[House Report 105-240]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-240
_______________________________________________________________________


 
 TREASURY, POSTAL SERVICE, AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 
                                  1998

                                _______
                                

 August 5, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


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

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                       [To accompany H.R.  2378]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for the Treasury Department, the Postal Service, 
the Executive Office of the President, and certain Independent 
Agencies for the fiscal year ending September 30, 1998, and for 
other purposes.

                        INDEX TO BILL AND REPORT

_______________________________________________________________________


                                                            Page number

                                                            Bill Report
Summary of the Bill........................................


                  TITLE I--DEPARTMENT OF THE TREASURY

Automation Enhancement.....................................     3
                                                                     14
Bureau of Alcohol, Tobacco and Firearms....................    11
                                                                     24
Bureau of Engraving and Printing...........................      
                                                                     33
Bureau of the Public Debt..................................    17
                                                                     32
Departmental Offices.......................................     2
                                                                      9
Federal Law Enforcement Training Center....................     8
                                                                     21
Financial Crimes Enforcement Network.......................     5
                                                                     17
Financial Management Service...............................    10
                                                                     23
General Provisions--Treasury Department....................    23
                                                                     50
Interagency Law Enforcement................................    10
                                                                     22
Internal Revenue Service...................................    18
                                                                     38
Administrative Provisions--Internal Revenue Service........    20
                                                                     48
Office of Inspector General................................     4
                                                                     15
Office of Professional Responsibility......................     3
                                                                     13
Treasury Buildings and Annex Repair and Restoration........     5
                                                                     16
Treasury Forfeiture Fund...................................      
                                                                     18
United States Customs Service..............................    14
                                                                     26
United States Mint.........................................      
                                                                     36
United States Secret Service...............................    22
                                                                     48
Violent Crime Reduction Programs...........................     6
                                                                     19

                        TITLE II--POSTAL SERVICE

Payment to the Postal Service Fund.........................    41
                                                                     51

TITLE III--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO 
                             THE PRESIDENT

Compensation of the President and the White House Office...    42
                                                                     54
Council of Economic Advisers...............................    48
                                                                     60
Executive Residence at the White House.....................    43
                                                                     55
Federal Drug Control Programs..............................    52
                                                                     65
National Security Council..................................    49
                                                                     61
Office of Administration...................................    49
                                                                     62
Office of Management and Budget............................    50
                                                                     63
Office of National Drug Control Policy.....................    51
                                                                     64
Office of Policy Development...............................    48
                                                                     61
Special Assistance to the President and Official Residence 
    of the Vice President..................................    47
                                                                     59
Unanticipated Needs........................................      
                                                                     68

                     TITLE IV--INDEPENDENT AGENCIES

Committee for Purchase from People who are Blind or 
    Severely Disabled......................................    54
                                                                     68
Federal Election Commission................................    54
                                                                     69
Federal Labor Relations Authority..........................    55
                                                                     71
General Services Administration............................    56
                                                                     72
General Services Administration--General Provisions........    61
                                                                     82
John F. Kennedy Assassination Records Review Board.........    66
                                                                     83
Merit Systems Protection Board.............................    66
                                                                     84
Morris K. Udall Foundation.................................    65
                                                                     84
National Archives and Records Administration...............    67
                                                                     85
Office of Government Ethics................................    68
                                                                     87
Office of Personnel Management.............................    68
                                                                     88
Office of Special Counsel..................................    72
                                                                     92
United States Tax Court....................................    72
                                                                     92

                      TITLE V--GENERAL PROVISIONS

This Act...................................................    72
                                                                     93

                      TITLE VI--GENERAL PROVISIONS

Departments, Agencies, and Corporations....................    81
                                                                     94
Compliance with House Rules................................      
                                                                     97
Tables.....................................................      
                                                                    126

                       Summary of the Total Bill

    The accompanying bill contains recommendations for new 
budget (obligational) authority for fiscal year 1998 for the 
Department of the Treasury, the Postal Service, various offices 
in the Executive Office of the President, and certain 
Independent Agencies. The following table summarizes these 
Recommendations and reflects comparisons with the budget, as 
amended, and with amounts appropriated to date for fiscal year 
1997:


                             recommendation

    The Committee has provided a total of $12.5 billion in 
discretionary resources for the agencies under its 
jurisdiction. After scorekeeping adjustments, this represents 
an increase of $674 million in budget authority from 1997 
enacted levels and a decrease of $596 million from the amount 
requested by the President. The Committee's recommendation is 
the same as the amount provided to the subcommittee in its 
section 602(b) allocation.

                           general statement

    Over the past two years, the Committee has been committed 
to restructuring, streamlining, and consolidating agencies and 
functions under its jurisdiction. While the Committee has been 
pleased with the efforts of some agencies in this regard, it 
remains seriously concerned about a clear lack of effort by 
others. Over the past two years, proposals for reform advanced 
by the Committee were undertaken because the Committee 
identified certain vulnerabilities in agency operations; they 
were also initiated because the Committee believed that 
restructuring and streamlining would ultimately result in a 
more efficient delivery of federal services. The Committee is 
concerned that, in certain instances, reforms and suggestions 
for modifications to agency operations have been ignored. In 
these instances, the Committee has taken action in order to 
ensure that these concerns are addressed in the upcoming year.
    During the fiscal year 1998 hearing cycle, the Committee 
was concerned to discover certain systemic vulnerabilities 
among agency operations. Left ignored, the Committee believes 
that these vulnerabilities will not only expose federal 
taxpayers to unnecessary and wasteful spending, but may also 
result in programmatic failures. In every instance where the 
Committee has identified risk in agency operations, the 
Committee has taken remedial action.
    The Committee takes this opportunity to reiterate that it 
takes its oversight responsibilities seriously. The Committee 
also believes that it must be consistent with the application 
of this responsibility; as such, the fiscal year 1998 
recommendation does not exempt any agency from appropriate 
budgetary oversight, not even the Executive Office of the 
President. The Committee has made every attempt to be objective 
in its assessment of agency performance and it is only in those 
instances where the Committee finds potential for operational 
or systemic vulnerabilities that remedial action is taken.
    The Committee is aware that there will be some instances, 
most notably within the Executive Office of the President, 
where critics will argue that Congressional oversight is 
unprecedented. The Committee has considered these concerns and 
believes that, perhaps, one of the reasons that certain systems 
and operations have become vulnerable to waste is precisely 
because oversight has been absent. The Committee also notes 
that, while oversight of some programs and agencies is 
unprecedented, it is not unjustified. The Committee is adamant 
that all agencies under its jurisdiction become accountable for 
the expenditure of taxpayer dollars; accountability is the 
cornerstone for success.

              targeting high risk programs and activities

    The Committee believes that certain programs and activities 
under its jurisdiction are at high risk of failure. The 
Committee urges the Administration to carefully review these 
activities and to take aggressive and comprehensive action.
    In the area of technology investment, the Committee notes 
that it is pleased with the Office of Management and Budget's 
(OMB) directive of October 25, 1996, regarding investments in 
new technology government-wide. With this in mind, the 
Committee was surprised to see requests for appropriations that 
clearly did not meet the criteria established in that 
directive. For instance, in the case of the Customs' Automated 
Commercial Environment system, the Executive Office of the 
President's Capital Investment Plan, and the Internal Revenue 
Service's Tax System Modernization proposal, agencies failed to 
include key components such as a systems architecture plan, 
disciplined and structured management forums, and mature 
investment screening processes. The Committee believes that 
requests for appropriations for these particular systems were 
premature and, while the Committee recognizes the need for and 
has funded these initiatives, it has fenced these resources 
pending the development and submission of appropriate 
architectural blueprints. The Committee believes this action is 
necessary in order to reduce the risk of funding costly systems 
that may, ultimately, not meet agency business requirements.
    The Committee was also surprised to learn of the $680 
million shortfall in the General Service's Administration's 
Federal Building Fund (FBF). It is the responsibility of the 
General Services Administration to ensure a sound and 
achievable public buildings program. In the past, the Committee 
has assumed that GSA's estimates of income into the FBF have 
been accurate. Unfortunately, the Committee has based its 
recommendations for the construction of new federal buildings, 
border stations and Courthouses on these estimates. The 
Committee has been disappointed to learn that this account 
cannot sustain any new initiatives in the upcoming year and 
notes that the effect of this shortfall is that construction, 
repairs, and renovations on 19 Courthouses, 3 Border Stations, 
and 15 Federal Buildings will be delayed. The Committee will 
therefore now require the GSA to submit quarterly reports on 
FBF income and obligations as well as the total effect on 
underestimating revenues in this account over the past three 
years.
    The Committee was pleased to see the President's revived 
commitment to federal drug efforts. However, the Committee is 
also concerned that the President's request to provide $175 
million for an un-tried and un-tested initiative such as a 
media campaign brings with it substantial risk. The Committee 
has provided $195 million of the President's request but makes 
the obligation of these funds contingent upon the submission of 
a detailed strategy, including quantifiable measures of 
performance.
    Finally, the Committee has recommended several significant 
changes to the funding of the Executive Residence of the White 
House. The Committee was concerned to learn that taxpayer 
dollars have been used to subsidize the cost of certain 
political events within the Executive Residence. While the 
Committee recognizes the President's prerogative to host 
political events within the White House complex, the Committee 
is opposed to what has amounted to the taxpayer subsidizing 
these events. The Committee notes that changes to the Executive 
Residence appropriation are being made to ensure full and open 
accountability within what the President has referred to as 
``the people's house''.

                        access to the committee

    The Committee is extremely displeased to learn that, in at 
least two separate instances, agencies have directed that only 
designated individuals may communicate with the Appropriations 
Committee, thus severely limiting the crucial lines of 
communication between agencies and the Committee. The Committee 
is disdainful of such action. The Committee has a long history 
of communicating with agency budget and program managers who 
possess the detailed and intricate information that is critical 
to successful Committee operations. The Committee finds that 
this existing arrangement is effective and meets its needs. The 
Committee believes that communication of such detailed and 
intricate information on a second hand nature would put the 
effective and efficient oversight operations of the Committee 
in grave jeopardy. The Committee will simply not permit any 
changes to the established communication arrangement. In order 
to ensure that the lines of communication are kept open between 
the Committee and the agencies, the Committee has modified an 
existing general provision which states that no funds 
appropriated in this Act can be used to initiate and carry 
through with such action.

                reprogramming and transfer requirements

    The Committee is concerned about the number of changes 
being made to object classes, budget activities, program line 
items and program activities that do not meet the reprogramming 
guidelines established by the Committee. In some instances, the 
Committee has noted changes in object classes that exceed 100 
percent. While the Committee does not wish to place unnecessary 
burdens on agencies in the submission of reprogramming 
requests, the Committee also believes that changes in the 
magnitude of 100 percent warrant the Committee's attention. The 
Committee has made modest modifications to the reprogramming 
requirements and urges budget officers to consult with the 
Committee prior to and during the submission of a reprogramming 
request.
    The Committee repeats its expectation that agency 
justifications for proposed reprogramming requests should 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 1998 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, in budget 
        activity, program line item, or program activity 
        involved is in excess of $500,000 or 10 percent of the 
        object class, budget activity, program line item, or 
        program activity;
          (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 of the object class, budget 
        activity, program line item, or program activity;
          (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 or 
        past reprogramming actions added to the new 
        reprogramming would exceed the dollar threshold 
        mentioned above;
          (5) For any actions where funds earmarked for a 
        specific activity are proposed to be used for another 
        activity; and
          (6) For any actions where funds earmarked for a 
        specific activity are in excess to meet the project or 
        activity requirement, and are proposed to be used for 
        another activity.
    The Committee is concerned that past transfer and 
reprogramming authority has been overutilized and often used by 
agencies for reorganizations that have major policy 
implications. Such transfers and reprogramming are interpreted 
by the Committee as circumventing the appropriations process 
and will not be condoned.

                 government performance and results act

    The Committee considers the full and effective 
implementation of the Government Performance and Results Act, 
P.L. 103-62, to be a priority for all agencies of government.
    Starting with fiscal year 1999, the Results Act requires 
each agency to ``prepare an annual performance plan covering 
each program activity set forth in the budget of such agency''. 
Specifically, for each program activity the agency is required 
to ``establish performance goals to define the level of 
performance to be achieved by a program activity'' and 
``performance indicators to be used in assessing the relevant 
outputs, service levels, and outcomes of each program 
activity''.
    The Committee takes this requirement of the Results Act 
very seriously and plans to carefully examine agency 
performance goals and measures during the appropriations 
process. As a result, starting with the fiscal year 1999 
appropriations cycle, the Committee will consider agencies' 
progress in articulating clear, definitive, and results-
oriented (outcome) goals and measures as it reviews requests 
for appropriations.
    The Committee suggests agencies examine their program 
activities in light of their strategic goals to determine 
whether any changes or realignments would facilitate a more 
accurate and informed presentation of budgetary information. 
Agencies are encouraged to consult with the Committee as they 
consider such revisions prior to finalizing any requests 
pursuant to 31 U.S.C. 1104. The Committee will consider any 
requests with a view toward ensuring that fiscal year 1999 and 
subsequent budget submissions display amounts requested against 
program activity structures for which annual performance goals 
and measures have been established.

                  TITLE I--DEPARTMENT OF THE TREASURY

                          Departmental Offices

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............      $112,048,000
Budget estimate, fiscal year 1998.....................       116,314,000
Recommended in the bill...............................       113,410,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        +1,362,000
    Budget estimate, fiscal year 1998.................        -2,904,000
                                                                        

                                mission

    The Departmental Offices' function in the Treasury 
Department is to provide basic support to the Secretary of the 
Treasury, who is the chief operating executive of the 
Department. The Secretary of the Treasury maintains the primary 
role in formulating and managing the domestic and international 
tax and financial policies of the Federal Government. The 
Secretary's responsibilities funded by the salaries and 
expenses appropriation include: recommending and implementing 
United States domestic and international economic and tax 
policy; fiscal policy; governing the fiscal operations of the 
Government; maintaining foreign assets control; managing the 
public debt; overseeing the law enforcement functions carried 
out by the Treasury Department; managing development of 
financial policy; representing the United States on 
international monetary, trade and investment issues; overseeing 
Treasury Department overseas operations; and directing the 
administrative operations of the Treasury Department.

                             recommendation

    The Committee recommends $113,410,000 for the Departmental 
Offices appropriation. This is $2,904,000 below the request and 
$1,362,000 above the 1997 level. The Committee has provided 
$2,244,000 to maintain current levels, $558,000 for 
annualization of the 1997 pay raise, and $150,000 for 
diplomatic telecommunications. The Committee has provided 
adequate funding to allow the Department to provide no more 
than $500,000 in contract awards to the National Law Center for 
Inter-American Free Trade for the explicit purpose of 
supporting Federal government efforts to conduct legal research 
specific to relevant trade issues.

  transfer of funds from the treasury inspector general appropriation

    The Committee has included language in the appropriation 
for the Department of the Treasury, Inspector General, which 
transfers $26,034 to the Departmental Offices appropriation. 
These funds shall be used to reimburse Secret Service agents 
who apparently were the subject of an Inspector General 
investigation concerning testimony these agents gave to 
Congress. These funds shall be used to reimburse the agents for 
any attorney fees and costs they incurred with respect to that 
investigation. The Secretary shall pay these individuals in 
accordance with Section 117 of Title I of this Act.

                oversight and management accountability

    The Committee is concerned about the apparent absence of 
oversight and management over the administrative functions of 
the Department and its bureaus. This lack of management has 
manifested itself in a lack of communication with Congress. To 
exacerbate the situation, the Department has at times issued 
decrees to bureaus prohibiting or limiting communication with 
Congressional panels.
    Congressionally-imposed reporting requirements and 
communication with the bureaus are the tools used by this 
Committee and others, to communicate concerns and to exercise 
oversight. It is a basic tenet of Federal agency management to 
take all steps necessary to respond to these communications and 
requirements in a punctual and professional manner. The 
Committee is hopeful that the Department of Treasury will 
recognize its requirement to ensure adequate oversight and 
management and will soon actively address this issue.

                compliance with congressional direction

    The Committee is extremely concerned to learn of a recent 
opinion issued by the Office of General Counsel that report 
language which accompanied the 1996 Treasury Appropriations Act 
does not supersede report language which accompanied the 1988 
Appropriations Act. Specifically, although the 1996 report 
language very clearly stated that it was the Committee's intent 
to overturn the 1998 report language, the General Counsel's 
opinion does not recognize this intent. The Committee has 
carefully reviewed circumstances surrounding the General 
Counsel's opinion on this matter and, although the Committee is 
aware that it may not be privy to all of the information 
surrounding this opinion, it does, unfortunately, believe that 
the General Counsel may have been motivated by political 
concerns rather than sound program management in issuing this 
opinion. The Committee notes that the effect of the opinion of 
the General Counsel was to stop all activity related to an item 
of Congressional interest. In effect, despite the fact that the 
report accompanied a bill signed into law by the President, the 
General Counsel in effect ``vetoed'' a single provision 
included in that bill. The Committee will carefully follow all 
subsequent intervention by the Office of the General Counsel on 
this issue.
    The Committee takes this opportunity to remind the Office 
of the General Counsel that the best evidence of Committee 
intent relating to programs, projects and activities funded 
through this Appropriations bill is the report accompanying the 
bill. The Department of Treasury should continue to rely on 
Committee report language to interpret Congressional intent.

     financial management accountability transportation trust funds

    The Committee is concerned by the Department of Treasury's 
stewardship of the federal government's transportation trust 
funds and the lack of proper accounting of receipts into these 
funds.
    In 1994, the Treasury Department incorrectly recorded 
receipts to the highway trust fund which resulted in the $1.5 
billion overestimation of 1995 contributions. More recently, 
the Treasury Department improperly informed the Federal 
Aviation Administration (FAA) that incoming receipts to the 
airport and airway trust fund would be credited to the trust 
fund, not knowing that legislative authority to do so had 
expired. In addition, the Internal Revenue Service (IRS) 
provided an opinion to major air carriers that had the effect 
of deferring $1 billion in tax collections to the airport and 
airway trust fund, an opinion which was not transmitted to the 
Treasury Department or the FAA. In combination, these actions 
nearly required the FAA to terminate all airport improvement 
grants and most facilities and equipment contracts until fiscal 
year 1998 which potentially jeopardized aviation safety and 
security.
    The Treasury Department may also have miscalculated the 
receipts to the mass transit account of the highway trust fund. 
This has precluded the Federal Transit Authority from 
negotiating anticipated full funding grant agreements.
    The Treasury Department has a fiduciary responsibility for 
proper management of the trust funds but, as these situations 
suggest, has not always demonstrated accountability in this 
obligation. Therefore, the Committee directs the Secretary of 
the Treasury to provide, within 30 days of enactment of this 
Act, a report that identifies the specific corrective actions 
which will be undertaken to ensure accountability of the 
transportation trust funds and, with regard to receipts coming 
into these funds, will ensure effective communication with the 
Department of Transportation.

                          personnel practices

    The Committee applauds the Secretary of the Treasury for 
his innovative efforts in under taking the recent study of 
personnel practices in Departmental Offices. The Committee is 
aware that several opportunities for flexibility in personnel 
regulations currently exist in Title 5 USC such as the 
performance based organization initiative that was recently 
considered by the United States Mint. The Committee encourages 
the Secretary of the Treasury, on a Department-wide basis, to 
develop appropriate flexibility in personnel regulations 
including participating in demonstration projects under the 
direction of the United States Office of Personnel Management. 
The Secretary of the Treasury should report back to the 
Committee on Appropriations no later than November 30, 1997, on 
the status of flexibility in personnel regulations.

                              bankruptcies

    The Committee is concerned about the rising number of 
bankruptcies in the United States and the causes thereof, and 
its effects on creditors. Therefore, the Committee has included 
$200,000 for the Secretary, or his designee, to study the 
relationship between gambling and bankruptcies. The study shall 
identify, but not be limited to, the number of bankruptcies 
caused by gambling debts, and the effect on payments to the 
U.S. Treasury. The Secretary shall report on his findings to 
the Committee no later than May 15, 1998.

                     modernization management board

    The Committee is pleased that the Department of Treasury 
has continued to move forward with the establishment of a 
permanent Modernization Management Board (MMB). The Committee 
agrees that this organization can be structured to provide the 
necessary framework for oversight of the Internal Revenue 
Service (IRS) modernization initiatives, as well as other on-
going modernization initiatives throughout the Department.
    The Committee is concerned that the MMB has not yet 
received the adequate level of attention from senior management 
officials necessary for ``institutionalizing'' the Board. For 
example, there has been no creation of the appropriate 
organizational structure and no permanent funding mechanism 
identified. The Committee believes this situation must be 
corrected as soon as possible. The MMB should have permanent 
staff and detailees which compose experienced professionals in 
the areas of information technology, management reform, and 
Federal procurement. The Committee believes that the Department 
should not only recruit detailees to supplement the staff of 
the Board from the IRS, but also from other cabinet level 
agencies. The Committee reiterates that the MMB should obtain 
assistance from the Defense Software Managers Network which has 
experience in Federal large-scale systems development and the 
Defense Acquisition University, which can provide technical 
assistance in the area of program management.

               restoration of cabinet-level compensation

    The Committee has included a provision (Section 118) which 
restores the compensation of the Secretary of the Treasury to 
the same level as that of other Cabinet-level officers.
    The Committee understands that when former Secretary of the 
Treasury, Senator Lloyd Bentsen, assumed the Office of the 
Secretary, the compensation of that position was reduced by 
Public Law 103-02 in order to avoid the prohibition in article 
1, section 6, clause 2 of the Constitution. The Constitution 
does not allow a Senator or Representative to be appointed to 
any office whose emoluments or pay have been increased as a 
result of Congressional action during the tenure of that 
Senator or Representative.
    Due to enactment of Public Law 103-02, the pay of the 
Secretary of the Treasury is no longer comparable to that of 
the other Cabinet-level officers. Section 118 will 
prospectively remedy this situation and restore the 
compensation of the Secretary of the Treasury to that of other 
Cabinet-level officers.

            Study of Taggants in Black and Smokeless Powder

    Section 113(3) of the Fiscal Year 1997 Commerce, Justice, 
and State, the Judiciary, and Related Agencies Appropriations 
Act required that the Secretary enter into a contract with the 
National Academy of Sciences to conduct a study of the tagging 
of smokeless and black powder by any viable technology for 
purposes of detection and identification, to be conducted by an 
independent panel of 5 experts appointed by the Academy. That 
report was to be presented to Congress by 12 months after 
enactment, or September 30, 1997. Because the Academy and the 
Secretary have not yet agreed upon a statement of work, the 
bill provides an extension of this deadline to September 30, 
1998.

                 Office of Professional Responsibility

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............        $1,500,000
Budget estimate, fiscal year 1998.....................         1,625,000
Recommended in the bill...............................         1,500,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          -- -- --
    Budget Estimate, fiscal year 1998.................          -125,000
                                                                        

                                mission

    This appropriation provides salaries and expenses for the 
oversight of internal affairs investigations within Treasury 
law enforcement bureaus.

                             recommendation

    The Committee is pleased that the Office of Professional 
Responsibility (OPR) has gotten underway, and expects to see it 
focus on strengthening the credibility and integrity of 
Treasury law enforcement bureaus. The Committee intended for 
OPR to concentrate primarily on internal affairs matters and 
systems, including undertaking investigations on its own 
initiative. It recognizes that the Under Secretary for 
Enforcement has structured the OPR as a larger organization, 
with a wider scope of policy oversight than originally 
anticipated by the Committee. Nonetheless, the Committee has 
made it clear that it would oppose any attempt by OPR to 
exercise operational control over Treasury's law enforcement 
bureaus and organizations, and would view any such effort with 
great concern.

                           customs integrity

    The Committee directs, in bill language, the Under 
Secretary of Enforcement to task OPR to undertake an aggressive 
and comprehensive review of allegations of corruption among 
Customs officials, particularly inspection operations along the 
southwest border. The Committee includes this provision in bill 
language because the Department has failed to respond to the 
Committee's May 2, 1997 request for the Undersecretary to 
undertake this review. Such a review should look at charges of 
professional misconduct and corruption, but also examine the 
efficacy of departmental and bureau internal affairs systems. 
The members of this Committee have the highest regard for 
Customs officers, their demonstrated professionalism and 
commitment to public service, and are committed to seeing that 
Customs and other Treasury law enforcement agencies receive the 
support they need to reach the highest standards of 
professional service. However, the Committee is concerned that 
the bureau may be vulnerable to criminal pressures, 
particularly where it faces enormous workloads, as occurs at 
many of the sites along the Nation's southern border.
    This comprehensive review of Customs' integrity issues 
should carefully assess those systems that were intended to 
preserve that integrity. It was precisely this sort of 
departmental-level effort for which OPR was established. The 
review would help resolve persistent concerns, and in so doing 
strengthen Treasury law enforcement agencies.

                        AUTOMATION ENHANCEMENTS

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $27,100,000
Budget estimate, fiscal year 1998.....................        29,389,000
Recommended in the bill...............................        25,889,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        -1,211,000
    Budget Estimate, fiscal year 1998.................        -3,500,000
                                                                        

                                mission

    This appropriation was established by the Treasury, Postal 
Service and General Government Appropriations Act, 1997. This 
appropriation funds Treasury bureaus, at the Secretary's 
discretion, to modernize business process and increase 
efficiency through technology investments.

                             recommendation

    Building on last year's initial appropriation, the 
Committee recommends a total of $25,889,000 for the continued 
development and acquisition of automatic data processing 
equipment, software, and services for the Department of the 
Treasury. These funds, which will remain available for two 
years, may be transferred to accounts and in amounts as 
required to satisfy the needs of the Department and its 
offices, bureaus and organizations and will be in addition to 
those amounts otherwise appropriated in this Act to such 
entities.
    The Committee has also included language which extends, 
until September 30, 1999 the availability of $12,000,000 of 
funds provided in fiscal year 1997. This extension is needed 
because the June 26, 1996 fire at the Main Treasury building 
has caused major delays in the 1997 automation plan.
    The funds should be transferred as follows:
    Customs Service.--$11,500,000 for the Automated Commercial 
Environment (ACE). The Committee acknowledges that Customs has 
taken some important steps to eliminate weaknesses in its 
systems modernization efforts, including the establishment of 
clear accountability and the initiation of necessary investment 
planning processes. However, the Committee is still awaiting 
the proposed architecture plan for this system, and wants to 
see that plan reviewed and approved by Custom's recently 
established Investment Review Board and the Department's 
Modernization Management Board. For FY 1998, the Committee is 
proposing legislative language to provide $11,500,000 for 
continued development and implementation of ACE, which together 
with the funding that was fenced in the FY 1997 appropriation 
will provide approximately the level of funding requested. 
However, funding would only become available after the systems 
architecture plan has been submitted to the Committee and 
reviewed by the Government Accounting Office.
    Departmental offices.--$14,389,000, of which the Committee 
recommends $5,600,000 for the International Trade Data System 
and $8,789,000 for the Departmental Offices modernization plan.

                    International Trade Data System

    The Committee is supportive of efforts made under the North 
American Trade Automation Project to streamline customs 
procedures to reduce the costs of trade and expedite shipments 
across national borders. It is in the nation's long term 
economic interest to continue such streamlining efforts and 
expand them where appropriate to other major trading partners. 
The Committee therefore directs the Department to provide 
$500,000 in fiscal year 1998 in support of the Global Transpark 
Network Customs Information Project (GTPN/CIP).

                      Office of Inspector General

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $29,770,000
Budget estimate, fiscal year 1998.....................        31,333,000
Recommended in the bill...............................        30,927,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        +1,157,000
    Budget Estimate, fiscal year 1998.................          -406,000
                                                                        

                                mission

    This appropriation provides agencywide audit and 
investigative functions to identify and correct operational and 
administrative deficiencies which create conditions for 
existing or potential instances of fraud, waste, and 
mismanagement. The audit function provides program audit, 
contract audit, and financial statement audit services. 
Contract audits provide professional advice to agency 
contracting officials on accounting and financial matters 
relative to negotiation, award, administration, repricing, and 
settlement of contracts. Program audits review and evaluate all 
facets of agency operations. Financial statement audits assess 
whether financial statements fairly present the agency's 
financial condition and results of operations, the adequacy of 
accounting controls, and compliance with laws and regulations. 
The investigative function provides for the detection and 
investigation of improper and illegal activities involving 
programs, personnel, and operations.
    The Inspectors General Auditor Training Institute provides 
the necessary facilities, equipment, and support services for 
conducting auditor training for the Federal Government 
Inspector General community. Institute personnel develop and 
deliver instructional programs related to basic government 
audit skills. The cost of training is recovered by tuition 
charged to a student's agency.

                             recommendation

    The Committee recommends $30,927,000 for the Department of 
the Treasury Inspector General appropriation. This is $406,000 
below the request and $1,157,000 over the 1997 level. This 
recommendation includes $595,000 to maintain current levels, 
$162,000 for annualization of the 1997 pay raise, and $400,000 
to hire additional financial audit staff to replace departing 
General Accounting Office auditors.

      reimbursement of attorney fees for secret service personnel

    The Committee has included language directing that $26,034 
be transferred to the Departmental Offices appropriation to 
reimburse Secret Service Agents for legal costs incurred during 
an apparent investigation of their testimony to Congress. While 
the IG has testified that these two agents were not the subject 
of a criminal investigation, the IG later acknowledged that, 
early in the investigation, it was possibly labeled as 
``criminal.'' Whatever the circumstances, these agents were led 
to believe that the IG was conducting a criminal investigation 
of their role in preparing and providing Congressional 
testimony and, as such, retained legal counsel and incurred 
legal fees in preparation of the investigation. The Agents 
should be reimbursed for these fees according to the 
requirements of Section 117 of Title I of this Act.

          Treasury Buildings and Annex Repair and Restoration

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $28,213,000
Budget estimate, fiscal year 1998.....................        12,484,000
Recommended in the bill...............................         6,484,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        -6,729,000
    Budget Estimate, fiscal year 1998.................       -21,000,000
                                                                        

                                mission

    This appropriation funds repairs, selected improvements, 
and construction necessary to maintain the Main Treasury, the 
Treasury Annex, and other Treasury buildings.

                             recommendation

    The Committee has included $6,484,000 for the Treasury 
Building and Annex Repair and Restoration appropriation. This 
is $6,000,000 less than the request and $21,729,000 less than 
1997. In fiscal year 1997, the Congress provided additional 
funds for the repair and alteration of the Main Treasury 
building which was heavily damaged by a June 1996 fire. The 
1997 additional funds were a one-time requirement and are 
therefore reflected as a reduction in the Committee's 1998 
recommendation.

               fire damage at the main treasury building

    On July 26, 1996, the Main Treasury building was heavily 
damaged by a fire. To accommodate the repair and alteration of 
this building, the Committee approved a reprogramming of 
$11,500,000, authorized the use of $4,500,000 of unobligated 
funds available from previous appropriations for repair, and 
then provided a fiscal year 1997 appropriation of $20,529,000 
which was added to the base 1997 funding request of $7,684,000. 
The fiscal year 1998 request assumes a reduction of $15,729,000 
associated with the one-time costs of the fire, rather than the 
$20,529,000 provided, for a base 1998 funding request of 
$12,484,000. The Committee appreciates the fact that fire 
damage repair may still be ongoing, but is reluctant to 
increase the base repair and alteration funding by over 62% 
from the 1997 base level. Therefore, the Committee has reduced 
the 1998 budget request for repair and alteration to 
$6,484,000. The Committee believes this level should be 
adequate to meet the needs of the Department of Treasury's 
requirement to repair and maintain its buildings.

                  Financial Crimes Enforcement Network

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $22,387,000
Budget estimate, fiscal year 1998.....................        23,006,000
Recommended in the bill...............................        22,835,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          +448,000
    Budget Estimate, fiscal year 1998.................          -171,000
                                                                        

                                mission

    The Financial Crimes Enforcement Network (FinCEN) has 
responsibility for implementing Treasury money laundering 
regulations through administration of the Bank Secrecy Act, 31 
U.S.C. section 5311, et seq., and serves as a United States 
Government source for the systematic collection and analysis of 
information to assist in the investigation of money laundering 
and other financial crimes. FinCEN also represents U.S. 
interests in international efforts to combat money laundering 
through its participation in the Financial Action Task Force 
(FATF) of the Group of Seven. FinCEN implements these 
responsibilities through analytical and technological platforms 
geared to combat money laundering through prevention-using its 
regulatory authority in partnership with the financial sector; 
detection-combining technology with all-source intelligence to 
identify both underlying criminal financial activity as well as 
emerging patterns of domestic and international money 
laundering; and enforcement-empowering other agencies at the 
Federal, State and local, and international levels to take 
action against financial criminals through the transfer of 
information and expertise.

                             recommendation

    The Committee concurs with the President's request, but 
allows a more modest increase of 2 percent for maintaining 
current levels and meeting labor costs. The Committee denies 
without prejudice the additional funding requested from the 
Violent Crime Reduction Trust Fund for the study of 
international cyber-payment systems.

       outreach to and access by state and local law enforcement

    Last year the Committee expressed its desire to see a 
greater emphasis placed upon making FinCEN's resources more 
available to and better known by Federal law enforcement 
officers. Along with this, State and local law enforcement is 
increasingly becoming engaged in efforts to break trafficking 
organizations that make use of money laundering techniques and 
other forms of financial crime that may be vulnerable to the 
resources that FinCEN can bring to bear. The Committee would 
like to see an effort made to increase the access by local law 
enforcement to the tools FinCEN can provide, such as its 
GATEWAY system. FinCEN should also explore ways in which it can 
cooperate with technological efforts being made by local law 
enforcement agencies in money laundering investigations, such 
as those being supported by the Counterdrug Technology 
Assessment Center.

                        Treasury Forfeiture Fund

                (limitation on availability of deposits)

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $10,000,000
Budget estimate, fiscal year 1998.....................         9,500,000
Recommended in the bill...............................          -- -- --
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................       -10,000,000
    Budget Estimate, fiscal year 1998.................        -9,500,000
                                                                        

                                mission

    P.L. 102-393 authorized the establishment of the Treasury 
Forfeiture Fund, replacing the Customs Forfeiture Fund, and 
making it available to pay or reimburse certain costs and 
expenses related to seizures and forfeitures that occur 
pursuant to the Treasury Department's law enforcement 
activities. The Coast Guard also participates in the program.

