[Senate Report 104-27]
[From the U.S. Government Publishing Office]



   104th Congress 1st            SENATE                 Report
         Session
                                                        104-27
_______________________________________________________________________

                                     


                     ACTIVITIES OF THE COMMITTEE ON
                          GOVERNMENTAL AFFAIRS

                               __________

                                 REPORT

                                 of the

                   COMMITTEE ON GOVERNMENTAL AFFAIRS
                          UNITED STATES SENATE

                                and its

                             SUBCOMMITTEES

                                for the

                       ONE HUNDRED THIRD CONGRESS




   April 4 (legislative day, March 27), 1995.--Ordered to be printed
                   COMMITTEE ON GOVERNMENTAL AFFAIRS

 WILLIAM V. ROTH, Jr., Delaware, 
             Chairman
                                     TED STEVENS, Alaska
                                     WILLIAM S. COHEN, Maine
                                     FRED THOMPSON, Tennessee
                                     THAD COCHRAN, Mississippi
                                     CHARLES E. GRASSLEY, Iowa
                                     JOHN McCAIN, Arizona
JOHN GLENN, Ohio                     BOB SMITH, New Hampshire
SAM NUNN, Georgia
CARL LEVIN, Michigan
DAVID PRYOR, Arkansas
JOSEPH I. LIEBERMAN, Connecticut
DANIEL K. AKAKA, Hawaii
BYRON L. DORGAN, North Dakota
 Franklin G. Polk, Staff Director 
         and Chief Counsel
  Leonard Weiss, Minority Staff 
             Director
  Michal Sue Prosser, Chief Clerk
                                 ------                                

       COMMITTEE ON GOVERNMENTAL AFFAIRS DURING THE 103d CONGRESS

    JOHN GLENN, Ohio, Chairman
                                     SAM NUNN, Georgia
                                     CARL LEVIN, Michigan
                                     JIM SASSER, Tennessee
                                     DAVID PRYOR, Arkansas
                                     JOSEPH I. LIEBERMAN, Connecticut
                                     DANIEL K. AKAKA, Hawaii
WILLIAM V. ROTH, Jr., Delaware       BYRON L. DORGAN, North Dakota
TED STEVENS, Alaska
WILLIAM S. COHEN, Maine
THAD COCHRAN, Mississippi
JOHN McCAIN, Arizona
ROBERT F. BENNETT, Utah*
   Leonard Weiss, Staff Director
   Deborah R. Cohen, Assistant 
              Counsel
 Franklin G. Polk, Minority Staff 
    Director and Chief Counsel
  Michal Sue Prosser, Chief Clerk

----------
*Joined the Committee on October 1, 1993.
                  9SUBCOMMITTEES OF THE 103d CONGRESS
                PERMANENT SUBCOMMITTEE ON INVESTIGATIONS

    SAM NUNN, Georgia, Chairman
  JOHN GLENN, Ohio, Vice Chairman
                                     CARL LEVIN, Michigan
                                     JIM SASSER, Tennessee
                                     DAVID PRYOR, Arkansas
                                     JOSEPH I. LIEBERMAN, Connecticut
WILLIAM V. ROTH, Jr., Delaware       BYRON L. DORGAN, North Dakota
TED STEVENS, Alaska
WILLIAM S. COHEN, Maine
THAD COCHRAN, Mississippi
JOHN McCAIN, Arizona
ROBERT F. BENNETT, Utah*
                                 ------                                

                   OVERSIGHT OF GOVERNMENT MANAGEMENT

  CARL LEVIN, Michigan, Chairman
                                     DAVID PRYOR, Arkansas
                                     JOSEPH I. LIEBERMAN, Connecticut
                                     DANIEL K. AKAKA, Hawaii
                                     SAM NUNN, Georgia
WILLIAM S. COHEN, Maine              BYRON L. DORGAN, North Dakota
TED STEVENS, Alaska
THAD COCHRAN, Mississippi
JOHN McCAIN, Arizona
ROBERT F. BENNETT, Utah*
                                 ------                                

       GENERAL SERVICES, FEDERALISM, AND THE DISTRICT OF COLUMBIA

  JIM SASSER, Tennessee, Chairman
                                     JOSEPH I. LIEBERMAN, Connecticut
JOHN McCAIN, Arizona                 DANIEL K. AKAKA, Hawaii
TED STEVENS, Alaska
                                 ------                                

            FEDERAL SERVICES, POST OFFICE, AND CIVIL SERVICE

  DAVID PRYOR, Arkansas, Chairman
                                     JIM SASSER, Tennessee
TED STEVENS, Alaska                  DANIEL K. AKAKA, Hawaii
THAD COCHRAN, Mississippi
                                 ------                                

                 REGULATION AND GOVERNMENT INFORMATION

JOSEPH I. LIEBERMAN, Connecticut, 
             Chairman
                                     SAM NUNN, Georgia
                                     CARL LEVIN, Michigan
THAD COCHRAN, Mississippi            BYRON L. DORGAN, North Dakota
WILLIAM S. COHEN, Maine
JOHN McCAIN, Arizona

----------
*Joined the Committee on October 1, 1993.

                                 (iii)
104th Congress                                                   Report
                                 SENATE

 1st Session                                                     104-27
_______________________________________________________________________


 
 ACTIVITIES OF THE COMMITTEE ON GOVERNMENTAL AFFAIRS DURING THE 103RD 
                                CONGRESS

                                _______


   April 4 (legislative day, March 27), 1995.--Ordered to be printed

_______________________________________________________________________


  Mr. Roth, from the Committee on Governmental Affairs, submitted the 
                               following

                              R E P O R T
    This report reviews the legislative and oversight 
activities of the Committee on Governmental Affairs during the 
103rd Congress. These activities parallel the broad scope of 
responsibilities vested in the Committee by the Legislative 
Reorganization Act of 1946, as amended, rule XXV(1)(k) of the 
Standing Rules of the Senate, and additional authorizing 
resolutions.
                                CONTENTS

                                                                   Page
  I. Highlights of activities.........................................2
          National performance review and other management            2
              initiatives.
              Information management.............................     3
              Procurement reform.................................     4
              Federal disaster management........................     5
              General Accounting Office..........................     5
          Federal personnel issues...............................     6
          Federalism.............................................     7
          Nuclear nonproliferation issues........................     7
          Environmental and energy issues........................     8
 II. Committee jurisdiction...........................................9
III. Bills and resolutions referred and considered...................10
 IV.  Hearings.......................................................10
  V. Reports, prints and studies.....................................11
 VI. Official communications.........................................12
VII. Legislative actions.............................................12
          Measures enacted into law..............................    12
          Measures favorably reported from GAC and passed by the     16
              Senate.
          Measures favorably reported from GAC but died in 103d      17
              Congress.
VIII.
     Description of major full committee hearings....................19
 IX. Presidential nominations........................................28
  X. Activities of the subcommittees.................................30
          Subcommittee on Federal Services, Post Office, and         30
              Civil Service.
          Subcommittee on General Services, Federalism and the       35
              District of Columbia.
          Subcommittee on Permanent Investigations...............    40
          Subcommittee on Oversight of Government Management.....    52
          Subcommittee on Regulation and Government Information..    55
          Task Force on Waste, Fraud and Abuse...................    60
                      I. Highlights of Activities

      national performance review and other management initiatives

    A highlight of the 103rd Congress was the support of 
Chairman Glenn and Ranking Member Roth for the government 
reform efforts of the National Performance Review (NPR). Some 
significant initiatives also arose independently in the 
Committee, such as procurement reform and performance 
measurement. In 1993, President Clinton signed into law two 
Governmental Affairs initiatives: (1) the ``buy-out'' bill 
(i.e., the ``Federal Workforce Restructuring Act''); and (2) 
the ``Government Performance and Results Act.''
    In 1994, in addition to procurement reform, the GAC 
considered the NPR's omnibus government reform bill, H.R. 3400. 
While a few issues in the jurisdiction of other committees 
moved on their own, most were not acted upon--but not in the 
Governmental Affairs Committee. The Committee took those 
provisions of H.R. 3400 under its jurisdiction and, after a 
hearing, moved them as a stand-alone bill, S. 2170, the 
``Government Management Reform Act.''
    After being reported by the Committee, S. 2170 passed the 
Senate and House and was signed into law by President Clinton. 
The most important provisions of the law involve the expansion 
of the Chief Financial Officers Act, but it also requires an 
annual government-wide consolidated financial statement, 
expands the use of electronic funds transfer to simplify and 
save money in paying Federal wages and benefits, simplifies 
agency reporting requirements, and establishes SES leave 
accumulation caps and congressional COLA limits (to that of GS 
levels).
    In addition to work on specific management issues, the 
Committee continued to oversee overarching management issues 
such as Office of Management and Budget (OMB) management 
leadership. The Committee held confirmation hearings for the 
OMB Director and Deputy Director for Management and pressed all 
nominees to commit to making management a priority.
    Along with its sister committee on the House side, 
Government Operations, the Committee exercised oversight over 
OMB's reorganization, known as ``OMB 2000''. In this 
reorganization, OMB has been attempting to integrate its 
management functions with its budget functions. GAO was tasked 
with assessing whether OMB's management functions, such as CFO 
Act implementation, were being adequately performed in the 
context of the new ``Resource Management Offices'' (RMO's).
    In total, the Committee held over a dozen hearings on 
waste, fraud, abuse and mismanagement at various Federal 
agencies including the Internal Revenue Service, U.S. Customs 
Service, the Department of Energy (DOE) and the Environmental 
Protection Agency (EPA). Three hearings were held solely on the 
issue of financial management at the Department of Defense 
(DOD).
    A sampling of some other findings reveals:
          The Customs Service may have been losing billions in 
        revenue because it accepted, at face value, information 
        reported by importers.
          Many EPA contracts were not awarded on a competitive 
        basis, had possible conflict of interest problems, or 
        were for nonessential services.
          The Army made unauthorized payroll payments in one 
        month to 2,100 individuals totaling $6.1 million.
          As of January 1994, the Army had made about $8 
        million in unauthorized payments to soldiers, including 
        repeated payments to 76 deserters and six ghost 
        employees.
    In addition, the Committee convened its annual hearings in 
1993 and 1994 to review the findings in the General Accounting 
Office's (GAO) high risk reports, continuing the Committee's 
broad-based review of government management, focusing on cost 
savings, improvements to general and financial management, and 
the National Performance Review, as initiatives to make 
government more effective.

Information management

    In the realm of information management, after a year-long 
effort, the Committee produced a bipartisan consensus 
compromise bill to reauthorize the Paperwork Reduction Act, 
which subsequently passed the Senate. The bill, a compromise 
between S. 560 (Senators Nunn, Bumpers and Roth) and S. 681 
(Senators Glenn and Levin), would have strengthened paperwork 
clearance and information resources management responsibilities 
for both OMB and Federal agencies. On the issue of paperwork 
clearance, the bill also addresses the major business community 
concern by overturning the Supreme Court decision, Dole v. 
United Steelworkers, to ensure that agency information 
disclosure requirements are cleared by OMB.
    At the request of Senator Glenn, GAO evaluated the design 
and implementation of DOD's Corporate Information Management 
(CIM) initiative. Committee interest originated in initial GAO 
audits of DOD financial management efforts, but this time GAO's 
work expanded beyond financial management to cover CIM 
initiatives in logistics, medical care, and technical areas. 
such as data standardization, the CASE (integrated computer-
aided software engineering) procurement, and consolidation of 
data processing operations. In each area, GAO has found 
troubling examples of poor planning, systems consolidation 
taking place before process re-engineering, and inadequate 
direction from top DOD officials. GAO has begun a project for 
the Committee to try to apply to CIM the ``IRM Best Practices'' 
lessons also integrated into the Paperwork Reduction Act 
legislation.
    In September 1994, the congressional Office of Technology 
Assessment (OTA) released a study, ``Information Security and 
Privacy in Network in Network Environments,'' which had been 
requested by Senators Roth and Glenn. The report describes the 
vulnerabilities faced by government computers in the new age of 
telecommunications and networks--information on more people and 
important government matters is accessible through networks and 
over phone lines than ever before. The OTA report recommended 
congressional oversight and legislative action on the Privacy 
Act, the Computer Security Act, and specific Federal agencies, 
such as the National Security Agency, the National Institute of 
Standards and Technology, OMB, and GSA.
    The OTA report represents a culmination in the 103rd 
Congress of the Committee's continuing attention to computer 
security and privacy issues. In a financial management hearing 
on the Internal Revenue Service, for example, the Committee 
revealed serious lapses in security and privacy controls--IRS 
employees were found to be browsing through taxpayer records. 
In the Committee's hearing on the reauthorization of the 
Paperwork Reduction Act, witnesses also testified on the need 
to strengthen security and privacy controls in the context of 
information resources management. Earlier in the 103rd 
Congress, the Committee also revealed weaknesses in privacy 
controls in proposed health care reform systems.
Procurement Reform

    The passage by Congress of the Federal Acquisition 
Streamlining Act of 1994 (FASA) constituted a critical victory 
in the war against government inefficiency and one of the most 
significant accomplishments of the Committee during the 103rd 
Congress. The Act is a comprehensive government-wide 
procurement reform effort aimed at streamlining the acquisition 
process by reducing paperwork burdens through revision and 
consolidation of acquisition statutes to eliminate redundancy, 
provide consistency, and facilitate implementation.
    The law is the culmination of over a decade of legislative 
and oversight effort led by the Government Affairs in 
conjunction with the Armed Services and Small Business 
Committees of both the Senate and the House, to make sense out 
of the complex process of supplying the Federal government with 
the goods and services it needs to operate. NPR recommendations 
regarding increased reliance on acquisitions of commercial 
items, an increased ``simplified acquisition threshold'' of 
$100,000 and others mirroring those in the Report of the 
Advisory Panel on Streamlining and Codifying Acquisition Laws 
pursuant to Section 800 of the National Defense Authorization 
Act for Fiscal Year 1991 (the so-called ``800 Panel'') also 
figured significantly.
    FASA seeks to address concerns raised regarding the 
administrative burden associated with the government's 
specialized requirements from cost accounting standards to 
socioeconomic laws to the government's oversight tools, which 
have resulted in the bifurcation of the government and 
commercial markets. The law attempts to minimize this 
undesirable consequence of these well-intentioned provisions in 
an effort to strike a balance between efficiency and oversight.
    The Committee also had jurisdiction to oversee a section of 
the implementing legislation for the North American Free Trade 
Agreement (NAFTA) and the GATT (General Agreement on Tariffs 
and Trade) and Uruguay Round treaties. These relevant sections 
were related to liberalizing the procurement markets of 
signatory countries.

Federal Disaster Management

    During the 103rd Congress, the Committee held hearings and 
favorably reported legislation designed to improve the 
government's response to disasters, particularly those causing 
major devastation. The main objectives were as follows:
          1. Improving the Federal response to catastrophic 
        disasters by clarifying the Federal Emergency 
        Management Agency's (FEMA) pre-disaster declaration 
        authority, creating a new category of disaster 
        (``catastrophic'') for events which overwhelm State and 
        local capabilities and triggers a heightened federal 
        response, including utilization of DOD resources, 
        providing direct White House involvement in 
        coordinating this response, and establishing rapid 
        disaster assessment ``strike'' teams;
          2. Elevating and refining the Federal Response Plan 
        by giving it the full weight and scope of Presidential 
        authority, requiring all hazards training and exercises 
        by the National Guard and State and local authorities, 
        developing an inventory of federal disaster resources, 
        and improving the system of disaster volunteers and 
        donated goods;
          3. Revitalizing FEMA's mission, organization, and 
        structure to encompass an all-hazards approach to 
        disaster management, mitigation, and preparedness to 
        minimize the effects of natural or manmade disasters by 
        integrating all government resources, setting 
        qualification standards for FEMA officers, stressing 
        cross-training approaches at the National Academy for 
        Fire Prevention and Control and the Emergency 
        Management Institute, and enhancing university-based 
        research for disaster management methods and 
        technologies;
          4. Improving State preparedness, accountability, and 
        performance through streamlined, flexible Federal 
        emergency grants and establishing State performance 
        standards to determine the eligibility for such grants 
        and the cost-share for other related federal disaster 
        assistance;
          5. Preventing fraud and price gouging following 
        Presidentially-declared disasters by making such crimes 
        federal offenses, establishing intergovernmental 
        antifraud task forces, and providing fraud prevention 
        information to victims of disasters.

General Accounting Office

    In May, 1993, the Committee entered into a contract with 
the National Academy of Public Administration (NAPA), under the 
authority of section 13(b)(1) of S. Res. 71, for a 
comprehensive examination of the General Accounting Office 
(GAO). This report, ``The Roles, Mission, and Operation of the 
U.S. General Accounting Office'' was released by the Committee 
on October 6, 1994. In a joint statement, Chairman Glenn and 
Senator Roth, the Ranking Minority Member, said, in part:

          Congress depends on GAO for accurate, fair audits and 
        evaluations. That should be GAO's mission and service 
        to Congress and the nation. In recent years, there has 
        been growing concern over the operation of GAO, and its 
        relationship to Congress and the Executive Branch, the 
        quality and objectivity of its reports, and its very 
        role. This report makes a number of recommendations 
        designed to ensure that GAO's effectiveness, reputation 
        and credibility will be preserved as we move into the 
        next century.
          Among the issues raised are: the scope of GAO's work, 
        the use of its resources, the quality of its work 
        products, the objectivity of its findings and 
        conclusions, and the manner in which reports are 
        presented and released. The NAPA report suggests that 
        GAO's mission and use by Congress has been broadened 
        and expanded in recent years, placing new demands on 
        the agency's core purpose, skills, and resources. This, 
        in turn, has heightened GAO's involvement in policy 
        questions and raised concerns by some over the exercise 
        of GAO's responsibilities and impartiality.
          The report makes no recommendation for revising GAO's 
        statutory charter and concludes there is no evidence of 
        deliberate political or partisan bias in its work. 
        However, there are questions surrounding whether GAO 
        should undertake certain studies that may be 
        politically-sensitive and controversial in nature. We 
        recognize that there is always an inherent tension in 
        any political process. And the report does cite aspects 
        in GAO's relations with Congress calling for further 
        examination. These include: increased sharing of 
        information with Congress, such as strategic plans and 
        on-going projects, improved performance indicators, 
        utilization of outside peer review groups, assignment 
        of detailees, and the use of agency comments on 
        reports.
          These matters deserve our consideration. All of the 
        issues raised in the report will be the subject of 
        thorough oversight hearings in the next Congress. GAO 
        is an important institution, and one we rely on. It 
        requires that it have our confidence and trust to 
        effectively meet its future challenges and preserve its 
        reputation and competence.

                        federal personnel issues

    In the 103rd Congress, the Committee continued to exercise 
active oversight over a major part of its jurisdiction: issues 
affecting Federal employees. In the past, this oversight had 
largely been of issues affecting employees of the Executive 
branch, but this time Legislative branch employees were 
included when the Committee considered the ``Congressional 
Accountability Act'' which would have applied certain Acts of 
Congress to employees of Congress or congressional agencies. A 
hearing was held on this legislation, and the bill was reported 
from Committee, but no further action was taken in the 103rd 
Congress.
    The Committee also considered S. 404, the ``Federal 
Employees Fairness Act'' which, if passed, would have improved 
the effectiveness of administrative review of Federal 
employment discrimination claims. The Committee favorably 
reported the bill, but no further action was taken in the 103rd 
Congress.
    After a multi-year long struggle, S. 185, the ``Hatch Act 
Reform Amendments of 1993'' was passed by the Congress and 
signed into law by the President. S. 185 amended the 1939 Hatch 
Act statute that prohibited most Federal civilian and postal 
employees from being politically active, and now allows these 
civil servants to participate voluntarily, as private citizens, 
in the Nation's political processes with some restrictions. The 
new law retains all prohibitions against the use of one's 
official position to influence other employees and increased 
penalties for those convicted of such abuse.
    The Congress also passed and the President signed into law 
S. 1535, the ``Federal Workforce Restructuring Act'' during 
this Congress. The passage of this bill allows agencies to 
offer targeted voluntary separation incentives to encourage 
employees to resign or retire from Federal service.
    Finally, at the request of Chairman Glenn, GAO prepared two 
reports. The first, ``Political Appointees: 10 Year Staffing 
Trends at 30 Federal Agencies'' (GGD-93-74FS; April, 1993), 
examined the historical trends in the employment of noncareer 
and Senior Executive Service (SES) and Schedule C appointees 
and full-time permanent employees at the 30 federal agencies 
with the largest number of political appointees between 1981 to 
1991. The second study, ``Political Appointees: Turnover Rates 
in Executive Schedule Positions Requiring Senate Confirmation'' 
(GGD-94-115FS; April, 1994), presented information on the 
periods of service for persons appointed by the President to 
federal Executive positions with the advice and consent of the 
Senate over a similar 10-year span.

