[Senate Report 105-251]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 470
105th Congress                                                   Report
                                 SENATE

  2d Session                                                    105-251
_______________________________________________________________________


 
        TREASURY AND GENERAL GOVERNMENT APPROPRIATION BILL, 1999

                                _______
                                

                 July 15, 1998.--Ordered to be printed

_______________________________________________________________________


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

                              R E P O R T

                         [To accompany S. 2312]

    The Committee on Appropriations reports the bill (S. 2312) 
making appropriations for the Treasury Department, the United 
States Postal Service, the Executive Office of the President, 
and certain Independent Agencies for the fiscal year ending 
September 30, 1999, and for other purposes, reports favorably 
thereon and recommends that the bill do pass.

Amount of bill as reported to the Senate................ $29,923,742,000
Amount of estimate......................................  26,828,439,000
The bill as reported to the Senate:
    Above the appropriations provided in 1998...........   4,597,975,000
    Above the estimates for 1999........................   3,095,303,000


                            C O N T E N T S

                              ----------                              
                                                                   Page
General statement and summary of bill............................     3
Title I--Department of the Treasury..............................     7
Title II--United States Postal Service...........................    43
Title III--Executive Office of the President and Funds 
  Appropriated to the President..................................    45
Title IV--Independent Agencies:
    Committee for Purchase From People Who Are Blind or Severely 
      Disabled...................................................    62
    Federal Election Commission..................................    63
    Federal Labor Relations Authority............................    63
    General Services Administration..............................    65
    Morris K. Udall Scholarship and Excellence in National 
      Environmental Policy Foundation............................    75
    Merit Systems Protection Board...............................    75
    National Archives and Records Administration.................    76
    National Historical Publications and Records Commission......    78
    Office of Government Ethics..................................    78
    Office of Personnel Management...............................    79
    Office of Special Counsel....................................    83
    U.S. Tax Court...............................................    83
Statement concerning general provisions..........................    85
Title V--General provisions, this act............................    86
Title VI--General provisions, departments, agencies, and 
  corporations...................................................    87
Compliance with paragraph 7, rule XVI, of the Standing Rules of 
  the Senate.....................................................    90
Compliance with paragraph 7(c), rule XXVI of the Standing Rules 
  of the Senate..................................................    91
Compliance with paragraph 12, rule XXVI of the Standing Rules of 
  the Senate.....................................................    92
Tables...........................................................    96

               General Statement and Summary of the Bill

    The accompanying bill contains recommendations for new 
budget (obligational) authority for the Treasury Department, 
the United States Postal Service, the Executive Office of the 
President, and certain independent agencies for the fiscal year 
ending September 30, 1999.
    The Committee considered budget estimates for fiscal year 
1999 in the aggregate amount of $26,828,439,000. Compared to 
that amount, the accompanying bill recommends new budget 
authority totaling $29,852,547,000 which is $3,024,108,000 more 
than the amount requested by the administration.
    The Committee recommendations are consistent with the 
fiscal year 1999 section 302(b) budget authority and outlay 
allocations for the Treasury and General Government 
Subcommittee.

                       reprogramming requirements

    The Committee is concerned about the number of 
reprogramming requests submitted by agencies for congressional 
review. Agencies are again reminded that only those requests 
which meet the reprogramming criteria listed below will be 
considered, that reprogramming should be reserved for critical 
circumstances, and that reprogramming proposals will not be 
considered, except in extraordinary circumstances, if received 
45 or fewer days prior to the end of the fiscal year.
    The reprogramming guidelines to be used to determine 
whether or not a reprogramming shall be submitted to the 
Committee for prior approval are as follows:
    (1) For agencies, departments, or offices receiving 
appropriations in excess of $20,000,000, a reprogramming must 
be submitted if the amount to be shifted to or from any object 
class, budget activity, program line item, or program activity 
involved is in excess of $500,000 or 10 percent of the object 
class, budget activity, program line item, or program activity;
    (2) For agencies, departments, or offices receiving 
appropriations less than $20,000,000, a reprogramming must be 
submitted if the amount to be shifted to or from any object 
class, budget activity, program line item, or program activity 
involved is in excess of $50,000 or 10 percent of the object 
class, budget activity, program line item, or program activity;
    (3) For any actions which would result in a major change 
contrary to the program or item presented to and approved by 
the Committee or the Congress;
    (4) For any action where the cumulative effect or past 
reprogramming actions added to the new reprogramming would 
exceed the dollar threshold mentioned above;
    (5) For any actions where funds earmarked for a specific 
activity are proposed to be used for another activity; and
    (6) For any actions where funds earmarked for a specific 
activity are in excess to meet the project or activity 
requirement, and are proposed to be used for another activity.

                 government performance and results act

    The Government Performance and Results Act of 1993, 
commonly called GPRA, was enacted to improve management of 
Federal agencies by requiring an emphasis on planning and 
results. Future funding decisions will be based upon an 
agency's ability to meet the goals outlined in the annual 
performance plan.
    The performance plans for the Department of the Treasury 
were included in the Department's budget justification 
submission which was received concurrently with the President's 
budget proposal. One of the strengths of the plan is that the 
annual performance goals and measures are linked to the goals 
in the various strategic plans. In many cases, there was a 
clear connection between performance goals and program 
activities, and each program activity is associated with at 
least one performance goal. However, it did not fully portray 
how the Department's strategies and resources will help achieve 
the goals, or provide information on how the Department plans 
to ensure that performance information will be credible.
    In some cases, the performance plans provided were 
insightful and useful in making inquiries of the agencies on 
priorities for funding, and will be helpful during 
consideration of the fiscal year 2000 budget to determine 
whether the goals were met.
    The Committee received performance plans from all agencies 
under the jurisdiction of this bill which are required by the 
Results Act to submit such plans. As is always the case with a 
new requirement, some plans are better and more responsive to 
the intent of Congress than others. Some agencies simply state 
their statutory mission as a performance plan rather than 
outline specific goals such as reduced backlog or increased 
productivity. Continued guidance from the Office of Management 
and Budget will be useful for future performance and strategic 
plans.
    The Committee considers the full and effective 
implementation of the Results Act to be a priority for all 
agencies under its jurisdiction. It is recognized that 
implementation will be an iterative process, likely to involve 
several appropriations cycles, and the Committee will support 
the efforts of agencies to develop high quality performance 
plans. The Committee will consider agencies' progress in 
addressing weaknesses in performance plans in tandem with their 
funding requests. Agencies are urged to examine the program 
activities currently supporting their budget requests in light 
of their strategic goals and to determine whether any changes 
or realignments would facilitate a more accurate and informed 
presentation of budgetary information. The Committee strongly 
urges agencies to ensure that fiscal year 2000 and subsequent 
budget submissions display amounts requested against program 
activity structures that bear clear relationships to 
performance goals.

                     vehicle usage and replacement

    The fiscal year 1998 Senate Treasury and General Government 
appropriations bill directed the General Accounting Office to 
review the use of vehicles by law enforcement agencies within 
the Treasury Department and report to the House and Senate 
Committees on Appropriations within 6 months after enactment of 
the bill. The GAO has found that 31 U.S.C. 1344 authorizes 
transportation between home and work when it is essential for 
the safe and efficient performance of law enforcement duties. 
In addition, it requires that vehicle use by agents be approved 
in writing by the agency head and that agencies must maintain 
logs or other records to establish official use of the vehicle.
    The Committee initiated the review due to increasing 
financial demands for vehicle replacement by bureaus of the 
Treasury Department. GAO has reported that the application of 
the portal-to-portal transportation policy for law enforcement 
was supported and carried out by Treasury's bureaus. However, 
documentation of written approval by the agency head for the 
use of the vehicle by a law enforcement agent, and the 
maintenance of accurate logs specific to vehicle use, was 
either not available or nonexistent.
    The Committee, therefore, believes that the Treasury 
Department and all of its bureaus that have law enforcement 
components are not in full compliance with statutory 
regulations. In addition, the Committee believes that the 
Treasury Department needs to finalize and implement Treasury 
Directive 74-06, which has been in draft form since 1988. The 
Committee is concerned that if the Treasury Department issues 
its directive without including essential definitions such as 
the contents of a vehicle usage log, certification of use and 
other requirements, the directive will not be an effective tool 
for the management and tracking of law enforcement vehicle 
usage.
    Therefore, the Committee directs that the Department of the 
Treasury report to the Senate Committee on Appropriations no 
later than 6 months after the date of enactment of this bill on 
how it intends to comply with existing statutory requirements, 
address congressional concerns about vehicle usage and the 
Treasury directive, as well as the ability to maintain 
sufficient vehicle logs should an independent audit be deemed 
appropriate.
    The Committee is encouraged by the Department of the 
Treasury's new initiative to track vehicle replacement 
Departmentwide and has provided the $1,000,000 requested under 
the ``Automation enhancement'' account for this program. The 
Committee believes that this is a much needed step and that 
this program will improve the Department of the Treasury's 
ability to accurately project vehicle replacement, maintenance, 
and the need for new vehicles. The Committee encourages the 
Department of the Treasury to include in its program the impact 
portal-to-portal usage has on the maintenance and life of the 
vehicle. In anticipation of this new initiative, the Committee 
has denied all new funding requests for vehicle acquisition 
across all Treasury bureaus.

                        climate change research

    On October 22, 1997, the President introduced a three-stage 
proposal on climate change in anticipation of an international 
agreement to be negotiated 2 months later in Kyoto, Japan. The 
President's budget for fiscal year 1999 included a 
$6,300,000,000 package of tax incentives and research and 
development programs over the 5 years of stage I of the 
President's proposal. With regard to programs pursued under the 
President's proposal, the Committee expects the administration 
to comply with the letter and spirit of the Government 
Performance and Results Act.
    The Committee directs the administration to designate which 
office has authority to coordinate and direct interagency 
activity with regard to the President's proposal, which can 
report accountably to Congress.
    None of the funds provided in this bill are to be used to 
implement actions called for solely under the Kyoto protocol, 
prior to its ratification.
    The Byrd-Hagel resolution passed in 1997 (S. Res. 98) 
remains the clearest statement of the will of the Senate with 
regard to the Kyoto protocol, and the Committee is committed to 
ensuring that the administration not implement the Kyoto 
protocol without congressional consent. The Committee 
recognizes, however, that there are also longstanding energy 
research programs which have goals and objectives that, if met, 
could have positive effects on energy use and the environment. 
The Committee does not intend to preclude these programs from 
proceeding, provided they have been funded and approved by 
Congress.
    To the extent future funding requests may be submitted 
which would increase funding for climate change activities 
prior to ratification of the Kyoto protocol (whether under the 
auspices of the climate change technology initiative or any 
other initiative), the administration must do a better job of 
explaining the components of the programs, their anticipated 
goals and objectives, the justification for any funding 
increases, a discussion of how success will be measured, and a 
clear definition of how these programs are justified by goals 
and objectives independent of implementation of the Kyoto 
protocol.
    The Committee directs the administration to provide the 
Committee with a detailed plan for implementing key elements of 
the President's proposal, which would include performance goals 
for the reduction of greenhouse gases that have objective, 
quantifiable, and measurable target levels. The plan should 
provide evidence on the effectiveness of these programs in 
meeting the performance goals. The Committee expects these 
items to be included as part of the fiscal year 2000 budget 
submission for all affected agencies.

                  TITLE I--DEPARTMENT OF THE TREASURY

                          Departmental Offices

                         salaries and expenses

Appropriations, 1998....................................    $114,771,000
Budget estimate, 1999...................................     123,846,000
Committee recommendation................................     120,671,000

    The Committee recommends an appropriation of $120,671,000 
for salaries and expenses for departmental offices of the 
Treasury Department. The amount provided by the Committee is 
$5,900,000 above the fiscal year 1998 level.
    The Committee has recommended a funding level of 
$120,671,000 which includes adjustments for mandatory cost 
increases. The Committee has also provided for maintaining 
current levels of funding related to the other benefits 
category and nonlabor cost increases. In addition, the 
Committee included funding for workload increases related for 
the following areas: tax and economic policy, international 
affairs, Office of Foreign Asset Control staffing for terrorism 
and narcotics, enforcement policy coordination, fiscal and 
financial services, and improved human resource activities. The 
Committee notes that the administration request includes 
$4,000,000 for year 2000 conversion costs. The Committee has 
provided an additional emergency appropriation to address these 
costs.
    The departmental offices function of the Treasury 
Department provides basic support to the Secretary in his roles 
as the chief financial officer of the Government, major policy 
adviser to the President, and Executive Director of the 
Treasury Department. The Secretary's responsibilities include: 
recommending and implementing U.S. domestic and international 
economic policy, fiscal policy, and tax policy; managing the 
fiscal operations of the Government; managing the public debt; 
overseeing the major law enforcement functions carried out by 
the Treasury Department; serving as the U.S. representative to 
the various international financial organizations; and 
directing the general administrative operations of the Treasury 
Department.
    In support of the Secretary, the departmental offices 
function provides policy formulation and implementation in 
areas such as tax and economic affairs, trade and financial 
operations, and general fiscal policy. This function also 
provides advice and technical assistance on administrative and 
legislative programs and establishes and coordinates 
departmental administrative policies in areas such as budget, 
accounting, personnel, procurement, information systems 
development and management, telecommunications, and equal 
employment opportunity.
    The international affairs programs involve the formulation 
and execution of Treasury policy in a wide range of important 
economic areas. This activity includes those offices 
responsible for providing staff analysis and support for the 
Secretary and other senior officials involved in formulating 
and implementing international economic and financial policies. 
The issues involved within this activity include: international 
monetary affairs; international development financing policy; 
U.S. policy toward, and participation in, the work of the 
various international financial organizations; international 
economic analysis; international trade and investment policy; 
financial aspects of commodities and natural resources policy.

                    office of foreign assets control

    The Committee has provided that the Office of Foreign 
Assets Control [OFAC] be funded at the fiscal year 1999 
request, $6,560,800. OFAC is responsible for enforcing economic 
sanctions as well as oversight and investigations of the 
illegal operations conducted by foreign agents and businesses. 
The Committee expects that this funding level will allow for 64 
permanent full-time staffing positions. During the fiscal year 
1999, the Committee provided that the Office be funded at no 
less than $4,500,000. In fiscal year 1999, this floor will be 
raised to $5,517,000.

                       Northern Lights Initiative

    The Committee continues to support the northern lights 
initiative on the United States-Canadian border. This 
initiative is an interagency, multijurisdictional program to 
improve law enforcement effectiveness and to address the 
growing drug problem along the Northeast border. This 
initiative is intended to improve communication, coordination, 
and effectiveness of law enforcement throughout the region.

              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

Appropriations, 1998....................................      $1,250,000
Budget estimate, 1999...................................       1,654,000
Committee recommendation................................................

    The Committee has provided no additional funding for the 
Office of Professional Responsibility. The Office was created 
by this Committee in fiscal year 1997 for the purpose of 
assisting the Under Secretary for Enforcement in providing 
greater oversight and management of Treasury's law enforcement 
bureaus. Since that time, a total of $2,750,000 has been 
appropriated for this purpose, and another $1,654,000 was 
requested for fiscal year 1999.
    The Committee believes that there is no longer a need for a 
separate appropriation for this Office, and has provided 
sufficient funding within the departmental offices for the 
Under Secretary of Enforcement to continue the operations of 
this Office should he so desire.

                        Automation Enhancements

Appropriations, 1998....................................     $61,389,000
Budget estimate, 1999...................................      33,952,000
Committee recommendation................................      28,990,000

    The Committee has provided a total of $28,990,000 for 
development and acquisition of automatic data processing 
equipment, software, and services for the Department of the 
Treasury. These funds are made available for 2 years and may be 
transferred to accounts and in amounts as necessary to satisfy 
the requirements of the departmental offices, bureaus, and 
organizations. These funds shall be in addition to amounts 
appropriated in this act and $8,000,000 shall be available for 
obligation on September 30, 1999. The funds should be provided 
and transferred as follows:

Departmental offices....................................     $15,590,000
Departmental offices, international trade data system 
    [ITDS]..............................................       5,400,000
U.S. Customs Service, automated commercial environment 
    project [ACE].......................................       8,000,000

                     customs modernization project

    The Committee has provided $8,000,000 for the Customs 
Service automated commercial environment computer modernization 
project. These funds are provided under the Department of the 
Treasury's ``Automation enhancement'' account. The Committee is 
pleased that the Department of the Treasury has taken over the 
management responsibility of this program and supports 
continued program management by the Chief Information Officer 
of Treasury, including the obligation of funds, with 
concurrence on the plan and the program's plan and milestone 
schedule for deployment by the Treasury Investment Review 
Board.
    The fiscal year 1998 appropriations bill directed the 
General Accounting Office to study the Customs Service's effort 
to modernize its computer technology and the enterprisewide 
architecture upon which the program is based. As a result of 
GAO's findings, the Committee continues to believe that full-
scale deployment of this project is premature at this time. 
Therefore, the Committee prohibits the Customs Service from 
making any major system investments prior to the development of 
an architecture compliant with the Treasury information systems 
architecture framework [TISAF], and establishment of an 
effective process to enforce compliance with the architecture. 
Funds will not be available for obligation until GAO reviews 
and reports to Congress that the Customs Service has met these 
two objectives.

                    International Trade Data System

    The Committee has provided $5,400,000 for the international 
trade data system.

                    Office of the Inspector General

                         salaries and expenses

Appropriations, 1998....................................     $29,719,000
Budget estimate, 1999...................................      30,678,000
Committee recommendation................................      30,678,000

    The Committee recommends an appropriation of $30,678,000 
for salaries and expenses of the Office of the Inspector 
General.
    The statutory Office of the Inspector General of the 
Department of the Treasury was authorized under the Inspector 
General Act Amendments of 1988, Public Law 100-504. That act 
required the consolidation of the staff and responsibilities 
for the internal audit functions at the Bureau of Alcohol, 
Tobacco and Firearms, the U.S. Customs Service, and the U.S. 
Secret Service, with the Department of the Treasury's existing 
Office of the Inspector General.
    The Office of the Inspector General is organizationally 
independent of all other offices and bureaus within the 
Department of the Treasury and is under the general supervision 
of the Secretary of the Treasury or his Deputy. The Office is 
responsible for: (1) the conduct, supervision, and coordination 
of audits with the Department; (2) the conduct of 
investigations within the nonlaw enforcement bureaus of the 
Department; (3) the oversight of investigations in the law 
enforcement bureaus or the conduct of such investigations, if 
appropriate; (4) the review of legislation and regulations of 
the Department; and (5) reporting to the Secretary and the 
Congress as set forth in the law.

       repair and restoration of the treasury building and annex

Appropriations, 1998....................................     $10,484,000
Budget estimate, 1999...................................      27,000,000
Committee recommendation................................      27,000,000

    The Committee recommends an appropriation of $27,000,000 
for the repair and restoration of the Treasury Building and 
Annex. This amount is equal to the budget request, and shall be 
available for obligation on September 30, 1999.

                      Treasury Building Renovation

    As a result of the 1996 fire at the Main Treasury Building 
and subsequent repairs, the Treasury Department has identified 
life and safety needs related to the building which must be 
addressed for the building to meet current safety codes 
including: electrical system replacement, installation of fire 
alarms and sprinkler systems, asbestos removal, and emergency 
lighting. This 5-year renovation program will allow the 
Department of the Treasury to correct existing deficiencies 
that affect the life and safety of the building's occupants, 
while at the same time ensuring that the integrity of this 
historic building is maintained.

                  Financial Crimes Enforcement Network

Appropriations, 1998....................................     $22,835,000
Budget estimate, 1999...................................      24,000,000
Committee recommendation................................      23,670,000

    The Committee has recommended $23,670,000 which includes 
adjustments for mandatory costs increases. The Committee has 
also provided for the maintenance of current levels of funding 
with the exception of $330,000 for the contract support to 
maintain base operations.
    The Financial Crimes Enforcement Network [FinCEN] was 
created on April 25, 1990, by Treasury Order 105-08. The 
Treasury Department established FinCEN to implement the 
President's national drug control strategy recommendations 
calling for increased efforts to combat drug money laundering. 
FinCEN was created to serve as a central source for the 
systematic identification, collation, and analysis of 
intelligence in support of law enforcement operations. It also 
exercises the Department's responsibilities under the Bank 
Secrecy Act.
    FinCEN provides a Governmentwide multisource intelligence 
and analytical network to support Federal, State, local, and 
foreign law enforcement and regulatory agencies in the 
detection, investigation, prosecution of money laundering, and 
other financial crimes. Toward this end, FinCEN is charged with 
linking together and analyzing financial, law enforcement, and 
public data sources, to provide leads on criminal financial 
activity that might otherwise go undetected.
    In support of this mission, FinCEN is staffed with 
permanent FinCEN employees, analysts and computer specialists, 
as well as special agents, analysts, and other Federal 
employees on nonreimbursable details from Federal Government 
agencies.

                                GATEWAY

    The FinCEN salaries and expenses funding level includes 
$600,000 for GATEWAY. The Committee notes this project has been 
operating on fiscal year 1995 funding which established GATEWAY 
as a pilot project. The proposed funding level will provide 
FinCEN adequate resources to maintain the GATEWAY money 
laundering data bases and provide State and local law 
enforcement officers the training necessary to utilize FinCEN's 
technology and capabilities. The Committee notes that certain 
States are not utilizing the GATEWAY automated commercial data 
base as much as others. The Committee encourages FinCEN to make 
these States aware of resources available to them and to seek 
out ways to assist them in their efforts to combat money 
laundering through GATEWAY.

                        treasury forfeiture fund

    The Treasury forfeiture fund was established on October 1, 
1993, in Public Law 102-393. It has two accounts, one which is 
funded through permanent indefinite authority and the other 
which is funded through a direct annual appropriation. The 
direct appropriation represents the annual congressional 
limitation on the use of the proceeds from seized and forfeited 
assets. Forfeited cash and the proceeds of forfeited monetary 
instruments are deposited into the fund. Proceeds from the sale 
of other seized and forfeited assets are also deposited into 
the fund.
    The Committee has reviewed the proposed distribution from 
the Treasury forfeiture fund outlined by the Department of the 
Treasury in their budget justification. The Committee agrees 
that funds should be provided to the Bureau of Alcohol, Tobacco 
and Firearms for their post-incident investigations 
($3,600,000) and for the explosives repository ($1,600,000). 
However, the Committee prohibits distribution to ATF for 
vehicles for reasons explained elsewhere in this report. 
Further, the Committee believes that the distribution for 
CEASEFIRE should be increased to $4,000,000 to allow ATF to 
provide this technology to eligible State and local law 
enforcement organizations who have requested this equipment.
    The Committee agrees that funds should be provided to the 
U.S. Secret Service for the Treasury Communications System 
($3,700,000) and the PC/local area network ($500,000). And, the 
Committee agrees that funds should be distributed to the 
Financial Crimes Enforcement Network ($2,298,000) to assist in 
their efforts.
    The Committee would encourage the Customs Service to seek 
funding for the construction of a P-3 hangar in Corpus Christi, 
TX, should the Secretary of the Treasury deem it appropriate 
and advance approval is received from the Senate Committee on 
Appropriations. The Committee directs that the Department 
complete the global transpark network customs information 
project [GTPN/CIP] with an additional $1,500,000 through the 
Treasury forfeiture fund. However, the Committee prohibits 
distribution to the Customs Service for vehicles. Likewise, the 
Committee prohibits distribution to the Internal Revenue 
Service Criminal Investigation Division for vehicles.
    Finally, the Committee recommends that the Secretary of the 
Treasury give serious consideration to providing $6,000,000 to 
the Federal Law Enforcement Training Center [FLETC] for the 
construction of a new classroom building. This project is part 
of their master plan, and is necessary because of increased 
basic training workload.

           Violent Crime Control and Law Enforcement Funding

Appropriations, 1998....................................    $131,000,000
Budget estimate, 1999...................................     132,172,000
Committee recommendation................................     132,000,000

                    violent crime reduction program

    The Committee has provided $132,000,000 for Treasury 
enforcement activities as follows:

Bureau of Alcohol, Tobacco and Firearms:
    GREAT grants........................................     $13,239,000
    Laboratory equipment/investigative supplies.........       1,800,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total, Bureau of Alcohol, Tobacco and Firearms....      15,039,000
                    ========================================================
                    ____________________________________________________
Financial Crimes Enforcement Network:
    SARS data analysis..................................         300,000
    Enhanced law enforcement resources..................         200,000
    Cyberpayment studies................................         800,000
    Money laundering regulations........................         100,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total, Financial Crimes Enforcement Network.......       1,400,000
                    ========================================================
                    ____________________________________________________
Federal Law Enforcement Training Center:
    Rural law enforcement officers training.............       1,000,000
    Equipment replacement...............................         158,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total, Federal Law Enforcement Training Center....       1,158,000
                    ========================================================
                    ____________________________________________________
Interagency Law Enforcement: Interagency crime drug 
    enforce- ment.......................................      45,000,000
                    ========================================================
                    ____________________________________________________
U.S. Customs Service:
    High energy seagoing container inspection systems...      10,000,000
    Automated targeting systems.........................       3,400,000
    Southwest border technologies.......................      40,600,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total, U.S. Customs Service.......................      54,000,000
                    ========================================================
                    ____________________________________________________
U.S. Secret Service:
    Counterfeiting investigations.......................       5,000,000
    Candidate/nominee protection program................       7,732,000
    Forensic and related support of investigations of 
      missing and exploited children....................       2,671,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total, U.S. Secret Service......................      15,403,000

                Bureau of Alcohol, Tobacco and Firearms

    The Committee has provided $1,800,000 to the Bureau of 
Alcohol, Tobacco and Firearms for necessary replacement of 
laboratory equipment and for investigative supplies.

                             GREAT Program

    The Committee supports funding for the Gang Resistance 
Education and Training [GREAT] Program through the VCRTF, and 
provides $13,239,000 for grants to local law enforcement 
organizations. Funding for ATF administrative support, 
training, and related activities is provided through the ATF 
``Salaries and expenses'' account.

                  Financial Crimes Enforcement Network

    The Committee has provided $300,000 for data analysis and 
mining related to the suspicious activity reporting form 
required by the Bank Secrecy Act. The Committee has also 
included $800,000 for FinCEN to conduct cyberpayment studies, 
as well as $100,000 for money laundering regulations. In 
addition, the Committee has provided $200,000 for increased 
resources to Federal, State, and local law enforcement for 
training.

                Federal Law Enforcement Training Center

    The Committee has included funding in the VCRTF for rural 
law enforcement officers training ($1,000,000) which was 
requested as part of the ``Salaries and expenses'' account. 
Similarly, the Committee has provided $158,000 for necessary 
replacement of higher priority equipment.

                          U.S. Customs Service

                     Narcotics Detection Technology

    The Committee has provided full funding for the 
noninstrusive inspection technology to support Customs' 
counterdrug activities. The Committee has provided $54,000,000 
for this effort.

                      Interagency Law Enforcement

    The Committee has provided $45,000,000 to interagency crime 
and drug enforcement [ICDE], the amount requested by the 
administration from this account. These funds will allow ICDE 
to continue their efforts to reduce drug-related crime.

