent
prior and specific statutory approval.
Sec. 614. The Committee continues the provision authorizing
the Postal Service to employ guards and give them the same
special police powers as GSA guards.
Sec. 615. The Committee continues the provision prohibiting
the use of funds for enforcing regulations disapproved in
accordance with the applicable law of the U.S.
Sec. 616. The Committee continues the provision limiting
the pay increases of certain prevailing rate employees.
Sec. 617. The Committee continues the provision limiting
the amount of funds that can be used for redecoration of
offices under certain circumstances.
Sec. 618. The Committee continues the provision prohibiting
the expenditure of funds for the acquisition of additional law
enforcement training facilities.
Sec. 619. The Committee continues the provision to allow
for interagency funding of national security and emergency
telecommunications initiatives.
Sec. 620. The Committee continues the provision requiring
agencies to certify that a Schedule C appointment was not
created solely or primarily to detail the employee to the White
House.
Sec. 621. The Committee continues the provision requiring
agencies to administer a policy designed to ensure that all of
its workplaces are free from discrimination and sexual
harassment.
Sec. 622. The Committee continues the provision prohibiting
the use of funds for travel expenses not directly related to
official governmental duties.
Sec. 623. The Committee continues the provision requiring
the President to certify that persons responsible for
administering the Drug Free Workplace Program are not
themselves the subject of random drug testing.
Sec. 624. The Committee continues the provision prohibiting
Federal training not directly related to the performance of
official duties.
Sec. 625. The Committee continues the provision prohibiting
the expenditure of funds for implementation of agreements in
nondisclosure policies unless certain provisions are included.
Sec. 626. The Committee continues the provision requiring
mandatory use of FTS2000.
Sec. 627. The Committee inserts the provision extending the
termination date regarding the franchise fund pilot program
included in Public Law 103-356.
Sec. 628. The Committee continues the provision that limits
the Secretary of the Treasury from making loans to foreign
entities unless certain criteria are met.
Sec. 629. The Committee continues and modifies a provision
providing law enforcement credit to law enforcement officers
hired during the three year transition period before FERS was
fully implemented.
Sec. 630. The Committee has inserted a new provision
mandating that federal workers paid as part of this Act may not
receive weekend or night differential pay for hours in which
they did not work.
A 1993 court decision interpreting the leave provisions in
title 5 of the United States Code held that federal employees
who took leave on a Sunday for which they were scheduled to
work (i.e., scheduled to work in advance of the work week) were
entitled to Sunday premium pay even though they did not work.
The General Accounting Office reviewed this practice in a May,
1995 report entitled Sunday Premium Pay: Millions of Dollars in
Sunday Premium Pay Are Paid to Employees on Leave. It surveyed
five agencies--FAA, Customs, the Department of Defense,
Justice, and Veterans Affairs--and concluded that $17.9 million
of the $146.1 million in Sunday premium pay was paid to
employees on leave. The Department of Transportation
Appropriations Act for 1995 prohibited premium pay for
employees on leave within the Department of Transportation.
This provision extends that provision to the entities
appropriated under this Act.
Sec. 631. The Committee inserts as a new provision
regarding lobbying by executive agency personnel.
Sec. 632. The Committee inserts as a new provision the text
of H.R. 782, the ``Federal Employee Representation Improvement
Act'', which allows federal employees to represent the views of
employee organizations like child care centers, health and
fitness organizations, recreation associations, and
professional associations before government agencies. This is a
technical amendment to section 205 of title 18 and is needed to
supersede a November 1994 Department of Justice legal opinion
which prohibits this type of representation.
Sec. 633. The Committee inserts this new provision amending
the disabled child survivor program of the Civil Service
Retirement System by allowing benefits that had been terminated
because of the marriage of the child to be renewed if that
child divorces.
Sec. 634. The Committee has included a new provision
allowing a Federal employee involuntarily separated from
service due to a reduction in force to credit his annual leave
toward meeting minimum age and service requirements, thereby
qualifying such employee to an immediate annuity.
Sec. 635. The one-year ``cooling off'' provisions of
section 207(c) are amended by section 6 of H.R. 3235, the
``Office of Government Ethics Authorization Act of 1996.'' With
that section, SES level 4 employees will not be subject to the
post-employment restrictions of section 207 of title 18, as was
the intention by the 1989 Ethics in Government Act amendments.
This section amends the last clause of the definition of
``senior'' official in Section 207(c)(2)(A)(ii) by tying the
basic rate of pay to a level equal to or greater than that of
Level 5 of the Senior Executive Service.
Section 207(c) of title 18 was amended in 1989 to define
``senior'' officials as those officials serving: (1) in a
position listed on the Executive Schedule; (2) by serving in a
position in the uniformed services ranked O-7 or above; (3) by
serving in particular positions within the White House Office;
(4) or by serving in any position for which the basic rate of
pay is equal to or greater than that of an Executive Level V.
In 1989, this last group (those persons serving in any position
for which the basic rate of pay is equal to or greater than
that of an Executive Level V) included those in the Senior
Executive Service at levels 5 and 6.
This change is necessary because Congress has chosen for
purposes unrelated to post-employment restrictions to freeze
the rates of pay for positions on the Executive Level Schedule.
The rates of pay for positions in the Senior Executive Service
(``SES'') are set by the President through Executive Order. On
January 7, 1996, Executive Order 12984 increased the basic rate
of pay for a SES level 4 employee to an amount above that of an
Executive Level V position. The result of Executive Order 12984
is the unintended consequence of SES level 4 employees subject
to post-employment restrictions originally intended only for
SES level 5 and 6 employees.
The need to add additional language to the TPO
Appropriations is the result of a drafting error in H.R. 3235.
H.R. 3235 ties the basic rate of pay to a level equal to or
greater than that of Level 5 of the Senior Executive Service in
section 207(c)(2)(A)(ii), but failed to change the last line of
subsection 207(e)(6)(B). This language will ensure that the
postemployment restrictions for executive branch employees are
consistent with those of legislative branch employees.
Sec. 636. The Committee has included a new provision
granting authority for Federal Government Agencies to pay a
portion of the professional liability insurance costs incurred
by certain of their employees.
TITLE VII--SUPPLEMENTAL APPROPRIATIONS AND RESCISSIONS FOR THE FISCAL
YEAR ENDING SEPTEMBER 30, 1996
Bureau of Alcohol, Tobacco and Firearms
salaries and expenses
The Bureau of Alcohol, Tobacco and Firearms has
investigated 65 church fires in just 18 months--36 of which
have taken place at predominantly African-American churches.
The largest number of arsons have occurred in South Carolina,
North Carolina, Tennessee and Louisiana; but we have incidents
as far north as New York and as far west as Arizona.
Approximately 135 ATF special agents have been assigned to the
active investigations in the Southeast, and ATF has employed
all of its resources, including National Response Teams,
certified fire investigators and accelerant detecting canines
to investigate these crimes. Although a conspiracy was
uncovered involving at least two fires in South Carolina, no
interstate or national conspiracy has yet been uncovered.
The Committee intends to do everything in its power to stop
these crimes, and has therefore provided $12,011,000 in
supplemental appropriations for fiscal year 1996 under Title
VII of this bill as well as another $12,011,000 in fiscal year
1997 appropriations. Resources will be used for overtime,
travel, offices, phones, reward money, equipment, and any other
legitimate expenditures directly associated with church fire
investigations. These resources may also be used to offset the
cost of joint Federal, state and local task forces working on
these cases.
Internal Revenue Service
information systems
(Rescission)
The Committee has included a rescission of $12,011,000 from
funds made available for tax systems modernization in fiscal
year 1996.
Appropriations Can Be Used Only for the Purposes for Which Made
Title 31 of the United States Code makes clear that
appropriations can be used only for the purposes for which they
were appropriated as follows:
Section 1301. Application.
(a) Appropriations shall be applied only to the objects for
which the appropriations were made except as otherwise provided
by law.
Compliance With House Rules
definition of ``program project and activity'' as provided for by
public law 99-177, the balanced budget and emergency deficit control
act of 1985.
During fiscal year 1997, for purposes of the Balanced
Budget and Emergency Deficit Control Act of 1985 (Public Law
99-177), the following information provides the definition of
the term ``program, project and activity'' for departments and
agencies under the jurisdiction of the Treasury, Postal Service
and General Government Subcommittee. The term ``program,
project and activity'' shall include the most specific level of
budget items identified in the Treasury, Postal Service, and
General Government Appropriations Act, 1987 as passed the House
including the House Report which accompanies that Act. (Under
the above definition, the Federal Building Fund, the Bureau of
Engraving and Printing Fund and other intragovernmental funds
are exempt under section 255(g)(1) of Public Law 99-177.)
Transfer of Funds
Pursuant to clause 1(b), rule X of the House of
Representatives, the following table is submitted describing
the transfer of funds provided in the accompanying bill.
The table shows, by title, department and agency, the
appropriations affected by such transfers.
APPROPRIATION TRANSFERS RECOMMENDED IN THE BILL
----------------------------------------------------------------------------------------------------------------
Account from which transfer is
Account to which transfer is to be made Amount to be made Amount
----------------------------------------------------------------------------------------------------------------
State and local entities...................... 59,000,000 Federal Drug Programs--HIDTA.... 59,000,000
Personnel Management.......................... 93,486,000 Trust fund of the Office of 93,486,000
Personnel Management.
Inspector General, OPM........................ 8,645,000 Appropriate Trust Funds......... 8,645,000
Merit Systems Protection Board................ 2,430,000 Civil service retirement and 2,430,000
disability fund.