                               federalism

    A new issue tackled by the Committee during the 103rd 
Congress was that of unfunded Federal mandates; the practice of 
passing Federal laws applicable to States and localities 
without providing funding. The Committee held hearings on the 
problems and burdens facing State and local governments in 
implementing Federal mandates and on Federal mandate reform and 
relief legislation. The purpose of this legislation, S. 993, 
was to end the practice of imposing unfunded Federal mandates 
on State and local governments and to ensure that the Federal 
government pays the costs incurred by those governments in 
complying with certain requirements under Federal statutes and 
regulations. A subsequent bill, S. 1604, was introduced by 
Chairman Glenn to provide for greater regulatory flexibility 
for small governments, lessen compliance burdens on small 
governments, and test innovative regulatory methods). It was 
known as the Federal Mandate Accountability and Reform Act of 
1994. The Committee reported the legislation as an amendment in 
the nature of a substitute, but no further action was taken.

                    nuclear nonproliferation issues

    Continuing the long leadership by the Chairman to promote 
policies to prevent nuclear proliferation, the Committee 
pursued a variety of oversight activities throughout the 103rd 
Congress with respect to nuclear export controls and 
nonproliferation issues. Four hearings were held on the 
following topics: bomb exports, the U.S. strategic nuclear 
triad, disposing of plutonium in Russia, and proliferation 
threats of the 1990s.
    The key legislative accomplishment of the Committee in this 
area was the enactment on April 30,1994 of the Nuclear 
Proliferation Prevention Act of 1994. This Act had been 
introduced originally by Senator Glenn on May 27, 1993 as the 
Omnibus Nuclear Proliferation Control Act of 1993 and was 
passed by the Senate by unanimous consent on January 31, 1994 
as Title VIII of the Foreign Relations Authorization bill 
(enacted as P.L. 103-236). The Act authorizes the President to 
impose stiff economic sanctions against companies and countries 
that engage in illicit sales of goods or technology with 
nuclear weapons-related applications. The Act also expands 
public access to data about U.S. exports, eliminates a special 
waiver for Pakistan from U.S. nonproliferation legislation, and 
recommends 24 measures to strengthen the International Atomic 
Energy Agency.
    At the request of Chairman Glenn during the 103rd Congress, 
several reports and studies were produced by the GAO and OTA on 
nonproliferation issues. Topics were wide-ranging and included 
export controls, plutonium, chemical and biological defense, 
issues related to the former Soviet Union and Japan, U.S. 
nuclear tracking capabilities, inventory management of 
missiles, ballistic missile defense, challenges facing the 
International Atomic Energy Agency, and technologies and 
proliferation of weapons of mass destruction. In addition, the 
Congressional Research Service prepared a ``Nuclear 
Proliferation Factbook'' and ``Nuclear Non-Proliferation Act 
Reporting Requirements.''
    Finally, the Committee published volumes 4 and 5 of its 
newsletter, Proliferation Watch, chronicling worldwide and 
national developments relating to the global spread of nuclear 
weapons and other weapons of mass destruction.
                    environmental and energy issues

    During the 103rd Congress, Senator Glenn continued his 
active oversight of the Department of Energy's Environment 
Safety and Health programs. A total of nine GAO reports were 
released by Chairman Glenn during this Congress on these issues 
alone. The Committee has continued its efforts to foster more 
responsible environmental cleanup practices and to protect 
public health and safety at such facilities as the Hanford 
Nuclear Reservation, the Fernald plant, and the Savannah River 
facility.
    New revelations in late 1993 about the U.S. government's 
Cold War involvement in exposing citizens to radiation 
(including a report released by the Committee concerning 
heretofore secret ``planned releases'' of radiation at DOE and 
DOD sites) were the topic of two hearings during 1994. The 
first of these hearings examined, in part, whether appropriate 
controls are currently in place to prohibit improper human 
experimentation by Government agencies. The second hearing 
examined the progress made by the Advisory Committee on Human 
Radiation Experiments in their effort to evaluate the Cold War 
radiation experiments.
    Two additional hearings focused on the Nuclear Regulatory 
Commission's ability (or inability) to properly work with other 
Federal and state agencies in the regulation of various aspects 
of radiation. The first hearing looked at the Federal 
government's regulation of medical radiation, and specifically 
the gaps and overlaps arising from FDA and NRC regulation. The 
second hearing, held jointly with the House Subcommittee on 
Environment, Energy and Natural Resources, explored radioactive 
contamination of sewage sludge, and the failure of NRC and EPA 
regulation to adequately control this pollution.
    In addition to several other GAO and OTA reports on topics 
ranging from energy conservation to nuclear regulation, the 
Committee also issued its own report, ``U.S. Department of the 
Interior: Environmental Problems and Issues'' (September 1993). 
The report was issued in conjunction with a hearing on the same 
topic.
    Finally, for the third consecutive Congress, Senator Glenn 
introduced legislation, S. 171, to elevate EPA to Cabinet-level 
status. Although the Committee held hearings on S. 171, it was 
reported out of Committee, and it passed the Senate twice, the 
House failed to take any action, and the measure died with the 
adjournment of the 103rd Congress.
    Each of the subcommittees also examined a number of issues 
within their individual jurisdictions. The Subcommittee on 
Federal Services, Post Office and Civil Service held hearings 
on and examined a variety of relevant postal issues, Federal 
licensing procedures for importing and selling firearms, 
Federal performance, operational testing to ensure better 
weapons for our troops, arms export licensing, and the Federal 
role in child support enforcement.
    The Subcommittee on General Services, Federalism and the 
District of Columbia examined a myriad of issues relevant to 
the District of Columbia and the General Services 
Administration.
    Important hearings were held on the oversight of the 
insurance industry and Blue Cross/Blue Shield programs, 
corruption in professional boxing, abuses in Federal student 
grant programs, criminal aliens in the United States, and 
international organized crime and its impact on the U.S. by the 
Permanent Subcommittee on Investigations.
    The Oversight of Government management Subcommittee 
examined ethics reform, NAFTA, oversight of Federal property 
management, government contracting, oversight of the FDIC, 
oversight of U.S.-Japan auto parts framework negotiations, 
oversight of EPA's implementation of the nonattainment 
provisions of the Clean Air Act in the Lake Michigan region, 
and the Navy's mismanagement of the Sealift Tanker Program.
    The Subcommittee on Regulation and Government Information 
held hearings on contracting problems at the RTC, the adequacy 
of HCFA information systems and the collection and privacy of 
health care information, assuring the preservation and access 
to public papers of Supreme Court justices, at-home business 
opportunity scams, international consumer fraud, using new 
technology to improve services and cut costs, video games 
violence, crisis in the availability of life-saving medical 
devices, and deceptive invention marketing scams.
    Finally, the Task Force on Waste, Fraud and Abuse held 
hearings on the overbuilding of Federal courthouses, the 
accountability and management of DOD facilities requirements, 
criminal debt collection, drug pricing, and the Interstate 
Identification Index.

                       II. Committee Jurisdiction

    In the 95th Congress, the jurisdiction and functions of the 
Committee on Governmental Affairs were substantially enlarged 
with the Senate approval of the Committee System Reorganization 
Amendments of 1977 (S. Res. 4, 95-1, February 4, 1977). S. Res. 
4 also changed the Committee's name from the Committee on 
Government Operations to the Committee on Governmental Affairs.
    Rule XXV(1)(k) of the Standing Rules of the Senate requires 
reference to this Committee of all proposed legislation, and 
other matters, dealing with (1) archives of the United States; 
(2) budget and accounting measures, other than appropriations, 
except as provided in the Congressional Budget Act of 1974; (3) 
census and collection of statistics, including social and 
economic statistics; (4) congressional organization, except for 
matters which amend the rules or orders of the Senate; (5) 
Federal civil service; (6) Government information; (7) 
intergovernmental relations; (8) municipal affairs of the 
District of Columbia; (9) organization and management of U.S. 
nuclear export policy; (10) organization and reorganization of 
the Executive Branch of the Government; (11) Postal Service; 
and (12) status of officers and employees of the United States 
including their classification, compensation and benefits.
    The Committee is further authorized and directed to (1) 
receive and examine reports of the Comptroller General of the 
United States and to submit to the Senate such recommendations 
as the Committee deems advisable; (2) study the efficiency, 
economy and effectiveness of all agencies and departments of 
the Government; (3) evaluate the effects of laws enacted to 
reorganize the legislative and executive branches of the 
Government; and (4) study the intergovernmental relations 
between the United States and States and municipalities, and 
between the United States and international organizations of 
which the United States is a member.
    In addition, the Committee has primary oversight and 
legislative jurisdiction over the General Accounting Office, 
the Office of Personnel Management, the Office of Management 
and Budget, the Postal Service, and the General Services 
Administration, and processes all legislation relating to the 
disposal and the negotiated sales of federal surplus property.

           III. Bills and Resolutions Referred and Considered

    Two hundred five Senate bills and 51 House bills were 
referred to the Committee for consideration during the 103rd 
Congress. Three original bills came out of the Committee. One 
amendment was referred to the Committee. In addition, two 
simple Senate resolutions and four Concurrent Senate 
resolutions were referred to the Committee. No joint 
resolutions were referred to the Committee. No reorganization 
plans were submitted. Of the legislation received and 
considered, 41 bills were reported, 34 became law, 0 were 
vetoed, 1 resolution was agreed to, and 1 resolution was 
incorporated into a larger Senate resolution.

                              IV. Hearings

    During the 103rd Congress, the Committee and its five 
Subcommittees held a total of 119 days of hearings on numerous 
nominations and a wide variety of legislative and oversight 
issues. At the full Committee level, a number of important 
topics were examined, including:
    (1) Transition recommendations and high risk reports; (2) 
EPA elevation to Cabinet level; (3) Nuclear proliferation 
threats in the 1990s; (4) Disposing of plutonium in Russia; (5) 
Improving governmental organization and performance; (5) 
Breakdown of IRS tax enforcement regarding multi-national 
corporations; (6) Human genome diversity project; (7) Hatch Act 
Reform Amendments; (8) Federal regulation of medical radiation 
uses; (9) Rebuilding FEMA; (10) Federal Employees Fairness Act; 
(11) Evaluation of the Triad; (12) EPA contract management 
problems; (13) DOD financial management; (14) Problems at the 
Department of Agriculture; (15) Waste and Abuse at IRS and 
Customs; (16) Environmental problems in the Federal government; 
(17) Federal Workforce Restructuring Act; (18) Federal mandates 
on state and local governments and accompanying legislation; 
(19) NAFTA statistics; (20) The Federal government's role in 
human radiation and other scientific experiments; (21) OMB's 
plan to make government work; (22) Government Reform and 
Savings Act; (23) Federal Acquisition Streamlining Act (held 
jointly with the Senate Armed Services Committee); (24) Federal 
policies governing the introduction of non-indigenous plant and 
animal species; (25) Contract and financial management at DOE; 
(26) Federal telecommunications policy; (27) Overbuilding of 
Federal courthouses; (28) Health care information management; 
(29) Health care reform and FEHBP; (30) Past U.S. exports of 
nuclear dual-use goods and technologies to countries with 
illicit nuclear weapons programs; (31) Regulatory review and 
paperwork reduction; (32) Reauthorization of the FEMA Emergency 
Food and Shelter National Board Program; (33) Radioactive 
contamination at sewage treatment plants (held jointly with a 
House Environment Subcommittee); (34) Military construction; 
(35) Federal criminal and restitution debt collection; (36) 
Congressional coverage legislation; (37) High risks and 
emerging fraud at IRS, student loan programs and HUD; (38) 
Differences in international pricing policies of prescription 
drug manufacturers; (39) Review of the audited financial 
statements and financial management practices of Federal 
agencies; (40) Full voting representation in Congress for the 
District of Columbia; and (41) Interstate Identification Index.

                     V. Reports, Prints and Studies

    During the 103rd Congress, the Committee and its 
Subcommittees prepared and issued 29 reports, special prints 
and studies on these topics, among others:
    (1) Lobbying Disclosure Act; (2) Department of the 
Environment Act; (3) Hatch Act Reform Amendments; (4) 
Government Performance and Results Act; (5) Independent Counsel 
Reauthorization Act; (6) Reauthorization of the National 
Historical Publications and Records Commission; (7) Federal 
Employee Fairness Act; (8) Government Streamlining and Reform 
Act; (9) North American Free Trade Agreement Implementation Act 
(jointly with several other committees); (10) Federal Workforce 
Restructuring Act; (11) Congressional Gifts Reform Act; (12) 
Federal Acquisition Streamlining Act; (13) District of Columbia 
Justice Reform Act; (14) Government Management Reform Act; (15) 
Reauthorization of the Office of Government Ethics; (16) 
Federal Mandate Accountability and Reform Act; (17) Paperwork 
Reduction Act; (18) FEGLI Living Benefits Act; (19) 
Congressional Accountability Act; and (20) Federal Disaster 
Preparedness and Response Act.

                      VI. Official Communications
    During the 103rd Congress, a total of 1,124 official 
communications were submitted to the Committee. Of these, 40 
were from the Comptroller General of the United States, and 
1,084 were from the President of the United States and other 
executive departments. These communications included reports to 
advise and inform the Congress, required annual or semi-annual 
agency budget and activities summaries, and requests for 
legislative action. The Committee also received 70 petitions 
and memorials.

                        VII. Legislative Actions

    For information not included in this section, please refer 
to the Committee's legislative calendar.
    The Committee was extremely productive in the 103rd 
Congress. Important legislation was reported by the Committee, 
approved by Congress and signed by the President in a variety 
of areas within the Committee's jurisdiction. Following are 
brief legislative histories of selected measures referred to 
the Committee, and in some cases, drafted by the Committee, 
which: (1) became public law; (2) were favorably reported from 
the Committee and passed by the Senate; and (3) were favorably 
reported from the Committee but which died in the 103rd 
Congress.

                       measures enacted into law

Government Performance and Results Act of 1993 (Public Law 103-62)

    S. 20, the Government Performance and Results Act of 1993, 
introduced by Senator Roth on January 21, 1993, with Senators 
Glenn, Graham, Metzenbaum, McCain, Akaka, Robb, and Lugar as 
cosponsors, provides for the establishment, testing, and 
evaluation of strategic planning and performance measurement in 
the Federal Government. It is to improve the efficiency and 
effectiveness of Federal programs by establishing a system to 
set goals for program performance and measuring results. 
Senator Roth first introduced this legislation in 1990.
    The bill also requires that, beginning in FY 1994, there 
shall be at least 10 three-year pilot projects in program 
performance, goal setting, measurement, and reporting, and at 
least five two-year pilot projects in greater managerial 
flexibility in return for commitments to greater program 
performance. In 1997, OMB and GAO shall report on the results 
of the pilot projects. By FY 1998, the requirements of the Act 
for five-year strategic planning, annual program performance 
plans, and annual program performance reports shall come into 
force governmentwide. Also in 1997, OMB will begin at least 
five two-year pilot projects in performance budgeting.
    A hearing was held on the bill on March 11, 1993. On March 
24, 1993, the Committee voted to report S. 20 as amended by 
Senators Glenn and Pryor (S. Rept. 103-58). By voice vote, S. 
20 passed the Senate with amendment on June 23, 1993 and passed 
the House by voice vote on July 15, 1993. The President signed 
S. 20 into law on August 3, 1993.

The Hatch Act Reform Amendments of 1993 (Public Law 103-94)

    S. 185 was introduced by Chairman Glenn and ten cosponsors 
on January 26, 1993 and referred to the Governmental Affairs 
Committee. Subsequently, it was marked up by the Committee on 
May 11 and May 13, 1993. An amendment in the nature of a 
substitute, offered by Chairman Glenn, was approved by voice 
vote.
    The text of S. 185 was passed by the Senate on July 20, 
1993, as an amendment in the nature of a substitute to H.R. 20. 
The House did not request a conference on this bill and passed 
the amended text of H.R. 20, clearing the measure for the 
President's signature. It was signed into law on October 6, 
1993.
    Public Law 103-94 amended the 1939 Hatch Act statute that 
prohibited most Federal civilian and postal employees from 
being politically active. The new law allows these civil 
servants to participate voluntarily, as private citizens, in 
the Nation's political processes with some restrictions. The 
new law retains all prohibitions against the use of one's 
official position to influence other employees and increased 
penalties for those convicted of such abuse. In addition, it 
includes language that covers political recommendations 
regarding civilian personnel actions and allows for garnishment 
of Federal employees' wages.

The Federal employees Leave Sharing Amendments Act of 1993 (Public Law 
        103-103)

    S. 1130 was a bill to provide for the continuing 
authorization of Federal employee leave transfer and leave bank 
programs. It reauthorizes the Federal Employees Leave Sharing 
Act of 1988 to make both the leave transfer and leave bank 
programs permanent. In addition, the bill: (1) provides that 
advanced leave shall not be considered when determining 
eligibility for donated leave; (2) eliminates the requirement 
that leave accrued during a medical emergency be set aside 
until the medical emergency has terminated; and (3) authorizes 
employees to participate in both the leave transfer and leave 
bank programs.
    The Committee favorably reported the bill without amendment 
on June 24, 1993, and it passed the full Senate without 
amendment by voice vote on July 14, 1993. The House passed an 
amended version of the bill by voice vote on September 21, 
1993. The President signed S. 1130 into law on October 8, 1993.

Trade Treaty Implementing Legislation

    On November 10, 1993, the Committee held a hearing which 
examined the methodology used by the Commerce Department in 
estimating the gains in U.S. jobs and exports as a result of 
the North American Free Trade Agreement. On November 18, 1993, 
the Committee marked up Subtitle G of Title III of S. 1627, 
legislation to implement the North American Free Trade 
Agreement. These provisions seek to expand and open up the 
government procurement markets of Mexico, the United States, 
and Canada to companies from those nations. The legislation was 
reported out unanimously, without recommendation, by the 
Committee.
    On October 5, 1994, the Committee voted unanimously to 
report, without recommendation, Section 102 of Subtitle A, 
Title I and Subtitle E of Title III of S. 2467, legislation to 
implement the Uruguay Round Trade Agreement. Section 102 
addresses issues concerning the sovereign powers of State 
governments under the Constitution and ensures that the 
authority of the new World Trade Organization does not 
supersede these powers. Subtitle E establishes criteria and 
procedures to further liberalize the government procurement 
markets of the member nations of the General Agreement on 
Tariffs and Trade (GATT) Government Procurement Code.

The Federal Workforce Restructuring Act of 1993 (Public Law 103-226)

    S. 1535 was introduced on October 7, 1993 by Senator Glenn, 
with Senators Pryor and Stevens as cosponsors, and was referred 
to the Committee on Governmental Affairs. The Committee marked 
up S. 1535 on November 9, 1993. Six amendments were offered and 
accepted to the bill. The Committee on Governmental Affairs 
reported out S. 1535 by a vote of 11-0.
    The text of S. 1535 was enacted into law, with amendments, 
in the context of a conference agreement on H.R. 3345 (the 
House companion bill). It was signed into law on March 30, 
1994.
    Public Law 103-226 allows agencies to offer targeted 
voluntary separation incentives, through March 31, 1995, to 
encourage employees to resign or retire from Federal service. 
The financial payments would be the lesser of $25,000 or the 
amount an employee would be paid in severance pay if his or her 
job was being abolished. It requires overall government caps on 
Full-Time Equivalent (FTE) positions, from Fiscal Year 1994 
through Fiscal Year 1999, in order to reduce Federal employment 
by 272,000 positions.

The Federal Acquisition Streamlining Act of 1993 (Public Law 103-355)

    On October 26, 1993 Senator Glenn, along with Senators 
Bingaman, Levin, Nunn, Bumpers, and Lieberman introduced S. 
1587, the Federal Acquisition Streamlining Act (``FASA''). On 
March 24, 1994, Senators Roth and Cohen introduced S. 1982, the 
Federal Acquisition Management Improvement Act of 1994. 
Subsequently, S. 1587, some aspects of S. 1982, along with some 
Administration recommendations, were blended together into a 
Committee substitute amendment sponsored by Senators Glenn, 
Roth, Levin, Cohen, and Nunn. The Committee Substitute was 
reported out of the Governmental Affairs Committee on April 26, 
1994. The Act is a comprehensive government-wide procurement 
reform effort aimed at streamlining the acquisition process by 
reducing paperwork burdens through revision and consolidation 
of acquisition statutes to eliminate redundancy, provide 
consistency, and facilitate implementation.
    This law is the culmination of over a decade of legislative 
and oversight effort by the Governmental Affairs Committee and 
others to make sense out of the complex process of supplying 
the federal government with the goods and services it needs to 
operate. Included in the final product are many recommendations 
from the Report of the Advisory Panel on Streamlining And 
Codifying Acquisition Laws pursuant to Section 800 of the 
National Defense Authorization Act for Fiscal Year 1991 (the 
so-called 800 Panel) and the ``National Performance Review'' 
led by Vice President Gore. Major reforms were made in the 
areas of acquisition management, electronic commerce, the 
simplified acquisition threshold, commercial items and pilot 
programs.
    Three joint hearings were conducted on S. 1587 in 1994 by 
the Senate Governmental Affairs and Armed Services Committees. 
On June 8, 1994, the bill passed the Senate with an amendment 
by voice vote. On June 27, 1994, the House passed an amended 
version by voice vote. The conference report was filed on 
August 21, 1994 (H. Rept. 103-712). Both houses agreed to the 
conference report, and on October 13, 1994, the President 
signed the legislation into law.

The Government Management Reform Act (Public Law 103-356)

    Chairman Glenn introduced S. 2170, the Government 
Management Reform Act, which provides for a more effective, 
efficient, and responsive government. It requires for the first 
time that all major Federal agencies produce annual audited 
financial statements by fiscal 1996, to be followed by 
governmentwide annual audited financial statement starting in 
fiscal year 1997. Other important elements of the law include 
Electronic Funds Transfer of payroll for all new Federal hires, 
and a Franchise Fund pilot program to determine if the 
government can reduce costs and duplication on certain 
administrative services.
    The Committee also considered the National Performance 
Review's omnibus government reform bill, H.R. 3400. The 
Committee took those provisions in H.R. 3400 under its 
jurisdiction and, after a hearing on February 23, 1994, moved 
them as a stand-alone bill, S. 2170, the Government Management 
Reform Act.
    After being favorably reported by the Committee on March 
23, 1994, S. 2170 passed the Senate (September 28, 1994) and 
House (October 4, 1994) and was signed into law by the 
President on October 13, 1994.

The President John F. Kennedy Assassination Records Collection 
        Extension Act (Public Law 103-345)

    H.R. 4569 was necessary due to the unfortunate delays in 
appointing members to the Assassination Records Review Board, 
as established pursuant to P.L. 102-526, and also in organizing 
staff and receiving federal appropriations. The underlying 
intent of the original bill was to provide the public 
disclosure of all records pertaining to President Kennedy's 
assassination. The Board itself is to oversee the 
identification, collection, review, and release of such 
pertinent materials. This bill, as amended by the Committee, 
extends the life of the Review Board until September 30, 1996, 
with one additional year possible. It also made technical 
corrections so the Board could organize its staff operations 
without further delay.
    On August 2, 1994, the Committee agreed to amendments to 
H.R. 4569, offered by Chairman Glenn, and ordered the 
legislation favorably reported. The Senate passed this version 
on August 10, 1994, and the House subsequently agreed to H.R. 
4569 as amended. The bill was signed into law by the President 
on October 6, 1994.
Federal employees sick leave legislation (Public Law 103-388)

    H.R. 4361 was a bill to provide that an employee of the 
Federal government may use sick leave to attend to the medical 
needs of a family member. The bill also modifies the voluntary 
leave transfer program with respect to employees who are 
members of the same family.
    After being passed by the House by voice vote on September 
19, 1994, H.R. 4361 was referred to the Committee which 
discharged it on October 7, 1994. That same day, the Senate 
passed a bill by voice vote with amendment. On October 8, 1994, 
the House agreed to the Senate Amendment, and on October 22, 
1994, the President signed the bill into law.

     measures favorably reported from gac and passed by the senate

The Department of the Environment Act

    On February 18, 1993, the Committee held hearings on S. 
171, legislation introduced by Chairman Glenn to elevate the 
Environmental Protection Agency (EPA) to Cabinet-level status. 
On March 24, 1993, the Committee reported out by unanimous 
voice vote S. 171 as an amendment in the nature of a substitute 
(S. Rept. 103-38). S. 171 subsequently passed the Senate twice 
in the 103rd Congress--once, freestanding, and then as an 
amendment to the reauthorization of the Safe Drinking Water 
Act. No action was taken by the House during the 103rd 
Congress.

Reauthorization of the Office of Government Ethics (OGE)

    The purpose of S. 1413 was to ensure an effective ethics 
system throughout the Executive Branch by extending the OGE's 
authorization for eight years. The bill also provided OGE with 
gift-acceptance authority and made certain technical changes to 
the ethics laws.
    The Subcommittee on Oversight of Government Management held 
hearings on April 20, 1994, and the full Committee favorably 
reported the bill with amendments on June 16, 1994. The bill 
passed the Senate amended on October 6, 1994. No action was 
taken by the House in the 103rd Congress.