                             recommendation

    Given the expected large Treasury Forfeiture Fund balances, 
the Committee denies the request for an appropriation of funds.

           super surplus and the secretary's enforcement fund

    The Committee is aware that the Treasury Forfeiture Fund 
has a sizable surplus which is available to the Secretary for 
application to law enforcement requirements both within 
Treasury and throughout government. The Committee has a strong 
interest in seeing such funding used to maintain Treasury's 
critical law enforcement resource requirements, and expects to 
see the Department's plan for using these funds in a timely 
fashion. Such requirements could include investment in Customs 
non-intrusive inspection technologies, and improving laboratory 
facilities and supplies for Customs and ATF. The Committee 
directs that the Department use $19,800,000 of such surplus as 
follows: $4,200,000 for the Bureau of Alcohol, Tobacco and 
Firearms for ballistics identification technology, including 
the purchase, maintenance and upgrading of equipment for State 
and local law enforcement agencies; $3,000,000 for the Secret 
Service financial fraud operation; $6,100,000 for Secret 
Service activities related to the Federal Law Enforcement 
Wireless Users Group (FLEWUG); $2,000,000 for the Secret 
Service's Rowley Training Center for necessary additional 
maintenance requirements; $4,000,000 to fund the cost of 
rotation of Customs inspectors; and $500,000 to produce, in 
consultation with the trade and industry, an objective, non-
political, fact-based guide to firearms and ammunition 
identification, type, technology, and history, and to make this 
guide available to the Congress and the public.

                    Violent Crime Reduction Programs

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $97,000,000
Budget estimate, fiscal year 1998.....................       118,200,000
Recommended in the bill...............................        96,486,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          -514,000
    Budget Estimate, fiscal year 1998.................       -21,714,000
                                                                        

                                Mission

    Amounts for the Department of the Treasury's portion of 
Crime Control Programs are derived from transfers from the 
Violent Crime Reduction Trust Fund (VCRTF) as authorized by the 
Crime Control and Law Enforcement Act of 1994.

                             Recommendation

    The Committee provides an appropriation of $97,000,000 for 
Violent Crime Reduction.

                                                                        
                                                                        
                                                                        
Bureau of Alcohol, Tobacco and Firearms:                                
    Firearms trafficking..............................        $6,000,000
    Administration of GREAT Program...................         3,000,000
    GREAT grants and contracts with local government..         8,000,000
    Arson and Explosives Clearinghouse/Repository.....         1,608,000
    Increased explosives inspections..................         5,458,000
    Base Restoration: Cars and Equipment..............         5,462,000
      Subtotal, ATF...................................        29,528,000
U.S. Customs Service:                                                   
    Anti-Smuggling Initiative.........................        15,000,000
    Agent and Inspector Relocation....................         4,000,000
    Canopies for Secondary Inspection.................         1,100,000
    Laboratory Modernization..........................         5,735,000
    Vehicle Replacement Program.......................        10,000,000
    Automated License Plate Readers...................         7,800,000
      Subtotal, Customs...............................        43,635,000
U.S. Secret Service:                                                    
    White House Security..............................         9,323,000
    Counterfeiting....................................         5,000,000
    Forensic Technologies.............................         2,514,000
      Subtotal, Secret Service........................        16,837,000
Financial Crimes Enforcement Network: Treasury                          
 Department Secure Intranet Communication.............         1,000,000
Federal Law Enforcement Training Center: Rural Drug                     
 Training.............................................         1,000,000
Office of National Drug Control Policy: Counterdrug                     
 Technology Assessment Center.........................         5,000,000
    Total.............................................        97,000,000
                                                                        

                             GREAT Program

    The Committee continues to support funding the Gang 
Resistance Education and Training (GREAT) program through the 
VCRTF, and provides $8,000,000 for grants to local law 
enforcement organizations and $3,000,000 for ATF administrative 
support, training and related activities. The Committee knows 
that there have been requests for new GREAT programs in Terre 
Haute, Indiana and Jefferson County, Kentucky. However, the 
Committee wishes to emphasize that this project, in keeping 
with the authorization of the Violent Crime Reduction Trust 
Fund, is scheduled to expire in 2000.

                counterdrug technology transfer program

    The Committee provides $5,000,000 to the Counterdrug 
Technology Assessment Center (CTAC) of the Office of National 
Drug Control Policy (ONDCP) to establish a program for 
transferring technology to State and local law enforcement 
agencies. An additional $7,500,000 is provided to the Office of 
National Drug Control Policy for this purpose. Since its 
inception, CTAC has worked with many law enforcement agencies 
and prosecutors to find technological solutions to critical law 
enforcement problems, and many valuable applications have been 
developed. The Committee directs that this funding be used to 
initiate a pilot program to transfer these technologies to 
these agencies who may otherwise be unable to profit from the 
developments due to limited budgets or a lack of technological 
expertise. The Committee directs CTAC to initiate this program 
under the direction of the Chief Scientist, ONDCP, with the 
advice of experts from State and local law enforcement, and in 
cooperation with High Intensity Drug Trafficking Area (HIDTA) 
programs to identify the technologies to be transferred and 
locations to be served. The Committee assumes that priority 
will be given to identifying candidates for transfer in the 
currently designated HIDTAs, and expects that CTAC and HIDTA 
will also weigh the ability and willingness of potential 
recipients to share in the costs of new technology, either 
through in-kind or direct contributions. The Committee also 
directs the Chief Scientist to submit a report to Congress 
evaluating the performance of the program not later than 18 
months from the date of the first transfer, as well as a 
strategic plan for countrywide deployment of technology.

                            atf headquarters

    The Committee is aware of the security and operational 
deficiencies of the present Washington, DC headquarters 
location and urges ATF to coordinate action with the 
authorizing committees in both the House and the Senate to 
approve a relocation prospectus. However, because the 
prospectus has not been approved by the House, no funding has 
been provided for site acquisition or preparation, including 
necessary environmental remediation and infrastructure 
improvement costs.

                  fincen foreign government assistance

    The Committee is impressed by the efforts of the Financial 
Crimes Enforcement Center to encourage the cooperative efforts 
with foreign governments and financial institutions in 
defeating international money laundering and similar financial 
crime. However, the Committee believes that such assistance 
falls in the category of foreign assistance, and should 
therefore be requested by the Department of State.

                             secret service

    For the Secret Service, the Committee recommends 
$16,837,000, a reduction of $3,827,000 from the President's 
request and a reduction of $3,163,000 from fiscal year 1997. 
The Committee denies the President's request to transfer 
$5,000,000 for Secret Service counterfeiting efforts from the 
Violent Crime Reduction Trust Fund to the Secret Service's 
Salaries and Expense Account and provides $3,000,000 for 
investigations of Financial Institution Fraud through the 
Treasury Forfeiture Fund. In addition, the Committee denies the 
President's request of $6,341,000 for the construction and 
renovation of police booths, entry posts and ``Presidential 
Post'' bollards along Pennsylvania Avenue. While the Committee 
believes these are important efforts, the Committee also finds 
that other efforts related to the protection of the President 
are a higher priority for the upcoming fiscal year. The 
Committee includes a total of $9,323,000 for White House 
Security through the Crime Trust Fund in fiscal year 1998. 
Additional funds of $4,000,000 for this effort are included in 
the Secret Service's Salaries and Expenses appropriation.

                        child exploitation unit

    In fiscal year 1997, the Committee provided start up costs 
for the operation of the Exploited Child Unit at the National 
Center for Missing and Exploited Children as well as sufficient 
funds for the operation of this unit through fiscal year 1999. 
The Committee has had the opportunity to review the work of 
this Unit and is pleased with the progress being made in the 
integration of investigations of exploited children with 
investigations being conducted through the National Center for 
Missing and Exploited Children in recovering missing children. 
The Committee wishes to express its continued support for the 
work of this Center as well as the cooperation being provided 
by the Secret Service through the use of forensic technologies. 
The Committee has provided an additional $514,000 for the 
fourth year of operation of the Exploited Child Unit of the 
National Center for Missing and Exploited Children and 
encourages the Center to provide the Committee with periodic 
status reports of its investigative efforts.

                Federal Law Enforcement Training Center

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $56,185,000
Budget estimate, fiscal year 1998.....................        65,663,000
Recommended in the bill...............................        64,663,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        +8,478,000
    Budget Estimate, fiscal year 1998.................        -1,000,000
                                                                        

                                mission

    The Federal Law Enforcement Training Center provides the 
necessary facilities, equipment, and support services for 
conducting advanced, specialized, and refresher training for 
Federal law enforcement personnel. This appropriation is for 
operating expenses of the Center, for research in law 
enforcement training methods, and curriculum content. In 
addition, the Center has a reimbursable program to accommodate 
the training requirements of various Federal agencies. As funds 
are available, law enforcement training is provided to certain 
State and local law enforcement personnel on a space-available 
basis.

                             recommendation

    The Committee provides the $3,701,000 requested for 
facility improvement and service costs associated with recent 
expansion of the Center, and the $4,777,000 required to cover 
annualization of pay and the full funding of additional basic 
training workload. However, the Committee provides a 2 per cent 
increase for costs of inflation.

      acquisition, construction, improvements and related expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $21,584,000
Budget estimate, fiscal year 1998.....................        11,111,000
Recommended in the bill...............................        32,548,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................       +10,964,000
    Budget Estimate, fiscal year 1998.................       +21,437,000
                                                                        

                                mission

    This account provides for the acquisition, construction, 
improvements, equipment, furnishing and related costs for 
expansion and maintenance of facilities of the Federal Law 
Enforcement Training Center.

                             recommendation

    The Committee provides $32,548,000 for continuation of 
Master Plan for construction at Glynco, Georgia and Artesia, 
New Mexico. This meets the President's request, but also 
includes the funding that the Administration requested in the 
Violent Crime Reduction Trust Fund. With this level of 
construction, the Committee understands that FLETC will be able 
to complete the third phase of its plan.

                      Interagency Law Enforcement

                 interagency crime and drug enforcement

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............          -- -- --
Budget estimate, fiscal year 1998.....................       $73,794,000
Recommended in the bill...............................        73,794,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................       +73,794,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                mission

    This program consists of nine regional task forces which 
consolidate resources and expertise of 11 member Federal 
agencies, in cooperation with State and local investigators and 
prosecutors, to target and destroy major narcotic trafficking 
and money laundering organizations. The funding for Treasury 
Department participation was previously funded in the 
Department of Justice appropriation. With the funding provided 
here, Treasury will administer its own program through its 
Departmental Offices.

                     Financial Management Services

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............      $196,518,000
Budget estimate, fiscal year 1998.....................       202,560,000
Recommended in the bill...............................       199,675,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        +3,157,000
    Budget Estimate, fiscal year 1998.................        -2,885,000
                                                                        

                                mission

    The Financial Management Service (FMS) is responsible for 
improving the quality of Government financial management and 
collecting Federal debt. As the Government's central financial 
agent, FMS receives and disburses public monies, maintains 
Government accounts, and reports on the status of the 
Government's finances. FMS is also accountable for developing 
and implementing the most reliable and efficient financial 
methods and systems to manage and improve the Government's cash 
management, credit management, and debt collection programs.
    Based on the Debt Collection Improvement Act of 1996, the 
FMS became the primary agency for the collecting of Federal 
non-tax debt which is due and owed to the government. Through 
FMS, there is a coordinated effort to collect debt from those 
who have defaulted on agreements with the Federal government.

                             recommendation

    The Committee recommends $199,657,000 for the Financial 
Management Service appropriation. This is $2,885,000 less than 
the request and $3,157,000 above the 1997 level. The Committee 
has provided $3,930,000 to maintain current levels, $827,000 
for annualization of the 1997 pay raise, and $2,000,000 for 
costs associated with Century Data Change requirements.

                            debt Collection

    The Debt Collection Act of 1996 authorized the FMS to hire 
private sector debt collection agencies to collect debt owed to 
the Federal government. The Committee understands that under 
the agreements which FMS has established with these agencies, 
the FMS is paying the cost of performing background checks on 
collection agency personnel. The Internal Revenue Service (IRS) 
and other Federal agencies which have contracted with the 
private sector for debt collection activities require the 
contractor to pay for these costs. The Committee recommends 
that the FMS consider following the example of the IRS and 
require the contractor to pay for the cost of performing 
background checks on collection agency personnel.

                   permanent indefinite appropriation

    The Committee has included language to establish a 
permanent indefinite appropriation to reimburse Federal Reserve 
banks for services in their capacity as depositaries and fiscal 
agents on behalf of the Treasury Department.

                Bureau of Alcohol, Tobacco and Firearms

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............      $460,394,000
Budget estimate, fiscal year 1998.....................       496,954,000
Recommended in the bill...............................       477,649,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................       +17,255,000
    Budget Estimate, fiscal year 1998.................       -19,305,000
                                                                        

                                mission

    The Bureau of Alcohol, Tobacco and Firearms is responsible 
for the enforcement of laws designed to eliminate certain 
illicit activities and to regulate lawful activities relating 
to distilled spirits, beer, wine and nonbeverage alcohol 
products, tobacco, firearms, and explosives.

                             recommendation

    The Committee recommends $477,649,000, an increase of 
$17,255,000 over the fiscal year 1997 appropriated level and 
$19,305,000 below the President's request. This includes 
slightly less than half the request for ``base restoration'' 
funding and allows a 2 per cent increase for ``maintaining 
current levels'' rather than the 2.7% requested. The 
recommendation also includes $3,974,000 requested by the 
President for the expansion of the Canine Explosives Detection 
program.

                            base restoration

    The Committee concurs with the need to fund activities that 
are essential to ATF's ability to carry out its mission, such 
as informant pay, secure and adequate data processing 
capability, and essential laboratory and investigation 
equipment. The Committee provides $4,000,000 for base 
restoration, to include agent cashier costs, technology, and 
telecommunications. An additional $5,462,000 is funded through 
the Violent Crime Reduction Trust Fund.

                       return of stolen firearms

    The Committee understands there may have been instances 
where individuals who subsequently legally own a registered 
firearm reported as stolen and found as a result of law 
enforcement efforts utilizing the Federal Trace System have not 
been notified of the recovery of the firearm and have not had 
the firearm returned to them despite the fact that the owner 
was not under criminal investigation, and had not been seized 
as evidence or legally forfeited. The Committee also 
understands that the Bureau of Alcohol, Tobacco and Firearms 
makes every effort to notify such individuals and arrange for 
the return of the legally owned firearm. Further, there have 
been indications that many State and local law enforcement 
offices lack sufficient resources to identify and contact the 
lawful owner of a firearm. Therefore, the Committee directs ATF 
to cooperate with State and local law enforcement to ensure the 
prompt return of recovered firearms to their legal owners where 
(1) the firearms were reported as stolen by its lawful owner; 
(2) the firearms have not been seized as evidence or forfeited 
in accordance with law; and (3) the lawful owner is not the 
subject of a criminal investigation.

                       ballistics imaging systems

    The Committee is aware of the capabilities of the ATF 
CEASEFIRE system, but remains concerned at the slow progress in 
achieving interoperability between the ATF system and that of 
the Federal Bureau of Investigation. The Committee directs ATF 
to work with the Department, the FBI, and OMB to resolve these 
issues expeditiously. For the present, the Committee retains 
the legislative prohibition on using appropriated resources to 
provide subsidized equipment to state or local authorities who 
have already obtained similar equipment through a federal grant 
or subsidy.
    As noted above, the Committee directs the Department that 
$4,200,000 of the super surplus of the Treasury Forfeiture Fund 
be used to fund procurement of new systems and maintenance of 
existing ones.

                  trafficking in contraband cigarettes

    The Committee is aware that the ATF is conducting an 
investigation of businesses located on Indian lands that are 
evading payment of State cigarette taxes under the authority of 
Contraband Cigarette Trafficking Act. Such evasion deprives 
States of hundreds of millions of dollars in tax revenues each 
year, including Oklahoma ($27 million), Washington ($63 
million), New York ($65 million), and Michigan ($75 million). 
The Committee understands that the ATF is conducting an 
investigation at this time focused on such violations in 
Oklahoma and Kansas at a cost of $2,000,000, as part of its 
plans to eventually obligate as much as $8,000,000 to conduct 
this investigation on a nationwide basis. The Committee directs 
the ATF to fully fund these investigations.

                              church arson

    Since January 1995, there have been 403 incidents of arson, 
bombings, or attempted bombings of houses of worship. In June 
1996, the Administration responded by making investigation and 
prevention of church arsons a national priority and created the 
National Church Arson Task Force. The Committee is impressed 
with the number of arrests since formation of the Task Force 
and supports the efforts of ATF to investigate and determine 
the cause of every church fire. The Committee also directs ATF 
to continue its prevention efforts, particularly the 
distribution of the Church Threat Assessment Guide.

                       atf headquarters staffing

    The bureau has chosen to maintain its relatively high level 
of headquarters staffing, despite clear direction from the 
Committee last year that reductions were in order. The 
principal argument offered by the bureau is that headquarters 
staff need to remain at their present levels because of the 
increase in workload associated with the church arson 
investigation, counter-terrorism and other initiatives. The 
Committee has denied $11,000,000 requested for base restoration 
but notes that it would be willing to entertain requests to 
reprogram for this purpose should ATF demonstrate its 
willingness to reduce the current size of its headquarters 
staff accordingly.

                       atf explosives inspectors

    The Committee has included $5,458,000 for additional 
explosive inspectors in the Violent Crime Reduction Trust Fund, 
but observes that this would establish a new program base that 
would require continued annual appropriations.

                 laboratory facilities and headquarters

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............        $6,978,000
Budget estimate, fiscal year 1998.....................        55,022,000
Recommended in the bill...............................        55,022,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................       +48,044,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                        national tracing center

    The Committee supports the practice of compiling 
information for the purpose of identifying individual criminal 
offenders and alleged offenders related to specific criminal 
and civil investigations. However, the Committee does not 
understand the rationale behind ATF's policies as they relate 
to the maintenance of a tracing record on individuals beyond 
the scope and time frame required for specific investigations, 
although it has been told that the Bureau may need such trace 
records in order to identify possible witnesses. Furthermore, 
ATF's current policy appears to set no time on how long such 
records can be maintained, since the trace record database was 
created eight years ago and no records have yet been deleted. 
The Committee therefore directs ATF to clarify its practices 
related to the collection and maintenance of records on the 
acquisition and disposition of firearms by Federal firearms 
licensees for use in criminal or civil enforcement or firearms 
trace systems, and in particular on the length of time such 
records are kept.

                     United States Customs Service

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............    $1,549,585,000
Budget estimate, fiscal year 1998.....................     1,566,826,000
Recommended in the bill...............................     1,526,078,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................       -23,507,000
    Budget Estimate, fiscal year 1998.................       -40,748,000
                                                                        

                                mission

    The United States Customs Service is the Nation's principal 
border agency. Its mission is to ensure that all goods entering 
and exiting the United States do so in accordance with all 
United States laws and regulations. This mission includes 
enforcing U.S. laws intended to prevent illegal trade 
practices; protecting the American public and environment from 
the introduction of prohibited hazardous and noxious products; 
assessing and collecting revenue in the form of duties, taxes, 
and fees on imported merchandise; regulating the movement of 
persons, carriers, merchandise, and commodities between the 
United States and other nations, while facilitating the 
movement of all legitimate cargo, carriers, travelers, and 
mail; interdicting narcotics and other contraband; and 
enforcing certain provisions of the export control laws of the 
United States.

                             recommendation

    The Committee provides $1,526,078,000, which includes most 
of the President's request. Additional items are funded instead 
under the Violent Crime Trust Fund, including laboratory 
modernization, vehicle replacement, and automated license plate 
readers. In addition, the Committee assumes a lower inflation 
rate (2%) to maintain non-pay levels than was assumed in the 
Administration request. Also included in this is $5,000,000 for 
ongoing Customhouse renovation, as well as $300,000 to fully 
staff the dedicated commuter lane in El Paso.

     stanton street bridge dedicated commuter lane, el paso, texas

    The Committee recognizes the need to facilitate the flow of 
traffic and trade between the United States and Mexico in El 
Paso, Texas. To help achieve this objective, the U.S. Customs 
Service, the Immigration and Naturalization Service, the U.S. 
Department of Agriculture, and the El Paso business and trade 
community have been analyzing a plan to locate a dedicated 
commuter lane (``DCL'') at the Staton Street Bridge site--a 
site preferred by both the U.S. and Mexican trade communities.
    The Committee understands that the lack of an allocation 
for U.S. Customs inspector staffing for the Stanton Street DCL 
is an impediment to its establishment. The Committee directs 
the Customs Service to work with the INS and both the U.S. and 
Mexican trade communities to implement the Stanton Street DCL, 
and provides $300,000 for the salaries and related costs of 
Customs inspectors to work at the site. The Committee expects 
Customs to include sufficient funding in its fiscal year 1999 
budget and in following years for continued Customs operations 
at the Stanton Street DCL.

                              cargo theft

    The Committee recognizes that high-value cargo theft 
presents a growing and highly costly form of crime--
particularly at major ports of entry in areas such as Florida, 
New York, New Jersey, and California. The Committee, therefore, 
urges Customs to review this problem and to commit necessary 
resources in cooperation with other federal, state, and local 
law enforcement agencies to address it. Further, Customs shall 
report back to the Committee on measures it has taken and its 
strategy to provide a long-term solution.

                       drug interdiction efforts

    The Committee recognizes that the US Customs Service plays 
a critical role in this nation's efforts to achieve a drug-free 
America by the year 2001. In many respects, Customs is the 
first line of defense against the flow of illegal narcotics 
into our country. The Committee also recognizes that the 
southwest border remains particularly vulnerable--despite a 
dramatic increase in funding for drug interdiction efforts in 
California, Arizona, New Mexico, and Texas provided by Congress 
in the past 2 years.
    The Committee has made every effort to provide adequate 
funding for Customs to carry out their dual mission to 
facilitate legal trade while keeping illegal drugs out of the 
country. This is not an easy task, and the Committee intends to 
work within its fiscal constraints to provide the necessary 
resources to allow Customs to continue to make progress in 
large ports of entry like Otay Mesa, California and to bolster 
operations in places like Douglas, Arizona where resources are 
limited and the workload is overwhelming.
    The Committee urges the Secretary of the Treasury to work 
with the Office of Management and Budget to ensure that full 
consideration is given to Customs' requirements in the 
development of the annual budget request, and adequate funding 
be provided to allow Customs to fully carry out their mission 
on the southwest border.

                 non-intrusive inspection technologies

    The Committee continues to support Customs' ability to make 
the best use of its scarce resources by using non-intrusive 
inspection technologies such as automated targeting systems, x-
ray, gamma-ray, and pulsed fast neutron analysis (PFNA). The 
Committee has seen excellent study results that show the 
promise of such systems as high energy x-ray systems, as well 
as the PFNA and gamma ray cargo vehicle detection technologies. 
While some of these promising technologies may be too expensive 
to consider for deployment at this time, the Committee would 
strongly encourage Customs to test these technologies, whenever 
possible, under real border or port inspection conditions. The 
Committee is committed to improving Customs' ability to detect 
narcotics coming into this country, particularly in the guise 
of commercial shipments, and therefore directs that investments 
in such technology and processes be approved by the Customs 
Investment Review Board (IRB) and Treasury's Modernization 
Management Board before a decision is made to proceed with 
deployment of any single technology or system.
    The Committee approves the request by the President for $15 
million for the acquisition and deployment of two higher energy 
seaport x-ray systems and automated targeting systems to be 
used at high risk ports of entry. The Committee believes that 
such technology can significantly improve the effectiveness of 
U.S. drug interdiction efforts, reduce the amount of cargo 
theft, and facilitate the movement of legal imports.
    The Committee notes that the port of Miami is already one 
of the busiest in the nation; for example, between October 1996 
and February 1997 Miami was the fourth busiest United States 
seaport in terms of container arrivals. Cargo imports are also 
growing rapidly in Miami; the number of cargo entries cleared 
through the airport and seaport of Miami increased by 18 
percent in the last two years. At the same time, drug 
traffickers have apparently redirected their smuggling towards 
south Florida in response to the increase in law enforcement 
resources for both Operation Hardline along the Mexican border 
and Operation Gateway in Puerto Rico. This year over half of 
all cocaine seizures in commercial cargo in the country have 
occured in Miami. Accordingly, the Committee concludes that 
Miami is a high risk port of entry and strongly encourages the 
Customs Service to deploy one of these x-ray systems in Miami. 
The Committee directs the Customs Service to report back on the 
site selection for the second system prior to deployment of 
that system.

                           child pornography

    The Committee remains strongly supportive of efforts to 
combat child pornography, and in particular the cooperative 
efforts with the National Center for Missing and Exploited 
Children. (NCMEC). The Committee therefore directs that Customs 
provide $50,000 from available funds to promote public 
awareness of the Child Pornography Tipline and to coordinate 
Customs' efforts with NCMEC, the U.S. Postal Service, the U.S. 
Secret Service, and the General Services Administration.

                          foreign trade zones

    The Committee is concerned that Customs has not kept up in 
its efforts to work with U.S. Foreign Trade Zones (FTZ) and 
their users following changes pursuant to the Customs 
Modernization Act. In particular, the Committee understands 
that Port Directors have not received adequate education and 
training on FTZ operations and related Customs procedures, with 
the result that decision making is ad hoc, varying from port to 
port. The Committee therefore directs Customs to report to the 
Committee by February 1, 1998 on Customs plans to achieve 
uniformity in treatment across the country, and improve the 
training of port directors and other relevant personnel.
    The Committee is also aware that the Customs Service has 
not automated Customs Form 214, the admissions document for all 
goods admitted to U.S. FTZ. CF 214 notifies Customs of 
merchandise admitted to a foreign-trade zone, thereby 
transferring liability of merchandise to the foreign-trade zone 
operators. The U.S. Census Bureau relies on the timely filing 
of CF 214 to track import/export statistics. In addition, 
agencies such as the Food and Drug Administration could utilize 
the automated CF 214 data to verify compliance with U.S. laws. 
The Committee recognizes that Customs may be planning to 
include CF 214 automation as part of its Automated Commercial 
Environment (ACE), but encourages the bureau to consider ways, 
consistent with that approach, to move from manual processing 
as soon as possible, including automating under the existing 
Automated Commercial System.

         enforcement of the north american free trade agreement

    The Committee underscores the importance of the Customs 
Service's enforcement of the peanut provisions of the North 
American Free Trade Agreement (NAFTA), specifically the rule of 
origin requirement and Marketing Order 146. The Committee 
supports the Service's efforts to put the necessary regulations 
in place and make good on its enforcement commitments and 
directs Customs to continue these enforcement efforts.

                      customs service regulations

    The Committee anticipates that the U.S. Customs Service 
will finalize by January 1, 1998 proposed regulations (RIN-
1515-AB61) clarifying the requirements for the country of 
origin label on imported frozen fruits and vegetables.

  customs facilities, construction, improvements and related expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............          -- -- --
Budget estimate, fiscal year 1998.....................        $5,512,000
Recommended in the bill...............................          -- -- --
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          -- -- --
    Budget Estimate, fiscal year 1998.................        -5,512,000
                                                                        

                                mission

    This account would provide funding for major Customs 
construction, repair, and facility improvements initiatives.

                             recommendation

    The Committee denies funding at this time for a second 
hangar at Corpus Christi to house the new P-3 AEW aircraft. The 
Committee recognizes that such facilities, which would provide 
protection from corrosive weather conditions, are important to 
extending the useful flying life of the aircraft. However, it 
appears the delay in the delivery schedule for the aircraft may 
not justify present expenditure for new construction. The 
Committee will be willing to consider this request at such time 
as Customs reports that the P-3 delivery schedule is firm. The 
Committee would not object if the Secretary chose to fund such 
construction from any super surplus that might become available 
in the Treasury Forfeiture Fund with advance approval from the 
Committee.

            customs operations, maintenance, and procurement

                   air & marine interdiction programs

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $83,363,000
Budget estimate, fiscal year 1998.....................        92,758,000
Recommended in the bill...............................        97,258,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................       +13,895,000
    Budget Estimate, fiscal year 1998.................        +4,500,000
                                                                        

                                mission

    The Customs Air and Marine Interdiction Program combats the 
illegal entry of narcotics and other items into the United 
States. This appropriation provides all operations, maintenance 
and procurement for the Customs air and marine program and 
support for the interdiction of narcotics by other Federal, 
State, and local agencies. Included in this mission is the 
requirement to support the Bureau of Alcohol, Tobacco and 
Firearms.

                             recommendation

    The Committee concurs with the President's request for this 
activity, with the addition of the provision listed below.

                         black hawk helicopters

    The Committee recognizes that the UH-60, Black Hawk 
helicopter represents a mainstay Customs asset in its mission 
to track and intercept smugglers seeking to enter U.S. 
airspace. In order to improve the operational capability of the 
Black Hawks, the Committee includes $4,500,000 in this 
appropriation to be used to equip the Customs fleet with 
forward looking infrared (FLIR) capability for night 
operations. The Committee has also taken this action in order 
to address its concerns that the Air Interdiction Division has 
not demonstrated adequate foresight in management of its 
resources, both in terms of adequately equipping and in 
staffing its helicopter operations. Adequate night vision 
equipment for helicopter operations, as well as scheduling so 
as to maintain appropriate crew size for operations, are 
essential requirements for mission effectiveness.

                     air operation staffing levels

    The Committee is concerned that some Customs air operations 
may be conducted with inadequate crew size, thus potentially 
risking the safety of Customs officers or jeopardizing the 
success of the interdiction mission. The Committee requests 
that Customs report on its record in maintaining the 
appropriate number of crew members and officers to meet mission 
requirements.

                 P-3 airborne early warning operations

    The Committee last year provided funding for the 
retrofitting of two P-3 AEW aircraft to enhance the nation's 
counterdrug efforts in the source and transit zones, which 
would bring the total number in the Customs fleet to six. The 
Committee is concerned that the funding provided to the 
Department of Defense has not been transferred to Customs to 
permit work to begin on the second P-3, and thus the delivery 
date of that aircraft has been unnecessarily delayed. The P-3 
surveillance mission is critical to the nation's interdiction 
effort, and the Committee is concerned that there may be a gap 
in coverage as the Defense Department reduces its mission 
operations. The Committee requests Customs to report by January 
31, 1998 on the status of the P-3 retrofitting program, 
including an assessment of the current operational 
requirements, and the potential impact on interdiction 
effectiveness were the fleet to be expanded by one or two 
additional P-3 AEW aircraft.

                   CUSTOMS SERVICES AT SMALL AIRPORTS

                  (to be derived from fees collected)

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............        $2,406,000
Budget estimate, fiscal year 1998.....................         2,406,000
Recommended in the bill...............................         2,406,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          -- -- --
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                Mission

    Customs charges user fees at certain small airports where 
the volume or value of business is insufficient to justify the 
availability of Customs services. The funds generated from 
these user fees are applied to expenditures incurred in 
providing Customs services at each of these designated small 
airports.

                             Recommendation

    The Committee provides such sums as may be necessary for 
all expenditures covered by user fees at small airports.

                   HARBOR MAINTENANCE FEE COLLECTION

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............        $3,000,000
Budget estimate, fiscal year 1998.....................         3,000,000
Recommended in the bill...............................         3,000,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          -- -- --
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                Mission

    The Harbor Maintenance Fee is established to provide 
resources to the Army Corps of Engineers for the improvement of 
American channels and harbors. It is assessed on the value of 
commercial imports and exports delivered to or from certain 
specified ports. The fee is collected by the U.S. Customs 
Service and deposited into the Harbor Maintenance Trust Fund. 
In fiscal year 1998, $3,000,000 will be transferred from the 
Harbor Maintenance Trust Fund to the Customs Service Salaries 
and Expenses appropriation to offset costs incurred by Customs 
in collecting Harbor Maintenance Fees.

                             Recommendation

    The Committee concurs with the President's request of 
$3,000,000.

                       Bureau of the Public Debt

                     ADMINISTERING THE PUBLIC DEBT

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............      $165,335,000
Budget estimate, fiscal year 1998.....................       169,426,000
Recommended in the bill...............................       169,426,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        +4,091,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                Mission

    This appropriation provides funds for the conduct of all 
public debt operations and the promotion of the sale of U.S. 
savings-type securities.

                             Recommendation

    The Committee recommends an appropriation of $173,826,000, 
offset by $4,400,000 in receipts for a final appropriation of 
$169,426,000, for the Bureau of the Public Debt (BPD). This is 
the same as the budget request, and $4,091,000 over 1997. This 
recommendation includes $3,032,000 to maintain current levels, 
$599,000 for annualization of the 1997 pay raise, and $460,000 
for a new program to issue inflation-indexed securities.

                        trust fund reimbursement

    The Committee has included language which permits the BPD 
to be reimbursed for the administrative services it provides to 
the various trust funds. The Committee notes that this 
provision does not conflict with those provisions which permit 
the Financial Management Service be reimbursed for the 
administrative services it provides to other trust funds.

