[House Report 105-592]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-592
_______________________________________________________________________


 
 TREASURY, POSTAL SERVICE, AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 
                                  1999

                                _______
                                

 June 22, 1998.--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. 4104]

    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, 1999, and for 
other purposes.

                        INDEX TO BILL AND REPORT

_______________________________________________________________________


                                                            Page number

                                                            Bill Report
Summary of the Bill........................................
                                                                      1

                   TITLE I--DEPARTMENT OF THE TREASURY

Automation Enhancement.....................................     3
                                                                      8
Bureau of Alcohol, Tobacco and Firearms....................    10
                                                                     20
Bureau of Engraving and Printing...........................
                                                                     29
Bureau of the Public Debt..................................    15
                                                                     30
Debt Collection Improvement Account........................
                                                                     19
Departmental Offices.......................................     3
                                                                      5
Federal Law Enforcement Training Center....................     7
                                                                     16
Financial Crimes Enforcement Network.......................     4
                                                                     12
Financial Management Service...............................     9
                                                                     18
General Provisions--Internal Revenue Service...............    19
                                                                     35
General Provisions--Treasury Department....................    22
                                                                     36
Internal Revenue Service...................................    16
                                                                     31
Joint Financial Management Improvement Program.............
                                                                     12
Office of Inspector General................................     4
                                                                     10
Office of Professional Responsibility......................     3
                                                                      7
Treasury Buildings and Annex Repair and Restoration........     4
                                                                     11
Treasury Forfeiture Fund...................................
                                                                     13
United States Customs Service..............................    12
                                                                     24
United States Mint.........................................
                                                                     30
United States Secret Service...............................    20
                                                                     35
Violent Crime Reduction Programs...........................     5
                                                                     14

                        TITLE II--POSTAL SERVICE

Payment to the Postal Service Fund.........................    25
                                                                     38

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

Compensation of the President and the White House Office...    26
                                                                     41
Council of Economic Advisers...............................    31
                                                                     45
Executive Residence at the White House.....................    27
                                                                     43
Federal Drug Control Programs..............................    34
                                                                     51
Information Technology Systems and Related Expenses........    36
                                                                     54
National Security Council..................................    31
                                                                     46
Office of Administration...................................    31
                                                                     46
Office of Management and Budget............................    32
                                                                     47
Office of National Drug Control Policy.....................    33
                                                                     50
Office of Policy Development...............................    31
                                                                     45
Special Assistance to the President and Official Residence 
    of the Vice President..................................    30
                                                                     44
Unanticipated Needs........................................    38
                                                                     53

                     TITLE IV--INDEPENDENT AGENCIES

Committee for Purchase from People who are Blind or 
    Severely Disabled......................................    38
                                                                     55
Federal Election Commission................................    38
                                                                     56
Federal Labor Relations Authority..........................    39
                                                                     57
General Services Administration............................    40
                                                                     57
John F. Kennedy Assassination Records Review Board.........
                                                                     67
Merit Systems Protection Board.............................    56
                                                                     67
National Archives and Records Administration...............    56
                                                                     68
Office of Government Ethics................................    58
                                                                     71
Office of Personnel Management.............................    58
                                                                     72
Office of Special Counsel..................................    62
                                                                     75
Payment to the Morris K. Udall Scholarship and Excellence 
    in National Environmental Policy Trust Fund............
                                                                     68
Payment to the Environmental Dispute Resolution Fund.......
                                                                     68
United States Tax Court....................................    62
                                                                     76

                      TITLE V--GENERAL PROVISIONS

This Act...................................................    63
                                                                     76

              TITLE VI--GOVERNMENTWIDE GENERAL PROVISIONS

Departments, Agencies, and Corporations....................    70
                                                                     77
Compliance with House Rules................................
                                                                     81
Tables.....................................................

Summary of the Total Bill..................................


    The accompanying bill contains recommendations for new 
budget (obligational) authority for fiscal year 1999 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 
1998:

                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                    Budget                                      
                                                 New budget      estimates of                     Bill compared 
                                                (obligation)         new                         with new budget
                   Agency                        authority      (obligational)   Recommended in     authority   
                                                fiscal year       authority,        the bill       fiscal year  
                                              1998 enacted to    fiscal year                           1998     
                                                    date             1999                                       
----------------------------------------------------------------------------------------------------------------
Treasury....................................       11,378,484       12,143,927       11,533,513         +155,029
Postal Service..............................           86,274          100,195           71,195          -15,079
Executive Office of the President...........          568,925          631,251          581,451          +12,526
Emergency Funding...........................                0                0        2,250,000       +2,250,000
Independent agencies........................       13,292,084       13,964,116       14,430,140       +1,138,055
Scorekeeping adjustments....................          259,311          354,000          340,000          +80,689
      Grand total...........................       25,585,078       27,193,489       29,206,299       +3,621,220
----------------------------------------------------------------------------------------------------------------

                             RECOMMENDATION

    The Committee recommends a total of $15.6 billion in 
discretionary resources for agencies under its jurisdiction; 
this includes $2.25 billion in emergency funding for ensuring 
information technology systems are Year 2000 compliant and $143 
million for the Earned Income Tax Credit Compliance initiative. 
After scorekeeping adjustments, and excluding the emergency 
appropriation, the Committee's recommendation is above fiscal 
year 1998 by $603 million in budget authority; it is also below 
the President's request by $237 million in budget authority and 
$659 million in outlays.

                           GENERAL STATEMENT

    Over the past several years, and in cooperation with the 
agencies and departments under the jurisdiction of the Treasury 
Subcommittee, the Committee has focused its attention on 
eliminating programs and activities that outlived their 
usefulness, were mismanaged, or were simply not a priority 
under existing budgetary constraints. Although the Committee 
believes there remain opportunities for agencies to achieve 
additional savings and economies of scale, for the most part, 
funding levels are at a point where reductions below the 
current services level will cut into core missions of agencies 
under the subcommittee's jurisdiction. Despite the increase 
received by the subcommittee in its fiscal year 1999 section 
302(b) allocation, the Committee was faced with very difficult 
choices. Approximately 90 percent of the activities funded 
under this bill are devoted to the salaries and expenses of 
approximately 163,000 full time employees, employees who are 
responsible for administering critical programs such as drug 
interdiction, the collection of revenue, presidential 
protection, violent crime reduction, and federal financial 
management. The Committee notes that approximately $300 million 
of the increase provided in the 302(b) allocation is needed to 
maintain programs and activities at the current services level 
for the Department of the Treasury. In many instances, it was 
difficult for the subcommittee to fund several important 
initiatives, most notably within the area of drug interdiction 
and IRS reform.
    Over the past several months, two critical pieces of 
legislation have been considered by the House of 
Representatives with relevance to the operations of programs 
under the subcommittee's jurisdiction: H.R. 2676, IRS 
Restructuring and Reform, and H.R. 3809, the Drug Free Borders 
Act of 1998. In the case of IRS Restructuring, it is estimated 
that implementation of the House passed bill would require an 
additional $130 million in discretionary resources for 
personnel and related costs. In the case of the Drug Free 
Borders Act, according to the Congressional Budget Office, $2.0 
billion has been authorized for Customs Service operations, 
approximately $500 million over the amounts appropriated in 
fiscal year 1998. Unfortunately, in both instances, although 
the authorized activities and programs are both urgent and 
meritorious, the proposed funding levels have placed 
expectations on the subcommittee that simply cannot be met. 
With the exception of modest increases for IRS reform, the 
Committee was unable to fund these pending authorizations.

                        Treasury Law Enforcement

    The Committee remains disappointed in the Administration's 
apparent indifference to the critical functions and operations 
of the various Treasury law enforcement bureaus. The current 
national war on drugs has resulted in an enormous disparity 
between the resources and emphasis given to federal law 
enforcement under the umbrella of the Department of the 
Treasury and those provided to the Department of Justice. Since 
fiscal year 1994, funding for the Department of Justice has 
grown by nearly 75 percent, whereas funding for the Department 
of Treasury has remained relatively constant. Personnel for 
Justice has grown by 34 percent over the same period of time, 
but not at all for Treasury. Although the Committee understands 
the role Congress plays in the allocation of resources to these 
agencies, the Administration has failed to propose an equitable 
allocation of resources in their budgets. For instance, for 
fiscal year 1999, the Administration requests an additional 
1,000 border patrol agents for the Immigration and 
Naturalization Service but only 119 new agents for the Customs 
Service. Ultimately, these funding levels have resulted in a 
federal law enforcement effort that lacks full integration and 
coordination of our assets. The Committee strongly recommends 
that the Administration review the allocation of federal law 
enforcement resources and submit a fiscal year 2000 budget that 
acknowledges the critical role of Treasury law enforcement.

             REPROGRAMMING AND TRANSFER OF FUNDS GUIDELINES

    Due to continuing issues associated with agency requests 
for reprogrammings, transfers, and the use of unobligated 
balances, the following guidelines shall be complied with by 
all agencies funded by the Treasury, Postal Service and General 
Government Appropriations Act, 1999:
          1. Except under extraordinary and emergency 
        situations, the Committees on Appropriations will not 
        consider requests for a reprogramming or a transfer of 
        funds, or use of unobligated balances, which are 
        submitted after the close of the third quarter of the 
        fiscal year, June 30;
          2. Clearly stated and detailed documentation 
        presenting justification for the reprogramming, 
        transfer, or use of unobligated balances shall 
        accompany each request;
          3. For agencies, departments, or offices receiving 
        appropriations in excess of $20,000,000, a 
        reprogramming shall be submitted if the amount to be 
        shifted to or from any object class, budget activity, 
        program line item, or program activity involved is in 
        excess of $500,000 or 10 percent, whichever is greater, 
        of the object class, budget activity, program line 
        item, or program activity;
          4. For agencies, departments, or offices receiving 
        appropriations less than $20,000,000, a reprogramming 
        shall be submitted if the amount to be shifted to or 
        from any object class, budget activity, program line 
        item, or program activity involved is in excess of 
        $50,000, or 10 percent, whichever is greater, of the 
        object class, budget activity, program line item, or 
        program activity;
          5. For any action where the cumulative effect of 
        below threshold reprogramming actions, or past 
        reprogramming and/or transfer actions added to the 
        request, would exceed the dollar threshold mentioned 
        above, a reprogramming shall be submitted;
          6. For any action which would result in a major 
        change to the program or item which is different than 
        that presented to and approved by either of the 
        Committees, or the Congress, a reprogramming shall be 
        submitted;
          7. For any action where funds earmarked by either of 
        the Committees for a specific activity are proposed to 
        be used for a different activity, a reprogramming shall 
        be submitted; and,
          8. For any action where funds earmarked by either of 
        the Committees for a specific activity are in excess to 
        meet the project or activity requirement, and are 
        proposed to be used for a different activity, a 
        reprogramming shall be submitted.
    Additionally, each request shall include a declaration 
that, as of the date of the request, none of the funds included 
in the request have been obligated, and none will be obligated, 
until the Committees on Appropriations have approved the 
request.

                  TITLE I--DEPARTMENT OF THE TREASURY

                          Departmental Offices

                         Salaries and Expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............      $114,771,000
Budget estimate, fiscal year 1999.....................       123,846,000
Recommended in the bill...............................       122,889,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        +8,118,000
    Budget Estimate, fiscal year 1999.................          -957,000
                                                                        

                                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 the development of 
financial policy; representing the United States on 
international monetary, trade and investment issues; overseeing 
Treasury Department international operations; and directing the 
administrative operations of the Treasury Department.

                             RECOMMENDATION

    The Committee recommends $122,889,000 for Departmental 
Offices, $957,000 below the budget request and $8,118,000 above 
the amount appropriated in fiscal year 1998. The amount 
provided includes: $3,704,000 to maintain current services; an 
additional $470,000 for the Office of Tax Policy; an additional 
$255,000 for the Office of Economic Policy; an additional 
$499,000 for International Affairs Policies and Programs; an 
additional $801,000 for Enforcement Policies and Programs; an 
additional $866,000 for the Office of Foreign Assets Control; 
and an additional $239,000 for Fiscal and Financial Policies 
and Programs. The Committee has also provided 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.
    The budget request for Departmental Offices contained 
$2,000,000 for work associated with efforts to ensure that the 
Department's computer systems will be Year 2000 compliant. The 
Committee recommends that those resource needs be provided 
within the amount appropriated for the emergency appropriation, 
``Funds Appropriated to the President, Information Technology 
Systems and Related Expenses.'' The Committee includes a new 
provision providing compensation for losses incurred due to the 
denial of entry into the U.S. of certain firearms.

              World Bank Intellectual Property Compliance

    The Committee is concerned that World Bank lending and 
procurement procedures fail to address illegal software use 
within projects funded by the Bank and believes that the World 
Bank should promote international copyright law and trade-
related treaty obligations. Therefore, the Committee urges the 
Secretary of the Treasury to instruct the U.S. Executive 
Directors of multilateral development banks to use the voice 
and vote of the United States to advocate adoption of 
procurement and lending guidelines that prohibit borrowers and 
other recipients of bank funds from reproducing, distributing, 
or using illegal copies of computer software in multilateral 
development bank financed projects.

                 Office of Professional Responsibility

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............        $1,250,000
Budget estimate, fiscal year 1999.....................         1,654,000
Recommended in the bill...............................         1,250,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................  ................
    Budget Estimate, fiscal year 1999.................          -404,000
                                                                        

                                MISSION

    This appropriation provides salaries and expenses for the 
oversight of internal affairs investigations within Treasury 
law enforcement bureaus. The Office assists the Under Secretary 
for Enforcement in overseeing and managing Treasury enforcement 
bureaus and offices, as well as standardizing and streamlining 
enforcement policies and procedures.

                             RECOMMENDATION

    The Committee recommends $1,250,000 for the Office of 
Professional Responsibility (OPR), $404,000 below the amount 
requested by the President and the same as the amount 
appropriated in fiscal year 1998. The Committee created OPR in 
fiscal year 1997 because of existing and significant weaknesses 
in management information and expertise at the Departmental 
level. It was anticipated that OPR would help fill the gap 
between policy and management oversight, and thus help reduce 
the incidence and severity of management breakdowns that had 
detracted from optimal performance of Treasury's law 
enforcement mission. The Committee is disappointed in the delay 
in fully staffing the proposed 13-person office. While the 
Committee is aware that delays may have been beyond the control 
of the Office of the Under Secretary, they appear, when 
considered along with the request for a $6,000,000 integrity 
program in the Customs Service appropriation, to reduce the 
urgency to fully fund this account. The Committee also expects 
that the Department will have unobligated balances at the end 
of fiscal year 1998, and will reprogram approximately $350,000, 
as it did this year, to augment its appropriation. Therefore, 
the Committee maintains funding at the current year level.

    criminal investigator personnel recruitment and personnel issues

    The Committee received the ``Hay Report'' on Criminal 
Investigator Personnel Issues that Treasury contracted for 
pursuant to the Conference Report of Public Law 104-208, and 
would encourage the Department to pursue the results of that 
report by offering some proposals for statutory remedies that 
could improve the recruitment, training, and management of 
Treasury Department criminal investigators. The Committee is 
strongly supportive of this effort to improve the overall 
quality of the personnel system for investigators in the 
Department and ensure that Treasury can attract the strongest 
candidates and ensure the best environment for developing the 
finest criminal investigator force in the federal government. 
The Committee therefore requests that the Department and 
bureaus continue to inform the Committee of any plans to 
implement proposals contained in the report.
    In addition, the Hay Report also mentioned the need for 
analysis of the problem of a ``retirement bubble'' in Treasury 
law enforcement. As the potential budgetary impact of a large 
cohort of retiring agents is very significant, the Committee 
urges the Department to review this issue and report to the 
Committee by May 1, 1999 on the status of workforce planning 
for the Department as a whole and any specific legislative or 
administrative actions that might be required.

                         AUTOMATION ENHANCEMENT

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $61,389,000
Budget estimate, fiscal year 1999.....................        33,952,000
Recommended in the bill...............................        31,190,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................       -30,199,000
    Budget Estimate, fiscal year 1999.................        -2,762,000
                                                                        

                                MISSION

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

                             RECOMMENDATION

    The Committee recommends a total of $31,190,000 for the 
continued development and acquisition of automatic data 
processing equipment, software, and services for the Department 
of the Treasury, $2,762,000 below the amount requested by the 
President and $30,199,000 below the amounts appropriated in 
fiscal year 1998. The Committee recommends that additional 
funds of $2,762,000 for year 2000 compliance efforts be 
provided within the amount appropriated for the emergency 
appropriation, ``Funds Appropriated to the President, 
Information Technology Systems and Related Expenses.'' Of the 
funds provided through the Automation Enhancement account, 
funds will remain available for two years and may be 
transferred to accounts and in amounts as needed to satisfy the 
requirements of the Department and its offices, bureaus and 
organizations and will be in addition to those amounts 
otherwise appropriated in the Act to such entities.
    The funds should be transferred as follows:
    Customs Service.--$8,000,000 for the Automated Commercial 
Environment (ACE).
    Bureau of Alcohol, Tobacco, and Firearms.--$3,700,000 for a 
human resources system re-engineering pilot program.
    Departmental offices.--$19,490,000, of which the Committee 
recommends $5,400,000 for the International Trade Data System, 
$6,577,000 for Department-wide human resources re-engineering 
program management and implementation, $3,813,000 for 
Departmental Offices productivity enhancement, $1,000,000 for 
the Foreign Credit Reporting System, $1,500,000 for the 
Simplified Tax and Wage Reporting System (STAWRS), $1,000,000 
for the Treasury Vehicle Management System, and $200,000 for 
Department-wide implementation of the Treasury Information 
System Architecture Framework (TISAF).

                 Automated Commercial Environment (ACE)

    The Committee has closely followed progress being made by 
the Department and the Customs Service in developing its 
enterprise information systems architecture (EISA), which is 
expected to be finished by the end of fiscal year 1998. The 
Department, together with the Customs Service, has also 
instituted essential management controls and procedures as it 
proceeds with the development of prototype stages of the ACE 
project, which are beginning to be implemented in fiscal year 
1998. These include ongoing oversight by the Treasury Chief 
Information Officer, regular review by the Customs Service and 
Department Investment Review Boards, stronger internal funding 
controls, and the development of realistic milestones. The 
Committee strongly supports this level of oversight, given the 
high life cycle cost associated with the ACE project--estimated 
to exceed $1,000,000,000 by fiscal year 2008--and the potential 
risks of proceeding with information technology investments of 
such magnitude.
    The General Accounting Office (GAO) has reported on the 
elements of the EISA that need to be completed. To date, 
Customs has defined in their EISA only 29 of their 79 business 
functions. While much work has been done in the trade 
compliance business area, the Customs-wide work must be 
completed. GAO also notes that an architecture, once completed, 
must also be enforced when information systems are being 
designed, built, and operated. The Committee strongly urges 
Customs, together with the Treasury Department, to complete the 
EISA work this year, and have in place the necessary controls 
to ensure that investments and operations will conform with the 
EISA. Until that is done, uncertainty will remain about how 
ACE, and for that matter any major information system 
investment, fits within Customs' six major business areas. Only 
with an EISA in place and enforced can Customs be certain that 
ACE and other systems effectively support Customs' business 
needs, and avoid system redundancy, incompatibility, and 
excessive costs. The Committee therefore retains a fence on 
obligating any of these funds until the EISA has been completed 
and procedures for ensuring compliance are in place. This is 
not a new requirement. The Committee has consistently said that 
development of an EISA is a priority.
    Beyond progress on architecture development and general 
oversight, the Committee continues to have reservations about 
the ACE project. First, the Committee needs assurance that the 
Department and the Customs Service have the necessary 
management structures and technical resources needed to develop 
information technology systems and software, and to ensure the 
security of such systems and the information they contain, 
whether this is done in-house or through external contracts. 
Second, the overall pace and schedule for ACE development seems 
to be heavily dependent on a stream of funding that may be 
uncertain. At present, the Department and the Customs Service 
have requested $8,000,000 from the Automation Enhancement 
appropriation, but also $48,000,000 to be made available 
through an increase in the merchandise processing fee. In the 
absence of additional funding from that fee or from 
appropriations, it is not clear that Customs can keep to its 
current estimated schedule--which calls for as much as 
$90,000,000 to be obligated in fiscal year 1999. There seems to 
be a disconnect between the levels of funding available, 
requested, and required to meet the proposed target for 
completion by fiscal year 2005. Finally, the Committee is 
concerned that ACE planning may be proceeding independently of 
Treasury Department efforts to develop, on a multi-agency 
basis, the International Trade Data System (ITDS), with little 
coordination between the two projects. The Committee therefore 
directs the Department, with the Customs Service, to report to 
the Committee by December 1, 1998 on what steps, if any, are 
being taken to coordinate ITDS and ACE development.

                    International Trade Data System

    The Committee provided fiscal year 1998 funding for ITDS 
with the expectation that the result would be a completed 
model, with implementation to be carried out by individual 
agencies. This approach was subsequently modified, with 
Treasury requesting funding for fiscal year 1999 to begin 
creating the system to be implemented government-wide. In order 
for the Committee to understand the plans for ITDS 
implementation, it directs the Department to report by December 
1, 1998 on (1) the timeline for completion, (2) funding 
requirements, and (3) any legislative or policy actions 
necessary. In addition, the Committee directs that the 
Department complete the Global Transpark Network Customs 
Information Project (GTPN/CIP) with an additional $1,500,000 
through the super surplus in the Treasury Forfeiture Fund.

                      Office of Inspector General

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $29,719,000
Budget estimate, fiscal year 1999.....................        30,678,000
Recommended in the bill...............................        30,678,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................          +959,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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, contract, 
and financial statement audit services. Contract audits provide 
professional advice to agency contracting officials on 
accounting and financial matters relative to negotiation, 
award, administration, repricing, and settlement of contracts. 
Program audits review and evaluate all facets of agency 
operations. Financial statement audits assess whether financial 
statements fairly present the agency's financial condition and 
results of operations, the adequacy of accounting controls, and 
compliance with laws and regulations. The investigative 
function provides for the detection and investigation of 
improper and illegal activities involving programs, personnel, 
and operations. This appropriation also provides for internal 
investigations made by the office of Internal Affairs and 
Inspection in the Bureau of Alcohol, Tobacco and Firearms, the 
Customs Service, and the Secret Service and, internal audits 
and internal investigations of the Inspection Service at the 
Internal Revenue Service.
    The Inspectors General Auditor Training Institute provides 
the necessary facilities, equipment, and support services for 
conducting auditor training for the Federal Government 
Inspector General community. Institute personnel develop and 
deliver instructional programs related to basic government 
audit skills. The cost of training is recovered by tuition 
charged to a student's agency.

                             Recommendation

    The Committee recommends $30,678,000 for the Office of 
Inspector General, the same as the budget request and $959,000 
above the amount appropriated in fiscal year 1998.

            Integrity Within the Inspector General's Office

    The role of the Inspector General is critical to the 
integrity and effectiveness of agency programs throughout the 
Federal government. Unfortunately, as recent reviews of the 
Department of the Treasury Inspector General's office have 
revealed, the very office within the Department that is charged 
with preventing and detecting fraud, waste, and abuse, was 
itself fraught with abuse. On January 30, 1998, the Permanent 
Subcommittee on Investigations of the Senate Committee on 
Governmental Affairs reported that the former Inspector General 
and members of her staff violated procurement laws and 
regulations, mislead Congress, and destroyed documents related 
to ongoing investigations. It is also clear that this Committee 
was the target of misleading testimony. The Committee finds 
this to be totally unacceptable and in the event that it is 
given misleading testimony again, the Office of Inspector 
General will be terminated.
    The Committee is pleased that the acting Inspector General 
and the Department have taken steps to see to it that these 
types of abuses are not repeated. However, the Committee 
believes that the selection of a new Inspector General is 
essential to restoring integrity to the Office of Inspector 
General and urges the Administration to move as quickly as 
possible to do so.

           Treasury Building and Annex Repair and Restoration

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $10,484,000
Budget estimate, fiscal year 1999.....................        27,000,000
Recommended in the bill...............................        27,000,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................       +16,516,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                MISSION

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

                             RECOMMENDATION

    The Committee recommends $27,000,000 for the Treasury 
Building and Annex and Repair appropriation, the same as the 
budget request and $16,516,000 more than the amount 
appropriated in fiscal year 1998. Due to budgetary constraints, 
the Committee has also included language in the bill which 
provides that the funds appropriated shall not be available for 
obligation until September 30, 1999. The funds provided for 
this account will be used by the Department to undertake a 
comprehensive modernization and renovation of the historic Main 
Treasury Building.

     PAYMENT TO THE JOINT FINANCIAL MANAGEMENT IMPROVEMENT PROGRAM

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............  ................
Budget estimate, fiscal year 1999.....................        $3,000,000
Recommended in the bill...............................  ................
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................  ................
    Budget Estimate, fiscal year 1999.................        -3,000,000
                                                                        

                                MISSION

    This program provides funding for the development of 
technical specifications for government-wide financial 
management systems and is under the direction of the Joint 
Financial Management Improvement Program Committee.

                             RECOMMENDATION

    The Committee has not provided a direct appropriation for 
the development of technical specifications for financial 
management systems as proposed by the Administration. Instead, 
the Committee has included a new general provision (section 
638) which permits the Administrator of General Services to use 
up to $3,000,000 in government-wide credit card rebates to fund 
this program.

                  Financial Crimes Enforcement Network

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $22,835,000
Budget estimate, fiscal year 1999.....................        24,000,000
Recommended in the bill...............................        24,000,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        +1,165,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                MISSION

    The Financial Crimes Enforcement Network (FinCEN) is 
responsible 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. As part of this work, FinCEN has 
been instrumental in encouraging and assisting in the 
establishment of Financial Intelligence Units (FIUs) in foreign 
countries. 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 intelligence to identify underlying criminal 
financial activity and emerging patterns of domestic and 
international money laundering; and enforcement--empowering 
Federal, State, local, and international agencies to take 
action against financial criminals through the transfer of 
information and expertise.

                             Recommendation

    The Committee recommends $24,000,000 for the Financial 
Crimes Enforcement Network appropriation, the same as the 
amount requested by the President and $1,165,000 above the 
amounts appropriated in fiscal year 1998. This level of funding 
will allow FinCEN to meet its current levels of operations.

                        Treasury Forfeiture Fund

                (limitation on availability of deposits)

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............  ................
Budget estimate, fiscal year 1999.....................  ................
Recommended in the bill...............................  ................
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................  ................
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                mission

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

                             recommendation

    The Committee has provided no appropriation for the 
Treasury Forfeiture Fund, as requested by the Administration.

