Senate Report 104-330 - TREASURY, POSTAL SERVICE, AND GENERAL GOVERNMENT APPROPRIATION BILL, 1997

[Senate Report 104-330]
[From the U.S. Government Publishing Office]

104th Congress SENATE Calendar No. 510
2d Session Report 104-330

_______________________________________________________________________

TREASURY, POSTAL SERVICE, AND GENERAL GOVERNMENT APPROPRIATION BILL,
1997

_______

July 23, 1996.--Ordered to be printed

_______________________________________________________________________

Mr. Shelby, from the Committee on Appropriations, submitted the
following

R E P O R T

[To accompany H.R. 3756]

The Committee on Appropriations, to which was referred the
bill (H.R. 3756) making appropriations for the Treasury
Department, the United States Postal Service, the Executive
Office of the President, and certain Independent Agencies for
the fiscal year ending September 30, 1997, and for other
purposes, reports the same to the Senate with amendments and
recommends that the bill as amended do pass.

Amount of bill as passed by House....................... $23,213,250,000
Amount of bill as reported to the Senate................ 23,487,761,000
Amount of estimate...................................... 24,845,757,000
The bill as reported to the Senate:
Above the appropriations provided in 1996........... 324,007,000
Below the estimates for 1997........................ 1,357,996,000
Above the House bill................................ 274,511,000

C O N T E N T S

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Page
General statement and summary of bill............................ 3
Title I--Department of the Treasury.............................. 7
Title II--United States Postal Service........................... 38
Title III--Executive Office of the President and Funds
Appropriated to the President.................................. 40
Title IV--Independent Agencies:
Committee for Purchase From People Who Are Blind or Severely
Disabled................................................... 54
Federal Election Commission.................................. 55
Federal Labor Relations Authority............................ 55
General Services Administration.............................. 57
John F. Kennedy Assassination Review Board................... 68
Merit Systems Protection Board............................... 69
National Archives and Records Administration................. 71
National Historical Publications and Records Commission...... 72
Office of Government Ethics.................................. 72
Office of Personnel Management............................... 73
Office of Special Counsel.................................... 80
U.S. Tax Court............................................... 80
Title V--General provisions, this act............................ 82
Title VI--General provisions, departments, agencies, and
corporations................................................... 84
Title VII--Supplemental Appropriations and Rescissions for the
fiscal year ending September 30, 1996.......................... 87
Compliance with paragraph 7, rule XVI, of the Standing Rules of
the Senate..................................................... 88
Compliance with paragraph 7(c), rule XXVI of the Standing Rules
of the Senate.................................................. 90
Compliance with paragraph 12, rule XXVI of the Standing Rules of
the Senate..................................................... 91
Tables........................................................... 111
General Statement and Summary of the Bill

The accompanying bill contains recommendations for new
budget (obligational) authority for the Treasury Department,
the United States Postal Service, the Executive Office of the
President, and certain independent agencies for the fiscal year
ending September 30, 1997.
The Committee considered budget estimates for fiscal year
1997 in the aggregate amount of $24,845,757,000. Compared to
that amount, the accompanying bill recommends new budget
authority totaling $23,487,761,000 which is $1,357,996,000 less
than the amount requested by the administration and
$274,511,000 above the House-passed bill.
The Committee recommendations are consistent with the
fiscal year 1997 section 602(b) budget authority and outlay
allocations for the Treasury, Postal Service, and General
Government Subcommittee.

reprogramming and transfer requirements

The Committee expects the justifications for proposed
reprogramming requests to be clear and strongly documented.
Furthermore, except in extraordinary circumstances,
reprogramming proposals will not be approved by the Committee
45 days prior to the end of the fiscal year, nor will they be
approved if the proposed actions would effectively reverse
previous congressional directives.
The guidelines to be used to determine whether or not a
reprogramming shall be submitted to the Committee for prior
approval during fiscal year 1997 are as follows:
(1) For agencies, departments, or offices receiving
appropriations in excess of $20,000,000, a reprogramming must
be submitted if the amount to be shifted to or from any object
class, budget activity, program line item, or program activity
involved is in excess of $500,000 or 10 percent, whichever is
greater;
(2) For agencies, departments, or offices receiving
appropriations less than $20,000,000, a reprogramming must be
submitted if the amount to be shifted to or from any object
class, budget activity, program line item, or program activity
involved is in excess of $50,000 or 10 percent, whichever is
greater;
(3) For any actions which would result in a major change
contrary to the program or item presented to and approved by
the Committee or the Congress;
(4) For any action where the cumulative effect of past
reprogramming actions added to the new reprogramming would
exceed the dollar threshold mentioned above;
(5) For any actions where funds earmarked for a specific
activity are proposed to be used for another activity; and
(6) For any actions where funds earmarked for a specific
activity are in excess to meet the project or activity
requirement, and are proposed to be used for another activity.
The administration has requested authority to transfer
funds between appropriation accounts of the Department of the
Treasury. The proposal is to allow the Department to transfer
up to 2 percent of those funds appropriated between the fiscal
management bureaus and up to 2 percent between law enforcement
bureaus. In addition, the Department requests authority for the
Internal Revenue Service to transfer a 5-percent transfer of
funds between its appropriation accounts.
The Committee has denied the requested 2-percent transfer
authority for the Secretary of the Treasury and approves a 5-
percent transfer authority for the IRS. Such transfers shall
follow established reprogramming procedures and shall be
requested only in emergency situations when the need for such
transfer is unforeseen and absolutely critical to the mission
supported by the affected appropriation account, and only with
prior approval of both the House and Senate Committees on
Appropriations. In addition, the Committee expects transfer
requests to be submitted for Committee approval in a timely
manner to permit a sufficient period for consideration. The
Committee is concerned that in the past, transfer requests have
been submitted so late in a fiscal year that transfers of funds
have already been effected by the agencies and cannot be
reversed.
The Committee is concerned that in the past transfer and
reprogramming authority has been overutilized and often used by
agencies for reorganizations that have major policy
implications. Such transfers and reprogrammings are interpreted
by the Committee as circumventing the appropriations process
and will not be condoned.

definition of program, project, and activity as provided for by public
law 99-177, as amended

During fiscal year 1997, for purposes of the Balanced
Budget and Emergency Deficit Control Act of 1985 (Public Law
99-177), as amended, the following information provides the
definition of the term ``program, project, and activity'' for
departments and agencies under the jurisdiction of the
Treasury, Postal Service, and General Government Subcommittee.
The term ``program, project, and activity'' shall include the
most specific level of budget items identified as a dollar
amount in the Treasury, Postal Service, and General Government
Appropriations Act, 1997 (H.R. 3756), the House (H. Rept. 104-
660) and the Senate committee report and the conference report
and accompanying joint explanatory statement of the managers of
the committee of conference accompanying that act. (Under the
above definition, the Federal buildings fund, the Bureau of
Engraving and Printing fund, and other intragovernmental funds
are exempt under section 255(g)(1) of Public Law 99-177, as
amended).
In implementing a Presidential Order, departments and
agencies shall apply the percentage reduction required for
fiscal year 1996 pursuant to the provisions of Public Law 99-
177, as amended, to each budget item that is listed under said
accounts in the budget justifications submitted to the House
and Senate Committees on Appropriations as modified by
subsequent appropriations acts (including joint resolutions
providing continuing appropriations), and accompanying House
and Senate Committee reports, conference reports, or joint
explanatory statements of the committee of conference.

total funding for treasury, postal service, and general government
programs

In addition to the new obligational authority recommended
in the accompanying bill, additional significant sums are made
available each year for the Treasury Department, the Office of
Personnel Management, and other independent agencies under
permanent indefinite authority which do not require
consideration by the Congress during the annual appropriations
process.
The principal items in these categories include: payment of
interest on the public debt, interest on Internal Revenue
Service refunds of income tax payments, and other interest
payments on selected accounts handled by the Department of the
Treasury, which total an estimated $368,100,000,000 in fiscal
year 1997; repayments of taxes collected by Puerto Rico,
payment made when the earned income credit exceeds the
taxpayer's tax liability, special claims, and damage payments
required as a result of judgments against the U.S. Government,
the coinage trust fund, the Treasury forfeiture fund,
reimbursements from Federal Reserve banks, and payments to the
Presidential candidates and their parties, which total an
estimated $24,700,000,000 in fiscal year 1997; and payments in
connection with the civil service retirement and disability
fund, estimated to be $12,081,000,000 in fiscal year 1997.
The Committee also establishes limitations on the use of
certain funds within the agencies covered by this act.
In addition to the agencies whose funds are derived from
direct appropriations, there are other agencies which operate
under authorities which exempt them from congressional review,
in whole or in part, during the annual appropriations process.
For example, the U.S. Postal Service, under the Postal
Reorganization Act, is authorized to use all of its income from
postage and services for its own purposes and to request an
appropriation from the Congress for certain subsidies. Normally
only the amount of the subsidy requirement is regularly
reviewed by the Congress. In the Treasury Department, the
Office of the Comptroller of the Currency, whose income is
derived principally from assessments paid by national banks, is
exempt from regular funding review, because such assessments
are not construed under law to be Government funds.

agency adherence to estimates contained in budget justifications

The Committee believes that the agency budget
justifications presented each year outlining the assumptions
contained in the President's annual budget should accurately
reflect the proposed allocation of resources and activities
within the agency budget plan for the coming fiscal year. At
the same time, the Committee is cognizant of the fact that
economic conditions; program changes; congressional directives;
and other unforeseen circumstances often change the assumptions
which are built into the President's budget submission.
Nevertheless, the Committee expects every agency funded in this
bill to closely adhere to the estimates presented in their
annual budget justifications, including object classification
tables, unless funding levels for programs, projects, and
activities are specifically altered by the Committee and/or the
Congress. In such case, the affected agencies shall submit new
object classification tables within 45 days of enactment of the
appropriations act.
The Committee expects to receive periodic notification from
the agencies if and when they intend to alter the mix of
programs, projects, activities, or funding assumptions
initially presented in their fiscal year 1997 budget
justifications which do not require a formal reprogramming
action in accordance with this report.

base funding

The Committee has long attempted to ensure that base levels
of funding are provided for the agencies funded in this bill.
The Committee has in years past included funding that provides
for a number of enhancements, only to find that later in the
fiscal year requests are sent to the Committee to use these
funds to cover shortfalls in base funding. There have been
times when Congress has required executive branch agencies to
absorb increases, such as pay and other benefits. Budgets
submitted in the past few years have indicated that the base is
fully funded, yet that has not been the case. That is proven
most often when full-time equivalent positions go unfilled.
The Committee has made every effort to determine what the
base for agencies funded in this bill are. In an effort to
ensure that, funds are included in each agency's budget to
cover annualization of the pay raise provided in fiscal year
1996. The President has indicated that the pay raise requested
for 1997 is covered in his budget request. Funding is provided,
as it was requested for that pay raise.
TITLE I--DEPARTMENT OF THE TREASURY

Departmental Offices

salaries and expenses

Appropriations, 1996.................................... $105,929,000
Budget estimate, 1997................................... 120,577,000
House allowance......................................... 108,447,000

Committee recommendation

111,348,000

The Committee recommends an appropriation of $111,348,000
for salaries and expenses for departmental offices of the
Treasury Department. The amount provided by the Committee is
$9,229,000 less than the budget estimate and $2,901,000 above
the House allowance.
The departmental offices function of the Treasury
Department provides basic support to the Secretary in his roles
as the chief financial officer of the Government, major policy
advisor to the President, and Executive Director of the
Treasury Department. The Secretary's responsibilities include:
recommending and implementing U.S. domestic and international
economic policy, fiscal policy, and tax policy; managing the
fiscal operations of the Government; managing the public debt;
overseeing the major law enforcement functions carried out by
the Treasury Department; serving as the U.S. representative to
the various international financial organizations; and
directing the general administrative operations of the Treasury
Department.
In support of the Secretary, the departmental offices
function provides policy formulation and implementation in
areas such as tax and economic affairs, trade and financial
operations, and general fiscal policy. This function also
provides advice and technical assistance on administrative and
legislative programs and establishes and coordinates
departmental administrative policies in areas such as budget,
accounting, personnel, procurement, information systems
development and management, telecommunications, and equal
employment opportunity.
The international affairs programs involve the formulation
and execution of Treasury policy in a wide range of important
economic areas. This activity includes those offices
responsible for providing staff analysis and support for the
Secretary and other senior officials involved in formulating
and implementing international economic and financial policies.
The issues involved within this activity include: international
monetary affairs; international development financing policy;
U.S. policy toward, and participation in, the work of the
various international financial organizations; international
economic analysis; international trade and investment policy;
financial aspects of commodities and natural resources policy;
and relations with the oil-producing countries of the Arabian
Peninsula.

Committee Recommendation

The Committee has included funding requested by the
administration for the enhanced effort of the Office of Foreign
Assets Control to enforce Cuba sanctions, for the development
of a model to improve efficiency, for an effort to develop a
plan to privatize Government assets, and for temporary
relocation of employees to facilitate renovation of the
Treasury Building. Due to budget restraints, the Committee has
not included funding for a number of other requests. The
Department requested that $5,600,000 be transferred from the
Customs Service for an international trade data system. These
funds have been provided for the Department in the automation
enhancement appropriation. Funds up to $500,000 have been
included in this account to carry out the provisions of section
528 of this act.

Private Sector Tax Debt Collection

The Committee has concurred with the House and included a
new general provision (sec. 117) which transfers $13,000,000
from the Internal Revenue Service [IRS] to the departmental
offices to initiate a second private sector debt collection
program which focuses on tax debt which is classified by the
IRS as currently not collectible, available for collection
actions, and deferred (lower value accounts). The Committee
takes this action because of its disappointment with the
current contracting initiative in which the IRS procedures and
requirements in the fiscal year 1996 pilot RFP was roundly
criticized by private industry. The Committee is also concerned
that IRS is not committed to the success of this program, nor
has it established a viable program which can be expanded and
used in the future.
The Committee wants to again stress that as of September
30, 1995, the amount of taxes, penalties, and interest in the
currently not collectible categories of defunct/no asset
corporations, unable to locate, unable to contact, and other,
totaled $43,400,000,000; available for collection actions
totaled $36,600,000,000; and deferred (lower value accounts)
totaled $1,600,000,000. The vast majority of these accounts are
not being worked by the IRS, because the IRS has determined
that the time and energy necessary to collect this debt is not
cost beneficial.
The vast majority of Americans faithfully and voluntarily
pay their taxes. Every effort should be made to protect them by
collecting those taxes legitimately owed the Federal
Government. The Committee, in establishing the original pilot
took every effort to ensure that taxpayer's rights, as well as
privacy were protected. It is expected that this program
protect these rights and privacy, as well.

State-sponsored College Savings and Prepaid Tuition Programs

The Committee is pleased with the recent rulings by the
Department of the Treasury and the Internal Revenue Service
clarifying the tax treatment of State-sponsored college savings
and prepaid tuition programs. However, the Committee strongly
urges both the Department and the IRS to refrain from
promulgating any future regulations which would adversely
impact the creation and maintenance of these very important
programs, which provide expanded opportunities for higher
education.

Debt Collection Activities

In the statement of managers which accompanies Public Law
104-134 (House Report 104-537), the conferees included language
which directs that the Department of the Treasury limit
automatic withholding of benefits above the $9,000 annual
exemption to not more than 15 percent. The Committee rescinds
this direction and instead directs that no fixed percentage
limitation above the $9,000 be applied. The administration
should consider each hardship appeal on a case-by-case basis,
with consideration given to the concerns raised by the
conferees in House Report 104-537.

Transcript Review

The Committee is not pleased with the inability of the
Department to respond to questions for the record in a timely
manner. In the case of each hearing held this year on the
Department budget, the Committee made the questions available
to the Department on the day following the hearing. These
questions are not asked for the sake of asking questions; they
are asked in order to garner information necessary to make
decisions regarding the Department's appropriations request.
The Committee knows the clearance process, and is aware that it
is easy to blame the Office of Management and Budget for
delays. The OMB is not without blame, but hardly the major
culprit in these delays. This has become an annual problem. The
Committee is taking this opportunity to advise the Department
that things are expected to change, and the Senate given the
same priority as the House in responding to questions for the
record. If things do not change the Committee has no choice,
but to take action in the only manner it can--considering an
appropriate adjustment to office budgets.

Automation Enhancements

Appropriations, 1996....................................................
Budget estimate, 1997...................................................
House allowance......................................... $27,100,000

Committee recommendation

27,100,000

The Committee concurs with the House recommendation that a
total of $27,100,000 for development and acquisition of
automatic data processing equipment, software, and services for
the Department of the Treasury be included in a separate
appropriation. These funds were initially requested in the
individual bureau accounts and subsequently the appropriation
for those accounts have been reduced accordingly.
These funds are made available for 2 years and may be
transferred to accounts and in amounts as necessary to satisfy
the requirements of the departmental offices, bureaus, and
organizations. These funds shall be in addition to amounts
appropriated in this act. The funds should be provided
according to the guidelines directed in the House report and
transferred as follows:

Departmental offices.................................... $6,500,000
Customs Service, automated commercial environment [ACE]. 15,000,000

Departmental offices, international trade data system [ITDS]

5,600,000

Over the past several years the Federal Government has
expended hundreds of millions of dollars on automation hardware
and software. Much of this funding has been done without
significant planning and architectural design. The General
Accounting Office has documented problems with design and
systems procurement on countless occasions. The Committee is
very supportive of providing the technology necessary to do the
job; however, it is most concerned that more thought be given
to needs of the Government.

Office of the Inspector General

salaries and expenses

Appropriations, 1996.................................... $29,319,000
Budget estimate, 1997................................... 30,153,000
House allowance......................................... 29,319,000

Committee recommendation

30,153,000

The Committee recommends an appropriation of $30,153,000
for salaries and expenses of the Office of the Inspector
General. This amount equals the budget request and is $834,000
above the House allowance.
The statutory Office of the Inspector General of the
Department of the Treasury was authorized under the Inspector
General Act Amendments of 1988, Public Law 100-504. That act
required the consolidation of the staff and responsibilities
for the internal audit functions at the Bureau of Alcohol,
Tobacco and Firearms, the U.S. Customs Service, and the U.S.
Secret Service, with the Department of the Treasury's existing
Office of the Inspector General.
The Office of the Inspector General is organizationally
independent of all other offices and bureaus within the
Department of the Treasury and is under the general supervision
of the Secretary of the Treasury or his Deputy. The Office is
responsible for: (1) the conduct, supervision, and coordination
of audits with the Department; (2) the conduct of
investigations within the nonlaw enforcement bureaus of the
Department; (3) the oversight of investigations in the law
enforcement bureaus or the conduct of such investigations, if
appropriate; (4) the review of legislation and regulations of
the Department; and (5) reporting to the Secretary and the
Congress as set forth in the law.

Office of Professional Responsibility

(transfer of funds)

Committee recommendation

...........................

The House has provided funding to create an Office of
Professional Responsibility within the Office of the Under
Secretary of Enforcement and transferred funding from the
Customs Service for its operation. The Committee does not
disagree with the concept of an office to oversee internal
affairs investigations of Treasury law enforcement bureaus, but
believes the Department should make the determination as to the
advisability of such an office.

repair and restoration of the treasury building and annex

Appropriations, 1996.................................... $21,491,000
Budget estimate, 1997................................... 7,684,000
House allowance......................................... 22,892,000

Committee recommendation

43,684,000

The Committee recommends an appropriation of $43,684,000
for the repair and restoration of the Treasury Building and
Annex. This amount is $36,000,000 above the budget request and
is $20,792,000 above the House allowance.
This account is used to operate and maintain the Department
of the Treasury Building and Annex.
The House has included funding for site and design of the
Bureau of Alcohol, Tobacco and Firearms National Laboratory and
Fire Investigations Research and Development Center, as well as
funds for the construction of an educational facility at the
James J. Rowley Secret Service Training Center.

FIRE AT MAIN TREASURY BUILDING

The Committee recognizes that the June 26, 1996, fire at
the main Treasury Building resulted in extensive damage to the
historic structure. This damage affected the north corridor of
five floors of the main building resulting in the need to
provide extensive repairs and restorations. Therefore, the
Committee directs that within the funds appropriated for the
Treasury Building and Annex repair and restoration, not less
than $36,000,000 shall be available for the costs associated
with the fire at the main Treasury Building.

Financial Crimes Enforcement Network

Appropriations, 1996.................................... $22,198,000
Budget estimate, 1997................................... 23,137,000
House allowance......................................... 22,387,000

Committee recommendation

22,387,000

The Committee recommends an appropriation of $22,387,000
for the Financial Crimes Enforcement Network [FinCEN] for
fiscal year 1997. This amount is $750,000 below the budget
request and equal to the House allowance.
The Financial Crimes Enforcement Network [FinCEN] was
created on April 25, 1990, by Treasury Order 105-08. The
Treasury Department established FinCEN to implement the
President's national drug control strategy recommendations
calling for increased efforts to combat drug money laundering.
FinCEN was created to serve as a central source for the
systematic identification, collation, and analysis of
intelligence in support of law enforcement operations. It also
exercises the Department's responsibilities under the Bank
Secrecy Act.
FinCEN provides a Governmentwide multisource intelligence
and analytical network to support Federal, State, local, and
foreign law enforcement and regulatory agencies in the
detection, investigation, and prosecution of money laundering
and other financial crimes. Toward this end, FinCEN is charged
with linking together and analyzing financial, law enforcement,
and public data sources, to provide leads on criminal financial
activity that might otherwise go undetected.
In support of this mission, FinCEN is staffed with
permanent FinCEN employees, analysts and computer specialists,
as well as special agents, analysts, and other Federal
employees on nonreimbursable details from Federal Government
agencies.
The increases provided in the budget is for further
enhancement of information systems, allowing FinCEN to develop
and expand its link analysis capabilities. This will enable
quick, massive data processing for timely support of the law
enforcement community's information requirements.
The Committee concurs with the House and includes in the
violent crime trust fund the $1,000,000 requested by the
administration to enhance FinCEN's efforts to combat emerging
money laundering threats.

treasury forfeiture fund

Appropriations, 1996.................................... $10,000,000
Budget estimate, 1997................................... 10,000,000
House allowance......................................... 7,500,000

Committee recommendation

10,000,000

The Committee recommends an appropriation of $10,000,000
for the Treasury forfeiture fund in fiscal year 1997. This
amount equals the budget request and is $2,500,000 above the
House allowance.
The Treasury forfeiture fund was established on October 1,
1993, in Public Law 102-393. It has two accounts, one which is
funded through permanent indefinite authority and the other
which is funded through a direct annual appropriation. The
direct appropriation represents the annual congressional
limitation on the use of the proceeds from seized and forfeited
assets. Forfeited cash and the proceeds of forfeited monetary
instruments are deposited into the fund. Proceeds from the sale
of other seized and forfeited assets are also deposited into
the fund.
The permanent indefinite appropriation is available to pay
for seizure specific expenses such as: (1) all proper expenses
of the seizure including investigative costs leading to the
seizure; (2) contract services and reimbursement for Federal,
State, and local agencies to perform seizure-related expenses;
(3) awards of compensation to informants; (4) satisfaction of
liens and mortgages; (5) remission and mitigation expenses; (6)
claims of parties to the disposed property; (7) equitable
sharing payments to Federal, State, local, and foreign law
enforcement agencies; (8) overtime salaries, travel, fuel,
training, equipment, and other similar costs of State and local
law enforcement officers incurred in joint operations with
Treasury bureaus; (9) services of experts and consultants to
carry out the forfeitures; and (10) necessary and direct
seizure and forfeiture expenses for ADP systems, training,
printing, and related services.
The annual appropriation is used for the following
purposes: (1) awards for information leading to civil and
criminal forfeitures; (2) purchases of evidence or information;
(3) costs for publicizing awards; (4) equipping vehicles,
vessels, or aircraft assisting in law enforcement functions
including forfeiture-related equipment and the cost of its
operations and maintenance; (5) reimbursement of expenses for
private persons involved in investigations or undercover
operations; and (6) training of foreign law enforcement
personnel.
Staff support for the Treasury forfeiture fund is provided
through the permanent indefinite appropriation.

project alert

The Committee instructs the Executive Director of the fund
to make available no less than $50,000 to the National Center
for Missing and Exploited Children in fiscal year 1997 for
Project ALERT, for the training of retired law enforcement
officers to assist in the investigation of unsolved missing
children cases nationwide. The Committee anticipates that these
funds will be in addition to other funds available to the
Center for these purposes.

Violent Crime Control and Law Enforcement Funding

Appropriations, 1996.................................... $76,514,000
Budget estimate, 1997................................... 97,200,000
House allowance......................................... 97,000,000

Committee recommendation

120,000,000

violent crime reduction program

The Committee has provided $120,000,000 for Treasury
enforcement activities as follows:

Bureau of Alcohol, Tobacco and Firearms:
GREAT Program grants................................ $8,000,000
GREAT administration/training....................... 3,000,000
Safety equipment.................................... 2,000,000
Training/equipment.................................. 29,500,000
Project LEAD........................................ 800,000
Ballistics imaging.................................. 4,150,000
--------------------------------------------------------
____________________________________________________
Total, Bureau of Alcohol, Tobacco and Firearms.... 39,450,000
========================================================
____________________________________________________
Financial Crimes Enforcement Network: Money laundering
threat initiative................................... 1,000,000
========================================================
____________________________________________________
Federal Law Enforcement Training Center: Training....... 3,150,000
========================================================
____________________________________________________
U.S. Customs Service:
Southwest border support............................ 10,000,000
Southwest border infrastructure..................... 14,200,000
Vehicles/equipment.................................. 7,800,000
Protective vests.................................... 2,400,000
Technology planning................................. 2,500,000
Personnel relocations............................... 2,000,000
--------------------------------------------------------
____________________________________________________
Total, U.S. Customs Service....................... 38,900,000
========================================================
____________________________________________________
U.S. Secret Service:
White House security................................ 13,000,000
Anticounterfeiting efforts.......................... 5,000,000
Missing children forensics.......................... 2,000,000
Project TRIP........................................ 1,500,000
Financial institutions fraud........................ 3,000,000
--------------------------------------------------------
____________________________________________________
Total, U.S. Secret Service........................ 24,500,000
========================================================
____________________________________________________
Funds appropriated to the President: High-intensity drug
trafficking areas................................... 13,000,000

Treasury Franchise Fund

The Committee has concurred with the House and included
language requested by the administration to create the Treasury
franchise fund. The Department of the Treasury has been
designated as a pilot franchise fund following enactment of
Public Law 103-356, the Government Management and Reform Act of
1994. Beginning in 1997, financial and administrative services
included in the franchise fund will be financed on a fee-for-
service basis which in the case of the Treasury's fund, would
be for financial, debt collection, and administrative services.
Activities that will be included in the fund are debt
collection, financial training, and accounting cross servicing.
This change is intended to increase competition for Government
and financial administrative services resulting in lower costs
and increased quality.

Federal Law Enforcement Training Center

salaries and expenses

Appropriations, 1996.................................... \1\ $36,070,000
Budget estimate, 1997................................... 50,518,000
House allowance......................................... 51,681,000
Committee recommendation................................ 52,242,000

\1\ Unobligated balances totaling $11,000,000 were transferred from the
``Acquisition, construction, improvements, and related expenses''
account in fiscal year 1996 to supplement the appropriation.

The Committee recommends an appropriation of $52,242,000
for salaries and expenses of the Federal Law Enforcement
Training Center [FLETC]. This amount is $1,724,000 above the
budget request and is $561,000 above the House allowance.
The Federal Law Enforcement Training Center provides the
necessary facilities, equipment, and support services for
conducting basic and advanced training for Federal law
enforcement personnel of its participating organizations.
Center personnel conduct the instructional programs for the
basic recruit training and also selected portions of the
advanced training. In addition, the Center furnishes training
on a space-available basis to personnel from several Federal
organizations which are not formal participants under the
memorandum of understanding.
In October 1982, the President directed that a national
center for State and local training be established as a part of
the Federal Law Enforcement Training Center. The major program
goals are to present advanced and specialized training and to
provide basic technical assistance to State and local law
enforcement agencies.
In recent years, considerable funding has been provided
Federal law enforcement agencies to hire and train additional
personnel. The Committee has included funding to ensure that
FLETC can meet the demands of agencies for training their
personnel.

acquisition, construction, improvements, and related expenses

Appropriations, 1996.................................... $9,663,000
Budget estimate, 1997................................... 9,884,000
House allowance......................................... 18,884,000

Committee recommendation

19,884,000

The Committee recommends an appropriation of $19,884,000
for acquisition, construction, improvements, and related
expenses of the Federal Law Enforcement Training Center. This
amount is $10,000,000 above the budget estimate and is
$1,000,000 above the House allowance.
The ``Acquisition, construction, improvements, and related
expenses'' account covers major maintenance and facility
improvements, construction, renovation, capital improvements,
and related equipment at FLETC facilities in Glynco, GA, and
Artesia, NM.
The Federal Law Enforcement Training Center was established
in 1970 as the single interagency training organization for
Federal law enforcement agencies. FLETC's concept of
Governmentwide, consolidated law enforcement training is
directed at promoting the highest quality training at the most
reasonable cost to the American taxpayer through multiple
agency support and use. FLETC, through its principal facility
in Glynco, GA, now serves the basic and advanced training needs
of 72 participating Federal agencies.
In June 1989, the Training Center completed its development
of a master plan which will enable FLETC to better serve the
training demands of Federal, State, and local law enforcement
agencies. This master plan calls for the construction of
additional facilities at all three Center locations. The
Committee expects the Department to periodically update the
master plan to include new requirements demanded by the user
agencies for effective law enforcement training.
The Committee agrees with the House that funds should be
requested by the administration and allocated to the Center to
assist in completing the master plan in order to meet the ever
increasing demands. The Committee has included $10,000,000 for
master plan projects. The Committee intends that these funds be
used at both the Glynco and Artesia facilities. The Director is
directed to consult with the Committee with regard to the
priority of projects prior to committing these funds.