Paperwork Reduction Act

    After a year-long effort, the Committee produced a bi-
partisan consensus compromise bill to reauthorize the Paperwork 
Reduction Act. The bill was a compromise between S. 560 
(Senators Nunn and Bumpers) and S. 681 (Senators Glenn and 
Levin). OMB and GAO staff were active participants in the many 
meetings and drafting revisions that led to the final bill. GAO 
very much supported the legislation because of the way it 
incorporated the lessons of GAO's ``IRM Best Practices'' study 
and recommendations. The bill strengthens paperwork clearance 
and information resources management responsibilities for both 
OMB and Federal agencies. On the issue of paperwork clearance, 
the bill addressed the major business community concern by 
overturning the Supreme Court decision, Dole v. United 
Steelworkers, to insure that agency information disclosure 
requirements are cleared by OMB.
    The Committee held a hearing on May 19, 1994, and marked-up 
the bill on August 2, 1994, at which time the Committee 
unanimously voted to report the bill, in the nature of a 
Committee substitute to S. 560. The Senate passed the 
legislation by unanimous consent on October 6, 1994. The 
Session ended without House action.

Lobbying disclosure and congressional gifts reform legislation

    S. 349, The Lobbying Disclosure Act of 2994, would have 
replaced existing lobbying disclosure laws with a single, 
uniform statute, covering the paid lobbying of Congress and the 
Executive Branch on behalf of both domestic and foreign 
persons. This bill was considered and reported by subcommittee. 
It was reported by the full Committee and passed the Senate 
(May 6, 1993) and House (March 24, 1994).
    S. 1935, the Congressional Gifts Reform Act was referred to 
GAC under a unanimous consent agreement on March 17, 1994 an 
favorably reported by the Committee with an amendment in the 
nature of a substitute on April 26, 1994. The measure, as 
reported, prohibited Members and congressional staff, with very 
limited exceptions, from taking gifts from registered lobbyists 
and barred all privately funded travel not related to official 
business.
    The full Senate passed the Committee's S. 1935 substitute 
after incorporating several amendments thereto on May 11, 1994. 
It was subsequently incorporated in the Conference Report on S. 
349, The Lobbying Disclosure Act, to which in modified version 
the House had earlier added its gift ban language. The House 
passed the Conference Report on September 29, 1994, however, 
the Senate was unable to invoke cloture on the motion to 
proceed to the Conference Report prior to the sine die 
adjournment.

Federal emergency food and shelter program authorization

    S. 2218 was to provide authorization of appropriations for 
the Federal Emergency Food and Shelter Program for Fiscal Years 
1995 and 1996. The Committee favorably reported it without 
amendment on August 2, 1994, and it passed the Senate without 
amendment on August 10, 1994. No further action was taken on 
this legislation after its referral to the House Committee on 
Banking, Finance and Urban Affairs Subcommittee on Housing and 
Community Development.

    measures favorably reported from gac but died in 103rd congress

Federal mandate legislation

    The purpose of S. 993, introduced on May 21, 1993 was to 
end the practice of imposing unfunded Federal mandates on State 
and local governments and to ensure that the Federal Government 
pays the costs incurred by those governments in complying with 
certain requirements under Federal statutes and regulations.
    On November 3, 1993, the Committee held hearings on the 
problems and burdens facing State and local governments in 
implementing Federal mandates, and on April 28, 1994, the 
Committee held a hearing on Federal mandate reform and relief 
legislation. On June 16, 1994, the Committee reported out by 
unanimous voice vote, S. 993 (as an amendment in the nature of 
a substitute), the Federal Mandate Accountability and Reform 
Act of 1994. Provisions of S. 1604, were incorporated into S. 
993, as reported. S. 1604 was introduced by Chairman Glenn to 
provide for greater regulatory flexibility for small 
governments, lessen compliance burdens on small governments, 
and test innovative regulatory methods.
Federal Employees Fairness Act

    S. 404 was introduced by Senator Glenn on February 18, 
1993, with ten Senators as original cosponsors, and referred to 
the Committee on Governmental Affairs. S. 404, as amended by 
Committee, would have improved the effectiveness of 
administrative review of Federal employment discrimination 
claims. On June 24, 1993, the Committee favorably reported the 
bill by voice vote (S. Rept. 103-167).

Federal disaster preparedness legislation

    The Federal Disaster Preparedness and Response Act of 1994, 
S. 1697, sought to enhance the federal government's ability to 
prepare for and respond to disasters that overwhelm the ability 
of States, localities, and volunteer organizations to provide 
life-sustaining services, shift the emphasis of the Federal 
Emergency Management Agency (FEMA) to an all hazards, risk-
based approach, and to emphasize FEMA's mission to provide for 
mitigation, preparedness, response, and recovery for all 
hazards.
    On May, 18, 1993, the Committee held a hearing to consider 
how to improve the government's response to disasters, 
particularly those causing major devastation. Shortly after 
this hearing, Senator Barbara Mikulski introduced S. 995, the 
Federal Disaster Preparedness and Response Act, with Chairman 
Glenn and others, on a bipartisan basis, as original 
cosponsors. On November, 19, 1993, Senator Mikulski introduced 
a revised version, S. 1697. both bills were referred to the 
Committee.
    On August 18, 1994, the Committee considered an amendment 
offered by Chairman Glenn in the nature of a substitute to S. 
1697 and unanimously ordered the legislation to be favorably 
reported to the Senate (S. Rept. 103-400). Due to the press of 
other business, the full Senate was unable to consider this 
legislation prior to its adjournment sine die.

Congressional coverage legislation

    On September 20, 1994, the Committee met to consider H.R. 
4822, the Congressional Accountability Act, which passed the 
House of Representatives on August 10, 1994. H.R. 4822 was 
similar to S. 2071, which was introduced by Senator Lieberman 
and referred to the Committee.
    At markup, Senator Glenn proposed an amendment in the 
nature of a substitute which drew heavily on S. 2071 and H.R. 
4822 and was approved by voice vote. It was further amended by 
the Committee, and the Committee then voted to report favorably 
on H.R. 4822 as amended. The bill was reported as of October 3, 
1994 (S. Rept. 103-397).

           VIII. Description of Major Full Committee Hearings

                 annual review of government management

    On January 8, 1993, the Committee convened its annual 
hearing to review the findings in GAO's high risk reports 
which, in 1993, identified 17 areas especially vulnerable to 
fraud, waste, abuse, and mismanagement. Specifically, the 
hearing raised issues ranging from billions in fraud in food 
stamp and Medicare programs, to contract mismanagement at EPA 
and the Department of Energy. The sole witness was Charles A. 
Bowsher, Comptroller General of the United States.
    On January 27, 1994 and February 3, 1994, the Committee 
heard testimony from Mr. Bowsher, and Leon E. Panetta, Director 
of the Office of Management and Budget (OMB), respectively. The 
hearings continued the Committee's broad-based annual review of 
government management, and focused on cost savings, 
improvements to general and financial management, and the 
National Performance Review, as ways to make government more 
effective.

                s. 171, the epa cabinet level elevation

    On February 18, 1993, the Committee held hearings on S. 
171, legislation introduced by Chairman Glenn to elevate the 
Environmental Protection Agency (EPA) to Cabinet-level status. 
Testimony supporting the bill was heard from several U.S. 
Senators as well as The Honorable Carol Browner, Administrator, 
EPA; Douglas Costle, former Administrator, EPA; Dr. Jay Hair, 
President, National Wildlife Federation; and Dr. Stephen Gage, 
President, Cleveland Advanced Manufacturing Program.

                   proliferation threats of the 90's

    On February 24, 1993, the Committee held a hearing to 
discuss the challenge of curbing the global spread of weapons 
of mass destruction. The single witness, CIA Director James 
Woolsey, surveyed weapons developments around the world. The 
hearing print includes an English translation of a KGB analysis 
of the global proliferation threat, a report which Chairman 
Glenn released at the hearing. The hearing print also includes 
written CIA responses to over 100 questions concerning 
proliferation developments around the world.

                    disposing of plutonium in russia

    On March 9, 1993, the Committee held a hearing which 
addressed accomplishments and setbacks of U.S. efforts to 
accelerate the dismantlement and destruction of plutonium 
recovered from Russian nuclear weapons. Testifying at this 
hearing was Maj. Gen. (ret.) William F. Burns, the Special US 
Envoy on the Safety, Security and Dismantling of Nuclear 
Weapons. Joseph E. Kelley of the General Accounting Office 
(GAO) also testified on GAO's findings concerning the progress 
of this program.

          improving governmental organization and performance

    On March 11, 1993, the Committee held a hearing on S. 20, 
the Government Performance and Results Act, and other 
legislation proposing to reform the organization of Federal 
agencies and programs. Witnesses: The Honorable Harry Reid, 
U.S. Senator (D-NV); The Honorable Leon Panetta, Director, 
Office of Management and Budget (OMB); The honorable Charles 
Bowsher, Comptroller General of the United States; David 
Osborne, Author, ``Reinventing Government''; Martin Gross, 
Author, ``The Government Racket: Washington Waste Form A to 
Z''; and Peri Arnold, Professor of Government, Notre Dame 
University.
                     human genome diversity project

    On April 26, 1993, Senator Akaka chaired a hearing which 
examined a supplemental program of the $3 billion Human Genome 
Project, the Human Genome Diversity Project. This project is 
designed to preserve genetic information from diverse ethnic 
and aboriginal populations, many of which are in danger of 
losing their genetic identity. The information thus preserved 
may have anthropological and biomedical value. Witnesses 
included experts from the National Science Foundation, National 
Institutes of Health, Department of Energy (DOE), Office of 
Technology Assessment (OTA), Stanford University, and the 
University of California at Berkeley.

            S. 185, THE HATCH ACT REFORM AMENDMENTS OF 1993

    The Committee held two days of hearings on S. 185 on April 
27 and 30, 1993. Over the two days, oral testimony was received 
from: James B. King, Director, Office of Personnel Management 
(OPM); David H. Rosenbloom, The National Academy of Public 
Administration's (NAPA); Bernard Rosen, Distinguished Adjunct 
Professor in Residence, The American University; Marvin H. 
Morse, The Federal Bar Association; David Burckman, 
Organization of Former Internal Revenue Service Executives; and 
David Denholm, President, Public Service Research Council.

              federal regulation of medical radiation uses

    This hearing, on May 6, 1993, examined a number of gaps and 
inadequacies in Nuclear Regulatory Commission's (NRC) and Food 
and Drug and Administration's (FDA) ability to regulate medical 
radiation. The Committee's investigation and subsequent hearing 
resulted in a Memorandum of Understanding between the two 
agencies to improve this regulation as well as a review by the 
National Academy of Sciences of NRC's medical use program. 
Witnesses: Ivan Selin, Chair, NRC; Dr. D. Bruce Burlington, 
Director, Center for Devices and Radiological Health, FDA; and 
Aubrey V. Godwin, Chair, Conference for Radiation Control 
Program Directors.
            rebuilding fema: preparing for the next disaster
    On May 18, 1993, the Committee held a hearing to consider 
how to improve the government's response to disasters, 
particularly those causing major devastation. At the hearing, 
the GAO presented its final report (``Disaster Management: 
Improving the Nation's Response to Catastrophic Disasters''; 
GAO/RCED-93-186), prepared at the request of Chairman Glenn and 
other Members. In addition, the Committee heard from NAPA on 
its extensive study prepared for Congress, entitled ``Coping 
with Catastrophe: Building an Emergency Management System to 
Meet People's Needs in natural and Manmade Disasters''. These 
comprehensive studies found that: the Federal Government's 
response plan was deficient in being able to provide victims of 
disasters swift and effective assistance due, in part, because 
it could not adequately assess the nature and extent of damage; 
the Federal Government lacks explicit authority to prepare in 
advance of a disaster when there is warning; and State and 
local governments do not have sufficient training and funding 
to enable them to respond to catastrophic disasters.
    Witnesses: J. Dexter Peach, Assistant Comptroller General, 
GAO; R. Scott Fosler, President, NAPA; The Honorable Curt 
Weldon, Member of Congress; James Lee Witt, Director of the 
Federal Emergency Management Agency (FEMA); Dr. Robert C. 
Sheets, Director, National Hurricane Center; Dale W. Shipley, 
Deputy Director, State of Ohio Emergency Management Agency and 
Past President of the National Emergency Management Association 
(NEMA); and Dr. Richard T. Sylves, Professor of Political 
Science, University of Delaware.

               S. 404, the federal employees fairness act

    The Governmental Affairs Committee held a hearing on S. 
404, the Federal Employee Fairness Act, on may 26, 1993. 
Witnesses: The Honorable Barbara A. Mikulski, U.S. Senator; 
Nancy Kingsbury, Director, Federal Human Resource Management 
Issues, General Government Division, GAO; The Honorable Dennis 
DeConcini, U.S. Senator; John N. Sturdivant, National 
President, American Federation of Government Employees; Robert 
M. Tobias, National President, National Treasury Employees 
Union; Joseph M. Sellers, Washington Lawyers Committee for 
Civil Rights Under the Law. In addition, a panel of current 
Federal employees testified regarding their experience with the 
EEO complain process system.

                        Evaluation of the triad

    On June 10, 1993, the Committee held a hearing at which GAO 
Assistant Comptroller General Eleanor Chelimsky presented 
detailed testimony based on a GAO report, which found that 
``there exist systematic disparities between estimates or 
claims that have been made about the triad systems and what the 
data actually show. We found this to be the case whether the 
issue was the likely cost and performance of upgrades, the 
actual performance of current systems, or the likely offensive 
or defensive threats to these systems from the former Soviet 
Union.'' Secretary of Defense William Perry testified in 
response to the GAO findings.

                    EPA contract management problems

    On June 22, 1993, a hearing was held which continued 
Senator Glenn's examination of EPA contracting abuses. The 
hearing was based on reports issued by the Inspector General 
and focused on EPA contracts that were no competitive, had 
possible conflict of interest problems, or were for 
nonessential services, including researching Congressional 
oversight of contract management issues and teaching senior 
level officials how to testify before Congress. Questions were 
raised regarding the lack of cooperation by parts of EPA with 
the Inspector General and his staff--some labs were ordered to 
``remove and shred'' documents before the auditors arrived. 
Witnesses: EPA Administrator Carol Browner, and EPA Inspector 
General John Martin.
                        dod financial management

    On July 1, 1993, the Committee examined the results of 
financial statement audit work performed by GAO, the Inspector 
General for the Department of Defense (DOD IG), and the Air 
Force Auditor General in compliance with the Chief Financial 
Officers Act. Among other things, the audits found that the 
Army had made unauthorized payroll payments in one month to 
2,100 individuals totaling $6.1 million; contractors 
voluntarily returned to the Defense Finance and Accounting 
Service (DFAS) $751 million in overpayments in a six-month 
period; DFAS was paying $6 million a year to a public 
accounting firm to straighten out its books; and the Navy had 
nearly $13 billion in disbursements that had not been matched 
to invoices. Witnesses: Charles A. Bowsher, Comptroller General 
of the United States; Derek Vander Schaaf, Acting DOD IG; Lt. 
Gen. Merle Freitag, Controller of the Army; John Beach, 
Principal Deputy Assistant Secretary of the Air Force for 
Financial Management; Albert Conte, Acting Assistant Secretary 
of the Navy for Financial Management; and Alvin Tucker, Deputy 
Comptroller of the Department of Defense.
    On April 12, 1994, Senator Glenn held a followup hearing. 
Recently released audit reports from the DOD IG and GAO 
indicated that DOD's problems were even more significant than 
originally thought. For example, as of January 1994, the Army 
had made about $8 million in unauthorized payments to soldiers, 
including repeated payments to 76 deserters and six ghost 
employees. Also, during the first nine months of Fiscal Year 
1993, returned contractor overpayments had grown to $1.4 
billion--these are payments for which contractors had never 
sent the Pentagon a bill. Overall, DOD was found to have 
between $32 billion and $41 billion in undistributed 
disbursements. And finally, 31 percent of the debts canceled 
for Desert Storm/Desert Shield veterans did not meet the legal 
requirements for cancellation. Witnesses: Mr. Bowsher, Mr. 
Vander Schaaf, and John Hamre, Comptroller of the Department of 
Defense.
    Finally, on July 12, 1994, the Committee held a hearing to 
further review the audited financial statements and financial 
management practices of DOD, specifically looking for signs of 
progress. Witnesses: Mr. Vander Schaaf; Francis E. Reardon, 
Auditor General of the Army; Jackie R. Crawford, Auditor 
General of the Air Force; Robert Hale, Assistant Secretary of 
the Air Force for Financial Management; Helen T. McCoy, 
Assistant Secretary of the Army for Financial Management; and 
Richard Keevey, Deputy Comptroller, DOD.

       auditing the auditors: waste and abuse at irs and customs?

    On August 4, 1993, the Committee held a hearing which 
revealed that 368 employees of the Internal Revenue Service 
(IRS) had inappropriately accessed and browsed the taxpayer 
records of friends, relatives, neighbors, and celebrities--some 
employees appeared to have fraudulently manipulated some of 
that tax data. The hearing also raised financial audit 
findings, such as that IRS lacked controls to ensure that 
proper payments were made to its vendors. GAO also testified 
that the Customs financial audit revealed it may be losing 
billions in revenue because it accepts without checking the 
information reported by importers. In addition, Customs was 
unable to account for much of its seized property, including 
1,850 pounds of marijuana. Witnesses: Charles A. Bowsher, 
Comptroller General of the United States; and Margaret Milner 
Richardson, Commissioner of Internal Revenue.

            environmental problems in the federal government

    As part of its continuing effort to address and assess the 
Federal government's overall liabilities, the Committee 
convened on September 21, 1993 to hear testimony from the 
Government's top cleanup officials. While the large cleanup 
costs for DOD and DOE installations are well known, the 
Committee released a report outlining a number of potentially 
serious environmental problems with the Department of Interior. 
As a result of the hearing, OMB formed a policy level Federal 
facility task force to examine ways to improve the Federal 
government's environmental cleanup strategy. Witnesses: Alice 
M. Rivlin, Deputy Director, OMB; Steven Herman, Assistant 
Administrator, EPA; Thomas P. Grumbly, Assistant Secretary for 
Environmental Restoration and Waste Management, DOE; Sherri 
Wasserman Goodman, Deputy Under Secretary for Defense 
(Environmental Security), DOD; and Michael Heyman, Deputy 
Assistant Secretary, Policy Management and Budget, Department 
of Interior.

            the federal workforce restructuring act of 1993

    On October 19, 1993, the Committee held a hearing on S. 
1535, the Federal Workforce Restructuring Act of 1993. The 
witnesses at the hearing included: James B. King, Director, 
OPM; Philip Lader, Deputy Director for Management, OMB; Edwin 
Dorn, Assistant Secretary for Personnel and Readiness, DOD.

            federal mandates on state and local governments

    The Committee held three hearings on the problems and 
burdens facing State and local governments in implementing 
Federal mandates. On November 3, 1993, the Committee heard 
testimony from several U.S. Senators, mayors and other local 
officials.
    On April 28, 1994, the Committee held a hearing on Federal 
mandate reform and relief legislation. In addition to testimony 
from more state and local officials, the Committee also heard 
from Dr. Robert Reischauer, Director, Congressional Budget 
Office; Sally Katzen, Administrator, Office of Information and 
Regulatory Affairs (OIRA), OMB; Justin Dart, former Chairman, 
President's Committee on Employment of People with 
Disabilities; Dr. John Kincaid, Executive Director, Advisory 
Committee on Intergovernmental Relations (ACIR); and Robert 
Adler, Senior Attorney, Natural Resources Defense Council 
(NRDC).
    Finally, on April 5, 1994, Senator Dorgan chaired a related 
hearing of the full Committee in Minot, ND. The hearing 
discussed Federal mandates on both local governments and 
private businesses. Witnesses mentioned aspects of health care 
reform, metric conversion requirements and environmental 
regulations as particularly burdensome Federal mandates. 
Suggested remedies included greater regulatory flexibility and 
congressional action on several mandate reform bills. All 
witnesses were local officials or private businessmen in North 
Dakota.
                 nafta job claims: truth in statistics?

    On November 10, 1993, the Committee held a hearing which 
examined the methodology used by the Department of Commerce in 
estimating the gains in U.S. jobs and exports as a result of 
the North American Free Trade Agreement. Testimony was heard 
from Dr. Paul London, Acting Under Secretary of Commerce for 
Economic Affairs.

     human radiation and other scientific experiments: the federal 
                           government's role

    Following a number or revelations about Cold War radiation 
experiments on unsuspecting U.S. citizens (including a GAO 
report released by Senator Glenn which discussed a number of 
``intentional releases'' of radiation at DOE and DOD 
facilities) the Committee met on January 25, 1994 to review the 
status of major agencies' efforts to get to the bottom of their 
historical role in these experiments. This hearing resulted in 
a Presidential Memorandum being issued to all executive 
agencies instructing agency heads to review their policies to 
ensure that any human experiment be conducted with strict 
adherence to appropriate informed consent guidelines. The 
hearing also prompted DOE to make information publicly 
available on all current radiation experiments.
    Witnesses: The Honorable Hazel O'Leary, Secretary, DOE; The 
Honorable Jesse Brown, Secretary, Department of Veterans 
Affairs; Dr. Harold Smith, Assistant to the Secretary For 
Atomic Energy, DOD; Dr. Donald A. Henderson, Deputy Assistant 
Secretary for Health and Science, Department of Health and 
Human Services; H. Jack Geiger, M.D., City University of New 
York Medical School; Steven Piantadosi, M.D., Ph.D., Johns 
Hopkins School of Hygiene and Public Health; Francis X. Masse, 
New England Medical Center; and Mrs. Emma Craft, Nashville, TN.
    A subsequent hearing was held on December 1, 1994, when the 
Committee examined the progress made by the Advisory Committee 
on Human Radiation Experiments after six months of searching 
for and evaluating the Government's Cold War radiation 
experiments. The hearing found that a complete investigation of 
these experiments will likely take much longer than originally 
planned. Witnesses: Victor S. Rezendes, GAO; Ruth Faden, Ph.D. 
Chair, Advisory Committee on Human Radiation Experiments; and 
Tara O'Toole, M.D., Assistant Secretary for Environment, Safety 
and Health, DOE.

              h.r. 3400, government reform and savings act

    On February 23, 1994, the Committee heard testimony from 
Alice Rivlin, Deputy Director, OMB, and Charles A. Bowsher, 
Comptroller General of the United States, to discuss 
legislation to implement recommendations of the National 
Performance Review.

       s. 1587, the federal acquisition streamlining act of 1993

    A series of three hearings (February 24, March 10 and 17, 
1994) were held jointly with the Senate Armed Services 
Committee on the topic of procurement reform and the Section 
800 Panel's recommendations. These hearings served as a 
critical part of the process which ultimately led to the 
passage of this legislation. Witnesses over the three hearings 
included: Steven Kelman, Administrator, Office of Federal 
Procurement Policy; John M. Deutch, Under Secretary of Defense 
for Acquisition and Technology, DOD; Roger Johnson, 
Administrator, General Services Administration (GSA); Robert 
Murphy, Acting General Counsel, GAO; Derek Vander Schaaf, 
Deputy Inspector General, DOD; and numerous representatives of 
industry and associations.

federal policies governing the introduction of non-indigenous plant and 
                             animal species

    On March 11 and 15, 1994, Senator Akaka chaired this 
hearing exploring the extent to which alien pests adversely 
impact agriculture, the economy, an the environment, using 
Hawaii as a special example. The focus was on how the U.S. can 
develop a more comprehensive, effective policy to address this 
problem. Witnesses were academic experts, state officials, and 
representatives from OTA, the Departments of the Interior, 
Commerce and Agriculture and environmental associations.

                contract and financial management at doe

    On March 17, 1994 the Committee examined a number of 
aspects concerning DOE's contract reform initiative. The 
hearing closely investigated DOE's use of affiliate 
contractors, and whether such contracts were conducted with 
appropriate controls. The hearing also examined weak property 
management practices at the Department Witnesses: Victor S. 
Rezendes, GAO; John C. Layton, Inspector General, DOE; and 
William H. White, Deputy Secretary, DOE.
                   FEDERAL TELECOMMUNICATIONS POLICY

    On May 3, 1994, the Committee convened to examine issues 
affecting government-wide telecommunications, specifically, 
civilian and DOD needs under the current FTS 2000 contract and 
the present and future DOD contracts, and the benefits and 
disadvantages of aggregating government-wide needs into one 
integrated system. In this context, the hearing addressed many 
issues including market dynamics, flexibility of contract 
requirements, systems interoperability, systems integrators, 
and emerging technologies. Witnesses: Jack L. Brock, Director, 
Information Resources Management/Policies and Issues Group, 
Accounting and Information Management Division, GAO; General 
Emmett Page, Jr., (Ret.), Assistant Secretary for Command, 
Control, Communications and Intelligence, DOD; and Robert J. 
Woods, Associate Administrator for FTS 2000, GSA.