           Super Surplus and the Secretary's Enforcement Fund

    The Committee is aware that amounts to be allocated to the 
Super Surplus, and the Secretary's Enforcement Fund, are 
determined only after mandatory costs have been met by the 
Treasury Forfeiture Fund. However, the Department has indicated 
that adequate Super Surplus funding should be available to fund 
$35,700,000 in programs for various law enforcement agencies in 
fiscal year 1999. The Committee supports use of the surplus and 
enforcement fund to augment Treasury law enforcement programs 
that the Department has indicated have a high priority, but, 
for reasons of limited budgetary resources, cannot be funded 
through direct appropriations. While the Department has 
indicated how it intends to use the minimum $35,700,000 it 
expects to have, the Committee directs that $1,500,000 be made 
available to the Global Transpark Network Customs Information 
Project, and that $5,512,000 be made available for the 
construction of a P-3 hangar in Corpus Christi, Texas for the 
United States Customs Service. The Committee wishes to be 
advised, prior to the obligation of funds, on the specific 
projects and activities to be supported by the balance of Super 
Surplus in fiscal year 1999.

                    Violent Crime Reduction Programs

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............      $131,000,000
Budget estimate, fiscal year 1999.....................       132,172,000
Recommended in the bill...............................       132,000,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................         1,000,000
    Budget Estimate, fiscal year 1999.................          -172,000
                                                                        

                                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 $132,000,000 for 
Violent Crime Reduction programs. This is $172,000 below the 
request and $1,000,000 above the amount appropriated in fiscal 
year 1998. Specific funding levels are as follows:

                                                                        
                                                                        
                                                                        
Bureau of Alcohol, Tobacco and Firearms:                                
    Administration of GREAT Program...................        $3,000,000
    GREAT grants and contracts with local government..        10,000,000
      Subtotal, ATF...................................        13,000,000
U.S. Customs Service:                                                   
    Non-Intrusive Inspection and Automated Targeting                    
 Systems..............................................        54,000,000
    Land Border Passenger Automation, Phase 2.........         9,500,000
    Outbound Lane Canopies, Phase 2...................           972,000
    Cyber-Smuggling Center, Anti-Child Pornography                      
 Program..............................................         2,000,000
      Subtotal, Customs...............................        66,472,000
U.S. Secret Service:                                                    
    Vehicle replacement...............................         6,700,000
    Anti-counterfeiting...............................         5,000,000
    Forensic Technologies and Assistance..............         2,000,000
    Support for the NCMEC.............................           828,000
      Subtotal, Secret Service........................        14,528,000
Interagency Crime and Drug Enforcement................        24,000,000
Office of National Drug Control Policy:                                 
    Counterdrug Technology Assessment Center..........        13,000,000
    Model State Drug Laws.............................         1,000,000
      Subtotal, ONDCP.................................        14,000,000
          Total.......................................       132,000,000
                                                                        

                             GREAT PROGRAM

    The Committee recommends $13,000,000, the same as the 
request and the fiscal year 1998 levels, to continue the Gang 
Resistance Education and Training (GREAT) program through the 
VCRTF, including $10,000,000 for grants to local law 
enforcement organizations and $3,000,000 for ATF administrative 
support. The Committee is interested in seeing the results of a 
longitudinal study of the GREAT program.

                 Office of National Drug Control Policy

                COUNTERDRUG TECHNOLOGY TRANSFER PROGRAM

    The Committee recommends $13,000,000 for the technology 
transfer program of the Counterdrug Technology Assessment 
Center (CTAC) of the Office of National Drug Control Policy 
(ONDCP). This is $13,000,000 more than requested, but equal to 
the fiscal year 1998 appropriation. This would continue the 
program initiated in fiscal year 1998 to transfer law 
enforcement technology to State and local law enforcement 
agencies. The Committee has been pleased to note the positive 
feedback from the field, and understands that the initial 
response from law enforcement agencies has far exceeded the 
resources currently available in this account. The Committee 
underscores its interest and its expectations that the Chief 
Scientist will submit a performance evaluation not later than 
18 months from the date of the first transfers, as well as a 
strategic plan for countrywide deployment of technology.

                          MODEL STATE DRUG LAW

    The Committee recommends $1,000,000 for continued funding 
of Model State Drug Law Conferences.

Drug Interdiction Efforts and Customs Resource Management Nonintrusive 
                        Inspection Technologies

    The Committee provides $54,000,000 for high and higher 
energy inspection technology, automated targeting systems, and 
a variety of other technologies. The Committee strongly urges 
the Customs Service to apply the most rigorous standards to 
these investments, considering them in terms of the multi-year 
Customs border technology initiative. The Committee is fully 
aware that Customs inspectors desperately need the ``force-
multiplier'' effect that such technology provides to begin to 
make an impact on the massive flow of drugs across our borders, 
particularly in dealing with such high-risk areas such as 
railway and sea container traffic. The Committee directs 
Customs to give full consideration to both established 
technologies as well as promising new ones that are arising 
from Defense Department research or experience in other 
countries or the private sector. Such technologies include 
variations on mobile or relocatable x-ray and gamma-ray 
detection systems as well as pulsed fast neutron analysis 
(PFNA).

               U.S. CUSTOMS SERVICE CYBERSMUGGLING CENTER

    The Committee recommends $2,000,000 for expanded support 
for the child pornography investigative capability of the U.S. 
Customs Cybersmuggling Center. This is $2,000,000 more than the 
request, and $1,673,000 more than funded in fiscal year 1998. 
This funding is intended to help Customs carry out its 
responsibilities to conduct child pornography and child sexual 
exploitation investigations pursuant to Title 18 U.S.C., 
Sections 2251-60 and 2243. The Committee is aware that the 
impact of internet crime has greatly expanded the workload for 
Customs investigators, and anticipates that this may be a 
growing area for future Customs investment.

                          U.S. SECRET SERVICE

    In addition to providing full funding of the 
Administration's request of $11,700,000 to continue vehicle 
replacement and counterfeiting programs of the U.S. Secret 
Service, the Committee recommends an additional $2,000,000 for 
the continued provision of forensic technology assistance to 
the National Center for Missing and Exploited Children (NCMEC). 
This program, initiated by the Committee in 1997, has led to a 
coordinated effort between the Secret Service and the NCMEC in 
its mission to locate and recover missing children. The 
Committee also recommends $828,000 for grant assistance to the 
NCMEC for the continued operation of the Exploited Child Unit, 
with obligations delayed until September 30, 1999. This is 
$2,828,000 more than requested, and $257,000 more than 
appropriated in fiscal year 1998. The Committee wishes to state 
its continued support for work of the NCMEC and the cooperation 
and expertise provided by the Secret Service.

                  FINANCIAL CRIMES ENFORCEMENT NETWORK

    The Committee denies without prejudice the $1,000,000 
requested under the Violent Crime Reduction Trust Fund for the 
Financial Crimes Enforcement Network. This funding was intended 
to support the Gateway system, a project to support access to 
FinCEN resources by federal, state, and local law enforcement; 
to improve capture and analysis of Suspicious Activity Report 
(SAR) data; and to develop a model for estimating the magnitude 
and character of money laundering. The Committee recommends 
that these initiatives be supported with funding from the 
Treasury Forfeiture Fund, provided there is an adequate super 
surplus.

                Federal Law Enforcement Training Center

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $64,663,000
Budget estimate, fiscal year 1999.....................        71,923,000
Recommended in the bill...............................        71,923,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................         7,260,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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, and in some cases, foreign 
government and private sector security personnel, on a space-
available basis.

                             RECOMMENDATION

    The Committee recommends $71,923,000 for the Federal Law 
Enforcement Training Center appropriation, the same as the 
amount requested by the President, and $7,260,000 above the 
fiscal year 1998 appropriation. This funding level will cover 
costs of annualized pay increases, basic training workload 
increases, master plan engineering and procurement, and U.S. 
participation in the International Law Enforcement Academies in 
South America and Budapest.

                       firearms training systems

    The Committee directs the Federal Law Enforcement Training 
Center to examine and evaluate all available firearms training 
technologies for systems providing the greatest cost effective 
multi-application benefit for firearms training of law 
enforcement personnel. The Committee is aware of current 
technologies, such as the BEAMHIT targeting system and plastic 
cased ammunition, which appear to offer cost benefits and 
systems flexibility for multiple training activities and 
greater sensitivity for environmental protection.

      ACQUISITION, CONSTRUCTION, IMPROVEMENTS AND RELATED EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $32,548,000
Budget estimate, fiscal year 1999.....................        28,360,000
Recommended in the bill...............................        28,360,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        -4,188,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                MISSION

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

                             Recommendation

    The Committee recommends $28,360,000 for the Acquisition, 
Construction, Improvements and Related Expenses appropriation, 
the same as the President's request and $4,188,000 below the 
fiscal year 1998 appropriation. This funding includes the costs 
of new dormitory and classroom buildings included in FLETC's 
current master plan. The need for this expansion continues, 
especially given the continued build-up of the U.S. Border 
Patrol.
    The Committee remains strongly committed to the principle 
of consolidated federal law enforcement training through FLETC. 
It therefore expects the Administration will strive to close 
the temporary training facility in Charleston, South Carolina 
and transfer those functions to FLETC at its Glynco, Georgia 
and Artesia, New Mexico facilities, in keeping with the 
memorandum of understanding between the Department of Justice 
and the Treasury Department that such actions should be 
completed in fiscal year 2001. The Committee directs the 
Department of the Treasury and the Office of Management and 
Budget to report to the Committee by March 1, 1999 on what 
progress is being made to complete this move.

                      Interagency Law Enforcement

                 INTERAGENCY CRIME AND DRUG ENFORCEMENT

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $73,794,000
Budget estimate, fiscal year 1999.....................        30,900,000
Recommended in the bill...............................        51,900,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................       -21,894,000
    Budget Estimate, fiscal year 1999.................       +21,000,000
                                                                        

                                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.

                             RECOMMENDATION

    The Committee recommends $51,900,000 for Interagency Crime 
and Drug Enforcement, together with $24,000,000 requested in 
the Violent Crime Reduction Trust Fund. Combined, these equal 
the total request level of $75,900,000.

                      Financial Management Service

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............      $207,790,000
Budget estimate, fiscal year 1999.....................       202,510,000
Recommended in the bill...............................       198,510,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        -9,280,000
    Budget Estimate, fiscal year 1999.................        -4,000,000
                                                                        

                                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.
    Pursuant to the Debt Collection Improvement Act of 1996, 
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 $198,510,000 for the Financial 
Management Service, $4,000,000 below the budget request and 
$9,280,000 below the amount appropriated in fiscal year 1998. 
The budget request for the Financial Management Service 
contained $4,000,000 for work associated with efforts to ensure 
that the Service's computer systems will be Year 2000 
compliant. The Committee recommends that these funds be 
provided within the amount appropriated for the emergency 
appropriation, ``Funds Appropriated to the President, 
Information Technology Systems and Related Expenses.''

                          YEAR 2000 COMPLIANCE

    In testimony before the Committee this year, the Secretary 
of the Treasury identified the Financial Management Service as 
a ``problem area'' with regard to the Department's efforts to 
make its information systems Year 2000 compliant. Given the 
nature of the Financial Management Service's mission, managing 
the collection of approximately $1.4 trillion in revenue for 
the Federal government and the systems that produce over 850 
million payments each year totaling over $1 trillion, it is one 
agency of the Federal government that cannot be permitted to 
fail in this regard. The Committee is pleased that the new 
Commissioner of the FMS has stated that assuring Year 2000 
compliance is currently the agency's highest priority. It is 
critical that the Financial Management Service continue to 
retain Year 2000 compliance as its highest priority until all 
conversion efforts are complete.

                  DEBT COLLECTION IMPROVEMENT ACCOUNT

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............  ................
Budget estimate, fiscal year 1999.....................        $3,000,000
Recommended in the bill...............................  ................
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................  ................
    Budget Estimate, fiscal year 1999.................        -3,000,000
                                                                        

                                MISSION

    The Debt Collection Improvement Account was established by 
the Debt Collection Improvement Act of 1996. The Act provides 
that 30 days after the end of a fiscal year, an agency may 
transfer to the Account a percentage of the amount of 
delinquent debt collected by the agency during the fiscal year. 
Amounts transferred to the Account shall be available to the 
Secretary of the Treasury, to the extent provided in 
appropriations acts, to reimburse agencies for expenditures 
associated with the improvement of credit management, debt 
collection, and debt recovery activities.

                             RECOMMENDATION

    The Committee has not provided authority for the Secretary 
of the Treasury to provide up to $3,000,000 from the Debt 
Collection Improvement Account to agencies for expenditures 
associated with the improvement of credit management, debt 
collection, and debt recovery activities.

                Bureau of Alcohol, Tobacco and Firearms

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............      $478,934,000
Budget estimate, fiscal year 1999.....................       544,324,000
Recommended in the bill...............................       530,624,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................       +51,690,000
    Budget Estimate, fiscal year 1999.................       -13,700,000
                                                                        

                                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, explosives, and arson. Its 
responsibilities are focused on reducing the future number and 
cost of violent crimes; collecting revenue, reducing payer 
burden and improving service while preventing diversion; and 
protecting the public and preventing consumer deception in 
ATF's regulated commodities.

                             RECOMMENDATION

    The Committee recommends $530,624,000 for the Bureau of 
Alcohol, Tobacco, and Firearms Salaries and Expenses 
appropriation, $13,700,000 below the request and $51,690,000 
over the fiscal year 1998 appropriation. The Committee denies a 
new initiative of $2,000,000 requested by the President to 
establish a Violent Crime Coordinator program. The Committee 
also denies, without prejudice, the request for $3,700,000 for 
replacement vehicles. The Administration's request of 
$3,000,000 for the management of the GREAT program is included 
in the Violent Crime Reduction Trust Fund. $5,000,000 of the 
request for information technology is expected to be funded 
through the Information Technology Systems and Related Expenses 
account. Additionally, $2,206,000 required and funded for radio 
replacement is not available for obligation until September 30, 
1999.

            youth crime gun interdiction initiative (ycgii)

    The Committee strongly supports efforts to stop the illegal 
trafficking of crime weapons to young people. However, the 
Committee has seen no persuasive evidence to date linking the 
YCGII--which has been underway in various forms for several 
years--to a corresponding decrease in gun trafficking among 
youths and minors. While there have been reductions in violent 
crime overall in some large cities, the Committee has seen no 
serious evaluations of YCGII performance. The proposed increase 
in the level of effort--a 131% increase in spending and a 100% 
increase in personnel--must be supported by hard evidence, not 
anecdotal information or testimonials, of a significant 
reduction in youth crime, gun trafficking and availability. The 
Committee therefore directs ATF to report not later than 
February 1, 1999 on the performance of YCGII, to include 
statistical information documenting its measurable impact, both 
on the nation as a whole and for each of the 27 cities in the 
program. Any future Committee decisions to fund this program 
will be based on how well YCGII performance justifies the 
costs.

                       BALLISTICS IMAGING SYSTEMS

    The Committee understands that the National Interagency 
Ballistics Imaging Network (NIBIN) has been established, 
representing ATF, the FBI, and a senior representative of local 
law enforcement, currently the Commissioner of Police for 
Boston. The Committee supports efforts to make current and 
future investments in ballistic imaging and identification 
systems productive, which means that State and local law 
enforcement agencies must be able to acquire systems that are 
interoperable and appropriate for their forensic requirements. 
In order to adequately perform its oversight function, the 
Committee requests that ATF provide regular information on the 
progress of NIBIN in reducing the unproductive competition 
between federal agencies over which system will be adopted 
locally. The Committee also feels that the CEASEFIRE system has 
been operational long enough to permit an assessment of its 
performance. The Committee therefore directs ATF to report by 
March 1, 1999 on its evaluation of CEASEFIRE performance, to 
include performance measures used and the strategic plan for 
continued development and integration of the CEASEFIRE program. 
At the same time, the Committee continues to regard the 
CEASEFIRE system as a technology with significant benefits for 
communities that experience major gun crime, and it supports 
the Treasury plan to fund an additional $3,000,000 of CEASEFIRE 
systems through the super surplus of the Treasury Forfeiture 
Fund.

                       WINE REGULATION PROCEDURES

    The Committee is aware that the ATF has been reviewing a 
petition to establish an American Viticultural Area (AVA) 
referred to as California Coastal, and that this petition was 
revised and submitted to ATF on May 5, 1998. The Committee is 
aware of the general categories of questions ATF would seek to 
answer in such a petition, but would be interested to know what 
criteria and standards ATF employs in regulatory decisions such 
as this one, and how long such decisions can take. The 
Committee encourages ATF to move with all deliberate speed to 
its decision on the request for a final rule in this case.

            atf firearms licensing and regulatory functions

    The Committee believes voluntary compliance by industry and 
law-abiding consumers is essential to achieving the Gun Control 
Act's objective to keep weapons out of hands of juvenile 
offenders and adult criminals. Voluntary compliance can only be 
assured by a responsive, professional, and technically-prepared 
regulatory system. The Committee is concerned that some of 
ATF's key systems for managing its firearms regulatory function 
need significant improvement and modernization to serve 
industry needs, render timely advice, communicate with the 
public, and monitor areas of responsibility, and that the Chief 
Counsel's office may be insufficiently staffed to fully serve 
the public, Congress, the industry and itself. The Committee 
therefore directs ATF to report on its performance in carrying 
out its regulatory functions under the Gun Control Act and the 
National Firearms Act, and include the report and any proposals 
for additional funding with the fiscal year 2000 budget 
submission.

    collection and maintenance of federal firearms licensee records

    ATF collects information on multiple handgun purchases, and 
purges information in that database within two years. However, 
data collected on the Federal Trace System have not been purged 
in over eight years of operation, although there is no 
justification for maintaining all records for that period of 
time. The Committee requested last year that ATF improve its 
practices related to the collection and maintenance of records 
on the acquisition and disposition for firearms and 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. The Committee is disappointed that ATF 
has not responded to this direction, and directs ATF to provide 
the Committee with this report within 90 days after enactment 
of this bill.

                 regulation of certain antique firearms

    The Committee has been made aware that Bureau of Alcohol, 
Tobacco, and Firearms (BATCF) regulations defining antique 
firearms may have an unintended adverse application to certain 
in-line muzzle loaders. The Committee direct BATF to report to 
the Committee recommendations to either administratively or 
legislatively correct any unintended application of such 
regulations.

                        firearms reference work

    In fiscal year 1998, the Committee directed the Treasury 
Department to provide $250,000 for production of a reference 
work on firearms and ammunition technology. The Committee 
understands that ATF is close to agreement on a contract to 
produce such a work, which may include references on CD-ROM and 
possibly other digital interfaces, and encourages ATF to 
complete this project as soon as practicable.

                       return of stolen firearms

    The Committee understands that there may have been 
instances where individuals who own a registered firearm 
subsequently 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 the subject firearm 
had not been seized as evidence or legally forfeited. The 
Committee also understands that ATF 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.

                         CONTRABAND CIGARETTES

    The Committee directs ATF to continue to fully fund its 
investigations of diversion and trafficking of contraband 
cigarettes, particularly on Indian lands. The Committee 
understands that the current investigation in Oklahoma and 
Kansas is estimated to cost up to $2,000,000, and that 
nationwide investigation will cost approximately $8,000,000. 
The Committee supports full funding of these investigations.

implementation of the national instant criminal background check system

    Later this year, the Federal Bureau of Investigation (FBI) 
will implement the national instant criminal background check 
system (NICS), pursuant to the provisions of 18 U.S.C. Section 
922(t). The FBI has proposed in regulation imposition of a fee 
for its use. In addition, in the case of items used as 
collateral to secure a loan, the Committee understands the NICS 
is applied at the time the owner attempts to redeem the item 
used as collateral. Where an owner of an item used as 
collateral to secure a loan attempts to redeem this item, the 
Committee directs the BATF to provide the direction to the 
Federal Bureau of Investigation about how to provide relief 
from imposition of these fees. The Committee also strongly 
urges the BATF to allow application of the NICS on these items 
at the time they are offered for general sale as collateral to 
secure a loan, rather than when the owner attempts to redeem 
the item. The Committee further requests the BATF to report 
back to the Committee within sixty days to offer its 
recommendation on how to provide such relief.

                 Laboratory Facilities And Headquarters

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $55,022,000
Budget estimate, fiscal year 1999.....................        32,000,000
Recommended in the bill...............................  ................
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................       -55,022,000
    Budget Estimate, fiscal year 1999.................       -32,000,000
                                                                        

                                MISSION

    This account provides funding for relocation of ATF 
headquarters employees to alternate building facilities better 
suited to meeting physical protection and security needs than 
existing leased space provides.

                             RECOMMENDATION

    The Committee has denied the Administration's request for 
funding for the new headquarters at this time. The Committee 
recognizes the importance of ATF's need for more secure 
headquarters facilities. However, the Committee understands 
that there is little likelihood that a prospectus will be 
approved by the House authorizing committee this year. It is 
essential that agreement be reached on a location for the new 
headquarters that will satisfy ATF's security needs while still 
being located convenient to other federal facilities and 
courthouses, as well as fitting within tight budgetary 
constraints.

                     United States Customs Service

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............    $1,522,165,000
Budget estimate, fiscal year 1999.....................     1,638,065,000
Recommended in the bill...............................     1,638,065,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................      +115,900,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 recommends $1,638,065,000 for the U.S. 
Customs Service Salaries and Expenses appropriation. This is 
the same as the President's request and $115,900,000 above the 
fiscal year 1998 appropriation. Of this amount, $7,000,000 for 
vehicle replacement, will not be available until September 30, 
1999. This level includes full funding of initiatives for the 
Customs Integrity Awareness Program ($6,000,000), a money 
laundering initiative ($5,000,000) and a child labor initiative 
($3,000,000).

                            Money Laundering

    The Committee applauds the success of the Customs Service, 
in cooperation with other Treasury and federal law enforcement 
agencies, in achieving the major success of Operation 
Casablanca. The magnitude of this operation is such that its 
impact is likely to be felt for some time to come, and the 
Committee strongly endorses the money laundering initiative 
that Customs has proposed for fiscal year 1999. This case is 
clear evidence of the need to keep up sustained energy in 
investigative and law enforcement efforts in general, and the 
Committee encourages Customs to repeat its successes in this 
attack on the lifeblood of organized crime.

                          staffing allocation

    The Committee believes that Customs has a dedicated, 
professional work force in its inspectors, enforcement 
officers, and agents. However, the lack of a comprehensive 
staffing allocation model deprives management of an essential 
tool to evaluate priorities and direct future planning for 
recruitment, assignment, training and general organizational 
structure. The Committee therefore strongly encourages the 
Customs Service, working with the Department, to develop a 
staffing allocation system for its inspectors, agents and 
enforcement officers.

                 customs staffing and the port of miami

    The Committee is concerned about both the trends in the 
total number of Customs employees and the geographic allocation 
of these employees. The President's fiscal year 1999 budget 
requests funds for 16,766 directly appropriated employees and 
2,905 reimbursable Customs employees (whose salaries are paid 
by private firms that need Customs' help to run their 
businesses). This request represents an increase of only six 
percent in the total number of Customs employees since fiscal 
year 1996--a two percent increase in directly appropriated 
Customs employees and a 42 percent increase in reimbursable 
Customs employees. During the same time period, the number of 
cargo entries has increased by 23 percent, the number of 
international air passengers has increased by 23 percent, the 
number of sea passengers has increased by 43 percent. Moreover, 
Customs plays a key role in trying to stop the flow of illegal 
drugs into this country.
    On May 19, 1998 the House of Representatives passed H.R. 
3809, authorizing an additional 1,745 Customs employees, 
including 330 for major metropolitan drug or narcotics 
distribution and transportation centers. Last year, the 
Committee noted that half of all cocaine seizures in commercial 
cargo in the country have occurred in Miami.

      OPERATION and MAINTENANCE AIR & MARINE INTERDICTION PROGRAMS

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $92,758,000
Budget estimate, fiscal year 1999.....................        98,488,000
Recommended in the bill...............................       100,688,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        +7,930,000
    Budget Estimate, fiscal year 1999.................        +2,200,000
                                                                        

                                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 recommends $100,688,000 for the U.S. Customs 
Service Operation and Maintenance appropriation, $2,200,000 
above the President's request and $7,930,000 above the fiscal 
year 1998 appropriation.

                         black hawk helicopters

    In the fiscal year 1998 appropriation, the Committee 
provided the Customs Service with funding to acquire forward 
looking infrared (FLIR) night vision equipment. It is the 
Committee's understanding that all modification work, including 
certification, will be completed by mid 1999. The Committee is 
encouraged to note that Customs is moving swiftly to put these 
systems in place.
    However, the Committee is concerned that Customs also make 
the best use of resources available to it for operational 
readiness, and was displeased to learn that four of the sixteen 
Black Hawks available to Customs are presently inoperable. The 
Committee therefore includes $1,200,000 to return these 
helicopters to an operationally ready condition. No additional 
personnel are funded, since Customs reports that it has 
sufficient manpower to utilize these aircraft in combination 
with currently operating aircraft.

                    customs air interdiction program

    The Committee continues to be impressed with the successes 
associated with the Customs Air Interdiction program and is 
aware of the growing operational commitments associated with 
this success. The program currently operates a variety of aged 
fixed and rotor wing aircraft, which are employed in 
interceptor, surveillance and apprehension type operations. The 
high costs of maintaining this program, which has a direct 
impact on the ability of drug traffickers to smuggle drugs into 
the United States, are rising due to aircraft age and the 
demand for increased operations. The Committee encourages the 
Customs Service to examine the benefits of a consolidated air 
maintenance system and take actions to improve operational 
coordination of its air assets to meet our national drug 
enforcement priorities. The Committee is concerned that the 
ability to sustain current rates of operational usage, let 
alone to increase hours, is jeopardized by increased 
maintenance and down time directly associated with age and 
wear.
    The Committee, in the interest of maintaining a viable and 
effective air interdiction program, directs the Customs Service 
to develop a comprehensive modernization plan for the air 
interdiction program, covering both its fixed wing and rotor 
wing aircraft to be submitted with the President's fiscal year 
2000 budget. This plan should take into account the projected 
lifespan of each aircraft currently in the Customs air program 
and project a replacement schedule. The modernization plan 
should be a living document that continually reevaluates fleet 
status against new aircraft frames and technologies to meet and 
maintain our national drug enforcement priorities and 
challenges. It should detail the current status of each of its 
aircraft, associated operations and maintenance activities for 
these aircraft, and include a projected replacement schedule, 
with associated costs, for fleet extension and modernization.

               customs consolidated aircraft maintenance

    The Committee understands that the Customs Service is 
reviewing its current system for carrying out both light and 
heavy maintenance of its aircraft fleet, and is considering 
options that may include organizational and geographical 
consolidation of such functions. The Committee is also aware 
that some adjustments in traditional ways of executing depot 
level maintenance may arise from policy changes proposed by the 
Department of Defense. The Committee has a strong interest in 
seeing Customs benefit from improvements in managing its fleet, 
both in order to reduce program costs and to maximize the 
availability of Customs air assets. The Committee therefore 
directs the Customs Service to report by March 1, 1999 on the 
findings of its study, including any proposals for legislative 
action and budgetary requirements.

         domestic air interdiction coordination center (DAICC)

    In keeping with its overall support of improving Customs 
Service interdiction capabilities, the Committee strongly 
supports efforts to upgrade the information processing capacity 
of the Domestic Air Interdiction Coordination Center (DAICC) at 
March Air Reserve Base, California. These upgrades would allow 
the DAICC to receive Federal Aviation Administration data from 
the Los Angeles Air Route Traffic Control Center, closing a 
strategic information gap. This would enable Customs to better 
perform its mission under Presidential Decision Directive 14 to 
sort all incoming air traffic to determine their legal status, 
and to support the Department of Defense in sorting air traffic 
information for the source and transit zones.

                   customs marine enforcement program

    The Committee has become aware that drug traffickers are 
increasingly reverting to the old practice of using fast boats 
to smuggle large loads of drugs into the United States coastal 
waters. Despite strenuous efforts by Customs Service marine 
enforcement officers and agents to interdict this activity, the 
program has been seriously crippled by a nearly fifty percent 
reduction in personnel assigned to marine enforcement. The 
program has been further compromised by the inoperable status 
of many of the aged marine enforcement boats, dry docked 
because of a lack of adequate maintenance or fleet replacement. 
Current operations are handicapped by lack of air and marine 
coordination, lack of technology and specialized tactical 
training. Recent incidents associated with special operations 
missions have cast further light on the deteriorated state of 
marine enforcement and the need to revitalize this once very 
successful program.
    The Committee, in the interest of maintaining a viable and 
effective marine enforcement program, includes an additional 
$1,000,000 to augment the $5,200,000 requested for the marine 
program. The Committee directs the Customs Service to develop a 
comprehensive modernization plan for marine enforcement, to be 
submitted with the President's fiscal year 2000 budget. This 
plan should take into account the projected lifespan of each 
vessel currently in the Customs marine program and project a 
replacement schedule. The modernization plan should be a living 
document that continually reevaluates fleet status against new 
marine platforms and technologies to meet and maintain our 
national drug enforcement priorities and challenges. It should 
detail the current status of each of its vessel, associated 
operations and maintenance activities for these craft and 
include a projected replacement schedule, with associated 
costs, for fleet extension and modernization.