                          U.S. Secret Service

    The Committee has provided $5,000,000 for counterfeiting 
investigations. The Committee has provided $7,732,000 for 2000 
candidate and nominee protection program. This funding will 
allow the Service to start training Treasury Department 
personnel on campaign procedures and secure the necessary 
equipment. Further, the Committee has included $2,671,000 for 
the Service's operational costs for the Exploited Child Unit, 
associated with its continued efforts with the National Center 
for Missing and Exploited Children.

                Federal Law Enforcement Training Center

                         salaries and expenses

Appropriations, 1998....................................     $64,663,000
Budget estimate, 1999...................................      71,923,000
Committee recommendation................................      66,251,000

    The Committee recommends an appropriation of $66,251,000 
for salaries and expenses of the Federal Law Enforcement 
Training Center [FLETC]. This amount is $1,588,000 above the 
fiscal year 1998 level. The Committee recommends $1,773,000 for 
adjustments for mandatory cost increases. The Committee has 
included $1,000,000 to continue the rural law enforcement 
training program and $158,000 for equipment replacement in the 
VCRTF.
    The Federal Law Enforcement Training Center provides the 
necessary facilities, equipment, and support services for 
conducting basic and advanced training for Federal law 
enforcement personnel of its participating organizations. 
Center personnel conduct the instructional programs for the 
basic recruit training and also selected portions of the 
advanced training. In addition, the Center furnishes training 
on a space-available basis to personnel from several Federal 
organizations which are not formal participants under the 
memorandum of understanding.
    In October 1982, the President directed that a national 
center for State and local training be established as a part of 
the Federal Law Enforcement Training Center. The major program 
goals are to present advanced and specialized training and to 
provide basic technical assistance to State and local law 
enforcement agencies.
    In recent years, considerable funding has been provided 
Federal law enforcement agencies to hire and train additional 
personnel. The Committee has included funding to ensure that 
FLETC can meet the demands of agencies for training their 
personnel.
    The Committee has revised section 616 to permit the Federal 
Law Enforcement Training Center to acquire the temporary use of 
additional training facilities without seeking the advance 
approval otherwise required by that the section. The Committee 
directs the Center to report to the Senate Committee on 
Appropriations by May 1, 1999, on the use of this authority 
during the first 6 months of fiscal year 1999, and projections 
for its use for the remaining 6 months of the fiscal year.
    In addition, language has been included to clarify that 
FLETC may provide gang resistance education and training 
[GREAT] training in partnership with ATF to Federal and non-
Federal personnel at FLETC and other locations, including sites 
that may be used on a regional basis for this training.
    The Center's rapidly changing training needs require the 
Center to respond quickly in order to meet the requirements of 
participating organizations. This limited exception would 
provide greater flexibility to the Center to conduct certain 
advanced and State and local law enforcement training that is 
not scheduled at permanent sites due to current and anticipated 
basic training requirements. No Center funding is to be used 
for the purpose of making capital improvements at the temporary 
sites acquired by the Center.

                        Computer Crime Training

    Computer crime has become an increasing problem for State 
and local law enforcement. Computers can be a target, 
facilitator, or tool for illegal activities such as 
embezzlement, trade secret theft, fraud, and child pornography 
trade and possession. State and local law enforcement needs 
training on how to respond to, as well as prevent, computer 
crime. This education would be particularly useful for Montana 
law enforcement personnel. Therefore, the Committee directs the 
FLETC to develop a computer crimes control and prevention 
curriculum for use by State and local law enforcement, and work 
with interested State and local law enforcement offices to 
provide basic and advanced training on a reimbursable basis.

     acquisition, construction, improvements, and related expenses

Appropriations, 1998....................................     $32,548,000
Budget estimate, 1999...................................      28,360,000
Committee recommendation................................      15,360,000

    The Committee recommends an appropriation of $15,360,000 
for acquisition, construction, improvements, and related 
expenses of the Federal Law Enforcement Training Center. The 
Committee recommends $228,000 for mandatory cost increases. 
Because of fiscal constraints, the Committee has not 
recommended additional funding under this account for master 
plan construction projects. However, the Committee has included 
language under the Treasury forfeiture fund to encourage the 
Secretary of the Treasury to provide $6,000,000 for 
construction of a new classroom building.
    The ``Acquisition, construction, improvements, and related 
expenses'' account covers major maintenance and facility 
improvements, construction, renovation, capital improvements, 
and related equipment at FLETC facilities in Glynco, GA, and 
Artesia, NM.
    The Federal Law Enforcement Training Center was established 
in 1970 as the single interagency training organization for 
Federal law enforcement agencies. FLETC's concept of 
Governmentwide, consolidated law enforcement training is 
directed at promoting the highest quality training at the most 
reasonable cost to the American taxpayer through multiple 
agency support and use. FLETC, through its principal facility 
in Glynco, GA, now serves the basic and advanced training needs 
of 72 participating Federal agencies.
    In June 1989, the Training Center completed its development 
of a master plan which will enable FLETC to better serve the 
training demands of Federal, State, and local law enforcement 
agencies. This master plan calls for the construction of 
additional facilities at both Center locations. The Committee 
expects the Department to periodically update the master plan 
to include new requirements demanded by the user agencies for 
effective law enforcement training.

                      Interagency Law Enforcement

Appropriations, 1998....................................     $73,794,000
Budget estimate, 1999...................................      30,900,000
Committee recommendation................................      30,900,000


    The Committee recommends an appropriation of $30,900,000 
for interagency crime and drug enforcement [ICDE]. This amount 
is equal to the budget estimate. The Committee has included an 
additional $45,000,000 under the VCRTF.
    ICDE consolidates the resources of 11 Federal agencies to 
target and destroy major narcotics trafficking and money 
laundering organizations. The portion of ICDE funds formerly 
appropriated to the Department of Justice, for reimbursing 
Treasury law enforcement bureaus participating in the program, 
are now being directly appropriated to the Department of the 
Treasury. This amount will be administered by Treasury's 
departmental offices for continued ICDE participation by law 
enforcement personnel in three Treasury bureaus.

                      Financial Management Service

                         salaries and expenses

Appropriations, 1998....................................    $207,790,000
Budget estimate, 1999...................................     205,510,000
Committee recommendation................................     199,490,000

    The Committee recommends an appropriation of $196,490,000 
for salaries and expenses of the Financial Management Service 
[FMS] in fiscal year 1999. The Committee has included language 
to delay obligation of $4,500,000 for the payment of postage 
rates to the U.S. Postal Service, but the Committee reminds FMS 
that they have an obligation to pay these costs and authority 
under current law to do so out of available funds. The 
Committee notes that the administration's request includes 
$6,000,000 for year 2000 conversion costs. The Committee has 
provided an additional emergency appropriation to address these 
costs.
    In its financial management leadership role, the Service 
must manage effectively the movement of Federal funds as well 
as make the optimal use of Federal financial information. By 
doing so, FMS fulfills an obligation to the public by improving 
the Federal Government's overall financial position and helping 
to reduce the Federal deficit.
    FMS oversees the Government's overall financial operations 
through the financial and accounting services it provides to 
its customers--Congress, other Federal agencies, financial 
institutions, and the public.
    Service responsibilities include: regulation and management 
of the Government's collection systems; development and 
implementation of innovative cash management and credit 
administration practices in the administration of Federal 
programs; central payment services for all civilian executive 
agencies except the U.S. Postal Service, U.S. marshals, and 
certain Government corporations; processing claims on all lost, 
stolen, and forged checks including those not issued by the 
Treasury; providing central accounting services for the 
Government; compiling and publishing financial reports; and 
managing trust, revolving, and deposit fund accounts.

                  debt collection improvement account

    Public Law 104-134 included the Debt Collection Improvement 
Act of 1996, which designated the Financial Management Service 
as the primary agency collecting nontax debt which is due and 
owed to the Government. FMS is charged with coordinating the 
effort among Federal agencies to collect the debt.
    To assist in this effort the Committee has provided 
$3,000,000 for the ``Debt collection improvement'' account. 
This account will reimburse agencies for expenses derived from 
agency collections of delinquent debt.

                         Federal Financing Bank

    The Federal Financing Bank was created in 1973 through 
legislation designed to ensure coordination of Federal and 
federally assisted borrowing from the public in a manner least 
disruptive to private financial markets and institutions. Prior 
to that time, many agencies borrowed directly from the private 
market to finance credit programs involving lending to the 
public. Passage of the Federal Credit Reform Act in 1992 has 
resulted in changes to that initial legislation such that FFB 
loans are now used primarily to finance direct agency 
activities by deposit insurance agencies, construction of 
Federal buildings by the General Services Administration, and 
meeting the financing requirements of the U.S. Postal Service. 
In some cases, the FFB finances direct loans to the public that 
would otherwise be made by private lenders and fully guaranteed 
by a Federal agency.
    As part of the implementation of changes made to the 
Federal Credit Reform Act, the fiscal year 1999 budget provides 
an appropriation to liquidate the FFB's accumulated deficit 
that resulted from the fact that while FFB borrowers have been 
allowed to prepay at par, FFB paid a prepayment premium on the 
underlying obligations to the Treasury Department. The amount 
requested in the fiscal year 1999 budget for this liquidation 
appropriation is $2,854,000,000. Because this payment is for 
the exclusive purpose of liquidating public debt, OMB and CBO 
have determined that there are no scoring implications and that 
the appropriation is neutral to appropriators.

                Bureau of Alcohol, Tobacco and Firearms

                         salaries and expenses

Appropriations, 1998....................................    $478,934,000
Budget estimate, 1999...................................     544,324,000
Committee recommendation................................     529,489,000

    The Committee recommends an appropriation of $529,489,000 
for salaries and expenses of the Bureau of Alcohol, Tobacco and 
Firearms [ATF]. This amount is $50,555,000 above the fiscal 
year 1998 level. The Committee has provided $1,800,000 to the 
Bureau of Alcohol, Tobacco and Firearms in the VCRTF for 
necessary replacement of laboratory equipment and for 
investigative supplies.
    The Committee recommends $16,309,000 for adjustments for 
mandatory cost increases plus $3,000,000 for administration of 
the Gang Resistance Education and Training [GREAT] Program. The 
Committee has included $11,000,000 for the continuation of the 
youth crime gun interdiction initiative [YCGII] and an 
additional $16,000,000 to expand that program. In conjunction 
with increases for YCGII, an additional $4,500,000 is provided 
to expand the National Tracing Center. In addition, the 
Committee recommends $2,000,000 to hire 15 violent crime 
coordinators to assist the Justice Department in their efforts 
to prosecute armed violent offenders. The Committee notes that 
the administration's request includes $5,000,000 for year 2000 
conversion costs. It is expected that ATF will receive that 
funding through a separate account established solely for that 
purpose.
    The mission of the Bureau of Alcohol, Tobacco and Firearms 
is: (1) to reduce the criminal use of firearms and to assist 
other Federal, State, and local law enforcement agencies in 
reducing crime and violence by effective enforcement of the 
Federal firearms laws; (2) to provide safety for the public by 
reducing the criminal misuse of explosives, combating arson-
for-profit schemes, and removing safety hazards caused by 
improper and unsafe storage of explosive materials; (3) to 
assure the collection of all alcohol and tobacco tax revenues 
and obtain a high level of compliance with the alcohol and 
tobacco tax statutes; (4) to suppress commercial bribery, 
consumer deception, and other prohibited trade practices in the 
alcohol beverage industry by effective enforcement and 
administration of the Federal Alcohol Administration [FAA] Act; 
and (5) to suppress illicit manufacture and sale of nontax paid 
alcohol beverages.
    The Bureau's program objectives are as follows:
    Alcohol and tobacco programs.--Ensure the collection of all 
taxes due; prevent organized crime or other unqualified 
applicants from obtaining permits to enter the alcohol and 
tobacco industries; ensure an open, competitive market for 
alcohol beverages; ensure protection for the consumer in 
alcohol beverage products; and undertake projects on regulatory 
reform and programs offering assistance to other agencies (both 
regulatory and law enforcement), industry, and the public.
    Firearms program.--Reduce illegal trafficking in firearms; 
assist Federal, State, and local law enforcement and regulatory 
agencies in reducing illegal trafficking in weapons, reducing 
firearms-related crime, and investigating firearms-related 
cases; and identify and investigate violence-prone individuals 
who use firearms in criminal acts.
    Explosives and arson programs.--Reduce criminal misuse of 
explosives; ensure public safety regarding the storage of legal 
explosives; reduce arson incidents; and assist Federal, State, 
and local investigative and regulatory agencies in explosives 
and arson-related areas.

                   Federal alcohol administration act

    The Committee recognizes alcoholic beverages as among the 
most socially sensitive commodities marketed in the United 
States. In this connection, marketing, labeling, and 
advertising of alcoholic beverages must be accomplished in an 
environment which fosters fair and healthy competition while 
protecting the interests of the American consumer. The 
Committee expects that there be no diminution of regulatory and 
oversight functions in fiscal year 1999.

               armed career criminal apprehension program

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

           STAFFING LEVELS IN SMALLER STATES AND RURAL STATES

    Over the past several years the number of ATF agents in the 
smaller States and rural areas have steadily declined, in favor 
of placing agent resources in larger States with large 
metropolitan centers. These staffing trends have not always 
reflected the needs of these areas. Wisconsin is an example. 
Although ATF staffing has increased almost 8 percent since 
1990, the staffing in Milwaukee has declined over 50 percent. 
The Committee urges ATF, as it reviews its staffing, to examine 
allocations for rural areas and small and medium States.

                      Achilles Task Force Program

    The Committee continues to support the work started by the 
Achilles Task Force Program and is pleased to note that the 
administration's request will result in continued operations at 
existing levels at both the Albuquerque and Houston-based 
sites.

                             GREAT Program

    Since its inception the Gang Resistance Education and 
Training [GREAT] Program has proved successful. The proof is 
reflected in the large number of State and local police 
agencies currently participating, and the number of those 
seeking to participate in the program. The Committee has 
included funding in the VCRTF for grants to local law 
enforcement organizations to allow them to participate in the 
program. However, this is not sufficient to fund the number of 
requests received from communities such as Las Cruces, NM.
    The Committee believes that strong consideration should be 
given to applications from Las Cruces, NM and the following 
counties in North Carolina: Cumberland, Bladen, Wake, and 
Mecklenburg, as well as LaCrosse, Menomenee, Oneida, and Beloit 
Counties in Wisconsin. These counties have demonstrated that 
gangs and gang-related problems exist in their communities and 
are looking for support from the GREAT Program in educating 
young people about resolving conflicts peacefully rather than 
through violence. The Committee strongly urges that the fiscal 
year 2000 budget include a significantly higher request to 
allow for much-needed expansion of this worthwhile program.

                        National Tracing Center

    The Committee continues to support the practice of 
compiling information for the purpose of identifying individual 
criminal offenders and alleged offenders related to specific 
criminal and civil investigations. However, the Committee 
remains concerned that there does not appear to be a written 
policy regarding the collection and maintenance of records on 
the acquisition and disposition of firearms by Federal firearms 
licensees for use in criminal or civil enforcement or firearms 
trace systems, particularly regarding the length of time such 
records are kept. Therefore, the Committee directs ATF to 
develop such a written policy and provide a copy of that 
written policy to the Committee no later than March 31, 1999.

                   NATIONAL TRACING CENTER EXPANSION

    The Committee directs ATF to provide $4,500,000 to expand 
the National Tracing Center located in Martinsburg, WV. The 
funding will provide space to accommodate employees working in 
three shifts. The funding will also provide for expansion as 
needed. The funding will cover the increased cost of the lease 
expenses ($1,000,000); security upgrades ($2,000,000); and 
additional computer systems and furniture ($1,500,000).

                       Return of Stolen Firearms

    The Committee understands there have been instances where 
individuals who own a registered firearm which was reported 
stolen and subsequently 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 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.

                     Safety and Security Standards

    The Committee is concerned about the apparent lack of 
safety and security standards for federally licensed firearms 
dealers. Guns stolen from licensed gun dealers pose an 
increasingly significant public safety threat. It is clear that 
the industry and ATF need to work together to address these 
problems. Therefore, the Committee directs ATF to make 
identifying and addressing security recommendations for Federal 
firearms licensees a priority at the next firearms industry 
discussion group that convenes.

             Criminal Gang Activity on Indian Reservations

    The Committee wishes to acknowledge the efforts of ATF to 
help curtail the problem of increased criminal gang activity on 
Indian reservations by increasing the number of Gang Resistance 
Education and Training [GREAT] Program in those areas. The 
Committee has received information from both the Judiciary and 
Indian Affairs Committees that the Indian country gang problem 
continues to grow. Thus, the Committee hopes that the efforts 
of both the ATF, through the GREAT Program, and the Federal Law 
Enforcement Center, through training tribal law enforcement, 
will continue.

                YOUTH CRIME GUN INTERDICTION INITIATIVE

    The Committee acknowledges the fine work of the Bureau of 
Alcohol, Tobacco and Firearms in the youth crime gun 
interdiction initiative [YCGII], particularly its statistical 
analysis in ``Crime Gun Trace Analysis Reports: The Illegal 
Youth Firearms Markets in 17 Communities'' published in July 
1997. These crime gun trace statistics have been helpful in 
identifying the types of crime guns used by particular age 
groups and establishing the time-to-crime rates for each crime 
gun type. The Committee understands that these statistics are 
critical to experienced trafficking investigators as they have 
established regional links to trafficking trends and youth and 
gang-related violence.
    The Committee also understands that this initiative has 
directly led to prosecutions of individuals who illegally 
traffic firearms to young criminals and with the implementation 
of a regional enforcement strategy it has the potential to 
seriously address the problem of illegal trafficking. The 
Committee believes that an investment in experienced 
trafficking agents to conduct investigations arising out of 
leads obtained through this regional initiative is likely to 
have a significant impact on the number of prosecutions for 
illegal firearms trafficking, and is likely to disrupt these 
illegal firearms markets.
    The Committee recommends that $27,000,000 be dedicated to 
YCGII, of which $16,000,000 will be used to hire 81 experienced 
trafficking agents to expand the YCGII efforts in 27 cities. As 
part of this expansion the Committee recommends that not less 
than $2,400,000 be used for the addition of 12 experienced 
trafficking agents, including three in Milwaukee, to implement 
a multifaceted regional enforcement strategy within the Midwest 
region including the previously identified YCGII cities of 
Chicago, IL, Milwaukee, WI, Gary, IN, and Minneapolis, MN. It 
is further recommended that ATF conduct a study of the Midwest 
region to analyze the rate of prosecution of firearms 
traffickers relative to personnel time allocated to the YCGII, 
and compare this performance with that of other jurisdictions. 
This effort can only enhance the statistics so industriously 
collected by ATF by measuring the impact of enforcement and 
intervention on those who consistently provide illegal firearms 
to the youth of our Nation.
    In addition, in determining the new locations in which to 
bring the expansion of the YCGII, the Committee requests that 
the Bureau of Alcohol, Tobacco and Firearms give strong 
consideration to Aurora, CO, Denver, CO, and Omaha, NE.

 Study of Respiratory Hazards and the Carcinogenic Effects related to 
               Fire Service Suppression and Investigation

    The Committee is concerned about the respiratory hazards 
faced by firefighters, fire investigators, certified fire 
investigators, and special agents currently enrolled in the 
Certified Fire Investigators Program with the Bureau of 
Alcohol, Tobacco and Firearms and the carcinogenic effects 
related to fire service suppression and investigation. ATF's 
vested interest in its arson mission requires consideration of 
these risks in order to determine what precautions should be 
taken and what training would be necessary to ensure proper 
protection of firefighters, fire investigators, and special 
agents.
    Many nationwide studies have identified fire hazards and 
documented associated health risks and medical problems. All of 
the studies have expressed the need for further research to 
link the relationship between the defined hazards and cancer.
    The Committee recommends that the Secretary of the Treasury 
conduct a survey through a competitive process to locate a 
medical center and university that would dedicate a research 
study to address this vital issue. This Committee acknowledges 
the fine and dedicated work in epidemiological cancer research 
of the Sinai Samaritan Medical Center, Milwaukee, WI, and the 
University of Colorado, Health Sciences Department, Boulder, 
CO, in collaboration with the National Jewish Hospital in 
Denver, CO.

           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, where an item is used as collateral 
to secure a loan, the Committee understands that a NICS check 
will be required at the time the owner attempts to redeem the 
item used as collateral to secure a loan, rather than at the 
time the item is originally offered as collateral.
    Where an item is used as collateral to secure a loan, the 
Committee directs the BATF to provide direction to the FBI 
about how to provide relief from imposition of these fees. The 
Committee also strongly urges the BATF to permit a NICS check 
on these items at the time they are offered 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 60 days to offer its 
recommendation on how to provide such relief.

                 LABORATORY FACILITIES AND HEADQUARTERS

Appropriations, 1998....................................     $55,022,000
Budget estimate, 1999...................................      32,000,000
Committee recommendation................................................

    The Committee does not recommend funding for the relocation 
of the ATF headquarters.
    The Committee recognizes the ATF need for a more secure 
location for its headquarters. Unfortunately, fiscal 
constraints prevent the Committee from providing this funding 
at this time. The Committee urges ATF to work with the General 
Services Administration to resolve the outstanding issues 
concerning the location of this requirement.

                          U.S. Customs Service

                         salaries and expenses

Appropriations, 1998....................................  $1,522,165,000
Budget estimate, 1999...................................   1,638,065,000
Committee recommendation................................   1,630,273,000

    The Committee recommends an appropriation of $1,630,273,000 
for salaries and expenses of the U.S. Customs Service. This 
amount is $108,108,000 over the fiscal year 1998 level. The 
Committee has included language to delay obligation of 
$28,480,000 until September 30, 1999, for the continuation of 
programs that were funded in fiscal year 1998 in the VCRTF and 
are now requested to be contained in the 1999 ``Salaries and 
expenses'' account.
    The Committee has recommended a funding level which 
includes adjustments for mandatory cost increases, as well as 
funding to maintain current levels. In addition, the Committee 
has included funding for the international child labor 
initiative as well as $4,200,000 for integrity assurance 
measures.
    The U.S. Customs Service is the primary border enforcement 
agency and a major revenue producer. Customs administers and 
enforces the Tariff Act of 1930 and some 400 other provisions 
of laws and regulations of 40 other Federal agencies governing 
international traffic and trade. The mission is multifaceted 
and mandates the Service to:
  --Control, regulate, and facilitate the movement of carriers, 
        persons, and commodities between the United States and 
        other nations;
  --Protect the American consumer and the environment against 
        the introduction of hazardous and noxious products; and 
        protect American industry and the American worker 
        against unfair competition from foreign manufacturers;
  --Assess, collect, and protect the revenue accruing to the 
        United States from duties, taxes, and fees incident to 
        international traffic and trade;
  --Detect, interdict, and/or investigate:
        Smuggling and other illegal practices designed to gain 
            illicit entry into the United States of prohibited 
            articles, narcotics, and other contraband;
        Fraudulent activities calculated to avoid the payment 
            of taxes and fees, or to evade the legal 
            requirements of international traffic and trade;
        Illegal transfers of critical technology to foreign 
            nations for the building of their military systems, 
            thus posing a threat to our national security; and
        Illegal international trafficking in arms, munitions, 
            and currency.

                Antidrug Efforts on the Northern Border

    The Customs Service has taken steps to deploy x-ray 
technology at ports of entry along the Southwest border in its 
effort to enhance inspection of heavily loaded tractor 
trailers. The Customs Service, in a recently released report, 
has determined that this technology is effective in detecting 
illicit narcotics as well as other contraband. The Committee 
recognizes that smuggling is not unique to the Southwest border 
but occurs along the Northern border as well. The Committee 
would like the Customs Service to take smuggling rates along 
the Northern border into consideration when determining the 
location of x-ray systems.

                        Automation Enhancements

    The administration has requested $8,000,000 for Customs 
Service automated commercial environment for fiscal year 1999 
and the Committee has provided full funding.

               Customs Integrity Awareness Program [CIAP]

    The Committee has provided funding to Customs Office of 
Internal Affairs to improve hiring methodologies ensuring that 
applicants are of the highest quality and integrity and improve 
the recruitment process to include the use of written tests, 
suitability assessments, structured interviews, and a 
redesigned employment process. The Committee has provided a 
total of $4,200,000 to carry out this program, of which 
$1,200,000 will be transferred to the Office of the Under 
Secretary of the Treasury in its oversight capacity to assist 
the Customs Service in this effort.

         Staffing and Service Levels at Customs Ports of Entry

    The Committee continues to believe that the services 
provided through the Charleston, WV, Customs office are very 
important to the State of West Virginia and the Nation as a 
whole. For this reason, the Committee expects the Service to 
maintain the level of services provided in fiscal year 1996 
through fiscal year 1999 at this office.
    The Committee continues to believe that the policy of 
providing part-time and temporary inspectors at the Honolulu 
International Airport is an effective way to handle the large 
and increasing volume of passengers arriving and departing this 
very busy airport in Hawaii. The Committee has again included 
$750,000 for part-time and temporary positions in the Honolulu 
Customs District. This action is intended to enhance and not 
supplant current staffing levels. Amounts included in this 
account are sufficient to maintain staffing levels at this 
airport through fiscal year 1999 at the fiscal year 1997 level.
    The Committee expects the Customs Service to ensure that 
staffing levels are sufficient to staff and operate all New 
Mexico border facilities.
    Legitimate, as well as illicit, trade and traffic continue 
to grow in the State of Florida. Customs should give a high 
priority to funding sufficient inspection personnel at ports of 
entry in Florida for fiscal year 1999.
    The Committee understands that increasing trade between 
Canada and the United States may require improvements in 
Customs Service facilities to prevent congestion or backups. 
The Committee directs the Customs Service to continue to 
provide adequate personnel to meet current border crossing 
needs along the Northern border.
    Over the years Customs personnel in smaller States as well 
as rural areas have declined considerably. Problems facing 
these areas have not necessarily declined, and the Committee 
urges Customs, as it reviews its staffing requirements, to 
consider the allocation to smaller States and rural areas with 
particular emphasis on Vermont.

                            Great Falls, MT

    The Committee directs the Customs Service to evaluate the 
staffing levels at the area port at Great Falls, MT, and report 
back to the Senate Committee on Appropriations within 9 months 
after enactment of this act. The study should include current 
full and part-time staffing, the impact of seasonal and long-
term staffing pressures, as well as possible solutions for 
providing adequate staffing to Great Falls. The Customs Service 
may want to consider examining the Postal Service's existing 
authority regarding the hiring of retired employees to relieve 
seasonal staffing pressures.

                               Tecate, CA

    The Committee is aware of concerns about the proposed 
expansion by the U.S. Customs Service and General Services 
Administration of the port of entry [POE] at Tecate, CA. Such 
expansion could impact traffic safety and the environment in 
the back country region of southern San Diego County and force 
a costly $300,000,000 road project on the State of California.
    The Committee has no doubt that the current POE must be 
renovated to: (1) improve inspections for illegal drugs and 
other contraband, (2) eliminate hazardous safety conditions, 
(3) improve administrative facilities, and (4) upgrade water 
supply, wastewater, and storm water facilities.
    To ensure that the increased capacity meets those needs and 
does not negatively impact surrounding communities, the 
Committee directs that of the construction or renovation funds 
provided to the Administrator for improvements at the Tecate 
POE, no funds may be used to provide any additional vehicle 
inspection bays in addition to the existing number of vehicle 
inspection bays, unless an additional bay is needed strictly 
for law enforcement purposes.