U.S. Customs Service.......................... 20,600,000 Automation Enhancement.......... 20,600,000
Office of Professional Responsibility......... 3,000,000 U.S. Customs Service............ 3,000,000
Departmental Offices.......................... 13,000,000 Internal Revenue Service........ 13,000,000
Departmental Offices.......................... 6,500,000 Automation Enhancements......... 6,500,000
Secret Service Acquisition, Construction, 8,200,000 Treasury Buildings and Annex 8,200,000
Improvement and Related Expenses. Repair and Restoration.
Department of Defense......................... 365,400,000 Internal Revenue Service........ 365,400,000
----------------------------------------------------------------------------------------------------------------
Rescission of Funds
In compliance with clause 1(b) of rule X of the House of
Representatives, the Committee reports that it recommends
rescissions in the bill, as follows:
Internal Revenue Service, Information Systems:
Public Law 104-52................................... $12,011,000
Public Law 104-52................................... 100,000,000
Public Law 103-329.................................. 51,685,000
Public Law 102-393.................................. 2,421,000
Public Law 102-141.................................. 20,341,000
National Archives and Records Administration, Operating
Expenses:
Public Law 104-52....................................... 4,500,000
--------------------------------------------------------
____________________________________________________
Total rescissions proposed in bill................ 190,958,000
Compliance With Rule XI, Clause 2(l)(4)
inflationary impact statement
Pursuant to clause 2(l)(4), rule XI of the House of
Representatives, the Committee estimates that enactment of this
bill would have minimal overall inflationary impact on prices
and costs in the operation of the national economy.
five year projections
In compliance with section 308(1)(C) of the Congressional
Budget Act of 1974 (Public Law 93-344), as amended, the
following table contains five-year projections associated with
the budget authority provided in the accompanying bill:
In millions
Outlays:
Budget authority.................................... 23,194
Fiscal year 1997.................................... 20,601
Fiscal year 1998.................................... 11,560
Fiscal year 1999.................................... 413
Fiscal year 2000.................................... 227
Fiscal year 2001 and beyond......................... 197
Compliance With Rule XIII, Cl. 3 (Ramseyer Rule)
In compliance with clause 3 of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
SECTION 203 OF TITLE 3, UNITED STATES CODE
Sec. 203. Personnel, appointment, and vacancies
(a) The United States Secret Service Uniformed Division
shall consist of such number of officers, with grades
corresponding to similar officers of the Metropolitan Police
force, and of such number of privates, with grade corresponding
to that of private of the highest grade in the Metropolitan
Police force, as may be necessary [but not exceeding twelve
hundred in number].
* * * * * * *
----------
TITLE 31, UNITED STATES CODE
* * * * * * *
Subtitle II--The Budget Process
* * * * * * *
CHAPTER 13--APPROPRIATIONS
* * * * * * *
Subchapter I--General
* * * * * * *
[Sec. 1306. Use of foreign credits
[Foreign credits owed to or owned by the Treasury are not
available for expenditure by agencies except as provided
annually in general appropriation laws.]
Sec. 1306. Use of foreign credits
(a) In General.--Foreign credits (including currencies) owed
to or owned by the United States may be used by any agency for
any purpose for which appropriations are made for the agency
for the current fiscal year (including the carrying out of Acts
requiring or authorizing the use of such credits), but only
when reimbursement therefor is made to the Treasury from
applicable appropriations of the agency.
(b) Exception to Reimbursement Requirement.--Credits
described in subsection (a) that are received as exchanged
allowances, or as the proceeds of the sale of personal
property, may be used in whole or partial payment for the
acquisition of similar items, to the extent and in the manner
authorized by law, without reimbursement to the Treasury.
* * * * * * *
Subtitle IV--Money
* * * * * * *
CHAPTER 51--COINS AND CURRENCY
* * * * * * *
Subchapter II--General Authority
* * * * * * *
Sec. 5112. Denominations, specifications, and design of coins
(a) * * *
* * * * * * *
(i)(1) * * *
* * * * * * *
(4)(A) Notwithstanding any other provisions of law and
subject to subparagraph (B), the Secretary of the Treasury may
change the diameter, weight, or design of any coin minted under
this subsection or the fineness of the gold in the alloy of any
such coin if the Secretary determines that the specific
diameter, weight, design, or fineness of gold which differs
from that otherwise required by law is appropriate for such
coin.
(B) The Secretary may not mint any coin with respect to which
a determination has been made by the Secretary under
subparagraph (A) before the end of the 30-day period beginning
on the date a notice of such determination is published in the
Federal Register.
(C) The Secretary may continue to mint and issue coins in
accordance with the specifications contained in paragraphs (7),
(8), (9), and (10) of subsection (a) and paragraph (1)(A) of
this subsection at the same time the Secretary in minting and
issuing other bullion and proof gold coins under this
subsection in accordance with such program procedures and coin
specifications, designs, varieties, quantities, denominations,
and inscriptions as the Secretary, in the Secretary's
discretion, may prescribe from time to time.
* * * * * * *
(k) The Secretary may mint and issue bullion and proof
platinum coins in accordance with such specifications, designs,
varieties, quantities, denominations, and inscriptions as the
Secretary, in the Secretary's discretion, may prescribe from
time to time.
* * * * * * *
Subchapter III--United States Mint
Sec. 5131. Organization
(a) * * *
* * * * * * *
[(c) Each mint has a superintendent and an assayer appointed
by the President, by and with the advice and consent of the
Senate. The mint at Philadelphia has an engraver appointed by
the President, by and with the advice and consent of the
Senate.]
[(d)] (c) Laws on mints, officers and employees of mints, and
punishment of offenses related to mints and minting coins apply
to assay offices, as applicable.
* * * * * * *
Subtitle VI--Miscellaneous
* * * * * * *
CHAPTER 97--MISCELLANEOUS
* * * * * * *
Sec. 9703. Department of the Treasury Forfeiture Fund
(a) * * *
* * * * * * *
(g) Appropriations.--
(1) * * *
* * * * * * *
(3)(A) * * *
* * * * * * *
(C) The Secretary of the Treasury shall reserve an
amount not to exceed $30,000,000 from the unobligated
balances remaining in the Customs Forfeiture Fund on
September 30, 1992, and such amount shall be
transferred to the Fund on October 1, 1992, or, if
later, the date that is 15 days after the date of the
enactment of this section. Such amount shall be
available for any expenses or activities authorized
under this section. At the end of fiscal year 1993,
[and at the end of each fiscal year thereafter] 1994,
1995, and 1996, the Secretary shall reserve in the Fund
an amount not to exceed $50,000,000 of the unobligated
balances in the Fund, or, if the Secretary determines
that a greater amount is necessary for asset specific
expenses, an amount equal to not more than 10 percent
of the total obligations from the Fund in the preceding
fiscal year. At the end of fiscal year 1997, and at the
end of each fiscal year thereafter, the Secretary shall
reserve any amounts that are required to be retained in
the Fund to ensure the availability of amounts in the
subsequent fiscal year for purposes authorized under
subsection (a).
* * * * * * *
----------
INDEPENDENT AGENCIES APPROPRIATIONS ACT, 1989
(P.L. 100-440)
* * * * * * *
TITLE IV--INDEPENDENT AGENCIES
* * * * * * *
GENERAL SERVICES ADMINISTRATION--GENERAL PROVISIONS
* * * * * * *
[Sec. 10. The Administrator of General Services is authorized
and directed to hire up to and maintain an annual average of
not less than one thousand full-time equivalent positions for
Federal Protective Officers. This shall be accomplished by
increasing existing staff levels at the end of fiscal year 1988
at a rate of not less than fifty positions per year until the
full-time equivalency of one thousand is attained by not later
than fiscal year 1992.]
* * * * * * *
----------
SECTION 1304 OF TITLE 5, UNITED STATES CODE
Sec. 1304. Loyalty investigations; reports; revolving fund
(a) * * *
* * * * * * *
(e)(1) A revolving fund is available, to the Office without
fiscal year limitation, for financing investigations, training,
and such other functions as the Office is authorized or
required to perform on a reimbursable basis, including
personnel management services performed at the request of
individual agencies (which would otherwise be the reponsibility
of such agencies), or at the request of nonappropriated fund
instrumentalities. However, the functions which may be financed
in any fiscal year by the fund are restricted to those
functions which are covered by the budget estimates submitted
to the Congress for that fiscal year. To the maximum extent
feasible, each individual activity shall be conducted generally
on an actual cost basis over a reasonable period of time.
* * * * * * *
----------
SECTION 403 OF THE FEDERAL FINANCIAL MANAGEMENT ACT OF 1994
(P.L. 103-356)
SEC. 403. FRANCHISE FUND PILOT PROGRAMS.
(a) * * *
* * * * * * *
(f) Termination.--The provisions of this section shall expire
on October 1, [1999] 2001.
----------
SECTION 640 OF THE TREASURY, POSTAL SERVICE, AND GENERAL GOVERNMENT
APPROPRIATIONS ACT, 1996
(P.L. 104-52)
Sec. 640. [Service performed] Hereafter, service performed
during the period January 1, 1984, through December 31, 1986,
which would, if performed after that period, be considered
service as a law enforcement officer, as defined in section
8401(17) (A)(i)(II) and (B) of title 5, United States Code,
shall be deemed service as a law enforcement officer for the
purposes of chapter 84 of such title.
----------
SECTION 205 OF TITLE 18, UNITED STATES CODE
Sec. 205. Activities of officers and employees in claims against and
other matters affecting the Government
(a) * * *
* * * * * * *
[(d) Nothing in subsection (a) or (b) prevents an officer or
employee, if not inconsistent with the faithful performance of
his duties, from acting without compensation as agent or
attorney for, or otherwise representing, any person who is the
subject of disciplinary, loyalty, or other personnel
administration proceedings in connection with those
proceedings.]