                   HEALTH CARE INFORMATION MANAGEMENT

    On May 6, 1994, the Committee held a hearing to consider 
implications of government information management in health 
care reform (automation, computer security, privacy). 
Witnesses: Sally Katzen, Administrator, OIRA, OMB; Nan Hunter, 
Deputy General Counsel, HHS; Leslie Aronovitz, Associate 
Director, Health Finance and Policy, GAO; Joel E. Gimpel, Blue 
Cross/Blue Shield Association; Lois Gargotto, Director of 
Systems Development, HUMANA, Inc.; Carolyn Kelly, Director, 
Government and Public Affairs, American Payroll Association; 
Donald T. Lewers, M.D., American Medical Association; and 
Janlori Goldman, Director, Technology and Law Project, American 
Civil Liberties Union.

       BOMB PREVENTION VS. BOMB PROMOTION: EXPORTS IN THE 1990's

    On May 17, 1994, the Committee held a hearing focusing on 
past U.S. exports of nuclear dual-use goods and technologies to 
several countries with illicit nuclear weapons programs. 
Witnesses from the GAO and six Federal agencies participated in 
this hearing, which released data showing that the U.S. 
approved over a seven-year period some $29 billion in exports 
of nuclear dual-use goods going to controlled countries, 
including some $350 million that went to sensitive nuclear 
facilities in those countries. The GAO report was published as 
``Nuclear Nonproliferation: Export Licensing Procedures for 
Dual-Use Items Need to be Strengthened,'' NSIAD-94-119, April 
1994.

               REGULATORY REVIEW AND PAPERWORK REDUCTION

    On May 19, 1994, the Committee held a hearing to consider 
legislation to reauthorize the Paperwork Reduction Act, and to 
oversee the Administration's conduct of regulatory review under 
Executive Order 12866. Witnesses: Gene Dodaro, Assistant 
Comptroller General, Accounting and Information Management 
Division, GAO; Sally Katzen, Administrator, OIRA, OMB; C. 
Boyden Gray, Chairman, Citizens for a Sound Economy; Robert 
Coakley, Executive Director, Council on Regulatory and 
Information management and Lorraine Lavet, Director of Domestic 
Policy, U.S. Chamber of Commerce (Co-chairs, Paperwork 
Reduction Act Coalition); David Vladeck, Director, Public 
Citizen Litigation Group; and Gary Bass, Executive Director, 
OMB Watch.

          RADIOACTIVE CONTAMINATION AT SEWAGE TREATMENT PLANTS

    This hearing, held on June 21, 1994 jointly with the House 
Subcommittee on Environment, Energy and Natural Resources, 
examined the failure of the NRC's regulations regarding the 
disposal of radioactive material into the nation's sanitary 
sewer systems. Witnesses: The Honorable Louis Stokes (D-OH); 
Jim Wells, GAO; Ivan Selin, Chairman, NRC; Mike Cook, EPA; 
James Payne, Assistant Attorney General, State of Ohio; Jane 
Harf, Deputy Director for Low Level Waste, Ohio EPA; and Erwin 
J. Odeal, Northeast Ohio Regional Sewer District.

     CONGRESSIONAL COVERAGE LEGISLATION: APPLYING LAWS TO CONGRESS

    On June 29, 1994, the Committee conducted a hearing on this 
topic. The hearing addressed six bills. Four bills apply 
various employment, information, and other laws to Congress had 
been referred to the Committee: S. 2071 (introduced by Senator 
Lieberman), S. 579 (introduced by Senator Smith), S. 103 
(introduced by Senator Nickles), and S. 29 (introduced by 
Senator McCain). In addition, the Committee on Rules and 
Administration had recently voted to report out S. 1824, 
containing provisions to apply certain employment-related laws 
to the Senate. Finally, S. 2194 (introduced by Senator 
Mikulski) addressed personnel management by the Architect of 
the Capitol.
    Witnesses included several U.S. Senators and Congressmen; 
representatives from other legislative branch agencies 
including OTA, GAO, Library of Congress, Government Printing 
Office, Architect of the Capitol, and Senate Legal Counsel; 
representatives from the Occupational Safety and Health 
Administration, and Employment Standards Administration in the 
Department of Labor, and the Federal Labor Relations Authority, 
Office of Senate Fair Employment Practices, and several 
scholars on this subject.

       HIGH RISKS AND EMERGING FRAUD: IRS, STUDENT LOANS AND HUD

    On July 19, 1994, the Committee held a hearing to examine 
high risk problems and wasteful operations at these three 
agencies. At the hearing, Senator Glenn disclosed that more 
than 500 IRS employees had been investigated for unauthorized 
borrowing of taxpayer files--a higher figure than the agency 
had previously admitted. As a result, the IRS agreed to take a 
number of actions for the 1995 filing season, including slowing 
down certain refunds and checking the criminal records of tax 
preparers, in an effort to reduce fraud. This hearing also led 
the Department of Housing and Urban Development (HUD) to seek 
more information from its regions to better assess and cope 
with the extent of HUD's problems with equity skimming, a very 
costly issue. Witnesses: Margaret Milner Richardson, 
Commissioner of Internal Revenue; Nicholas Retzensos, Assistant 
Secretary for Housing, HUD; James Thomas, Inspector General, 
Department of Education; and Susan Gaffney, Inspector General, 
HUD.
            financial problems: are agencies getting better?

    On July 28, 1994, the Committee held a hearing to review 
the audited financial statements and financial management 
practices of Federal agencies. As a result of this hearing, the 
Customs Service tightened measures related to handling drug 
seizures, the State Department committed to hiring a Chief 
Financial Officer (CFO), and OPM agreed to strengthen the role 
of the CFO. Witnesses: Gene Dodaro, Assistant Comptroller 
General, GAO; John Payne, Assistant Inspector General, 
Department of State; Larry Eisenhart, Acting CFO, Department of 
State; Morgan Kinghorn, IRS, Department of Treasury; Patrick 
McFarland, Inspector General, OPM; and William Flynn III, 
Acting Director, Retirement and Insurance Group, OPM.

  full voting representation in congress for the district of columbia

    On August 4, 1994, the Committee convened to hear testimony 
regarding the voting representation in Congress and proposals 
regarding statehood for the District of Columbia. Witnesses 
included several Members of Congress; The Honorable Sharon 
Pratt Kelly, Mayor, Washington, D.C.; several other District of 
Columbia officials and representatives; The Honorable Charles 
McC. Mathias, former Senator from Maryland and the former 
Chairman of the Senate District of Columbia Committee and 
Governmental Affairs Subcommittee on General Services, 
Federalism and the District of Columbia; and several academic 
experts in this area.

                      IX. Presidential Nominations

    During the 103rd Congress, the Committee received a total 
of 48 Presidential nominations, 41 of which were favorably 
reported by the committee and confirmed by the Senate. The 
following nominations were favorably reported by the committee 
and confirmed by the Senate:
          Leon Panetta of California, to be Director, Office of 
        Management and Budget,
          Alice M. Rivlin of the District of Columbia, to be 
        Deputy Director, Office of Management and Budget,
          Russell Canan of the District of Columbia, to be an 
        Associate Judge of the Superior Court of the District 
        of Columbia,
          James B. King of Massachusetts, to be Director, 
        Office of Personnel Management,
          James Lee Witt of Arkansas, to be Director, Federal 
        Emergency Management Agency,
          Sally Katzen of the District of Columbia, to be 
        Administrator, Office of Information and Regulatory 
        Affairs, Office of Management and Budget,
          Philip Lader of South Carolina, to be Deputy Director 
        for Management, Office of Management Budget,
          Lorraine Allyce Green of the District of Columbia, to 
        be Deputy Director, Office of Personnel Management,
          Roger W. Johnson of California, to be Administrator 
        of General Services,
          Benjamin Leader Erdreich of Alabama, to be a Member 
        and Chairman of the Merit Systems Protection Board,
          Einar V. Dyhrkopp of Illinois, to be a Governor of 
        the United States Postal Service,
          Joseph Swerdzewski of Colorado, to be General 
        Counsel, Federal Labor Relations Authority,
          Kermit Hall of Oklahoma, to be a Member of the 
        Assassination Records Review Board (new position),
          John R. Tunheim of Minnesota, to be a Member of the 
        Assassination Records Review Board (new position),
          William R. Joyce of New Jersey, to be a Member of the 
        Assassination Records Review Board (new position),
          Anna K. Nelson of the District of Columbia, to be a 
        Member of the Assassination Records Review Board (new 
        position),
          Steven Kelman of Massachusetts, to be Administrator, 
        Office of Federal Procurement Policy, Office of 
        Management and Budget,
          Henry Graff of New York, to be a Member of the 
        Assassination Records Review Board (new position),
          Edward Jay Gleiman of Maryland, to be a Commissioner 
        of the Postal Rate Commission,
          Rafael Diaz of the District of Columbia, to be an 
        Associate Judge of the Superior Court of the District 
        of Columbia,
          Rhonda Reid Winston of the District of Columbia, to 
        be an Associate Judge of the Superior Court of the 
        District of Columbia,
          Judith Bartnoff of the District of Columbia, to be an 
        Associate Judge of the Superior Court of the District 
        of Columbia,
          Zoe Alice Bush of the District of Columbia, to be an 
        Associate Judge of the Superior Court of the District 
        of Columbia,
          John Koskinen of the District of Columbia, to be 
        Deputy Director for Management, Office of Management 
        and Budget,
          Phyllis Nachimoff Segal of Massachusetts, to be a 
        Member of the Federal Labor Relations Authority,
          Vanessa Ruiz of the District of Columbia, to be an 
        Associate Judge of the District of Columbia Court of 
        Appeals,
          Martha Riche of Maryland, to be Director, Bureau of 
        the Census, Department of Commerce,
          Alice M. Rivlin of the District of Columbia, to be 
        Director, Office of Management and Budget,
          George J. Opfer of Virginia, to be Inspector General, 
        Federal Emergency Management Agency,
          Harvey G. Ryland of Florida, to be Deputy Director, 
        Federal Emergency Management Agency,
          James H. Atkins of Arkansas, to be a Member of the 
        Federal Retirement Thrift Investment Board,
          Scott B. Lukins of Washington, to be a Member of the 
        Federal Retirement Thrift Investment Board,
          Susan Gaffney of Virginia, to be Inspector General, 
        Department of Housing and Urban Development 
        (sequentially referred),
          June Gibbs Brown of Hawaii, to be Inspector General, 
        Department of Health and Human Services (sequentially 
        referred),
          Charles Masten of Virginia, to be Inspector General, 
        Department of Labor (sequentially referred),
          Michael Bromwich of the District of Columbia, to be 
        Inspector General, Department of Justice (sequentially 
        referred),
          Roger C. Viadero of Virginia, to be Inspector 
        General, Department of Agriculture (sequentially 
        referred),
          Luise S. Jordan of Maryland, to be Inspector General, 
        Corporation for National and Community Service 
        (sequentially referred, new position),
          Martin Dickman of Illinois, to be Inspector General, 
        Railroad Retirement Board (sequentially referred),
          Valerie Lau of California, to be Inspector General, 
        Department of the Treasury (sequentially referred), and
          Jeffrey Rush of Kansas, to be Inspector General, 
        Agency for International Development (sequentially 
        referred).
    The following 7 nominations failed of confirmation under 
paragraph 6 of rule XXXI of the Standing Rules of the Senate:
          G. Edward DeSeve of Pennsylvania, to be Controller, 
        Office of Federal Financial Management, Office of 
        Management and Budget,
          Father Robert F. Drinan of Massachusetts, to be a 
        Member of the Civil Liberties Public Education Fund 
        Board of Directors,
          Susan Hayase of California, to be a Member of the 
        Civil Liberties Public Education Fund Board of 
        Director,
          Cherry T. Kinoshita of Washington, to be a Member of 
        the Civil Liberties Public Education Fund Board of 
        Directors,
          Elsa H. Kudo of Hawaii, to be a Member of the Civil 
        Liberties Public Education Fund Board of Directors,
          Yeiichi Kuwayama of the District of Columbia, to be a 
        Member of the Civil Liberties Public Education Fund 
        Board of Directors, and
          Don T. Nakanishi of California, to be a Member of the 
        Civil Liberties Public Education Fund Board of 
        Directors.
                   X. Activities of the Subcommittees

    subcommittee on federal services, post office, and civil service

                         Chairman: David Pryor

                  Ranking Minority Member: Ted Stevens

I. Hearings

    The Federal Services, Post Office and Civil Service 
Subcommittee held the following hearings during the 103rd 
Congress:
          Oversight of the U.S. Postal Service (March 18, 
        1993). The Subcommittee reviewed information presented 
        by the Postmaster General. Witnesses: The Honorable 
        Marvin Runyon, Postmaster General, U.S. Postal Service 
        (USPS), accompanied by other USPS officers.
          Federal Licensing Procedures for Importing and 
        Selling Firearms (March 26, 1993). The Subcommittee 
        heard from the Bureau of Alcohol, Tobacco, and Firearms 
        about its efforts to enforce statutes regarding weapons 
        import/export. Witnesses: Stephen E. Higgins, Director, 
        Bureau of Alcohol, Tobacco, and Firearms; Don Cahill, 
        Legislative Director, Fraternal Order of Police, on 
        behalf of Dewey R. Stokes; and Richard Gardiner, 
        Legislative Counsel, Institute for Legislative Action, 
        National Rifle Association of America; accompanied by 
        Stephen Halbrook, Consulting Counsel.
          Federal Performance: Getting Results (July 14, 1993). 
        The Subcommittee heard from a variety of witnesses 
        about successful efforts to improve the efficiency and 
        effectiveness of Federal programs and Federal 
        employees. Witnesses: Bernald Kulik, Assistant 
        Administrator for Disaster Assistance, Small Business 
        Administration; Professor Harold Seidman, Center for 
        the Study of American Government, Johns Hopkins 
        University; Asa Whitaker, Eastman Chemical Company; 
        Michael Schaffner, Manager, Classification Division, 
        Pension Benefit Guaranty Corporation; and Gerald 
        Carson, Analyst, Internal Revenue Service.
          Operational Testing: Ensuring Better Weapons for Our 
        Troops (March 22, 1994). The Subcommittee reviewed 
        plans by the Department of Defense (DOD) to revise 
        current operational test and evaluation efforts and 
        heard from the General Accounting Office (GAO) about 
        the efficacy of those proposed changes. Witnesses: 
        Colleen Preston, Deputy Under Secretary of Defense 
        Acquisition Reform, DOD; Louis J. Rodrigues, Director, 
        Systems Development and Production Issues, National 
        Security and International Affairs Division, GAO; and 
        Russell Murray, former Assistant Secretary of Defense.
          Annual Report of the Postmaster General (March 24, 
        1994). The Subcommittee reviewed information presented 
        by the Postmaster General. Witnesses: The Honorable 
        Marvin Runyon, Postmaster General and Chief Executive 
        Officer, USPS, accompanied by other USPS officers.
          A Review of Arms Export Licensing (June 15, 1994). 
        The Subcommittee reviewed a GAO report prepared at the 
        Chairman's request regarding the effectiveness of 
        export ``watchlists'' maintained by the Departments of 
        State and Commerce. Witnesses: James F. Wiggins, 
        Associate Director, Acquisition Policy, Technology and 
        Competitiveness Group, National Security and 
        International Affairs Division, GAO; William A. 
        Reinsch, Under Secretary of Commerce for Export 
        Administration; and Thomas T. McNamara, Acting 
        Assistant Secretary, Bureau of Political-Military 
        Affairs, Department of State.
          Child Support Enforcement: The Federal Role (July 20, 
        1994). The Subcommittee heard from Federal, state, and 
        local officials responsible for ensuring that non-
        custodial parents fully comply with their legal 
        responsibilities. Witnesses: Mary Jo Bane, Assistant 
        Secretary, Department of Health and Human Services 
        (HHS) accompanied by David Ross, Deputy Director, 
        Office of Child Support Enforcement, Department of 
        Health and Human Services; Judy Jones Jordan, 
        Administrator, Arkansas Office of Child Support 
        Enforcement; Pat Addison, Program Specialist, Division 
        of Child Support Enforcement, Commonwealth of Virginia; 
        Nancy Ebb, Senior Staff Attorney, Children's Defense 
        Fund; and Joseph F. Delfico, Director, Income Security 
        Issues, Health, Education and Human Services Division, 
        GAO.
          Labor-Management Relations at the Postal Service 
        (November 30, 1994). Witnesses discussed a two-volume 
        GAO report reviewing problems and prospects for the 
        improvement of labor-management relations at the Postal 
        Service. Witnesses: Mike Motley, Associate Director, 
        Government Business Operations, General Government 
        Division, GAO; Marvin Runyon, Postmaster General, USPS; 
        Moe Biller, President, American Postal Workers Union; 
        Scottie Hickes, President, National Rural Letter 
        Carriers Association; William Quinn, President, 
        National Postal Mail Handlers Union; and Vince 
        Palladino, President, National Association of Postal 
        Supervisors.

II. Legislation

    The following bills were considered by the Subcommittee and 
became public law:
          S. 622/H.R. 2970, reauthorizes the Office of Special 
        Counsel (OSC) and Merit Systems Protection Board (MSPB) 
        for 3 years (through 1997), putting the OSC and the 
        MSPB on the same authorization schedule. It also 
        clarifies the rules governing OSC's disclosure of 
        information about whistleblowers; requires the OSC to 
        provide detailed information to employees when their 
        cases are terminated; establishes a 240-day time limit 
        for OSC to make a determination regarding whistleblower 
        cases; requires agencies to inform Federal employees of 
        the rights and remedies available to them under the 
        Whistleblower Protection Act. (Public Law 103-424)
          S. 1130, Federal Employees Leave Sharing Amendments 
        Act of 1993 made leave bank/leave transfer 
        demonstration programs permanent law. (Public Law 103-
        103)
          S. 1131, temporarily extended the proxy premium 
        formula used to compute the Government's share of 
        premiums under FEHBP. The bill passed the Senate on 
        June 28, 1993 and was incorporated into OBRA 1993. 
        (Public Law 103-66)
          S. 1624, Thrift Plan Withdrawal Simplification Act 
        streamlined and standardized the withdrawal options 
        available to Federal employees/retirees. It passed the 
        Senate November 24, 1993 and was incorporated into 
        Public Law 103-226, the Federal Workforce Restructuring 
        Act.
          S. 2040, treats employees of Federally Funded 
        Research and Development Centers like other Federal 
        employees for the purposes of Intergovernmental 
        Personnel Act transfers. The bill was incorporated into 
        Public Law 103-337, the DOD Authorization bill.
          H.R. 512, FEGLI Living Benefits with amendment, 
        allows Federal employees diagnosed with a terminal 
        illness (less than 9 months to live) to withdraw all or 
        a portion of their life insurance benefits. The 
        amendment ensured that employees of the Office of the 
        Comptroller of the Currency (OCC) and the Office of 
        Thrift Supervision (OTS) will not lose their health 
        insurance as the OCC and OTS switch back into the 
        Federal Employees' Health Benefits Program. (Public Law 
        103-409)
          H.R. 588, Abe Murdock Post Office Naming. (Public Law 
        103-51)
          H.R. 1779, Jerry Litton Post Office Naming passed 
        with two amendments: VA SES last move home technical 
        correction which corrects a date in a prior statute, 
        and SES widows and orphans last move home which allows 
        otherwise eligible families to move home after the 
        death of a Federal employee. (Public Law 103-388)
          H.R. 2056, Sam Perry Post Office Naming. (Public Law 
        103-410)
          H.R. 2294, Graham Purcell Post Office Naming. (Public 
        Law 103-385)
          H.R. 2751, leave bill, was incorporated into Public 
        Law 103-329, Treasury Postal Appropriations. It allows 
        Federal employees to use leave for employees serving as 
        bone marrow or organ donors and allows Federal 
        employees to use sick leave for purposes relating to 
        the adoption of a child.
          H.R. 3197, Gus Yatron Post Office Naming. (Public Law 
        103-315)
          H.R. 3499, DOD Overseas Teachers' Pay with amendment, 
        extends leave transfer/leave bank authority to DOD 
        overseas teachers. The amendment prevents political 
        appointees from receiving bonuses beginning June 1 of a 
        presidential election year until January after the 
        election. (Public Law 103-425)
          H.R. 3694, Child Abuse Garnishment Act, allows the 
        garnishment of Federal annuity if a court so orders as 
        result of child abuse. (Public Law 103-358)
          H.R. 3839, Roy Wheat Post Office Naming. (Public Law 
        103-341)
          H.R. 3840, Sam Hall Federal Building and Courthouse. 
        (Public Law 103-289)
          H.R. 3984, John Longo Post Office Naming. (Public Law 
        103-453)
          H.R. 4177, Candace White Post Office Naming. (Public 
        Law 103-342)
          H.R. 4190, Alvaro de Lugo Post Office Naming with two 
        amendments. The first amendment, S. 1983, Postal 
        Reemployed Annuitants, allows the Postal Service to 
        rehire retired postal workers to fill in as 
        substitutes. This was particularly helpful to rural 
        carriers who often have trouble finding replacements 
        when they fall ill or go on vacation. The second 
        amendment, FEGLI assignment authority, allows for 
        irrevocable assignments of life insurance to assist 
        employees in planning their estate. This brings FEGLI 
        in line with laws pertaining to other life insurance. 
        (Public Law 103-336)
          H.R. 4191, Aubrey Ottley Post Office Naming. (Public 
        Law 103-343)
          H.R. 4361, Family Friendly Leave Act, allows Federal 
        employees to use between 5 and 13 days of their paid 
        sick leave for bereavement purposes or to tend to the 
        illnesses of family members. (Public Law 103-388)
          H.R. 4595, Marian Oldham Post Office Naming. (Public 
        Law 103-460)
          S. Con. Res. 60, Sense of the Senate stating that the 
        Postal Service should issue a stamp honoring Jewish War 
        Veterans.
    The following bills were considered by the Subcommittee or 
Committee but did not become public law:
          H.R. 2194, private relief Lannen; marked up September 
        20, 1994; no floor action.
          H.R. 3285, George Young Post Office Naming, approved 
        by Senate Governmental Affairs Committee with 2 
        amendments (contract post office closing appeal rights 
        which would have allowed towns to appeal the closing of 
        their contract post offices to the Postal Rate 
        Commission, and FLRA pay adjustment which would have 
        equalized the pay of Members of FLRA to that of similar 
        small agencies); no floor action taken.
III. Reports