                           special operations

    The unique mission and operational requirements of the 
Customs Service Marine and Air Interdiction Programs demand 
special tactical operations considerations due to the high 
threat nature of these activities. Current organization of 
these activities lacks the focus that a special operations 
command and control structure could provide for mission 
coordination, tactics, training, and equipment acquisition and 
use. The Committee requests that the Customs Service, working 
with the Department, review the feasibility of creating a 
special operations command within the Customs Service, and in 
the process achieve a management structure appropriate to the 
needs of special operations programs.

                   CUSTOMS SERVICES AT SMALL AIRPORTS

                  (to be derived from fees collected)

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............        $2,406,000
Budget estimate, fiscal year 1999.....................         2,000,000
Recommended in the bill...............................         2,000,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................          -406,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 1998 to date...............        $3,000,000
Budget estimate, fiscal year 1999.....................         3,000,000
Recommended in the bill...............................         3,000,000
Bill compared with:                                                     
  Appropriation, fiscal year 1998.....................  ................
  Budget Estimate, fiscal year 1999...................  ................
                                                                        

                                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.

                             RECOMMENDATION

    The Committee concurs with the President's request of 
$3,000,000. Although the Committee is aware that a recent 
decision by the Supreme Court may reduce the amounts that 
Customs is legally authorized to collect from exporters, it 
appears that the fiscal year 1999 funding requirements will be 
approximately the same as fiscal year 1998.

                    Bureau of Engraving and Printing

------------------------------------------------------------------------
                                         1998                1999       
------------------------------------------------------------------------
Federal Reserve Notes...........  9.2 billion.......  9.5 billion       
Postage Stamps..................  22 billion........  18 billion        
Securities, commissions, etc....  115 million.......  115 million       
Cost of operations..............  $422 million......  $428 million      
Revenue.........................  $424 million......  $429 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.

                         DOLLAR BILL RE-DESIGN

    To combat international counterfeiting threats to the 
United States, the Department of the Treasury is continuing to 
redesign Federal Reserve Notes. By the end of 1999, newly 
designed $100, $50, and $20 Federal Reserve Notes will be in 
circulation.
    The Committee remains concerned that replacing the 
estimated 6 billion circulating $1 Federal Reserve Notes with 
newly designed notes containing special anti-counterfeiting 
properties may well be cost prohibitive. Furthermore, the 
recent authorization of a newly designed $1 coin will, if 
successfully placed into circulation, render the $1 Federal 
Reserve Note obsolete. The Committee believes it would not be 
prudent to pursue potentially expensive anti-counterfeiting 
measures and redesign of the $1 Federal Reserve Note when the 
introduction of a $1 coin is less than 2 years away.
    Therefore, the Committee directs the Department of the 
Treasury and the Bureau of Engraving and Printing not to pursue 
the redesign of the $1 Federal Reserve Note unless Congress 
explicitly authorizes such action.

                           United States Mint

----------------------------------------------------------------------------------------------------------------
                                          Circulating coins         Numismatic coins            Protection      
----------------------------------------------------------------------------------------------------------------
1998:                                                                                                           
    Number of coins..................  13.6 billion...........  12 million.............  .......................
    Cost of operations...............  $255 million...........  $300 million...........  $16 million            
    Revenue..........................  $651 million...........  $300 million...........  .......................
1999:                                                                                                           
    Number of coins..................  12.9 billion...........  23 million.............                         
    Cost of operations...............  $283 million...........  $347 million...........  $16 million            
    Revenue..........................  $1,020 million.........  $365 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.

                       Bureau of the Public Debt

                     ADMINISTERING THE PUBLIC DEBT

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............      $169,426,000
Budget estimate, fiscal year 1999.....................       173,100,000
Recommended in the bill...............................       172,100,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        +2,674,000
    Budget Estimate, fiscal year 1999.................        -1,000,000
                                                                        

                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $176,500,000 
for the Bureau of the Public Debt. This amount is offset by 
$4,400,000 in receipts, resulting in a final appropriation of 
$172,100,000, $2,674,000 above the amount appropriated in 
fiscal year 1998 and $1,000,000 below the budget request. The 
budget request for the Bureau of the Public Debt contained 
$1,000,000 for work associated with efforts to ensure that its 
computer systems will be Year 2000 compliant. The Committee 
recommends that those resource needs be provided within the 
amount appropriated for the emergency appropriation, ``Funds 
Appropriated to the President, Information Technology Systems 
and Related Expenses''.

                        trust fund reimbursement

    The Committee has included language in the bill which makes 
permanent a provision contained in last year's bill which 
permits the Bureau of the Public Debt to be reimbursed for the 
administrative services it provides to the various trust funds.

                        Internal Revenue Service

                 PROCESSING, ASSISTANCE AND MANAGEMENT

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............    $2,925,874,000
Budget estimate, fiscal year 1999.....................     3,162,430,000
Recommended in the bill...............................     3,025,013,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................       +99,139,000
    Budget Estimate, fiscal year 1999.................      -137,417,000
                                                                        

                                MISSION

    This appropriation provides for processing tax returns and 
related documents; processing data for compiling statistics of 
income; assisting taxpayers in correct filing of their returns 
and in paying taxes that are due; overall planning and 
direction of the Internal Revenue Service; and management of 
financial resources and procurement.

                             RECOMMENDATION

    The Committee recommends an appropriation of $3,025,013,000 
for the Processing, Assistance, and Management account. This is 
$137,417,000 below the budget request and $99,139,000 above the 
amount appropriated in fiscal year 1998. The amount provided 
assumes that the Internal Revenue will absorb $63,269,000, the 
cost of increases in rental payments to the General Services 
Administration. In addition, the budget request contained 
$58,325,000 for customer service initiatives and $15,823,000 
for organizational modernization. Funding for those activities 
has been included in the Information Systems appropriation 
account.

                    national educational programming

    From within the amounts appropriated for Processing, 
Assistance and Management, the Committee directs the Internal 
Revenue Service to provide no less than $750,000 for the 
purposes of creating a nationally televised, educational 
program covering matters of current interest to those involved 
in administering, advising, teaching and studying the technical 
aspects of federal taxation. The audience which the IRS should 
attempt to appeal to should include, but is not limited to, tax 
lawyers and accountants in private practice and Treasury 
Department and IRS personnel. In particular, this program 
should provide immediate, nationwide, access to televised 
discussion and analysis of current tax developments and changes 
in the tax code, such as the project currently under 
development at the University of Florida. The Committee 
recognizes IRS's interest in becoming increasingly customer 
service driven and more user-friendly and views this television 
program as an excellent opportunity to assist those involved in 
the interpretation, administration, and enforcement of the tax 
code.

                          TAX LAW ENFORCEMENT

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............    $3,142,822,000
Budget estimate, fiscal year 1999.....................     3,169,539,000
Recommended in the bill...............................     3,164,189,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................       +21,367,000
    Budget Estimate, fiscal year 1999.................        -5,350,000
                                                                        

                                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 an appropriation of $3,164,189,000 
for Tax Law Enforcement, $21,367,000 above the amount 
appropriated in fiscal year 1998 and $5,350,000 below the 
budget request. The amount provided includes $20,721,000 to 
maintain current services. The budget request included 
$2,645,000 for customer service initiatives and $2,705,000 for 
organizational modernization. Funding for those activities had 
been included in the Information Systems appropriation account.

             earned income tax credit compliance initiative

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............      $138,000,000
Budget estimate, fiscal year 1999.....................       143,000,000
Recommended in the bill...............................       143,000,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        +5,000,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                mission

    The Earned Income Tax Credit Compliance Initiative provides 
for: expanded customer service and public outreach programs; 
strengthened enforcement activities; and enhanced research 
efforts to reduce overclaims and erroneous filings associated 
with the Earned Income Tax Credit.

                             recommendation

    The Committee recommends $143,000,000 for the Earned Income 
Tax Credit Compliance Initiative, the same as the budget 
request, and $5,000,000 more than the amount appropriated in 
fiscal year 1998.

                          INFORMATION SYSTEMS

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............    $1,272,487,000
Budget estimate, fiscal year 1999.....................     1,540,884,000
Recommended in the bill...............................     1,224,032,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................       -48,455,000
    Budget Estimate, fiscal year 1999.................      -316,852,000
                                                                        

                                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 recommends an appropriation of $1,224,032,000 
for the Information Systems appropriation, $316,852,000 below 
the budget request and $48,455,000 below the amount 
appropriated in fiscal year 1999. The amount provided includes 
$32,900,000 for operational information systems to ensure 
successful filing seasons for 1999 and 2000 as requested by the 
Administration; and $34,350,000 for support of the Internal 
Revenue Service's computer systems modernization program, 
instead of $68,700,000 as proposed by the Administration.
    In addition, the Committee has recommended that 
$125,000,000 of the funds appropriated for Information Systems 
be available only for improvements to customer service and for 
restructuring and reform of the Internal Revenue Service. The 
Administration's budget request for the Internal Revenue 
Service included $103,000,000 in customer service initiatives. 
The budget request also included $25,000,000 for an 
organizational modernization of the Internal Revenue Service. 
The Committee is generally supportive of both the customer 
service initiatives proposed in the budget and the 
Commissioner's proposal for organizational modernization of the 
IRS. The Committee is aware that the IRS restructuring 
legislation currently being considered by the Congress also 
addresses customer service within the IRS and the IRS's 
organizational structure. Because the IRS restructuring 
legislation has yet to be enacted, the Committee, rather than 
funding the specific customer service and organizational 
modernization initiatives requested by the Administration, has 
elected to provide $125,000,000 within this account that will 
enable the IRS to implement the provisions of the IRS 
restructuring legislation, including customer service and 
organizational modernization initiatives. The Committee directs 
the IRS to submit a plan for expenditure of these funds to the 
Committees on Appropriations of the House and Senate within 30 
days of enactment of this Act.
    The budget request for the Information Systems 
appropriation included $359,000,000 for work associated with 
efforts to ensure that the Service's computer systems will be 
Year 2000 compliant and related technology improvements. The 
Committee has recommended that these resource needs be provided 
within the amount appropriated for the emergency appropriation, 
``Funds Appropriated to the President, Information Technology 
Systems and Related Expenses.''

  IRS PARTICIPATION IN THE VIRGINIA RAILWAY EXPRESS TRANSIT LINK CARD 
                                PROGRAM

    The Committee is aware that IRS employee participation in 
the Virginia Railway Express (VRE) Transit Link Card program 
has significantly declined since the relocation of some IRS 
employees to a new office facility at the New Carrollton 
Federal Building. The Committee is also aware that the New 
Carrollton Federal Building is served by Metro and the VRE 
Transit Link Card program, and that IRS provides similar 
transit benefits to employees commuting from Maryland. The 
Committee is concerned that IRS's employee commuting policy 
does not adequately encourage the use of regional mass transit 
facilities. Taking into consideration the fact that the 
Washington Metropolitan Region has the Nation's second most 
severe commuter congestion problem, and in the interest of the 
environment and public health, the Committee recommends that 
IRS take steps to increase IRS employee participation in the 
VRE Transit Link Card program.

                   INFORMATION TECHNOLOGY INVESTMENTS

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............      $294,670,000
Budget estimate, fiscal year 1999.....................       323,000,000
Recommended in the bill...............................       210,000,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................       -84,670,000
    Budget Estimate, fiscal year 1999.................      -113,000,000
                                                                        

                                MISSION

    This appropriation provides for funding of the PRIME 
Systems Integration Services Contractor to build the 
information technology described in the IRS Modernization 
Blueprint of May 15, 1997.

                             RECOMMENDATION

    The Committee has recommended an appropriation of 
$210,000,000 for the Information Technology Investments 
appropriation, $113,000,000 below the budget request and 
$84,670,000 below the amount appropriated in fiscal year 1998. 
The Committee wishes to make it clear that it fully supports 
the Internal Revenue Service's efforts to modernize its 
information systems. The $325,000,000 appropriated for this 
account in fiscal year 1998 will become available for 
obligation on September 1, 1998 based on a schedule that 
assumed that the PRIME Systems Integration Services Contract 
would be awarded in September of 1998. The Committee now 
understands that the contract will not be awarded until near 
the end of calendar year 1998. Accordingly, the Committee has 
reduced the amount requested for this activity to reflect the 
delay in the award of the contract. The Committee has also 
included language which provides that the funds appropriated in 
this account will not be available for obligation until 
September 30, 1999.
    The Committee has included language in the bill that 
provides that none of the funds appropriated in this account 
shall be available for obligation until the IRS and the 
Department of the Treasury submit to Congress for approval a 
plan for expenditure that: (1) implements the IRS's 
Modernization Blueprint submitted to Congress on May 15, 1997; 
(2) meets the information system investment guidelines 
established by the Office of Management and Budget in the 
fiscal year 1998 budget; (3) has been reviewed and approved by 
the Office of Management and Budget, the Department's IRS 
Management Board and has been reviewed by the General 
Accounting Office; (4) meets the requirements of the May 15, 
1997, IRS's Systems Life Cycle program; and (5) is in 
compliance with acquisition rules, requirements, guidelines, 
and systems acquisition management practices of the Federal 
government.
    The Committee is concerned that the IRS's efforts to 
modernize its information systems could divert its attentions 
from the more pressing matter of assuring that all of its 
existing systems will be Year 2000 compliant. The Committee 
expects that IRS will continue to view Year 2000 compliance as 
its highest priority and directs that the IRS not divert any 
resources from its Year 2000 efforts to the information systems 
modernization program.

          ADMINISTRATIVE PROVISIONS--INTERNAL REVENUE SERVICE

    Section 101. The Committee continues the provision which 
allows the transfer of 5 percent of any appropriation made 
available to the IRS to any other IRS appropriation, subject to 
Congressional approval.
    Section 102. The Committee continues the provision which 
requires the IRS to maintain a training program in taxpayer's 
rights, dealing courteously with taxpayers, and cross cultural 
relations.
    Section 103. The Committee continues the provision which 
requires the IRS to maintain taxpayer services at not less than 
fiscal year 1995 levels.
    Section 104. The Committee continues the provision 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 continues the provision which 
requires the IRS to institute policies and procedures which 
will safeguard the confidentiality of taxpayer information.
    Section 106. The Committee continues the provision which 
directs that funds shall be available for improved facilities 
and increased manpower to provide sufficient and effective 1-
800 help line telephone assistance.

                      United States Secret Service

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............      $564,348,000
Budget estimate, fiscal year 1999.....................       594,657,000
Recommended in the bill...............................       594,657,000
    Appropriation, fiscal year 1998...................       +30,309,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 $594,657,000, the same as the 
President's request and $30,309,000 above the fiscal year 1998 
appropriation. The Committee approves the additional $7,732,000 
requested for the start-up costs for the 2000 Presidential 
campaign, and $7,864,000 to fund the remaining costs related to 
the White House Security initiative. The Committee fully funds 
the request for new initiatives for the protective program and 
protective intelligence ($6,973,000 and 35 full-time equivalent 
positions).

                 ELECTRONIC CRIME SPECIAL AGENT PROGRAM

    The Committee has been impressed by the achievement of the 
Secret Service Electronic Crime Special Agent Program (ECSAP) 
in a very short period of time and with slim resources. The 
role played by ECSAP agents in supporting investigations into 
telecommunication crime, identity fraud, and internet fraud is 
critical to law enforcement success, and the program deserves 
to be continued and put in place at key locations as resources 
permit.

                           PROTECTIVE PROGRAM

    The Committee has approved the Administration's request to 
fund its expanded protective program to ensure adequate field 
intelligence, advance work, and the appropriate skill sets to 
develop protective intelligence on the diverse range of threats 
for which the Secret Service must be fully prepared. The 
Committee understands that these initiatives are among the 
highest priority for the Secret Service, and expects these 
funds for the new initiatives, the additional 2000 campaign 
funding, and White House Security to be fully committed towards 
these ends.

      ACQUISITION, CONSTRUCTION, IMPROVEMENTS AND RELATED EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............        $8,799,000
Budget estimate, fiscal year 1999.....................         6,445,000
Recommended in the bill...............................         6,445,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        -2,354,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                MISSION

    This account supports the acquisition, construction, 
improvement, equipment, furnishing and related costs for 
construction and maintenance of the new Secret Service 
Headquarters Building.

                             RECOMMENDATION

    The Committee recommends $6,445,000, equal to the 
President's request and $2,354,000 below the fiscal year 1998 
appropriation.

             GENERAL PROVISIONS--DEPARTMENT OF THE TREASURY

    Section 110. The Committee continues the provision which 
requires the Secretary of the Treasury to comply with certain 
reprogramming guidelines when obligating or expending funds for 
law enforcement activities.
    Section 111. The Committee continues the 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.
    Section 112. The Committee continues the provision which 
requires expenditures of funds so as not to diminish efforts 
under the Federal Alcohol Administration Act.
    Section 113. The Committee continues the provision which 
authorizes transfers, up to 2 percent, between law enforcement 
appropriations under certain circumstances.
    Section 114. The Committee continues the provision which 
authorizes transfers, up to 2 percent, between Departmental 
Offices, Office of the Inspector General, Financial Management 
Service, and the Bureau of Public Debt appropriations under 
certain circumstances.
    Section 115. The Committee includes a new provision 
proposed by the Administration authorizing the Secretary of the 
Treasury to promote the benefits and encourage the use of 
electronic tax administration programs through the use of mass 
communications and other means. The Secretary is also 
authorized to implement procedures to pay appropriate 
incentives to commercial concerns for electronic filing 
services; such payments may not be made unless the electronic 
filing service is provided without charge to taxpayers. The 
provision also requires the IRS to assure the security of all 
electronic transmissions and protect the privacy of taxpayers.
    The Committee is encouraged by the significant increase in 
the number of returns that were filed electronically for the 
1998 filing season. The electronic filing of tax returns has 
the dual benefit of reducing the IRS tax return processing 
costs and improving service to taxpayers by reducing the number 
of errors now made by taxpayers and the IRS. The Committee 
strongly encourages the IRS to continue to promote the benefits 
of electronic filing to the public and to undertake additional 
measures to increase the number of returns filed 
electronically.
    Section 116. The Committee includes a new provision 
prohibiting the Bureau of Engraving and Printing from awarding 
a contract on Solicitation No. BEP-97-13(TN) until the House 
Committee on Appropriations and the House Committee on Banking 
and Financial Services receive the General Accounting Office's 
study of the issue of distinctive currency paper procurement 
authorized in the fiscal year 1997 supplemental bill, and 
notify the Bureau that it can proceed with an award or must 
await Congressional action to address findings in the GAO 
report. Additionally, the Committee has included language 
authorizing the Bureau to extend the current ``bridge'' 
procurement contract up to 6 (six) additional months to ensure 
the supply of currency paper until Congress takes action.

                        TITLE II--POSTAL SERVICE

                     Payments to the Postal Service

                   Payment to the Postal Service Fund

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $86,274,000
Budget estimate, fiscal year 1999.....................       100,195,000
Recommended in the bill...............................        71,195,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................       -15,079,000
    Budget Estimate, fiscal year 1999.................       -29,000,000
                                                                        

                                MISSION

    Funds provided to the Postal Service in the Payments to the 
Postal Service Fund include the costs of revenue forgone on 
free and reduce-rate mail for the blind and overseas voters; 
reconciliation adjustments for amounts appropriated for free 
and reduced rate mail and the actual amounts required; and 
partial reimbursement for losses which the Postal Service 
incurred as a result of insufficient appropriations in fiscal 
years 1991 through 1993 and the additional revenues it would 
have received between 1993 and 1998 in the absence of certain 
rate phasing provisions of the Revenue Forgone Act of 1993.

                             RECOMMENDATION

    The Committee recommends an appropriation of $71,195,000 
for Payments to the Postal Service Fund, $29,000,000 below the 
amount requested by the Administration and a decrease of 
$15,079,000 below the amounts appropriated in fiscal year 1998. 
Of this amount, $68,710,000 is provided for free mail for the 
blind and overseas voters and $2,485,000 is provided as a 
reconciliation adjustment for estimated free mail volumes and 
final audited volumes for fiscal year 1996. The Committee 
denies without prejudice $29,000,000 as reimbursements to the 
Postal Service for prior year reimbursement shortfalls due to 
insufficient appropriations and rate phasing provisions of the 
Revenue Forgone Act of 1993. This reduction was necessary due 
to budgetary constraints. The Committee recognizes its 
obligation to reimburse the Postal Service for this 
indebtedness.

                 post office in wendell, north carolina

    The Committee is concerned about the postal needs of the 
residents of Wendell, North Carolina, 27591, located in Wake 
County. The Committee is concerned that Wendell, North Carolina 
has outgrown its current facility and recommends that the 
United States Postal Service work with local officials and 
community leaders in order to determine how best to address 
this situation. The Committee further recommends that the 
United States Postal Service report its findings to the 
Committee.

                POST OFFICE IN STALLINGS, NORTH CAROLINA

    The Committee is concerned about the postal needs of the 
residents of Stallings, North Carolina, 28106, located in Union 
County. The Committee recommends that the United States Postal 
Service study and evaluate the need for a full service post 
office in Stallings, North Carolina, 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 wheat ridge, colorado

    The Committee is concerned that the residents of the city 
of Wheat Ridge are being unnecessarily burdened by the 5 
separate zip codes used to service the city. The Committee 
recommends the United States Postal Service work with local 
officials and community leaders in order to determine the 
feasibility of a separate zip code, or use of the town name for 
all addresses in Wheat Ridge.

                  POST OFFICE IN SARDIS CITY, ALABAMA

    The Committee continues to be concerned about the postal 
needs of the residents of Sardis City, Alabama, 35956, located 
in Etowah County. The Committee has received an explanation 
from the United States Postal Service regarding this matter, 
and is not satisfied with the result. The Committee recommends 
that the United States Postal Service provide to the Committee 
a more detailed account of what has been done to study and 
evaluate the need for a post office in Sardis, Alabama. The 
Committee further recommends that the United States Postal 
Service revisit the issue again this year, working with local 
officials and community leaders, to determine whether a need 
has arisen for a post office in this growing community, and 
provide a detailed report to the Committee demonstrating what 
criteria were used for this evaluation.

                  post office in hammondville, alabama

    The Committee is concerned about the postal needs of the 
residents of Hammondville, Alabama, located in DeKalb County. 
The Committee recommends that the United States Postal Service 
study and evaluate the need for a zip code in Hammondville, 
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 powell, alabama

    The Committee is concerned about the postal needs of the 
residents of Powell, Alabama located in DeKalb County. The 
Committee recommends that the United States Postal Service 
study and evaluate the need for a post office in Powell, 
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 walnut grove, alabama

    The Committee is concerned about the postal needs of the 
residents of Walnut Grove, Alabama, 35990, located in Etowah 
County. The Committee is concerned that Walnut Grove, Alabama 
has outgrown its current facility, and recommends that the 
United States Postal Service work with local officials and 
community leaders in order to determine how best to address 
this situation. The Committee further recommends that the 
United States Postal Service report its findings to the 
Committee.

                  post office in guntersville, alabama

    The Committee is concerned about the postal needs of 
certain residents of Guntersville, Alabama, which is located in 
Marshall County, who are currently designated to receive their 
mail through the post office located in Scottsboro, Alabama, 
35769, which is located in adjacent Jackson County. These 
residents have expressed the desire to receive their mail 
through the post office located in Guntersville, Alabama, 
35976. The Committee recommends that the United States Postal 
Service work with local officials and community leaders in 
order to determine how best to address this situation. The 
Committee further recommends that the United States Postal 
Service report its findings to the Committee.

                   post office in millbrook, alabama

    The Committee is concerned about the postal needs of the 
residents of Millbrook, Alabama, 36054, located in Elmore 
County. The Committee is concerned that Millbrook, Alabama has 
outgrown its current facility and recommends that the United 
States Postal Service work with local officials and community 
leaders in order to determine how best to address this 
situation. The Committee further recommends that the United 
States Postal Service report its findings to the Committee.

                   post office in west point, alabama

    The Committee continues to be concerned about the postal 
needs of the residents of West Point, AL, located in Cullman 
County. The Committee has received the explanation from the 
United States Postal Service regarding this matter, and is not 
satisfied with the result. The Committee recommends that the 
United States Postal Service provide to the Committee a more 
detailed account of what has been done to study and evaluate 
the need for a post office in West Point, Alabama. The 
Committee further recommends that the United States Postal 
Service revisit the issue again this year, working with local 
officials and community leaders, to determine whether a need 
has arisen in this growing community for a post office, a 
separate zip code, or the use of the town name ``West Point'' 
in the address, and furthermore provide a detailed report to 
the Committee demonstrating what criteria were used for this 
evaluation.

                    post office in springfield, ohio

    The Committee is concerned about the postal needs of the 
residents of Springfield, Ohio, 45501, located in Clark County. 
The Committee is concerned that the current location of 
curbside postal drop boxes outside of the Post Office building 
is creating a pedestrian and vehicular traffic safety hazard 
and recommends that the United States Postal Service work with 
local officials and community leaders in order to determine how 
best to address this situation. The Committe further recommends 
that the United States Postal Service report its findings to 
the Committee.