(d)(1) Nothing in subsection (a) or (b) prevents an officer
or employee, if not inconsistent with the faithful performance
of that officer's or employee's duties, from acting without
compensation as agent or attorney for, or otherwise
representing--
(A) any person who is the subject of disciplinary,
loyalty, or other personnel administration proceedings
in connection with those proceedings; or
(B) except as provided in paragraph (2), any
cooperative, voluntary, professional, recreational, or
similar organization or group not established or
operated for profit, if a majority of the
organization's or group's members are current officers
or employees of the United States or of the District of
Columbia, or their spouses or dependent children.
(2) Paragraph (1)(B) does not apply with respect to a covered
matter that--
(A) is a claim under subsection (a)(1) or (b)(1);
(B) is a judicial or administrative proceeding where
the organization or group is a party; or
(C) involves a grant, contract, or other agreement
(including a request for any such grant, contract, or
agreement) providing for the disbursement of Federal
funds to the organization or group.
* * * * * * *
(i) Nothing in this section prevents an employee from acting
pursuant to--
(1) chapter 71 of title 5;
(2) section 1004 or chapter 12 of title 39;
(3) section 3 of the Tennessee Valley Authority Act
of 1933 (16 U.S.C. 831b);
(4) chapter 10 of title I of the Foreign Service Act
of 1980 (22 U.S.C. 4104 et seq.); or
(5) any provision of any other Federal or District of
Columbia law that authorizes labor-management relations
between an agency or instrumentality of the United
States or the District of Columbia and any labor
organization that represents its employees.
----------
TITLE 5, UNITED STATES CODE
* * * * * * *
Subpart G--Insurance and Annuities
* * * * * * *
CHAPTER 83--RETIREMENT
* * * * * * *
Subchapter III--Civil Service Retirement
* * * * * * *
Sec. 8336. Immediate retirement
(a) * * *
* * * * * * *
(a)(1) An employee involuntarily separated from service due
to a reduction in force shall, upon written election, be given
credit for days of unused annual leave standing to such
employee's credit under a formal leave system as of the date of
separation, if and to the extent necessary in order to meet the
minimum age and service requirements for title to an annuity
under this section.
(2) The Office shall prescribe any regulations which may be
necessary to carry out this subsection, including regulations
under which contributions to the Fund shall, with respect to
the days of leave for which credit is given under this
subsection, be made--
(A) by the employee, equal to the employee
contributions which would have been required for those
days if separation had not occurred; and
(B) by the agency from which separated, equal to the
Government contributions which would have been required
if separation had not occurred.
Contributions under the preceding sentence shall be determined
based on the rate of basic pay lost in effect before
separation.
(3) Nothing in this subsection shall be considered--
(A) to allow credit to be given for any leave
standing to the credit of the employee (other than by
restoration) pursuant to subchapter III or IV of
chapter 63 or other similar authority;
(B) to permit or require the making of any
contributions to the Thrift Savings Fund with respect
to any period after the date of separation; or
(C) to make any days of annual leave creditable for
purposes of section 8333, any determination of average
pay, or any computation of annuity.
(4)(A) The taking of a lump-sum payment under section 5551
or other similar authority shall not make any of the leave to
which such payment relates unavailable for purposes of this
subsection.
(B) The use of any leave for purposes of this subsection
shall not reduce the amount of leave for which a lump-sum
payment is payable under section 5551 or other similar
authority.
(5) This subsection shall apply with respect to separations
occurring on or after the date of the enactment of this
subsection and before July 1, 2002.
* * * * * * *
Sec. 8341. Survivor annuities
(a) * * *
* * * * * * *
(e)(1) For the purposes of this subsection, ``former
spouse'' includes a former spouse who was married to an
employee or Member for less than 9 months and a former spouse
of an employee or Member who completed less than 18 months of
service covered by this subchapter.
* * * * * * *
(4) If the annuity of a child under this subchapter
terminates under paragraph (3)(E) because of marriage, then, if
such marriage ends, such annuity shall resume on the first day
of the month in which its ends, but only if--
(A) any lump sum paid is returned to the Fund; and
(B) that individual is not otherwise ineligible for
such annuity.
* * * * * * *
CHAPTER 84--FEDERAL EMPLOYEES' RETIREMENT SYSTEM
* * * * * * *
Subchapter II--Basic Annuity
* * * * * * *
Sec. 8412. Immediate retirement
(a) * * *
* * * * * * *
(i)(1) An employee involuntarily separated from service due
to a reduction in force shall, upon written election, be given
credit for days of unused annual leave standing to such
employee's credit under a formal leave system as of the date of
separation, if and to the extent necessary in order to meet the
minimum age and service requirements for title to an annuity
under this section or section 8414.
(2) The Office shall prescribe any regulations which may be
necessary to carry out this subsection, including regulations
under which contributions to be Fund shall, with respect to the
days of leave for which credit is given under this subsection,
be made--
(A) by the employee, equal to the employee
contributions which would have been required for those
days if separation had not occurred; and
(B) by the agency from which separated, equal to the
Government contributions which would have been required
if separation had not occurred.
Contributions under the preceding sentence shall be determined
based on the rate of basic pay last in effect before
separation.
(3) Nothing in this subsection shall be considered--
(A) to allow credit to be given for any leave
standing to the credit of the employee (other than by
restoration) pursuant to subchapter III or IV of
chapter 63 or other similar authority;
(B) to permit or require the making of any
contributions to the Thrift Savings Fund with respect
to any period after the date of separation; or
(C) to make any days of annual leave creditable for
purposes of section 8410, any determination of average
pay, or any computation of annuity.
(4)(A) The taking of a lump-sum payment under section 5551
or other similar authority shall not make any of the leave to
which such payment relates unavailable for purposes of this
subsection.
(B) The use of any leave for purposes of this subsection
shall not reduce the amount of leave for which a lump-sum
payment is payable under section 5551 or other similar
authority.
(5) This subsection shall apply with respect to separations
occurring on or after the date of the enactment of this
subsection and before July 1, 2002.
* * * * * * *
Subchapter IV--Survivor Annuities
* * * * * * *
Sec. 8443. Rights of a child
(a) * * *
(b) The annuity of a child under this subchapter--
(1) * * *
* * * * * * *
whichever occurs first. On the death of the surviving wife or
husband or former wife or husband, or termination of the
annuity of a child, the annuity of any other child or children
shall be recomputed and paid as though the wife or husband,
former wife or husband, or child had not survived the
annuitant, employee, or Member. If the annuity of a child under
this subchapter terminates under subparagraph (E) because of
marriage, then, if such marriage ends, such annuity shall
resume on the first day of the month in which it ends, but only
if any lump sum paid is returned to the Fund, and that
individual is not otherwise ineligible for such annuity.
* * * * * * *
----------
SECTION 207 OF TITLE 18, UNITED STATES CODE
Sec. 207. Restrictions on former officers, employees, and elected
officials of the executive and legislative branches
(a) * * *
* * * * * * *
(e) Restrictions on Members of Congress and Officers and
Employees of the Legislative Branch.--
(1) * * *
* * * * * * *
(6) Limitation on restrictions.--(A) The restrictions
contained in paragraphs (2), (3), and (4) apply only to
acts by a former employee who, for at least 60 days, in
the aggregate, during the 1-year period before that
former employee's service as such employee terminated,
was paid a rate of basic pay equal to or greater than
an amount which is 75 percent of the basic rate of pay
payable for a Member of the House of Congress in which
such employee was employed.
(B) The restrictions contained in paragraph (5) apply
only to acts by a former employee who, for at least 60
days, in the aggregate, during the 1-year period before
that former employee's service as such employee
terminated, was employed in a position for which the
rate of basic pay, exclusive of any locality-based pay
adjustment under section 5302 of title 5 (or any
comparable adjustment pursuant to interim authority of
the President), is equal to or greater than the basic
rate of pay payable for [level V of the Executive
Schedule] level 5 of the Senior Executive Service.
* * * * * * *
Financial Assistance to State and Local Governments
In accordance with section 308(a)(1)(D) of the
Congressional Budget Act of 1974 (Public Law 93-344), as
amended, the financial assistance to state and local
governments are as follows:
In millions
New budget authority.................................... 100,000,000
Fiscal year 1996 outlays resulting therefrom............ 78,000,000
Comparison With Budget Resolution
Section 308(a)(1)(A) of the Congressional Budget and
Impoundment Control Act of 1974 (Public Law 93-344), as
amended, requires that the report accompanying a bill providing
new budget authority contain a statement detailing how the
authority compares the reports submitted under section 602(b)
of the Act for the most recently agreed to concurrent
resolution on the budget for the fiscal year. This information
follows:
------------------------------------------------------------------------
602(b) allocation This bill
-------------------------------------------
Budget Budget
authority Outlays authority Outlays
------------------------------------------------------------------------
Discretionary:
General purposes........ 11,016 10,971 11,016 10,971
Violent Crime Trust Fund 97 84 97 84
Total discretionary. 11,113 11,055 11,113 11,055
-------------------------------------------
Mandatory................... 12,479 12,477 12,511 12,509
------------------------------------------------------------------------
The bill provides no new spending authority as described in
section 401(c)(2) of the Congressional Budget and Impoundment
Control Act of 1974 (Public Law 93-344), as amended.
Compliance With Rule XXI, Clause 3
In compliance with rule XXI, clause 3, the Committee has
inserted at the appropriate place in the report a description
of the effects of provisions proposed in the accompanying bill
which may be considered, under certain circumstance, to change
the application of existing law, either directly or indirectly.