    The following reports were issued at the request of the 
Chairman of the Subcommittee:
          Defense Force Management: Challenges Facing DOD as It 
        Continues to Downsize Its Civilian Work Force, GAO/
        NSIAD-93-123 (February 1993)
          Federal Performance Management: Agencies Need 
        Flexibility in Designing Their Systems, GAO/RCED-93-57 
        (February 1993)
          Energy Management: Improving Cost-Effectiveness in 
        DOE's Support Services Will Be Difficult, GAO/GGD-93-88 
        (March 1993)
          Public Affairs: Personnel Engaged in Public and 
        Congressional Affairs in Federal Agencies, GAO/GGD-93-
        71FS (March 1993)
          Resolution Trust Corporation: Summary of GAO 
        Products, GAO/GGD-93-128 (July 1993)
          Postal Service: 1992 Olympic Sponsorship--Profit or 
        Loss Is Unknown, GAO/GGD-93-89 (July 1993)
          Army Materiel Command: Providing Early Retirement 
        Incentives in 1990 Could Have Saved Money, GAO/NSIAD-
        93-233 (August 1993)
          Office of Technology Assessment: Medical Records 
        Privacy (October 1993)
          Revolving Fund: New Tuition Pricing Policy Is Under 
        Study by OPM
          Government Contractors: Measuring Costs of Service 
        Contractors Versus Federal Employees, GAO/GGD-94-95 
        (March 1994)
          OPM Revolving Fund: OPM Sets New Tuition Pricing 
        Policy, GAO/GGD-94-120 (April 1994)
          Postage Meters: Risk of Significant Financial Loss 
        But Controls Are Being Strengthened, GAO/GGD-94-148 
        (May 1994)
          Tax Administration: Information on IRS Executive 
        Relocations and Travel Matters, GAO/GGD-94-140 (June 
        1994)
          U.S. Postal Service: Proposed Policy to Accept Credit 
        and Debit Cards Makes Sense Conceptually, GAO/GGD-94-
        154 (June 1994)
          Export Controls: License Screening and Compliance 
        Procedures Need Strengthening, GAO/NSIAD-94-178 (June 
        1994)
          Ballistic Missile Defense: Records Indicate Deception 
        Program Did Not Affect 1984 Test Results, GAO/NSIAD-94-
        219 (July 1994)
          U.S. Postal Service: Labor-Management Problems 
        Persist on the Workroom Floor, GAO/GGD-94-201A 
        (September 1994).

   subcommittee on general services, federalism and the district of 
                                columbia

                          Chairman: Jim Sasser

                  Ranking Minority Member: John McCain

Hearings, bills, investigations

            Investigation into Government mismanagement of Federal 
                    civilian aircraft
    After being informed in August 1991 by a Nashville business 
owner that despite existing technology, the Federal 
government's aircraft--numbering at least 1,300--were being 
mismanaged, Senator Sasser opened an investigation which 
ultimately found that the cost to taxpayers was a waste of 
tens--possibly hundreds--of millions of dollars.
    Efforts included requesting Inspector General William 
Barton of the General Services Administration (GSA) to conduct 
the first ever comprehensive audit of these aircraft and assess 
GSA's management of the planes; and urging OMB to strengthen 
its regulations to ensure that all flights on all Federal 
civilian aircraft are documented and held accountable to public 
scrutiny and to improve it enforcement of aircraft regulations.
    In March of 1993, the Subcommittee issued a report for the 
President on the status of Federal civilian aircraft management 
including criticisms of the current system and recommendations 
on how to improve efficiency. The President responded by letter 
that he would make aircraft management a priority.
    Administrator Johnson wrote Senator Sasser on July 29, 
1993, informing him of actions taken in response to the 
Senator's recommendations. GSA has now compiled an accurate 
count of all non-military Federal aircraft and how they are 
used. Moreover, all aircraft owning agencies are currently 
working together, at the insistence of Senator Sasser, to 
incorporate a government-wide computer inventory to document up 
to the minute aircraft usage and expenditures.
    As a result of the Subcommittee's investigation of all 
Federal civilian aircraft, the Inspector General of the U.S. 
Department of Agriculture (USDA) conducted a review of the 
Forest Service's airplanes and learned that at least 28 former 
military planes had been illegally transferred through the 
Forest Service to private contractors. The contractors were 
supposed to have used the planes for fighting fires on Federal 
lands, but subsequent investigation revealed that less than 
half of the planes were even outfitted to fight fires, much 
less used to do so. For instance, one contractor took the 
aircraft he received for free and leased it back to the allies 
to transport equipment and supplies in Kuwait during Operation 
Desert Shield/Storm for a profit of almost a million dollars in 
spite of the end use regulations that prevented the planes from 
being flown abroad. Other contractors scrapped the airplanes 
they received and sold the parts on the open market for cash. A 
middleman who arranged the transfer of airplanes received cash 
and aircraft worth over a million dollars for his fee.
    The Justice Department is currently reviewing the transfer 
arrangement for criminal wrongdoing and the USDA Inspector 
General, at Senator Sasser's request, is considering action to 
recover the planes or the proceeds derived from them.
            Comprehensive study of waste, fraud and abuse at GSA
    On September 30, 1992, GAO completed the most comprehensive 
ever investigation of GSA, instigated at the request of Senator 
Sasser in mid-1991. The GAO study found that GSA was prone to 
unnecessary losses in virtually every aspect of its duties--
including building and maintaining Federal structures, managing 
government automobiles and assuring other Federal agencies of 
the cheapest possible goods and services from the private 
sector.
    Vice President Gore's National Performance Review echoed 
the concerns raised in the Subcommittee report and called for a 
massive overhaul of a number of GSA operations. Most 
particularly, the Administration and the Governmental Affairs 
Committee completed work on an overhaul of the Federal 
government's contract procurement process, the Federal 
Acquisition Streamlining Act.
    In response to the increased scrutiny brought about by the 
Subcommittee report, GSA suspended all office space 
procurements not yet under construction (or for leases, in the 
contract phase) to review each and every one to ensure cost-
efficiency.
            Fraud in the Federal Workers' Compensation Programs
    In January of 1992, responding to a report by the Inspector 
General of TVA citing massive abuse in its Workers' 
Compensation Program, Senator Sasser called for a government-
wide inquiry into the efficiency of the Federal workers 
compensation program.
    After correspondence with the TVA IG, Senator Sasser 
introduced legislation to plug two major loopholes which 
allowed payments of thousands of dollars in fraudulent and 
unnecessary workers' compensation claims. This bill would 
prevent the collection of workers' compensation benefits if the 
beneficiary (1) was convicted of workers' compensation fraud or 
(2) was incarcerated (with an exception for dependents relying 
on the payments). The provisions of this legislation were 
included as a proposal for reducing government waste in Vice 
President Gore's National Performance Review.
    Discouraged by the slow pace of reform in the workers' 
compensation area, Senator Sasser wrote to the President's 
Council on Integrity and Efficiency (PCIE), the 
Administration's office that oversees the Inspectors General, 
to recommend they play a more active role in solving the 
problem.
            Investigation of GSA lease procurement of Federal office 
                    space for the Federal Communications Commission
    As Chairman of the Subcommittee which oversees the General 
Services Administration, the government's ``real estate 
agent,'' Senator Sasser requested that the GAO examine GSA's 
controversial decision to cancel the consolidation of FCC 
headquarters. The project, which was over five years in 
planning and would save millions of taxpayer dollars, was 
reportedly canceled over the FCC's unreasonable refusal to 
relocate. After GAO reported that it would cost a million 
dollars to redo the project, plus unknown costs of delay and 
interim lease expenses, the government agreed to reconsider its 
decision.
            Passage of a provision that promotes private resale of 
                    government automobiles resulting in substantial 
                    government savings
    At the urging of Senator Sasser, the 1994 appropriations 
bills for general government amended current law to clear the 
way for more private auction companies to sell off unneeded 
government vehicles. Figures show that such companies handle 
the sales more quickly than the government and on average, net 
the taxpayer over $1,000 more per vehicle. As a result of this 
amendment, GSA placed several contracts for private auction 
services which will realize several million dollars in savings 
to the government.
            Commissioned GAO report criticizing the General Services 
                    Administration's poor job of collecting default 
                    payments from poor performing vendors
    On June 15, 1994, Sasser released a report prepared by GAO 
at his request detailing the terrible job GSA has done 
collecting default payments from poor performing vendors. Of 40 
defaulted contracts surveyed by GAO, costs either had been only 
partly recovered or had not been recovered at all. In many 
cases, GSA had not even identified what costs were recoverable, 
much less made an attempt to recover them. GSA agreed there are 
weaknesses in its recovery program and began working to make 
corrections.
            Assisted Corrections Corporation of America (CCA) with its 
                    contract maintaining District of Columbia prisoners 
                    and with a Bureau of Prisons contract for a private 
                    Federal facility
    At the request of CCA, Senator Sasser, through the 
Subcommittee on General Services, contacted the District 
government to express concern about their withdrawal of 
prisoners from CCA facilities in Tennessee while the District 
was under court order to reduce its prison population. Citing 
budget concerns, the District intended to make room for its 
returning prisoners by paroling current inmates. Presently, the 
District has removed its prisoners from every facility with 
which it was contracting except CCA. In the 1993 District of 
Columbia appropriations bill Senator Sasser secured conference 
language stating it was the belief of the conferees that the 
District had been well-served by its contracting arrangements 
with private facilities (CCA) and that such a relationship 
should continue until the District had adequately dealt with 
its overcrowding problem.
    In May of 1991, the Bureau of Prisons (BOP) awarded the 
contract for a 1000 bed private prison to a company that was 
unable to fulfill its contract obligations. After several 
contacts by Senator Sasser including a letter to the Director 
of BOP on April 29, 1993, the Bureau canceled the award and 
rebid the contract allowing CCA and other competitors another 
opportunity to win the award. The contract was reawarded on May 
17, 1993, yet once again the winning contractor failed to 
perform. Senator Sasser wrote to BOP again on September 17, 
1993 requesting a status report on the second contract, the 
reasons for the delay, and BOP's plan for dealing with the 
problem. The BOP responded that the contract may once again 
need to be rebid, or in the alternative, that the contract 
award may be passed along to the second ranked bidder from the 
most recent award. Either option would give CCA and other 
bidders another opportunity to win this important pilot project 
in the privatization of a Federal prison.
            Intervention with Bureau of Prisons on behalf of 
                    Corrections Management Affiliates (CMA)
    At the request of CMA, Senator Sasser through the 
Subcommittee on General Services, contacted the BoP on 
September 16, 1993 to request that CMA be allowed to 
participate in negotiations with Bop on behalf of CMA's client, 
the Town of Hinton, OK. CMA managed a Hinton, OK correctional 
facility which leased beds to BoP but had been excluded from 
bargaining on behalf of Hinton by BoP. Senator Sasser was 
informed by BoP that CMA would be allowed to participate in the 
meeting.
            National Women's Health Resource Center
    This bill was reported from the Subcommittee, and Congress 
eventually passed it to authorize the National Women's Health 
Resource Center in Washington, D.C. The spotlight was growing 
on the need for greater research into women's health problems. 
The Center will be run by the Congressionally-chartered and 
nationally known Columbia Hospital for Women; it will provide 
world-class research on women's health. The bill passed with 
unanimous Democratic and Republican support.
            Letter to Attorney General requesting scrutiny of a request 
                    by the Pharmaceutical Manufacturer's Association 
                    (PMA) to be exempt from certain anti-trust 
                    liability
    On March 12, 1993, Senator Sasser wrote to Attorney General 
Reno requesting that the Department of Justice give careful 
scrutiny to a request by the PMA for a ``business letter'' 
asserting that the Department would forego an anti-trust 
prosecution of PMA members for certain price-fixing agreements. 
The PMA claimed such agreements would eventually lead to 
reduced prescription drug prices for the consumer. Senator 
Sasser expressed doubt that ``voluntary'' price restraints by 
the PMA would be sufficient in light of the fact that 
prescription drug prices increased almost three times faster 
than normal inflation in the 1980s.
            Introduction of S. 1606, The Federal Mandate Funding Act of 
                    1993
    On November 1, 1993 in response to appeals from over 100 
cities and towns, Senator Sasser introduced S. 1606, The 
Federal Mandate Funding Act of 1993, which would have provided 
relief to state and local governments for the costs they incur 
in implementing Federal legislation. Because of the dramatic 
increase in the number and amount of Federal mandates on state 
and local governments over the last decade, many local 
governments were finding it increasingly difficult to meet 
their own needs while also keeping up with Federal funding 
requirements. This legislation was referred to the 
Subcommittee.
    This legislation (1) required Congress, before it passed 
significant Federal mandates in the future, to state 
specifically how much Federal reimbursement or cost sharing is 
authorized, and in no case will such reimbursement be less than 
20 percent; (2) further imposed an actual moratorium on new 
mandates on state and local governments for two years to assess 
the impact of current mandates already enacted but not yet in 
effect; and (3) created a fund to furnish additional mandate 
relief to hard-pressed state and local governments to 
supplement any Federal cost-sharing already in place.
            Critized the Department of Health and Human Services (HHS) 
                    for not moving quickly enough to make its human 
                    radiation records public
    On May 27, 1994, Senator Sasser wrote a letter to Donna 
Shalala, Secretary of the Department of Health and Human 
Services, concerning HHS's delay in locating and making public 
its thousands of pages of records on human radiation 
experiments. The letter noted the Department of Energy and 
other agencies were moving forward by making their records 
public, but that HHS appeared to be lagging behind. Senator 
Sasser requested that Shalala take steps to review the 
Department's files and disclose its human radiation records as 
soon as possible.
            Commissioned a comprehensive audit by GAO of TVA's power 
                    needs and debt load
    In June of 1994, Senator Sasser requested a GAO audit to 
determine whether the Tennessee Valley Authority's current 
power supply options (as coal, gas, nuclear, etc.) are adequate 
to meet the Valley's power needs in the foreseeable future. 
Since TVA is in the process of bringing some of its nuclear 
plants back on line, it was an appropriate time to make certain 
TVA and Congress understand the proper mix of available power 
sources to make the most efficient use of each. Senator Sasser 
also requested that GAO examine TVA's debt limit and determine 
whether TVA is handling its debt in a manner most beneficial to 
ratepayers.
            National Law Enforcement Officers Memorial
    Senator Sasser successfully assisted in resolving a dispute 
involving the Washington Metro, which was holding up completion 
of this Memorial (located in Judiciary Square in Washington, 
D.C.). Writing to Metro's Board of Supervisors, Senator Sasser 
won Board approval of a design which incorporates Metro's 
handicapped elevators into the Memorial's overall design. The 
Memorial walls contain the names of over 42,000 law enforcement 
officers killed in the line of duty in our country's history, 
dating back to 1794.
            Significant National Capital Planning Commission Actions 
                    and Senator Sasser's vote as Chairman of the 
                    Subcommittee and a Member of the Commission
    National Black Revolutionary War Veterans' Memorial: 
Senator Sasser's vote on the 12-member Commission was to 
approve final designs for this monument, clearing the way for 
groundbreaking. This is a monument authorized by Congress, to 
be paid for entirely with private funds, which will be placed 
nearby a memorial to the Framers of the U.S. Constitution in 
Washington, D.C.
    Transfer of Federal Land (Children's Island) to the 
District of Columbia: Senator Sasser's vote was to deny the 
transfer of 46 acres of Federally-owned land to the District 
government. These are artificial islands in the Anacostia river 
in Washington, D.C., which were created by the U.S. Army Corps 
of Engineers at Federal taxpayer expense. Senator Sasser, 
through his representative on the Commission, objected to such 
an uncontrolled giveaway of Federal property, especially since 
the District planned to turn control of it over to private 
developers for a vaguely-described ``theme park'' which would 
charge admission to the public. The proposed transfer is 
currently under congressional investigation.
    Permission to Use Federal Land for a New Redskins Stadium: 
Senator Sasser voted with a majority of the Commission to 
require the U.S. Department of the Interior, which controls the 
land under R.F.K. Stadium, to do more studies of alternatives 
such as renovating the N.F.L. team's existing stadium. 
Tentative agreements between team owner, Jack Kent Cooke, and 
the District government would have allowed Cooke to build his 
stadium on adjacent Federal land and keep all parking fees and 
various other profits from use of this land.
    Federal Detention Center in Washington, D.C.: The 
Subcommittee has been studying Federal Detention Centers in 
other major U.S. cities to determine the feasibility of placing 
a similar facility in Washington, D.C. Such centers are used to 
house Federal prisoners awaiting trial, or post-trial offenders 
awaiting permanent sentencing. DOJ estimates that Washington 
will need a 1,000-bed facility within the next few years; 
District officials would likely want to locate the center in a 
neighboring jurisdiction, but Justice officials prefer keeping 
the facility in Washington.
                subcommittee on permanent investigations

                           Chairman: Sam Nunn

             Ranking Minority Member: William V. Roth, Jr.

    The following is a list of activities of the Permanent 
Subcommittee on Investigations during the 103rd Congress in the 
areas of hearings, legislation and reports.

I. Historical Background

    The Permanent Subcommittee on Investigations was originally 
authorized by Senate Resolution 189 on January 28, 1948. At 
that time, the Subcommittee was part of the Committee on 
Expenditures in the Executive Departments. In 1952, the parent 
committee's name was changed to Committee on Government 
Operations and in early 1977 to the Committee on Governmental 
Affairs. The Subcommittee's records and jurisdiction actually 
antedate its creation since it was given custody of the 
jurisdiction of the old Special Committee to Investigate the 
National Defense Program (the so-called War Investigating 
Committee), chaired by Senator Harry S Truman during World War 
II.
    The Subcommittee has had seven chairmen: Senators Homer 
Ferguson of Michigan (1948), Clyde R. Hoey of North Carolina 
(1949-1952), Joseph R. McCarthy of Wisconsin (1953-1954), John 
L. McClellan of Arkansas (1955-1972), Henry M. Jackson of 
Washington (1973-1978), Sam Nunn of Georgia (1979-1980 and 
1987-1994), and William V. Roth of Delaware (1981-1986).
    Until 1957, the subcommittee's jurisdiction was principally 
the investigation of waste, inefficiency, impropriety, and 
illegality in government operations. It has been expanded 
considerably since then. In 1957--based on information 
developed by the Subcommittee--the Senate passed a Resolution 
establishing a Select Committee on Improper Activities in the 
Labor or Management Field chaired also by Senator McClellan. 
This Committee was composed of eight Senators--four of whom 
were drawn from the Subcommittee on Investigations and four 
from the Committee on Labor and Public Welfare. The Select 
Committee was in operation for three years sharing office 
space, personnel, and other facilities in common with the 
Permanent Subcommittee.
    Upon the expiration of the Select Committee in early 1960, 
its jurisdiction and files were transferred to the 
Subcommittee, greatly enlarging the Subcommittee's 
investigative authority in the labor-management area.
    The Subcommittee's jurisdiction was broadened further in 
future years. In 1961, authority was granted for inquiries into 
syndicated or organized crime. The famous Valachi hearings were 
held in 1963. In the wake of riots and civil disturbances that 
marked the summer of 1967, a Resolution was approved directing 
the Subcommittee to investigate the causes and to recommend 
corrective action. In January 1973, the National Security 
Subcommittee was merged with the Subcommittee. With this, the 
Subcommittee's jurisdiction was further enlarged to include 
inquiries concerning the adequacy of national security staffing 
and procedures, relations with international organizations, 
technology transfer, and related matters. And, in 1974, 
jurisdiction was conferred to investigate the government 
operations involving the control and management of energy 
resource and supplies.
    Armed with this broad jurisdictional mandate, the 
Subcommittee has initiated investigations into a wide variety 
of topics during the past decade ranging from child pornography 
to espionage. A significant number of these investigations have 
involved a review of organized crime activities, including 
labor racketeering, fraudulent insurance plans, and newly 
emerging criminal groups. The Subcommittee has also spent 
considerable effort reviewing all aspects of narcotics 
trafficking, including money laundering, Federal drug 
enforcement, and drug abuse. In recent years, the Subcommittee 
has devoted increasing attention to allegations of waste, 
fraud, and abuse in government programs.
II. Hearings