                                auto day

    The Committee agrees with the recent decision of the United 
States Postal Service to discontinue its ``Auto Day'' 
advertising mail program. The Committee directs the Postal 
Service not to undertake any similar program or market test 
that promotes, promises, or offers day certain delivery of 
Standard Mail without securing approval of the Postal Rate 
Commission.

                  spokane, washington postal district

    The Committee is concerned by the significant numbers of 
complaints in the Spokane Postal District and the 
nonresponsiveness of the District staff to Congressional 
inquiries. Accordingly, the Committee urges the Office of the 
Inspector General to conduct a systematic audit and review of 
postal operations at the Spokane Postal District, focusing on 
customer service, labor-management relations, and bidding 
irregularities.

           independent financial audit of the postal service

    In 1996, Congress amended the Inspector General Act to 
create a structurally independent Office of Inspector General 
(IG) for the U.S. Postal Service. The Committee includes a new 
provision (Section 513) authorizing the Postal IG to audit--or 
oversee the audit--of the Postal Service's financial statements 
in order to bring the Service in line with accountability 
standards expected of other federal establishments. In order to 
institute independence and objectivity in the audit process, 
the American public must be assured that the IG, which is not 
part of Postal Service management, oversees the certification 
of the financial statements. Currently, the Postal IG continues 
to hire employees as it builds toward a full complement of more 
than 500 staff. Because the IG is not fully staffed, the 
Committee directs that the IG select and oversee the work of an 
external independent public accountant for the performance of 
this work in fiscal year 1999. The IG should report to the 
Committee on the status in reaching its fully authorized 
staffing level no later than February 1, 1999.

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 1998 to date...............          $250,000
Budget estimate, fiscal year 1999.....................           250,000
Recommended in the bill...............................           250,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................  ................
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                mission

    These funds provide for the compensation of the President 
as well as official expenses, as authorized by Title 3.

                             recommendation

    The Committee recommends an appropriation of $250,000, the 
same as the amount requested by the President and the amount 
appropriated in fiscal year 1998.

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $51,199,000
Budget estimate, fiscal year 1999.....................        52,344,000
Recommended in the bill...............................        52,344,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        +1,145,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                mission

    The Salaries and Expenses account of the White House Office 
supports staff and administrative services necessary for the 
direct support of the President. This account also includes 
reimbursements to the White House Communications Agency.

                             RECOMMENDATION

    The Committee recommends an appropriation of $52,344,000, 
the amount requested by the President and an increase of 
$1,145,000 above the fiscal year 1998 appropriated level. This 
includes $10,100,000 for reimbursements to the White House 
Communications Agency. The Committee has included a new 
provision (Section 512) authorizing the payment of attorneys 
fees, costs and sanctions by the Federal government in the case 
Association of American Physicians and Surgeons, Inc. v. 
Clinton from the White House Office Salaries and Expenses 
account, should those payments be required.

                         health care task force

    The Committee has included a new provision (Section 512) 
requiring that any fine of the government awarded by the court 
in the case of Association of Physicians and Surgeons Inc. v. 
Clinton 989 F. Supp. 8 (1997) shall be paid from the White 
House Office, Salaries and Expense account. The Committee 
understands that this case is under appeal and no final 
judgment has yet been awarded. This case began when the 
Association of Physicians and Surgeons Inc. sued Hillary 
Clinton in an effort to force the Health Care Task Force (HCTF) 
to comply with the Federal Advisory Committee Act (FACA). This 
case centers on White House actions in court briefs declaring 
that all members of the HCTF were government employees. Of the 
White House declaration, the court later found:

          . . . the court is convinced that Mr. Magaziner, and 
        the drafters of his declaration, in an effort to avoid 
        discovery and block live testimony, improperly 
        represented as a fact that all ``members'' of the 
        working group were federal employees. That ``fact'' was 
        not true, then or later, by any reasonable definition 
        of the word ``member''. . . . This failure to correct 
        the record is clear evidence of the government's lack 
        of good faith in dealing with the court and with 
        plaintiff's counsel.

    Given the findings of the Court, the Committee believes 
that it is appropriate for the payment of any fine of the 
government to be paid out of the White House budget, should 
fines be awarded.

                     OFFICE OF THE GENERAL COUNSEL

    The Committee recognizes and supports the important role 
played by the Office of the General Counsel in representing and 
counseling the President in matters associated with the 
official duties and responsibilities of the Executive Office of 
the President. However, the Committee is also concerned about 
instances which may arise where there is an indistinguishable 
boundary between the representation of the President in 
official matters and the representation of the President in 
private matters. This concern extends to contacts and 
activities associated with outside investigations which are 
clearly not related to the official duties of the President.
    The Committee has sought the advice of the General 
Accounting Office on the use of appropriations for the purposes 
of representing the President in both his official and personal 
capacities and has had the opportunity to review the operations 
of the Office of the General Counsel. While the Committee 
understands that there may be some instances when it is 
difficult to completely separate private and official 
responsibilities, the Committee insists that taxpayer dollars 
continue to be used for the sole purpose of representing the 
President in his official duties and responsibilities.
    The Committee strongly recommends that the Office of 
General Counsel establish clear written guidelines on 
authorized activities as they relate to the official 
representation of the President. The Committee directs the 
Office of General Counsel to develop any other such system as 
may be necessary in order to ensure that no federal funds are 
used for the private defense of the President. The Committee 
directs the Office of General Counsel to report back on such 
guidelines and systems no later than December 1, 1998.

                 Executive Residence at the White House

                           OPERATING EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............        $8,045,000
Budget estimate, fiscal year 1999.....................         8,691,000
Recommended in the bill...............................         8,691,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................         + 646,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                MISSION

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

                             RECOMMENDATION

    The Committee recommends a base appropriation of $8,061,000 
and an additional $630,000 for domestic staff overtime, for a 
total appropriation of $8,691,000, the amount requested by the 
President and an increase of $646,000 from the amounts 
appropriated in fiscal year 1998. The Committee makes the 
$630,000 from domestic staff overtime available for obligation 
when the General Accounting Office submits an audit of 
unvouchered expenditures of the Executive Office of the 
President, a review of the processes and procedures related to 
reimbursable activities, and a review of the number and costs, 
including domestic staff overtime, of overnight stays in the 
Executive Residence.

                    GENERAL ACCOUNTING OFFICE AUDIT

    During the fiscal year 1998 appropriations cycle, the 
Committee raised concerns over the escalating cost of domestic 
staff within the Executive Residence. The Committee also noted 
that the General Accounting Office (GAO) had not conducted an 
audit of the unvouchered expenses within the Executive 
Residence since fiscal year 1991. In March of 1997, the 
Committee requested that the GAO: (1) conduct an audit of 
unvouchered expenses; (2) review the process and authorization 
for hosting official and non-official functions within the 
Executive Residence; and (3) review the costs, payments, and 
activities within the Executive Residence, including overnight 
stays. To date, GAO has been unable to complete any part of the 
Committee's request. The Committee is extremely displeased with 
the lack of on-going cooperation on the part of the White House 
in this regard.
    The Committee notes that the cost of domestic overtime 
within the Executive Residence has grown by an estimated 54 
percent since fiscal year 1992. The Committee respects the 
privacy and privileges of the President as it relates to events 
and activities hosted in the Executive Residence, including 
overnight guests. However, the Committee continues to insist 
that its questions regarding these matters need to be answered. 
The Committee has fenced all money related to domestic overtime 
costs pending the final submission of the GAO report.

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

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............        $3,378,000
Budget estimate, fiscal year 1999.....................         3,512,000
Recommended in the bill...............................         3,512,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................          +134,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                mission

    These funds are to be used by the Vice President to carry 
out responsibilities assigned him by the President and by 
various statutes.

                             recommendation

    The Committee recommends an appropriation of $3,512,000, 
the amount requested by the President and an increase of 
$134,000 over the fiscal year 1998 appropriated level.

                           operating expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............          $334,000
Budget estimate, fiscal year 1999.....................           334,000
Recommended in the bill...............................           334,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................  ................
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                mission

    These funds support staff necessary for the care and 
operation of the Vice President's official residence.

                             recommendation

    The Committee recommends $334,000, the amount requested by 
the President and the same amount appropriated in fiscal year 
1998.

                      Council of Economic Advisers

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............        $3,542,000
Budget estimate, fiscal year 1999.....................         3,666,000
Recommended in the bill...............................         3,666,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................          +124,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 $3,666,000, the amount requested 
by the President and an increase of $124,000 over the fiscal 
year 1998 appropriated level.

                      Office of Policy Development

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............        $3,983,000
Budget estimate, fiscal year 1999.....................         4,032,000
Recommended in the bill...............................         4,032,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................           +49,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 $4,032,000, the amount requested 
by the President and an increase of $49,000 over the fiscal 
year 1998 appropriated level.

                       National Security Council

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............        $6,648,000
Budget estimate, fiscal year 1999.....................         6,806,000
Recommended in the bill...............................         6,806,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................          +158,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 $6,806,000, the amount requested 
by the President and an increase of $158,000 over the amounts 
appropriated in fiscal year 1998.

                        Office of Administration

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $28,883,000
Budget estimate, fiscal year 1999.....................        40,550,000
Recommended in the bill...............................        28,350,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................          -533,000
    Budget Estimate, fiscal year 1999.................       -12,200,000
                                                                        

                                mission

    The Office of Administration is responsible for providing 
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 recommends an appropriation of $28,350,000 
for the Office of Administration, a decrease of $12,200,000 
from the amounts requested by the President and a decrease of 
$533,000 from the amounts appropriated in fiscal year 1998. The 
Committee recommends that additional funds of $12,200,000 be 
provided for the Office of Administration's Capital Investment 
Plan (CIP) through the emergency appropriation, ``Funds 
Appropriated to the President, Information Technology Systems 
and Related Expenses''.

                        capital investment plan

    The Committee recommends funding of $12,200,000 for the 
Office of Administration's (OA) Capital Investment Plan (CIP), 
as requested by the Administration, through the emergency 
appropriation, ``Funds Appropriated to the President, 
Information Technology Systems and Related Expenses''. Of this 
amount, $11,410,000 is specifically targeted to bringing the 
EOP's computer systems into compliance for Year 2000 and the 
balance is targeted to high priority projects in support of the 
EOP's Information Technology Architecture Plan.
    Although the Committee is pleased with recent progress on 
developing an architectural blueprint, the Committee remains 
concerned that OA has not yet completed a final strategic plan, 
including procedures and standards to define the technology 
requirements of each EOP organization. Although not 
technologically complex, the tasks required to assess, 
renovate, replace and test mission critical systems across 
eleven separate organizations will require a sound strategic 
plan. Prior to the obligation of any funds in fiscal year 1999, 
the Committee directs the Office of Administration to submit 
its strategic plan, as adopted by the Information Technology 
Management Team, to the House Committee on Appropriations.

                    Office of Management and Budget

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $57,440,000
Budget estimate, fiscal year 1999.....................        60,617,000
Recommended in the bill...............................        59,017,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        +1,577,000
    Budget Estimate, fiscal year 1999.................        -1,600,000
                                                                        

                                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 $59,017,000, the amount of the 
President's original budget request and an increase of 
$1,577,000 over fiscal year 1998 appropriated levels. The 
Committee recommends that additional funds of $1,600,000 for 
ensuring that OMB's budget applications system is Year 2000 
compliant be provided through the emergency appropriation, 
``Funds Appropriated to the President, Information Technology 
Systems and Related Expenses''. Of the amounts appropriated, 
the Committee fences $1,200,000 pending OMB action on paperwork 
reduction and the Congressional Review Act.

          Paperwork Reduction and the Congressional Review Act

    The Committee believes that OMB has failed to perform 
adequately its responsibilities in the areas of paperwork 
reduction and implementation of the Congressional Review Act. 
Because the Office of Information and Regulatory Affairs (OIRA) 
is responsible for implementing these two critical pieces of 
legislation, the Committee has specifically identified the 
amount available to OIRA in fiscal year 1999. In the event that 
OIRA fails to adequately address the implementation of 
paperwork reduction and CRA, the Committee will review these 
funding levels, as appropriate.
    Of the funds provided to OIRA, the Committee fences $1.2 
million making them available upon OMB's submitting a report 
that (1) identifies specific paperwork requirements for 
modification or elimination; and (2) issues guidance and a 
standard format for the use of agencies in complying with the 
rule reporting and major rule delay requirements of the 
Congressional Review Act. The Committee directs OMB to consult 
with the House Committee on Appropriations and the House 
Committee on Government Reform and Oversight's Subcommittee on 
National Economic Growth, Natural Resources, and Regulatory 
Affairs in the preparation of this report and the specific 
matters to be included therein.

                       YEAR 2000 DATE CONVERSION

    The Committee remains very concerned that with little more 
than a year to go before the new millennium, many critical 
government information systems are still in jeopardy of not 
meeting the January 1st, 2000, deadline for date conversion. 
The Committee further believes that the Administration has 
failed to adequately champion the Y2K issue. The Administration 
has not only failed to adequately prepare its own departments, 
but has also not provided the critical national leadership and 
coordination to our local, state and international partners in 
both the public and private sectors.
    Information systems experts have reported that the Y2K fix 
is rooted in management and oversight, not in the lack of 
technology available to address the problem. Unfortunately, 
valuable time has been lost waiting for management to embrace 
the magnitude and consequences of this issue. Not until late, 
has organizational management finally recognized the potential 
for shut down of critical information systems associated with 
entitlement payments, revenue collection, air traffic control, 
energy utilities, defense systems, telecommunications, mass 
transit, supply inventories, elevator functions, medical 
equipment, to mention a few. Many agencies at all levels of 
government still do not have a complete grasp of the problem 
and are now at the greatest risk for systems failure.
    The Committee directs the Administration to focus all of 
its attention and resources on the management and oversight of 
the most critical date sensitive information and infrastructure 
systems, prioritizing systems renovations, repair and 
replacement to those that can meet the January 1, 2000, 
deadline. The Committee further directs the Administration to 
accelerate the development of contingency plans for those 
critical systems that can not meet the Y2K deadline, in order 
to ensure the uninterrupted delivery of government critical 
mission-related services.
    The Committee strongly encourages the President to take a 
high profile national leadership position, to aggressively 
promote century date change awareness for both information 
technology systems and sensitive infrastructure applications. 
The President should monitor, coordinate and provide oversight 
over the progress of all government-wide century date change 
conversion initiatives, with the primary goal of maintaining 
critical systems operations into the new millennium. The 
President should authorize the Chairman of the President's 
Council on Year 2000 Conversion to directly access and take 
control of any critical agency system that is in jeopardy of 
not meeting the January 1, 2000, because of ineffective 
management.
    OMB is directed to include in its quarterly Y2K report 
submissions an assessment of those critical information systems 
that will not meet the Y2K deadline and the problems that can 
be anticipated. The report should include the status of 
business contingency plans for those systems identified as 
being in jeopardy. The Committee also directs OMB, in 
consultation with the House Committee on Appropriations, the 
House Committee on Science, and the House Committee on 
Government Reform and Oversight, to establish additional 
reporting criteria for areas such as embedded systems and 
external data exchange, among others.
    Since the Congress has become actively engaged in extensive 
oversight to ensure that all federal agencies are moving with 
the proper dispatch to correct the Year 2000 problem, all 
federal agencies are directed to submit their reports to OMB, 
the House Committee on Appropriations, the House Committee on 
Science and the House Committee on Government Reform and 
Oversight. Additionally, with the unrelenting Y2K deadline fast 
approaching, the Committee recommends that OMB accelerate its 
reporting requirements for each agency from quarterly 
submissions to monthly.
    Finally, the Committee understands that there are concerns 
and frustration regarding a lack of guidance and standards for 
Y2K assessment, remediation, and validation. The Committee 
directs the Council on Year 2000 Conversion to develop, with 
the input of private industry, a set of guidelines of best 
practices and standards for remediation and validation to 
provide better direction for government and private sector 
efforts.

              reliability and dissemination of information

    The Committee urges the Office of Management and Budget 
(OMB) to develop, with public and Federal agency involvement, 
rules providing policy and procedural guidance to Federal 
agencies for ensuring and maximizing the quality, objectivity, 
utility, and integrity of information (including statistical 
information) disseminated by Federal agencies, and information 
disseminated by non-Federal entities with financial support 
from the Federal government, in fulfillment of the purposes and 
provisions of the Paperwork Reduction Act of 1995 (P.L. 104-
13). The Committee expects issuance of these rules by September 
30, 1999. The OMB rules shall also cover the sharing of, and 
access to, the aforementioned data and information, by members 
of the public. Such OMB rules shall require Federal agencies to 
develop, within one year and with public participation, their 
own rules consistent with the OMB rules. The OMB and agency 
rules shall contain administrative mechanisms allowing affected 
persons to petition for correction of information which does 
not comply with such rules; and the OMB rules shall contain 
provisions requiring the agencies to report to OMB periodically 
regarding the number and nature of petitions or complaints 
regarding Federal, or Federally-supported, information 
dissemination, and how such petitions and complaints were 
handled. OMB shall report to the Committee on the status of 
implementation of these directives no later than September 30, 
1999.

                 Office of National Drug Control Policy

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $35,016,000
Budget estimate, fiscal year 1999.....................        36,442,000
Recommended in the bill...............................        36,442,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        +1,426,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 recommends $36,442,000, equal to the 
President's request and $1,426,000 above the fiscal year 1998 
appropriation. This will maintain current levels for pay, an 
increase in travel, and funding for security costs.

                        UNFILLED STAFF POSITIONS

    The recommended funding level will, for the third straight 
year, support the authorized personnel level of 124 full-time 
equivalents (FTE). To date, ONDCP has not exceeded an average 
FTE level of 114 since it was first authorized to increase in 
size. The Committee is aware that recruiting for sensitive, 
professional positions takes time. However, the Committee is 
concerned that this authorized level may be too high, as 
evidenced by the sizeable reprogrammings from compensation and 
benefits to computer procurement, telecommunication, physical 
security, and various other activities. The lack of movement in 
filling positions and the consistent need to reprogram at mid-
year suggests that ONDCP may need to revise either its 
budgeting procedures or its personnel assumptions. The 
Committee therefore directs ONDCP to review its staffing 
requirements and report back to the Committee by December 15, 
1998, on the steps it is taking to fill the vacancies or, if 
not, what changes it is making in its staffing plan.

                   RESEARCH AND ANALYSIS INITIATIVES

    The Committee recognizes that ONDCP has proposed some 
important initiatives for research that, owing to lack of 
resources, cannot be funded in this appropriation. Nonetheless, 
the Committee strongly urges ONDCP to continue to press through 
its interagency leadership to coordinate research in such areas 
as defining and locating chronic user populations, improving 
coordination and developing a governmentwide intelligence 
architecture, and mapping out drug trafficking flows.

                 PERFORMANCE MEASURES OF EFFECTIVENESS

    The Committee was pleased to see ONDCP deliver its first 
version of the performance measures of effectiveness (PMEs). 
The test of the usefulness of the PMEs will be when there is 
coordination between all the agencies and departments who have 
a share in federal counterdrug efforts. From this time onward, 
ONDCP will be held to the standards it defines through this 
process; the Committee strongly urges ONDCP to work within the 
Administration to ensure that the PMEs are taken seriously and 
incorporated in the budgetary and planning work of all federal 
agencies.

                     Federal Drug Control Programs

             HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............      $159,007,000
Budget estimate, fiscal year 1999.....................       162,007,000
Recommended in the bill...............................       162,007,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        +3,000,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                MISSION

    The High Intensity Drug Trafficking Areas (HIDTA) Program 
was established by the Director, ONDCP pursuant to section 1005 
of 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 seventeen 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); the Rocky Mountains (Colorado, 
Utah, and Wyoming); San Francisco Bay; Southeastern Michigan. 
Three more HIDTAs are to be designated this year: Central 
Florida; Appalachia; and Milwaukee. In addition to these 
twenty, the Director, ONDCP, has indicated his support (if not 
funding) for establishment of a HIDTA in Dallas-Fort Worth.

                             RECOMMENDATION

    The Committee recommends $162,007,000, equal to the 
President's request and to the fiscal year 1998 appropriation 
(an additional $3,000,000 for the Rocky Mountain HIDTA was 
funded through the Violent Crime Reduction Trust Fund in fiscal 
year 1998). The Committee directs ONDCP to notify the Committee 
in advance of any plans to change current funding levels for 
any HIDTA, including justification for such changes.
    The Committee includes a provision that funding shall be 
provided at no less than the fiscal year 1998 level for those 
High Intensity Drug Trafficking Areas that had been designated 
by the Director of the Office of National Drug Control Policy 
on or before February 2, 1994 and that any new High Intensity 
Drug Trafficking Areas to be designated in fiscal year 1999 
shall be funded from within the existing appropriation for this 
account.

                         miami youth initiative

    The Committee would like to point out that the South 
Florida High Intensity Drug Trafficking Area, first designated 
by ONDCP in 1990, has established programs in 11 South Florida 
communities to help reduce drug use by young people, and has 
funded drug treatment programs there as well. The Committee 
continues to expect that in awarding grants under the Drug Free 
Communities Act program, that 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.

                        SPECIAL FORFEITURE FUND

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............      $211,000,000
Budget estimate, fiscal year 1999.....................       251,000,000
Recommended in the bill...............................       215,000,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        +4,000,000
    Budget Estimate, fiscal year 1999.................       -36,000,000
                                                                        

                                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 direct 
appropriations.

                             RECOMMENDATION

    The Committee recommends $215,000,000, $36,000,000 below 
the President's request and $4,000,000 over the fiscal year 
1998 appropriation. This will provide funding for the second 
full year of the youth media campaign ($195,000,000) and 
$20,000,000 to fund the Drug Free Communities Act (DFCA).
    The Committee denies funding for a national chronic user 
study ($15,000,000), development of a drug intelligence 
architecture ($5,000,000), continuation of a drug trafficking 
flow model ($1,000,000), supplemental funding for the Justice 
Department's ``Break the Cycle'' program ($5,000,000) and 
supplemental funding for Treasury and Justice Departments to 
target heroin trafficking ($10,000,000).

                          YOUTH MEDIA CAMPAIGN

    The first year of the youth media campaign is two thirds 
over: phase one is completed and will now be the subject of 
careful evaluation. Designed to compare twelve urban areas 
against another set of twelve ``control'' cities, Phase One 
will provide both a baseline for planning the broader media 
campaigns as well as the first opportunity to measure the 
campaign's impact. The Committee recognizes that the ultimate 
determination of the benefits and costs of the media campaign 
will be in terms of changes in behavior by children and young 
people, and does not expect to see such definitive behavioral 
changes attributable to the campaign for several years. The 
Committee reminds ONDCP that a report on the outcomes of the 
campaign is required at the end of the second year of the 
program.
    Restrictions on use of the funds established in the fiscal 
year 1998 appropriation are retained. These include 
prohibitions on supplanting current anti-drug community-based 
organizations or pro bono public service time donated by 
broadcasting networks, and on the use of funds for partisan 
purposes. To ensure that the Committee can fulfill its 
oversight responsibilities, the Committee directs ONDCP to 
continue its quarterly reports to Congress. Such reports should 
include information about progress in securing private sector 
contributions and assessments of the impact of the campaign. If 
ONDCP contemplates amending or clarifying its performance 
measures of effectiveness for the campaign, the Committee 
wishes to be fully informed as well.

             media campaign target audiences and minorities

    The Committee is aware that concerns have been expressed 
regarding whether the content and media outlets utilized by the 
media campaign will adequately convey the anti-drug message to 
African-American and other minority youth. The Committee 
therefore directs ONDCP in its oversight of the media campaign 
to ensure that diversity in the target audiences is fully 
addressed, and to report to the Committee on progress in 
getting the message to minorities in the regular quarterly 
reports on the media campaign.

                    PURCHASE OF CREATIVE ADVERTISING

    In order to ensure the most efficient use of public funds, 
the Committee directs the Office of National Drug Control 
Policy (ONDCP) to utilize the existing pro bono resources 
provided by the network of advertising agencies assembled by 
the Partnership for a Drug-Free America (PDFA) as the primary 
creative advertising development vehicle for the anti-drug 
media campaign. It is the Committee's intent that ONDCP will 
only utilize other creative advertising development resources 
in the event that the PDFA advertising agency network or other 
existing pro bono resources such as the Ad Council have 
determined that they are unable to address specific projects. 
The Committee further directs ONDCP to seek donated creative 
advertising development from any resource utilized for the 
media campaign. The Committee intends ONDCP to work towards 
incentivizing participants in the program to contribute talent 
and production costs for advertising whenever possible, and 
directs ONDCP to report on its progress in this area as part of 
its quarterly reports to the Committee.

        FUNDS APPROPRIATED TO THE PRESIDENT--UNANTICIPATED NEEDS

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............  ................
Budget estimate, fiscal year 1999.....................         1,000,000
Recommended in the bill...............................         1,000,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        +1,000,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                MISSION

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

                             RECOMMENDATION

    The Committee recommends $1,000,000 for Unanticipated 
Needs, the same as the amount requested by the President and 
the amount appropriated in fiscal year 1998 through the VA-HUD 
and Independent Agencies appropriations bill.

          INFORMATION TECHNOLOGY SYSTEMS AND RELATED EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............  ................
Budget estimate, fiscal year 1999.....................  ................
Recommended in the bill...............................     2,250,000,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................    +2,250,000,000
    Budget Estimate, fiscal year 1999.................    +2,250,000,000
                                                                        

                                mission

    This account supports the emergency requirements associated 
with ensuring that federal information technology and related 
systems are Year 2000 compliant. Funds are available for 
transfer to all Federal agencies and departments except the 
Department of Defense.

