[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

                              ----------                              
                                                                   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)

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

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

Appropriations, 1996....................................................
Budget estimate, 1997...................................................
House allowance.........................................     $28,000,000

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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