Financial Management Service

salaries and expenses

Appropriations, 1996.................................... $184,300,000
Budget estimate, 1997................................... 198,070,000
House allowance......................................... 191,799,000

Committee recommendation

196,338,000

The Committee recommends an appropriation of $196,338,000
for salaries and expenses of the Financial Management Service
[FMS] in fiscal year 1997. This amount is $1,732,000 less than
the budget estimate and $4,539,000 above the House allowance.
In its financial management leadership role, the Service
must manage effectively the movement of Federal funds as well
as make the optimal use of Federal financial information. By
doing so, FMS fulfills an obligation to the public by improving
the Federal Government's overall financial position and helping
to reduce the Federal deficit.
FMS oversees the Government's overall financial operations
through the financial and accounting services it provides to
its customers--Congress, other Federal agencies, financial
institutions, and the public. The Service's mission involves
making over 800 million payments each year totaling over
$1,000,000,000,000; effectively managing mechanisms which
collect over $1,400,000,000,000 in revenue for the Federal
Government; providing leadership, direction, and assistance to
Government agencies in the fields of cash and credit
management, and financial systems; overseeing a daily cash flow
of over $10,000,000,000; and accounting for and reporting on
these activities.
Service responsibilities include: regulation and management
of the Government's collection systems; development and
implementation of innovative cash management and credit
administration practices in the administration of Federal
programs; central payment services for all civilian executive
agencies except the U.S. Postal Service, U.S. marshals, and
certain Government corporations; processing claims on all lost,
stolen, and forged checks including those not issued by the
Treasury; providing central accounting services for the
Government; compiling and publishing financial reports; and
managing trust, revolving, and deposit fund accounts.
The Committee has included the funds requested in order to
begin the debt collection process, continue electronic benefit
transfer operations, and absorb the functions and personnel
transferred from the General Accounting Office, subsequent to
enactment of Public Law 104-53.

Debt Collection

Public Law 104-134 included the Debt Collection Improvement
Act of 1996, which designated the Financial Management Service
as the primary agency collecting nontax debt which is due and
owed to the Government. FMS is charged with coordinating the
effort among Federal agencies to collect the debt. The
Committee has every confidence of the ability of FMS to
effectively implement this legislation. Should problems be
encountered in implementing collection coordination, the
Committee expects to be apprised, so that corrective action can
be taken.

Bureau of Alcohol, Tobacco and Firearms

salaries and expenses

Appropriations, 1996.................................... $377,971,000
Budget estimate, 1997................................... 406,005,000
House allowance......................................... 389,982,000

Committee recommendation

395,597,000

The Committee recommends an appropriation of $395,597,000
for salaries and expenses of the Bureau of Alcohol, Tobacco and
Firearms [ATF]. This amount is $10,408,000 below the
administration's request and $5,615,000 above the House
allowance.
The mission of the Bureau of Alcohol, Tobacco and Firearms
is: (1) to reduce the criminal use of firearms and to assist
other Federal, State, and local law enforcement agencies in
reducing crime and violence by effective enforcement of the
Federal firearms laws; (2) to provide safety for the public by
reducing the criminal misuse of explosives, combating arson-
for-profit schemes, and removing safety hazards caused by
improper and unsafe storage of explosive materials; (3) to
assure the collection of all alcohol and tobacco tax revenues
and obtain a high level of compliance with the alcohol and
tobacco tax statutes; (4) to suppress commercial bribery,
consumer deception, and other prohibited trade practices in the
alcohol beverage industry by effective enforcement and
administration of the Federal Alcohol Administration [FAA] Act;
and (5) to suppress illicit manufacture and sale of nontaxpaid
alcohol beverages.
The Bureau's program objectives are as follows:
Alcohol and tobacco programs.--Ensure the collection of all
taxes due; prevent organized crime or other unqualified
applicants from obtaining permits to enter the alcohol and
tobacco industries; ensure an open, competitive market for
alcohol beverages; ensure protection for the consumer in
alcohol beverage products; and undertake projects on regulatory
reform and programs offering assistance to other agencies (both
regulatory and law enforcement), industry, and the public.
Firearms program.--Reduce illegal trafficking in firearms;
assist Federal, State, and local law enforcement and regulatory
agencies in reducing illegal trafficking in weapons, reducing
firearms-related crime, and investigating firearms-related
cases; and identify and investigate violence-prone individuals
who use firearms in criminal acts.
Explosives and arson programs.--Reduce criminal misuse of
explosives; ensure public safety regarding the storage of legal
explosives; reduce arson incidents; and assist Federal, State,
and local investigative and regulatory agencies in explosives
and arson-related areas.

federal alcohol administration act

The Committee recognizes alcohol beverages as among the
most socially sensitive commodities marketed in the United
States. In this connection, marketing, labeling, and
advertising of alcohol beverages must be accomplished in an
environment which fosters fair and healthy competition while
protecting the interests of the American consumer. The
Committee expects that there be no diminution of alcohol-
related functions in fiscal year 1997.

armed career criminal apprehension program

The Armed Career Criminal Act, signed into law in 1984 and
expanded by the Anti-Drug Abuse Act of 1986, provides mandatory
sentences for certain violent repeat offenders who carry
firearms. The Bureau, given its jurisdiction over firearms
laws, has a unique opportunity to effect the apprehension of
violent offenders. The success to date of the Bureau's Repeat
Offender Program has surpassed initial expectations regarding
apprehension, prosecution, and conviction of career criminals.
The Committee notes that over 80 percent of the defendants
apprehended under this program have had direct involvement in
illegal narcotics trafficking.

Downsizing ATF

Considerable funding is provided for training and equipment
for ATF. The Committee notes, as has the House, that current
staffing levels are not sustainable over the next few years.
Therefore, this appropriation assumes a staffing cut of over
400 full-time equivalent [FTE] positions from the 1996 staffing
levels. This action, combined with better training should allow
ATF to become a smaller, better trained law enforcement agency.

Staffing Levels in Smaller States and Rural Areas

Through the past several years the number of ATF agents in
smaller States and rural areas have steadily declined, in favor
of placing agent resources in metropolitan areas. These
staffing trends have not always reflected the need in these
areas. Jackson, MS, is an example. ATF staffing has increased
nationwide almost 8 percent since 1990, while staffing in
Jackson has declined by over 25 percent. The recent spate of
church fires in small, rural communities calls to mind the fact
that crime is not unique to larger cities. The Committee urges
ATF, as it reviews staffing, to look at allocations for smaller
States and rural areas.

GREAT Program

Since its inception the Gang Resistance Education and
Training [GREAT] Program has proved successful. The proof is
reflected in the large number of State and local police
agencies currently participating, and the number of those
seeking to participate in the program. The Committee has
included funding for continuation of the currently operating
programs, as well as, additional funding for expansion of the
program. Special consideration should be given to several
Colorado cities and Bellevue, WA, which have expressed
considerable interest in participating in this program.

Church Fire Investigations

The Bureau has investigated nearly 60 fires in the past 18
months--of which the majority have been African-American
churches. The majority of the fires have been in South
Carolina, North Carolina, Tennessee, and Louisiana; however,
have not been confined to these States. The ATF has assigned
considerable resources to investigate this effort. The
Committee has provided supplemental funds for fiscal year 1996
totaling $12,011,000 in title VII of this bill. An equal amount
for fiscal year 1997 is included in this appropriation.

U.N. Committee on Firearms

The Committee notes that ATF personnel are providing
technical assistance to the U.S. delegation to the U.N.
Convention on the Prevention of Crime and the Treatment of
Offenders which will present findings to the Economic and
Social Council of the United Nations. The House has directed
the ATF to provide the Committee with a report on the cost of
this project to the United States including: the progress of
the study; the expected recommendations; whether the
recommendations conflict with current U.S. law; and the date of
completion. The Committee expects to be advised prior to the
presentation of this report to the Council.

laboratory facilities

Appropriations, 1996....................................................
Budget estimate, 1997................................... $62,000,000
House allowance.........................................................

Committee recommendation

6,978,000

The Committee recommends $6,978,000 for design of a new
laboratory. This amount is $55,022,000 below the
administration's request and $6,978,000 above the House
allowance.
The administration requested funding for design and
construction of the ATF national laboratory and fire
investigation, research, and development center. The Committee
has provided funding for design of this facility. The House has
provided design funding in the ``Treasury Buildings and Annex
repair and restoration'' account.

U.S. Customs Service

salaries and expenses

Appropriations, 1996.................................... $1,387,153,000
Budget estimate, 1997................................... 1,466,170,000
House allowance......................................... 1,487,224,000

Committee recommendation

1,421,543,000

The Committee recommends an appropriation of $1,421,543,000
for salaries and expenses of the U.S. Customs Service. This
amount is $44,627,000 less than the budget estimate and
$65,681,000 less than the House allowance.
The U.S. Customs Service is the primary border enforcement
agency and a major revenue producer. Customs administers and
enforces the Tariff Act of 1930 and some 400 other provisions
of laws and regulations of 40 other Federal agencies governing
international traffic and trade. The mission is multifaceted
and mandates the Service to:
--Control, regulate, and facilitate the movement of carriers,
persons, and commodities between the United States and
other nations;
--Protect the American consumer and the environment against
the introduction of hazardous and noxious products; and
protect American industry and the American worker
against unfair competition from foreign manufacturers;
--Assess, collect, and protect the revenue accruing to the
United States from duties, taxes, and fees incident to
international traffic and trade;
--Detect, interdict, and/or investigate:
Smuggling and other illegal practices designed to gain
illicit entry into the United States of prohibited
articles, narcotics, and other contraband;
Fraudulent activities calculated to avoid the payment
of taxes and fees, or to evade the legal
requirements of international traffic and trade;
Illegal transfers of critical technology to foreign
nations for the building of their military systems,
thus posing a threat to our national security;
Illegal international trafficking in arms, munitions,
and currency.

Trade compliance

The Committee wishes to take the opportunity to compliment
the Customs Service on its efforts to define commercial
compliance measurements. Customs has struggled through the
years in trying to define and refine objective assessment and
measurements of compliance with Customs laws and regulations.
In February of this year, Customs released a report and the
compliance approach that will allow Customs to focus on high-
priority industry areas that have significant economic impact
on the Nation. It is hoped that this action will serve as the
basis for individual importers to work with Customs to assess
their compliance performance and improve informed compliance.
It should also assist Customs ports of entry in identifying
targeted activities to improve compliance in those ports of
entry. All of these efforts should provide enforcement tools,
while facilitating trade.

Antidrug Efforts on the Southwest Border

The Customs Service has been on the forefront of the drug
effort for many years. The Committee has provided constant
support to those efforts through those years, whether drugs
have been on the front pages, or not. This bill includes the
administration request of $65,000,000. Of this amount,
$40,795,000 is included in this appropriation and $24,205,000
is included in the violent crime trust fund appropriation, for
an additional 657 inspectors, canine officers, agents, and
support personnel for these efforts. It is necessary to note
that this problem is not a quadrennial one, it has been a
significant problem, which is with us year in and year out.
This Committee has done what it can during those years, with or
without the support of the administration.

Automation Enhancements

The administration had requested that $5,600,000 be
transferred from the Customs Service to the Departmental
Offices for the International Trade Data System [ITDS]. These
funds are included in the newly created ``Automation
enhancements'' account for the Departmental Offices, as is the
$15,000,000 requested by Customs for the Automated Commercial
Environment [ACE] Program.

Staffing and Service Levels at Customs Ports of Entry

The Committee continues to believe that the services
provided through the Charleston, WV, Customs office are very
important to the State of West Virginia and the Nation as a
whole. For this reason, the Committee expects the Service to
maintain the level of services provided in fiscal year 1996
through fiscal year 1997 at this office. The Committee
continues to believe that the policy of providing part-time and
temporary inspectors at the Honolulu International Airport is
an effective way to handle the large and increasing volume of
passengers arriving and departing this very busy airport in
Hawaii. The Committee has again included $750,000 for part-time
and temporary positions in the Honolulu Customs District. This
action is intended to enhance, and not supplant current
staffing levels. Amounts included in this account are
sufficient to maintain staffing levels at this airport through
fiscal year 1997 at the fiscal year 1996 level. The Committee
expects the Customs Service to ensure that staffing levels are
sufficient to staff and operate the newly operational Santa
Teresa, NM, border facility. Legitimate, as well as, illicit
trade and traffic continue to grow in the State of Florida.
Customs should give a high priority to funding sufficient
inspection personnel at ports of entry in Florida for fiscal
year 1997. Over the years Customs personnel in smaller cities,
such as Jackson, MS, as well as, other rural areas have
declined considerably. Problems facing these areas have not
necessarily declined, and the Committee urges Customs, as it
reviews its staffing requirements, to consider the allocation
to smaller States and rural areas.

Spirit of St. Louis Airport

The Committee has included language designating the Spirit
of St. Louis Airport as a port of entry. The Committee expects
that this port of entry be adequately staffed and equipment be
provided, so that users of this facility are provided efficient
service. No staff or funds should be diverted from Lambert
Field to provide this service.

Truck Inspection on the Northern Border

The Customs Service is in the process of deploying x-ray
technology at ports of entry along the Southwest border in its
effort to enhance inspection of heavily loaded tractor
trailers. Initial indications are that this technology is
effective in detecting illicit narcotics, as well as, other
contraband. Smuggling is certainly not unique to the southern
border. Problems continue to grow along the northern border, as
well. As Customs expands these interdiction efforts to the
northern border, the Committee encourages that this system be
located at the Highgate Springs, VT, border facility.

Technology Research

The Committee has once again included funding for research
into technologies which will assist Customs in performing its
inspection and enforcement duties. The Committee commends
Customs on the excellent job it has done with regard to
technologies unique to inspection and urges that appropriate
funding be given to development of technology to look at
commercial vehicles.

Project SENTRI

The Committee is aware that there is a great need to
facilitate the flow of traffic and trade between the United
States and Mexico, particularly at one its largest ports of
entry, El Paso, TX. If the test of Project SENTRI at Otay Mesa,
CA, meets with success, El Paso would be an excellent second
test site. The Committee directs the Customs Service to report
back with a plan to develop such a test in El Paso, including
an estimate of the cost of such a test; the construction and
equipment such a test would require; any legislative
impediments to initiating this test; and a timetable for
development and implementation. The Committee should receive
this report no later than February 1, 1997.

Nogales, AZ, Fence

The Committee provided funding to Customs for construction
of a fence in Nogales, AZ, to prevent smuggling. Work has
progressed on construction of this fence, which divides the
United States-Mexico border. Unique problems have arisen which
have made these funds inadequate to complete the job. Because
of the importance of this fence to antismuggling efforts, the
Committee has included necessary funds up to an additional
$500,000 to complete this project.

child pornography

The Committee is concerned that there has been steady and
significant decrease in the number of calls placed to the Child
Pornography Tipline. Tipline calls have, in the past, resulted
in a substantial number of successful prosecutions for child
pornography violations. The Committee, therefore, directs the
U.S. Customs Service to provide $50,000 from available funds to
promote public awareness for the Child Pornography Tipline in
fiscal year 1997. The Committee recommends that the U.S.
Customs Service coordinate this promotional effort with the
National Center for Missing and Exploited Children and the U.S.
Postal Service to ensure that the publicity is diversified and
effective.

operation and maintenance, air and marine interdiction programs

Appropriations, 1996.................................... \1\ $64,843,000
Budget estimate, 1997................................... 83,363,000
House allowance......................................... 83,363,000
Committee recommendation................................ 83,363,000

\1\ In fiscal year 1996, prior-year unobligated balances in support of
four air and marine interdiction operations accounts totaling
$20,101,000 supplemented the appropriation.

The Committee recommends an appropriation of $83,363,000
for operation and maintenance activities of the Customs air and
marine interdiction programs. This amount equals the budget
request and the House allowance.
The operation and maintenance, air and marine interdiction
programs will cover expenses incurred by the Customs Service
for operating and maintaining aircraft, boats, radar, and
equipment necessary to carry out its air and marine
interdiction missions. This account also includes operational
training, mission-related travel, and special operations
directly associated with the air and marine interdiction
programs. This account covers the essential costs associated
with operating and maintaining the military aircraft and
equipment that has been, and will continue to be, loaned to
Customs for use in its air interdiction mission.
The Customs Service is the frontline in drug interdiction.
The air and marine efforts compose a major element of the
country's firstline interdiction effort. In recent years the
strategy has changed, but the problem remains the same. The
Committee has iterated over and over how important air and
marine efforts are to deterring narcotics smuggling. These
efforts have proven extremely effective. The change in the drug
control strategy does not eliminate the need for continued
vigilance. The Committee continues to maintain a keen interest
in air and marine activities and reminds the Service that air
and marine interdiction are and shall be a top priority.

Air and Marine Operations

Through the years Customs has had to react to changing
smuggling modes. Air and marine interdiction methods have been
adjusted to challenge this ever changing threat. This effort
has proved effective through the years. Yet, vigilance remains
the watchword. Currently, emphasis is being placed on
interdiction efforts in Caribbean waters around Puerto Rico and
the United States Virgin Islands. Lessons learned from efforts
off the Florida coast have proved very successful. The
Committee reminds Customs that the threat can shift very
quickly, and that appropriate attention should be given to
ensure that the Florida coast is adequately covered by air and
marine assets.

Support of ATF Missions

The Committee has joined the House in terminating the
Bureau of Alcohol, Tobacco and Firearms air capabilities. The
ATF had acquired surplus military aircraft and appropriate
spare parts. A review has indicated that the need for the ATF
to own aircraft is not cost effective. The aircraft and spare
parts have been transferred to the Customs Service. The
Committee anticipates that Customs provide the highest priority
to support ATF air surveillance needs.

Air and Marine Interdiction Procurement

Committee recommendation

45,000,000

The Committee recommends an appropriation of $45,000,000
for acquisition of air resources to assist Customs in its air
interdiction effort. This amount is $45,000,000 above the
budget estimate and $17,000,000 above the House allowance.
The Committee intends the funding provided in this account
be used for the procurement and conversion of one P-3AEW
aircraft. This aircraft will complement current air assets used
in air detection and interdiction of illegal narcotics
smuggling.

customs services at small airports

(to be derived from fees collected)

Appropriations, 1996.................................... $1,406,000
Budget estimate, 1997................................... 2,406,000
House allowance......................................... 2,406,000

Committee recommendation

2,406,000

The Committee recommends an appropriation of $2,406,000 for
customs services at certain small airports. These services are
to be paid from user fees collected at each of these small
airports. The Committee funding recommendation for fiscal year
1997 for this account is the same as the budget request and the
House allowance.
The Trade and Tariff Act of 1984 (Public Law 98-573)
authorizes the U.S. Customs Service to impose user fees for
services at certain small airports where the volume or value of
business is insufficient to justify the availability of customs
services. The fee will be equal to the expenses incurred in
providing the services.
The legislation authorizes Customs to charge a fee for
services at certain designated airports and locations
designated by the Secretary of the Treasury. (The Governor of
the State in which such airport is located must also approve
the designation.)
Fees which are collected at each airport are deposited into
an account within the Treasury of the United States
specifically designated for that airport. The funds in the
account are only available for expenditures relating to the
provision of customs services at each airport, including
salaries and expenses of personnel employed to provide such
services.
Currently service is provided to 26 airports throughout the
country in this program. There are a number of cities with no
current Customs service, which have indicated interest in
entering into service agreements. In order to meet those
requests the Committee has increased the limitation and the
number of personnel available to be utilized in meeting the
increasing demand.

harbor maintenance fee collection

Appropriations, 1996.................................... $3,000,000
Budget estimate, 1997................................... 3,000,000
House allowance......................................... 3,000,000

Committee recommendation

3,000,000

The Committee concurs with the budget request and the House
action which provides $3,000,000 to be transferred from the
harbor maintenance trust fund to the Customs Service ``Salaries
and expenses'' appropriation.
The harbor maintenance fee was established to provide
resources to the Army Corps of Engineers for the improvement of
American channels and harbors. The fee is assessed on the value
of commercial imports and exports delivered to and from certain
specified ports. The fee is collected by the Customs Service
and deposited into the harbor maintenance trust fund. The
transferred funds will offset the costs incurred by Customs in
collecting these fees.

U.S. Mint

The Mint manufactures coins, receives gold and silver
bullion, safeguards the Government's holdings of monetary
metals, and refines gold and silver bullion. The manufacture of
domestic coins is the major activity of the Mint. Coins are
ordered from the Mint by the Federal Reserve banks in
quantities required for the country's business transactions.
Thus, the volume of the coinage program is determined by the
public need for coins. Public Law 104-52 established the U.S.
Mint public enterprise fund which authorizes the U.S. Mint to
use proceeds from the sale of coins to finance the cost of its
operations. The enactment of this legislation has eliminated
the need for future appropriations to support the mission of
the Mint.
In fiscal year 1997 the Mint will produce approximately 20
billion coins. This coinage production level represents an
increase of 3 million above that to be produced in fiscal year
1996.
The Committee requested the Mint to provide certain
information, as a result of the enactment of the enterprise
fund. The Mint has done an excellent job in presenting that
information in a format that is extremely helpful. The
Committee wishes to express its thanks to the Mint for its
responsiveness.

Bureau of Engraving and Printing

The Bureau of Engraving and Printing, the world's largest
securities manufacturing establishment, operates on the basis
of authority conferred upon the Secretary of the Treasury by 31
U.S.C. 321(a)(4) to engrave and print currency and security
documents. Additional authority is derived from past
appropriations made to the Bureau for work to be undertaken.
The operations of the Bureau are currently financed by means of
a revolving fund established in accordance with the provisions
of Public Law 81-656, August 4, 1950 (31 U.S.C. 5142). This
fund is reimbursed by other Government agencies for the direct
and indirect costs of the Bureau, including its administrative
expenses, incidental to performing the work or services
requisitioned.
Public Law 95-81, July 31, 1977 (31 U.S.C. 5142(c)(3))
increased the Bureau's fund and authorized the establishment of
reimbursement prices from customer agencies at a level intended
to provide funding for the acquisition of capital equipment and
future working capital. This should preclude future requests
for appropriations.
The Bureau designs, manufactures, and supplies most of the
major evidences of a financial character issued by the United
States. It is the sole source of U.S. currency, various public
debt instruments, as well as most other evidences of a
financial character issued by the United States, such as
postage stamps. The Bureau executes certain printings for
various territories administered by the United States,
particularly postage and revenue stamps. It conducts extensive
research and development programs for improving the quality of
products, reducing manufacturing costs, and for strengthening
deterrents to the counterfeiting of Government securities. It
manufactures inks and plates used for its products; purchases
materials, supplies, and equipment; provides maintenance
services for its buildings and plant machinery and equipment;
and stores and delivers its products in accordance with
requirements of customer agencies. The Bureau is responsible
for the accountability and destruction of its security waste
products. The Bureau also renders services to other Government
agencies such as security, custodial, and elevator services in
areas of its buildings occupied by another Treasury bureau.
The total cost of sales and services by the Bureau of
Engraving and Printing is estimated to be $574,000,000 in
fiscal year 1997, or an increase of $49,000,000 from the fiscal
year 1996 estimated level.
The budget estimates are determined primarily by two
factors; namely, (1) the volume of production of the various
items needed to meet the estimated requirements of customer
agencies, and (2) the unit cost of manufacturing each type of
item produced. The unit cost of production of each item
manufactured is developed through a detailed system of cost
accounting and adjusted to reflect all known factors which will
affect the cost of production during the current budget year.
Such factors include pay rate and material price increases
expected to occur during the current year, as well as estimated
savings resulting from improvements in production procedures.
No direct appropriation is required to cover the activities
of the Bureau.

Bureau of the Public Debt

administering the public debt

Appropriations, 1996.................................... $170,000,000
Budget estimate, 1997................................... 171,910,000
House allowance......................................... 165,335,000

Committee recommendation

165,335,000

The Committee recommends an appropriation of $165,335,000
for the Bureau of the Public Debt in fiscal year 1997. The
Committee recommendation equals the House allowance and is
$6,575,000 below the budget estimate.
The Bureau of the Public Debt is responsible for
administering the laws and regulations pertaining to public
debt financing and operations within the framework of policies
established by the Secretary of the Treasury. The Bureau's
primary concerns are with the issuance, servicing, and
retirement of public debt securities, and accounting for the
public debt and its related interest cost. It also has a
general responsibility for the conduct or direction of
transactions in public issues of those Government agencies for
which the Treasury acts as agent.
This appropriation currently provides funds for: the direct
operating costs of the Bureau of the Public Debt including the
Office of U.S. Savings Bonds; the payment of fees at stipulated
rates to financial institutions and others; and the payment of
postage and registry fees to the U.S. Postal Service for
delivering securities.
The Office of U.S. Savings Bonds is charged with reducing
Federal spending by promoting the sale and retention of U.S.
savings bonds. In addition to helping the U.S. Government
finance its debts in the least expensive and least inflationary
way possible, savings bonds provide Americans with an
effective, systematic way to save through the payroll savings
plan. The program is also intended to create a partnership of
direct participation of American business, labor, banking,
media, and community groups, as well as to provide the
opportunity for all citizens to voluntarily participate in the
financing of their Government.

Workload Estimates

The Committee recognizes that the Bureau has submitted
smaller budget requests each year for the past 4 years. The
Bureau has realized greater savings from its consolidation than
was originally forecast, and realized those savings sooner than
expected. The Committee also recognizes that some 30 percent of
Public Debt's budget is required to pay fees to financial
institutions for issuing and redeeming savings bond, as well
as, for postage to mail bonds to investors, workload that
Public Debt cannot control. The expenditures for savings bond
postage and fees depends on the numbers of savings bonds sold
and redeemed each fiscal year. Because of these factors, Public
Debt has ended each year with unobligated balances. These
balances amounted to almost $22,000,000 for fiscal years 1992-
95. The Committee encourages the Commissioner of the Public
Debt to continue to work toward refining workload estimates for
savings bonds sales and redemptions so as to minimize lapsed
appropriations, while assuring sufficient resources are
available to maintain the smooth operations of the savings bond
program.

Internal Revenue Service

summary

The Committee has recommended a total of $6,880,221,000 for
the Internal Revenue Service [IRS] in fiscal year 1997. This
amount is $1,114,937,000 below the budget estimate and
$467,991,000 below the enacted level for the three accounts
under the Internal Revenue Service.

processing, assistance, and management

Appropriations, 1996.................................... $1,723,764,000
Budget estimate, 1997................................... 1,779,663,000
House allowance......................................... 1,722,985,000

Committee recommendation

1,728,840,000

The Committee recommends an appropriation of $1,728,840,000
for processing tax assistance and management. This amount is
$50,823,000 below the fiscal year 1997 request and $5,885,000
above the House allowance.
The ``Processing, assistance, and management''
appropriation provides for processing tax returns and related
documents; assisting taxpayers in the correct filing of their
returns and in paying taxes that are due; protecting public
confidence in the integrity of the IRS; overall planning and
direction of the Internal Revenue Service; providing
administrative services and support for selected IRS
facilities; and management of the Service's financial resources
and procurement programs necessary to fulfill the Service's
mission in performing tax administration.
Mission statements of each of the program activities under
this account are as follows:
Returns processing.--Process tax returns, account for tax
revenues, issue refunds and tax notices, and provide tax
returns to the compliance functions.
Taxpayer services.--Inform taxpayers of their
responsibilities and provide services and information through
various media which assist them in meeting their obligations.
Inspection.--Promote public confidence in the integrity of
the IRS.
Management services.--Set policy direction and goals for
servicewide management, administration, strategic and
organizational planning, and development of human, logistical,
and financial resources required to accomplish the Service's
mission in performing tax administration.
Resources management.--Provide support to the national
office, service centers, submission processing sites, customer
service sites, and area distribution centers to assist program
functions in meeting their tax administration responsibilities.

Tax Returns Processing

The Committee has reduced funding in this account, but has
provided sufficient funding for processing of tax returns.
Whenever reductions are made, it is always the tendency for the
agency impacted to exclaim the worst case scenario. The
Committee has provided sufficient funding in this account for
tax return processing and states in the strongest possible
terms that those funds be used for processing tax returns.

Financial Management

The Committee agrees with the House that the IRS has yet to
develop adequate performance measures to justify budget
requests and that the IRS should develop a strategic plan to
measure cost and performance.
The Committee remains very concerned not only with the IRS
inability to adequately justify costs and performance, but the
Committee continues to remain very concerned about the
financial management of the IRS. Not only does the Committee
maintain serious reservations about the IRS's management of the
Tax Systems Modernization [TSM] Program, but a recent report
released by the GAO on July 11, 1996, raises even more
significant concerns about the financial management and
operation of the IRS.
According to a General Accounting Office [GAO] report
released July 11, 1996, the GAO found, ``material weaknesses in
internal controls resulted in ineffective control over
safeguarding assets from material loss, assuring material
compliance with laws governing the use of budget authority and
with other relevant laws and regulations, and assuring that
there were no material misstatements in the Principal Financial
Statements.'' These conclusions resulted from five financial
managerial problems that prevented the GAO from attesting to
the reliability of the IRS's past four fiscal year financial
statements. The Committee is greatly disturbed by the five
problems that the GAO identified as obstacles to a credible and
reliable audit of the IRS. The GAO found:
(1) The amounts of total revenue ($1.4 trillion) and tax
refunds ($122,000,000,000) cannot be verified or reconciled to
accounting records maintained for individual taxpayers in the
aggregate.
(2) The amounts reported for various types of taxes
collected (Social Security, income, and excise taxes, for
example) cannot be substantiated.
(3) The reliability of reported estimates of
$113,000,000,000 for valid accounts receivable and
$46,000,000,000 for collectible accounts receivable cannot be
determined.
(4) A significant portion of IRS' reported $3,000,000,000
in nonpayroll operating expenses cannot be verified.
(5) The amounts IRS reported as appropriations available
for expenditure for operations cannot be reconciled fully with
Treasury's central accounting records showing these amounts,
and hundreds of millions of dollars in differences have been
identified.
The report further found that the IRS had only met 17 of
the 59 recommendations that the GAO had made in prior years to
resolve IRS financial management problems.
Reports issued by the National Research Council and General
Accounting Office have also found little progress in addressing
serious management deficiencies in the TSM program.
The report required of the General Accounting Office by
Public Law 104-52, the Fiscal Year 1996 Treasury Appropriations
Act reviewed the May 6, 1996, Treasury Department report to
determine if IRS had corrected the deficiencies identified by
GAO's April 1995 report to Congress. On June 7 the GAO provided
the Committee with its assessment and acknowledged that the IRS
is moving in the right direction. However, the GAO also stated:

* * * the IRS still does not have (1) effective
strategic information management practices needed to
mandate TSM as an investment, (2) mature and
disciplined software development processes needed to
assure that systems architecture that is detailed
enough to guide and control systems development, and
(4) a schedule for accomplishing any of the above * * *

These findings further reinforce the Committee's lack of
confidence in IRS budget justifications. IRS's representations
of the cost of ongoing program operations, as well as the TSM
program. In addition, these reports make clear that the IRS has
failed to make sufficient progress in addressing financial
management problems. Accordingly, while the Committee has
provided additional funding above the House allowance of
$163,023,000 to cover what the Committee believes to be the
cost of operating information systems such as the Legacy
system, Scrips, Telefile, tollfree number, and electronic fraud
detection programs, the Committee expects the IRS to certify to
the Committee its progress in meeting the remaining 42 GAO
recommendations referred to in the July 11, 1996, GAO report
before this funding is made available. In addition, the
Committee further expects the IRS to clarify current operating
programs from TSM programs. The Committee encountered
significant difficulties obtaining sufficient information to
determine which programs should properly be funded as part of
operating information systems and those properly considered TSM
programs.