              INTERNATIONAL TRADE COMPLIANCE CENTER STUDY

    The Committee instructs the Customs Service to conduct a 
feasibility study on the creation of an international freight 
processing center in McClain County, OK. The Committee expects 
that the study will examine the feasibility of an international 
trade processing center in McClain County as it relates to 
other major trade corridors.

                           child pornography

    The Committee directs the Customs Service to continue 
providing $75,000 of available funds to promote public 
awareness for the child pornography tipline, including ongoing 
efforts to make children aware of the tipline, in fiscal year 
1999. The Committee recommends that the U.S. Customs Service 
continue to coordinate this promotional effort with the 
National Center for Missing and Exploited Children and the U.S. 
Postal Service to ensure that the publicity is diversified and 
effective.
    The Committee fully supports Customs' work in battling 
child pornography and is impressed with the successes Customs 
has had given the limited resources. The Committee, therefore, 
directs Customs to double the full-time equivalent staffing 
resources for the cybersmuggling of child pornography.

                             Project ALERT

    The Committee instructs the Customs Service to provide no 
less than $200,000 to the National Center for Missing and 
Exploited Children for the training of retired law enforcement 
officers to assist in the investigation of unsolved missing 
children cases nationwide. The Committee anticipates that these 
funds will be in addition to other funds available to the 
center for these purposes.

                      DRUG INTERDICTION OPERATIONS

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

              Vehicle Container Inspection Systems [VACIS]

    The Committee continues to support Customs' effort to 
utilize technology as an effective tool to carry out its drug 
interdiction responsibilities particularly given resource 
constraints. One successful example of this is the vehicle and 
container inspection systems [VACIS], which uses highly 
penetrative gamma rays to nonintrusively inspect freight. The 
Committee recommends that Customs consider the use of this 
technology for the inspection of railway cars.

                      Pulsed Fast Neutron Analysis

    The Committee understands there may be benefits to the 
pulsed fast neutron analysis [PFNA] nonintrusive inspection 
system. The Committee believes that technology plays an 
important role in counterdrug activities and understands the 
potential value that technologies such as this have for 
increasing the effectiveness of law enforcement. Although this 
technology shows promise, it has not yet developed beyond the 
testing stage and, therefore, is not available for full-scale 
deployment and operational use by agencies. Therefore, the 
Committee directs that the Commissioner of Customs enter into 
negotiations with the private sector to conduct a field test of 
this technology which shall be conducted at no cost to the 
Federal Government. The General Accounting Office is directed 
to submit a report on this field test and how the technology 
compares to existing nonintrusive inspection technologies. The 
GAO shall consult with the Senate Appropriations Committee on 
the parameters of this audit.

                         Preclearance of Trains

    The Committee encourages the Blaine, WA, Area Port Director 
to continue current onboard clearance procedures for Amtrak 
passengers traveling inbound from Vancouver, BC, to the United 
States, provided that Amtrak does not substantially change the 
configuration of cars, the current baggage-handling procedures, 
or existing train schedule. In addition, the Committee 
encourages the Blaine, WA, Area Port Director and Amtrak to 
work together in the future as Amtrak implements expanded 
service.

                       Vermont World Trade Office

    The Committee understands that the Vermont World Trade 
Office has been overwhelmed by requests from companies 
interested in exploring opportunities. To meet that demand and 
to make the office more convenient to Vermont businesses, the 
Committee provides $500,000 to expand World Trade Office 
services.

    operation and maintenance, air and marine interdiction programs

Appropriations, 1998....................................     $92,758,000
Budget estimate, 1999...................................      98,488,000
Committee recommendation................................      98,488,000

    The Committee recommends an appropriation of $98,488,000 
for operation and maintenance activities of the Customs air and 
marine interdiction programs. This amount equals the budget 
request. The Committee has included language to delay 
obligation of $20,100,000 for the operation and maintenance of 
marine vessels, aircraft, and other related equipment of the 
air and marine programs.
    The operation and maintenance, air and marine interdiction 
programs will cover expenses incurred by the Customs Service 
for operating and maintaining aircraft, boats, radar, and 
equipment necessary to carry out its air and marine 
interdiction missions. This account also includes operational 
training, mission-related travel, and special operations 
directly associated with the air and marine interdiction 
programs. This account covers the essential costs associated 
with operating and maintaining the military aircraft and 
equipment that has been, and will continue to be, loaned to 
Customs for use in its air interdiction mission.
    The Customs Service is the frontline in drug interdiction. 
The air and marine efforts compose a major element of the 
country's firstline interdiction effort. In recent years the 
strategy has changed, but the problem remains the same. The 
Committee has iterated over and over how important air and 
marine efforts are to deterring narcotics smuggling. These 
efforts have proven extremely effective. The change in the drug 
control strategy does not eliminate the need for continued 
vigilance.

                       Drug Interceptor Aircraft

    The Committee remains concerned about the Customs Service's 
drug interceptor aircraft fleet and their effectiveness. The 
Committee directs the Customs Service to provide a report by 
March 1, 1999, on the cost effectiveness of repair as well as 
the potential benefits of transferring any retired interceptor 
aircraft to source and transshipment countries.

                     Long-Range Blue Water Vessels

    The Committee recognizes the importance of the long-range 
blue water vessels as an operational component of Customs' 
marine interdiction strategy. The Committee understands the 
difficult choices the Customs Service has had to make with 
regard to the marine interdiction program given current 
budgetary constraints, and applauds its continued successes in 
spite of current funding conditions. The Committee urges the 
Customs Service to continue to operate and maintain its fleet 
at a level which is safe for its agents.

                   harbor maintenance fee collection

Appropriations, 1998....................................      $3,000,000
Budget estimate, 1999...................................       3,000,000
Committee recommendation................................       3,000,000

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

                               U.S. Mint

    The Mint manufactures coins, receives gold and silver 
bullion, safeguards the Government's holdings of monetary 
metals, and refines gold and silver bullion. The manufacture of 
domestic coins is the major activity of the Mint. Coins are 
ordered from the Mint by the Federal Reserve banks in 
quantities required for the country's business transactions. 
Thus, the volume of the coinage program is determined by the 
public need for coins.
    Public Law 104-52 established the U.S. Mint public 
enterprise fund which authorizes the U.S. Mint to use proceeds 
from the sale of coins to finance the cost of its operations. 
The enactment of this legislation has eliminated the need for 
future appropriations to support the mission of the Mint.

                        Delay in Pay Adjustment

    The Committee expects the U.S. Mint to implement a policy 
for pay adjustments for their police officers so that in the 
future when pay adjustments are required there will be no delay 
as has been the case in some previous years. The Committee is 
also aware that the Bureau of Engraving and Printing has 
experienced this problem.

                    Bureau of Engraving and Printing

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

                Distinctive Currency Paper Solicitation

    The Committee believes that the Bureau of Engraving and 
Printing [BEP] and the Treasury Department have taken the steps 
necessary within the law to ensure competition in the 
procurement of distinctive currency paper with the issuance of 
Solicitation No. BEP-97-13 [TN] seeking bidders for a 4-year 
contract. Therefore, the Committee directs the BEP and the 
Department of the Treasury to award the contract which will 
permit an uninterrupted source of currency paper upon the 
expiration of the contract for Solicitation 97-10 on September 
5, 1999.
    The Committee notes that the current law governing the 
procurement of distinctive currency paper requires open 
competition and thus allows for competition by a U.S. paper 
company which wishes to invest in this specialty paper 
business. Nevertheless, the Committee recognizes and commends 
the BEP for the considerable efforts it has put forth to 
enhance the already open competition process.
    While commending the BEP for its efforts, the Committee 
cautions the BEP that in its efforts to obtain competition, it 
should not increase the overall costs to the Government, 
threaten the supply of currency paper, or reduce the present 
paper standards on quality. Further, the BEP should not 
entertain ideas of subsidies or financial incentives which have 
the effect of favoring one vendor over another, or artificially 
creating excess currency production capacity. In the long run 
such measures are likely to increase the Government's cost of 
acquiring paper.

                              Dollar Note

    The Committee directs BEP to ensure that any redesign of 
the $1 note only include minor modifications to assist the 
visually impaired community. The introduction of this design is 
to begin no later than January 1, 2000.

                       Bureau of the Public Debt

                     administering the public debt

Appropriations, 1998....................................    $169,426,000
Budget estimate, 1999...................................     173,100,000
Committee recommendation................................     172,100,000

    The Committee recommends an appropriation of $172,100,000 
for the Bureau of the Public Debt in fiscal year 1999. The 
Committee recommendation is $1,000,000 less than the budget 
estimate. The Committee notes that the administration's request 
includes $1,000,000 for year 2000 conversion costs. The 
Committee has provided an additional emergency appropriation to 
address these costs.
    The Bureau of the Public Debt is responsible for 
administering the laws and regulations pertaining to public 
debt financing and operations within the framework of policies 
established by the Secretary of the Treasury. The Bureau's 
primary concerns are with the issuance, servicing, and 
retirement of public debt securities, and accounting for the 
public debt and its related interest cost. It also has a 
general responsibility for the conduct or direction of 
transactions in public issues of those Government agencies for 
which the Treasury acts as agent.
    This appropriation currently provides funds for: the direct 
operating costs of the Bureau of the Public Debt including the 
Office of U.S. Savings Bonds; the payment of fees at stipulated 
rates to financial institutions and others; and the payment of 
postage and registry fees to the U.S. Postal Service for 
delivering securities.
    The Office of U.S. Savings Bonds is charged with reducing 
Federal spending by promoting the sale and retention of U.S. 
savings bonds. In addition to helping the U.S. Government 
finance its debts in the least expensive and least inflationary 
way possible, savings bonds provide Americans with an 
effective, systematic way to save through the payroll savings 
plan. The program is also intended to create a partnership of 
direct participation of American business, labor, banking, 
media, and community groups, as well as to provide the 
opportunity for all citizens to voluntarily participate in the 
financing of their Government.

                        Internal Revenue Service

                                summary

    The Committee has recommended a total of $7,851,807,000 for 
the Internal Revenue Service [IRS] in fiscal year 1999. This 
amount is $487,046,000 below the budget estimate and 
$109,954,000 above the fiscal year 1998 enacted level.

                INTERNAL REVENUE SERVICE REORGANIZATION

    The Committee is pleased that the Department of the 
Treasury and the Internal Revenue Service are taking 
congressional concerns seriously. Efforts by the Secretary of 
the Treasury to incorporate much needed changes into the 
collection of revenues through the appointment of a 
Commissioner with strong management and organizational skills 
are to be praised.
    Equally praised is the Commissioner's announcement of a 
reorganization of the IRS. The impending organizational 
modernization and reorganization is critically important to the 
future of the Internal Revenue Service. The development of an 
agency that can collect owed taxes while providing taxpayers 
fair and equitable services should be the norm; however, it has 
not been the system taxpayers have experienced. Developing an 
organization around taxpayer lines of business, expanding 
telephone and office hours, offering taxpayers services at more 
convenient locations, and improving the IRS's ability to track 
complaints should provide taxpayers timely and accurate answers 
to their questions and concerns. The expansion of electronic 
filing options by offering more electronic forms, expanding 
telefile, and the introduction of new electronic payment 
options should result in an IRS that provides quicker, error 
free transactions.
    The Committee fully supports the use of available resources 
to independently assess the modernization concept, define the 
organization architecture, and develop detailed organization, 
implementation, and sequencing plans.

                 Electronic Tax Administration Programs

    The Committee continues to believe that electronic tax 
filing will benefit taxpayers while at the same time reduce 
processing costs for the Internal Revenue Service. The 
Committee has included a provision to authorize the Secretary 
of the Treasury to encourage the use of electronic tax 
administration programs. However, the Committee feels very 
strongly that all such electronic transmissions must be secure 
and that the privacy of taxpayer information should be fully 
protected. Therefore, the Committee has included a provision 
requiring the IRS to provide for such security.
    In addition, the Secretary of the Treasury is authorized to 
allow the payment of incentives to commercial entities for 
providing such electronic filing services, provided that the 
service is provided without charge to the taxpayer.

                           Taxpayer Education

    A major challenge facing the IRS is the lack of basic 
understanding among our citizens about the Internal Revenue 
Service, not to mention the Tax Code itself. There should be a 
way to educate people, starting at the most fundamental levels, 
on the history of our system of taxation as well as how the IRS 
Code was created, how it is amended, and citizens' rights and 
responsibilities. A good place to start this education effort 
is with our children.
    The Committee believes that the IRS could do more to 
educate taxpayers, and future taxpayers, of this country. 
Therefore, the Committee recommends that the IRS consider 
establishing a national taxpayer education initiative. IRS 
employees--such as tax auditors and revenue agents--could be 
encouraged to visit schools to talk about the history of our 
tax system as well as taxpayers rights and responsibilities, 
much like local police and firemen who currently give talks at 
schools.
    Therefore, the Committee requests that the IRS study the 
feasibility of such an initiative and provide an analysis to 
the Committee by March 1, 1999.

                 processing, assistance, and management

Appropriations, 1998....................................  $2,925,874,000
Budget estimate, 1999...................................   3,162,430,000
Committee recommendation................................   3,077,353,000

    The Committee recommends an appropriation of $3,077,353,000 
for processing, tax assistance, and management. This amount is 
$151,479,000 above the fiscal year 1998 level. The Committee 
recommends $90,650,000 for adjustments for mandatory cost 
increases and $18,145,000 for the IRS customer service 
initiative. The Committee agrees to the administration's 
request to transfer $70,279,000 from the ``Tax law 
enforcement'' account, but does not recommend the transfer of 
funds from the ``Information systems'' account. The Committee 
has included language to delay obligation of $105,000,000 for 
the payment of postage rates to the U.S. Postal Service, but 
the Committee reminds the IRS that they have an obligation to 
pay these costs and authority under current law to do so out of 
available funds.
    The ``Processing, assistance, and management'' 
appropriation provides for processing tax returns and related 
documents; assisting taxpayers in filing of their returns and 
in paying taxes that are due; matching information returns with 
tax returns; internal audit and internal security; and 
management of financial resources, rent, and utilities.
    Mission statements of each of the program activities under 
this account are as follows:
    Submission processing.--Provide for all actions associated 
with receipt of completed returns and payments, deposit of 
those payments, processing and accounting for revenue 
collections and Federal Tax Deposits, and verification of the 
accuracy of information provided by the taxpayer through an 
automated master file system. Provide for payment of refunds, 
offset of refunds against delinquent accounts, issuance of 
notices that payments are overdue, identification of possible 
nonfilers for investigation, and assistance in the selection of 
tax returns for audit.
    Telephone and correspondence.--Aid voluntary compliance 
with Federal tax laws by informing taxpayers of their 
responsibilities and by providing services and information 
through various media which assist them in meeting their 
obligations. Provide for responding to inquiries concerning tax 
laws, IRS bills and notices, and resolving tax account 
problems.
    Document matching.--Process information returns, such as 
wage, dividend, and interest statements and matches them with 
related individual income tax returns. This enables the Service 
to identify income reporting discrepancies, unsubstantiated 
deductions, and nonfiling of tax returns and to verify facts 
and amounts in question through taxpayer contact prior to 
assessing additional tax or refunding excess credits.
    Inspection.--Protect public confidence in the integrity of 
the IRS. Internal audit independently reviews service programs 
at the national, regional, and local levels to ensure that laws 
and regulations are being followed, that management and 
financial internal controls are in place, that programs and 
major ADP systems are functioning effectively and efficiently, 
and that appropriated funds are spent as authorized. Internal 
security conducts background investigations to maintain the 
integrity of the IRS work force against fraud and drug abuse 
and protect the Service against outside attempts to bribe, 
intimidate, or harass its employees.
    Management services.--Set policies and goals, provide 
leadership and direction for the Service, and provide 
servicewide policy guidance for managing contract 
administration and procurement programs, conducting strategic 
and organizational planning, and developing and managing the 
human, logistical, and financial resources required to fulfill 
the Service's mission in performing tax administration. Also 
provides all administrative services for IRS national office 
and field installations.
    Rent and utilities.--Provide rent and utilities for the 
entire Service.

                           IRS Staffing Plans

    The Committee continues to support adequate staffing levels 
for effective tax administration and supports the staffing 
plans for the Internal Revenue Service facilities in the 
communities of Martinsburg and Beckley, WV. Therefore, the 
Committee urges the IRS, within the constraints of the fiscal 
year 1999 funding levels, to make only minimal, if any, 
staffing reductions at the Martinsburg National Computer Center 
and the programmed level at the Administrative Services Center 
in Beckley, WV.

                     tax counseling for the elderly

    The Committee once again believes that the Tax Counseling 
Program for the Elderly has proven to be most successful. To 
meet the goals of this program, $3,700,000 is included within 
the aggregate amount recommended by the Committee for 
processing tax returns and assistance in fiscal year 1999. This 
amount represents the same level as provided for this program 
since fiscal year 1994. To ensure that the full effect of the 
program is accomplished, the IRS is directed to cover 
administrative expenses within existing funds.

                 Taxpayer Services in Alaska and Hawaii

    Given the remote distance of Alaska and Hawaii from the 
U.S. mainland, the many tax compliance issues unique to the 
communities and geography in these States, and the difficulty 
in receiving needed assistance by the national toll-free line, 
the Committee believes that the Internal Revenue Service should 
maintain a problem resolution specialist position, current 
problem resolution positions assisting the problem resolution 
officer and associate problem resolution officers, and tax 
examination personnel of appropriate number and grade within 
each of the States of Alaska and Hawaii.

                          tax law enforcement

Appropriations, 1998....................................  $3,142,822,000
Budget estimate, 1999...................................   3,169,539,000
Committee recommendation................................   3,164,399,000

    The Committee recommends an appropriation of $3,164,399,000 
for tax law enforcement activities in fiscal year 1999. This 
amount is $21,577,000 above the fiscal year 1998 level. The 
Committee recommends $107,892,000 for adjustments for mandatory 
cost increases and $210,000 for the customer service 
initiative. The Committee has included language to delay 
obligation of $175,000,000.
    The ``Tax law enforcement'' appropriation provides for the 
examination of tax returns, both domestic and international, 
and the administrative and judicial settlement of taxpayer 
appeals of examination findings. It also provides for technical 
rulings, monitoring employee pension plans, determining 
qualifications of organizations seeking tax-exempt status, 
examining tax returns of exempt organizations, enforcing 
statutes relating to detection and investigation of criminal 
violations of the internal revenue laws, collecting unpaid 
accounts, compiling statistics of income and compliance 
research, and securing unfiled tax returns and payments.
    Criminal investigations.--Provides for enforcement of 
criminal statutes relating to violations of internal revenue 
laws. Investigates cases of suspected intent to defraud, 
recommends prosecution as warranted, and assists in the 
preparation and trial of criminal tax cases. Financial 
investigations expose money laundering schemes through a 
variety of methods, including currency transaction reports.
    Examination.--Encourages voluntary compliance with the 
internal revenue laws through the determination of correct tax 
liability by the selective examination of tax returns, the 
correction of errors, and explanation of these corrections to 
taxpayers. The appeals portion of this activity provides 
staffing, training, and direct support to allow for an 
administrative review process that provides a channel for 
impartial case settlement prior to cases being docketed in a 
court of law.
    Collection.--Collects unpaid accounts and secures 
delinquent returns; develops and implements programs to prevent 
tax accounts from becoming delinquent; determines and analyzes 
reasons for tax accounts that become delinquent; and develops, 
implements, and measures programs that analyze the reasons for 
types and degrees of nonfiling.
    Employee plans and exempt organizations.--Monitors private 
pension plans to ensure compliance with the Employee Retirement 
Income Security Act of 1974, as amended. Organizations apply 
for tax-exempt status, which is determined by this activity, 
through the application of certain tests. By examining tax 
returns of tax-exempt organizations, it monitors and ensures 
compliance with current tax laws regarding tax-exempt 
organizations.
    Statistics of income.--Publishes statistics of income 
reports on the operation of income tax laws, as required by the 
Internal Revenue Code for the Congress and its committees; for 
administrative use by the Secretary of the Treasury and the 
Commissioner of Internal Revenue; and for the Federal benchmark 
statistical programs on income, wealth, and finance.

                          Taxpayer Protection

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

                            Transfer Pricing

    The Committee is concerned about the Nation's loss of 
revenue as a result of foreign corporations employing transfer 
pricing. Transfer pricing, utilized by State trading 
enterprises, reallocates items of income and deduction among 
entities under common control. Reallocation of the income and 
deduction results in minimizing the U.S. tax of foreign 
corporation's U.S. affiliates. Since the foreign parent 
corporations do not normally do business in the United States, 
their income is completely free from U.S. tax.
    To ensure the Internal Revenue Service is vigorously 
administrating section 482 of the Internal Revenue Code which 
empowers the Secretary of the Treasury to distribute, 
apportion, and allocate items of gross income deduction between 
the parent corporations and their U.S. affiliates, the 
Committee directs the Internal Revenue Service to review and 
report to Congress no later than 6 months after enactment of 
this bill on the following issues: IRS's loss of revenue as a 
result of transfer pricing; detailed information on IRS's 
administration of section 482 to distribute, apportion, and 
allocate items of gross income and deduction; and 
recommendations on how to improve the collection of revenue 
from trading enterprises.

               Tax Standards for Tax-Exempt Health Clubs

    The Committee is aware there has been significant growth in 
health club and fitness services. Intensified competition has 
developed a market for profit- and tax-exempt health clubs. 
With certain tax-exempt organizations moving away from their 
core purpose, questions arise as to whether they are engaging 
in commercial competition with the for-profit sector. For 
clarification on these issues, the Committee requests that the 
IRS review the legal standards and precedential decisions the 
IRS utilizes in determining when fitness services and 
activities of tax-exempt organizations should be subject to 
unrelated business income tax. The Committee further requests 
that the Department of the Treasury report to Congress by April 
1, 1999, on the statutory and regulatory changes that may be 
required to assure that tax-exempt health clubs are not 
unfairly competing against private sector organizations.

                        earned income tax credit

Appropriations, 1998....................................    $134,000,000
Budget estimate, 1999...................................     143,000,000
Committee recommendation................................     143,000,000

    The Committee recommends an appropriation of $143,000,000, 
which is equal to the budget request.
    This appropriation provides for expanded customer service 
and public outreach programs, strengthened enforcement 
activities, and enhanced research efforts to reduce overclaims 
and erroneous filing associated with the earned income tax 
credit [EITC].
    Expanded customer service includes dedicated, toll-free 
telephone assistance, increased community-based tax preparation 
sites, and a coordinated marketing and educational effort 
(including paid advertising and direct mailings) to assist low-
income taxpayers in determining their eligibility for EITC. 
Improved compliance includes increased staff and systemic 
improvements in submissions processing, examination, and 
criminal investigation programs. In returns processing, new 
procedures include expanded use of math error authority and the 
identification of EITC-based refund claims involving invalid or 
duplicate primary, secondary, and dependent tax identification 
numbers [TIN's]. Increased examination coverage, prior to 
issuance of refunds, reduces overpayment and encourages 
compliance in subsequent filing periods. In addition, 
postrefund correspondence audits by service center staff aids 
in the recovery of erroneous refunds. Criminal investigation 
activities target individuals and practitioners involved in 
fraudulent refund schemes and generate referrals of suspicious 
returns for followup examination. Examination staff, assigned 
to district offices, audit return preparers and may apply 
penalties for noncompliance with due diligence requirements.
    Enhanced research activities and projects focus on EITC 
claimant characteristics and patterns of noncompliance and are 
designed to improve education and outreach products, strengthen 
IRS abuse detection capabilities, and measure the effects of 
servicewide programs on compliance levels for the EITC-eligible 
taxpayer population. This appropriation also funds the 
development of specialized research data bases and masterfile 
updates, reimbursement to the Social Security Administration 
[SSA] for enhancements to the SSA numbering systems, and 
cooperative efforts with State vital statistics offices.

                          information systems

Appropriations, 1998....................................  $1,272,487,000
Budget estimate, 1999...................................   1,540,884,000
Committee recommendation................................   1,329,486,000

    The Committee recommends an appropriation of $1,329,486,000 
for information systems activities in fiscal year 1999. The 
Committee recommends $43,939,000 for adjustments for mandatory 
cost increases and $42,030,000 for the customer service 
initiative. The Committee also recommends that $33,300,000 be 
allocated for examination laptops. The Committee has included 
language to delay obligation of $68,700,000 requested for the 
modernization program infrastructure. The Committee notes that 
the administration's request includes $234,000,000 for year 
2000 conversion costs. The Committee has provided an additional 
emergency appropriation to address these costs.
    The ``Information systems'' appropriation provides for 
servicewide data processing support, including the evaluation, 
development, and implementation of computer systems, including 
software and hardware requirements.
    Operational information systems.--Provides for servicewide 
automation support for the processing, assistance and 
management, and tax law enforcement appropriations. This 
activity also includes those tax system modernization projects 
that have advanced from the developmental phase to an 
operational mode after servicewide implementation and 
acceptance.
    Developmental information systems.--Provides for major 
redesign and acquisition of the basic information systems 
infrastructure needed to achieve a fully integrated framework 
for tax administration operations. This includes implementing a 
redesigned tax administration system, developing a target 
architecture, replacing equipment at major field installations, 
and executing other major redesign efforts.

                      SERVICE CENTER CONSOLIDATION

    The Internal Revenue Service has computer systems 
supporting the revenue processing requirements at 10 separate 
service centers. To reduce costs, streamline operations, and 
improve services, the IRS proposed centralizing and upgrading 
the centers through a consolidation of the processing systems. 
The consolidation ensures the IRS processing systems are year 
2000 compliant, cost effective, efficient, and adaptable to tax 
systems modernization initiatives of the future. The Committee 
supports this plan and encouraged the IRS to proceed with this 
effort to achieve cost savings included in the fiscal year 1999 
budget estimates. The Committee also encouraged the IRS to 
pursue this effort as a model for future projects by producing 
a much needed information technology success.
    The consolidation project, started in July 1997, was 
estimated to have a life cycle cost of $321,000,000 and was 
scheduled to be completed within 17 months (December 1998). 
Recently, the Committee was informed that the estimated cost 
could increase 12 percent ($321,000,000 plus $37,800,000) and 
will be delayed for an additional 10 months (October 1999). 
According to the IRS, the revised schedule will reduce filing 
season risk in 1998 through 2000, will minimize impacts on year 
2000 requirements, and will allow the service centers to 
provide a higher level of performance and responsiveness 
regarding disaster recovery. While the Committee supports these 
changes, the IRS's ability to estimate costs, to calculate 
schedules, to meet milestones, or to manage contracts connected 
with information technology efforts is questioned. As a result, 
the Committee directs the IRS to provide monthly reports to the 
Treasury Department's Chief Information Officer and quarterly 
reports to the Senate Committee on Appropriations on the 
consolidation effort. In addition, the Committee expects the 
IRS to fund the completion as a performance-based project by 
absorbing fiscal year 1999 costs and any potential cost 
overruns.
    However, the Committee believes the most important effort 
the IRS must make is to provide fair and equitable treatment of 
taxpayers. As a result, the Committee requests the IRS: (1) 
review all penalties to determine fairness, effectiveness, and 
consistency of application, (2) reevaluate all performance 
measures and report to the Senate Committee on Appropriation on 
the standards to benchmark employee performance, and (3) review 
existing rules regarding taxpayer privacy to ensure that it is 
providing the highest standards of taxpayer protection.

