[House Report 107-575]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-575

======================================================================



 
 TREASURY, POSTAL SERVICE, AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 
                                  2003

                                _______
                                

 July 15, 2002.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 5120]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for the Treasury Department, the Postal Service, 
the Executive Office of the President, and certain Independent 
Agencies for the fiscal year ending September 30, 2003, and for 
other purposes.

                        INDEX TO BILL AND REPORT

_______________________________________________________________________


                                                            Page number

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

Title I--Department of the Treasury:
        Air Transportation Stabilization Program...........     4
                                                                      9
        Bureau of Alcohol, Tobacco and Firearms............    11
                                                                     17
        Bureau of Engraving and Printing...................
                                                                     31
        Bureau of the Public Debt..........................    18
                                                                     34
        Counterterrorism Fund..............................     6
                                                                     11
        Departmental Offices...............................     2
                                                                      5
        Department-Wide Systems and Capital Investments 
            Programs.......................................     3
                                                                      7
        Expanded Access to Financial Services..............     5
                                                                     10
        Federal Law Enforcement Training Center............     7
                                                                     14
        Financial Crimes Enforcement Network...............     6
                                                                     12
        Financial Management Service.......................    10
                                                                     17
        General Provisions--Treasury Department............    25
                                                                     43
        Interagency Crime and Drug Enforcement.............    10
                                                                     16
        Internal Revenue Service...........................    18
                                                                     35
        Office of Inspector General........................     3
                                                                      8
        Treasury Building and Annex Repair and Restoration.     5
                                                                     10
        Treasury Inspector General for Tax Administration..     4
                                                                      9
        United States Customs Service......................    13
                                                                     20
        United States Mint.................................    17
                                                                     32
        United States Secret Service.......................    22
                                                                     41
Title II--Postal Service:
        Payment to the Postal Service Fund.................    28
                                                                     44
Title III--Executive Office of the President and Funds 
    Appropriated to the President:
        Compensation of the President and the White House 
            Office.........................................    30
                                                                     51
        Council of Economic Advisers.......................    35
                                                                     56
        Election Administration Reform.....................    38
                                                                     65
        Electronic Government Fund.........................    38
                                                                     64
        Executive Residence at the White House.............    31
                                                                     55
        Federal Drug Control Programs......................    42
                                                                     68
        National Security Council..........................
                                                                     57
        Office of Administration...........................    35
                                                                     58
        Office of Homeland Security........................    31
                                                                     52
        Office of Management and Budget....................    36
                                                                     60
        Office of National Drug Control Policy.............    40
                                                                     66
        Office of Policy Development.......................    35
                                                                     57
        Special Assistance to the President and the 
            Official Residence of the Vice President.......    34
                                                                     56
        Unanticipated Needs................................    44
                                                                     70
Title IV--Independent Agencies:
        Committee for Purchase from People who are Blind or 
            Severely Disabled..............................    44
                                                                     71
        Federal Election Commission........................    44
                                                                     71
        Federal Labor Relations Authority..................    45
                                                                     72
        General Services Administration....................    46
                                                                     72
        Merit Systems Protection Board.....................    59
                                                                     84
        Morris K. Udall scholarship and foundation.........    60
                                                                     85
        National Archives and Records Administration.......    60
                                                                     86
        Office of Government Ethics........................    62
                                                                     88
        Office of Personnel Management.....................    62
                                                                     89
        Office of Special Counsel..........................    66
                                                                     92
        United States Tax Court............................    66
                                                                     93
        White House Commission on the National Moment of 
            Remembrance....................................    66
                                                                     93
Title V--General Provisions:
        This Act...........................................    67
                                                                     94
Title VI--Governmentwide General Provisions:
        Departments, Agencies, and Corporations............    72
                                                                     95
        Compliance with House Rules........................
                                                                     98
        Tables.............................................
                                                                    102
        Summary of the Total Bill..........................
                                                                    112

    The accompanying bill contains recommendations for new 
budget (obligational) authority for fiscal year 2003 for the 
Department of the Treasury, the Postal Service, various offices 
in the Executive Office of the President, and certain 
Independent Agencies. The following table summarizes these 
recommendations and reflects comparisons with the budget 
request and with amounts appropriated to date for fiscal year 
2002:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget                           Bill compared with--
                                    New budget     estimates of                  -------------------------------
                                   (obligation)         new
             Agency                  authority    (obligational)  Recommended in    New budget        Budget
                                    fiscal year     authority,       the bill        authority       estimate,
                                   2002 enacted     fiscal year                     fiscal year     fiscal year
                                      to date          2003                            2002            2002
----------------------------------------------------------------------------------------------------------------
Treasury........................      15,646,178      15,865,446      16,186,789        +522,611        +303,343
Postal Service..................         596,093          76,619          76,619        -519,474  ..............
Executive Office of the                  797,571         786,002       1,034,536        +236,965        +248,534
 President......................
Independent agencies............      16,674,020      17,517,199      17,510,502        +836,512          -6,697
      Grand total...............      33,713,862      34,276,280      34,821,460      +1,107,598        +545,180
----------------------------------------------------------------------------------------------------------------

                             RECOMMENDATION

    The Committee recommends a total of $18,499,996,000 in 
discretionary resources for agencies under its jurisdiction. 
After scorekeeping adjustments including $745,000,000 
associated with the President's proposal on accrual funding of 
retirement costs, the Committee's recommendation is 
$147,584,000 above amounts appropriated in fiscal year 2002 and 
$207,820,000 below the amounts requested by the President.

             REPROGRAMMING AND TRANSFER OF FUNDS GUIDELINES

    Due to continuing issues associated with agency requests 
for reprogramming and transfer of funds and use of unobligated 
balances, the following guidelines shall be complied with by 
all agencies funded by the Treasury, Postal Service and General 
Government Appropriations Act, 2003:
          1. Except under extraordinary and emergency 
        situations, the Committees on Appropriations will not 
        consider requests for a reprogramming or a transfer of 
        funds, or use of unobligated balances, which are 
        submitted after the close of the third quarter of the 
        fiscal year, June 30;
          2. Clearly stated and detailed documentation 
        presenting justification for the reprogramming, 
        transfer, or use of unobligated balances shall 
        accompany each request;
          3. For agencies, departments, or offices receiving 
        appropriations in excess of $20,000,000, a 
        reprogramming shall be submitted if the amount to be 
        shifted to or from any object class, budget activity, 
        program line item, or program activity involved is in 
        excess of $500,000 or 10 percent, whichever is greater, 
        of the object class, budget activity, program line 
        item, or program activity;
          4. For agencies, departments, or offices receiving 
        appropriations less than $20,000,000, a reprogramming 
        shall be submitted if the amount to be shifted to or 
        from any object class, budget activity, program line 
        item, or program activity involved is in excess of 
        $50,000, or 10 percent, whichever is greater, of the 
        object class, budget activity, program line item, or 
        program activity;
          5. For any action where the cumulative effect of 
        below threshold reprogramming actions, or past 
        reprogramming and/or transfer actions added to the 
        request, would exceed the dollar threshold mentioned 
        above, a reprogramming shall be submitted;
          6. For any action which would result in a major 
        change to the program or item which is different than 
        that presented to and approved by either of the 
        Committees, or the Congress, a reprogramming shall be 
        submitted;
          7. For any action where funds earmarked by either of 
        the Committees for a specific activity are proposed to 
        be used for a different activity, a reprogramming shall 
        be submitted; and,
          8. For any action where funds earmarked by either of 
        the Committees for a specific activity are in excess to 
        meet the project or activity requirement, and are 
        proposed to be used for a different activity, a 
        reprogramming shall be submitted.
    Additionally, each request shall include a declaration 
that, as of the date of the request, none of the funds included 
in the request have been obligated, and none will be obligated, 
until the Committees on Appropriations have approved the 
request.

ACCRUAL FUNDING OF RETIREMENT COSTS AND POST-RETIREMENT HEALTH BENEFITS

    The President's Budget included a legislative proposal 
under the jurisdiction of the House Committee on Government 
Reform to charge to individual agencies, starting in fiscal 
year 2003, the fully accrued costs related to retirement 
benefits of Civil Service Retirement System employees and 
retiree health benefits for all civilian employees. The Budget 
also requested an additional dollar amount in each affected 
discretionary account to cover these accrued costs.
    Without passing judgment on the merits of this legislative 
proposal, the Committee has reduced the dollar amounts of the 
President's request shown in the ``Comparative Statement of New 
Budget Authority'' and other tables in this report to exclude 
the accrual funding proposal. The disposition by Congress of 
the legislative proposal is unclear at this time. Should the 
proposal be passed by Congress and enacted, the Committee will 
make appropriate adjustments to the President's request to 
include accrual amounts.
    The Committee further notes that administration proposals 
requiring legislative action by the authorizing committees of 
Congress are customarily submitted in the budget as separate 
schedules apart from the regular appropriations requests. 
Should such a proposal be enacted, a budget amendment formally 
modifying the President's appropriation request for 
discretionary funding is then transmitted to the Congress.
    The Committee is concerned that this practice, which has 
always worked effectively for both Congress and past 
administrations, was not followed for the accrual funding 
proposal. In this case, the Office of Management and Budget 
(OMB) decided to include accrual amounts in the original 
discretionary appropriations language request. These amounts 
are based on legislation that has yet to be considered and 
approved by the appropriate committees of Congress. This led to 
numerous misunderstandings both inside and outside of Congress 
of what was the ``true'' President's budget request. The 
Committee believes that, in the future, OMB should follow long-
established procedures with respect to discretionary spending 
proposals that require legislative action.