The bill provides, in some instances, for funding of
agencies and activities where legislation has not yet been
finalized. In addition, the bill carries language, in some
instances, permitting activities not authorized by law, or
exempting agencies from certain provisions of law, but which
has been carried in appropriations acts for many years.
In title IV of the bill, in connection with the General
Services Administration, certain limitations on availability of
revenue in the Federal Buildings Fund and certain legislative
provisions have been carried forward from last year. The
Committee has included a provision requiring approval by the
Appropriations Committee of additional repair and alteration
projects, as well as several additional general provisions.
The bill continues a number of general provisions applying
to agencies covered by the bill as well as certain provisions
applying Government-wide. These provisions have been carried in
the prior year appropriations bill, and a number of them have
been carried for many years.
TITLE I--DEPARTMENT OF THE TREASURY
The Committee has continued language which provides funds
for operation and maintenance of the Treasury Building and
Annex, hire of passenger motor vehicles; maintenance, repairs,
and improvements of, and purchase of commercial insurance
policies for real properties leased or owned overseas; official
travel expenses, official reception and representation
expenses; and unforseen emergencies of a confidential nature.
Automation Enhancement
The Committee has created a new appropriation for the
development and acquisition of automatic data processing
equipment, software, and services, providing transfer
authority, prohibiting expenditures for TSM, and limiting
expenditure until approval.
Office of Inspector General
The Committee has continued language which provides funds
to carry out the provisions of the Inspector General Act of
1978, the hire of vehicles, official travel expenses, and
unforeseen emergencies.
Treasury Buildings and Annex Repair and Restoration
The Committee has continued language which provides funds
for the repair, alteration, and improvement of the Treasury
Building and Annex. The Committee has inserted new language
providing funds for the National Laboratory Center and Fire
Investigation Research and Development Center and the Rowley
Secret Service Training Center; limiting these funds until the
projects are authorized.
Financial Crimes Enforcement Network
The Committee has continued language which provides funds
for hire of vehicles and official reception and representation
expenses and language allowing FinCEN to use appropriated
resources for official reception and representation; the travel
of non-federal personnel attending conferences or meetings
involving financial law enforcement; the purchase of personal
services contracts; and the procurement of cutting edge
technologies in an expedited fashion, provided that total
expenditures do not exceed $500,000. The Committee inserted new
language allowing FinCEN to provide assistance to federal law
enforcement agencies with or without reimbursement.
Treasury Forfeiture Fund
The Committee inserts new language making amounts available
for development of a Federal wireless communication system and
language reversing the transfer of resources from the Treasury
Forfeiture Fund to the Special Forfeiture Fund in the Office of
National Drug Control Policy.
Violent Crime Reduction Programs
The Committee has included language allocating amounts
authorized by sections 190001(e) and 32401 of Public Law 103-
322.
Treasury Franchise Fund
The Committee has included new language establishing a
Treasury Franchise Fund pilot project as authorized by section
403 of Public Law 103-356.
Federal Law Enforcement Training Center
The Committee has continued language which provides funds
for material and support costs of basic training, the hire of
vehicles, student athletic and related activities, uniform
purchases, conducting and or participating in firearms matches,
community relations for U.S. Postal Service law enforcement
personnel and State and local law enforcement training,
acceptance of gifts, training of private sector security
officials on a reimbursable space available basis, travel
expenses of non-federal personnel to attend State and local
course development meetings at the Center, the establishment of
a fund to provide gifts for certain honor graduate students,
directs the Director to present certain awards, allows for the
provision of short term medical services for students
undergoing training.
Authorization for the Federal Law Enforcement Training
Center has not been enacted as of the date of this report.
acquisition, construction, improvements, and related expenses
The Committee has continued language for construction,
repair, and other expenses to remain available until expended.
Financial Management Service
The Committee has continued language which provides funds
to remain available until expended for systems modernization.
Bureau of Alcohol, Tobacco and Firearms
The Committee has continued language which provides funds
for the purchase of vehicles, the hire of aircraft, the
services of expert witnesses, the payment of per diem and/or
subsistence allowances for the National Response Team, official
reception and representation expenses, training of State and
local law enforcement agencies, the provision of laboratory
assistance to State and local agencies, the payment of
attorney's fees, the equipping of certain vessels, vehicles,
equipment or aircraft; provides that no funds shall be used to
consolidate or centralize the records pertaining to firearms
licenses; and prohibits the payment of administrative expenses
in changing the definition of curios or relics. The Committee
has modified language prohibiting the transfer of ATF's
functions to another federal agency. The Committee has included
new language prohibiting provision of ballistics imaging
equipment to state and local authorities under certain
circumstances, providing for the transfer of the ATF air
program to the Customs Service, prohibiting any reduction in
force, prohibiting expenditure of separation incentive payments
without advance approval of the House and Senate Committees on
Appropriations, and prohibiting electronic retrieval of
information gathered pursuant to 18 U.S.C. 923(g)(4) by name or
personal identification. The Committee has modified a
continuing provision prohibiting the Bureau of Alcohol, Tobacco
and Firearms from acting upon applications for relief from
Federal firearms disabilities. The modification hold that
refusal to act upon such applications shall not be subject to
judicial review for any felon convicted of a violent crime,
firearms violation, or drug related crime.
United States Customs Service
The Committee has continued language which provides funds
for the hire of vehicles, official reception and representation
expenses, compensation to informers, rental space for pre-
clearance operations, and part-time and temporary positions and
uniforms. The Committee has included new language directing the
implementation of the General Aviation Telephonic Entry
program, prohibiting any reduction in force, prohibiting the
expenditure of voluntary separation incentive payments without
approval of the House and Senate Committees on Appropriations,
providing that the Spirit of St. Louis airport shall be
designated a port of entry, and prohibiting major regulatory
changes without 30 days notice.
harbor maintenance fee collection
The Committee has included language relating to the use of
collection of the Harbor Maintenance Fee pursuant to Public Law
103-182.
air interdiction procurement
The Committee inserted new language providing for the
purchase and restoration of aircraft for the Customs air and
marine interdiction program after September 30, 1997.
customs service at small airports
The Committee has continued language which provides funds
for the provision of Customs services at certain small airports
and provides that the funds may remain available until
expended.
Bureau of the Public Debt
The Committee has continued language which provides funds
for expenses associated with public debt issues.
Internal Revenue Service
processing, assistance, and management
The Committee has provide funds for the direction,
management, audit, security, purchase and hire of vehicles,
services authorized by 5 USC, official reception and
representation expenses, research processing tax returns,
accounting, developing statistics of income, taxpayer
assistance, hire of vehicles, services authorized by 5 USC.
tax law enforcement
The Committee has continued language which provides funds
for determining and establishing tax liabilities, tax and
enforcement litigation, technical rulings, examining employee
plans and exempt organizations, investigations, securing tax
returns, collection, purchase and hire of vehicles, services
authorized by 5 USC.
information systems
The Committee has continued language which provides funds
for data processing and telecommunications support, the hire of
vehicles, services authorized by 5 USC, sets a minimum funding
level for tax systems modernization, provides that certain
funds shall remain available until expended and prohibits the
expenditure of funds for tax systems modernization until
certain conditions are met.
Administrative Provisions--Internal Revenue Service
Section 101. the Committee has included a provision which
allows the transfer of funds between Internal Revenue Service
appropriations. The transfer is limited to 5 percent of the
appropriation and is subject to prior Congressional approval.
Section 102. The Committee has included a provision which
requires the Internal Revenue Service maintain a training
program in taxpayer's rights, dealing courteously with the
taxpayers, and cross cultural relations.
Section 103. The Committee has included a new provision
which requires the Internal Revenue Service maintain taxpayer
services at not less than 1995 levels.
Section 104. The Committee has included a new provision
which requires the Internal Revenue Service receive prior
approval before it can obligate funds for separation agreements
in accordance with Section 525 of this Act. Section 525 allows
for voluntary separation of employees under certain
circumstances. The IRS must submit for Congressional approval,
a management plan for the use of this authority.
United States Secret Service
The Committee has continued language which provides funds
for the hire of motor vehicles, aircraft, training and
assistance requested by State and local governments, services
of expert witnesses, rental of certain buildings, improvements
to buildings as may be necessary for protective functions,
conducting of firearms matches, presentation of awards, travel
of employees on protective missions, for repairs, alterations,
and minor construction of the training center, making grants to
conduct behavioral research, uniforms, research, and
reimbursement for protection as authorized by law. The
Committee has included new language making funds available as a
grant for investigations of missing children.
acquisition, construction, improvement, and related expenses
The Committee has included a new account for the
acquisition, construction, improvement, and related expenses of
the new Secret Services headquarters building.
General Provisions--Department of the Treasury
Section 111. The Committee continues the provision
requiring the Secretary of Treasury to comply with certain
reprogramming guidelines when obligating or expending funds for
law enforcement activities.
Sec. 112. The Committee continues the provision allowing
the Department of Treasury to purchase uniforms, insurance, and
motor vehicles without regard to the general purchase price
limitation, and enter into contracts with the State Department
for health and medical services for Treasury employees in
overseas locations.
Sec. 113. The Committee continues the provision restricting
the use of funds appropriated to the IRS if employees or
private sector employees under contract to the IRS are not in
compliance with the Fair Debt Collection Practices Act.
Sec. 114. The Committee continues the provision mandating
that the IRS institute policies and procedures which safeguard
the confidentiality of taxpayer information.
Sec. 115. The Committee continues the provision requiring
expenditure of funds so as not to diminish efforts under the
Federal Alcohol Administration Act.