IRS STAFFING PLANS

The Committee continues to support adequate staffing levels
for effective tax administration and supports the staffing
plans for the Internal Revenue Service facilities in the
communities of Martinsburg and Beckley, WV. Therefore, the
Committee urges the IRS, within the constraints of the fiscal
year 1997 funding levels, to make only minimal, if any,
staffing reductions at the Martinsburg National Computer Center
and the programmed level at the Administrative Services Center
in Beckley, WV.

tax counseling for the elderly

The Committee once again believes that the Tax Counseling
Program for the Elderly has proven to be most successful. To
meet the goals of this program, $3,700,000 is included within
the aggregate amount recommended by the Committee for
processing tax returns and assistance in fiscal year 1997. This
amount represents the same level as provided for this program
in fiscal year 1996. To ensure that the full effect of the
program is accomplished, the IRS is directed to cover
administrative expenses within existing funds.

Taxpayer Service in Alaska and Hawaii

In May 1995 the IRS announced a national plan to centralize
and consolidate its organizational structure. As a result of
this consolidation, residents in Alaska and Hawaii have been
adversely impacted regarding taxpayer education. Personnel
involved full time in these efforts are located in mainland
offices. Accessibility to assistance is important in our
voluntary tax system. The geographical location of both Alaska
and Hawaii, as well as, both States having sizable communities
which do not speak English as a first language cause unique
problems. Cultural differences complicate the most basic
taxpayer instruction performed by the IRS and its voluntary
income tax assistance [VITA] volunteers. The Committee believes
that the IRS should further promote tax compliance and help
assist taxpayer relations with the IRS by placing one full-time
GS-11 level tax education specialist in each State.

Tax Exempt Organizations and the Tour Industry

There is an increasing growth in the number of tax exempt
organizations engaging in commercial activities, particularly
in travel and tour promotion activities. This trend has
highlighted ambiguities to the definition of what is and is not
substantially related to the exempt function of an exempted
organization. The Committee directs the IRS to review this
situation and take steps, if necessary, to develop regulations
clarifying the substantially related test as it applies to tax
exempt travel and tour activities.

tax law enforcement

Appropriations, 1996.................................... $4,097,294,000
Budget estimate, 1997................................... 4,527,821,000
House allowance......................................... 4,052,586,000

Committee recommendation

4,085,355,000

The Committee recommends an appropriation of $4,085,355,000
for tax law enforcement activities in fiscal year 1997. This
amount is $442,466,000 below the budget estimate and
$32,769,000 above the House allowance.
The ``Tax law enforcement'' appropriation provides for the
examination of tax returns, both domestic and international,
and the administrative and judicial settlement of taxpayer
appeals of examination findings. It also provides for technical
rulings, monitoring employee pension plans, determining
qualifications of organizations seeking tax-exempt status,
examining tax returns of exempt organizations, enforcing
statutes relating to detection and investigation of criminal
violations of the internal revenue laws, collecting unpaid
accounts, compiling statistics of income and compliance
research, and securing unfiled tax returns and payments.
The examination activity encourages voluntary compliance
with the internal revenue laws through the determination of
correct tax liability by the selective examination of tax
returns, the correction of errors, and explanation of these
corrections to taxpayers.
The appeals, tax litigation, and technical activity, under
the Office of the Chief Counsel, is primarily involved with
those cases in which taxpayers disagree with examination
results. The appeals function provides an independent
administrative review with the objective of reaching impartial
settlement.
The tax fraud and financial investigations activity is
responsible for investigating criminal violations of the
Internal Revenue laws. It investigates cases of suspected
intent to defraud, recommends prosecution as warranted, and
assists in the preparation and trial of criminal tax cases. In
addition, financial investigations expose money laundering
schemes through a variety of methods, including currency
transaction reports.
The collection activity collects unpaid accounts, as well
as securing unfiled tax returns and payments. It develops and
implements programs to prevent tax accounts from becoming
delinquent; determines and analyzes reasons for tax accounts
that become delinquent; and develops, implements, and measures
programs that analyze the reasons for types and degrees of
nonfiling.
The statistics of income activity publishes statistics of
income reports on the operation of income tax laws, as required
by the Internal Revenue Code for the Congress and its
committees; for administrative use by the Secretary of the
Treasury and the Commissioner of Internal Revenue; and for the
Federal benchmark statistical programs on income, wealth, and
finance.
The employee plans and exempt organizations activity
monitors private pension plans to ensure compliance with the
Employee Retirement Income Security Act of 1974, as amended.
Organizations apply for tax-exempt status, which is determined
by this activity, through the application of certain tests. By
monitoring tax returns of tax-exempt organizations, it monitors
and ensures compliance with current tax laws regarding tax-
exempt organizations.
The international activity is responsible for directing IRS
enforcement and assistance programs as they relate to U.S.
taxpayers performing business or residing outside the
continental United States and nonresident aliens with U.S. tax
obligations.
This activity also provides technical tax training and
administrative assistance to foreign governments and provides
compliance and taxpayer service support to Puerto Rico, the
Virgin Islands, and certain Pacific island jurisdictions.
The document matching activity processes information
returns such as wage, dividend, and interest statements with
related individual income tax returns. This activity enables
the IRS to identify income reporting discrepancies,
unsubstantiated deductions, the nonfiling of tax returns, and
to verify facts and amounts in question through taxpayer
contact.

Taxpayer Protection

The Committee remains concerned that taxpayers receive
adequate protection from undue enforcement actions particularly
when no intentional misconduct is alleged by the IRS. The
Committee intends to continue to ensure that taxpayers rights
are being respected by the IRS and that taxpayers are treated
equitably under the law.

Revenue Protection Initiative

The budget requested $359,000,000 for the revenue
protection initiative. This is the third year the
administration has requested funds for this collection
initiative. In fiscal year 1995 these funds were provided
outside the budget caps. Since that time, Congress has
determined that this initiative should be inside the caps. The
Committee allocation does not provide for an increase of this
size, and, therefore, this funding request has not been acted
upon.

information systems

Appropriations, 1996.................................... $1,527,154,000
Budget estimate, 1997................................... 1,687,674,000
House allowance......................................... 1,077,450,000

Committee recommendation

1,240,473,000

The Committee recommends an appropriation of $1,240,473,000
for information systems activities in fiscal year 1997. The
Committee recommendation is $447,201,000 below the budget
request and $163,023,000 above the House allowance.
The ``Information systems'' appropriation provides for
servicewide data processing support, including the evaluation,
development, and implementation of computer systems, software,
and hardware requirements.
Tax systems modernization (modernized developmental
systems).--This activity provides for major redesign and
acquisition of the basic information systems infrastructure
needed to achieve a fully integrated framework for tax
administration operations. This includes implementing a
redesigned tax administration system, developing a target
architecture, replacing equipment at major field installations,
and executing other major redesign efforts.
Modernized operational.--This activity includes those tax
systems modernization projects that have advanced from the
developmental phase of activity to an operational mode after
servicewide implementation and acceptance.
Services and compliance.--This activity provides automation
support for the processing, assistance and management, and tax
law enforcement appropriations. The systems in this activity
direct IRS compliance and enforcement programs including:
examining tax returns, collecting unpaid accounts, securing
delinquent returns, investigating tax fraud, resolving tax
disputes, and determining tax liability status or exemption of
organizations. This activity also provides automation support
for processing tax and information returns, issuing refunds and
notices, accounting for tax revenue, and assisting taxpayers
with their tax obligations.
Support systems.--This activity provides automation support
for all IRS administrative programs, including management and
financial information, logistics, payroll and personnel, and
internal audit and security automation. This activity also
provides the support that ensures the efficient functioning of
payroll and personnel systems, financial systems, resource
inventory systems, and quality assurance efforts.

Tax Systems Modernization

The Committee has included language fencing new funds for
TSM until the Secretary of the Treasury certifies to Congress
in writing that responsible IRS program management offices, as
well as IRS TSM contractors, have attained a software
acquisition and software development capability equivalent to
level 3 of the software capability maturity model [SW-CMM] and
software acquisition capability maturity model [SA-CMM]
developed by the Software Engineering Institute at Carnegie-
Mellon University. Effective development and acquisition of
sophisticated and complex software is mandatory for the success
of TSM. Independent reviews of the TSM program by the General
Accounting Office, the National Research Council, and others,
as well as testimony before various committees of Congress,
consistently conclude that one of the most serious problems
with IRS management of TSM is inadequate technical management
capability. IRS program management simply lacks the required
capability and organized processes to successfully manage the
development and acquisition of the sophisticated and complex
software necessary to TSM. Likewise, although some remedial
steps have been taken, the IRS has contracted for software
development and acquisition with contractors which themselves
lack the required development and acquisition capability, or
have not been required by the IRS to exercise the necessary
rigor in developing and acquiring TSM software. The Software
Engineering Institute at Carnegie-Mellon University is the
recognized leader nationwide in analyzing and describing the
activities, discipline, and processes involved in software
development and acquisition. Their widely accepted and
acclaimed SA-CMM and SW-CMM define levels of organizational
software development and acquisition capability and provide a
means of assessing an organization's capability in this regard.
Those who have reviewed TSM, including the IRS, uniformly agree
that IRS software development and software acquisition
capability are currently at CMM level 1, the lowest defined
level characterized by undisciplined, undocumented,
nonrepeatable processes resulting in virtual chaos. The
Committee believes that to successfully carry out a program the
size and complexity of TSM, the IRS must attain a capability
level of at least CMM level 3, a level at which processes are
defined, stable, disciplined, coherently integrated, and
visible to management. With appropriate management attention,
the Committee believes the IRS will be able to achieve this
level of capability, and that the required certification by the
Secretary of the Treasury is important to assure this result.

Tax Processing Service Centers

The Committee intends that the consolidation of IRS tax
processing service centers should continue to ensure that the
full consolidation will be completed in time for the 1998 tax
season. The Committee has provided the IRS $46,000,000 for this
purpose.

NATIONAL ARCHIVES AND RECORDS ADMINISTRATION ACCESS TO IRS RECORDS

The Committee supports the efforts of the National Archives
and Records Administration [NARA] and the Internal Revenue
Service [IRS] to reach an agreement concerning NARA access to
certain IRS records, restricted under 26 U.S.C. 6103, for
appraisal and evaluation purposes, including former IRS
Commissioners' and Executive Secretariat records and Criminal
Investigation Division [CID] case files. The Committee requests
a joint report from IRS and NARA by February 1, 1997, which
shall include an analysis of outstanding issues and make
recommendations on how to handle the disposition of archival
materials should proceed.

Electronic Federal Tax Payment System

The Committee has been made aware of a possible problem
with regard to implementation of the electronic Federal tax
payment system [EFTPS]. EFTPS is replacing Taxlink, the pilot
electronic payment system which is being phased out. The IRS
has notified users that EFTPS will have two different filing
periods, one for bulk filers, who are defined as a service
bureau who files more than 1,000 tax deposits in a single day.
Bureaus with this status have a 72-hour enrollment period. All
other filers are required to file using form 9779 which takes 8
to 12 weeks to process. It would appear that this decision by
the IRS adversely impacts small businesses. There are many
parts of the country serviced by service bureaus which cannot
meet the 1,000 deposits a day requirements. Those businesses
and taxpayers should not be penalized because of their size.
The Committee is supportive of the goals of EFTPS, but directs
the IRS to review this decision considering the impact on small
service bureaus.

(Rescission)

Appropriations, 1996.................................... $1,527,154,000
Budget estimate, 1997...................................................
House allowance......................................... -174,447,000

Committee recommendation

-174,447,000

The Committee has rescinded $174,447,000 from funds
appropriated for tax systems modernization [TSM] from previous
years. To offset the fiscal year 1996 supplemental for ATF's
church fire investigations the Committee further rescinds
$16,500,000 from unobligated fiscal year 1996 funds (included
in title VII).

irs--administrative provisions

The Committee has recommended approval of the following
administrative provisions for the Internal Revenue Service.
Section 101 authorizes the IRS to transfer up to 5 percent
of any appropriation made available to the agency in fiscal
year 1997, to any other IRS account. The IRS is directed to
follow the Committee's reprogramming procedures outlined
earlier in this report.
Section 102 is a provision which maintains a training
program in taxpayer's rights and cross-cultural relations.

U.S. Secret Service

salaries and expenses

Appropriations, 1996.................................... $531,944,000
Budget estimate, 1997................................... 516,182,000
House allowance......................................... 528,368,000

Committee recommendation

519,265,000

The Committee recommends an appropriation of $519,265,000
for the U.S. Secret Service in fiscal year 1997. This amount is
$3,083,000 above the budget estimate and $9,103,000 below the
House allowance.

secret service functions

Investigations, protection, and uniformed activities.--The
Service must provide for the protection of the President of the
United States, members of his immediate family, the President-
elect, the Vice President, or other officer next in the order
of succession to the Office of the President, and the Vice
President-elect, and the members of their immediate families
unless the members decline such protection; protection of the
person of a visiting head and accompanying spouse of a foreign
state or foreign government and, at the direction of the
President, other distinguished foreign visitors to the United
States and official representatives of the United States
performing special missions abroad; the protection of the
person of former Presidents, their spouses and minor children
unless such protection is declined. The Service is also
responsible for the detection and arrest of persons engaged in
counterfeiting, forging, or altering of any of the obligations
or other securities of the United States and foreign
governments; the investigation of thefts and frauds relating to
Treasury electronic fund transfers; fraudulent use of debit and
credit cards; fraud and related activity in connection with
Government identification documents; computer fraud; food
coupon fraud; and the investigation of personnel, tort claims,
and other criminal and noncriminal cases.
The Secret Service Uniformed Division protects the
Executive Residence and grounds in the District of Columbia;
any building in which White House offices are located; the
President and members of his immediate family; the official
residence and grounds of the Vice President in the District of
Columbia; the Vice President and members of his immediate
family; foreign diplomatic missions located in the Washington
metropolitan area; and the Treasury Building, its annex and
grounds, and such other areas as the President may direct on a
case-by-case basis.
Presidential candidate protective activities.--The Secret
Service is authorized to protect major Presidential and Vice
Presidential candidates, as determined by the Secretary of the
Treasury after consultation with an advisory committee. In
addition, the Service is authorized to protect the spouses of
major Presidential and Vice Presidential candidates; however,
such protection may not commence more than 120 days prior to
the general Presidential election.

Anticounterfeiting Efforts

The Committee strongly supports the increased overseas
anticounterfeiting efforts of the Secret Service during fiscal
years 1995 and 1996. The Committee recognized the dramatic
growth of international counterfeiting and acted to combat this
by providing additional resources to the Secret Service to
expand its number of foreign offices, as well as, increase its
personnel at existing overseas posts. Of the seven new offices
identified as being needed by the Service during 1995, only
Mexico City and Moscow remain unopened. The other five have
either been established or are in the process of being opened.
Of the existing foreign offices where additional personnel
slots were requested, only Manila and Bangkok have not provided
for additional Secret Service personnel. While the Committee is
appreciative of the joint effort by the Departments of State
and Treasury in assisting the Service to combat this serious
problem, it urges both to act in an expeditious manner to
establish the Secret Service offices in Moscow and Mexico City.
Further, it encourages the Department of the Treasury to work
with the Department of State to provide the Service with
additional personnel slots at previously identified foreign
locations. The Committee firmly believes that we must address
international counterfeiting now if we are to preserve the
integrity of our financial system. The deployment of these
additional Secret Service agents is a critical first step in
this endeavor. Further delay will only serve to increase the
danger to our monetary system and slow our progress in
combating this crime.

Missing and Exploited Children

The Committee has included funding from the violent crime
trust fund for the Service's operational costs of the Exploited
Child Unit, associated with its continued efforts with the
National Center for Missing and Exploited Children.

acquisition, construction, improvement and related expenses

Appropriations, 1996....................................................
Budget estimate, 1997................................... $29,165,000
House allowance......................................... 31,298,000

Committee recommendation

29,165,000

The Committee recommends an appropriation of $29,165,000
for the ``Acquisition, construction, improvement and related
expenses'' account in fiscal year 1997. This amount equals the
budget estimate and is $2,133,000 below the House allowance.
The administration has requested to create a new account
for the Secret Service. This account is intended to be utilized
by the Service as it prepares for occupying its new
headquarters facility, as well as minor repair activities at
the Rowley Training Center.
In fiscal year 1996 funds for these purposes were included
in the ``Repair and maintenance of the Treasury Building and
annex'' account.

DEPARTMENT OF THE TREASURY

General Provisions

The Committee recommends that certain general provisions be
included in the Senate bill. The provisions do the following:
Section 111 pertains to reprogramming instructions for
unobligated funds.
Section 112 authorizes certain basic services within the
Treasury Department in fiscal year 1997, including purchase of
uniforms; maintenance, repairs, and cleaning; purchase of
insurance for official motor vehicles operated in foreign
countries; and contracts with the Department of State for
health and medical services to employees and their dependents
serving in foreign countries.
Section 113 establishes certain codes of conduct for
employees of the Internal Revenue Service in carrying out their
tax collection duties.
Section 114 requires the IRS to institute policies and
procedures to safeguard the confidentiality of taxpayer
information.
Section 115 requires that funds provided to ATF for fiscal
year 1997 will be expended in such a manner so as not to
diminish enforcement efforts with respect to section 105 of the
Federal Alcohol Administration Act.
Section 117 provides $13,000,000 in IRS funding to continue
the current contract for private sector debt collection and
transfers another $13,000,000 to the ``Departmental offices''
appropriation to initiate a second contract.
Section 119 provides a clarification as to requirements of
Federal firearms licensees conducting business in curios and
relics away from their place of business.
TITLE II--U.S. POSTAL SERVICE

Payment to the Postal Service Fund

Appropriations, 1996.................................... $85,080,000
Budget estimate, 1997................................... 102,817,000
House allowance......................................... 85,080,000

Committee recommendation

90,433,000

The Committee has recommended an appropriation of
$90,433,000 in fiscal year 1997 for payment to the Postal
Service fund. This amount is $12,384,000 below the President's
budget request and $5,353,000 above the House allowance.
Revenue forgone on free and reduced-rate mail enables
postage rates to be set at levels below the unsubsidized rates
for certain second-class, third-class, and fourth-class mail as
authorized by subsections (c) and (d) of section 2401 of title
39, United States Code. Free mail for the blind and overseas
voters will continue to be provided at the funding level
recommended by the Committee.
The funding provided by the Committee is allocated for the
following purposes: $61,433,000 for free mail for the blind and
overseas voters and $29,000,000 for the reimbursement to the
Postal Service for subsidies provided for the revenue forgone
program.
The Committee recognizes the congressional obligation to
fund revenue forgone, however, budget limitations force the
Committee to not fund the reconciliation adjustment requested
in the budget.
The Committee has concurred with the House by including
provisions in the bill that would assure that mail for overseas
voting and mail for the blind shall continue to be free; that
6-day delivery and rural delivery of mail shall continue at the
1983 level; and that none of the funds provided be used to
consolidate or close small rural and other small post offices
in fiscal year 1997. These are services that must be maintained
in fiscal year 1997 and beyond. The Committee believes that,
despite the lack of public service appropriations, these
critical postal services are the linchpin of services that the
public deserves and expects.

pest introductions

The Committee directs the Postal Service to continue its
work with the U.S. Department of Agriculture and the Hawaii
Department of Agriculture.
This effort is directed at combating the recent
introduction of plant and animal pests and diseases into the
State of Hawaii through the U.S. mail system. Such
introductions have severe consequences for U.S. agriculture,
biodiversity, and public health and safety.

Postal Service Recycling Hotline

Since 1992, the Postal Service and other Government
agencies have been encouraged to participate in programs with
the private sector to effectively reduce environmental
degradation from items sent through the mail which could be
recycled. The Postal Service, heeding this mandate, has worked
to expand the successful regional environmental/recycling
hotline to a nationwide network. Ensuring the long-term success
of the environment/recycling hotline's public/private
partnership, which advises consumers how and where to dispose
of excess paper (mail) and other products, will specifically
make mail more environmentally friendly. This will achieve
environmental goals while still permitting the Postal Service
to realize its revenue objectives. The Committee, therefore,
urges the Postal Service to participate in this innovative
public/private partnership for the benefit of the Nation's
environment and report to the Committee within 60 days within
enactment of this legislation.

Eppley Air Mail Facility

The Committee directs the Postal Service to consider the
modification of the Eppley air mail facility to ease congestion
and increase efficiency in regard to air carriers pickup and
delivery of mail. The Committee requests the Postal Service
report to the Committee within 60 days of enactment of this
legislation.

Sorting Requirements

The Committee urges the Postal Service to review a possible
waiver of the six-piece-minimum bag requirement that went into
effect in most areas on July 1, 1996, for newspapers. Failure
to allow under six bagging to continue sharply reduces the
ability of second-class mail to be received in a timely manner
to those who do not live in the newspaper's community. That
will undermine the ability of people to receive newspapers from
communities where they used to live, undermine the financial
viability of America's smaller newspapers, and reduce postal
revenue. It makes the exceptional dispatch system unworkable
for many small newspapers. The Committee directs the Postal
Service to submit a report in writing on this subject within 60
days of enactment.
TITLE III--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO
THE PRESIDENT

Summary

The President's fiscal year 1997 budget request for the 14
accounts funded under this title totals $286,339,000. This
amount is $7,095,000 above the total fiscal year 1996
appropriations.
These 14 accounts include: Compensation of the President,
Office of Administration, the White House Office, the Executive
Residence at the White House, the Official Residence of the
Vice President, Special Assistance to the President, the
Council of Economic Advisors, the Office of Policy Development,
the National Security Council, the Office of Management and
Budget, the Office of National Drug Control Policy, high-
intensity drug trafficking areas, and unanticipated needs. For
accounts included in this title, the Committee recommends a
total funding level of $286,339,000 for fiscal year 1997, equal
to the total funding level requested by the President.

computer systems modernization

The Committee has funded requests from the White House in
previous years for modernizing computer systems. The Committee
feels that the President should be provided with the support to
operate at the highest levels of efficiency. However, it is
necessary to have a plan and blueprint for modernization
efforts, so that computer equipment is not procured for the
sake of being state of the art. The Committee has included the
funding the President has requested for automation
enhancements, but has fenced all funding pending the submission
and approval of a modernization blueprint.

Compensation of the President

Appropriations, 1996.................................... $250,000
Budget estimate, 1997................................... 250,000
House allowance......................................... 250,000

Committee recommendation

250,000

The fiscal year 1997 budget request for compensation of the
President is $250,000. This amount includes $200,000 for the
direct salary of the President as authorized by 3 U.S.C. 102,
and a $50,000 expense account for official expenses, with any
unused portions reverting to the Treasury. This expense account
is not considered as taxable to the President.
The Committee concurs with the House in recommending the
full budget request of $250,000 for compensation of the
President.

The White House Office

salaries and expenses

Appropriations, 1996.................................... $39,459,000
Budget estimate, 1997................................... 40,193,000
House allowance......................................... 40,193,000

Committee recommendation

40,193,000

The Committee recommends an appropriation of $40,193,000
for the White House Office. The Committee recommendation equals
the budget estimate and the House allowance.
These funds provide the President with staff assistance and
provide administrative services for the direct support of the
President. Public Law 95-570 authorizes appropriations for the
White House Office and codifies the activities of the White
House Office.

Staffing of the EOP

Shortly after the President took office in 1993, the then
Chief of Staff garnered tremendous press coverage when he
announced that the White House would reduce staffing by 25
percent below that of President Bush's White House. The major
portion of the reduction in the Executive Office of the
President came by returning detailees to their agencies and
reducing the Office of National Drug Control Policy [ONDCP]
from 150 to 25 positions. The reason for this reduction was
that the Office would be much more effective with a smaller
cadre. That reasoning is evidently faulty, because the fiscal
year 1997 budget asks that the ONDCP be increased to 154
positions.
The new Director of the ONDCP has indicated that this is
the number of positions necessary to provide the leadership in
antidrug efforts. The Committee is committed to working with
the Director, and eagerly awaits the administration's proposal
for maintaining the percentage of the staffing reductions in
the EOP.

Executive Residence at the White House

operating expenses

Appropriations, 1996.................................... $7,827,000
Budget estimate, 1997................................... 7,827,000
House allowance......................................... 7,827,000

Committee recommendation

7,827,000

The Committee recommends an appropriation of $7,827,000 for
the Executive Residence at the White House. The Committee
recommendation equals the budget estimate and the House
allowance.
These funds provide for the care, maintenance,
refurnishing, improvement, heating, and lighting, including
electrical power and fixtures, of the Executive Residence.
The Executive Residence staff provides for the operation of
the Executive Residence. A staff of 36 domestic employees
accomplish general housekeeping, prepare and serve meals, greet
visitors, and provide services as required in support of
official and ceremonial functions. A staff of 33 tradespersons,
including plumbers, carpenters, painters, on a single shift;
electricians on a double shift; and operating engineers on a
24-hour basis, maintains and makes repairs, minor
modifications, and improvements to the 132 rooms and the
mechanical systems, and provides support for official and
ceremonial functions.
A staff of 12 specialized employees provide services
necessary to the operation of the White House and official and
ceremonial functions. This staff includes four florists, four
curators, and four calligraphers.
An administrative staff consists of the chief usher, four
assistant ushers, one executive grounds superintendent, one
operating accountant, and one administrative officer. This
staff is charged with management and administrative functions
of the Executive Residence. This requires coordination with the
Executive Office of the President, the National Park Service,
the military, the U.S. Secret Service, the General Services
Administration, and other agencies.
During larger events, the Executive Residence staff is
assisted by contract personnel under personal services contract
agreements (service by agreement) to provide additional help as
required for official and ceremonial functions.

Special Assistance to the President

salaries and expenses

Appropriations, 1996.................................... $3,280,000
Budget estimate, 1997................................... 3,280,000
House allowance......................................... 3,280,000

Committee recommendation

3,280,000

The Committee recommends an appropriation of $3,280,000 for
special assistance to the President. The Committee
recommendation equals the budget estimate and the House
allowance.
The ``Special assistance to the President'' account was
established on September 26, 1970, to enable the Vice President
to provide assistance to the President. This assistance takes
the form of directed and special presidentially assigned
functions.
The objective of the Office of the Vice President is to
efficiently and effectively advise, assist, and support the
President in the areas of domestic policy, national security
affairs, counsel, administration, press, scheduling, advance,
special projects, and assignments. Assistance is also provided
for the wife of the Vice President.
The Vice President also has a staff funded by the Senate to
assist him in the performance of his duties in the legislative
branch.
The level of funding recommended by the Committee will
allow for 21 full-time permanent positions in fiscal year 1997
or the same as funded in fiscal year 1996.

Official Residence of the Vice President

operating expenses

Appropriations, 1996.................................... $324,000
Budget estimate, 1997................................... 324,000
House allowance......................................... 324,000

Committee recommendation

324,000

The Committee recommends an appropriation of $324,000 for
the official residence of the Vice President. This amount
equals the budget estimate and the House allowance.
The ``Official Residence of the Vice President
(residence)'' account was established by Public Law 93-346 on
July 12, 1974. The residence is located on the grounds of the
Naval Observatory in the District of Columbia and serves as a
facility for official and ceremonial functions and as a home
for the Vice President and his family.
The objective of the ``Residence'' account is to provide
for the care of, operation, maintenance, refurnishing,
improvement, and heating and lighting of the residence and to
provide such appropriate equipment, furnishings, dining
facilities, services, and provisions as may be required to
enable the Vice President to perform and discharge the duties,
functions, and obligations associated with his high office.
Funds to renovate the residence are provided to the
residence through the Department of the Navy budget. The
Committee has had a longstanding interest in the condition of
the residence and expects to be kept fully apprised by the Vice
President's office of any and all renovations and alterations
made to the residence by the Navy.
The funding level provided by the Committee will support
one full-time equivalent position or the same level as funded
in fiscal year 1996.

Council of Economic Advisers

salaries and expenses

Appropriations, 1996.................................... $3,180,000
Budget estimate, 1997................................... 3,439,000
House allowance......................................... 3,439,000

Committee recommendation

3,439,000

The Committee recommends an appropriation of $3,439,000 for
salaries and expenses of the Council of Economic Advisers. The
Committee recommendation equals the budget estimate and the
House allowance.
The activities of the Council are set forth in the
Employment Act of 1946. They include the following: To assist
and advise the President in the preparation of the ``Economic
Report''; to gather and analyze timely information concerning
current and prospective economic developments and report
regularly to the President on the relationship of these
developments to the achievement of maximum employment,
production, and purchasing power as prescribed in the act; to
appraise and report to the President on the extent to which the
various programs and activities of the Federal Government
contribute to the carrying out of the purposes of the act; to
develop and recommend to the President national economic
policies to foster and promote competitive enterprise, to avoid
economic fluctuations, and to maintain maximum employment,
production, and purchasing power; and to make such studies,
reports, and recommendations on Federal economic policy and
legislation as the President may request.
In carrying out these duties, the Council consults
regularly with other Government agencies and departments, as
well as the Congress, and representatives of business, labor,
consumers, agriculture, State, and local governments, and the
economics profession. In addition, the members and staff of the
Council are frequently called upon to serve on Cabinet Council
working groups in a wide variety of fields.
Included in the Council's staff is a statistical unit which
is responsible for the monthly publication ``Economic
Indicators'' and the preparation of the statistical material in
the annual ``Economic Report of the President,'' as well as for
providing continuous assistance to the Council and professional
staff.