                    PUBLIC AND CONGRESSIONAL AFFAIRS

    The Committee is concerned by the level of expenditures 
being devoted by departments and agencies for the various 
Offices of Congressional and Public Affairs. The Committee 
believes that, in some cases, the expenditures being devoted to 
these functions are not commensurate with the services 
provided. Throughout the year, the Committee has sought 
assistance from these offices with simple matters such as 
scheduling hearings, obtaining copies of testimony, and 
receiving responses to the Committee's questions as it relates 
to the use of appropriated funds. The Committee has been very 
disappointed by the timeliness of the assistance offered by 
many of these offices, particularly as it relates to the 
Committee's efforts to achieve effective oversight of agency 
operations and programs. The Committee will continue to 
scrutinize the appropriations requests for all Offices of 
Congressional and Public Affairs and will look at the degree to 
which these appropriations are used to meet expected levels of 
performance. The Committee will not tolerate any efforts to 
prevent or interfere with effective and comprehensive oversight 
of the use of federal appropriations, including efforts to 
delay responses to the Committee's questions on agency 
operations and activities.

                  TITLE I--DEPARTMENT OF THE TREASURY


                          Departmental Offices


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............      $177,142,000
Budget estimate, fiscal year 2003.....................       191,914,000
Recommended in the bill...............................       187,241,000
Bill compared with:
    Appropriation, fiscal year 2002...................       +10,099,000
    Budget Estimate, fiscal year 2003.................        -4,673,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $187,241,000 
for Departmental Offices, an increase of $10,099,000 above the 
fiscal year 2002 enacted level and a decrease of $4,673,000 
below the President's request. Decreases to the request include 
a reduction of $27,000 associated with the President's pending 
proposal to integrate the benefits and administrative costs of 
the Federal Employees' Compensation Act (FECA) which, to date, 
has not been enacted, $747,000 for overseas inflation costs for 
the Office of International Affairs, $2,854,000 to reflect 
savings from the full non-recurrence of a grant to Florida 
State University for transfer pricing research and support for 
local law enforcement support in Hawaii, a business strategy 
adjustment of $599,000, and a transfer of $446,000 and 5 FTE 
from the Office of Foreign Asset Control to the Financial 
Crimes Enforcement Network. The Committee approves a funding 
level for the Office of Foreign Asset Control of no less than 
$32,359,000 and a funding level for the Office of Enforcement 
of no less than $12,878,000. The Committee notes that the 
Office of International Affairs is the largest office in the 
account, directs that its funding level for fiscal year 2003 be 
no greater than its funding level for fiscal year 2002, and 
suggests that the Secretary should consider whether further 
savings in this office are possible.

                     BUSINESS STRATEGY ADJUSTMENTS

    Most bureaus within the Department of the Treasury were 
required in preparing the President's budget request to assume 
certain levels of savings through business strategy 
adjustments. These adjustments, in effect, constituted a denial 
of a portion of anticipated non-pay inflation costs, which are 
to be achieved through unspecified improvements, process 
streamlining, and other efficiencies. The total level of 
Treasury business strategy adjustments contained in the 
President's request was $85,028,000. It has been the recent 
experience of this Committee that ambitious and aggressive 
expectations of generic savings often result in personnel 
attrition, lower levels of performance, and cuts in programs. 
To safeguard the important work of Treasury Law Enforcement, 
the Committee has restored the proposed business strategy 
adjustments to those affected bureaus.
    The Committee commends the effort to find savings in 
Treasury agencies and is generally supportive of actions to 
lower operational costs without diluting program performance. 
However, holding agencies to arbitrary spending reductions 
without any concrete plan for how such savings will be achieved 
may lead to poor decisions, programmatic reductions, and other 
unintended consequences. Therefore, the Department of the 
Treasury is directed to submit quarterly reports to the 
Committee on the actions being taken by each of its agencies, 
bureaus, and groups for whom a business strategy adjustment has 
been sustained on how the adjustment is being achieved and its 
impact on program performance. The Committee also directs that 
any future proposal to achieve savings through similar 
adjustments be accompanied by specific and complete 
descriptions of proposed changes to each affected agency, its 
systems, its programs, and its procedures.

                  CERTIFICATE-BASED INTERNET SECURITY

    The Committee is aware of the need for security in 
permitting secure Internet communication for Customs, Secret 
Service, and other Treasury law enforcement agents to prevent 
cyber attacks and protect against identity theft in key 
information systems. The Committee therefore strongly supports 
developing capability for certificate-based Internet security 
projects to provide standards-based e-mail encryption and 
digital signature capabilities; permit interoperability with 
the Federal Bridge and other government public key 
infrastructure systems and applications; demonstrate proven 
scalability; support multiple platforms; and include automated, 
secure key and certificate management. The Committee directs 
the Under Secretary for Enforcement, in consultation with its 
law enforcement bureaus, to report not later than September 30, 
2002, on Departmental actions to ensure this security, the 
level and sources of funding involved, and estimates of 
additional resources that might be required.

                     ANTI-COUNTERFEITING TECHNOLOGY

    One element of concern in promoting homeland security is 
the risk of counterfeiting important federal documents, such as 
identification credentials or documents. A possible defense 
against such risk would be to incorporate anti-counterfeiting 
measures, such as specially designed paper, that can help 
ensure authenticity of such documents or items. The Committee 
encourages the Treasury Department and its bureaus to review 
the possible need and applications for such technologies, such 
as those involving the use of optical fluorescent fibers or 
glass-coated microwires embedded in papers or otherwise applied 
to documents and then encoded with encrypted identifiers, where 
such security measures can improve security.

        Department-Wide Systems and Capital Investments Programs





Appropriation, fiscal year 2002 to date...............       $68,828,000
Budget estimate, fiscal year 2003.....................        68,828,000
Recommended in the bill...............................        68,828,000
Bill compared with:
    Appropriation, fiscal year 2002...................  ................
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

    This appropriation funds the modernization of Treasury 
business processes and increases in Department-wide systems 
efficiency through technology investments for systems that 
involve more than one Treasury bureau or Treasury's interface 
with other governmental agencies.

                             RECOMMENDATION

    The Committee recommends an appropriation of $68,828,000 
for the Department-wide Systems and Capital Investments 
Programs, the same as the fiscal year 2002 enacted level and 
the President's request.

                 INTEGRATED TREASURY (WIRELESS) NETWORK

    The Committee is concerned that Treasury has not yet 
identified sufficient funding to ensure that its bureaus will 
be in compliance with the National Telecommunications and 
Information Administration (NTIA) requirements for moving all 
radios from broadband to narrowband. The Committee also notes 
that no funds have been included in the President's request for 
fiscal year 2003 to support requirements for the Project 
SAFECOM initiative (the Wireless Public SAFEty Interoperable 
Communications Program), for which the Office of Management and 
Budget has assigned Treasury the lead. This initiative involves 
an expanded, implementation focused Public Sector Wireless 
Network (PSWN) program, including direct assistance to state 
and local governments for land-mobile-radio interoperability. 
The Treasury Department has been involved with and supported 
PSWN through its Integrated Treasury (Wireless) Network program 
for several years, and the Committee does not object to 
Treasury taking the lead on this e-government project. However, 
inasmuch as the Congressional budget justification does not 
include any direct support for Project SAFECOM and given the 
pressing need for Treasury to bring its assets into compliance 
with the NTIA mandate, the Committee directs Treasury not to 
expend significant resources for Project SAFECOM during fiscal 
year 2003 absent an approved reprogramming.

                      Office of Inspector General


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............       $35,424,000
Budget estimate, fiscal year 2003.....................        35,428,000
Recommended in the bill...............................        35,424,000
Bill compared with:
    Appropriation, fiscal year 2002...................  ................
    Budget Estimate, fiscal year 2003.................            -4,000


                                MISSION

    This appropriation provides agency-wide audit and 
investigative functions to identify and correct operational and 
administrative deficiencies, which create conditions for 
existing or potential instances of fraud, waste, and 
mismanagement. The audit function provides program, contract, 
and financial statement audit services. Contract audits provide 
professional advice to agency contracting officials on 
accounting and financial matters relative to negotiation, 
award, administration, repricing, and settlement of contracts. 
Program audits review and evaluate all facets of agency 
operations. Financial statement audits assess whether financial 
statements fairly present the agency's financial condition and 
results of operations, the adequacy of accounting controls, and 
compliance with laws and regulations. The investigative 
function provides for the detection and investigation of 
improper and illegal activities involving programs, personnel, 
and operations. The Office of Inspector General also provides 
for internal investigations made by the Office of Internal 
Affairs and Inspection in the Bureau of Alcohol, Tobacco and 
Firearms, the Customs Service, and the Secret Service.

                             RECOMMENDATION

    The Committee recommends an appropriation of $35,424,000 
for the Office of Inspector General, the same as the fiscal 
year 2002 enacted level and a decrease of $4,000 below the 
President's request. The reduction below the President's 
request is associated with the President's pending proposal to 
integrate the benefits and administrative costs of the Federal 
Employees' Compensation Act (FECA) which, to date, has not been 
enacted.

                Inspector General for Tax Administration


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............      $125,778,000
Budget estimate, fiscal year 2003.....................       123,962,000
Recommended in the bill...............................       123,962,000
Bill compared with:
    Appropriation, fiscal year 2002...................        -1,816,000
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

    The Internal Revenue Service (IRS) Restructuring and Reform 
Act of 1998 established the Office of Treasury Inspector 
General for Tax Administration and abolished the IRS Office of 
the Chief Inspector. The Office was established in January of 
1999 as required by that legislation. The Treasury Inspector 
General for Tax Administration conducts audits, investigations, 
and evaluations to assess the operations and programs of the 
IRS and its related entities, the IRS Oversight Board and the 
Office of Chief Counsel. The purpose of those audits and 
investigations is to: (1) promote the economic, efficient, and 
effective administration of the nation's tax laws and to detect 
and deter fraud and abuse in IRS programs and operations; and 
(2) recommend actions to resolve fraud and other serious 
problems, abuses, and deficiencies in these programs and 
operations.