Sec. 116. The Committee inserts this provision which
modifies the Treasury Forfeiture Fund to discontinue transfers
between the Treasury Forfeiture Fund and the Special Forfeiture
Fund.
Sec. 117. The Committee inserts this provision which
provides $13,000,000 in IRS funding to continue the current
contract for private sector debt collection and transfers
another $13,000,000 to the Departmental Offices Appropriation
to initiate a second contract.
Sec. 118. The Committee inserts this provision which
creates a priority placement and job retraining program for
employees who have been, or are about to be, separated from
government service as a result of a reduction in force. The
Treasury Department shall provide such employees priority
placement for other Treasury vacancies as they occur, may
provide job placement and counseling services, and shall refer
eligible employees for possible positions with any new private
sector contractor working as part of the Internal Revenue
Service's Tax Systems Modernization (TSM) program.
TITLE II--POSTAL SERVICE
Payment to the Postal Service Fund
The Committee has continued language which prohibits funds
made available to the Postal Service from being used to close
or consolidate certain post offices, from charging employees of
local and child support agencies, provides funds for free mail
for the blind, and for six day mail delivery and rural delivery
of mail at existing levels.
TITLE III--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO
THE PRESIDENT
Compensation of the President and the White House Office
The Committee has continued language which mandates that
unused amounts of the President's expense allowance will revert
to the Treasury and not be taxable to the President and which
provides funds for service authorized by 5 USC, subsistence
expenses, hire of vehicles, newspapers, periodicals, teletype
news service, travel, and official entertainment expenses. The
Committee includes a new provision fencing ADP funds until
certain requirements are met.
Executive Residence at the White House
The Committee has continued languages which provides funds
for operation and maintenance of the White House for official
entertainment expenses.
Special Assistance to the President and Official Residence of the Vice
President
The Committee has included language which provides funds
for operation and maintenance of the official residence of the
Vice President, the hire of vehicles, official entertainment
expenses and provides for the transfer of funds as necessary.
The Committee has continued language which enables the Vice
President to provide assistance to the President, services
authorized by 5 USC, subsistence, and the hire for vehicles.
The Committee includes new provisions fencing ADP funds until
certain requirements are met.
Office of Policy Development
The Committee has continued language which provides funds
for expenses of the Office. The Committee includes a new
provision fencing ADP funds until certain requirements are met.
National Security Council
The Committee has continued language which provides funds
for expenses of the Council. The Committee includes a new
provision fencing ADP funds until certain requirements are met.
Office of Administration
The Committee has continued language which provides funds
for expenses of the Office and the hire of vehicles. The
Committee includes a new provision fencing ADP funds until
certain requirements are met.
Office of Management and Budget
The Committee has continued language which provides funds
for expenses, the hire of vehicles, carrying out provisions of
44 USC, directs that funds shall be applied only to items for
which appropriations were made, prohibits the review of
agricultural marketing orders and the alteration of certain
testimony.
Office of National Drug Control Policy
The Committee has continued language which provides funds
for expenses, research, official reception and representation
expenses, participation in joint projects, the Counter-Drug
Technology Assessment Center, and allows for the acceptance of
gifts. The Committee has included new language providing
resources for public service announcements and conferences on
model state drug laws, and providing for the transfer of
unobligated resources to the Treasury Forfeiture Fund.
FEDERAL DRUG CONTROL PROGRAMS--HIGH INTENSITY DRUG TRAFFICKING AREAS
PROGRAMS
The Committee has continued lagnuage which provides a
certain level of funding for drug control activities for State
and local and federal drug control efforts, and requires
obligation of funds within a specified period of time. The
Committee has included new language designating new High
Intensity Drug Trafficking Areas in the Midwest, the Gulf
states, and Lake County, Indiana.
TITLE IV--INDEPENDENT AGENCIES
Commission for Purchase from People Who Are Blind or Severely Disabled
The Committee has continued language which provides funds
for expenses of the Committee.
Federal Election Commission
The Committee has continued language which provides funds
for expenses of the Commission and specifying a level of
funding for internal automated data processing systems and
reception and representation expenses.
Federal Labor Relations Authority
The Committee has continued language which provides funds
for the expenses of the authority, including authorized
services, hire of experts and consultants, hire of passenger
motor vehicles, and rental of conference rooms in the District
of Columbia. The Committee has also continued a provision that
public members of the Federal Service Impasse Panel may be paid
travel expenses and that fees charged to non-Federal
participants at labor-management relations conferences shall be
credited and merged with this account.
General Services Administration
federal buildings fund
The Committee has continued language dealing with the
conditions under which funds made available to the Federal
Buildings Fund can be used and has designated certain projects
which can be undertaken. Many technical provisions have been
inserted regarding use of funds in the Federal Buildings Fund
which are not specifically authorized by law.
The Committee has inserted language limiting funds
available for construction and repair and alteration of
building projects not authorized by law. A more detailed
analysis of the Federal Buildings Funds can be found in the
General Services Administration chapter of this report.
The Committee has inserted language concerning the
Pennsylvania Avenue Development Corporation.
policy and oversight
The Committee has inserted language which provides funds
for government-wide policy and oversight activities, the Board
of Contract Appeals, authorized services, and official
reception and representation expenses.
operating expenses
The Committee has continued language which provides funds
for operations of the General Services Administration.
office of inspector general
The Committee has continued language which provides funds
for expenses for the Office, payment for information and
detection of fraud, and awards.
allowances and office and staff for former presidents
The Committee has continued language which provides funds
for compliance with Public Law 95-138.
expenses, presidential transition
The Committee has inserted language which provides funds
for the transition.
general provisions--General Services Administration
Section 401. The Committee continues the provision
providing for the crediting of amounts received as Federal
agency rental payments to the Federal Buildings Funds.
Sec. 402. The Committee continues the provision providing
funds for the hire of motor vehicles.
Sec. 403. The Committee continues the provision providing
that funds made available for activities of the Federal
Buildings Fund may be transferred between appropriations.
Sec. 404. The Committee inserts this provision repealing
Section 10 of Public Law 100-440 which sets a limit on the
number of employees in the FPS.
Sec. 405. The Committee continues the provision limiting
funding for courthouse construction which do not meet certain
standards of a capital improvement plan.
Sec. 406. The Committee continues the provision authorizing
GSA to accept and retain income to offset the cost of the
flexiplace work telecommuting centers.
Sec. 407. The Committee inserts this provision providing no
funds be used to implement a plan for the Ronald Reagan
Building which would permit the Woodrow Wilson Center to pay
less than the rate per square foot which is paid by other
Federal entities.
Sec. 408. The Committee inserts this provision providing no
funds may be used increase the amount of occupiable square
feet, provide cleaning services, security enhancements, or any
other service usually provided, to any agency which does not
pay the requested rate.
Sec. 409. The Committee inserts this provision ensuring the
materials used for the facade on the United States Courthouse
Annex, Savannah, Georgia project are compatible with the
existing building.
Sec. 410. The Committee has inserted this new provision
which allows the Administrator of General Services to retain
the proceeds for the sales of real property for expenditure on
any future real property activities.
John F. Kennedy Assassination Records Review Board
The Committee has continued language which provides funds
for the Board.
Merit Systems Protection Board
The Committee has continued language which provides funds
for the Board.
National Archives and Records Administration
The Committee has continued language which provides funds
for the operations of the NARA including expenses necessary to
move to a new facility.
repairs and restoration--archives facilities and presidential libraries
The Committee has included language which provides funds
for the repair, alteration, and improvement of archives
facilities and presidential libraries.
national historical publications and records commission
The Committee has included language which provides funds
for the Commission.
Office of Government Ethics
The Committee has continued language which provides funds
for the Office.
Office of Personnel Management
The Committee has continued language which provides for
expenses of the Office, services authorized by 5 U.S.C. medical
examinations under certain conditions, rental of conference
rooms, hire of vehicles, official reception, and representation
expenses, advances for reimbursement, acceptance of gifts, and
awards for the national Civil Service Appreciation Conferences,
health promotion and disease prevention programs, transfers to
appropriate trust funds, prohibition on the payment of any
physician, hospital or other provider of health care services
who is excluded from providing services under certain Social
Security Act provisions, prohibition of funds for the Legal
Examining Unit, authority to accept certain donations for the
White House Fellows program.
Office of Inspector General
The Committee has continued language which provides funds
for expenses of the Office, audit of the retirement and
insurance programs, and the rental of conference rooms.
revolving fund
The Committee has provided authority to offset long-term
losses in the revolving fund.
Government Payment for Annuitants, Employee Health Benefits
The Committee has continued language which provides funds
for the payment of the government contributions.
Government Payment for Annuitants, Employee Life Insurance
The Committee has continued language which provides funds
for the payment of the government contributions.
Payment to Civil Service Retirement and Disability Fund
The Committee has continued language which provides funds
for the payment of the government contributions.
General Provisions--Office of Personnel Management
Section 1. The Committee included, at the request of the
Administration, a modification to title 5, United States Code,
which authorizes OPM to accept reimbursement for personnel
management services provided to revolving funds, government
sponsored enterprises, and other ``nonappropriated fund
instrumentalities''
Office of Special Counsel
The Committee has continued language which provides funds
for the Office.
United States Tax Court
The Committee has continued language which provides funds
for the Court.
TITLE V--GENERAL PROVISIONS
This Act
Section 501. The Committee continues the provision limiting
the expenditure of funds to the current year unless expressly
provided in this Act.
Sec. 502. The Committee continues the provision limiting
the expenditure of funds for consulting services under certain
conditions.
Sec. 503. The Committee continues the provision regarding
employment of certain categories of Federal employees.