            1. Oversight of the Insurance Industry: Blue Cross/Blue 
                    Shield--National Capital Area--January 26 and 27, 
                    1993
    The Subcommittee continued its series of investigations 
into the management and regulation of various Blue Cross and 
Blue Shield (BCBS) plans by examining the BCBS plan for the 
National Capital Area (BCBS-NCA), also known as Group 
Hospitalization and Medical Services, Incorporated (GHMSI). The 
investigation of BCBS-NCA resulted in the fourth set of 
hearings in the series of BCBS investigations by the 
Subcommittee.
    The investigation into GHMSI, which processed over $1 
billion in premiums and claims annually, was spawned by the 
testimony of the Superintendent of Insurance for the District 
of Columbia, Robert M. Willis, on July 2, 1992 at the 
Subcommittee's initial hearing regarding mismanagement within 
the BCBS system. Superintendent Willis informed the 
Subcommittee that due to provisions contained in BCBS-NCA's 
original 1939 Congressional Charter, he was precluded from 
effectively regulating this Plan. As a result of this 
testimony, Senator Nunn introduced legislation on July 29, 
1992, which was signed into law on October 5, 1992, amending 
the Congressional Charter and subjecting BCBS-NCA to regulation 
by the District of Columbia. Because this amendment included 
only a one-year provision, Senator Nunn later introduced the 
amendment as a permanent measure and it was signed into law on 
November 1, 1993.
    Also as a result of Superintendent Willis' testimony on 
July 2, 1992, the Subcommittee launched an extensive 
investigation of BCBS-NCA which resulted in two days of public 
hearings on January 26 and 27, 1993. At these hearings, the 
Subcommittee staff and insurance regulators for Virginia and 
the District of Columbia described many of the same problems 
identified in the West Virginia and Maryland plans examined in 
prior hearings. These problems included a proliferation of 45 
subsidiary companies incurring cumulative losses in excess of 
$100 million; excessive spending, exorbitant salaries and 
fringe benefits for executives, and questionable travel and 
entertainment expenses; inadequate oversight by the Board of 
Trustees; inadequate regulation by the District of Columbia, 
Maryland and Virginia insurance authorities; and inadequate 
oversight by the BCBS Association.
    The Subcommittee also heard testimony from Benjamin 
Giuliani, then President and CEO of the Plan, from Peter J. 
O'Malley, Chairman of the Board of Trustees of BCBS-NCA, and 
from Charles Duvall, M.D., former Chairman of the Board of 
Trustees. Additionally, the Subcommittee subpoenaed the 
appearance and testimony of Joseph P. Gamble, the recently 
retired President and CEO of the Plan, who invoked his Fifth 
Amendment privilege against self-incrimination and declined to 
respond to Subcommittee questioning.
            2. Corruption in Professional Boxing, Part II--March 10 and 
                    April 1, 1993
    The Subcommittee continued the first Senate investigation 
into professional boxing in over 30 years, following up on 
hearings held during the 102nd Congress. Those hearings 
revealed widespread and systemic problems in the boxing 
industry, including ineffective regulation by state regulatory 
bodies, widespread unfair and corrupt practices and continued 
organized crime influence.
    The Subcommittee's hearing on March 10, 1993, focused on 
current health and safety issues in professional boxing, as 
well as the role of television in the boxing industry. These 
hearings revealed that perhaps the most important area in which 
the current system of state regulation of professional boxing 
has proven ineffective is protection of the health and safety 
of boxers. The patchwork system of state regulation of 
professional boxing results in wide variations from state to 
state both in health and safety rules themselves and in the 
enforcement of those rules. As a result, it is the boxers who 
suffer. The Subcommittee heard testimony from a panel of 
physicians, who work closely with state boxing regulators, 
endorsing the need for uniform minimum national health and 
safety standards for professional boxing. That goal was also 
supported by the representatives of the television industry who 
testified at the hearing.
    Congressman Bill Richardson also testified about the 
problems currently facing professional boxing, including health 
and safety concerns, and the need for Federal regulation of the 
sport, particularly regarding uniform minimum national health 
and safety standards. Congressman Richardson specifically 
advocated the need to adopt the Professional Boxing Corporation 
Act of 1993, legislation that Senator Roth and Congressman 
Richardson introduced in both the Senate and the House, 
respectively (S. 1189 and H.R. 2607).
    The Subcommittee's hearing on April 1, 1993, revealed the 
continuing influence of organized crime on professional boxing 
and the failure of state regulators to effectively eliminate 
that influence. The Subcommittee's investigation identified 
three currently active world class boxers with significant ties 
to organized crime figures as case studies of how the current 
regulatory structure has failed to keep organized crime out of 
boxing. The three boxers are former World Boxing Council 
welterweight champion James ``Buddy'' McGirt, former 
International Boxing Federation super-middleweight champion 
Iran Barkley, and former World Boxing Association cruiserweight 
champion Bobby Czyz. Salvatore ``Sammy the Bull'' Gravano, 
former underboss of the Gambino organized crime family, 
testified that a member of the Gambino crime family ``owned a 
piece'' of Buddy McGirt, and that Alfred Certissimo, McGirt's 
manager of record, was an associate of the Gambino family. Both 
McGirt and Certissimo testified before the Subcommittee, as did 
alleged organized crime figures who were found to have ties to 
boxers Barkley and Czyz; two of those individuals exercised 
their Fifth Amendment rights and did not respond to 
Subcommittee questions.
            3. Oversight of the Insurance Industry: Blue Cross/Blue 
                    Shield--Empire Plan (New York)--June 25 and 30, 
                    1993
    The Subcommittee continued its investigation into 
management and regulatory weaknesses within the Blue Cross and 
Blue Shield (BCBS) system by examining the country's largest 
BCBS plan, Empire BCBS of New York. The Subcommittee's June 25 
and 30, 1993 hearings, the fifth in this series, revealed that 
Empire insured over 8 million subscribers and collected over $6 
billion in premiums in 1992, yet experienced financial losses 
of over $250 million in the two years preceding the 
Subcommittee's investigation.
    The causes of Empire's financial instability reflected many 
of the weaknesses exhibited by other BCBS plans examined by the 
Subcommittee, namely: mismanagement, including exorbitant 
executive salaries and excessive spending; poor financial 
performance by subsidiary companies; inadequate oversight by 
the Plan's Board of Directors, which was chaired by the Plan's 
Chief Executive Officer; inadequate regulation by the State 
Insurance Department, and inadequate oversight by the BCBS 
Association.
    Among the most critical allegations was the Subcommittee 
staff's testimony that Empire's Chief Executive Officer, Albert 
A. Cardone, and Chief Financial Officer, Jerry Weissman, 
knowingly misrepresented to New York State regulators the 
Plan's underwriting gains/losses in certain segments of its 
business. Two former employees of Empire also testified that 
when they became aware of the discrepancy between the figures 
provided to the state regulators and those maintained by 
Empire's financial department, they confronted both Cardone and 
Weissman yet nothing was done to rectify the situation.
    Several of Empire's executives appeared before the 
Subcommittee on June 25, 1993, including Albert A. Cardone and 
Jerry Weissman. Weeks before the Subcommittee's hearings, 
Cardone had resigned as Chairman and CEO of Empire. Weissman, 
when questioned about the inaccurate figures provided to the 
State Insurance Department, denied any wrongdoing and explained 
that the discrepancy had been the result of using two different 
accounting methods. Subsequently, on October 18, 1994, Jerry 
Weissman was indicted by a grand jury sitting in the Southern 
District of New York on three counts of perjury in testimony 
given before the Subcommittee and one count of obstructing the 
Subcommittee's investigation of Empire.
            4. Abuses in Federal Student Grant Programs--October 27 and 
                    28, 1993
    As part of its review of fraud, abuse and mismanagement in 
student aid programs within the Department of Education, the 
Subcommittee held two days of hearings on the largest direct 
Federal student aid program, the Pell Grant Program. The Pell 
Grant program is the foundation of all student aid and is 
designed to provide financial aid to qualified undergraduate 
students who need it the most. In the 1991-1992 school year, 
3.7 million students shared in $6.79 billion in Pell Grant 
awards. The Subcommittee found, however, gross abuse of the 
Pell Grant program which went unchecked by the Department of 
Education.
    The Pell Grant program relies on schools to properly 
document, calculate, and verify the needs of eligible students 
and depends on the Department of Education to properly oversee 
the schools to assure that the program is not being abused or 
defrauded. Unlike Federally guaranteed student loans, Pell 
Grants are administered and disbursed by the schools where the 
students are enrolled and are not required to be repaid. The 
Subcommittee staff found that the Department of Education 
continued to recognize and provide Pell Grant funds to school 
which did not meet the statutory requirements for institutions 
of postsecondary education. Additionally, a review by the U.S. 
General Accounting Office criticized the capability of the 
Department of Education of effectively manage the multi-
billion-dollar student aid programs.
    Senator Claiborne Pell (D-RI), who sponsored the 1973 
legislation creating this grant program and for whom the 
program was subsequently named, expressed his concern over the 
abuse the Subcommittee staff uncovered. In addition to poor 
oversight exercised by the Department of Education, the 
Subcommittee's investigation also found: schools which received 
Pell Grants for students who told the Subcommittee staff that 
they never attended the courses nor the schools; schools which 
paid students to attend classes so that the school could 
collect and pocket Pell Grant funds as profit; students who 
attend classes for money paid to them by the school, not to 
attain any educational or vocational goal; and schools which, 
in contravention of law, falsified or manufactured records to 
enable ineligible students to obtain Pell Grants.
    Just prior to the Subcommittee's hearing, the Department of 
Education took action against 20 schools in the New York City 
area after determining that they failed to meet the statutory 
criteria for participation in the Federal student financial aid 
programs. Some of those schools had been participating in the 
Pell Grant program since the early 1970s.
            5. Criminal Aliens in the United States--November 10 and 
                    16, 1993
    During the 102nd Congress, the Subcommittee's investigation 
of Asian organized crime revealed that alien smuggling can be 
more profitable for Asian organized crime syndicates and less 
risky than drug smuggling, indicating a growing problem with 
criminal aliens (i.e., aliens in the United States who commit 
crimes in this country). Based on those findings, the 
Subcommittee conducted an investigation and held hearings on 
criminal aliens in the United States. The hearings revealed 
widespread problems with criminal aliens with the need for 
change at all levels of the current system.
    On November 10, 1993, the Subcommittee heard testimony from 
a panel of criminal aliens each of whom confirmed what the 
Subcommittee's investigation found; namely that, even in the 
rare instances when the system finally works and a criminal 
alien is deported, reentry into the United States is so easy 
that it makes the whole process appear to be a giant exercise 
in futility. Despite the fact that reentry into the U.S. after 
being deported is a felony, the Subcommittee found that these 
cases are not a high priority for Justice Department 
prosecutors, who frequently fail to prosecute violators.
    The Subcommittee's hearings showed that the current system 
for dealing with criminal aliens rarely works effectively, with 
problems at every level. The Federal deportation laws for 
criminal aliens set out an irrational, lengthy, complex process 
far beyond what is due already convicted criminals. In 
addition, the Immigration and Naturalization Service (INS), the 
agency responsible for enforcing the immigration laws and for 
deporting criminal aliens, is lacking the resources and the 
management priorities necessary to effectively deal with this 
problem. Finally, the Subcommittee's investigation found 
evidence of local governments refusing to cooperate with the 
INS, making an already difficult job that much harder.
    At the Subcommittee's November 16, 1993, hearing, INS 
Commissioner Doris Meissner outlined the priorities and goals 
for the INS criminal aliens program, including plans for an 
automated case tracking and reporting system and a fingerprint-
based automated identification system. The Subcommittee also 
heard testimony from representatives of the Executive Office of 
Immigration Review (EOIR), which is responsible for conducting 
deportation hearings for criminal aliens. These immigration 
judges confirmed the obstacles presented by current Federal 
immigration law in effectively dealing with the problem of 
criminal aliens. These judges also testified that, while the 
EOIR established the Institutional Hearing Program (IHP) to 
provide expeditious hearings for alien inmates at designated 
correctional institutions, this program is under-utilized. For 
example, on any given day, the Los Angeles county jail will 
house approximately 2,200 criminal aliens; yet the INS may 
present only six cases a day to the institutional hearing 
program there. This investigation led to the introduction by 
Senator Roth of the Criminal Alien Control Act of 1994 (S. 
1934).
            6. International Organized Crime and Its Impact On The 
                    United States--May 25, 1994
    In keeping with its historical interest in the problem of 
organized crime, the Subcommittee examined international 
security implications arising from the dramatic increase of 
organized crime in the states of the former Soviet Union. At 
the hearing held on May 25, 1994, the Subcommittee heard 
testimony from a distinguished panel of law enforcement experts 
from the United States, Germany and Russia.
    Lois Freech, Director of the Federal Bureau of 
Investigation, announced to the Subcommittee that the FBI 
planned to establish a legal attache office in Moscow, marking 
the first time that the Department of Justice would be 
stationing full-time law enforcement officers in Russia. Hans-
Ludwig Zachert, President of the German Federal Criminal 
Police, also testified before the Subcommittee regarding his 
efforts in combating organized crime and the threat presented 
to Germany by the increase of organized crime in the former 
Soviet Union. Finally, the Subcommittee heard from General 
Mikhail Yegorov, First Deputy Minister and head of the 
Organized Criminal Control Department of the Russian Ministry 
of Internal Affairs.
    The testimony underscored the increasing strength of 
Russian organized crime groups, including evidence of their 
growing presence in the United States and joint activity 
between Russian and American organized crime groups. These 
witnesses told the Subcommittee that the fear of this criminal 
activity has spread not only to the United States but to many 
of Russia's neighbors, including Germany and Poland. Most 
significantly, the Subcommittee received evidence that Russian 
organized crime groups may begin trafficking in nuclear 
materials and weapons of mass destruction. Recognizing all 
these problems Director Freeh testified that it was critical 
that U.S. law enforcement authorities cooperate with their 
counterparts in Russia and Eastern Europe in order to 
effectively combat these organized crime groups.
            7. Oversight of the Insurance Industry: Blue Cross/Blue 
                    Shield--Federal Contracts--August 5 and 8, 1994
    In its sixth and final hearings on the Blue Cross and Blue 
Shield (BCBS) system, the Subcommittee examined the performance 
and oversight of the BCBS Association in its contracts with the 
Federal Government. These contracts allow BCBS plans across the 
country to provide health insurance coverage to over 40 percent 
of the Federal employees, dependents and annuitants through the 
Federal Employees Health Benefits Program (FEHBP) and to 
process over 90 percent of all Medicare Part A and 65 percent 
of all Medicare Part B claims. As a result, the Federal 
Government pays the BCBS system over $1.5 billion annually in 
administrative costs.
    The Subcommittee found that BCBS' relationship with the 
FEHBP and Medicare programs was marked by some of the same 
problems uncovered in the investigations of several individual 
BCBS plans, including mismanagement and inadequate oversight by 
responsible regulatory authorities.
    The Subcommittee staff found that problems in the BCBS 
Federal contracts included a multi-layered, complex and costly 
organizational structure; excessive administrative costs; 
improperly withheld provider discounts by some plans; poor 
customer service; unreconciled enrollment allowing former 
Federal employees to continue to receive BCBS benefits; and 
unreasonable and exorbitant expenses for conferences, gifts and 
salaries being charged to the Federal contracts.
    The Office of Personnel Management (OPM) is responsible for 
oversight of the BCBS contract with the Federal Employees 
Health Benefits Program. The Health Care Financing 
Administration (HCFA) of the Department of Health and Human 
Services is vested with regulating the performance of BCBS 
plans as Medicare contractors. Representatives of each of these 
agencies testified before the Subcommittee regarding their 
oversight and regulatory efforts. Both OPM and HCFA 
representatives told the Subcommittee that they had met with 
uncooperative attitudes and evasive tactics on the part of the 
BCBS Association and the individual participating BCBS plans, 
and OPM, in particular, faced considerable difficulty in 
effective regulation as a result.
    Bernard R. Tresnowski, President and Chief Executive 
Officer of the BCBS Association, testified that the 
Association, in response to this investigation, had instituted 
reforms within the Blue Cross and Blue Shield system that were 
intended to address many of the Subcommittee's concerns.

III. Legislation

    The Subcommittee does not have legislative authority, but 
its investigations contributed to the development of the 
following legislative initiatives:
    S. 285--Medicare Secondary Payer Reform Act of 1993 (by 
Senator Roth). This legislation is the result of hearings held 
by PSI on July 11 and 12, 1990, on health care fraud in the 
Medicare Secondary Payer (MSP) program. Senator Roth introduced 
different legislation on this subject in the previous two 
Congresses. The Subcommittee's investigation revealed the need 
to better identify Medicare-eligible individuals who have 
private insurance so that Medicare pays secondary and the 
private insurance pays primary. Federal Government estimates 
indicate that losses of between $400 million to $1 billion 
annually are occurring as a result of the failure of this 
program. This legislation amends the Federal W-2 tax form 
adding one additional line regarding employers health insurance 
coverage. This bill would also establish a data bank for the 
collection and processing of this health insurance information. 
S 285 was introduced on February 3, 1993 and was referred to 
the Senate Finance Committee. No further action was taken on 
this legislation during the 103rd Congress.
    S. 1091--The International Organized Crime Control Act of 
1994 (by Senator Roth). This legislation contains a variety of 
measures, most of which were recommended by the PSI report of 
December 1992 on ``The New International Criminal and Asian 
Organized Crime.'' The report followed an extensive PSI 
investigation and five days of hearings on Asian organized 
crime and the new international criminal. S. 1091 was 
introduced on June 10, 1993 and was referred to the Senate 
Foreign Relations Committee. No further action was taken on 
this legislation during the 103rd Congress.
    S. 1189--The Professional Boxing Corporation Act of 1993 
(by Senator Roth, additional cosponsors Senators Biden, McCain 
and Dorgan). Very similar to the legislation Senator Roth 
introduced in the 102nd Congress, this bill would create a 
nonprofit government corporation, known as the Professional 
Boxing Corporation (PBC). The PBC would be fully funded by the 
professional boxing industry; other than an initial startup 
loan which would be repaid, no taxpayers' dollars would be 
used. The PBC would be responsible for working with the state 
boxing authorities to develop and enforce uniform rules and 
minimum health and safety standards for all professional boxing 
matches held in the United States. The PBC would also develop 
and maintain a centralized boxing database to which states 
would have access containing boxers' won-loss records, medical 
data, and other relevant information. The PBC would have full 
authority to investigate improper activities in boxing for the 
protection of the boxers' health and safety and to reduce 
corruption and unfairness. S. 1189 was introduced on July 1, 
1993, and was referred to the Senate Committee on Commerce, 
Science and Transportation. No further action was taken on this 
legislation during the 103rd Congress.
    S. 1213--A bill to amend the charter of Group 
Hospitalization and Medical Services Inc., (by Senator Nunn, 
additional cosponsor: Senator Roth). In 1939, Congress 
chartered Group Hospitalization, Incorporated, the predecessor 
of the District of Columbia's Blue Cross and Blue Shield Plan, 
now known as Group Hospitalization and Medical Services, 
Incorporated, and exempted the corporation from the vast 
majority of the District's insurance code. In the mid-1980's, 
the D.C. Blue Cross and Blue Shield plan had grown to include 
42 subsidiary corporations, some of which were based in Europe 
and the Far East. All of the subsidiary operations were 
operated without the benefit of effective regulation by the 
District's insurance department, and the operation of many of 
the subsidiaries resulted in severe financial losses for the 
Plan. Realizing that the D.C. Blue Cross and Blue Shied Plan 
lacked effective regulatory oversight due to the exemption 
contained in the 1939 charter, Senator Nunn acted to remove the 
exemption. In 1992, Senator Nunn introduced S. 3092, which was 
included as a one-year provision in the District's 
appropriations bill (H.R. 6056), which was signed into law on 
October 5, 1992 as Public Law 102-382. In 1993, Senator Nunn 
introduced S. 1213 to make the amendments contained in S. 3092 
permanent. S. 1213 was accepted as amendment No. 696 to the 
1994 appropriations bill for the District of Columbia, and was 
signed into law on November 1, 1993 as Public Law 103-127.
    Amendment to S. 1607--The Violent Crime Control and Law 
Enforcement Act of 1993 (by Senator Roth, additional 
cosponsors: Senators Grassley, Thurmond, Coats, Hatch, Nickles, 
Heflin, Murkowski, Sasser, Kassebaum, Feinstein, Gramm, Conrad 
and Hutchison), expressing the Sense of the Senate to confirm 
original intent of Congress in enacting child pornography 
provisions of the Child Protection Act of 1984, and express 
sense of the Congress in opposition to the Supreme Court brief 
in the case of Knox v. U.S. The Justice Department in the Knox 
brief asked the Supreme Court to set aside a judgment upholding 
the second conviction of a man who had previously been 
convicted under the Federal child pornography laws. The Justice 
Department told the Supreme Court that the appeals court had 
used ``an impermissibly broad standard'' to interpret and apply 
the law. The Administration maintained that the appeals court 
should be ordered to reconsider the case under a narrower 
standard. In 1984, the Congress passed anti-child pornography 
legislation intended to stamp out the business of child 
pornography and stop sexual exploitation of children. In 1986 
after a two-year probe, the Subcommittee issued a report on the 
relationship between child pornography and the sexual abuse of 
children. The Subcommittee found that child pornography plays a 
central role in child molestations by pedophiles. This 
amendment was adopted by a vote of 100-0 on November 4, 1993.
    Amendment to S. 1607--The Violent Crime Control and Law 
Enforcement Act of 1993 (by Senator Roth), expressing the sense 
of the Senate encouraging the development of a United Nations 
Convention on Organized Crime and urging the U.N. to provide 
additional authority and resources to the U.N. Commission on 
Crime Prevention and Criminal Justice. Senator Roth introduced 
this amendment as a result of the Subcommittee's investigation 
of Asian organized crime. Following the Subcommittee hearings, 
the Subcommittee issued a report in December 1992 concluding 
that there have been substantial increases in Asian organized 
criminal activity in the U.S., facilitated by modern 
development in transportation and communications, relaxed 
travel restrictions and the greatly increased volume of 
international trade. This necessitates greater cooperation 
among nations to prosecute and eliminate organized criminal 
groups. The current role of the United Nations is limited with 
respect to international organized crime by lack of a binding 
international convention. This amendment was adopted by voice 
vote on November 5, 1993 and was signed into law as part of 
Public Law 103-322 on September 13, 1994.
    Amendment to S. 1607--The Violent Crime Control and Law 
Enforcement Act of 1993 (by Senator Roth), requiring State and 
local governments to cooperate with the INS regarding 
enforcement of immigration laws by providing information on 
aliens who are not lawfully present in the U.S. During the 
course of the Subcommittee's investigation of criminal aliens, 
the Subcommittee found that several major cities have, either 
by law or policy, adopted practices of non-cooperation with the 
INS. These provisions vary widely but are generally referred to 
as sanctuary, refuge, or non-cooperation policies. These 
policies hamper the INS's efforts to identify and process 
criminal aliens and generally restrict the effectiveness of any 
governmental response to the criminal alien problem. Senator 
Roth's amendment would require that, consistent with the 
Supremacy Clause of the U.S. Constitution, State and local 
governments provide information to duly authorized officials of 
the INS when such information is necessary to enforce our 
nation's immigration laws. The amendment also calls for the 
Attorney General, together with the Commissioner of the INS, to 
report to Congress and the President six months after this 
legislation is enacted regarding the level of state and local 
cooperation with the INS and to identify those jurisdictions 
that have adopted policies of non-cooperation with the INS. The 
amendment prohibits those jurisdictions identified by the 
Attorney General's report from receiving Federal funds 
appropriated by this pending legislation until their non-
cooperation policy is discontinued. This amendment was adopted 
by a vote of 93-6 on November 9, 1993.
    S. 1934--Criminal Alien Control Act of 1994 (by Senator 
Roth). The legislation follows a PSI investigation and two days 
of hearings regarding the problem of criminal aliens in the 
United States. The PSI investigation found that criminal aliens 
are a serious and growing threat to public safety and are 
costing our criminal justice system hundreds of millions of 
dollars. Criminal aliens account for 25 percent of the Federal 
prison population and represent the fastest growing segment of 
that population. This legislation streamlines the deportation 
process for criminal aliens by, among other things, allowing 
State and Federal judicial deportations and by restricting 
defenses criminal aliens currently used to avoid deportation. 
The bill simplifies existing law by establishing that any alien 
who commits a felony is deportable. It also strengthens 
existing law by enhancing penalties for evading deportation and 
reentering the U.S. after being deported. S. 1934 was 
introduced on march 16, 1994 and was referred to the Senate 
Judiciary Committee. No further action was taken on this 
legislation during the 103rd Congress.
    Amendment to S. 2192--the National Defense Authorization 
Act, Fiscal Year 1995 (by Senator Nunn). In response to 
concerns raised during the subcommittee's hearing on 
International Organized Crime, about the possible involvement 
of organized criminal groups in trafficking nuclear materials, 
Senator Nunn offered an amendment to the National Defense 
Authorization Act for 1995, which provided $10 million for a 
joint DoD-FBI law enforcement training program to expand and 
improve efforts to deter the possible proliferation of weapons 
of mass destruction by crime organizations in Eastern Europe, 
the Baltic countries, and the former Soviet Union. The 
amendment was enacted into law as part of Public Law 103-337 on 
October 5, 1994.

