[Senate Report 105-49]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 112

105th Congress                   SENATE                          Report
 1st Session                                                     105-49
_______________________________________________________________________


 
        TREASURY AND GENERAL GOVERNMENT APPROPRIATION BILL, 1998

                                _______
                                

                 July 16, 1997.--Ordered to be printed

_______________________________________________________________________


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

                              R E P O R T

                    [To accompany S. 1023]

    The Committee on Appropriations, to which was referred the 
bill (H.R. 0000) 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, 1998, and for other 
purposes, reports the same to the Senate with amendments and 
recommends that the bill as amended do pass. deg.
    The Committee on Appropriations reports the bill (S. 1023) 
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, 1998, and for other purposes, reports favorably 
thereon and recommends that the bill do pass.

Amount of bill as reported to the Senate................ $25,206,539,000
Amount of estimate......................................  25,662,405,000
The bill as reported to the Senate:
    Above the appropriations provided in 1997...........   1,104,916,000
    Below the estimates for 1998........................     455,866,000


                            C O N T E N T S

                              ----------                              
                                                                   Page
General statement and summary of bill............................     3
Title I--Department of the Treasury..............................     6
Title II--United States Postal Service...........................    39
Title III--Executive Office of the President and Funds 
  Appropriated to the President..................................    41
Title IV--Independent Agencies:
    Committee for Purchase From People Who Are Blind or Severely 
      Disabled...................................................    53
    Federal Election Commission..................................    54
    Federal Labor Relations Authority............................    54
    General Services Administration..............................    55
    John F. Kennedy Assassination Review Board...................    64
    Merit Systems Protection Board...............................    65
    National Archives and Records Administration.................    65
    National Historical Publications and Records Commission......    67
    Office of Government Ethics..................................    68
    Office of Personnel Management...............................    68
    Office of Special Counsel....................................    72
    U.S. Tax Court...............................................    73
Title V--General provisions, this act............................    75
Title VI--General provisions, departments, agencies, and 
  corporations...................................................    76
Compliance with paragraph 7, rule XVI, of the Standing Rules of 
  the Senate.....................................................    79
Compliance with paragraph 7(c), rule XXVI of the Standing Rules 
  of the Senate..................................................    80
Compliance with paragraph 12, rule XXVI of the Standing Rules of 
  the Senate.....................................................    81
Tables...........................................................    93

               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, 1998.
    The Committee considered budget estimates for fiscal year 
1998 in the aggregate amount of $25,662,405,000. Compared to 
that amount, the accompanying bill recommends new budget 
authority totaling $25,206,539,000 which is $455,866,000 less 
than the amount requested by the administration.
    The Committee recommendations are consistent with the 
fiscal year 1998 section 602(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 strategic 
plan submitted the previous year.
    Draft strategic plans must be submitted to the Office of 
Management and Budget by August 15, 1997, and final strategic 
plans are to be presented to Congress by September 30, 1997. 
However, Federal agencies were required to consult with 
Congress and other stakeholders on their draft strategic plans 
and incorporate suggestions or concerns in the plan submitted 
to OMB.
    The Committee is encouraged that Federal agencies are 
trying to fulfill the requirements of GPRA. Some agencies have 
been more successful than others. For example, the U.S. Mint 
did an exemplary job and was recognized by the General 
Accounting Office for their plan. The Committee was also 
impressed with the strategic plan submitted by the Federal 
Labor Relations Authority, whose approach could be used as an 
example to other small agencies.
    On the other hand, some of the plans reviewed did not live 
up to expectations and, unfortunately, the Financial Crimes 
Enforcement Network within the Department of the Treasury has 
not yet submitted a draft plan. The Committee strongly 
encourages agencies to continue to refine their strategic plans 
so that the fiscal year 1999 budget submission is accompanied 
by a plan which is both complete and clearly articulated. 
Further, the Committee strongly encourages agencies to ensure 
that the fiscal year 1999 budget submission displays amounts 
requested against program activity structures for which annual 
performance goals and indicators have been established.

                                vehicles

    The Committee has provided Treasury law enforcement 
agencies over $34,000,000 for vehicle replacements and 
upgrades. The Committee is concerned that rather than following 
the prescribed surplus equipment procedures agencies are 
providing law enforcement personnel vehicles although their 
position does not necessitate direct protective, investigative, 
or emergency response. This practice should not be continued 
because it provides law enforcement personnel vehicles not 
available to other Federal employees. In addition, including 
these vehicles in the law enforcement agencies vehicle 
inventory skews reports on the age, mileage and number of 
vehicles. Agencies are requested to review internal vehicle use 
policies and to surplus all vehicles not used to accomplish the 
requirements of the job.
    The Committee requests that GAO review the utilization of 
vehicles by law enforcement agencies and report to the House 
and Senate Committees on Appropriations within 6 months after 
enactment of this bill on the age and mileage of current 
vehicles, agency policies on usage, and agency enforcement of 
those policies.

                  TITLE I--DEPARTMENT OF THE TREASURY

                          Departmental Offices

                         salaries and expenses

Appropriations, 1997....................................    $112,048,000
Budget estimate, 1998...................................     116,314,000
Committee recommendation................................     114,794,000

    The Committee recommends an appropriation of $114,794,000 
for salaries and expenses for departmental offices of the 
Treasury Department. The amount provided by the Committee is 
$1,520,000 less than the budget estimate.
    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.

                           Transcript Review

    The Committee continues to be displeased with the 
Department's inability to respond to questions for the record 
in a timely manner. As indicated in last year's report, the 
Committee has no choice but to take action in the only manner 
it can. As a result, the Committee has provided an appropriate 
adjustment to the ``Departmental offices'' appropriation.

                    office of foreign assets control

    The Committee has provided that the Office of Foreign 
Assets Control [OFAC] be funded at the fiscal year 1998 
request, $6,745,000. 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 60 
permanent full-time staffing positions, of which at least 10 
are criminal investigators.

            Study of Taggants in Black and Smokeless Powder

    Section 113(2) of the Fiscal Year 1997 Commerce, Justice, 
State, the Judiciary, and Related Agencies Appropriations Act 
required that the Secretary enter into a contract with the 
National Academy of Sciences to conduct a study of the tagging 
of smokeless and black powder by any viable technology for 
purposes of detection and identification. The academy was 
directed to appoint an independent panel of five experts for 
this study. That report was to be presented to Congress 12 
months after enactment, or September 30, 1997. Because the 
academy and the Secretary have not yet agreed upon a statement 
of work, the Committee has included language to extend this 
deadline to September 30, 1998.

                   Private Sector Tax Debt Collection

    The Committee is concerned that funding provided for a 
private sector debt collection program during fiscal years 
1996-97 has not produced a successful program. As a result of a 
General Accounting Office review, unobligated funds for these 
programs have been reprogrammed. The Committee strongly urges 
IRS to work with the General Accounting Office to develop 
legislative proposals necessary to conduct a successful private 
sector debt collection program in the near future.

                          INTERNATIONAL CRIME

    The Committee is concerned about the increase in crime 
abroad and the direct and indirect impact of international 
crime on the United States. As a result, the Committee supports 
the international crime initiative included in the Foreign 
Operations appropriations bill for fiscal year 1998 and 
encourages the Secretary of the Treasury to participate in and 
provide support for this initiative, as many of the concerns 
relating to international crime directly impact bureaus under 
the Department of the Treasury.

                 Office of Professional Responsibility

Appropriations, 1997....................................      $1,500,000
Budget estimate, 1998...................................       1,625,000
Committee recommendation................................       1,250,000

    The Committee has provided $1,250,000 for the Office of 
Professional Responsibility. The amount provided by the 
Committee is $375,000 less than the budget estimate. The 
Committee does not disagree with the concept of an office to 
oversee law enforcement bureaus, but believes that the Office 
of Professional Responsibility should not exercise operational 
control over Treasury's law enforcement bureaus and 
organizations. In determining the fiscal year 1998 funding 
level, the Committee realized a fiscal year 1997 unobligated 
balance of $1,250,000. It is the recommendation that the Office 
of Professional Responsibility submit a request for 50 percent 
of that amount for use as operating funds for fiscal year 1998.

                        Automation Enhancements

Appropriations, 1997....................................     $27,100,000
Budget estimate, 1998...................................      29,389,000
Committee recommendation................................      29,389,000

    The Committee has provided a total of $29,389,000 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. The funds should be provided and 
transferred as follows:

Departmental offices....................................      $8,789,000
Departmental offices, international trade data system 
    [ITDS]..............................................       5,600,000
U.S. Customs Service, automated commercial environment 
    project [ACE].......................................      15,000,000

    Of the $5,600,000 provided for the international trade data 
system, funding shall be provided to complete the International 
Trade Compliance Center study.
    The General Accounting Office continues to document 
problems with the Customs Service's automated commercial 
environment [ACE]. Funding provided in fiscal year 1997, which 
was fenced, has not been released due to Customs' inability to 
provide clear planning for architectural designs. It is the 
Committee's hope that this funding can be used to provide the 
much needed technology for Customs to perform its mission. 
However, the Committee has provided $15,000,000 in fiscal year 
1998 for the Customs Service ACE project. This funding shall 
remain unavailable until September 1, 1998, and shall only be 
available after that date following Committee approval of the 
ACE systems architecture, milestone schedule, and a final 
estimate of the funds required to complete this capital 
investment. The Committee restates its strong support for 
computer modernization efforts; however, it remains committed 
to ensuring that Federal funds in this area are well spent.

                    Office of the Inspector General

                         salaries and expenses

Appropriations, 1997....................................     $29,770,000
Budget estimate, 1998...................................      31,333,000
Committee recommendation................................      30,719,000

    The Committee recommends an appropriation of $30,719,000 
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.
    The Committee has included language directing that $16,695 
be transferred to the ``Departmental offices'' appropriation to 
reimburse Secret Service agents for legal costs incurred during 
an apparent investigation of their testimony before Congress. 
While the inspector general has testified that these two agents 
were not subjects of a criminal investigation, it was 
subsequently discovered that the investigation was at one time 
labeled as criminal. As a result, these agents retained legal 
counsel and incurred legal expenses in preparation for the 
investigation. The agents should be reimbursed for these fees. 
This action is not without precedent. The Merit Systems 
Protection Board has authority to grant attorney fees to 
employees whose allegations of agency prohibited personnel 
practices have been upheld. The same authority is also provided 
to the Office of Special Counsel, which prosecutes, among other 
things, whistleblower cases.

       repair and restoration of the treasury building and annex

Appropriations, 1997....................................     $28,213,000
Budget estimate, 1998...................................      12,484,000
Committee recommendation................................      10,484,000

    The Committee recommends an appropriation of $10,484,000 
for the repair and restoration of the Treasury Building and 
Annex. This amount is $2,000,000 below the budget request.
    This account is used to operate and maintain the Department 
of the Treasury Building and Annex. The fiscal year 1998 
request assumes a reduction of $2,000,000 associated with the 
one-time reprogramming provided Treasury as a result of fire 
damage. The fiscal year 1997 additional funds were a one-time 
requirement and are, therefore, reflected as a reduction in the 
Committee's fiscal year 1998 recommendation.

                  Financial Crimes Enforcement Network

Appropriations, 1997....................................     $22,387,000
Budget estimate, 1998...................................      23,006,000
Committee recommendation................................      22,835,000

    The Committee recommends an appropriation of $22,835,000 
for the Financial Crimes Enforcement Network [FinCEN] for 
fiscal year 1998. This amount is $171,000 below the budget 
request. This funding level allows FinCEN to maintain current 
levels with a 2-percent inflation factor.
    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.
    The Committee includes in the violent crime trust fund 
$3,000,000 to enhance FinCEN's efforts to combat emerging money 
laundering threats and to develop an encrypted transmission 
network.

       OUTREACH TO AND ACCESS BY STATE AND LOCAL LAW ENFORCEMENT

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

                        treasury forfeiture fund

Appropriations, 1997....................................     $10,000,000
Budget estimate, 1998...................................       9,500,000
Committee recommendation................................................

    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.

           Violent Crime Control and Law Enforcement Funding

Appropriations, 1997....................................     $97,000,000
Budget estimate, 1998...................................     118,178,000
Committee recommendation................................     130,955,000

                    violent crime reduction program

    The Committee has provided $130,955,000 for Treasury 
enforcement activities as follows:

Bureau of Alcohol, Tobacco and Firearms:
    GREAT Program grants................................     $10,000,000
    GREAT administration/training.......................       3,000,000
    Firearms trafficking initiatives (including the 
      youth crime gun initiative, Project LEAD, and the 
      National Tracing Cen- ter)........................       6,000,000
    CEASEFIRE/IBIS......................................       5,200,000
    Vehicles............................................       8,215,000
    Collection of information on arson and explosives...       1,608,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total, Bureau of Alcohol, Tobacco and Firearms....      34,023,000
                    ========================================================
                    ____________________________________________________
Financial Crimes Enforcement Network:
    Money laundering threat initiative..................       2,000,000
    Secure Outreach/Encrypted Transmission Program......       1,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total, Financial Crimes Enforcement Network.......       3,000,000
                    ========================================================
                    ____________________________________________________
Federal Law Enforcement Training Center:
    Rural law enforcement officers training.............       1,000,000
    Master plan construction............................      18,619,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total Federal Law Enforcement Training Center.....      19,619,000
                    ========================================================
                    ____________________________________________________
U.S. Customs Service:
    High energy container x-ray system..................      15,000,000
    Laboratory modernization............................       5,735,000
    Vehicles replacement................................      10,000,000
    Automated license plate readers.....................       7,800,000
    Canopy construction along the Southwest border......       1,100,000
    Vehicle and container inspection systems [VACIS]....       5,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total, U.S. Customs Service.......................      44,635,000
                    ========================================================
                    ____________________________________________________
U.S. Secret Service:
    White House security................................      15,664,000
    Counterfeiting investigations.......................       3,000,000
    Forensic and related support of investigations of 
      missing and exploited children....................       2,514,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total, U.S. Secret Service......................      21,178,000
                    ========================================================
                    ____________________________________________________
Funds appropriated to the President:
    Counterdrug Technology Assessment Center............       5,500,000
    Rocky Mountain HIDTA................................       3,000,000
                    --------------------------------------------------------
                    ____________________________________________________
      Total, funds appropriated to the President........       8,500,000

                Bureau of Alcohol, Tobacco and Firearms

    The Committee has included $5,200,000 for the CEASEFIRE/
IBIS program. Of this amount, $1,200,000 is for maintenance of 
existing systems and $4,000,000 is to allow ATF to comply with 
requests from State and local law enforcement entities for the 
technology. The Committee understands that there are requests 
pending at ATF from the West Virginia State Police in 
Charlestown; the Guilford County, North Carolina Sheriff's 
Department; the Cumberland, North Carolina Sheriff's 
Department; Kentucky State Police; the Allegheny County 
Forensic Laboratory in Pennsylvania; the Mississippi State 
Laboratory; the Washoe County Laboratory in Reno, NV; the 
Georgia Bureau of Investigations in Savanna; the Alabama 
Department of Forensic Science; and the Stickney, Illinois 
Police Department.

                             GREAT Program

    The Committee supports funding for the Gang Resistance 
Education and Training [GREAT] Program through the VCRTF, and 
provides $10,000,000 for grants to local law enforcement 
organizations and $3,000,000 for ATF administrative support, 
training, and related activities.

                          U.S. Secret Service

    The Committee has provided full funding of the 
administration's request for White House security through the 
VCRTF. However, the Committee is concerned with the 
accelerating costs associated with developing necessary 
security measures at the White House. The Committee hopes to 
continue to work with the Secret Service to identify the 
highest priority requirements related to protecting the 
President.
    The Committee has provided $2,514,000 for forensic and 
related support of investigations of missing and exploited 
children.

                          U.S. Customs Service

    The Committee has provided $5,000,000 for the vehicle and 
container inspection systems. These systems use highly 
penetrative gamma-rays to nonintrusively inspect freight 
contained on pallets, in truck cargo containers, and in 
passenger vehicles.
    The Committee did not provide funding for the Agent 
Relocation Program. It is the Committee's recommendation that 
if the Customs Service identifies this program as a high 
priority, it reduce funding under its ``Salaries and expenses'' 
account to cover the costs associated with this initiative.

                COUNTERDRUG TECHNOLOGY TRANSFER PROGRAM

    The Committee provides $5,500,000 to the Counterdrug 
Technology Assessment Center [CTAC] of the Office of National 
Drug Control Policy to establish a program for transferring 
technology to State and local law enforcement agencies. CTAC 
works with many law enforcement agencies and prosecutors to 
find technological solutions to critical enforcement problems. 
The Committee directs the funding be used to initiate a pilot 
program to transfer these technologies to agencies who may 
otherwise be unable to profit from the developments due to 
limited budgets or a lack of technological expertise. The 
Committee directs CTAC to initiate this program under the 
direction of the chief scientist, ONDCP, with the advice of 
experts from State and local law enforcement, including sheriff 
departments, and link the programs with high-intensity drug 
trafficking area [HIDTA] programs to identify the technologies 
to transfer and the locations to be served.