                             recommendation

    The Committee has included a new emergency appropriation of 
$2,250,000,000 for Federal information technology systems and 
related activities. Funds are available for transfer to non-
defense appropriations accounts and are contingent on the 
transmission of a budget request by the President to the 
Congress. The entire amount is designated as an emergency 
requirement under the provisions of section 251(b)(2)(A) of the 
Balanced Budget and Emergency Deficit Control Act of 1985, as 
amended.

                    year 2000 technology conversion

    The Committee has become increasingly concerned about the 
cost of ensuring that Federal information technology systems 
are Year 2000 compliant.
    In February of 1997, the first government wide report on 
the cost and progress on Year 2000 was submitted to Congress. 
The total cost was estimated at $3.2 billion. Although this 
number has now been revised to $3.9 billion, by the end of the 
current fiscal year, the federal government will have obligated 
$4.7 billion. For fiscal year 1999, the Administration has 
requested approximately $1.1 billion; nonetheless, the 
Committee has already been informed that the Department of 
Treasury will need an additional $120 million for the upcoming 
fiscal year and a budget amendment is currently under review by 
the Office of Management and Budget. Industry estimates the 
federal government's cost for Year 2000 compliance will reach 
$30 billion. It is clear that the federal cost of Year 2000 
compliance remains unknown.
    The Committee remains disappointed in the lack of urgency 
and attention to detail pursued by the Administration as it 
relates to Year 2000 conversion efforts. Up until the 
appointment of the Year 2000 Conversion Council on February 4, 
1998, there was no centralized federal management structure in 
place to coordinate policy and oversight across agencies; nor 
was there a clear definition of the Year 2000 problem. Although 
there is now a government-wide coordinating body, the Committee 
is not convinced that agencies have been given the direction 
and management support needed to fully address this issue. The 
Committee also believes that there are critical Year 2000 
infrastructure systems such as telecommunications, 
transportation, utilities, and date sensitive equipment that 
have been overlooked in both the planning and budget processes. 
The Committee directs the Administration to ensure that Year 
2000 conversion efforts include the full inventory of both 
information technology and non-information systems such as 
communications and other equipment. Because of the critical 
role non-information systems play in the operation of the 
federal government on a daily basis, the Committee believes 
these systems should be treated with as much urgency as 
information systems.

information technology recommendations for the treasury-postal service 
                  and general government subcommittee

    The Committee recommends that the following funds be 
provided through this account to the departments, bureaus and 
agencies under the jurisdiction of the Subcommittee on 
Treasury, Postal Service and General Government:

                                                                        
                                                                        
                                                                        
Department of the Treasury:                                             
    Departmental Offices..............................        $2,000,000
    Automation Enhancement............................         2,762,000
    BATF..............................................         5,000,000
    Financial Management Service......................         4,000,000
    Bureau of Public Debt.............................         1,000,000
    IRS, Information Systems..........................       359,000,000
                                                       -----------------
      Subtotal, Department of the Treasury............       373,762,000
Executive Office of the President:                                      
    Office of Administration..........................        12,200,000
    Office of Management and Budget...................         1,600,000
                                                       -----------------
      Subtotal, Executive Office of the President.....        13,800,000
    National Archives.................................         5,411,000
                                                       -----------------
      Total, Subcommittee.............................       392,973,000
                                                                        

                     TITLE IV--INDEPENDENT AGENCIES

 Committee for Purchase From People Who Are Blind or Severely Disabled

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............        $1,940,000
Budget estimate, fiscal year 1999.....................         2,464,000
Recommended in the bill...............................         2,464,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................          +524,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 recommends $2,464,000, which is equal to the 
request and $524,000 above the fiscal year 1998 appropriation. 
This will allow for maintaining current levels for pay, adding 
an additional fulltime equivalent position to support increased 
workload, and $250,000 to overhaul the current information 
management system.

                      Federal Election Commission

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $31,650,000
Budget estimate, fiscal year 1999.....................        36,504,000
Recommended in the bill...............................        33,700,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        +2,050,000
    Budget Estimate, fiscal year 1999.................        -2,804,000
                                                                        

                                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 $33,700,000, a decrease of 
$2,804,000 from the amount requested by the President and an 
increase of $2,050,000 from the amounts appropriated in fiscal 
year 1998. This level of funding will support a base 
appropriation of $32,580,000, as requested by the President, 
and an additional $1,120,000 for unspecified initiatives. 
Although the Committee makes no specific assumptions regarding 
the obligation of the additional $1,120,000, FEC is directed to 
submit, prior to the obligation of funds, a plan for the 
expenditure of these funds. The Committee strongly recommends 
that the FEC target these funds to the improvement of 
enforcement procedures and preventing the unnecessary dismissal 
of appropriate enforcement actions. The Committee includes a 
new provision (Section 511) revising the appointment and 
service of the Staff Director and General Counsel of the FEC; 
this provision is similar to that which is included in H.R. 
3748, the FEC Reauthorization Act of 1999.

                   Federal Labor Relations Authority

                         salaries and expenses

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $22,039,000
Budget estimate, fiscal year 1999.....................        22,586,000
Recommended in the bill...............................        22,586,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................          +547,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 recommends $22,586,000 for the Federal Labor 
Relations Authority. This is equal to the request, and $547,000 
above the fiscal year 1998 appropriation. The increases are 
essentially to fund statutory raises, within-grade pay 
increases, and career ladder promotions.

                    General Services Administration

                         federal buildings fund

                                                                        
                                                                        
                                                                        
Appropriation:                                                          
    Appropriation, fiscal year 1998 to date...........  ................
    Budget estimate, fiscal year 1999.................  ................
    Recommended in the bill...........................      $482,100,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................      +482,100,000
    Budget Estimate, fiscal year 1999.................      +482,100,000
Limitations on availability of revenue (not an                          
 appropriation):                                                        
    Limitation on availability, fiscal year 1998 to                     
 date.................................................     4,835,934,000
    Limitation on availability, budget estimate,                        
 fiscal year 1999.....................................     5,156,833,000
    Recommended in the bill...........................     5,626,928,000
Bill compared with:                                                     
    Availability, fiscal year 1998....................      +790,994,000
    Availability, budget estimate, fiscal year 1999...      +470,095,000
                                                                        

                                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. 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 may also 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.

                             recommendation

    For fiscal year 1999, the Committee recommends a total 
limitation on obligations from the Federal Buildings Fund of 
$5,626,928,000, $790,994,000 more than the fiscal year 1998 
level, and $470,095,000 more than the amount proposed by the 
Administration for fiscal year 1999. In order to provide the 
resources necessary to carry out that program, the Committee 
has recommended a direct appropriation of $482,100,000 into the 
Federal Buildings Fund.

                      CONSTRUCTION AND ACQUISITION

                                                                        
                                                                        
                                                                        
Limitations on availability of revenue (not an                          
 appropriation):                                                        
    Limitation on availability, fiscal year 1998 to                     
 date.................................................  ................
    Limitation on availability, budget estimate,                        
 fiscal year 1999.....................................       $44,005,000
    Recommended in the bill...........................       527,100,000
Bill compared with:                                                     
    Availability, fiscal year 1998....................      +527,100,000
    Availability, budget estimate, fiscal year 1999...      +483,095,000
                                                                        

                             RECOMMENDATION

    The Committee has recommended $527,100,000 in new 
obligational authority for the fiscal year 1999 Construction 
and Acquisition program, $483,095,000 more than the amount 
recommended by the Administration. Due to a shortfall of rent 
into the Federal Buildings Fund, no funds were provided for the 
Construction and Acquisition program in fiscal year 1998.
    The Committee has provided funding for the following 
projects:
          Arkansas:
                  Little Rock courthouse, $3,436,000
          California:
                    San Diego courthouse, $15,400,000
                    San Jose courthouse, $10,800,000
          Colorado:
                    Denver courthouse, $78,173,000
          District of Columbia:
                    Southeast Federal Center Remediation, 
                $5,000,000
          Florida:
                    Jacksonville courthouse, $86,010,000
                    Orlando courthouse, $1,930,000
          Georgia;
                    Savannah courthouse, $46,462,000
          Massachusetts:
                    Springfield courthouse, $5,563,000
          Michigan:
                    Sault Ste. Marie border station, $572,000
          Missouri:
                    Cape Girardeau courthouse, $2,196,000
          Mississippi:
                    Biloxi-Gulfport courthouse, $7,543,000
          Montana:
                    Babb--Piegan border station, $6,165,000
          New York:
                    Brooklyn courthouse, $152,626,000
                    U.S. Mission to the U.N., $3,163,000
          Oregon:
                    Eugene courthouse, $7,190,000
          Tennessee:
                    Greenville courthouse, $26,517,000
          Texas:
                    Laredo courthouse, $28,105,000
          West Virginia:
                    Wheeling courthouse, $29,303,000
          Nationwide:
                    Non-prospectus construction projects, 
                $10,946,000

               department of transportation headquarters

    The Committee has not provided the funds requested by the 
Administration for design of a new headquarters building for 
the Department of Transportation. The Committee is aware that 
the General Services Administration has been authorized to 
execute a lease to provide a new headquarters facilities for 
the Department of Transportation and expects GSA to proceed 
with this project as authorized.

                        COURTHOUSE CONSTRUCTION

    The General Services Administration testified before the 
Committee that it had requested of the Office of Management and 
Budget that funds be included in its fiscal year 1999 budget to 
continue the ongoing construction program to replace many of 
the Nation's outdated and overcrowded Federal courthouses. The 
Committee is extremely disappointed that the Administration 
elected to delete those funds from GSA's budget request. Last 
year, no funds were provided for new construction of 
courthouses and other projects in order to accommodate a 
shortfall of revenue into the Federal Buildings Fund. The 
Committee believes that a continued moratorium on courthouse 
construction would have a significant adverse impact on the 
judiciary's ability to deal with its increased workload, much 
of which has been the result of actions by the Congress and the 
President to combat illegal drugs, violent crime, and illegal 
immigration. That increased workload, as well as the need to 
provide improved technology for use in case management and 
trials, and the need to provide a secure environment for 
jurors, witnesses, attorneys, litigants, and judges warrant 
continuation of the courthouse construction program. 
Accordingly, the Committee has provided funding for the 
courthouse projects recommended by the Judicial Conference of 
the United States for fiscal year 1999 and included in GSA's 
request to the Office of Management and Budget. In addition, 
the Committee has provided funds, which were also included in 
GSA's request to OMB, for completion of design of the Orlando, 
Florida, courthouse.
    The Committee recognizes the efforts of the judiciary and 
GSA to reduce the cost of courthouse construction. For example, 
the Committee understands that recent revisions to courthouse 
design standards will reduce costs by about 5%. The Committee 
further understands that courtroom utilization studies have 
been provided to GSA to aid in determining the optimum number 
of courtrooms in new projects. The Committee expects to be 
periodically updated on the implementation of these planning 
assumptions, changes to design standards and any exceptions 
thereto, and courtroom sharing policies.
    The Committee has continued a provision (Section 404) which 
prohibits the Administration from transmitting a fiscal year 
2000 budget 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 that requests be 
accompanied by a standardized courtroom utilization study for 
each facility to be constructed, replaced, or expanded.

                        build to suit contracts

    The Committee is aware of concerns about the acquisition of 
new Federal space through Build to Suit contracts. In an effort 
to have more complete information regarding this issue, the 
Committee directs the General Accounting Office to compile a 
report, no later than March 15, 1999, on the General Services 
Administration's use of Build to Suit Contracts when acquiring 
new Federal space.

                         TELECOMMUTING CENTERS

    Within the amount provided for non-prospectus construction 
projects, the Committee has provided $2,100,000 to permit the 
General Services Administration to continue operating pilot 
telecommuting centers.

                  Springfield, Virginia GSA Warehouse

    The Committee supports GSA's efforts to facilitate the 
redevelopment of the warehouse site in Springfield, Virginia. 
The Committee notes that the warehouse is in need of a new roof 
and an improved fire suppression system to ensure long-term 
occupancy. Given the growing redevelopment interest in and 
around the site as expressed by Fairfax County and private 
interests, the Committee encourages GSA to work with the County 
to identify and relocate to an alternate site or sites.
    The Committee is aware of the proposal to use the 
redevelopment of the current site as the revenue mechanism to 
finance the cost of relocation and the construction of a new, 
modern warehouse for GSA and its tenants in a Federally-owned 
facility. The Committee, therefore, encourages GSA to cooperate 
with the County in its effort to redevelop the site and the 
surrounding area.

      Springfield, Virginia Federal Employee Telecommuting Center

    The Committee is aware of the need to establish a federal 
employee telecommuting center to accomplish the reconstruction 
of the I-95/I-395/I-495 interchange and improvements to major 
overpasses in the Springfield region. Given the high number of 
Federal employees who pass through this interchange, the 
Committee encourages GSA to find the resources necessary to 
provide Federal employees an alternative site to perform work-
related activities in the event the traffic situation becomes 
unbearable.

                   U.S. Courthouse, London, Kentucky

    The existing U.S. Courthouse in London, Kentucky is a 
unique architectural structure listed on the Register of 
National Landmarks which requires careful guardianship. It is 
essential that construction of the New U.S. Courthouse is 
compatible with the historic building's architectural 
character. The original design of the new courthouse building's 
facade would achieve that goal. The original design, however, 
was subsequently changed during the project's design process. 
It is necessary that GSA reincorporate the elements of the 
buildings facade which were included in the building's original 
design in order to maintain the architectural integrity of both 
buildings. To facilitate FSA in this regard, the Committee has 
included a provision (Sec. 411) directing the Administrator of 
General Services to ensure that the materials and design used 
for the project are fully compatible with the facade of the 
existing London, Kentucky Federal Building-U.S. Courthouse. The 
Committee takes this action to ensure compatibility with the 
existing historic structure in London and to ensure that it 
will not endanger the statelines of this historic building. The 
construction of the London, Kentucky project should in no way 
be diminished in order to achieve this goal.

                   NOAA Laboratory, Boulder, Colorado

    The Administrator of General Services may, in consultation 
with the Administrator of NOAA, and after notifying the House 
Committee on Transportation and Infrastructure and the Senate 
Committee on Environment and Public Works, increase the size of 
the NOAA laboratory in Boulder, Colorado, to allow up to 
260,000 total square feet of occupiable space if it becomes 
feasible for NOAA to build out unfinished areas in the basement 
Blocks D and A of the new facility.

                        REPAIRS AND ALTERATIONS

                                                                        
                                                                        
                                                                        
Limitations on availability of revenue (not an                          
 appropriation):                                                        
    Limitation on availability, fiscal year 1998 to                     
 date.................................................      $300,000,000
    Limitation on availability, budget estimate,                        
 fiscal year 1999.....................................       668,031,000
    Recommended in the bill...........................       655,031,000
Bill compared with:                                                     
    Availability, fiscal year 1998....................      +355,031,000
    Availability, budget estimate, fiscal year 1999...       -13,000,000
                                                                        

                             RECOMMENDATION

    The Committee recommends $655,031,000 in new obligational 
authority for the Repairs and Alterations program, $355,031,000 
more than the amount provided in fiscal year 1998 and 
$13,000,000 less than the amount proposed by the 
Administration. The Committee has also included language in the 
bill which provides that $19,000,000 of the total shall not be 
available for obligation until September 30, 1999.
    The Committee has included in bill language the projects 
and activities to be undertaken with the funds provided for 
Repairs and Alterations but has not designated the amount for 
each project in order to provide GSA with additional 
flexibility to carry out the Repairs and Alterations program. 
Within the total provided for Repairs and Alterations, the 
Committee has provided $18,500,000 for the Chlorofluorocarbon 
Program and $18,500,000 for the Energy Program.
    The Committee directs the General Services Administration, 
within 30 days of enactment of this Act, to provide the 
Committees on Appropriations of the House and the Senate with a 
plan for executing the fiscal year 1999 Repairs and Alterations 
program.

                     irs brookhaven service center

    The Committee appreciates that the General Services 
Administration is moving forward on the long delayed renovation 
of the Internal Revenue Service's Brookhaven Service Center in 
Holtsville, New York. After four years of postponements, the 
Committee fully expects the IRS to relocate its employees to 
temporary quarters so the construction phase can commence no 
later than April of 1999. Accordingly, the Committee action 
reflects approval of GSA's full budget request of $20,019,000 
for the project. The Committee has also included language in 
the bill that provides that $5,700,000 of the funds provided 
under GSA's Repairs and Alterations account in Public Law 103-
229 for the IRS Service Center in Holtsville, New York shall 
remain available until September 30, 1999.

                    INSTALLMENT ACQUISITION PAYMENTS

                                                                        
                                                                        
                                                                        
Limitations on availability of revenue (not an                          
 appropriation):                                                        
    Limitation on availability, fiscal year 1998 to                     
 date.................................................      $142,542,000
    Limitation on availability, budget estimate,                        
 fiscal year 1999.....................................       215,764,000
    Recommended in the bill...........................       215,764,000
Bill compared with:                                                     
    Availability, fiscal year 1998....................       +73,222,000
    Availability, budget estimate, fiscal year 1999...  ................
                                                                        

                             RECOMMENDATION

    The Committee recommends new obligational authority of 
$215,764,000 for the Installment Acquisition Payments account, 
the same as the amount requested by the Administration and 
$73,222,000 above the amount provided in fiscal year 1998.

                            RENTAL OF SPACE

                                                                        
                                                                        
                                                                        
Limitations on availability of revenue (not an                          
 appropriation):                                                        
    Limitation on availability, fiscal year 1998 to                     
 date.................................................    $2,275,340,000
    Limitation on availability, budget estimate,                        
 fiscal year 1999.....................................     2,583,261,000
    Recommended in the bill...........................     2,583,261,000
Bill compared with:                                                     
    Availability, fiscal year 1998....................      +307,921,000
    Availability, budget estimate, fiscal year 1999...  ................
                                                                        

                             RECOMMENDATION

    The Committee recommends new obligational authority of 
$2,583,261,000 for the Rental of Space account, the same as the 
amount requested by the Administration and $307,921,000 more 
than the amount provided in fiscal year 1998.

                          BUILDING OPERATIONS

                                                                        
                                                                        
                                                                        
Limitations on availability of revenue (not an                          
 appropriation):                                                        
    Limitation on availability, fiscal year 1998 to                     
 date.................................................    $1,331,789,000
    Limitation on availability, fiscal year 1999......     1,554,772,000
    Recommended in the bill...........................     1,554,772,000
Bill compared with:                                                     
    Availability, fiscal year 1998....................      +222,983,000
    Availability, budget estimate, fiscal year 1999...  ................
                                                                        

                             RECOMMENDATION

    The Committee recommends new obligational authority of 
$1,554,772,000 for Building Operations, the same as the budget 
request, and $222,983,000 above the amount provided in fiscal 
year 1998. Language has been included in the bill which 
provides that $223,000,000 of the amount provided shall not be 
available for obligation until September 30, 1999.

                         POLICY AND OPERATIONS

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............      $107,487,000
Budget estimate, fiscal year 1999.....................       106,494,000
Recommended in the bill...............................       108,494,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        +1,007,000
    Budget Estimate, fiscal year 1999.................        +2,000,000
                                                                        

                                MISSION

    This appropriations account provides for Government-wide 
policy, planning, and oversight associated with real and 
personal property asset management, supplies, information 
technology, electronic commerce, transportation and travel 
management, acquisition, and Federal advisory committees 
management. In addition, this activity provides for the 
internal policy, management, oversight, and coordination of all 
GSA programs.

                             RECOMMENDATION

    The Committee has recommended $108,494,000 for Policy and 
Operations, $2,000,000 above the budget request and $1,007,000 
above the amount appropriated in fiscal year 1998.

             PILOT PROJECT IN DIGITAL LEARNING TECHNOLOGIES

    The Committee has included $2,000,000 to continue the pilot 
project for the development, demonstration, and research of 
emerging digital learning technologies. These funds will be 
used to continue the development of hardware and software 
capabilities, network infrastructure, and other costs that will 
be the basis for the 21st Century Distributed Learning 
Environment in Education.

                         1999 women's world cup

    The Committee encourages the General Services 
Administration to provide planning and logistical assistance to 
the organizing committee for the 1999 Women's World Cup soccer 
tournament. Such assistance may include the provision of 
surplus space and furniture, operational and communications 
equipment and support, and fleet and supply resources.

                   world alpine skiing championships

    The Committee encourages the General Services 
Administration to provide logistical assistance to the 
organizing committee for the 1999 World Alpine Skiing 
Championships in Vail, Colorado.

                 ars horticultural research laboratory

    The Committee is aware that the Agricultural Research 
Service (ARS) is in the process of moving its Horticultural 
Research Laboratory from Orlando, Florida, to Fort Pierce, 
Florida. The Committee is also aware that the City of Orlando, 
which sold the land to ARS in 1952 for $1.00, wishes to reclaim 
the property for use as green space. The Committee supports 
this effort and recommends that the General Services 
Administration move forward expeditiously with the transfer of 
this excess property to the City of Orlando.

                     Security at Federal Buildings

    Our Nation has experienced a disturbing trend of increased 
incidences of intentional attacks on public buildings and other 
facilities. The Committee is concerned that Federal buildings, 
such as the Murrah Building in Oklahoma City, are inviting 
targets for such attacks. The Committee believe that it is 
incumbent on GSA to do all it can to mitigate the effects of 
these incidents not only through increased security measures, 
but by fostering research into design, engineering, and 
construction methods for new construction and by refitting 
existing structures so that they may better resist intentional 
attacks.

                      Office of Inspector General

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $33,870,000
Budget estimate, fiscal year 1999.....................        32,000,000
Recommended in the bill...............................        32,000,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        -1,870,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 $32,000,000 for the Office of 
Inspector General, the same as the budget request and 
$1,870,000 below the amount appropriated in fiscal year 1998.

           ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............        $2,208,000
Budget estimate, fiscal year 1999.....................         2,241,000
Recommended in the bill...............................         2,241,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................           +33,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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.

                             RECOMMENDATION

    The Committee recommends $2,241,000 for Allowances and 
Office Staff for Former Presidents, the same as the budget 
request and $33,000 above the amount appropriated in fiscal 
year 1998. The following table displays a breakdown for this 
account for fiscal year 1999.

                        FY 1999 BUDGET-ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS                        
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                     FY 1999 request, former Presidents         
                                                           -----------------------------------------------------
                                                              Ford    Carter   Reagan    Bush    Widows   Totals
----------------------------------------------------------------------------------------------------------------
Personal compensation.....................................       96       96       96       96        0      384
Personnel benefits........................................       26        5       24       39        0       94
Benefits for former personnel:                                                                                  
    Pensions..............................................      152      152      152      152       20      628
Travel....................................................       50        2       26       57        0      135
Rental payments to GSA....................................       77       93      275      138        0      583
Communications, utilities and miscellaneous charges:                                                            
    Telephone.............................................       17       28       15       18        0       78
    Postage...............................................        7       22       10       12        2       53
Printing..................................................        7        4       14        8        0       33
Other services............................................       14       79       69       18        0      180
Supplies and materials....................................        9       14       16        9        0       48
Equipment.................................................        5        9        3        8        0       25
                                                           -----------------------------------------------------
      Total obligations...................................      460      504      700      555       22    2,241
----------------------------------------------------------------------------------------------------------------

          GENERAL PROVISIONS--GENERAL SERVICES ADMINISTRATION

    Section 401. The Committee continues the provision that 
provides that costs included in rentals received from 
government corporations for operations, protection, 
maintenance, upkeep, repair and improvement shall be credited 
to the Federal Buildings Fund.
    Section 402. The Committee continues the provision 
providing funds for the hire of motor vehicles.
    Section 403. The Committee continues the provision 
providing that funds made available for activities of the 
Federal Buildings Fund may be transferred between 
appropriations.
    Section 404. The Committee continues the provision 
prohibiting the use of funds to submit a request for courthouse 
construction that do not meet design guide standards and 
priorities of the Judicial Conference.
    Section 405. The Committee continues the provision 
providing that 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 rent rates.
    Section 406. The Committee continues the provision 
providing for Information Technology Fund repayment from 
sponsored projects that realize program savings.
    Section 407. The Committee continues a provision which 
permits GSA to pay small claims (up to $250,000) made against 
the Government.
    Section 408. The Committee includes a new provision which 
clarifies that section 407 of Public Law 104-208 does not apply 
to telecommuting centers established as part of the 
demonstration telecommuting center project in the Washington, 
DC, metropolitan area and establishes that the Administrator of 
the General Services Administration is to set user fees for 
Federal agency use of flexiplace telecommuting centers 
established as part of the demonstration project. In addition, 
the language redefines the costs that a Federal agency user fee 
must recover and establishes a date by which full recovery of 
operating costs is expected.
    Section 409. The Committee understands that the United 
States Navy is considering excessing its Observatory Time 
Service Substation in southern Miami-Dade County, Florida. The 
best use of this facility is to use this 76 acre site's 
existing Very Long Baseline Interferometry (``VLBI'') antenna 
and ancillary hardware and buildings so that the University of 
Miami can establish a satellite data ground receiving station 
on the property. This station will be used by the University of 
Miami for research and educational activities in land and ocean 
remote sensing, oceanographic and geological science, and 
environmental science. Considerable benefits will accrue to the 
United States from these activities. If and when control of 
this facility passes to GSA, the Committee directs GSA to sell 
this property to the University of Miami by September 30, 1999 
at a net price that reflects its appraised value and the 
benefits to the United States of the University of Miami's use 
of the property
    Section 410. The Committee has included a new provision 
which provides that the Administrator of General Services shall 
convey to the City of Racine, Wisconsin, by negotiated sale, 
the vacant Army Reserve property located at the intersection of 
24th and Center Streets in Racine, Wisconsin, to permit the 
City to use the property for water and wastewater utilities.
    Section 411. The Committee includes a new provision 
regarding the design for the facade of the US Courthouse in 
London, Kentucky.

           John F. Kennedy Assassination Records Review Board

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............        $1,600,000
Budget estimate, fiscal year 1999.....................  ................
Recommended in the bill...............................  ................
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................  ................
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 no appropriation for the JFK 
Assassination Records Review Board. Per Public Law 105-25, 
fiscal year 1998 was the last full year of operation of the 
board.

                     Merit Systems Protection Board

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $25,290,000
Budget estimate, fiscal year 1999.....................        25,805,000
Recommended in the bill...............................        25,805,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................          +515,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                MISSION

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

                             RECOMMENDATION

    The Committee recommends $25,805,000, the same as the 
request and $515,000 above the fiscal year 1998 appropriation. 
The Committee is strongly supportive of efforts by the Merit 
Systems Protection Board (MSPB) to automate and streamline its 
information processing, and make more extensive use of 
telecommunications. At the same time, it is essential that MSPB 
continue to maintain the quality of its adjudicative processes 
and avoid increasing workloads solely for the sake of 
efficiency.

 Payment to the Morris K. Udall Scholarship and Excellence in National 
                    Environmental Policy Trust Fund

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............        $1,750,000
Budget estimate, fiscal year 1999.....................         2,000,000
Recommended in the bill...............................  ................
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        -1,750,000
    Budget Estimate, fiscal year 1999.................        -2,000,000
                                                                        

                                MISSION

    Public Law 102-259 established the Morris K. Udall 
Scholarship and Excellence in National Environmental Policy 
Trust Fund. General Fund payments to that fund are invested in 
Treasury securities. Interest earnings from the investments are 
used to carry out the activities of the Morris K. Udall 
Scholarship and Excellence in National Environmental Policy 
Foundation. The Foundation awards scholarships, fellowships, 
and grants and funds activities of the Udall Center for Studies 
in Public Policy.