Office of Policy Development

salaries and expenses

Appropriations, 1996.................................... $3,867,000
Budget estimate, 1997................................... 3,867,000
House allowance......................................... 3,867,000

Committee recommendation

3,867,000

The Committee recommends $3,867,000 for the Office of
Policy Development. The Committee recommendation equals the
budget estimate and the House allowance.
The Office of Policy Development supports the National
Economic Council and the Domestic Policy Council, in carrying
out their responsibilities to advise and assist the President
in the formulation, coordination, and implementation of
economic and domestic policy. The Office of Policy Development
also provides support for other domestic policy development and
implementation activities as directed by the President.

National Security Council

salaries and expenses

Appropriations, 1996.................................... $6,648,000
Budget estimate, 1997................................... 6,648,000
House allowance......................................... 6,648,000

Committee recommendation

6,648,000

The Committee recommends an appropriation of $6,648,000 for
the salaries and expenses of the National Security Council
[NSC]. The Committee recommendation equals the budget estimate
and the House allowance.
The primary purpose of the Council is to advise the
President with respect to the integration of domestic, foreign,
and military policies relating to the national security.
Subject to direction by the President, it is the responsibility
of the Council to assess and appraise the objectives,
commitments, and risks of the United States in relation to
actual and potential military power, to consider policies on
matters of common interest to the departments and agencies of
the Government, and to make recommendations and other reports
to the President.
The funding level provided by the Committee will support 60
full-time equivalent positions or the same as the fiscal year
1996 level for the normal activities of the NSC.

Office of Administration

salaries and expenses

Appropriations, 1996.................................... $25,736,000
Budget estimate, 1997................................... 26,100,000
House allowance......................................... 26,100,000

Committee recommendation

26,100,000

The Committee recommends an appropriation of $26,100,000
for the Office of Administration in fiscal year 1997. The
Committee recommendation equals the budget estimate and the
House allowance.
The Office of Administration [OA] was created by
Reorganization Plan No. 1 of 1977 and formally established by
Executive Order 12028. The purpose of the Office of
Administration provides financial and personnel management
services, information management, library and records
management services, and general services support to all
agencies within the Executive Office of the President [EOP] and
upon request, services in direct support of the President.
The Office of Administration is composed of six functional
divisions which are: Personnel Management Division, Financial
Management Division, Administrative Operations Division,
Library and Research Services Division, the Information
Services and Technology Division, and Facilities Management
Division.

Office of Management and Budget

salaries and expenses

Appropriations, 1996.................................... $55,573,000
Budget estimate, 1997................................... 55,573,000
House allowance......................................... 55,573,000

Committee recommendation

55,573,000

The Committee recommends an appropriation of $55,573,000.
The Committee recommendation equals the budget estimate and the
House allowance.
The Office of Management and Budget [OMB] assists the
President in the discharge of his budgetary, management, and
other executive responsibilities.
National security and international affairs; general
government; natural resources, energy, and science; human
resources; and health and personnel.--Agency programs, budget
requests, and management activities are examined,
appropriations are apportioned, proposed changes in agency
functions are studied, and special analyses aimed at
establishing goals and objectives that would result in long-
and short-range improvements in the agencies' financial,
administrative, and operational management are conducted.
Implementation of Governmentwide policies as developed by the
statutory management offices is carried out. Governmentwide
supply and facility acquisition, credit and cash management,
and personnel management policies are evaluated. Also,
leadership and support is provided for program evaluation and
Federal-State-local relations.
Director's office/OMB-wide offices.--Executive direction
and coordination for all Office of Management and Budget
activities is provided. This includes the Director's immediate
office as well as staff support in the areas of administration,
public affairs, legislative reference, legislative affairs,
economic policy, budget review, and general counsel. Budget
instructions and procedures are developed, review of agency
estimates is coordinated, budget data systems are maintained,
agency financial management plans are reviewed, the budget
document is prepared, and scorekeeping is accomplished.
Financial management.--Governmentwide policy guidance for
financial statements, financial systems, and internal controls
is provided to agencies; evaluation of agency performance and
progress is carried out; and a Governmentwide financial
management plan is prepared.
Information and regulatory affairs.--Agency proposals to
implement or revise Federal regulations and information
collection requirements are reviewed and coordinated.
Information resource management and statistical policies and
practices are analyzed and developed.
Procurement policy.--The Office of Federal Procurement
Policy is responsible for promoting economy, efficiency, and
effectiveness in the procurement of property and services by
and for the executive branch.

marketing orders

Marketing orders which are authorized under the
Agricultural Marketing Agreement Act of 1937 have made valuable
contributions to the stability of many of our agricultural
commodity markets. In addition to assuring orderly markets for
both producers and consumers, marketing orders have provided
for quality control standards, research and promotional
programs, and supply management programs.
The Agricultural Marketing Agreement Act of 1937 gave
direct supervision and control over the management of marketing
orders to the U.S. Department of Agriculture. The Office of
Management and Budget has never been given any legislative
authority over marketing orders. The Committee has included
language prohibiting OMB from acting with regard to marketing
orders. The purpose of this language is to reaffirm USDA's sole
authority in an area where they have developed the necessary
expertise and trained personnel over the years to effectively
monitor and enforce agricultural marketing order programs.

alcohol and tobacco statistical data

The Committee has again included language which prohibits
OMB from curtailing the collection and dissemination of alcohol
and tobacco statistical data. The Committee believes such data
is valuable in addressing such problems as alcohol abuse,
public health, and industrial safety.
The Committee, however, recognizes the continuing need and
directs the Bureau of Alcohol, Tobacco and Firearms [ATF] to
continue the monthly collection of alcoholic beverage
statistics.

Dissemination of Government Information

Government information created or compiled at Government
expense or by Government employees as part of their official
duties, regardless of the format in which it is published,
shall be in the public domain, except when exempted by law.
Agencies may not establish, or permit others to establish
on their behalf, exclusive, restricted, or other distribution
arrangements that interfere with the availability of
information dissemination products, regardless of format, on a
timely and equitable basis.
Agencies shall ensure that Government information products
in all formats are made available to Federal depository
libraries through the facilities of the Government Printing
Office.
The term ``information dissemination product'' means any
book, paper, map machine-readable material, audiovisual
production, or other documentary material, regardless of
physical form or characteristic, created or compiled by
employees of a Government agency, or at Government expense, or
as required by law.

Agency Reimbursements

OMB Circular No. A-34, ``Instructions on Budget
Execution,'' issued on December 26, 1995, established a new
prohibition that revolving funds could not disburse into a
negative cash position in anticipation of Federal or non-
Federal reimbursements. The OMB viewed this situation as an
Antideficiency Act violation.
The Committee is aware that Federal agencies are
experiencing unreasonable delays in receiving payments/
collections for services rendered from other Federal agencies
that are not on the Department of the Treasury's online payment
and collection [OPAC] system. In many instances some agencies
do not pay other Government agencies until significantly more
than 90 days have elapsed. This is creating a serious cash
drain on the fund accounts of these performing agencies and is
cause for concern for the recently legislatively approved
franchise funds.
Accordingly, the Committee directs the OMB to review the
negative cash prohibition established in Circular A-34 in light
of the payment/collection problems. In addition, it is directed
that the Department of the Treasury, in conjunction with the
OMB, provide assistance to Federal agencies, where necessary,
to convert their manual payment process to the OPAC system.
Conversion of all agencies, including DOD, to OPAC should
minimize the current lag in intergovernmental payments. The
Department of the Treasury is requested to furnish the
Committee a timetable for completing these conversions by
December 31, 1996.

transcript review

The Committee has continued language in the bill that would
prohibit OMB from altering certain transcripts.
The Committee is very concerned about the timeliness of
administration responses to questions the Committee asks for
the record during the hearing cycle. When agencies are queried,
the most often cited reason is that the answers have not yet
cleared OMB. The Committee is not naive enough to believe that
OMB is solely to blame for these delays, however, because of
OMB's position, it is important that answers to these questions
are responded to in a timely manner. The Committee directs OMB
to work with all departments and agencies to ensure the
Committee is given the courtesy of timely responses.

entitlement fraud

Last year the Committee expressed its concern about the
impact of entitlement fraud. The OMB was directed to work with
the Secret Service recommendations in the Treasury Recipient
Integrity Program [TRIP], to see if they could be applied to
beneficiary agencies in their review of compliance efforts in
the area of entitlement fraud. The OMB responded on May 9,
1996, that several agencies had been contacted, and that steps
were being taken at several agencies to combat criminal
entitlement fraud. The Committee expects OMB to continue to
direct these efforts. If there are problems or recalcitrance on
the part of agencies the Committee expects that appropriate
actions are taken.

Liaison to the Advisory Commission on Intergovernmental Relations

The Director of the Office of Management and Budget [OMB]
shall instruct each Federal department and agency to establish
an intergovernmental relations liaison with the Advisory
Commission on Intergovernmental Relations [ACIR]. The liaison
shall facilitate the nonpartisan independent work of the ACIR
to address issues of mutual interest and concern to Federal,
State, and local governments. The Director shall submit to the
Senate Committee on Governmental Affairs and the House
Committee on Government Reform and Oversight a report
identifying the liaison contact for each department and agency
no later than January 15, 1997.

Annual Savings for Energy Expenditures

In the judgment of the Committee, the Federal Government
needs to give greater priority to reducing energy costs
associated with the facilities it owns, leases, and operates.
In the furtherance of this objective, and in compliance with
the reporting requirements of section 547(a) of the National
Energy Conservation Policy Act (42 U.S.C. 8258(a)), the
Committee directs that each Federal agency establish or make
use of a centralized accounting system for the determination of
the energy costs for the buildings it owns, leases, or
operates. In addition, and in compliance with the reporting
requirements of section 545 of the National Energy Conservation
Act (42 U.S.C. 8255), the Committee directs that, beginning
with its fiscal year 1998, the budget request for each Federal
agency be accompanied by: (1) a statement of the amount of
appropriations requested for electricity and other energy costs
associated with the operation and maintenance of facilities
owned, operated, or leased by such agency; and (2) a
description of the activities being carried out by each agency
to reduce energy costs in accordance with section 543 of the
National Energy Conservation Policy Act (42 U.S.C. 8254) and
Executive Order 12902.
Finally, by March 31, 1997, each agency shall submit to the
Committee a report containing: (1) figures for actual energy
use in its facilities during fiscal year 1996; (2) its strategy
for implementing a centralized facilities energy cost
accounting system; (3) its strategy for meeting the 2005 energy
use reduction goals of Executive Order 12902 for facilities it
owns, leases, or operates; and (4) a list of specific energy
savings projects to be implemented by the agency in fiscal year
1997.

Office of National Drug Control Policy

salaries and expenses

Appropriations, 1996.................................... $26,900,000
Budget estimate, 1997................................... 34,838,000
House allowance......................................... 34,838,000

Committee recommendation

34,838,000

The Committee recommends an appropriation of $34,838,000.
This recommendation equals the budget estimate and the House
allowance.
The Office of National Drug Control Policy [ONDCP] was
established pursuant to section 1002 of the Anti-Drug Abuse Act
of 1988, Public Law 100-690. The ONDCP is the President's
primary executive branch agency for drug policy and program
oversight. The Director is charged by law with the formulation,
evaluation, coordination, and oversight of both international
and domestic antidrug abuse functions of all executive branch
agencies, and to ensure that such functions sustain and
complement State and local antidrug abuse efforts.
The Committee recommendation includes $16,838,000 for
salaries and expenses, $1,000,000 for policy research and
evaluation, and $17,000,000 for counterdrug technology
assessment.

Antidrug Efforts

The Committee will once again reluctantly provide funding
for this Office. The Committee's reluctance is in part due to
this Office's poor track record of leadership in its antidrug
fighting efforts. The appointment of the new Director and
apparent efforts gives cause for hope. As always, the Committee
is willing to work with the administration in its antidrug
effort, yet emphasizes that an equal commitment is required
from the executive branch.

Public Service Announcements

The Committee is very pleased with the result of the ONDCP
work with the Partnership for a Drug Free America, as well as
other organizations and individuals who volunteer time for drug
abuse prevention advertisements. The Committee encourages ONDCP
to continue utilizing these partnerships to encourage youth not
to try illicit narcotics.

counterdrug technology assessment center

The Anti-Drug Abuse Act of 1988, Public Law 100-690, was
amended during 1990 to provide for the establishment of a
Counterdrug Technology Assessment Center within the Office of
National Drug Control Policy. This Office is authorized to
serve as the central counternarcotics enforcement research and
development organization of the U.S. Government. The law
provides for the appointment of a chief scientist to head up
this new center, to make a priority ranking of scientific needs
according to fiscal and technological feasibility as part of
the national counterdrug enforcement research and development
strategy.
The Committee has provided $17,000,000 specifically for
counternarcotics research and development projects in fiscal
year 1997.
The Committee expects multiagency research and development
programs to be coordinated by the Counterdrug Technology
Assessment Center in order to prevent duplication of effort and
to assure that whenever possible, those efforts provide
capabilities that transcend the need of any single Federal
agency. Prior to the obligation of these funds, the Committee
expects to be notified by the chief scientist on how these
funds will be spent; it also expects to receive periodic
reports from the chief scientist on the priority counterdrug
enforcement research and development requirements identified by
the Center and on the status of projects funded by CTAC.
The Committee believes CTAC should work closely and
cooperatively with the individual law enforcement agencies in
the definition of a national research and development program
which addresses agency requirements with respect to timeliness,
operational utility, and consistency with agency budget plans.
CTAC should develop a true blueprint for the program to include
identification and assignment of priority projects, expected
results, and funding projections based on agency priorities and
expected results. This effort should be led by CTAC with input,
review, and consensus from drug control agencies. The blueprint
should include descriptions of the necessary conference and
outreach efforts. The national blueprint shall also include the
rationale for allocation of funding among demand, supply, and
State and local efforts. The Committee expects agencies to
support CTAC by defining the expected value of the projects
they advocate and placing them in the context with agency and
national goals and programs. Agencies should also identify the
expected cost and benefits of procuring sufficient quantities
of equipment under development, assuming it is successful. The
Committee believes CTAC should recognize the ultimate
requirements for technology procurement if technology
development is successful and advocate funding requests for
such equipment. Finally, the Committee believes CTAC should
recognize and support agency contributions to research and
development and work to strengthen those capabilities.

unanticipated needs

Appropriations, 1996.................................... $1,000,000
Budget estimate, 1997................................... 1,000,000
House allowance.........................................................

Committee recommendation

1,000,000

The Committee recommends an appropriation of $1,000,000 for
unanticipated needs. The Committee recommendation equals the
budget request and $1,000,000 above the House allowance.
In 1940, Congress recognized the need for the President of
the United States to have limited funds available to meet
unplanned and unbudgeted contingencies. In so doing, an account
entitled ``Emergency fund for the President'' was created
allowing the President, as the head of the National Government,
to confront unforeseen problems demanding immediate executive
action. In 1975, Congress changed the account title to
``Unanticipated needs.''
Expenditures from this account may be authorized only by
the President while the Director of the Office of Management
and Budget provides the necessary control to assure that only
unforeseen priorities are financed. Prior use of these funds
has occurred under tight budget control and covered
unanticipated needs not met from regular budget accounts nor
available in a timely fashion through the supplemental budget
process.

Funds Appropriated to the President

federal drug control programs

high-intensity drug trafficking areas

(including transfer of funds)

Appropriations, 1996.................................... $103,000,000
Budget estimate, 1997................................... 103,000,000
House allowance......................................... 113,000,000

Committee recommendation

103,000,000

The Committee recommends an appropriation of $103,000,000.
This amount is equal to the President's request and $10,000,000
below the House allowance.
Section 1005 of the Anti-Drug Abuse Act of 1988 authorized
the Director of ONDCP to designate certain areas in the United
States, as HIDTA's for the purpose of providing increased
Federal assistance to alleviate drug-related problems. The most
critical drug trafficking areas of the country are designated
as HIDTA's.
There are currently seven high-intensity drug trafficking
areas: New York, Miami, Houston, Los Angeles, Baltimore-
Washington metropolitan area, Puerto Rico-Virgin Islands, and
the Southwest border. Three cities, Chicago, Philadelphia-
Camden, and Atlanta have been designated as empowerment
HIDTA's. These empowerment HIDTA's were established in fiscal
year 1995, as a joint ventures with local governments to
provide limited resources to reduce drug trafficking in
designated empowerment zones.
A total of not less than $52,000,000 is provided in this
account specifically for assistance to State and local drug
control agencies in the seven HIDTA's. In allocating these
funds, the Committee expects the Director of the Office of
National Drug Control Policy to ensure that the activities
receiving these limited additional resources are used strictly
for implementing the strategy for each HIDTA area, taking into
consideration local conditions and resource requirements. These
funds should not be used to supplant existing support for
ongoing Federal, State, or local drug control operations
normally funded out of the operating budgets of each agency.
The remaining funds may be transferred to Federal agencies and
departments to support Federal antidrug activities.
The Committee believes that the Director should take steps
to ensure that the HIDTA funds are transferred to the
appropriate drug control agencies expeditiously. To ensure that
the funding allocations meet the priorities outlined in the
strategies, the Committee instructs the Director to submit the
strategies, along with the identification of how the funds will
be spent, to the Committee for review prior to the obligation
of the funds. The Committee also expects to be notified if any
changes are made in the spending plans presented to it during
the course of the fiscal year. The Committee further instructs
the Director to submit the updated 1997 strategies for each of
the HIDTA's to the Committee for review and to obligate the
HIDTA funds within 120 days of enactment of this act. This
provision may be waived if a request is made to the Committee
and has been approved in advance according to the normal
reprogramming procedures. The Committee expects the Director to
take actions necessary to ensure that all HIDTA funds are being
used to support only those activities which are directly linked
to the individual HIDTA strategies recommended by the HIDTA
coordinators and which support the goals and objectives
outlined in each of these strategies.

Violent Crime Trust Fund

The Committee has provided an additional $13,000,000 for
the HIDTA's in the violent crime trust fund. These funds are
intended to supplement those provided in this account. HIDTA's
were originated to face drug problems unique to various cities
and areas of the Nation. Several parts of the country now face
problems, which were not considered serious at the time of the
creation of the original HIDTA's.
The House has created three new HIDTA's and provided
funding for those newly created HIDTA's. The Director has been
instructed to comply with the creation of these new HIDTA's.
The Committee has received a large number of requests to
consider cities and areas of the country as designated HIDTA's;
however, this Committee believes that the expertise for
designation of HIDTA's lies with the Director of the ONDCP.
Therefore, this Committee has provided additional funds because
of the obvious need for more HIDTA's, but has refrained from
designating individual HIDTA's. The Committee expects the ONDCP
to review all of the requests for HIDTA designations for the
gulf coast, Northeast, Northwest, Great Plains, and Rocky
Mountain regions. The Committee expects the Director to consult
the Committee with regard to distribution of funds following
established procedures.

Methamphetamine Proliferation

The Committee recognizes the importance of drug
interdiction initiatives being conducted by high-intensity drug
trafficking areas [HIDTA's], especially their role in
coordinating the activities of State and local agencies in our
Nation's war against drugs. The Committee is concerned about
statistics which reveal the proliferation of methamphetamine
``meth'' use in the Midwest. The rural Midwest is a popular
location for the manufacture, as well as distribution and
transportation of methamphetamine throughout the Midwest
including Nebraska, Iowa, Missouri, South Dakota, and Colorado.
As a result Committee directs the ONDCP give the Midwest and
Rocky Mountain regions high priority in its funding
distribution.

Northern Lights Initiative

The Committee continues to support funding for the northern
lights initiative on the United States-Canada border. This
initiative is a interagency, multijurisdictional program to
improve law enforcement effectiveness along the northeast
border. Funding for this initiative would address the growing
drug problem along the northern border by improving
communication, coordination, and effectiveness of law
enforcement throughout the region.
TITLE IV--INDEPENDENT AGENCIES

Committee for Purchase From People Who Are Blind or Severely Disabled

salaries and expenses

Appropriations, 1996.................................... $1,800,000
Budget estimate, 1997................................... 1,800,000
House allowance......................................... 1,800,000

Committee recommendation

1,800,000

The Committee recommends $1,800,000 for the Committee for
Purchase From People Who Are Blind or Severely Disabled
[CPPBSD]. The Committee recommendation equals the budget
estimate and the House allowance.
The Committee was established by the Javits-Wagner-O'Day
Act of 1971.
The Committee's primary objective is to increase the
employment opportunities for the blind and other severely
handicapped and, whenever possible, to prepare them to engage
in normal competitive employment. The Committee determines
which commodities and services are suitable for Government
procurement from qualified, nonprofit agencies serving the
blind and other severely handicapped; publishes a procurement
list of such commodities and services; determines the fair
market price for commodities and services on the procurement
list; and makes rules and regulations necessary to carry out
the purposes of the act.
The Committee staff supervises the selection and assignment
of new commodities and services, assists in establishing
prices, reviews and adjusts these prices, verifies the
qualifications of workshops, and monitors their performance.
The Committee recognizes the importance of the Javits-
Wagner-O'Day [JWOD] Act in providing much needed employment
opportunities to blind and other severely handicapped
Americans, while at the same time providing quality goods and
services to the Federal Government at fair market prices.
In this regard, the Committee intends that CPPBSD, in its
monitoring of the designated central nonprofit agencies, assure
that all funds acquired by each such agency from nonprofit
agencies for the blind and other severely handicapped in
conjunction with the Javits-Wagner-O'Day Program be used solely
for activities that are consistent with the goal of the
program, which is to generate employment and training
opportunities for persons who are blind or have other severe
disabilities.
The Congress further recognizes that research, promotional,
and advocacy efforts aimed at strengthening and expanding the
program are both a statutory and necessary function in order
for the Committee for Purchase From People Who Are Blind or
Severely Disabled [CPPBSD] to fulfill its obligations under the
JWOD Act. The Congress supports efforts by the CPPBSD to
initiate such research and advocacy activities.

Federal Election Commission

salaries and expenses

Appropriations, 1996.................................... $26,521,000
Budget estimate, 1997................................... 29,371,000
House allowance......................................... 27,524,000

Committee recommendation

28,700,000

The Committee recommends an appropriation of $28,700,000
for the Federal Election Commission [FEC]. The Committee
recommendation is $671,000 below the budget request and is
$1,176,000 above the House allowance.
The Federal Election Commission is charged with
implementing and enforcing the Federal Election Campaign Act
[FECA] as amended. This includes: promoting public disclosure
of campaign finance activity; providing information to the
public, press, and campaign officials on the FECA and campaign
finance; obtaining voluntary compliance with the disclosure and
limitation provisions of the FECA; and enforcing that
disclosure and compliance through audits, investigations, and/
or litigation. The Commission is also charged with implementing
the Presidential campaign funding programs for both primary and
general election campaigns of qualified Presidential
candidates. This includes certification, audit, and enforcement
of the provisions of the Federal funding legislation concerning
the use of Federal funds.

Federal Labor Relations Authority

salaries and expenses

Appropriations, 1996.................................... $20,542,000
Budget estimate, 1997................................... 21,988,000
House allowance......................................... 21,588,000

Committee recommendation

21,588,000

The Committee recommends an appropriation of $21,588,000
for the Federal Labor Relations Authority [FLRA]. This amount
is $400,000 below the budget request and equals the House
allowance.
The FLRA was established to administer title VII of the
Civil Service Reform Act of 1978 and to serve as a neutral
third party in the resolution of labor-management disputes
arising among unions, employees, and Federal agencies. The
effective resolution of these labor-management disputes has an
important impact on the operations of the Government. These
disputes arise with nearly all agencies of the executive
branch, and the Library of Congress and the Government Printing
Office, in locations throughout the United States and overseas.
Authority members.--Provides leadership in the
establishment of policies and guidance relating to matters
under title VII of the Civil Service Reform Act of 1978.
Specifically, the authority is empowered to: (1) determine the
appropriateness of units for labor organization representation;
(2) supervise or conduct elections to determine whether a labor
organization has been selected as an exclusive representative
by a majority of the employees in an appropriate unit; (3)
otherwise administer the provisions relating to the according
of exclusive recognition to labor organizations; (4) prescribe
criteria and resolve issues relating to the granting of
national consultation rights; (5) prescribe and resolve issues
relating to determining compelling need for agency rules and
regulations; (6) resolve issues relating to the duty to bargain
in good faith; (7) prescribe criteria relating to the granting
of consultation rights with respect to conditions of
employment; (8) conduct hearings involving complaints of unfair
labor practices; (9) resolve exceptions to arbitrators' awards;
and (10) take such other actions as necessary and appropriate
to effectively administer the provisions of title VII of the
Civil Service Reform Act of 1978.
General Counsel.--Has discharged responsibilities mandated
in the Federal service-management relations statute and
additional responsibilities which are delegated from the
authority. The functions of the Office of the General Counsel
are to: (1) investigate all alleged unfair labor practices
under the Federal service labor-management relations statute
and under the foreign service labor-management relations
statute; (2) exercise final authority over the issuance of all
complaints and the prosecution of all complaints arising under
the statutes listed above; (3) review and decide all appeals of
decisions of the regional directors refusing to issue
complaint; (4) exercise delegated authority for investigating
and taking dispositive action on all representation petitions;
(5) exercise delegated authority for supervising or conducting
all representation elections and certifying the results of
these elections to the parties; (6) exercise delegated
authority for conducting hearings in all representation
petitions where issues of fact are in dispute; (7) exercise
delegated authority for the preparation of final decisions and
orders based on the hearings held in representation cases; and
(8) manage regional offices, including directing and
supervising all employees of the regional offices. The regional
offices are located in Boston, Atlanta, Chicago, Dallas,
Denver, San Francisco, and Washington, DC. Subregional offices
are located in Philadelphia, New York, Los Angeles, and
Cleveland.
Federal services impasses panel [FSIP].--An entity within
the FLRA, assists Federal agencies and unions representing
Federal employees in resolving impasses which arise in labor
negotiations. The FSIP assists the parties through informal
meetings, factfinding and, if necessary, arbitration. The
professional staff aids the panel members by promptly
investigating requests for assistance; bringing about informal
settlements; conducting factfinding and arbitration hearings;
and drafting report recommendations as well as binding
decisions for the FSIP members. Further, the staff supports the
Foreign Service impasses disputes panel in resolving
negotiation impasses arising under the Foreign Service Act of
1980.

General Services Administration

federal buildings fund--limitations on availability of revenue

committee funding levels

The Committee has recommended an aggregate limitation on
availability of revenue from the Federal buildings fund of
$5,412,392,000. This amount is $263,240,000 below the budget
request and $47,969,000 above the House allowance.

construction and acquisition

Appropriations, 1996.................................... ($545,002,000)
Budget estimate, 1997................................... (715,179,000)
House allowance......................................... (540,000,000)

Committee recommendation

(657,724,000)

The Committee recommends a limitation of $657,724,000 for
construction and acquisition of facilities in fiscal year 1997.
The Committee recommendation is $57,455,000 below the budget
estimate and $117,724,000 above the House allowance.
The construction and acquisition of facilities activity
meets the space needs of Federal agencies by funding new
construction, acquisition of excess properties from the U.S.
Postal Service and other Government agencies, and the purchase
of commercial buildings. It is the aim of the General Services
Administration [GSA] to increase the ratio of Government-owned
to leased facilities as the most economical means of housing
Government activities in most geographic locations.

Construction and acquisition facilities--Projects approved by the
Committee

District of Columbia: Southeast Federal Center
environmental cleanup............................... $20,000,000
Maryland: Montgomery and Prince Georges Counties, Food
and Drug Administration consolidation............... 13,000,000
Montana:
Babb, Piegan Border Station......................... 333,000
Sweetgrass, border station.......................... 1,066,000
Nevada: Las Vegas, U.S. courthouse...................... 96,011,000
New York: Brooklyn, U.S. courthouse..................... 187,179,000
Ohio: Cleveland, U.S. courthouse........................ 142,291,000
Oregon: Portland, consolidated law Federal offices
building............................................ 86,000,000
Pennsylvania: Philadelphia, Department of Veterans
Affairs--Federal complex, phase II.................. 15,156,000
Texas: Corpus Christi, U.S. courthouse.................. 26,610,000
Washington:
Blaine, U.S. border station......................... 15,419,000
Oroville, U.S. border station....................... 1,483,000
Seattle, U.S. courthouse............................ 17,740,000
Sumas, U.S. border station (claim).................. 1,177,000
Nonprospectus projects program.......................... 10,000,000
Nationwide security enhancements........................ 24,259,000

Courthouse Construction

The Committee takes this opportunity to congratulate the
General Services Administration, as well as, the Administrative
Office of the Courts [AOC] for their efforts reducing the cost
of construction of Federal courthouses. Questions have arisen
in the past about the need and scope of courthouse
construction. Significant strides have been made over the past
year. The Committee required the AOC to provide a 5-year plan
outlining in priority order the need for court space. The
Committee used this priority list in its deliberations.
The Committee funded the five projects which were on the
AOC's list. Because of limited funds the Committee was unable
to fund any other courthouse projects. The administration had
requested a number of construction (London, KY; Columbia, SC;
Covington, KY; and Youngstown, OH), as well as, site and design
projects (Miami, FL; Salt Lake City, UT; Fresno, CA; and Erie,
PA) which are on the AOC fiscal year 1998 list. The Committee
expects that these projects will be in the fiscal year 1998
budget request and will give them every consideration.

repairs and alterations

Appropriations, 1996.................................... ($637,000,000)
Budget estimate, 1997................................... (775,034,000)
House allowance......................................... (635,000,000)

Committee recommendation

(616,990,000)

The Committee recommends new obligational authority of
$616,990,000 for repairs and alterations in fiscal year 1997.
The Committee recommendation is $158,044,000 below the budget
estimate and $18,010,000 below the House allowance.
Under this activity, the General Services Administration
[GSA] executes its responsibility for repairs and alterations
[R&A] of both Government-owned and leased facilities under the
control of GSA. The major goal of this activity is to provide
commercially equivalent space to tenant agencies. Safety,
quality, and operating efficiency of facilities are given
primary consideration in carrying out this responsibility. A
major portion of the fiscal year 1997 program is devoted to
nondiscretionary work necessary to meet this goal and keep the
buildings in an occupiable condition.
R&A workload requirements originate with scheduled onsite
inspections of buildings by qualified regional engineers and
building managers. The work identified through these
inspections is programmed in order of priority into the repairs
and alterations construction automated tracking system [RACATS]
and incorporated into a 5-year plan for accomplishment, based
upon funding availability, urgency, and the volume of R&A work
that GSA has the capability to execute annually. Beginning in
fiscal year 1995, design and construction services activities
associated with the repair and alteration projects are funded
in this account.
The R&A program, for purposes of funds control, is divided
into two types of projects--line item and nonline item. The
following is a definition of each category of projects:
Line item projects.--Line item projects are those larger
projects for which a prospectus is required under the
provisions of the Public Buildings Act of 1959 and for which
over $1,500,000 is to be obligated at a single location within
a fiscal year. Generally, line item projects are similar to
construction projects in the scope of work involved and the
multiyear timeframe for project completion. Line item projects
are listed individually in GSA's appropriations acts and the
obligational authority for each project is limited to the
amount shown therein.
Nonline item projects.--This category includes all smaller
projects for which an amount less than $1,500,000 is to be
obligated at a single location within a fiscal year. Projects
included in this category are generally short term in nature
and funds can normally be obligated within a 1-year period.
This category also includes projects which are recurring in
nature, such as cyclic painting and the minor repair of
defective building systems; for example, mechanical, plumbing,
electrical, fire safety, and elevator system components.
Below is the list of line item projects recommended for
funding by the Committee for fiscal year 1997.