                HIGH-INTENSITY DRUG TRAFFICKING PROGRAM

    The Committee has provided an additional $3,000,000 for the 
Rocky Mountain HIDTA in order to accommodate the increased need 
for HIDTA activity in the region.

                Federal Law Enforcement Training Center

                         salaries and expenses

Appropriations, 1997....................................     $56,185,000
Budget estimate, 1998...................................      65,663,000
Committee recommendation................................      64,663,000

    The Committee recommends an appropriation of $64,663,000 
for salaries and expenses of the Federal Law Enforcement 
Training Center [FLETC]. This amount is $1,000,000 below the 
budget request.
    The Federal Law Enforcement Training Center provides the 
necessary facilities, equipment, and support services for 
conducting basic and advanced training for Federal law 
enforcement personnel of its participating organizations. 
Center personnel conduct the instructional programs for the 
basic recruit training and also selected portions of the 
advanced training. In addition, the Center furnishes training 
on a space-available basis to personnel from several Federal 
organizations which are not formal participants under the 
memorandum of understanding.
    In October 1982, the President directed that a national 
center for State and local training be established as a part of 
the Federal Law Enforcement Training Center. The major program 
goals are to present advanced and specialized training and to 
provide basic technical assistance to State and local law 
enforcement agencies.
    In recent years, considerable funding has been provided 
Federal law enforcement agencies to hire and train additional 
personnel. The Committee has included funding to ensure that 
FLETC can meet the demands of agencies for training their 
personnel.

     acquisition, construction, improvements, and related expenses

Appropriations, 1997....................................     $21,584,000
Budget estimate, 1998...................................      11,111,000
Committee recommendation................................      13,930,000

    The Committee recommends an appropriation of $13,930,000 
for acquisition, construction, improvements, and related 
expenses of the Federal Law Enforcement Training Center. This 
amount is $2,819,000 above the budget request.
    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.
    The funding level includes $2,819,000 for fiber optics 
replacement requested in the VCRTF.
    The Committee has provided $18,619,000 for master plan 
construction in the VCRTF. This funding has been provided to 
assist in completing the master plan in order to meet 
increasing demands for consolidated law enforcement training.
    The Committee has also provided $1,000,000 in the VCRTF for 
rural law enforcement officers training.

                      Interagency Law Enforcement

Appropriations, 1997 \1\................................................
Budget estimate, 1998...................................     $73,794,000
Committee recommendation................................      73,794,000

\1\ Funded through the Commerce, Justice, State, and the Judiciary 
appropriations bill in fiscal year 1997.

    The Committee recommends an appropriation of $73,794,000 
for the interagency crime and drug enforcement task force 
[ICDEF]. This amount is equal to the budget estimate.
    ICDEF consolidates the resources of 11 Federal agencies to 
target and destroy major narcotics trafficking and money 
laundering organizations. The portion of ICDEF 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 ICDEF participation by law 
enforcement personnel in three Treasury bureaus.

                      Financial Management Service

                         salaries and expenses

Appropriations, 1997....................................    $196,518,000
Budget estimate, 1998...................................     202,560,000
Committee recommendation................................     202,490,000

    The Committee recommends an appropriation of $202,490,000 
for salaries and expenses of the Financial Management Service 
[FMS] in fiscal year 1998.
    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.
    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.

                   Permanent Indefinite Appropriation

    The Committee has included language to establish a 
permanent indefinite appropriation to reimburse Federal Reserve 
banks for services in their capacity as depositaries and fiscal 
agents on behalf of the Treasury Department.
    No amounts are to be paid to the Federal Reserve until they 
have been certified by the Treasury's Financial Management 
Service as appropriate for these purposes, and all amounts 
expended from this account are to be offset from corresponding 
Federal Reserve receipts in the same amount.

                Bureau of Alcohol, Tobacco and Firearms

                         salaries and expenses

Appropriations, 1997....................................    $460,394,000
Budget estimate, 1998...................................     496,954,000
Committee recommendation................................     472,490,000

    The Committee recommends an appropriation of $472,490,000 
for salaries and expenses of the Bureau of Alcohol, Tobacco and 
Firearms [ATF]. This amount is $24,464,000 below the 
administration's request.
    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 1998.

               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 Achilles Task Force 
Program and is pleased to note that the administration's 
request for this program 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 continuation of the currently 
operating programs, as well as additional funding for expansion 
of the program. Special consideration should be given to 
several Vermont cities and others which have expressed 
considerable interest in participating in this program.

                            Base Restoration

    The Committee has provided $14,262,000 to restore ATF's 
base, including $1,400,000 for agent cashier informant/buys, 
$5,800,000 for year 2000 conversion and telecommunications, and 
$462,000 for laboratory and investigative supplies. In 
addition, $5,200,000 was provided under the VCRTF for the 
maintenance and restoration of the CEASEFIRE/IBIS base.

                        National Tracing Center

    The Committee supports the practice of compiling 
information for the purpose of identifying individual criminal 
offenders and alleged offenders related to specific criminal 
and civil investigations. However, the Committee is concerned 
that ATF's current policy appears to set no time limit on how 
long such records can be maintained, since the trace record 
data base was created 8 years ago and we understand no records 
have yet been deleted. The Committee, therefore, directs AFT to 
clarify its practices related to the collection and maintenance 
of records on the acquisition and disposition of firearms by 
Federal firearms licensees for use in criminal or civil 
enforcement or firearms trace systems, and in particular on the 
length of time such records are kept.

                         Separation Incentives

    Separation incentives authorized by Public Law 104-863 are 
available until the end of calendar year 1998. It is expected 
that agencies may utilize this authority to a greater extent 
early in fiscal year 1998. As a result, the Committee has 
continued a provision requiring ATF to seek approval of plans 
to offer separation incentives from the House Committee on 
Government Reform and Oversight and the Senate Committee on 
Governmental Affairs.

                     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 minimum mandatory security 
requirements for Federal firearms licensees a priority at the 
next firearms industry discussion group which will convene 
later this year.

             Criminal Gang Activity on Indian Reservations

    The Committee recognizes that criminal gang activity on 
Indian reservations has steadily increased over the past 
decade, and urges the Bureau of Alcohol, Tobacco and Firearms 
to help curtail this problem by implementing, where needed, 
gang resistance and education training programs within Indian 
country.

                       return of stolen firearms

    The Committee understands there may have been instances 
where individuals who subsequently legally own a registered 
firearm reported as stolen and found as a result of law 
enforcement efforts utilizing the Federal trace system have not 
been notified of the recovery of the firearm and have not had 
the firearm returned to them despite the fact that the owner 
was not under criminal investigation, and the firearm had not 
been seized as evidence or legally forfeited. The Committee 
also understands that the Bureau of Alcohol, Tobacco and 
Firearms makes every effort to notify such individuals and 
arrange for the return of the legally owned firearm. Further, 
there have been indications that many State and local law 
enforcement offices lack sufficient resources to identify and 
contact the lawful owner of a firearm. Therefore, the Committee 
directs ATF to cooperate with State and local law enforcement 
to ensure the prompt return of recovered firearms to their 
legal owners where (1) the firearms were reported as stolen by 
its lawful owner; (2) the firearms have not been seized as 
evidence or forfeited in accordance with law; (3) the lawful 
owner is not the subject of a criminal investigation; and (4) 
the lawful owner is not prohibited by law from possessing a 
firearm.

                         laboratory facilities

Appropriations, 1997....................................      $6,978,000
Budget estimate, 1998...................................      55,022,000
Committee recommendation................................      55,022,000

    The Committee recommends $55,022,000 for construction of a 
new laboratory. This amount is equal to the administration's 
request.
    The administration requested funding for construction of 
the ATF national laboratory and fire investigation, research, 
and development center. The Committee has provided funding for 
the construction of this facility.

                          U.S. Customs Service

                         salaries and expenses

Appropriations, 1997....................................  $1,549,585,000
Budget estimate, 1998...................................   1,566,826,000
Committee recommendation................................   1,551,028,000

    The Committee recommends an appropriation of $1,551,028,000 
for salaries and expenses of the U.S. Customs Service. This 
amount is $15,789,000 less than the budget estimate.
    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 Southwest Border

    The Customs Service has been on the forefront of the drug 
effort for many years. The Committee has provided constant 
support to those efforts through those years, whether drugs 
have been on the front pages, or not. This bill includes the 
administration request of $76,600,000. Of this amount, 
$38,200,000 is provided for infrastructure initiatives, 
including $29,200,000 for border station facilities to meet 
increased efforts along the Southwest border, and $10,000,000 
for vehicle replacements, which will impact Customs' ability to 
carry out operational priorities along the Southwest border. 
Additionally, $33,400,000 has been provided for operational 
initiatives in the ``Salaries and expenses'' and ``Violent 
crime reduction trust funds'' accounts. This funding level 
includes land border automation, antismuggling initiatives, 
license plate readers, and outbound lane canopies. It is 
necessary to note that this problem is not a quadrennial one, 
it has been a significant problem which is with us year in and 
year out.

                       montana world trade center

    The Committee has provided $2,500,000 in one-time funding 
for the Global Trade and Research Program at the Montana World 
Trade Center. This program promotes practical research and 
information dissemination on issues designed to explore, 
define, and measure contributions to economic globalization.

                       SOFTWOOD LUMBER AGREEMENTS

    The Committee has provided $2,000,000 to U.S. Customs 
Service to supply additional resources for monitoring and 
enforcing the United States/Canada Softwood Lumber Agreement. 
The lumber agreement, established in April 1996, addresses the 
problem of subsidized Canadian lumber imports. This additional 
funding will provide Customs adequate resources to reconcile 
United States import data with Canadian export data. The 
resources will also ensure Customs conducts the Northern border 
inspections and analyzes the trade statistics necessary to 
support the softwood lumber agreement.

                         Separation Incentives

    Separation incentives authorized by Public Law 104-863 are 
available until the end of calendar year 1998. It is expected 
that agencies may utilize this authority to a greater extent 
early in fiscal year 1998. As a result, the Committee has 
continued a provision requiring the Customs Service to seek 
approval of plans to offer separation incentives from the House 
Committee on Government Reform and Oversight and the Senate 
Committee on Governmental Affairs.

                        Automation Enhancements

    The Administration had requested that $5,600,000 be 
transferred from the Customs Service to the departmental 
offices for the international trade data system [ITDS]. These 
funds are included in the ``Automation enhancements'' account 
for the departmental offices.

         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 1998 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 1998 at the fiscal year 1997 level.
    The Committee expects the Customs Service to ensure that 
staffing levels are sufficient to staff and operate the newly 
operational Santa Teresa, NM, border facility.
    Legitimate, as well as illicit, trade and traffic continue 
to grow in the State of Florida. Customs should give a high 
priority to funding sufficient inspection personnel at ports of 
entry in Florida for fiscal year 1998.
    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. The Committee also directs the 
Service to provide the Committee with a report by March 1, 
1998, on improvements in Customs stations and border crossings 
which will be needed to deal effectively with increased United 
States-Canada trade along the Northern border States.
    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 Montana and Vermont.

       Stanton Street Bridge Dedicated Commuter Lane, El Paso, TX

    The Committee continues to recognize the need to facilitate 
the flow of traffic and trade between the United States and 
Mexico in El Paso, TX. To help achieve this objective, the U.S. 
Customs Service, the Immigration and Naturalization Service, 
the U.S. Department of Agriculture, and the El Paso business 
and trade community have been analyzing a plan to locate a 
dedicated commuter lane [DCL] at the Stanton Street Bridge 
site--a site preferred by both the United States and Mexico 
trade communities and selected by the U.S. Customs Service in 
its February 1997 report to Congress.
    The Committee expects the Customs Service to work with the 
Immigration and Naturalization Service and the United States 
and Mexico trade communities to successfully implement the 
Stanton Street Bridge DCL. The Committee also expects the 
Customs Service to report on at least a quarterly basis 
regarding the progress in carrying out this directive.

                          Technology Research

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

              INTERNATIONAL TRADE COMPLIANCE CENTER STUDY

    The Committee instructs the Customs Service to provide no 
less than $500,000 to complete a feasibility study and 
implementation plan for the creation of a international freight 
processing center in Kansas City. The Committee expects that 
the study will examine the freight impact of rail service to 
and from Mexico and any necessary improvements or changes 
needed within Customs to make it easier for United States 
businesses to conduct international trade with our NAFTA 
partners.

                           child pornography

    The Committee is concerned that there has been steady and 
significant decrease in the number of calls placed to the child 
pornography tipline. Tipline calls have, in the past, resulted 
in a substantial number of successful prosecutions for child 
pornography violations. The Committee, therefore, directs the 
U.S. Customs Service to provide $75,000 from available funds to 
promote public awareness for the child pornography tipline, 
including ongoing eforts to make children aware of the tipline, 
in fiscal year 1998. The Committee recommends that the U.S. 
Customs Service coordinate this promotional effort with the 
National Center for Missing and Exploited Children and the U.S. 
Postal Service to ensure that the publicity is diversified and 
effective.

                             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.

                             atlantic tunas

    The Committee is concerned about the importation of fish 
and fish products taken in violation of the International 
Convention for the Conservation of Atlantic Tunas, and urges 
the Customs Service and other relevant agencies to address this 
situation.

             Customs Facilities, Construction, Improvements

Appropriations, 1997....................................................
Budget estimate, 1998...................................      $5,512,000
Committee recommendation................................................

                                MISSION

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

                             RECOMMENDATION

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

    operation and maintenance, air and marine interdiction programs

Appropriations, 1997....................................     $83,363,000
Budget estimate, 1998...................................      92,758,000
Committee recommendation................................      92,758,000

    The Committee recommends an appropriation of $92,758,000 
for operation and maintenance activities of the Customs air and 
marine interdiction programs. This amount equals the budget 
request.
    The operation and maintenance, air and marine interdiction 
programs will cover expenses incurred by the Customs Service 
for operating and maintaining aircraft, boats, radar, and 
equipment necessary to carry out its air and marine 
interdiction missions. This account also includes operational 
training, mission-related travel, and special operations 
directly associated with the air and marine interdiction 
programs. This account covers the essential costs associated 
with operating and maintaining the military aircraft and 
equipment that has been, and will continue to be, loaned to 
Customs for use in its air interdiction mission.
    The Customs Service is the frontline in drug interdiction. 
The air and marine efforts compose a major element of the 
country's firstline interdiction effort. In recent years the 
strategy has changed, but the problem remains the same. The 
Committee has iterated over and over how important air and 
marine efforts are to deterring narcotics smuggling. These 
efforts have proven extremely effective. The change in the drug 
control strategy does not eliminate the need for continued 
vigilance. The Committee continues to maintain a keen interest 
in air and marine activities and reminds the Service that air 
and marine interdiction are and shall be a top priority.

                       Air and Marine Operations

    Through the years Customs has had to react to changing 
smuggling modes. Air and marine interdiction methods have been 
adjusted to challenge this ever changing threat. This effort 
has proved effective through the years. Yet, vigilance remains 
the watchword. Currently, emphasis is being placed on 
interdiction efforts in Caribbean waters around Puerto Rico and 
the 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.
    The Committee suggests the Customs Service review the 
configuration based management system [CBMS] being used by the 
Coast Guard and Air Force for potential cost savings in the 
Customs Air Program.

                     P-3 Airborne Early Operations

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

                   customs services at small airports

                  (to be derived from fees collected)

Appropriations, 1997....................................      $2,406,000
Budget estimate, 1998...................................       2,406,000
Committee recommendation................................       2,406,000

    The Committee recommends an appropriation of $2,406,000 for 
customs services at certain small airports. These services are 
to be paid from user fees collected at each of these small 
airports. The Committee funding recommendation for fiscal year 
1998 for this account is the same as the budget request.
    The Trade and Tariff Act of 1984 (Public Law 98-573) 
authorizes the U.S. Customs Service to impose user fees for 
services at certain small airports where the volume or value of 
business is insufficient to justify the availability of customs 
services. The fee will be equal to the expenses incurred in 
providing the services.
    The legislation authorizes Customs to charge a fee for 
services at certain designated airports and locations 
designated by the Secretary of the Treasury. (The Governor of 
the State in which such airport is located must also approve 
the designation.)
    Fees which are collected at each airport are deposited into 
an account within the Treasury of the United States 
specifically designated for that airport. The funds in the 
account are only available for expenditures relating to the 
provision of customs services at each airport, including 
salaries and expenses of personnel employed to provide such 
services. Currently service is provided to 31 airports 
throughout the country in this program.

                   harbor maintenance fee collection

Appropriations, 1997....................................      $3,000,000
Budget estimate, 1998...................................       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.

                    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.