                    Bureau of Engraving and Printing

------------------------------------------------------------------------
                                          1997                1998      
------------------------------------------------------------------------
Federal Reserve Notes...........  9.6 billion........  10 billion       
Postage Stamps..................  25 billion.........  25 billion       
Securities, commissions, etc....  54 million.........  54 million       
Cost of operations..............  $463 million.......  $477 million     
Revenue.........................  $476 million.......  $497 million     
------------------------------------------------------------------------

                                Mission

    The Bureau of Engraving and Printing (BEP), a non-
appropriated revolving fund account, designs, manufactures, and 
supplies Federal Reserve notes, various public debt 
instruments, as well as most evidences of a financial character 
issued by the United States, such as postage and internal 
revenue stamps. The BEP executes certain printings for various 
territories administered by the United States, particularly 
postage and revenue stamps.
    The operations of the BEP are financed by means of a 
revolving fund established in accordance with the provisions of 
Public Law 656, August 4, 1950 (31 U.S.C. 181), which requires 
the BEP to be reimbursed by customer agencies for all costs of 
manufacturing products and services performed. The BEP is also 
authorized to assess amounts to acquire capital equipment and 
provide for working capital needs. The anticipated work volume 
is based on estimates of requirements submitted by agencies 
served.

               procurement of distinctive currency paper

    The Committee has included a provision (Sec. 116) which is 
the same provision included in the conference report 105-119, 
the 1997 Emergency Supplemental Appropriations. This provision 
prohibits the award of a new contract for the production of 
distinctive currency paper until certain requirements are met, 
limits the ``bridge'' contract to 24 months, and requires the 
Secretary of the Department of the Treasury to certify that the 
price under the terms of any ``bridge'' contract is fair and 
reasonable and that the terms of any ``bridge'' contract are 
customary and appropriate according to Federal procurement 
regulations. The Secretary is also required to report to the 
Committees on Appropriations on the price and profit levels of 
any ``bridge'' contract at the time of certification.
    The Bureau of Engraving and Printing (BEP) and the 
Department of the Treasury have had a 117-year virtual sole-
source supplier of distinctive currency paper. The result is 
that the federal government has a single supplier of 
distinctive currency paper. The Committee believes Congress 
should have a neutral-party assessment of the potential for 
disruption of currency paper production with a sole-source 
supplier and the optimum circumstances for government 
procurement of distinctive currency paper, including the 
benefits and costs and the advantages and disadvantages which 
might accrue from competition in the procurement of distinctive 
currency paper.
    The Department of the Treasury prohibited the BEP from 
furnishing capital to contractors to induce competition, which 
was contained in Solicitation No. BEP-96-13 (TN). The 
Department of the Treasury directed the BEP to issue 
Solicitation No. BEP-97-13 (TN) which does not furnish capital 
to contractors to induce competition. Solicitation No. BEP-97-
13 (TN) seeks bidders for a four-year, multi-hundred-million 
dollar contract, which commences on October 1, 1998.
    The Committee believes that before the contract for this 
solicitation can be awarded, additional information and the 
opportunity for Congressional oversight is required. Therefore, 
the provision prohibits the BEP and the Department of the 
Treasury from awarding the contract for the current 
solicitation until the General Accounting Office (GAO) has 
conducted a comprehensive analysis of the optimum circumstances 
for government procurement of distinctive currency paper and 
has reported its findings to the House and Senate Committees on 
Appropriations. The provision also limits the ``bridge'' 
contract to 24 months, and requires the Secretary of the 
Department of the Treasury to certify that the price under the 
terms of any ``bridge'' contract is fair and reasonable and 
that the terms of any ``bridge'' contract are customary and 
appropriate according to Federal procurement regulations. The 
``bridge'' contract is necessary to ensure the supply of 
currency paper until such time as the aforementioned 
restrictions are removed.
    The Committee directs the GAO to report on the current 
limitations on competition in currency paper procurement; the 
fairness and reasonableness of prices paid for currency paper 
and passport paper; possible alternatives to the current 
procurement situation, including the impact of Federal 
acquisition guidelines on supply competition; the potential for 
disruption of U.S. currency paper and passport paper supplies 
by the inability of the single government supplier to meet 
contract requirements and the adequacy of contingency supply 
arrangements made by the single government supplier; the impact 
of security requirements, especially the need for Federal law 
enforcement agencies to monitor paper production and security 
features, on any contract arrangement; the role of the Bureau 
of Engraving and Printing and the Department of the Treasury in 
the development of competitive proposals for the production of 
currency paper; and the impact of capitalization requirements 
on distinctive currency paper contracts.

                              New Facility

    The Bureau of Engraving and Printing (BEP) produces 
approximately 10 billion Federal Reserve Notes at its two 
facilities. Approximately half of the notes are produced at the 
Washington, DC facility; the remainder is produced at the 
Western Currency Facility in Fort Worth, Texas. The Committee 
recognizes that the Washington, DC facility, due to its age and 
design, is inadequate to meet the operational and security 
requirements of the BEP. The Committee believes that the cost 
to maintain the Washington, DC facility outweighs the 
operational benefits gained by continuing to produce currency 
at its current location and that the BEP should consider a 
relocation strategy which allows them to replace this location.
    The Committee recognizes that security concerns may require 
the government to have more than one facility capable of 
producing Federal Reserve Notes. Therefore, the BEP needs a new 
facility to replace the existing Washington, DC facility. The 
BEP should endeavor to find the most suitable location, given 
all the requirements of currency production and distribution.
    The Committee directs that the BEP address these concerns 
by planning for a facility to replace the current DC facility. 
The Committee expects the BEP to thoroughly study the most cost 
effective options that meet the requirements for the new 
facility. The Committee also expects the BEP to use this 
opportunity to address the need for increased security and 
production efficiency. The study should also review options for 
maintaining a presence for tourists at the current Washington, 
DC facility. The Committee directs that the report addressing 
these concerns be submitted to the Committee no later than May 
1, 1998.

                        re-design of the $1 bill

    To combat international counterfeiting threats to the 
United States, the Department of Treasury is redesigning 
Federal Reserve Notes. On March 26, the first of the newly 
designed $100 Federal Reserve Notes were placed into 
circulation. The remainder of the Federal Reserve Notes will be 
redesigned and are expected to begin circulating soon.
    Replacing the estimated 6.1 billion circulating $1 Federal 
Reserve Notes with newly designed notes containing special 
anti-counterfeiting properties may well be cost prohibitive. 
Furthermore, efforts have been initiated to replace the $1 
Federal Reserve Note with a $1 coin which, if successful, would 
render the $1 Federal Reserve Note obsolete. It would not be 
prudent to pursue expensive anti-counterfeiting measures for 
the $1 Federal Reserve Note when issues surrounding the 
introduction of a $1 coin have not yet been resolved.
    Therefore, the Committee directs the Department of Treasury 
and the Bureau of Engraving and Printing not to pursue the 
redesign of the $1 Federal Reserve Note at this time.

   Compensation for Police Forces at the U.S. Mint and the Bureau of 
                         Engraving and Printing

    The Committee has included a new general provision (Sec. 
123) which authorizes the Secretary of the Department of the 
Treasury, or his designee, to establish compensation rates for 
the police forces of the U.S. Mint and the Bureau of Engraving 
and Printing. Should the U.S. Mint be granted authority under a 
Performance Based Organization (PBO) concept, to develop 
alternative personnel systems without regard to title 5, such 
authority would supersede the authority contained in this 
provision, Sec. 123.
    The Committee is concerned about the overall implication of 
making changes in police officer pay on an incremental, bureau 
by bureau, basis. The Committee is concerned that this approach 
leads to competition among Federal agencies for police officer 
positions, causing compensation and retirement costs to widely 
vary for similar positions in different agencies. The Committee 
understands that issues associated with revising Federal police 
officer compensation and retirement will soon be addressed by 
the Government Reform and Oversight Committee. The Committee 
directs the Secretary of the Treasury to develop an overall 
plan to address the needs of the Department's police force 
through enhancements to pay and retirement, and present that 
plan to the Government Reform and Oversight Committee.

                           United States Mint

----------------------------------------------------------------------------------------------------------------
                                          Circulating coins         Numismatic coins            Protection      
----------------------------------------------------------------------------------------------------------------
1997:                                                                                                           
    Number of coins..................  20 billion.............  11 million.............  .......................
    Cost of operations...............  $288.7 million.........  $298 million...........  $12.1 million          
    Revenue..........................  $904.6 million.........  $303 million...........  .......................
1998:                                                                                                           
    Number of coins..................  20.5 billion...........  11 million.............                         
    Cost of operations...............  $307.9 million.........  $296 million...........  $16.7 million          
    Revenue..........................  $949.2 million.........  $303 million...........  .......................
----------------------------------------------------------------------------------------------------------------

                                Mission

    The United States Mint manufactures coins, receives 
deposits of gold and silver bullion, and safeguards the 
Government's holdings of monetary metals.
    In fiscal year 1997, Congress established the United States 
Mint Public Enterprise Fund which authorizes the U.S. Mint to 
use proceeds from the sale of coins to finance the cost of its 
operations. This has eliminated the need for future 
appropriations to support the mission of the U.S. Mint.

                   Report on Inventory of Rare Coins

    The Committee is aware that the U.S. Mint has in its 
possession, a stock of rare coins. It is unclear the value of 
these coins because the U.S. Mint has not conducted a thorough 
inventory of this stock. The Committee directs the U.S. Mint to 
complete an inventory of its rare coin stock and to note the 
current market value of each of these coins. This inventory 
should be submitted to the Committee on Appropriations and the 
House Committee on Banking and Financial Services no later than 
June 1, 1998.

                         Platinum Coin Program

    The Treasury, Postal Service and General Government 
Appropriations Act, 1997, (Public Law 104-208) included a 
provision (Section 524) which provided authority to the 
Secretary of the Treasury to mint a platinum coin for sale. 
This provision was based on language which was originally 
included as part of the Commemorative Coin reform bill which 
passed the House of Representatives. Section 524 provided 
authority of the U.S. Mint to use, and then replenish, platinum 
from the national stockpile which is under the authority of the 
Department of Defense.
    The Committee understands that the Department of Defense 
has worked with the U.S. Mint to arrange an opportunity for the 
Mint to use a portion of the platinum stockpile as a ``working 
stock'' to initiate the platinum coin program which was 
authorized in Public Law 104-208. The Committee is very pleased 
that this arrangement will allow the Mint to expeditiously 
implement the platinum coin program. As part of the agreement, 
the Mint will incur any costs associated with refining some of 
the platinum provided as stock. The Committee agrees with this 
requirement but wants to ensure that at such time as the 
Department of Defense requests this stock be returned, that the 
Mint has the opportunity to be reimbursed for costs associated 
with refining that stock which is returned.

                     Performance Based Organization

    In the conference report which accompanied the 1997 
appropriations bill, the Appropriations Committee provided a 
clear opportunity for the Administration to propose bold 
personnel initiatives on a test basis at the U.S. Mint. The 
conference report directed the Department of Treasury to 
submit, with the 1998 budget request, legislation necessary to 
implement a Performance-Based Organization (PBO) at the U.S. 
Mint. The Committee is disappointed that the Administration 
ignored this directive. This was clearly an opportunity to 
promote the Administration's concept of PBOs; an opportunity 
not seized by the Department. It is difficult to appreciate why 
the Department of Treasury is suggesting relief from certain 
personnel regulations at the Internal Revenue Service and yet 
is not willing to following through on such an opportunity with 
other branches within the Department.

                        Internal Revenue Service

                 PROCESSING, ASSISTANCE AND MANAGEMENT

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............    $1,790,328,000
Account realignment, 1997.............................    +1,091,529,000
Current operating level, fiscal year 1997.............     2,881,857,000
Budget estimate, fiscal year 1998.....................     2,943,174,000
Recommended in the bill...............................     2,915,100,000
Bill compared with:                                                     
  Appropriation, fiscal year 1997.....................    +1,124,772,000
  Current operating level, fiscal year 1997...........       +33,243,000
  Budget Estimate, fiscal year 1998...................       -28,074,000
                                                                        

                                Mission

    This appropriation provides for processing tax returns and 
related documents; processing data for compiling statistics of 
income; assisting taxpayers in correct filing of their returns 
and in paying taxes that are due; overall planning and 
direction of the Internal Revenue Service; and management of 
financial resources and procurement. In fiscal year 1997, the 
Internal Revenue Service realigned its accounting structure and 
transferred new responsibilities to this account: matching 
information returns with tax returns; and all rent and 
utilities payments.

                             Recommendation

    The Committee recommends $2,915,100,000 for the Processing, 
Assistance and Management appropriation. This is $28,074,000 
less than the request, $1,124,772,000 over the 1997 
appropriated level, and $33,243,000 over the current operating 
level. This Committee has provided $38,473,000 to maintain 
current levels, $13,866,000 for the annualization of the 1997 
pay raise, and $12,035,000 for the transfer from other Internal 
Revenue Service (IRS) organizations. This recommendation also 
includes a $30,000,000 rent reduction and $1,108,000 reduction 
for the opinion research organizations. The Committee 
recognizes that this recommendation requires the IRS to fund 
the estimated $10,966,000 in mandatory workload increases with 
additional funding.

          Regulations Regarding Conduct of Non-Profit Ventures

    The report which accompanied the Treasury, Postal Service 
and General Government Appropriations, 1997 (P.L. 104-208), 
incorporated by reference, language contained in the Senate's 
report 104-330 concerning tax-exempt organizations and the tour 
industry. This is a continuing issue in fiscal year 1998 
because of increased growth in the number of tax exempt 
organizations that choose to engage in commercial activities. 
The apparent ambiguities in the definition of what is and is 
not taxable, contribute to the ongoing controversy.
    The 1997 report directed the Internal Revenue Service 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. The IRS has 
not yet developed regulations to clarify this issue. The 
Committee believes that this issue must be resolved soon and 
requests the IRS to work with the appropriate Congressional 
committees to develop the necessary regulations before April 
15, 1998.

                   Brookhaven Customer Service Center

    The Committee is disturbed by the lack of progress being 
made on the proposed renovation plans of the IRS Center in 
Brookhaven, New York. Due to the inability of the IRS to 
finalize its plans for the center, the project is at least 
three years behind schedule. The Committee notes that the IRS 
and GSA have previously agreed to move forward on this project. 
The Committee is disappointed that IRS has fallen so far behind 
on a project the Committee believes is a priority. The 
Committee strongly urges the IRS to move this project forward. 
Therefore, the Committee requires the IRS to provide quarterly 
reports to the Committee on the progress of the project to 
ensure that the construction schedule, put forth by the IRS, is 
maintained.

                        Walk-In Service Centers

    Despite the assurances of the Internal Revenue Service that 
it will adequately staff and maintain its walk-in service 
centers, the Committee understands that these problems 
continue. According to information obtained by the Committee, a 
certain walk-in service center was recently closed and 
taxpayers encountered a note which stated that IRS's inability 
to provide assistance was because the Center was understaffed 
and underpaid. The note further suggested that the taxpayer 
contact Congress to complain.
    The Committee finds this behavior unacceptable.
    Since 1994, and despite reductions in other IRS accounts, 
Congress has provided a 21% increase in funding for taxpayer 
services and returns processing. The Committee has done so to 
fulfill its commitment that taxpayers receive the services for 
which they are entitled. Furthermore, since fiscal year 1996, 
the Committee has included a provision which requires the IRS 
to maintain, as a minimum, the same level of service which was 
provided in fiscal year 1995.
    To the Committee, the more significant issue is an 
appearance of unacceptable political activity on the part of 
government employees. The Committee believes that such activity 
should concern the Commissioner of the Internal Revenue Service 
and the Secretary of the Treasury. Therefore, the Committee 
requests the Commissioner, and the Secretary take appropriate 
action to remind IRS employees that their responsibility is to 
assist taxpayers in an efficient and courteous manner and that 
any attempt by employees to use government time and equipment 
for political activity is unacceptable.

           blank pages in tax forms and instruction booklets

    The Committee believes the IRS should work with various 
Federal law enforcement agencies to provide public service 
access to blank pages in the Federal tax forms and instruction 
booklets. For example, the Committee believes that these blank 
pages could be used to disseminate information on missing and 
exploited children.
    The Committee urges the IRS to work in cooperation with 
organizations such as the National Center for Missing and 
Exploited Children to develop a productive use of blank pages 
in the tax forms and instruction booklets.

                  financial management accountability

    The Committee believes a fundamental lack of financial 
management still remains at the IRS. For two years, the GAO has 
pointed out that the IRS has not yet received a clean opinion 
of its compliance with the Chief Financial Officers' (CFO) Act. 
The IRS' financial management systems are not in compliance 
with the accounting requirements of the CFO Act and the 
timetable for correcting the deficiencies identified by the GAO 
remains in flux. Indeed, the timetable for correcting these 
deficiencies changed between the time of the Commissioner's 
March 5, 1997, testimony before the Subcommittee and the time 
the IRS responded to questions for the record from that same 
hearing.
    The Committee is extremely concerned that the 
Administration annually requests funds in excess of seven 
billion dollars to operate the IRS, yet the IRS cannot provide 
Congress with an accounting summary which details how the 
previous years appropriated funds were spent. In order for the 
Committee to properly execute its primary mission of oversight, 
it is essential that the Committee have accurate accounting 
statements from previous fiscal years to fully assess the 
proposals under consideration.
    Therefore, in an effort to improve financial accountability 
at the IRS, the Committee directs the IRS to correct the 
deficiencies identified by the GAO by December 31, 1997 and 
that the Commissioner submit to the Committee by January 15, 
1998, a certification that corrective action has been 
accomplished on all GAO recommendations associated with 
financial management.

                oversight and management accountability

    The Committee is disappointed in the lack of management 
attention which IRS gives to providing Congress requested 
information. This lack of attention has deprived the Committee 
of the information necessary to provide adequate oversight.
    For example, the Committee has requested quarterly reports 
on fiscal year 1997 funding and staffing levels, and progress 
made in correcting problems identified by the General 
Accounting Office (GAO). In some cases IRS has not provided the 
information and in other cases, has provided the information at 
an extremely late date.
    This situation has made it difficult for the Committee to 
complete its work in an efficient manner. The lack of attention 
to the necessity to provide requested information, contributes 
to an overall impression that the IRS is disdainful of 
Congressional oversight. The Committee wishes to reiterate that 
its responsibility is oversight and the IRS has a 
responsibility to provide information to assist the Committee 
in this role.
    In an effort to improve management accountability at the 
IRS, and to provide necessary and timely information to the 
Committee, the IRS shall submit quarterly reports, no later 
than 15 days after the close of each quarter, as follows: (1) 
planned and actual FTE levels; (2) progress made in 
implementing all the recommendations made by the GAO in its 
July 1995 report on modernization; (3) progress made in 
implementing modernization; and, (4) an information systems 
funding profile.
    With regard to the report on FTE levels, the IRS should 
break out planned and actual FTEs funded, by program, for each 
IRS appropriation.
    With regard to the report on the progress made in 
implementing the GAO recommendations, the IRS should create a 
matrix which lists each GAO recommendation, identifies a 
schedule for implementing the recommendation, identifies the 
date the recommendations was fully implemented, and identifies 
which recommendations have not yet been implemented. For 
recommendations not yet implemented, the report must provide a 
date when implementation will occur and a justification of why 
the recommendation has not been implemented.
    With regard to the report on implementing modernization, 
the IRS should develop a schedule of dates to accomplish all 
major tasks within the modernization program, establish a 
budget for each task, and develop objective criteria to 
determine if the task was fully accomplished on time and within 
budget. The IRS should have the GAO review these performance 
measure to determine if the measures are similar to those used 
throughout the federal government to track development and 
deployment of major information systems.
    With regard to the report on a project by project funding 
profile for information systems, the IRS should create a matrix 
which provides information for each program (e.g. Year 2000 
conversion, Data Center Consolidation) and/or project (e.g. 
ICP). The report should include a quarterly expenditure plan 
for amounts appropriated by object class code for each fiscal 
year date when appropriated amount expires, and FTEs. The 
report should also include actual quarterly expenditures by 
object class code for each fiscal year unobligated balance by 
object class code the quarter in which obligations occurred by 
object class, and actual FTEs.

                      field office reorganization

    The Committee is concerned about reports that the ongoing 
IRS Field Office Reorganization may affect customer service in 
rural areas. The Committee directs that, before the Field 
Office Reorganization can be completed, that the Secretary of 
the Treasury submit a report to the House Appropriations 
Committee on the impact such a reorganization will have on the 
provision of taxpayer services in rural areas.

                      Electronic Filing Initiative

    The Committee has included a provision (Sec. 122) which 
directs the IRS to initiate an electronic filing project which 
would pay companies to provide free electronic tax return 
filing services to taxpayers. The initiative would require IRS 
to pay such companies up to $3.00 for each return filed 
electronically. The payment would only be made if the company 
provides the electronic filing service free to the taxpayer. 
This initiative should be set up through Federal procurement 
mechanisms and should require certification by participating 
companies that taxpayer rights are protected and that the 
companies meet privacy and other requirements established by 
the IRS.
    The Report of the National Commission on Restructuring the 
Internal Revenue Service includes a recommendation that the 
Internal Revenue Service increase the number of electronically-
filed tax returns by paying tax preparers for each return filed 
in an electronic mode. The Restructuring Commission estimated 
that the IRS' cost to process electronic filing tax returns is 
$1.15 per return versus its estimate of $7.00 to process each 
tax return filed in paper format. Therefore, an increase in 
electronic filing will reduce, by almost $6.00 per return, 
overall processing costs for the IRS. Section 122 requires the 
IRS to offset the cost of this initiative by reducing its 
seasonal workforce which is hired to process returns filed in a 
paper format.
    By far, the greater benefit of this initiative to the 
individual taxpayer, is that the information transmitted in 
electronic format goes directly to the master file, it is 
significantly error-free. Basic transcription errors caused 
when data from paper-filed tax returns is manually entered into 
the computer files, compounds other errors and drives the 
overall IRS error rate on tax data entry to almost 21 percent. 
Therefore, the electronic-filing initiative contained in 
Section 122 will increase the accuracy of IRS information and 
will help the IRS reduce the number of incorrect notices sent 
to taxpayers, reduce staff time devoted to correcting errors, 
and provide assurances to taxpayers that the information they 
provided to IRS is the same information entered into IRS 
computer files. This electronic-filing initiative will also 
provide the taxpayer with assurance that IRS actually received 
his or her tax form. The IRS acknowledges receipt of 
electronically-filed tax returns, but does not provide the same 
acknowledgment for paperfiled tax returns.
    The Committee directs that the electronic filing initiative 
included in Section 122 shall only apply to Form 1040's and any 
related information which is usually filed with this annual tax 
form. Other forms, such as quarterly 940 and 941 forms, should 
not be included in this initiative. The Committee stresses that 
this initiative is designed to increase the number of 
electronically-filed annual Form 1040 tax returns filed by 
individual and married taxpayers.
    The IRS should provide quarterly reports to the Committee 
on its implementation of this initiative.

                          TAX LAW ENFORCEMENT

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............    $4,104,211,000
Account realignment, 1997.............................    -1,067,993,000
Current operating level, fiscal year 1997.............     3,049,218,000
Budget estimate, fiscal year 1998.....................     3,153,722,000
Recommended in the bill...............................     3,108,300,000
Bill compared with:...................................                  
    Appropriation, fiscal year 1997...................      -995,911,000
    Current operating level, fiscal year 1997.........       +59,082,000
    Budget Estimate, fiscal year 1998.................       -45,422,000
                                                                        

                                mission

    This appropriation provides for the examination of tax 
returns, both domestic and international; the administrative 
and judicial settlement of taxpayer appeals of examination 
findings; technical rulings; monitoring employee pension plans; 
determining qualifications of organizations seeking tax-exempt 
status; examining tax returns of exempt organizations; 
enforcing statutes relating to detection and investigation of 
criminal violations of the internal revenue laws; collecting 
unpaid accounts; compiling statistics of income and compliance 
research; and, securing unfiled tax returns and payments.

                             recommendation

    The Committee recommends $3,108,300,000 for the Tax Law 
Enforcement appropriation. This is $45,422,000 less than the 
request, $995,911,000 less than the 1997 appropriated level, 
and $59,082,000 over the 1997 current operating level. The 
Committee has provided $50,703,000 to maintain current 
operating levels, $20,849,000 for the annualization of the 1997 
pay raise, and $928,000 for the transfer from other IRS 
organizations.

                     private sector debt collection

                               rescission

    The Committee has rescinded $10,000,000 from funds made 
available for the Tax Law Enforcement appropriation in fiscal 
year 1997. This rescission should be applied to the $13,000,000 
which the Congress directed the IRS transfer to the 
Departmental Offices appropriation under Section 117 of the 
Treasury, Postal Service and General Government Appropriations 
Act, 1997.
    The Committee has also included a rescission of $4,500,000 
from funds provided in fiscal year 1996 for the original pilot 
project on private sector debt collection. These funds remain 
available due to the decision by the Internal Revenue Service 
to suspend the original project pending review.
    The $13,000,000 transferred under Section 117 was for the 
express purpose of the Department initiating a second pilot 
project using private sector collection agencies to collect 
delinquent tax debt owed to the Federal government. The 
Department did not initiate this second pilot but simply 
directed the IRS to develop another project similar to first 
pilot project which was ongoing. Through an administrative 
mechanism, the Departmental Offices appropriation has provided 
reimbursement to the IRS for efforts associated with 
implementing the second pilot project.
    It has come to the Committee's attention that, for a 
variety of reasons, this second pilot project is not designed 
in such a way as to provide usable information to the IRS or to 
Congress. Therefore, the Committee has requested that IRS and 
the Department of Treasury halt the implementation of this 
second pilot project.
    Since the $13,000,000 was for a purpose of implementing a 
project which the Committee has now suspended, the funds are no 
longer required for that purpose and are therefore available 
for rescission. However, the Committee recognizes that the IRS 
has invested approximately $3,000,000 to administer the project 
thus far and has, therefore, rescinded only the remaining 
amount of $10,000,000. The Departmental Offices appropriation 
should expeditiously transfer funds as necessary to the IRS to 
accommodate this rescission.
    The Committee has also included a provision (Sec. 121) 
which repeals Section 117 of the Treasury, Postal Service and 
General Government Appropriations Act, 1997. This repeals the 
requirement to conduct this second project.

   enforcement of the tip reporting alternative commitment agreement

    The Committee is concerned about the methods which the IRS 
apparently uses to enforce compliance with the Tip Reporting 
Alternative Commitment Agreement (TRAC). TRAC is a voluntary 
agreement which has been developed by the IRS and the 
restaurant industry as means of improving the reporting of tip 
income. The Committee is concerned about reports that the IRS 
may be compelling members of the restaurant industry to accept 
this voluntary agreement by intimating that the business will 
be subject to an audit if the agreement is not signed.
    The committee acknowledges that IRS has the authority to 
perform audits in compliance with the tax code. However, the 
Committee is concerned when it receives reports that some 
taxpayers may perceive that IRS uses its audit authority as a 
means of intimidation. In this case, compelling the adoption of 
the voluntary TRAC agreement. The Committee believes IRS should 
stress its taxpayer services role by working with taxpayers to 
ensure compliance.

                          INFORMATION SYSTEMS

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............    $1,323,075,000
Account realignment, 1997.............................       -36,536,000
Current operating level, fiscal year 1997.............     1,286,539,000
Budget estimate, fiscal year 1998.....................     1,272,487,000
Recommended in the bill...............................     1,292,500,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................       -30,575,000
    Current operating level, fiscal year 1997.........        +5,961,000
    Budget Estimate, fiscal year 1998.................       +20,013,000
                                                                        

                                Mission

    This appropriation provides for Service-wide data 
processing support, including the evaluation, development, and 
implementation of computer systems (including software and 
hardware) requirements.

                             recommendation

    The Committee has included $1,292,500,000 for the 
Information Systems appropriation. This is $20,013,000 more 
than the request, $30,575,000 less than the 1997 appropriated 
level and $5,961,000 over the current operating level. The 
increase is associated with the Committee's desire to provide 
additional funding for the Century Date Change requirements: 
the IRS requested $84,936,000 and the Committee has provided 
$105,000,000, a $20,064,000 increase. The Committee also 
includes language which makes all these funds available until 
September 30, 1999.
    These funds shall be used for the following purposes:

Operational Systems.....................................    $949,300,000
Stay-in Business:
    Century Date Change.................................     105,000,000
    DIS/RPS Replacement.................................      44,026,000
    Quality Assurance...................................       7,212,000
    Interim RGLS........................................       5,100,000
Program Infrastructure:
    Modernization Management............................       8,227,000
    Performance Management Office.......................       3,300,000
    Systems Standards & Evaluation......................       5,800,000
Investment Infrastructure:
    Data Center Consolidation...........................     157,700,000
    Retraining/re-deployment of staff...................       7,000,000

    In addition, the Committee has removed the fiscal year 1997 
legislative language limiting $130,075,000 in appropriations to 
TSM development and deployment. The IRS has stated that it will 
use these funds for systems that support modernization, Century 
Date Change, and Data Center Consolidation.

                             modernization

    The Committee is pleased that the IRS has produced a 
Modernization Blueprint which was presented to Congress on May 
15, 1997. The Committee believes that this is a step in the 
right direction. While there have been a number of plans in the 
past, this Blueprint appears to be a solid product which IRS 
can use to develop a more detailed plan for implementation. The 
Committee believes the most important thing for the IRS at this 
point is to follow through on the processes and procedures it 
has established for investment review and systems life cycle 
and follow the plan presented in the May 15 Blueprint. 
Furthermore, there is much that can be done to implement 
progress on modernization ``groundwork'' and the IRS should not 
delay this progress.
    In 1997, Congress directed that the IRS turn over the 
majority of its Tax Systems Modernization (TSM) work to the 
private sector. The Committee is pleased that the IRS has 
embraced this concept and apparently intends to relinquish IRS' 
hold on the development and implementation of modernization 
through a new partnership with the private sector. Particularly 
encouraging is the release of the Request for Comment (RFC) for 
a prime/integrator contractor. The Committee has long been 
convinced that a modernization program could be realized if the 
IRS would assume a more traditional program management role and 
allow the private sector experts to perform the systems design, 
development, and implementation. However, the Committee 
believes this should be a reasonable partnership with 
appropriate levels of investment by both parties.
    The Committee agrees that the IRS should seek a partnership 
with the private sector, but shuffling private sector contracts 
with IRS employees and changing labels will accomplish nothing. 
This partnership opportunity must be used to dramatically 
restructure the Information Systems (IS) organization in a 
manner that will allow future partnerships with the private 
sector to succeed. The Committee believes that, once the 
requirements of the Century Date Change are fulfilled, the IS 
organization should be drastically reduced. While there is a 
legitimate need to ensure that existing systems and systems 
coming on line have sufficient staffing to operate and maintain 
them, the IS organization can accommodate these requirements 
with fewer staff. The IRS should submit a plan, with the 1999 
budget request, which identifies how the Committee's direction 
will be implemented through staffing reductions in the years 
2000-2004.
    The Committee believes that, in fiscal year 1998, the 
Government Program Management Office (GPMO) should be reduced 
and should contain no more than 100 IRS employees. There should 
be a consolidation of all IS contractor management into a 
single organization within the GPMO. The role of the GPMO with 
regards to modernization shall be limited to traditional 
program management responsibilities: 1) managing the prime 
contractor to ensure the IRS Modernization Blueprint is being 
met on-cost and on-schedule; 2) planning and tracking budgetary 
resources; 3) evaluating and approving acceptance testing; and, 
4) communicating with oversight and review groups and 
taxpayers.

                     modernization management board

    The Committee directs that $2,000,000 of the funds provided 
shall be made available to the Modernization Management Board 
(MMB) for the ongoing oversight operations of the MMB.

                       data center consolidation

    The Committee has included $157,700,000 in the 1998 
appropriation for data center consolidation. The Committee 
understands that IRS plans to reprogram approximately 
$43,000,000 in 1997 funds to initiate this consolidation in 
1997.
    The Committee is very pleased that this program can move 
forward at this time due to the tremendous benefits and cost 
savings which can be realized through implementation. The 
benefits include making the computer centers compliant with 
year 2000 requirements, replacing outdated technology, and 
setting the platform for the future modernization architecture. 
Additionally, the IRS claims this consolidation will produce 
over $300,000,000 savings through future cost reductions and a 
reduction of over 600 in the level of employees over a two year 
time period.
    The Committee has included $7,000,000 for any required 
retraining or redeployment costs which the IRS would need to 
incur as a result of the Consolidation. The Committee suggests 
that, to the extent possible, the IRS move any displaced 
personnel into Customer Service activities.

                          century date change

    The Committee is concerned that the $105,000,000 provided 
for the Century Date Change (CDC) conversion process will not 
be adequate to meet the requirements of the IRS. However, the 
Committee does not believe it can provide additional funds at 
this time.
    The Committee provided $45,000,000 in fiscal year 1997 for 
this program. Additionally, the Committee understands that the 
IRS will soon submit a $44,000,000 reprogramming which would 
provide a total of $89,000,000 for CDC in 1997.
    Additionally, the Committee is concerned that without a 
current inventory of systems and a verified need to upgrade 
these systems to a Year 2000 compliant state, it is impossible 
to determine if the budget request, or any additional funding 
requirement, will be judiciously invested. Therefore, the 
Committee directs the IRS to provide, by October 1, 1997, a 
listing of its current inventory of systems, an identification 
of those which require an upgrade to make them Year 2000-
compliant, a brief description of what is required to upgrade 
this system, a milestone chart for completion of such an 
upgrade program, and an overall cost estimate for the upgrades.

                   information technology investments

Appropriation, fiscal year 1997 to date.................        -- -- --
Budget estimate, fiscal year 1998.......................    $500,000,000
Recommended in the bill.................................     326,000,000
Bill compared with:
    Appropriation, fiscal year 1997.....................    +326,000,000
    Budget Estimate, fiscal year 1998...................    -174,000,000

                                mission

    The creation of the Information Technology Investment 
Account responds to the requirements of the Federal Acquisition 
Streamlining Act of 1994 and the Information Technology 
Management Reform Act of 1996 and represents new capital 
projects, formerly designated as Tax Systems Modernization in 
the ``Information Systems'' account within the Internal Revenue 
Service (IRS).

                             recommendation

    The Committee has included $326,000,000 for the Technology 
Investment Account. This is $174,000,000 less than the request 
and $326,000,000 over the 1997 level. The Committee has also 
included language limiting the obligation of these funds until 
certain conditions are met.

                             modernization

    The Committee agrees with the intent of this request which 
is to set aside funds for the implementation of the 
Modernization Blueprint which was provided to Congress on May 
15, 1997. The Committee has made these funds available until 
September 30, 2000, but has restricted obligation until 
September 30, 1998.
    The Committee has also included language which prohibits 
the expenditure of these funds until the IRS and the Department 
of the Treasury submit to Congress, for approval, a plan for 
expenditures. The plan must: (1) implement the Modernization 
Blueprint; (2) meet the information systems investment 
guidelines established by the Office of Management and Budget; 
(3) be reviewed and approved by the IRS' Investment Review 
Board, the Office of Management and Budget, and the 
Modernization Management Board; (4) meet the requirements of 
the IRS' Systems Life Cycle program; and (5) be in compliance 
with acquisition rules, requirements, guidelines, and systems 
acquisition management practices of the Federal government.
    With regard to Phase IV of the Modernization Blueprint, the 
Committee is very pleased to see that the IRS has addressed the 
pilot paper submissions processing program. The Committee 
recommends that the Office of Management and Budget work with 
the IRS to expeditiously implement this program. The Committee 
directs the IRS to submit a copy of its May 15, 1997, 
Modernization Blueprint to the Federal Chief Information 
Officer (CIO) Council for review. The Council is comprised of a 
majority of CIOs throughout the Federal government, 
encompassing years of experience and commitment to information 
systems modernization. The CIO Council, or its appropriate Sub-
council, should provide a report to the Committee on its 
analysis of the Modernization Blueprint.

          administrative provisions--internal revenue service

    Section 101. The Committee continues this provision which 
allows the transfer of 5 percent of the appropriations, subject 
to Congressional approval.
    Sec. 102. The Committee continues this provision which 
requires the IRS to maintain a training program in taxpayer's 
rights, dealing courteously with the taxpayers, and cross 
cultural relations.
    Sec. 103. The Committee continues this provision which 
requires the IRS maintain taxpayer services at not less than 
1995 levels.
    Sec. 104. The Committee has continued this provision, 
previously carried under ``General Provisions--Department of 
the Treasury,'' which prohibits the expenditure of funds for 
the collection of taxes unless the conduct of offices and 
employees of the IRS complies with the Fair Debt Collection 
Practices Act.
    Sec. 105. The Committee has continued this provision, 
previously carried under ``General Provisions--Department of 
the Treasury,'' which requires the IRS to institute policies 
and procedures which will safeguard the confidentiality of 
taxpayer information.