                             RECOMMENDATION

    The Committee recommends an appropriation of $123,962,000 
for the Inspector General for Tax Administration, a decrease of 
$1,816,000 below the fiscal year 2002 enacted level and the 
same as the President's request.

                Air Transportation Stabilization Program





Appropriation, fiscal year 2002 to date...............  ................
Budget estimate, fiscal year 2003.....................        $6,041,000
Recommended in the bill...............................         6,041,000
Bill compared with:
    Appropriation, fiscal year 2002...................        +6,041,000
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

    The Air Transportation Stabilization Board was authorized 
in the Air Transportation Safety and Stabilization Act to issue 
$10 billion of Federal credit instruments to air carriers. The 
purpose is ``to compensate air carriers for losses incurred by 
the air carriers as a result of the terrorist attacks on the 
United States that occurred on September 11, 2001'', providing 
among other criteria, that ``such agreement is a necessary part 
of maintaining a safe, efficient, and viable commercial 
aviation system in the United States''.

                             RECOMMENDATION

    The Committee recommends an appropriation of $6,041,000 for 
the Air Transportation Stabilization Program, an increase of 
$6,041,000 above the fiscal year 2002 enacted level and the 
same as the President's request. The Committee notes that 
$9,400,000 was provided for this program in fiscal year 2001 
and funds were made available until expended. The Committee 
directs that the Department of the Treasury submit a report 90 
days after the enactment of this Act on the status of this 
effort, a description of the credit instruments issued, and the 
ongoing management activities of the Air Transportation 
Stabilization Board to monitor and review the financial 
performance of each borrower.

           Treasury Building and Annex Repair and Restoration





Appropriation, fiscal year 2002 to date...............       $28,932,000
Budget estimate, fiscal year 2003.....................        32,932,000
Recommended in the bill...............................        32,932,000
Bill compared with:
    Appropriation, fiscal year 2002...................        +4,000,000
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $32,932,000 
for Treasury Building and Annex Repair and Restoration, an 
increase of $4,000,000 above the fiscal year 2002 enacted level 
and the same as the President's request.

                 Expanded Access to Financial Services





Appropriation, fiscal year 2002 to date...............        $2,000,000
Budget estimate, fiscal year 2003.....................         2,000,000
Recommended in the bill...............................         4,000,000
Bill compared with:
    Appropriation, fiscal year 2002...................        +2,000,000
    Budget Estimate, fiscal year 2003.................        +2,000,000


                                MISSION

    The Expanded Access to Financial Services account is 
intended to help low- and moderate-income Americans benefit 
from access to basic financial services.

                             RECOMMENDATION

    The Committee recommends an appropriation of $4,000,000 for 
the Expanded Access to Financial Services account, an increase 
of $2,000,000 above the fiscal year 2002 enacted level and the 
President's request. Funds are available upon authorization of 
the program. The Committee includes bill language directing 
that none of the funds shall be used (1) to provide real 
property, automated teller machines, or any other equipment for 
use by any financial institution, (2) for any program or 
activity that incurs costs in excess of $100 for each 
participant who is expected to establish an account, or (3) for 
any program or activity that does not provide at least $0.50 in 
non-federal matching funds for each $1.00 received from the 
Expanded Access to Financial Services account.
    These restrictions are based on a preliminary review of the 
recent grants awarded under this program, which shows that 
costs will average almost $250 for each individual expected to 
be induced to use financial services (in some instances, costs 
will exceed $1,000 per participant) and that program funds will 
be used to provide facilities for certain financial 
institutions. Without endorsing this exorbitance, the Committee 
has established these minimal safeguards and directs the 
Department of the Treasury to exert careful stewardship and to 
manage the funds in this account in a judicious and fiscally 
conservative fashion.
    In the statement released on May 1, 2002, announcing awards 
for 15 proposals, the Treasury Department noted that it 
received a total of 231 applications from 38 states. The 
Committee directs the Department of the Treasury to submit a 
report within 90 days of the enactment of this Act outlining 
the procedures and criteria used to select the 15 proposals. 
The report should contain a review of the general process as 
well as an evaluation of the basic differences between those 
applications that were accepted and those that were not. The 
Department should also comment in the report on the merits and 
demerits of this program.
    The Committee believes that many potential barriers to 
expanded access to financial services are not amenable to 
government involvement and stem directly from externally-driven 
cost structures within the banking industry. The Committee 
notes that a variety of ``no-fee'' accounts are available to 
qualifying individuals, and that the qualifying requirements 
for opening no-fee accounts are often quite different. Some 
banks have minimum balance requirements for opening and 
maintaining any type of account. Some banks offer accounts with 
limitations, exemptions, or restrictions on transactions that 
can result in account fees or penalties. Other account 
restrictions may affect the terms and conditions for the 
payment of any interest on deposited funds. Therefore, the 
Committee directs that the Department of Treasury provide, 
within 90 days of enactment of this Act, a report that 
quantitatively describes these externally derived barriers, 
fully justifies government involvement, and provides meaningful 
measures of performance. In particular, the report should 
address the feasibility of re-focusing this program toward 
assembling and disseminating information about where and how 
``un-banked'' individuals can open no-fee accounts without 
significant minimum balance requirements.

                         Counterterrorism Fund





Appropriation, fiscal year 2002 to date...............       $40,000,000
Budget estimate, fiscal year 2003.....................        40,000,000
Recommended in the bill...............................        33,000,000
Bill compared with:
    Appropriation, fiscal year 2002...................        -7,000,000
    Budget Estimate, fiscal year 2003.................        -7,000,000


                                MISSION

    This appropriation provides funding for unanticipated costs 
associated with support to counter, investigate, or prosecute 
domestic or international terrorism, including payment of 
rewards, and to re-establish the operational capability of an 
office, facility, or other property damaged or destroyed as a 
consequence of any unexpected domestic or international 
terrorist act. Funds may also be used to pay the costs for 
officially designated National Special Security Events (NSSEs). 
These funds are available to the extent that prior notification 
is sent to the Committees on Appropriations in accordance with 
guidelines on reprogramming and transfer of funds.

                             RECOMMENDATION

    The Committee recommends an appropriation of $33,000,000 
for the Treasury Counterterrorism Fund, a reduction of 
$7,000,000 below both the fiscal year 2002 enacted level and 
the President's request. The Committee has continued language 
specifying that the fund is to be used for unexpected threats 
or acts of terrorism, and that funding shall be available after 
prior notification is made to the Committees on Appropriations 
in accordance with reprogramming and transfer guidelines. A new 
proviso is included, as requested by the Administration, to 
authorize the fund to be used to reimburse Federal agencies for 
their costs of responding to Secret Service requests for 
assistance for a National Special Security Event.

                  Financial Crimes Enforcement Network


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............       $47,537,000
Budget estimate, fiscal year 2003.....................        50,517,000
Recommended in the bill...............................        51,444,000
Bill compared with:
    Appropriation, fiscal year 2002...................        +3,907,000
    Budget Estimate, fiscal year 2003.................          +927,000


                                MISSION

    The Financial Crimes Enforcement Network (FinCEN) is 
responsible for implementing Treasury's anti-money laundering 
regulations through administration of the Bank Secrecy Act, 31 
U.S.C. section 5311, et seq (BSA). It also serves as a United 
States Government source for the systematic collection and 
analysis of information to assist in the investigation of money 
laundering and other financial crimes. FinCEN supports law 
enforcement investigative efforts by Federal, State, local and 
international agencies, and fosters interagency and global 
cooperation against domestic and international financial 
crimes. It also provides U.S. policymakers with strategic 
analyses of domestic and worldwide trends and patterns. FinCEN 
accomplishes these efforts through information collection, 
sophisticated data analysis, and intelligence sharing; 
technological assistance; and implementation of Treasury 
authorities. It prevents money laundering through its 
regulatory and outreach programs, including setting policy for 
and overseeing BSA compliance by financial institutions, and by 
providing BSA training for law enforcement, bankers, and bank 
regulators. FinCEN supports U.S. Government initiatives on 
money laundering and financial crime through multilateral 
organizations, such as the Financial Action Task Force (FATF) 
of the Group of Eight, and the UN. It is a catalyst for the 
development of Financial Intelligence Units (FIUs) in other 
countries, and the transfer of information on money laundering 
and financial services worldwide.
    Pursuant to the USA PATRIOT Act of 2001, FinCEN was made a 
Treasury Bureau in recognition of its key role in supporting 
investigations and other government efforts to identify and 
stop the financing of terrorist organizations and activity. The 
PATRIOT Act also gave FinCEN substantial new responsibilities 
for collecting, sharing, and managing financial and other 
information as part of its counter-terrorism mission. FinCEN 
recently began a significant new BSA initiative when it began 
collecting Suspicious Activity Reports (SARs) from money 
service businesses (MSBs), who were obliged to register by 
December 31, 2001.

                             RECOMMENDATION

    The Committee recommends an appropriation of $51,444,000 
for the Financial Crimes Enforcement Network, an increase of 
$3,907,000 above the fiscal year 2002 enacted level and 
$927,000 above the President's request. The increase above the 
President's request includes $481,000 for non-pay inflation and 
$446,000 to realign funding from the Office of Foreign Asset 
Control to FinCEN in support of the Foreign Terrorist Asset 
Tracking (FTAT) Center.