                   Information Technology Investments

Appropriations, 1998....................................    $294,670,000
Budget estimate, 1999...................................     323,000,000
Committee recommendation................................     137,569,000

    The Committee has provided $137,569,000 for future computer 
systems modernization efforts. This is in addition to the 
$294,670,000 which is currently in this account. The Committee 
supports wholeheartedly the concept of the IRS modernization, 
but believes much more work needs to be done before any 
computer systems procurement can actually commence.
    The Committee is encouraged by the management change within 
the IRS and believes that the agency has made significant 
progress in developing a plan for modernization of the tax 
processing systems. However, the Committee continues to be 
concerned that the IRS does not have the adequate management 
systems in place to invest in a modernization of the 
information technology systems at this time. To ensure that 
funding provided for this effort is spent efficiently, the 
Committee directs that the fiscal year 1998 funding 
restrictions be continued including: (1) none of the funds may 
be obligated until the IRS and the Department of the Treasury 
submit to Congress a plan for expenditure that implements a GAO 
approved modernization blueprint, (2) the plan must meet the 
information system investment guidelines established by OMB; 
and (3) the plan must be reviewed and approved by the IRS 
Investment Review Board, the Treasury Investment Review Board 
and the Office of Management and Budget. In addition, funds may 
not be obligated until the IRS: (1) demonstrates how it has 
corrected its documented technical management weaknesses, (2) 
shows that it has followed its systems life cycle processes, 
and (3) reorganizes its organization around business lines and 
a management team for the new structure is in place.
    The Committee strongly supports the new Commissioner's 
vision on how to solve many of the IRS' most vexing problems. 
As the Service moves toward the selection of a prime contractor 
team for its systems modernization effort, the Committee 
strongly encourages the IRS to coordinate with the prime 
contractor on its business and technology challenges.

                     IRS--administrative provisions

    The Committee has recommended approval of the following 
administrative provisions for the Internal Revenue Service:
    Section 101 continues a provision which authorizes the IRS 
to transfer up to 5 percent of any appropriation made available 
to the agency in fiscal year 1998, to any other IRS account. 
The IRS is directed to follow the Committee's reprogramming 
procedures outlined earlier in this report.
    Section 102 continues a provision which maintains a 
training program in taxpayer's rights and cross-cultural 
relations.
    Section 103 continues a provision which requires the IRS to 
maintain taxpayer services at not less than 1995 levels.
    Section 104 continues a provision which prohibits the 
expenditure of funds for the collection of taxes unless the 
conduct of officers and employees of the IRS complies with the 
Fair Debt Collection Practices Act.
    Section 105 continues a provision which requires the IRS to 
institute and enforce policies and procedures which will 
safeguard the confidentiality of taxpayer information.
    Section 106 continues a provision which directs that funds 
shall be available for improved facilities and increased 
manpower to provide sufficient and effective 1-800 telephone 
assistance and that the Commissioner shall continue to make 
this a priority.
    Section 107 continues a provision which provides that no 
reorganization of the field office structure of the Internal 
Revenue Service Criminal Investigation Division will result in 
a reduction of criminal investigators in Wisconsin and South 
Dakota from the 1996 level.

                          U.S. Secret Service

                         salaries and expenses

Appropriations, 1998....................................    $564,348,000
Budget estimate, 1999...................................     594,657,000
Committee recommendation................................     584,902,000

    The Committee recommends an appropriation of $584,902,000 
for the U.S. Secret Service in fiscal year 1999. This amount is 
$20,554,000 above the fiscal year 1998 enacted level. The 
Committee recommends $19,552,000 for adjustments for mandatory 
cost increases. The Committee has provided an additional 
$13,000,000 for the fiscal year 1999 protective travel activity 
and directs the Secret Service to develop a more appropriate 
method of predicting future needs. The Committee has included 
language to delay obligation of $7,860,000 for White House 
security costs. The Committee notes that the administration's 
request includes $3,000,000 for year 2000 conversion costs. The 
Committee has provided an additional emergency appropriation to 
address these costs.
    The Committee has included funding for counterfeit 
investigations ($5,000,000) and the 2000 candidate and nominee 
protection program ($7,732,000) under the VCRTF.

                        secret service functions

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

                     Treasury Communications System

    The Committee notes that the Secret Service is completing 
its transition to the Treasury communications system, which 
began in fiscal year 1997. The TCS provides a number of added 
services over the previous leased communication system 
including Internet services, telecommuting services, 
videoconferencing, and electronic commerce transactions. In 
addition, TCS is more resistant to interruption because of 
built-in redundancies, or backup systems, as well as being 
fully encrypted to National Security Agency [NSA] standards. 
The Committee has provided a total of $6,500,000 for the final 
phase of the transition, $2,800,000 as part of the salaries and 
expenses base plus $3,700,000 out of the Treasury forfeiture 
fund.

                     Missing and Exploited Children

    The Committee has included $2,671,000 in the violent crime 
reduction trust fund for the Service's operation costs of the 
exploited child unit, associated with its continued efforts 
with the National Center for Missing and Exploited Children, 
including $671,000 for activities related to investigations of 
exploited children.

                       Armored Primary Limousines

    The Committee understands the need to provide the President 
of the United States safe and secure ground transportation both 
locally and around the world. These vehicles, built from the 
ground up, take about 4 years to complete and due to the weight 
have only a 10-year life cycle. The Committee is, however, 
concerned with the Secret Service's projected cost to acquire 
four primary limousines for this purpose. As a result, the 
Committee directs the Secret Service to delay obligation of 
$6,000,000 until September 30, 1999, in order to complete a 
review of the costs associated with this acquisition. The 
Service shall provide the Committee a report on the major 
differences between the proposed project and the two armored 
limousines previously acquired by the Service.

      acquisition, construction, improvement and related expenses

Appropriations, 1998....................................      $8,799,000
Budget estimate, 1999...................................       6,445,000
Committee recommendation................................       8,068,000

    The Committee recommends an appropriation of $8,068,000 for 
the ``Acquisition, construction, improvement and related 
expenses'' account in fiscal year 1999. The Committee agrees to 
the administration's request to transfer $1,300,000 from the 
``Salaries and expenses'' account for training center 
maintenance. However, the Committee does not recommend the 
transfer of $1,623,000 for fixed site security.

                       DEPARTMENT OF THE TREASURY

                           General Provisions

    The Committee recommends that certain general provisions be 
included in the Senate bill. The provisions do the following:
    Section 110 continues a provision which pertains to 
reprogramming instructions for unobligated funds.
    Section 111 continues a provision which authorizes certain 
basic services within the Treasury Department in fiscal year 
1999, including purchase of uniforms; maintenance, repairs, and 
cleaning; purchase of insurance for official motor vehicles 
operated in foreign countries; and contracts with the 
Department of State for health and medical services to 
employees and their dependents serving in foreign countries.
    Section 112 continues a provision which requires that funds 
provided to ATF for fiscal year 1999 will be expended in such a 
manner so as not to diminish enforcement efforts with respect 
to section 105 of the Federal Alcohol Administration Act.
    Section 113 continues a provision which authorizes 
transfers, up to 2 percent, between law enforcement 
appropriations under certain circumstances.
    Section 114 continues a provision which authorizes 
transfers, up to 2 percent, between Departmental Offices, 
Office of Inspector General, Financial Management Service, and 
the Bureau of the Public Debt appropriations under certain 
circumstances.
    Section 115 authorizes the Secretary of the Treasury to 
encourage the use of electronic filing services. The Secretary 
is further authorized to implement procedures to provide 
incentives to commercial vendors as long as the services are 
provided without charge to the taxpayer. The IRS must assure 
the security of the transmissions and the privacy of taxpayers.
    Section 116 is a new provision that allows the Bureau of 
Engraving and Printing and the Secretary of the Treasury to 
award a contract to provide for the printing of distinctive 
currency paper.
    Section 117 is a new provision regarding execution of 
property upon judgments against foreign state violators of 
international law.

                     TITLE II--U.S. POSTAL SERVICE

                   Payment to the Postal Service Fund

Appropriations, 1998....................................     $86,274,000
Budget estimate, 1999...................................     100,195,000
Committee recommendation................................      71,195,000

    The Committee has recommended an appropriation of 
$71,195,000 in fiscal year 1999 for payment to the Postal 
Service fund. This amount is $29,000,000 less than the 
President's budget request. The Committee has included language 
to delay obligation of $71,195,000 for payment to the Postal 
Service fund.
    Revenue forgone on free and reduced-rate mail enables 
postage rates to be set at levels below the unsubsidized rates 
for certain second-class, third-class, and fourth-class mail as 
authorized by subsections (c) and (d) of section 2401 of title 
39, United States Code. Free mail for the blind and overseas 
voters will continue to be provided at the funding level 
recommended by the Committee.
    The funding provided by the Committee is allocated for free 
mail for the blind and overseas voters.
    The Committee recognizes the congressional obligation to 
reimburse the Postal Service for past services provided under 
the revenue forgone program. Unfortunately, budget limitations 
force the Committee not to fund, at this time, the revenue 
forgone reimbursement of $29,000,000 authorized under 39 U.S.C. 
2401(d), and requested in the fiscal year 1999 budget. Although 
the Committee is currently unable to provide any resources for 
this installment, the Committee continues to recognize the 
congressional intent to reimburse the Postal Service for these 
expenses.
    The Committee includes provisions in the bill that would 
assure that mail for overseas voting and mail for the blind 
shall continue to be free; that 6-day delivery and rural 
delivery of mail shall continue at the 1983 level; and that 
none of the funds provided be used to consolidate or close 
small rural and other small post offices in fiscal year 1999. 
These are services that must be maintained in fiscal year 1999 
and beyond. The Committee believes that, despite the lack of 
public service appropriations, these critical postal services 
are the linchpin of services that the public deserves and 
expects.

                           Pest Introductions

    The Committee is concerned that recent introductions of 
plant and animal pests and diseases into Hawaii may have 
occurred through the U.S. postal system. Such introductions 
have severe consequences for U.S. agriculture, biodiversity, 
and public health and safety. The U.S. Postal Service is 
directed to work with the U.S. Department of Agriculture and 
the Hawaii Department of Agriculture to devise and implement a 
program to combat pest introductions.

                                Auto Day

    The Committee agrees with the recent decision of the Postal 
Service to discontinue its Auto Day Advertising Mail Program. 
The Committee urges the Postal Service to not 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.

                    Nonpostal Commercial Activities

    The Committee is aware that the Postal Service is 
initiating a wide range of new commercial activities. These 
activities include volume retail photocopying, packaging 
services, bankwire services, and the sale of office supplies or 
novelty items.
    The Committee recognizes the Postal Service's need to 
generate new sources of revenue to offset its operating costs. 
However, many of the Postal Service's new commercial activities 
may result in competition to a number of private sector 
enterprises, thus raising significant policy issues about the 
Postal Service's present and future commercial role.
    Therefore, the Committee requests the Postal Service to 
submit to the Senate Appropriations Committee within 6 months 
of enactment of this act a report on its ongoing and planned 
commercial services, including the policy justifications, the 
costs of development and implementation, revenues earned, and 
revenues lost. The Committee believes these issues deserve 
consideration by the authorizing committees.

                     Nonprofit Standard Mail Rates

    The Committee is aware that 501(c)(3) entities are entitled 
to use nonprofit standard mail rates for mailings that are 
substantially related to the primary purpose of the nonprofit 
entity. Where the primary purpose behind the production and 
sale of an item is to further the organization's exempt purpose 
and is substantially related to that purpose, the Committee 
believes the Postal Service should view that item as qualifying 
for the nonprofit standard mail rate even if the item otherwise 
has a utilitarian function or value.

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

                                Summary

    The President's fiscal year 1999 budget request for 14 
accounts funded under this title totals $631,251,000. This 
amount is $62,326,000 above the total fiscal year 1998 
appropriations.
    These 14 accounts include: Compensation of the President, 
Office of Administration, the White House Office, the Executive 
Residence at the White House, the Official Residence of the 
Vice President, Special Assistance to the President, the 
Council of Economic Advisers, the Office of Policy Development, 
the National Security Council, the Office of Administration, 
the Office of Management and Budget, the Office of National 
Drug Control Policy, high-intensity drug trafficking areas, and 
unanticipated needs.
    In addition, $3,250,000,000 has been included for a new 
account entitled ``Information Technology and Related 
Expenses.''

                     compensation of the president

Appropriations, 1998....................................        $250,000
Budget estimate, 1999...................................         250,000
Committee recommendation................................         250,000

    The fiscal year 1999 budget request for compensation of the 
President is $250,000. This amount includes $200,000 for the 
direct salary of the President as authorized by 3 U.S.C. 102, 
and a $50,000 expense account for official expenses, with any 
unused portions reverting to the Treasury. This expense account 
is not considered as taxable to the President.
    The Committee recommends the full budget request of 
$250,000 for compensation of the President.

                         The White House Office

                         salaries and expenses

Appropriations, 1998....................................     $51,199,000
Budget estimate, 1999...................................      52,344,000
Committee recommendation................................      52,344,000

    The Committee recommends an appropriation of $52,344,000 
for the White House Office. The Committee recommendation equals 
the budget estimate.
    These funds provide the President with staff assistance and 
provide administrative services for the direct support of the 
President. Public Law 95-570 authorizes appropriations for the 
White House Office and codifies the activities of the White 
House Office.

                 Executive Residence at the White House

                           operating expenses

Appropriations, 1998....................................      $8,045,000
Budget estimate, 1999...................................       8,691,000
Committee recommendation................................       8,691,000

    The Committee recommends an appropriation of $8,691,000 for 
the Executive Residence at the White House. The Committee 
recommendation equals the budget estimate.
    These funds provide for the care, maintenance, 
refurnishing, improvement, heating, and lighting, including 
electrical power and fixtures, of the Executive Residence.
    The Executive Residence staff provides for the operation of 
the Executive Residence. A staff of 36 domestic employees 
accomplish general housekeeping, prepare and serve meals, greet 
visitors, and provide services as required in support of 
official and ceremonial functions. A staff of 35 tradespersons, 
including plumbers, carpenters, painters, on a single shift; 
electricians on a double shift; and operating engineers on a 
24-hour basis, maintains and makes repairs, minor 
modifications, and improvements to the 132 rooms and the 
mechanical systems, and provides support for official and 
ceremonial functions.
    A staff of 12 specialized employees provide services 
necessary to the operation of the White House and official and 
ceremonial functions. This staff includes four florists, four 
curators, and four calligraphers.
    An administrative staff consists of the chief usher, four 
assistant ushers, one executive grounds superintendent, one 
operating accountant, and one administrative officer. This 
staff is charged with management and administrative functions 
of the Executive Residence. This requires coordination with the 
Executive Office of the President, the National Park Service, 
the military, the U.S. Secret Service, the General Services 
Administration, and other agencies.
    During larger events, the Executive Residence staff is 
assisted by contract personnel under personal services contract 
agreements (service by agreement) to provide additional help as 
required for official and ceremonial functions.

                  Special Assistance to the President

                         salaries and expenses

Appropriations, 1998....................................      $3,378,000
Budget estimate, 1999...................................       3,512,000
Committee recommendation................................       3,512,000

    The Committee recommends an appropriation of $3,512,000 for 
special assistance to the President. The Committee 
recommendation equals the budget estimate.
    The ``Special assistance to the President'' account was 
established on September 26, 1970, to enable the Vice President 
to provide assistance to the President. This assistance takes 
the form of directed and special Presidentially assigned 
functions.
    The objective of the Office of the Vice President is to 
efficiently and effectively advise, assist, and support the 
President in the areas of domestic policy, national security 
affairs, counsel, administration, press, scheduling, advance, 
special projects, and assignments. Assistance is also provided 
for the wife of the Vice President.
    The Vice President also has a staff funded by the Senate to 
assist him in the performance of his duties in the legislative 
branch.
    The level of funding recommended by the Committee will 
allow for 22 full-time permanent positions in fiscal year 1999.

                Official Residence of the Vice President

                           operating expenses

Appropriations, 1998....................................        $334,000
Budget estimate, 1999...................................         334,000
Committee recommendation................................         334,000

    The Committee recommends an appropriation of $334,000 for 
the official residence of the Vice President. This amount 
equals the budget estimate.
    The ``Official Residence of the Vice President 
(residence)'' account was established by Public Law 93-346 on 
July 12, 1974. The residence is located on the grounds of the 
Naval Observatory in the District of Columbia and serves as a 
facility for official and ceremonial functions and as a home 
for the Vice President and his family.
    The objective of the ``Residence'' account is to provide 
for the care of, operation, maintenance, refurnishing, 
improvement, and heating and lighting of the residence and to 
provide such appropriate equipment, furnishings, dining 
facilities, services, and provisions as may be required to 
enable the Vice President to perform and discharge the duties, 
functions, and obligations associated with his high office.
    Funds to renovate the residence are provided to the 
residence through the Department of the Navy budget. The 
Committee has had a longstanding interest in the condition of 
the residence and expects to be kept fully apprised by the Vice 
President's office of any and all renovations and alterations 
made to the residence by the Navy.
    The funding level provided by the Committee will support 
one full-time equivalent position or the same level as funded 
since fiscal year 1996.

                      Council of Economic Advisers

                         salaries and expenses

Appropriations, 1998....................................      $3,542,000
Budget estimate, 1999...................................       3,666,000
Committee recommendation................................       3,666,000

    The Committee recommends an appropriation of $3,666,000 for 
salaries and expenses of the Council of Economic Advisers. The 
Committee recommendation equals the budget estimate.
    The activities of the Council are set forth in the 
Employment Act of 1946. They include the following: To assist 
and advise the President in the preparation of the ``Economic 
Report''; to gather and analyze timely information concerning 
current and prospective economic developments and report 
regularly to the President on the relationship of these 
developments to the achievement of maximum employment, 
production, and purchasing power as prescribed in the act; to 
appraise and report to the President on the extent to which the 
various programs and activities of the Federal Government 
contribute to the carrying out of the purposes of the act; to 
develop and recommend to the President national economic 
policies to foster and promote competitive enterprise, to avoid 
economic fluctuations, and to maintain maximum employment, 
production, and purchasing power; and to make such studies, 
reports, and recommendations on Federal economic policy and 
legislation as the President may request.
    In carrying out these duties, the Council consults 
regularly with other Government agencies and departments, as 
well as the Congress, and representatives of business, labor, 
consumers, agriculture, State, and local governments, and the 
economics profession. In addition, the members and staff of the 
Council are frequently called upon to serve on Cabinet Council 
working groups in a wide variety of fields.
    Included in the Council's staff is a statistical unit which 
is responsible for the monthly publication ``Economic 
Indicators'' and the preparation of the statistical material in 
the annual ``Economic Report of the President,'' as well as for 
providing continuous assistance to the Council and professional 
staff.

                      Office of Policy Development

                         salaries and expenses

Appropriations, 1998....................................      $3,983,000
Budget estimate, 1999...................................       4,032,000
Committee recommendation................................       4,032,000

    The Committee recommends $4,032,000 for the Office of 
Policy Development. The Committee recommendation equals the 
budget estimate.
    The Office of Policy Development supports the National 
Economic Council and the Domestic Policy Council, in carrying 
out their responsibilities to advise and assist the President 
in the formulation, coordination, and implementation of 
economic and domestic policy. The Office of Policy Development 
also provides support for other domestic policy development and 
implementation activities as directed by the President.

                       National Security Council

                         salaries and expenses

Appropriations, 1998....................................      $6,648,000
Budget estimate, 1999...................................       6,806,000
Committee recommendation................................       6,806,000

    The Committee recommends an appropriation of $6,806,000 for 
the salaries and expenses of the National Security Council 
[NSC]. The Committee recommendation equals the budget estimate.
    The primary purpose of the Council is to advise the 
President with respect to the integration of domestic, foreign, 
and military policies relating to the national security. 
Subject to direction by the President, it is the responsibility 
of the Council to assess and appraise the objectives, 
commitments, and risks of the United States in relation to 
actual and potential military power, to consider policies on 
matters of common interest to the departments and agencies of 
the Government, and to make recommendations and other reports 
to the President.
    The funding level provided by the Committee will support 60 
full-time equivalent positions, or the same since the fiscal 
year 1996 level for the normal activities of the NSC.

                        Office of Administration

                         salaries and expenses

Appropriations, 1998....................................     $28,883,000
Budget estimate, 1999...................................      40,550,000
Committee recommendation................................      29,140,000

    The Committee has provided $29,140,000 to the Office of 
Administration for fiscal year 1999 which includes adjustments 
for mandatory cost increases, as well as maintaining the 
current level of funding. The Committee has chosen to fund 
$11,410,000 for computer costs associated with the year 2000 in 
a separate account providing an additional emergency 
appropriation to address these costs. The Committee has 
provided the full funding level requested by the 
administration.
    The Office of Administration [OA] was created by 
Reorganization Plan No. 1 of 1977 and formally established by 
Executive Order 12028. The purpose of the Office of 
Administration provides financial and personnel management 
services, information management, library and records 
management services, and general services support to all 
agencies within the Executive Office of the President [EOP] and 
upon request, services in direct support of the President.
    The Office of Administration is composed of six functional 
divisions which are: Personnel Management Division, Financial 
Management Division, Administrative Operations Division, 
Library and Research Services Division, the Information 
Services and Technology Division, and Facilities Management 
Division.

                   Official Duties on Government Time

    Recently the Committee received verbal inquiries about 
whether White House attorneys, whose salaries are paid out of 
appropriated funds, provide legal assistance to the President 
on issues involving personal matters. The Committee received 
testimony from the Office of Administration on this issue which 
included assurances that appropriated funds are not being used 
for this or any other nonofficial purpose.
    The Office of Government Ethics [OGE] has issued a general 
ethical standard, contained in 5 CFR 2635.705, which provides 
that an employee of the Federal Government shall use official 
time to perform official duties. In an effort to attempt to 
draw a line between official and personal issues, the Committee 
has included a new general provision, section 638, which 
codifies that OGE regulation.

                     France 98 World Cup Delegation

    The Committee is extremely concerned about recent reports 
of political donors joining the EPA Administrator in an 
official delegation to the France 98 World Cup soccer 
tournament. Of particular concern is the refusal of the 
administration to provide an accounting of the costs associated 
with the trip. The Committee directs the Executive Office of 
the President to provide a full and complete accounting of all 
costs associated with the delegation to the World Cup, 
including transportation, lodging, meals, tickets to the soccer 
match, security and all other expenses, within 60 days of 
enactment of this legislation. The accounting should also 
include a detailed description of the attendees, including 
whose expenses were paid with public funds and whose expenses 
were paid with private funds.

                    Office of Management and Budget

                         salaries and expenses

Appropriations, 1998....................................     $57,440,000
Budget estimate, 1999...................................      60,617,000
Committee recommendation................................      60,617,000

    The Committee recommends an appropriation of $60,617,000. 
The Committee recommendation equals the budget estimate.
    The Office of Management and Budget [OMB] assists the 
President in the discharge of his budgetary, management, and 
other executive responsibilities.
    National security and international affairs; general 
Government; natural resources, energy, and science; human 
resources; and health and personnel.--Agency programs, budget 
requests, and management activities are examined, 
appropriations are apportioned, proposed changes in agency 
functions are studied, and special analyses aimed at 
establishing goals and objectives that would result in long- 
and short-range improvements in the agencies' financial, 
administrative, and operational management are conducted. 
Implementation of Governmentwide policies as developed by the 
statutory management offices is carried out. Governmentwide 
supply and facility acquisition, credit and cash management, 
and personnel management policies are evaluated. Also, 
leadership and support is provided for program evaluation and 
Federal-State-local relations.
    Director's office/OMB-wide offices.--Executive direction 
and coordination for all Office of Management and Budget 
activities is provided. This includes the Director's immediate 
office as well as staff support in the areas of administration, 
public affairs, legislative reference, legislative affairs, 
economic policy, budget review, and general counsel. Budget 
instructions and procedures are developed, review of agency 
estimates is coordinated, budget data systems are maintained, 
agency financial management plans are reviewed, the budget 
document is prepared, and scorekeeping is accomplished.
    Financial management.--Governmentwide policy guidance for 
financial statements, financial systems, and internal controls 
is provided to agencies; evaluation of agency performance and 
progress is carried out; and a Governmentwide financial 
management plan is prepared.
    Information and regulatory affairs.--Agency proposals to 
implement or revise Federal regulations and information 
collection requirements are reviewed and coordinated. 
Information resource management and statistical policies and 
practices are analyzed and developed.
    Procurement policy.--The Office of Federal Procurement 
Policy is responsible for promoting economy, efficiency, and 
effectiveness in the procurement of property and services by 
and for the executive branch.

                           transcript review

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

                    Violent Crime Reduction Program

    The Committee expects the President's budget submissions 
for the Department of the Treasury's bureaus funding from the 
violent crimes reduction trust fund be reflected for the 
Department as a whole and not separately within each bureau's 
request.

                   TECHNOLOGY INVESTMENT INITIATIVES

    The Committee strongly supports OMB Directive M-97-02, 
dated October 25, 1996, regarding Governmentwide technology 
investment initiatives. The Committee urges OMB to continue 
aggressive oversight of agency technology needs and to submit 
only those requests which meet the criteria set forth in the 
directive in the President's fiscal year 2000 budget request.

                              Data Access

    An issue of growing concern to the Committee is the 
public's lack of access to Government funded research data 
despite existing statutory and administration guidelines 
mandating increased access. The Paperwork Reduction Act of 1995 
requests the Director of OMB to ``foster greater sharing, 
dissemination, and access to public information.'' OMB Circular 
110, subpart C, is even more specific, stating that unless 
specifically waived, Federal agencies ``have the right * * * to 
obtain, reproduce, publish or otherwise use the data first 
produced under an award''. Unfortunately, these policies 
directives are not being implemented on a systematic basis. 
Although the National Aeronautics and Space Administration, the 
Public Health Service, and the National Science Foundation 
currently implement data sharing policies in order to permit 
wider assessment of the validity of the research results and to 
facilitate broader public understanding, other Federal agencies 
do not. Given the prevalent use of Government funded research 
data in developing regulations and Federal policy, it is 
important that such data be made available to other interested 
Federal agencies and to the public on a routine basis for 
independent scientific evaluation and confirmation.

          Paperwork Reduction and the Congressional Review Act

    Because the Office of Information and Regulatory Affairs 
[OIRA] is responsible for implementing the Congressional Review 
Act and paperwork reduction requirements, the Committee has 
included language directing the OMB to submit 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 the report be provided by March 30, 1999, 
and directs OMB to consult with the Senate Committee on 
Appropriations and the Senate Committee on Governmental 
Affairs' Subcommittee on Oversight of Government Management, 
Restructuring and the District of Columbia in the preparation 
of this report and the specific matters to be included therein.