Repairs and alterations:
District of Columbia: Ariel Rios Building........... $62,740,000
Hawaii: Honolulu, Prince Jonah Kuhio Kalanianaole
Federal Building and U.S. courthouse.............. 4,140,000
Illinois:
Chicago:
Everett M. Dirksen Federal Building......... 18,844,000
John C. Kluczynski, Jr. Federal Building
[IRS]..................................... 13,414,000
Louisiana: New Orleans, customhouse................. 3,500,000
Massachusetts: Andover, IRS Regional Service Center. 812,000
New Hampshire: Concord, J.C. Cleveland Federal
Building.......................................... 8,251,000
New Jersey: Camden, U.S. post office-courthouse..... 11,096,000
New York:
Albany, James T. Foley Post Office-courthouse... 3,880,000
Brookhaven, IRS Service Center.................. 2,272,000
New York, Jacob K. Javits Federal Building...... 13,651,000
Pennsylvania: Scranton, Federal building-U.S.
courthouse........................................ 10,610,000
Rhode Island: Providence Federal building-U.S.
courthouse........................................ 8,209,000
Texas: Fort Worth, Federal Center................... 11,259,000
Nationwide:
Chlorofluorocarbons program..................... 43,533,000
Elevator program................................ 17,100,000
Energy program.................................. 20,000,000
Security enhancements........................... 2,686,000
Basic repairs and alterations....................... 360,000,000

The Committee notes that GSA has authority to reprogram up
to 10 percent between projects in the Federal buildings fund
without prior Committee approval. The Committee, therefore,
suggests that if funds provided for specific repair and
alterations projects are insufficient to cover the costs, GSA
should reprogram funds from other lower priority areas.

Holtsville-Brookhaven IRS Service Center

Funds totaling $19,183,000 were appropriated in fiscal year
1995 for renovation of the Internal Revenue Service Center in
Holtsville, NY. Due to reorganization plans in the IRS, GSA was
not able to obligate these funds. In fiscal year 1997 the
administration has proposed a rescoped renovation project for
the Holtsville-Brookhaven Service Center.
Because of the delay, the Committee agreed to reprogram
$13,483,000 from this project for building security
enhancements. The Committee has included funds requested this
year, plus language which extends the availability of the
remaining $5,700,000 until September 30, 1998, for this
project.

Building Security Enhancements

The Committee has included the funding requested by the
administration to enhance Federal building security. The
Committee expects to be kept apprised of the plans for
security, as well as the cooperation of tenant agencies, in
efforts to better secure Federal facilities. The GSA should
also make every effort to seek out and utilize the most modern
technology in this effort. The Committee urges the GSA to
address the costs of retrofitting Federal facilities with
security window film to mitigate potential losses, as
stipulated in the June 28, 1995, Presidential memorandum, and
report to the Committee, as a part of the fiscal year 1998
budget submission.

Mobile, AL, Courthouse

The General Services Administration recently completed a
prospectus for construction of a new Federal courthouse in
Mobile, AL. The Administrative Office of the Courts has
included this project on its priority list, and funding will be
considered next year. In order to maximize the use of the
current courthouse, and other federally owned and leased space
in Mobile, the Committee directs GSA to develop a master plan
strategy for future use of the building, and upon completion of
this strategy report to the Committees on Environment and
Public Works and Appropriations.

Northern Border Facility Improvements

The General Services Administration has been working with
inspection agencies to identify and prioritize the needs for
construction and improvement of border facilities on the
northern border. The Committee commends GSA and the inspection
agencies for these efforts, and urge them to include in their
review the northbound facilities and warehouses at the Highgate
Springs and Derby, VT, border stations.

installment acquisition payments

Appropriations, 1996.................................... ($181,963,000)
Budget estimate, 1997................................... (173,075,000)
House allowance......................................... (173,075,000)

Committee recommendation

(173,075,000)

The Committee recommends a limitation of $173,075,000 for
installment acquisition payments. The Committee recommendation
equals the budget estimate and the House allowance.
The Public Buildings Amendments of 1972 enables GSA to
enter into contractual arrangements for the construction of a
backlog of approved but unfunded projects. The purchase
contracts require the Government to make periodic payments on
these facilities over varying periods until title is
transferred to the Government. This activity provides for the
payment of principal, interest, taxes, and other required
obligations related to facilities acquired pursuant to the
Public Buildings Amendments of 1972 (40 U.S.C. 602a).

Rental of Space

Appropriations, 1996.................................... $2,326,000,000
Budget estimate, 1997................................... 2,348,000,000
House allowance.........................................................

Committee recommendation

2,343,795,000

The Committee recommends a limitation of $2,343,795,000 for
rental of space. The Committee recommendation is $4,205,000
below the budget estimate and equals the House allowance which
is funded in a new account, ``Operations and leasing'' which
combines ``Rental of space'' and ``Building operations.'' The
Committee recommends continuation of two separate accounts.
The General Services Administration is responsible for
leasing general purpose space and land incident thereto for
Federal agencies, except cases where the GSA has delegated its
leasing authority (for example, the Department of Veterans
Affairs, as well as the Departments of Agriculture, Commerce,
and Defense). The GSA's policy is to lease privately owned
buildings and land only when: (1) Federal space needs cannot be
otherwise accommodated satisfactorily in existing Government-
owned or leased space; (2) leasing proves to be more efficient
than the construction or alteration of a Federal building; (3)
construction or alteration is not warranted because
requirements in the community are insufficient or are
indefinite in scope or duration; or (4) completion of a new
Federal building within a reasonable time cannot be assured.

Rent Requirements

The Committee is concerned that the General Services
Administration's failure to provide agencies timely, and
accurate information on rental rates could result in agencies
not reflecting sufficient rental rates to cover the actual
costs of rent payments. The failure of agencies to request
adequate funds for rent could ultimately lead to a reduction of
funds available for the repair, alteration, maintenance, and/or
construction of Federal assets. The Committee, therefore,
directs the GSA, working with the Office of Management and
Budget, to develop a system for identifying and informing
agencies of their annual rent rates and total rent estimates in
an accurate and timely manner. Implementation of this system
will result in the GSA informing the agencies and the OMB of
the proposed rent rates and total rent estimate, at an agency
account level, no less than 2 months prior to the agencies
submitting their budget requests to OMB. Implementation of the
system will provide GSA, as the Federal landlord, with a
mechanism for cross checking that agencies budget submissions
to the OMB reflect adequate funding levels. The Committee
instructs GSA, working with OMB, to submit the proposed system
to Congress no later than March 1, 1997.

Building Operations

Appropriations, 1996.................................... $1,302,551,000
Budget estimate, 1977................................... 1,575,151,000
House allowance......................................... 390,900,000

Committee recommendation

1,532,465,000

The Committee recommends a limitation of $1,532,465,000 for
building operations. The Committee recommendation is
$42,686,000 below the budget estimate and is $416,945,000 below
the House allowance when the House allowance is totaled with
funds provided in the ``Operations and leasing'' account the
House has created.
This activity provides for the operation of all Government-
owned facilities under the jurisdiction of the GSA and building
services in GSA-leased space where the terms of the lease do
not require the lessor to furnish such services. Services
included in building operations are cleaning, protection,
maintenance, payments for utilities and fuel, grounds
maintenance, and elevator operations. Other related supporting
services include various real property management and staff
support activities such as space acquisition and assignment;
the moving of Federal agencies as a result of space alterations
in order to provide better space utilization in existing
buildings; onsite inspection of building services and
operations accomplished by private contractors; and various
highly specialized contract administration support functions.
The space, operations, and services referred to above are
furnished by the GSA to its tenant agencies in return for
payment of rent. Due to considerations unique to their
operation, the GSA also provides varying levels of above-
standard services in agency headquarter facilities, including
those occupied by the Executive Office of the President, such
as the east and west wings of the White House.

Security Enhancements

The Committee has provided $205,000,000 for security
enhancements of Federal facilities. The Committee has included
funding for security enhancements for several projects included
in the ``New construction'' and ``Repair and alteration''
accounts. This account has been reduced by $26,945,000 to
reflect those line items.

Pennsylvania Avenue Activities

Language included in Public law 104-134, the Omnibus
Appropriations Acts of 1996 directs the Pennsylvania Avenue
Development Corporation [PADC] be dissolved on, or before April
1, 1996. Responsibilities necessary to complete the specific
activities of the dissolved PADC were transferred to the GSA.
The Committee supports the administration's proposal to use
funds transferred from the PADC to complete the Pennsylvania
Avenue plan, to continue managing the construction and leasing
of the Federal Triangle Building complex, and other transferred
activities. It is not the Committee's intention to continue the
PADC or to expand GSA's authorities with regard to PADC plans.

Federal Communications Commission

To the extent that the Federal Communications Commission
does not receive sufficient appropriations for necessary
expenses associated with it's relocation to the Portals funds
available to the Administrator of General Services shall be
available for payment of such expenses. The Federal
Communications Commission is expected to continue to request
funds for these activities to repay the General Services
Administration.

policy and operations

salaries and expenses

Appropriations, 1996.................................... $119,091,000
Budget estimate, 1997................................... 110,173,000
House allowance......................................... 109,091,000

Committee recommendation

110,173,000

The Committee recommends an appropriation of $110,173,000
for salaries and expenses for the policy and operations of the
General Services Administration. The Committee recommendation
equals the budget request and is $1,082,000 above the House
allowance.
The Committee has combined policy, oversight, and asset
management functions associated with real and personal
property, supplies, acquisition, and information technology
into a single account separate from operations. The
establishment of this single account should assist the General
Services Administration in its effort to transform itself into
an organization responsible for policy and oversight, and place
greater reliance on the private sector. It should also assist
GSA as it attempts to coordinate Governmentwide planning.
The Committee expects GSA to use this flexibility to
further emphasize and expand its policy and leadership
responsibilities. The Committee further expects GSA to continue
converting its operational programs to industrial funding where
practical.
The Committee has funded the initiatives requested by the
administration, as outlined in the budget justification, plus
the functions and personnel transferred from the General
Accounting Office, subsequent to enactment of Public Law 104-
53.

Streamlining Efforts

The Committee commends the General Services Administration
in its efforts to streamline its efforts and operate its
functions in a more businesslike manner. These actions have led
to better operations, better service, and a savings to the
Government. These actions have also led to a significant
reduction in personnel.

Child Care Centers

The GSA child care program currently includes 102
operational centers and more than two dozen more are in the
planning stages. To conduct the policy development, leadership,
and consultation for the program in a responsible manner,
resources must be dedicated specifically to the program. These
functions have previously been split between the
Administrator's office and the Public Buildings Service while
regional support has been on an extra duties as assigned basis.
The Committee has provided the $3,000,000 and 19 FTE's
requested by the GSA dedicated to the Child Care Program. The
Committee commends the GSA effort which will improve an already
outstanding Child Care Program.

POST FTS 2000 CONTRACT

The FTS 2000 program has yielded the Federal Government
significant savings and state-of-the-art services over the past
8 years. In the fall of 1995, after price recompetition, the
Government's prices were far below other users, and savings
were well above any other user in the market for similar
services.
The Committee is concerned about GSA's revised acquisition
strategy for the post-FTS 2000 contract. In particular, given
the enactment of the Telecommunications Act of 1996, and the
ever-changing world of telecommunications services, the
Committee believes that entering into a long-term and
inflexible comprehensive contract that deviates substantially
from the current acquisition may be ill-advised.
Additionally, the Committee believes contracting for local
telephone and access services would provide an opportunity for
additional cost savings in an emerging competitive market,
although concerns may arise over the uncertainty of how a
nationwide contract can accommodate variances in all areas of
the country, and, in particular, rural areas. It appears that
the largest savings in the area of local service and access
will be in metropolitan areas of the country where there is
strong competition among carriers and a large Federal
Government presence. Therefore, GSA should evaluate the
advisability of its approach before issuing a solicitation for
the post-FTS 2000 contract.
The Committee believes these types of changes must be
addressed in order for GSA to take full advantage of rapid
changes in the telecommunications services industry and
technology. Therefore, the Committee directs the Administrator
to delay until May 1997 in order for the Administrator to
review GSA's revised acquisition strategy for the post-FTS 2000
contract and report to the appropriate committees on options
that address these concerns so that Congress can properly
evaluate the options prior to issuing a solicitation for the
post-FTS 2000 contract.

Leased Space at Ports of Entry

The Committee is aware that GSA leases space to licensed
customs brokers at many ports of entry along the northern and
southern borders to facilitate entry processing. The Committee
recognizes that customs brokers serve a vital link between the
Customs Service and U.S. companies. As the volumes of imports
and exports increase, a cooperative and interactive border
environment is important to the smooth flow of trade--a fact
which the Customs Service has brought to the attention of GSA.
The Committee is concerned about reports of widely
inconsistent outleasing policies toward customs brokers from
one port of entry to another, as well as, reports of GSA
leasing terms that appear to be incompatible with the
commercial market at the border crossing.
The Committee directs GSA to report back to the Committee
by January 31, 1997, on the specific steps they have taken to
ensure that GSA has a consistent policy to provide space to
customs brokers at a fair and reasonable cost that is
commercially competitive and reflects the needs of both the
Customs Service and private industry.

Perrine Primate Center

The Committee has been advised that the National Institutes
of Health has indicated that the Perrine Primate Center may be
declared excess. This facility was designed for medical
research on nonhuman primates. Because of the public benefit,
should this facility be declared excess, the Committee directs
the GSA to consider and maintain that the best use for this
facility is research, education, and training at this site.

Consolidation of Agencies in Lincoln, NE

The Committee directs GSA to study the need for a natural
resources building consolidating USDA and Department of the
Interior programs under one roof in Lincoln, NE. The study
should include the feasibility of adding research programs to
the facility.

Application of Section 603

Section 603 of this bill provides that employees of Federal
child care centers are provided certain reimbursements. The
Committee believes that this provision may have applicability
to the legislative branch. The Committee encourages the GSA to
work with the appropriate legislative offices if this is the
case.

Support of Commission on Restructuring the Internal Revenue Service

Section 637 of Public Law 104-52, which established the
National Commission on Restructuring the Internal Revenue
Service, requires the GSA to provide nonreimbursable
administrative support services to the Commission. The
Commission received a separate appropriation for its operations
during fiscal year 1996, to remain available until expended.
However, since the Commission's initial meeting took place so
late in the fiscal year, it is difficult to determine whether
or not additional funding will be required for the Commission
to complete its work in a timely manner during fiscal year
1997. Because the Committee strongly supports the important
work of the Commission and looks forward to its
recommendations, the Committee directs the Administrator of
General Services to make available to the Commission funding
and support from the fiscal year 1997 funds available to the
Administrator if additional resources to complete the
Commission's work by the deadline established by law is
required.

Surplus Equipment to Schools and Educational Institutions

The Committee urges the General Services Administration, in
line with its responsibilities for the disposal of excess and
surplus Federal personal property, to promote and foster the
transfer of excess and surplus computer equipment directly to
schools and to the appropriate nonprofit, community-based
educational organizations. The GSA should communicate with
other Federal agencies to heighten their ongoing awareness of
the existing opportunities at both the national and local
levels to meet the needs of the schools for such equipment and
will work with agencies to ensure that the equipment is
conveyed to the school or organization quickly and at the least
cost to the institution. The Committee further directs GSA to
work with the Sergeant at Arms and the regional Federal
executive boards providing guidance and assistance to help
establish regional clearinghouses of information on the
availability of excess computer surplus equipment in each
region. This information should be made readily available to
schools.

office of inspector general

Appropriations, 1996.................................... $33,274,000
Budget estimate, 1997................................... 33,863,000
House allowance......................................... 33,274,000

Committee recommendation

33,863,000

The Committee recommends an appropriation of $33,863,000
for the Office of Inspector General, which equals the budget
estimate and is $589,000 above the House allowance.
The Office of Inspector General [OIG] implements in its
entirety the provisions of the Inspector General Act.
Consistent with the Inspector General Act, the OIG has been
given total responsibility for the audit and investigative
functions of the agency. Its mission is to detect and
investigate all instances of fraud and abuse and assure that
proper corrective action is taken. The Office is also charged
with the responsibility for reporting on waste, inefficiency,
and mismanagement, and making recommendations for improvement.
Audit services provided by the OIG fall within two broad
categories: Audits of GSA contracts and internal audits,
including inspections. Through the preaward and postaward
auditing of GSA contracts, the OIG provides professional advice
on accounting and financial matters related to the negotiation,
award, administration, repricing, and settlement of contracts.
Internal audits deal with all facets of GSA operations.
Inspections services provide detailed technical evaluations
of GSA operations. The investigations program provides for the
detection and investigation of illegal or unethical activities
against GSA by its employees, vendors doing business with the
agency, and by other individuals or groups of individuals.
The Inspector General Act also requires that the inspectors
general move beyond their traditional role of detecting and
preventing fraud, waste, and abuse, to also assume
responsibility for promoting economy and efficiency. The GSA
Office of Inspector General has a unique role within the
Federal structure in that its activities affect all Federal
agencies and several State programs. The broadened mandate
requires increased emphasis on more effective involvement with
other governmental agencies, identification of systemic
problems, participation in the design of new programs, review
of proposed legislation and regulations, and employee awareness
programs.

allowances and office staff for former presidents

Appropriations, 1996.................................... $2,181,000
Budget estimate, 1997................................... 2,180,000
House allowance......................................... 2,180,000

Committee recommendation

2,180,000

The Committee recommends $2,180,000 for allowances and
office staff for former Presidents. This recommendation equals
the budget request and the House allowance.
This program is authorized by the Former Presidents Act,
Public Law 85-745 (3 U.S.C. 102 note), of August 25, 1958, as
amended. It provides for an annual pension paid monthly to each
former President and each widow of a former President;
compensation for staff assistants employed by each former
President; and funding for office space, furnishings, and
equipment as appropriate (defined under CG Decision B-114073,
Mar. 8, 1961). The Supplemental Appropriations Act of October
21, 1968, Public Law 90-608, 82 Stat. 1192, allows for travel
and related expenses for each former President and not to
exceed two members of his staff. Title 39 U.S.C. 3214
authorizes a former President and widow to send all mail in the
United States and its territories as franked mail. Under the
Presidential Transition Act, section 3(a)(7), each former
President may use penalty mail.
This appropriation provides for the pensions, office
staffs, and related expenses for former Presidents Gerald R.
Ford, Jimmy Carter, Ronald Reagan, and George Bush and for the
pension and postal franking privileges for the widow of former
President Lyndon B. Johnson.
Below is listed a detailed breakdown of the fiscal year
1997 funding:

ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS, FISCAL YEAR 1997
----------------------------------------------------------------------------------------------------------------
Former Presidents
-------------------------------------------- Widows Total
Ford Carter Reagan Bush
----------------------------------------------------------------------------------------------------------------
Personnel compensation........................ $96,000 $96,000 $96,000 $96,000 ......... $384,000
Personnel benefits............................ 20,000 5,000 24,000 41,000 ......... 90,000
Benefits for former personnel: Pensions....... 152,000 152,000 152,000 152,000 $20,000 628,000
Travel........................................ 48,000 2,000 26,000 45,000 ......... 121,000
Rental payment to General Services
Administration............................... 95,000 89,000 343,000 140,000 ......... 666,000
Communications, utilities, miscellaneous
charges:
Equipment rental.......................... 1,000 ......... ......... ......... ......... 1,000
Telephone................................. 17,000 28,000 25,000 21,000 ......... 91,000
Postage................................... 6,000 12,000 10,000 12,000 2,000 42,000
Printing...................................... 5,000 13,000 14,000 6,000 ......... 38,000
Other services................................ 5,000 8,000 16,000 13,000 ......... 42,000
Supplies and materials........................ 8,000 21,000 17,000 11,000 ......... 57,000
Equipment..................................... ......... 15,000 3,000 2,000 ......... 20,000
-----------------------------------------------------------------
Total obligations....................... 452,000 441,000 726,000 539,000 22,000 2,180,000
----------------------------------------------------------------------------------------------------------------

gsa general provisions

The Committee has recommended the inclusion of the
following general provisions:
Section 401 authorizes GSA to credit accounts with certain
funds received from Government corporations;
Section 402 authorizes GSA to use funds for the hire of
passenger motor vehicles;
Section 403 authorizes GSA to transfer funds within the
Federal buildings fund for meeting program requirements;
Section 404 repeals section 10 of Public Law 100-440 which
sets a limit on the number of employees in the Federal
Protective Service.
Section 405 modifies the provision which limits funding for
courthouse construction which does not meet certain standards
of a capital improvement plan.
Section 409 modifies the provision authorizing the GSA to
accept and retain income to offset the cost of the flexiplace
work telecommuting centers.
Section 410 repeals section 6 of Public Law 103-123 which
terminates office and staff support to former Presidents which
expires on September 30, 1998, to future former Presidents 5
years after leaving office and terminating office and staff
support for former Presidents on October 1, 1998.
Section 411 directs the Administrator to purchase a site
for the location in order to expedite the construction of the
law enforcement center in Portland, OR. The GSA has recommended
the construction of a 450,000 gross square foot law enforcement
center including 200 inside parking spaces in Portland. The law
enforcement center will provide consolidated office space for
Federal law enforcement agencies, and provide essential
presentencing detention capacity in Portland. GSA has concluded
that construction of the law enforcement center will improve
security, substantially reduce detainee transportation costs,
and facilitate the judicial process in criminal cases.

Expenses, Presidential Transition

Appropriations, 1996....................................................
Budget estimate, 1997................................... $5,600,000
House allowance......................................... 5,600,000

Committee recommendation

5,600,000

The Committee recommends $5,600,000 for expenses of a
Presidential transition. The recommendation equals the budget
request and the House allowance.
Funds are appropriated in accordance with the Presidential
Transition Act of 1963, as amended, to provide for an orderly
transfer of executive leadership. New appropriations are
requested in Presidential election years.
In the case where the President-elect is the incumbent
President or in the case where the Vice President-elect is the
incumbent Vice President, there shall be no expenditure of
funds for the provision of services and facilities to such
incumbents under this act, and any funds appropriated for such
purposes shall be returned to the general funds of the
Treasury.

John F. Kennedy Assassination Review Board

salaries and expenses

Appropriations, 1996.................................... $2,150,000
Budget estimate, 1997................................... 2,150,000
House allowance......................................... 2,150,000

Committee recommendation

2,150,000

The Committee recommends $2,150,000 for fiscal year 1997
for salaries and expenses of the John F. Kennedy Assassination
Review Board. The Committee recommendation equals the budget
request and the House allowance.
The John F. Kennedy Assassination Review Board was
established by Public Law 102-526, the John F. Kennedy
Assassination Records Collection Act of 1992. The Board
facilitates the public disclosure of previously public or
privately held records relating to the assassination of
President Kennedy. In addition, the Board is assisting in
dispelling longstanding myths and controversies surrounding the
assassination of President Kennedy through the release of
previously sequestered records.
This is the final appropriation for the Review Board. The
Committee joins the House in thanking the Board for its work
and completing its work within the authorized timeframe.

Merit Systems Protection Board

salaries and expenses

Appropriations, 1996.................................... $24,549,000
Budget estimate, 1997................................... 24,549,000
House allowance......................................... 23,297,000

Committee recommendation

24,549,000

The Committee recommends an appropriation of $24,549,000
for the Merit Systems Protection Board. The Committee
recommendation equals the budget estimate and is $1,252,000
above the House allowance.
The Merit Systems Protection Board is an independent,
quasi-judicial agency, charged by Congress with protecting the
integrity of Federal merit systems against partisan political
and other prohibited personnel practices, ensuring adequate
protection for employees against abuses by agency management,
and requiring executive branch agencies to make employment
decisions based on individual merit. This mission is carried
out principally by: (1) adjudicating employee appeals of agency
personnel actions, such as removals, suspensions, and
demotions; (2) adjudicating actions brought by the special
counsel involving alleged abuses of the merit systems; (3)
adjudicating actions brought under the Whistleblower Protection
Act; (4) ordering compliance with final orders where necessary;
(5) conducting special studies of the civil service and other
merit systems in the executive branch to determine whether they
are free of prohibited personnel practices; (6) analyzing and
reporting on the significant actions of the Office of Personnel
Management [OPM]; and (7) reviewing regulations issued by OPM
to ensure they do not require or result in the commission of a
prohibited personnel practice.

Administrative Judges at the MSPB

The Committee is concerned about proposals to have its
administrative judge membership enhanced to an independent
corps of administrative law judges [ALJ's]. This proposal would
affect the appropriations and the statutory design of the MSPB.
Under the Administrative Procedures Act, the Congress
established ALJ's to provide an independent review within
Federal agencies for achieving due process and review of
compliance with laws and regulations within the agencies. The
creation of a corps of ALJ's for the MSPB would appear to be an
unnecessary, duplicative, and costly measure for the Congress
has already provided an independent reviewing mechanism for
civil service issues: the MSPB. Congress created the MSPB as
the proper panel of independent adjudicators to provide due
process in review of civil service disputes. The administrative
judges are appointed to perform a valuable role to assist the
Board in responding to cases brought by the growing and
geographically diverse Federal work force. The independence in
this institution rests with the three-member Board. It would be
undermined by the creation of a second and parallel corps of
independent adjudicators, and, also would limit the independent
agency's flexibility in fulfilling its statutory mission.

Studies Function of the MSPB

The Committee is concerned about the issues involved with
studies of the protection of merit principles in the civil
service. MSPB has the statutorily authorized function to carry
out occasional studies of this nature. The House report
recommends the use of outside contract resources to conduct the
studies. It recommends that the decisions of what and when to
conduct such studies should arise from requests for information
from the Congress or the executive branch.
The Senate has been reviewing administrative law and policy
research issues. The history and evolution of the studies
function of the MSPB reflects a measurably different objective:
ensuring the integrity of our Federal civil service system.
This was developed as a complement and as an alternative to the
enforcement of our civil service laws. The studies function
represents the hope that trends or emerging problems could be
identified in the empirical fabric of Government, and resolved
through policy choices instead of waiting for litigation to
erupt. When the MSPB was separated as an independent agency as
a result of the Civil Service Reform Act of 1978, it was
believed that the studies function also needed to be
independent from the policymaking role of the Office of
Personnel Management [OPM], and thus it was placed with the
MSPB.
The Senate believes that problems have emerged which the
Congress and the administration should address. It has become
clear that the core function of the MSPB is a legal and
adjudicatory one, and this role is expanding as appropriations
are shrinking. However, the role of OPM has also been revised
dramatically in recent years to largely two functions:
oversight of the Federal personnel community, and retirement
and benefits administration. As a result, the Committee
believes that the MSPB needs to concentrate chiefly on its
primary adjudicatory responsibilities, and that the Congress
and administration should address shifting the statutory
authorization for conducting studies of the merit systems,
together with the concomitant staff and necessary
appropriations, to the Office of Personnel Management Oversight
Division.

limitation

(transfer of funds)

Appropriations, 1996.................................... ($2,430,000)
Budget estimate, 1997................................... (2,430,000)
House allowance......................................... (2,430,000)

Committee recommendation

(2,430,000)

The Committee has recommended a limitation of $2,430,000 on
the amount to be transferred from the civil service retirement
and disability fund to the Board to cover administrative
expenses to adjudicate retirement appeals cases. This amount
equals the budget request and the House allowance.

National Archives and Records Administration

operating expenses

Appropriations, 1996.................................... $199,633,000
Budget estimate, 1997................................... 196,964,000
House allowance......................................... 195,109,000

Committee recommendation

198,964,000

The Committee recommends an appropriation of $198,964,000.
The Committee recommendation is $2,000,000 above the budget
estimate and is $3,855,000 above the House allowance.
The National Archives and Records Administration became an
independent agency on April 1, 1985. This appropriation
provides for basic operations dealing with management of the
Government's archives and records, operation of Presidential
libraries, grants for historical publications, and for the
review for declassification of all security classified
information.
Records center.--The records center activity provides for
the accessioning, storage, reference service, and disposal of
the semiactive and noncurrent records of Federal agencies
through a nationwide system of 14 records centers. Significant
savings result from use of low-cost records storage and the
efficient and timely disposal of nonpermanent records.
Archives and related services.--This activity provides for
selecting, preserving, describing, and making available to the
general public, scholars, and Federal agencies, the permanently
valuable historical records of the Federal Government and the
historical material in Presidential libraries, related
publications and exhibit programs, and the appraisal of all
Federal records. It also provides for the publication of the
Federal Register and Code of Federal Regulations, the U.S.
Statutes at Large, Presidential documents, and for a program to
improve the quality of regulations and the public's access to
them. It provides for the National Audiovisual Center's
audiovisual information and management programs. It also
provides for the systematic review of all classified records in
the National Archives which are over 30 years old, except
intelligence and cryptological materials dated after 1945,
which are to be reviewed when 50 years old.
Program direction.--This activity provides for general
direction and program support for all programs assigned to the
National Archives and Records Administration [NARA]. Direction
is provided by the Archivist, his staff, and the Office of
Management and Administration.

archives facilities and presidential libraries repair and restoration

Appropriations, 1996.................................... $1,500,000
Budget estimate,1997.................................... 2,750,000
House allowance......................................... 9,500,000

Committee recommendation

18,229,000

The Committee recommends an appropriation of $18,229,000.
The Committee recommendation is $15,479,000 above the budget
estimate and $8,729,000 above the House allowance.