                      United States Secret Service

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............      $531,288,000
Budget estimate, fiscal year 1998.....................       575,971,000
Recommended in the bill...............................       555,736,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................       +24,448,000
    Budget Estimate, fiscal year 1998.................       -20,235,000
                                                                        

                                Mission

    The Secret Service is responsible for the security of the 
President, the Vice President and other dignitaries and 
designated individuals; for enforcement of laws relating to 
obligations and securities of the United States and financial 
crimes such as financial institution fraud and other fraud; and 
for protection of the White House and other buildings within 
Washington, DC.

                             Recommendation

    The Committee recommends $555,736,000, an increase of 
$24,448,000 from fiscal year 1997 appropriated levels and a 
reduction of $20,235,000 from the President's request. 
Additional funds of $16,837,000 are provided to the Secret 
Service through the Violent Crime Reduction Trust Fund and 
$5,775,000 through the Acquisition, Construction and Related 
Expenses Account.
    The Committee includes $6.1 million for FLEWUG through the 
Treasury Forfeiture Fund. Included in the Salaries and Expenses 
accounts is $6.7 million for vehicle replacement, $16.8 million 
for maintaining current levels, and $1.6 million for base 
operations. The Committee denies the transfer of $5 million 
from the Crime Trust Fund.

                          White House Security

    The Committee provides a total of $13,324,000 for 
additional efforts of the Secret Service related to White House 
Security in the upcoming year. Of this amount, $4,000,000 is 
provided through the Salaries and Expenses appropriation and 
the balance is funded through the Violent Crime Reduction Trust 
Fund.
    These funds will cover the shortfall anticipated during the 
upcoming year from hiring 277 additional full time employees in 
fiscal year 1997. The Committee denies, without prejudice, 
funding for an additional 27 technical and clerical positions 
in the upcoming year.
    The Committee notes that, since the completion of the 
``White House Security Review,'' the Committee has funded 
$51,748,000 of the total anticipated requirement of 
approximately $62,000,000. The Committee will continue to fund 
the recommendations of the ``White House Security Review'' as 
resources become available and anticipate that complete funding 
will be provided in fiscal year 1999.

                     pay reform, uniformed division

    The USSS has submitted a proposal to place all Uniformed 
Division officers in a single pay scale, establish new rates of 
basic pay for all members of the Uniformed Division and 
establish a new salary class for the Chief of the Uniformed 
Division. The Committee includes this proposal as Sec. 120 of 
the Treasury General Provisions.

      ACQUISITION, CONSTRUCTION, IMPROVEMENT AND RELATED EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $37,365,000
Budget estimate, fiscal year 1998.....................         9,176,000
Recommended in the bill...............................         5,775,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................       -31,590,000
    Budget Estimate, fiscal year 1998.................        -3,401,000
                                                                        

                                mission

    The Committee has established a new account for the 
acquisition, construction, improvement, equipment, furnishing 
and related costs for construction and maintenance of the new 
Secret Service Headquarters Building.

                             recommendation

    The Committee recommends $5,775,000, a reduction of 
$3,401,000 from the amount requested by the President and a 
reduction of $31,590,000 from 1997 appropriated levels. The 
Committee denies the request of $2,000,000 for additional 
maintenance requirements of the Rowley Training Center (RTC) 
and, instead, funds this requirement through the Treasury 
Forfeiture Fund. The Committee notes that the request for RTC 
is an increase of 19 percent above the FY 1997 level. The 
Committee directs the Secret Service to submit, as part of its 
FY 1999 budget, a detailed justification for the RTC, including 
an Object Class Analysis.

                General Provisions--Treasury Department

    Sec. 111. The Committee has continued this provision which 
requires the Secretary of the Treasury to comply with certain 
reprogramming guidelines when obligating or expending funds for 
law enforcement activities.
    Sec. 112. The Committee continues this provision which 
allows the Department of the Treasury to purchase uniforms, 
insurance, and motor vehicles without regard to the general 
purchase price limitation, and enter into contracts with the 
State Department for health and medical services for Treasury 
employees in overseas locations.
    Sec. 113. The Committee continues this provision which 
requires expenditures of funds so as not to diminish efforts 
under the Federal Alcohol Administration Act.
    Sec. 114. The Committee has included a new provision which 
authorizes transfers, up to 2 percent, between law enforcement 
appropriations under certain circumstances.
    Sec. 115. The Committee has included a new provision which 
authorizes transfers, up to 2 percent, between Departmental 
Offices, Office of Inspector General, Financial Management 
Service, and the Bureau of the Public Debt appropriations under 
certain circumstances.
    Sec. 116. The Committee has included a new provision which 
limits the contractual term for distinctive currency paper and 
requires a General Accounting Office report prior to the award 
of the new currency paper contract. This is the same provision 
which was included in the conference report 105-119, the 1997 
Emergency Supplemental Appropriations for Recovery from Natural 
Disasters, and for Overseas Peacekeeping Efforts, Including 
Those in Bosnia.
    Sec. 117. The Committee has included a new provision which 
requires the reimbursement of Secret Service personnel for 
certain fees and costs.
    Sec. 118. The Committee has included a new provision which 
adjusts the compensation for the Secretary of the Treasury. 
This adjustment will take effect with the appointment of the 
next Secretary.
    The Committee understands that when former Secretary of the 
Treasury Lloyd Bensten assumed the Office of the Secretary, the 
pay of that position was reduced by Public Law 103-02, 107 
Stat. 4 (1993), in order to avoid the prohibition in article 1, 
section 6, clause 2 of the Constitution. The Constitution does 
not allow a Senator or Representative to be appointed to any 
office whose emoluments or pay have been increased as a result 
of Congressional action during the tenure of that Senator or 
Representative. The Committee has included bill language to 
prospectively remedy this situation which will go into effect 
for the next Secretary.
    Sec. 119. The Committee has included a new provision 
limiting the amount of time the Department may use in 
responding to a request by the Committee.
    For many years, the Committee has been frustrated by the 
failure of the bureaus, agencies, and offices of the Department 
of Treasury to provide the Committee with testimony, hearing 
transcript edits, and responses to official questions for the 
hearing record in a timely manner. The Committee has found 
itself unable to properly assimilate testimony prior to 
scheduled hearings because of the inherent bureaucracy in the 
Department's clearing process. Additionally, the Committee's 
ability to have its hearing volumes printed in a timely manner 
has been compromised by this apparent disrespect for the time 
sensitive nature of the Committee's business.
    The Committee regrets that it must include language to 
address this situation.
    The Committee realizes that the Department has no intention 
of delaying or inhibiting the work of Congress or the best 
interests of taxpayers, and hopes that inclusion of this 
language will help to streamline the clearance process within 
the Department.
    Sec. 120. The Committee includes a new provision which 
establishes pay reform for the Uniformed Division of the Secret 
Service.
    Sec. 121. The Committee has included a new provision which 
repeals Section 117 of the fiscal year 1997 appropriation 
dealing with the second private sector debt collection project.
    Sec. 122. The Committee has included a new provision which 
directs the IRS to initiate an electronic filing project.
    Sec. 123. The Committee has included a new general 
provision which addresses compensation rates of police officers 
at the BEP and the U.S. mint.

                        TITLE II--POSTAL SERVICE

                     Payments to the Postal Service

                   Payment to the Postal Service Fund

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $85,080,000
Budget estimate, fiscal year 1998.....................        86,274,000
Recommended in the bill...............................        86,274,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        +1,194,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

      PAYMENT TO THE POSTAL SERVICE FUND FOR NONFUNDED LIABILITIES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $35,536,000
Budget estimate, fiscal year 1998.....................        34,850,000
Recommended in the bill...............................        34,850,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          -686,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                             RECOMMENDATION

    The Committee recommends $86,274,000 for Payment to the 
Postal Service Fund and $34,850,000 for Payments to the Postal 
Service Fund for Nonfunded Liabilities. These amounts are 
identical to the amounts requested by the Postal Service. For 
Payment to the Postal Service Fund for Nonfunded Liabilities, 
the Committee's recommendation is above the President's request 
by $34,850,000 as the President requested no funds for this 
account in fiscal year 1998.

                   Post Office in West Point, Alabama

    The Committee is concerned about the postal needs of the 
residents of West Point, Alabama, located in Cullman County. 
The Committee recommends that the United States Postal Service 
study and evaluate the need for a post office in West Point, 
Alabama, working with local officials and community leaders. 
The Committee further recommends that the United States Postal 
Service report its findings to the Committee.

                     Post Office in Snead, Alabama

    The Committee is concerned about the postal needs of the 
residents of Snead, Alabama, located in Blount County. The 
Committee recommends that the United States Postal Service 
study and evaluate the need for a post office in Snead, 
Alabama, working with local officials and community leaders. 
The Committee further recommends that the United States Postal 
Service report its findings to the Committee.

                  post office in sardis city, alabama

    The Committee is concerned about the postal needs of the 
residents of Sardis City, AL 35956, located in Etowah County. 
The Committee recommends that the United States Postal Service 
study and evaluate the need for a post office in Sardis, 
Alabama, working with local officials and community leaders. 
The Committee further recommends that the United States Postal 
Service report its findings to the Committee.

                   post office in sand rock, alabama

    The Committee is concerned about the postal needs of the 
residents of Sand Rock, AL, located in Cherokee County. The 
Committee recommends that the United States Postal Service 
study and evaluate the need for a zip code and post office in 
Sand Rock, Alabama, working with local officials and community 
leaders. The Committee further recommends that the United 
States Postal Service report its findings to the Committee.

                       local zoning requirements

    The Committee is aware that, consistent with other federal 
construction activities, the Postal Service is exempt from 
local zoning ordinances and building code requirements. The 
Committee is concerned that, in some instances, this may have a 
negative impact on certain local communities. The Committee is 
also aware of the Postal Service's ``Community Relations Guide 
for U.S. Postal Service Facilities Projects'', dated June 1997, 
that includes enhanced procedures for community involvement in 
decisions related to facility renovations, relocations, 
closings and consolidations. The Committee encourages Postal 
Service efforts to ensure meaningful community input into these 
decisions.

                    non-postal commercial activities

    The Committee has recently been made aware of concerns 
within the small business community relating to certain ``non-
postal'' commercial activities and packaging services. The non-
postal commercial activities recently initiated by the Postal 
Service include the sale of T-shirts, neckties, greeting cards, 
stationery, and other gift items.
    The Committee continues to have an interest in non-postal 
commercial activities and packaging services, and therefore 
directs the Postal Service to report, as part of its FY 1999 
budget submission, on the non-postal and packaging activities 
offered by the Postal Service including a description of each 
service, the potential benefits to postal customers, an 
assessment of how these services contribute to providing 
uniform postal services at uniform rates, an estimate of net 
revenue generated, and, if applicable, an assessment of the 
potential impact of non-postal and packaging operations on the 
small business community. The Committee also urges the Postal 
Service to refrain from entering new non-postal and packaging 
activities until the report has been submitted.
    The Committee also notes that the House Government Reform 
and Oversight Committee is considering postal reform 
legislation and among the issues which it may consider is the 
issue of competition by the Postal Service in these areas. The 
Committee will make this report available to that Committee and 
encourages it to consider action in this area as part of its 
postal reform legislation or as separate legislation.

                          global package link

    The Committee is concerned about the efforts of the United 
States Postal Service to expand its Global Package Link Service 
and believes that a one year freeze on expansion of this 
service is necessary. This freeze will give the GAO and the 
appropriate Congressional committees time to study the 
international mail market and provide results to Congress and 
the public for review. The freeze prohibits the expansion of 
the Global Package Link Service by adding countries not already 
participating as of the effective date of this Act, changing 
qualifications for using the service, or offering features not 
previously offered. It is the intent of the Committee that the 
term ``Global Package Link Service'' means the merchandise 
delivery service offered by the United States Postal Service 
for international delivery (and customs clearance) of retail 
merchandise sold by large volume catalog retailers or other 
retailers. Such term includes the International Package 
Consignment Service and any other similar service offered by 
the Postal Service.

             postal service in davis mountain resort, texas

    The Committee is aware of concerns about the postal needs 
of the residents of Davis Mountain Resort, Texas located in 
Jeff Davis County. The Committee recommends that the United 
States Postal Service study and evaluate restoring service to 
Davis Mountain Resort, Texas, working with local officials and 
community leaders. The Committee further recommends that the 
United States Postal Service report its findings to the 
Committee by December 31, 1997.

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

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............          $250,000
Budget estimate, fiscal year 1998.....................           250,000
Recommended in the bill...............................           250,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          -- -- --
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $40,193,000
Budget estimate, fiscal year 1998.....................        51,199,000
Recommended in the bill...............................        51,199,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................       +11,006,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                MISSION

    These funds provide for the compensation of the President 
and official expenses. Those funds also provide the President 
with staff assistance and provide administrative services for 
the direct support of the President.

                             RECOMMENDATION

    For the White House Office Salaries and Expenses account, 
the Committee recommends $51,199,000, an increase of 
$11,006,000 above the fiscal year 1997 appropriated level and 
the same as the President's request. This includes a transfer 
of $9,800,000 from the Department of Defense. The Committee 
fences $873,000 of the funds requested for automated data 
processing pending the submission of an architectural blueprint 
by the Office of Administration that defines the information 
technology requirements of the Executive Office of the 
President.

                   white house communications agency

    As requested by the Administration, the Committee has 
included $9,800,000 for the reimbursement of support services 
to the White House Office from the White House Communications 
Agency (WHCA). These funds have been transferred from the 
Department of Defense in accordance with PL 104-201, the 1997 
Defense Authorization Act. The Committee has included these 
funds as a separate line item within the White House 
appropriation to interject accountability and address concerns 
raised in the past about WHCA operations.

                            whca operations

    In November of 1995 and April of 1996, the DOD Inspector 
General issued audits of the operations and management of the 
WHCA. In general, the Inspector General found that WHCA was 
supporting a variety of White House operations that went beyond 
the original mission of the agency and that WHCA failed to have 
adequate procedures in place for accountability of both 
services and equipment. The Committee understands that the 
transfer of funds from the Department of Defense to the White 
House Office is merely a book keeping transfer and, as such, 
fails to see how this will address the management and 
accountability problems identified by the Inspector General.
    The Committee directs the White House Office to establish a 
system for tracking and verifying all reimbursements made to 
WHCA and to report to the House Committee on Appropriations on 
this system no later than November 1, 1997. In addition, the 
Committee directs the White House Office, as part of its annual 
budget submission, to provide a detailed accounting of 
reimbursements made to WHCA in the current fiscal year and an 
estimate of reimbursements for the upcoming year. This 
submission should include a description of the types of 
services reimbursed.

                 Executive Residence at the White House

                           OPERATING EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............        $7,827,000
Budget estimate, fiscal year 1998.....................         8,045,000
Recommended in the bill...............................         8,045,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          +218,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                MISSION

    These funds provide for the care, maintenance, and 
operation of the Executive Residence.

                             recommendation

    The Committee recommends an appropriation of $8,045,000, 
the amount requested by the President, and an increase of 
$218,000 from the amounts appropriated in fiscal year 1997. The 
Committee recommends several new legislative provisions for 
Executive Residence activities, including bill language 
establishing a new account for the reimbursable operating 
expense program, and bill language ensuring timely 
reimbursement to the federal government for both political and 
non-political events held within the Executive Residence. The 
specific parameters of these and other provisions, as well as 
the concerns of the Committee, are explained below.

                     prepayment of political events

    The Committee is concerned that, historically, 
appropriations made for the care and maintenance of the 
Executive Residence have been used as advance payment for 
political events. The Committee bases this concern on 
information learned during fiscal year 1998 hearing cycle that 
the Operating Expense account is used as an initial source of 
funds to pay for both political and non-political events within 
the Executive Residence. The Committee is concerned that 
federal appropriations are being used to pay for partisan 
political activities. The Committee is particularly concerned 
about this practice because of the number and cost of these 
events. For instance, during fiscal year 1996, there were 73 
political events at the White House for a total cost of 
$639,000. Over the past three years, the President has hosted 
103 political coffees in the White House.
    While the Committee is pleased to know that the costs of 
political events are reimbursed by non-federal sources, it has 
serious concerns about the lengthy delays between the date the 
event was held and the date of reimbursement. In some 
instances, payments for political events were not made for more 
than 6 months. In these cases federal taxpayer dollars were 
essentially used to float loans for political events hosted in 
the White House. The Committee notes that appropriated funds 
are generally not available for political purposes and believes 
this is an inappropriate use of this particular account.
    In order to address this concern, the Committee has 
included a separate account for all reimbursable events, 
including partisan political activities. The Committee wishes 
to emphasize that this provision will have no impact on the 
hosting of political events; it will merely require that these 
events be paid for through the reimbursable program.

         budgetary controls for reimbursable operating expenses

    The Committee is concerned about the absence of appropriate 
budgetary controls within the reimbursable program of the 
Executive Residence. Specifically, during the fiscal year 1998 
hearing cycle, the Committee learned that there are no limits 
on the budgetary resources available to this program and, in 
essence, that these funds are being used to replenish federal 
appropriations. Reimbursable activities have grown from 
$845,000 in FY 1992 to an estimated $2,024,000 in FY 1998, an 
increase of 136 percent.
    The Committee acknowledges the President's prerogative to 
host these events and does not object to the use of the 
reimbursable program as a mechanism to finance both political 
and non-political events in the White House. It is not the 
Committee's intent to limit the official and ceremonial 
functions of the Presidency. However, the Committee also 
believes there should be a greater degree of budgetary 
accountability as it relates to financing political events. In 
order to address this concern, the Committee has established a 
new account for the reimbursable program.

                     prepayment of political events

    The Committee believes that federal tax dollars should not 
be used as a source of advance payment for political events. In 
order to address this concern, the Committee has included a new 
provision requiring the Executive Residence to collect, in 
advance, the cost of reimbursable services provided for 
political events. The Committee recognizes that, in some 
instances, it may be difficult to estimate the exact cost of a 
particular event. The Committee directs the Executive Residence 
to develop a system that will provide an accurate estimate 
these costs. The Committee also directs the Executive 
Residence, as part of its annual reporting requirements, to 
include a comparison of prepayment amounts to actual event 
costs. In the event that prepayment amounts do not fully offset 
the cost of events, prompt collection provisions will apply. 
Finally, the Committee requires the national committee of the 
political party of the President to provide a deposit of 
$25,000 at the beginning of the fiscal year to be used as a 
source of advance payment for political events hosted by that 
Committee that cannot be adequately anticipated and paid for in 
advance. The Committee expects that after this fund is drawn 
down to pay for such events, the Residence would seek 
replenishment from the national committee.

                        Cost of Overnight Stays

    The Committee is concerned that federal appropriations are 
being used to finance unofficial activities within the 
Executive Residence and, in particular, overnight stays of non-
relative guests of the President and First Family. Again, the 
Committee acknowledges the President's prerogative to host 
overnight guests within the Executive Residence. However, the 
Committee has learned that some of these guests may have been 
granted access to the Lincoln bedroom for political gains. The 
Committee is not only concerned that the historical residence 
of the White House is being used for political purposes but 
also that the cost of hosting 938 overnight guests is being 
subsidized by the taxpayer.
    The Committee made every attempt to ascertain the true cost 
of overnight stays within the Executive Residence, the actual 
number of stays, and documentation that the cost of these 
stays, if any, were appropriately reimbursed. Unfortunately, 
the White House failed to respond to questions related to these 
matters. As such, the Committee has no way of verifying that 
payments have been made for the expenses of overnight guests at 
the White House. Although the White House suggests that these 
payments have been verified through audits by the General 
Accounting Office, the Committee notes that no such audit has 
occurred during the current Administration.
    The Committee has included a new provision requiring the 
Executive Residence to develop a system for tracking 
reimbursable expenses within the Executive Residence including 
a system that provides a standard for the definition of 
political versus non-political events. In the interest of 
privacy, the Committee notes it is willing to accept documents 
and information related to reimbursable expenses of the First 
Family that may be submitted as part of this reporting 
requirement on a confidential basis. Finally, although the 
Committee reluctantly includes these reporting provisions in 
bill language, it feels it has no other alternative given the 
limited cooperation of the White House in responding to 
Committee requests for information during the fiscal year 1998 
hearing cycle.

                   Excessive Delays in Reimbursements

    The Committee is concerned to learn of the excessive delays 
in the reimbursement of certain events within the Executive 
Residence. In some cases, reimbursements have not been made for 
a year or more. In FY 1995, four political events hosted in 
September of 1995 were not reimbursed until October of 1996 
and, in one instance, an October 1995 event was not reimbursed 
until January of 1997. The total cost of these events was 
approximately $67,000. The Committee recognizes that this is 
not a new problem. Delayed reimbursements are noted in past 
Presidential terms as well. However, the magnitude of the 
problem has grown in proportion to the number of events being 
hosted in the Executive Residence. In FY 1992, total 
reimbursements for 14 political events were $262,000; in FY 
1996, total reimbursements for 73 political events were 
$639,000.
    In order to address excessive delays in reimbursements for 
both non-political and political events, the Committee has 
included a new provision requiring prompt collection for 
reimbursable activities. The National Park Service testified 
that the average delay in reimbursement is between 90 and 120 
days. The Committee has taken this into consideration in the 
development of its proposal and notes that the Debt Collection 
Act of 1982 requires prompt collection of debt owed to the 
federal government as well as penalties for late payment. 
Specifically, the Committee includes bill language requiring 
that the Executive Residence issue a bill for reimbursable 
activities within 60 days of the date of the event and that 
collection be made within 30 days of the bill date. In the 
event that payments exceed this time, the language requires 
that interest be charged at the standard rate required by the 
Debt Collection Act of 1982. Given the prepayment requirements 
for political events, the Committee anticipates that these debt 
collection provisions will be primarily applicable to non-
political events.

                     Annual Reporting Requirements

    During the FY 1998 hearing cycle, the Committee was 
extremely frustrated by an inability to obtain comprehensive 
information on the operations of the reimbursable program 
within the Executive Residence. First, the White House declined 
the Committee's invitation to allow the Chief Usher and/or the 
Administrative Officer of the Executive Residence, the persons 
responsible for the day to day operations of the Executive 
Residence, to accompany the National Park Service to the 
Committee's appropriations hearing. During the hearing, the 
National Park Service was unable to answer a series of 
pertinent questions relating to the operations of the 
residence. Additionally, in response to the Committee's 
``Questions for the Record,'' the Executive Residence failed to 
provide additional information. While the Committee has no 
intention of jeopardizing certain confidential operations of 
the Executive Residence, it also believes the failure of the 
Executive Residence to respond to these questions thwarts the 
Committee's oversight responsibilities. In order to ensure 
effective oversight in the future, the Committee has included a 
new provision requiring the Executive Residence to report, 
within 90 days of the end of each fiscal year, on the 
reimbursable program within the Executive Residence. The 
Committee does not wish in any way to invade the privacy of the 
First Family in its own home, which is the Executive Residence. 
In the report the Committee seeks only an identification of the 
total reimbursable ceremonial events and the total reimbursable 
political events hosted in the Executive Residence. Again, the 
Committee includes these reporting requirements in bill 
language because of the limited cooperation of the White House 
during the fiscal year 1998 hearing cycle.

                   overtime costs for domestic staff

    The Committee was concerned to learn that overtime costs 
for the Domestic Staff have increased by 39 percent between 
fiscal year 1992 and fiscal year 1996 and that overtime costs 
associated with reimbursable events held within the Executive 
Residence have increased by 120 percent during this same period 
of time. The Committee notes that domestic staff work an 
average of 37 overtime hours per month and that overtime rates 
vary from a low of $16.59 per hour for a ``Maid'' to a high of 
$63.88 per hour for the ``Pastry Chef''. Given these rates and 
the increase in the number of events being held within the 
White House, it is not surprising that overtime costs have 
increased so dramatically.
    The Committee directs the Executive Residence, as part of 
its annual reporting requirements on the costs of reimbursable 
events, to identify overtime costs for Domestic Staff. This 
identification should include overtime paid to: full time 
permanent employees, other than full time permanent employees, 
other personnel compensation and contractual services.

                   WHITE HOUSE REPAIR AND RESTORATION

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date.............            -- -- --
Budget estimate, fiscal year 1998...................            $200,000
Recommended in the bill.............................             200,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997.................            +200,000
    Budget Estimate, fiscal year 1998...............            -- -- --
                                                                        

                                mission

    This account funds repair, alternation and improvement of 
the Executive Residence at the White House. A separate account 
was established in fiscal year 1996 to program and track 
expenditures for capital improvement projects at the Executive 
Residence.

                             RECOMMENDATION

    The Committee recommends $200,000, the amount requested by 
the President. There were no funds appropriated to this account 
in fiscal year 1997.

 Special Assistance to the President and the Official Residence of the 
                             Vice President

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............        $3,280,000
Budget estimate, fiscal year 1998.....................         3,378,000
Recommended in the bill...............................         3,378,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................           +98,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                MISSION

    These funds are to be used by the Vice President to carry 
out responsibilities assigned him by the President and by 
various statutes. These funds also provide for the care and 
operation of the Vice President's official residence. Also 
included in this presentation are the operations of a gift fund 
for the official residence of the Vice President.

                             RECOMMENDATION

    The Committee recommends $3,378,000, the amount requested 
by the President and an increase of $98,000 over the fiscal 
year 1997 appropriated level. The Committee fences $69,800 of 
the funds requested for automated data processing pending the 
submission of an architectural blueprint by the Office of 
Administration that defines the information technology 
requirements of the Executive Office of the President.

                           OPERATING EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............          $324,000
Budget estimate, fiscal year 1998.....................           334,000
Recommended in the bill...............................           334,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................           +10,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                             RECOMMENDATION

    The Committee recommends $334,000, an increase of $10,000 
over 1997 appropriated levels and the same as the amount 
requested by the President.

                      Council of Economic Advisers

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............        $3,439,000
Budget estimate, fiscal year 1998.....................         3,542,000
Recommended in the bill...............................         3,542,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          +103,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                MISSION

    The Council of Economic Advisers analyzes the national 
economy and its various segments, advises the President on 
economic developments, recommends policies for economic growth 
and stability, appraises economic programs and policies of the 
Federal Government, and assists in preparation of the annual 
Economic Report of the President to Congress.

                             RECOMMENDATION

    The Committee recommends $3,542,000, the amount requested 
by the President and an increase of $103,000 over the fiscal 
year 1997 appropriated level.

                      Office of Policy Development

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............        $3,867,000
Budget estimate, fiscal year 1998.....................         3,983,000
Recommended in the bill...............................         3,983,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          +116,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                MISSION

    The Office of Policy Development supports the National 
Economic Council and the Domestic Policy Council in carrying 
out their responsibilities to advise and assist the President 
in the formulation, coordination, and implementation of 
economic and domestic policy. The Office of Policy Development 
also provides support for other domestic policy development and 
implementation activities as directed by the President.

                             RECOMMENDATION

    The Committee recommends $3,983,000, the amount requested 
by the President and an increase of $116,000 over the fiscal 
year 1997 appropriated level. The Committee fences $30,000 of 
the funds requested for automated data processing pending the 
submission of an architectural blueprint by the Office of 
Administration that defines the information technology 
requirements of the Executive Office of the President.

                       National Security Council

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............        $6,648,000
Budget estimate, fiscal year 1998.....................         6,648,000
Recommended in the bill...............................         6,648,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          -- -- --
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                MISSION

    The National Security Council advises the President on the 
integration of domestic, foreign, and military policies 
relating to national security.

                             RECOMMENDATION

    The Committee recommends $6,648,000, the amount requested 
by the President and at a level equal to the fiscal year 1997 
appropriated level.

                        Office of Administration

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $26,100,000
Budget estimate, fiscal year 1998.....................        28,883,000
Recommended in the bill...............................        28,883,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        +2,783,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                mission

    The Office of Administration's mission is to provide high-
quality, cost-effective, administrative services to the 
Executive Office of the President. These services, defined by 
Executive Order 12028 of 1977, include financial, personnel, 
library and records services, information management systems 
support, and general office services.

                             recommendation

    The Committee has included $28,883,000 for the Office of 
Administration, the level requested by the President and an 
increase of $2,783,000 above the fiscal year 1997 appropriated 
level. The Committee continues to fence resources for automated 
data processing within the Executive Office of the President 
(EOP) pending the completion and submission of an architectural 
blueprint for capital investments. For the Office of 
Administration, the Committee has fenced $873,000 of the funds 
requested for automated data processing hardware and software. 
This is in addition to the fence of $1,150,000 for the Office 
of Administration's proposed Capital Investment Plan.

                        capital investment plan

    The Committee is pleased with the submission of the EOP's 
five year Capital Investment Plan on February 28, 1997. 
However, the Committee continues to have concerns regarding the 
development of this plan and, specifically, that the EOP has 
requested resources for the upcoming fiscal year for specific 
capital investments absent a complete architectural blueprint.
    For fiscal year 1997, the Committee fenced $966,700 for 
various offices within the EOP for information technology. 
Based on the February 28, 1997 Capital Investment Plan, as well 
as information provided to the Committee during the fiscal year 
1998 hearing cycle, the Committee released these funds but made 
$250,000 available for the sole purpose of developing an 
architectural blueprint. The Committee believes this 
architectural blueprint should be a priority for the Office of 
Administration and does not believe it is prudent to continue 
to fund remedial and incremental upgrades to the EOP computer 
system absent a comprehensive strategy.
    The Committee has provided the $2,000,000 requested for the 
support of information technology within the EOP for the 
upcoming fiscal year. However, the Committee has fenced 
$1,150,000 of these funds pending the submission of an approved 
architectural blueprint. The Committee has made available 
$600,000 for the immediate requirements of ensuring that EOP 
computer systems are Year 2000 compliant and an additional 
$250,000 for those activities determined by the Office of 
Administration to be necessary for security maintenance 
activities of the EOP computer network.

                    Office of Management and Budget

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $55,573,000
Budget estimate, fiscal year 1998.....................        57,240,000
Recommended in the bill...............................        57,240,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        +1,667,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                mission

    The Office of Management and Budget assists the President 
in the discharge of budgetary, economic, management, and other 
executive responsibilities.

                             recommendation

    The Committee recommends $57,240,000 the amount requested 
by the President and an increase of $1,667,000 over the fiscal 
year 1997 appropriated level.

                     year 2000 software conversion

    The Committee has reviewed OMB's Year 2000 Report, 
submitted in compliance with the fiscal year 1997 
appropriations language and continues to have significant 
concerns regarding the government's ability to have its 
computer systems ready for the century date conversion in the 
Year 2000. Specifically, the Committee is concerned that the 
government-wide estimate of $2.3 billion for Year 2000 is 
significantly understated, that various agencies are not 
allowing adequate time for the validation of converted systems, 
and that, government wide, inadequate attention is being paid 
to other date sensitive systems. The Committee finds that 
referring to Year 2000 as merely a ``computer problem'' ignores 
other systems that are also subject to failure at the turn of 
the century.
    As OMB is the central management arm of the federal 
government, the Committee expects that OMB will not only take 
on this challenge in a centralized fashion, but will also be 
aggressive in its oversight of agencies as they begin to 
conform their date sensitive systems to Year 2000 compliance.
    The Committee directs OMB to report to the House Committee 
on Appropriations, the House Committee on Government Reform and 
Oversight, and the House Science Committee, on a quarterly 
basis, on the progress being made on Year 2000 conversion. 
These reports should include a summary of agency costs to date 
and a comparison of these costs to those estimated in agency 
budget submissions. The Committee also directs OMB to review 
agency validation schedules and to report back on the adequacy 
of these validation schedules, including a summary of 
contingencies being developed by agencies in the event that 
validation schedules are inadequate and agency conversion is 
not complete by the Year 2000. As part of the validation 
review, OMB should report on agency preparedness for 
communication interfaces with systems external to the federal 
government, including state and local governments and the 
private sector. The Committee also directs OMB to identify 
other government wide systems that are date-sensitive as part 
of the first quarterly report submitted to the Committees.

                   Technology Investment Initiatives

    The Committee was pleased to learn of OMB Directive M-97-
02, dated October 25, 1996 regarding government wide technology 
investment initiatives. However, despite the clear direction 
included in this directive, the Committee is concerned to see 
several agencies under its jurisdiction come forward with 
technology investment initiatives that clearly do not meet the 
conditions set forth in that directive. Specifically, the 
Committee does not find that Customs' Automated Commercial 
Environment system, IRS's Tax Systems Modernization, and the 
Executive Office of the President's Capital Investment Plan 
meet the conditions of OMB's long term technology investment 
strategy. The Committee urges OMB to continue aggressive 
oversight of agency technology needs and to submit only those 
requests which meet the criteria set forth in OMB Directive M-
97-02 in the President's fiscal year 1999 budget request.

                     Personnel Costing Assumptions

    The Committee was surprised to learn of the different 
personnel costing assumptions currently being utilized within 
the various branches of OMB for federal law enforcement 
personnel. In many instances, the lack of consistency within 
OMB has given what appears to be preferential treatment for the 
costing of personnel within the Department of Justice at the 
expense of law enforcement personnel within the Department of 
the Treasury. OMB is directed to review the personnel costing 
assumptions used to calculate the cost of new full time 
employee equivalents (FTE) for the Customs Service and other 
Treasury law enforcement bureaus and to report to the Committee 
on these assumptions. This report should also include a 
comparison to costing assumptions used by OMB for new FTE 
within the various law enforcement bureaus of the Department of 
Justice.

                 Office of National Drug Control Policy

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $35,838,000
Budget estimate, fiscal year 1998.....................        36,016,000
Recommended in the bill...............................        43,516,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        +7,678,000
    Budget Estimate, fiscal year 1998.................        +7,500,000
                                                                        

                                mission

    The Office of National Drug Control Policy, established by 
the Anti-Drug Abuse Act of 1988, is charged with developing 
policies, objectives and priorities for the National Drug 
Control Program as defined by the Act and Executive Order 
12880.