                        USA PATRIOT ACT MANDATES

    FinCEN is responsible for 23 of the 44 sections of Title 
III of the USA PATRIOT Act of 2001 that relate to money 
laundering and terrorist financing. FinCEN received some 
additional funding in the fiscal year 2002 supplemental 
appropriation, and the Committee supports the Administration's 
request for an additional $1,000,000 and eight FTE in fiscal 
year 2003.
    However, FinCEN testified that additional resources would 
be needed to hire both personnel and contractual support in 
order to implement all of the mandates of the PATRIOT Act, once 
regulations or programs were finalized. Certain critical 
programs have reached that point, but no additional funding was 
requested for fiscal year 2003, nor has any been provided. 
These include (1) establishing the Patriot Act Communications 
System (PACS), mandated by section 362 of the Act, which is 
essential for converting Suspicious Activity Report (SAR) 
reporting from paper- to electronic-based systems; (2) 
providing a government-wide data access service (Section 361), 
to meet the demand for expanded access by federal agencies to 
FinCEN's Gateway system since September 11th; and (3) 
implementing a system for information exchanges between 
government and financial institutions (Section 314), which is 
essential to permitting implementation of the rule that 
requires financial institutions to search internal records for 
name matches and report, via FinCEN, to law enforcement 
agencies making investigative inquiries.
    The Committee received testimony about these mandated 
efforts; believes they should be funded; and therefore directs 
the Department to provide $2,500,000 from the Super Surplus of 
the Treasury Forfeiture Fund to FinCEN for these activities to 
cover costs for both the remainder of fiscal year 2002 and for 
fiscal year 2003.

                     2002 MONEY LAUNDERING STRATEGY

    In testimony before the subcommittee, the Treasury 
Department testified that the 2002 National Money Laundering 
Strategy would be released by April, and now has learned that 
the strategy may not be submitted until July 2002. The 
Committee must state its concern that a document necessary to 
outline the priorities and strategy for money laundering, 
including blocking terrorist financing, should be so long in 
coming, and urges the Administration to expedite the review 
process and forward the strategy as soon as possible.

                Federal Law Enforcement Training Center


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............      $128,680,000
Budget estimate, fiscal year 2003.....................       122,393,000
Recommended in the bill...............................       152,951,000
Bill compared with:
    Appropriation, fiscal year 2002...................       +24,271,000
    Budget Estimate, fiscal year 2003.................       +30,558,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $152,951,000 
for the Federal Law Enforcement Training Center, an increase of 
$24,271,000 above the fiscal year 2002 enacted level and 
$30,558,000 above the President's request. The increase above 
the President's request includes $595,000 to fully fund non-pay 
inflation, and $30,046,000 to fully annualize training costs 
for new hires for the Transportation Security Administration, 
reduced by $83,000 associated with the President's pending 
proposal to integrate the benefits and administrative costs of 
the Federal Employees' Compensation Act (FECA) which, to date, 
has not been enacted.

         TRAINING WORKLOAD AND THE IMPACT OF HOMELAND SECURITY

    The need to improve homeland security in the wake of the 
September 11th attacks, and resulting organizational changes 
such as the creation of the Transportation Security 
Administration (TSA), have generated a significant increase in 
the number of new federal law enforcement and security 
employees, with a concomitant surge in the training workload 
for FLETC, forcing the Center into six-day workweeks. Some of 
this may be mitigated by improved scheduling and more reliable 
planning coordination by participating agencies; the Committee 
is supportive of efforts by FLETC, working with the Treasury 
Department, Justice Department, and other key consumers of 
FLETC training, to improve communication and coordination in 
this regard. To address immediate shortfalls, the Committee has 
included $30,046,000 to address unforeseen costs of new TSA 
training. However, there may be other unanticipated costs and 
workload following any reorganization that may occur with the 
proposed new Department of Homeland Security, as well as to 
meet other homeland security requirements. The Committee 
therefore directs FLETC to report to the Committee not later 
than January 1, 2003 of any significant changes in its training 
workload that may result from such developments that would 
affect its facility needs or operating costs.

             ACCOMMODATION OF FEDERAL AGENCY TRAINING NEEDS

    The expanded training requirements of federal agencies 
since the September 11th attacks have imposed tremendous 
strains on FLETC facilities, requiring six-day workweeks and, 
in some cases, housing students some distance away. The 
Committee is fully committed to the principle of consolidated 
law enforcement training and supports FLETC as the provider of 
basic training for federal law enforcement officials. However, 
the Committee recognizes the demands upon FLETC for more 
specialized or advanced training, and that FLETC capacity is a 
major constraint in providing such training at its campuses. In 
such cases, particularly for new training related to homeland 
security, the Committee directs FLETC to work with other 
federal agencies to identify and make maximum use of existing 
training facilities, such as the FAA centers in New Jersey and 
Oklahoma, consistent with meeting agencies' training needs, and 
where it represents the most cost effective use of government 
resources.

                      DISTANCE AND REMOTE LEARNING

    One way to achieve a higher level of productivity and to 
make the resources of FLETC training available to a wider 
geographic area, as well as to give the law enforcement 
community opportunities for continued professional training, is 
distance learning. FLETC utilizes two forms of such export 
training: for federal agencies on a reimbursable basis, and for 
State and local agencies through the National Center for State 
and Local Law Enforcement Training, which operates the Small 
Town and Rural (STAR) program. With new and growing demands on 
FLETC capacity to provide training or training support for 
airport, local and state security personnel, FLETC needs to 
expand its capacity to provide training at dispersed sites, 
including training at home. The Committee urges the Treasury 
Department to provide sufficient funding to the FLETC Distance 
Learning Program.

      Acquisition, Construction, Improvements and Related Expenses





Appropriation, fiscal year 2002 to date...............       $41,934,000
Budget estimate, fiscal year 2003.....................        23,329,000
Recommended in the bill...............................        31,800,000
Bill compared with:
    Appropriation, fiscal year 2002...................       -10,134,000
    Budget Estimate, fiscal year 2003.................        +8,471,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $31,800,000 
for FLETC Acquisition, Construction, Improvements, and Related 
Expenses, a decrease of $10,134,000 below the fiscal year 2002 
appropriation and $8,471,000 above the President's request.

                           MASTER PLAN UPDATE

    The Committee is aware that no additional facilities were 
requested by the Administration for FLETC, in part because the 
master plan is undergoing a thorough review. Some items in the 
current master plan may be eliminated or modified in light of 
this update, which will incorporate changes resulting from 
post-September 11th training needs. However, the Committee has 
learned that several items in the current plan remain high 
priorities, and will remain so under any revised master plan, 
such as expanding the steam distribution system at Glynco, 
providing full support costs for new buildings, and various 
additions and infrastructure improvements at Cheltenham. The 
Committee therefore provides an additional $8,471,000 to 
address such requirements. The Committee directs FLETC to 
report back not later than November 1, 2002, on its plans to 
obligate these funds.

                      Interagency Law Enforcement


                 INTERAGENCY CRIME AND DRUG ENFORCEMENT




Appropriation, fiscal year 2002 to date...............      $107,576,000
Budget estimate, fiscal year 2003.....................       107,576,000
Recommended in the bill...............................       110,594,000
Bill compared with:
    Appropriation, fiscal year 2002...................        +3,018,000
    Budget Estimate, fiscal year 2003.................        +3,018,000


                                MISSION

    This program consists of nine regional task forces that 
consolidate resources and expertise of 11 member federal 
agencies, in cooperation with state and local investigators and 
prosecutors, to target and destroy major narcotic trafficking 
and money laundering organizations. The funding for Treasury 
Department participation was included in the Department of 
Justice appropriation prior to fiscal year 1998. Since then, 
Treasury has administered its portion of the program through 
its Departmental Offices to reimburse the three Treasury 
bureaus--the Customs Service, the Bureau of Alcohol, Tobacco, 
and Firearms, and the Internal Revenue Service--for the costs 
of their employees detailed to the task forces, as well as for 
operating expenses during investigative phases of cases.

                             RECOMMENDATION

    The Committee recommends an appropriation of $110,594,000 
for Interagency Crime and Drug Enforcement, $3,018,000 above 
the fiscal year 2002 enacted level and the President's request, 
for non-pay inflation costs.

                      Financial Management Service


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............      $212,850,000
Budget estimate, fiscal year 2003.....................       220,712,000
Recommended in the bill...............................       220,664,000
Bill compared with:
    Appropriation, fiscal year 2002...................        +7,814,000
    Budget Estimate, fiscal year 2003.................           -48,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $220,664,000 
for the Financial Management Service, an increase of $7,814,000 
above the fiscal year 2002 enacted level and a decrease of 
$48,000 below the President's request. The reduction below the 
President's request is associated with the President's pending 
proposal to integrate the benefits and administrative costs of 
the Federal Employees' Compensation Act (FECA) which, to date, 
has not been enacted.
    The Committee is aware of issues raised by the General 
Accounting Office about FMS computer controls and has been 
briefed by FMS on its efforts to resolve these and other 
outstanding computer issues and to keep current with computer 
technologies that are critical to achieving its mission and 
improving its performance. The Committee recognizes the 
potential benefits from private sector involvement in 
information technology issues and the steps FMS is taking to 
facilitate the appropriate involvement of private sector firms. 
The Committee encourages FMS to remain fully engaged in 
enhancing its computer capabilities and in exploring all 
information technology solutions.