                       Bureau of the Public Debt

                     administering the public debt

Appropriations, 1997....................................    $165,335,000
Budget estimate, 1998...................................     169,426,000
Committee recommendation................................     169,426,000

    The Committee recommends an appropriation of $169,426,000 
for the Bureau of the Public Debt in fiscal year 1998. The 
Committee recommendation equals the budget estimate.
    The Bureau of the Public Debt is responsible for 
administering the laws and regulations pertaining to public 
debt financing and operations within the framework of policies 
established by the Secretary of the Treasury. The Bureau's 
primary concerns are with the issuance, servicing, and 
retirement of public debt securities, and accounting for the 
public debt and its related interest cost. It also has a 
general responsibility for the conduct or direction of 
transactions in public issues of those Government agencies for 
which the Treasury acts as agent.
    This appropriation currently provides funds for: the direct 
operating costs of the Bureau of the Public Debt including the 
Office of U.S. Savings Bonds; the payment of fees at stipulated 
rates to financial institutions and others; and the payment of 
postage and registry fees to the U.S. Postal Service for 
delivering securities.
    The Office of U.S. Savings Bonds is charged with reducing 
Federal spending by promoting the sale and retention of U.S. 
savings bonds. In addition to helping the U.S. Government 
finance its debts in the least expensive and least inflationary 
way possible, savings bonds provide Americans with an 
effective, systematic way to save through the payroll savings 
plan. The program is also intended to create a partnership of 
direct participation of American business, labor, banking, 
media, and community groups, as well as to provide the 
opportunity for all citizens to voluntarily participate in the 
financing of their Government.

                        Internal Revenue Service

                                summary

    The Committee has recommended a total of $7,694,383,000 for 
the Internal Revenue Service [IRS] in fiscal year 1998. This 
amount is $175,000,000 below the budget estimate and 
$651,256,000 above the fiscal year 1997 enacted level.

                 REALIGNMENT OF IRS BUDGET PRESENTATION

    The fiscal year 1998 budget request realigned the budget 
structure moving several compliance-related functions from the 
``Tax law enforcement'' appropriation to the ``Processing, 
assistance, and management'' appropriation and established a 
new category for telephone and correspondence program. 
According to IRS the proposed structure more closely aligns the 
budget activities with the Service's business lines. This is 
consistent with the Government Performance and Results Act 
requirements that agencies will align resources in the budget 
to match the way that programs are managed and will link 
resources to program outcomes. This will facilitate a clean 
audit opinion, provide maximum flexibility in balancing 
programs, and delineate between operational expenses and 
capital investments.
    A key element of the new structure is the consolidation of 
activities in which the IRS interacts with taxpayers by 
telephone and correspondence providing increased IRS 
flexibility to handle telephone calls and balance resources for 
peak periods for assistance and taxpayer account work. The 
Committee reserves judgment on the flexibility provided by the 
realigned structure but is hopeful that the realignment will 
result in increased management and oversight of resources.
    The Committee remains concerned about the ability to 
identify costs associated with both customer service and 
compliance as defined in the fiscal year 1997 structure. In 
order to be completely aware of these costs the Committee 
directs the IRS to provide a complete breakout of costs 
associated with customer service and compliance activities and 
to institute procedures to track these costs based on the 
fiscal year 1997 definitions, under the new structure.

                 processing, assistance, and management

Appropriations, 1997....................................  $1,790,288,000
Budget estimate, 1998...................................   2,943,174,000
Committee recommendation................................   2,943,174,000

    The Committee recommends an appropriation of $2,943,174,000 
for processing, tax assistance, and management. This amount is 
$1,152,886,000 above the fiscal year 1997 request.
    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.

                          Financial Management

    The Committee continues to be very concerned with the 
financial management of the IRS and the IRS' inability to 
adequately justify costs and performance. GAO's February 1997 
high-risk series notes that the IRS has made some progress in 
addressing its problems, but is still unable to pass a 
financial audit.
    The Committee remains very concerned with the IRS' 
inability to adequately justify costs and performance, and the 
Committee continues to remain very concerned about the 
financial management of the IRS.

                           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 1998 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.

                              Newport, VT

    The Committee understands that the Newport IRS office has 
been unable to fill five positions from within the Service. 
These positions must be filled if the Newport office is to be 
able to continue its excellent performance as one of two 
national centers for processing SS 8 forms. If the reduction-
in-force announcement issued by the IRS on July 7, 1997, does 
not result in the Newport positions being filled, the Committee 
urges the Service to approve a waiver for external hiring to 
allow the office to fill these positions from outside of the 
IRS.

                          Field Reorganization

    The fiscal year 1997 appropriations bill for IRS included a 
provision (section 105) which required the IRS to provide a 
report to the House and Senate Committees on Appropriations on 
the impact of the planned field organization before it could 
implement the reorganization. The Committee found the report 
lacking, particularly with regard to its cost/benefit analysis 
and its analysis of how adequate taxpayer service will be 
provided in the future. The Committee, therefore, directs the 
IRS to continue to delay its planned field reduction in force 
until it submits another report to the House and Senate 
Committees on Appropriations with a detailed plan on how the 
IRS will ensure adequate taxpayer service in the future. In 
addition, the Committee directs the IRS to include a detailed 
analysis of the impact of the field reorganization on the 
adequacy of taxpayer services in rural areas of the country in 
this report.

                     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 1998. This 
amount represents the same level as provided for this program 
in fiscal year 1997. 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.

                       problem resolution office

    The Committee notes the success in fiscal year 1997 of 
having the Alaska and Hawaii offices retain problem resolution 
staff to support the many tax compliance, tax education, 
taxpayer protection, and tax administration functions each 
local problem resolution office performs. The Committee 
concludes that this approach to handling such taxpayer service 
issues under the district office consolidation has merit for 
each State. Therefore, the Committee instructs the IRS to study 
the feasibility of providing one fully staffed problem 
resolution office in each State and provide a cost-benefit 
analysis of this proposal by February 1, 1998.

                            IRS RENTAL RATES

    The Committee directs the IRS to submit a plan indicating 
its progress in reducing space requirements commensurate with 
reduced staffing levels. The Committee believes a 10-percent 
reduction in space by the year 2001 to be a reasonable target. 
As a result, the Committee expects annual reports showing the 
Service's progress toward this goal. The first report is to be 
submitted to the House and Senate Committees on Appropriations 
by December 30, 1997.

             Tax Exempt Organizations and the Tour Industry

    The fiscal year 1997 conference report incorporated a 
provision that cited the emerging problem of tax-exempt 
competition with small business in the travel and tour 
industry. Because of increased growth in the number of tax-
exempt organizations that choose to engage in commercial 
activities and ambiguities in the definition of what is and 
what is not taxable, last year the Committee directed the IRS 
to review this situation and take steps, if necessary, to 
develop regulations clarifying the substantially related test 
as it applies to tax-exempt travel and tour activities.
    The Committee believes that this matter would be best 
resolved through the issuance of a regulation, thereby 
providing the fullest opportunity for public notice and 
comment. The Committee, therefore, directs the IRS to address 
this matter through a regulation within the next 6 months.

                          tax law enforcement

Appropriations, 1997....................................  $4,104,211,000
Budget estimate, 1998...................................   3,153,722,000
Committee recommendation................................   3,153,722,000

    The Committee recommends an appropriation of $3,153,722,000 
for tax law enforcement activities in fiscal year 1998. This 
amount is equal to the budget estimate.
    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.

                     Private Sector Debt Collection

    The Committee has previously provided a total of 
$32,000,000 for a private sector debt collection pilot 
projects. GAO recently reported that the pilot project, as 
structured, cannot collect adequate levels of overdue taxes. 
The Committee has requested that GAO work with the IRS to 
structure a pilot program and provide the legislative changes 
that would be necessary for a successful private debt 
collection pilot project.

                          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.

                          information systems

Appropriations, 1997....................................  $1,323,075,000
Budget estimate, 1998...................................   1,272,487,000
Committee recommendation................................   1,272,487,000

    The Committee recommends an appropriation of $1,272,487,000 
for information systems activities in fiscal year 1998. The 
Committee recommendation is equal to the budget request.
    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.

                         Modernization Efforts

    The Committee is pleased that the IRS has produced a 
modernization blueprint which was presented to Congress on May 
15, 1997. While there have been a number of plans in the past, 
this blueprint appears to be a product the IRS can use to 
develop a more detailed plan for implementation. The Committee 
believes the most important thing for the IRS, at this point, 
is to follow through on the processes and procedures it has 
established for investment review and systems life cycle. There 
is much that can be done to implement modernization and the IRS 
should not delay this process. In 1997, Congress directed the 
IRS to turn over a majority of its tax systems modernization 
work to the private sector. The Committee is pleased that the 
IRS is planing to develop and implement the modernization plan 
through new partnerships with the private sector.

                          Century Date Change

    The Committee believes that the century date change is and 
should be the IRS' highest priority. Once the requirements of 
the century date change are fulfilled, the IRS will need to 
focus attentions on the modernization effort.
    The Committee believes strongly that all efforts related to 
the century date change be funded as the IRS priority, and that 
no efforts strictly related to the modernization program be 
included as a century date change cost.

           CENTURY DATE CHANGE AND DATA CENTER CONSOLIDATION

    The Committee supports the data center consolidation as 
part of the century date change and is pleased at the 
efficiencies the IRS believes will result from this 
consolidation. According to the IRS the efficiencies include: 
replacing outdated technology, setting the platform for the 
future implementation of the modernization architecture, 
producing $300,000,000 in savings through future cost 
reductions, and reducing 600 positions over a 2-year period.
    To ensure the century date change compliance initiative and 
the data center consolidation occur, the Committee directs IRS 
to transfer $130,000,000 requested for development and 
deployment in fiscal year 1998 funds and to transfer 
$102,500,000 provided for development and deployment in fiscal 
year 1997 to the century date change and data center 
consolidation initiatives. In addition, the IRS is directed to 
apply $32,000,000 from the tax law enforcement private sector 
debt collection initiative.
    In transferring the fiscal year 1997 funding the Committee 
directs that development and deployment funding be continued 
for automated tax law programs, the telephone routing 
interactive systems, the compliance research information 
system, the customer service integrated case processing system, 
the electronic fraud detection system, the Telefile system, and 
a portion of the integrated submission processing strategy and 
workload management system.
    The Committee believes it is critical that the IRS verifies 
the conversion of all equipment prior to the year 2000. The 
Committee recommends that the IRS keep in mind the requirement 
that the program should be functional for a full calendar year 
prior to the year 2000.

      Seizure and Sale of Limited Entry Commercial Fishing Permits

    The Committee has included a new administrative provision 
to provide a long overdue solution to a conflict involving the 
seizure and sale by the IRS of State-issued limited entry 
commercial fishing permits. Section 6334 of the Internal 
Revenue Code exempts from levy tools of trade in certain 
circumstances and section 6343 gives the Secretary additional 
authority to release levies where the release will facilitate 
the collection of a tax liability. State limited entry 
commercial fishing permits are a unique tool of trade that 
generally exceed the dollar value threshold established under 
section 6334. It has come to the Committee's attention that the 
Secretary has not exercised the alternative authority under 
section 6343 to release levies on State commercial fishing 
permits even where the continued use of the permit would be 
more likely than a seizure and sale to result in the full 
collection of a tax liability. The Committee has, therefore, 
included a provision which prohibits the Secretary from 
expending funds to collect a tax liability by levy on a State 
limited entry permit unless the Secretary has first determined, 
in writing and by clear and convincing evidence, that the levy 
will facilitate the full collection of the liability.

                   Information Technology Investments

Appropriations, 1997....................................................
Budget estimate, 1998...................................    $500,000,000
Committee recommendation................................     325,000,000

    The Committee has denied the request for $500,000,000 for a 
capital investment account for future computer systems 
modernization efforts. The Committee supports wholeheartedly 
the IRS modernization efforts thus far; however, much more work 
needs to be done before this Committee can, in all good 
conscience, appropriate more money for any modernization 
effort.
    However, the Committee has provided an additional 
$325,000,000 in this account for the capital asset acquisition 
of information technology systems as they relate to the century 
date change and data center consolidation. Those funds will 
become available for obligation on September 1, 1998.

                     IRS--administrative provisions

    The Committee has recommended approval of the following 
administrative provisions for the Internal Revenue Service:
    Section 101 authorizes the IRS to transfer up to 5 percent 
of any appropriation made available to the agency in fiscal 
year 1998, to any other IRS account. The IRS is directed to 
follow the Committee's reprogramming procedures outlined 
earlier in this report.
    Section 102 is a provision which maintains a training 
program in taxpayer's rights and cross-cultural relations.
    Section 103 requires the IRS to maintain taxpayer services 
at not less than 1995 levels.
    Section 104 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 requires the IRS to institute and enforce 
policies and procedures which will safeguard the 
confidentiality of taxpayer information.
    Section 106 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 provides that no field support reorganization 
shall be undertaken in Aberdeen, SD, until the IRS toll-free 
help phone line assistance program reaches at least an 80 
percent service level, certified by the Commissioner.
    Section 108 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 from the 1996 level.
    Section 109 prohibits the Secretary of the Treasury from 
expending funds to collect a tax liability by levy on a State-
limited entry permit unless the Secretary has determined that 
the levy will facilitate the full collection of the liability.

                          U.S. Secret Service

                         salaries and expenses

Appropriations, 1997....................................    $531,288,000
Budget estimate, 1998...................................     575,971,000
Committee recommendation................................     570,809,000

    The Committee recommends an appropriation of $570,809,000 
for the U.S. Secret Service in fiscal year 1998. This amount is 
$39,521,000 above the fiscal year 1997 enacted level.

                        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.
    The Committee has provided $6,568,000 for continued White 
House security enhancements, $1,623,000 for fixed site and 
security maintenance, $2,830,000 for LAN replacement, 
$1,000,000 for year 2000 date conversion, $6,100,000 for 
FLEWUG/SNET, and $6,700,000 for vehicle replacement. The 
Committee has agreed to the administration's request to 
transfer $5,000,000 for anticounterfeiting from the violent 
crime reduction trust fund to this account.

                    Identity-Based Crime Prevention

    The Committee is concerned with the growing number of 
identity-based crimes in the United States. In 1994 alone, 
Federal and State officials spent an estimated $3,500,000,000 
on 350,000 cases of fraud, counterfeiting, and forgery, much of 
which is identity-based. The U.S. Government, citizens, and 
businesses lose well over $25,000,000,000 per year in identity-
based crimes. The Committee recognizes that the Secret Service 
has the primary Federal law enforcement jurisdiction in 
combating these crimes. Additionally, the Secret Service has 
demonstrated a leadership role in providing risk analysis of 
various identity-based crimes. Based upon this demonstrated 
success in this area, the Committee provides $1,460,000 in 
order for the Secret Service to provide technical assistance 
and to assess the effectiveness of this new technology which is 
intended to combat identity-based crimes. This technology is 
being developed in an effort to better verify identification 
securely and quickly, and will reduce crime in financial 
transactions.

                     Missing and Exploited Children

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

      acquisition, construction, improvement and related expenses

Appropriations, 1997....................................     $37,365,000
Budget estimate, 1998...................................       9,176,000
Committee recommendation................................       9,176,000

    The Committee recommends an appropriation of $9,176,000 for 
the ``Acquisition, construction, improvement and related 
expenses'' account in fiscal year 1998. This amount equals the 
budget estimate.

                       DEPARTMENT OF THE TREASURY

                           General Provisions

    The Committee recommends that certain general provisions be 
included in the Senate bill. The provisions do the following:
    Section 111 pertains to reprogramming instructions for 
unobligated funds.
    Section 112 authorizes certain basic services within the 
Treasury Department in fiscal year 1998, including purchase of 
uniforms; maintenance, repairs, and cleaning; purchase of 
insurance for official motor vehicles operated in foreign 
countries; and contracts with the Department of State for 
health and medical services to employees and their dependents 
serving in foreign countries.
    Section 113 requires that funds provided to ATF for fiscal 
year 1998 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 114 authorizes transfers, up to 2 percent, between 
law enforcement appropriations under certain circumstances.
    Section 115 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 116 requires the reimbursement of Secret Service 
personnel for certain fees and costs.
    Section 117 adjusts the compensation for the Secretary of 
the Treasury. This adjustment will take effect with the 
appointment of the next Secretary.
    The Committee understands that when former Secretary of the 
Treasury Lloyd Bentsen assumed the Office of the Secretary, the 
pay of that position was reduced by Public Law 103-2 (107 Stat. 
4 (1993)), in order to avoid the prohibition in article 1, 
section 6, clause 2 of the Constitution. The Constitution does 
not allow a Senator or Representative to be appointed to any 
office whose emoluments or pay have been increased as a result 
of congressional action during the tenure of that Senator or 
Representative. The Committee has included bill language to 
prospectively remedy this situation which will go into effect 
for the next Secretary.
    Section 118 establishes a consolidated pay system for the 
Uniformed Division of the Secret Service.
    Section 119 repeals section 117 of the fiscal year 1997 
appropriation dealing with the second private sector debt 
collection project.
    Section 120 designates the Port of Kodiak, AK, as a port of 
entry and waives the requirement of the U.S. Customs Service to 
establish a full-time office. The Committee intends to minimize 
costs to the U.S. Customs Service by allowing the Customs 
Service office in Anchorage, AK, to use existing personnel to 
perform Customs functions in Kodiak on an as-needed basis.