                             recommendation

    The Committee recommendation includes $18,016,000 for the 
salaries and expenses of the office, $16,000,000 for 
counternarcotics research and development, $1,000,000 for 
policy research and evaluation, and $1,000,000 for conferences 
on model state drug laws. In addition, $5,000,000 is funded in 
the Violent Crime Reduction Trust Fund to initiate a 
counterdrug technology program.

                    model state drug law conferences

    The Committee continues to support implementation of model 
State drug law conferences, which provide a meeting place for 
educators, drug prevention and treatment experts, law 
enforcement and corrections officials, district and county 
attorneys and others to discuss innovations in anti-drug abuse 
programs. These conferences give those dealing with demand, 
supply, and law enforcement policy the opportunity to compare 
notes on what approaches do and do not succeed. To date, 
conferences have been held in nine States, with consistently 
successful results. The Committee provides a third installment 
of $1,000,000 to continue the work of these conferences, and 
will continue to fund them until they have taken place in all 
50 States.

                counterdrug technology transfer program

    The Committee provides $7,500,000 to establish a program 
for transferring technology to State and local law enforcement 
agencies. An additional $5,000,000 is provided in the Violent 
Crime Reduction Trust Fund for this purpose.

                     Federal Drug Control Programs

             high intensity drug trafficking areas program

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............      $127,102,000
Budget estimate, fiscal year 1998.....................       140,207,000
Recommended in the bill...............................       146,207,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................       +19,105,000
    Budget Estimate, fiscal year 1998.................        +6,000,000
                                                                        

                                mission

    The High Intensity Drug Trafficking Areas (HIDTA) Program 
was established by the Anti-Drug Abuse Act of 1988 to provide 
assistance to Federal and State and local law enforcement 
entities operating in those areas most adversely affected by 
drug trafficking. Since January 1990, the Director of the 
Office of National Drug Control Policy or Congress have 
designated fifteen areas as HIDTAs: New York, Los Angeles, 
Miami, Houston, the Southwest Border, Baltimore/Washington, 
Puerto Rico/Virgin Islands, Chicago, Atlanta, Philadelphia/
Camden; the Gulf Coast; Lake County, Indiana; the Midwest 
(Iowa, Kansas, Missouri, Nebraska, and South Dakota, focused on 
methamphetamine); the Pacific Northwest (Washington Cascades); 
and the Rocky Mountains (Colorado, Utah, and Wyoming).

                             recommendation

    The Committee concurs with the President's funding request, 
with the proviso that support will continue to be provided to 
established HIDTAs. The Committee includes bill language 
directing that all currently established HIDTA's be funded at 
no less than the fiscal year 1997 levels in fiscal year 1998. 
The Committee includes $5 million for a new HIDTA in the three 
state area of Kentucky, Tennessee and West Virginia and $1 
million for a new HIDTA in central Florida.

                        special forfeiture fund

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............      $112,900,000
Budget estimate, fiscal year 1998.....................       175,000,000
Recommended in the bill...............................       205,000,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................       +92,100,000
    Budget Estimate, fiscal year 1998.................       +30,000,000
                                                                        

                                mission

    The Special Forfeiture Fund was established by the Anti-
Drug Abuse Act of 1988, as amended, to be administered by the 
Director of the Office of National Drug Control Policy. While 
the fund was originally authorized to receive deposits from the 
Department of Justice Assets Forfeiture Fund and the Treasury 
Forfeiture Fund, its current source of funding is General Fund 
appropriations.

                             recommendation

    The Committee provides $205,000,000, of which $195,000,000 
is for the proposed media campaign and $10,000,000 is to 
initiate a new drug-free community matching grant program. The 
Committee has delayed the obligation of $46,000,000 of the 
media campaign funds due to funding constraints.

                             media campaign

    ONDCP has proposed a five-year media campaign at a total 
cost to the federal government of $875 million. An explicit 
assumption of this proposal is that the federal funds will be 
matched by private contributions. Together, this will represent 
an investment of nearly $1.8 billion. The Committee provides 
$195 million towards this effort. While the Committee is 
pleased that the Administration has revived its commitment to 
drug reduction efforts, the Committee also believes that an 
investment of this magnitude requires a comprehensive strategy. 
At this time, the Administration has neither developed a 
specific strategy nor identified how it would measure program 
performance.
    In order to ensure accountability, the Committee requires 
the Director of ONDCP to certify that these funds will neither 
displace nor replace current anti-drug community based 
coalition efforts, and that no funds will be used for partisan 
political purposes. Additionally, the Committee requires ONDCP 
to develop a system to measure success in terms of outcomes of 
the campaign. The Committee believes that performance measures 
should capture the use of all categories of drugs as well as 
changes in the attitudes of youth towards drug use.
    The Committee directs ONDCP to assess all media vehicles 
available for this campaign including, but not limited to, 
broadcast and print media, and the Internet. Further, the 
Committee directs ONDCP to consult with media and drug experts, 
such as the Ad Council and the Partnership for a Drug-Free 
America, in an effort to draw from the experience and expertise 
of individuals and organizations that have experience in this 
field. The Committee is convinced that close consultation with 
the private sector on the development and implementation of 
this campaign is critical to its success.
    The Committee encourages ONDCP to fund programs supported 
by corporate, private, or non-profit contributions donated to 
establish statewide paid media drug prevention campaigns with 
appropriated funds from this account. Such statewide campaigns 
and their corporate funding should be proposed and established 
by March 1, 1998. Should multiple statewide campaigns be 
proposed, ONDCP has the discretion to choose which campaigns to 
support.
    The Committee believes this media campaign, if properly 
executed, has the potential to produce concrete results by the 
year 2001. The Committee will closely track this campaign and 
its contribution to achieving a drug-free America, and directs 
ONDCP to submit quarterly reports on the obligation of funds as 
well as the specific parameters of the campaign. The Committee 
anticipates that future funding will be based on results.

                         drug-free communities

    The accelerating rate of drug use by young Americans is a 
major concern that must be addressed. The Committee therefore 
provides $10,000,000 to support the initiation of matching 
grants to drug free communities, as authorized in the Drug-Free 
Communities Act of 1997. These funds will be used to support 
the establishment of local counterdrug efforts that are 
characterized by strong conditions for local initiative, 
support, and accountability. In addition, the requirement for 
participating communities to match funding will help ensure the 
degree of commitment necessary to success.

                         miami youth initiative

    The Committee notes that the South Florida High Intensity 
Drug Trafficking Area, which was first designated by ONDCP in 
1990, has already established programs in 11 South Florida 
communities to help them reduce the use of drugs by young 
people and has also funded drug treatment programs. The 
Committee expects that in awarding grants under this new 
program ONDCP will recognize both the need for additional 
resources in South Florida and the demonstrated commitment of 
the local communities in South Florida to reducing substance 
abuse among young people.

                          parental involvement

    ONDCP's 1997 National Drug Control Strategy recognizes that 
parents are a critical part of dealing with the problems of 
drug prevention and abuse. However, it does not propose any 
initiatives to encourage parental involvement. The Committee 
directs ONDCP to report on the specific means that will be used 
to meet these objectives, particularly Objectives 1 and 5 of 
Strategic Goal 1, by December 31, 1997.

                          unanticipated needs

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............          -- -- --
Budget estimate, fiscal year 1998.....................        $1,000,000
Recommended in the bill...............................          -- -- --
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          -- -- --
    Budget Estimate, fiscal year 1998.................        -1,000,000
                                                                        

                                Mission

    These funds enable the President to meet unanticipated 
exigencies in support of the National interest, security or 
defense.

                             recommendation

    The Committee appropriates no funds to the Unanticipated 
Needs Account. Since 1989, funds have been obligated from this 
account only once: in 1994 when $250,000 was obligated to start 
up the John F. Kennedy Records Review Board. The Committee 
believes there are more other pressing priorities requiring 
funding in the upcoming fiscal year. In the event the President 
requires the use of funds for unanticipated needs, the 
Committee is willing to consider either a supplemental or a 
transfer request.

                     TITLE IV--INDEPENDENT AGENCIES

 Committee for Purchase from People Who Are Blind or Severely Disabled

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............        $1,800,000
Budget estimate, fiscal year 1998.....................         1,940,000
Recommended in the bill...............................         1,940,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          +140,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                mission

    The Committee for Purchase From People Who Are Blind or 
Severely Disabled was established by the Wagner-O'Day Act of 
1938, as amended. Its primary objective is to increase the 
employment opportunities for people who are blind or have other 
severe disabilities and, whenever possible, to prepare them to 
engage in competitive employment.

                             recommendation

    The Committee concurs with the Administration's request.

                      Federal Election Commission

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $28,165,000
Budget estimate, fiscal year 1998.....................        34,216,000
Recommended in the bill...............................        30,350,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        +2,185,000
    Budget Estimate, fiscal year 1998.................        -3,866,000
                                                                        

                                mission

    The Commission administers the disclosure of campaign 
finance information, enforces limitations on contributions and 
expenditures, supervises the public funding of Presidential 
elections, and performs other tasks related to Federal 
elections.

                             recommendation

    The Committee recommends $30,350,000, an increase of 
$2,185,000 from the fiscal year 1997 appropriated level and 
$3,866,000 below the amount requested by the FEC. In addition 
to the amounts provided through the Salaries and Expenses 
Account, the Committee has provided an additional $4.2 million 
for FEC's internal modernization efforts in Section 514 of the 
bill, bringing total funding for the FEC to slightly above the 
President's revised request of $34.2 million. Of the additional 
amount provided, $2.2 million is targeted to fully fund those 
components of FEC's proposed Case Management System that the 
Committee believes are critical to assisting the Office of 
General Counsel in meeting their statutory workload 
requirements but have been slipped by the FEC because of a lack 
of funding. The Committee provides an additional $2.0 million 
to accelerate the implementation of electronic filing. The 
Committee has made the obligation of these funds contingent 
upon the filling of all current Commissioner vacancies within 
the FEC as well as the enactment of legislation limiting the 
terms of Commissioner to one, six year term. Term limit 
legislation is included as Section 515 as part of the bill.

               disclosure of fec filings on the internet

    One of the primary goals of the FEC is to ensure full 
public disclosure of information on campaign contributions and 
expenditures. People around the nation should be entitled to 
easy and quick examination of the actual material that is filed 
by campaigns but these documents are currently available for 
viewing only at the offices of the FEC in Washington D.C. and a 
few other locations. Because the FEC currently images most 
campaign disclosure filings in ``Tagged Image File Format'' 
(TIFF), for transmission to other locations, including the 
office of the Clerk of the House, the additional cost of 
placing this imaged material, including all House, PAC and 
political party filings, on the Internet is not excessive.
    The Government Printing Office (GPO) has offered to perform 
this function for a start-up cost of $300,000 in FY 1998, 
however, the Committee believes that the FEC should have an 
opportunity to manage the Internet disclosure process for a 
comparable or, if possible, a lower cost. Therefore, the 
Committee has provided $300,000 for the specific purpose of 
establishing a system, no later than January 1, 1998, for 
disclosing and maintaining on the Internet, images of all 
filings with the FEC that are currently imaged and available to 
the Clerk of the House's office. The images shall be made 
available in a format which is directly viewable from commonly 
utilized Internet browsing software.
    If within 60 days after enrollment of this legislation, the 
FEC determines that it can not provide the Internet access, the 
FEC is directed to inform, in writing, the Committee on 
Appropriations and the Committee on House Oversight of such 
action and directs the FEC to transfer $300,000 to GPO for the 
purpose of providing such access.

                         fec funding increases

    On an annual basis, the FEC appears before the Committee to 
request additional resources to meet the increased workloads 
associated with the past several election cycles. The Committee 
does not doubt that FEC's workloads have grown. The Committee 
does, however, take exception to the FEC's insistence that the 
only way workloads can be adequately managed is through a 
commensurate increase in appropriations. The Committee is 
concerned that, despite efforts to be prudent in the allocation 
of resources to the FEC, FEC's budget has grown by 65 percent 
since fiscal year 1991, including an increase of 22 percent in 
full time staff levels. Had the Committee provided FEC's 
revised request for fiscal year 1998, FEC's budget would have 
gone up by 100 percent since fiscal year 1991, including a 43 
percent increase in staff.
    Despite these increases, FEC appears before the Committee 
to testify that their resources are insufficient. What is 
perplexing to the Committee is that the FEC has no reservations 
about requesting an increase of 22 percent to support full time 
staff while simultaneously asserting that computer 
modernization efforts must be slipped due to a lack of 
resources. It is unfortunate that FEC does not have the same 
level of commitment to modernization that it does toward 
expanding the size of its staff.
    Over the past several years, the Committee has made every 
effort to use its oversight authority to ensure that FEC's 
appropriations are sufficient to meet its statutory 
responsibilities. Nonetheless, it has become apparent to the 
Committee that, despite an increase of 65 percent over the past 
6 years, the Committee can not satisfy FEC's insatiable 
appetite for more resources. Given the criticism leveled on the 
Committee for it oversight of FEC operations, the Committee has 
come to the conclusion that it can not, in good conscience, 
commit to more resources for the FEC absent an objective 
opinion of FEC's current operations. In order to address this 
concern, the Committee has included a new provision requiring 
an independent audit of FEC's performance and management.

                  performance and technological audit

    The Committee has included additional funds of $750,000 for 
the specific purpose of an independent technological and 
performance audit and management review of FEC operations. 
These funds are made available, by transfer, to the General 
Accounting Office (GAO) and shall be available for the GAO to 
enter in to a contract with an independent entity for the 
purpose of conducting this audit. The Committee directs the GAO 
to consult with the House Appropriations Committee and the 
House Oversight Committee on the parameters of this audit and 
wishes to make it clear that the audit outline, scope, content 
and resultant reports are the purview of these Committees, not 
of the GAO.

                         computer modernization

    To date, the Committee has been satisfied with FEC's 
computer modernization efforts. However, both the fiscal year 
1997 supplemental and the fiscal year 1998 revised budget 
request were an extreme disappointment to the Committee in that 
these requests reflected a lack of commitment on the part of 
the FEC towards a modernized work environment. Unfortunately, 
additional resources for modernization were not requested in 
either of these documents.
    The Committee is also extremely concerned that the FEC has 
slipped several crucial modernization projects, notably 
Groupware Development and the Imaging Strategy. Both of these 
systems are foundational requirements for the FEC's Case 
Management System. The Committee was disappointed that the 
fiscal year 1997 supplemental did not include resources for the 
FEC to expedite the development and deployment of these 
systems. The Committee provides additional funds of $2.2 
million for these activities through section 514 of the bill.

                 appropriations justification material

    While the Committee appreciates the FEC's efforts to 
provide comprehensive information on workloads in its annual 
appropriations justification material, the Committee does not 
think it is necessary to kill a forest in order to provide this 
information. The Committee finds the number of documents 
submitted redundant. The Committee directs the FEC, in 
consultation with the House Committee on Appropriations, to 
revise and streamline its appropriations justification material 
in order to minimize the number of documents submitted and 
maximize the quality of information.

                   Federal Labor Relations Authority

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $21,588,000
Budget estimate, fiscal year 1998.....................        22,039,000
Recommended in the bill...............................        21,803,000
Bill compared with:...................................                  
    Appropriation, fiscal year 1997...................          +215,000
    Budget Estimate, fiscal year 1998.................          -236,000
                                                                        

                                mission

    The Federal Labor Relations Authority (FLRA) serves as a 
neutral party in the settlement of disputes that arise between 
unions, employees, and agencies on matters outlined in the 
Federal Service Labor Management Relations statute, decides 
major policy issues, prescribes regulations, and disseminates 
information appropriate to the needs of agencies, labor 
organizations, and the public. Establishment of the FLRA gives 
full recognition to the role of the Federal Government as an 
employer.

                             recommendation

    The Committee provides $21,803,000 for the FLRA, in the 
expectation that the agency will make the necessary adjustments 
for inflation and pay costs by finding economies.

                    General Services Administration

                         FEDERAL BUILDINGS FUND

                                                                        
                                                                        
                                                                        
Limitations on availability of revenue (not an                          
 appropriation):                                                        
    Limitation on availability, fiscal year 1997 to                     
 date.................................................    $5,555,544,000
    Limitation on availability, fiscal year 1998......     4,969,934,000
    Recommended in the bill...........................     4,835,934,000
Bill compared with:                                                     
    Availability, fiscal year 1997....................      -719,610,000
    Availability, fiscal year 1998....................      -134,000,000
                                                                        

                                mission

    The Federal Buildings Fund (FBF) finances the activities of 
the Public Buildings Service which provides space and services 
for Federal agencies in a relationship similar to that of 
landlord and tenant. The FBF, established in 1975, replaces 
direct appropriations by using income derived from rent 
assessments which approximate commercial rates for comparable 
space and services. Therefore, the Appropriations Committee 
makes funds available through a process of placing limitations 
on obligations from the FBF as a way of allocating funds for 
various FBF activities. The Committee will appropriate funds 
into the FBF as a way of covering the difference between the 
total revenues coming into the FBF and the total limitation on 
the expenditure from the FBF.
    In fiscal year 1998, the Administration assumes that 
$4,886,000,000 in rent revenues and miscellaneous income will 
be brought into the Fund; this compares to the fiscal year 1997 
estimate of $5,155,000,000. The Administration's proposal also 
includes an $84,000,000 appropriation into the FBF to cover the 
difference between the assumed $4,886,000,000 in revenues and a 
request that $4,969,934,000 of the income will be obligated.

                      construction and acquisition

                                                                        
                                                                        
                                                                        
Limitations on availability of revenue (not an                          
 appropriation):                                                        
    Limitation on availability, fiscal year 1997 to                     
 date.................................................      $657,711,000
    Limitation on availability, fiscal year 1998......          -- -- --
    Recommended in the bill...........................          -- -- --
Bill compared with:                                                     
    Availability, fiscal year 1997....................      -657,711,000
    Availability, fiscal year 1998....................          -- -- --
                                                                        

                             recommendation

    The fiscal year 1998 budget request does not include a 
request to use revenues coming in to the FBF for the 
construction or acquisition of new federal buildings. The 
Committee agrees with the proposal, the consequence of which is 
a one-year moratorium on new construction.
    Due to the inability of GSA to accurately calculate the 
amount of income coming into the FBF, the Administration and 
the Congress have, in past appropriations action, assumed a 
greater level of funds available for FBF activities than was 
actually collected. The poor assumptions on the part of the GSA 
lead the Congress to approve approximately $680,000,000 in 
construction and repair and alteration projects for which there 
was insufficient revenue to fund. Therefore the 
Administration's proposal in fiscal year 1998, is to let the 
FBF retain revenue without expenditure on new construction. The 
Committee agrees with this proposal.

                      design guide for courthouses

    The Committee has continued a provision (Section 404) which 
prohibits the Administration from transmitting a fiscal year 
1999 request for courthouse construction that: (1) does not 
meet the design guide standards for construction; and, (2) does 
not reflect the priorities of the Judicial Conference of the 
United States. The provision also requires the 1999 courthouse 
construction request be accompanied by a standardized courtroom 
utilization study. The Committee's intent is to ensure that the 
GSA and the Office of Management and Budget work with the 
Judicial Conference on the development and implementation of 
design guide standards, budget proposals, and the establishment 
of a standardized utilization study.

              pennsylvania avenue development corporation

    The Committee has included language requested by the 
Administration (Section 408) which retires the outstanding debt 
to the United States Treasury associated with assets 
transferred to GSA.

             chattanooga, tennessee courthouse requirements

    The historic Solomon Federal Building and Courthouse is a 
source of great pride to Chattanooga, Tennessee, and should be 
preserved and used. Problems identified to date center around 
minor maintenance issues and parking for jurors, witnesses, 
attorneys, and other users of the federal building and 
courthouse. In order to properly evaluate the various 
alternatives, the Committee requests GSA to develop an 11(b) 
study of federal space requirements in Chattanooga.
    The study shall include: a comprehensive survey of the 
current and future needs for courtroom and federal office space 
in Chattanooga; a survey and identification of existing space 
proximate to the Solomon Federal Building and Courthouse that 
meets any expansion needs identified, including space currently 
under the control of the Tennessee Valley Authority (TVA) that 
may be available due to TVA downsizing; a building evaluation 
survey of the Solomon Federal Building and Courthouse and 
development of a cost-effective plan to correct any 
deficiencies discovered; a survey of automobile parking and 
identification of the federal needs to properly serve the 
public; and, development of a plan providing alternatives to 
meeting the space needs that are timely and offer maximum 
benefits to the taxpayers.
    The study should also take into consideration the views and 
needs of the local officials to assure local views are fully 
considered. The study shall be submitted to the Committee no 
later than March 31, 1998.

                   u.s. courthouse, savannah, georgia

    The Savannah historic district is a unique architectural 
resource which requires careful guardianship. The GSA has made 
significant efforts to ensure that the construction of a new 
Courthouse Annex is compatible with the district's unique 
character. To facilitate the GSA in this regard, the Committee 
has included a provision (Sec. 409) directing the Administrator 
of General Services to ensure that the materials used for the 
project are fully compatible with the facade of the existing 
Savannah Federal Building--U.S. Courthouse. The Committee takes 
this action to ensure compatibility with the existing Savannah 
historic district and to ensure that the Annex will not 
endanger the National Landmark status of the Savannah historic 
district.

                 toledo, ohio, federal office building

    The Committee understands that the General Service 
Administration is considering the relocation of Federal space 
in Toledo, Ohio. The Committee wishes to acknowledge and 
encourage the cooperative effort being made by the City of 
Toledo, the Toledo-Lucas County Port Authority, in consultation 
with the GSA, to develop a financing agreement for the 
construction of a Federal complex that would house both federal 
executive agencies and Judiciary Branch courts and offices.

 Impact of Federal Building Security Requirements on Local Communities

    The Committee notes that local communities receive certain 
benefits when a Federal building is located in a downtown area. 
However, expanding Federal building security requirements may, 
in certain circumstances, negate this benefit due to an 
increasing financial burden for the community. Local 
communities such as Newark, New Jersey, have advised the 
Committee that Federal building security enhancements have 
resulted in significant cost and revenue loss.
    The Committee believes that GSA should provide local 
communities an assessment of any additional costs which will be 
incurred due to enhanced Federal building security 
requirements. Additionally, the GSA should report to the 
Committee by January 15, 1998 on the situation in Newark, New 
Jersey, as well as how enhanced Federal building security has 
impacted other local communities.

            federal office building, bakersfield, california

    The Committee includes a provision (Sec. 412) which 
requires that the General Services Administration dispose of 
the federal building, land and improvements at 800 Truxtun 
Avenue in Bakersfield, California through a process of 
competitive bidding as soon as possible, allowing transfer to a 
successful bidder promptly after federal occupancy of the 
building ends.

                        repairs and alterations

                                                                        
                                                                        
                                                                        
Limitations on availability of revenue (not an                          
 appropriation):                                                        
    Limitation on availability, fiscal year 1997 to                     
 date.................................................      $639,000,000
    Limitation on availability, fiscal year 1998......       434,000,000
    Recommended in the bill...........................       300,000,000
Bill compared with:                                                     
    Availability, fiscal year 1997....................      -339,000,000
    Availability, fiscal year 1998....................      -134,000,000
                                                                        


    Repairs and alterations of public buildings as well as 
associated design and construction services are funded under 
this activity.

                             recommendation

    The Committee recommends no funding for the 
chlorofluorocarbons program instead of $50,000,000 as requested 
and no funding for the ICC Connecting Wing project instead of 
$84,000,000 as requested.

                 brookhaven irs customer service center

    The Committee is concerned about the progress being made on 
the proposed renovation plans of the Internal Revenue Service 
(IRS) Service Center in Brookhaven, New York. Due to the 
inability of the IRS to finalize its plans for the Center, the 
project is at least three years behind schedule. Therefore, the 
Committee directs GSA provide quarterly reports to the 
Committee on the progress of the project to ensure that the 
construction schedule, put forth by the IRS, is maintained.
    In fiscal year 1997, Congress included language which 
extended the availability of $5,700,000 which was made 
available in fiscal year 1995, allowing these funds to be 
retained and used by GSA to initiate the construction phase of 
the modernization project for the Brookhaven Service Center. 
The Committee is distressed to learn that GSA has not yet 
utilized those funds in accordance with Congressional 
direction. Therefore, the Committee directs GSA to submit, 
within 60 days of enactment of this Act, provide a detailed 
accounting of these funds and a schedule for expending such 
funds by September 30, 1998.

                      installation of window film

    For the purpose of meeting minimum security standards as 
outlined by the Department of Justice and upgrading security in 
all government buildings, GSA should immediately initiate a 
program to ensure the application of security window film in 
all day care facilities located within buildings designated by 
the Department of Justice as Class IV and V.

                    installment acquisition payments

                                                                        
                                                                        
                                                                        
Limitations on availability of revenue (not an                          
 appropriation):                                                        
    Limitation on availability, fiscal year 1997 to                     
 date.................................................      $173,075,000
    Limitation on availability, fiscal year 1998......       142,542,000
    Recommended in the bill...........................       142,542,000
Bill compared with:                                                     
    Availability, fiscal year 1997....................       -30,533,000
    Availability, fiscal year 1998....................          -- -- --
                                                                        

    This activity funds the payments of principal, interest, 
and other required obligations for purchase contract facilities 
constructed under authority of the Public Buildings Amendment 
of 1972 as well as lease-purchase facilities which have been 
authorized by Congress since 1987.

                             recommendation

    The Committee recommends an obligational authority of 
$142,542,000 for the Installment Acquisition Payments account; 
the same amount as requested.

                            rental of space

                                                                        
                                                                        
                                                                        
Limitations on availability of revenue (not an                          
 appropriation):                                                        
    Limitation on availability, fiscal year 1997 to                     
 date.................................................    $2,343,795,000
    Limitation on availability, fiscal year 1998......     2,275,340,000
    Recommended in the bill...........................                 0
Bill compared with:                                                     
    Availability, fiscal year 1997....................       -68,455,000
    Availability, fiscal year 1998....................    -2,275,340,000
                                                                        

    This activity funds the recurring payments on commercial 
office space that GSA rents for various Federal agencies. GSA 
rents approximately 131 million square feet of space at an 
average cost of $17.75 per square foot.

                             recommendation

    The Committee recommends no obligational authority for the 
Rental of Space account. The Committee has funded this under a 
new activity called ``Building Operations, Leasing Activities, 
and Rental of Space'' which is detailed below.

                          building operations

                                                                        
                                                                        
                                                                        
Limitations on availability of revenue (not an                          
 appropriation):                                                        
    Limitation on availability, fiscal year 1997 to                     
 date.................................................    $1,552,651,000
    Limitation on availability, fiscal year 1998......    -1,331,789,000
    Recommended in the bill...........................                 0
Bill compared with:                                                     
    Availability, fiscal year 1997....................      -220,862,000
    Availability, fiscal year 1998....................    -1,331,789,000
                                                                        

    This activity provides for the operation of government-owed 
facilities and the related building services where the terms of 
the lease do not require the lessor to furnish such services. 
GSA provides building services in 241.3 million square feet of 
space in the 7,843 buildings under GSA's control. This activity 
also provides for the overall management and administration of 
all Public Building Service programs.

                             recommendation

    The Committee recommends no obligational level for building 
operations. The Committee has funded this under a new activity 
called ``Building Operations, Leasing Activities, and Rental of 
Space'' which is detailed below.

      building operations, leasing activities, and rental of space

                                                                        
                                                                        
                                                                        
Limitations on availability of revenue (not an                          
 appropriation):                                                        
    Limitation on availability, fiscal year 1997 to                     
 date.................................................                 0
    Limitation on availability, fiscal year 1998......                 0
    Recommended in the bill...........................    $3,607,129,000
Bill compared with:                                                     
    Availability, fiscal year 1997....................    +3,607,129,000
    Availability, fiscal year 1998....................    +3,607,129,000
                                                                        

    This activity provides for the operation of government-
owned facilities and the related building services where the 
terms of the lease do not require the lessor to furnish such 
services; provides for the overall management and 
administration of all Public Buildings Service programs; and 
the recurring payments on commercial office space that GSA 
rents for various Federal agencies.

                             recommendation

    The Committee has included $3,607,129,000 for building 
operations, leasing activities, and rental of space. This 
recommendation essentially merges two activities, Building 
Operations and Rental of Space, into a single activity. The 
Committee believes this will provide flexibility for the GSA to 
meet any future funding shortfalls without jeopardizing the 
amount set aside for ``Basic Repairs and Alterations.'' 
However, the Committee stresses that GSA must maintain 
accountability of these funds and to the extent that it 
executes a Buildings Operation or Rental of Space program 
different from that submitted with the President's fiscal year 
1998 budget request, GSA shall notify the Committee of the 
change.

       travel expenditures from the federal buildings fund (fbf)

    The Committee recognizes that the FBF is a reimbursable 
activity and concurs with such designation in the fiscal year 
1998 budget. Although Congress places a limitation on the 
amount of funds which may be obligated from the FBF, the 
Committee recognizes the essential reimbursable nature of FBF 
activities.
    As such, the Committee does not believe that the FBF should 
be treated differently than any other revolving fund for 
purposes of controlling travel expenditures. Consequently, the 
Committee agrees that the general provision carried under Title 
V of this Act which limits travel expenditures for appropriated 
fund accounts, should not apply to expenditures from the FBF.

                   u.s. courthouse, hammond, indiana

    The Committee understands that errors were made when the 
construction contract was awarded for the U.S. Courthouse in 
Hammond, Indiana, and the award has been successfully 
contested. This will require the GSA to reimburse certain legal 
expenses incurred by parties involved with the contract award. 
The estimated reimbursement ranges between $50,000 and 
$100,000.
    The Committee directs that the GSA reprogram funds as 
necessary to cover this reimbursement from funds available in 
the Buildings Operations program for the Office of the 
Commissioner of the Public Buildings Service, to the 
construction line item for the U.S. Courthouse in Hammond, 
Indiana. This reprogramming shall be completed within 10 days 
of enactment of this Act.

                    noaa building, boulder, colorado

    The Committee notes that unforeseen environmental concerns 
and other factors may have an effect on the schedule for 
completing the NOAA facility currently under construction in 
Boulder, CO. The Committee reiterates the importance of 
completing this project on schedule and in a manner which 
comports with the needs of both NOAA and the local community, 
and urges the General Services Administration to take 
appropriate steps to identify and meet the requirements for 
timely completion of the project.

                           white oak facility

    The Committee directs the General Services Administration 
to prepare a business plan and implementation strategy for 
reuse of the former White Oak Naval Surface Warfare Center in 
Maryland. The Committee also urges GSA to continue working with 
the Food and Drug Administration to identify potential sources 
of funds required to complete the agency's consolidation 
project in a timely manner.

                   requested and approved activities

                                                                        
                                                                        
                                                                        
Limitations on availability of revenue (not an                          
 appropriation):                                                        
    Limitation on availability, fiscal year 1997 to                     
 date.................................................          -- -- --
    Limitation on availability, fiscal year 1998......      $680,543,000
    Recommended in the bill...........................       680,543,000
Bill compared with:                                                     
    Availability, fiscal year 1997....................      +680,543,000
    Availability, fiscal year 1998....................          -- -- --
                                                                        

    The 1998 request includes $680,543,000 in obligational 
authority to fund projects and programs requested by the 
Administration and approved by Congress by means of 
obligational authority authorized in prior years.

                             recommendation

    The Committee recommends an obligational authority of 
$680,543,000 for the Previously Appropriated Activities; the 
amount requested.

       financial accountability within the federal buildings fund

    The GSA's Public Buildings Service (PBS) has acknowledged 
that, due to its inaccurate estimating of rental receipts 
coming into the Federal Buildings Fund (FBF), the balances in 
the FBF have not been adequate to support either the requested 
or the Congressionally approved Federal buildings construction, 
repair, and alteration programs. GSA estimates that due to 
inaccurate projections in 1996 and 1997, approximately $680 
million in obligations were requested and approved from the FBF 
without adequate rental income to sustain such obligations.
    This situation has caused the Administration to propose a 
virtual moratorium on all new construction as well as major 
repair and alteration projects. Rents charged in 1998 will be 
applied to building operations, security, payment of rents to 
commercial landlords, and other operational costs. To the 
extent that rental income exceeds these costs, this income will 
be used to ``replenish'' the FBF shortfall of $680 million.
    The Committee has agreed with this approach because it is 
necessary to enforce financial accountability within PBS. The 
Committee does not believe it can support additional funding 
until such time as GSA can guarantee that revenues coming into 
the FBF are sufficient to support its requested new 
obligational authority program.
    The Committee finds it alarming that PBS has not been able 
to accurately predict rental income into the FBF and did not 
make changes to future income based on actions taken in 1995 
and 1996. Blaming the situation on inadequate computer software 
does not excuse PBS from its responsibility to ensure a sound 
and achievable program. Additionally, it is inexcusable that 
both PBS and the Administration recommended new obligational 
authority in 1996 and 1997 for construction, repair, and 
alteration projects which exceeded the amounts available for 
obligation.
    The Committee directs the Administrator of GSA submit, no 
later than December 1, 1997, a report which outlines the total 
effect of underestimating rental income in fiscal years 1995, 
1996, 1997, and 1998, including any impact this situation may 
have on the fiscal year 1999 construction, repair, and 
alteration program. The report should also address what 
procedures PBS has implemented to ensure this situation is not 
repeated in future fiscal years. The Committee also directs the 
Administrator to submit quarterly reports on FBF income and 
obligations by program. These quarterly reports should include 
the estimated and actual amounts for both income and 
obligations.

                         POLICY AND OPERATIONS

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............      $110,173,000
Budget estimate, fiscal year 1998.....................       104,487,000
Recommended in the bill...............................       107,487,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        -2,686,000
    Budget Estimate, fiscal year 1998.................        +3,000,000
                                                                        

                                MISSION

    This appropriations account consolidates policy, oversight, 
and asset management functions associated with real and 
personal property, supplies, acquisition, and information 
technology into a single account separate from operations. The 
establishment of this appropriations account is part of the 
Administration's effort to transform the General Services 
Administration (GSA) into an organization responsible for 
policy and oversight, and to place greater reliance on the 
private sector, as appropriate. The creation of this office 
will increase accountability for results, encourage innovation, 
and enhance government-wide planning.

                             RECOMMENDATION

    The Committee recommends $107,487,000 for the Policy and 
Operations appropriation. This is $3,000,000 over the 1998 
request and $2,686,000 less than the 1997 level.

             pilot project in digital learning technologies

    The Committee has included $3,000,000 for the initiation of 
a pilot project in the development, demonstration, and 
continuous research emerging digital learning technologies. 
These funds would be used for the development of hardware and 
software capabilities, network infrastructure and other start-
up costs that will be the basis for the 21st Century 
Distributed Learning Environment in Education.

                           governor's island

    Governor's Island is currently a federal asset and the U.S. 
government bears the responsibility of providing for and 
funding the upkeep of the island until the Congressionally-
mandated sale date of 2002. In order to protect Governor's 
Island irreplaceable, historic landmarks from deterioration and 
to ensure the taxpayer investment made over the years, the 
Committee directs GSA and the U.S. Department of Transportation 
to develop an appropriate maintenance plan for this property 
and report back to Congress within 30 days of enactment of this 
act.