                             RECOMMENDATION

    The Committee has not provided for a General Fund payment 
to the Morris K. Udall Scholarship and Excellence in National 
Environmental Policy Trust Fund for fiscal year 1999.

          payment to the environmental dispute resolution fund

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............  ................
Budget estimate, fiscal year 1999.....................        $4,250,000
Recommended in the bill...............................         4,250,000
Bill compared with:                                                     
  Appropriation, fiscal year 1998.....................        +4,250,000
  Budget Estimate, fiscal year 1999...................  ................
                                                                        

                                mission

    Public Law 105-156 established the United States Institute 
for Environmental Conflict Resolution as part of the Morris K. 
Udall Scholarship and Excellence in National Environmental 
Policy Foundation. It also established in the Treasury an 
Environmental Dispute Resolution Fund to be available to 
establish and operate the Institute. The purpose of the 
Institute is to conduct environmental conflict resolution and 
training.

                             recommendation

    The Committee has provided $4,250,000 for capitalization of 
the Environmental Dispute Resolution Fund and operation of the 
United States Institute for Environmental Conflict Resolution 
as proposed by the Administration.

              National Archives and Records Administration

                           OPERATING EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............      $205,166,500
Budget estimate, fiscal year 1999.....................       230,025,000
Recommended in the bill...............................       216,753,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................       +11,586,500
    Budget Estimate, fiscal year 1999.................       -13,272,000
                                                                        

                                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 the review of records for declassification of 
classified security information.

                             RECOMMENDATION

    The Committee recommends $216,753,000 for Operating 
Expenses of the National Archives and Records Administration 
(NARA), $13,272,000 below the budget request and $11,586,500 
above the amount appropriated in fiscal year 1998. The amount 
appropriated in this account includes: $6,220,000 to maintain 
current services; $1,226,000 for the records centers 
reimbursable-program development effort; $2,256,000 for front-
end records management; $2,100,000 for additional work 
associated with the management of electronic records; and 
$1,157,000 for upgrades to NARANET. In addition, the Committee 
recommends that $5,411,000 for work to ensure that NARA's 
computer systems will be Year 2000 compliant be provided within 
the amount appropriated for the emergency appropriation, 
``Funds Appropriated to the President, Information Technology 
Systems and Related Expenses.'' That amount includes $1,373,000 
for work within NARA's base program, $350,000 for replacement 
of NARA's personnel and payroll system, $100,000 for work 
associated with the promotion of front-end records management, 
$245,000 for work associated with the management of electronic 
records, and $3,343,000 for NARANET upgrades.

                         CLASSIFICATION REFORM

    The Committee directs the Archivist of the United States to 
submit to the Committee, by February 1, 1999, 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, 1999, 
an agency-by-agency report on fiscal year 1998 security 
classification costs (including contractor costs), and an 
estimate of fiscal year 1999 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 12958 
and to submit, by February 1, 1999, 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.

                           veterans' records

    The Committee is aware that there are frequently long 
delays in obtaining a veteran's personnel records from the 
National Personnel Records Center in St. Louis, Missouri. These 
records are essential for the Department of Veterans Affairs to 
offer effective medical assistance or provide benefits. The 
National Archives and Records Administration is directed to 
submit a report on this problem to the Committees on 
Appropriations by December 31, 1998. The report should include 
a plan for improving operations at the center such that all 
inquiries can be responded to in 10 days or less.

                        REPAIRS AND RESTORATION

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $14,650,000
Budget estimate, fiscal year 1999.....................        10,450,000
Recommended in the bill...............................        10,450,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................        -4,200,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                MISSION

    This appropriation provides for the repair, alteration, and 
improvement of Archives facilities and Presidential libraries 
nationwide. It enables the National Archives to maintain its 
facilities in proper condition for visitors, researchers, and 
employees, and also maintain the structural integrity of the 
buildings.

                             RECOMMENDATION

    The Committee recommends $10,450,000, the same as the 
budget request and $4,200,000 below the amount appropriated in 
fiscal year 1998.
    The amount provided includes $4,000,000 for the design and 
construction of new encasements for the Charters of Freedom and 
$2,000,000 for a concept design for the renovation of the 
National Archives Building in Washington, DC, as proposed by 
the Administration.

                RENOVATION OF NATIONAL ARCHIVES BUILDING

    The Committee recognizes that the National Archives 
Building is in serious need of a major renovation. The 
Committee is concerned, however, that the cost of such a 
renovation could be prohibitive given the anticipated budgetary 
climate. A requirements study completed in March of 1997 
identified four different scenarios for renovation of the 
building with costs ranging from $70,000,000 to over 
$300,000,000. The Committee is also aware that renovations to 
the Rotunda will be required in order to accommodate the 
reencased Charters of Freedom. Accordingly, the Committee 
directs that the plans for renovation of the National Archives 
Building be structured such that the work required in the 
Rotunda to accept the newly encased Charters of Freedom could 
proceed independently of the renovation of the remainder of the 
building.

        National Historical Publications and Records Commission

                             GRANTS PROGRAM

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............        $5,500,000
Budget estimate, fiscal year 1999.....................         6,000,000
Recommended in the bill...............................         6,000,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................          +500,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 and Records Administration, 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 $6,000,000, the same as the budget 
request, and $500,000 above the amount appropriated in fiscal 
year 1998.

                      Office of Government Ethics

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............        $8,265,000
Budget estimate, fiscal year 1999.....................         8,492,000
Recommended in the bill...............................         8,492,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................          +227,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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. It monitors compliance with 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. OGE also 
consults with and assists various officials in evaluating the 
effectiveness of applicable laws and the resolution of 
individual problems, and prepares 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. Finally, OGE 
issues and amends 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 recommends $8,492,000, equal to the 
President's request and $227,000 above the fiscal year 1998 
appropriation. This increase is to fund pay raise annualization 
and to maintain current levels. The Committee supports 
initiatives being undertaken by OGE to streamline its 
communications processes and its training programs.

                     Office of Personnel Management

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $85,350,000
Budget estimate, fiscal year 1999.....................        85,350,000
Recommended in the bill...............................        85,350,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................  ................
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 recommends $85,350,000, equal to the 
President's request and to the fiscal year 1998 appropriation. 
This reflects increases to annualize pay raises and 
corresponding benefits, offset by reductions in equipment and 
service costs.

                             official time

    The Committee is aware that the Office of Personnel 
Management is in the process of compiling a report, to be 
submitted by December 1, 1998, on the use of official time by 
federal employees. The Committee remains aware of concerns 
about the amount of official time taken by federal employees 
and may revisit this issue after reviewing the results of the 
forthcoming report.

                             generic drugs

    Last year the Committee noted that the total cost of 
prescription drugs under the Federal Employees Health Benefit 
Program (``FEHBP'') would fall by nearly $300 million a year if 
the use of generic drugs increased from its current level of 
about 30 percent to 50 percent. The Committee directed OPM to 
report by February 1, 1998 on the steps it has taken to 
encourage the use of generic drugs in the FEHBP. OPM reported 
that its negotiations for the 1998 contract year resulted in 
four carriers modifying their benefit packages to include a 
reimbursement cost differential which gives a preference to 
generic drugs.
    The Committee remains concerned about rising health costs 
under the FEHBP. The Committee directs OPM to report by 
February 1, 1999 on the number of FEHBP health plans and the 
number of Federal employees and retirees covered by those plans 
that as of January 1, 1999 require the use of generic drugs in 
those cases where they are less expensive than non-generic 
drugs and neither the prescribing physician nor the patient has 
requested the use of non-generic drugs. Similar data should be 
provided by OPM for January 1, 1998 and January 1, 1997.

               family-friendly workplace advocacy office

    During fiscal year 1999, the Office of Personnel Management 
(OPM) shall establish an independent office to be known as the 
Family-Friendly Workplace Advocacy Office which shall report 
directly to the Director of OPM. The Advocacy Office shall 
receive concerns and suggestions from Federal employees 
government-wide regarding agency implementation of family-
friendly programs. Family-friendly programs are defined as 
leave programs, telecommuting, alternative work schedules, job 
sharing, and part-time employment.
    The Advocacy Office shall provide information to employees 
regarding the laws and regulations which govern family-friendly 
policies as well as information regarding avenues of redress 
available for complaints. Where there is an allegation that an 
agency is in noncompliance with a government-wide law or 
regulation, or with its own internal policy, the Advocacy 
Office shall make appropriate inquiries of and recommendations 
to employees and agency officials in the interest of 
resolution.
    The functions of the Advocacy Office shall be to assist 
Federal employees and agencies in resolving problems with 
family-friendly workplace policies; identify administrative or 
regulatory obstacles to implementing family-friendly policies 
and practices; and propose regulatory or legislative changes 
where needed.
    No later than 180 days after the end of the Fiscal Year, 
OPM shall report to the Committee on the work of the Advocacy 
Office, and provide recommendations regarding statutory or 
administrative improvements which may be needed in family-
friendly programs.

                      Office of Inspector General

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............          $960,000
Budget estimate, fiscal year 1999.....................           960,000
Recommended in the bill...............................           960,000
Bill compared with:                                     ................
    Appropriation, fiscal year 1998...................  ................
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 recommends $960,000, equal to the President's 
request and the fiscal year 1998 appropriation.

      GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEES HEALTH BENEFITS

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............    $4,338,000,000
Budget estimate, fiscal year 1999.....................     4,632,000,000
Recommended in the bill...............................     4,632,000,000
Bill compared with:                                     ................
    Appropriation, fiscal year 1998...................      +294,000,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 1998 to date...............       $32,000,000
Budget estimate, fiscal year 1999.....................        35,000,000
Recommended in the bill...............................        35,000,000
Bill compared with:                                     ................
    Appropriation, fiscal year 1998...................        +3,000,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 1998 to date...............    $8,336,000,000
Budget estimate, fiscal year 1999.....................     8,682,297,000
Recommended in the bill...............................     8,682,297,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................      +346,297,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 1998 to date...............        $8,450,000
Budget estimate, fiscal year 1999.....................         8,720,000
Recommended in the bill...............................         8,720,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................          +270,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 recommends $8,720,000, equal to the 
President's request and $270,000 above the fiscal year 1998 
appropriation.

                        United States Tax Court

                         SALARIES AND EXPENSES

                                                                        
                                                                        
                                                                        
Appropriation, fiscal year 1998 to date...............       $33,921,000
Budget estimate, fiscal year 1999.....................        34,490,000
Recommended in the bill...............................        34,490,000
Bill compared with:                                                     
    Appropriation, fiscal year 1998...................          +569,000
    Budget Estimate, fiscal year 1999.................  ................
                                                                        

                                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 $34,490,000, the same as the 
budget request, and $569,000 more than the amount appropriated 
in fiscal year 1998.

                      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 the provision 
prohibiting the transfer of control over the Federal Law 
Enforcement Training Center out of the Department of the 
Treasury.
    Section 505. The Committee continues the provision 
concerning employment rights of Federal employees who return to 
their civilian jobs after assignment with the Armed Forces.
    Section 506. The Committee continues the provision 
concerning compliance with the Buy American Act.
    Section 507. The Committee continues the provision 
concerning prohibition of contracts which use certain goods not 
made in America.
    Section 508. The Committee continues the provision 
prohibiting contract eligibility where fraudulent intent has 
been proven in affixing ``Made in America'' labels.
    Section 509. The Committee continues and modifies the 
provision providing that fifty percent of unobligated balances 
may remain available for certain purposes.
    Section 510. The Committee continues the provision 
restricting 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 511. The Committee includes a new provision 
revising the appointment and service of the Staff Director and 
General Counsel of the Federal Election Commission.
    Section 512. The Committee has included a new provision 
authorizing the payment of attorneys fees, costs and sanctions 
by the Federal government in the case Association of American 
Physicians and Surgeons, Inc. v. Clinton from the White House 
Office Salaries and Expenses account, should those payments be 
required.
    Section 513. The Committee has included a new provision 
authorizing the Inspector General of the U.S. Postal Service to 
audit or oversee the audit of the Postal Service's financial 
statements in order to bring the Postal Service in line with 
accountability standards expected of other federal agencies.
    Section 514. The Committee retains a provision which would 
prohibit the expenditure of funds for abortions under the 
FEHBP.
    Section 515. The Committee retains a provision which would 
authorize the expenditure of funds for abortions under the 
FEHBP if the life of the mother is in danger or the pregnancy 
is the result of an act of rape or incest.
    Section 516. The Committee has included a new provision 
which provides that no funds may be expended by the Office of 
Personnel Management to enter into or renew a health benefits 
plan which provides for prescription drugs unless the plan also 
provides for all prescription contraceptive drugs or devices, 
or generic equivalents, approved by the Food and Drug 
Administration, or provides benefits for outpatient services 
provided by a health care professional unless such plan also 
provides equivalent benefits for outpatient contraceptive 
services.

              TITLE VI--GOVERNMENTWIDE GENERAL PROVISIONS

                Departments, Agencies, and Corporations

    Section 601. The Committee continues the provision 
authorizing agencies to pay costs of travel to the United 
States for the immediate families of Federal employees assigned 
to foreign duty in the event of a death or 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 limitations 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 
providing that no funds may be used to pay any person filling a 
nominated position that has been rejected by the Senate.
    Section 611. The Committee continues the provision 
precluding the financing of groups by more than one Federal 
agency 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 employees.
    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 continues the provision 
prohibiting the expenditure of funds for implementation of 
agreements in nondisclosure policies unless certain provisions 
are included.
    Section 623. The Committee continues the provision 
prohibiting propaganda, publicity and lobbying by executive 
agency personnel in support or defeat of legislative 
initiatives.
    Section 624. The Committee continues the provision 
directing OMB to provide an accounting statement and report on 
the cumulative costs of and benefits of Federal regulatory 
programs.
    Section 625. The Committee continues the provision 
prohibiting any Federal agency from disclosing an employee's 
home address to any labor organization, absent employee 
authorization or court order.
    Section 626. The Committee continues the provision 
directing the Secretary of the Treasury to establish scientific 
canine explosive detection standards.
    Section 627. The Committee continues the provision 
prohibiting funds to be used to provide non-public information 
such as mailing or telephone lists to any person or 
organization outside the Government without the approval of the 
Committees on Appropriations.
    Section 628. The Committee includes a new provision 
amending the Ethics Reform Act of 1989 to provide that no 
adjustment shall take effect in fiscal year 1999 in the rates 
of basic pay for the statutory pay systems under section 5303 
of title 5, United States Code.
    Section 629. The Committee continues the provision 
prohibiting the use of funds for propaganda and publicity 
purposes not authorized by Congress.
    Section 630. The Committee continues the provision 
prohibiting the purchase of new technology not Year 2000 
compliant.
    Section 631. The Committee continues the provision 
prohibiting the importation of any goods manufactured by forced 
or indentured child labor.
    Section 632. The Committee continues and modifies by making 
permanent the provision prohibiting the use of funds for paying 
``Sunday Premium Pay'' to an employee, unless the work was 
actually performed.
    Section 633. The Committee continues the provision 
prohibiting the payment of any employee who prohibits, 
threatens or prevents another employee from communicating with 
Congress.
    Section 634. The Committee includes a new provision 
amending Sec. 404(a) of the Government Management Reform Act, 
authorizing OMB to conduct a pilot program on financial 
reporting and additionally, to include the participation of the 
Inspector General.
    Section 635. The Committee includes a new provision 
authorizing funds appropriated for 1999 to be available for 
interagency funding of specific initiatives for the National 
Science and Technology Council.
    Section 636. The Committee includes a new provision 
extending the period of mandatory use of FTS 2000 contracts by 
Federal agencies as proposed by the Administration. The 
Committee has amended the provision to provide that mandatory 
use shall continue until September 30, 1999, or until the end 
of the current FTS 2000 contracts, whichever is sooner.
    Section 637. The Committee includes a new provision to 
promote protection of Federal law enforcement officers who 
intervene in certain situations.
    Section 638. The Committee has included a new provision 
which permits the Administrator of General Services to provide 
up to $3,000,000 in government-wide credit card rebates to fund 
a program management office within the Joint Financial 
Management Improvement Program for the development of 
requirements for the financial management software schedule. 
The Administration had proposed to fund this activity with a 
direct appropriation to the Joint Financial Management 
Improvement Program.
    Section 639. The Committee has included a new provision 
reforming Federal firefighters overtime pay.
    Section 640. The Committee has included a new provision 
requiring a review by the Office of National Drug Control 
Policy on the coordination of Southwest border counterdrug 
activities.
    Section 641. The Committee includes a new provision that 
provides for fiscal year 1999 and each fiscal year thereafter, 
each executive agency of the Federal government shall make 
available at a minimum $50,000 for expenses necessary to carry 
out a flexiplace work telecommuting program.
    Section 642. The Committee includes a new provision to 
amend permanent law to make Senior Executive Service 
Presidential Rank Awards based upon base salary percentages of 
20 percent (for ``Meritorious Awards'') and 35 percent 
(``Distinguished Awards'') rather than the current dollar 
amounts.
    Section 643. The Committee includes a new provision to 
increase the formula used to calculate the aggregate amount 
available for performance awards to 10 percent of the Senior 
Executive Service pay pool or 20 percent of the average of 
annual rates of basic pay.
    Section 644. The Committee includes a new provision that 
revises the definition of ``servere economic conditions'' in 
section 5303 and 5304 of Title 5. The provision also sets the 
federal employee pay adjustment for fiscal year 1999 at 3.1 
percent, the level included in the President's fiscal year 1999 
budget.
    Section 645. The Committee continues the provision 
prohibiting Federal training not directly related to the 
performance of official duties.
    Section 646. The Committee includes a new provision which 
provides that the United States Trade Representative shall be 
responsible for the formation, coordination, and oversight of 
foreign policy related to international postal services and 
international delivery services, except that the Trade 
Representative may not negotiate or conclude any treaty, 
convention, or other international agreement if such treaty, 
convention, or agreement would, with respect to any class of 
mail or type of mail service, grant an undue or unreasonable 
preference to the Postal Service, a private provider of 
international postal services, or any other person. The 
language also provides that the Postal Service may enter into 
such commercial and operational contracts relating to 
international postal services as it considers necessary, except 
that the Postal Service may not enter into any contract with an 
agency of a foreign government if it would grant an undue or 
unreasonable preference to the Postal Service with respect to 
any class of mail or type of mail service.
    Section 647. The Committee includes a new provision which 
provides that no funds appropriated to the Postal Service in 
this or any other Act may be expended by the Postal Service to 
initiate new non-postal commercial activities.

    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 1999, 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 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

----------------------------------------------------------------------------------------------------------------
                                                                 Account from which transfer is                 
   Account to which transfer is to be made          Amount                 to be made                 Amount    
----------------------------------------------------------------------------------------------------------------
State and local entities.....................       81,007,000  Federal Drug Programs--HIDTA...       81,007,000
Federal departments..........................       81,000,000  Federal Drug Programs--HIDTA...       81,000,000
State and local entities.....................       13,000,000  Violent Crime Reduction Trust         13,000,000
                                                                 Fund--ONDCP.                                   
Federal departments..........................          334,000  Special Assistance to the                334,000
                                                                 President and the Official                     
                                                                 Residence of the Vice                          
                                                                 President, Operating Expenses.                 
Federal departments..........................       16,000,000  Office of National Drug Control       16,000,000
                                                                 Policy S&E--Counterdrug                        
                                                                 Technology Assessment Center.                  
Federal departments..........................      195,000,000  Special Forfeiture Fund........      195,000,000
Federal departments..........................    2,250,000,000  Information Technology Support     2,250,000,000
                                                                 and Related Fund.                              
Personnel Management.........................       91,236,000  Trust Funds of the Office of          91,236,000
                                                                 Personnel Management.                          
Inspector General, OPM.......................        9,145,000  Appropriation Trust Funds......        9,145,000
Merit Systems Protection Board...............        2,430,000  Civil Service Retirement and           2,430,000
                                                                 Disability Trust Fund.                         
U.S. Customs Service.........................        3,000,000  Harbor Maintenance Fee Account.        3,000,000
U.S. Customs Service.........................        8,000,000  Automation Enhancement.........        8,000,000
Bureau of Alcohol, Tobacco and Firearms......        3,700,000  Automation Enhancement.........        3,700,000
Departmental Offices.........................       19,490,000  Automation Enhancement.........       19,490,000
Federal Buildings Fund.......................        6,707,000  Pennsylvania Avenue Activities.        6,707,000
Secretary of the Treasury....................          628,000  Allowances and Office Staff for          628,000
                                                                 Former Presidents.                             
----------------------------------------------------------------------------------------------------------------

                          Rescission of Funds

    In compliance with clause 1(b) of rule X of the House of 
Representatives, the Committee reports that it recommends no 
rescissions in the bill.

                        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):

        SECTION 306 OF THE FEDERAL ELECTION CAMPAIGN ACT OF 1971

                      federal election commission

  Sec. 306. (a) * * *

           *       *       *       *       *       *       *

  (f)(1) The Commission shall have a staff director and a 
general counsel who shall be appointed [by the Commission] by 
an affirmative vote of not less than 4 members of the 
Commission and may not serve for a term of more than 4 
consecutive years without reappointment in accordance with this 
paragraph. An individual appointed as a staff director or 
general counsel to fill a vacancy occurring other than by the 
expiration of a term of office shall be appointed only for the 
unexpired term of the individual he or she succeeds. An 
individual serving as staff director or general counsel may not 
serve in such position after the expiration of the individual's 
term unless reappointed in accordance with this paragraph. The 
staff director shall be paid at a rate not to exceed the rate 
of basic pay in effect for level IV of the Executive Schedule 
(5 U.S.C. 5315). The general counsel shall be paid at a rate 
not to exceed the rate of basic pay in effect for level V of 
the Executive Schedule (5 U.S.C. 5316). With the approval of 
the Commission, the staff director may appoint and fix the pay 
of such additional personnel as he or she considers desirable 
without regard to the provisions of title 5, United States 
Code, governing appointments in the competitive service.

           *       *       *       *       *       *       *

  (5) Nothing in this Act may be construed to prohibit any 
individual serving as an acting general counsel of the 
Commission from performing any functions of the general counsel 
of the Commission.

                              ----------                              


                      TITLE 39, UNITED STATES CODE



           *       *       *       *       *       *       *
PART I--GENERAL

           *       *       *       *       *       *       *


CHAPTER 4--GENERAL AUTHORITY

           *       *       *       *       *       *       *


[Sec. 407. International postal arrangements

    [(a) The Postal Service, with the consent of the President, 
may negotiate and conclude postal treaties or conventions, and 
may establish the rates of postage or other charges on mail 
matter conveyed between the United States and other countries. 
The decisions of the Postal Service construing or interpreting 
the provisions of any treaty or convention which has been or 
may be negotiated and concluded shall, if approved by the 
President, be conclusive upon all officers of the Government of 
the United States.
    [(b) The Postal Service shall transmit a copy of each 
postal convention concluded with other governments to the 
Secretary of State, who shall furnish a copy of the same to the 
Public Printer for publication.]

Sec. 407. International postal arrangements

    (a) The United States Trade Representative shall be 
responsible for the formulation, coordination, and oversight of 
foreign policy related to international postal services and 
international delivery services, except that the Trade 
Representative may not negotiate or conclude any treaty, 
convention, or other international agreement (including those 
regulating international postal services) if such treaty, 
convention, or agreement would, with respect to any class of 
mail or type of mail service, grant an undue or unreasonable 
preference to the Postal Service, a private provider of 
international postal services, or any other person.
    (b) In carrying out the responsibilities set forth in 
subsection (a), the Trade Representative--
          (1) shall coordinate with and give full consideration 
        to the authority vested by law or Executive order in 
        the Postal Rate Commission and the Department of 
        Commerce; and
          (2) shall consult with the Postal Service, private 
        providers of international postal services, users of 
        international postal services, the general public, and 
        such other persons as the Trade Representative 
        considers appropriate.
    (c) The Postal Service may enter into such commercial and 
operational contracts relating to international postal services 
as it considers necessary, except that the Postal Service may 
not enter into any contract with an agency of a foreign 
government (whether under authority of this subsection or 
otherwise) if it would grant an undue or unreasonable 
preference to the Postal Service with respect to any class of 
mail or type of mail service.

           *       *       *       *       *       *       *


PART III--MODERNIZATION AND FISCAL ADMINISTRATION

           *       *       *       *       *       *       *


CHAPTER 20--FINANCE

           *       *       *       *       *       *       *


Sec. 2008. Audit and expenditures

  (a) * * *

           *       *       *       *       *       *       *

  [(d) Nothing] (d)(1) Except as provided in paragraph (2), 
nothing in this section shall be construed as denying to the 
Postal Service the power to obtain audits of the accounts of 
the Postal Service and reports concerning its financial 
condition and operations by certified public accounting firms. 
Such audits and reports shall be in addition to those required 
by this section.
  (2)(A) Before obtaining any audit or report under paragraph 
(1), the Postal Service shall give the Inspector General 
advance written notice of that intention.
  (B) Any exercise of power under paragraph (1) shall be 
subject to any authority available to the Inspector General in 
carrying out section 4(a) of the Inspector General Act of 1978.
  [(e) At least once each year beginning with the fiscal year 
commencing after June 30, 1971, the Postal Service shall obtain 
a certification from an independent, certified public 
accounting firm of the accuracy of any financial statements of 
the Postal Service used in determining and establishing postal 
rates.]
  (e)(1) At least once each year beginning with fiscal year 
1999, the financial statements of the Postal Service (including 
those used in determining and establishing postal rates) shall 
be audited by the Inspector General or by an independent 
external auditor, as determined by the Inspector General.
  (2) Audits under this section shall be conducted in 
accordance with applicable generally accepted government 
auditing standards.
  (3) Upon completion of the audit required by this subsection, 
the person who audits the statement shall submit a report on 
the audit to the Board.

           *       *       *       *       *       *       *


CHAPTER 24--APPROPRIATIONS AND ANNUAL REPORT

           *       *       *       *       *       *       *


Sec. 2402. Annual report

  The Postmaster General shall render an annual report to the 
Board concerning the operations of the Postal Service under 
this title. Each report under this section shall include, for 
the most recent fiscal year for which a report under section 
2008(e) is available (unless previously transmitted under the 
following sentence), a copy of such report. Upon approval 
thereof, or after making such changes as it considers 
appropriate, the Board shall transmit such reports to the 
President and the Congress.

           *       *       *       *       *       *       *


                              ----------                              


            SECTION 306 OF THE TRADE AND TARIFF ACT OF 1984

SEC. 306. PROVISIONS RELATING TO INTERNATIONAL TRADE IN SERVICES.

    (a)(1) * * *

           *       *       *       *       *       *       *

    (5) For purposes of this section, the term ``services'' 
means economic activities whose outputs are other than tangible 
goods. Such term includes, but is not limited to, banking, 
insurance, transportation, postal and delivery services, 
communications and data processing, retail and wholesale trade, 
advertising, accounting, construction, design and engineering, 
management consulting, real estate, professional services, 
entertainment, education, health care, and tourism.