IV. Reports, prints and studies

    U.S. Government Efforts to Combat Fraud and Abuse in the 
Insurance Industry: Third Interim Report on Enhancing Solvency, 
Regulation and Disclosure Requirements--A Case Study of 
guarantee Security Life Insurance Company (GSLIC) (Senate 
Report 103-29, March 1993).
    General Accounting Office Report to the Permanent 
Subcommittee On Investigations--Federal Prison Expansion: 
Overcrowding Reduced but Inmate Population Growth May Raise 
Issue Again (December 1993).
    General Accounting Office Report to the Permanent 
Subcommittee on Investigations--Money Laundering: U.S. Efforts 
to Fight It Are Threatened By Currency Smuggling (March 1994).
    General Accounting Office Report to the Permanent 
Subcommittee on Investigations--Blue Cross and Blue Shield: 
Experiences of Weak Plans Underscore the Role of Effective 
State Oversight (April 1994)
    General Accounting Office Report to the Permanent 
Subcommittee on Investigations--Federal Judicial Security: 
Comprehensive Risk-Based Program Should be Fully Implemented 
(July 1994)
    Report of the Department of Health and Human Services, 
Office of the Inspector General to the Permanent Subcommittee 
on Investigations--Review of Executive Compensation at Medicare 
Contractors (August 1994)
    General Accounting Office Report to the Permanent 
Subcommittee on Investigations--Medicare: HCFA's Contracting 
Authority for Processing Medicare Claims (August 1994)
    General Accounting Office Report to the Permanent 
Subcommittee on Investigations--Tax Administration: Compliance 
Measures and Audits of Large Corporations Need Improvement 
(September 1994)
    Corruption in Professional Boxing (Senate Report 103-408, 
October 7, 1994)

           subcommittee on oversight of government management

                          Chairman: Carl Levin

               Ranking Minority Member: William S. Cohen

I. Hearings

            Legislative
    1. S. 420, the Ethics in Government Reform Act of 1993, and 
S. 79, the Responsible Government Act of 1993. (March 5, 
1993)--These bills proposed changes to the post-employment 
lobbying restrictions on Members and employees of Congress and 
employees of the Executive Branch. The bills were considered at 
some length by the Subcommittee but not reported to the full 
committee. Witnesses: The Honorable David L. Boren, U.S. 
Senator from the State of Oklahoma; The Honorable John McCain, 
U.S. Senator from the State of Arizona; The Honorable Dennis 
DeConcini, U.S. Senator from the State of Arizona; Gary Davis, 
General Counsel, Office of Government Ethics; Alexander B. 
Trowbridge, President, Trowbridge Partners, Inc. on behalf of 
the Council for Excellence in Government; Charles Lewis, 
Chairman and Executive Director, The Center for Public 
Integrity; Fred Wertheimer, President, Common Cause; William N. 
Eskridge, Jr., Professor of Constitutional Law and Legislation, 
Georgetown University Law School; and Robert S. Peck, 
Legislative Counsel, American Civil Liberties Union.
    2. S. 885, to Modify Congressional Restrictions on Gifts. 
(July 19, 1993)--This hearing looked at a legislative proposal 
to establish a uniform gift rule for the House and Senate. The 
Subcommittee reported a separate bill which was passed by the 
full committee and the Senate. Similar legislation was passed 
by the House, and a conference report was passed by the House 
but did not pass the Senate. Witnesses: The Honorable Frank 
Lautenberg, U.S. Senator from the State of New Jersey; The 
Honorable Paul Wellstone, U.S. Senator from the State of 
Minnesota; former U.S. Senator Birch Bayh; former U.S. 
Congressman Frank J. Horton; Stephen D. Potts, Director, Office 
of Government Ethics; and Joan Claybrook, President, Public 
Citizen.
    3. S. 1413, Reauthorization of the Office of Government 
Ethics. (April 20, 1994)--The Subcommittee heard testimony from 
the Director of the Office of Government Ethics in support of 
reauthorizing the office. The bill was reported by the 
subcommittee to the full committee and passed by the Senate. It 
was not passed by the House. Witnesses: The Honorable Stephen 
D. Potts, Director, Office of Government Ethics; Jan Ley, 
Deputy General Counsel; and Jack Covaleski, Associate Director 
for Program Assistance and Review.
            Oversight
    1. Will Jobs Be America's Biggest Export under NAFTA? 
(April 1, 1993)--This hearing reviewed the data available to 
predict the employment effects of ratification of NAFTA. 
Witnesses: Tom Fairfax, former broker and ``Shelter Operator,'' 
Rancho Santa Margarita, CA; Jerry Lundy, Dowagiac, Michigan, 
former employee of Modine Heat Transfer; Scarlet Bachmann, 
Dowagiac, Michigan, former employee of Modine Heat Transfer; 
Doug Fenton, Kokomo, IN, former employee of United Technologies 
Automotive; and Harry Browne, Research Associate, The Inter-
Hemispheric Education Resource Center.
    2. Oversight of Federal Trade Data: What We Don't Know 
Could Hurt Us. (April 28, 1993)--This hearing was a 
continuation of the subcommittee's investigation into the data 
available to predict the employment effects of ratification of 
NAFTA. Witnesses: Kevin L. Kearns, President, United States 
Business and Industrial Council; Steve Beckman, International 
Economist, United Auto Workers; Charles A. Waite, Associate 
Director for Economic Programs, Bureau of the Census, U.S. 
Department of Commerce; Allan I. Mendelowitz, Director, 
International Trade, Finance, and Competitiveness Issues, 
General Government Division, GAO; Jeffrey Schott, Senior 
Fellow, Institute for International Economics; Thomas J. 
Plewes, Associate Commissioner, Office of Employment and 
Unemployment Statistics, Bureau of Labor Statistics, U.S. 
Department of Labor; and Fred Goff, Director, The Data Center, 
Oakland, CA.
    3. Oversight of Federal Property Management. (July 27, 
1993)--This hearing was held at the request of Ranking 
Republican, Senator Cohen. The subcommittee reviewed the 
management practices of GSA in purchasing and leasing space for 
Federal agencies. Witnesses: The Honorable Howard M. 
Metzenbaum, U.S. Senator from the State of Ohio; Michael E. 
Motley, Associate Director, Government Business Operations 
Issues, GAO; Sherri Wasserman Goodman, Deputy Under Secretary 
of Defense for Environmental Security, DOD; David L. Bibb, 
Assistant Commissioner, Office of Facility Planning, GSA; 
Lester M. Hunkele, III, Deputy Assistant Secretary for 
Facilities Oversight, Department of Veterans Affairs; Dr. 
Michael Sumichrast, Publisher and Editor, ``Real Estate 
Perspectives,'' Sumichrast Publications; Dr. Paul C. Taylor, 
Vice President for Public Affairs, NAIOP, The Association for 
Commercial Real Estate, accompanied by Dr. Hayden B. Bryan, 
former Executive Director, Base Closure Commission (1988); and 
Thomas B. McChesney, President, Building Owners and Managers 
Association International.
    4. Off-Loading: The Multi-Million Dollar Loophole in 
Government Contracting. (July 30, 1993)--This hearing was the 
result of an extensive investigation by the Subcommittee into a 
governmentwide practice to avoid competition in contracting. 
Witnesses: Derek J. Vander Schaaf, Acting Inspector General, 
DOD; John C. Layton, Inspector General, DOE; William I. Hinshaw 
II, Inspector General, TVA; Admiral Eugene B. Harshbarger, 
Deputy for Acquisition Policy, Integrity and Accountability, 
Department of the Navy; Norman A. Zigrossi, President Resource 
Group, Tennessee Valley Authority; Joseph R. Varady, Jr., 
Director for Procurement Policy, Department of the Army; 
Brigadier General Robert W. Drewes, Deputy Assistant Secretary 
of the Air Force for Contracting, Department of the Air Force; 
and Colleen A. Preston, Deputy Under Secretary of Defense for 
Acquisition Reform, DOD.
    5. Oversight of the FDIC: Are Investors Cashing in on FDIC 
Mismanagement? (November 9, 1993)--This hearing was held at the 
request of Ranking Republican, Senator Cohen. The Subcommittee 
looked at how the Federal Deposit Insurance Corporation (FDIC) 
was managing the resale of properties under its control. 
Witnesses: The Honorable Mark Johnston, Mayor, City of Saco, 
ME; Douglas Hess, Sole Proprietor, Doug Hess Investments, 
Tyler, MN; Daniel Masucci, Liquidation Assistant, FDIC, Irvine, 
CA; Ramon Hernandez, Liquidation Review Specialist, FDIC, 
Chicago, IL; Howard G. Rhile, Director, Accounting and 
Information Management Division, GAO; and John F. Bovenzi, 
Director, Division of Depositor and Asset Services, FDIC.
    6. Oversight of U.S.-Japan Auto Parts Framework 
Negotiations: What's Needed to Get Results. (February 3, 
1994)--The Subcommittee held this hearing to review the 
progress and the U.S. position in trade negotiations with Japan 
on auto parts. Witnesses: Jeffrey E. Garten, Under Secretary 
for International Trade Administration, U.S. Department of 
Commerce; Robert E. Cole, Vice President, Government Affairs, 
Kaiser Aluminum and Chemical Corporation and Chairman, Annual 
Report Task Force; Michael S. Flynn, Associate Director, Office 
for the Study of Automotive Transportation, Transportation 
Research Institute, University of Michigan; and Andrew H. Card, 
Jr., President and CEO, American Automobile Manufacturers 
Association, and Former Secretary, U.S. Department of 
Transportation.
    7. Oversight of EPA's Implementation of the Nonattainment 
Provisions of the Clean Air Act in Lake Michigan Region. (July 
25, 1994)--The subcommittee reviewed EPA's actions with respect 
to regulatory burdens placed on communities which do not 
generate their air quality problem. Witnesses. Mary Nichols, 
Assistant Administrator for Air and Radiation, EPA; and Steve 
Gerritson, Executive Director, Lake Michigan Air Directors 
Consortium.
    8. Navy's Mismanagement of the Sealift Tanker Program. 
(October 12, 1994)--This hearing was the result of an extensive 
investigation by the Subcommittee and GAO of mismanagement by 
the Military Sealift Command of 9 oil tankers. Witnesses: 
Richard C. Steiner, Director, Office of Special Investigations, 
GAO; Captain Gordon D. Marsh, Chief, Marine Technical & 
Hazardous Materials Division, Coast Guard Headquarters; Vice 
Admiral Philip M. Quast, Commander, U.S. Military Sealift 
Command; and Robert G. Wellner, President and Chairman of the 
Board, International Marine Carriers, Inc.

II. Miscellaneous bills

    S. 24: The ``Independent Counsel Reauthorization Act of 
1993'' which would reauthorize the independent counsel law for 
an additional 5 years. This bill was considered and reported by 
the subcommittee. It was reported by the full committee, passed 
by the Senate and enacted into law on June 30, 1994 (P.L. 103-
270).
    The Lobbying Registration Act. This bill was considered and 
reported by the subcommittee. It was reported by the full 
committee, passed by the Senate, passed by the House, and sent 
to conference. The conference report was passed by the House 
but not approved by the Senate.
    S. 2156: The Reports Elimination Act. This bill--which 
would have eliminated some 300 statutorily required reports to 
Congress--was considered and reported by the subcommittee. It 
was reported by the full committee but not passed by the 
Senate.
    S. 1587: Acquisition Reform. Subcommittee staff contributed 
a significant amount of time and effort to the passage of this 
legislation.

III. Reports

    The Subcommittee issued five reports as a result of its 
investigations and hearings. Three reports, Reauthorization of 
the Office of Government Ethics (S. Rept. 103-315), 
Congressional Gifts Reform Act (S. Rept. 103-255), and the 
Reports Elimination Act (S. Rept. 103-375) were legislative 
reports.
    One report, following the Subcommittee's hearing on off-
loading abuses, was an oversight report containing findings and 
recommendations (Off-Loading: The Abuse of Inter-Agency 
Contracting to Avoid Competition and Oversight Requirement (S. 
Prt. 103-61)).
    One report, a compilation of Federal ethics laws, was 
issued to provide a readily accessible document of ethics laws 
for Federal employees and the public (Compilation of Federal 
Ethics Laws (S. Prt. 103-25)).
    The subcommittee worked closely with GAO on numerous 
reports concerning DOD inventory, DOD procurement, management 
of the Postal Service, residential schools for disadvantaged 
children, management of FFRDC's, and commercial practices of 
the private sector.

IV. Other efforts

    The subcommittee worked extensively on the role of the 
Financial Accounting Standards Board in establishing new 
accounting standards for public corporations with respect to 
stock options. Staff members worked on legislation which was 
enacted into law that would eliminate bonuses for Presidential 
appointees in the period shortly before and shortly after a 
Presidential election. The Subcommittee also reviewed the 
management of the Anti-Deficiency Act in the Department of 
Defense.
         subcommittee on regulation and government information

                     Chairman: Joseph I. Lieberman

                 Ranking Minority Member: Thad Cochran

I. Legislation

    EBT Regulatory Relief Act, S. 2511: Introduced at the end 
of the second session, this bill exempts EBT cards from 
regulation E of the Electronic Funds Transfer Act when used for 
means tested benefits. The bill was introduced to facilitate 
discussions of the issue between Congresses.
    Poverty Cost of Living Adjustment, S. 1412: Introduced in 
the first session in response to Rep. Sawyer's (D-OH) bill to 
authorize biannual poverty estimates for school districts, this 
bill requires those estimates to be adjusted for state-to-state 
differences in the cost of living; The bill did not pass, but 
was effective in blocking the requirement that biannual data be 
used to distribute funds under Chapter 1 of the Elementary and 
Secondary Education Act.
    Address List Improvement Act, H.R. 5084: Passed at the end 
of the 103rd Congress, this bill amends Title 13 to allow the 
Census Bureau to share the census address list with designated 
officials in State and local governments. Strongly supported by 
state and local governments, this act should reduce the 
friction between governments over the correctness of the next 
census.
    Medicare Data Bank Penalty Delay, S. 1719: Introduced in 
the first session, this bill would have delayed any penalties 
arising from employer noncompliance with the Medicare Data 
Bank. While this bill did not pass, the Senate Appropriations 
Subcommittee included language provided by Senator Lieberman, 
instructing HHS not to implement the data bank. The Conference 
Report carried similar language, and HHS has announced that it 
will not implement the data bank in 1995.
    NHPRC Reauthorization: Introduced and passed in the first 
session, this act reauthorized NHPRC for the period FY 1994 to 
FY 1998 at $5 million, $6 million, $8 million, $8 million and 
$10 million respectively.
    Mainstream Information Package: In conjunction with staff 
for Senators Bond and Moynihan, Subcommittee staff developed 
the titles of health care reform legislation devoted to 
administrative simplification and privacy. These titles 
provided the authority for setting standards of communication 
for all third party (non doctor-patient) communication, and at 
the same time provide tremendous cost savings for all involved. 
At the same time, care is taken to protect patient privacy 
while at the same time providing the necessary access for 
financial transactions and research.
    Video Game Rating Act, S. 1823: Senator Lieberman 
introduced the Video Game Rating Act that would have 
established an independent commission to rate video games based 
on the level of violence, sexual material or offensive 
language. This legislation would have enabled parents to 
determine which games are appropriate for their children. The 
bill was referred to the Commerce Committee. In the interim, 
the video game industry, prompted by hearings jointly chaired 
by Senators Lieberman and Kohl in the Subcommittee on 
Regulation and Government Information and the Subcommittee on 
Juvenile Justice and the legislation, devised a voluntary 
rating system.
    Biomaterials Access Assurance Act, S. 2215: Introduced at 
the end of the second session, following the Subcommittee's May 
20, 1994 hearing on the health crisis resulting from the 
possibility that raw materials and components could be 
unavailable for use in manufacturing medical devices, this bill 
would limit the tort liability of raw material and component 
suppliers under certain conditions. The bill was referred to 
the Commerce Committee.
II. Legislation

    Contracting Problems at the RTC: HomeFed.--On February 19, 
1993, Senator Lieberman chaired a Subcommittee hearing that 
exposed extreme cost overruns on the RTC's Management and 
Continuity Contracts with Price Waterhouse. Testifying were 
John J. Adair, Inspector General of the Resolution Trust 
Corporation (``RTC''); Albert V. Casey, President and Chief 
Executive Officer, RTC; William H. Roelle, Senior Vice 
President and Chief Financial Officer, RTC. According to the 
testimony, Price Waterhouse charges amounted to 67 cents per 
page for photocopying and related document handling. The 
hearing led to reductions in charges to the RTC of $6.9-$9.6 
million, and substantial tightening of contracting activities 
by the RTC.
    Adequacy of HCFA Information Systems.--On April 2, 1993, 
Senator Lieberman chaired a Subcommittee hearing to examine the 
ability of the Health Care Financing Administration to solve 
the problem of identifying cases where Medicare should be the 
secondary payer. Testifying were Leslie Aronovitz, GAO; Carol 
Walton, HCFA; James Michner, The Travelers Companies; and Linda 
Ryan, New York Department of Health. Ms. Aronovitz outlined the 
magnitude of the problem and the need for a system that 
identifies payer status when a claim is filed. Ms. Walton 
explained that current efforts only identify payer status three 
to ten years after the claim has been processed. Mr. Michner 
described the burden the current system places on insurance 
companies and indicated that The Travelers was willing to work 
with HCFA to craft a better solution. Ms. Ryan described just 
such a better solution currently being tested in New York. Her 
project links payers and payees electronically, and could 
include a system that identified Medicare primary and secondary 
payers. Senator Lieberman urged HCFA to explore solutions like 
those being demonstrated in New York.
    Public Papers of Supreme Court Justices: Assuring 
Preservation and Access.--On June 11, 1993, Senator Lieberman 
chaired a Subcommittee hearing to examine the controversy 
created when the Library of Congress opened the collection of 
papers from the estate of Thurgood Marshall a year after his 
death. Most sitting Justices were concerned that providing 
access to the internal documents of the Court on recent cases 
would complicate their ability to fulfill their 
responsibilities. Testifying were The Honorable James 
Billington, Librarian of Congress; Mr. E. Barrett Prettyman, 
Jr., Attorney; Mr. Dennis Hutchinson, Editor of The Supreme 
Court Review; Ms. Anne Kenney, President, Society of American 
Archivists; and Ms. Jane Kirtley, Executive Director of The 
Reporters Committee for Freedom of the Press. judicial papers 
are the private property of the Justices, and it was clear from 
the testimony at this hearing that without making them Federal 
property, there was little that could be done to control 
access. Senator Lieberman urged the Supreme Court to issue 
guidance for the disposition of and access to Judicial records.
    At-Home Business Opportunity Scams.--On July 28, 1993, 
Senator Lieberman chaired a Subcommittee hearing exploring the 
growth in at-home business opportunity scams. Like other types 
of advance fee scams, victims are required to send money in 
advance, but return little or none of the promised goods or 
services. Since the scam artists are usually located out of 
state and the amounts at issue are relatively small, victims 
rarely receive refunds and prosecutions are difficult. James 
McIlhenny, President of the Better Business Bureaus, Inc. 
testified that these scams have multiplied in recent years as 
people seek to supplement their income. He said people who are 
at home either because they are unemployed or are taking care 
of children are frequent targets of these scam artists. 
Kimberly Cole and George Matthews of Hurlock, Maryland, and 
Bernard Rooney of Arlington, Virginia, victims of scams, 
testified about their experiences. Richard Barton, Senior Vice 
President for Governmental Affairs, Direct Marketing 
Association, explained what industry was doing to battle these 
scam artists. Alvin Lamden, Manager of Fraud and Prohibited 
Mailings, U.S. Postal Inspection Service, testified about 
enforcement efforts, successes and problems.
    International Consumer Fraud: Can Consumers Be Protected?--
On October 15, 1993, Senator Lieberman chaired a Subcommittee 
hearing to examine the recent increase in consumer fraud 
practiced across international borders. Testifying were Jinni 
Anderson of Gilford, CT; Mr. John Barker, Director of the 
National Fraud Information Center; Mr. Lawrence Urgenson, 
Acting Deputy Assistant Attorney General; Ms. Christian White, 
Acting Director of the Federal Trade Commission Bureau of 
Consumer Protection; Mr. Fred Verinder of the Federal Bureau of 
Investigation; and Mr. Michael Stenger of the U.S. Secret 
Service. Ms. Anderson and her husband were defrauded of 
thousands of dollars by a company operating out of Canada. All 
agreed that more stringent enforcement was needed in this area, 
but both the FBI and the Secret Service pointed out that 
because of the complications of negotiating international 
agreements, progress in this area is slow.
    Reinventing Government: Using New Technology to Improve 
Services and Cut Costs.--On December 2, 1993, Senator Lieberman 
chaired a Subcommittee hearing to examine the ways that 
information technology could be used to improve government 
services. The OTA report ``Making Government Work'' was 
released concurrent with this hearing. Testifying were The 
Honorable Sally Katzen, Administrator of the Office of 
Information and Regulatory Affairs; Mr. Fred Wood, Office of 
Technology Assessment; Mr. Elliot Gerson, The Travelers 
Companies; Mr. David Truax, Maryland Department of Human 
Resources; The Honorable Carmen Nazario, Secretary of Health 
and Social Services in Delaware; and H.W. Porterfield of 
Consulting Resources Inc. Ms. Katzen reported on the Vice 
President's National Information Infrastructure Initiative 
which is designed to improve the use of information technology 
within the Government. Mr. Wood summarized the OTA report which 
encouraged the Administration's efforts and described some of 
the pitfalls that could beset that effort. Mr. Truax described 
the Maryland experiment with delivering Food Stamps and Aid to 
Families with Dependent Children through ATM-like cards. This 
``electronic benefits transfer'' (EBT) system is the only one 
in the country being used statewide. Ms. Nazario described the 
system of ``one-stop shopping'' for social services in 
Delaware. Both public and private support services are housed 
in a single location to facilitate citizen access. Mr. 
Porterfield described a project his company was working on 
under contract with EPA to put environmental regulations on-
line for individual and business access.
    Violent Video Games: What Parents Need to Know.--On 
December 9, 1993, Senator Lieberman chaired a hearing, held in 
conjunction with Senator Kohl's Judiciary Subcommittee on 
Juvenile Justice, to explore the need to rate video games so 
that parents would know what they were buying for their 
children. Representatives of parents, teachers, as well as 
academic and other experts testified about the link between 
violence depicted in media and actual violence among youth. 
They were Dr. Parker Page of the Children's Television Resource 
and Education Center; Professor Eugene Povenzo of the 
University of Miami; Mr. Robert Chase, National Education 
Association; Ms. Marilyn Droz of the National Coalition on 
Television Violence. Representatives of industry, including 
Howard Lincoln, Nintendo of America; Mr. Bill White, Sega of 
America; Ms. Ilene Rosenthal, General Counsel, Software 
Publishers Association; Ms. Dawn Weiner, Video Software Dealers 
Association; and Mr. Craig Johnson, Past-President, Amusement 
and Music Operators Association, committed to working together 
to create a credible rating system in time for the 1994 holiday 
season.
    Video Game Violence and Establishing a Video Game Rating 
System.--On March 4, 1994, Senator Lieberman chaired a second 
joint Subcommittee hearing with Senator Kohl on the preliminary 
outline of a rating system offered by the video game industry. 
Responding to standards for the rating system set down by 
Senator Lieberman in a letter sent two weeks after the first 
hearing, industry leaders discussed how the system would be 
structured so that its independence and credibility is assured. 
Representatives of major video game retailers, including Toys-
R-Us and Walmart, voice support for the industry's rating 
effort and a commitment to work with the system once it is in 
place. Testifying at the hearing were Congressman Tom Lantos; 
Jack Heistand, Senior Vice President for Electronic Arts on 
behalf of the Interactive Entertainment Industry Rating 
Commission; Mary Evan, Vice President of Store Operations, 
Babbages; Chuck Kerby, Divisional Merchandise Manager, Wal-
Mart; Steve Loenigsberg, President, American Amusement Machine 
Association; R.A. Green, III, Amusements & Music Operator 
Association.
    Health Care Information: Collection and Privacy.--On May 6, 
1994, Senator Lieberman chaired a Governmental Affairs 
Committee hearing to examine the needs and benefits of 
collecting information on health care, and the importance of 
protecting the privacy of that information. Testifying were The 
Honorable Sally Katzen, Administrator, Office of Information 
and Regulatory Affairs; The Honorable Nan Hunter, Department of 
Health and Human Service; Leslie Aronovitz, Associate Director, 
Health Finance and Policy, General Accounting Office; Joel 
Gimpel, Blue Cross/Blue Shield Association; Lois Gargotto, 
Director of Systems Development, HUMANA, Inc.; Carolyn Kelley, 
Director, Government and Public Affairs, American Payroll 
Association; Donald T. Lewers, American Medical Association; 
Janlori Goldman, Director, Technology and Law Project, American 
Civil Liberties Union.
    Crisis in the Availability of Life-Saving Medical 
Devices.--On May 20, 1994, Senator Lieberman chaired a 
Subcommittee hearing to examine the threat that raw materials 
and component parts could become unavailable for use in 
manufacturing implantable medical devices, and the potential 
public health consequences if that occurs. Witnesses included 
representatives of medical device companies, raw material 
companies, physicians, patients and consumer advocacy groups. 
They were Paul Citron, Vice President, Medtronic, Inc.; Eleanor 
Gackstatter, President and Chief Operating Officer, Meadox 
Medicals, Inc.; Katherine F. Knox, Business Program Manager, 
DuPont Company; James S. Benson, Senior Vice President, 
Technology and Regulatory Affairs; Mark Reilly, Houston, Texas; 
Peggy Phillips, Falls Church, Va.; J. Donald Hall, Chair, 
Department of Cardiovascular Surgery, California Pacific 
Medical Center; Bernard N. Stulberg, Cleveland Center for Joint 
Reconstruction, on behalf of the American Academy of Orthopedic 
Surgery; Pierre Galletti, University Professor and Professor of 
Medical Science, Brown University, and President, American 
Institute for Medical and Biological Engineering; M. Kristen 
Rand, Counsel, Consumers Union.
    Progress Report: Rating Video Games.--On July 29, 1994, 
Senator Lieberman chaired the third joint video game hearing 
with Senator Kohl addressing the rating categories proposed by 
the industry. An industry representative detailed how the 
proposed rating system would comply with the standards outlined 
by Senator Lieberman after the first hearing. A representative 
of software publishers described a proposed rating system for 
personal computer games. Arcade operators stated their 
intention to establish an appropriate system for providing 
information about a games content in the coin-operated game 
context. The industry rating system is now operational. The 
witnesses who testified were: Steve Koeningsberg, American 
Amusement Machine Association; Chuck Kerby, Wal-Mart; Jack 
Heistand, Chairman, Interactive Digital Software Association; 
Mark Traphagen, Counsel, Software Publishers Association; 
Robert Clarke, V.P., National Education Association, Mary Ellen 
R. Fise, Consumer Federation of America.
    Caveat Inventor: Deceptive Invention Marketing Scams.--On 
September 2, 1994, Senator Lieberman chaired a hearing of the 
Subcommittee to uncover techniques used by some unethical 
businesses to rope thousands of inventors into spending 
significant amounts for worthless services involving the 
promotion of their inventions. The Subcommittee subpoenaed 
testimony from one former salesperson who described the inner 
workings of invention promotion mills. One of the salesman's 
victims recounted how she was targeted and drawn into the scam. 
Representatives of Federal and State law enforcement agencies 
testified as to their current efforts to curb these rip-offs. 
Witnesses were: Lorraine E. Leiner, inventor; Kenneth Rogers, 
former Invention Marketing Salesman; Robert Lougher, President, 
Inventors Awareness Group; Dr. Gerald Udell, Director Center 
for Business and Economic Development, Southern Missouri State 
University; Phoebe Morse, Regional Director, Boston Regional 
Office, Federal Trade Commission; Mr. Michael Kirk, Deputy 
Commissioner of Patents and Trademarks; Robert Litt, Deputy 
Assistant Attorney General, Department of Justice; James 
Mallett, Office of Consumer Protection of the New Jersey 
Attorney General; Ms. Margaret M. Leonard, District of Columbia 
Department of Consumer and Regulatory Affairs.