                             Goodwill Games

    The Committee encourages the General Services 
Administration to work with the communities of the 1998 
Goodwill Games in assisting with planning and logistical 
support where possible. Depending on the availability and/or 
surpluses, such support may include technical assistance, 
operational and communications equipment and support, and 
storage space to help in the preparation of these games.

                      OFFICE OF INSPECTOR GENERAL

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $33,863,000
Budget estimate, fiscal year 1998.....................        33,870,000
Recommended in the bill...............................        33,870,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................            +7,000
    Budget Estimate, fiscal year 1998.................         -- -- -- 
                                                                        

                                MISSION

    This appropriation provides agencywide audit and 
investigative functions to identify and correct management and 
administrative deficiencies within GSA which create conditions 
for existing or potential instances of fraud, waste and 
mismanagement. The audit function provides internal audit and 
contract audit services. Contract audits provide professional 
advice to GSA contracting officials on accounting and financial 
matters relative to the negotiation, award, administration, 
repricing, and settlement of contracts. Internal audits review 
and evaluate all facets of GSA operations and programs, test 
internal control systems, and develop information to improve 
operating efficiencies and enhance customer services. The 
investigative function provides for the detection and 
investigation of improper and illegal activities involving GSA 
programs, personnel, and operations.

                             RECOMMENDATION

    The Committee recommends $33,870,000 for the Inspector 
General appropriation. This is the amount of the 1998 request 
and $7,000 over the 1997 level.

           ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............        $2,180,000
Budget estimate, fiscal year 1998.....................         2,250,000
Recommended in the bill...............................         2,208,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................           +28,000
    Budget Estimate, fiscal year 1998.................           -42,000
                                                                        

                                MISSION

    This appropriation provides support consisting of pensions, 
office staffs, and related expenses for former Presidents 
Gerald R. Ford, Jimmy Carter, Ronald Reagan and George Bush and 
for pension and postal franking privileges for the widow of 
former President Lyndon B. Johnson. Also, this appropriation is 
authorized to provide funding for security and travel related 
expenses for each former President and the spouse of a former 
President pursuant to Section 531 of Public Law 103-329. The 
following table displays estimates for this account in the 
upcoming fiscal year.

       FY 1998 BUDGET, GENERAL SERVICES ADMINISTRATION,  ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS      
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                               FY 1998 request, former Presidents               
                                               -----------------------------------------------------------------
                                                   Ford      Carter     Reagan      Bush      Widows     Total  
----------------------------------------------------------------------------------------------------------------
Personnel compensation........................       .096       .096       .096       .096       .000       .384
Personnel benefits............................       .025       .005       .024       .041       .000       .095
Benefits for former personnel:                                                                                  
    Pensions..................................       .148       .148       .148       .148       .020       .612
Travel........................................       .050       .002       .026       .050       .000       .128
Rental payments to GSA........................       .075       .090       .270       .136       .000       .571
Communications, utilities and miscellaneous                                                                     
 charges:                                                                                                       
    Telephone.................................       .017       .030       .015       .024       .000       .086
    Postage...................................       .006       .019       .010       .012       .002       .049
Printing......................................       .006       .001       .014       .007       .000       .028
Other services................................       .024       .078       .075       .052       .000       .229
Supplies and materials........................       .008       .011       .016       .011       .000       .046
Equipment.....................................       .000       .016       .003       .003       .000       .022
                                               -----------------------------------------------------------------
      Total obligations.......................       .455       .496       .697       .580       .022      2.250
----------------------------------------------------------------------------------------------------------------

                             RECOMMENDATION

    The Committee recommends $2,208,000 for the Allowances and 
Office Staff for Former Presidents. This is $42,000 less than 
the 1998 request and $28,000 over the 1997 level. The 
Committee's recommended reduction should be applied to the 
``Other Services'' object class. The 1998 request for this 
object class is $229,000 while the 1997 current estimate of 
expenses for this object class is $75,000 and the 1996 actual 
expenditures were $51,000. It appears to the Committee that GSA 
simply overestimated the requirement for ``Other Services'' and 
the reduction of $42,000 will provide $187,000 in 1998 which 
should be sufficient to requirement.

          general provisions--general services administration

    Section 401. The Committee continues the provision 
providing for the crediting of amounts received as Federal 
agency rental payments to the Federal Buildings Funds.
    Sec. 402. The Committee continues the provision providing 
funds for the hire of motor vehicles.
    Sec. 403. The Committee continues the provision providing 
that funds made available for activities of the Federal 
Buildings Fund may be transferred between appropriations.
    Sec. 404. The Committee continues the provision limiting 
funding for courthouse construction which do not meet certain 
standards of a capital improvement plan.
    Sec. 405. The Committee continues the provision providing 
no funds may be used to increase the amount of occupiable 
square feet, provide cleaning services, security enhancements, 
or any other service usually provided, to any agency which does 
not pay the requested rate.
    Sec. 406. The Committee has included a new provision 
repealing Section 10 of Public Law 100-440 which sets a limit 
on the number of employees in the FPS.
    Sec. 407. The Committee has included a new provision which 
allows pilot information technology projects to be repaid from 
the Information Technology Fund.
    Sec. 408. The Committee continues the provision ensuring 
the materials used for the facade on the United States 
Courthouse Annex, Savannah, Georgia project are compatible with 
the existing building.
    Sec. 409. The Committee has included a new provision 
repealing Section 6 of Public Law 103-123.
    Sec. 410. The Committee has included a new provision 
requested by the Administration which retires the outstanding 
debt to the United States Treasury associated with Pennsylvania 
Avenue Development Corporation assets transferred to GSA.
    Sec. 411. The Committee has included a new provision which 
permits the GSA to pay small claims (up to $250,000) made 
against the Government. This language, which has previously 
been carried in the body of the Federal Buildings Fund 
appropriation language, provides the authority for GSA to use 
savings effected in other construction projects to pay 
legitimate claims made against the Government by contractors.
    Sec. 412. The Committee has included a provision which 
addresses the sale of government-owned property in Bakersfield, 
California.
    Sec. 413. The Committee has included a provision which 
repeals the effects of Section 1555 of the Federal Acquisition 
Streamlining Act.

           John F. Kennedy Assassination Records Review Board

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............        $2,150,000
Budget estimate, fiscal year 1998.....................         1,600,000
Recommended in the bill...............................         1,600,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          -550,000
    Budget Estimate, fiscal year 1998.................         -- -- -- 
                                                                        

                                MISSION

    The John F. Kennedy Assassination Records Review Board was 
established to oversee an effort of enormous scope within a 
three year period. The Board is charged with locating and 
securing all records which relate to the assassination of 
President Kennedy. These records include those of at least 
fifteen Federal agencies, previous official investigation, the 
Presidential libraries, and many small governmental and private 
repositories throughout the country.
    The purpose of the Board is to ensure the efficient, timely 
and full disclosure of these records to the American public. 
This effort is seen as perhaps the last opportunity to clear up 
the many lingering doubts and questions surrounding the 
assassination of President Kennedy.

                             RECOMMENDATION

    The Committee recommends an appropriation of $1,600,000 for 
the John F. Kennedy Assassination Record Review Board. This is 
the same as the budget request and $550,000 below the fiscal 
year 1997 funding level. This recommendation includes $100,000 
for termination related costs.

                           Termination Costs

    The JFK Assassination Records Review Board, as authorized 
by P.L. 105-25, is mandated to identify, secure and make 
available all records related to the assassination of President 
Kennedy. By law, the Board has until October 1, 1998 to fulfill 
its mandate. Due to several factors including a delay in the 
appointment of the Board members, difficulties associated with 
hiring staff members and the scale and complexity the Board has 
encountered, the Board requires one additional year to complete 
its operations. The Board anticipates full-scale operations 
through July 31, 1998.
    The Committee directs the Board to begin shutdown 
operations no later than August 1, 1998 and conclude 
termination proceedings no later than September 30, 1998 
including completion of the final report and no employees 
remaining on board as of October 1, 1998. The Committee assumes 
the availability of $500,000 unobligated balances, as requested 
by the Administration in fiscal year 1998. The Committee notes 
that the Board was funded in fiscal year 1997 on the assumption 
that the current fiscal year would be the final year of 
operations.

                     Merit Systems Protection Board

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $23,923,000
Budget estimate, fiscal year 1998.....................        24,450,000
Recommended in the bill...............................        25,290,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        +1,367,000
    Budget Estimate, fiscal year 1998.................          +840,000
                                                                        

                                MISSION

    The Merit Systems Protection Board performs the 
adjudicatory functions necessary to maintain the civil service 
merit system. These include hearing appeals on adverse actions, 
reduction-in-force actions, and retirement. The Board reports 
to the President on whether merit systems are sufficiently free 
from prohibited personnel practices to protect the public 
interest.

                             RECOMMENDATION

    The Merit Systems Protection Board requested $1,110,000 in 
addition to the $24,450,000 requested by the President. This 
was to fund $840,000 in personnel compensation, to avoid 
possible reductions in force (RIF) in MSPB administrative 
judges, as well as $270,000 for additional costs of ADP 
upgrades. The Committee wants to ensure that MSPB retains the 
administrative judges necessary to process its case load, and 
therefore provides funding to ensure that MSPB can fully meet 
its caseload. Improvements in managing the data processing 
requirements of MSPB, and in developing methods of alternative 
dispute resolution, should continue to be explored as far as 
practicable. Because fair and timely resolution of appeals is 
necessary, the Committee expects MSPB to consult with it before 
carrying out any major RIF or otherwise significantly slowing 
its appeals process.

  Morris K. Udall Scholarship In Excellence In National Environmental 
                           Policy Foundation

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............          -- -- --
Budget estimate, fiscal year 1998.....................        $2,000,000
Recommended in the bill...............................         2,000,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        +2,000,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                MISSION

    The Morris K. Udall Scholarship and Excellence in National 
Environmental Policy Foundation was authorized March 19, 1992, 
under Public Law 102-259.

                             RECOMMENDATION

    The Committee recommends $2,000,000 for the Federal Payment 
to the Morris K. Udall Scholarship in Excellence in Natural 
Environmental Policy Foundation. This is the amount requested 
and $2,000,000 over the 1997 level. This appropriation was 
requested for, and shall only be used for, increasing the 
number of scholarships provided to qualifying students.

              National Archives and Records Administration

                           OPERATING EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............      $196,963,000
Budget estimate, fiscal year 1998.....................       206,479,000
Recommended in the bill...............................       202,354,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        +5,391,000
    Budget Estimate, fiscal year 1998.................        -4,125,000
                                                                        

                                MISSION

    The National Archives and Records Administration provides 
for basic operations dealing with management of the 
Government's archives and records, operation of Presidential 
libraries, and for the review for declassification of 
classified security information.

                             recommendation

    The Committee recommends $202,354,000 for the National 
Archives and Records Administration appropriation; a reduction 
of $4,125,000 from the requested level.

 MANAGEMENT OF THE NATIONAL ARCHIVES AND RECORDS ADMINISTRATION (NARA)

    The National Archives and Records Administration has a 
vital role in protecting our national historical records. While 
the importance of this mission cannot be overstated, the 
Committee is concerned that NARA often forgoes cost-effective 
management in order to maintain the status quo of retaining all 
documents in paper form. While the Committee understands the 
importance of paper documents, it is concerned that the NARA is 
showing reluctance in adapting to more modern, and less costly, 
alternatives to maintaining documents in paper form. The 
Committee would urge the NARA to continue to explore ways in 
which less costly storage can be obtained.
    The Committee would also like to note that it appreciates 
the NARA's efforts in developing a strategic plan. However, 
while the plan was informative, it did not go far enough in 
developing milestones, conforming to new GPRA guidelines, and 
providing specifics about NARA's future. The Committee would 
urge NARA to continue to develop goals for solving looming 
problems, such as storage space, maintaining electronic records 
and developing plans for housing federal records.

                          PRESERVATION FUNDING

    The fiscal year 1998 NARA Budget Justifications include 
approximately $2 million dollars for preservation. The 
Committee feels that preservation should be one of, if not the, 
top priority of the NARA. With this in mind, the Committee 
would urge the NARA to develop a plan on five-year funding for 
preservation. The Committee was not able to justify the 
increase this year but would like to be able to consider it in 
fiscal year 1999. The Committee would urge the NARA to use 
$552,000 in the increased funding to provide cold storage 
preservation for the most fragile nontextual records until a 
long term plan is developed. The Committee directs the 
Archivist to submit a report, with the President's budget, on 
these options.

                         Classification Reform

    The Committee directs the Archivist of the United States to 
submit to the Committee by Febrary 1, 1998, an update of agency 
compliance with the declassification requirements of Section 
3.4 of Executive Order 12958, ``Classified National Security 
Information,'' issued by the President on April 17, 1995. The 
Committee notes that section 5.6(c)(8) of that executive order 
requires agencies to account for the costs of their security 
classification, including the costs incurred by contractors in 
performing classified work for the Government. The Committee 
directs the Archivist to submit by May 1, 1998, an agency-by-
agency report on fiscal year 1997 security classification costs 
(including contractor costs) and an estimate of fiscal year 
1998 security classification costs to the House Committee on 
Appropriations.
    The Committee further directs the Office of Management and 
Budget (OMB) to take steps to ensure agency compliance with 
sections 1.2, 1.3, 1.6, 1.8, and 1.9 of Executive Order 12598 
and to submit by February 1, 1998, an agency-by-agency report 
on such compliance. The OMB shall include in the report, 
information on action taken by each agency to minimize the 
amount of classified material produced, consistent with the 
responsibilities and operational necessities of the agency.

                        repairs and restoration

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $16,229,000
Budget estimate, fiscal year 1998.....................         6,650,000
Recommended in the bill...............................         6,650,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        -9,579,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                mission

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

                             recommendation

    The Committee recommends $10,650,000 for Repairs and 
Restoration. This is $4,000,000 above the President's request 
and $5,579,000 below the fiscal year 1997 enacted amount.

                         Presidential Libraries

    The Committee has included $4,000,000 for continued 
renovation of the Roosevelt Presidential Library. The Committee 
understands that there are additional requirements at the 
Truman Presidential Library and the Johnson Presidential 
Library which could possible be addressed in the future.

        national historical publications and records commission

                             grants program

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............        $5,000,000
Budget estimate, fiscal year 1998.....................         4,000,000
Recommended in the bill...............................         5,500,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          +500,000
    Budget Estimate, fiscal year 1998.................        +1,500,000
                                                                        

                                mission

    This program provides for grants funding that the 
Commission makes, nationwide, to preserve and publish records 
that document American history. Administered within the 
National Archives, which preserves Federal records, the NHPRC 
helps state, local, and private institutions preserve non-
Federal records, helps publish the papers of major figures in 
American history, and helps archivists and records managers 
improve their techniques, training, and ability to serve a 
range of information users.

                             recommendation

    The Committee recommends $5,500,000 for the National 
Historical Publications and Records Commission, an increase of 
$1,500,000 above the President's request and $500,000 above the 
amount appropriated in fiscal year 1997.

        national historical publications and records commission

    This important program provides funding that the Commission 
makes available nationwide, to preserve and publish records 
that document American history. Administered within the 
National Archives, which preserves Federal records, the NHPRC 
helps state, local, and private institutions preserve non-
Federal records, publish the papers of major figures in 
American history, and assists archivists and records managers 
improve their techniques, training, and ability to serve a 
range of information users.
    Recently, there has erupted a controversy over whether or 
not to emphasize prioritizing grants to ``Founding Father's'' 
projects, or preserving electronic records. The Committee has 
provided sufficient funding to ensure the priorities of NHPRC 
are met. Within the funds provided, the NHPRC should maintain 
its historical funding prioritization of ``Founding Fathers'' 
and documentary editing.

                      Office of Government Ethics

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............        $8,078,000
Budget estimate, fiscal year 1998.....................         8,265,000
Recommended in the bill...............................         8,078,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          -- -- --
    Budget Estimate, fiscal year 1998.................          -187,000
                                                                        

                                mission

    The Office of Government Ethics (OGE) provides overall 
direction of executive branch policies designed to prevent 
conflicts of interest and insure high ethical standards. The 
OGE discharges its responsibilities to preserve and promote 
public confidence in the integrity of executive branch 
officials by developing rules and regulations pertaining to 
conflicts of interest, post employment restrictions, standards 
of conduct, and public and confidential financial disclosure in 
the executive branch; by monitoring compliance with the public 
and confidential financial disclosure requirements of the 
Ethics in Government Act of 1978 and the Ethics Reform Act of 
1989, to determine possible violations of applicable laws or 
regulations and recommending appropriate corrective action; by 
consulting with and assisting various officials in evaluating 
the effectiveness of applicable laws and the resolution of 
individual problems; by preparing formal advisory opinions, 
informal letter opinions, policy memoranda, and Federal 
Register entries on how to interpret and comply with the 
requirements on conflicts of interest, post employment, 
standards of conduct, and financial disclosure; and by issuing 
and amending regulations implementing the procurement integrity 
provisions relating to negotiating for employment, post 
employment, and gratuities in the Office of Federal Procurement 
Policy Act Amendments of 1988, P.L. 100-679.

                             recommendation

    The Committee provides funding for OGE at the fiscal year 
1997 level of $8,078,000.

                     Office of Personnel Management

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $87,286,000
Budget estimate, fiscal year 1998.....................        85,350,000
Recommended in the bill...............................        85,350,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        -1,936,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                mission

    The Office of Personnel Management (OPM) is the Government 
agency responsible for management of Federal human resource 
policy and oversight of the merit civil service system. 
Although individual agencies are increasingly responsible for 
personnel operations, OPM provides a Governmentwide policy 
framework for personnel matters, advises and assists agencies 
(often on a reimbursable basis), and ensures that agency 
operations are consistent with requirements of law, with 
emphasis on such issues as veterans preference. OPM oversees 
examining of applicants for employment, issues regulations and 
policies on hiring, classification and pay, training, 
investigations, and many other aspects of personnel management, 
and operates a reimbursable training program for the 
Government's managers and executives. OPM is also responsible 
for administering the retirement, health benefits and life 
insurance programs affecting most Federal employees, retired 
Federal employees, and their survivors.

                             recommendation

    The Committee provides the level of funding requested by 
the President, $85,350,000.

                             generic drugs

    The Federal government spends approximately $11 billion as 
its share of the health premiums for current and retired 
Federal employees. Payments for prescription drugs under the 
Federal Employees Health Benefit Program (FEHBP) exceed $2 
billion annually and are growing. The Committee understands 
that nearly one-third of all prescriptions under the FEHBP are 
for generic drugs and that total costs for prescriptions would 
drop by about 15 percent--nearly $300 million a year--if half 
of all prescriptions were for generic drugs. The Committee 
again urges the Office of Personnel Management (OPM) to take 
steps to encourage the use of generic drugs in the FEHBP and to 
report on the steps it has taken pursuant to the direction 
given in the fiscal year 1997 conference report. Further, the 
Committee is disappointed at the apparent lack of regard for 
the direction given in the fiscal year 1997 conference report 
and directs OPM report on its efforts in this area by February 
1, 1998.

                         orthodonture benefits

    The Committee notes that dental and orthodonture benefits 
have been frozen since 1991 for fee-for-service federal 
employee health benefits plans. As a result, some insurers are 
refusing to cover orthodonture benefits for cleft lip and 
palate children that would appear to be medically necessary to 
correct a cleft birth defect. The Committee directs OPM to 
review the FEHBP coverage of cleft lip and palate children and 
report to the Committee on whether the freeze on orthodonture 
benefits is resulting in the exclusion of cleft birth defect 
children from coverage that is medically necessary.

                    professional liability insurance

    Prior legislation has provided federal agencies with the 
authority to fund up to \1/2\ of the professional liability 
insurance for certain law enforcement personnel. The Committee 
is concerned that there may exist a similar need to carry such 
insurance by federal non-law enforcement employees.
    Therefore, the Committee directs the Office of Personnel 
Management to study the need of federal employees to carry 
professional liability insurance, identify those employees who 
require such insurance, the costs associated with providing 
federal agencies with the authority to fund up to \1/2\ of such 
insurance premium, and report its findings to the Committee no 
later than May 1, 1998.

                          use of official time

    The Committee is aware of concerns about the use of 
``official time'' within the federal government. In order to 
ascertain both the extent and nature of the use of ``official 
time'', the Committee directs the Office of Personnel 
Management (OPM), in consultation with the Office of Management 
and Budget, to report to the Committee on Appropriations on the 
use of official time by Federal agencies. The Committee 
anticipates that it will be necessary for OPM to issue 
guidelines to agencies in the compilation of information on 
official time and further expects that this information will 
include the following as it relates to labor management 
relations and union activities.
    (a) a description of both the benefits and disadvantages of 
official time;
    (b) a list of specific activities undertaken by federal 
employees;
    (c) for the first six months of fiscal year 1998:
          (1) Total hours of official time that employees spent 
        on such activities;
          (2) The number of employees who used official time 
        for such activities;
          (3) The number of employees who spent 100 percent of 
        their official time for such activities, the number who 
        spent over 75 percent, and the number who spent over 50 
        percent.
          (4) The dollar value of official time, in terms of 
        employee compensation, spent on such activities; and
          (5) The dollar value of federally funded office 
        space, equipment, telephone use and supplies provided 
        to unions.
    The Committee directs that this report be submitted to the 
Committee on Appropriations no later than October 1, 1998.

                      OFFICE OF INSPECTOR GENERAL

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............          $960,000
Budget estimate, fiscal year 1998.....................           960,000
Recommended in the bill...............................           960,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          -- -- --
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                MISSION

    This appropriation provides agencywide audit, 
investigative, evaluation, and inspection functions to identify 
management and administrative deficiencies which may create 
conditions for fraud, waste and mismanagement. The audits 
function provides internal agency audit, insurance audit, and 
contract audit services. Contract audits provide professional 
advice to agency contracting officials on accounting and 
financial matters regarding the negotiation, award, 
administration, repricing, and settlement of contracts. 
Internal audits review and evaluate all facets of agency 
operations, including financial statements. Evaluation and 
inspection services provide detailed technical evaluations of 
agency operations. Insurance audits review the operations of 
health and life insurance carriers, health care providers, and 
insurance subscribers. The investigative function provides for 
the detection and investigation of improper and illegal 
activities involving programs, personnel, and operations.

                             RECOMMENDATION

    The Committee provides funding at the President's request 
level of $960,000.

      GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEES HEALTH BENEFITS

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............    $4,059,000,000
Budget estimate, fiscal year 1998.....................     4,338,000,000
Recommended in the bill...............................     4,338,000,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................       279,000,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                MISSION

    This appropriation covers: (1) the Government's share of 
the cost of health insurance for 1,771,000 annuitants as 
defined in sections 8901 and 8906 of title 5, United States 
Code; (2) the Government's share of the cost of health 
insurance for about 12,000 annuitants (who were retired when 
the Federal employees health benefits law became effective), as 
defined in the Retired Federal Employees Health Benefits Act of 
1960; and (3) the government's contribution for payment of 
administrative expenses incurred by the Office of Personnel 
Management in administration of the act.

      GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEES LIFE INSURANCE

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $33,000,000
Budget estimate, fiscal year 1998.....................        32,000,000
Recommended in the bill...............................        32,000,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................        -1,000,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                MISSION

    This appropriation finances the Government's share of 
premiums, which is one-third the cost, for basic life insurance 
for annuitants retiring after December 31, 1989.

        PAYMENT TO CIVIL SERVICE RETIREMENT AND DISABILITY FUND

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............    $7,989,000,000
Budget estimate, fiscal year 1998.....................     8,336,000,000
Recommended in the bill...............................     8,336,000,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................      +347,000,000
    Budget Estimate, fiscal year 1998.................          -- -- --
                                                                        

                                MISSION

    This appropriation provides for payment of annuities, 
including the payment of annuities under special acts for 
persons employed on the construction of the Panama Canal or 
their widows and widows of employees of the Lighthouse Service; 
payment of government share of retirement costs financing the 
current year's costs of the unfunded liability resulting from 
any statute authorizing new or liberalized benefits, extension 
of retirement coverage, or pay increases; transfers for 
interest on unfunded liability and payment of military service 
annuities covering interest on the unfunded liability and 
annuity disbursements for military service; payments for spouse 
equity providing survivor annuities to eligible former spouses 
of annuitants who died between September 1978 and May 1986 and 
did not elect survivor coverage, and; transfers for payment of 
FERS supplemental liability covering annual amortization 
payments financing supplemental liabilities for FERS.

                       Office of Special Counsel

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............        $8,116,000
Budget estimate, fiscal year 1998.....................         8,450,000
Recommended in the bill...............................         8,116,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          -- -- --
    Budget Estimate, fiscal year 1998.................          -334,000
                                                                        

                                MISSION

    The Office of Special Counsel: (1) investigates Federal 
employee allegations of prohibited personnel practices 
(including reprisal for whistleblowing) and, when appropriate, 
prosecutes before the Merit Systems Protection Board; (2) 
provides a channel for whistleblowing by Federal employees; and 
(3) enforces the Hatch Act. The Office may transmit 
whistleblower allegations to the agency head concerned and 
require an agency investigation and a report to the Congress 
and the President when appropriate.

                             RECOMMENDATION

    The Committee provides funding at the fiscal year 1997 
level of $8,116,000.

                        United States Tax Court

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1997 to date...............       $33,781,000
Budget estimate, fiscal year 1998.....................        34,293,000
Recommended in the bill...............................        33,921,000
Bill compared with:                                                     
    Appropriation, fiscal year 1997...................          +140,000
    Budget Estimate, fiscal year 1998.................          -372,000
                                                                        

                                MISSION

    The bulk of the Court's work is the trial and adjudication 
of controversies involving deficiencies in income, estate, and 
gift taxes. The Court also has jurisdiction to redetermine 
deficiencies in certain excise taxes; to issue declaratory 
judgments in the areas of qualification of retirement plans, 
exemption of charitable organizations and the status of certain 
governmental obligations; and to decide certain cases involving 
disclosure of tax information by the Commissioner of Internal 
Revenue.

                             recommendation

    The Committee recommends $33,921,000; $372,000 less than 
the request and $140,000 more than the 1997 level. This 
recommendation includes $273,000 for inflationary increases and 
assumes $133,000 in cost reductions identified by the Tax 
Court.

                   review of staffing and performance

    The Committee is concerned that the U.S. Tax Court has not 
had the opportunity to review its current staffing requirements 
or to develop performance measures similar to those used by 
Federal agencies to justify budget requests.
    The current staffing requirements for the U.S. Tax Court 
are 2 law clerks and 1 administrative assistant per Judge. This 
requirement is based on historical requests and may not reflect 
the current requirement. Additionally, the U.S. Tax Court has 
claimed that while cases are fewer they are more complex and 
lead to a requirement for additional funding and staffing. 
However, the U.S. Tax Court has not developed measures of 
performance to determine the impact these changes have had on 
funding and staffing.
    Therefore, the Committee directs the U.S. Tax Court to 
submit with the 1999 budget request an in depth analysis of its 
staffing needs and a performance measurement plan that meets 
the requirements of the Government Performance and Results Act.

                      TITLE V--GENERAL PROVISIONS

                                This Act

    Section 501. The Committee continues the provision limiting 
the expenditure of funds to the current year unless expressly 
provided in this Act.
    Sec. 502. The Committee continues the provision limiting 
the expenditure of funds for consulting services under certain 
conditions.
    Sec. 503. The Committee continues the provision prohibiting 
the use of funds to engage in activities which would prohibit 
the enforcement of section 307 of the 1930 Tariff Act.
    Sec. 504. The Committee continues and modifies by making 
permanent the provision prohibiting the transfer of control 
over the Federal Law Enforcement Training Center.
    Sec. 505. The Committee continues the provision prohibiting 
the prevention of certain United States Postal Service 
employees from contacting their member of Congress.
    Sec. 506. The Committee continues and modifies by making 
permanent the provision authorizing donations of supplies and 
equipment to the Federal Executive Institute.
    Sec. 507. The Committee continues the provision concerning 
employment rights of Federal employees who return to their 
civilian jobs after assignment with the Armed Forces.
    Sec. 508. The Committee continues the provision concerning 
compliance with the Buy American Act.
    Sec. 509. The Committee continues the provision concerning 
prohibition of contracts which use certain goods not made in 
America.
    Sec. 510. The Committee continues the provision concerning 
prohibition of contracts.
    Sec. 511. The Committee continues the provision providing 
that fifty percent of unobligated balances may remain available 
for certain purposes.
    Sec. 512. The Committee continues a provision which 
provides a restriction on the use of funds for the White House 
to request official background reports without the written 
consent of the individual who is the subject of the report.
    Sec. 513. The Committee continues a provision mandating 
that federal workers paid as part of this Act may not receive 
weekend or night differential pay for hours in which they did 
not work.
    Sec. 514. The Committee has included a new provision 
increasing the amounts provided to the FEC for internal 
modernization by $4,200,000 and making these funds contingent 
upon satisfying the conditions set forth in Section 515.
    Sec. 515. The Committee has included a new provision making 
the funds available in Section 514 contingent upon the filling 
of all vacancies in the membership of the FEC Commission as of 
July 15, 1997 and the enactment of legislation prohibiting the 
reappointment of members of the Commission.
    Sec. 516. The Committee includes a provision which 
prohibits the use of funds provided in this Act for the 
coverage of abortions.
    Sec. 517. The Committee includes a provision which provides 
that Section 516 will not apply when the life of the mother 
would be endangered, or that the pregnancy is the result of an 
act of rape or incest.
    Sec. 518. Certain U.S. origin historic firearms imports. 
This section concerns the importation of historic firearms, 
more specifically ``curios or relics''. Congress first enacted 
a statute, 18 U.S.C. Sec. 925(e), specifically allowing curio 
or relic imports. At the time of enactment, however, the 
statute only benefited foreign collectibles, since other acts 
interfered with U.S. origin curio or relics from returning to 
the United States. In 1988, Congress remedied the inconsistency 
by making provision for the importation of certain U.S. origin 
ammunition and curio or relic firearms and parts into the 
United States at 22 U.S.C. Sec. 2778(b)(1)(B). The Treasury 
Department issued implementation regulations after the passage 
of both laws. The Department of State, which in certain cases 
consults with the Treasury Department on firearms imports, 
avoided implementation of the 1988 law by refusing to consent 
to U.S. origin import applications, ostensibly on the basis of 
foreign policy interests. This section makes the Congressional 
intent of allowing these imports even clearer. It does so by 
prohibiting any part of the government from using appropriated 
funds to deny an otherwise qualified application for the 
importation of U.S. origin ammunition and curio or relic 
firearms and parts from nations that are not proscribed 
pursuant to 27 C.F.R. Sec. 47.52. Proscribed nations are those 
that include countries such as North Korea and Cuba.
    Sec. 519. The Committee has included a new provision 
prohibiting the use of funds in this or any other Act to expand 
the Global Package Link Service offered by the Postal Service.

              TITLE VI--GOVERNMENTWIDE GENERAL PROVISIONS

                Departments, Agencies, and Corporations

    Section 601. The Committee continues the provision 
authorizing agencies to pay travel costs of the families of 
Federal employees to foreign duty to return to the United 
States in the event of a death or a life threatening illness of 
the employee.
    Sec. 602. The Committee continues the provision requiring 
agencies to administer a policy designed to ensure that all of 
its workplaces are free from the illegal use of controlled 
substances.
    Sec. 603. The Committee continues the provision authorizing 
reimbursement of travel, transportation, and subsistence 
expenses incurred for training classes, conferences, or other 
meetings in connection with the provision of child care 
services to Federal employees.
    Sec. 604. The Committee continues the provision regarding 
price limitation on vehicles to be purchases by the Federal 
Government.
    Sec. 605. The Committee continues the provision allowing 
funds made available to agencies for travel to also be used for 
quarters allowances and cost-of-living allowances.
    Sec. 606. The Committee continues the provision prohibiting 
the Government, with certain specified exceptions, from 
employing non-U.S. citizens whose posts of duty would be in the 
continental U.S.
    Sec. 607. The Committee continues the provision ensuring 
that agencies will have authority to pay GSA bills for space 
renovation and other services.
    Sec. 608. The Committee continues the provision allowing 
agencies to finance the costs of recycling and waste prevention 
programs with proceeds from the sale of materials recovered 
through such programs.
    Sec. 609. The Committee continues the provision providing 
that funds may be used to pay rent and other service costs in 
the District of Columbia.
    Sec. 610. The Committee continues the provision prohibiting 
certain payments to those nominees who have been rejected by 
the U.S. Senate.
    Sec. 611. The Committee continues the provision precluding 
the interagency financing of groups absent prior interagency 
and specific statutory approval.
    Sec. 612. The Committee continues the provision authorizing 
the Postal Service to employ guards and give them the same 
special police powers as GSA guards.
    Sec. 613. The Committee continues the provision prohibiting 
the use of funds for enforcing regulations disapproved in 
accordance with the applicable law of the U.S.
    Sec. 614. The Committee continues the provision limiting 
the pay increases of certain prevailing rate increases.
    Sec. 615. The Committee continues the provision limiting 
the amount of funds that can be used for redecoration of 
offices under certain circumstances.
    Sec. 616. The Committee continues the provision prohibiting 
the expenditure of funds for the acquisition of additional law 
enforcement training facilities.
    Sec. 617. The Committee continues the provision to allow 
for interagency funding of national security and emergency 
telecommunications initiatives.
    Sec. 618. The Committee continues the provision requiring 
agencies to certify that a Schedule C appointment was not 
created solely or primarily to detail the employee to the White 
House.
    Sec. 619. The Committee continues the provision requiring 
agencies to administer a policy designed to ensure that all of 
its workplaces are free from discrimination and sexual 
harassment.
    Sec. 620. The Committee continues the provision prohibiting 
the use of funds for travel expenses not directly related to 
official governmental duties.
    Sec. 621. The Committee continues the provision requiring 
the President to certify that persons responsible for 
administering the Drug Free Workplace Program are not 
themselves the subject of random drug testing.
    Sec. 622. The Committee continues the provision prohibiting 
Federal training not directly related to the performance of 
official duties.
    Sec. 623. The Committee continues the provision prohibiting 
the expenditure of funds for implementation of agreements in 
nondisclosure policies unless certain provisions are included.
    Sec. 624. The Committee continues the provision prohibiting 
lobbying by executive agency personnel.
    Sec. 625. The Committee continues the provision that 
requires OMB to do an accounting statement and report on the 
cumulative costs and benefits of Federal regulatory programs.
    Sec. 626. The Committee has included a new provision 
prohibiting any federal agency to provide an employee's home 
address to any labor organization unless authorized.
    Sec. 627. The Committee continues the provision that 
authorizes the Secretary of the Treasury to establish standards 
to explosives detection canines.
    Sec. 628. The Committee continues language prohibiting 
funds made available in this Act or any other Act from being 
used to provide any non-public information outside of the 
Federal government without approval of the House and Senate 
Committees.
    Sec. 629. The Committee continues the provision allowing 
interagency financing for the National Bioethics Advisory 
Commission.
    Sec. 630. The Committee has included a new provision, 
previously carried under Title V, which prohibits the use of 
funds for certain propaganda purposes.
    Sec. 631. The Committee has included a new provision 
prohibiting the use of funds for the purchase of any 
information technology that is not year 2000 compliant unless 
the agency's CIO determines that non-compliance purchases are 
necessary for the operation of the agency or the acquisition is 
required by a signed contract in effect before enactment of 
this Act.
    Sec. 632. The Committee has included a new provision 
directing USTR, Treasury and Commerce to consult with Mexico 
and Canada regarding personal allowance parity among NAFTA 
parties.