REPAIRS AND RESTORATION

This account provides for the repair, alteration, and
improvement of the Archives facilities and Presidential
libraries nationwide, and for providing adequate storage for
archival holdings nationwide. It will better enable the
National Archives to provide adequate storage for holdings, to
maintain its facilities in proper condition for public
visitors, researchers, and employees in NARA facilities, and to
maintain the structural integrity of the buildings.

TRUMAN AND ROOSEVELT LIBRARIES

The Committee has provided $2,000,000 within this
appropriation for the repair, alteration, and improvements of
the Truman Library in Independence, MO, and funds for the
Roosevelt Library in Hyde Park, NY. The Committee requests the
National Archives to submit a plan for the expenditure of such
funds prior to obligation.

National Historical Publications and Records Commission

grants program

Appropriations, 1996.................................... $5,000,000
Budget estimate, 1997................................... 4,000,000
House allowance......................................... 4,000,000

Committee recommendation

5,000,000

The Committee recommends an appropriation of $5,000,000.
The Committee recommendation is $1,000,000 above the budget
request and the House allowance.
The National Historical Publications and Records Commission
[NHPRC] reviews and recommends project grants to Federal and
State governments and private nonprofit institutions, chiefly
universities and research libraries. It makes plans, estimates,
and recommendations for the publication of important historical
documents and works with various public and private
institutions in collecting, editing, and publishing papers
significant to the history of the United States. The Commission
is composed of members appointed by, and representing, the
President, Congress, Supreme Court, executive agencies, and
historical and archival societies.

Office of Government Ethics

salaries and expenses

Appropriations, 1996.................................... $7,776,000
Budget estimate, 1997................................... 8,078,000
House allowance......................................... 8,078,000

Committee recommendation

8,078,000

The Committee recommends an appropriation of $8,078,000 for
salaries and expenses of the Office of Government Ethics in
fiscal year 1997. This amount equals the budget request and the
House allowance.
Public Law 100-598 authorized the establishment of the
Office of Government Ethics as an independent executive branch
agency separate and apart from the Office of Personnel
Management beginning October 1, 1989.
The Office of Government Ethics functions primarily in six
areas, pursuant to the Ethics in Government Act of 1978. Those
areas are:
--Regulatory authority for conflict of interest and
postemployment statutes, standards of conduct, and
financial disclosure programs throughout the executive
branch;
--Public financial disclosure review and certification for
all advice and consent Presidential appointees, and the
monitoring of ethics agreements which are executed
incident to that review to prevent ethics violations;
--Education and training to promote understanding among
agency ethics officials and employees, as well as the
general public;
--Guidance and interpretation concerning the conflict of
interest statutes, standards of conduct and financial
disclosure, through advisory opinions, telephone
advice, and consultation with agency ethics officials;
--Enforcement by monitoring and auditing agency ethics
programs, and ordering corrective action where
appropriate; and
--Evaluation of the effectiveness of ethics laws and
regulations, as well as agency implementation.
The funding level provided by the Committee will support 91
full-time equivalent positions, or the same as the 1995 level.

Office of Personnel Management

salaries and expenses

Appropriations, 1996.................................... $88,000,000
Budget estimate, 1997................................... 87,076,000
House allowance......................................... 87,576,000

Committee recommendation

87,076,000

The Committee recommends an appropriation of $87,076,000
for the salaries and expenses of the Office of Personnel
Management. The Committee recommendation equals the budget
estimate and is $500,000 above the House allowance.
The Office of Personnel Management's primary
responsibilities include the Employment Service, Executive
Resource, Investigations Service, Human Resources Systems
Service, and the Merit Systems oversight and effectiveness
programs. OPM also has administrative responsibility for the
President's Commission on White House Fellowships, the Federal
Prevailing Rate Advisory Committee, and parts of the Voting
Rights Program.
The Committee has funded the initiatives requested by the
administration, as outlined in the budget justification, plus
the functions and personnel transferred from the General
Accounting Office, subsequent to enactment of Public Law 104-
53.

Excess Computer Equipment

The Committee supports the mandate of the regional Federal
executive boards to help facilitate the transfer of surplus
computer equipment from the Federal agencies they represent to
schools and nonprofit educational community based
organizations. The Federal executive boards should encourage
innovative initiatives such as promoting private sponsorship of
the costs of transporting surplus computer equipment to schools
and involving local nonprofit organizations in nonprofit reuse
or recycling programs which reduce costs to schools and the
Federal Government.

Downsizing Efforts

The Committee commends the OPM for its efforts to downsize
and streamline its activities. Those efforts have led to
elimination of redtape and increased service to customer
agencies. Since fiscal year 1993, OPM personnel have been
reduced by 43 percent. The functions of the agency have been
centralized and the OPM has made much better use of technology
and automation.

Health Promotion and Disease Prevention

The Committee has included $1,000,000 for the OPM to
continue and expand its efforts to ensure that Federal
employees and their families have ready access to health
promotion and disease prevention activities. The Committee
expects the OPM to continue to collaborate with the health
promotion and disease prevention center currently being
supported by the Centers for Disease Control and Prevention,
the Department of Health and Human Service, and in particular
to ensure that efforts are also made to develop innovative ways
to utilize video communication technology. The Committee
further expects the OPM to continue to utilize the unique
expertise that has been demonstrated by the University of
Hawaii in this project. The Committee further directs the OPM
to provide a report to the Congress on its health promotion and
disease prevention activities no later than December 31, 1997.

Blue Cross/Blue Shield Pharmacy Prescriptions for Medicare Eligible
Retired Federal Employees

In 1996, OPM approved a new 20 percent copayment on retail
pharmacy prescriptions provided under the Blue Cross/Blue
Shield FEHBP program for Medicare eligible retired Federal
employees.
The Committee believes that this change was made without
sufficient consideration of the impact on quality of care and
access to care for retirees.
The Committee also believes that OPM and Blue Cross/Blue
Shield should explore other cost management options and address
the disproportionate cost-sharing requirements that have been
placed on retirees. These options should preserve retiree
choice in selecting whether to use mail or retail pharmacy.
Therefore, the Committee urges Blue Cross/Blue Shield and
other FEHBP carriers to use all available expertise, including
the pharmacy community, public, and private prescription
benefit managers, and schools of public health in exploring
cost management options.
The Committee expects that in the future, OPM will assure
that drug plan contractors have more aggressive cost management
mechanisms in place before approving increases in enrollee cost
sharing.

Section 521--Federal Employees Health and Life Insurance for Treasury
Department Personal Service Contractors

Section 521 of the House bill would require that certain
Treasury Department personal service contractors [PSC's] who
work overseas be considered Federal employees for purposes of
Federal employees benefits [FEHB] and Federal employees group
life insurance [FEGLI]. These PSC's are hired under the Foreign
Assistance Act and regulations of the Agency for International
Development [AID], and are considered Federal employees for
some purposes but not for others, including Federal employees
benefit programs.
The Committee shares the House's concern that these
individuals should not be without some form of health coverage,
particularly since they are serving abroad in what are often
stressful and unhealthful locations. However, the Committee
also notes that the House provision would address the need of
only those PSC's who work for the Treasury Department, and not
those working for other agencies under this Governmentwide
authority. The Committee has also been advised by the Office of
Personnel Management [OPM] that the House provision would
probably not result in FEHB and FEGLI coverage for most of the
Treasury's PSC's, since they generally serve under 1 year
contracts, and would be excluded from FEHB and FEGLI by the
temporary nature of their service even if they were deemed
Federal employees as section 521 would require.
Accordingly, the Committee has deleted the House provision.
However, the Committee directs the Treasury Department, in
consultation with AID, other affected agencies, and OPM, to see
what administrative or, if necessary, legislative changes are
needed to provide reasonable and affordable insurance coverage
for these individuals. Treasury should report back to the
Senate and House Appropriations Committees on the matter by
February 1997.

Voting Rights Act

The Committee has included a provision requested by the
administration to allow Federal employees acting as Voting
Rights Act observers to receive per diem at their permanent
duty station. This provision will make it feasible for these
observers to work in local areas and allow the Government to
discontinue the practice of recruiting observers from distant
locations and assuming the per diem, as well as, travel costs.

Providing NonPublic Information Outside the Government

OPM provided home addresses or designated mailing addresses
of bargaining unit members to its labor unions last winter. The
Committee joins the House in expressing its concern about OPM's
failure to adhere to section 514 of Public Law 104-52, which
states:

None of the funds made available in this act may be
used to provide any nonpublic information such as
mailing or telephone lists to any person or any
organization outside of the Federal Government without
prior approval of the House and Senate Committees on
Appropriations.

The Committees received no notice of this action. The
Committee looks forward to the written response directed by the
House Committee regarding this issue.

limitation

(transfer of funds)

Appropriations, 1996.................................... ($102,536,000)
Budget estimate, 1997................................... (94,736,000)
House allowance......................................... (93,486,000)

Committee recommendation

(94,736,000)

The Committee recommends a limitation of $94,736,000. This
amount equals the budget request and is $1,250,000 above the
House allowance.
These funds will be transferred from the appropriate trust
funds of the Office of Personnel Management to cover
administrative expenses for the retirement and insurance
programs.

Office of Inspector General

salaries and expenses

Appropriations, 1996.................................... $4,009,000
Budget estimate, 1997................................... 960,000
House allowance......................................... 960,000

Committee recommendation

960,000

The Committee recommends an appropriation of $960,000 for
salaries and expenses of the Office of Inspector General in
fiscal year 1997. This amount equals the budget estimate and
the House allowance.
The Office of Inspector General was established as a
statutory entity under the Inspector General Act Amendments of
1988, Public Law 100-504, effective April 16, 1989. The Office
of Inspector General is charged with establishing policies for
conducting and coordinating efforts which promote economy,
efficiency, and integrity in the Office of Personnel
Management's activities which prevent and detect fraud, waste,
and abuse in the agency's programs. Furthermore, as a means of
assuring that inspector general offices maintain the ability to
function independently within the overall structure of their
agencies, the 1988 legislation required a direct semiannual
reporting structure among the inspector general and the agency
head and Congress and allowed inspectors general to perform a
number of internal management functions, such as budget,
personnel, and procurement, separate and apart from the
agencies' existing systems. The Office of Inspector General
carries out its programmatic mandate in three principal
operational areas: audits and inspections of OPM activities and
operations; investigations; and followup and reporting.
The administration has requested that funding for
operations of the Office of Inspector General be shifted from
its current allocation of 60 percent trust funds and 40 percent
general funds to 90 percent trust funds and 10 percent general
funds to reflect actual costs associated with actual work. This
appropriation reflects that change.

(limitation on transfer from trust funds)

Appropriations, 1996.................................... ($6,181,000)
Budget estimate, 1997................................... (8,645,000)
House allowance......................................... (8,645,000)

Committee recommendation

(8,645,000)

The Committee recommends a limitation on transfers from the
trust funds in support of the Office of Inspector General
activities totaling $8,645,000 for fiscal year 1997, as
requested. This amount equals the budget estimate and the House
allowance.

government payment for annuitants, employees health benefits

Appropriations, 1996.................................... $3,746,337,000
Budget estimate, 1997................................... 4,059,000,000
House allowance......................................... 4,059,000,000

Committee recommendation

4,059,000,000

The Committee recommends an appropriation of $4,059,000,000
for Government payments for annuitants, employees health
benefits. The Committee recommendation equals the budget
estimate and the House allowance.
This appropriation funds the Government's share of health
benefit costs for annuitants and survivors who no longer have
an agency to contribute the employer's share. The Office of
Personnel Management requests the appropriation necessary to
pay this contribution to the employees health benefits fund and
the retired employees health benefits fund. These revolving
trust funds are available for: (1) the payment of subscription
charges to approved carriers for the cost of health benefits
protection; (2) contributions for qualified retired employees
and survivors who carry private health insurance under the
Retired Employees Health Benefits Program; and (3) the payment
of expenses incurred by the Office of Personnel Management in
the administration of these programs.
Public Law 93-246 provides for Government contributions to
enrollees in the Employees Health Benefits Program equal to 60
percent of the unweighted average of the high-option premiums
of six large plans. The total obligations for fiscal year 1995
reflect the use of payments made by the U.S. Postal Service to
the employees health benefits fund to finance the cost of the
Government's contribution for annuitants health benefits as
provided in Public Law 100-203. In addition, Public Law 99-272
provides that the Government contribution for health benefits
for individuals who first become annuitants by reason of
retirement from employment with the U.S. Postal Service on or
after October 1, 1986, shall be paid by the U.S. Postal
Service.
This appropriation also provides financing for the
Government's share of health benefit costs for annuitants and
survivors covered under the Retired Employees Health Benefits
Program. Public Law 96-156 provides for increased Government
contributions toward the subscription charge for health
coverage, tied to increases in the cost of part B (medical) of
Medicare, for those annuitants who retired prior to July 1,
1960.

government payment for annuitants, employee life insurance

Appropriations, 1996.................................... $32,647,000
Budget estimate, 1997................................... 33,000,000
House allowance......................................... 33,000,000

Committee recommendation

33,000,000

The Committee recommends an appropriation of $33,000,000
for the Government payment for annuitants, employee life
insurance in fiscal year 1997. This amount equals the budget
request and the House allowance.
Public Law 96-427, the Federal Employees' Group Life
Insurance Act of 1980 requires that all employees under the age
of 65 who separate from the Federal Government for purposes of
retirement on or after January 1, 1990, continue to make
contributions toward their basic life insurance coverage after
retirement until they reach the age of 65. These retirees will
contribute two-thirds of the cost of the basic life insurance
premium, identical to the amount contributed by active Federal
employees for basic life insurance coverage. As with the active
Federal employees, the Government is required to contribute
one-third of the cost of the premium for basic coverage. OPM,
acting as the payroll office on behalf of Federal retirees, has
requested, and the Committee has provided, the funding
necessary to make the required Government contribution
associated with annuitants' postretirement life insurance
coverage.

payment to civil service retirement and disability fund

Appropriations, 1996.................................... $7,945,998,000
Budget estimate, 1997................................... 7,989,000,000
House allowance......................................... 7,989,000,000

Committee recommendation

7,989,000,000

The Committee recommends an appropriation of $7,989,000,000
for payment to the civil service retirement and disability
fund. The Committee recommendation equals the budget estimate
and the House allowance.
The civil service retirement and disability fund was
established in 1920 to administer the financing and payment of
annuities to retired Federal employees and their survivors. The
fund covers the operation of the Civil Service Retirement
System and the Federal Employees' Retirement System.
The payment to the civil service retirement and disability
fund consists of an appropriation and a permanent indefinite
authorization to pay the Government's share of retirement costs
as defined in the Civil Service Retirement Amendments of 1969
(Public Law 91-93), the Federal Employees' Retirement System
Act of 1986 (Public Law 99-335), and the Civil Service
Retirement Spouse Equity Act of 1985 (Public Law 98-615). The
payment is made directly from the general fund of the U.S.
Treasury, and is in addition to appropriated funds that will be
contributed from agency budgets in fiscal year 1997.
Public Law 91-93 provides for an annual appropriation to
amortize, over a 30-year period, all increases in Civil Service
Retirement System costs resulting from acts of Congress
granting new or liberalized benefits, extensions of coverage,
or pay raises. However, the effects of cost-of-living
adjustments are not amortized. The total current appropriation
for fiscal year 1997 is the sum of the annual payments
authorized since the law was enacted in 1969 ($7,716,171,000)
plus the estimated payment resulting from assumed pay raises
totaling 3 percent in January 1997 ($272,494,000). It also
includes funding for the annuities of persons employed on the
construction of the Panama Canal and widows of former
Lighthouse Service employees ($414,000). The total fiscal year
1997 current appropriation request represents an increase of
$272,176,000 from the amount provided in fiscal year 1996
primarily due to increases in employees' pay.
Public Law 91-93 also provides permanent, indefinite
authorization for the Secretary of the Treasury to transfer, on
an annual basis, an amount equal to 5 percent interest on the
civil service retirement and disability fund's current unfunded
liability, calculated based on static economic assumptions,
$9,367,173,000 and annuity disbursements attributable to credit
for military service of $3,328,007,000. The permanent
indefinite authorization in fiscal year 1997 will also include
the 9th of 30 annual payments of $233,700,000 authorized by
Public Law 99-335, Federal Employees' Retirement Act of 1986,
to amortize the supplemental liability of the Federal
Employees' Retirement System [FERS]. It also includes a payment
of $51,638,000 in accordance with Public Law 98-615 which
provides for the Secretary of the Treasury to transfer an
amount equal to the annuities granted to eligible former
spouses of annuitants who died between September 1978, and May
1985, and who did not elect survivor coverage.
The permanent indefinite authorization in fiscal year 1997
will total $12,980,518,000, an increase of $141,708,000 from
fiscal year 1996. This increase reflects a lower CSRS unfunded
liability interest payment of $32,827,000 and a higher payment
for military service credit of $174,535,000.

Revolving Fund

Appropriations, 1996....................................................
Budget estimate, 1997................................... $5,000,000
House allowance......................................... 4,755,000

Committee recommendation

5,000,000

The Committee recommends an appropriation of $5,000,000 for
this new account. This amount is equals the budget estimate and
$245,000 less than the House allowance.
The revolving fund which allows OPM to accept reimbursement
from other Federal agencies for specified personnel services
has developed a deficit of $33,700,000 over the last 10 years.
This appropriation is intended to assist in reducing this
deficit, and not provide for new services.

General Provisions--Office of Personnel Management

Section 421. The Committee has included a provision
requested by the administration to authorize OPM to accept
reimbursement for personnel management services provided to
revolving funds, Government-sponsored enterprises and other
nonappropriated fund instrumentalities. This is a technical
correction that allows OPM to provide the same reimbursable
service that it offers most Federal agencies.

Office of Special Counsel

salaries and expenses

Appropriations, 1996.................................... $7,840,000
Budget estimate, 1997................................... 8,311,000
House allowance......................................... 7,840,000

Committee recommendation

8,116,000

The Committee recommends an appropriation of $8,116,000 for
the Office of Special Counsel. The Committee recommendation is
$195,000 below the budget estimate and $276,000 above the House
allowance.
The Office of the Special Counsel of the U.S. Merit Systems
Protection Board is charged with enforcement of certain
provisions of the Civil Service Reform Act of 1978 (Public Law
95-454 and 5 U.S.C. 1204-1208). The primary functions of the
office are: (1) to investigate and, if appropriate, prosecute
prohibited personnel practices and activities prohibited by
other civil service law, rule, or regulation; (2) to
investigate and, if appropriate, prosecute prohibited political
activities on the part of Federal and covered State and local
employees; and (3) to provide employees a protected means of
disclosing information concerning wrongdoing in Federal
agencies with assurance that the confidentiality of the
discloser will be maintained and that appropriate action will
be taken.
The statute requires OSC to investigate and, if warranted,
prosecute: all allegations of prohibited personnel practices,
including reprisal for protected disclosures of information;
prohibited political activity; arbitrary or capricious
withholding of information under the Freedom of Information
Act; involvement of any employee in any prohibited
discrimination found by any court or appropriate administrative
authority; and any other activity prohibited by civil service
law, rule, or regulation. OSC also provides a safe channel for
disclosure of information evidencing waste, fraud, and abuse
and referral of such information to agencies.
The Committee recommendation denies funding for the
requested initiatives.

U.S. Tax Court

salaries and expenses

Appropriations, 1996.................................... $33,269,000
Budget estimate, 1997................................... 34,293,000
House allowance......................................... 33,269,000

Committee recommendation

34,293,000

The Committee recommends an appropriation of $34,293,000
for the U.S. Tax Court. This amount equals the budget estimate
and is $1,024,000 above the House allowance.
The U.S. Tax Court is an independent judicial body in the
legislative branch under article I of the Constitution of the
United States. The court is composed of a chief judge and 18
judges. Decisions by the court are reviewable by the U.S.
Courts of Appeals and, if certiorari is granted, by the Supreme
Court.
In their judicial duties the judges are assisted by senior
judges, who participate in the adjudication of regular cases,
and by special trial judges, who hear small tax cases and
certain regular cases assigned to them by the chief judge.
The court conducts trial sessions throughout the United
States, including Hawaii and Alaska.
The U.S. Tax Court hears and decides cases involving
Federal income, estate and gift tax deficiencies, and excise
taxes relating to public charities, private foundations,
qualified pension plans, real estate investment trusts, and
windfall profit tax on domestic crude oil. It also renders
declaratory judgments regarding the qualification or continuing
qualification (including revocations of rulings on the
exemptions) of retirement plans.
The Tax Court has jurisdiction to render declaratory
judgments with respect to exempt organization status
determinations pursuant to section 501(c)(3), Internal Revenue
Code, and to enter declaratory judgments on the tax treatment
of interest on proposed issues of Government obligations. In
addition, the court has jurisdiction over actions to restrain
disclosure and to obtain additional disclosure with respect to
public inspection of written determinations issued by the
Internal Revenue Service, and actions to compel the disclosure
of the identity of third-party contacts relating to written
determinations made by the Internal Revenue Service.
For 1997, the court proposes a trial program of 340 weeks
consisting of 150 weeks of regular trial sessions and 90 weeks
of small tax case sessions. In addition, the court plans to
schedule special sessions for lengthy trials consisting of
approximately 100 weeks. Trials are held in approximately 80
cities throughout the United States; 90 to 95 percent of the
Federal tax trial work occurs in the U.S. Tax Court.

STATEMENT CONCERNING GENERAL PROVISIONS

Traditionally, the Treasury, Postal Service, and General
Government appropriation bill has included general provisions
which govern both the activities of the agencies covered by the
bill, and, in some cases, activities of agencies, programs, and
general government activities that are not covered by the bill.
Those general provisions that are Governmentwide in scope are
contained in title VI of this bill.
The bill contains a number of general provisions that have
been carried in this bill for years and which are routine in
nature and scope. General provisions in the bill are explained
under this section of the report. Those general provisions that
deal with a single agency only are shown immediately following
that particular agency's or department's appropriation accounts
in the bill. Those general provisions that address activities
or directives affecting all of the agencies covered in this
bill are contained in title V of the bill.
TITLE V--GENERAL PROVISIONS

This Act

Sections 501, 502, 504-517, and 520, of the general
provisions contained in the accompanying bill are the same as
last year's bill and the House-passed bill. A summary of those
provisions follows, as well as, that of the Committee's
recommendation for new provisions, are sections 523-525 and
528-530:
Section 501 limiting the use of appropriated funds to the
current fiscal year;
Section 502 regarding consultant services;
Section 504 regarding enforcement of section 307 of the
Tariff Act;
Section 505 prohibiting the transfer of control over the
Federal Law Enforcement Training Center;
Section 506 regarding the use of funds for certain
propaganda purposes;
Section 507 prohibiting use of funds appropriated in this
act from being used to prevent certain Federal employees from
contacting their Member of Congress;
Section 508 permits the Office of Personnel Management to
accept donations for the Federal Executive Institute and
executive seminar centers;
Section 509 authorizes the Secret Service to accept
donations to offset the costs of protection of former
Presidents;
Section 510 regarding certain employment practices
regarding veterans;
Section 511 prohibits the use of funds to provide nonpublic
information such as mailing or telephone lists to any person or
organization outside of the Government;
Section 512 requires compliance with the Buy American Act;
Section 513 states the sense of the Congress regarding
notice and purchase of American-made products;
Section 514 prohibits an individual from eligibility for
Government contracts if a court determines that individual has
intentionally fraudulently affixed a ``Made in America'' label
to any product non-American made;
Section 515 prohibits any increases in the travel object
classification for any agency funded in this act without the
prior approval of the Committees on Appropriations;
Section 516 prohibits increases of travel funds for
agencies without appropriate Committee action. The original
language has been modified slightly to provide that it does not
apply to accounts that show no travel request in the budget
appendix. This change is necessary to allow agencies with
travel budgets below $1,000,000 to use these funds, when the
appendix did not show a request simply because the amount did
not round to $1,000,000. The Committee intends that small
agencies comply with the spirit of the provision. In any case
where it is apparent that travel obligations for an account
that did not show a travel amount in the President's request
will exceed $500,000 (and would, therefore, have appeared in
the appendix), the agency will first submit the proposed
amendment to the House and Senate Committees on Appropriations
for approval.
Section 517 defines area of authority for special police
officers of the Bureau of Engraving and Printing and the U.S.
Mint.
Section 520 prohibits implementation of an ATF ruling
pertaining to the citric acid content of vodka.
Section 523 provides for minting of gold coins.
Section 524 provides for minting of platinum coins.
Section 525 provides for voluntary separation incentive
payments (buyouts) for certain employees under the jurisdiction
of this bill.
Section 528 provides for reimbursement for certain legal
expenses incurred by former employees of the White House Travel
Office terminated on May 19, 1993.
Section 529 restricts funds available to the White House to
request official background reports without written consent of
the individual who is subject of the report.
Section 530 provides that the coins minted as a result of
sections 523 and 524 be minted at the Mint in West Point, NY.
TITLE VI--GENERAL PROVISIONS

Departments, Agencies, and Corporations

Sections 601-626 and 628-629 of the general provisions
contained in the accompanying bill are the same as last year's
bill and the House-passed bill. The Committee has included new
sections, 627, 629-636, and 639-643.
The Committee has recommended the inclusion of the
following general provisions:
Section 601 continues a provision authorizing agencies to
pay travel costs of the families of Federal employees on
foreign duty to return to the United States in the event of
death or a life threatening illness of the employee.
Section 602 continues a provision requiring agencies to
administer a policy designed to ensure that all of its
workplaces are free from the illegal use of controlled
substances.
Section 603 continues a provision authorizing reimbursement
for travel, transportation, and subsistence expenses incurred
for training classes, conferences, or other meetings in
connection with the provision of child care services to Federal
employees.
Section 604 continues a provision regarding price
limitations on vehicles to be purchased by the Federal
Government.
Section 605 continues a provision allowing funds made
available to agencies for travel to also be used for quarters
allowances and cost-of-living allowances.
Section 606 continues a provision prohibiting the
Government, with certain specified exceptions, from employing
non-U.S. citizens whose posts of duty would be in the
continental United States.
Section 607 continues a provision ensuring that agencies
will have authority to pay the General Services Administration
bills for space renovation and other services.
Section 608 continues a provision allowing agencies to
finance the costs of recycling and waste prevention programs
with proceeds from the sale of materials recovered through such
programs.
Section 609 continues a provision providing that funds may
be used to pay rent and other service costs in the District of
Columbia.
Section 610 continues a provision restricting the
President's recess appointment power.
Section 611 continues a provision authorizing agencies with
delegated authority to make direct expenditures to operate,
maintain, and repair its facilities using funds otherwise
available to make rental payments to GSA.
Section 612 continues a provision allowing agencies to use
foreign currency (for which the Treasury is to be reimbursed)
to carry out any program that the agency is authorized to carry
out under its dollar appropriations.
Section 613 continues a provision precluding the financing
of groups by more than one Federal agency absent prior and
specific statutory approval.
Section 614 continues a provision authorizing the Postal
Service to employ guards and give them the same special police
powers as GSA guards.
Section 615 continues a provision prohibiting the use of
funds for enforcing regulations disapproved in accordance with
the applicable law of the United States.
Section 616 continues a provision limiting the pay
increases of certain prevailing rate employees.
Section 617 continues a provision limiting the amount of
funds that can be used for redecoration of offices under
certain circumstances.
Section 618 continues a provision prohibiting the
expenditure of funds for the acquisition of additional law
enforcement training facilities without the advance approval of
the Committees on Appropriations.
Section 619 continues a provision permitting interagency
funding of national security and emergency preparedness
telecommunications initiatives, which benefit multiple Federal
departments, agencies, and entities.
Section 620 continues a provision requiring agencies to
certify that a schedule C appointment was not created solely or
primarily to detail the employee to the White House.
Section 621 continues a provision requiring agencies to
administer a policy designed to ensure that all of its
workplaces are free from discrimination and sexual harassment.
Section 622 continues a provision prohibiting the use of
funds for travel expenses not directly related to official
governmental duties.
Section 623 continues a provision requiring the President
to certify that persons responsible for administering the Drug
Free Workplace Program are not themselves the subject of random
drug testing.
Section 624 prohibits training not directly related to the
performance of official duties.
Section 625 continues a provision prohibiting the
expenditure of funds for the implementation of agreements in
certain nondisclosure policies unless certain provisions are
included in the policies.
Section 626 includes a provision regarding mandatory use of
FTS 2000.
Section 627 extends the termination date of the franchise
fund pilot program included in Public Law 103-356.
Section 628 limits the Secretary of the Treasury from
making loans to foreign entities unless certain criteria are
met.
Section 629 modifies a provision that provides law
enforcement credit to law enforcement officers hired during the
3-year transition period before FERS was fully implemented.
Section 630 mandates that Federal workers paid as part of
this act may not receive weekend or night differential pay for
hours which they do not work.
Section 631 regards lobbying by executive agency personnel.
Section 632 allows Federal employees to present views of
employee organizations, like child care centers, health and
fitness centers, recreation associations, and professional
associations before Government agencies.
Section 633 amends the disabled child survivor program of
the civil service retirement system and health benefits
provisions by allowing benefits which had been terminated
because of the marriage of the child if that child divorces.
Section 634 allows Federal employees involuntarily
separated to utilize unused annual leave toward meeting minimum
age and service requirements, thereby qualifying such employee
for immediate annuity.
Section 635 defines the terms ``senior'' official for
purposes of the Office of Government Ethics Act of 1996.
Section 636 grants authority for Federal Government
agencies to pay a portion of the professional liability
insurance costs incurred by certain of their employees.
Section 639 allows the National Archives and Records
Administration to recoup up to 50 percent of recycling savings
of the Federal Register during calendar year 1996.
Section 640 requires executive branch agencies to utilize
the private sector to review and analyze issues subject to
title LI of the National Defense Authorization Act of 1996.
Section 641 authorizes appropriations for the Merit Systems
Protection Board.
Section 642 authorizes appropriations for the Office of
Special Counsel.
Section 643 makes technical modifications to the National
Commission on Restructuring the Internal Revenue Service.
Section 644 allows for a pay raise for the U. S. Postal
Service Board of Governors.
Section 645 requires the Office of Management and Budget to
do an accounting statement and associated report on the
cumulative costs and benefits of Federal regulatory programs.
The Federal Government must be more sensitive to the rising
regulatory burden, now estimated to cost the Nation about
$600,000,000,000 annually--over $6,000 for the average American
household. The OMB must provide the public with notice and an
opportunity to comment on the draft accounting statement and
report before the reports are submitted to Congress. Regulatory
costs and benefits should be quantified to the extent feasible
and, where applicable, should be based on most plausible
estimates. Most of the needed information is already available
to the OMB. Executive Order 12866 requires cost-benefit
analyisis of significant rules, and private studies are
available.
TITLE VII--SUPPLEMENTAL APPROPRIATIONS AND RESCISSIONS FOR THE FISCAL
YEAR ENDING SEPTEMBER 30, 1996

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

salaries and expenses

Appropriations, 1996.................................... $377,971,000
Supplemental request, 1996.............................. 12,000,000
House allowance......................................... 12,011,000

Committee recommendation

12,011,000

The Committee recommends a supplemental appropriation of
$12,011,000 for the Bureau of Alcohol, Tobacco and Firearms.
This amount is $11,000 above the budget estimate and equals the
House allowance.
The Bureau has investigated nearly 60 church fires in the
past 18 months--of which the majority are African-American
churches. The majority of the fires have been in South
Carolina, North Carolina, Tennessee, and Louisiana; however,
have not been confined to these States. The ATF has assigned
135 agents, as well as, all of the other resources it has to
investigate and assist in these active investigations. These
funds are to be used for expenses associated with these
investigations.