                     TITLE II--U.S. POSTAL SERVICE

                   Payment to the Postal Service Fund

Appropriations, 1997....................................     $90,463,000
Budget estimate, 1998...................................      86,274,000
Committee recommendation................................      86,274,000

    The Committee has recommended an appropriation of 
$86,274,000 in fiscal year 1998 for payment to the Postal 
Service fund. This amount is equal to the President's budget 
request.
    Revenue forgone on free and reduced-rate mail enables 
postage rates to be set at levels below the unsubsidized rates 
for certain second-class, third-class, and fourth-class mail as 
authorized by subsections (c) and (d) of section 2401 of title 
39, United States Code. Free mail for the blind and overseas 
voters will continue to be provided at the funding level 
recommended by the Committee.
    The funding provided by the Committee is allocated for the 
following purposes: $57,274,000 for free mail for the blind and 
overseas voters and $29,000,000 for the reimbursement to the 
Postal Service for subsidies provided for the revenue forgone 
program.
    The Committee 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 1998. 
These are services that must be maintained in fiscal year 1998 
and beyond. The Committee believes that, despite the lack of 
public service appropriations, these critical postal services 
are the linchpin of services that the public deserves and 
expects.

                           Pest Introductions

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

                               Newark, NJ

    The Committee understands that the Postal Service is 
interested in constructing a carrier and retail facility in the 
University Heights redevelopment area of Newark, NJ. The 
Committee supports this effect but understands that the Postal 
Service cannot move ahead with this project until funding has 
been authorized through the appropriate Committees for the 
cleanup of the environmental hazardous waste.

      Payment to the Postal Service Fund for Nonfunded Liabilities

Appropriations, 1997....................................     $35,536,000
Budget estimate, 1998...................................      34,850,000
Committee recommendation................................      34,850,000

    The Committee has recommended an appropriation of 
$34,850,000 in fiscal year 1998 for payment to the Postal 
Service fund for nonfunded liabilities. This amount is equal to 
the President's budget request.

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

                                Summary

    The President's fiscal year 1998 budget request for the 14 
accounts funded under this title totals $485,225,000. This 
amount is $61,884,000 above the total fiscal year 1997 
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. For accounts included in this title, the 
Committee recommends a total funding level of $429,826,000 for 
fiscal year 1998, equal to the total funding level requested by 
the President.

                     computer systems modernization

    The Committee has funded requests from the White House in 
previous years for modernizing computer systems. The Committee 
feels that the President should be provided with the support to 
operate at the highest levels of efficiency. However, it is 
necessary to have a plan and blueprint for modernization 
efforts, so that computer equipment is not procured for the 
sake of being state of the art. The Committee has included the 
funding the President has requested for automation 
enhancements, but has fenced all funding for requests over 
$50,000 pending the submission and approval of a systems 
architecture, milestone schedule, and estimate of funds 
required.

                     compensation of the president

Appropriations, 1997....................................        $250,000
Budget estimate, 1998...................................         250,000
Committee recommendation................................         250,000

    The fiscal year 1998 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, 1997....................................     $40,193,000
Budget estimate, 1998...................................      51,199,000
Committee recommendation................................      51,199,000

    The Committee recommends an appropriation of $51,199,000 
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. In addition, the Committee has fenced $873,000 of 
the funds appropriated in anticipation of a system 
architecture, milestone schedule, and an estimate of the funds 
required to support the capital investment.

                   WHITE HOUSE COMMUNICATIONS AGENCY

    As requested by the administration, the Committee has 
included $9,800,000 for the reimbursement of support services 
to the White House Office from the White House Communications 
Agency [WHCA]. These funds have been transferred from the 
Department of Defense in accordance with Public Law 104-201, 
the 1997 Defense Authorization Act.

                 Executive Residence at the White House

                           operating expenses

Appropriations, 1997....................................      $7,827,000
Budget estimate, 1998...................................       8,045,000
Committee recommendation................................       8,045,000

    The Committee recommends an appropriation of $8,045,000 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 33 tradespersons, 
including plumbers, carpenters, painters, on a single shift; 
electricians on a double shift; and operating engineers on a 
24-hour basis, maintains and makes repairs, minor 
modifications, and improvements to the 132 rooms and the 
mechanical systems, and provides support for official and 
ceremonial functions.
    A staff of 12 specialized employees provide services 
necessary to the operation of the White House and official and 
ceremonial functions. This staff includes four florists, four 
curators, and four calligraphers.
    An administrative staff consists of the chief usher, four 
assistant ushers, one executive grounds superintendent, one 
operating accountant, and one administrative officer. This 
staff is charged with management and administrative functions 
of the Executive Residence. This requires coordination with the 
Executive Office of the President, the National Park Service, 
the military, the U.S. Secret Service, the General Services 
Administration, and other agencies.
    During larger events, the Executive Residence staff is 
assisted by contract personnel under personal services contract 
agreements (service by agreement) to provide additional help as 
required for official and ceremonial functions.

                   White House Repair and Restoration

Appropriations, 1997....................................................
Budget estimate, 1998...................................        $200,000
Committee recommendation................................         200,000

    The Committee recommends an appropriation of $200,000 for 
White House repair and restoration. The Committee 
recommendation equals the budget estimate.

                  Special Assistance to the President

                         salaries and expenses

Appropriations, 1997....................................      $3,280,000
Budget estimate, 1998...................................       3,378,000
Committee recommendation................................       3,378,000

    The Committee recommends an appropriation of $3,378,000 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 21 full-time permanent positions in fiscal year 1998 
or the same as funded in fiscal years 1996-97.

                Official Residence of the Vice President

                           operating expenses

Appropriations, 1997....................................        $324,000
Budget estimate, 1998...................................         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 
in fiscal years 1996-97.

                      Council of Economic Advisers

                         salaries and expenses

Appropriations, 1997....................................      $3,439,000
Budget estimate, 1998...................................       3,542,000
Committee recommendation................................       3,542,000

    The Committee recommends an appropriation of $3,542,000 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, 1997....................................      $3,867,000
Budget estimate, 1998...................................       3,983,000
Committee recommendation................................       3,983,000

    The Committee recommends $3,983,000 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, 1997....................................      $6,648,000
Budget estimate, 1998...................................       6,648,000
Committee recommendation................................       6,648,000

    The Committee recommends an appropriation of $6,648,000 for 
the salaries and expenses of the National Security Council 
[NSC]. The Committee recommendation equals the budget estimate.
    The primary purpose of the Council is to advise the 
President with respect to the integration of domestic, foreign, 
and military policies relating to the national security. 
Subject to direction by the President, it is the responsibility 
of the Council to assess and appraise the objectives, 
commitments, and risks of the United States in relation to 
actual and potential military power, to consider policies on 
matters of common interest to the departments and agencies of 
the Government, and to make recommendations and other reports 
to the President.
    The funding level provided by the Committee will support 60 
full-time equivalent positions, or the same as the fiscal years 
1996-97 levels for the normal activities of the NSC.

                        Office of Administration

                         salaries and expenses

Appropriations, 1997....................................     $26,100,000
Budget estimate, 1998...................................      28,883,000
Committee recommendation................................      28,883,000

    The Committee recommends an appropriation of $28,883,000 
for the Office of Administration in fiscal year 1998. The 
Committee recommendation equals the budget estimate.
    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. Of the funding provided for the Office of 
Administration, $2,000,000 of the funds may not be obligated 
until the director has submitted a systems architecture, 
milestone schedule, and an estimate of the funds required to 
support the capital investment.

                    Office of Management and Budget

                         salaries and expenses

Appropriations, 1997....................................     $55,573,000
Budget estimate, 1998...................................      57,240,000
Committee recommendation................................      57,240,000

    The Committee recommends an appropriation of $57,240,000. 
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 answers to these questions are responded to 
in a timely manner. The Committee directs OMB to work with all 
departments and agencies to ensure the Committee is given the 
courtesy of timely responses.

                     YEAR 2000 SOFTWARE CONVERSION

    The Committee continues to have significant concerns 
regarding the Government's ability to have its computer systems 
ready for the century date conversion in the year 2000. 
Specifically, the Committee is concerned that the 
Governmentwide estimate of $2,300,000,000 for the conversion is 
understated and that agencies are not allowing adequate time 
for the validation of the converted systems. Therefore, the 
Committee directs OMB to report to the Senate Committee on 
Appropriations and the Senate Committee on Governmental 
Affairs, on a quarterly basis, on the progress being made on 
the year 2000 conversion. The reports should include a summary 
of agency costs to date, and a summary of agency validation 
schedules, in addition to contingency plans in the event the 
validation schedule is not met. Finally, the Committee directs 
OMB to identify other Governmentwide systems that are date 
sensitive as part of the first quarterly report provided to the 
Committees by January 1, 1998.

                   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 1999 budget request.

                          ENERGY CONSERVATION

    The Committee continues to believe that the Federal 
Government needs to give greater priority to reducing the 
energy costs associated with the facilities it owns, leases, 
and operates. Therefore, the Committee directs that the report 
which was required by the Committee in Public Law 104-208 be 
furnished annually. The Committee further directs that the 
acquisition of all energy conservation measures or related 
services by any Federal agency should be obtained in a 
competitive manner.
    The Committee provides that no funds in this act, or any 
other act hereinafter enacted, may be used for the sole source 
procurement of energy conservation measures or any related 
services applied to Federal buildings pursuant to part 3 of 
title V (42 U.S.C. 8251 et seq.) and title VIII (42 U.S.C. 8287 
et seq.) of the National Energy Conservation Policy Act or 
section 201(a) of the Federal Property and Administrative 
Services Act (40 U.S.C. 481(a)) or section 2801(a) of Public 
Law 102-484 (10 U.S.C. 2865(d)). However, the special 
procurement authorities under section 8(a) of the Small 
Business Act (15 U.S.C. 637a) shall remain available for the 
acquisition of energy conservation measures or any related 
services by any Federal agency.

                 Office of National Drug Control Policy

                         salaries and expenses

Appropriations, 1997....................................     $35,838,000
Budget estimate, 1998...................................      36,016,000
Committee recommendation................................      36,016,000

    The Committee recommends an appropriation of $36,016,000. 
This recommendation equals the budget estimate.
    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.

                counterdrug technology assessment center

    The Anti-Drug Abuse Act of 1988, Public Law 100-690, was 
amended during 1990 to provide for the establishment of a 
Counterdrug Technology Assessment Center within the Office of 
National Drug Control Policy. This Office is authorized to 
serve as the central counternarcotics enforcement research and 
development organization of the U.S. Government. The law 
provides for the appointment of a chief scientist to head up 
this new center, to make a priority ranking of scientific needs 
according to fiscal and technological feasibility as part of 
the national counterdrug enforcement research and development 
strategy.
    The Committee has provided $26,500,000, including funding 
through VCRTF, for counternarcotics research and development 
projects in fiscal year 1998.
    The Committee expects multiagency research and development 
programs to be coordinated by the Counterdrug Technology 
Assessment Center in order to prevent duplication of effort and 
to assure that whenever possible, those efforts provide 
capabilities that transcend the need of any single Federal 
agency. Prior to the obligation of these funds, the Committee 
expects to be notified by the chief scientist on how these 
funds will be spent; it also expects to receive periodic 
reports from the chief scientist on the priority counterdrug 
enforcement research and development requirements identified by 
the Center and on the status of projects funded by CTAC.
    The Committee believes CTAC should work closely and 
cooperatively with the individual law enforcement agencies in 
the definition of a national research and development program 
which addresses agency requirements with respect to timeliness, 
operational utility, and consistency with agency budget plans. 
CTAC should develop a true blueprint for the program to include 
identification and assignment of priority projects, expected 
results, and funding projections based on agency priorities and 
expected results. This effort should be led by CTAC with input, 
review, and consensus from drug control agencies. The blueprint 
should include descriptions of the necessary conference and 
outreach efforts. The national blueprint shall also include the 
rationale for allocation of funding among demand, supply, and 
State and local efforts. The Committee expects agencies to 
support CTAC by defining the expected value of the projects 
they advocate and placing them in the context with agency and 
national goals and programs. Agencies should also identify the 
expected cost and benefits of procuring sufficient quantities 
of equipment under development, assuming it is successful. The 
Committee believes CTAC should recognize the ultimate 
requirements for technology procurement if technology 
development is successful and advocate funding requests for 
such equipment. Finally, the Committee believes CTAC should 
recognize and support agency contributions to research and 
development and work to strengthen those capabilities.

                          unanticipated needs

Appropriations, 1997....................................................
Budget estimate, 1998...................................      $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, 1997....................................    $127,102,000
Budget estimate, 1998...................................     140,207,000
Committee recommendation................................     140,207,000

    The Committee recommends an appropriation of $140,207,000. 
This amount is equal to the President's request.
    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 15 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), and the Rocky Mountain 
(Colorado, Utah, Wyoming). The Committee directs that funding 
shall be provided for the existing HIDTA's at no less than the 
fiscal year 1997 level.
    A total of not less than $71,000,000 is provided in this 
account specifically for assistance to State and local drug 
control agencies in the 15 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 1998 strategies for each of 
the HIDTA's to the Committee for review and to obligate the 
HIDTA funds within 120 days of enactment of this act. This 
provision may be waived if a request is made to the Committee 
and has been approved in advance according to the normal 
reprogramming procedures. The Committee expects the Director to 
take actions necessary to ensure that all HIDTA funds are being 
used to support only those activities which are directly linked 
to the individual HIDTA strategies recommended by the HIDTA 
coordinators and which support the goals and objectives 
outlined in each of these strategies.

                        Violent Crime Trust Fund

    The Committee has provided an additional $3,000,000 for the 
HIDTA's in the violent crime trust fund. These funds are 
intended to supplement the existing funding for the Rocky 
Mountain HIDTA. The Director is instructed to provide this 
funding to the Rocky Mountain HIDTA along with full funding 
level provided for in the 1998 request. The Committee expects 
the Director to consult the Committee with regard to 
distribution of funds following established procedures.

                        Special Forfeiture Fund

Appropriation, fiscal year 1997.........................    $112,900,000
Budget estimate, fiscal year 1998.......................     175,000,000
Committee recommendation................................     145,300,000

    The Committee recommends an appropriation of $145,300,000. 
This amount is $32,400,000 more than the fiscal year 1997 
request.
    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.
    Of the funds provided, $110,000,000 is for a national media 
campaign to reduce and prevent drug use among young Americans, 
$10,000,000 shall be to initiate a program of matching grants 
to drugfree communities, as authorized by the Drug-Free 
Communities Act of 1997, $10,000,000 is to continue and expand 
the methamphetamine reduction efforts, $6,000,000 is for the 
establishment of a Federal drugfree prison demonstration 
project, and $9,300,000 is provided to continue to support the 
reduction of drug use for those involved in the criminal 
justice system.

                        National Media Campaign

    ONDCP proposed a 5-year media campaign at a total cost to 
the Federal Government of $875,000,000. An explicit assumption 
of this proposal is that the Federal funds will be matched by 
private contributions. Together, this will represent an 
investment of nearly $1,800,000,000. Although the Committee is 
pleased that the administration has revived its commitment to 
drug-reduction efforts, the Committee is disappointed in the 
lack of information and planning efforts associated with this 
proposal that has been provided to the Committee. The Committee 
believes the national media campaign proposed by the 
administration is meritorious; however, the Committee also 
believes that fully funding this program at the requested level 
is premature at this time. As a result, this Committee has 
provided $110,000,000 to conduct a national media campaign.
    In order to ensure accountability, the Committee requires 
the Director of ONDCP to certify that these funds will neither 
displace nor replace current antidrug community-based coalition 
efforts, and that no funds will be used for partisan political 
purposes. Additionally, the Committee requires ONDCP to develop 
a system to measure success in terms of outcomes of the 
campaign and report to Congress on their progress within 1 
year. The Committee believes that quantifiable performance 
measures should capture the use of all categories of drugs as 
well as changes in the attitudes of youth toward drug use.
    The Committee directs ONDCP to assess all media vehicles 
available for this campaign including, but not limited to, 
broadcast and print media, and the Internet. Further, the 
Committee believes ONDCP should consult with media and drug 
experts, such as the Ad Counsel and the Partnership for a Drug-
Free America, in an effort to draw from the experience and 
expertise of individuals and organizations that have experience 
in this field. The Committee believes that close consultation 
with the private sector on the development and implementation 
of this national campaign is critical to its success.
    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 drugfree 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.

                   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 $10,000,000 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.