                Bureau of Alcohol, Tobacco and Firearms


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............      $854,747,000
Budget estimate, fiscal year 2003.....................       883,775,000
Recommended in the bill...............................       891,034,000
Bill compared with:
    Appropriation, fiscal year 2002...................       +36,287,000
    Budget Estimate, fiscal year 2003.................        +7,259,000


                                MISSION

    The Bureau of Alcohol, Tobacco and Firearms (ATF) is 
responsible for the enforcement of laws designed to eliminate 
certain illicit activities and to regulate lawful activities 
relating to distilled spirits, beer, wine and nonbeverage 
alcohol products, tobacco, firearms, explosives, and arson. Its 
responsibilities are focused on reducing the future number and 
cost of violent crimes; collecting revenue, reducing taxpayer 
burden and improving service while preventing diversion; and 
protecting the public and preventing consumer deception in 
ATF's regulated commodities.

                             RECOMMENDATION

    The Committee recommends an appropriation of $891,034,000 
for the Bureau of Alcohol, Tobacco and Firearms, an increase of 
$36,287,000 above the fiscal year 2002 enacted level and an 
increase of $7,259,000 above the President's request. The 
increase consists of $7,604,000 for non-pay inflation, reduced 
by $345,000 associated with the President's pending proposal to 
integrate the benefits and administrative costs of the Federal 
Employees' Compensation Act (FECA) which, to date, has not been 
enacted.

                YOUTH CRIME GUN INTERDICTION INITIATIVE

    The Committee recognizes that the Youth Crime Gun 
Interdiction Initiative, a key part of the Administration's 
violence reduction strategy, has grown considerably in the past 
six years, from $2,100,000 in 17 cities to an $85,000,000 
program in 50 cities nationwide in fiscal year 2002. The 
Administration proposes to add $11,000,000 and 82 positions to 
permit the addition of 10 additional cities. In testimony 
provided to the Committee, ATF indicated that among other 
things, a community must have a minimum population of 250,000 
to qualify for YCGII designation. At the same time, there are 
numerous cities and communities with smaller populations that 
have indicated an interest in participating in YCGII. The 
Committee recognizes that this program should be driven 
particularly by a combination of population demographics, youth 
crime and firearms trafficking patterns, and experience in 
firearms tracing. The Committee also strongly encourages ATF to 
consider how it can accommodate the needs of smaller 
communities who can participate in YCGII or otherwise benefit 
from ATF firearms tracing programs.

                             GREAT PROGRAM

    In November 2001 ATF released a longitudinal study of the 
Gang Resistance Education And Training (GREAT) program, which 
indicated what impact GREAT has had on reducing gang violence. 
The principal conclusion was that participating students 
expressed more pro-social attitudes, and more antipathy towards 
gangs, after participation than those not exposed to GREAT 
curriculum. Notably, although the program received many 
favorable ratings from local law enforcement agencies 
associated with it, there was no significant impact 
attributable to the program in terms of reducing, initiating, 
or sustaining gang membership. This leads to a serious 
question: is the GREAT program having its intended effect? The 
Committee recognizes the problems in trying to assess changes 
in gang participation and activity, since there is no reliable 
database of gang membership, and that neither Uniform Crime 
Report data nor many local law enforcement information sources 
support mapping crimes and distinguishing juvenile from other 
crime. While to rectify this information deficit is beyond the 
mission of ATF, the Committee strongly urges ATF to take steps 
to increase the impact of this program on gang activity, 
including curriculum improvements aimed at shortening the time 
between attitude change and behavioral transformation. ATF is 
directed to include a status report on these efforts with the 
submission of its fiscal year 2004 budget request.

          IMPROVEMENTS IN LICENSING AND REGULATORY OPERATIONS

    In each of fiscal years 2001 and 2002 Congress provided 
$500,000 in funding for improving operations, electronic filing 
systems, and database accuracy for the National Licensing 
Center, Imports Branch, and National Firearms Act (NFA) Branch. 
Results of this funding have been the creation of integrated 
databases for transactions and for analysis, improved 
management reporting, and increasing staff support of 
processing functions. The Committee recommendation continues 
this level of funding, and it supports continued improvements 
in management of these activities, including making significant 
progress in correcting remaining inaccuracies within the NFA 
database.

                           TOBACCO DIVERSION

    The Committee is aware that tobacco diversion and smuggling 
have become associated with supporting terrorist organizations 
and activities. ATF has reported that it initiated five related 
investigations in fiscal years 2000-2002 showing such 
relationships. The Committee directs ATF, in consultation with 
the U.S. Customs Service, to report by January 1, 2003 on the 
scope and nature of this activity, and recommendations for 
actions and resources needed to deter and investigate such 
trafficking.

                     INSPECTION RATES AND STAFFING

    Following the September 11th, 2001, terrorist attacks ATF 
initiated a policy of fully investigating all incidents of 
theft or loss of explosive materials, and conducting full 
compliance inspections on all explosives licenses and 
permittees, and as a result recorded 1,763 instances of 
licensing, record keeping, or storage violations. Yet despite a 
stated goal of inspecting all explosive licensees and 
permittees each year, ATF has sufficient numbers of inspectors 
to complete half that. The Committee is aware that ATF is 
updating its 1999 report on the resources needed to complete 
100 percent inspections, per optimal cycle determined by 
commodity type. The Committee strongly urges ATF to complete 
and transmit this report to the House Committee on 
Appropriations before transmission of the fiscal year 2004 
budget request.

                 INTEGRATED VIOLENCE REDUCTION STRATEGY

    The Committee is aware that ATF plans to expand its access 
to U.S. attorneys' offices in outlying areas over the next two 
years. This would lead to the creation of 40 new satellite 
offices in selected cities where U.S. attorneys are nearby but 
there is currently no ATF office. The Committee directs ATF, as 
they implement this plan, to give strong consideration to 
establishing a satellite office in Jersey City, New Jersey.

                       LAW ENFORCEMENT DATABASES

    The Committee is concerned that certain law enforcement 
databases may be subject to public release under the Freedom of 
Information Act (FOIA). As a result, information collected and 
maintained by ATF related to ongoing criminal investigations of 
firearms, arson or explosive offenses could be released, 
potentially compromising those cases. What is a greater concern 
is that such release could be accomplished on a comprehensive 
basis, making all such data available to the public. The need 
to maintain these databases on a limited confidential basis 
that has been in place at ATF for several years for tracing 
records derives from the long-term nature of criminal 
investigations. In addition to jeopardizing criminal 
investigations and officer safety, such information, once 
released, might easily be disseminated through the Internet. 
This would not only pose a risk to law enforcement and homeland 
security, but also to the privacy of innocent citizens. The 
Committee therefore includes language (Section 642) ensuring 
that no appropriated funds may be available to ATF to take any 
action under the FOIA with respect to such law enforcement 
records, except that disclosure of information collected or 
maintained under 18 U.S.C. 846(b), 923(3) or 923(g)(7) or from 
Federal, State, local or foreign law enforcement in connection 
with arson or explosives incidents or the tracing of a firearm 
may continue in accordance with long standing agency practice.

                       ATF EXPLOSIVES ENFORCEMENT

    The Committee is concerned that ATF's budget request for 
fiscal year 2003 does not provide for an increase in explosives 
enforcement resources. The ATF Director has testified that it 
is difficult for the bureau, on a sustained basis, to inspect 
more than 50 percent of explosives licensees nationwide. 
Because of the threat presented to the country by the potential 
theft and terrorist use of explosives, the Committee urges the 
Department of the Treasury to reevaluate ATF's original request 
and to submit a request for sufficient explosives enforcement 
resources in future budget submissions.

                     United States Customs Service


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............    $2,471,960,000
Budget estimate, fiscal year 2003.....................     2,391,952,000
Recommended in the bill...............................     2,496,165,000
Bill compared with:
    Appropriation, fiscal year 2002...................       +24,205,000
    Budget Estimate, fiscal year 2003.................      +104,213,000


                                MISSION

    The United States Customs Service is the nation's principal 
border agency with responsibility to enforce the law, safeguard 
revenue, and support lawful international trade and travel. Its 
mission is to ensure that all goods that enter and exit the 
United States do so in accordance with all United States laws 
and regulations. This includes enforcing U.S. laws intended to 
stop trafficking in drugs and other contraband; protecting the 
American public and environment from the introduction of 
prohibited hazardous and noxious products; assessing and 
collecting revenue in the form of duties, taxes, and fees on 
imported merchandise; regulating the movement of persons, 
carriers, merchandise, and commodities between the United 
States and other nations, while facilitating the movement of 
all legitimate cargo, carriers, travelers, and mail; 
interdicting narcotics and other contraband; and enforcing 
certain provisions of the export control laws of the United 
States.

                             RECOMMENDATION

    The Committee recommends an appropriation of $2,496,165,000 
for the U.S. Customs Service, an increase of $24,205,000 above 
the fiscal year 2002 enacted level and an increase of 
$104,213,000 above the President's request. The increase fully 
funds base operations that the President had proposed be met 
through an increase in passenger processing user fees; 
$18,377,000 for non-pay inflation; and a reduction of 
$1,914,000 associated with the President's pending proposal to 
integrate the benefits and administrative costs of the Federal 
Employees' Compensation Act (FECA) which, to date, has not been 
enacted. The Committee also includes an additional $2,500,000 
for steel tariff enforcement, $2,000,000 for technology 
acquisition, research and development, and $500,000 to support 
agricultural trade research. The Committee notes that the total 
funding level reflects a scorekeeping adjustment of 
$167,000,000 associated with the President's user fee proposal, 
resulting in a net increase of $82,750,000 above the 
President's request for base operations.

                           PROPOSED USER FEE

    The Administration has proposed an increase in the COBRA 
passenger processing user fee, and assumed that $249,750,000 in 
user fees would be collected to offset an equivalent level of 
basic Customs operations. However, the only authority for this 
change is included in language submitted as proposed 
appropriations language--which the Committee has not included--
and no separate authorization legislation has been enacted. For 
this proposal to have been effective, it was necessary for 
enactment and implementation to be effective before July 2002. 
As no fees would be available to offset Customs' base 
operations, the Committee directly appropriates the full 
$249,750,000, offset by $167,000,000 in scorekeeping 
adjustments when compared to the President's request.