           *       *       *       *       *       *       *

                              ----------                              


      SECTION 404 OF THE GOVERNMENT MANAGEMENT REFORM ACT OF 1994

SEC. 404. SIMPLIFICATION OF MANAGEMENT REPORTING PROCESS.

  (a) In General.--To improve the efficiency of executive 
branch performance in implementing statutory requirements for 
financial management reporting to the Congress and its 
committees, the Director of the Office of Management and Budget 
may adjust the frequency and due dates of or consolidate any 
statutorily required reports of agencies to the Office of 
Management and Budget or the President and of agencies or the 
Office of Management and Budget to the Congress under any laws 
for which the Office of Management and Budget has financial 
management responsibility, including--
          (1) chapters 5, 9, 11, 33, 35, 37, 39, 75, and 91 of 
        title 31, United States Code;
          (2) the Federal Civil Penalties Inflation Adjustment 
        Act of 1990 (28 U.S.C. 2461 note; Public Law 101-410; 
        104 Stat. 890)[.]; and
          (3) the Inspector General Act of 1978 (5 U.S.C. 
        App.).

           *       *       *       *       *       *       *


                              ----------                              


  SECTION 626 OF THE TREASURY, POSTAL SERVICE, AND GENERAL GOVERNMENT 
                        APPROPRIATIONS ACT, 1997

  Sec. 626. (a) * * *
  [(b) After December 31, 1998, subsection (a) shall apply only 
if the Administrator of General Services has reported that the 
FTS2000 procurement is producing prices that allow the 
Government to satisfy is requirements for such procurement in 
the most cost-effective manner.]
  (b) Until the end of the current FTS2000 contracts, or 
September 30, 1999, whichever is sooner, subsection (a) shall 
continue to apply to the use of the funds appropriated by this 
or any other Act.

                              ----------                              


                      TITLE 5, UNITED STATES CODE



           *       *       *       *       *       *       *
PART III--EMPLOYEES

           *       *       *       *       *       *       *


                    Subpart C--Employee Performance

CHAPTER 41--TRAINING

           *       *       *       *       *       *       *


Sec. 4109. Expenses of training

  (a) * * *

           *       *       *       *       *       *       *

  (d) Notwithstanding subsection (a)(1), a firefighter who is 
subject to section 5545b of this title shall be paid basic pay 
and overtime pay for the firefighter's regular tour of duty 
while attending agency sanctioning training.

           *       *       *       *       *       *       *


CHAPTER 45--INCENTIVE AWARDS

           *       *       *       *       *       *       *


SUBCHAPTER I--AWARDS FOR SUPERIOR ACCOMPLISHMENTS

           *       *       *       *       *       *       *


Sec. 4507. Awarding of ranks in the Senior Executive Service

  (a) * * *

           *       *       *       *       *       *       *

  (e)(1) Receipt by a career appointee of the rank of 
Meritorious Executive entitles such individual to a lump-sum 
payment of [$10,000] an amount equal to 20 percent of annual 
basic pay, which shall be in addition to the basic pay paid 
under section 5382 of this title or any award paid under 
section 5384 of this title.
  (2) Receipt by a career appointee of the rank of 
Distinguished Executive entitles the individual to a lump-sum 
payment of [$20,000] an amount equal to 35 percent of annual 
basic pay, which shall be in addition to the basic pay paid 
under section 5382 of this title or any award paid under 
section 5384 of this title.

           *       *       *       *       *       *       *


Subpart D--Pay and Allowances

           *       *       *       *       *       *       *


CHAPTER 53--PAY RATES AND SYSTEMS

           *       *       *       *       *       *       *


SUBCHAPTER I--PAY COMPARABILITY SYSTEM

           *       *       *       *       *       *       *


Sec. 5303. Annual adjustments to pay schedules

    (a) * * *
    (b)(1) [If, because of national emergency or serious 
economic conditions affecting the general welfare,] If, because 
of a declared state of war or severe economic conditions, the 
President should consider the pay adjustment which would 
otherwise be required by subsection (a) in any year to be 
inappropriate, the President shall--
          (A) prepare and transmit to Congress before September 
        1 of the preceding calendar year a plan for such 
        alternative pay adjustments as he considers 
        appropriate, together with the reasons therefor; and
          (B) adjust the rates of pay of each statutory pay 
        system, in accordance with such plan, effective on the 
        same day as the increase under subsection (a) would 
        otherwise take effect.
    (2) In evaluating [an economic condition affecting the 
general welfare under this subsection,] economic conditions for 
purposes of this subsection, the President shall consider 
pertinent economic measures including, but not limited to, the 
Indexes of Leading Economic Indicators, the Gross National 
Product, the unemployment rate, the budget deficit, the 
Consumer Price Index, the Producer Price Index, the Employment 
Cost Index, and the Implicit Price Deflator for Personal 
Consumption Expenditures.

           *       *       *       *       *       *       *

    (4) For purposes of applying this subsection with respect 
to any pay adjustment that is to take effect in any calendar 
year, `severe economic conditions' shall be considered to exist 
if, during the 12-month period ending 2 calendar quarters 
before the date as of which such adjustment is scheduled to 
take effect (as determined under subsection (a)), there occur 2 
consecutive quarters of negative growth in the real Gross 
Domestic Product.

           *       *       *       *       *       *       *


Sec. 5304a. Authority to fix an alternative level of comparability 
                    payments

    (a) [If, because of national emergency or serious economic 
conditions affecting the general welfare,] If, because of a 
declared state of war or severe economic conditions, the 
President should consider the level of comparability payments 
which would otherwise be payable under section 5304 in any year 
to be inappropriate, the President shall--
          (1) prepare and transmit to Congress, at least 1 
        month before those comparability payments (disregarding 
        this section) would otherwise become payable, a report 
        describing the alternative level of payments which the 
        President instead intends to provide, including the 
        reasons why such alternative level is considered 
        necessary; and
          (2) implement the alternative level of payments 
        beginning on the same date as would otherwise apply, 
        for the year involved, under section 5304.
    (b) For purposes of applying this section with respect to 
any comparability payments that are to become payable in any 
calendar year, `severe economic conditions' shall be considered 
to exist if, during the 12-month period ending 2 calendar 
quarters before the date as of which such payments are 
scheduled to take effect (as determined under section 
5304(d)(2)), there occur 2 consecutive quarters of negative 
growth in the real Gross Domestic Product.
    [(b)] (c) The requirements set forth in paragraphs (2) and 
(3), respectively, of section 5303(b) shall apply with respect 
to any decision to exercise any authority to fix any an 
alternative level of comparability payments under this section.

           *       *       *       *       *       *       *


SUBCHAPTER VIII--PAY FOR THE SENIOR EXECUTIVE SERVICE

           *       *       *       *       *       *       *


Sec. 5384. Performance awards in the Senior Executive Service

  (a) * * *

           *       *       *       *       *       *       *

  (b)(1) * * *

           *       *       *       *       *       *       *

  (3) The aggregate amount of performance awards paid under 
this section by an agency during any fiscal year may not exceed 
the greater of--
          (A) an amount equal to [3] 10 percent of the 
        aggregate amount of basic pay paid to career appointees 
        in such agency during the preceding fiscal year; or
          (B) an amount equal to [15] 20 percent of the average 
        of the annual rates of basic pay paid to career 
        appointees in such agency during the preceding fiscal 
        year.

           *       *       *       *       *       *       *


                     CHAPTER 55--PAY ADMINISTRATION

                    SUBCHAPTER I--GENERAL PROVISIONS

Sec.
5501.  Disposition of money accruing from lapsed salaries or unused 
          appropriations for salaries.
     * * * * * * *

                        SUBCHAPTER V--PREMIUM PAY

5541.  Definitions.
     * * * * * * *
5545a.   Availability pay for criminal investigators.
5545b.   Pay for firefighters.
     * * * * * * *

SUBCHAPTER V--PREMIUM PAY

           *       *       *       *       *       *       *


Sec. 5542. Overtime rates; computation

  (a) * * *

           *       *       *       *       *       *       *

  (f) In applying subsection (a) of this section with respect 
to a firefighter who is subject to section 5545b--
          (1) such subsection (a) shall be deemed to apply to 
        hours of work officially ordered or approved in excess 
        of 106 hours in a biweekly pay period, or, if the 
        agency establishes a weekly basis for overtime pay 
        computation, in excess of 53 hours in an administrative 
        workweek; and
          (2) the overtime hourly rate of pay is an amount 
        equal to one and one-half times the hourly rate of 
        basic pay under section 5545b(b)(1)(A) or (c)(1)(B), as 
        applicable, and such overtime hourly rate of pay may 
        not be less than such hourly rate of basic pay in 
        applying the limitation on the overtime rate provided 
        in paragraph (2) of such subsection (a).

           *       *       *       *       *       *       *


Sec. 5545b. Pay for firefighters

  (a) This section applies to an employee whose position is 
classified in the firefighter occupation in conformance with 
the GS-081 standard published by the Office of Personnel 
Management, and whose normal work schedule, as in effect 
throughout the year, consists of regular tours of duty which 
average at least 106 hours per biweekly pay period.
  (b)(1) If the regular tour of duty of a firefighter subject 
to this section generally consists of 24-hour shifts, rather 
than a basic 40-hour workweek (as determined under regulations 
prescribed by the Office of Personnel Management), section 
5504(b) shall be applied as follows in computing pay--
          (A) paragraph (1) of such section shall be deemed to 
        require that the annual rate be divided by 2756 to 
        derive the hourly rate; and
          (B) the computation of such firefighter's daily, 
        weekly, or biweekly rate shall be based on the hourly 
        rate under subparagraph (A);
  (2) For the purpose of sections 5595(c), 5941, 8331(3), and 
8704(c), and for such other purposes as may be expressly 
provided for by law or as the Office of Personnel Management 
may by regulation prescribe, the basic pay of a firefighter 
subject to this subsection shall include an amount equal to the 
firefighter's basic hourly rate (as computed under paragraph 
(1)(A)) for all hours in such firefighter's regular tour of 
duty (including overtime hours).
  (c)(1) If the regular tour of duty of a firefighter subject 
to this section includes a basic 40-hour workweek (as 
determined under regulations prescribed by the Office of 
Personnel Management), section 5504(b) shall be applied as 
follows in computing pay--
          (A) the provisions of such section shall apply to the 
        hours within the basic 40-hour workweek;
          (B) for hours outside the basic 40-hour workweek, 
        such section shall be deemed to require that the hourly 
        rate be derived by dividing the annual rate by 2756; 
        and
          (C) the computation of such firefighter's daily, 
        weekly, or biweekly rate shall be based on 
        subparagraphs (A) and (B), as each applies to the hours 
        involved.
  (2) For the purpose of sections 5595(c), 5941, 8331(3), and 
8704(c), and for such other purposes as may be expressly 
provided for by law or as the Office of Personnel Management 
may by regulation prescribe, the basic pay of a firefighter 
subject to this subsection shall include--
          (A) an amount computed under paragraph (1)(A) for the 
        hours within the basic 40-hour workweek; and
          (B) an amount equal to the firefighter's basic hourly 
        rate (as computed under paragraph (1)(B)) for all hours 
        outside the basic 40-hour workweek that are within such 
        firefighter's regular tour of duty (including overtime 
        hours).
  (d)(1) A firefighter who is subject to this section shall 
receive overtime pay in accordance with section 5542, but shall 
not receive premium pay provided by other provisions of this 
subchapter.
  (2) For the purpose of applying section 7(k) of the Fair 
Labor Standards Act of 1938 to a firefighter who is subject to 
this section, no violation referred to in such section 7(k) 
shall be deemed to have occurred if the requirements of section 
5542(a) are met, applying section 5542(a) as provided in 
subsection (f) of that section, provided that the overtime 
hourly rate of pay for such firefighter shall in all cases be 
an amount equal to one and one-half times the firefighter's 
hourly rate of basic pay under subsection (b)(1)(A) or 
(c)(1)(B) of this section, as applicable.
  (3) The Office of Personnel Management may prescribe 
regulations, with respect to firefighters subject to this 
section, that would permit an agency to reduce or eliminate the 
variation in the amount of firefighters' biweekly pay caused by 
work scheduling cycles that result in varying hours in the 
regular tours of duty from pay period to pay period. Under such 
regulations, the pay that a firefighter would otherwise receive 
for regular tours of duty over the work scheduling cycle shall, 
to the extent practicable, remain unaffected.

           *       *       *       *       *       *       *


CHAPTER 83--RETIREMENT

           *       *       *       *       *       *       *


                SUBCHAPTER III--CIVIL SERVICE RETIREMENT

Sec. 8331. Definitions

  For the purpose of this subchapter--
          (1) * * *

           *       *       *       *       *       *       *

          (3) ``basic pay'' includes--
                  (A) * * *

           *       *       *       *       *       *       *

                  (D) with respect to a law enforcement 
                officer, premium pay under section 5545(c)(2) 
                of this title; [and]
                  (E) with respect to a criminal investigator, 
                availability pay under section 5545a of this 
                title;
                  (F) pay as provided in section 5545b(b)(2) 
                and (c)(2); and
                  [(E)] (G) with respect to a customs officer 
                (referred to in subsection (e)(1) of section 5 
                of the Act of February 13, 1911), compensation 
                for overtime inspectional services provided for 
                under subsection (a) of such section 5, but not 
                to exceed 50 percent of any statutory maximum 
                in overtime pay for customs officers which is 
                in effect for the year involved;
        but does not include bonuses, allowances, overtime pay, 
        military pay, pay given in addition to the base pay of 
        the position as fixed by law or regulation except as 
        provided by [subparagraphs (B), (C), (D), and (E)] 
        subparagraphs (B)-(G) of this paragraph, retroactive 
        pay under section 5344 of this title in the case of a 
        retired or deceased employee, uniform allowances under 
        section 5901 of this title, or lump-sum leave payments 
        under subchapter VI of chapter 55 of this title. For an 
        employee paid on a fee basis, the maximum amount of 
        basic pay which may be used is $10,000;

           *       *       *       *       *       *       *


          Financial Assistance to State and Local Governments

    In accordance with section 308(a)(1)(C) of the 
Congressional Budget Act of 1974 (Public Law 93-344), as 
amended, the Committee provides no financial assistance to 
state and local governments.

                   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 302(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]                                            
----------------------------------------------------------------------------------------------------------------
                                                                  302(b) allocation             This bill       
                                                             ---------------------------------------------------
                                                                 Budget                    Budget               
                                                               authority     Outlays     authority     outlays  
----------------------------------------------------------------------------------------------------------------
Discretionary:                                                                                                  
    General purposes........................................       13,068       12,295       15,461       13,892
    Violent Crime Trust Fund................................          132          129          132          129
                                                             ---------------------------------------------------
      Total discretionary...................................       13,200       12,424       15,593       14,021
Mandatory...................................................       13,439       13,439       13,439       13,439
----------------------------------------------------------------------------------------------------------------

    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.
    Note.--The amounts in this bill are technically in excess 
of the subcommittee section 302(b) suballocation. However, 
pursuant to section 314 of the Congressional Budget Act of 
1974, as amended, increases to the Committee's section 302(a) 
allocation are authorized for: (1) funding in the reported bill 
for the Earned Income Tax Credit Compliance Initiative and (2) 
funding in the reported bill designated as emergency 
requirements. After the bill is reported to the House, the 
Chairman of the Committee on the Budget will provide an 
increased section 302(a) allocation consistent with the funding 
provided in the bill. That new allocation will eliminate the 
technical difference prior to floor consideration.

                      Five Year Outlay Projections

    In compliance with section 308(a)(1)(B) of the 
Congressional Budget Act of 1974 (Public Law 93-344), as 
amended, the following table contains five-year projections 
associated with the budget authority provided in the 
accompanying bill:

                                                                        
                                                          [In millions] 
                                                                        
Budget Authority......................................           $29,032
Outlays:                                                                
    Fiscal year 1999..................................            24,760
    Fiscal year 2000..................................             2,568
    Fiscal year 2001..................................               689
    Fiscal year 2002..................................               392
    Fiscal year 2003 and future years.................               380
                                                                        
                                                                        
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 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

                          Departmental Offices

    The Committee has continued language which provides funds 
for operation and maintenance of the Treasury Buildings 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; unforeseen emergencies of a confidential nature and a 
floor on the amount of funds that shall be provided to the 
Office of Foreign Assets Control. The Committee includes a new 
provision providing compensation for losses incurred due to the 
denial of entry into the U.S. of certain firearms.

                 Office of Professional Responsibility

    The Committee has continued language which provides funds 
for the expenses of the Office of Professional Responsibility, 
including the purchase and hire of vehicles.

                         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, prohibiting expenditures for IRS's 
Information Technology Systems, and limiting the expenditure of 
certain funds until specific conditions are met.

                      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 and language making the funds available 
until expended. The Committee has included new language making 
funds available for obligation on September 30, 1999.

                  Financial Crimes Enforcement Network

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

                        Treasury Forfeiture Fund

                    Violent Crime Reduction Programs

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

                Federal Law Enforcement Training Center

    The Committee has continued language which provides funds 
for material and support costs of basic training, the hire of 
vehicles, student athletic and related activities, uniform 
purchases, conducting and or participating in firearms matches, 
community relations for U.S. Postal Service law enforcement 
personnel and State and local law enforcement training, 
acceptance of gifts, training of private sector security 
officials on a reimbursable space available basis, travel 
expenses of non-federal personnel to attend State and local 
course development meetings at the Center, the establishment of 
a fund to provide gifts for certain honor graduate students, 
directs the Director to present certain awards, allows for the 
provision of short term medical services for students 
undergoing training, allows the Center to provide certain 
housing to students, and authorizes training for foreign 
students on both a reimbursable and non-reimbursable basis.
    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.

                      Interagency Law Enforcement

                 Interagency crime and drug enforcement

    The Committee continues language which provides funds for 
the detection and investigation of individuals involved in 
organized crime, including cooperative efforts with State and 
local law enforcement.

                      Financial Management Service

    The Committee has continued language which provides funds 
to remain available for three fiscal years 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. The Committee has continued language 
providing that no funds shall be used to consolidate or 
centralize the records pertaining to firearms licenses; 
prohibiting the payment of administrative expenses in changing 
the definition of curios or relics; prohibiting the transfer of 
ATF's functions to another federal agency; prohibiting the 
provision of ballistics imaging equipment to state and local 
authorities under certain circumstances; prohibiting electronic 
retrieval of information gathered pursuant to 18 U.S.C. 
923(g)(4) by name or personal identification; and prohibiting 
ATF from acting upon applications for relief from Federal 
firearms disabilities. The Committee has new language making 
certain funds available for obligation on September 30, 1999.

                     United States Customs Service

                         SALARIES AND EXPENSES

    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, part-time and temporary positions and 
uniforms research, special operations, the procurement of 
automation infrastructure, and limitations on overtime. The 
Committee has included new language making certain funds 
available for obligation on September 30, 1999.

    OPERATIONS AND MAINTENANCE, AIR AND MARINE INDERDICTION PROGRAMS

    The Committee has continued language providing funds for 
the operation and maintenance of marine vessels and aircraft; 
operational and mission-related travel; rental payments; 
support of Federal, state and local agencies in the 
administration of laws enforced by customs and certain 
emergency humanitarian efforts; and prohibitions on the 
transfer of certain aircraft without the prior approval of the 
Committee.

                   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.

                       Bureau of the Public Debt

    The Committee has continued language which provides that 
funds are available for official reception and representation 
expenses and language which provides that a portion of funds 
appropriated shall remain available for three fiscal years for 
information systems modernization. The Committee has also 
continued language which provides that funds appropriated shall 
be reduced as definitive security issue and Treasury Direct 
Investor Account Maintenance fees are collected. Language is 
also included which appropriates $20,000, to be derived from 
the Oil Spill Liability Trust Fund for financial management of 
the Fund and which makes permanent a provision which provides 
that the Bureau of Public Debt shall be reimbursed by the funds 
described in P.L. 101-136, title I, section 104, for services 
performed in administration of such funds.

                        Internal Revenue Service

                 PROCESSING, ASSISTANCE, AND MANAGEMENT

    The Committee has continued language providing funds for 
management, rent and utilities, purchase and hire of vehicles, 
services authorized by 5 USC, official reception and 
representation expenses, research, processing tax returns, 
revenue accounting, developing statistics of income, and 
taxpayer assistance. Language is also included providing that 
funds shall be available for the Tax Counseling for the Elderly 
program.

                          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, enforcement, 
securing tax returns, collection, purchase and hire of 
vehicles, services authorized by 5 USC.

             earned income tax credit compliance initiative

    The Committee has continued language providing funds for 
initiatives related to earned income tax credit compliance and 
error reduction and authorizing certain reimbursements to the 
Social Security Administration.

                          INFORMATION SYSTEMS

    The Committee has continued language which provides funds 
for information systems 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 September 30, 2000. 
The Committee includes new language making funds available for 
customer service improvements and IRS restructuring.

                   INFORMATION TECHNOLOGY INVESTMENTS

    The Committee has continued language providing funds for 
the IRS's information technology investments. The Committee 
modifies language prohibiting the obligation of these funds 
until September 30, 1999 and language setting certain 
conditions on the obligation of funds. Language is also 
included making the funds available until expended.

          Administrative Provisions--Internal Revenue Service

    Section 101. The Committee continues a provision which 
allows the transfer of funds between Internal Revenue Service 
appropriations. The transfer is limited to 5 percent of the 
appropriation and is subject to prior Congressional approval.
    Section 102. The Committee continues a provision which 
requires the Internal Revenue Service maintain a training 
program in taxpayer's rights, dealing courteously with the 
taxpayers, and cross cultural relations.
    Section 103. The Committee continues a provision which 
requires the Internal Revenue Service maintain taxpayer 
services at not less than 1995 levels.
    Section 104. The Committee continues a provision, 
previously carried under ``General Provisions--Department of 
the Treasury'' prohibiting the expenditure of funds for the 
collection of taxes unless the conduct of offices and employees 
of the IRS comply with the Fair Debt Collection Act.
    Section 105. The Committee continues a 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.
    Section 106. The Committee continues the provision which 
directs that funds shall be available for improved facilities 
and increased manpower to provide sufficient and effective 1-
800-telephone assistance.

                      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 providing funds for 
the acquisition, construction, improvement, and related 
expenses of the new Secret Services headquarters building.

             General Provisions--Department of the Treasury

    Section 110. The Committee continues the provision 
requiring the Secretary of Treasury to comply with certain 
reprogramming guidelines when obligating or expending funds for 
law enforcement activities.
    Section 111. The Committee continues the provision allowing 
the Department of Treasury to purchase uniforms, insurance, and 
motor vehicles without regard to the general purchase price 
limitation, and enter into contracts with the State Department 
for health and medical services for Treasury employees in 
overseas locations.
    Section 112. The Committee continues the provision 
requiring expenditure of funds so as not to diminish efforts 
under the Federal Alcohol Administration Act.
    Section 113. The Committee continues the provision which 
authorizes transfers, up to 2 percent, between law enforcement 
appropriations under certain circumstances.
    Section 114. The Committee continues the provision which 
authorizes transfers, up to 2 percent, between Departmental 
Offices, the Office of Inspector General, the Financial 
Management Service, and the Bureau of the Public Debt 
appropriations under certain circumstances.
    Section 115. The Committee includes a new provision 
authorizing the Secretary of the Treasury to promote the 
benefits of and encourage the use of electronic tax 
administration programs and to implement procedures to pay 
appropriate incentives to commercial concerns for electronic 
filing services.
    Section 116. The Committee includes a new provision 
prohibiting the Bureau of Engraving and Printing from awarding 
a contract on Solicitation No. BEP-97-13(TN) until the House 
Committee on Appropriations and the House Committee on Banking 
and Financial Services receive the General Accounting Office's 
study of the issue of distinctive currency paper procurement 
authorized in the fiscal year 1997 supplemental bill, and 
notify the Bureau that it can proceed with an award or must 
await Congressional action to address findings in the GAO 
report. Additionally, the Committee has included language 
authorizing the Bureau to extend the current ``bridge'' 
procurement contract up to 6 (six) additional months to ensure 
the supply of currency paper until Congress takes action.

                        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 has continued language making funds available for 
reimbursement to the White House Communications Agency.

                 EXECUTIVE RESIDENCE AT THE WHITE HOUSE

                           operating expenses

    The Committee has continued language which provides funds 
for the operation and maintenance of the Executive Residence of 
the White House and official entertainment expenses. The 
Committee has included new language providing additional funds 
for domestic staff overtime but prohibiting the availability of 
these funds until certain conditions are met.

                         reimbursable expenses

    The Committee has continued language which provides funds 
for the reimbursable expenses of the Executive Residence; 
language specifying the authorized use of funds; language 
specifying that reimbursable expenses are the exclusive 
authority of the Executive Residence to incur obligations and 
receive offsetting collections; language requiring the sponsors 
of political events to make advance payments; language 
requiring the national committee of the political party of the 
President to maintain $25,000 on deposit; language requiring 
the Executive Residence to ensure that amounts owed are billed 
within 60 days of a reimbursable event and collected within 30 
days of the bill notice; language authorizing the Executive 
Residence to charge and assess interest and penalties on late 
payments; language authorizing all reimbursements to be 
deposited into the Treasury as a miscellaneous receipt; 
language requiring a report to the Committee on the 
reimbursable expenses within 90 days of the end of the fiscal 
year; language requiring the Executive Residence to maintain a 
system for tracking and classifying reimbursable events; and 
language specifying that the Executive Residence is not exempt 
from the requirements of subchapter I or II of chapter 37 of 
title 31, United States Code.

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.

                      Office of Policy Development

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

                       National Security Council

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

                        Office of Administration

    The Committee has continued language which provides funds 
for expenses of the Office and the hire of vehicles.

                    Office of Management and Budget

    The Committee has continued language which provides funds 
for expenses, the hire of vehicles, carrying out provisions of 
44 USC, directs that funds shall be applied only to items for 
which appropriations were made, prohibits the review of 
agricultural marketing orders and the alteration of certain 
testimony.
    The Committee has included a new provision limiting the 
amount of funds available to the Office of Information and 
Regulatory Affairs and fencing certain funds pending the 
completion of certain actions related to paperwork reduction 
and the Congressional Review Act.

                 Office of National Drug Control Policy

                         salaries and expenses

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

 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 includes a provision that funding shall be 
provided at no less than the fiscal year 1998 level for those 
High Intensity Drug Trafficking Areas that had been designated 
by the Director of the Office of National Drug Control Policy 
on or before February 2, 1994 and that any new High Intensity 
Drug Trafficking Areas to be designated in fiscal year 1999 
shall be funded from within the existing appropriation for this 
account.

                        Special Forfeiture Fund

    The Committee has continued language providing funds for an 
anti-drug public service campaign; requiring that certain 
conditions be met on the use of those funds, including 
reporting requirements; and providing funds for the Drug Free 
Communities Act.