                        METHAMPHETAMINE FUNDING

    The Committee recognizes the importance of drug 
interdiction initiatives being conducted high-intensity drug 
trafficking areas [HIDTA's], especially their role in 
coordinating the activities of State and local agencies in our 
Nation's war against drugs. The Committee is concerned about 
statistics which reveal the proliferation of methamphetamine 
[meth] use in the Midwest and Rocky Mountain regions. The rural 
Midwest and Rocky Mountains are a popular location for the 
manufacture as well as distribution and transportation of 
methamphetamine throughout these areas. As a result, the 
Committee directs ONDCP to conduct a pilot in Colorado and 
Wisconsin to address this issue and encourages ONDCP to work 
with local law enforcement, police, and sheriffs to improve 
efforts to combat the meth problem.

 REDUCING DRUG USE AMONG THOSE INVOLVED IN THE CRIMINAL JUSTICE SYSTEM

    The Committee would like to continue the work that was done 
by the Office of National Drug Control Policy by providing 
$9,300,000 for further development of this program. The 
Committee expects that the program will continue to target a 
reduction in drug use, crime, and violence by linking criminal 
justice and drug treatment systems.

                     TITLE IV--INDEPENDENT AGENCIES

 Committee for Purchase From People Who Are Blind or Severely Disabled

                         salaries and expenses

Appropriations, 1997....................................      $1,800,000
Budget estimate, 1998...................................       1,940,000
Committee recommendation................................       1,940,000

    The Committee recommends $1,940,000 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, 1997....................................     $28,165,000
Budget estimate, 1998...................................      34,516,000
Committee recommendation................................      29,000,000

    The Committee recommends an appropriation of $29,000,000 
for the Federal Election Commission [FEC]. The Committee 
recommendation is $5,516,000 below the budget request.
    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, 1997....................................     $21,588,000
Budget estimate, 1998...................................      22,039,000
Committee recommendation................................      22,039,000

    The Committee recommends an appropriation of $22,039,000 
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

                      construction and acquisition

Limitation on availability of revenue, 1997.............    $657,711,000
Limitation on availability of revenue, 1998.............................
Committee recommendation................................................

    The Committee recommends no revenues coming into the 
Federal buildings fund [FBF] be used for new construction or 
acquisition in fiscal year 1998. As a result of a shortfall to 
the fund, revenues normally used to provide for new 
construction or acquisition are being applied to previously 
authorized projects.
    The Committee agrees with the administration's proposal, 
the consequence of which is at least a 1-year moratorium on new 
construction. Due to the inability of GSA to accurately 
calculate the amount of income coming into the FBF and to 
correctly estimate the completion date of construction 
projects, the administration and the Congress have, in past 
appropriations action, assumed a greater level of funds 
available for FBF activities than was actually collected.
    The Committee is further concerned at GSA's inability to 
complete a revised RENT system. Since agencies are currently 
developing fiscal year 1999 budget requests, the lack of a 
revised system indicates the problems existing within the FBF 
will not be resolved expeditiously. Because the Committee could 
not fund any new construction projects, including site 
acquisition, in fiscal year 1998 based on GSA's 5-year 
courthouse construction plan, it fully intends to begin with 
those prioritized projects when funding becomes available.

                               DENVER, CO

    The Administrator of General Services is directed to report 
to the Committee within 60 days of enactment of this act on a 
proposal for the reacquisition of the parcel of land on block 
111, East Denver, Denver, CO, which was sold at public auction 
by the Federal Government in 1988.

                        Courthouse Construction

    The Committee takes this opportunity to congratulate the 
General Services Administration, as well as the Administrative 
Office of the Courts [AOC] for their efforts reducing the cost 
of construction of Federal courthouses. Questions have arisen 
in the past about the need and scope of courthouse 
construction. Significant strides have been made over the past 
year. The Committee required the AOC to provide a 5-year plan 
outlining in priority order the need for court space.
    The Committee has included a provision requiring that no 
funds made available shall be used to transmit a fiscal year 
1999 request for U.S. courthouse construction that does not 
meet the design guide standards for construction established 
and approved by the General Services Administration, the 
Judicial Conference of the United States, and the Office of 
Management and Budget. In addition, the request must reflect 
the priorities of the Judicial Conference and set out its 
approved 5-year construction plan. Finally, the fiscal year 
1999 request must be accompanied by a standardized courtroom 
utilization study of each facility to be constructed, replaced, 
or expanded.

                             WHITE OAK, MD

    The Committee strongly supports the consolidation of the 
Food and Drug Administration [FDA] at the White Oak Naval 
Surface Warfare Center in Maryland and directs the General 
Services Administration [GSA] to proceed expeditiously in 
developing a business plan and implementation strategy to 
provide new space and facilities for the FDA. Furthermore, the 
Committee urges GSA to continue working with the Food and Drug 
Administration to identify potential sources of funds required 
to complete the project in a timely manner.

               CENTERS FOR DISEASE CONTROL AND PREVENTION

    The Committee recognizes the public health mission of the 
Centers for Disease Control and Prevention [CDC] and commends 
CDC for its history of success in preventing and responding to 
the public health concerns of the country. The Committee is 
also aware of the delay in the construction of the CDC's new 
laboratory and research facilities as a result of the lack of 
available General Services Administration funds in fiscal year 
1998 for new construction. The CDC fee laboratory, located in 
Atlanta, GA, is currently in the first of a two-phase 
construction project to replace their current facility. The 
Committee recognizes the need for the completion of this 
facility and urges GSA to give the project priority 
consideration within GSA's new construction guidelines.
    The Committee also recognizes that the Division of Vector-
Borne Infectious Diseases [DVID] for the Centers for Disease 
Control and Prevention [CDC], in Fort Collins, CO, is 
responsible for surveillance, prevention and control of vector-
borne viral and bacterial diseases. The current facility is 30 
years old and has numerous age-related biosafety and security 
issues which need to be addressed for the purposes of CDC's 
public health and safety mission. The Committee recognizes the 
complication of the situation in that CDC leases its DVID 
laboratory space. Therefore, the Committee urges GSA to 
continue to work with CDC in developing a solution to CDC's 
DVID laboratory facilities needs.

                        repairs and alterations

Limitation on availability, 1997........................    $639,000,000
Limitation on availability, 1998........................     434,000,000
Committee recommendation................................     350,000,000

    The Committee recommends new obligational authority of 
$350,000,000 for repairs and alterations in fiscal year 1998. 
The Committee recommendation is $84,000,000 below the budget 
estimate.
    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.

                PROSPECTUS LEVEL REPAIRS AND ALTERATIONS

    Due to the Federal buildings fund [FBF] inability to 
predict rent revenue for fiscal year 1997, utilizing accurate 
technical assumption to determine construction completion dates 
and to project the impact of downsizing on agencies space 
requirements the fund can not support prospectus level repairs 
and alterations in fiscal year 1998. Over the past 5 years the 
funding of building modernizations, to ensure the proper 
maintenance of the Federal Government's assets, has been a 
priority for both the administration and Congress. GSA, through 
the application of inaccurate financial information, has 
created a situation where this priority program will be halted 
in fiscal year 1998. As a result, the Committee is displeased 
and concerned that GSA is not able to carry out its stewardship 
role of maintaining the Federal assets for the future.
    In the past the FBF has been able to function as a quasi-
revolving fund with agencies rents paying for the necessary 
repairs, alterations, operations, and rental of space. This 
system obviously is not working. As a result, the Committee 
directs GSA to include in its revised rent system an 
identifiable component which will provide funding for the 
modernization of each Federal facility at the end of its useful 
life, which is typically considered to be at least 30 years. In 
addition, GSA will report, by December 30, 1997, to the House 
and Senate Committees on Appropriations on the feasibility of 
developing repair and alteration sinking funds to ensure the 
necessary funds are available when needed.
    Below is the list of line item projects recommended for 
funding by the Committee for fiscal year 1998.

Repairs and alterations:
    Chlorofluorocarbons program.........................     $50,000,000
    Basic repairs and alterations.......................     300,000,000

                     Building Security Enhancements

    The Committee has included the funding requested by the 
administration to enhance Federal building security. The 
Committee expects to be kept apprized of the plans for 
security, as well as the cooperation of tenant agencies, in 
efforts to better secure Federal facilities. The GSA should 
also make every effort to seek out and utilize the most modern 
technology in this effort. The Committee urges the GSA to 
address the costs of retrofitting Federal facilities with 
security window film to mitigate potential losses, as 
stipulated in the June 28, 1995, Presidential memorandum, and 
report to the Committee, as a part of the fiscal year 1999 
budget submission.

                            PHILADELPHIA, PA

    The Committee is aware of the need for repairs to the 
Byrne-Greene Federal complex in Philadelphia, PA. It is 
estimated that $12,500,000 will be required to undertake this 
necessary work. The Committee urges the General Services 
Administration to give priority consideration to the need for 
repairs at the Byrne-Greene Federal complex, consistent with 
General Services Administration's repairs and alterations 
priority projects.

                             PITTSBURGH, PA

    The Committee is also aware of the need for repairs to the 
U.S. Post Office and courthouse in Pittsburgh, PA. It is 
estimated that $3,600,000 will be required for the design of 
this project. The Committee urges the General Services 
Administration to give priority consideration to the need for 
repairs at the Pittsburgh Post Office and courthouse, 
consistent with General Services Administration's repairs and 
alterations priority projects.

                              AVONDALE, MD

    The Committee is aware of concerns about trespassing, 
vandalism, and the general deteriorating condition of the 
former Bureau of Mines property in Avondale, MD. The Committee 
understands that GSA is in the process of disposing of the 
property and directs GSA to maintain the necessary level of 
security to ensure that the buildings and grounds are protected 
until such time as the property is disposed.

                    installment acquisition payments

Limitation on availability, 1997........................    $173,075,000
Limitation on availability, 1998........................     142,542,000
Committee recommendation................................     142,542,000

    The Committee recommends a limitation of $142,542,000 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, 1997........................  $2,343,795,000
Limitation on availability, 1998........................   2,275,340,000
Committee recommendation................................   2,275,340,000

    The Committee recommends a limitation of $2,275,340,000 for 
rental of space. The Committee recommendation is equal to the 
budget estimate.
    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.

                          Building Operations

Limitation on availability, 1997........................  $1,552,651,000
Limitation on availability, 1977........................   1,331,789,000
Committee recommendation................................   1,331,789,000

    The Committee recommends a limitation of $1,331,789,000 for 
building operations. The Committee recommendation is equal to 
the budget estimate.
    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.

                         policy and operations

                         salaries and expenses

Appropriations, 1997....................................    $110,173,000
Budget estimate, 1998...................................     104,487,000
Committee recommendation................................     104,487,000

    The Committee recommends an appropriation of $104,487,000 
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.

                           Child Care Centers

    The Committee recommends that of the funds provided the 
Office of Policy and Oversight, 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 and 
work with agencies to ensure that the equipment is conveyed to 
the school or organization quickly and at the least cost to the 
institution. The Committee further directs GSA to work with the 
regional Federal executive boards providing guidance and 
assistance to help establish regional clearinghouses of 
information on the availability of excess computer surplus 
equipment in each region. This information should be made 
readily available to schools.

              Federal Office Building in Colorado Springs

    The Federal Building located at 1520 Willamette Avenue 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 considering options to 
vacate the facility when its lease expires at the end of fiscal 
year 1998. 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 United States 
Olympic Committee's 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, 1997....................................     $33,863,000
Budget estimate, 1998...................................      33,870,000
Committee recommendation................................      33,870,000

    The Committee recommends an appropriation of $33,870,000 
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, 1997....................................      $2,180,000
Budget estimate, 1998...................................       2,250,000
Committee recommendation................................       2,208,000

    The Committee recommends $2,208,000 for allowances and 
office staff for former Presidents. This recommendation is 
$42,000 less than 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 
1998 funding:

                       ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS, FISCAL YEAR 1998                      
----------------------------------------------------------------------------------------------------------------
                                                             Former Presidents                                  
                                               --------------------------------------------   Widows     Total  
                                                   Ford      Carter     Reagan      Bush                        
----------------------------------------------------------------------------------------------------------------
Personnel compensation........................    $96,000    $96,000    $96,000    $96,000  .........   $384,000
Personnel benefits............................     25,000      5,000     24,000     41,000  .........     95,000
Benefits for former personnel: Pensions.......    148,000    148,000    148,000    148,000    $20,000    612,000
Travel........................................     50,000      2,000     26,000     50,000  .........    128,000
Rental payment to General Services                                                                              
 Administration...............................     75,000     90,000    270,000    136,000  .........    571,000
Communications, utilities, miscellaneous                                                                        
 charges:                                                                                                       
    Telephone.................................     17,000     30,000     15,000     24,000  .........     86,000
    Postage...................................      6,000     19,000     10,000     12,000      2,000     49,000
Printing......................................      6,000      1,000     14,000      7,000  .........     28,000
Other services................................     24,000     78,000     75,000     52,000  .........    229,000
Supplies and materials........................      8,000     11,000     16,000     11,000  .........     46,000
Equipment.....................................  .........     16,000      3,000      3,000  .........     22,000
                                               -----------------------------------------------------------------
      Total obligations.......................    455,000    469,000    697,000    580,000     22,000  2,250,000
----------------------------------------------------------------------------------------------------------------

                         gsa general provisions

    The Committee has recommended the inclusion of the 
following general provisions:
    Section 401 authorizes GSA to credit accounts with certain 
funds received from Government corporations.
    Section 402 authorizes GSA to use funds for the hire of 
passenger motor vehicles.
    Section 403 authorizes GSA to transfer funds within the 
Federal buildings fund for meeting program requirements.
    Section 404 modifies the provision which limits funding for 
courthouse construction which does not meet certain standards 
of a capital improvement plan.
    Section 405 continues the provision providing no funds may 
be used to increase the amount of occupiable square feet, 
provide cleaning services, security enhancements, or any other 
service usually provided, to any agency which does not pay the 
requested rate.
    Section 406 includes a new provision repealing section 10 
of Public Law 100-440 which sets a limit on the number of 
employees in the FPS.
    Section 407 includes a new provision which allows pilot 
information technology projects to be repaid from the 
information technology fund.
    Section 408 continues the provision ensuring the materials 
used for the facade on the U.S. Courthouse Annex, Savannah, GA, 
project are compatible with the existing building.
    Section 409 includes a new provision repealing section 6 of 
Public Law 103-123.
    Section 410 includes a new provision to repeal section 1555 
of Public Law 103-355.

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

Appropriations, 1997....................................................
Budget estimate, 1998...................................      $2,000,000
Committee recommendation................................................

    The Committee recommends no funding for this project.

               John F. Kennedy Assassination Review Board

                         salaries and expenses

Appropriations, 1997....................................      $2,150,000
Budget estimate, 1998...................................       1,600,000
Committee recommendation................................       1,600,000

    The Committee recommends $1,600,000 for fiscal year 1998 
for salaries and expenses of the John F. Kennedy Assassination 
Review Board. The Committee recommendation equals the budget 
request.
    The John F. Kennedy Assassination Review Board was 
established by Public Law 102-526, the John F. Kennedy 
Assassination Records Collection Act of 1992. The Board 
facilitates the public disclosure of previously public or 
privately held records relating to the assassination of 
President Kennedy. In addition, the Board is assisting in 
dispelling longstanding myths and controversies surrounding the 
assassination of President Kennedy through the release of 
previously sequestered records.
    This final appropriation for the Review Board includes 
$100,000 for the prompt and orderly termination of the John F. 
Kennedy Assassination Record Review Board to be concluded no 
later than September 30, 1998.

                     Merit Systems Protection Board

                         salaries and expenses

Appropriations, 1997....................................     $23,923,000
Budget estimate, 1998...................................      24,450,000
Committee recommendation................................      24,810,000

    The Committee recommends an appropriation of $24,810,000 
for the Merit Systems Protection Board. The Committee 
recommendation is $360,000 greater than the budget estimate. 
This funding level reflects MSPB's request for additional 
funding to meet workload increases. This funding does not 
provide for additional investments in capital equipment.
    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, 1997....................................      $2,430,000
Budget estimate, 1998...................................       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, 1997....................................    $196,963,000
Budget estimate, 1998...................................     206,479,000
Committee recommendation................................     206,479,000

    The Committee recommends an appropriation of $206,479,000. 
The Committee recommendation is equal to the budget estimate.
    The National Archives and Records Administration became an 
independent agency on April 1, 1985. This appropriation 
provides for basic operations dealing with management of the 
Government's archives and records, operation of Presidential 
libraries, grants for historical publications, and for the 
review for declassification of all security classified 
information.
    Records center.--The records center activity provides for 
the accessioning, storage, reference service, and disposal of 
the semiactive and noncurrent records of Federal agencies 
through a nationwide system of 14 records centers. Significant 
savings result from use of low-cost records storage and the 
efficient and timely disposal of nonpermanent records.
    Archives and related services.--This activity provides for 
selecting, preserving, describing, and making available to the 
general public, scholars, and Federal agencies, the permanently 
valuable historical records of the Federal Government and the 
historical material in Presidential libraries, related 
publications and exhibit programs, and the appraisal of all 
Federal records. It also provides for the publication of the 
Federal Register and Code of Federal Regulations, the U.S. 
Statutes at Large, Presidential documents, and for a program to 
improve the quality of regulations and the public's access to 
them. It provides for the National Audiovisual Center's 
audiovisual information and management programs. It also 
provides for the systematic review of all classified records in 
the National Archives which are over 30 years old, except 
intelligence and cryptological materials dated after 1945, 
which are to be reviewed when 50 years old.
    Program direction.--This activity provides for general 
direction and program support for all programs assigned to the 
National Archives and Records Administration [NARA]. Direction 
is provided by the Archivist, his staff, and the Office of 
Management and Administration.