                NORTHERN BORDER STAFFING AND INVESTMENTS

    The fiscal year 2002 appropriations Acts included over 
$130,000,000 in additional funding towards meeting critical 
needs along the Northern Border, providing hundreds of new 
inspector and agent positions and inspection technology. These 
investments are being used to support heightened security at 
the Northern Border, enhance maritime port security, and 
bolster anti-money laundering efforts designed to disrupt 
terrorist financing.
    After the September 11th terrorist attacks, security needs 
have raised the threshold for appropriate levels of staffing at 
the Northern Border, while the Customs Service continues to 
experience normal attrition rates. To meet the security needs 
at the Northern Border, the Committee expects the Customs 
Service to place a priority on providing adequate staffing. As 
traffic levels have a critical effect on security and 
efficiency at ports of entry, the Committee directs the Customs 
Service to consider traffic volume in assigning new inspectors 
and agents, giving highest priority to high traffic, high risk 
ports of entry.
    The Committee has had long-standing concerns about the 
condition and infrastructure needs of the ports of entry along 
the Northern Border. A Committee-requested report completed in 
June 2000 by the U.S. Customs Service, in consultation with the 
General Services Administration (GSA), identified almost $800 
million in unmet infrastructure needs at these land-based ports 
of entry. For fiscal year 2003, the President's request 
includes $27,366,000 in GSA's budget for new construction at 
border stations. Increased security concerns, technology 
changes, and personnel needs identified since the September 
11th attacks have raised questions about the adequacy of 
proposed border station construction projects. The Committee 
directs the Customs Service to work closely with GSA in the 
development of its construction plans and budgets, and to 
ensure that all current and prospective requirements, 
particularly those recently identified, will be met.
    The Committee is also aware that the Customs Service is 
evaluating the costs and benefits associated with applying a 
``reverse inspection'' pilot project along the Northern Border. 
The Committee strongly encourages Customs, in its collaboration 
with GSA, to support implementation of the ``Smart Border 
Accord'' with Canada, including a review of the feasibility of 
programs of ``reverse inspections'' along the Northern Border. 
The Committee encourages the Customs Service to evaluate 
similar pilot programs that inspect potentially dangerous 
vehicles prior to crossing into the United States along the 
Northern Border.

                       RESOURCE ALLOCATION MODEL

    In fiscal year 2000, the U.S. Customs Service submitted a 
Resource Allocation Model (RAM) report to Congress that 
described Customs optimal staffing levels and displayed 
projected staffing increases for fiscal years 2000-2002. The 
RAM is a first-order management tool designed for and used by 
Customs to project Customs' entire staffing requirements, based 
on broad, national workload factors, for core operational 
occupations and positions required to support core occupations. 
The RAM takes into account workload, enforcement threat, 
desired results, and uncontrollable circumstances as part of 
its projection methodology. While useful as a planning tool for 
estimating overall staffing needs, Customs has testified that 
the RAM is inadequate as a sole means of comparing allocation 
priorities between different Customs sites or activities. 
Nevertheless, with the increases in staffing following the 
September 11th attacks, the basis for allocating staffing may 
have changed, both in terms of priorities and numbers. The 
Committee therefore requests that the U.S. Customs Service 
evaluate how the RAM will be utilized in the current fiscal 
year to undertake decisions pertaining to the allocation of 
Customs staff and resources, and to the extent the RAM is not 
used, what other criteria and factors are applied to such 
decisions, and report its findings to the Committee by November 
1, 2002.

                       PERSONAL SEARCH PRACTICES

    The primary mission of the Customs Service is to ensure 
that all goods and persons entering and exiting the United 
States do so in compliance with all United States laws and 
regulations, but in past years it was criticized for using 
procedures that appeared vulnerable to bias and ethnic 
stereotyping in the selection of passengers for personal 
searches at ports of entry. In response to those complaints, 
the Customs Service undertook numerous measures, including the 
appointment of an external review group, the Personal Search 
Review Commission, to reform some of its personal search 
practices. Customs properly seeks to balance these concerns 
with the bona fide law enforcement and homeland security needs 
that require it to winnow through the vast volume of people and 
goods it must oversee, and to identify those that may require 
special scrutiny. The Committee commends the Customs Service 
for its constant progress in reforming personal search 
practices, and encourages Customs to continue its efforts to 
improve. In order to keep the Committee informed of the 
progress of this effort, the Committee directs Customs to 
submit by November 1, 2002, an updated report giving 
statistical information concerning the frequency of complaints 
about personal search abuses, including claims of racial 
profiling; Customs' assessment of such claims; and any new 
policies or procedure that have been or are being implemented 
by Customs.

    STRENGTHENED ENFORCEMENT OF U.S. TRADE LAWS PERTAINING TO STEEL

    The Committee supports Customs in its enforcement of U.S. 
trade laws, to include the President's steel 201 proclamation 
of March 5, 2002, and all antidumping and countervailing duty 
orders related to steel. The Committee also understands that 
Customs is responsible for enforcing and monitoring imports of 
wire rods and certain line pipe products that were previously 
covered by a 201 remedy decision. The Committee is aware that 
Customs personnel assigned to enforce antidumping and 
countervailing duty orders, including import specialists, 
inspectors and agents, have been increasingly burdened, and 
many have been reassigned to meet homeland security priorities. 
The steel industry has informed the Committee that Customs 
would have to dedicate as many as 30 additional positions to 
fully enforce this set of trade laws, and the Committee 
understands that there are serious deficiencies in the level of 
training and specialized knowledge of Customs inspectors and 
import specialists who deal with steel tariff matters. The 
Committee therefore provides $2,500,000 to permit Customs, 
working with the steel manufacturing and trading community, to 
identify and apply the resources and training required to carry 
out these responsibilities. Such efforts may include utilizing 
steel industry experts through a series of national training 
seminars, which could be made available to members of the trade 
and brokerage community who play a key role in classifying 
imported goods for Customs processing. The funding may also be 
used to assign more import specialists, inspectors, or agents 
to steel trade enforcement. The Committee recommends that new 
steel import specialists be assigned to ports with the greatest 
volume of steel imports. The Committee therefore directs 
Customs to report not later than March 31, 2003, describing the 
steps it has taken to improve overall training for steel tariff 
implementation, enforcement efforts and manpower, including 
data on the types and value of illegal imports seized and the 
penalties awarded.

                    OKLAHOMA CITY FOREIGN TRADE ZONE

    The Committee is aware that the U.S. Customs Service, 
beginning during Summer 2002, will inspect shipments of exotic 
flowers imported from Ecuador into the foreign trade zone in 
Oklahoma City. The Committee encourages Customs as it seeks to 
meet demands for processing expanding trade, particularly such 
trade that will provide benefits to both U.S. business and 
consumers, as well as open new opportunities for struggling 
economies in the Andean region. Now that it has been 
established, the Committee expects that Customs will adequately 
plan for the administrative and resource requirements needed to 
support this trade route, and will establish necessary formal 
agreements with the City of Oklahoma City and the Oklahoma City 
foreign trade zone.

                     CONTAINER SECURITY INITIATIVE

    The Customs Service has initiated its Container Security 
Initiative (CSI) in three Canadian ports (Vancouver, Montreal, 
and Halifax) to permit cargo destined for the United States to 
be pre-screened. Customs has informed the Committee of its plan 
to expand this program to 20 foreign ``mega-ports'', beginning 
with one European and one Asian port. This will entail staffing 
at each site, as well as investments in non-intrusive 
inspection technology or networking technology.
    This initiative will also require a data system that 
permits the transfer of container images, other sensor data, 
and relevant manifest data from foreign seaports of origin to 
Customs offices at the U.S. port of destination and to the 
Customs container management center. The Committee would expect 
this network to be linked with the Treasury Secure Data 
Network, and to be capable of processing and sharing similar 
domestic data as well. The Committee directs Customs to report 
not later than September 30, 2002 on its plans for developing 
and implementing such a network in conjunction with the CSI.

                  NON-INTRUSIVE INSPECTION TECHNOLOGY

    The Administration's request includes $45,700,000 in new 
investments in non-intrusive inspection and other security 
technology, in addition to annualizing costs for investments 
made in fiscal year 2002 for land and sea ports in partial 
response to major gaps in capability identified after September 
11th. The Committee includes an additional $2,000,000 for these 
efforts, which may be used for technology acquisition and 
support of related research and development. The Committee 
strongly encourages the Customs Service to maintain its policy 
of seeking to apply the most advanced and cost-effective 
technology possible, and build into its planning a life-cycle 
approach to replacing and upgrading such capability to meet 
ever-increasing needs for greater performance. In general, the 
Committee requests that Customs regularly review technologies 
that might have applications to Customs' inspection needs, and 
evaluate the value for Customs' mission that might be offered 
by technology such as computed tomography (CT) technology, 
which is being employed for airport security by the 
Transportation Security Administration (TSA).

                   PULSED FAST NEUTRON ANALYSIS TEST

    The Committee is aware that the field test funded in fiscal 
year 2002 of the pulsed fast neutron analysis (PFNA) is 
underway, and expects to receive the full results of the field 
test at the Ysleta border crossing by May 31, 2003. The test 
results should include a comparison of PFNA to current x-ray 
based technologies in terms of probability of detection and 
probability of false alarm of various cargoes including 
explosives, narcotics, and chemical agents. The Committee looks 
forward to seeing the results of that test and its possible 
impact on future technology investment.