Sec. 504. The Committee continues the provision prohibiting
the use of funds to engage in activities which would prohibit
the enforcement of section 307 of the 1930 Tariff Act.
Sec. 505. The Committee continues the provision prohibiting
the transfer of control over the Federal Law Enforcement
Training Center.
Sec. 506. The Committee continues the provision prohibiting
the use of funds for certain propaganda purposes.
Sec. 507. The Committee continues the provision prohibiting
certain United States Postal Service employees from contacting
their member of Congress.
Sec. 508. The Committee continues the provision authorizing
donations of supplies and equipment to the Federal Executive
Institute.
Sec. 509. The Committee continues the provision authorizing
Secret Service to accept donations regarding protection of
former Presidents.
Sec. 510. The Committee continues the provision concerning
employment rights of Federal employees who return to their
civilian jobs after assignment with the Armed Forces.
Sec. 511. The Committee continues the provision prohibiting
the use of funds to provide any non-public mailing lists to any
person or organization outside of the Federal Government.
Sec. 512. The Committee continues the provision concerning
compliance with Buy American Act.
Sec. 513. The Committee continues the provision concerning
prohibition of contracts which use certain goods not made in
America.
Sec. 514. The Committee continues the provision concerning
prohibition of contracts.
Sec. 515. The Committee continues the provision providing
that fifty percent of unobligated balances may remain available
for certain purposes.
Sec. 516. The Committee continues the provision prohibiting
any increases in the travel object classification for any
agency funded in this Act.
Sec. 517. The Committee continues and modifies the
provision specifying the authority of the special police
officers of the Bureau of Engraving and Printing and the U.S.
Mint.
Sec. 518. The Committee continues the provision prohibiting
funds in this Act to be used for abortions.
Sec. 519. The Committee continues the provision providing
that Section 518 will not apply when the life of the mother
would be endangered, or that the pregnancy is the result of an
act of rape or incest.
Sec. 520. The Committee continues the provision prohibiting
implementation of an ATF ruling pertaining to the citric acid
content of vodka.
Sec. 521. The Committee inserts this provision providing
personal services contractors employed by the Department of the
Treasury to be considered as Federal employees for purposes of
making available federal employee health and life insurance.
Sec. 522. The Committee inserts this provision reducing the
number of political appointees at the U.S. Mint.
Sec. 523. The Committee inserts this provision which allows
for the minting of 24 karat gold coins.
Sec. 524. The Committee inserts this provision which allows
for the minting of platinum coins.
Sec. 525. The Committee has included a new provision that
allows three agencies under its jurisdiction to provide
voluntary separation incentive payments (``buyouts'') to its
employees to facilitate downsizing. Buyouts have several
advantages over reductions in force: they do not harm agency
morale to the same extent, avoid the ``bumping'' phenomena in
which the last hired are always the first fired, and can cost
less if they are done correctly.
The Committee is concerned that previous buyout efforts
have been somewhat haphazard. Some agencies have offered
buyouts to personnel that they intend to keep while not
offering them to people whose positions will be eliminated.
The Committee intends to ensure that no such abuses will
occur under this authority. Every buyout offer must be
carefully and specifically targeted by geographic location,
position, grade and organizational entity. Buyouts must be used
only to the extent that they help reduce the size of the
agency.
The Committee intends that buyouts only be completed as a
consequence of the agency's strategic plan, that they be
completed by February 1, 1997, and that this provision will not
be repeated in the future.
Sec. 526. The Committee has inserted this new provision
which states laws governing procurement and public contract
shall not be applicable to the Bureau of Engraving and Printing
(BEP) programs and operations. The authorities of this
provision expire on September 30, 1999.
Sec. 527. The Committee has inserted this new provision
which authorizes the establishment a demonstration project
pursuant to Title 5 authorities, to test alternative management
systems.
Sec. 528. The Committee includes a new provision to
reimburse the attorney fees and costs incurred by the former
employees of the White House Travel Office whose employment in
that office was terminated on May 19, 1993. Upon submission of
documentation verifying the former employees attorney fees and
costs incurred as a result of that termination, the Secretary
of the Treasury shall reimburse such fees and costs out of
funds appropriated to Departmental offices, salaries and
expenses.
Sec. 529. The Committee includes a new provision which
provides a restriction on the use of funds for the White House
to request official background reports without the written
consent of the individual who is the subject of the report.
TITLE VI--GOVERNMENTWIDE GENERAL PROVISIONS
Departments, Agencies, and Corporations
Section 601. The Committee continues the provision
authorizing agencies to pay travel costs of the families of
Federal employees to foreign duty to return to the United
States in the event of a death or a life threatening illness of
the employee.
Sec. 602. The Committee continues the provision requiring
agencies to administer a policy designed to ensure that all of
its workplaces are free from the illegal use of controlled
substances.
Sec. 603. The Committee continues the provision authorizing
reimbursement for travel, transportation, and subsistence
expenses incurred for training classes, conferences, or other
meetings in connection with the provision of child care
services to Federal employees.
Sec. 604. The Committee continues the provision regarding
price limitations on vehicles to be purchased by the Federal
Government.
Sec. 605. The Committee continues the provision allowing
funds made available to agencies for travel to also be used for
quarters allowances and cost-of-living allowances.
Sec. 606. The Committee continues the provision prohibiting
the Government, with certain specified exceptions, from
employing non-U.S. citizens whose posts of duty would be in the
continental U.S.
Sec. 607. The Committee continues the provision ensuring
that agencies will have authority to pay GSA bills for space
renovation and other services.
Sec. 608. The Committee continues the provision allowing
agencies to finance the costs of recycling and waste prevention
programs with proceeds from the sale of materials recovered
through such programs.
Sec. 609. The Committee continues the provision providing
that funds may be used to pay rent and other service costs in
the District of Columbia.
Sec. 610. The Committee continues the provision restricting
the President's recess reappointment power.
Sec. 611. The Committee continues the provision authorizing
agencies with delegated authority to make direct expenditures
to operate, maintain, and repair its facilities using funds
otherwise available to make rental payments to GSA.
Sec. 612. The Committee continues the provision allowing
Federal agencies to use foreign credits for any purpose for
which appropriations are made in the current fiscal year.
Sec. 613. The Committee continues the provision precluding
the financing of groups by more than one Federal agency absent
prior and specific statutory approval.
Sec. 614. The Committee continues the provision authorizing
the Postal Service to employ guards and give them the same
special policy powers as GSA guards.
Sec. 615. The Committee continues the provision prohibiting
the use of funds for enforcing regulations disapproved in
accordance with the applicable law of the U.S.
Sec. 616. The Committee continues the provision limiting
the pay increases of certain prevailing rate employees.
Sec. 617. The Committee continues the provision limiting
the amount of funds that can be used for redecoration of
offices under certain circumstances.
Sec. 618. The Committee continues the provision prohibiting
the expenditure of funds for the acquisition of additional law
enforcement training facilities.
Sec. 619. The Committee continues the provision to allow
for interagency funding of national security and emergency
telecommunications initiatives.
Sec. 620. The Committee continues the provision requiring
agencies to certify that a Schedule C appointment was not
created solely or primarily to detail the employee to the White
House.
Sec. 621. The Committee continues the provision requiring
agencies to administer a policy designed to ensure that all of
its work-places are free from discrimination and sexual
harassment.
Sec. 622. The Committee continues the provision prohibiting
the use of funds for travel expenses not directly related to
official governmental duties.
Sec. 623. The Committee continues the provision requiring
the President to certify that persons responsible for
administering the Drug Free Workplace Program are not
themselves the subject of random drug testing.
Sec. 624. The Committee continues the provision prohibiting
Federal training not directly related to the performance of
official duties.
Sec. 625. The Committee continues the provision prohibiting
the expenditure of funds for implementation of agreements in
nondisclosure policies unless certain provisions are included.
Sec. 626. The Committee continues the provision requiring
mandatory use of FTS2000.
Sec. 627. The Committee inserts the provision extending the
termination date regarding the franchise fund pilot program.
Sec. 628. The Committee continues the provision that limits
the Secretary of the Treasury from making loans to foreign
entities unless certain criteria are met.
Sec. 629 The Committee continues and modifies a provision
providing law enforcement credit to law enforcement officers
hired during the three year transition period before FERS was
fully implemented.
Sec. 630. The Committee has inserted a new provision
mandating that federal workers paid as part of this Act may not
receive weekend or night differential pay for hours in which
they did not work.
Sec. 631. The Committee inserts as a new provision
regarding lobbying by executive agency personnel.
Sec. 632. The Committee inserts as a new provision the text
of H.R. 782, the ``Federal Employee Representation Improvement
Act'', which allows federal employees to represent the views of
employee organizations like child care centers, health and
fitness organizations, recreation associations, and
professional associations before government agencies. This is a
technical amendment to section 205 of title 18 and is needed to
supersede a November 1994 Department of Justice legal opinion
which prohibits this type of representation.
Sec. 633. The Committee inserts this new provision amending
the disabled child survivor program of the Civil Service
Retirement System by allowing benefits that had been terminated
because of the marriage of the child to be renewed if that
child divorces.
Sec. 634. The Committee has included a new provision
allowing a Federal employee involuntarily separated from
service due to a reduction in force to credit his annual leave
toward meeting minimum age and service requirements, thereby
qualifying such employee to an immediate annuity.
Sec. 635. The one-year ``cooling off'' provisions of
section 207(c) are amended by section 6 of H.R. 3235, the
``Office of Government Ethics Authorization Act of 1996.'' With
that section, SES level 4 employees will not be subject to the
post-employment restrictions of section 207 of title 18, as was
the intention by the 1989 Ethics in Government Act amendments.