                  Alaska Gold Rush Records Collection

    Alaskan communities are preparing to celebrate the 
centennial of the Alaska Gold Rush of 1898, the best known and 
publicized of the gold rushes in Alaska. Within the funds 
provided, the Committee recommends that the National Archives 
consider providing $50,000 to the National Archives--Alaska 
Region to prepare an interpretive exhibition on their Alaska 
gold rush records collection.

 archives facilities and presidential libraries repair and restoration

Appropriations, 1997....................................     $16,229,000
Budget estimate, 1998...................................       6,650,000
Committee recommendation................................      13,650,000

    The Committee recommends an appropriation of $13,650,000. 
The Committee recommendation is $7,000,000 above the budget 
estimate.
    This account provides for the repair, alteration, and 
improvement of the Archives facilities and Presidential 
libraries nationwide, and for providing adequate storage for 
archival holdings nationwide. It will better enable the 
National Archives to provide adequate storage for holdings, to 
maintain its facilities in proper condition for public 
visitors, researchers, and employees in NARA facilities, and to 
maintain the structural integrity of the buildings.

                             Truman Library

    The Committee has provided $4,000,000 within this 
appropriation for the repair, alteration, and improvements of 
the Truman Library in Independence, MO.

                              lbj Library

    The Committee has provided $3,000,000 for internal repairs 
to the Lyndon Baines Johnson Presidential Library located at 
the University of Texas at Austin. While it is understood that 
the LBJ Library structure is a responsibility of the University 
of Texas, the funds provided would be properly applied to 
improvements to the internal structure of the Library facility.

        National Historical Publications and Records Commission

                             grants program

Appropriations, 1997....................................      $5,000,000
Budget estimate, 1998...................................       4,000,000
Committee recommendation................................       5,000,000

    The Committee recommends an appropriation of $5,000,000. 
The Committee recommendation is $1,000,000 above the budget 
request.
    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.

         Alaska Gold Rush Records Inventory and Access Project

    Alaskan communities are preparing to celebrate the 
centennial of the Alaska Gold Rush of 1898, the best known and 
publicized of the gold rushes in Alaska. Among the projects 
developed by the Alaska gold rush centennial task force is a 
statewide cooperative community project, Alaska gold rush 
records inventory and access project, which would allow for the 
identification and processing of a significant quantity of 
historically significant Alaska gold rush records currently in 
local depositories in Alaska's many remote communities. This 
project would greatly increase public access and appreciation 
of these historical materials. Within the funds provided, the 
Committee recommends that the NHPRC consider a grant of 
$100,000 to the Alaska gold rush centennial projects.

                      Office of Government Ethics

                         salaries and expenses

Appropriations, 1997....................................      $8,078,000
Budget estimate, 1998...................................       8,265,000
Committee recommendation................................       8,265,000

    The Committee recommends an appropriation of $8,265,000 for 
salaries and expenses of the Office of Government Ethics in 
fiscal year 1998. This amount equals 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, 1997....................................     $87,286,000
Budget estimate, 1998...................................      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 instructs OPM to expend up to $300,000 in 
fiscal year 1998 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 utilize the unique expertise 
that has been demonstrated by the University of Hawaii in this 
project.

                           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 
location and assuming the per diem, as well as travel costs.

                               limitation

                          (transfer of funds)

Limitation, 1997........................................     $94,736,000
Budget estimate, 1998...................................      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, 1997....................................        $960,000
Budget estimate, 1998...................................         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 1998. 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.
    The administration has requested that funding for 
operations of the Office of Inspector General be shifted from 
its current allocation of 60 percent trust funds and 40 percent 
general funds to 90 percent trust funds and 10 percent general 
funds to reflect actual costs associated with actual work. This 
appropriation continues to reflect that change.

               (limitation on transfer from trust funds)

Limitation, 1997........................................      $8,645,000
Budget estimate, 1998...................................       8,645,000
Committee recommendation................................       8,645,000

    The Committee recommends a limitation on transfers from the 
trust funds in support of the Office of Inspector General 
activities totaling $8,645,000 for fiscal year 1998, as 
requested. This amount equals the budget estimate.

      government payment for annuitants, employees health benefits

Appropriations, 1997....................................  $4,059,000,000
Budget estimate, 1998...................................   4,338,000,000
Committee recommendation................................   4,338,000,000

    The Committee recommends an appropriation of $4,338,000,000 
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, 1997....................................     $33,000,000
Budget estimate, 1998...................................      32,000,000
Committee recommendation................................      32,000,000

    The Committee recommends an appropriation of $32,000,000 
for the Government payment for annuitants, employee life 
insurance in fiscal year 1998. 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, 1997....................................  $7,989,000,000
Budget estimate, 1998...................................   8,336,000,000
Committee recommendation................................   8,336,000,000

    The Committee recommends an appropriation of $8,336,000,000 
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 1998.
    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 1998 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 3 percent in 
January 1997. 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 1998 current appropriation request represents an increase 
of $347,000,000 from the amount provided in fiscal year 1997 
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. The permanent indefinite authorization in fiscal year 
1998 will also include the 10th of 30 annual payments 
authorized by Public Law 99-335, Federal Employees' Retirement 
Act of 1986, to amortize the supplemental liability of the 
Federal Employees' Retirement System [FERS]. It also includes a 
payment 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, 1997....................................      $8,116,000
Budget estimate, 1998...................................       8,450,000
Committee recommendation................................       8,450,000

    The Committee recommends an appropriation of $8,450,000 for 
the Office of Special Counsel. The Committee recommendation is 
equal to the budget estimate.
    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, 1997....................................     $33,781,000
Budget estimate, 1998...................................      34,293,000
Committee recommendation................................      34,293,000

    The Committee recommends an appropriation of $34,293,000 
for the U.S. Tax Court. This amount equals the budget estimate.
    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 1998, 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 limiting the use of appropriated funds to the 
current fiscal year.
    Section 502 regarding consultant services.
    Section 503 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 prohibits the transfer of control over the 
Federal Law Enforcement Training Center.
    Section 505 regarding the use of funds for certain 
propaganda purposes.
    Section 506 prohibits use of funds appropriated in this act 
to prevent the U.S. Postal Service employees from contacting 
their Member of Congress.
    Section 507 permits the Office of Personnel Management to 
accept donations for the Federal Executive Institute and 
executive seminar centers.
    Section 508 continues the provision concerning the 
employment rights of Federal employees who return to their 
civilian jobs after assignment with the Armed Forces.
    Section 509 requires compliance with the Buy American Act.
    Section 510 states the sense of Congress regarding notice 
and purchase of American-made products.
    Section 511 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 512 provides up to 50 percent of unobligated 
balances may remain available for authorized purposes in 
compliance with reprogramming guidelines.
    Section 513 prohibits the Executive Office of the President 
from using appropriated funds to request FBI background 
investigation reports.
    Section 514 continues provision prohibiting Federal workers 
from receiving weekend or night differential pay for hours 
which they did not work.
    Section 515 gives the Office of Personnel Management more 
time to study and report to Congress on the methodology for 
determining cost-of-living allowance [COLA] rates.
    Section 516 includes a new provision to authorize the 
participation of the National Association of Postmasters of the 
United States in the Federal Employees Health Benefits Program.

 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 continues a 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.
    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 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 prohibits use of appropriated funds for 
publicity or propaganda designed to support or defeat 
legislation pending before Congress.
    Section 625 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 prohibits use of appropriated funds by an 
agency to provide Federal employees home address to labor 
organizations.
    Section 627 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 628 prohibits the use of appropriated funds for 
publicity or propaganda purposes within the United States not 
authorized by Congress.
    Section 629 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 630 includes a new provision prohibiting the use of 
appropriated funds for the sole source procurement of energy 
conservation measures.
    Section 631 includes a new provision with respect to the 
enforceability of gold clauses.
    Section 632 includes a new provision requiring the Office 
of Management and Budget to establish an object class to track 
costs associated with Federal employee relocation expenses.
    The Committee continues to be concerned about the cost of 
Federal employee relocation. The General Accounting Office 
stated in a recent report (GGD-97-119) that collecting exact 
cost information for relocation travel is difficult because 
such obligations and expenditures are captured in at least four 
different object classes along with costs not related to 
relocation travel. Therefore, in order to be able to capture 
this information, the Committee has directed OMB to establish a 
separate object class for these costs.

  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, $114,794,000
                  Automation enhancements, $29,389,000
                  Treasury Building and annex, repair and 
                restoration, $10,484,000
      Financial Crimes Enforcement Network, salaries and 
        expenses, $22,835,000
      Federal Law Enforcement Training Center:
                  Salaries and expenses, $64,663,000
                  Acquisition, construction, improvements, and 
                related expenses, $13,930,000
      Financial Management Service, salaries and expenses, 
        $202,490,000
      Bureau of Alcohol, Tobacco and Firearms:
                  Salaries and expenses, $472,490,000
                  Laboratory facilities, $55,022,000
      U.S. Customs Service:
                  Salaries and expenses, $1,551,028,000
                  Operation and maintenance, air and marine 
                interdiction programs, $92,758,000
      Internal Revenue Service:
                  Processing, assistance, and management, 
                $2,943,174,000
                  Tax law enforcement, $3,153,722,000
                  Information systems, $1,272,487,000
      Executive Office of the President:
                  The White House Office, salaries and 
                expenses, $51,199,000
                  Executive Residence at the White House, 
                operating expenses, $8,045,000
                  Special Assistance to the President, salaries 
                and expenses, $3,378,000
                  Council of Economic Advisers, salaries and 
                expenses, $3,542,000
                  National Security Council, salaries and 
                expenses, $6,648,000
                  Office of Administration, salaries and 
                expenses, $28,883,000
                  Office of Management and Budget, salaries and 
                expenses, $57,240,000
      Office of National Drug Control Policy, salaries and 
        expenses, $36,016,000
      Counterdrug Technology Assessment Center, salaries and 
        expenses, $17,000,000
      Counternarcotics research and development projects, 
        $1,000,000
      Counternarcotics, State conferences on model State drug 
        laws, $1,000,000
      High-intensity drug trafficking areas, $140,207,000
                  State and local drug control activities, 
                $71,000,000
                  Federal agency drug control activities, 
                $69,207,000
      Federal Election Commission, salaries and expenses, 
        $29,000,000
      Federal Labor Relations Authority, salaries and expenses, 
        $22,039,000
      General Services Administration, Federal buildings fund, 
        limitations on availability of revenue:
                Repairs and alterations, $350,000,000
                        Nationwide:
                                Chlorofluorcarbons program, 
                                $50,000,000
                                Basic repairs and alterations, 
                                $300,000,000
      Policy and operations, salaries and expenses, 
        $104,487,000
      Merit Systems Protection Board, salaries and expenses, 
        $24,810,000
      National Historical Publications and Records Commission, 
        $5,000,000
      Office of Personnel Management, health promotion and 
        disease prevention activities, $300,000
      Office of Special Counsel, salaries and expenses, 
        $8,450,000
      U.S. Tax Court, salaries and expenses, $34,293,000

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

    Pursuant to paragraph 7(c) of rule XXVI, the Committee 
ordered reported en bloc S. 1019, an original Legislative 
Branch appropriations bill and S. 1023, an original Treasury 
and General Government appropriations bill, 1998, subject to 
amendment and subject to their budget allocations, and S. 1022, 
an original Commerce-Justice-State appropriations bill, subject 
to amendment and subject to appropriate scoring, 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.
          * * * * * * *

             Omnibus Consolidated Appropriations Act, 1997

    Sec. 113. Section 732 of Public Law 104-132 (110 Stat. 
1303; 18 U.S.C. 841 note) is amended--
          (1) * * *
          (2) * * *
          * * * * * * *
          ``(3) Report and costs.--The study conducted under 
        this subsection shall be presented to Congress [12 
        months] 2 years after the enactment of this subsection 
        and be made available to the public, including any data 
        tapes or data used to form such recommendations. There 
        are authorized to be appropriated such sums as may be 
        necessary to carry out the study.''.
          * * * * * * *
                              ----------                              


   Treasury Department Appropriations Act, 1997 (Public Law 104-208)

                  TITLE I--DEPARTMENT OF THE TREASURY

             General Provisions--Department of the Treasury

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

                        Internal Revenue Service

          * * * * * * *

                          information systems

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


      District of Columbia Police and Firemen's Salary Act of 1958

  Sec. 501. (a) * * *
  (b)(1) Effective at the beginning at the first applicable pay 
period commencing on or after the first day of the month in 
which an adjustment takes effect under section 5305 of title 5, 
United States Code, in the rates of pay under General Schedule, 
the annual rate of basic compensation of officers and members 
of the United States Park Police force shall be adjusted by the 
Secretary of the [Interior, and the annual rate of basic 
compensation of officers and members of the United States 
Secret Service Uniformed Division may be adjusted by the 
Secretary of the Treasury,] Interior by an amount (rounded to 
the next highest multiple of $5) equal to the percentage of 
such annual rate of pay which corresponds to the overall 
percentage (as set forth in the applicable report transmitted 
to the Congress under such section 5305) of the adjustment made 
in the rates of pay under the General Schedule.
  (2) No adjustment in the annual rate of basic compensation of 
such officers and members may be made except in accordance with 
paragraph (1).
  [(c)] (3) Any reference in any law to the salary schedule in 
section 101 of this Act with respect to officers and members of 
the United States Park Police force [or to officers and members 
of the United States Secret Service Uniformed Division] shall 
be considered to be a reference to such schedule as adjusted in 
accordance with [subsection (b)] this subsection.
  ``(c)(1) The annual rates of basic compensation of officers 
and members of the United States Secret Service Uniformed 
Division, serving in classes corresponding or similar to those 
in the salary schedule in section 101 (District of Columbia 
Code, section 4-406), shall be fixed in accordance with the 
following schedule of rates:


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

  ``(2) Effective at the beginning of the first applicable pay 
period commencing on or after the first day of the month in 
which an adjustment takes effect under section 5303 of title 5, 
United States Code (or any subsequent similar provision of 
law), in the rates of pay under the General Schedule (or any 
pay system that may supersede such schedule), the annual rates 
of basic compensation of officers and members of the United 
States Secret Service Uniformed Division shall be adjusted by 
the Secretary of the Treasury by an amount equal to the 
percentage of such annual rate of pay which corresponds to the 
overall percentage of the adjustment made in the rates of pay 
under the General Schedule.
  ``(3) Locality-based comparability payments authorized under 
section 5304 of title 5, United States Code, shall be 
applicable to the basic pay under this section, except 
locality-based comparability payments may not be paid at a rate 
which, when added to the rate of basic pay otherwise payable to 
the officer or member, would cause the total to exceed the rate 
of basic pay payable for level IV of the Executive Schedule.
  ``(4) Pay may not be paid, by reason of any provision of this 
subsection (disregarding any comparability payment payable 
under Federal law), at a rate in excess of the rate of basic 
pay payable for level V of the Executive Schedule contained in 
subchapter II of chapter 53 of title 5, United States Code.
  ``(5) Any reference in any law to the salary schedule in 
section 101 (District of Columbia Code, section 4-406) with 
respect to officers and members of the United States Secret 
Service Uniformed Division shall be considered to be a 
reference to the salary schedule in paragraph (1) of this 
subsection as adjusted in accordance with this subsection.
  ``(6)(A) Except as otherwise permitted by or under law, no 
allowance, differential, bonus, award, or other similar cash 
payment under this title or under title 5, United States Code, 
may be paid to an officer or member of the United States Secret 
Service Uniformed Division in a calendar year if, or to the 
extent that, when added to the total basic pay paid or payable 
to such officer or member for service performed in such 
calendar year as an officer or member, such payment would cause 
the total to exceed the annual rate of basic pay payable for 
level I of the Executive Schedule, as of the end of such 
calendar year.
  ``(B) This paragraph shall not apply to any payment under the 
following provisions of title 5, United States Code:
          ``(i) Subchapter III or VII of chapter 55, or section 
        5596.
          ``(ii) Chapter 57 (other than section 5753, 5754, or 
        5755).
          ``(iii) Chapter 59 (other than section 5928).
  ``(7)(A) Any amount which is not paid to an officer or member 
of the United States Secret Service Uniformed Division in a 
calendar year because of the limitation under paragraph (6) 
shall be paid to such officer or member in a lump sum at the 
beginning of the following calendar year.
  ``(B) Any amount paid under this paragraph in a calendar year 
shall be taken into account for purposes of applying the 
limitations under paragraph (6) with respect to such calendar 
year.
  ``(8) The Office of Personnel Management shall prescribe 
regulations as may be necessary (consistent with section 5582 
of title 5, United States Code) concerning how a lump-sum 
payment under paragraph (7) shall be made with respect to any 
employee who dies before an amount payable to such employee 
under paragraph (7) is made.''.
          * * * * * * *
                              ----------                              