                INTELLECTUAL PROPERTY RIGHTS ENFORCEMENT

    As requested by the Administration, the Committee includes 
funding for the continued operation of the Intellectual 
Property Rights (IPR) Center, which received $5,000,000 in 
fiscal year 2002, as well as to annualize the costs of 13 
additional full-time equivalent positions. It also continues 
$4,370,000 for the Cyber Smuggling Center (CSC). The Committee 
expects to see the Customs Service enhance the operations of 
the CSC and the IPR Center to combat intellectual property 
rights violations, and to support law enforcement training of 
host country officials by foreign Customs attaches. The 
Committee encourages the IPR Center to use a portion of its 
funds to establish a clearinghouse for intellectual property 
rights information gathered from other federal as well as State 
and local agencies.

                 WEST COAST SECURED CORRIDOR INITIATIVE

    The Committee is aware of efforts by the International 
Mobility and Trade Corridor (IMTC) Project, funded through the 
Department of Transportation, to develop a border-to-border 
security system that is harmonized, in terms of cargo clearance 
and transportation planning, and that will ensure 
interoperability of Customs and other regulatory protocols for 
transport between Mexico, the United States, and Canada. The 
Committee strongly supports collaborative efforts between 
federal and State governments that can facilitate both security 
and the smooth flow of commerce along our borders. The Customs 
Service should evaluate the benefits of ensuring that 
development and deployment of the Automated Commercial 
Environment (ACE) and International Trade Data Systems (ITDS) 
takes into account the efforts of the IMTC to ensure homeland 
security and secured mobility of goods and people along the 
West Coast.

            SENSOR TECHNOLOGIES FOR HOMELAND BORDER SECURITY

    The Committee believes that multilevel, value-added 
detection and reaction technologies can leverage our border 
security agencies' finite resources for countering terrorist's 
attempts to transit America's borders while still facilitating 
the effective flow of trade and passengers into the United 
States. In this regard, the Committee views the Customs 
Service's planned field-testing of the Pulsed Fast Neutron 
Analysis as a positive step. The Committee is aware of 
initiatives, such as at Oklahoma State University's Bio-
Terrorism Defense and Advanced Sensor Research initiative, to 
produce sensor related devices to meet the immediate needs of 
homeland border security, while at the same time engaging in 
longer term research activities to provide the next generation 
of improved and more cost effective approaches to the 
detection, prevention and response to terrorism. The Committee 
strongly encourages border security agencies, such as the 
Customs Service and other agencies identified by the Office of 
Homeland Security, in conjunction with existing federal 
entities that specialize in technology development and 
adaptation such as the Technical Support Working Group, to 
consider testing, and, if appropriate, acquiring sensing and 
reaction technologies such as those available from the Bio-
Terrorism Defense and Advanced Sensor Research initiative and 
other research and development centers.

                     INTERNATIONAL AIRPORT STAFFING

    The Committee directs the U.S. Customs Service to work 
closely with international airport authorities and the trade 
community to ensure that Customs will meet the optimal staffing 
requirements at international airports in the United States. 
The Committee recommends that the U.S. Customs Service evaluate 
the feasibility of providing additional resources and staffing 
to include increased inspection services at Miami International 
Airport, Opa-Locka Airport, Louisville International Airport, 
Detroit Metropolitan Wayne County Airport, Toledo Express 
Airport, Sacramento International Airport, and Tri-Cities 
Regional Airport, Tennessee.

           AUTOMATED MANIFEST SYSTEM/AUTOMATED EXPORT SYSTEM

    The Automated Manifest System (AMS) is a multi-modular 
cargo inventory control and release notification system for 
sea, air, and rail carriers. AMS speeds the flow of cargo and 
entry processing and provides participants with electronic 
authorization to move cargo prior to arrival. AMS reduces 
reliance on paper documents and speeds the processing of 
manifest and waybill data. The Automated Export System (AES) is 
the electronic way to file the Shipper's Export Declaration 
(SED) and the ocean manifest information directly with U.S. 
Customs. Non-vessel-operating common carriers (NVOCCs) are 
transportation intermediaries that provide services for 
importers and exporters by acting as common carriers to 
shippers.
    The Committee understands that both the AMS and the AES 
will be subsumed within later phases of Customs Automation 
Modernization project, which is beginning with the Automated 
Commercial Environment (ACE). To the extent compatible with 
that plan, the Committee requests that the U.S. Customs Service 
explore the feasibility of allowing NVOCCs to transmit cargo 
data directly to Customs via the Automated Manifest System. The 
Committee also encourages the facilitated design and 
implementation of the Customs AES transport module.

                       CRAWFISH TARIFF COLLECTION

    The Committee is very concerned with the status of tariffs 
and duties assessed on crawfish imported into the United 
States, which are currently scheduled to expire in September, 
2003. The U.S. Customs Service is therefore directed to begin, 
using funds currently available, vigorous and active 
enforcement of the tariff. Additionally, the U.S. Customs 
Service shall, not later than April 30, 2003, issue to the 
Committee and make publicly available a comprehensive report 
detailing their efforts to enforce and collect this duty.

                      AGRICULTURAL TRADE RESEARCH

    The volume of trade along the Southwest Border has 
increased dramatically in the last decade as a result of a 
number of free trade agreements. The Committee recognizes the 
importance of this growth in trade, and provides the sum of 
$500,000 to conduct research on the bilateral trade of 
agricultural commodities and products. The research shall be 
conducted at New Mexico State University.

                   Harbor Maintenance Fee Collection





Appropriation, fiscal year 2002 to date...............        $3,000,000
Budget estimate, fiscal year 2003.....................         3,000,000
Recommended in the bill...............................         3,000,000
Bill compared with:
    Appropriation, fiscal year 2002...................  ................
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

    The Harbor Maintenance Fee is established to provide 
resources to the Army Corps of Engineers for the improvement of 
American channels and harbors. It is assessed on the value of 
commercial imports and exports delivered to or from certain 
specified ports. The fee is collected by the U.S. Customs 
Service and deposited into the Harbor Maintenance Trust Fund.

                             RECOMMENDATION

    The Committee recommends an appropriation of $3,000,000, 
the same as the fiscal year 2002 appropriation and the amount 
requested by the President.

  Operation, Maintenance and Procurement, Air and Marine Interdiction 
                                Programs





Appropriation, fiscal year 2002 to date...............      $184,560,000
Budget estimate, fiscal year 2003.....................       170,829,000
Recommended in the bill...............................       190,000,000
Bill compared with:
    Appropriation, fiscal year 2002...................        +5,440,000
    Budget Estimate, fiscal year 2003.................       +19,171,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $190,000,000 
for Operations, Maintenance and Procurement, Air and Marine 
Interdiction Programs, an increase of $5,440,000 above the 
fiscal year 2002 enacted level and $19,171,000 above the 
President's request. The increase above the President's request 
includes $10,000,000 to support investments in the Customs 
training and standardization branch, as well as $9,171,000 for 
systems acquisition and support.

      AIR AND MARINE PROGRAM MODERNIZATION AND ORGANIZATION REVIEW

    The Committee is aware that Customs is conducting a 
thorough review of the missions, operations, structure, and 
resources for the Air and Marine Interdiction Division (AMID). 
As Customs conducts this review, the Committee strongly urges 
it to take full account of the impact of its various missions 
in order to assess the totality of its needs and thereby 
achieve an optimal level of readiness and operational 
effectiveness. Particular attention should be paid to 
organization, infrastructure, aircraft, vessels, equipment, 
staffing and funding. In addition, the Committee expects 
Customs to make the most effective use of existing resources to 
carry out its missions. The Committee directs Customs to submit 
the findings of its review upon its completion, but in any 
event not later than January 1, 2003.
    The fiscal year 2002 appropriation included $35,000,000 for 
modernization in support of Western Hemisphere Drug Elimination 
Act (WHDEA). This level is continued in the request and the 
Committee recommendation. The Committee provides an additional 
$9,171,000 that may be used for system acquisition and support. 
The Committee expects plans for use of this funding to be 
detailed as part of the modernization plan, and included in the 
above mentioned report.

                      TRAINING AND STANDARDIZATION

    The Committee regards the training performed by the 
Training and Standardization branch as essential to Customs' 
effectiveness in the homeland security mission, as well as in 
meeting the rigorous challenges and risks of its interdiction 
and investigative support missions. Customs has testified that 
all Customs pilots are trained at the branch, and that it is in 
the process of filling staffing vacancies there. To ensure that 
the branch has the resources needed for training systems, 
aircraft, equipment and software, an additional $10,000,000 is 
provided.

                     INTERDICTION RADAR COMPLETION

    The Air and Marine Interdiction Coordination Center (AMICC) 
is responsible for interdiction of all domestic aviation 
smuggling, and is also charged to sort all incoming aircraft to 
determine their legal status. Following the September 11th 
attacks this mission has become more critical. In addition to 
receiving Federal Aviation Administration (FAA) data and data 
from the Tethered Aerostat Radar System (TARS), the Committee 
understands that AMICC is preparing to acquire over 70 
additional radars from the Defense Department, and seeks 
software modifications to allow all FAA air traffic control 
radars to provide AMICC with border-to-border coverage for 
United States airspace security. The Committee understands that 
AMICC requires $6,600,000 to accomplish design, software 
engineering and procurement of four new servers and 50 
workstations to implement this system, and urges Customs to 
give this requirement priority.