Internal Revenue Service

Information Systems

(Rescission)

Appropriations, 1996.................................... $1,527,154,000
Administration rescission request....................... 12,000,000
House allowance......................................... -12,011,000

Committee recommendation

-16,500,000

The Committee recommends a rescission of $16,500,000 from
the funds appropriated for tax systems modernization in fiscal
year 1996 from Internal Revenue Service ``Information systems''
account.
COMPLIANCE WITH PARAGRAPH 7, RULE XVI, OF THE STANDING RULES OF THE
SENATE

Paragraph 7 of rule XVI requires that Committee reports on
general appropriations bills identify each Committee amendment
to the House bill ``which proposes an item of appropriation
which is not made to carry out the provisions of an existing
law, a treaty stipulation, or an act or resolution previously
passed by the Senate during that session.''
The Committee recommends the following appropriations which
lack authorization:
Department of the Treasury:
Departmental Offices:
Salaries and expenses, $111,348,000
Automation enhancements, $27,100,000
Treasury Building and annex, repair and
restoration, $43,684,000
Financial Crimes Enforcement Network, salaries and
expenses, $22,387,000
Federal Law Enforcement Training Center:
Salaries and expenses, $52,242,000
Acquisition, construction, improvements, and
related expenses, $19,884,000
Financial Management Service, salaries and expenses,
$196,338,000
Bureau of Alcohol, Tobacco and Firearms:
Salaries and expenses, $395,597,000
Laboratory facilities, $6,978,000
U.S. Customs Service:
Salaries and expenses, $1,421,543,000
Operation and maintenance, air and marine
interdiction programs, $83,363,000
Air interdiction procurement $45,000,000
Internal Revenue Service:
Processing, assistance, and management,
$1,728,840,000
Tax law enforcement, $4,085,355,000
Information systems, $1,240,473,000
Executive Office of the President:
The White House Office, salaries and
expenses, $40,193,000
Executive Residence at the White House,
operating expenses, $7,827,000
Special Assistance to the President, salaries
and expenses, $3,280,000
Council of Economic Advisers, salaries and
expenses, $3,439,000
National Security Council, salaries and
expenses, $6,648,000
Office of Administration, salaries and
expenses, $26,100,000
Office of Management and Budget, salaries and
expenses, $55,573,000
Office of National Drug Control Policy, salaries and
expenses, $34,838,000
Counterdrug Technology Assessment Center, salaries and
expenses, research and development, $17,000,000
Counternarcotics research and development projects,
$1,000,000
High-intensity drug trafficking areas, $103,000,000
State and local drug control activities,
$52,000,000
Federal agency drug control activities,
$51,000,000
Federal Election Commission, salaries and expenses,
$28,700,000
Federal Labor Relations Authority, salaries and expenses,
$21,588,000
General Services Administration, Federal buildings fund,
limitations on availability of revenue:
New construction, $657,724,000
District of Columbia:
Southeast Federal Center site
preparation, $20,000,000
Maryland:
Montgomery and Prince Georges
Counties--Food and Drug
Administration consolidation,
$13,000,000
Montana:
Babb, Piegan Border Station,
$333,000
Sweetgrass, border station,
$1,066,000
Nevada:
Las Vegas, U.S. courthouse,
$96,011,000
New York:
Brooklyn, U.S. courthouse,
$187,179,000
Ohio:
Cleveland, U.S. courthouse,
$142,291,000
Oregon:
Portland, consolidated law
Federal office building,
$86,000,000
Pennsylvania:
Philadelphia, Department of
Veterans Affairs--Federal
Complex, phase II, $15,156,000
Texas:
Corpus Christi, U.S.
courthouse, $26,610,000
Washington:
Blaine, U.S. border station,
$15,419,000
Oroville, U.S. border station,
$1,483,000
Seattle, U.S. courthouse,
$17,740,000
Sumas, U.S. border station,
(claim), $1,177,000
Nonprospectus Projects Program,
$10,000,000
Repairs and alterations, $616,990,000
District of Columbia:
Ariel Rios Building,
$62,740,000
Hawaii:
Honolulu, Prince Jonah Kuhio
Kalanianaole Federal Building
and U.S. courthouse, $4,140,000
Illinois:
Chicago, Everett M. Dirksen
Federal Building, $18,844,000
Chicago, John C. Kluczynski,
Jr. Federal Building [IRS],
$13,414,000
Massachusetts:
Andover, IRS Regional Service
Center, $812,000
New Hampshire:
Concord, J.C. Cleveland Federal
Building, $8,251,000
New Jersey:
Camden, U.S. Post Office-
courthouse $11,096,000
New York:
Albany, James T. Foley Post
Office-courthouse, $3,880,000
Brookhaven, IRS Service Center,
$2,272,000
New York, Jacob K. Javits
Federal Building, $13,651,000
Pennsylvania:
Scranton, Federal Building-U.S.
courthouse, $10,610,000
Rhode Island:
Providence, Federal Building-
U.S. courthouse, $8,209,000
Texas:
Fort Worth, Federal Center,
$11,259,000
Nationwide:
Chlorofluorcarbons program,
$43,533,000
Elevator program, $17,100,000
Energy program, $23,000,000
Advance design, $10,000,000
Basic repairs and alterations,
$360,000,000
Policy and operations, salaries and expenses,
$110,173,000
Merit Systems Protection Board, salaries and expenses,
$24,549,000
National Historical Publications and Records Commission,
$5,000,000
Office of Personnel Management, health promotion and
disease prevention activities, $1,000,000
Office of Special Counsel, salaries and expenses,
$8,116,000
U.S. Tax Court, salaries and expenses, $34,293,000

COMPLIANCE WITH PARAGRAPH 7(C), RULE XXVI OF THE STANDING RULES OF THE
SENATE

Pursuant to paragraph 7(c) of rule XXVI, the accompanying
bill was ordered reported from the Committee, subject to
amendment and subject to the subcommittee allocation, by
recorded vote of 28-0.
Yeas Nays
Chairman Hatfield
Mr. Stevens
Mr. Cochran
Mr. Specter
Mr. Domenici
Mr. Bond
Mr. Gorton
Mr. McConnell
Mr. Mack
Mr. Burns
Mr. Shelby
Mr. Jeffords
Mr. Gregg
Mr. Bennett
Mr. Campbell
Mr. Byrd
Mr. Inouye
Mr. Hollings
Mr. Johnston
Mr. Leahy
Mr. Bumpers
Mr. Lautenberg
Mr. Harkin
Ms. Mikulski
Mr. Reid
Mr. Kerrey
Mr. Kohl
Mrs. Murray

COMPLIANCE WITH PARAGRAPH 12, RULE XXVI OF THE STANDING RULES OF THE
SENATE

Paragraph 12 of rule XXVI requires that Committee reports
on a bill or joint resolution repealing or amending any statute
or part of any statute include ``(a) the text of the statute or
part thereof which is proposed to be repealed; and (b) a
comparative print of that part of the bill or joint resolution
making the amendment and of the statute or part thereof
proposed to be amended, showing by stricken-through type and
italics, parallel columns, or other appropriate typographical
devices the omissions and insertions which would be made by the
bill or joint resolution if enacted in the form recommended by
the committee.''
In compliance with this rule, the following changes in
existing law proposed to be made by the bill are shown as
follows: existing law to be omitted is enclosed in black
brackets; new matter is printed in italic; and existing law in
which no change is proposed is shown in roman.

Title 3, United States Code, section 203(a) is amended as
follows:

TITLE 3--THE PRESIDENT

* * * * * * *

CHAPTER 3--PROTECTION OF THE PRESIDENT; UNITED STATES SECRET SERVICE
UNIFORMED DIVISION

* * * * * * *

Sec. 203. Personnel, appointment, and vacancies

(a) The United States Secret Service Uniformed Division
shall consist of such number of officers, with grades
corresponding to similar officers of the Metropolitan Police
force, and of such number of privates, with grade corresponding
to that of private of the highest grade in the Metropolitan
Police force, as may be necessary [but not exceeding twelve
hundred in number].

Section 119 amends section 923(j) of title 18, United
States Code, as follows:

TITLE 18--CRIMES AND CRIMINAL PROCEDURE

PART I--CRIMES

* * * * * * *

CHAPTER 44--FIREARMS

* * * * * * *

Sec. 923. Licensing

(a) * * *
* * * * * * *
(j) This section shall not apply to anyone who engages only
in hand loading, reloading, or custom loading ammunition for
his own firearm, and who does not hand load, reload, or custom
load ammunition for others, including the right of a licensee
to conduct `curios or relics' firearms transfers and business
away from their business premises with another licensee without
regard as to whether the location of where the business is
conducted is located in the State specified on the license of
either licensee.

Section 409(a) amends section 210 of title 40, United
States Codes, as follows:

TITLE 40--PUBLIC BUILDINGS, PROPERTY, AND WORKS

* * * * * * *

CHAPTER 10--MANAGEMENT AND DISPOSAL OF GOVERNMENT PROPERTY

* * * * * * *

SUBCHAPTER II--PROPERTY MANAGEMENT

* * * * * * *

Sec. 490. Operation of buildings and related activities by
Administrator

(a) General duties
* * * * * * *
(k) Charges for space and services furnished by executive
agencies; approval of rates by Administrator; credit to
appropriation or fund

Any executive agency, other than the General Services
Administration, which provides to anyone space and services set
forth in subsection (j) of this section, is authorized to
charge the occupant for such space and services at rates
approved by the Administrator. Moneys derived by such executive
agency from such rates or fees shall be credited to the
appropriation or fund initially charged for providing the
service, except that amounts which are in excess of actual
operating and maintenance costs of providing the service shall
be credited to miscellaneous receipts unless otherwise
authorized by law.
``(l)(1) The Administrator may establish, acquire
space for, and equip flexiplace work telecommuting
centers (in this subsection referred to as
`telecommuting centers') for use by employees of Federal
agencies, State and local governments, and the private
sector in accordance with this subsection.
``(2) The Administrator may make any telecommuting
center available for use by individuals who are not
Federal employees to the extent the center is not being
fully utilized by Federal employees. The Administrator
shall give Federal employees priority in using the
telecommuting centers.
``(3)(A) The Administrator shall charge user fees for
the use of any telecommuting center. The amount of the
user fee shall approximate commercial charges for
comparable space and services except that in no instance
shall such fee be less than that necessary to pay the
cost of establishing and operating the center, including
the reasonable cost of renovation and replacement of
furniture, fixtures, and equipment.
``(B) Amounts received by the Administrator after
September 30, 1993, as user fees for use of any
telecommuting center may be deposited into the Fund
established under subsection (f) of this section and may
be used by the Administrator to pay costs incurred in
the establishment and operation of the center.
``(4) The Administrator may provide guidance,
assistance, and oversight to any person regarding
establishment and operation of alternative workplace
arrangements, such as telecommuting, hoteling, virtual
offices, and other distributive work arrangements.
``(5) In considering whether to acquire any space,
quarters, buildings, or other facilities for use by
employees of any executive agency, the head of that
agency shall consider whether the need for the
facilities can be met using alternative workplace
arrangements referred to in paragraph (4).

Section 409(b) amends section 612 of title 40, United
States Codes, as follows:

TITLE 40--PUBLIC BUILDINGS, PROPERTY, AND WORKS

* * * * * * *

CHAPTER 12--CONSTRUCTION, ALTERATION, AND ACQUISITION OF PUBLIC
BUILDINGS

* * * * * * *

Sec. 612. Definitions

As used in this chapter--
(1) The term ``public building'' means any building,
whether for single or multitenant occupancy, its grounds,
approaches, and appurtenances, which is generally suitable for
office or storage space or both for the use of one or more
Federal agencies or mixed ownership corporations, and shall
include: (i) Federal office buildings, (ii) post office, (iii)
customhouses, (iv) courthouses, (v) appraisers stores, (vi)
border inspection facilities, (vii) warehouses, (viii) record
centers, (ix) relocation facilities, [and (x)] (x)
telecommuting centers and (xi) similar Federal facilities, and
[(xi)] (xii) any other buildings or construction projects the
inclusion of which the President may deem, from time to time
hereafter, to be justified in the public interest; but shall
not include any such buildings and construction projects: (A)
on the public domain (including that reserved for national
forests and other purposes), (B) on properties of the United
States in foreign countries, (C) on Indian and native Eskimo
properties held in trust by the United States, (D) on lands
used in connection with Federal programs for agricultural,
recreational, and conservation purposes, including research in
connection therewith, (E) on or used in connection with river,
harbor, flood control, reclamation or power projects, or for
chemical manufacturing or development projects, or for nuclear
production, research, or development projects, (F) on or used
in connection with housing and residential projects, (G) on
military installations (including any fort, camp, post, naval
training station, airfield, proving ground, military supply
depot, military school, or any similar facility of the
Department of Defense), (H) on installations of the Department
of Veterans Affairs used for hospital or domiciliary purposes,
and (I) the exclusion of which the President may deem, from
time to time hereafter, to be justified in the public interest.

Section 410 repeals section 6 of Public Law 103-123, as
follows:

[Sec. 6. (a) The Act entitled ``An Act to provide
retirement, clerical assistants, and free mailing privileges to
former Presidents of the United States, and for other
purposes'', approved August 25, 1958 (3 U.S.C. 102 note), is
amended by adding at the end the following new section:
[``Sec. 2. The entitlements of a former President under
subsections (b) and (c) of the first section shall be
available--
[``(1) in the case of an individual who is a former
President on the effective date of this section, for 5
years, commencing on such effective date; and
[``(2) in the case of an individual who becomes a
former President after such effective date, for 4 years
and 6 months, commencing at the expiration of the
period for which services and facilities are authorized
to be provided under section 4 of the Presidential
Transition Act of 1963 (3 U.S.C. 102 note).''.
[(b) Section 3214 of title 39, United States Code, is
amended--
[(1) by striking ``A former President'' and inserting
``(a) Subject to subsection (b), a former President'';
and
[(2) by adding at the end the following new
subsection:
[``(b) Subsection (a) shall cease to apply--
[``(1) 5 years after the effective date of this
subsection, in the case of any individual who, on such
effective date--
[``(A) is a former President (including any
individual who might become entitled to the
mailing privilege under subsection (a) as the
surviving spouse of such a former President);
or
[``(B) is the surviving spouse of a former
President; and
[``(2) 4 years and 6 months after the expiration of
the period for which services and facilities are
authorized to be provided under section 4 of the
Presidential Transition Act of 1963 (3 U.S.C. 102
note), in the case of an individual who becomes a
former President after such effective date (including
any surviving spouse of such individual, as described
in the parenthetical matter in paragraph (1)(A)).''.
[(c) The amendments made by subsections (a) and (b) shall
take effect on October 1, 1993.]

Section 421 amends section 1304(e)(1) of title 5, United
States Code, as follows:

TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES

PART II--CIVIL SERVICE FUNCTIONS AND RESPONSIBILITIES

* * * * * * *

CHAPTER 13--SPECIAL AUTHORITY

* * * * * * *

Sec. 1304. Loyalty investigations; reports; revolving fund

(a) * * *
* * * * * * *
(e)(1) A revolving fund is available, to the Office without
fiscal year limitation, for financing investigations, training,
and such other functions as the Office is authorized or
required to perform on a reimbursable basis, including
personnel management services performed at the request of
individual agencies (which would otherwise be the
responsibility of such agencies), or at the request of
nonappropriated fund instrumentalities. However, the functions
which may be financed in any fiscal year by the fund are
restricted to those functions which are covered by the budget
estimates submitted to the Congress for that fiscal year. To
the maximum extent feasible, each individual activity shall be
conducted generally on an actual cost basis over a reasonable
period of time.

Section 523 amends section 5112(i)(4) of title 31, United
States Code, as follows:

TITLE 31--MONEY AND FINANCE

* * * * * * *

SUBTITLE IV--MONEY

* * * * * * *

CHAPTER 51--COINS AND CURRENCY

* * * * * * *

SUBCHAPTER II--GENERAL AUTHORITY

Sec. 5112. Denominations, specifications, and design of coins

(a) * * *
* * * * * * *
(i)(1) * * *
* * * * * * *
(4)(A) Notwithstanding any other provision of law and
subject to subparagraph (B), the Secretary of the Treasury may
change the diameter, weight, or design of any coin minted under
this subsection or the fineness of the gold in the alloy of any
such coin if the Secretary determines that the specific
diameter, weight, design, or fineness of gold which differs
from that otherwise required by law is appropriate for such
coin.
(B) The Secretary may not mint any coin with respect to
which a determination has been made by the Secretary under
subparagraph (A) before the end of the 30-day period beginning
on the date a notice of such determination is published in the
Federal Register.
``(C) The Secretary may continue to mint and issue
coins in accordance with the specifications contained in
paragraphs (7), (8), (9), and (10) of subsection (a) and
paragraph (1)(A) of this subsection at the same time the
Secretary in minting and issuing other bullion and proof
gold coins under this subsection in accordance with such
program procedures and coin specifications, designs,
varieties, quantities, denominations, and inscriptions
as the Secretary, in the Secretary's discretion, may
prescribe from time to time.'': Provided, That profits
generated from the sale of gold to the United States
Mint for this program shall be considered as a receipt
to be deposited into the General Fund of the Treasury.

Sections 524 and 530 amends section 5112 of title 31,
United States Code, as follows:

TITLE 31--MONEY AND FINANCE

* * * * * * *

SUBTITLE IV--MONEY

* * * * * * *

CHAPTER 51--COINS AND CURRENCY

* * * * * * *

SUBCHAPTER II--GENERAL AUTHORITY

Sec. 5112. Denominations, specifications, and design of coins

(a) * * *
* * * * * * *
(j) General Waiver of Procurement Regulations.--

(1) In general.--Except as provided in paragraph (2),
no provision of law governing procurement or public
contracts shall be applicable to the procurement of
goods or services necessary for minting, marketing, or
issuing any coin authorized under paragraph (7), (8),
(9), or (10) of subsection (a) or subsection (e),
including any proof version of any such coin.
(2) Equal employment opportunity.--Paragraph (1)
shall not relieve any person entering into a contract
with respect to any coin referred to in such paragraph
from complying with any law relating to equal
employment opportunity.
``(k) The Secretary may mint and issue bullion and
proof platinum coins in accordance with such
specifications, designs, varieties, quantities,
denominations, and inscriptions as the Secretary, in the
Secretary's discretion, may prescribe from time to
time.'': Provided, That the Secretary is authorized to
use Government platinum reserves stockpiled at the
United States Mint as working inventory and shall ensure
that reserves utilized are replaced by the Mint.
``(1) Mint facility for gold and platinum
coins.--Notwithstanding any other provision of
law, the United States Mint Facility at West
Point, New York, shall be used to strike and
distribute all gold coins and all platinum coins
minted by the Secretary under this title or any
other provision of law, including all proof and
uncirculated gold bullion coins and
commemorative coins.''.

Section 612 amends section 1306 of title 31, United States
Code, as follows:

TITLE 31--MONEY AND FINANCE

* * * * * * *

SUBTITLE II--THE BUDGET PROCESS

* * * * * * *

CHAPTER 13--APPROPRIATIONS

* * * * * * *

SUBCHAPTER I--GENERAL

* * * * * * *

[Sec. 1306. Use of foreign credits

[Foreign credits owed to or owned by the Treasury are not
available for expenditure by agencies except as provided
annually in general appropriation laws.]

``Sec. 1306. Use of foreign credits

``(a) In General.--Foreign credits (including
currencies) owed to or owned by the United States may be
used by any agency for any purpose for which
appropriations are made for the agency for the current
fiscal year (including the carrying out of Acts
requiring or authorizing the use of such credits), but
only when reimbursement therefor is made to the Treasury
from applicable appropriations of the agency.
``(b) Exception to Reimbursement Requirement.--Credits
described in subsection (a) that are received as
exchanged allowances, or as the proceeds of the sale of
personal property, may be used in whole or partial
payment for the acquisition of similar items, to the
extent and in the manner authorized by law, without
reimbursement to the Treasury.''.

Section 627 amends section 403(f) of Public Law 103-356, as
follows:

TITLE IV--FINANCIAL MANAGEMENT

* * * * * * *

SEC. 403. FRANCHISE FUND PILOT PROGRAMS.

* * * * * * *
(f) Termination.--The provisions of this section shall
expire on [October 1, 1999] October 1, 2001.

Section 629 amends section 640 of Public Law 104-52 (109
Stat. 513) as follows:

Sec. 640. [Service performed] Hereafter, service performed
during the period January 1, 1984, through December 31, 1986,
which would, if performed after that period, be considered
service as a law enforcement officer, as defined in section
8401(17) (A)(i)(II) and (B) of title 5, United States Code,
shall be deemed service as a law enforcement officer for the
purposes of chapter 84 of such title.

Section 632 amends subsection (d) of section 205 of title
18, United States Code, as follows:

TITLE 18--CRIMES AND CRIMINAL PROCEDURE

* * * * * * *

PART I--CRIMES

* * * * * * *

CHAPTER 11--BRIBERY, GRAFT, AND CONFLICTS OF INTEREST

* * * * * * *

Sec. 205. Activities of officers and employees in claims against and
other matters affecting the Government

(a) * * *
* * * * * * *
[(d) Nothing in subsection (a) or (b) prevents an officer
or employee, if not inconsistent with the faithful performance
of his duties, from acting without compensation as agent or
attorney for, or otherwise representing, any person who is the
subject of disciplinary, loyalty, or other personnel
administration proceedings in connection with those
proceedings.]
``(d)(1) Nothing in subsection (a) or (b) prevents an
officer or employee, if not inconsistent with the
faithful performance of that officer's or employee's
duties, from acting without compensation as agent or
attorney for, or otherwise representing--
``(A) any person who is the subject of
disciplinary, loyalty, or other personnel
administration proceedings in connection with
those proceedings; or
``(B) except as provided in paragraph (2), any
cooperative, voluntary, professional,
recreational, or similar organization or group
not established or operated for profit, if a
majority of the organization's or group's
members are current officers or employees of the
United States or of the District of Columbia, or
their spouses or dependent children.
``(2) Paragraph (1)(B) does not apply with respect to
a covered matter that--
``(A) is a claim under subsection (a)(1) or
(b)(1);
``(B) is a judicial or administrative
proceeding where the organization or group is a
party; or
``(C) involves a grant, contract, or other
agreement (including a request for any such
grant, contract, or agreement) providing for the
disbursement of Federal funds to the
organization or group.''.

Section 633 amends sections 8341(e), 8443(b), and 8908 of
title 5, United States Code, as follows:

TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES

* * * * * * *

PART III--EMPLOYEES

* * * * * * *

Subpart G--Insurance and Annuities

* * * * * * *

CHAPTER 83--RETIREMENT

* * * * * * *

SUBCHAPTER III--CIVIL SERVICE RETIREMENT

Sec. 8341. Survivor annuities

(a) * * *
* * * * * * *
(e)(1) For the purposes of this subsection, ``former
spouse'' includes a former spouse who was married to an
employee or Member for less than 9 months and a former spouse
of an employee or Member who completed less than 18 months of
service covered by this subchapter.
* * * * * * *
(3) The annuity of a child under this subchapter or under
the Act of May 29, 1930, as amended from and after February 28,
1948, commences on the day after the employee or Member dies,
or commences or resumes on the first day of the month in which
the child later becomes or again becomes a student as described
by subsection (a)(3) of this section, if any lump sum paid is
returned to the Fund. This annuity and the right thereto
terminate on the last day of the month before the child--
* * * * * * *
``(4) If the annuity of a child under this subchapter
terminates under paragraph (3)(E) because of marriage,
then, if such marriage ends, such annuity shall resume
on the first day of the month in which it ends, but only
if--
``(A) any lump sum paid is returned to the
Fund; and
``(B) that individual is not otherwise
ineligible for such annuity.''.
* * * * * * *

CHAPTER 84--FEDERAL EMPLOYEES' RETIREMENT SYSTEM

* * * * * * *

SUBCHAPTER IV--SURVIVOR ANNUITIES

Sec. 8443. Rights of a child

(a)(1) * * *
(b) The annuity of a child under this subchapter--
whichever occurs first. On the death of the surviving wife or
husband, or former wife or husband, or termination of the
annuity of a child, the annuity of any other child or children
shall be recomputed and paid as though the wife or husband,
former wife or husband, or child had not survived the
annuitant, employee, or Member. If the annuity of a child under
this subchapter terminates under subparagraph (E) because of
marriage, then, if such marriage ends, such annuity shall
resume on the first day of the month in which it ends, but only
if any lump sum paid is returned to the Fund, and that
individual is not otherwise ineligible for such annuity.
* * * * * * *

CHAPTER 89--HEALTH INSURANCE

Sec. 8908. Coverage of restored employees and survivor or disability
annuitants

(a) * * *
* * * * * * *
(c) * * *
``(d) A surviving child whose survivor annuity under
section 8341(e) or 8443(b) was terminated and is later
restored under paragraph (4) of section 8341(e) or the
last sentence of section 8443(b) may, under regulations
prescribed by the Office, enroll in a heath benefits
plan described by section 8903 or 8903a if such
surviving child was covered by any such plan immediately
before such annuity was terminated.''

Section 634 amends section 6302 of title 5, United States
Code, as follows:

TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES

* * * * * * *

PART III--EMPLOYEES

* * * * * * *

Subpart E--Attendance and Leave

* * * * * * *

CHAPTER 63--LEAVE

* * * * * * *

SUBCHAPTER I--ANNUAL AND SICK LEAVE

Sec. 6302. General provisions

(a) * * *
* * * * * * *
(f) * * *
``(g) An employee who is being involuntarily
separated from an agency due to a reduction in force or
transfer of function under subchapter I of chapter 35
may elect to use annual leave to the employee's credit
to remain on the agency's rolls after the date the
employee would otherwise have been separated if, and
only to the extent that, such additional time in a pay
status will enable the employee to qualify for an
immediate annuity under section 8336, 8412, or 8414, or
to qualify to carry health benefits coverage into
retirement under section 8905(b).''

Section 635 amends section 207(e)(6)(B) of title 18, United
States Code, as follows:

TITLE 18--CRIMES AND CRIMINAL PROCEDURE

* * * * * * *

PART I--CRIMES

* * * * * * *

CHAPTER 11--BRIBERY, GRAFT, AND CONFLICTS OF INTEREST

Sec. 207. Restrictions on former officers, employees, and elected
officials of the executive and legislative branches

(a) * * *
* * * * * * *
(e) * * *
* * * * * * *
(6) Limitation on restrictions.--(A) The restrictions
contained in paragraphs (2), (3), and (4) apply only to
acts by a former employee who, for at least 60 days, in
the aggregate, during the 1-year period before that
former employee's service as such employee terminated,
was paid a rate of basic pay equal to or greater than
an amount which is 75 percent of the basic rate of pay
payable for a Member of the House of Congress in which
such employee was employed.
(B) The restrictions contained in paragraph (5) apply
only to acts by a former employee who, for at least 60
days, in the aggregate, during the 1-year period before
that former employee's service as such employee
terminated, was employed in a position for which the
rate of basic pay, exclusive of any locality-based pay
adjustment under section 5302 of title 5 (or any
comparable adjustment pursuant to interim authority of
the President), is equal to or greater than the basic
rate of pay payable for [level V of the Executive
Schedule] level 5 of the Senior Executive Service.

Section 639 amends section 608 of Public Law 104-52, as
follows:

Sec. 608. In addition to funds provided in this or any
other Act, all Federal agencies are authorized to receive and
use funds resulting from the sale of materials recovered
through recycling or waste prevention programs, including
Federal records disposed of pursuant to a records schedule.
Such funds shall be available until expended for the following
purposes:
(1) Acquisition, waste reduction and prevention and
recycling programs as described in Executive Order
12873 (October 20, 1993), including any such programs
adopted prior to the effective date of the Executive
Order.
(2) Other Federal agency environmental management
programs, including but not limited to, the development
and implementation of hazardous waste management and
pollution prevention programs.
(3) Other employee programs as authorized by law or
as deemed appropriate by the head of the Federal
agency.

Section 641 amends section 8(a)(1) of title 5, United
States Code, as follows:

TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES

* * * * * * *

PART III--EMPLOYEES

* * * * * * *

Subpart D--Pay and Allowances

* * * * * * *

CHAPTER 55--PAY ADMINISTRATION

* * * * * * *

SUBCHAPTER I--GENERAL PROVISIONS

* * * * * * *

Sec. 5509. Appropriations

There are authorized to be appropriated sums necessary to
carry out the provisions of this title.
The remainder of the authority for this section is implied
from the statutes from which this title is derived.