                 Office of National Drug Control Policy

                         salaries and expenses

Appropriations, 1998....................................     $35,016,000
Budget estimate, 1999...................................      36,442,000
Committee recommendation................................      48,042,000

    The Committee recommends an appropriation of $48,042,000. 
This recommendation is $11,600,000 above the budget estimate. 
The Committee has reduced the ONDCP personnel funding level to 
reflect the difficulties ONDCP continues to experience in 
hiring and retaining staff. Should ONDCP staffing levels meet 
the FTE ceiling the Committee will favorably consider 
reprogramming funds from other services to meet the 
compensation and benefit requirements.
    The Office of National Drug Control Policy [ONDCP] was 
established pursuant to section 1002 of the Anti-Drug Abuse Act 
of 1988, Public Law 100-690. The ONDCP is the President's 
primary executive branch agency for drug policy and program 
oversight. The Director is charged by law with the formulation, 
evaluation, coordination, and oversight of both international 
and domestic antidrug abuse functions of all executive branch 
agencies, and to ensure that such functions sustain and 
complement State and local antidrug abuse efforts.

                        Staffing Levels at ONDCP

    The Committee is concerned about requests by ONDCP to 
reprogram moneys from the ``Salaries and expenses'' account to 
fund other initiatives. The Committee supports and fully funds 
the full-time equivalent staffing levels requested by ONDCP and 
is concerned that ONDCP is not filling those vacancies but is 
instead requesting to use those funds for other purposes. The 
Committee believes that ONDCP needs to maintain its staffing at 
the authorized level in order to maximize the agency's 
effectiveness.

                      Rural Drug Crime Conferences

    The Committee is concerned about the spread of drugs and 
drug-related crimes to rural areas and whether or not rural law 
enforcement can sufficiently address these new trends. 
Therefore, the Committee encourages the Director of the Office 
of National Drug Control Policy to consider convening a 
national conference on rural drug crime, to include regional 
conferences in rural areas, such as Luna County, NM, and 
similar counties in Colorado, in order to assess the needs of 
rural law enforcement and the impact drug-related crimes have 
on rural communities as they cope with these issues.
    The Committee believes that ONDCP can combine its knowledge 
and experience working with larger communities in this area and 
translate effective drug fighting practices to rural law 
enforcement, while taking into consideration their unique 
needs. Should ONDCP convene this event, the conference is 
requested to report to the Committee on Appropriations and the 
Director of ONDCP on their findings.

                  Security Assessment by U.S. Marshals

    The Committee has included a new general provision, section 
634, which directs the U.S. Marshals Service to conduct a 
threat assessment on the Director of the Office of National 
Drug Control Policy on a quarterly basis. The level of security 
is to be provided to ONDCP on a reimbursable basis by the U.S. 
Marshals Service and will be based on this quarterly threat 
assessment.

                counterdrug technology assessment center

    The Anti-Drug Abuse Act of 1988, Public Law 100-690, was 
amended during 1990 to provide for the establishment of a 
Counterdrug Technology Assessment Center within the Office of 
National Drug Control Policy. This Office is authorized to 
serve as the central counternarcotics enforcement research and 
development organization of the U.S. Government. The law 
provides for the appointment of a chief scientist to head up 
this program to make a priority ranking of scientific needs 
according to fiscal and technological feasibility as part of 
the national counterdrug enforcement research and development 
strategy.
    The Committee expects multiagency research and development 
programs to be coordinated by the Counterdrug Technology 
Assessment Center in order to prevent duplication of effort and 
to assure that whenever possible, those efforts provide 
capabilities that transcend the need of any single Federal 
agency. Prior to the obligation of these funds, the Committee 
expects to be notified by the chief scientist on how these 
funds will be spent; it also expects to receive periodic 
reports from the chief scientist on the priority counterdrug 
enforcement research and development requirements identified by 
the Center and on the status of projects funded by CTAC.
    The Committee continues to believe CTAC should work closely 
and cooperatively with the individual law enforcement agencies 
in the definition of a national research and development 
program which addresses agency requirements with respect to 
timeliness, operational utility, and consistency with agency 
budget plans.

                Counterdrug Technology Transfer Program

    The Committee fully supports the continuation of this 
program and, therefore, has provided $13,000,000 for its 
operation in fiscal year 1999. The Committee believes that this 
program demonstrates the best that the Federal Government has 
to offer to State and local law enforcement in their efforts to 
combat drug related crimes. The Committee is encouraged by the 
positive reception this program has received by State and local 
law enforcement agencies and expects that CTAC will continue to 
conduct outreach to State and local agencies to further educate 
them about the program. Finally, the Committee would encourage 
CTAC to work with private industry to make their developed 
technology available to State and local law enforcement through 
this program. The Committee requests that ONDCP report within 
60 days after the date of enactment of the fiscal year 1999 
appropriations bill on the number of requests received, 
promotion efforts to State and local law enforcement, and the 
effectiveness and interest in this program by these law 
enforcement communities.

                      CTAC and February GAO Report

    The Committee finds that the operations of the Counterdrug 
Technology Assessment Center [CTAC] at ONDCP has not met the 
expectations for which it was created. Based on the February 
1998 GAO study of CTAC, a number of administrative and 
management shortcomings are apparent in the operations of CTAC. 
The Committee requests that the Director of ONDCP provide the 
Committee, no later than 6 months after the enactment of this 
bill, with a detailed report on how he plans to address the 
shortcomings and ensure that the purposes for which CTAC was 
created are being met.

                          unanticipated needs

Appropriations, 1998....................................................
Budget estimate, 1999...................................      $1,000,000
Committee recommendation................................................

    The Committee recommendation is $1,000,000 less than the 
budget request.

                  Funds Appropriated to the President

                     Federal drug control programs

                 high-intensity drug trafficking areas

                     (including transfer of funds)

Appropriations, 1998....................................    $159,007,000
Budget estimate, 1999...................................     162,007,000
Committee recommendation................................     171,007,000

    The Committee recommends an appropriation of $171,007,000. 
This amount is $12,000,000 above the fiscal year 1998 level.
    Section 1005 of the Anti-Drug Abuse Act of 1988 authorized 
the Director of ONDCP to designate certain areas in the United 
States, as high-intensity drug trafficking areas [HIDTA's] for 
the purpose of providing increased Federal assistance to 
alleviate drug-related problems. The most critical drug 
trafficking areas of the country are designated as HIDTA's.
    There are currently 20 HIDTA's: New York, Miami, Houston, 
Los Angeles, Baltimore-Washington metropolitan area, Puerto 
Rico-Virgin Islands, the Southwest border, Chicago, Atlanta, 
Philadelphia-Camden, the gulf coast, Lake County, IN, the 
Midwest (Iowa, Kansas, Missouri, Nebraska, South Dakota), the 
Pacific Northwest (Washington Cascades), the Rocky Mountain 
(Colorado, Utah, Wyoming), central Florida, Kentucky/Tennessee/
West Virginia, Milwaukee, San Francisco Bay area, and 
southeastern Michigan. The Committee directs that funding shall 
be provided for the existing HIDTA's at no less than the fiscal 
year 1998 level. The Committee provides $5,000,000 for the new 
HIDTA's in Dallas/Fort Worth and east Texas, and $1,000,000 for 
the New England HIDTA, should the Director of ONDCP determine 
these locations meet the designated criteria. In addition, 
funding is included to expand the Milwaukee HIDTA by $1,500,000 
and continue the Rocky Mountain methamphetamine program at 
$1,500,000.
    A total of not less than $90,630,000 is provided in this 
account specifically for assistance to State and local drug 
control agencies in the 20 HIDTA's. In allocating these funds, 
the Committee expects the Director of the Office of National 
Drug Control Policy to ensure that the activities receiving 
these limited additional resources are used strictly for 
implementing the strategy for each HIDTA, taking into 
consideration local conditions and resource requirements. These 
funds should not be used to supplant existing support for 
ongoing Federal, State, or local drug control operations 
normally funded out of the operating budgets of each agency. 
The remaining funds may be transferred to Federal agencies and 
departments to support Federal antidrug activities.
    The Committee believes that the Director should take steps 
to ensure that the HIDTA funds are transferred to the 
appropriate drug control agencies expeditiously. To ensure that 
the funding allocations meet the priorities outlined in the 
strategies, the Committee instructs the Director to submit the 
strategies, along with the identification of how the funds will 
be spent, to the Committee for review prior to the obligation 
of the funds. The Committee also expects to be notified if any 
changes are made in the spending plans presented to it during 
the course of the fiscal year. The Committee further instructs 
the Director to submit the updated 1999 strategies for each of 
the HIDTA's to the Committee for review and to obligate the 
HIDTA funds within 120 days of enactment of this act. This 
provision may be waived if a request is made to the Committee 
and has been approved in advance according to the normal 
reprogramming procedures. The Committee expects the Director to 
take actions necessary to ensure that all HIDTA funds are being 
used to support only those activities which are directly linked 
to the individual HIDTA strategies recommended by the HIDTA 
coordinators and which support the goals and objectives 
outlined in each of these strategies.
    The Committee is concerned that Hawaii has the dubious 
distinction of having a predominance of crystal methamphetamine 
or ice as its primary drug threat for the past decade. This is 
a relatively new threat for many other States. Hawaii's fight 
against this drug has been challenged by direct passenger and 
parcel flights to its neighbor island airports in Maui, Kona, 
Hilo, and Kauai. The Committee is aware that Hawaii's Federal, 
State, and county law enforcement officials are preparing an 
application for designation as a HIDTA, and urges ONDCP to 
carefully consider Hawaii's serious needs and fight to 
safeguard its ports of entry from illicit drugs.

               Integration of Law Enforcement Activities

    The Committee is aware of innovative applications of 
technology by various high intensity drug trafficking area 
[HIDTA] programs to increase the effectiveness of integrating 
information obtained from various law enforcement activities. 
In particular, the Committee is aware of the activities of the 
University of Maryland's Baltimore/Washington HIDTA program 
with respect to its use of integrating software in its 
investigations as an object oriented case tool allowing various 
data bases to be integrated. The Committee applauds this 
innovative approach to crime fighting.

                        Special Forfeiture Fund

Appropriations, 1998....................................    $211,000,000
Budget estimate, 1999...................................     251,000,000
Committee recommendation................................     200,000,000

    The Committee recommends an appropriation of $200,000,000.
    The special forfeiture fund was established by the Anti-
Drug Abuse Act of 1988, as amended, to be administered by the 
Director of the Office of National Drug Control Policy. While 
the fund was originally authorized to receive deposits from the 
Department of Justice assets forfeiture fund and the Treasury 
forfeiture fund, its current source of funding is ``General 
fund'' appropriations.

                       Hardcore Drug Users Study

    The budget estimate includes a request of $10,000,000 to 
expand a preliminary user study conducted in Cook County, IL. 
The Cook County study developed a methodology for estimating 
the number of hardcore drug users in the United States. 
Accurately identifying this population is important since they 
consume a massive amount of the drugs available in the United 
States, create a large proportion of the demand for illegal 
drug markets, and are responsible for a great deal of criminal 
activity. The accurate identification of this population will 
provide communities a base for estimating the type and number 
of drug treatment and prevention programs required.
    The Committee congratulates ONDCP on conducting this study 
and continues to support this effort. Due to competing demands 
the Committee provides only $5,000,000 to expand the study to 
regional areas. The Committee encourages ONDCP to work with the 
Department of Health and Human Services to identify additional 
funding sources. The Committee also encourages ONDCP to develop 
additional projects utilizing the data collected in the Cook 
County study that will result in reducing the population of 
hardcore drug users.

                 DRUG FREE PRISON DEMONSTRATION PROJECT

    The Committee provided $6,000,000 for the Office of 
National Drug Control Policy in fiscal year 1998 to establish a 
drug-free prison demonstration program. The demonstration 
project will address the huge increases in America's prison 
population due to crimes related to drug and alcohol abuse. To 
reduce drug-related crimes in the future, the project will also 
address the gap which exists between available substance abuse 
treatment and the need for such treatment. ONDCP through a 
memorandum of understanding with the Bureau of Prisons and the 
National Institute of Corrections is developing a demonstration 
project which is applying drug interdiction strategies to 
reduce the presence of illicit drugs in prisons and is 
sponsoring residential and nonresidential drug abuse treatment 
services for inmates. The project is also offering transitional 
services for inmates released to the community. The Committee 
directs ONDCP to provide annual reports to the Senate Committee 
on Appropriations on the progress, impact, and accomplishments 
of the drug-free prison demonstration project, an accounting of 
funding for prevention and treatment projects, and individual 
program evaluations. Prior to termination of the demonstration 
project, ONDCP will also provide the Committees a final report 
providing program results and recommendations.

                        National Media Campaign

    In fiscal year 1998 ONDCP proposed a 5-year media campaign 
at a total cost to the Federal Government of $875,000,000. The 
Committee provided $195,000,000 in fiscal year 1998 and 
provides $175,000,000 in fiscal year 1999.
    Over the past year, the Committee has spent a substantial 
amount of time monitoring and examining the media campaign and 
its evolution. As a result, the Committee requires ONDCP to 
comply with the following: (1) ONDCP will require a pro-bono 
match commitment upfront as part of its media buy from each and 
every buyer of ad time and space, (2) ONDCP will dedicate 10 
percent of the total amount appropriated specifically for the 
media campaign for the development, in consultation with 
community groups and experts, and distribution of grassroots 
materials aimed at children to be distributed to communities 
and schools to support the national media campaign, (3) ONDCP, 
or any agent acting on its behalf, is prohibited from 
obligating any funds for the creative development of 
advertisements, (4) ONDCP will secure 80 percent of corporate 
sponsorship and will report quarterly on its efforts to meet 
this goal, (5) ONDCP, or any agent acting on its behalf, is 
prohibited from paying for the development of new 
advertisements related to the media campaign, but these ads 
must be provided on a pro-bono basis, and (6) ONDCP is mandated 
to use appropriated funds solely to fund the antidrug media 
campaign to include only the purchase of media time and space, 
talent reuse payments, out-of-pocket advertising production 
costs, and the negotiated fee for the contract buying agency.
    In addition, ONDCP is to report to the Committee on 
Appropriations by January 15, 1999 on the effectiveness of the 
national media campaign. ONDCP is also to report to the 
Committee on Appropriations within 6 months of enactment of 
this bill on State and local prevention and treatment 
facilities infrastructure and their capacity to handle the 
increased demands of communities as a result of the national 
media campaign. ONDCP is to continue to report on the 
effectiveness and implementation status of the guidelines set 
out in the fiscal year 1998 appropriations bill.
    Finally, none of the funds provided for the national media 
campaign for fiscal year 1999 may be obligated until ONDCP has 
submitted for written approval by the Committees on 
Appropriations the evaluation and the results of phase I and 
phase II of the campaign.
    The Committee believes this national media campaign, if 
properly executed, has the potential to produce concrete 
results. The Committee will closely track this national 
campaign and its contribution to achieving a drug-free America, 
and directs ONDCP to submit quarterly reports on the obligation 
of funds as well as the specific parameters of the pilot 
campaign. The Committee anticipates that future funding will be 
based upon results.

           Media Campaign Financial Management and GAO review

    The Committee provides $175,000,000 for fiscal year 1999 
for the national media campaign. During fiscal year 1998, ONDCP 
was required, by statute, to submit quarterly reports to the 
Committee on the obligation of funds relating to the media 
campaign. The Committee reminded ONDCP of this statutory 
requirement in December, with the first release of funds, and 
again in March 1998 during the fiscal year 1999 budget hearing. 
As a result of ONDCP's failure to respond to this request for 
information, the Committee now requires not only quarterly 
reports, but also monthly itemized reporting of all 
expenditures and obligations related to the media campaign.
    As a result of growing concern relating to the disclosure 
of funding obligations related to the campaign, the Committee 
directs the General Accounting Office to conduct a financial 
audit and review of the financial transactions relating to the 
media campaign. The Committee requests that the scope of the 
review include how moneys have been obligated and the 
effectiveness of the campaign and report to the Senate 
Committee on Appropriations. As part of the review, GAO shall 
determine the definition, acquisition, and utilization of 
matching contributions sought by ONDCP relating to the media 
campaign.
    Finally, Public Law 105-61 required the Director of ONDCP 
to submit a campaign strategy that included (1) guidelines by 
which he would ensure and certify that campaign funds would be 
used to supplement and not supplant current antidrug, 
community-based coalitions as well as current pro-bono public 
service time being donated by national and local broadcasters; 
(2) guidelines to ensure that none of the campaign funds would 
be used for partisan political purposes, and that no media 
campaigns to be funded pursuant to this campaign shall feature 
any elected officials, persons seeking office, Cabinet-level 
officials, or other Federal officials employed pursuant to 
Schedule C of title V, without prior approval from Congress; 
(3) a detailed implementation plan for securing private sector 
contributions; (4) a plan detailing the qualifications needed 
to receive funding for or otherwise be provided broadcast media 
time; and (5) a system to measure the outcomes of the campaign. 
The Committee is concerned that this effort has not been 
receiving a suitable level of oversight. Therefore, the 
Committee is requesting the General Accounting Office to assess 
the guidelines and other controls developed and implemented by 
ONDCP to ensure compliance with the conditions in the act, and, 
to the extent possible, implementation of ONDCP' system to 
measure the outcomes of the campaign.

                         Phase I Pilot Results

    The Committee is concerned that given the timing of the 
national media campaign, it does not have the full opportunity 
to review and assess the success of the pilot phase of the 
national media campaign prior to making decisions on the fiscal 
year 1999 budget of the campaign. Therefore, the Committee has 
included a statutory provision which prohibits ONDCP from 
obligating or releasing any fiscal year 1999 media campaign 
funds until the General Accounting Office reviews phase I, the 
12 city test pilot, and reports their findings to Congress. 
This review is to examine the development of the test market 
plan for phase I, determine the viability of extrapolating 
phase I to the national level, and determine the success of 
phase I in the 12 city pilot.

              Corporate Sponsorship of the Media Campaign

    The Committee has included statutory language requiring 
ONDCP to secure private sector and corporate contributions for 
the media campaign as a result of its concern that this is a 
greatly untapped resource and important nexus for the success 
of the campaign. Specifically, the Committee is concerned that 
ONDCP is not capitalizing on an area that is highly influential 
to the target audience of the campaign: America's youth. 
Therefore, the Committee requests that ONDCP report within 3 
months after enactment of the fiscal year 1999 appropriations 
bill on the status of the initiation of this very critical 
component of the media campaign.

                   Drug-Free Communities Act of 1997

    The accelerating rate of drug use by young Americans is a 
major concern that must be addressed. The Committee, therefore, 
provides $20,000,000 to support the initiation of matching 
grants to drugfree communities, as authorized in the Drug-Free 
Communities Act of 1997. These funds will be used to support 
the establishment of local counterdrug efforts that are 
characterized by strong conditions for local initiatives, 
support, and accountability. In addition, the requirement for 
participating communities to match funding will help ensure the 
degree of commitment necessary to succeed.

          Methamphetamines and State and Local Law Enforcement

    The Committee directs the Office of National Drug Control 
Policy to work with State and local law enforcement to battle 
methamphetamine trafficking and the cleanup of meth 
laboratories. Methamphetamines are a dangerous drug that, when 
manufactured, leaves toxic cleanup sites too few communities 
can adequately address. As a result of ONDCP's national 
methamphetamine efforts funded by Congress in fiscal year 1998, 
the Committee encourages ONDCP to translate its expertise in 
educating the public, combating the spread of methamphetamines, 
and cleaning up meth labs to State and local law enforcement 
including Missouri, Washington, Iowa, and New Mexico.

                      Methamphetamine Conferences

    In May 1997, the National Methamphetamine Drug Conference 
was held in Omaha, NE. Methamphetamine, the crack of the 
1990's, knows no geographical, ethnic, gender, or socioeconomic 
boundaries. The Committee would like ONDCP to consider Omaha as 
a site for future conferences relating to methamphetamine.

                   Methamphetamine Laboratory Cleanup

    The Committee directs the ONDCP to coordinate efforts with 
the Environmental Protection Agency to conduct assessments of a 
sampling of seized clandestine methamphetamine producing 
laboratories and evaluate cleanup requirements necessary to 
ensure that such sites are safe for future human occupation. 
Findings and recommendations shall be reported to the Senate 
Committee on Appropriations, the Director of the Drug 
Enforcement Agency, and the Director of ONDCP.

          Information Technology Systems and Related Expenses

                          Year 2000 Conversion

    The Committee continues to be concerned about the progress 
of many of the agencies under the jurisdiction of this bill in 
fixing the year 2000 conversion problem. This absolutely must 
be a top priority for the Federal Government. The Office of 
Management and Budget reports that some agencies have shown 
signs of progress but they, too, are concerned.
    For example, the Financial Management Service, which is 
responsible for Government payments, collections, debt 
management, and accounting information, has not yet fully 
assessed year 2000 conversion needs for their Government online 
accounting link system [GOALS]. The Office of Personnel 
Management does not meet Governmentwide goals. The Federal 
Elections Commission is behind schedule. The National Archives 
and Records Administration has only begun their contingency 
planning.
    The Committee believes that OMB should continue to play a 
vital role in pushing agencies to accelerate their efforts to 
deal with this emergency situation, including control of the 
purse-strings for year 2000 conversion funding. The Committee 
expects all agencies within the jurisdiction of this bill to 
identify all systems in need of conversion and to work with OMB 
for the release of emergency funding to address their needs.
    The Committee has provided $3,250,000,000 to be used 
exclusively for the direct costs of addressing the year 2000 
problem. These funds are available to cover the costs of agency 
year 2000 efforts for all types of information technology, 
including computer software and hardware, telecommunications 
systems and their components, and other systems and components 
(such as building security systems and medical devices) that 
contain or depend on electronic devices (such as embedded 
microchips). While the funds are available to address both 
mission-critical and nonmission-critical systems, it is the 
Committee's sense that, given the shortness of time remaining, 
agencies must prioritize their efforts to assure that the most 
critical systems are addressed satisfactorily.
    The funds are available to cover the costs of identifying 
necessary changes, evaluating the cost effectiveness of making 
those changes (fix or scrap decisions), making changes, testing 
systems, and preparing and exercising contingency plans to 
assure continuity of operations and recovery of components, 
systems, and the business processes and missions that depend on 
them. The funds may also be used to cover the costs of upgrades 
or replacements to systems or components, where those upgrades 
or replacements are necessitated by the year 2000 problem and 
would not otherwise occur as part of the normal system life 
cycle. The funds may be expended directly for Federal personnel 
salaries and expenses, and through contracts, grants, or other 
instruments, consistent with applicable law.

                     TITLE IV--INDEPENDENT AGENCIES

 Committee for Purchase From People Who Are Blind or Severely Disabled

                         salaries and expenses

Appropriations, 1998....................................      $1,940,000
Budget estimate, 1999...................................       2,464,000
Committee recommendation................................       2,464,000

    The Committee recommends $2,464,000 for the Committee for 
Purchase From People Who Are Blind or Severely Disabled 
[CPPBSD]. The Committee recommendation equals the budget 
estimate.
    The CPPBSD was established by the Javits-Wagner-O'Day Act 
of 1971. The CPPBSD's primary objective is to increase the 
employment opportunities for the blind and other severely 
handicapped and, whenever possible, to prepare them to engage 
in normal competitive employment. The CPPBSD determines which 
commodities and services are suitable for Government 
procurement from qualified, nonprofit agencies serving the 
blind and other severely handicapped; publishes a procurement 
list of such commodities and services; determines the fair 
market price for commodities and services on the procurement 
list; and makes rules and regulations necessary to carry out 
the purposes of the act.
    The CPPBSD staff supervises the selection and assignment of 
new commodities and services, assists in establishing prices, 
reviews and adjusts these prices, verifies the qualifications 
of workshops, and monitors their performance.
    The Committee recognizes the importance of the Javits-
Wagner-O'Day [JWOD] Act in providing much needed employment 
opportunities to blind and other severely handicapped 
Americans, while at the same time providing quality goods and 
services to the Federal Government at fair market prices.
    In this regard, the Committee intends that CPPBSD, in its 
monitoring of the designated central nonprofit agencies, assure 
that all funds acquired by each such agency from nonprofit 
agencies for the blind and other severely handicapped in 
conjunction with the Javits-Wagner-O'Day Program be used solely 
for activities that are consistent with the goal of the 
program, which is to generate employment and training 
opportunities for persons who are blind or have other severe 
disabilities.
    The Congress further recognizes that research, promotional, 
and advocacy efforts aimed at strengthening and expanding the 
program are both a statutory and necessary function in order 
for the Committee for Purchase From People Who Are Blind or 
Severely Disabled to fulfill its obligations under the JWOD 
Act. The Congress supports efforts by the CPPBSD to initiate 
such research and advocacy activities.

                      Federal Election Commission

                         salaries and expenses

Appropriations, 1998....................................     $31,650,000
Budget estimate, 1999...................................      36,504,000
Committee recommendation................................      33,700,000

    The Committee recommends an appropriation of $33,700,000 
for the Federal Election Commission [FEC]. The Committee 
recommendation is $2,050,000 above the fiscal year 1998 level. 
The Committee notes that the administration's request includes 
$400,000 for year 2000 conversion costs. It is expected that 
the FEC will receive that funding through a separate account 
established solely for that purpose.
    The Federal Election Commission is charged with 
implementing and enforcing the Federal Election Campaign Act 
[FECA] as amended. This includes: promoting public disclosure 
of campaign finance activity; providing information to the 
public, press, and campaign officials on the FECA and campaign 
finance; obtaining voluntary compliance with the disclosure and 
limitation provisions of the FECA; and enforcing that 
disclosure and compliance through audits, investigations, and/
or litigation. The Commission is also charged with implementing 
the Presidential campaign funding programs for both primary and 
general election campaigns of qualified Presidential 
candidates. This includes certification, audit, and enforcement 
of the provisions of the Federal funding legislation concerning 
the use of Federal funds.

                   Federal Labor Relations Authority

                         salaries and expenses

Appropriations, 1998....................................     $22,039,000
Budget estimate, 1999...................................      22,586,000
Committee recommendation................................      22,586,000

    The Committee recommends an appropriation of $22,586,000 
for the Federal Labor Relations Authority [FLRA]. This amount 
is equal to the budget request.
    The FLRA was established to administer title VII of the 
Civil Service Reform Act of 1978 and to serve as a neutral 
third party in the resolution of labor-management disputes 
arising among unions, employees, and Federal agencies. The 
effective resolution of these labor-management disputes has an 
important impact on the operations of the Government. These 
disputes arise with nearly all agencies of the executive 
branch, the Library of Congress, and the Government Printing 
Office, in locations throughout the United States and overseas.
    Authority members.--Provides leadership in the 
establishment of policies and guidance relating to matters 
under title VII of the Civil Service Reform Act of 1978. 
Specifically, the authority is empowered to: (1) determine the 
appropriateness of units for labor organization representation; 
(2) supervise or conduct elections to determine whether a labor 
organization has been selected as an exclusive representative 
by a majority of the employees in an appropriate unit; (3) 
otherwise administer the provisions relating to the according 
of exclusive recognition to labor organizations; (4) prescribe 
criteria and resolve issues relating to the granting of 
national consultation rights; (5) prescribe and resolve issues 
relating to determining compelling need for agency rules and 
regulations; (6) resolve issues relating to the duty to bargain 
in good faith; (7) prescribe criteria relating to the granting 
of consultation rights with respect to conditions of 
employment; (8) conduct hearings involving complaints of unfair 
labor practices; (9) resolve exceptions to arbitrators' awards; 
and (10) take such other actions as necessary and appropriate 
to effectively administer the provisions of title VII of the 
Civil Service Reform Act of 1978.
    General Counsel.--Has discharged responsibilities mandated 
in the Federal service-management relations statute and 
additional responsibilities which are delegated from the 
authority. The functions of the Office of the General Counsel 
are to: (1) investigate all alleged unfair labor practices 
under the Federal service labor-management relations statute 
and under the foreign service labor-management relations 
statute; (2) exercise final authority over the issuance of all 
complaints and the prosecution of all complaints arising under 
the statutes listed above; (3) review and decide all appeals of 
decisions of the regional directors refusing to issue 
complaint; (4) exercise delegated authority for investigating 
and taking dispositive action on all representation petitions; 
(5) exercise delegated authority for supervising or conducting 
all representation elections and certifying the results of 
these elections to the parties; (6) exercise delegated 
authority for conducting hearings in all representation 
petitions where issues of fact are in dispute; (7) exercise 
delegated authority for the preparation of final decisions and 
orders based on the hearings held in representation cases; and 
(8) manage regional offices, including directing and 
supervising all employees of the regional offices. The regional 
offices are located in Atlanta, Boston, Chicago, Dallas, 
Denver, San Francisco, and Washington, DC. Subregional offices 
are located in Philadelphia, New York, Los Angeles, and 
Cleveland.
    Federal services impasses panel [FSIP].--An entity within 
the FLRA, assists Federal agencies and unions representing 
Federal employees in resolving impasses which arise in labor 
negotiations. The FSIP assists the parties through informal 
meetings, factfinding and, if necessary, arbitration. The 
professional staff aids the panel members by promptly 
investigating requests for assistance; bringing about informal 
settlements; conducting factfinding and arbitration hearings; 
and drafting report recommendations as well as binding 
decisions for the FSIP members. Further, the staff supports the 
Foreign Service impasses disputes panel in resolving 
negotiation impasses arising under the Foreign Service Act of 
1980.

