[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.