Merit Systems Protection Board and Office of Special Counsel;
Authorization of Appropriations; Restriction on Appropriations

``(a) Authorization of Appropriations.--There are
authorized to be appropriated, out of any moneys in the
Treasury not otherwise appropriated--
``(1) for each of fiscal years [1993, 1994, 1995,
1996, and 1997,] 1998, 1999, 2000, 2001, and 2002 such
sums as necessary to carry out subchapter I of chapter
12 of title 5, United States Code (as amended by this
Act); and
``(2) for each of fiscal years 1993, 1994, 1995,
1996, and 1997, such sums as necessary to carry out
subchapter II of chapter 12 of title 5, United States
Code (as amended by this Act).
``(b) Restriction Relating to Appropriations Under the
Civil Service Reform Act of 1978.--No funds may be appropriated
to the Merit Systems Protection Board or the Office of Special
Counsel pursuant to section 903 of the Civil Service Reform Act
of 1978 [Pub. L. 95-454] (5 U.S.C. 5509 note).''

Section 643 amends section 637(b) of Public Law 104-52 (109
Stat. 510) as follows:

Sec. 637. National Commission on Restructuring the Internal
Revenue Service.--
(a) Findings.--The Congress finds the following:
(1) While the budget for the Internal Revenue Service
(hereafter referred to as the ``IRS'') has risen from
$2.5 billion in fiscal year 1979 to $7.3 billion in
fiscal year 1996, tax returns processing has not become
significantly faster, tax collection rates have not
significantly increased, and the accuracy and
timeliness of taxpayer assistance has not significantly
improved.
(2) To date, the Tax Systems Modernization (TSM)
program has cost the taxpayers $2.5 billion, with an
estimated cost of $8 billion. Despite this investment,
modernization efforts were recently described by the
GAO as ``chaotic'' and ``ad hoc''.
(3) While the IRS maintains that TSM will increase
efficiency and thus revenues, Congress has had to
appropriate additional funds in recent years for
compliance initiatives in order to increase tax
revenues.
(4) Because TSM has not been implemented, the IRS
continues to rely on paper returns, processing a total
of 14 billion pieces of paper every tax season. This
results in an extremely inefficient system.
(5) This lack of efficiency reduces the level of
customer service and impedes the ability of the IRS to
collect revenue.
(6) The present status of the IRS shows the need for
the establishment of a Commission which will examine
the organization of IRS and recommend actions to
expedite the implementation of TSM and improve service
to taxpayers.
(b) Composition of the Commission.--
(1) Establishment.--To carry out the purposes of this
section, there is established a National Commission on
Restructuring the Internal Revenue Service (in this
section referred to as the ``Commission'').
(2) Composition.--The Commission shall be composed of
thirteen members, as follows:
(A) Five members appointed by the President,
two from the executive branch of the
Government, two from private life, and one from
an organization that represents a substantial
number of Internal Revenue Service employees.
(B) Two members appointed by the Majority
Leader of the Senate, one from Members of the
Senate and one from private life.
(C) Two members appointed by the Minority
Leader of the Senate, one from Members of the
Senate and one from private life.
(D) Two members appointed by the Speaker of
the House of Representatives, one from Members
of the House of Representatives and one from
private life.
(E) Two members appointed by the Minority
Leader of the House of Representatives, one
from Members of the House of Representatives
and one from private life.
The Commissioner of the Internal Revenue Service shall be
an ex officio member of the Commission.
(3) [Chairman] Co-Chairs.--The Commission shall elect
[a Chairman] Co-Chairs from among its members.
(4) Meeting; quorum; vacancies.--After its initial
meeting, the Commission shall meet upon the call of the
[Chairman] Co-Chairs or a majority of its members.
[Seven] Nine members of the Commission shall constitute
a quorum. Any vacancy in the Commission shall not
affect its powers, but shall be filled in the same
manner in which the original appointment was made.
(5) Appointment; initial meeting.--
(A) Appointment.--It is the sense of the
Congress that members of the Committee should
be appointed not more than 60 days after the
date of the enactment of this section.
(B) Initial meeting.--If, after 60 days from
the date of the enactment of this section,
seven or more members of the Commission have
been appointed, members who have been appointed
may meet and select [a Chairman] Co-Chairs who
thereafter shall have the authority to begin
the operations of the Commission, including the
hiring of staff.
(c) Functions of Commission.--
(1) In general.--The functions of the Commission
shall be--
(A) to conduct, for a period of not to exceed
one year from the date of its first meeting,
the review described in paragraph (2), and
(B) to submit to the Congress a final report
of the results of the review, including
recommendations for restructuring the IRS.
(2) Review.--The Commission shall review--
(A) the present practices of the IRS,
especially with respect to--
(i) its organizational structure;
(ii) its paper processing and return
processing activities;
(iii) its infrastructure; and
(iv) the collection process;
(B) requirements for improvement in the
following areas:
(i) making returns processing
``paperless'';
(ii) modernizing IRS operations;
(iii) improving the collections
process without major personnel
increases or increased funding;
(iv) improving taxpayer accounts
management;
(v) improving the accuracy of
information requested by taxpayers in
order to file their returns; and
(vi) changing the culture of the IRS
to make the organization more
efficient, productive, and customer-
oriented;
(C) whether the IRS could be replaced with a
quasi-governmental agency with tangible
incentives and internally managing its programs
and activities and for modernizing its
activities, and
(D) whether the IRS could perform other
collection, information, and financial service
functions of the Federal Government.
(d) Powers of the Commission.--
(1) In general.--(A) The Commission or, on the
authorization of the Commission, any subcommittee or
member thereof, may, for the purpose of carrying out
the provisions of this section--
(i) hold such hearings and sit and act at
such times and places, take such testimony,
receive such evidence, administer such oaths,
and
(ii) require, by subpoena or otherwise, the
attendance and testimony of such witnesses and
the production of such books, records,
correspondence, memoranda, papers, and
documents, as the Commission or such designated
subcommittee or designated member may deem
advisable.
(B) Subpoenas issued under subparagraph (A)(ii) may
be issued under the signature of the [Chairman] Co-
Chairs of the Commission, the chairman of any
designated subcommittee, or any designated member, and
may be served by any person designated by such
[Chairman] Co-Chairs, subcommittee chairman, or member.
The provisions of sections 102 through 104 of the
Revised Statutes of the United States (2 U.S.C. 192-
194) shall apply in the case of any failure of any
witness to comply with any subpoena or to testify when
summoned under authority of this section.
(2) Contracting.--The Commission may, to such extent
and in such amounts as are provided in appropriation
Acts, enter into contracts to enable the Commission to
discharge its duties under this section.
(3) Information from federal agencies.--The
Commission is authorized to secure directly from any
executive department, bureau, agency, board,
commission, office, independent establishment, or
instrumentality of the Government, information,
suggestions, estimates, and statistics for the purposes
of this section. Each such department, bureau, agency,
board, commission, office, establishment, or
instrumentality shall, to the extent authorized by law,
furnish such information, suggestions, estimates, and
statistics directly to the Commission, upon request
made by the [Chairman] Co-Chairs.
(4) Assistance from federal agencies.--(A) The
Secretary of the Treasury is authorized on a
nonreimbursable basis to provide the Commission with
administrative services, funds, facilities, staff, and
other support services for the performance of the
Commission's functions.
(B) The Administrator of General Services shall
provide to the Commission on a nonreimbursable basis
such administrative support services as the Commission
may request.
(C) In addition to the assistance set forth in
subparagraphs (A) and (B), departments and agencies of
the United States are authorized to provide to the
Commission such services, funds, facilities, staff, and
other support services as they may deem advisable and
as may be authorized by law.
(5) Postal services.--The Commission may use the
United States mails in the same manner and under the
same conditions as departments and agencies of the
United States.
``(6) Gifts.--The Commission may accept, use,
and dispose of gifts or donations of services or
property in carrying out its duties under this
section.''
(e) Staff of the Commission.--
(1) In general.--The [Chairman] Co-Chairs, in
accordance with rules agreed upon by the Commission,
may appoint and fix the compensation of a staff
director and such other personnel as may be necessary
to enable the Commission to carry out its functions,
without regard to the provisions of title 5, United
States Code, governing appointments in the competitive
service, and without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of such
title relating to classification and General Schedule
pay rates, except that no rate of pay fixed under this
subsection may exceed the equivalent of that payable to
a person occupying a position at level V of the
Executive Schedule under section 5316 of title 5,
United States Code. Any Federal Government employee may
be detailed to the Commission without reimbursement
from the Commission, and such detailee shall retain the
rights, status, and privileges of his or her regular
employment without interruption.
(2) Consultant services.--The Commission is
authorized to procure the services of experts and
consultants in accordance with section 3109 of title 5,
United States Code, but at rates not to exceed the
daily rate paid a person occupying a position at level
IV of the Executive Schedule under section 5315 of
title 5, United States Code.
(f) Compensation and Travel Expenses.--
(1) Compensation.--(A) Except as provided in
subparagraph (B), each member of the Commission may be
compensated at not to exceed the daily equivalent of
the annual rate of basic pay in effect for a position
at level IV of the Executive Schedule under section
5315 of title 5, United States Code, for each day
during which that member is engaged in the actual
performance of the duties of the Commission.
(B) Members of the Commission who are officers or
employees of the United States or Members of Congress
shall receive no additional pay on account of their
service on the Commission.
(2) Travel expenses.--While away from their homes or
regular places of business in the performance of
services for the Commission, members of the Commission
[shall] may be allowed travel expenses, including per
diem in lieu of subsistence, in the same manner as
persons employed intermittently in the Government
service are allowed expenses under section 5703(b) of
title 5, United States Code.
(g) Final Report of Commission; Termination.--
(1) Final report.--Not later than one year after the
date of the first meeting of the Commission, the
Commission shall submit to the Congress its final
report, as described in subsection (c)(2).
(2) Termination.--(A) The Commission, and all the
authorities of this section, shall terminate on the
date which is 60 days after the date on which a final
report is required to be transmitted under paragraph
(1).
(B) The Commission may use the 60-day period referred
to in subparagraph (A) for the purpose of concluding
its activities, including providing testimony to
committees of Congress concerning its final report and
disseminating that report.
(h) Authorization of Appropriations.--Such sums as may be
necessary are authorized to be appropriated for the activities
of the Commission.
(i) Appropriations.--Notwithstanding any other provision of
this Act, $1,000,000 shall be available from fiscal year 1996
funds appropriated to the Internal Revenue Service,
``Information systems'' account, for the activities of the
Commission, to remain available until expended.

Section 644 amends section 202(a) of title 39, United
States Code, as follows:

TITLE 39--POSTAL SERVICE

* * * * * * *

PART I--GENERAL

* * * * * * *

CHAPTER 2--ORGANIZATION

* * * * * * *

Sec. 202. Board of Governors

(a) The exercise of the power of the Postal Service shall
be directed by a Board of Governors composed of 11 members
appointed in accordance with this section. Nine of the members,
to be known as Governors, shall be appointed by the President,
by and with the advice and consent of the Senate, not more than
5 of whom may be adherents of the same political party. The
Governors shall elect a Chairman from among the members of the
Board. The Governors shall be chosen to represent the public
interest generally, and shall not be representatives of
specific interests using the Postal Service, and may be removed
only for cause. Each Governor shall receive a salary of
[$10,000 a year] $30,000 a year plus $300 a day for not more
than 42 days of meetings each year and shall be reimbursed for
travel and reasonable expenses incurred in attending meetings
of the Board. Nothing in the preceding sentence shall be
construed to limit the number of days of meetings each year to
42 days.

BUDGETARY IMPACT OF BILL
PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS
AMENDED
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Budget authority Outlays
---------------------------------------------------
Committee Amount of Committee Amount of
allocation bill allocation bill
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee allocations
to its subcommittees of amounts in the First Concurrent
Resolution for 1997: Subcommittee on Treasury, Postal
Service, General Government:
Defense discretionary................................... ........... ........... ........... ...........
Nondefense discretionary................................ $10,081 $10,081 $11,012 \1\ $10,879
Violent crime reduction fund............................ 120 120 106 102
Mandatory............................................... 12,511 12,511 12,509 12,509
Projections of outlays associated with the recommendation:
1997.................................................... ........... ........... ........... \2\ 20,527
1998.................................................... ........... ........... ........... 1,675
1999.................................................... ........... ........... ........... 451
2000.................................................... ........... ........... ........... 270
2001 and future year.................................... ........... ........... ........... 230
Financial assistance to State and local governments for 1997
in bill.................................................... NA 16 NA 13
----------------------------------------------------------------------------------------------------------------
\1\ Includes outlays from prior-year budget authority.
\2\ Excludes outlays from prior-year budget authority.

NA: Not applicable.

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 1996 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL YEAR 1997
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Senate Committee recommendation compared with (+ or -)
Item 1996 appropriation Budget estimate House allowance Committee -----------------------------------------------------------
recommendation 1996 appropriation Budget estimate House allowance
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

TITLE I--DEPARTMENT OF THE TREASURY

Departmental Offices................................ $105,929,000 $120,577,000 $108,447,000 $111,348,000 +$5,419,000 -$9,229,000 +$2,901,000
Automation Enhancement.............................. .................. .................. 27,100,000 27,100,000 +27,100,000 +27,100,000 ..................
Office of Inspector General......................... 29,319,000 30,153,000 29,319,000 30,153,000 +834,000 .................. +834,000
Office of Professional Responsibility (to be derived
by transfer)....................................... .................. .................. (3,000,000) .................. .................. .................. (-3,000,000)
Treasury Buildings and Annex Repair and Restoration. 21,491,000 7,684,000 22,892,000 43,684,000 +22,193,000 +36,000,000 +20,792,000
Financial Crimes Enforcement Network................ 22,198,000 23,137,000 22,387,000 22,387,000 +189,000 -750,000 ..................
Treasury Forfeiture Fund (limitation on availability
of deposits)....................................... 10,000,000 10,000,000 7,500,000 10,000,000 .................. .................. +2,500,000
===========================================================================================================================================
Violent Crime Reduction Programs:
Departmental Offices............................ .................. .................. 5,971,000 .................. .................. .................. -5,971,000
Bureau of Alcohol, Tobacco and Firearms......... 21,010,000 21,437,000 47,624,000 31,450,000 +10,440,000 +10,013,000 -16,174,000
Gang Resistance Education and Training: Grants. 7,200,000 7,200,000 7,200,000 8,000,000 +800,000 +800,000 +800,000
United States Customs Service................... 25,690,000 35,283,000 15,005,000 38,900,000 +13,210,000 +3,617,000 +23,895,000
United States Secret Service.................... 21,600,000 28,761,000 20,200,000 24,500,000 +2,900,000 -4,261,000 +4,300,000
Federal Law Enforcement Training Center:
Salaries and Expenses.......................... 1,014,000 4,519,000 .................. 3,150,000 +2,136,000 -1,369,000 +3,150,000
Financial Crimes Enforcement Network............ .................. .................. 1,000,000 1,000,000 +1,000,000 +1,000,000 ..................
ONDCP--HIDTA.................................... .................. .................. .................. 13,000,000 +13,000,000 +13,000,000 +13,000,000
-------------------------------------------------------------------------------------------------------------------------------------------
Total, Violent Crime Reduction Programs....... 76,514,000 97,200,000 97,000,000 120,000,000 +43,486,000 +22,800,000 +23,000,000
===========================================================================================================================================
Federal Law Enforcement Training Center:
Salaries and Expenses........................... 36,070,000 50,518,000 51,681,000 52,242,000 +16,172,000 +1,724,000 +561,000
Acquisition, Construction, Improvements, and
Related Expenses............................... 9,663,000 9,884,000 18,884,000 19,884,000 +10,221,000 +10,000,000 +1,000,000
-------------------------------------------------------------------------------------------------------------------------------------------
Total, Federal Law Enforcement Training Cen-
ter.......................................... 45,733,000 60,402,000 70,565,000 72,126,000 +26,393,000 +11,724,000 +1,561,000
===========================================================================================================================================
Financial Management Service........................ 184,300,000 198,070,000 191,799,000 196,338,000 +12,038,000 -1,732,000 +4,539,000
===========================================================================================================================================
Bureau of Alcohol, Tobacco and Firearms:
Salaries and Expenses........................... 377,971,000 406,005,000 389,982,000 395,597,000 +17,626,000 -10,408,000 +5,615,000
Laboratory facilities........................... .................. 62,000,000 .................. 6,978,000 +6,978,000 -55,022,000 +6,978,000
-------------------------------------------------------------------------------------------------------------------------------------------
Total, Bureau of Alcohol, Tobacco and Fire-
arms......................................... 377,971,000 468,005,000 389,982,000 402,575,000 +24,604,000 -65,430,000 +12,593,000
===========================================================================================================================================
United States Customs Service:
Salaries and Expenses........................... 1,387,153,000 1,466,170,000 1,487,224,000 1,421,543,000 +34,390,000 -44,627,000 -65,681,000
Operation and Maintenance, Air and Marine
Interdiction Programs.......................... 64,843,000 83,363,000 83,363,000 83,363,000 +18,520,000 .................. ..................
Air Interdiction Procurement.................... .................. .................. 28,000,000 45,000,000 +45,000,000 +45,000,000 +17,000,000
Customs Services at Small Airports (to be
derived from fees collected)................... 1,406,000 2,406,000 2,406,000 2,406,000 +1,000,000 .................. ..................
Harbor Maintenance Fee Collection............... 3,000,000 3,000,000 3,000,000 3,000,000 .................. .................. ..................
-------------------------------------------------------------------------------------------------------------------------------------------
Total, United States Customs Service.......... 1,456,402,000 1,554,939,000 1,603,993,000 1,555,312,000 +98,910,000 +373,000 -48,681,000
===========================================================================================================================================
Bureau of the Public Debt........................... 170,000,000 171,910,000 165,335,000 165,335,000 -4,665,000 -6,575,000 ..................
Payment of Government Losses in Shipment............ 500,000 .................. .................. .................. -500,000 .................. ..................
===========================================================================================================================================
Internal Revenue Service:
Processing, Assistance, and Management.......... 1,723,764,000 1,779,663,000 1,722,985,000 1,728,840,000 +5,076,000 -50,823,000 +5,855,000
Tax Law Enforcement............................. 4,097,294,000 4,527,821,000 4,052,586,000 4,085,355,000 -11,939,000 -442,466,000 +32,769,000
Information Systems............................. 1,527,154,000 1,687,674,000 1,077,450,000 1,240,473,000 -286,681,000 -447,201,000 +163,023,000
Rescission...................................... .................. .................. -174,447,000 -174,447,000 -174,447,000 -174,447,000 ..................
-------------------------------------------------------------------------------------------------------------------------------------------
Total, Internal Revenue Service............... 7,348,212,000 7,995,158,000 6,678,574,000 6,880,221,000 -467,991,000 -1,114,937,000 +201,647,000
===========================================================================================================================================
United States Secret Service:
Salaries and Expenses........................... 531,944,000 516,182,000 528,368,000 519,265,000 -12,679,000 +3,083,000 -9,103,000
Acquisition, Construction, Improvement, and
Related Expenses............................... .................. 29,165,000 31,298,000 29,165,000 +29,165,000 .................. -2,133,000
-------------------------------------------------------------------------------------------------------------------------------------------
Total, United States Secret Service......... 531,944,000 545,347,000 559,666,000 548,430,000 +16,486,000 +3,083,000 -11,236,000
===========================================================================================================================================
Total, Title I, Department of the Treasury.. 10,380,513,000 11,282,582,000 9,974,559,000 10,185,009,000 -195,504,000 -1,097,573,000 +210,450,000
===========================================================================================================================================
TITLE II--POSTAL SERVICE

Payment to the Postal Service Fund.................. 85,080,000 102,817,000 85,080,000 90,433,000 +5,353,000 -12,384,000 +5,353,000
Payment to the Postal Service Fund for Nonfunded
Liabilities........................................ 36,828,000 .................. .................. .................. -36,828,000 .................. ..................
-------------------------------------------------------------------------------------------------------------------------------------------
Total, Title II, Postal Service............... 121,908,000 102,817,000 85,080,000 90,433,000 -31,475,000 -12,384,000 +5,353,000
===========================================================================================================================================
TITLE III--EXECUTIVE OFFICE OF THE PRESIDENT AND
FUNDS APPROPRIATED TO THE PRESIDENT

Compensation of the President and the White House
Office:
Compensation of the President................... 250,000 250,000 250,000 250,000 .................. .................. ..................
Salaries and Expenses........................... 39,459,000 40,193,000 40,193,000 40,193,000 +734,000 .................. ..................
Executive Residence at the White House:
Operating Expenses.............................. 7,827,000 7,827,000 7,827,000 7,827,000 .................. .................. ..................
White House Repair and Restoration.............. 2,200,000 .................. .................. .................. -2,200,000 .................. ..................
Special Assistance to the President and the Official
Residence of the Vice President:
Operating expenses.............................. 324,000 324,000 324,000 324,000 .................. .................. ..................
Salaries and Expenses........................... 3,280,000 3,280,000 3,280,000 3,280,000 .................. .................. ..................
Council of Economic Advisers........................ 3,180,000 3,439,000 3,439,000 3,439,000 +259,000 .................. ..................
Office of Policy Development........................ 3,867,000 3,867,000 3,867,000 3,867,000 .................. .................. ..................
National Security Council........................... 6,648,000 6,648,000 6,648,000 6,648,000 .................. .................. ..................
Office of Administration............................ 25,736,000 26,100,000 26,100,000 26,100,000 +364,000 .................. ..................
Office of Management and Budget..................... 55,573,000 55,573,000 55,573,000 55,573,000 .................. .................. ..................
Office of National Drug Control Policy.............. 26,900,000 34,838,000 34,838,000 34,838,000 +7,938,000 .................. ..................
Unanticipated Needs................................. 1,000,000 1,000,000 .................. 1,000,000 .................. .................. +1,000,000
Federal Drug Control Programs: High Intensity Drug
Trafficking Areas Program.......................... 103,000,000 103,000,000 113,000,000 103,000,000 .................. .................. -10,000,000
-------------------------------------------------------------------------------------------------------------------------------------------
Total, Title III, Executive Office of the
President and Funds Appropriated to the
President.................................... 279,244,000 286,339,000 295,339,000 286,339,000 +7,095,000 .................. -9,000,000
===========================================================================================================================================
TITLE IV--INDEPENDENT AGENCIES

Advisory Commission on Intergovernmental Relations.. 784,000 .................. .................. .................. -784,000 .................. ..................
Administrative Conference of the United States...... 600,000 .................. .................. .................. -600,000 .................. ..................
Committee for Purchase from People Who Are Blind or
Severely Disabled.................................. 1,800,000 1,800,000 1,800,000 1,800,000 .................. .................. ..................
Federal Election Commission......................... 26,521,000 29,371,000 27,524,000 28,700,000 +2,179,000 -671,000 +1,176,000
Federal Labor Relations Authority................... 20,542,000 21,988,000 21,588,000 21,588,000 +1,046,000 -400,000 ..................
General Services Administration:
Federal Buildings Fund:
Appropriation............................... 82,600,000 517,925,000 209,193,000 257,162,000 +174,562,000 -260,763,000 +47,969,000
Rescissions................................. (-55,000,000) .................. .................. .................. (+55,000,000) .................. ..................
Limitations on availability of revenue:
Construction and acquisition of
facilities............................. (545,002,000) (715,179,000) (540,000,000) (657,724,000) (+112,722,000) (-57,455,000) (+117,724,000)
Repairs and alterations................. (637,000,000) (775,034,000) (635,000,000) (616,990,000) (-20,010,000) (-158,044,000) (-18,010,000)
Installment acquisition payments........ (181,963,000) (173,075,000) (173,075,000) (173,075,000) (-8,888,000) .................. ..................
Rental of space......................... (2,326,200,000) (2,348,850,000) .................. (2,343,795,000) (+17,595,000) (-5,055,000) (+2,343,795,000)
Building Operations..................... (1,302,551,000) (1,575,151,000) (390,900,000) (1,532,465,000) (+229,914,000) (-42,686,000) (+1,141,565,000)
Operations and leasing.................. .................. .................. (3,903,205,000) .................. .................. .................. (-3,903,205,000)
Repayment of Debt....................... (73,433,000) (88,312,000) (88,312,000) (88,312,000) (+14,879,000) .................. ..................
Environmental cleanup activities........ .................. .................. (20,000,000) .................. .................. .................. (-20,000,000)
Automation enhancements................. .................. .................. (4,800,000) .................. .................. .................. (-4,800,000)
-------------------------------------------------------------------------------------------------------------------------------------------
Total, Federal Buildings Fund......... 82,600,000 517,925,000 209,193,000 257,162,000 +174,562,000 -260,763,000 +47,969,000
(Limitations)..................... (5,066,149,000) (5,675,601,000) (5,755,292,000) (5,412,361,000) (+346,212,000) (-263,240,000) (-342,931,000)
===========================================================================================================================================
Policy and Operations........................... 119,091,000 110,173,000 109,091,000 110,173,000 -8,918,000 .................. +1,082,000
Office of Inspector General..................... 33,274,000 33,863,000 33,274,000 33,863,000 +589,000 .................. +589,000
Allowances and Office Staff for Former Presi-
dents.......................................... 2,181,000 2,180,000 2,180,000 2,180,000 -1,000 .................. ..................
Expenses, presidential transition............... .................. 5,600,000 5,600,000 5,600,000 +5,600,000 .................. ..................
===========================================================================================================================================
Total, General Services Administration........ 237,146,000 669,741,000 359,338,000 408,978,000 +171,832,000 -260,763,000 +49,640,000
===========================================================================================================================================
John F. Kennedy Assassination Record Review Board... 2,150,000 2,150,000 2,150,000 2,150,000 .................. .................. ..................
Merit Systems Protection Board:
Salaries and Expenses........................... 24,549,000 24,549,000 23,297,000 24,549,000 .................. .................. +1,252,000
(Limitation on administrative expenses)......... (2,430,000) (2,430,000) (2,430,000) (2,430,000) .................. .................. ..................
National Archives and Records Administration:
Operating expenses.............................. 199,633,000 196,964,000 195,109,000 198,964,000 -669,000 +2,000,000 +3,855,000
Reduction of debt............................... -4,012,000 -4,012,000 -4,012,000 -4,012,000 .................. .................. ..................
Rescission...................................... .................. .................. -4,500,000 .................. .................. .................. +4,500,000
Repairs and Restoration......................... 1,500,000 2,750,000 9,500,000 18,229,000 +16,729,000 +15,479,000 +8,729,000
National Historical Publications and Records
Commission: Grants program..................... 5,000,000 4,000,000 4,000,000 5,000,000 .................. +1,000,000 +1,000,000
-------------------------------------------------------------------------------------------------------------------------------------------
Total, National Archives and Records
Administration............................. 202,121,000 199,702,000 200,097,000 218,181,000 +16,060,000 +18,479,000 +18,084,000
===========================================================================================================================================
Office of Government Ethics......................... 7,776,000 8,078,000 8,078,000 8,078,000 +302,000 .................. ..................
Office of Personnel Management:
Salaries and Expenses........................... 88,000,000 87,076,000 86,576,000 87,076,000 -924,000 .................. +500,000
(Limitation on administrative expenses)..... (102,536,000) (94,736,000) (93,486,000) (94,736,000) (-7,800,000) .................. (+1,250,000)
Office of Inspector General..................... 4,009,000 960,000 960,000 960,000 -3,049,000 .................. ..................
(Limitation on administrative expenses)..... (6,181,000) (8,645,000) (8,645,000) (8,645,000) (+2,464,000) .................. ..................
Revolving fund.................................. .................. 5,000,000 4,755,000 5,000,000 +5,000,000 .................. +245,000
Government Payment for Annuitants, Employees
Health Benefits................................ 3,746,337,000 4,059,000,000 4,059,000,000 4,059,000,000 +312,663,000 .................. ..................
Government Payment for Annuitants, Employee Life
Insurance...................................... 32,647,000 33,000,000 33,000,000 33,000,000 +353,000 .................. ..................
Payment to Civil Service Retirement and
Disability Fund................................ 7,945,998,000 7,989,000,000 7,989,000,000 7,989,000,000 +43,002,000 .................. ..................
-------------------------------------------------------------------------------------------------------------------------------------------
Total, Office of Personnel Management....... 11,816,991,000 12,174,036,000 12,173,291,000 12,174,036,000 +357,045,000 .................. +745,000
===========================================================================================================================================
Office of Special Counsel........................... 7,840,000 8,311,000 7,840,000 8,116,000 +276,000 -195,000 +276,000
United States Tax Court............................. 33,269,000 34,293,000 33,269,000 34,293,000 +1,024,000 .................. +1,024,000
===========================================================================================================================================
Total, Title IV, Independent Agencies......... 12,382,089,000 13,174,019,000 12,858,272,000 12,930,469,000 +548,380,000 -243,550,000 +72,197,000
(Limitation on administrative expenses)... (5,122,296,000) (5,781,412,000) (5,859,853,000) (5,518,172,000) (+395,876,000) (-263,240,000) (-341,681,000)
===========================================================================================================================================
TITLE VII--SUPPLEMENTAL APPROPRIATIONS AND
RESCISSIONS

Bureau of Alcohol, Tobacco and Firearms:
Salaries and Expenses........................... .................. .................. 12,011,000 12,011,000 +12,011,000 +12,011,000 ..................
(By transfer)............................... .................. (12,000,000) .................. .................. .................. (-12,000,000) ..................
Internal Revenue Service: Information Systems
(rescission)....................................... .................. .................. -12,011,000 -16,500,000 -16,500,000 -16,500,000 -4,489,000
-------------------------------------------------------------------------------------------------------------------------------------------
Total, Title VII, Supplemental Appropriations
and Rescissions (net)........................ .................. .................. .................. -4,489,000 -4,489,000 -4,489,000 -4,489,000
===========================================================================================================================================
Grand total................................... 23,163,754,000 24,845,757,000 23,213,250,000 23,487,761,000 +324,007,000 -1,357,996,000 +274,511,000
Fiscal year 1997 (net).................... (23,163,754,000) (24,845,757,000) (23,213,250,000) (23,492,250,000) (+328,496,000) (-1,353,507,000) (+279,000,000)
Appropriations........................ (23,163,754,000) (24,845,757,000) (23,392,197,000) (23,666,697,000) (+502,943,000) (-1,179,060,000) (+274,500,000)
Rescissions........................... .................. .................. (-178,947,000) (-174,447,000) (-174,447,000) (-174,447,000) (+4,500,000)
Fiscal year 1996 (net).................... .................. .................. .................. (-4,489,000) (-4,489,000) (-4,489,000) (-4,489,000)
(Limitations)............................. (5,122,296,000) (5,781,412,000) (5,859,853,000) (5,518,172,000) (+395,876,000) (-263,240,000) (-341,681,000)
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