This section amends the last clause of the definition of
``senior'' official in Section 207(c)(2)(A)(ii) by tying the
basic rate of pay to a level equal to or greater than that of
Level 5 of the Senior Executive Service.
Section 207(c) of title 18 was amended in 1989 to define
``senior'' officials as those officials serving: (1) in a
position listed on the Executive Schedule; (2) by serving in a
position in the uniformed services ranked O-7 or above; (3) by
serving in particular positions within the White House Office;
(4) or by serving in any position for which the basic rate of
pay is equal to or greater than that of an Executive Level V.
In 1989, this last group (those persons serving in any position
for which the basic rate of pay is equal to or greater than
that of an Executive Level V) included those in the Senior
Executive Service at levels 5 and 6.
This change is necessary because Congress has chosen for
purposes unrelated to post-employment restrictions to freeze
the rates of pay for positions on the Executive Level Schedule.
The rates of pay for positions in the Senior Executive Service
(``SES'') are set by the President through Executive Order. On
January 7, 1996, Executive Order 12984 increased the basic rate
of pay for a SES level 4 employee to an amount above that of an
Executive Level V position. The result of Executive Order 12984
is the unintended consequence of SES level 4 employees subject
to postemployment restrictions originally intended only for SES
level 5 and 6 employees.
The need to add additional language to the TPO
Appropriations is the result of a drafting error in H.R. 3235.
H.R. 3235 ties the basic rate of pay to a level equal to or
greater than that of Level 5 of the Senior Executive Service in
section 207(c)(2)(A)(ii), but failed to change the last line of
subsection 207(e)(6)(B). This language will ensure that the
postemployment restrictions for executive branch employees are
consistent with those of legislative branch employees.
Sec. 636. The Committee has included a new provision
granting authority for Federal Government Agencies to pay a
portion of the professional liability insurance costs incurred
by certain of their employees.
Detailed Explanations in Report
It should be emphasized again that a more detailed
statement describing the effect of the above provisions
inserted or continued this year by the Committee which directly
or indirectly change the application of existing law may be
found at the appropriate place in this report.
Appropriations Not Authorized by Law
Pursuant to clause 3 of rule XXI of the House of
Representatives, the following table lists the appropriations
in the accompanying bill which are not authorized by law:
Treasury Department
Departmental Offices, except International
Affairs and Official Travel
Office of Inspector General
Financial Crimes Enforcement Network
Federal Law Enforcement Training Center
Salaries and Expenses
Acquisition, Construction,
Improvements & Related Expenses
Financial Management Service
Bureau of Alcohol, Tobacco and Firearms,
except those activities related to the
enforcement of tobacco smuggling and regulation
of explosives
U.S. Customs Service
Salaries & Expenses
Operation and Maintenance, Air &
Marine Interdiction
Programs
U.S. Mint
Bureau of the Public Debt
Internal Revenue Service
Processing, Assistance and Management
Tax Law Enforcement
Information Systems
U.S. Secret Service--except the Uniformed
Division
Funds Appropriated to the President
High Intensity Drug Trafficking Areas Program
Office of Management and Budget, Office of
Information and Regulatory Affairs
Federal Election Commission
General Services Administration
Policy and Oversight
FULL COMMITTEE VOTES
Pursuant to the provisions of clause 2(1)(2)(b) of rule XI
of the House of Representatives, the results of each rollcall
vote on an amendment or on the motion to report, together with
the names of those voting for and those voting against, are
printed below:
rollcall no. 1
Date: June 27, 1996.
Measure: Fiscal Year 1997 Treasury, Postal Service
Appropriations Bill.
Motion by: Mr. Hoyer.
Description of motion: To delete two general provisions
that preclude funding of abortions in connection with any
health benefit plan for Federal employees.
Results: Rejected: 16 Yeas, 22 Nays.
Members Voting Yea Members Voting Nay
Mr. Bonilla Mr. Bevill
Mr. Coleman Mr. Bunn
Mr. Dicks Mr. Forbes
Mr. Fazio Mr. Hobson
Mr. Frelinghuysen Mr. Istook
Mr. Hefner Mr. Kingston
Mr. Hoyer Mr. Knollenberg
Mrs. Lowey Mr. Lightfoot
Mr. Miller Mr. Livingston
Mr. Obey Mr. Murtha
Ms. Pelosi Mr. Myers
Mr. Porter Mr. Nethercutt
Mr. Sabo Mr. Neumann
Mr. Skaggs Mr. Packard
Mr. Thornton Mr. Parker
Mr. Visclosky Mr. Regula
Mr. Rogers
Mr. Skeen
Mrs. Vucanovich
Mr. Walsh
Mr. Wicker
Mr. Young
rollcall no. 2
Date: June 27, 1996.
Measure: Fiscal Year 1997 Treasury, Postal Service
Appropriations Bill.
Motion by: Mr. Hoyer.
Description of motion: To modify language directing the
transfer of funds from IRS to DOD for the development of Tax
Systems Modernization contracts from mandatory to permissive.
Results: Rejected: 18 Yeas, 23 Nays.
Members Voting Yea Members Voting Nay
Mr. Bevill Mr. Callahan
Mr. Bonilla Mr. Dickey
Mr. Bunn Mr. Forbes
Mr. Coleman Mr. Frelinghuysen
Mr. Dicks Mr. Hobson
Mr. Durbin Mr. Istook
Mr. Fazio Mr. Kingston
Mr. Hoyer Mr. Knollenberg
Mrs. Lowey Mr. Lightfoot
Mr. Murtha Mr. Livingston
Mr. Obey Mr. Miller
Ms. Pelosi Mr. Myers
Mr. Sabo Mr. Nethercutt
Mr. Skaggs Mr. Neumann
Mr. Thornton Mr. Packard
Mr. Visclosky Mr. Parker
Mr. Yates Mr. Porter
Mr. Young Mr. Regula
Mr. Rogers
Mr. Skeen
Mrs. Vucanovich
Mr. Walsh
Mr. Wicker
ROLLCALL NO. 3
Date: June 27, 1996.
Measure: Fiscal Year 1997 Treasury, Postal Service
Appropriations Bill.
Motion by: Mr. Hoyer.
Description of motion: To decrease the amount of money
earmarked for Tax Systems Modernization from $424.5 million to
$324.5 million.
Results: Rejected: 16 Yeas, 26 Nays.
Members Voting Yea Members Voting Nay
Mr. Coleman Mr. Bonilla
Mr. Dicks Mr. Bunn
Mr. Durbin Mr. Callahan
Mr. Fazio Mr. DeLay
Mr. Foglietta Mr. Forbes
Mr. Hefner Mr. Frelinghuysen
Mr. Hoyer Mr. Hobson
Mrs. Lowey Mr. Istook
Mr. Murtha Mr. Kingston
Mr. Obey Mr. Knollenberg
Ms. Pelosi Mr. Lightfoot
Mr. Sabo Mr. Livingston
Mr. Skaggs Mr. Miller
Mr. Thornton Mr. Myers
Mr. Visclosky Mr. Nethercutt
Mr. Yates Mr. Neumann
Mr. Packard
Mr. Parker
Mr. Porter
Mr. Regula
Mr. Rogers
Mr. Skeen
Mrs. Vucanovich
Mr. Walsh
Mr. Wicker
Mr. Young
ROLLCALL NO. 4
Date: June 27, 1996.
Measure: Fiscal Year 1997 Treasury, Postal Service
Appropriations Bill.
Motion by: Mr. Hoyer.
Description of motion: To extend the date of authorized
enhanced employee retirement ``buyouts'' from February 1, 1997
to March 31, 1997 and to allow employees eligible for
retirement to receive such ``buyouts''.
Results: Rejected: 14 Yeas, 25 Nays.
Members Voting Yea Members Voting Nay
Mr. Bevill Mr. Bonilla
Mr. Coleman Mr. Callahan
Mr. Durbin Mr. DeLay
Mr. Fazio Mr. Forbes
Mr. Foglietta Mr. Frelinghuysen
Mr. Hefner Mr. Hobson
Mr. Hoyer Mr. Istook
Mrs. Lowey Mr. Kingston
Mr. Obey Mr. Knollenberg
Mr. Sabo Mr. Kolbe
Mr. Skaggs Mr. Lightfoot
Mr. Thornton Mr. Livingston
Mr. Visclosky Mr. Miller
Mr. Yates Mr. Myers
Mr. Nethercutt
Mr. Neumann
Mr. Packard
Mr. Parker
Mr. Porter
Mr. Rogers
Mr. Skeen
Mrs. Vucanovich
Mr. Walsh
Mr. Wicker
Mr. Young
Rollcall No. 5
Date: June 27, 1996.
Measure: Fiscal Year 1997 Treasury, Postal Service
Appropriations Bill.
Motion by: Mr. Durbin.
Description of motion: To amend the previously agreed to
Durbin amendment on judicial review of federal firearms
disabilities, as amended by Mr. Obey which limited the
prohibition on judicial review to felons convicted of certain
crimes, to a strict prohibition on judicial review of relief of
all federal firearms disabilities.
Result: Rejected: 12 Yeas, 24 Nays.