                  task force on waste, fraud and abuse

                       Chairman: Byron L. Dorgan

I. Background

    The government Waste Project was created on March 11, 1993 
by Chairman Glenn to identify and document areas of wasteful 
government spending and to set forth an agenda to eliminate 
waste in many Federal programs.
    In a joint news release at that time, Chairman Glenn said 
in announcing the project ``We are fortunate to have Senator 
Byron Dorgan as a new member of this Committee, particularly 
because of his experience in the House of Representatives, 
where he did a superb job as head of a Democratic Task Force on 
Government Waste. With that background to draw on, I'm looking 
forward to working closely with Senator Dorgan.''
    The agenda included a select series of ongoing projects to 
heighten awareness of waste in the Legislative, Judicial, and 
Executive branches of government. The project focused on 
wasteful overhead, costly management failures, unnecessary 
duplication, and related problems.
    The goal was to highlight ways the government could improve 
its business practices. For example, hearings on topics such as 
the Buildings Moratorium Bill and the $10 Billion Courthouse 
Construction program, as well as progress on the implementation 
of the Interstate Identification Index (III) shone the 
congressional spotlight on waste problems.
    Additionally, in consultation with Chairman Glenn, the task 
force sought to work with Vice President Gore to further the 
goals and recommendations of the National Performance Review. 
The task force pursued efforts that were analogous to OMB and 
GSA efforts (i.e., overhead and Federal property management 
reform issues).

II. Hearings and investigations

            1. Are We Overbuilding? May 4, 1994
    The prime focus of this hearing was the government's 
civilian building program, specifically the abnormally high 
cost of Federal courthouse construction. On the first panel, a 
senior Federal judge exposed a range of excess costs in the 
Federal courts system. For example, the judge testified: ``I 
think we would have much more credibility with the Congress if 
we would get our own house in order and stop wasting money.''
    The second and third panels, respectively, evaluated the 
status of two reports which further reinforce why court costs 
are excessive. The first report was by the General Accounting 
Office--Federal Judiciary Space, Long Range Planning Process 
Needs Revision, GAO/GGD-93-132, September 1993--and dealt with 
just the long-range planning process. It showed that the cost 
of this overestimation was $112 million per year, or more than 
$1.1 billion for the 10-year planning period. GAO experts 
outlined three major flaws in the courts' long-range planning 
process and reviewed the results of GAO's recommendations for 
improved planning.
    Other significant waste-related issues were addressed in 
the second report--Report of Independent Courts Building 
Program, December 1993--by a blue ribbon panel of experts in 
judicial design and construction, including: the Administrative 
Office of the Courts (AOC) design guide, needs prioritization, 
the one judge/one courtroom principle, and other issues unique 
to the courts that contribute to high courthouse construction 
costs.
    As a result of Committee efforts, the GSA has reviewed 
nearly 200 major projects; identified $1.34 billion of savings, 
including $310 million in court projects, and
          Established a system of benchmarks for cost 
        comparison based on private sector cost methods; 
        refined system and reduced benchmarks 5% after 
        professional studies of court projects in Alexandria, 
        VA and Shreveport, LA;
          Created a method to apply benchmark analysis to 
        individual projects to account for differential cost 
        resulting from geographic location, type of 
        construction and date contract award;
          Changed budgeting/estimating philosophy from 
        ``comfortable budget syndrome'' to ``spend not $1 more 
        than necessary to meet the court's functional needs in 
        a well-designed facility'';
          Convened an independent panel of private sector 
        architects, engineers and contractors to review court 
        programs and identify solutions to problems; a joint 
        task group of GSA and AOC prepared an implementation 
        plan adopting 20 of the 22 recommendations of the 
        independent panel; eight of the most critical have 
        already been substantially implemented or are underway;
          Established a Courthouse Management Group to create a 
        single point of responsibility for program efficiency 
        and cost effectiveness. A national program office will 
        be responsible for long-range planning, oversight/input 
        into project development plan, involvement in site 
        selection and review of any requests to change agreed-
        upon scope of project; will coordinate project manager 
        skill assessment and training; will become functional 
        in January in conjunction with reorganization of 
        overall real estate operations, and;
          Reached agreement with AOC on necessity of rolling 5-
        year plan which prioritized projects; AOC has completed 
        first draft.
            2. Accountability and Management of Department of Defense 
                    Facilities Requirements--June 7, 1994
    This was the second of five scheduled hearings on issues 
that contribute to government waste. This hearing addressed the 
waste of taxpayer dollars due to the lack of efficiency and 
accountability within the government's military construction 
and building program.
    Following are specific examples of real and potential waste 
examined by the Committee.

                     Naval Undersea Warfare Center

    In July 1993, a ribbon-cutting ceremony took place to mark 
the opening of the $27 million custom-designed Naval Undersea 
Warfare Center (NUWC) Detachment in Norfolk, VA. Even before 
the ribbon-cutting ceremony took place, the decision had 
already been made by the Base Realignment and Closure 
Commission (BRAC)--at the Navy's recommendation--to relocate 
the facility to Newport, Rhode Island. As a result the Navy 
incurred approximately $30.6 million in unnecessary costs.
    In its report, NAVY LABORATORIES, Issues Concerning the 
Naval Undersea Warfare Center's Suffolk Facility, GAO/T-NSIAD-
94-211, the GAO established a timeline with corroborating 
documentation proving that the Navy knew as early as 1990 that 
their requirements for the building had diminished by more than 
half. The Navy's original 1987 requirement for a 278,000 sq. 
ft. facility kept changing due to an old requirement for a 
changing requirement due to the end of Cold War. This 
requirement was reduced due to some units finding other 
quarters prior to the construction of the building, thus 
reducing the space requirements even more. By 1990 the space 
requirement dropped from 278,000 to 175,000 sq. ft. and from 
1000 to 500 employees.
    Because the Navy used the build to lease method to have the 
NUWC constructed, the Committee found that even after the move 
is completed, the government will continue to incur rental 
costs of approximately $4 million per year for the length of 
the NUWC lease, which could run as long as 20 years.

            Army construction of new office space for 30,000

    The Committee investigated the Army's plan to develop new 
office space at the 820-acre Engineer Proving Ground (EPG) in 
Fairfax County, VA to consolidate 30,000 Army employees 
currently in leased space throughout the metro Washington area. 
Army planners claimed that the proposed project will not cost 
the taxpayer anything, because they will trade Army-owned land 
to private developers in exchange for no cost construction of 
office buildings. Army planned to solicit development contracts 
in five stages and require the successful bidder in each stage 
to be responsible for hundreds of millions of dollars in 
infrastructure improvements. Army claimed a projected savings 
of $54 million annually in lease payments by consolidating Army 
components currently housed in approximately 12 locations in 
the Washington metropolitan area.
    An independent report prepared by TAI Realty Consultants of 
McLean, VA for the Fairfax County Office of Comprehensive 
Planning and released in October of 1993 found that ``the EPG 
development program, as originally envisioned, is simply not 
feasible.'' In addition, the report listed the following 
conclusions regarding the feasibility of the Army's development 
program: ``Our interpretation of current market conditions, and 
our forecast of future real estate market conditions, lead us 
to conclude that site, by itself, represents insufficient value 
to provide for required infrastructure improvements and for the 
Army's required 2.9 million gross square feet of office space. 
Market conditions have changed dramatically since the time the 
market analysis, that forms the basis of the Army's development 
program, was completed.''
    The Army Audit Agency released it's report, SR 95-753--
Development of Engineer Proving Ground Fort Belvoir, VA.
    The Committee made the following findings:
          The Army's plan to obtain 2.9 million gross square 
        feet of office space in exchange for development rights 
        on the Engineer Proving Ground was overly optimistic 
        and not financially feasible. Requirements in the draft 
        request for proposal weren't clear enough to make sure 
        the Army selects the developer that can provide the 
        best value.
          The Army's requirement for 2.9 million gross square 
        feet of office space was overstated. Procedures for 
        keeping potential tenants up to date were generally 
        adequate, but procedures for identifying potential 
        tenants needed improvement.
          The Program Manager didn't maintain adequate 
        documentation to support cost analyses. Because 
        adequate documentation wasn't maintained, the Committee 
        was unable to determine if documentation was accurately 
        prepared.
          Procedures for identifying the information mission 
        area infrastructure were generally adequate.
          The program offices didn't have adequate 
        documentation to supports its market projections. The 
        Committee was unable to determine if the projections 
        were reasonable.
          Procedures for ensuring the Army receives fair market 
        value for its property were properly documented and 
        reasonable. However, it is not possible to determine 
        how effective they are until they are implemented.
    Subsequently, during the December 1993 in-process review, 
the Acting Assistant Secretary of the Army (Installations, 
Logistics and Environment) made two major decisions that 
significantly affected the development plan. The Army wouldn't 
execute a residual value lease agreement to reimburse the 
developer, and it couldn't guarantee that DOD activities would 
lease 1.15 million square feet of commercial office space. 
These changes had a potentially significant impact on the 
financial feasibility of the development. Cost estimates showed 
that the potential estimated value of Army office space and 
infrastructure exceeded the estimated value of the land by 
about $176 million.

           Overall failures in military facilities management

    Three projects illustrate a lack of adequate controls 
throughout the DOD to ensure that new construction projects and 
collateral equipment are justified and needed, especially at 
bases that may be recommended for closure; the Family Housing 
at Naval Station, New York; the battleship support projects at 
Pearl Harbor; and Fitzsimons Army Medical Center, Denver. As a 
result of this poor planning and failure to heed early warning 
concerns, the Committee found that the Federal government is 
wasting hundreds of millions of dollars in unneeded and 
unnecessary construction projects. The Committee also found 
that components of DOD routinely have ignored the 
recommendations of the DOD Inspector General (IG) or their in-
house audit commands with respect to redefining or cancelling 
military construction projects.
    Between 1988 and 1993, the military spent more than $1.1 
billion for construction at bases that were later recommended 
for closure by the Base Realignment and Closure Commission 
(BRAC). While there is no way to determine exactly how much of 
the $1.1 billion may have been wasted, the Committee has 
established that by cancelling 783 housing units at New York 
and eliminating six projects in support of battleships in 
Hawaii, the government would have saved as much as $305 
million. This highlighted the lack of a clear mechanism to 
coordinate between operating commands and their construction 
requirements and the DOD planners preparing closure 
recommendations for the BRAC.
    Much of this waste was traced to the Navy's ``Homeporting'' 
program which began in 1982 to alleviate overcrowding in 
existing ports and to accommodate expansion of the Fleet toward 
a 600-ship goal. The program, which was a failure, is no longer 
in effect however, its residual effects are still evident. The 
acting DOD IG told the Committee that as much as $7 billion of 
the $8 billion program cost was wasted.
            3. Criminal Debt Collection--June 28, 1994
    On June 28, 1994 the Committee on Governmental Affairs, 
conducted a hearing on the economy, efficiency and 
effectiveness of Federal criminal and restitution debt 
collection. The following issues were reviewed: low collection 
rates of outstanding debt; the National Fine Center (NFC) which 
had yet to become operational after five years despite $19 
million in start-up funds; law enforcement utilization of the 
Seized and Forfeiture Statutes impact on a convicted felons 
ability to pay court ordered fines and/or restitution; and who 
has specific oversight responsibility, the Department of 
Justice (DOJ) or the Administrative Office of the Courts 
(USAOC), thus creating the problem of accountability.
    The GAO believes that the government's systems for 
imposing, collecting, enforcing, and accounting for criminal 
debt deserves scrutiny. The GAO presented an update to their 
earlier report of August 1993 on the NFC entitled 
``Expectations High, But Development Behind Schedule.''
    In their testimony, the GAO told the Committee that 
outstanding criminal debt grew from $0.3 billion to $3.6 
billion between fiscal years 1985 and 1993. But because of 
severe data limitations and other factors, it is extremely 
difficult to assess how effectively Federal agencies collect 
criminal debts or how much of the outstanding debt is 
realistically collectible.
    The GAO further testified that the most important step to 
enhance debt collection efforts would be for the USAOC to make 
the NFC fully operational. The USAOC now is developing a new 
two part implementation plan and expects that the first phase 
of the NFC will be operational nationwide by September 1, 1996, 
almost nine years after legislation creating the NFC was 
enacted.
    The GAO also testified regarding financial institution 
fraud. In 1992, the GAO found that the perpetrators of the 
nation's savings and loan fiasco and other financial 
institution fraud had paid only about four cents on every 
dollar of fines, restitution and other payments they owe the 
American taxpayers. Recent statistics collected by Federal law 
enforcement officials suggest that the Federal government's 
dismal record in this area remains unchanged. The GAO testified 
that of the top 50 pending criminal debts (i.e., fines and 
restitution orders) owed to the Federal government less than 1 
percent has been collected.
            4. Drug Pricing: Poor prescription for consumers and 
                    taxpayers?--July 28, 1994
    The Committee found that U.S. consumers and taxpayers are 
paying more than their fair share for prescription drugs. This 
hearing examined the differences in international pricing 
policies of prescription drug manufacturers. The Committee 
examined the scope of price differences, as well as the reasons 
behind them.
    The Committee heard testimony from the General Accounting 
Office, individuals with expertise in international drug 
pricing, representatives of the prescription drug manufacturing 
industry, and Americans who have been affected by the high cost 
of prescription drugs.
    The Committee found that Americans spent $36.4 billion in 
1991 on outpatient prescription drugs--triple the $12 billion 
spent in 1980. Billions more were spent on medication for 
patients in hospitals. A GAO report comparing wholesale drug 
prices in the U.S. and Canada found U.S. prices to be, on 
average, 32% higher. A similar GAO report compared the 
wholesale prices charged by manufacturers for 20 of the top 100 
drugs sold in the U.S. with the prices in Canada, Great Britain 
and Sweden. The GAO found that of wholesale drug prices in the 
U.S. and UK, U.S. prices were an average of 60% higher. In 
almost every case, the U.S. price for the same dosage was 
higher than the price in each of the other countries--in some 
cases several times higher.
    In addition, the Committee found that U.S. taxpayers and 
consumers are subsidizing the lower prices in other countries. 
In almost every other nation, drug manufacturer's prices are 
regulated. In the U.S. they are not. The Committee also found 
that resulting high drug prices are an improper drain on the 
Federal Treasury, which pays the drug costs of millions of 
Federal employees and hospitalized Medicare and Medicaid 
patients.
            5. Interstate Identification Index: Is it an effective 
                    weapon in the war against violent crime? Is it 
                    interstate, does it identify, is it an index?--
                    December 6, 1994
    The Committee found that law-enforcers are being frustrated 
in their efforts to protect U.S. citizens from violent 
criminals by limited access to the full criminal histories of 
felons. FBI statistics point to the fact that one-third of all 
criminals commit offenses in more than one state, yet most 
criminal records are only immediately available to law-
enforcers within the state where the crimes were committed. The 
Committee found that this information shortfall may have fatal 
consequences if law-enforcers are unable to identify and place 
certain limitations on the movements and activities of 
particularly dangerous offenders, such as repeat violent 
criminals, child molesters and sexual predators.
    The Triple I (III) was established in 1984, as part of the 
National Crime Information Center (NCIC) and was designed to 
provide instant access to the history of repeat offenders on an 
interstate basis. Each state would have a central repository 
containing its criminal records, and the FBI would line-up 
states requesting criminal history information with the 
appropriate state repository. This would prevent criminals from 
effectively shedding their criminal records as soon as they 
cross state lines.
    However, only 20% of the full criminal records of the 
states are available or accessible to law enforcement officials 
on an interstate basis. Though the III was set up in 1984, 
assimilating these records into III is proceeding at a very 
slow pace. Ten years after the inception of the Triple I, 21 
states and Washington D.C. are not yet participating in the 
program. The Committee found that the slow progress towards 
full participation is preventing law-enforcers from doing their 
jobs effectively. Consequently, agencies involved in the 
criminal justice system often are vulnerable to making 
decisions that may well result in real risk to their 
communities.
    The Task Force held a hearing to focus on the economy and 
efficiency of the current program. Additionally, the Committee 
attempted to identify the impediments to full participation/
implementation of Triple I in all states and the District of 
Columbia. The hearing raised the visibility of Triple I as a 
weapon against crime and established it as an urgent national 
priority. It illustrated the fact that all other measures 
against crime (including laws that attempt to keep repeat sex 
offenders in prison for life) are of limited value unless law 
enforcement officials know whom the repeat offenders are.
    Given that Triple I was a funded mandate, with $27 million 
available from the Justice Department specifically for Triple 
I, and $100 million allocated by the Brady Act to upgrade the 
capabilities of the NCIC, the Committee attempted to determine 
how this money has been allocated. Further, the Committee 
attempted to find out what is delaying full participation and 
implementation.
    The aim of the hearing was to make Triple I a priority. It 
was an attempt to educate those states who are not yet 
participating about the advantages of Triple I and find out why 
those states who are participating are not making all their 
criminal records accessible through the program. In addition 
the Committee sought to: determine the pace at which the 
records will become available; discover the barriers to making 
these records available; raise the visibility of the issue of 
prior felony conviction records for repeat offenders with key 
political officials and the public, and speed up the process to 
make the Triple I current and up-to-date.
    The Committee found that all the states not currently 
participating in the program blame this upon a lack of 
resources rather than any deliberate opposition to Triple I. 
Most states aim to be participating by the end of 1996, and the 
remaining states should follow before the end of the decade.