    Appropriations Can Be Used Only for the Purposes for Which Made

    Title 31 of the United States Code makes clear that 
appropriations can be used only for the purposes for which they 
were appropriated as follows:
    Section 1301. Application.
    (a) Appropriations shall be applied only to the objects for 
which the appropriations were made except as otherwise provided 
by law.

                      Compliance With House Rules

   DEFINITION OF ``PROGRAM PROJECT AND ACTIVITY'' AS PROVIDED FOR BY 
 PUBLIC LAW 99-177, THE BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL 
                              ACT OF 1985.

    During fiscal year 1998, for purposes of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (Public Law 
99-177), the following information provides the definition of 
the term ``program, project and activity'' for departments and 
agencies under the jurisdiction of the Treasury, Postal Service 
and General Government Subcommittee. The term ``program, 
project and activity'' shall include the most specific level of 
budget items identified in the Treasury, Postal Service, and 
General Government Appropriations Act, 1987, as passed the 
House including the House Report which accompanies that Act. 
(Under the above definition, the Federal Buildings Fund, the 
Bureau of Engraving and Printing Fund, the U.S. Mint, and other 
intergovernmental funds are exempt under section 255(g)(1) of 
Public Law 99-177).

                           Transfer of Funds

    Pursuant to clause 1(b), rule X of the House of 
Representatives, the following table is submitted describing 
the transfer of funds provided in the accompanying bill.
    The table shows, by title, department and agency, the 
appropriations affected by such transfers.

            APPROPRIATION TRANSFERS RECOMMENDED IN THE BILL

                                 APPROPRIATION TRANSFERS RECOMMENDED IN THE BILL                                
----------------------------------------------------------------------------------------------------------------
                                                                 Account from which transfer is                 
    Account to which transfer is to be made         Amount                 to be made                 Amount    
----------------------------------------------------------------------------------------------------------------
State and local entities......................      71,000,000  Federal Drug Programs--HIDTA....      71,000,000
Federal departments...........................     155,000,000  Special Forfeiture Fund.........     155,000,000
Personnel Management..........................      91,236,000  Trust Fund of the Office of           91,236,000
                                                                 Personnel Management.                          
Inspector General, OPM........................       8,645,000  Appropriation Trust Funds.......       8,645,000
Merit Systems Protection Board................       2,430,000  Civil Service Retirement and           2,430,000
                                                                 Disability Fund.                               
U.S. Customs Service..........................      11,500,000  Automation Enhancement..........      11,500,000
Departmental Offices..........................      14,389,000  Automation Enhancement..........      14,389,000
Federal Election Commission...................         750,000  General Accounting Office.......         750,000
Federal Election Commission...................         300,000  Government Printing Office......         300,000
----------------------------------------------------------------------------------------------------------------

                          Rescission of Funds

    In compliance with clause 1(b) of rule X of the House of 
Representatives, the Committee reports that it recommends 
rescissions in the bill, as follows:

                  rescissions recommended in the bill

        Department or Activity        Amounts recommended for rescission
Department of the Treasury:
    Internal Revenue Service, Tax Law Enforcement 
      (Fiscal year 1997)................................    -$10,000,000
        Total Rescissions...............................      10,000,000

                        Constitutional Authority

    Clause 2(l)(4) of rule XI of the Rules of the House of 
Representatives states that:
    ``Each report of a committee on a bill or joint resolution 
of a public character, shall include a statement citing the 
specific powers granted to the Congress in the Constitution to 
enact the law proposed by the bill or joint resolution.''
    The Committee on Appropriations bases its authority to 
report this legislation from Clause 7 of Section 9 of Article I 
of the Constitution of the United States of America which 
states:
    ``No money shall be drawn from the Treasury but in 
consequence of Appropriations made by law * * *''
    Appropriations contained in this Act are made pursuant to 
this specific power granted by the Constitution.

            Compliance With Rule XIII, Cl. 3 (Ramseyer Rule)

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

              TREASURY DEPARTMENT APPROPRIATIONS ACT, 1997

                          (Public Law 104-208)

          * * * * * * *

                  TITLE I--DEPARTMENT OF THE TREASURY

             General Provisions--Department of the Treasury

          * * * * * * *
    [Sec. 117. Of the funds available to the Internal Revenue 
Service, $13,000,000 shall be made available to continue the 
private sector debt collection program which was initiated in 
fiscal year 1996 and $13,000,000 shall be transferred to the 
Departmental Offices appropriation to initiative a new private 
sector debt collection program; Provided, That the transfer 
provided herein shall be in addition to any other transfer 
authority contained in this Act.]
          * * * * * * *

                        Internal Revenue Service

          * * * * * * *

                          information systems

  For necessary expenses for data processing and 
telecommunications support for Internal Revenue Service 
activities, including tax systems modernization and operational 
information systems; the hire of passenger motor vehicles (31 
U.S.C. 1343(b)); and services as authorized by 5 U.S.C. 3109, 
at such rates as may be determined by the Commissioner, 
$1,323,075,000, [of which no less than $130,075,000 shall be 
available for Tax Systems Modernization (TSM) development and 
deployment] which shall be available until September 30, 1999, 
and of which no less than $206,200,000 shall be available for 
TSM Operational Systems: Provided, That none of the funds made 
available for TSM Operational Systems shall be available after 
July 31, 1997, unless the Department of the Treasury has 
prepared a Request for Proposal which could be used as a base 
for a solicitation of a contract with an alternative or new 
Prime Contractor to manage, integrate, test and implement the 
TSM program: Provided further, That all activities associated 
with the development of a request for proposal, contract 
solicitation, and contract award for private sector assistance 
on TSM (both operational systems and development and deployment 
systems), beyond private sector assistance which is currently 
under contract, shall be conducted by the Department of the 
Treasury's Modernization Management Board: Provided further, 
That if the Internal Revenue Service determines that it is 
unable to meet deadlines established herein, the Secretary of 
the Treasury shall notify the Committees on Appropriations of 
the House and the Senate of the delay: Provided further, That 
the Internal Revenue Service shall submit, by February 1, 1997, 
a timetable for implementing, by October 1, 1997, 
recommendations made by the General Accounting Office in its 
July 1995 report, entitled: ``Tax Systems Modernization: 
Management and Technical Weaknesses Must Be Corrected If 
Modernization Is To Succeed'': Provided further, That the 
Internal Revenue Service shall submit, by December 1, 1996, a 
schedule to transfer, not later than July 31, 1997, a majority 
of Tax Systems Modernization development, deployment, 
management, integration, and testing, from the Internal Revenue 
Service to the private sector.
          * * * * * * *
                              ----------                              


SECTION 501 OF THE DISTRICT OF COLUMBIA POLICE AND FIREMEN'S SALARY ACT 
                                OF 1958

  Sec. 501. (a) * * *
  (b)(1) Effective at the beginning at the first applicable pay 
period commencing on or after the first day of the month in 
which an adjustment takes effect under section 5305 of title 5, 
United States Code, in the rates of pay under General Schedule, 
the annual rate of basic compensation of officers and members 
of the United States Park Police force shall be adjusted by the 
Secretary of the [Interior, and the annual rate of basic 
compensation of officers and members of the United States 
Secret Service Uniformed Division may be adjusted by the 
Secretary of the Treasury,] Interior by an amount (rounded to 
the next highest multiple of $5) equal to the percentage of 
such annual rate of pay which corresponds to the overall 
percentage (as set forth in the applicable report transmitted 
to the Congress under such section 5305) of the adjustment made 
in the rates of pay under the General Schedule.
  (2) No adjustment in the annual rate of basic compensation of 
such officers and members may be made except in accordance with 
paragraph (1).
  [(c)] (3) Any reference in any law to the salary schedule in 
section 101 of this Act with respect to officers and members of 
the United States Park Police force [or to officers and members 
of the United States Secret Service Uniformed Division] shall 
be considered to be a reference to such schedule as adjusted in 
accordance with [subsection (b)] this subsection.
  (c)(1) The annual rates of basic compensation of officers and 
members of the United States Secret Service Uniformed Division, 
serving in classes corresponding or similar to those in the 
salary schedule in section 101, shall be fixed in accordance 
with the following schedule of rates:


                                                 SALARY SCHEDULE                                                
----------------------------------------------------------------------------------------------------------------
                                                                  Service Steps                                 
    Salary class and title     ---------------------------------------------------------------------------------
                                   1         2        3        4        5        6        7        8        9   
----------------------------------------------------------------------------------------------------------------
Class 1: Private..............   29,215    30,088   31,559   33,009   35,331   37,681   39,128   40,593   42,052
Class 4: Sergeant.............   39,769    41,747   43,728   45,718   47,715   49,713                           
Class 5: Lieutenant...........   45,148    47,411   49,663   51,924   54,180                                    
Class 7: Captain..............   52,523    55,155   57,788   60,388                                             
Class 8: Inspector............   60,886    63,918   66,977   70,029                                             
Class 9: Deputy Chief.........   71,433    76,260   81,113   85,950                                             
Class 10: Assistant Chief.....   84,694    90,324   95,967                                                      
Class 11: Chief of the U.S.                                                                                     
 Secret Service Uniformed                                                                                       
 Division.....................   98,383   104,923                                                               
----------------------------------------------------------------------------------------------------------------

      
  (2) Effective at the beginning of the first applicable pay 
period commencing on or after the first day of the month in 
which an adjustment takes effect under section 5303 of title 5, 
United States Code (or any subsequent similar provision of 
law), in the rates of pay under the General Schedule (or any 
subsequent similar provision of law), in the rates of pay under 
the General Schedule (or any pay system that may supersede such 
schedule), the annual rates of basic compensation of officers 
and members of the United States Secret Service Uniformed 
Division shall be adjusted by the Secretary of the Treasury by 
an amount equal to the percentage of such annual rate of pay 
which corresponds to the overall percentage of the adjustment 
made in the rates of pay under the General Schedule.
  (3) Locality-based comparability payments authorized under 
section 5304 of title 5, United States Code, shall be 
applicable to the basic pay under this section. However, 
locality-based comparability payments may not be paid at a rate 
which, when added to the rate of basic pay otherwise payable to 
the officer or member, would cause the total to exceed the rate 
of basic pay payable for level IV of the Executive Schedule.
  (4) Pay may not be paid, by reason of any provision of this 
subsection (disregarding any comparability payment payable 
under Federal law), at a rate in excess of the rate of basic 
pay payable for level V of the Executive Schedule contained in 
subchapter II of chapter 53 of title 5, United States Code.
  (5) Any reference in any law to the salary schedule in 
section 101 with respect to officers and members of the United 
States Secret Service Uniformed Division shall be considered to 
be a reference to the salary schedule in paragraph (1) of this 
subsection as adjusted in accordance with this subsection.
  (6)(A) Except as otherwise permitted by or under law, no 
allowance, differential, bonus, award, or other similar cash 
payment under this title or under title 5, United Stated Code, 
may be paid to an officer or member of the United States Secret 
Service Uniformed Division in a calendar year if, or to the 
extent that, when added to the total basic pay paid or payable 
to such officer or member for service performed in such 
calendar year as an officer or member, such payment would cause 
the total to exceed the annual rate of basic pay payable for 
level I of the Executive Schedule, as of the end of such 
calendar year.
  (B) This paragraph shall not apply to any payment under the 
following provisions of title 5, United States Code;
          (i) Subchapter III or VII of chapter 55, or section 
        5596;
          (ii) Chapter 57 (other than section 5753, 5754, or 
        5755); or
          (iii) chapter 59 (other than section 5928).
  (7)(A) Any amount which is not paid to an officer or member 
of the United States Secret Service Uniformed Division in a 
calendar year because of the limitation under paragraph (6) 
shall be paid to such officer or member in a lump sum at the 
beginning of the following calendar year.
  (B) Any amount paid under this paragraph in a calendar year 
shall be taken into account for purposes of applying the 
limitations under paragraph (6) with respect to such calendar 
year.
  (8) The Office of Personnel Management shall prescribe 
regulations as may be necessary (consistent with section 5582 
of title 5, United States Code) concerning how a lump-sum 
payment under paragraph (7) shall be made with respect to any 
employee who dies before an amount payable to such employee 
under paragraph (7) is made.
                              ----------                              


                       THE ACT OF AUGUST 15, 1950

   AN ACT To provide a five-day week for officers and members of the 
Metropolitan Police force, the United States Park Police force, and the 
                       White House Police Force.

  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That (a) * 
* *
          * * * * * * *
  (h)(1) No premium pay provided by this Act shall be paid to, 
and no compensatory time off is authorized for, [any officer or 
member] an officer or member of the Metropolitan Police force, 
of the Fire Department of the District of Columbia, or of the 
United States Park Police whose rate of basic compensation 
equals or exceeds the minimum scheduled rate of basic 
compensation provided for service step 1 in the salary class 
applicable to the Fire Chief and Chief of Police of the 
District of Columbia Police and Firemen's Salary Act of 1958, 
as amended.
  (2) In the case of [any officer or member] an officer or 
member of the Metropolitan Police force, of the Fire Department 
of the District of Columbia, or of the United States Park 
Police whose rate of basic compensation is less than the 
minimum scheduled rate of basic compensation provided for 
service step 1 in the salary class applicable to the Fire Chief 
and Chief of Police of the Police and Firemen's Salary Act of 
1958, as amended, such premium pay may be paid only to the 
extent that such payment would not cause his aggregate rate of 
compensation to exceed such minimum scheduled rate with respect 
to any pay period.
  (3)(A) No premium pay provided by this section shall be paid 
to, and no compensatory time is authorized for, any officer or 
member of the United States Secret Service Uniformed Division 
whose rate of basic pay, combined with any applicable locality-
based comparability payment, equals or exceeds the lesser of 
(I) 150 percent of the minimum rate payable for grade GS-15 of 
the General Schedule (including any applicable locality-based 
comparability payment under section 5305 of title 5, United 
States Code or any similar provision of law, and any applicable 
special rate of pay under section 5303 of title 5, United 
States Code or any similar provision of law) or (II) the rate 
payable for level V of the Executive Schedule contained in 
subchapter II of chapter 53 of title 5, United States Code.
  (B) In the case of any officer or member of the United States 
Secret Service Uniformed Division whose rate of basic pay, 
combined with any applicable locality-based comparability 
payment, is less than the lesser of--
          (i) 150 percent of the minimum rate payable for grade 
        GS-15 of the General Schedule (including any applicable 
        locality-based comparability payment under section 5305 
        of title 5, United States Code or any similar provision 
        of law, and any applicable special rate of pay under 
        section 5303 of title 5, United States Code or any 
        similar provision of law); or
          (ii) the rate payable for level V of the Executive 
        Schedule contained in subchapter II of chapter 53 of 
        title 5, United States Code, such premium pay may be 
        paid only to the extent that such payment would not 
        cause such officer or member's aggregate rate of 
        compensation to exceed such lesser amount with respect 
        to any pay period.
  [(3)] (i) Each authorizing official is authorized to 
promulgate such regulations and issue such orders as are 
necessary to carry out the intent and purpose of this Act, and 
to delegate to a designated agent or agents any of the 
functions vested in the authorizing official by this Act.
          * * * * * * *
                              ----------                              


   SECTION 405 OF THE FEDERAL LAW ENFORCEMENT PAY REFORM ACT OF 1990

SEC. 405. SAME BENEFITS FOR OTHER LAW ENFORCEMENT OFFICERS.

  (a) * * *
  (b) This subsection applies with respect to any--
          [(1) member of the United States Secret Service 
        Uniformed Division;]
          * * * * * * *
  (c) For the purposes of this section, the term ``appropriate 
agency head'' means--
          [(1) with respect to any individual under subsection 
        (b)(1), the Secretary of the Treasury;]
          * * * * * * *
                              ----------                              


    SECTION 10 OF THE INDEPENDENT AGENCIES APPROPRIATIONS ACT, 1989

                          (Public Law 100-440)

          GENERAL SERVICES ADMINISTRATION--GENERAL PROVISIONS

          * * * * * * *
  [Sec. 10. The Administrator of General Services is authorized 
and directed to hire up to and maintain an annual average of 
not less that one thousand full-time equivalent positions for 
Federal Protective Officers. This shall be accomplished by 
increasing existing staff levels at the end of fiscal year 1988 
at a rate of not less than fifty positions per year until the 
full-time equivalency of one thousand is attained by not later 
than fiscal year 1992.]
                              ----------                              


                SECTION 2 OF THE ACT OF AUGUST 25, 1958

  An Act to provide retirement, clerical assistants, and free mailing 
  privileges to former Presidents of the United States, and for other 
                               purposes.

          * * * * * * *
    [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 1968 (8 U.S.C. 102 note.)]
                              ----------                              


              SECTION 3214 OF TITLE 39, UNITED STATES CODE

Sec. 3214.  Mailing privilege of former President; surviving spouse of 
                    former President

    [(a) Subject to subsection (b), a] A former President and 
the surviving spouse of a former President may send 
nonpolitical mail within the United States and its territories 
and possessions as franked mail. Such mail of a former 
President and of the surviving spouse of a former President 
marked ``Postage and Fees Paid'' in the manner prescribed by 
the Postal Service shall be accepted by the Postal Service for 
transmission in the international mails.
    [(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 
        Transaction Act of 1968 (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)).]

        SECTION 306 OF THE FEDERAL ELECTION CAMPAIGN ACT OF 1971

                      federal election commission

    Sec. 306. (a)(1) There is established a commission to be 
known as the Federal Election Commission. The Commission is 
composed of the Secretary of the Senate and the Clerk of the 
House of Representatives or their designees, ex officio and 
without the right to vote, and 6 members appointed by the 
President, by and with the advice and consent of the Senate. No 
more than 3 members of the Commission appointed under this 
paragraph may be affiliated with the same political party.
    (2)(A) Members of the Commission shall serve [for terms of 
6 years] for a single term of 6 years, except that of the 
members first appointed--
    (i) * * *
          * * * * * * *
                              ----------                              


              SECTION 5378 OF TITLE 5, UNITED STATES CODE

Sec. 5378. Police forces of the Bureau of Engraving and Printing and 
                    the United States Mint

    [(a) The Secretary of the Treasury shall fix the rates of 
basic pay for positions within the police forces of the Bureau 
of Engraving and Printing and the United States Mint in 
accordance with the following:
          [(1) Entry-level police officer--not more than the 
        maximum rate payable for GS-6.
          [(2) Journeyman-level police officer--not more than 
        the maximum rate payable for GS-7.
          [(3) Corporal--not more than the maximum rate payable 
        for GS-8.
          [(4) Sergeant--not more than the maximum rate payable 
        for GS-9.
          [(5) Lieutenant--not more than the maximum rate 
        payable for GS-10.
          [(6) Deputy Inspector--not more than the maximum rate 
        payable for GS-11.
          [(7) Inspector--not more than the maximum rate 
        payable for GS-12.
          [(8) Chief--not more than the maximum rate payable 
        for GS-14.]
    (a) The Secretary of the Treasury, or his designee, shall 
fix the rates of basic pay for positions within the police 
forces of the United States Mint and the Bureau of Engraving 
and Printing without regard to the provisions of this title, 
except that no entry-level police officer shall receive basic 
pay for a calendar year that is less than the minimum rate for 
grade GS-7 of the General Schedule and no executive security 
official shall receive basic pay for a calendar year that 
exceeds the maximum rate for grade GS-15 of the General 
Schedule.
          * * * * * * *

          Financial Assistance to State and Local Governments

    In accordance with section 308(a)(1)(D) of the 
Congressional Budget Act of 1974 (Public Law 93-344), as 
amended, the financial assistance to state and local 
governments are as follows:

                                                                        
                                                          [In millions] 
                                                                        
New budget authority..................................          -- -- --
Fiscal year 1998 outlays resulting therefrom..........          -- -- --
                                                                        

                   Comparison With Budget Resolution

    Section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, requires that the report accompanying a bill providing 
new budget authority contain a statement detailing how the 
authority compares the reports submitted under section 602(b) 
of the Act for the most recently agreed to concurrent 
resolution on the budget for the fiscal year. This information 
follows:

                        [In millions of dollars]                        
------------------------------------------------------------------------
                                602(b) allocation         This bill     
                             -------------------------------------------
                                Budget                Budget            
                              authority   Outlays   authority   Outlays 
------------------------------------------------------------------------
Discretionary:                                                          
    General purposes........     12,401     12,169     12,401     12,169
    Violent Crime Trust Fund         97         94         97         94
                             -------------------------------------------
      Total discretionary...     12,498     12,263     12,498     12,263
                                                                        
Mandatory...................     12,498     12,263     12,498     12,263
------------------------------------------------------------------------

    The bill provides no new spending authority as described in 
section 401(c)(2) of the Congressional Budget and Impoundment 
Control Act of 1974 (Public Law 93-344), as amended.

                      Five-Year Outlay Projections

    In compliance with section 308(a)(1)(C) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the following table contains 
five-year projections associated with the budget authority 
provided in the accompanying bill:
                                                           [In millions]
Budget Authority........................................
Outlays:                                                          25,067
    Fiscal year 1998....................................          22,134
    Fiscal year 1999....................................           1,571
    Fiscal year 2000....................................             648
    Fiscal year 2001 and future years...................             167

Note: The above table includes mandatory appropriations and 
discretionary appropriations
---------------------------------------------------------------------------

                   Compliance With Rule XXI, Clause 3

    In compliance with rule XXI, clause 3, the Committee has 
inserted at the appropriate place in the report a description 
of the effects of provisions proposed in the accompanying bill 
which may be considered, under certain circumstances, to change 
the application of existing law, either directly or indirectly.
    The bill provides, in some instances, for funding of 
agencies and activities where legislation has not yet been 
finalized. In addition, the bill carries language, in some 
instances, permitting activities not authorized by law, or 
exempting agencies from certain provisions of law, but which 
has been carried in appropriations acts for many years.
    In title IV of the bill, in connection with the General 
Services Administration, certain limitations on availability of 
revenue in the Federal Buildings Fund and certain legislative 
provisions have been carried forward from last year. The 
Committee has included a provision requiring approval by the 
Appropriations Committee of additional repair and alteration 
projects, as well as several additional general provisions.
    The bill continues a number of general provisions applying 
to agencies covered by the bill as well as certain provisions 
applying Government-wide. These provisions have been carried in 
the prior year appropriations bill, and a number of them have 
been carried for many years.

                  TITLE I--DEPARTMENT OF THE TREASURY

    The Committee has continued language which provides funds 
for operation and maintenance of the Treasury Building and 
Annex, hire of passenger motor vehicles; maintenance, repairs, 
and improvements of, and purchase of commercial insurance 
policies for real properties leased or owned overseas; official 
travel expenses, official reception and representation 
expenses; and unforeseen emergencies of a confidential nature.

                 Office of Professional Responsibility

    The Committee continues language providing funding for 
salaries and expenses of the Office of Professional 
Responsibility.

                         Automation Enhancement

    The Committee has continued language which provides funds 
for the development and acquisition of automatic data 
processing equipment, software, and services, providing 
transfer authority, and limiting expenditure until approval.

                      Office of Inspector General

    The Committee has continued language which provides funds 
to carry out the provisions of the Inspector General Act of 
1978, the hire of vehicles, official travel expenses, and 
unforeseen emergencies.

          Treasury Buildings and Annex Repair and Restoration

    The Committee has continued language which provides funds 
for the repair, alteration, and improvement of the Treasury 
Building and Annex. The Committee has inserted new language 
providing funds for the National Laboratory Center and Fire 
Investigation Research and Development Center and the Rowley 
Secret Service Training Center; limiting these funds until the 
projects are authorized.

                  Financial Crimes Enforcement Network

    The Committee has continued language which provides funds 
for hire of vehicles and official reception and representation 
expenses and language allowing FinCEN to use appropriated 
resources for official reception and representation; the travel 
of non-federal personnel attending conferences or meetings 
involving financial law enforcement; the purchase of personal 
services contracts. The Committee retains language allowing 
FinCEN to provide assistance to federal law enforcement 
agencies with or without reimbursement.

                    Violent Crime Reduction Programs

    The Committee has included language allocating amounts 
authorized by sections 190001(e) and 32401 of Public Law 103-
322.

                        Treasury Franchise Fund

    The Committee has included new language establishing a 
Treasury Franchise Fund pilot project as authorized by section 
403 of Public Law 103-356.

                Federal Law Enforcement Training Center

    The Committee has continued language which provides funds 
for material and support costs of basic training, the purchase 
and hire of vehicles, student athletic and related activities, 
uniform purchases, conducting and or participating in firearms 
matches, community relations for U.S. Postal Service law 
enforcement personnel and State and local law enforcement 
training, acceptance of gifts, training of private sector 
security officials on a space available basis, travel expenses 
of non-federal personnel to attend State and local course 
development meetings at the Center, the establishment of a fund 
to provide gifts for certain honor graduate students, directs 
the Director to present certain awards, allows for the 
provision of short term medical services for students 
undergoing training. The Committee has added language that 
would allow the Director to waive reimbursement, including for 
foreign law enforcement and private security personnel when it 
is in the public interest to do so.
    Authorization for the Federal Law Enforcement Training 
Center has not been enacted as of the date of this report.

     acquisition, construction, improvements, and related expenses

    The Committee has continued language for construction, 
repair, and other expenses to remain available until expended.

                      Financial Management Service

    The Committee has continued language which provides funds 
to remain available until expended for systems modernization.

                Bureau of Alcohol, Tobacco and Firearms

    The Committee has continued language which provides funds 
for the purchase of vehicles, the hire of aircraft, the 
services of expert witnesses, the payment of per diem and/or 
subsistence allowances for the National Response Team, official 
reception and representation expenses, training of State and 
local law enforcement agencies, the provision of laboratory 
assistance to State and local agencies, the payment of 
attorney's fees, the equipping of certain vessels, vehicles, 
equipment or aircraft; provides that no funds shall be used to 
consolidate or centralize the records pertaining to firearms 
licenses; and prohibits the payment of administrative expenses 
in changing the definition of curios or relics. The Committee 
has continued language prohibiting the transfer of ATF's 
functions to another federal agency. The Committee has 
continued language prohibiting provision of ballistics imaging 
equipment to state and local authorities under certain 
circumstances, prohibiting any reduction in force, prohibiting 
expenditure of separation incentive payments without advance 
approval of the House and Senate Committees on Appropriations, 
and prohibiting electronic retrieval of information gathered 
pursuant to 18 U.S.C. 923(g)(4) by purchaser name or any 
identification code that would identify a purchaser.

                     United States Customs Service

    The Committee has continued language which provides funds 
for the hire of vehicles, official reception and representation 
expenses, compensation to informers, rental space for pre-
clearance operations, and part-time and temporary positions and 
uniforms. The Committee has included new language that would 
include the overtime pay cap of Customs inspectors to $30,000.

                   harbor maintenance fee collection

    The Committee has included language relating to the use of 
collection of the Harbor Maintenance Fee pursuant to Public Law 
103-182.

                      air interdiction procurement

    The Committee inserted new language providing for the 
purchase and restoration of aircraft for the Customs air and 
marine interdiction program after September 30, 1998.

                   customs service at small airports

    The Committee has continued language which provides funds 
for the provision of Customs services at certain small airports 
and provides that the funds may remain available until 
expended.

                       Bureau of the Public Debt

    The Committee has continued language which provides funds 
for expenses associated with public debt issues.

                        Internal Revenue Service

                 processing, assistance, and management

    The Committee has provided funds for the direction, 
management, audit, security, purchase and hire of vehicles, 
services authorized by 5 USC, official reception and 
representation expenses, research processing tax returns, 
accounting, developing statistics of income, taxpayer 
assistance, hire of vehicles, services authorized by 5 USC.

                          tax law enforcement

    The Committee has continued language which provides funds 
for determining and establishing tax liabilities, tax and 
enforcement litigation, technical rulings, examining employee 
plans and exempt organizations, investigations, securing tax 
returns, collection, purchase and hire of vehicles, services 
authorized by 5 USC.

                          information systems

    The Committee has continued language which provides funds 
for data processing and telecommunications support, the hire of 
vehicles, services authorized by 5 USC, sets a minimum funding 
level for tax systems modernization, provides that certain 
funds shall remain available until expended and prohibits the 
expenditure of funds for tax systems modernization until 
certain conditions are met.

                   information technology investments

    The Committee has included a new appropriation, as 
requested by the Administration, which provides funds for the 
Internal Revenue Service's information technology investments. 
The Committee prohibits the obligation of these funds until 
September 30, 1998 and places restrictions on the use of these 
funds until certain conditions are met.

          Administrative Provisions--Internal Revenue Service

    Section 101. The Committee continues the provision which 
allows the transfer of funds between Internal Revenue Service 
appropriations. The transfer is limited to 5 percent of the 
appropriation and is subject to prior Congressional approval.
    Section 102. The Committee continues the provision which 
requires the Internal Revenue Service maintain a training 
program in taxpayer's rights, dealing courteously with the 
taxpayers, and cross cultural relations.
    Section 103. The Committee continues the provision which 
requires the Internal Revenue Service maintain taxpayer 
services at not less than 1995 levels.
    Section 104. The Committee has continued this provision, 
which previously was carried under ``General Provisions--
Department of the Treasury,'' which prohibits the expenditure 
of funds for the collection of taxes unless the conduct of 
offices and employees of the IRS complies with the Fair Debt 
Collection Practices Act.
    Section 105. The Committee has continued this provision, 
which was carried under ``General Provisions--Department of the 
Treasury,'' which requires the IRS to institute policies and 
procedures which will safeguard the confidentiality of taxpayer 
information.

                      United States Secret Service

    The Committee has continued language which provides funds 
for the hire of motor vehicles, aircraft, training and 
assistance requested by State and local governments, services 
of expert witnesses, rental of certain buildings, improvements 
to buildings as may be necessary for protective functions, 
conducting of firearms matches, presentation of awards, travel 
of employees on protective Missions, for repairs, alterations, 
and minor construction of the training center, making grants to 
conduct behavioral research, uniforms, research, and 
reimbursement for protection as authorized by law.

      acquisition, construction, improvement, and related expenses

    The Committee has continued language which provides for the 
acquisition, construction, improvement, and related expenses of 
the new Secret Services headquarters building.

             General Provisions--Department of the Treasury

    Section 111. The Committee continues the provision 
requiring the Secretary of the Treasury to comply with certain 
reprogramming guidelines when obligating or expending funds for 
law enforcement activities.
    Sec. 112. The Committee continues the provision allowing 
the Department of the Treasury to purchase uniforms, insurance, 
and motor vehicles without regard to the general purchase price 
limitation, and enter into contracts with the State Department 
for health and medical services for Treasury employees in 
overseas locations.
    Sec. 113. The Committee continues the provision requiring 
expenditure of funds so as not to diminish efforts under the 
Federal Alcohol Administration Act.
    Sec. 114. The Committee has included a new provision which 
authorizes transfers between law enforcement appropriations 
under certain circumstances.
    Sec. 115. The Committee has included a new provision which 
authorizes transfers between administratively related 
appropriations under certain circumstances.
    Sec. 116. The Committee has included a new provision which 
limits the contractual term for distinctive currency paper and 
requires a GAO report prior to the award of the new currency 
paper contract.
    Sec. 117. The Committee has included a new provision which 
requires the reimbursement of Secret Service personnel for 
certain fees and costs.
    Sec. 118. The Committee has included a new provision which 
prospectively adjusts the compensation of the Secretary of the 
Treasury, beginning with the subsequent Secretary.
    Sec. 119. The Committee has included a new provision which 
limits the amount of time allowed for the clearance process 
associated with testimony and information provided to the 
Committee.
    Sec. 120. The Committee has included a new provision which 
adjusts the rate of basic pay for the United States Secret 
Service Uniformed Division.
    Sec. 121. The Committee has included a new provision which 
repeals Section 117 of the fiscal year 1997 appropriation.
    Sec. 122. The Committee has included a new provision which 
directs the IRS to initiate an electronic filing project.
    Sec. 123. The Committee has included a new provision which 
addresses compensation rates of police officers at the B&P and 
the U.S. Mint.

                        TITLE II--POSTAL SERVICE

                   Payment to the Postal Service Fund

    The Committee has continued language which prohibits funds 
made available to the Postal Service from being used to close 
or consolidate certain post offices, from charging employees of 
local and child support agencies, provides funds for free mail 
for the blind, and for six day mail delivery and rural delivery 
of mail at existing levels.

TITLE III--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO 
                             THE PRESIDENT

        Compensation of the President and the White House Office

    The Committee has continued language which mandates that 
unused amounts of the President's expense allowance will revert 
to the Treasury and not be taxable to the President and which 
provides funds for service authorized by 5 USC, subsistence 
expenses, hire of vehicles, newspapers, periodicals, teletype 
news service, travel, and official entertainment expenses. The 
Committee continues a provision fencing ADP funds until certain 
requirements are met. The Committee includes new language 
authorizing reinbursements to the White House Communications 
Agency.

                 Executive Residence at the White House

    The Committee has continued language which provides funds 
for operation and maintenance of the White House for official 
entertainment expenses. The Committee has included new language 
prohibiting the use of funds for partisan political activities; 
language establishing a reimbursable program for political and 
non-political events at the Executive Residence; language 
authorizing the reimbursable program; language requiring the 
prompt collection of reimbursement for political and non-
political activities; language requiring pre-payment of 
political activities; language establishing reporting 
requirements for the reimbursable program; and language 
requiring the development of a system for defining, tracking 
and disclosing reimbursable events.

Special Assistance to the President and Official Residence of the Vice 
                               President

    The Committee has continued language which provides funds 
for operation and maintenance of the official residence of the 
Vice President, the hire of vehicles, official entertainment 
expenses and provides for the transfer of funds as necessary.
    The Committee has continued language which enables the Vice 
President to provide assistance to the President, services 
authorized by 5 USC, subsistence, and the hire for vehicles. 
The Committee includes new provisions fencing ADP funds until 
certain requirements are met.