                    General Services Administration

     Federal buildings fund--limitations on availability of revenue

                     (Including Transfer of Funds)

                      construction and acquisition

Appropriations, 1998....................................................
Budget estimate, 1999...................................     $44,005,000
Committee recommendation................................     552,757,000

    The Committee appropriates $508,752,000 into the Federal 
buildings fund. This appropriation offsets the difference 
between the income to the fund and the expenditures from the 
fund. The Committee makes $5,578,585,000 available from the 
Federal buildings fund for construction, repairs, and 
alterations and other public building services.
    The Committee makes $552,757,000 available from the Federal 
buildings fund for new construction and inserts a list of 
construction projects. The lists of projects is as follows:

New construction

Arkansas: Little Rock, U.S. courthouse..................      $3,436,000
California:
    San Diego, U.S. courthouse..........................      15,400,000
    San Jose, U.S. courthouse...........................      10,800,000
Colorado: Denver, U.S. courthouse.......................      83,959,000
District of Columbia:
    Department of Transportation, headquarters..........      14,105,000
    Southeast Federal Center remediation................      10,000,000
Florida:
    Jacksonville, U.S. courthouse.......................      86,010,000
    Orlando, U.S. courthouse............................       1,930,000
Georgia: Savannah, U.S. courthouse......................      46,462,000
Massachusetts: Springfield, U.S. courthouse.............       5,563,000
Michigan: Sault Sainte Marie, border station............         572,000
Mississippi, Biloxi-Gulfport U.S. courthouse............       7,543,000
Missouri: Cape Girardeau U.S. courthouse................       2,196,000
Montana: Babb, Piegan border station....................       6,165,000
New York:
    Brooklyn, U.S. courthouse...........................     152,626,000
    New York U.S. Mission to the United Nations.........       3,163,000
Oregon: Eugene, U.S. courthouse.........................       7,190,000
Tennessee: Greenville, U.S. courthouse..................      28,229,000
Texas: Laredo, U.S. courthouse..........................      28,105,000
West Virginia: Wheeling, U.S. courthouse................      29,303,000
Nationwide: nonprospectus...............................      10,000,000

                        Courthouse Construction

    The Committee recognizes the efforts of the General 
Services Administration and the judiciary to reduce the cost of 
courthouse construction and encourages the continuation of 
these efforts. We are pleased that the Administrative Office of 
the U.S. Court's recent draft utilization study answers some 
questions about the utilization rates of existing and proposed 
courthouses. The Committee is aware of the judiciary's need to 
have court space available to conduct business and understands 
their position that a courtroom's existence may result in 
moving a case to settlement. However, the Committee continues 
to be concerned that the courts are not fully examining 
information that is key to the development of a utilization 
planning model. As a result, the Committee requests the 
Administrative Office of the U.S. Courts to revise the 
utilization study to include the assumptions used to develop 
the planning model. Additionally, the Committee directs the 
General Services Administration to provide the utilization 
rates of existing and proposed courtrooms with any request for 
new construction, replacement, or expansion of court space.

                 Rogers Federal Courthouse, Denver, CO

    The Committee has included a provision which grants the 
General Services Administration the authority to negotiate for 
and purchase the parcel of property on block 111, East Denver, 
Denver, CO.

                 Mauna Kea Astronomy Educational Center

    Mauna Kea, on the Island of Hawaii, is known 
internationally as the best site for optical, infrared, and 
millimeter/submillimeter astronomy. It is the chosen site for 
all four of the new generation of 8- to 10-meter class 
telescopes now under construction in the Northern Hemisphere. 
The observatories include: the Gemini project, the Keck 
Observatory, Canada, France, Hawaii, the Joint Astronomy 
Center, Subaru, Smithsonian, and the California Institute of 
Technology. Eight nations are represented atop Mauna Kea with 
the United States' presence most prominent.
    To maintain the United States' preeminence and leadership 
in this field, the Committee supports the establishment of an 
educational center to support academic and research pursuits, 
educational and public outreach, and national and international 
conferencing at the base of Mauna Kea. The Mauna Kea Astronomy 
Educational Center will include: a planetarium, realtime 
linkages to the observatories, and conferencing and 
instructional facilities.
    The Committee directs GSA to provide $475,000 of 
nonprospectus construction funds be used for the planning of 
the Mauna Kea Astronomy Educational Center.

               Department of Transportation Headquarters

    The Administrator of General Services is not allowed to 
obligate funding for the design portion of the new headquarters 
building for the Department of Transportation until the 
Secretary of Transportation approves landing rights for British 
Airways at Denver International Airport and guarantees landing 
slots to the U.S. carrier authorized to serve the Charlotte-
London (Gatwick) route.

                 Architectural and Engineering Services

    The Committee is concerned about reports that GSA may 
practice restrictive location policies in the procurement of 
architectural and engineering consulting services in the 
National Capital Region. The Committee directs that GSA review 
its policies and report back to the Committee by December 1, 
1998, on geographic restrictions on the awarding of 
architectural and engineering consultant services nationally 
and, should restrictive policies be identified, to provide a 
plan to remove restrictions and increase competition.

                        repairs and alterations

Limitation on availability, 1998........................    $300,000,000
Limitation on availability, 1999........................     668,031,000
Committee recommendation................................     668,031,000

    The Committee recommends new obligational authority of 
$668,031,000 for repairs and alterations in fiscal year 1999. 
The Committee recommendation is equal to the budget estimate. 
The Committee has included language to delay obligation of 
$323,800,000 for repairs and alterations.
    Under this activity, the General Services Administration 
[GSA] executes its responsibility for repairs and alterations 
[R&A] of both Government-owned and leased facilities under the 
control of GSA. The major goal of this activity is to provide 
commercially equivalent space to tenant agencies. Safety, 
quality, and operating efficiency of facilities are given 
primary consideration in carrying out this responsibility. A 
major portion of the fiscal year 1998 program is devoted to 
nondiscretionary work necessary to meet this goal and keep the 
buildings in an occupiable condition.
    R&A workload requirements originate with scheduled onsite 
inspections of buildings by qualified regional engineers and 
building managers. The work identified through these 
inspections is programmed in order of priority into the repairs 
and alterations construction automated tracking system [RACATS] 
and incorporated into a 5-year plan for accomplishment, based 
upon funding availability, urgency, and the volume of R&A work 
that GSA has the capability to execute annually. Beginning in 
fiscal year 1995, design and construction services activities 
associated with the repair and alteration projects are funded 
in this account.
    The R&A program, for purposes of funds control, is divided 
into two types of projects--line item and nonline item. The 
following is a definition of each category of projects:
    Line item projects.--Line item projects are those larger 
projects for which a prospectus is required under the 
provisions of the Public Buildings Act of 1959. Generally, line 
item projects are similar to construction projects in the scope 
of work involved and the multiyear timeframe for project 
completion. Line item projects are listed individually in GSA's 
appropriations acts and the obligational authority for each 
project is limited to the amount shown therein.
    Nonline item projects.--Projects included in this category 
are generally short term in nature and funds can normally be 
obligated within a 1-year period. This category also includes 
projects which are recurring in nature, such as cyclic painting 
and the minor repair of defective building systems; for 
example, mechanical, plumbing, electrical, fire safety, and 
elevator system components.

Repairs and alterations

California: San Francisco, appraisers building..........     $29,778,000
Colorado: Lakewood, Denver Federal Center, building 25..      29,351,000
District of Columbia:
    Federal office building, 10B........................      13,844,000
    Interstate Commerce Commission, connecting wing 
      complex, customs building, phase 3/3..............      83,959,000
    Old Executive Office Building.......................      25,210,000
    Department of State, phase 1........................      29,779,000
New York:
    Brookhaven, Internal Revenue Service, service center      20,019,000
    New York, U.S. courthouse, 40 Foley Square..........       4,782,000
Pennsylvania: Philadelphia, Byrne-Green, Federal 
    building-U.S. courthouse............................      11,212,000
Virginia: Reston, J.W. Powell Building..................       9,151,000
Nationwide:
    Chlorofluorocarbons program.........................      25,000,000
    Energy programs.....................................      25,000,000
    Design program......................................      16,710,000
    Basic repairs and alteration........................     344,236,000

                     Byrne-Green Federal Courthouse

    The Committee directs the General Services Administration 
to resolve the issue of the upgraded lighting system for the 
Byrne-Green Federal Courthouse in Philadelphia, PA, and 
requests GSA to provide, from existing funds, the resources 
necessary to address the situation.

                  FEDERAL BUILDING AND U.S. COURTHOUSE

    The Committee supports the Federal buildings fund providing 
$1,600,000 to complete the basic repair and alteration of the 
Federal building and U.S. courthouse located at 517 East 
Wisconsin Ave. in Milwaukee, WI. This funding will allow the 
courts to recover available space in the existing building for 
the construction of a courtroom within the existing structure. 
As a result, the Federal building and U.S. courthouse, first 
opened in 1899, would be fully utilized as an important 
historic structure.

                        SUITLAND FEDERAL COMPLEX

    The Committee supports providing $1,100,000 from the basic 
repair and alteration funding levels for a new fence to 
surround the Suitland Federal complex in Suitland, MD. 
Replacement of the fence is necessary since the existing fence 
is a blight on the community and does not provide adequate 
security to employees in the complex. It is suggested that the 
existing barbed wire fence be replaced with a wrought iron 
fence that improves the visual impact for the community and 
provides increased security for the employees of the Federal 
complex.

                        EDWARD ZORINSKY BUILDING

    The Committee supports the President's request for 
$2,797,000 to design the repair and alteration of the Edward 
Zorinsky Federal Building. The Zorinsky Building in Omaha, NE, 
which currently houses the Internal Revenue Service, is over 65 
years old. To ensure this Federal asset continues to house 
Federal employees it is important that the facility's 
operational systems are upgraded.

                             Tuscaloosa, AL

    The Committee directs the General Services Administration 
to assess and report on the cost of and need for the repair of 
the Federal building in Tuscaloosa, AL.

                    Butte-Silver Bow Courthouse, MT

    The Committee directs GSA to conduct a study on 
alternatives for funding the repairs and renovations of the 
Butte-Silver Bow Courthouse located in Butte, MT. The Committee 
expects the study to be completed in fiscal year 1999.

                    installment acquisition payments

Limitation on availability, 1998........................    $142,542,000
Limitation on availability, 1999........................     215,764,000
Committee recommendation................................     215,764,000

    The Committee recommends a limitation of $215,764,000 for 
installment acquisition payments. The Committee recommendation 
equals the budget estimate.
    The Public Buildings Amendments of 1972 enables GSA to 
enter into contractual arrangements for the construction of a 
backlog of approved but unfunded projects. The purchase 
contracts require the Government to make periodic payments on 
these facilities over varying periods until title is 
transferred to the Government. This activity provides for the 
payment of principal, interest, taxes, and other required 
obligations related to facilities acquired pursuant to the 
Public Buildings Amendments of 1972 (40 U.S.C. 602a).

                            Rental of Space

Limitation on availability, 1998........................  $2,275,340,000
Limitation on availability, 1999........................   2,583,261,000
Committee recommendation................................   2,583,261,000

    The Committee recommends a limitation of $2,583,261,000 for 
rental of space. The Committee recommendation is equal to the 
budget estimate. The Committee has included language to delay 
obligation of $51,667,000 for the ``Rental of space'' account. 
The Committee realizes that this account is utilized to pay 
bills associated with renting space and believes that the 98 
percent outlay level available will be adequate to cover bills 
that come due in 1999.
    The General Services Administration is responsible for 
leasing general purpose space and land incident thereto for 
Federal agencies, except cases where the GSA has delegated its 
leasing authority (for example, the Department of Veterans 
Affairs, as well as the Departments of Agriculture, Commerce, 
and Defense). The GSA's policy is to lease privately owned 
buildings and land only when: (1) Federal space needs cannot be 
otherwise accommodated satisfactorily in existing Government-
owned or leased space; (2) leasing proves to be more efficient 
than the construction or alteration of a Federal building; (3) 
construction or alteration is not warranted because 
requirements in the community are insufficient or are 
indefinite in scope or duration; or (4) completion of a new 
Federal building within a reasonable time cannot be assured.

                   NATIONAL TRACING CENTER EXPANSION

    The Committee urges the General Services Administration to 
work with the Bureau of Alcohol, Tobacco and Firearms to 
provide the necessary expanded facilities to meet the chronic 
space needs at the National Tracing Center in Martinsburg, WV.

                          Building Operations

Limitation on availability, 1998........................  $1,331,789,000
Limitation on availability, 1999........................   1,554,772,000
Committee recommendation................................   1,554,772,000

    The Committee recommends a limitation of $1,554,772,000 for 
building operations. The Committee recommendation is equal to 
the budget estimate. The Committee has included language to 
delay obligation of $31,095,000 for the ``Building operations'' 
account. The Committee realizes that this account is utilized 
to pay bills associated with operations of Federal office space 
and believes that the 98 percent outlay level available will be 
adequate to cover bills that come due in 1999.
    This activity provides for the operation of all Government-
owned facilities under the jurisdiction of the GSA and building 
services in GSA-leased space where the terms of the lease do 
not require the lessor to furnish such services. Services 
included in building operations are cleaning, protection, 
maintenance, payments for utilities and fuel, grounds 
maintenance, and elevator operations. Other related supporting 
services include various real property management and staff 
support activities such as space acquisition and assignment; 
the moving of Federal agencies as a result of space alterations 
in order to provide better space utilization in existing 
buildings; onsite inspection of building services and 
operations accomplished by private contractors; and various 
highly specialized contract administration support functions.
    The space, operations, and services referred to above are 
furnished by the GSA to its tenant agencies in return for 
payment of rent. Due to considerations unique to their 
operation, the GSA also provides varying levels of above-
standard services in agency headquarter facilities, including 
those occupied by the Executive Office of the President, such 
as the east and west wings of the White House.

          Newark Federal and Municipal Building Security Costs

    The Committee urges the General Services Administration to 
provide a report regarding the Federal Government's 
responsibility and cost for providing security to the Federal 
portion of the Newark Federal and municipal complex.

                 Administrative and Logistical Support

    GSA has in the past provided administrative and logistical 
support to the Olympics, Pan-American games, and other 
international events. GSA performs these duties under 
authorities of the Department of the Army on a reimbursable 
basis. The Committee has directed GSA to support the 1999 
Women's World Cup Soccer and the 1999 World Alpine Ski 
Championships in Vail, CO. GSA should continue to work with the 
Department of the Army under its authorization to provide a 
Governmentwide approach to these events. The Department of the 
Army is directed to make its authorities available to GSA 
following this approach.

                    Supply and Technology Activities

                          General Supply Fund

    The General Services Administration general supply fund 
finances, on a reimbursable basis, the following services to 
Federal agencies: direct delivery of supplies nationwide, sale 
of surplus personal property worldwide, discounted rates for 
transportation, travel, lodging, and small package mailing, and 
a federally managed contracting schedule for commercial items, 
services, and fleet management.

                       Retail Packaging Products

    The Committee directs the General Accounting Office to 
conduct a thorough study of the program, and to report its 
findings to Congress within 9 months after the date of 
enactment. The purpose of this study is to determine how GSA is 
complying with the intent of Congress that it fully recover its 
costs related to the retail packaging products program. The 
Committee directs GAO to consult with experts in the retail 
packaging industry.

                         policy and operations

                         salaries and expenses

Appropriations, 1998....................................    $107,487,000
Budget estimate, 1999...................................     106,494,000
Committee recommendation................................     106,494,000

    The Committee recommends an appropriation of $106,494,000 
for salaries and expenses for the policy and operations of the 
General Services Administration. The Committee recommendation 
equals the budget request.
    The Committee provides full funding for Governmentwide 
policy and evaluation functions associated with asset 
management activities; utilization and donation of surplus 
personal property; Governmentwide and internal responsibilities 
related to automated data development, telecommunications, and 
information systems. The Office of Governmentwide Policy shall 
work cooperatively with other agencies to provide the 
leadership necessary to achieve the most cost-effective 
solutions for the delivery of administrative services.
    The Committee has included a new provision pertaining to 
the Old Post Office at 1100 Pennsylvania Avenue in Northwest 
Washington, DC, and the future plans for that site.

                           Child Care Centers

    The Committee recommends that of the funds provided the 
Office of Policy and Operations, up to $900,000 be used to 
issue and enforce regulations requiring any entity operating a 
child care center in a facility owned or leased by an executive 
agency to (1) comply with applicable State and local licensing 
requirements related to the provision of child care and (2) 
comply with center-based accreditation standards specified by 
the Administrator, if such a regulatory program is authorized.

       Surplus Equipment to Schools and Educational Institutions

    The Committee urges the General Services Administration, in 
line with its responsibilities for the disposal of excess and 
surplus Federal personal property, to promote and foster the 
transfer of excess and surplus computer equipment directly to 
schools and to the appropriate nonprofit, community-based 
educational organizations. The GSA should communicate with 
other Federal agencies to heighten their ongoing awareness of 
the existing opportunities at both the national and local 
levels to meet the needs of the schools for such equipment.
    All Federal agencies are required, to the extent permitted 
by law and after determining that the equipment is excess to 
their needs, to give highest preference to schools and 
nonprofit organizations in the transfer of educationally useful 
Federal computer equipment. Agencies are required to inventory 
all computer equipment and identify in their inventories their 
excess and surplus equipment. Federal agencies are also 
required to report to GSA the transfer of any personal 
property, including computer equipment, made to nongovernmental 
entities such as schools.
    The Committee commends GSA and the Office of Science and 
Technology Policy for the progress that has been made 
simplifying and improving the Federal Surplus Computer Donation 
Program. One remaining hurdle for schools interested in 
participating in the program is the lack of operating systems 
on many donated computers. The Committee urges GSA and OSTP to 
work together with operating system providers to develop a 
partnership with those providers similar to the partnership 
that has already been formed with van lines to assist in 
transporting donated computers. The goal of this partnership 
would be to provide operating systems to schools which receive 
computers through the donation program.

              Federal Office Building in Colorado Springs

    The Federal building located at 1520 Willamette Ave. in 
Colorado Springs, CO, is owned by GSA and is currently leased 
to the U.S. Air Force Space Command. It is the Committee's 
understanding that Space Command is moving ahead with options 
to vacate the facility. In the event that Space Command does 
not renew its lease and the facility becomes vacant and is 
deemed surplus, the Committee urges GSA to strongly consider 
the U.S. Olympic Committee's [USOC] need for additional space 
and to give priority to the USOC's request to gain title or 
acquire the property.

                      office of inspector general

Appropriations, 1998....................................     $33,870,000
Budget estimate, 1999...................................      32,000,000
Committee recommendation................................      32,000,000

    The Committee recommends an appropriation of $32,000,000 
for the Office of Inspector General, which equals the budget 
estimate.
    The Office of Inspector General [OIG] implements in its 
entirety the provisions of the Inspector General Act.
    Consistent with the Inspector General Act, the OIG has been 
given total responsibility for the audit and investigative 
functions of the agency. Its mission is to detect and 
investigate all instances of fraud and abuse and assure that 
proper corrective action is taken. The Office is also charged 
with the responsibility for reporting on waste, inefficiency, 
and mismanagement, and making recommendations for improvement.
    Audit services provided by the OIG fall within two broad 
categories: audits of GSA contracts and internal audits, 
including inspections. Through the preaward and postaward 
auditing of GSA contracts, the OIG provides professional advice 
on accounting and financial matters related to the negotiation, 
award, administration, repricing, and settlement of contracts. 
Internal audits deal with all facets of GSA operations.
    Inspections services provide detailed technical evaluations 
of GSA operations. The investigations program provides for the 
detection and investigation of illegal or unethical activities 
against GSA by its employees, vendors doing business with the 
agency, and by other individuals or groups of individuals.
    The Inspector General Act also requires that the inspectors 
general move beyond their traditional role of detecting and 
preventing fraud, waste, and abuse, to also assume 
responsibility for promoting economy and efficiency. The GSA 
Office of Inspector General has a unique role within the 
Federal structure in that its activities affect all Federal 
agencies and several State programs. The broadened mandate 
requires increased emphasis on more effective involvement with 
other governmental agencies, identification of systemic 
problems, participation in the design of new programs, review 
of proposed legislation and regulations, and employee awareness 
programs.

           allowances and office staff for former presidents

Appropriations, 1998....................................      $2,208,000
Budget estimate, 1999...................................       2,241,000
Committee recommendation................................       2,241,000

    The Committee recommends $2,241,000 for allowances and 
office staff for former Presidents, which equals the budget 
request.
    This program is authorized by the Former Presidents Act, 
Public Law 85-745 (3 U.S.C. 102 note), of August 25, 1958, as 
amended. It provides for an annual pension paid monthly to each 
former President and each widow of a former President; 
compensation for staff assistants employed by each former 
President; and funding for office space, furnishings, and 
equipment as appropriate (defined under CG Decision B-114073, 
Mar. 8, 1961). The Supplemental Appropriations Act of October 
21, 1968, Public Law 90-608, 82 Stat. 1192, allows for travel 
and related expenses for each former President and not to 
exceed two members of his staff. Title 39 U.S.C. 3214 
authorizes a former President and widow to send all mail in the 
United States and its territories as franked mail. Under the 
Presidential Transition Act, section 3(a)(7), each former 
President may use penalty mail.
    This appropriation provides for the pensions, office 
staffs, and related expenses for former Presidents Gerald R. 
Ford, Jimmy Carter, Ronald Reagan, and George Bush and for the 
pension and postal franking privileges for the widow of former 
President Lyndon B. Johnson.
    Below is listed a detailed breakdown of the fiscal year 
1999 funding:

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

                         gsa general provisions

    The Committee has recommended the inclusion of the 
following general provisions:
    Section 401 continues a provision which authorizes GSA to 
credit accounts with certain funds received from Government 
corporations.
    Section 402 continues a provision which authorizes GSA to 
use funds for the hire of passenger motor vehicles.
    Section 403 continues a provision which authorizes GSA to 
transfer funds within the Federal buildings fund for meeting 
program requirements.
    Section 404 continues a provision which limits funding for 
courthouse construction which does not meet certain standards 
of a capital improvement plan.
    Section 405 continues a provision which provides 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 rate.
    Section 406 continues a provision which allows pilot 
information technology projects to be repaid from the 
information technology fund.
    Section 407 continues a provision which authorizes GSA to 
pay claims up to $250,000 from construction projects and 
acquisition of buildings.
    Section 408 provides for the demolition, cleanup, and 
transfer of the property at block 35 and lot 2 of block 36, 
Anchorage original townsite east addition, Anchorage, AK.
    Section 409 provides that the Administrator of General 
Services may convey, without consideration, to the city of 
Racine, WI, all right, title, and interest of the United States 
in and to a parcel of excess real property, including 
improvements thereon, that is located on 2310 Center Street, 
Racine, WI, and contains the U.S. Army Reserve Center.

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

Appropriations, 1998....................................      $1,750,000
Budget estimate, 1999...................................       2,000,000
Committee recommendation................................................

         Morris K. Udall Environmental Dispute Resolution Fund

Appropriations, 1998....................................................
Budget estimate, 1999...................................      $4,000,000
Committee recommendation................................................

    The Committee is sympathetic to the proposal to capitalize 
a fund providing for environmental conflict resolution and 
training. However, given the competing demands on limited 
funds, the Committee cannot recommend funding the initiative at 
this time.

                     Merit Systems Protection Board

                         salaries and expenses

Appropriations, 1998....................................     $25,290,000
Budget estimate, 1999...................................      25,805,000
Committee recommendation................................      25,805,000

    The Committee recommends an appropriation of $25,805,000 
for the Merit Systems Protection Board. The Committee 
recommendation is equal to the budget estimate.
    The Merit Systems Protection Board is an independent, 
quasi-judicial agency, charged by Congress with protecting the 
integrity of Federal merit systems against partisan political 
and other prohibited personnel practices, ensuring adequate 
protection for employees against abuses by agency management, 
and requiring executive branch agencies to make employment 
decisions based on individual merit. This mission is carried 
out principally by: (1) adjudicating employee appeals of agency 
personnel actions, such as removals, suspensions, and 
demotions; (2) adjudicating actions brought by the special 
counsel involving alleged abuses of the merit systems; (3) 
adjudicating actions brought under the Whistleblower Protection 
Act; (4) ordering compliance with final orders where necessary; 
(5) conducting special studies of the civil service and other 
merit systems in the executive branch to determine whether they 
are free of prohibited personnel practices; (6) analyzing and 
reporting on the significant actions of the Office of Personnel 
Management [OPM]; and (7) reviewing regulations issued by OPM 
to ensure they do not require or result in the commission of a 
prohibited personnel practice.