          Information Technology Systems and Related Expenses

    The Committee has included new language providing funds for 
emergency requirements related to Year 2000 conversion of 
Federal information technology systems and related expenses; 
designating these funds as an emergency; requiring the 
President to submit a budget request for specific dollar 
amounts, including the designation of the request as an 
emergency; prohibiting the availability of funds until 15 days 
after the submission of the request; making funds available 
until expended; and providing for the transfer of funds to 
other appropriations accounts.

                          Unanticipated Needs

    The Committee has included new language providing funds for 
the unanticipated needs of the President.

                     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 has 
included new language requiring advance notice to the Committee 
prior to the obligation of certain funds.

                   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 included language providing that amounts 
in the Federal Buildings Fund may be available for: operation, 
maintenance, and protection of Federally owned and leased 
buildings; rental of buildings in the District of Columbia; 
restoration of leased premises; moving governmental agencies; 
contractual services incident to cleaning or servicing 
buildings or moving; repairs and alterations of Federally owned 
buildings; care and safeguarding of sites; maintenance; 
preservation; demolition, and equipment; acquisition of 
buildings and sites; acquisition of options to purchase 
buildings and sites; conversion and extension of Federally 
owned buildings; preliminary planning and design of projects by 
contract or otherwise; construction of new buildings; and 
payment of principal, interest, and any other obligations for 
public buildings acquired by installment purchase contract.
    The Committee has included language providing that funds 
provided for construction shall remain available until expended 
and language designating the construction projects to be 
undertaken with the funds provided and the maximum cost of each 
project. Language is included which provides that the maximum 
cost of each project may be exceeded if advance approval is 
obtained from the Appropriations Committee. Language is also 
included which provides that funds for construction projects 
shall expire on September 30, 2000, and remain in the Federal 
Buildings Fund except for projects for which funds have been 
obligated prior to that date. Language is also included that 
provides that $2,100,000 of the funds provided for non-
prospectus construction projects shall be available for 
flexiplace telecommuting centers.
    The Committee has included language providing that funds 
provided for repairs and alterations shall remain available 
until expended and that $19,000,000 of the funds provided shall 
become available for obligation on September 30, 1999. Language 
is included designating the repairs and alterations projects to 
be undertaken. Language is included which provides that 
additional repairs and alterations projects may be funded if 
advance approval is obtained from the Appropriations Committee. 
Language is also included which provides: that repairs and 
alterations funds may be used for security improvements, 
differences between amounts appropriated and expended for 
repairs and alterations projects may be transferred to Basic 
Repairs and Alterations; funds for repairs and alterations 
prospectus projects shall expire on September 30, 2000, and 
remain in the Federal Buildings Fund except for projects for 
which funds have been obligated prior to that date; and amounts 
provided in this and prior acts for Repairs and Alterations may 
be used to pay claims against the government or be used to fund 
authorized increases in prospectus projects. The Committee has 
also included language in the bill which provides that 
$5,700,000 of the funds provided in Public Law 103-329 for 
renovation of the IRS's Brookhaven Service Center shall remain 
available until September 30, 1999.
    The Committee has included language which provides that 
funds provided for installment acquisition payments, rental of 
space, and buildings operations shall remain available until 
expended. The Committee has also included language which 
provides that $223,000,000 of the funds provided for building 
operations shall be available for obligation on September 30, 
1999.
    The Committee has included language which provides that 
funds shall not be available for any construction, acquisition, 
repair, or alteration project that requires a prospectus by the 
Public Buildings Act of 1959, as amended, if the prospectus has 
not been approved. Language has been included which provides 
that buildings constructed pursuant to the Public Buildings 
Amendments of 1972, buildings occupied pursuant to installment 
purchase contracts, and buildings under the control of another 
department or agency where alterations are required in 
connection with moving the department or agency from buildings 
then, or thereafter, under control of the General Services 
Administration shall be considered Federal buildings. The 
Committee has included language which provides that funds in 
the Federal Buildings Fund may be used for emergency repairs if 
advance approval is obtained from the Appropriations Committee. 
Language has also been included which provides that amounts 
necessary to provide reimbursable services to other agencies 
under section 210(f)(6) of the Federal Property and 
Administrative Services Act of 1949 and amounts for 
reimbursable facilities on private property and other property 
not in government ownership or control to enable the U.S. 
Secret Service to perform its protective mission shall be 
available from revenues and collections.
    The Committee has included language which provides that the 
remaining balances and associated assets and liabilities of the 
Pennsylvania Avenue Activities account are transferred to the 
Federal Buildings Fund effective October 1, 1998, and all 
income earned after that date that would have been deposited to 
the Pennsylvania Avenue Activities account shall be thereafter 
deposited to the Federal Buildings Fund to be available for the 
purposes authorized by Public Laws 104-134 and 104-208.
    The Committee included language which provides that 
revenues and collections to the Federal Buildings Fund in 
fiscal year 1999 in excess of $5,626,928,000 shall remain in 
the Fund and shall not be available for expenditure except as 
authorized in appropriations acts.

                         POLICY AND OPERATIONS

    The Committee has included language which provides funds 
for government-wide policy and oversight activities, the Board 
of Contract Appeals, services authorized by 5 U.S.C., official 
reception and representation expenses, and activities incident 
to adjudication of Indian Tribal Claims.

                      Office of Inspector General

    The Committee has continued language which provides funds 
for expenses for the Office, services authorized by 5 U.S.C., 
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 and language providing 
for the transfer of funds to the Secretary of the Treasury.

          GENERAL PROVISIONS--GENERAL SERVICES ADMINISTRATION

    Section 401. The Committee continues the provision that 
provides that costs included in rentals received from 
government corporations for operations, protection, 
maintenance, upkeep, repair and improvement shall be credited 
to the Federal Buildings Fund.
    Section 402. The Committee continues the provision 
providing funds for the hire of motor vehicles.
    Section 403. The Committee continues the provision 
providing that funds made available for activities of the 
Federal Buildings Fund may be transferred between 
appropriations.
    Section 404. The Committee continues the provision 
prohibiting the use of funds to submit a request for courthouse 
construction requests that do not meet design guide standards 
and priorities of the Judicial Conference.
    Section 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 rent rates.
    Section 406. The Committee continues the provision 
providing for Information Technology Fund repayment from 
sponsored projects that realize program savings.
    Section 407. The Committee continues a provision which 
permits GSA to pay small claims (up to $250,000) made against 
the Government.
    Section 408. The Committee includes a new provision which 
clarifies that section 407 of Public Law 104-208 does not apply 
to telecommuting centers established as part of the 
demonstration telecommuting center project in the Washington, 
DC, metropolitan area and establishes that the Administrator of 
the General Services Administration is to set user fees for 
Federal agency use of flexiplace telecommuting centers 
established as part of the demonstration project. In addition, 
the language redefines the costs that a Federal agency user fee 
must recover and establishes a date by which full recovery of 
operating costs is expected.
    Section 409. The Committee has included a new provision 
which provides that the Administrator of General Services shall 
convey to the University of Miami, by negotiated sale, the 
property in Dade County, Florida, known as the United States 
Naval Observatory/Alternate Time Service Laboratory.
    Section 410. The Committee has included a new provision 
which provides that the Administrator of General Services shall 
convey to the City of Racine, Wisconsin, by negotiated sale, 
the vacant Army Reserve property located at the intersection of 
24th and Center Streets in Racine, Wisconsin, to permit the 
City to use the property for water and wastewater utilities.
    Section 411. The Committee includes a new provision 
regarding the design for the facade of the US Courthouse in 
London, Kentucky.

                 Environmental Dispute Resolution Fund

    The Committee includes new language providing funds to 
carry out the activities of the Environmental Policy and 
Conflict Resolution Act, making funds available until expended.

                     Merit Systems Protection Board

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

              National Archives and Records Administration

                           operating expenses

    The Committee has continued language which provides funds 
for the operations of the NARA, the review and declassification 
of documents, the hire of passenger motor vehicles, and 
authorizing the use of certain funds to provide adequate 
storage for holdings.

                        repairs and restoration

    The Committee has included language which makes the funds 
available until expended and which provides funds for the 
repair, alteration, and improvement of archives facilities and 
presidential libraries. The Committee has included new language 
providing funds for the renovation of Archives I and encasement 
of the Charters of Freedom.

        National Historical Publications and Records Commission

    The Committee has included language which provides funds 
for the Commission and makes the funds available until 
expended.

                      Office of Government Ethics

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

                     Office of Personnel Management

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

                      Office of Inspector General

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

                             revolving fund

    The Committee has provided authority to offset long-term 
losses in the revolving fund.

      government payment for annuitants, employee health benefits

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

       government payment for annuitants, employee life insurance

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

        payment to civil service retirement and disability fund

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

                       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, provides for payment of travel expenses, and 
provides for services authorized by 5 U.S.C.

                      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 the provision 
prohibiting the transfer of control over the Federal Law 
Enforcement Training Center out of the Department of the 
Treasury.
    Section 505. The Committee continues the provision 
concerning employment rights of Federal employees who return to 
their civilian jobs after assignment with the Armed Forces.
    Section 506. The Committee continues the provision 
concerning compliance with the Buy American Act.
    Section 507. The Committee continues the provision 
concerning prohibition of contracts which use certain goods not 
made in America.
    Section 508. The Committee continues the provision 
prohibiting contract eligibility where fraudulent intent has 
been proven in affixing ``Made in America'' labels.
    Section 509. The Committee continues and modifies the 
provision providing that fifty percent of unobligated balances 
may remain available for certain purposes.
    Section 510. The Committee continues the provision 
restricting 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 511. The Committee includes a new provision 
revising the appointment and service of the Staff Director and 
General Counsel of the Federal Election Commission.
    Section 512. The Committee includes a new provision 
authorizing the payment of attorney's fees, costs and sanctions 
by the Federal Government in the case of Association of 
American Physicians and Surgeons, Inc. v. Clinton from the 
White House Office salaries and expenses account, should those 
payments be required.
    Section 513. The Committee has included a new provision 
authorizing the Inspector General of the U.S. Postal Service to 
audit or oversee the audit of the Postal Service's financial 
statements in order to bring the Postal Service in line with 
accountability standards expected of other federal agencies.
    Section 514. The Committee retains a provision which would 
prohibit the expenditure of funds for abortions under the 
FEHBP.
    Section 515. The Committee retains a provision which would 
authorize the expenditure of funds for abortions under the 
FEHBP if the life of the mother is in danger or the pregnancy 
is the result of an act of rape or incest.
    Section 516. The Committee has included a new provision 
which provides that no funds may be expended by the Office of 
Personnel Management to enter into or renew a health benefits 
plan which provides for prescription drugs unless the plan also 
provides for all prescription contraceptive drugs or devices, 
or generic equivalents, approved by the Food and Drug 
Administration, or provides benefits for outpatient services 
provided by a health care professional unless such plan also 
provides equivalent benefits for outpatient contraceptive 
services.

              TITLE VI--GOVERNMENT WIDE GENERAL PROVISIONS

                Departments, Agencies, and Corporations

    Section 601. The Committee continues the provision 
authorizing agencies to pay costs of travel to the United 
States for the immediate families of Federal employees assigned 
to foreign duty in the event of a death or 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 limitations 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 
providing that no funds may be used to pay any person filling a 
nominated position that has been rejected by the Senate.
    Section 611. The Committee continues the provision 
precluding the financing of groups by more than one Federal 
agency 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 employees.
    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 continues the provision 
prohibiting the expenditure of funds for implementation of 
agreements in nondisclosure policies unless certain provisions 
are included.
    Section 623. The Committee continues the provision 
prohibiting propaganda, publicity and lobbying by executive 
agency personnel in support or defeat of legislative 
initiatives.
    Section 624. The Committee continues the provision 
directing OMB to provide an accounting statement and report on 
the cumulative costs of and benefits of Federal regulatory 
programs.
    Section 625. The Committee continues the provision 
prohibiting any Federal agency from disclosing an employee's 
home address to any labor organization, absent employee 
authorization or court order.
    Section 626. The Committee continues the provision 
directing the Secretary of the Treasury to establish scientific 
canine explosive detection standards.
    Section 627. The Committee continues the provision 
prohibiting funds to be used to provide non-public information 
such as mailing or telephone lists to any person or 
organization outside the Government without the approval of the 
Committees on Appropriations.
    Section 628. The Committee includes a new provision 
amending the Ethics Reform Act of 1989 to provide that no 
adjustment shall take effect in fiscal year 1999 in the rates 
of basic pay for the statutory pay systems under section 5303 
of title 5, United States Code.
    Section 629. The Committee continues the provision 
prohibiting the use of funds for propaganda and publicity 
purposes not authorized by Congress.
    Section 630. The Committee continues the provision 
prohibiting the purchase of new technology not Year 2000 
compliant.
    Section 631. The Committee continues the provision 
prohibiting the importation of any goods manufactured by forced 
or indentured child labor.
    Section 632. The Committee continues and modifies by making 
permanent the provision prohibiting the use of funds for paying 
``Sunday Premium Pay'' to an employee, unless the work was 
actually performed.
    Section 633. The Committee continues the provision 
prohibiting the payment of any employee who prohibits, 
threatens or prevents another employee from communicating with 
Congress.
    Section 634. The Committee includes a new provision 
amending Sec. 404(a) of the Government Management Reform Act, 
authorizing OMB to conduct a pilot program on financial 
reporting and additionally, to include the participation of the 
Inspector General.
    Section 635. The Committee includes a new provision 
authorizing funds appropriated for 1999 to be available for 
interagency funding of specific initiatives for the National 
Science and Technology Council.
    Section 636. The Committee includes a new provision 
extending the period of mandatory use of the current FTS 2000 
contracts by Federal agencies until September 30, 1999, or 
until the end of the current FTS 2000 contracts, whichever is 
sooner.
    Section 637. The Committee includes a new provision to 
promote protection of Federal law enforcement officers who 
intervene in certain situations.
    Section 638. The Committee has included a new provision 
which permits the Administrator of General Services to provide 
up to $3,000,000 in government-wide credit card rebates to fund 
a program management office within the Joint Financial 
Management Improvement Program for the development of 
requirements for the financial management software schedule.
    Section 639. The Committee has included a new provision 
reforming Federal firefighters overtime pay.
    Section 640. The Committee has included a new provision 
requiring a review by the Office of National Drug Control 
Policy on the coordination of Southwest border counterdrug 
activities.
    Section 641. The Committee includes a new provision that 
provides that for fiscal year 1999 and each fiscal year 
thereafter, each executive agency of the Federal government 
shall make available at a minimum $50,000 for expenses 
necessary to carry out a flexiplace work telecommuting program.
    Section 642. The Committee includes a new provision to 
amend permanent law to make Senior Executive Service 
Presidential Rank Awards based upon base salary percentages of 
20 percent (for ``Meritorious Awards'') and 35 percent 
(``Distinguished Awards'') rather than the current dollar 
amounts.
    Section 643. The Committee includes a new provision to 
increase the formula used to calculate the aggregate amount 
available for performance awards to 10 percent of the Senior 
Executive Service pay pool or 20 percent of the average of 
annual rates of basic pay.
    Section 644. The Committee includes a new provision that 
revises the definition of ``severe economic conditions'' in 
section 5303 and 5304 of Title 5. The provision also sets the 
federal employee pay adjustment for fiscal year 1999 at 3.1 
percent, the level included in the President's fiscal year 1999 
budget.
    Section 645. The Committee continues the provision 
prohibiting Federal training not directly related to the 
performance of official duties.
    Section 646. The Committee includes a new provision which 
provides that the United States Trade Representative shall be 
responsible for the formulation, coordination, and oversight of 
foreign policy related to international postal services and 
international delivery services, except that the Trade 
Representative may not negotiate or conclude any treaty, 
convention, or other international agreement if such treaty, 
convention, or agreement would, with respect to any class of 
mail or type of mail service, grant an undue or unreasonable 
preference to the Postal Service, a private provider of 
international postal services, or any other person. The 
language also provides that the Postal Service may enter into 
such commercial and operational contracts relating to 
international postal services as it considers necessary, except 
that the Postal Service may not enter into any contract with an 
agency of a foreign government if it would grant an undue or 
unreasonable preference to the Postal Service with respect to 
any class of mail or type of mail service.
    Section 647. The Committee includes a new provision which 
provides that no funds appropriated to the Postal Service in 
this or any other Act may be expended by the Postal Service to 
initiate new non-postal commercial activities.

                    DETAILED EXPLANATIONS IN REPORT

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

                  APPROPRIATIONS NOT AUTHORIZED BY LAW

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

    Pursuant to the provisions of clause 2(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: June 17, 1998.
    Measure: Treasury, Postal Service, and General Government 
Appropriations Bill, FY 1999.
    Motion by: Mrs. Northup.
    Description of motion: To enable the U.S. Trade 
Representative to represent the U.S. before the Universal 
Postal Union.
    Results: Adopted 30 yeas to 20 nays.
        Members Voting Yea            Members Voting Nay
Mr. Aderholt                        Ms. DeLauro
Mr. Bonilla                         Mr. Fazio
Mr. Callahan                        Mr. Forbes
Mr. Cramer                          Mr. Hefner
Mr. Cunningham                      Mr. Hoyer
Mr. DeLay                           Ms. Kaptur
Mr. Dickey                          Mr. Kolbe
Mr. Edwards                         Mrs. Lowey
Mr. Frelinghuysen                   Mrs. Meek
Mr. Hobson                          Mr. Mollohan
Mr. Istook                          Mr. Moran
Mr. Kingston                        Mr. Murtha
Mr. Knollenberg                     Mr. Obey
Mr. Livingston                      Mr. Olver
Mr. Miller                          Mr. Price
Mr. Nethercutt                      Mr. Sabo
Mr. Neumann                         Mr. Serrano
Mrs. Northup                        Mr. Visclosky
Mr. Packard                         Mr. Wolf
Mr. Pastor                          Mr. Yates
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 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. 2

    Date: June 17, 1988.
    Measure: Treasury, Postal Service, and General Government 
Appropriations Bill, FY 1999.
    Motion by: Ms. DeLauro.
    Description of Motion: To delete the provisions in the bill 
on the use of funds for abortions in connection with any 
Federal employee health benefit plan.
    Results: Rejected 20 yeas to 20 nays.
        Members Voting Yea            Members Voting Nay
Mr. Bonilla                         Mr. Aderholt
Mr. Cramer                          Mr. Callahan
Ms. DeLauro                         Mr. Dickey
Mr. Fazio                           Mr. Edwards
Mr. Frelinghuysen                   Mr. Istook
Mr. Hefner                          Mr. Kingston
Mr. Hoyer                           Mr. Knollenberg
Ms. Kaptur                          Mr. Latham
Mr. Kolbe                           Mr. Livingston
Mrs. Lowey                          Mr. Nethercutt
Mr. Miller                          Mr. Nuemann
Mr. Moran                           Mrs. Northup
Mr. Obey                            Mr. Packard
Mr. Olver                           Mr. Parker
Mr. Pastor                          Mr. Rogers
Mr. Price                           Mr. Skeen
Mr. Sabo                            Mr. Taylor
Mr. Serrano                         Mr. Tiahrt
Mr. Torres                          Mr. Wicker
Mr. Visclosky                       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 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. 3

    Date: June 17, 1998.
    Measure: Treasury, Postal Service, and General Government 
Appropriations Bill, FY 1999.
    Motion by: Mr. Hoyer.
    Description of motion: To strike modifications to the 
reappointment authority of the FEC Staff Director and General 
Counsel.
    Results: Rejected 21 yeas to 25 nays.
        Members Voting Yea            Members Voting Nay
Ms. DeLauro                         Mr. Bonilla
Mr. Dicks                           Mr. Cunningham
Mr. Edwards                         Mr. Dickey
Mr. Fazio                           Mr. Forbes
Mr. Hefner                          Mr. Frelinghuysen
Mr. Hoyer                           Mr. Hobson
Ms. Kaptur                          Mr. Kingston
Mrs. Lowey                          Mr. Knollenberg
Mrs. Meek                           Mr. Kolbe
Mr. Moran                           Mr. Latham
Mr. Obey                            Mr. Livingston
Mr. Olver                           Mr. McDade
Mr. Pastor                          Mr. Miller
Ms. Pelosi                          Mr. Nethercutt
Mr. Price                           Mr. Neumann
Mr. Sabo                            Mrs. Northup
Mr. Serrano                         Mr. Packard
Mr. Skaggs                          Mr. Parker
Mr. Stokes                          Mr. Regula
Mr. Visclosky                       Mr. Skeen
Mr. Yates                           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 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. 4

    Date: June 17, 1998.
    Measure: Treasury, Postal Service, and General Government 
Appropriations Bill, FY 1999.
    Motion by: Mrs. Lowey.
    Description of motion: To require contraceptive coverage in 
all Federal employee health benefit plans.
    Results: Adopted 28 yeas to 26 nays.
        Members Voting Yea            Members Voting Nay
Mr. Cramer                          Mr. Aderholt
Ms. DeLauro                         Mr. Bonilla
Mr. Dicks                           Mr. Callahan
Mr. Dixon                           Mr. Cunningham
Mr. Edwards                         Mr. DeLay
Mr. Fazio                           Mr. Dickey
Mr. Frelinghuysen                   Mr. Forbes
Mr. Hefner                          Mr. Kingston
Mr. Hobson                          Mr. Knollenberg
Mr. Hoyer                           Mr. Latham
Mr. Kolbe                           Mr. Livingston
Mrs. Lowey                          Mr. McDade
Mrs. Meek                           Mr. Miller
Mr. Mollohan                        Mr. Neumann
Mr. Moran                           Mrs. Northup
Mr. Murtha                          Mr. Packard
Mr. Obey                            Mr. Parker
Mr. Olver                           Mr. Regula
Mr. Pastor                          Mr. Rogers
Ms. Pelosi                          Mr. Skeen
Mr. Price                           Mr. Taylor
Mr. Sabo                            Mr. Tiahrt
Mr. Serrano                         Mr. Wamp
Mr. Skaggs                          Mr. Wicker
Mr. Stokes                          Mr. Wolf
Mr. Visclosky                       Mr. Young
Mr. Walsh
Mr. Yates
                          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. 5

    Date: June 17, 1998.
    Measure: Treasury, Postal Service, and General Government 
Appropriation Bill, FY 1999.
    Motion by: Mr. Neumann.
    Description of motion: To strike the emergency 
appropriations for the year 2000 computer problem.
    Results: Rejected 14 yeas to 32 nays.
        Members Voting Yea            Members Voting Nay
Mr. Aderholt                        Mr. Callahan
Mr. DeLay                           Mr. Cramer
Mr. Dickey                          Mr. Dicks
Mr. Edwards                         Mr. Forbes
Mr. Hobson                          Mr. Frelinhuysen
Mr. Kingston                        Mr. Hefner
Mr. Latham                          Mr. Hoyer
Mr. Miller                          Ms. Kaptur
Mr. Neumann                         Mr. Knollenberg
Mr. Parker                          Mr. Kolbe
Mr. Porter                          Mr. Lewis
Mr. Taylor                          Mr. Livingston
Mr. Wamp                            Mrs. Meek
Mr. Wicker                          Mr. Mollohan
                                    Mr. Murtha
                                    Mr. Nethercutt
                                    Mrs. Northup
                                    Mr. Obey
                                    Mr. Packard
                                    Mr. Pastor
                                    Mr. Price
                                    Mr. Regula
                                    Mr. Rogers
                                    Mr. Sabo
                                    Mr. Skaggs
                                    Mr. Skeen
                                    Mr. Stokes
                                    Mr. Visclosky
                                    Mr. Walsh
                                    Mr. Wolf
                                    Mr. Yates
                                    Mr. Young





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

    The funding levels in this bill represent a responsible 
effort to allocate sufficient funds to each Agency to enable it 
to pursue its mission in an effective way. While we were not 
able to fully fund the request within our 302(b) allocation, we 
believe that this bill provides funding for the highest 
priority programs at reasonable levels.
    This bill includes over $4 billion for critical law 
enforcement activities, and over $1.8 billion for anti-drug 
activities. These are critical expenditures in the war on 
drugs. We regret that we were not able to fully fund the 
request of $449 million for the Office of National Drug Control 
Policy (ONDCP); however, $427 million is provided for such 
important programs as the National Youth Anti-Drug Media 
Campaign (195 million), implementation of the Drug Free 
Communities Act ($20 million), and the High Intensity Drug 
Trafficking Areas program ($162 million).
    This bill does not provide full funding for the IRS, but 
does attempt to address IRS' most pressing funding needs. We 
are pleased that the funding level for the IRS will enable 
Commissioner Rossotti to continue progress with reform and 
restructuring at the IRS while moving forward slowly but 
deliberately with the much needed modernization of IRS' 
computer systems.
    This bill provides to GSA over $500 million for the 
construction of new courthouses. We are pleased that the 
projects included are consistent with the recommendations of 
the Judicial Conference and with GSA's request to the OMB.
    We are pleased that this bill includes special emergency 
account for solving the century date change problem with 
government computers and related equipment. This $2.25 billion 
account is an emergency appropriation to address unique and 
enormous problem with potentially dire consequences.
    We strongly disagree with the treatment of the Federal 
Election Commission in this bill. Funding for FEC is $2.8 
million below the requested level, and Section 511 establishes 
term limits for the staff director and general counsel, 
effectively terminating their employment by January 1999. 
Section 511 represents a blatant Republican political manuever 
aimed at removing FEC's general counsel for suggesting that FEC 
crack down on the soft money system and for some of the 
politically sensitive cases he has taken to court recently. 
Section 511 would undercut the bipartisan nature of the 
Commission and make FEC general counsel the only general 
counsel with a term limit who is not nominated by the President 
and confirmed by the Senate. This is an unwarranted retaliatory 
provision aimed at undermining the professionalism and 
independence of the general counsel's office. Section 511 does 
not belong in this bill.
    We also disagree with the level of micromanagement of the 
Executive Residence. The bill fences $630,000 for estimated 
domestic overtime expenses for running the Executive Residence 
until the GAO submits its report to the Committee concerning 
the number and costs of overnight guests at the White House. We 
believe this fencing of White House funding pending receipt of 
a GAO study is totally inappropriate and expect that it will be 
removed from the bill before conference.
    We disagree with the Postal Service provision added in full 
committee markup that would make the United States Trade 
Representative responsible for the formulation of policy 
regarding international postal and delivery services and would 
place international postage rates under the jurisdiction of the 
Postal Rate Commission. This amendment is broader than was 
represented to the Committee in that it strips the Postal 
Service of its authority to set international postal rates. 
This provision is vehemently opposed by the U.S. Trade 
Representative. This provision could jeopardize the current 
international postal delivery system for all Americans who send 
letters and items overseas while paving the way for foreign 
postal administrations to dramatically increase market share in 
the international delivery market originating in the United 
States. We believe this provision does not establish a level 
playing field and should be eliminated.
    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.
    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 H. Hoyer.
                                   Carrie P. Meek.
                                   David Price.

                                
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