                      Office of Policy Development

    The Committee has continued language which provides funds 
for expenses of the Office. The Committee continues a provision 
fencing ADP funds until certain requirements are met.

                       National Security Council

    The Committee has continued language which provides funds 
for expenses of the Council. The Committee continues a 
provision fencing ADP funds until certain requirements are met.

                        Office of Administration

    The Committee has continued language which provides funds 
for expenses of the Office and the hire of vehicles. The 
Committee continues a provision fencing ADP funds until certain 
requirements are met. The Committee includes a new provision 
for a Capital Investment Plan.

                    Office of Management and Budget

    The Committee has continued language which provides funds 
for expenses, the hire of vehicles, carrying out provisions of 
44 USC, directs that funds shall be applied only to items for 
which appropriations were made, and prohibits the alteration of 
certain testimony.

                 Office of National Drug Control Policy

    The Committee has continued language which provides funds 
for expenses, research, official reception and representation 
expenses, participation in joint projects, the Counter-Drug 
Technology Assessment Center conferences on model State drug 
laws, policy research and evaluation, and allows for the 
acceptance of gifts.

 federal drug control programs--high intensity drug trafficking areas 
                                programs

    The Committee has continued language which provides a 
certain level of funding for drug control activities for State 
and local and federal drug control efforts, and requires 
obligation of funds within a specified period of time. The 
Committee has included new language requiring that funding for 
existing HIDTAs be continued at the current level and language 
creating two new HIDTAs.

        federal drug control programs--special forfeiture funds

    The Committee has provided language which makes funding 
available for a media campaign and a program of grants for 
community drug coalitions, both of which will be targeted at 
youth.

                     TITLE IV--INDEPENDENT AGENCIES

 Commission for Purchase from People Who Are Blind or Severely Disabled

    The Committee has continued language which provides funds 
for expenses of the Committee.

                      Federal Election Commission

    The Committee has continued language which provides funds 
for expenses of the Commission and specifying a level of 
funding for internal automated data processing systems and 
reception and representation expenses. The Committee includes a 
new provision transferring funds to the General Accounting 
Office for an independent audit of FEC operations.

                   Federal Labor Relations Authority

    The Committee has continued language which provides funds 
for the expenses of the authority, including authorized 
services, hire of experts and consultants, hire of passenger 
motor vehicles, and rental of conference rooms in the District 
of Columbia. The Committee has also continued a provision that 
public members of the Federal Service Impasse Panel may be paid 
travel expenses and that fees charged to non-Federal 
participants at labor-management relations conferences shall be 
credited and merged with this account.

                    General Services Administration

                         federal buildings fund

    The Committee has continued language dealing with the 
conditions under which funds made available to the Federal 
Buildings Fund can be used and has designated certain projects 
which can be undertaken. Many technical provisions have been 
inserted regarding use of funds in the Federal Buildings Fund 
which are not specifically authorized by law.
    A more detailed analysis of the Federal Buildings Funds can 
be found in the General Services Administration chapter of this 
report.
    The Committee has inserted language concerning the 
Pennsylvania Avenue Development Corporation.

                          policy and oversight

    The Committee has inserted language which provides funds 
for government-wide policy and oversight activities, the Board 
of Contract Appeals, authorized services, and official 
reception and representation expenses.

                      Office of Inspector General

    The Committee has continued language which provides funds 
for expenses for the Office, payment for information and 
detection of fraud, and awards.

         Allowances and Office and Staff for Former Presidents

    The Committee has continued language which provides funds 
for compliance with Public Law 95-138.

          general provisions--general services administration

    Section 401. The Committee continues the provision 
providing for the crediting of amounts received as Federal 
agency rental payments to the Federal Buildings Funds.
    Sec. 402. The Committee continues the provision providing 
funds for the hire of motor vehicles.
    Sec. 403. The Committee continues the provision providing 
that funds made available for activities of the Federal 
Buildings Fund may be transferred between appropriations.
    Sec. 404. The Committee continues the provision limiting 
funding for courthouse construction which do not meet certain 
standards of a capital improvement plan.
    Sec. 405. The Committee continues the provision providing 
no funds may be used to increase the amount of occupiable 
square feet, provide cleaning services, security enhancements, 
or any other service usually provided, to any agency which does 
not pay the requested rate.
    Sec. 406. The Committee has included a new provision 
repealing Section 10 of Public Law 100-440 which sets a limit 
on the number of employees in the FPS.
    Sec. 407. The Committee has included a new provision which 
allows pilot information technology projects to be repaid from 
the Information Technology Fund.
    Sec. 408. The Committee continues the provision ensuring 
the materials used for the facade on the United States 
Courthouse Annex, Savannah, Georgia project are compatible with 
the existing building.
    Sec. 409. The Committee has included a new provision 
repealing Section 6 of Public Law 103-123.
    Sec. 410. The Committee has included a new provision 
requested by the Administration which retires the outstanding 
debt to the United States Treasury associated with Pennsylvania 
Avenue Development Corporation assets transferred to GSA.
    Sec. 411. The Committee has included a new provision which 
permits the GSA to pay small claims (up to $250,000) made 
against the Government. This language, which has previously 
been carried in the body of the Federal Buildings Fund 
appropriation language, provides the authority for GSA to use 
savings effected in other construction projects to pay 
legitimate claims made against the Government by contractors.
    Sec. 412. The Committee has included a new provision which 
addresses the sale of government-owned property in Bakersfield, 
California.
    Sec. 413. The Committee has included a new provision which 
repeals the effects of Section 1555 of the Federal Acquisition 
Streamlining Act.

 Morris K. Udall Scholarship and Excellence in National Environmental 
                           Policy Foundation

    The Committee has included a new appropriation, as required 
by the Administration, which provides federal payments to the 
Morris K. Udall Scholarship and Excellence in National 
Environmental Policy Foundation.

           John F. Kennedy Assassination Records Review Board

    The Committee has continued language which provides funds 
for the Board.

                     Merit Systems Protection Board

    The Committee has continued language which provides funds 
for the Board.

              National Archives and Records Administration

    The Committee has continued language which provides funds 
for the operations of the NARA including expenses necessary to 
move to a new facility.

repairs and restoration--archives facilities and presidential libraries

    The Committee has included language which provides funds 
for the repair, alteration, and improvement of archives 
facilities and presidential libraries.

        national historical publications and records commission

    The Committee has included language which provides funds 
for the Commission.

                      Office of Government Ethics

    The Committee has continued language which provides funds 
for the Office.

                     Office of Personnel Management

    The Committee has continued language which provides for 
expenses of the Office, services authorized by 5 U.S.C. medical 
examinations under certain conditions, rental of conference 
rooms, hire of vehicles, official reception, and representation 
expenses, advances for reimbursement, acceptance of gifts, and 
awards for the national Civil Service Appreciation Conferences, 
health promotion and disease prevention programs, transfers to 
appropriate trust funds, prohibition on the payment of any 
physician, hospital or other provider of health care services 
who is excluded from providing services under certain Social 
Security Act provisions, prohibition of funds for the Legal 
Examining Unit, authority to accept certain donations for the 
White House Fellows program.

                      office of inspector general

    The Committee has continued language which provides funds 
for expenses of the Office, audit of the retirement and 
insurance programs, and the rental of conference rooms.

      government payment for annuitants, employee health benefits

    The Committee has continued language which provides funds 
for the payment of the government contributions.

       government payment for annuitants, employee life insurance

    The Committee has continued language which provides funds 
for the payment of the government contributions.

        payment to civil service retirement and disability fund

    The Committee has continued language which provides funds 
for the payment of the government contributions.

           general provisions--office of personnel management

    Section 1. The Committee included, at the request of the 
Administration, a modification to title 5, United States Code, 
which authorizes OPM to accept reimbursement for personnel 
management services provided to revolving funds, government 
sponsored enterprises, and other ``nonappropriated fund 
instrumentalities''

                       office of special counsel

    The Committee has continued language which provides funds 
for the Office.

                        united states tax court

    The Committee has continued language which provides funds 
for the Court.

                      TITLE V--GENERAL PROVISIONS

                                This Act

    Section 501. The Committee continues the provision limiting 
the expenditure of funds to the current year unless expressly 
provided in this Act.
    Section 502. The Committee continues the provision limiting 
the expenditure of funds for consulting services under certain 
conditions.
    Section 503. The Committee continues the provision 
prohibiting the use of funds to engage in activities which 
would prohibit the enforcement of section 307 of the 1930 
Tariff Act.
    Section 504. The Committee continues and modifies by making 
permanent the provision prohibiting the transfer of control 
over the Federal Law Enforcement Training Center.
    Section 505. The Committee continues the provision 
prohibiting the prevention of certain United States Postal 
Service employees from contacting their member of Congress.
    Section 506. The Committee continues and modifies by making 
permanent the provision authorizing donations of supplies and 
equipment to the Federal Executive Institute.
    Section 507. The Committee continues the provision 
concerning employment rights of Federal employees who return to 
their civilian jobs after assignment with the Armed Forces.
    Section 508. The Committee continues the provision 
concerning compliance with the Buy America Act.
    Section 509. The Committee continues the provision 
concerning prohibition of contracts which use certain goods not 
made in America.
    Section 510. The Committee continues the provision 
concerning prohibition of contracts.
    Section 511. The Committee continues the provision 
providing that fifty percent of unobligated balances may remain 
available for certain purposes.
    Section 512. The Committee continues a provision which 
provides a restriction on the use of funds for the White House 
to request official background reports without the written 
consent of the individual who is the subject of the report.
    Section 513. The Committee has continued the provision 
mandating that federal workers paid as part of this Act may not 
receive weekend or night differential pay for hours in which 
they did not work but adds an exception for night differential 
pay for workers who have been permanently assigned to such 
shifts for a minimum of 26 weeks.
    Sec. 514. The Committee has included a new provision 
increasing the amounts provided to the FEC for internal 
modernization by $4,200,000 and making these funds contingent 
upon satisfying the conditions set forth in Section 515.
    Sec. 515. The Committee has included a new provision making 
the funds available in Section 514 contingent upon the filling 
of all vacancies in the membership of the FEC Commission as of 
July 15, 1997 and the enactment of legislation prohibiting the 
reappointment of members of the Commission.
    Sec. 516. The Committee includes a provision which 
prohibits the use of funds provided in this Act for the 
coverage of abortions.
    Sec. 517. The Committee includes a provision which provides 
that Section 516 will not apply when the life of the mother 
would be endangered, or that the pregnancy is the result of an 
act of rape or incest.
    Sec. 518. The Committee has included a new provision to 
prohibit any funding in connection with denial of application 
for importation of certain historic firearms, ammunition, and 
related components defined in statute as ``curios or relics,'' 
in particular weapons that were originally provided by the 
United States government as foreign military assistance.
    Sec. 519. The Committee has included a new provision 
prohibiting the use of funds in this or any other Act to expand 
the Global Package Link Service offered by the Postal Service.

              TITLE VI--GOVERNMENTWIDE GENERAL PROVISIONS

                Departments, Agencies, and Corporations

    Section 601. The Committee continues the provision 
authorizing agencies to pay travel costs of the families of 
Federal employees to foreign duty to return to the United 
States in the event of a death of a life threatening illness of 
the employee.
    Section 602. The Committee continues the provision 
requiring agencies to administer a policy designed to ensure 
that all of its workplaces are free from the illegal use of 
controlled substances.
    Section 603. The Committee continues the provision 
authorizing reimbursement for travel, transportation, and 
subsistence expenses incurred for training classes, 
conferences, or other meetings in connection with the provision 
of child care services to Federal employees.
    Section 604. The Committee continues the provision 
regarding price limitation on vehicles to be purchased by the 
Federal Government.
    Section 605. The Committee continues the provision allowing 
funds made available to agencies for travel to also be used for 
quarters allowances and cost-of-living allowances.
    Section 606. The Committee continues the provision 
prohibiting the Government, with certain specified exceptions, 
from employing non-U.S. citizens whose posts of duty would be 
in the continental U.S.
    Section 607. The Committee continues the provision ensuring 
that agencies will have authority to pay GSA bills for space 
renovation and other services.
    Section 608. The Committee continues the provision allowing 
agencies to finance the costs of recycling and waste prevention 
programs with proceeds from the sale of materials recovered 
through such programs.
    Section 609. The Committee continues the provision 
providing that funds may be used to pay rent and other service 
costs in the District of Columbia.
    Section 610. The Committee continues the provision 
prohibiting certain payments to those nominees who have been 
rejected by the U.S. Senate.
    Section 611. The Committee continues the provision 
precluding the interagency financing of groups absent prior and 
specific statutory approval.
    Section 612. The Committee continues the provision 
authorizing the Postal Service to employ guards and give them 
the same special police powers as GSA guards.
    Section 613. The Committee continues the provision 
prohibiting the use of funds for enforcing regulations 
disapproved in accordance with the applicable law of the U.S.
    Section 614. The Committee continues the provision limiting 
the pay increases of certain prevailing rate increases.
    Section 615. The Committee continues the provision limiting 
the amount of funds that can be used for redecoration of 
offices under certain circumstances.
    Section 616. The Committee continues the provision 
prohibiting the expenditure of funds for the acquisition of 
additional law enforcement training facilities.
    Section 617. The Committee continues the provision to allow 
for interagency funding of national security and emergency 
telecommunications initiatives.
    Section 618. The Committee continues the provision 
requiring agencies to certify that a Schedule C appointment was 
not created solely or primarily to detail the employee to the 
White House.
    Section 619. The Committee continues the provision 
requiring agencies to administer a policy designed to ensure 
that all of its workplaces are free from discrimination and 
sexual harassment.
    Section 620. The Committee continues the provision 
prohibiting the use of funds for travel expenses not directly 
related to official governmental duties.
    Section 621. The Committee continues the provision 
requiring the President to certify that persons responsible for 
administering the Drug Free Workplace Program are not 
themselves the subject of random drug testing.
    Section 622. The Committee has modified this provision 
prohibiting Federal training not directly related to the 
performance of official duties.
    Section 623. The Committee continues the provision 
prohibiting the expenditure of funds for implementation of 
agreements in nondisclosure policies unless certain provisions 
are included.
    Section 624. The Committee has continued the provision 
prohibiting lobbying by executive agency personnel.
    Section 625. The Committee continues the provision that 
requires OMB to do an accounting statement and report on the 
cumulative costs and benefits of Federal regulatory programs.
    Section 626. The Committee continues the provision 
prohibiting any federal agency to provide an employee's home 
address to any labor organization unless authorized.
    Section 627. The Committee continues the provision that 
authorizes the Secretary of the Treasury to establish 
certification standards for explosives detection canines.
    Section 628. The Committee continues language prohibiting 
funds made available in this Act or any other Act from being 
used to provide any non-public information outside of the 
Federal government without approval of the House and Senate 
Committees.
    Section 629. The Committee continues the provision allowing 
interagency financing for the National Bioethics Advisory 
Commission.
    Section 630. The Committee has included a new provision, 
previously carried under Title V, which prohibits the use of 
funds for certain propaganda purposes.
    Section 631. The Committee has included a new provision 
prohibiting the use of funds for the purchase of any 
information technology that is not year 2000 compliant unless 
the agency's CIO determines that non-compliance purchases are 
necessary for the operation of the agency or the acquisition is 
required by a signed contract in effect before enactment of 
this Act.
    Section 632. The Committee has included a new provision 
directing USTR, Treasury and Commerce to consult with Mexico 
and Canada regarding personal allowance parity among NAFTA 
parties.

                    detailed explanations in report

    It should be emphasized again that a more detailed 
statement describing the effect of the above provisions 
inserted or continued this year by the Committee which directly 
or indirectly change the application of existing law may be 
found at the appropriate place in this report.

                  appropriations not authorized by law

    Pursuant to clause 3 of rule XXI of the House of 
Representatives, the following table lists the appropriations 
in the accompanying bill which are not authorized by law:
    Treasury Department
          Departmental Offices, except International Affairs 
        and Official Travel
          Office of Inspector General
          Treasury Building and Annex Repair and Restoration
          Financial Crimes Enforcement Network
          Federal Law Enforcement Training Center
                  Salaries and Expenses
                  Acquisition, Construction, Improvements & 
                Related Expenses
          Financial Management Service
          Bureau of Alcohol, Tobacco and Firearms, except those 
        activities related to the enforcement of tobacco 
        smuggling and regulation of explosives
          U.S. Customs Service
                  Salaries & Expenses
                  Operation and Maintenance, Air & Marine 
                Interdiction
                  Programs
          Bureau of the Public Debt
          Internal Revenue Service
                  Processing, Assistance and Management
                  Tax Law Enforcement
                  Information Systems
                  Information Technology Investment
          U.S. Secret Service--except the Uniformed Division
          Funds Appropriated to the President
          High Intensity Drug Trafficking Areas Program
    Office of Management and Budget, Office of Information and 
Regulatory Affairs
          Federal Election Commission
          General Services Administration
                  Policy and Oversight
                          Full Committee Votes

    Pursuant to the provisions of clause 2(l)(2)(b) of rule XI 
of the House of Representatives, the results of each rollcall 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             ROLLCALL NO. 1

    Date: July 29, 1997.
    Measure: Treasury, Postal Service and General Government 
Appropriations Bill, FY 1998.
    Motion by: Mr. Hoyer.
    Description of Motion: To delete certain conditions in the 
bill regarding the obligation of $4.2 million for the Federal 
Election Commission.
    Results: Rejected 18 yeas to 32 nays.
        Members Voting Yea            Members Voting Nay
Ms. DeLauro                         Mr. Aderholt
Mr. Edwards                         Mr. Bonilla
Mr. Fazio                           Mr. Callahan
Mr. Hefner                          Mr. Cunningham
Mr. Hoyer                           Mr. DeLay
Miss Kaptur                         Mr. Dickey
Mrs. Lowey                          Mr. Frelinghuysen
Mrs. Meek                           Mr. Istook
Mr. Moran                           Mr. Kingston
Mr. Obey                            Mr. Knollenberg
Mr. Olver                           Mr. Kolbe
Mr. Pastor                          Mr. Lewis
Mr. Price                           Mr. Livingston
Mr. Sabo                            Mr. McDade
Mr. Serrano                         Mr. Miller
Mr. Skaggs                          Mr. Mollohan
Mr. Wolf                            Mr. Murtha
Mr. Yates                           Mr. Nethercutt
                                    Mr. Neumann
                                    Mrs. Northrup
                                    Mr. Packard
                                    Mr. Parker
                                    Mr. Porter
                                    Mr. Regula
                                    Mr. Rogers
                                    Mr. Skeen
                                    Mr. Taylor
                                    Mr. Tiahrt
                                    Mr. Walsh
                                    Mr. Wamp
                                    Mr. Wicker
                                    Mr. Young
                          Full Committee Votes

    Pursuant to the provisions of clause 2(l)(2)(b) of rule XI 
of the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             ROLLCALL No. 2

    Date: July 31, 1997.
    Measure: Treasury, Postal Service, and General Government 
Appropriations Bill, FY 1998.
    Motion by: Mr. Aderholt.
    Description of Motion: To require that the results 
(including all underlying data and supplementary materials) of 
Federally sponsored research be made available for public use 
and inspection with certain exemptions.
    Results: Rejected 19 yeas to 34 nays.
        Members Voting Yea            Members Voting Nay
Mr. Aderholt                        Mr. Bonilla
Mr. Callahan                        Ms. DeLauro
Mr. Cunningham                      Mr. Edwards
Mr. DeLay                           Mr. Fazio
Mr. Dickey                          Mr. Foglietta
Mr. Frelinghuysen                   Mr. Forbes
Mr. Hobson                          Mr. Hefiner
Mr. Istook                          Mr. Hoyer
Mr. Kingston                        Miss Kaptur
Mr. Latham                          Mr. Knollenberg
Mr. Mollohan                        Mr. Kolbe
Mr. Nethercutt                      Mr. Lewis
Mr. Neumann                         Mr. Livingston
Mrs. Northup                        Mrs. Lowey
Mr. Parker                          Mrs. Meek
Mr. Taylor                          Mr. Miller
Mr. Tiahrt                          Mr. Moran
Mr. Wamp                            Mr. Olver
Mr. Wicker                          Mr. Packard
                                    Mr. Pastor
                                    Ms. Pelosi
                                    Mr. Porter
                                    Mr. Price
                                    Mr. Rogers
                                    Mr. Sabo
                                    Mr. Serrano
                                    Mr. Skaggs
                                    Mr. Skeen
                                    Mr. Stokes
                                    Mr. Torres
                                    Mr. Visclosky
                                    Mr. Walsh
                                    Mr. Wolf
                                    Mr. Yates
                          Full Committee Votes

    Pursuant to the provisions of clause 2(1)(2)(b) of rule XI 
of the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             rollcall no. 3

    Date: July 31, 1997.
    Measure: Treasury, Postal Service, and General Government 
Appropriations Bill, FY 1998.
    Motion by: Mrs. Lowey.
    Description of Motion: To delete the prohibitions in the 
bill on the use of funds for abortions in connection with any 
Federal employee health benefit plan.
    Results: Rejected 21 yeas to 26 nays.
        Members Voting Yea            Members Voting Nay
Ms. DeLauro                         Mr. Aderholt
Mr. Fazio                           Mr. Callahan
Mr. Frelinghuysen                   Mr. Cunningham
Mr. Hefner                          Mr. Dickey
Mr. Hoyer                           Mr. Edwards
Mr. Kolbe                           Mr. Forbes
Mrs. Lowey                          Mr. Hobson
Mrs. Meek                           Mr. Istook
Mr. Miller                          Miss Kaptur
Mr. Moran                           Mr. Knollenberg
Mr. Obey                            Mr. Latham
Mr. Olver                           Mr. Lewis
Mr. Pastor                          Mr. Livingston
Ms. Pelosi                          Mr. Mollohan
Mr. Porter                          Mr. Neumann
Mr. Sabo                            Mrs. Northup
Mr. Serrano                         Mr. Packard
Mr. Skaggs                          Mr. Regula
Mr. Stokes                          Mr. Rogers
Mr. Torres                          Mr. Skeen
Mr. Visclosky                       Mr. Taylor
                                    Mr. Tiahrt
                                    Mr. Walsh
                                    Mr. Wamp
                                    Mr. Wicker
                                    Mr. Wolf
                          Full Committee Votes

    Pursuant to the provisions of clause 2(l)(2)(b) of rule XI 
of the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             rollcall No. 4

    Date: July 31, 1997.
    Measure: Treasury, Postal Service, and General Government 
Appropriations Bill, FY 1998.
    Motion by: Mr. Regula.
    Description of Motion: To report the bill, to authorize the 
Chairman to seek a rule, and to authorize the Chairman to move 
that the House disagree to the amendments of the Senate and 
agree to the conference requested by the Senate.
    Results: Adopted 42 yeas to 5 nays.
        Members Voting Yea            Members Voting Nay
Mr. Aderholt                        Ms. DeLauro
Mr. Bonilla                         Mrs. Lowey
Mr. Callahan                        Mr. Neumann
Mr. Cunningham                      Mr. Obey
Mr. DeLay                           Ms. Pelosi
Mr. Dickey
Mr. Edwards
Mr. Fazio
Mr. Forbes
Mr. Frelinghuysen
Mr. Hefner
Mr. Hobson
Mr. Hoyer
Miss Kaptur
Mr. Knollenberg
Mr. Kolbe
Mr. Latham
Mr. Lewis
Mr. Livingston
Mrs. Meek
Mr. Miller
Mr. Mollohan
Mr. Nethercutt
Mrs. Northup
Mr. Olver
Mr. Packard
Mr. Pastor
Mr. Porter
Mr. Price
Mr. Regula
Mr. Rogers
Mr. Sabo
Mr. Serrano
Mr. Skaggs
Mr. Skeen
Mr. Taylor
Mr. Torres
Mr. Visclosky
Mr. Walsh
Mr. Wamp
Mr. Wicker
Mr. Wolf



ADDITIONAL VIEWS OF HON. STENY H. HOYER, HON. CARRIE P. MEEK, AND HON. 
                             DAVID E. PRICE

    This year's Treasury/Postal Appropriations Bill makes a 
measured and responsible effort to allocate sufficient funds to 
each of the Agencies covered by the bill so that they can carry 
out the duties assigned to them in an effective way. Unlike 
last year's House passed bill, which severely underfunded the 
Internal Revenue Service, this year's bill, although below the 
President's request, does provide for a substantial increase in 
funding over 1997 levels and provides funds for Tax Systems 
Modernization, which is an essential effort.
    We recognize that the 602b allocation for this subcommittee 
requires an overall reduction of almost $600 million from the 
Administration's requested funding levels for FY 1998. Within 
this funding restriction, we believe that this bill provides 
funding for the highest priority programs at reasonable levels.
    Although some belt-tightening may be required for law 
enforcement agencies, funding for Treasury's law enforcement 
activities totals $3.4 billion, approximately the 
Administration's request for 1998, and includes important 
increases for these activities. We regret that we are not able 
to fund a move to new headquarters in the Washington region for 
the Bureau of Alcohol, Tobacco and Firearms, but we are aware 
of their need for new space and will try to address it in the 
future.
    This bill also includes funding for anti-drug activities 
totaling $1.6 billion which will be coordinated by the 
President's Adviser on National Drug Control Policy, including 
$195 million for a new National Media Campaign aimed at curbing 
drug use among youth and $10 million to implement the Drug Free 
Communities Act of 1997.
    The Committee has not provided full funding for the IRS, 
but has attempted to address IRS's most pressing funding needs. 
Under both Democratic and Republican leadership, this Committee 
has expressed its grave concern about the efficiency and 
effectiveness with which the IRS was being administered. In 
particular, this Committee has been very concerned about the 
failure of IRS to successfully adopt and implement a plan for 
Tax Systems Modernization. In fact, the Committee has been very 
disappointed with the continuing observations made by the 
General Accounting Office that substantial monies appropriated 
to this effort have not been spent effectively and that an 
architecture for accomplishing the modernization had not been 
put in place.
    Historically, the efficiency of management at the Internal 
Revenue Service had not been a focus of the Treasury 
Department. In fact, seldom, if ever, have Secretaries of the 
Treasury focused on this issue. As a result of the frustration 
that this Committee has articulated over the last four (4) 
years the Treasury Department is now in the process of 
effectively addressing this issue. Secretary Rubin and Deputy 
Secretary Summers have both spent substantial time and taken 
steps to ensure that the IRS is managed in an effective manner 
and that the Tax Systems Modernization effort is pursued 
successfully. This is welcome news for the Committee and the 
American tax payer. The minority takes this opportunity to 
congratulate Secretary Rubin and Deputy Secretary Summers on 
their determination to ensure that the Internal Revenue Service 
is managed well from the standpoint of its efficiency and its 
fairness.
    The minority notes that there has been recently issued a 
report of the National Commission on Restructuring the Internal 
Revenue Service entitled ``A Vision For A New IRS.'' The 
minority believes that there are a number of excellent 
recommendations made in that Report and believes that many of 
its observations and recommendations have a great deal of 
merit. Indeed, many of the findings and recommendations have 
been articulated in previous reports of this Committee. With 
respect to Tax Systems Modernization in particular, we believe 
that Treasury and the IRS have turned the corner on a program 
that has been troubled for many years and we expect that the 
Secretary of the Treasury and his deputy will continue to focus 
on this effort to ensure its success. Obviously, it is 
absolutely essential that our tax collection system be and be 
perceived as both fair and efficient, if we are to maintain and 
increase our high level of voluntary participation. The high 
percentage of voluntary compliance has been and continues to be 
a hallmark of the American tax system.
    In the Report mentioned above, ``A Vision For A New IRS'', 
the Commission stresses the importance of a stable funding 
stream for IRS. Unfortunately, the Congress' failure to provide 
for the funding levels agreed upon for tax enforcement has 
placed a great deal of stress on IRS management and employees. 
The Congress agreed in 1993 to provide for approximately 400 
million dollars per year over five (5) years to ensure that 
revenues due are, in fact, paid. The Committee has been aware 
of the fact that there are billions of dollars per year in 
revenues due that are not collected. This places a greater than 
necessary burden on those taxpayers who pay what they owe and 
encourages some to join the ranks of those who are not meeting 
their legal responsibilities. Pursuant to this bipartisan 
agreement, the IRS hired employees to carry out this objective. 
However, neither the Clinton Administration nor the Congress 
followed through on its commitment. This failure to fund tax 
law enforcement properly was done in spite of the fact that the 
increased enforcement efforts led to collections four to five 
times greater than the costs. As a result of this failure to 
maintain level and stable funding, IRS management has been 
faced with the necessity to RIF employees and to reduce 
enforcement levels below those which would ensure effective and 
fair collections.
    The Internal Revenue Service makes up more than half of the 
discretionary funding included in this bill. Its effectiveness 
is absolutely essential if we are to have the resources 
necessary to fund the vital functions of the federal 
government. In addition, its fairness, both actual and 
perceived, is critical if the taxpayers, through their 
representatives, are to provide it with the funds necessary so 
that they can do their job effectively and efficiently. As the 
Commissioners in ``A Vision For A New IRS'' stated our 
objective can be no less than ``a more taxpayer friendly IRS 
and a tax system which Americans can believe in and trust.'' 
Unfortunately, Congress' actions have not always been 
consistent with that objective. We are pleased, as stated 
above, that this bill reflects a more positive and useful 
approach.
    We disagree with the treatment of the Federal Election 
Commission in this bill. FEC is denied the ability to spend the 
funding it direly needs for investigations, because all 
additional funding is fenced to be used only for computer 
systems and only when new term limits have been established for 
FEC commissioners and when vacant commissioners' positions have 
been filled. These restrictions cripple the FEC's ability to 
pursue the significant workload increases from the campaign 
finance problems associated with the 1996 elections.
    At the same time, we share the view that the FEC has not 
maximized the efficiency of its operations. We would urge the 
commissioners to make a concerted effort to do so and to convey 
their plans to this committee in a concise and complete manner.
    We are concerned that funding for GSA is not provided in 
this bill at an adequate level to continue all major repairs 
and restoration activities. In addition, for the first time, we 
are not funding any new federal construction projects due to a 
shortfall in the Federal Buildings Fund.
    We are also concerned that the failure of the authorizing 
committees to act expeditiously on pressing issues has led to 
the inclusion of several authorizing provisions including, 
among others, the repeal of Section 1555 of the Federal 
Acquisition Streamlining Act, the change in implementation of 
certain import regulations concerning U.S. origin historic 
firearms, and amendments restricting the Postal Service's 
business operations. While we may disagree on the substance of 
these issues, we all believe appropriations bills are not 
generally appropriate substitutes for full hearings and 
consideration by the authorizing committees.
    We are disappointed that the bill contains a provision 
which restricts a federal employee's choice of a health care 
insurance plan by prohibiting ``federal funds'' from being used 
to purchase a policy which provides coverage for pregnancy 
termination, except in instances where the life of the mother 
is at risk, or where rape or incest were the cause of the 
pregnancy. It is our position that the federal funds used for 
the purpose of purchasing health care coverage for federal 
employees are a part of the employee's compensation package. 
Federal employees, like many other employees, receive 
compensation in the form of salary, health care benefits and 
retirement benefits. This is their money to use. They choose a 
health insurance plan, and a portion of that is paid for with 
their health coverage benefit. That money is no more ``federal 
funds'' than is their salary after they have received it. The 
choice of policies is the employee's alone. Therefore, the 
committee's premise that it is the employer's right to restrict 
the scope of coverage for legal medical services is wrong.
    Finally, we disagree with the level of micromanagement of 
the accounts for the Executive Office of the President, 
including the Executive Residence. The bill establishes new 
procedures and reporting requirements for the Executive 
Residence. This is the President's home, and it has been 
managed the same way, by the same professional staff, with the 
same procedures and accounting practices, for many years 
through both Democratic and Republican Presidencies. In 
addition, this bill fences information systems funding in each 
office pending Committee approval of an information systems 
modernization blueprint for the entire Executive Office. It is 
wrong for the Appropriations Committee to assume the expertise 
and authority to dictate to the Executive Office of the 
President how it should spend the funding needed for its own 
information systems.
    In conclusion, we wish to express our appreciation to 
Chairman Kolbe and the subcommittee staff for the constructive 
and inclusive way in which the subcommittee has operated this 
year. While there have been differences of opinion, as is 
expected, the process pursued in considering this bill has been 
open and fair.

                                   Steny Hoyer.
                                   Carrie P. Meek.
                                   David Price.

           ADDITIONAL VIEWS OF REPRESENTATIVE CARRIE P. MEEK

    I regret that the Committee has usurped the jurisdiction of 
the Committee on Government Reform and Oversight by completely 
repealing section 1555 of the Federal Acquisition Streamlining 
Act of 1994. Section 1555 permits State and local governments 
(including public hospitals and clinics) and Indian tribes to 
purchase products at the same price that the Federal government 
negotiates for its Federal supply schedule contracts. The 
emergency supplemental appropriations bill approved in June 
extends the moratorium on the implementation of this 
cooperative purchasing program through the end of this session 
of Congress so that the authorizing committee can decide what 
changes, if any, to make to this law.
    This cooperative purchasing program, if allowed to go 
forward, could lead to substantial savings for our public 
hospitals and clinics. For example, Jackson Memorial Hospital, 
the largest hospital in Miami, estimates that it could reduce 
its annual expenditures on pharmaceuticals alone by more than 
25 percent if it could take advantage of this program.
    There are legitimate concerns that the current version of 
this program could lead to higher prices for pharmaceuticals to 
the Veterans Administration (``VA''), as drug companies might 
raise their prices to the VA to offset the lower prices they 
would have to give local public hospitals and clinics.
    The Committee rejected, by a voice vote, my amendment that 
would address these concerns by establishing a modified version 
of this cooperative purchasing program for two groups of 
products: pharmaceuticals to treat life-threatening conditions 
and data processing equipment. The Chairman of the authorizing 
committee had asked us to continue the program for data 
processing equipment, and the Ranking Minority Member of the 
authorizing committee had asked us to continue the program for 
pharmaceuticals.
    My amendment modified the current law in two important 
ways. It provided that the cooperative purchasing program could 
go forward for pharmaceuticals only if the VA certified that it 
would not lead to higher drug prices for purchases by the 
Federal government. My amendment also said that participation 
by firms in this program would be completely voluntary; a firm 
would be able to sell pharmaceuticals and data processing 
equipment to the Federal government without having to give the 
same price to State and local entities.
    In conclusion, it would have been better for our 
financially strapped public hospitals and clinics if the 
Committee had sought to reform this cooperative purchasing 
agreement rather than simply repealing it.
                                                    Carrie P. Meek.

                                
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