                               limitation

                          (transfer of funds)

Appropriations, 1998....................................      $2,430,000
Budget estimate, 1999...................................       2,430,000
Committee recommendation................................       2,430,000

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

              National Archives and Records Administration

                           operating expenses

Appropriations, 1998....................................    $205,166,500
Budget estimate, 1999...................................     230,025,000
Committee recommendation................................     221,030,000

    The Committee recommends an appropriation of $221,030,000. 
The Committee recommendation is $15,863,000 more than the 
fiscal year 1998 level. The Committee has included language to 
delay obligation of $4,277,000.
    The Committee recommends $6,220,000 for adjustments for 
mandatory cost increases and $1,226,000 for records center 
reimbursement planning, a one-time cost. In addition, the 
Committee has provided funding to promote records management, 
electronic records management, as well as upgrade of NARANet 
life cycle systems and preservation, storage, and duplication 
of nationwide nontextual records and military records holdings 
at risk. The Committee notes that the administration's request 
includes $5,411,000 for year 2000 conversion costs. The 
Committee has provided an additional emergency appropriation to 
address these costs.
    The National Archives and Records Administration became an 
independent agency on April 1, 1985. This appropriation 
provides for basic operations dealing with management of the 
Government's archives and records, operation of Presidential 
libraries, grants for historical publications, and for the 
review for declassification of all security classified 
information.
    Records center.--The records center activity provides for 
the accessioning, storage, reference service, and disposal of 
the semiactive and noncurrent records of Federal agencies 
through a nationwide system of 14 records centers. Significant 
savings result from use of low-cost records storage and the 
efficient and timely disposal of nonpermanent records.
    Archives and related services.--This activity provides for 
selecting, preserving, describing, and making available to the 
general public, scholars, and Federal agencies, the permanently 
valuable historical records of the Federal Government and the 
historical material in Presidential libraries, related 
publications and exhibit programs, and the appraisal of all 
Federal records. It also provides for the publication of the 
Federal Register and Code of Federal Regulations, the U.S. 
Statutes at Large, Presidential documents, and for a program to 
improve the quality of regulations and the public's access to 
them. It also provides for the systematic review of all 
classified records in the National Archives which are over 30 
years old, except intelligence and cryptological materials 
dated after 1945, which are to be reviewed when 50 years old.
    Program direction.--This activity provides for general 
direction and program support for all programs assigned to the 
National Archives and Records Administration [NARA]. Direction 
is provided by the Archivist, his staff, and the Office of 
Management and Administration.

              archives facilities repairs and restoration

Appropriations, 1998....................................     $14,650,000
Budget estimate, 1999...................................      10,450,000
Committee recommendation................................      11,325,000

    The Committee recommends an appropriation of $11,325,000. 
The Committee has provided $2,000,000 for a renovation concept 
design for the National Archives Building and $4,000,000 for 
design and construction of encasements for the Charters of 
Freedom. The Committee has included language to delay the 
obligation of $2,000,000.
    This account provides for the repair, alteration, and 
improvement of the Archives facilities and Presidential 
libraries nationwide, and for providing adequate storage for 
archival holdings nationwide. It will better enable the 
National Archives to provide adequate storage for holdings, to 
maintain its facilities in proper condition for public 
visitors, researchers, and employees in NARA facilities, and to 
maintain the structural integrity of the buildings.
    The Committee is concerned about the impending space crisis 
faced by the National Archives and Records Administration. 
While the Committee is providing sufficient funds to support 
the immediate needs dictated by the dramatic increase in 
electronic records and all of the attendant problems associated 
with the storage and access to these vital resources, we are 
aware that the records being accessioned by NARA are still 
largely paper records. NARA operates 2 archival facilities in 
the Washington area, 17 regional records facilities, and 9 
Presidential libraries, spread nationwide from Atlanta to 
Denver to Anchorage. These buildings house more than 20 million 
cubic feet of documentary material. That material has increased 
in volume by more than one-third just in the past decade, and 
we have been adding more than one-half million cubic feet of 
mostly paper-based records per year.
    The National Archives and Records Administration is 
currently conducting a study of its space needs into the next 
millennium. The Committee applauds this effort and looks 
forward to working with the agency on priorities and strategies 
to ensure long-term, appropriate space for both the temporary 
and permanently valuable records of our national life.
    The Committee recognizes that among the immediate 
priorities faced by NARA is inadequate space in the Anchorage 
facility to accommodate the permanent records currently being 
held by Federal agencies in Alaska. In order to determine the 
space needs for Anchorage into the next millennium and to begin 
the design process on either an expanded or new facility, the 
Committee recommends $875,000 within the repairs and 
restoration appropriation, to remain available until expended.

        National Historical Publications and Records Commission

                             grants program

Appropriations, 1998....................................      $5,500,000
Budget estimate, 1999...................................       6,000,000
Committee recommendation................................      11,000,000

    The Committee recommends an appropriation of $11,000,000.
    The National Historical Publications and Records Commission 
[NHPRC] reviews and recommends project grants to Federal and 
State governments and private nonprofit institutions, chiefly 
universities and research libraries. It makes plans, estimates, 
and recommendations for the publication of important historical 
documents and works with various public and private 
institutions in collecting, editing, and publishing papers 
significant to the history of the United States. The Commission 
is composed of members appointed by, and representing, the 
President, Congress, Supreme Court, executive agencies, and 
historical and archival societies.

                        Founding Fathers' Papers

    The Committee is pleased with the decision by the National 
Historical Publications and Records Commission to restore top 
level priority in its strategic plan for projects to publish 
the papers of America's Founding Fathers.

                       Center for Jewish History

    The Committee has provided an additional $5,000,000 to the 
NHPRC for a grant to the Center for Jewish History to assist in 
the preservation and presentation of Jewish history and 
culture. The funds would be used to help compile records of 
Judaic history and digitize their archives for worldwide use on 
the Internet. This is a vast undertaking, which will allow 
researchers, students, and all interested persons access to the 
largest Jewish archive in the world.

                      Office of Government Ethics

                         salaries and expenses

Appropriations, 1998....................................      $8,265,000
Budget estimate, 1999...................................       8,492,000
Committee recommendation................................       8,492,000

    The Committee recommends an appropriation of $8,492,000 for 
salaries and expenses of the Office of Government Ethics in 
fiscal year 1999. This amount is equal to the budget request.
    Public Law 100-598 authorized the establishment of the 
Office of Government Ethics as an independent executive branch 
agency separate and apart from the Office of Personnel 
Management beginning October 1, 1989.
    The Office of Government Ethics functions primarily in six 
areas, pursuant to the Ethics in Government Act of 1978. Those 
areas are:
  --Regulatory authority for conflict of interest and 
        postemployment statutes, standards of conduct, and 
        financial disclosure programs throughout the executive 
        branch;
  --Public financial disclosure review and certification for 
        all advice and consent Presidential appointees, and the 
        monitoring of ethics agreements which are executed 
        incident to that review to prevent ethics violations;
  --Education and training to promote understanding among 
        agency ethics officials and employees, as well as the 
        general public;
  --Guidance and interpretation concerning the conflict of 
        interest statutes, standards of conduct, and financial 
        disclosure, through advisory opinions, telephone 
        advice, and consultation with agency ethics officials;
  --Enforcement by monitoring and auditing agency ethics 
        programs, and ordering corrective action where 
        appropriate; and
  --Evaluation of the effectiveness of ethics laws and 
        regulations, as well as agency implementation.

                     Office of Personnel Management

                         salaries and expenses

Appropriations, 1998....................................     $85,350,000
Budget estimate, 1999...................................      85,350,000
Committee recommendation................................      85,350,000

    The Committee recommends an appropriation of $85,350,000 
for the salaries and expenses of the Office of Personnel 
Management. The Committee recommendation equals the budget 
estimate.
    The Office of Personnel Management's primary 
responsibilities include the Employment Service, Executive 
Resource, Investigations Service, Human Resources Systems 
Service, and the Merit Systems oversight and effectiveness 
programs. OPM also has administrative responsibility for the 
President's Commission on White House Fellowships, the Federal 
Prevailing Rate Advisory Committee, and parts of the Voting 
Rights Program.
    The Committee has funded the initiatives requested by the 
administration, as outlined in the budget justification, plus 
the functions and personnel transferred from the General 
Accounting Office, subsequent to enactment of Public Law 104-
53.

                Health Promotion and Disease Prevention

    The Committee again instructs OPM to expend up to $300,000 
in fiscal year 1999 to continue and expand efforts to ensure 
that Federal employees and their families have ready access to 
health promotion and disease prevention activities. The 
Committee continues to be aware that the U.S. prevention 
services task force has reported that substituting behavioral 
interventions in ways to maintain good health could be more 
likely to reduce morbidity and mortality in this country than 
any other category of clinical intervention. The Committee 
expects the OPM to continue to work with the University of 
Hawaii to utilize its unique expertise in developing culturally 
sensitive model health programs for minority/ethnic populations 
of Hawaii as a precursor to Governmentwide application. With 
regard to previous years' deliverables, the Committee also 
expects the university and OPM to work together to resolve any 
outstanding issues by March 31, 1999.

                           Voting Rights Act

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

                               limitation

                          (transfer of funds)

Limitation, 1998........................................     $91,236,000
Budget estimate, 1999...................................      91,236,000
Committee recommendation................................      91,236,000

    The Committee recommends a limitation of $91,236,000. This 
amount equals the budget request.
    These funds will be transferred from the appropriate trust 
funds of the Office of Personnel Management to cover 
administrative expenses for the retirement and insurance 
programs.

                      Office of Inspector General

                         salaries and expenses

Appropriations, 1998....................................        $960,000
Budget estimate, 1999...................................         960,000
Committee recommendation................................         960,000

    The Committee recommends an appropriation of $960,000 for 
salaries and expenses of the Office of Inspector General in 
fiscal year 1999. This amount equals the budget estimate.
    The Office of Inspector General was established as a 
statutory entity under the Inspector General Act Amendments of 
1988, Public Law 100-504, effective April 16, 1989. The Office 
of Inspector General is charged with establishing policies for 
conducting and coordinating efforts which promote economy, 
efficiency, and integrity in the Office of Personnel 
Management's activities which prevent and detect fraud, waste, 
and abuse in the agency's programs. Furthermore, as a means of 
assuring that inspector general offices maintain the ability to 
function independently within the overall structure of their 
agencies, the 1988 legislation required a direct semiannual 
reporting structure among the inspector general and the agency 
head and Congress and allowed inspectors general to perform a 
number of internal management functions, such as budget, 
personnel, and procurement, separate and apart from the 
agencies' existing systems. The Office of Inspector General 
carries out its programmatic mandate in three principal 
operational areas: audits and inspections of OPM activities and 
operations; investigations; and followup and reporting.

               (limitation on transfer from trust funds)

Limitation, 1998........................................      $8,645,000
Budget estimate, 1999...................................       9,145,000
Committee recommendation................................       9,145,000

    The Committee recommends a limitation on transfers from the 
trust funds in support of the Office of Inspector General 
activities totaling $9,145,000 for fiscal year 1999, as 
requested. This amount equals the budget estimate.

      government payment for annuitants, employees health benefits

Appropriations, 1998....................................  $4,338,000,000
Budget estimate, 1999...................................   4,632,000,000
Committee recommendation................................   4,632,000,000

    The Committee recommends an appropriation of $4,632,000,000 
for Government payments for annuitants, employees health 
benefits. The Committee recommendation equals the budget 
estimate.
    This appropriation funds the Government's share of health 
benefit costs for annuitants and survivors who no longer have 
an agency to contribute the employer's share. The Office of 
Personnel Management requests the appropriation necessary to 
pay this contribution to the employees health benefits fund and 
the retired employees health benefits fund. These revolving 
trust funds are available for: (1) the payment of subscription 
charges to approved carriers for the cost of health benefits 
protection; (2) contributions for qualified retired employees 
and survivors who carry private health insurance under the 
Retired Employees Health Benefits Program; and (3) the payment 
of expenses incurred by the Office of Personnel Management in 
the administration of these programs.
    Public Law 93-246 provides for Government contributions to 
enrollees in the Employees Health Benefits Program equal to 60 
percent of the unweighted average of the high-option premiums 
of six large plans. The total obligations for fiscal year 1995 
reflect the use of payments made by the U.S. Postal Service to 
the employees health benefits fund to finance the cost of the 
Government's contribution for annuitants health benefits as 
provided in Public Law 100-203. In addition, Public Law 99-272 
provides that the Government contribution for health benefits 
for individuals who first become annuitants by reason of 
retirement from employment with the U.S. Postal Service on or 
after October 1, 1986, shall be paid by the U.S. Postal 
Service.
    This appropriation also provides financing for the 
Government's share of health benefit costs for annuitants and 
survivors covered under the Retired Employees Health Benefits 
Program. Public Law 96-156 provides for increased Government 
contributions toward the subscription charge for health 
coverage, tied to increases in the cost of part B (medical) of 
Medicare, for those annuitants who retired prior to July 1, 
1960.

       government payment for annuitants, employee life insurance

Appropriations, 1998....................................     $32,000,000
Budget estimate, 1999...................................      35,000,000
Committee recommendation................................      35,000,000

    The Committee recommends an appropriation of $35,000,000 
for the Government payment for annuitants, employee life 
insurance in fiscal year 1999. This amount equals the budget 
request.
    Public Law 96-427, the Federal Employees' Group Life 
Insurance Act of 1980 requires that all employees under the age 
of 65 who separate from the Federal Government for purposes of 
retirement on or after January 1, 1990, continue to make 
contributions toward their basic life insurance coverage after 
retirement until they reach the age of 65. These retirees will 
contribute two-thirds of the cost of the basic life insurance 
premium, identical to the amount contributed by active Federal 
employees for basic life insurance coverage. As with the active 
Federal employees, the Government is required to contribute 
one-third of the cost of the premium for basic coverage. OPM, 
acting as the payroll office on behalf of Federal retirees, has 
requested, and the Committee has provided, the funding 
necessary to make the required Government contribution 
associated with annuitants' postretirement life insurance 
coverage.

        payment to civil service retirement and disability fund

Appropriations, 1998....................................  $8,336,000,000
Budget estimate, 1999...................................   8,682,297,000
Committee recommendation................................   8,682,297,000

    The Committee recommends an appropriation of $8,682,297,000 
for payment to the civil service retirement and disability 
fund. The Committee recommendation equals the budget estimate.
    The civil service retirement and disability fund was 
established in 1920 to administer the financing and payment of 
annuities to retired Federal employees and their survivors. The 
fund covers the operation of the Civil Service Retirement 
System and the Federal Employees' Retirement System.
    The payment to the civil service retirement and disability 
fund consists of an appropriation and a permanent indefinite 
authorization to pay the Government's share of retirement costs 
as defined in the Civil Service Retirement Amendments of 1969 
(Public Law 91-93), the Federal Employees' Retirement System 
Act of 1986 (Public Law 99-335), and the Civil Service 
Retirement Spouse Equity Act of 1985 (Public Law 98-615). The 
payment is made directly from the general fund of the U.S. 
Treasury, and is in addition to appropriated funds that will be 
contributed from agency budgets in fiscal year 1999.
    Public Law 91-93 provides for an annual appropriation to 
amortize, over a 30-year period, all increases in Civil Service 
Retirement System costs resulting from acts of Congress 
granting new or liberalized benefits, extensions of coverage, 
or pay raises. However, the effects of cost-of-living 
adjustments are not amortized. The total current appropriation 
for fiscal year 1999 is the sum of the annual payments 
authorized since the law was enacted in 1969 plus the estimated 
payment resulting from assumed pay raises totaling 2.8 percent 
in January 1998. It also includes funding for the annuities of 
persons employed on the construction of the Panama Canal and 
widows of former Lighthouse Service employees. The total fiscal 
year 1999 current appropriation request represents an increase 
of $315,044,000 from the amount provided in fiscal year 1998 
primarily due to increases in employees' pay.
    Public Law 91-93 also provides permanent, indefinite 
authorization for the Secretary of the Treasury to transfer, on 
an annual basis, an amount equal to 5 percent interest on the 
civil service retirement and disability fund's current unfunded 
liability, calculated based on static economic assumptions, and 
annuity disbursements attributable to credit for military 
service. It also includes a payment in accordance with Public 
Law 98-615 which provides for the Secretary of the Treasury to 
transfer an amount equal to the annuities granted to eligible 
former spouses of annuitants who died between September 1978 
and May 1985, and who did not elect survivor coverage.

                       Office of Special Counsel

                         salaries and expenses

Appropriations, 1998....................................      $8,450,000
Budget estimate, 1999...................................       8,720,000
Committee recommendation................................       8,720,000

    The Committee recommends an appropriation of $8,720,000 for 
the Office of Special Counsel.
    The Office of the Special Counsel is charged with 
enforcement of certain provisions of the Civil Service Reform 
Act of 1978 (Public Law 95-454 and 5 U.S.C. 1204-1208). The 
primary functions of the office are: (1) to investigate and, if 
appropriate, prosecute before the Merit Systems Protection 
Board prohibited personnel practices and activities prohibited 
by other civil service law, rule, or regulation; (2) to 
investigate and, if appropriate, prosecute prohibited political 
activities on the part of Federal and covered State and local 
employees; and (3) to provide employees a protected means of 
disclosing information concerning wrongdoing in Federal 
agencies with assurance that the confidentiality of the 
discloser will be maintained and that appropriate action will 
be taken.
    The statute requires OSC to investigate and, if warranted, 
prosecute: all allegations of prohibited personnel practices, 
including reprisal for protected disclosures of information; 
prohibited political activity; arbitrary or capricious 
withholding of information under the Freedom of Information 
Act; involvement of any employee in any prohibited 
discrimination found by any court or appropriate administrative 
authority; and any other activity prohibited by civil service 
law, rule, or regulation. OSC also provides a safe channel for 
disclosure of information evidencing waste, fraud, and abuse 
and referral of such information to agencies.

                             U.S. Tax Court

                         salaries and expenses

Appropriations, 1998....................................     $33,921,000
Budget estimate, 1999...................................      34,490,000
Committee recommendation................................      32,765,000

    The Committee recommends an appropriation of $32,765,000 
for the U.S. Tax Court.
    The U.S. Tax Court is an independent judicial body in the 
legislative branch under article I of the Constitution of the 
United States. The court is composed of a chief judge and 18 
judges. Decisions by the court are reviewable by the U.S. 
Courts of Appeals and, if certiorari is granted, by the Supreme 
Court.
    In their judicial duties the judges are assisted by senior 
judges, who participate in the adjudication of regular cases, 
and by special trial judges, who hear small tax cases and 
certain regular cases assigned to them by the chief judge.
    The court conducts trial sessions throughout the United 
States, including Hawaii and Alaska.
    The U.S. Tax Court hears and decides cases involving 
Federal income, estate and gift tax deficiencies, and excise 
taxes relating to public charities, private foundations, 
qualified pension plans, real estate investment trusts, and 
windfall profit tax on domestic crude oil. It also renders 
declaratory judgments regarding the qualification or continuing 
qualification (including revocations of rulings on the 
exemptions) of retirement plans.
    The Tax Court has jurisdiction to render declaratory 
judgments with respect to exempt organization status 
determinations pursuant to section 501(c)(3), Internal Revenue 
Code, and to enter declaratory judgments on the tax treatment 
of interest on proposed issues of Government obligations. In 
addition, the court has jurisdiction over actions to restrain 
disclosure and to obtain additional disclosure with respect to 
public inspection of written determinations issued by the 
Internal Revenue Service, and actions to compel the disclosure 
of the identity of third-party contacts relating to written 
determinations made by the Internal Revenue Service.
    For 1999, the court proposes a trial program of 340 weeks 
consisting of 150 weeks of regular trial sessions and 90 weeks 
of small tax case sessions. In addition, the court plans to 
schedule special sessions for lengthy trials consisting of 
approximately 100 weeks.

                STATEMENT CONCERNING GENERAL PROVISIONS

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

                      TITLE V--GENERAL PROVISIONS

                                This Act

    Section 501 continues a provision which limits the use of 
appropriated funds to the current fiscal year.
    Section 502 continues a provision regarding consultant 
services.
    Section 503 continues a provision which prohibits the use 
of funds to engage in activities which would prohibit in the 
enforcement of section 307 of the 1930 Tariff Act.
    Section 504 continues a provision which prohibits the 
transfer of control over the Federal Law Enforcement Training 
Center.
    Section 505 continues the provision concerning the 
employment rights of Federal employees who return to their 
civilian jobs after assignment with the Armed Forces.
    Section 506 continues a provision which requires compliance 
with the Buy American Act.
    Section 507 continues a provision which states the sense of 
Congress regarding notice and purchase of American-made 
products.
    Section 508 continues a provision which prohibits an 
individual from eligibility for Government contracts if a court 
determines that individual has intentionally fraudulently 
affixed a ``Made in America'' label to any product non-American 
made.
    Section 509 continues a provision which provides up to 50 
percent of unobligated balances may remain available for 
authorized purposes in compliance with reprogramming 
guidelines.
    Section 510 continues a provision which prohibits the 
Executive Office of the President from using appropriated funds 
to request FBI background investigation reports.

 TITLE VI--GENERAL PROVISIONS, DEPARTMENTS, AGENCIES, AND CORPORATIONS

    The Committee has recommended the inclusion of the 
following general provisions:
    Section 601 continues a provision authorizing agencies to 
pay travel costs of the families of Federal employees on 
foreign duty to return to the United States in the event of 
death or a life threatening illness of an employee.
    Section 602 continues a provision requiring agencies to 
administer a policy designed to ensure that all of its 
workplaces are free from the illegal use of controlled 
substances.
    Section 603 continues a provision authorizing reimbursement 
for travel, transportation, and subsistence expenses incurred 
for training classes, conferences, or other meetings in 
connection with the provision of child care services to Federal 
employees.
    Section 604 continues a provision regarding price 
limitations on vehicles to be purchased by the Federal 
Government.
    Section 605 continues a provision allowing funds made 
available to agencies for travel to also be used for quarters 
allowances and cost-of-living allowances.
    Section 606 continues a provision prohibiting the 
Government, with certain specified exceptions, from employing 
non-U.S. citizens whose posts of duty would be in the 
continental United States.
    Section 607 continues a provision ensuring that agencies 
will have authority to pay the General Services Administration 
bills for space renovation and other services.
    Section 608 continues a provision allowing agencies to 
finance the costs of recycling and waste prevention programs 
with proceeds from the sale of materials recovered through such 
programs.
    Section 609 continues a provision providing that funds may 
be used to pay rent and other service costs in the District of 
Columbia.
    Section 610 continues a provision prohibiting the use of 
appropriated funds to pay the salary of any nominee after the 
Senate voted not to approve the nomination.
    Section 611 continues a provision precluding interagency 
financing of groups absent prior statutory approval.
    Section 612 continues a provision authorizing the Postal 
Service to employ guards.
    Section 613 continues a provision prohibiting the use of 
appropriated funds for enforcing regulations disapproved in 
accordance with the applicable law of the United States.
    Section 614 continues a provision limiting the pay 
increases of certain prevailing rate employees.
    Section 615 continues a provision limiting the amount that 
can be used for redecoration of offices under certain 
circumstances.
    Section 616 modifies a continuing provision prohibiting the 
expenditure of appropriated funds for the acquisition of 
additional law enforcement training facilities without the 
advance approval of the Committees on Appropriations to allow 
the Federal Law Enforcement Training Center to obtain temporary 
use of additional facilities for training which cannot be 
accommodated in existing Center facilities.
    Section 617 continues a provision permitting interagency 
funding of national security and emergency preparedness 
telecommunications initiatives, which benefit multiple Federal 
departments, agencies, and entities.
    Section 618 continues a provision requiring agencies to 
certify that a schedule C appointment was not created solely or 
primarily to detail the employee to the White House.
    Section 619 continues a provision requiring agencies to 
administer a policy designed to ensure that all of its 
workplaces are free from discrimination and sexual harassment.
    Section 620 continues a provision prohibiting the use of 
appropriated funds for travel expenses not directly related to 
official governmental duties.
    Section 621 continues a provision requiring the President 
to certify that persons responsible for administering the Drug 
Free Workplace Program are not themselves the subject of random 
drug testing.
    Section 622 continues and modifies a provision which 
prohibits training not directly related to the performance of 
official duties.
    Section 623 continues a provision prohibiting the 
expenditure of funds for the implementation of agreements in 
certain nondisclosure policies unless certain provisions are 
included in the policies.
    Section 624 continues a provision which prohibits use of 
appropriated funds for publicity or propaganda designed to 
support or defeat legislation pending before Congress.
    Section 625 continues a provision which requires the Office 
of Management and Budget to do an accounting statement and 
associated report on the cumulative costs and benefits of 
Federal regulatory programs.
    Section 626 continues a provision which prohibits use of 
appropriated funds by an agency to provide Federal employees 
home address to labor organizations.
    Section 627 continues a provision which authorizes the 
Secretary of the Treasury to establish standards for explosives 
detection canines.
    Section 628 continues a provision which prohibits the use 
of appropriated funds to provide nonpublic information such as 
mailing or telephone lists to any person or organization 
outside of the Government.
    Section 629 continues a provision which authorizes 
interagency financing for the National Bioethics Advisory 
Commission.
    Section 630 continues a provision which prohibits the use 
of appropriated funds for publicity or propaganda purposes 
within the United States not authorized by Congress.
    Section 631 continues a provision which prohibits the use 
of appropriated funds in this or any other act to acquire 
information technology which does not comply with part 39.106 
(year 2000 compliance) of the Federal acquisition regulations.
    Section 632 continues a provision which prohibits the U.S. 
Customs Service from allowing the importation of products 
produced by forced or indentured child labor.
    Section 633 continues a provision which prohibits the use 
of funds to prevent Federal employees from communicating with 
Congress or to take disciplinary or personnel actions against 
employees for such communication.
    Section 634 is a new provision that directs the U.S. 
Marshals Service to conduct a quarterly threat assessment on 
the Director of the Office of National Drug Control Policy upon 
which the Director's security needs will be based.
    Section 635 expands section 636 of the Treasury, Postal 
Service, and General Government Appropriations Act for Fiscal 
Year 1997 (Public Law 104-208) to include the judicial branch. 
This provision will authorize the use of judiciary funds to 
reimburse judges, probation and pretrial officers, management 
officials, and supervisors for up to one-half of the costs of 
professional liability insurance.
    Section 636 is a new provision that would permit 
interagency funding of the National Science Technology Council 
[NSTC]. The NSTC, which is overseen by the Office of Science 
and Technology Policy, helps coordinate science and technology 
matters across the Federal Government. Many of NSTC's 
committees require multiagency funding for support of 
operations.
    Section 637 is a new provision that provides additional 
flexibility relating to the FTS 2000 contract.
    Section 638 is a new provision which codifies an existing 
Federal regulation relating to official duties.
    Section 639 is 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 640 continues and modifies a provision which 
prohibits the use of funds for paying Sunday premium pay to an 
employee unless the work was actually performed.
    Section 641 is a new provision to provide monetary relief 
to importers whose legally purchased goods were denied entry 
upon arrival because of a change in official policy.
    Section 642 is a new provision to prohibit acquisition of 
products produced by forced or indentured child labor.
    Section 643 is a new provision regarding pay for Federal 
employees.