Members Voting Yea Members Voting Nay
Mr. Coleman Mr. Bonilla
Mr. Durbin Mr. Callahan
Mr. Fazio Mr. Forbes
Mr. Hoyer Mr. Frelinghuysen
Mr. Istook Mr. Hobson
Mrs. Lowey Mr. Kingston
Ms. Pelosi Mr. Knollenberg
Mr. Porter Mr. Kolbe
Mr. Sabo Mr. Lightfoot
Mr. Serrano Mr. Livingston
Mr. Visclosky Mr. Miller
Mr. Yates Mr. Myers
Mr. Nethercutt
Mr. Neumann
Mr. Obey
Mr. Packard
Mr. Parker
Mr. Rogers
Mr. Skaggs
Mr. Skeen
Mr. Thornton
Mrs. Vucanovich
Mr. Walsh
Mr. Young
MINORITY VIEWS OF HON. STENY H. HOYER, HON. PETER J. VISCLOSKY, AND
HON. RONALD D. COLEMAN
We believe that it is unfortunate that because of the
Subcommittee's inadequate allocation, there are not enough
resources in the bill to adequately fund some of the basic
functions of our government. For 1997 this allocation requires
an overall reduction of $130 million in budget authority and
half a billion in outlays from the 1996 appropriated level. We
simply don't have enough money to enable certain of the
agencies funded in this bill to carry out their important
responsibilities.
While this bill funds important increases in Treasury's law
enforcement activities, many of these increases, that go far
beyond the President's request, have been made at the expense
of the Internal Revenue Service, a very important agency when
it comes to deficit reduction.
Not only does this bill halt the compliance initiative
found to enhance revenues so successfully in prior years, but
it cuts into the base funding of IRS tax enforcement programs.
Reducing tax law enforcement to $44.7 million below the current
level would result in an estimated annual revenue loss of $640
million. Cuts like this will cost, not save, money in the long
run. This bill would set aside $26 million of IRS's limited
funds to double the scope of the current pilot project on using
private collection agencies to collect overdue taxes. We
believe that until the results of this first pilot project are
complete, this $26 million would be better spent in IRS's
telephone collection system, which could generate an additional
$665 million in revenue.
This bill seriously underfunds the information systems that
are critical to processing tax returns and supporting required
financial management activities; it cuts in half funding for
tax systems modernization at the IRS, and ties the hands of the
Treasury Department such that even the operational projects
that GAO believes should be funded are halted.
We all recognize that this broad effort to update all
aspects of IRS's computer and processing systems is a high
priority that is critical as the agency prepares for the 21st
century. We also are very concerned about the lack of results
from IRS's efforts on Tax Systems Modernization (TSM). TSM has
problems--TSM has had problems for many years, through three
administrations. We're glad that Secretary Rubin and Deputy
Secretary Summers have taken decisive action to begin to fix
the TSM problems. But we disagree with the majority in trying
to solve those problems by cutting funds for existing programs,
micromanaging the Department, and mandating that the Department
of Defense alone should handle finding the IRS a suitable new
contractor to implement TSM. In fact, the Under Secretary of
Defense for Acquisition and Technology wrote Chairman Lightfoot
opposing the provision, indicating that the approach in the
bill of using DoD is ``very unlikely to be successful.''
In addition, we disagree with the majority's restrictive
TSM language and reduced funding levels for all IRS, that would
mandate the immediate elimination of as many as 7,500 positions
throughout the agency.
We are very concerned with the negative impact on both the
deficit and individual taxpayers that would result from this
approach to IRS funding and management. And our concern is
shared by the majority and minority on the Ways and Means
Committee. In a letter to Chairman Livingston signed by
Chairman Bill Archer, Ranking Minority Member Sam Gibbons,
Nancy Johnson (Chairman of the Subcommittee on Oversight), and
Robert Matsui, (Ranking Minority Member of the Subcommittee),
the Ways and Means Committee expressed its serious concern that
the funding levels in the Subcommittee's mark ``will seriously
impair the IRS's ability to perform its core
responsibilities.'' The Ways and Means Committee requested
seven major changes in the subcommittee's bill (summary
attached), only two of which were given consideration in this
bill. We believe the majority's underfunding of the IRS is a
grave mistake which must be corrected.
We remain concerned that the funding of IRS's Office of
Inspections through a joint account with the Treasury
Department's Inspector General should in no way decrease the
valuable and necessary role that the Office of Inspections
serves within the IRS. We are optimistic that the revised bill
and report language transfers the funding to a new account but
does not enhance the operational size of the Inspector General
or change the valuable functions provided by the Office of
Inspection to the IRS.
We continue to be disappointed that we are not fulfilling
our agreement with the U.S. Postal Service. When the Postal
Service became independent, we agreed to fund workers'
compensation for individuals who worked for the former Post
Office Department. There was also agreement to reimburse the
Postal Service for statutory reductions in postage rates for
certain non-profit organizations and other mailers. Once again,
we have failed to live up to our part of the agreement.
We are disappointed that the majority decided to retain a
provision added last year which restricts a federal employee's
choice of a health care insurance plan by prohibiting ``federal
funds'' from being used to purchase a policy which provides
coverage for pregnancy termination, except in instances where
the life of the mother is at risk, or where rape or incest were
the cause of the pregnancy.
It is our position that the federal funds used for the
purpose of purchasing health care coverage for federal
employees are a part of the employee's compensation package.
Federal employees, like many other employees, receive
compensation in the form of salary, health care benefits and
retirement benefits. This is their money to use. They choose a
health insurance plan and a portion of that is paid for with
their health coverage benefit. That money is no more ``federal
funds'' than is their salary after they have received it. The
choice of policies is the employee's alone. Therefore, the
committee's premise that it is the employer's right to restrict
the scope of coverage for legal medical services is wrong.
Finally, this bill unduly restricts the operations of our
newly invigorated Office of National Drug Control Policy. The
President has appointed a true leader in General McCaffrey, and
we believe the majority is mistaken in reducing the staff he
has requested even before he has an opportunity to prove their
usefulness. General McCaffrey ought to be given the staff he
needs to lead our government efforts toward a coordinated and
successful national drug control strategy. We are concerned
that the majority has unduly tied General McCaffrey's hands
before he has had an opportunity to perform.
Summary of Actions Requested by the Committee on Ways and Means
1. Funding for Non-TSM Information Systems. The
Subcommittee provided $653 million in funds for IRS Legacy
Systems, but total funding for non-TSM Information Systems is
$179.2 million and 1,700 FTEs below FY 1996 operating levels
and over $94 million below FY 1995 actual levels. In addition,
the Subcommittee proposed to completely eliminate funding for a
number of non-TSM Information Systems that are currently being
used in returns processing, and critical financial management
activities. The Ways and Means Committee strongly encourages
the Appropriations Committee to restore funding of these
important non-TSM Information Systems in order to assure that
necessary functions performed by the IRS during the 1997 tax
filing season are not disrupted and critical taxpayer services
are not interrupted.
2. Taxpayer Services. The Subcommittee proposal includes
language mandating the IRS to maintain Taxpayer Services walk-
in sites at FY 1995 levels. The Ways and Means Committee
strongly encourages the Appropriations Committee to delete this
language in order to allow the IRS the necessary flexibility to
determine how it can best serve the needs customer service need
of taxpayers.
3. Restrictions on TSM Funding. The Subcommittee proposed a
number of TSM management actions, including the fencing off of
all TSM funds until the IRS establishes a restructured
contractual arrangement with the private sector to develop TSM
programs, and transfer of TSM procurement activities to the
Department of Defense. The Ways and Means Committee strongly
encourages the Appropriations Committee to delete funding
restrictions on TSM and allow responsibility for execution of
TSM to remain with the IRS under the direction of the
Modernization Management Board recently established by the
Treasury Department.
4. Private Sector Tax Debt Collection. The Subcommittee
included a provision in its bill which transfers $13 million
from the IRS to Treasury to initiate a second private sector
debt collection program. The Subcommittee bill also includes an
additional $13 million for expansion of the current IRS private
debt collection pilot established by the FY 1996 Treasury,
Postal Service and General Government appropriation. The
collection of tax debts is a subject governed by provisions of
the Internal Revenue Code and is within the jurisdiction of the
Ways and Means Committee. We believe the Subcommittee's
provisions relating to expanding the use of private collection
agencies to collect delinquent tax debts are premature and
request that they be deleted.
5. Tax Collection Performance Measures. The Subcommittee
included a provision which prohibits the expenditure of funds
for Tax Law Enforcement after February 1, 1997, unless the IRS
develops ``adequate'' tax collection performance measures.
Since the Subcommittee's proposal provides no indication as to
the standards it will use to measure the ``adequacy'' of IRS's
tax debt collection performance measures, we believe this
provision is overly vague and places an arbitrary restriction
which poses a serious risk of loss of federal revenues. We
request that this restriction on the expenditure of Tax Law
Enforcement funds be deleted.
6. Transfer of IRS Inspection to the Treasury Inspector
General. The Subcommittee proposes to transfer $106 million and
1,300 FTE positions from the Internal Audit and investigation
functions of IRS to the Treasury Department's Office of the
Inspector General (OIG). Several years ago, the Ways and Means
Committee adopted legislation to create a statutory Inspector
General position in Treasury, with authority to handle limited
types of cases involving the IRS. We specifically rejected, at
that time, the wholesale transfer of the IRS audit and
inspection division to Treasury. Significant concerns were
raised that such an action would impair, rather than enhance,
the IRS Commissioner's management control over the agency and
would dramatically increase the risk of politicizing the tax
administration system. We continue to believe these concerns
are meritorious and we strongly object to this proposal and
request its deletion.
7. Additional Legislative Riders. The Ways and Means
Committee strongly objects, on jurisdictional grounds, to the
Subcommittee's inclusion of other substantive tax provisions in
its bill, and requests that they be deleted. These proposals
are legislative interpretations and suggested modifications of
provisions of the Internal Revenue Code. The objectionable
provisions include those with the following headings: (1)
School Bus Services; (2) Tax Policy; (3) Homeowner Insurance;
and (4) Compliance Research.
Steny H. Hoyer.
Peter J. Visclosky.
Ronald D. Coleman.