                       The Act of August 15, 1950

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

  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That (a) * 
* *
          * * * * * * *
  (h)(1) No premium pay provided by this Act shall be paid to, 
and no compensatory time off is authorized for, [any officer or 
member] an officer or member of the Metropolitan Police force, 
of the Fire Department of the District of Columbia, or of the 
United States Park Police whose rate of basic compensation 
equals or exceeds the minimum scheduled rate of basic 
compensation provided for service step 1 in the salary class 
applicable to the Fire Chief and Chief of Police of the 
District of Columbia Police and Firemen's Salary Act of 1958, 
as amended.
  (2) In the case of [any officer or member] an officer or 
member of the Metropolitan Police force, of the Fire Department 
of the District of Columbia, or of the United States Park 
Police whose rate of basic compensation is less than the 
minimum scheduled rate of basic compensation provided for 
service step 1 in the salary class applicable to the Fire Chief 
and Chief of Police of the Police and Firemen's Salary Act of 
1958, as amended, such premium pay may be paid only to the 
extent that such payment would not cause his aggregate rate of 
compensation to exceed such minimum scheduled rate with respect 
to any pay period.
          ``(3)(A) no premium pay provided by this section 
        shall be paid to, and no compensatory time is 
        authorized for, any officer or member of the United 
        States Secret Service Uniformed Division whose rate of 
        basic pay, combined with any applicable locality-based 
        comparability payment, equals or exceeds the lesser 
        of--
                  ``(i) 150 percent of the minimum rate payable 
                for grade GS-15 of the General Schedule 
                (including any applicable locality-based 
                comparability payment under section 5304 of 
                title 5, United States Code or any similar 
                provision of law, and any applicable special 
                rate of pay under section 5305 of title 5, 
                United States Code or any similar provision of 
                law); or
                  ``(ii) the rate payable for level V of the 
                Executive Schedule contained in subchapter II 
                of chapter 53 of title 5, United States Code.
          ``(B) In the case of any officer or member of the 
        United States Secret Service Uniformed Division whose 
        rate of basic pay, combined with any applicable 
        locality-based comparability payment, is less than the 
        lesser of--
                  ``(i) 150 percent of the minimum rate payable 
                for grade GS-15 of the General Schedule 
                (including any applicable locality-based 
                comparability payment under section 5304 of 
                title 5, United States Code or any similar 
                provision of law, and any applicable special 
                rate of pay under section 5305 of title 5, 
                United States Code or any similar provision of 
                law); or
                  ``(ii) the rate payable for level V of the 
                Executive Schedule contained in subchapter II 
                of chapter 53 of title 5, United States Code,
        such premium pay may be paid only to the extent that 
        such payment would not cause such officer or member's 
        aggregate rate of compensation to exceed such lesser 
        amount with respect to any pay period.''
  [(3)] (i) Each authorizing official is authorized to 
promulgate such regulations and issue such orders as are 
necessary to carry out the intent and purpose of this Act, and 
to delegate to a designated agent or agents any of the 
functions vested in the authorizing official by this Act.
          * * * * * * *
                              ----------                              


             Federal Law Enforcement Pay Reform Act of 1990

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

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


   Independent Agencies Appropriations Act, 1989 (Public Law 100-440)

          GENERAL SERVICES ADMINISTRATION--GENERAL PROVISIONS

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


                       The Act of August 25, 1958

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

          * * * * * * *
    [Sec. 2. The entitlements of a former President under 
subsections (b) and (c) of the first section shall be 
available--
          [(1) in the case of an individual who is a former 
        President on the effective date of this section, for 5 
        years, commencing on such effective date; and
          [(2) in the case of an individual who becomes a 
        former President after such effective date, for 4 years 
        and 6 months, commencing at the expiration of the 
        period for which services and facilities are authorized 
        to be provided under section 4 of the Presidential 
        Transition Act of 1968 (8 U.S.C. 102 note.)]
          * * * * * * *
                              ----------                              


                      TITLE 39, UNITED STATES CODE

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

    [(a) Subject to subsection (b), a] A former President and 
the surviving spouse of a former President may send 
nonpolitical mail within the United States and its territories 
and possessions as franked mail. Such mail of a former 
President and of the surviving spouse of a former President 
marked ``Postage and Fees Paid'' in the manner prescribed by 
the Postal Service shall be accepted by the Postal Service for 
transmission in the international mails.
    [(B) Subsection (a) shall cease to apply--
          [(1) 5 years after the effective date of this 
        subsection, in the case of any individual who, on such 
        effective date--
                [(A) is a former President (including any 
                individual who might become entitled to the 
                mailing privilege under subsection (a) as the 
                surviving spouse of such a former President); 
                or
                  [(B) is the surviving spouse of a former 
                President; and
          [(2) 4 years and 6 months after the expiration of the 
        period for which services and facilities are authorized 
        to be provided under section 4 of the Presidential 
        Transaction Act of 1968 (3 U.S.C. 102 note), in the 
        case of an individual who becomes a former President 
        after such effective date (including any surviving 
        spouse of such individual, as described in the 
        parenthetical matter in paragraph (1)(A)).]
          * * * * * * *
                              ----------                              

    Section 515 of the title V General Provisions amends 
section 1 under the subheading ``General Provision'' under the 
heading ``Office of Personnel Management'' under title IV of 
the Treasury, Postal Service, and General Government 
Appropriations Act, 1992 (Public Law 102-141; 105 Stat. 861; 5 
U.S.C. 5941 note), as amended by section 532 of the Treasury, 
Postal Service, and General Government Appropriations Act, 1995 
(Public Law 103-329; 108 Stat. 2413), and by section 5 under 
the hearing ``General Provisions--Office of Personnel 
Management'' under title IV of the Treasury, Postal Service, 
and General Government Appropriations Act, 1996 (Public Law 
104-52; 109 Stat. 490), as follows:

    SECTION 1. The Allowance provided to employees at rates set 
under section 5941 of title 5, United States Code, and 
Executive Order Numbered 10000 as in effect on the date of 
enactment of this Act through December 31, [1998] 2000: 
Provided, That no later than March 1, [1998] 2000, the Office 
of Personnel Management shall conduct a study and submit a 
report to the Congress proposing appropriate changes in the 
method of fixing compensation for affected employees, including 
any necessary legislative changes. Such study shall include--
          (1) an examination of the pay practices of other 
        employers in the affected areas;
          (2) a consideration of alternative approaches to 
        dealing with the unusual and unique circumstances of 
        the affected areas, including modifications to the 
        current methodology for calculating allowances to take 
        into account all costs of living in the geographic 
        areas of the affected employee; and
          (3) an evaluation of the likely impact of the 
        different approaches on the Government's ability to 
        recruit and retain a well-qualified workforce.
          * * * * * * *
                              ----------                              


                      TITLE 31--MONEY AND FINANCE

          * * * * * * *

                           SUBTITLE IV--MONEY

          * * * * * * *

                     CHAPTER 51--COINS AND CURRENCY

          * * * * * * *

                    SUBCHAPTER II--GENERAL AUTHORITY

          * * * * * * *

Sec. 5118. Gold clauses and consent to sue

    (a) In this section--
          (1) * * *
          * * * * * * *
    (d)(1) In this subsection, ``obligation'' means any 
obligation (except United States currency) payable in United 
States money.
    (2) An obligation issued containing a gold clause or 
governed by a gold clause is discharged on payment (dollar for 
dollar) in United States coin or currency that is legal tender 
at the time of payment. This paragraph does not apply to an 
obligation issued after October 27, 1977. [This paragraph shall 
apply to any obligation issued on or before October 27, 1977, 
notwithstanding any assignment or novation of such obligatoin 
after October 27, 1977, unless all parties to the assignment or 
novation specifically agree to include a gold clause in the new 
agreement. Nothing in the preceeding sentence shall be 
construed to affect the enforceability of a Gold Clause 
contained in any obligatoin issued after October 27, 1977 if 
the enforceability of that Gold Clause has been finally 
adjudicated before the date of enactment of the Economic Growth 
and Regulatory Paperwork Reduction Act of 1996.]
          * * * * * * *
                              ----------                              


  Federal Property and Administrative Services Act of 1949, as amended

SEC. 201. PROCUREMENTS, WAREHOUSING, AND RELATED ACTIVITIES.

    (a) The Administrator shall, in respect of executive 
agencies, and to the extent that he determines that so doing is 
advantageous to the Government in terms of economy, efficiency, 
or service, and with due regard to the program activities of 
the agencies concerned--
          (1) subject to regulations prescribed by the 
        Administrator for Federal Procurement Policy pursuant 
        to the Office of Federal Procurement Policy Act, 
        prescribe policies and methods of procurement and 
        supply of personal property and nonpersonal services, 
        including related functions such as contracting, 
        inspection, storage, issue, property identification and 
        classification, transportation and traffic management, 
        management of public utility services, and repairing 
        and converting; and
          (2) operate, and, after consultation with the 
        executive agencies affected, consolidate, take over, or 
        arrange for the operation by any executive agency of 
        warehouses, supply centers, repair shops, fuel yards, 
        and other similar facilities; and
          (3) procure and supply personal property and 
        nonpersonal services for the use of executive agencies 
        in the proper discharge of their responsibilities, and 
        perform functions related to procurement and supply 
        such as those mentioned above in subparagraph (1) of 
        this subsection: Provided, That contracts for public 
        utility services may be made for periods not exceeding 
        ten years; and
          (4) with respect to transportation and other public 
        utility services for the use of executive agencies, 
        represent such agencies in negotiations with carriers 
        and other public utilities and in proceedings involving 
        carriers or other public utilities before Federal and 
        State regulatory bodies;
Provided, That the Secretary of Defense may from time to time, 
and unless the President shall otherwise direct, exempt the 
Department of Defense from action taken or which may be taken 
by the Administrator under clauses (1)-(4) of this subsection 
whenever he determines such exemption to be in the best 
interests of national security.
    [(b)(1) The Administrator shall, as far as practicable, 
provide any of the services specified in subsection (a) of this 
section to any other Federal agency, mixed-ownership Government 
corporation (as defined in section 9101 of title 31, United 
States code), or the District of Columbia, upon its request.
    [(2)(A) The Administrator may provide for the use of 
Federal supply schedules of the General Services Administration 
by any of the following entities upon request:
          [(i) A State, any department or agency of a State, 
        and any political subdivision of a State, including a 
        local government.
          [(ii) The Commonwealth of Puerto Rico.
          [(iii) The government of an Indian tribe (as defined 
        in section 4(e) of the Indian Self-Determination and 
        Education Assistance Act (25 U.S.C. 450b(e))).
    [(B) Subparagraph (A) may not be construed to authorize an 
entity referred to in that subparagraph to order existing stock 
or inventory from federally owned and operated, or federally 
owned and contractor operated, supply depots, warehouses, or 
similar facilities.
    [(C) In any case in which an entity listed in subparagraph 
(A) uses a Federal supply schedule, the Administrator may 
require the entity to reimburse the General Services 
Administration for any administrative costs of using the 
schedule.
    [(3)(A) Upon the request of a qualified nonprofit agency 
for the blind or other severely handicapped that is to provide 
a commodity or service to the Federal Government under the 
Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.), the 
Administrator may provide any of the services specified in 
subsection (a) to such agency to the extent practicable.
    [(B) A nonprofit agency receiving services under the 
authority of subparagraph (A) shall use the services directly 
in making or providing an approved commodity or approved 
service to the Federal Government.
    [(C) In this paragraph:
          [(i) The term ``qualified nonprofit agency for the 
        blind or other severely handicapped'' means--
                  [(I) a qualified nonprofit agency for the 
                blind, as defined in section 5(3) of the 
                Javits-Wagner-O'Day Act (41 U.S.C. 48b(3)); and
                  [(II) a qualified nonprofit agency for other 
                severely handicapped, as defined in section 
                5(4) of such Act (41 U.S.C. 48b(4)).
          [(ii) The terms ``approved commodity'' and ``approved 
        service'' mean a commodity and a service, respectively, 
        that has been determined by the Committee for Purchase 
        from the Blind and Other Severely Handicapped under 
        section 2 of the Javits-Wagner-O'Day Act (41 U.S.C. 47) 
        to be suitable for procurement by the Federal 
        Government.]
    (b) The Administrator shall as far as practicable provide 
any of the services specified in subsection (a) of this section 
to any other Federal agency, mixed ownership corporation (as 
defined in chapter 91 of title 31, United States Code), or the 
District of Columbia, upon its request.
    [(c)] (b) In acquiring personal property, any executive 
agency, under regulations to be prescribed by the 
Administrator, subject to regulations prescribed by the 
Administrator for Federal Procurement Policy pursuant to the 
Office of Federal Procurement Policy Act, may exchange or sell 
similar items and may apply the exchange allowance or proceeds 
of sale in such cases in whole or in part payment for the 
property acquired: Provided, That any transaction carried out 
under the authority of this subsection shall be evidenced in 
writing. Sales of property pursuant to this subsection shall be 
governed by section 3709 of the Revised Statutes (41 U.S.C. 5), 
except that fixed price sales may be conducted in the same 
manner and subject to the same conditions as are applicable to 
the sale of property pursuant to section 203(e)(5) of this Act.
    [(d)] (c) In conformity with policies prescribed by the 
Administrator under subsection (a) of this section, any 
executive agency may utilize the services, work, materials, and 
equipment of any other executive agency, for the inspection of 
personal property incident to the procurement thereof, and 
notwithstanding section 3678 of the Revised Statutes (31 U.S.C. 
628) or any other provision of law such other executive agency 
may furnish such services, work, materials, and equipment for 
that purpose without reimbursement or transfer of funds.
    [(e)] (d) Whenever the head of any executive agency 
determines that the remaining storage or shelf life of any 
medical materials or medical supplies held by such agency for 
national emergency purposes is of too short duration to justify 
their continued retention for such purposes and that their 
transfer or disposal would be in the interest of the United 
States, such materials or supplies shall be considered for the 
purposes of section 202 of this Act to be excess property. In 
accordance with the regulations of the Administrator, such 
excess materials or supplies may thereupon be transferred to or 
exchanged with any other Federal agency for other medical 
materials or supplies. Any proceeds derived from such transfers 
may be credited to the current applicable appropriation or fund 
of the transferor agency and shall be available only for the 
purchase of medical materials or supplies to be held for 
national emergency purposes. If such materials or supplies are 
not transferred to or exchanged with any other Federal agency, 
they shall be disposed of as surplus property. To the greatest 
extent practicable, the head of the executive agency holding 
such medical materials or supplies shall make the determination 
provided for in the first sentence of this subsection at such 
times as to insure that such medical materials or medical 
supplies can be transferred or otherwise disposed of in 
sufficient time to permit their use before their shelf life 
expires and they are rendered unfit for human use.