  COMPLIANCE WITH PARAGRAPH 7, RULE XVI, OF THE STANDING RULES OF THE 
                                 SENATE

    Paragraph 7 of rule XVI requires that Committee reports on 
general appropriations bills identify each Committee amendment 
to the House bill ``which proposes an item of appropriation 
which is not made to carry out the provisions of an existing 
law, a treaty stipulation, or an act or resolution previously 
passed by the Senate during that session.''
    The Committee recommends the following appropriations which 
lack authorization:
    Department of the Treasury:
      Departmental Offices:
                  Salaries and expenses, $120,671,000
                  Automation enhancements, $28,990,000
                  Treasury Building and annex, repair and 
                restoration, $27,000,000
      Financial Crimes Enforcement Network, salaries and 
        expenses, $23,670,000
      Federal Law Enforcement Training Center:
                  Salaries and expenses, $66,251,000
                  Acquisition, construction, improvements, and 
                related expenses, $15,360,000
      Financial Management Service, salaries and expenses, 
        $196,490,000
      Bureau of Alcohol, Tobacco and Firearms:
                  Salaries and expenses, $529,489,000
      U.S. Customs Service:
                  Salaries and expenses, $1,630,273,000
                  Operation and maintenance, air and marine 
                interdiction programs, $98,488,000
      Internal Revenue Service:
                  Processing, assistance, and management, 
                $3,077,353,000
                  Tax law enforcement, $3,164,399,000
                  Information systems, $1,329,486,000
      Executive Office of the President:
                  The White House Office, salaries and 
                expenses, $52,344,000
                  Executive Residence at the White House, 
                operating expenses, $8,691,000
                  Special Assistance to the President, salaries 
                and expenses, $3,512,000
                  Council of Economic Advisers, salaries and 
                expenses, $3,666,000
                  National Security Council, salaries and 
                expenses, $6,806,000
                  Office of Administration, salaries and 
                expenses, $29,140,000
                  Office of Management and Budget, salaries and 
                expenses, $60,617,000
      Office of National Drug Control Policy, salaries and 
        expenses, $48,042,000
      Counterdrug Technology Assessment Center, salaries and 
        expenses, $30,100,000
      Counternarcotics research and development projects, 
        $1,000,000
      High-intensity drug trafficking areas, $171,007,000
                  State and local drug control activities, 
                $90,630,000
                  Federal agency drug control activities, 
                $80,370,000
      Federal Election Commission, salaries and expenses, 
        $33,700,000
      Federal Labor Relations Authority, salaries and expenses, 
        $22,586,000
      General Services Administration, Federal buildings fund, 
        limitations on availability of revenue:
                Repairs and alterations, $668,031,000
                        Nationwide:
                                Chlorofluorcarbons program, 
                                $25,000,000
                                Basic repairs and alterations, 
                                $344,236,000
      Policy and operations, salaries and expenses, 
        $106,494,000
      Merit Systems Protection Board, salaries and expenses, 
        $25,805,000
      National Historical Publications and Records Commission, 
        $11,000,000
      Office of Personnel Management, health promotion and 
        disease prevention activities, $300,000
      Office of Special Counsel, salaries and expenses, 
        $8,720,000
      U.S. Tax Court, salaries and expenses, $32,765,000

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

    Pursuant to paragraph 7(c) of rule XXVI, the Committee 
ordered reported en bloc, S. 2307, an original Transportation 
and related agencies appropriations bill, 1999, and S. 2312, an 
original Treasury and General Government appropriations bill, 
1999, both subject to amendment and both subject to appropriate 
scorekeeping, by a recorded vote of 28-0, a quorum being 
present. The vote was as follows:
        Yeas                          Nays
Chairman Stevens
Mr. Cochran
Mr. Specter
Mr. Domenici
Mr. Bond
Mr. Gorton
Mr. McConnell
Mr. Burns
Mr. Shelby
Mr. Gregg
Mr. Bennett
Mr. Campbell
Mr. Craig
Mr. Faircloth
Mrs. Hutchison
Mr. Byrd
Mr. Inouye
Mr. Hollings
Mr. Leahy
Mr. Bumpers
Mr. Lautenberg
Mr. Harkin
Ms. Mikulski
Mr. Reid
Mr. Kohl
Mrs. Murray
Mr. Dorgan
Mrs. Boxer

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

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

               TITLE 28--JUDICIARY AND JUDICIAL PROCEDURE

                    PART IV--JURISDICTION AND VENUE

        CHAPTER 97--JURISDICTIONAL IMMUNITIES OF FOREIGN STATES

Sec. 1606. Extent of liability

    As to any claim for relief with respect to which a foreign 
state is not entitled to immunity under section 1605 or 1607 of 
this chapter, the foreign state shall be liable in the same 
manner and to the same extent as a private individual under 
like circumstances; but a foreign state except for an agency or 
instrumentality thereof shall not be liable for punitive 
damages, except any action under section 1605(a)(7) or 1610(f); 
if, however, in any case wherein death was caused, the law of 
the place where the action or omission occurred provides, or 
has been construed to provide, for damages only punitive in 
nature, the foreign state shall be liable for actual or 
compensatory damages measured by the pecuniary injuries 
resulting from such death which were incurred by the persons 
for whose benefit the action was brought.

           *       *       *       *       *       *       *


Sec. 1610. Exceptions to the immunity from attachment or execution

    (a) * * *

           *       *       *       *       *       *       *

    (e) The vessels of a foreign state shall not be immune from 
arrest in rem, interlocutory sale, and execution in actions 
brought to foreclose a preferred mortgage as provided in 
section 1605(d).
    (f)(1)(A) Notwithstanding any other provision of law, 
including but not limited to section 208(f) of the Foreign 
Missions Act (22 U.S.C. 4308(f)), and except as provided in 
subparagraph (B), any property with respect to which financial 
transactions are prohibited or regulated pursuant to section 
5(b) of the Trading with the Enemy Act (50 U.S.C. App. 5(b)), 
section 620(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2370(a)), sections 202 and 203 of the International Emergency 
Economic Powers Act (50 U.S.C. 1701-1702), or any other 
proclamation, order, regulation, or license issued pursuant 
thereto, shall be subject to execution or attachment in aid of 
execution of any judgment relating to a claim for which a 
foreign state (including any agency or instrumentality or such 
state) claiming such property is not immune under section 
1605(a)(7).
    (B) Subparagraph (A) shall not apply if, at the time the 
property is expropriated or seized by the foreign state, the 
property has been held in title by a natural person or, if held 
in trust, has been held for the benefit of a natural person or 
persons.
    (2)(A) At the request of any party in whose favor a 
judgment has been issued with respect to a claim for which the 
foreign state is not immune under section 1605(a)(7), the 
Secretary of the Treasury and the Secretary of State shall 
fully, promptly, and effectively assist any judgment creditor 
or any court that has issued any such judgment in identifying, 
locating, and executing against the property of that foreign 
state or any agency or instrumentality of such state.
    (B) In providing such assistance, the Secretaries--
          (i) may provide such information to the court under 
        seal; and
          (ii) shall provide the information in a manner 
        sufficient to allow the court to direct the United 
        States Marshall's office to promptly and effectively 
        execute against that property.

           *       *       *       *       *       *       *


Omnibus Consolidated Appropriations Act, 1997, Public Law 104-208

           *       *       *       *       *       *       *


    Sec. 636. * * *

           *       *       *       *       *       *       *

    (b) Qualified Employee.--For purposes of this section, the 
term ``qualified employee'' means an agency employee whose 
position is that of--
          (1) a law enforcement officer; or
          (2) a supervisor or management official.
  (c) Definitions.--For purposes of this section--
          (1) the term ``agency'' means an Executive agency, as 
        defined by section 105 of title 5, United States Code, 
        any agency or court in the Judicial Branch, and any 
        agency of the Legislative Branch of Government 
        including any office or committee of the Senate or the 
        House of Representatives;
          (2) the term ``law enforcement officer'' means an 
        employee, the duties of whose position are primarily 
        the investigation, apprehension, [prosecution, or 
        detention] prosecution, detention, or supervision of 
        individuals suspected or convicted of offenses against 
        the criminal laws of the United States, including any 
        law enforcement officer under section 8331(20) or 
        8401(17) of such title 5, or under section 4823 of 
        title 22, United States Code;
          (3) the terms ``supervisor'' and ``management 
        official'' have the respective meanings given them by 
        section 7103(a) of such title 5, and, with regard to 
        the Judicial Branch, mean a justice or judge of the 
        United States as defined in 28 U.S.C. 451 in regular 
        active service or retired from regular active service, 
        other judicial officers as authorized by the Judicial 
        Conference of the United States, and supervisors and 
        managers within the Judicial Branch as authorized by 
        the Judicial Conference of the United States, and
          (4) the term ``professional liability insurance'' 
        means insurance which provides coverage for--
                  (A) legal liability for damages due to 
                injuries to other persons, damage to their 
                property, or other damage or loss to such other 
                persons (including the expenses of litigation 
                and settlement) resulting from or arising out 
                of any tortious act, error, or omission of the 
                covered individual (whether common law, 
                statutory, or constitutional) while in the 
                performance of such individual's official 
                duties as a qualified employee; and
                  (B) the cost of legal representation for the 
                covered individual in connection with any 
                administrative or judicial proceeding 
                (including any investigation or disciplinary 
                proceeding) relating to any act, error, or 
                omission of the covered individual while in the 
                performance of such individual's official 
                duties as a qualified employee, and other legal 
                costs and fees relating to any such 
                administrative or judicial proceeding.
  (d) Applicability.--The amendments made by this section shall 
take effect on the date of the enactment of this Act and shall 
apply thereafter.

           *       *       *       *       *       *       *


 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 its 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 earlier, subsection (a) shall 
continue to apply to the use of the funds appropriated by this 
or any other Act.

                                            BUDGETARY IMPACT OF BILL                                            
  PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS  
                                                     AMENDED                                                    
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                                  Budget authority               Outlays        
                                                             ---------------------------------------------------
                                                               Committee    Amount of    Committee    Amount of 
                                                               allocation      bill      allocation      bill   
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee allocations                                                    
 to its subcommittees of amounts in 1999: Subcommittee on                                                       
 Treasury and General Government:                                                                               
    Nondefense discretionary................................       13,071       13,214       11,940   \1\ 12,073
    Violent crime reduction fund............................          132          132          129          125
    Mandatory...............................................       13,439       13,439       13,439       13,439
Projections of outlays associated with the recommendation:                                                      
    1999....................................................  ...........  ...........  ...........   \2\ 22,937
    2000....................................................  ...........  ...........  ...........        2,080
    2001....................................................  ...........  ...........  ...........          536
    2002....................................................  ...........  ...........  ...........          351
    2003 and future year....................................  ...........  ...........  ...........          277
Financial assistance to State and local governments for 1999                                                    
 in bill....................................................           NA  ...........           NA  ...........
----------------------------------------------------------------------------------------------------------------
\1\ Includes outlays from prior-year budget authority.                                                          
\2\ Excludes outlays from prior-year budget authority.                                                          
                                                                                                                
NA: Not applicable.                                                                                             
                                                                                                                
Note.--Consistent with the funding recommended in the bill for earned income tax credit compliance and in       
  accordance with section 314(b)(5) of the Congressional Budget Act of 1974, as amended, the Committee          
  anticipates that the Budget Committee will file a revised section 302(a) allocation for the Committee on      
  Appropriations reflecting an upward adjustment of $243,000,000 in budget authority and $234,000,000 in        
  outlays.                                                                                                      


  COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 1998 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL 
                                                                        YEAR 1999                                                                       
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      Senate Committee recommendation   
                                                                                                   Committee              compared with (+ or -)        
                        Item                          1998 appropriation    Budget estimate     recommendation   ---------------------------------------
                                                                                                                  1998 appropriation    Budget estimate 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                        
         TITLE I--DEPARTMENT OF THE TREASURY                                                                                                            
                                                                                                                                                        
Departmental Offices................................       $114,771,000        $123,846,000        $120,671,000         +$5,900,000         -$3,175,000 
Automation Enhancement..............................         61,389,000          22,952,000          28,990,000         -32,399,000          +6,038,000 
Office of Inspector General.........................         29,719,000          30,678,000          30,678,000            +959,000   ..................
Office of Professional Responsibility...............          1,250,000           1,654,000   ..................         -1,250,000          -1,654,000 
Treasury Buildings and Annex Repair and Restoration.         10,484,000          27,000,000          27,000,000         +16,516,000   ..................
Financial Crimes Enforcement Network................         22,835,000          24,000,000          23,670,000            +835,000            -330,000 
                                                     ===================================================================================================
Violent Crime Reduction Programs:                                                                                                                       
    Bureau of Alcohol, Tobacco and Firearms.........         19,421,000   ..................          1,800,000         -17,621,000          +1,800,000 
    Financial Crimes Enforcement Network............          1,000,000   ..................          1,400,000            +400,000          +1,400,000 
    Interagency crime and drug enforcement..........  ..................         45,000,000          45,000,000         +45,000,000   ..................
    United States Secret Service....................         15,731,000          11,700,000          15,403,000            -328,000          +3,703,000 
    ONDCP--HIDTA....................................         23,200,000   ..................  ..................        -23,200,000   ..................
    Gang Resistance Education and Training: Grants..         10,000,000          10,000,000          13,239,000          +3,239,000          +3,239,000 
    Federal Law Enforcement Training Center.........          1,000,000           1,000,000           1,158,000            +158,000            +158,000 
    United States Customs Service...................         60,648,000          64,472,000          54,000,000          -6,648,000         -10,472,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, Violent Crime Reduction Programs.......        131,000,000         132,172,000         132,000,000          +1,000,000            -172,000 
                                                     ===================================================================================================
Federal Law Enforcement Training Center:                                                                                                                
    Salaries and Expenses...........................         64,663,000          71,923,000          66,251,000          +1,588,000          -5,672,000 
    Acquisition, Construction, Improvements, and                                                                                                        
     Related Expenses...............................         32,548,000          28,360,000          15,360,000         -17,188,000         -13,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, Federal Law Enforcement Training Center         97,211,000         100,283,000          81,611,000         -15,600,000         -18,672,000 
                                                     ===================================================================================================
Interagency Law Enforcement: Interagency crime and                                                                                                      
 drug enforcement...................................         73,794,000          30,900,000          30,900,000         -42,894,000   ..................
Financial Management Service........................        207,790,000         202,510,000         196,490,000         -11,300,000          -6,020,000 
    Debt collection improvement account.............  ..................          3,000,000           3,000,000          +3,000,000   ..................
                                                     ===================================================================================================
Federal Financing Bank (debt liquidation)...........  ..................     (2,854,000,000)     (2,854,000,000)    (+2,854,000,000)  ..................
                                                     ===================================================================================================
Bureau of Alcohol, Tobacco and Firearms:                                                                                                                
    Salaries and Expenses...........................        478,934,000         544,324,000         529,489,000         +50,555,000         -14,835,000 
    Laboratory facilities and headquarters..........         55,022,000          32,000,000   ..................        -55,022,000         -32,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, Bureau of Alcohol, Tobacco and Firearms        533,956,000         576,324,000         529,489,000          -4,467,000         -46,835,000 
                                                     ===================================================================================================
United States Customs Service:                                                                                                                          
    Salaries and Expenses...........................      1,522,165,000       1,638,065,000       1,630,273,000        +108,108,000          -7,792,000 
        Rescission..................................         -6,000,000   ..................  ..................         +6,000,000   ..................
                                                     ---------------------------------------------------------------------------------------------------
          Subtotal..................................      1,516,165,000       1,638,065,000       1,630,273,000        +114,108,000          -7,792,000 
                                                     ===================================================================================================
    Operation and Maintenance, Air and Marine                                                                                                           
     interdiction Pro-  grams.......................         92,758,000          98,488,000          98,488,000          +5,730,000   ..................
    (DELAYED OBLIGATIONS)...........................  ..................  ..................        (23,300,000)       (+23,300,000)       (+23,300,000)
        Rescission..................................         -4,470,000   ..................  ..................         +4,470,000   ..................
                                                     ---------------------------------------------------------------------------------------------------
          Subtotal..................................         88,288,000          98,488,000          98,488,000         +10,200,000   ..................
                                                     ===================================================================================================
    Customs Services at Small Airports (to be                                                                                                           
     derived from fees collected)...................          2,406,000           2,000,000           2,000,000            -406,000   ..................
    Harbor Maintenance Fee Collection...............          3,000,000           3,200,000           3,000,000   ..................           -200,000 
                                                     ===================================================================================================
      Total, United States Customs Service..........      1,609,859,000       1,741,753,000       1,733,761,000        +123,902,000          -7,992,000 
                                                     ===================================================================================================
Bureau of the Public Debt...........................        169,426,000         173,100,000         172,100,000          +2,674,000          -1,000,000 
                                                     ===================================================================================================
Internal Revenue Service:                                                                                                                               
    Processing, Assistance, and Management..........      2,925,874,000       3,162,430,000       3,077,353,000        +151,479,000         -85,077,000 
    Tax Law Enforcement.............................      3,142,822,000       3,169,539,000       3,164,399,000         +21,577,000          -5,140,000 
        Rescission..................................        -32,000,000   ..................  ..................        +32,000,000   ..................
                                                     ---------------------------------------------------------------------------------------------------
          Subtotal..................................      3,110,822,000       3,169,539,000       3,164,399,000         +53,577,000          -5,140,000 
                                                     ===================================================================================================
    Earned Income Tax Credit Compliance Initiative..        138,000,000         143,000,000         143,000,000          +5,000,000   ..................
    Information Systems.............................      1,272,487,000       1,540,884,000       1,329,486,000         +56,999,000        -211,398,000 
    Information technology investments..............        325,000,000         323,000,000         137,569,000        -187,431,000        -185,431,000 
        Rescission..................................        -30,330,000   ..................  ..................        +30,330,000   ..................
                                                     ---------------------------------------------------------------------------------------------------
          Subtotal..................................        294,670,000         323,000,000         137,569,000        -157,101,000        -185,431,000 
                                                     ===================================================================================================
          Net total, Internal Revenue Service.......      7,741,853,000       8,338,853,000       7,851,807,000        +109,954,000        -487,046,000 
                                                     ===================================================================================================
United States Secret Service:                                                                                                                           
    Salaries and Expenses...........................        564,348,000         594,657,000         584,902,000         +20,554,000          -9,755,000 
        (DELAYED OBLIGATIONS).......................  ..................  ..................        (13,860,000)       (+13,860,000)       (+13,860,000)
    Acquisition, Construction, Improvement, and                                                                                                         
     Related Expenses...............................          8,799,000           6,445,000           8,068,000            -731,000          +1,623,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, United States Secret Service...........        573,147,000         601,102,000         592,970,000         +19,823,000          -8,132,000 
                                                     ===================================================================================================
Payment for the joint financial management                                                                                                              
 improvement program................................  ..................          3,000,000   ..................  ..................         -3,000,000 
                                                     ===================================================================================================
      Net total, title I, Department of the Treasury     11,378,484,000      12,133,127,000      11,555,137,000        +176,653,000        -577,990,000 
          (Debt liquidation)........................  ..................      2,854,000,000       2,854,000,000      +2,854,000,000   ..................
                                                     ===================================================================================================
              TITLE II--POSTAL SERVICE                                                                                                                  
                                                                                                                                                        
           Payments to the Postal Service                                                                                                               
                                                                                                                                                        
Payment to the Postal Service Fund..................         86,274,000         100,195,000          71,195,000         -15,079,000         -29,000,000 
                                                                                                                                                        
  TITLE III--EXECUTIVE OFFICE OF THE PRESIDENT AND                                                                                                      
         FUNDS APPROPRIATED TO THE PRESIDENT                                                                                                            
                                                                                                                                                        
Compensation of the President and the White House                                                                                                       
 Office:                                                                                                                                                
    Compensation of the President...................            250,000             250,000             250,000   ..................  ..................
    Salaries and Expenses...........................         51,199,000          52,344,000          52,344,000          +1,145,000   ..................
Executive Residence at the White House:                                                                                                                 
    Operating Expenses..............................          8,045,000           8,691,000           8,691,000            +646,000   ..................
    White House Repair and Restoration..............            200,000   ..................  ..................           -200,000   ..................
Special Assistance to the President and the Official                                                                                                    
 Residence of the Vice President:                                                                                                                       
    Salaries and Expenses...........................          3,378,000           3,512,000           3,512,000            +134,000   ..................
    Operating expenses..............................            334,000             334,000             334,000   ..................  ..................
Council of Economic Advisers........................          3,542,000           3,666,000           3,666,000            +124,000   ..................
Office of Policy Development........................          3,983,000           4,032,000           4,032,000             +49,000   ..................
National Security Council...........................          6,648,000           6,806,000           6,806,000            +158,000   ..................
Office of Administration............................         28,883,000          40,550,000          29,140,000            +257,000         -11,410,000 
Office of Management and Budget.....................         57,440,000          60,617,000          60,617,000          +3,177,000   ..................
Office of National Drug Control Policy..............         35,016,000          36,442,000          48,042,000         +13,026,000         +11,600,000 
Unanticipated Needs.................................  ..................          1,000,000   ..................  ..................         -1,000,000 
Federal Drug Control Programs: High Intensity Drug                                                                                                      
 Trafficking Areas Program..........................        159,007,000         162,007,000         171,007,000         +12,000,000          +9,000,000 
Special forfeiture fund.............................        211,000,000         251,000,000         200,000,000         -11,000,000         -51,000,000 
Information technology systems and related expenses                                                                                                     
 (contingent emergency).............................  ..................  ..................      3,250,000,000      +3,250,000,000      +3,250,000,000 
                                                     ---------------------------------------------------------------------------------------------------
      Total, title III, Executive Office of the                                                                                                         
       President and Funds Appropriated to the                                                                                                          
       President....................................        568,925,000         631,251,000       3,838,441,000      +3,269,516,000      +3,207,190,000 
                                                     ===================================================================================================
           TITLE IV--INDEPENDENT AGENCIES                                                                                                               
                                                                                                                                                        
Committee for Purchase from People Who Are Blind or                                                                                                     
 Severely Dis-  abled...............................          1,940,000           2,464,000           2,464,000            +524,000   ..................
Federal Election Commission.........................         31,650,000          36,504,000          33,700,000          +2,050,000          -2,804,000 
Federal Labor Relations Authority...................         22,039,000          22,586,000          22,586,000            +547,000   ..................
                                                     ===================================================================================================
General Services Administration:                                                                                                                        
    Federal Buildings Fund:                                                                                                                             
        Appropriation...............................  ..................  ..................        508,752,000        +508,752,000        +508,752,000 
        Limitations on availability of revenue:                                                                                                         
            Construction and acquisition of                                                                                                             
             facilities.............................  ..................        (44,005,000)       (552,757,000)      (+552,757,000)      (+508,752,000)
            Repairs and alterations.................       (300,000,000)       (668,031,000)       (668,031,000)      (+368,031,000)  ..................
            Installment acquisition payments........       (142,542,000)       (215,764,000)       (215,764,000)       (+73,222,000)  ..................
            Operations and rental of space..........  ..................  ..................  ..................  ..................  ..................
            Rental of space.........................     (2,275,340,000)     (2,583,261,000)     (2,583,261,000)      (+307,921,000)  ..................
            Building Operations.....................     (1,331,789,000)     (1,554,772,000)     (1,554,772,000)      (+222,983,000)  ..................
            Repayment of Debt.......................       (105,720,000)        (91,000,000)        (91,000,000)       (-14,720,000)  ..................
            Previously appropriated activities......       (680,543,000)  ..................  ..................      (-680,543,000)  ..................
                                                     ---------------------------------------------------------------------------------------------------
              Total, Federal Buildings Fund.........  ..................  ..................        508,752,000        +508,752,000        +508,752,000 
                  (Limitations).....................     (4,835,934,000)     (5,156,833,000)     (5,665,585,000)      (+829,651,000)      (+508,752,000)
                                                     ===================================================================================================
    Policy and Operations...........................        107,487,000         106,494,000         106,494,000            -993,000   ..................
    Office of Inspector General.....................         33,870,000          32,000,000          32,000,000          -1,870,000   ..................
    Allowances and Office Staff for Former                                                                                                              
     Presidents.....................................          2,208,000           2,241,000           2,241,000             +33,000   ..................
                                                     ===================================================================================================
      Total, General Services Administration........        143,565,000         140,735,000         649,487,000        +505,922,000        +508,752,000 
                                                     ===================================================================================================
John F. Kennedy Assassination Record Review Board...          1,600,000   ..................  ..................         -1,600,000   ..................
Merit Systems Protection Board:                                                                                                                         
    Salaries and Expenses...........................         25,290,000          25,805,000          25,805,000            +515,000   ..................
    (Limitation on administrative expenses).........         (2,430,000)         (2,430,000)         (2,430,000)  ..................  ..................
Morris K. Udall Scholarship and Excellence in                                                                                                           
 National Environmental Policy Foundation...........          1,750,000           2,000,000   ..................         -1,750,000          -2,000,000 
U.S. Institute for Environmental Conflict Resolution  ..................          4,000,000   ..................  ..................         -4,000,000 
National Archives and Records Administration:                                                                                                           
    Operating expenses..............................        205,166,500         230,025,000         221,030,000         +15,863,500          -8,995,000 
    Reduction of debt...............................         -4,012,000          -4,012,000          -4,012,000   ..................  ..................
    Repairs and Restoration.........................         14,650,000          10,450,000          11,325,000          -3,325,000            +875,000 
    National Historical Publications and Records                                                                                                        
     Commission: Grants program.....................          5,500,000           6,000,000          11,000,000          +5,500,000          +5,000,000 
                                                     ---------------------------------------------------------------------------------------------------
        Total, National Archives and Records                                                                                                            
         Administration.............................        221,304,500         242,463,000         239,343,000         +18,038,500          -3,120,000 
                                                     ===================================================================================================
Office of Government Ethics.........................          8,265,000           8,492,000           8,492,000            +227,000   ..................
                                                     ===================================================================================================
Office of Personnel Management:                                                                                                                         
    Salaries and Expenses...........................         85,350,000          85,350,000          85,350,000   ..................  ..................
        (Limitation on administrative expenses).....        (91,236,000)        (91,236,000)        (91,236,000)  ..................  ..................
    Office of Inspector General.....................            960,000             960,000             960,000   ..................  ..................
        (Limitation on administrative expenses).....         (8,645,000)         (9,145,000)         (9,145,000)          (+500,000)  ..................
    Government Payment for Annuitants, Employees                                                                                                        
     Health Benefits................................      4,338,000,000       4,632,000,000       4,632,000,000        +294,000,000   ..................
    Government Payment for Annuitants, Employee Life                                                                                                    
     Insurance......................................         32,000,000          35,000,000          35,000,000          +3,000,000   ..................
    Payment to Civil Service Retirement and                                                                                                             
     Disability Fund................................      8,336,000,000       8,682,297,000       8,682,297,000        +346,297,000   ..................
                                                     ---------------------------------------------------------------------------------------------------
      Total, Office of Personnel Management.........     12,792,310,000      13,435,607,000      13,435,607,000        +643,297,000   ..................
                                                     ===================================================================================================
Office of Special Counsel...........................          8,450,000           8,720,000           8,720,000            +270,000   ..................
United States Tax Court.............................         33,921,000          34,490,000          32,765,000          -1,156,000          -1,725,000 
                                                     ===================================================================================================
      Total, title IV, Independent Agencies.........     13,292,084,500      13,963,866,000      14,458,969,000      +1,166,884,500        +495,103,000 
          (Limitation on administrative expenses)...     (4,938,245,000)     (5,259,644,000)     (5,768,396,000)      (+830,151,000)      (+508,752,000)
                                                     ===================================================================================================
      Net grand total...............................     25,325,767,500      26,828,439,000      29,923,742,000      +4,597,974,500      +3,095,303,000 
              Appropriations........................    (25,398,567,500)    (26,828,439,000)    (29,923,742,000)    (+4,525,174,500)    (+3,095,303,000)
              Rescissions...........................       (-72,800,000)  ..................  ..................       (+72,800,000)  ..................
          (Debt liquidation)........................  ..................     (2,854,000,000)     (2,854,000,000)    (+2,854,000,000)  ..................
          (Limitations).............................     (4,938,245,000)     (5,259,644,000)     (5,768,396,000)      (+830,151,000)      (+508,752,000)
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