                                            BUDGETARY IMPACT OF BILL                                            
  PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS  
                                                     AMENDED                                                    
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                                                  Budget authority               Outlays        
                                                             ---------------------------------------------------
                                                               Committee    Amount of    Committee    Amount of 
                                                               allocation      bill      allocation      bill   
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee allocations                                                    
 to its subcommittees of amounts in the First Concurrent                                                        
 Resolution for 1998: Subcommittee on Treasury and General                                                      
 Government:                                                                                                    
    Defense discretionary...................................  ...........  ...........  ...........  ...........
    Nondefense discretionary................................       12,501       12,464       12,269   \1\ 12,269
    Violent crime reduction fund............................          131          131          127           78
    Mandatory...............................................       12,713       12,713       12,712       12,712
Projections of outlays associated with the recommendation:                                                      
    1998....................................................  ...........  ...........  ...........   \2\ 22,252
    1999....................................................  ...........  ...........  ...........        1,646
    2000....................................................  ...........  ...........  ...........          604
    2001....................................................  ...........  ...........  ...........          346
    2002 and future year....................................  ...........  ...........  ...........          167
Financial assistance to State and local governments for 1998                                                    
 in bill....................................................           NA           12           NA            7
----------------------------------------------------------------------------------------------------------------
\1\ Includes outlays from prior-year budget authority.                                                          
\2\ Excludes outlays from prior-year budget authority.                                                          
                                                                                                                
NA: Not applicable.                                                                                             


                 COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 1997 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL YEAR 1998                
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                               Senate Committee recommendation compared with (+ or -
                                                                                                                                                                         )                      
                             Item                              1997 appropriation        Budget          House allowance        Committee     -------------------------------------------------------
                                                                                    estimate         deg.           recommendation                              Budget            House
                                                                                                                                               1997 appropriation  estimate  allowance deg.
----------------------------------------------------------------------------------------------------------------------------------------------------------------- -----------------------------------
                                                                                                                                                                                                
             TITLE I--DEPARTMENT OF THE TREASURY                                                                                                                                                
                                                                                                                                                                                                
Departmental Offices.........................................       $112,048,000        $116,314,000        $114,794,000         +$2,746,000         -$1,520,000                                
    Counterterrorism fund....................................         15,000,000   ..................  ..................        -15,000,000   ..................                               
    Supplemental funding (Public Law 105-18).................          1,950,000   ..................  ..................         -1,950,000   ..................                               
Automation Enhancement.......................................         27,100,000          29,389,000          29,389,000          +2,289,000   ..................                               
Office of Inspector General..................................         29,770,000          31,333,000          30,719,000            +949,000            -614,000                                
Office of Professional Responsibility........................          1,500,000           1,625,000           1,250,000            -250,000            -375,000                                
Treasury Buildings and Annex Repair and Restoration..........         28,213,000          12,484,000          10,484,000         -17,729,000          -2,000,000                                
Financial Crimes Enforcement Network.........................         22,387,000          23,006,000          22,835,000            +448,000            -171,000                                
Department of the Treasury Forfeiture Fund (limitation on                                                                                                                                       
 availability of deposits)...................................         10,000,000           9,500,000   ..................        -10,000,000          -9,500,000                                
Violent Crime Reduction Programs:                                                                                                                                                               
    Bureau of Alcohol, Tobacco and Firearms..................         36,595,000          42,378,000          24,023,000         -12,572,000         -18,355,000                                
    Departmental Offices.....................................         18,300,000   ..................  ..................        -18,300,000   ..................                               
    Financial Crimes Enforcement Network.....................          1,000,000           3,000,000           3,000,000          +2,000,000   ..................                               
    United States Secret Service.............................         20,000,000          20,700,000          21,178,000          +1,178,000            +478,000                                
    ONDCP--HIDTA.............................................         13,105,000   ..................          8,500,000          -4,605,000          +8,500,000                                
    Gang Resistance Education and Training: Grants...........          8,000,000           8,000,000          10,000,000          +2,000,000          +2,000,000                                
    Federal Law Enforcement Training Center..................  ..................         24,000,000          19,619,000         +19,619,000          -4,381,000                                
    United States Customs Service............................  ..................         20,100,000          44,635,000         +44,635,000         +24,535,000                                
                                                              ----------------------------------------------------------------------------------------------------------------------------------
      Total, Violent Crime Reduction Programs................         97,000,000         118,178,000         130,955,000         +33,955,000         +12,777,000                                
                                                                                                                                                                                                
Federal Law Enforcement Training Center:                                                                                                                                                        
    Salaries and Expenses....................................         56,185,000          65,663,000          64,663,000          +8,478,000          -1,000,000                                
    Acquisition, Construction, Improvements, and Related                                                                                                                                        
     Expenses................................................         21,584,000          11,111,000          13,930,000          -7,654,000          +2,819,000                                
                                                              ----------------------------------------------------------------------------------------------------------------------------------
      Total, Federal Law Enforcement Training Center.........         77,769,000          76,774,000          78,593,000            +824,000          +1,819,000                                
                                                                                                                                                                                                
Interagency Law Enforcement: Interagency crime and drug                                                                                                                                         
 enforce-  ment \1\..........................................  ..................         73,794,000          73,794,000         +73,794,000   ..................                               
Financial Management Service.................................        196,518,000         202,560,000         202,490,000          +5,972,000             -70,000                                
    Reimburse Federal Reserve Bank (indefinite)..............  ..................        122,000,000   ..................  ..................       -122,000,000                                
Bureau of Alcohol, Tobacco and Firearms:                                                                                                                                                        
    Salaries and Expenses....................................        460,394,000         496,954,000         472,490,000         +12,096,000         -24,464,000                                
    Laboratory facilities....................................          6,978,000          55,022,000          55,022,000         +48,044,000   ..................                               
                                                              ----------------------------------------------------------------------------------------------------------------------------------
      Total, Bureau of Alcohol, Tobacco and Firearms.........        467,372,000         551,976,000         527,512,000         +60,140,000         -24,464,000                                
United States Customs Service:                                                                                                                                                                  
    Salaries and Expenses....................................      1,549,585,000       1,566,826,000       1,551,028,000          +1,443,000         -15,798,000                                
    Customs facilities, construction, improvements...........  ..................          5,512,000   ..................  ..................         -5,512,000                                
    Operation and Maintenance, Air and Marine Interdiction                                                                                                                                      
     Programs................................................         83,363,000          92,758,000          92,758,000          +9,395,000   ..................                               
    Customs Services at Small Airports (to be derived from                                                                                                                                      
     fees collected).........................................          2,406,000           2,000,000           2,406,000   ..................           +406,000                                
    Harbor Maintenance Fee Collection........................          3,000,000           3,000,000           3,000,000   ..................  ..................                               
                                                              ----------------------------------------------------------------------------------------------------------------------------------
      Total, United States Customs Service...................      1,638,354,000       1,670,096,000       1,649,192,000         +10,838,000         -20,904,000                                
Bureau of the Public Debt....................................        165,335,000         169,426,000         169,426,000          +4,091,000   ..................                               
Internal Revenue Service:                                                                                                                                                                       
    Processing, Assistance, and Management...................      1,790,288,000       2,943,174,000       2,943,174,000      +1,152,886,000   ..................                               
    Tax Law Enforcement......................................      4,104,211,000       3,153,722,000       3,153,722,000        -950,489,000   ..................                               
        Rescission...........................................  ..................  ..................  ..................  ..................  ..................                               
    Information Systems......................................      1,323,075,000       1,272,487,000       1,272,487,000         -50,588,000   ..................                               
        Rescission...........................................       -174,447,000   ..................  ..................       +174,447,000   ..................                               
    Information technology investments.......................  ..................        500,000,000         325,000,000        +325,000,000        -175,000,000                                
                                                              ----------------------------------------------------------------------------------------------------------------------------------
      Net total, Internal Revenue Service....................      7,043,127,000       7,869,383,000       7,694,383,000        +651,256,000        -175,000,000                                
United States Secret Service:                                                                                                                                                                   
    Salaries and Expenses....................................        531,288,000         575,971,000         570,809,000         +39,521,000          -5,162,000                                
        Rescission...........................................         -7,600,000   ..................  ..................         +7,600,000   ..................                               
    Acquisition, Construction, Improvement, and Related                                                                                                                                         
     Expenses................................................         37,365,000           9,176,000           9,176,000         -28,189,000   ..................                               
                                                              ----------------------------------------------------------------------------------------------------------------------------------
      Total, United States Secret Service....................        561,053,000         585,147,000         579,985,000         +18,932,000          -5,162,000                                
                                                              ==================================================================================================================================
      Net total, title I, Department of the Treasury.........     10,494,496,000      11,662,985,000      11,315,801,000        +821,305,000        -347,184,000                                
                                                              ==================================================================================================================================
                   TITLE II--POSTAL SERVICE                                                                                                                                                     
                                                                                                                                                                                                
                Payments to the Postal Service                                                                                                                                                  
                                                                                                                                                                                                
Payment to the Postal Service Fund...........................         85,080,000          86,274,000          86,274,000          +1,194,000   ..................                               
    Supplemental funding (Public Law 105-18).................          5,383,000   ..................  ..................         -5,383,000   ..................                               
Payment to the Postal Service Fund for Nonfunded Liabilities.         35,536,000          34,850,000          34,850,000            -686,000   ..................                               
                                                              ----------------------------------------------------------------------------------------------------------------------------------
      Total, title II, Postal Service........................        125,999,000         121,124,000         121,124,000          -4,875,000   ..................                               
                                                              ==================================================================================================================================
    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....................................         40,193,000          51,199,000          51,199,000         +11,006,000   ..................                               
Executive Residence at the White House:                                                                                                                                                         
    Operating Expenses.......................................          7,827,000           8,045,000           8,045,000            +218,000   ..................                               
    White House Repair and Restoration.......................  ..................            200,000             200,000            +200,000   ..................                               
Special Assistance to the President and the Official                                                                                                                                            
 Residence of the Vice President:                                                                                                                                                               
    Salaries and Expenses....................................          3,280,000           3,378,000           3,378,000             +98,000   ..................                               
    Operating expenses.......................................            324,000             334,000             334,000             +10,000   ..................                               
Council of Economic Advisers.................................          3,439,000           3,542,000           3,542,000            +103,000   ..................                               
Office of Policy Development.................................          3,867,000           3,983,000           3,983,000            +116,000   ..................                               
National Security Council....................................          6,648,000           6,648,000           6,648,000   ..................  ..................                               
Office of Administration.....................................         26,100,000          28,883,000          28,883,000          +2,783,000   ..................                               
Office of Management and Budget..............................         55,573,000          57,240,000          57,240,000          +1,667,000   ..................                               
Office of National Drug Control Policy.......................         35,838,000          36,016,000          36,016,000            +178,000   ..................                               
Unanticipated Needs..........................................  ..................          1,000,000   ..................  ..................         -1,000,000                                
Federal Drug Control Programs: High Intensity Drug                                                                                                                                              
 Trafficking Areas Program...................................        127,102,000         140,207,000         140,207,000         +13,105,000   ..................                               
Special forfeiture fund......................................        112,900,000         175,000,000         145,300,000         +32,400,000         -29,700,000                                
                                                              ----------------------------------------------------------------------------------------------------------------------------------
      Total, title III, Executive Office of the President and                                                                                                                                   
       Funds Appropriated to the President...................        423,341,000         515,925,000         485,225,000         +61,884,000         -30,700,000                                
                                                              ==================================================================================================================================
                TITLE IV--INDEPENDENT AGENCIES                                                                                                                                                  
                                                                                                                                                                                                
Committee for Purchase from People Who Are Blind or Severely                                                                                                                                    
 Dis-  abled.................................................          1,800,000           1,940,000           1,940,000            +140,000   ..................                               
Federal Election Commission..................................         28,165,000          29,300,000          29,000,000            +835,000            -300,000                                
Federal Labor Relations Authority............................         21,588,000          22,039,000          22,039,000            +451,000   ..................                               
General Services Administration:                                                                                                                                                                
    Federal Buildings Fund:                                                                                                                                                                     
        Appropriation........................................        400,544,000          84,000,000   ..................       -400,544,000         -84,000,000                                
        Limitations on availability of revenue:                                                                                                                                                 
            Construction and acquisition of facilities.......       (657,711,000)  ..................  ..................      (-657,711,000)  ..................                               
            Environmental cleanup activities.................        (20,000,000)  ..................  ..................       (-20,000,000)  ..................                               
            Consolidated Federal Law Enforcement Bldg........        (81,000,000)  ..................  ..................       (-81,000,000)  ..................                               
            Repairs and alterations..........................       (639,000,000)       (434,000,000)       (350,000,000)      (-289,000,000)       (-84,000,000)                               
            Installment acquisition payments.................       (173,075,000)       (142,542,000)       (142,542,000)       (-30,533,000)  ..................                               
            Operations and rental of space...................  ..................  ..................  ..................  ..................  ..................                               
            Rental of space..................................     (2,343,795,000)     (2,275,340,000)     (2,275,340,000)       (-68,455,000)  ..................                               
            Building Operations..............................     (1,552,651,000)     (1,331,789,000)     (1,331,789,000)      (-220,862,000)  ..................                               
            Repayment of Debt................................        (88,312,000)       (105,720,000)       (105,720,000)       (+17,408,000)  ..................                               
            Previously appropriated activities...............  ..................       (680,543,000)       (680,543,000)      (+680,543,000)  ..................                               
                                                              ----------------------------------------------------------------------------------------------------------------------------------
              Total, Federal Buildings Fund..................        400,544,000          84,000,000   ..................       -400,544,000         -84,000,000                                
                  (Limitations)..............................     (5,555,544,000)     (4,969,934,000)     (4,885,934,000)      (-669,610,000)       (-84,000,000)                               
    Policy and Operations....................................        110,173,000         104,487,000         104,487,000          -5,686,000   ..................                               
    Office of Inspector General..............................         33,863,000          33,870,000          33,870,000              +7,000   ..................                               
    Allowances and Office Staff for Former Presidents........          2,180,000           2,250,000           2,208,000             +28,000             -42,000                                
    Expenses, presidential transition........................          5,600,000   ..................  ..................         -5,600,000   ..................                               
        Rescission (Public Law 105-18).......................         -5,600,000   ..................  ..................         +5,600,000   ..................                               
                                                              ==================================================================================================================================
          Total, General Services Administration.............        546,760,000         224,607,000         140,565,000        -406,195,000         -84,042,000                                
John F. Kennedy Assassination Record Review Board............          2,150,000           1,600,000           1,600,000            -550,000   ..................                               
Merit Systems Protection Board:                                                                                                                                                                 
    Salaries and Expenses....................................         23,923,000          24,450,000          24,810,000            +887,000            +360,000                                
    (Limitation on administrative expenses)..................         (2,430,000)         (2,430,000)         (2,430,000)  ..................  ..................                               
Morris K. Udall Scholarship and Excellence in National                                                                                                                                          
 Environmental Policy Foundation.............................  ..................          2,000,000   ..................  ..................         -2,000,000                                
National Archives and Records Administration:                                                                                                                                                   
    Operating expenses.......................................        196,963,000         206,479,000         206,479,000          +9,516,000   ..................                               
    Reduction of debt........................................         -4,012,000          -4,012,000          -4,012,000   ..................  ..................                               
    Archives Facilities and Presidential Libraries:                                                                                                                                             
      Repairs and Restoration................................         16,229,000           6,650,000          13,650,000          -2,579,000          +7,000,000                                
    National Historical Publications and Records Commission:                                                                                                                                    
     Grants program..........................................          5,000,000           4,000,000           5,000,000   ..................         +1,000,000                                
                                                              ----------------------------------------------------------------------------------------------------------------------------------
        Total, National Archives and Records Administration..        214,180,000         213,117,000         221,117,000          +6,937,000          +8,000,000                                
Office of Government Ethics..................................          8,078,000           8,265,000           8,265,000            +187,000   ..................                               
Office of Personnel Management:                                                                                                                                                                 
    Salaries and Expenses....................................         87,286,000          85,350,000          85,350,000          -1,936,000   ..................                               
        (Limitation on administrative expenses)..............        (94,736,000)        (91,236,000)        (91,236,000)        (-3,500,000)  ..................                               
    Office of Inspector General..............................            960,000             960,000             960,000   ..................  ..................                               
        (Limitation on administrative expenses)..............         (8,645,000)         (8,645,000)         (8,645,000)  ..................  ..................                               
    Government Payment for Annuitants, Employees Health                                                                                                                                         
     Benefits................................................      4,059,000,000       4,338,000,000       4,338,000,000        +279,000,000   ..................                               
    Government Payment for Annuitants, Employee Life                                                                                                                                            
     Insurance...............................................         33,000,000          32,000,000          32,000,000          -1,000,000   ..................                               
    Payment to Civil Service Retirement and Disability Fund..      7,989,000,000       8,336,000,000       8,336,000,000        +347,000,000   ..................                               
                                                              ----------------------------------------------------------------------------------------------------------------------------------
      Total, Office of Personnel Management..................     12,169,246,000      12,792,310,000      12,792,310,000        +623,064,000   ..................                               
Office of Special Counsel....................................          8,116,000           8,450,000           8,450,000            +334,000   ..................                               
United States Tax Court......................................         33,781,000          34,293,000          34,293,000            +512,000   ..................                               
                                                              ==================================================================================================================================
      Total, title IV, Independent Agencies..................     13,057,787,000      13,362,371,000      13,284,389,000        +226,602,000         -77,982,000                                
          (Limitation on administrative expenses)............     (5,661,355,000)     (5,072,245,000)     (4,988,245,000)      (-673,110,000)       (-84,000,000)                               
                                                              ==================================================================================================================================
      Net grand total........................................     24,101,623,000      25,662,405,000      25,206,539,000      +1,104,916,000        -455,866,000                                
              Appropriations.................................    (24,289,270,000)    (25,662,405,000)    (25,206,539,000)      (+917,269,000)      (-455,866,000)                               
              Rescissions....................................      (-187,647,000)  ..................  ..................      (+187,647,000)  ..................                               
              Emergency funding (Public Law 105-18)..........  ..................  ..................  ..................  ..................  ..................                               
          (Limitations)......................................     (5,661,355,000)     (5,072,245,000)     (4,988,245,000)      (-673,110,000)       (-84,000,000)                               
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Funded in Commerce, Justice, State, the Judiciary bill in fiscal year 1997.