                       AIR PROGRAM MODERNIZATION

    The Committee recognizes that replacement or other 
modernization of Customs air assets is expensive, and needs to 
be done in the context of an orderly program to assess 
necessary platforms, based on mission and operational 
requirements, and include in such planning the expected 
operating and maintenance costs. As part of its comprehensive 
review of the air and marine program, the Committee expects 
Customs to carefully evaluate the impact of maintenance 
contracts on meeting mission needs, and how the form such 
contracts take affects such goals: maximizing availability of 
aircraft and marine vessels for operations; rationalizing time 
and logistics required for system maintenance and support; and 
achieving cost effectiveness. The Committee expects this issue 
to be addressed in the findings of the review that are to be 
submitted to the Committee by January 1, 2003.
    In the course of preparing the report described above, the 
Committee also requests that the Customs Service describe how 
its modernization plan will address (1) implementing airborne 
law enforcement surveillance and support capabilities along the 
Northern Border, including development of an enhanced tactical 
data link and display capability to permit necessary security 
gap analysis as well as command and control; (2) acquiring 
platforms for Northern Border Surveillance Aircraft (NBSA) for 
which Customs has identified a need; (3) replacing or modifying 
the existing Citation II aircraft fleet, as part of its planned 
interceptor fleet modernization program; (4) meeting its 
requirement for light enforcement helicopters to be stationed 
at air branches across the country; and (5) meeting its long-
term need for medium-lift helicopters.

         SURVEILLANCE BRANCH OPERATIONS AND MAINTENANCE SUPPORT

    The Committee is aware of the potential for cost savings 
from modifying existing maintenance and logistics processes for 
Customs' P-3 fleet, and that new procedures and systems have 
been developed and implemented by the original equipment 
manufacturer (OEM) for Customs' P-3 aircraft that would 
increase aircraft availability and readiness while reducing 
operating costs. Based on this, the Committee urges Customs to 
conduct a six-month study, estimated to cost $1,800,000, to 
document the maintenance and logistic changes needed to reduce 
P-3 operating costs and increase aircraft readiness, 
availability and safety.

                        MARITIME SUPPORT VESSELS

    As with the air program, upgrading and modernizing the 
maritime capability of the Customs Service will call for 
significant resources, but is also a critical component of 
Customs' border enforcement mission. The Committee encourages 
the Customs Service to consider the possible need and 
applications of mobile support vessels, which might be used to 
provide the Customs Service with long-term offshore 
interdiction capability.

                    ELECTRO-OPTICAL/INFRARED SENSORS

    The Committee included $4,200,000 in the fiscal year 2002 
appropriation to permit upgrades to electro-optical/infrared 
(EO/IR) sensors for airborne and maritime platforms. The 
Committee is also aware that release of funding for Mobile 
Support Vessels was delayed until the last quarter of the 
fiscal year. In the meantime, the impact of the September 11th 
attacks has raised the urgency of modernizing Customs' aircraft 
and maritime platforms. At this time, fewer than half of 
Customs' 125 aircraft and 100 maritime vessels (including 
interceptor vessels) can be equipped, and currently the 
maritime platforms lack modern EO/IR systems. This technology 
is critical to providing standoff surveillance and intelligence 
information and would allow Customs to both detect smugglers 
and potential threats, as well as maintain its ability to 
conduct covert surveillance. It would also have significant 
benefits in terms of operator safety under conditions of 
reduced visibility. The Committee strongly supports Customs 
acquiring this capability, and urges Customs to look to funding 
this from the additional funds provided by the Committee.

                        Automation Modernization





Appropriation, fiscal year 2002 to date...............      $427,832,000
Budget estimate, fiscal year 2003.....................       435,332,000
Recommended in the bill...............................       439,332,000
Bill compared with:
    Appropriation, fiscal year 2002...................       +11,500,000
    Budget Estimate, fiscal year 2003.................        +4,000,000


                                MISSION

    The Automation Modernization account includes funding for 
major information technology projects for the Customs Service. 
Projects included in this request are the planned Automated 
Commercial Environment (ACE) system and the existing Automated 
Commercial System (ACS). Included in the funding for ACE 
development is the International Trade Data System (ITDS), 
which is being developed as a component of ACE.

                             RECOMMENDATION

    The Committee recommends an appropriation of $439,332,000 
for Automation Modernization, an increase of $11,500,000 above 
the fiscal year 2002 enacted level and $4,000,000 above the 
President's request. This funding includes $316,900,000 for the 
Automated Commercial Environment, reflecting the integration of 
the International Trade Data System (ITDS), and $5,400,000 
associated with its development, within the ACE program.

                 AUTOMATED COMMERCIAL ENVIRONMENT (ACE)

    The Committee supports completion of the Customs Automation 
program as quickly as feasible, consistent with the need to 
ensure the highest quality and most cost effective system that 
can be designed and acquired, and utilizing an incremental 
investment approach that requires fully identifying costs and 
benefits for each release of funding for the project. The 
Automated Commercial Environment (ACE) is the first and largest 
component of this process, and will be followed by 
modernization of other central Customs business areas, 
including enforcement, outbound and passenger processing, 
financial and personnel systems. In the case of ACE, the 
importance of developing this system first and as quickly as 
possible has been underscored by the need to cope with the huge 
and rapidly growing flow of trade, and the need to help Customs 
move from antiquated, legacy systems to a new information 
system that exploits modern communications and IT capabilities. 
The Customs Service has stated its intent to develop ACE within 
a four-year period, and the Committee supports that goal.
    The importance of this system has been intensified by the 
urgency of improving our homeland security. The central role 
played by the US Customs Service in its border enforcement 
mission requires that ACE be the linchpin of border information 
systems. The Committee recognizes that Customs has established 
relationships with key partners in the federal government in 
developing the characteristics of ACE, and these agencies 
include the Immigration and Naturalization Service (Justice), 
the Animal and Plant Health Inspection Service (Agriculture), 
the Federal Motor Carrier Safety Administration 
(Transportation) and the Center for Food Safety and Applied 
Nutrition (FDA). Furthermore, agencies participating in the 
ITDS program come from eleven cabinet departments and numerous 
independent agencies. The Committee strongly supports the ACE 
program, and therefore provides an additional $4,000,000 to 
support its development as a key homeland security effort, and 
the core of federal border-related information systems.

                    Bureau of Engraving and Printing


----------------------------------------------------------------------------------------------------------------
                                                                                       2002            2003
                                                                  2001  (actual)    (estimate)      (estimate)
----------------------------------------------------------------------------------------------------------------
Total revenue...................................................    $391,000,000    $424,000,000    $517,000,000
    Revenue from currency.......................................     327,000,000     370,000,000     465,000,000
    Revenue from stamps.........................................      51,000,000      45,000,000      34,000,000
    Other revenue...............................................      13,000,000       9,000,000       6,000,000
Cost of operations..............................................     436,000,000     453,000,000     525,000,000
Net revenue * (to Treasury).....................................     -45,000,000     -29,000,000     -8,000,000
----------------------------------------------------------------------------------------------------------------
* Capital investments will be less than depreciation, a non-cash expense, in each of these years. In order to
  avoid accumulating working capital in excess of Bureau needs, the Bureau will set currency prices at a level
  that will result in an annual loss (on paper). This loss will not exceed the depreciation expense, ensuring
  the solvency of the Bureau's revolving fund.

                                MISSION

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

                 TERRORISM AND CURRENCY COUNTERFEITING

    The Committee is concerned about possible links between 
terrorism and currency counterfeiting, particularly since a 
substantial degree of counterfeiting of U.S. currency takes 
place overseas. The Committee encourages the Treasury 
Department to consider, for future currency changes, the best 
available anti-counterfeiting technology and security devices 
for currency, including such features as optically variable 
devices, alternative substrates, distinctive fibers, high-
technology inks, and new offset printing techniques.

                           United States Mint


----------------------------------------------------------------------------------------------------------------
                                          Circulating coins         Numismatic coins            Protection
----------------------------------------------------------------------------------------------------------------
2001 (actual):
    Number of coins..................  17.7 billion...........  5.6 billion.
    Cost of operations...............  $259 million...........  $658 million...........  $30 million.
    Revenue..........................  $639 million...........  $1,785 million.
    Net revenue (to Treasury)........  $380 million...........  $1,127 million.........  ($30 million).
2002 (estimate):
    Number of coins..................  12.2 billion...........  3.7 billion.
    Cost of operations...............  $198 million...........  $596 million...........  $28 million.
    Revenue..........................  $435 million...........  $1,321 million.
    Net revenue (to Treasury)........  $237 million...........  $725 million...........  ($28 million).
2003 (estimate):
    Number of coins..................  14.5 billion...........  4.4 billion.
    Cost of operations...............  $215 million...........  $628 million...........  $29 million.
    Revenue..........................  $514 million...........  $1,511 million.
    Net revenue (to Treasury)........  $299 million...........  $882 million...........  ($29 million).
----------------------------------------------------------------------------------------------------------------

                                MISSION

    The United States Mint manufactures coins, receives 
deposits of gold and silver bullion, and safeguards the 
Government's holdings of monetary metals. For fiscal year 1997, 
Congress established the United States Mint Public Enterprise 
Fund (Public Law 104-52) which authorized the U.S. Mint to use 
proceeds from the sale of coins to finance the costs of its 
operations and which consolidated all existing Mint accounts 
into a single fund. Public Law 104-52 also provides that, in 
certain situations, the levels of capital investments for 
circulating coins and protective services factor into the 
decisions of the Congress such that those levels compete with 
other requirements for funding.

                             RECOMMENDATION

    The Committee recommends a spending level for capital 
investments by the U.S. Mint for circulating coinage and 
protective services of $34,900,000, a decrease of $8,100,000 
below the fiscal year 2002 spending level and the same as the 
level included in the President's request.

                        MANAGEMENT FLEXIBILITIES

    In fiscal year 1997, this Committee helped establish the 
United States Mint Public Enterprise Fund. The legislation 
included in Public Law 104-52 provided the Mint with an 
unprecedented degree of flexibility in managing its mission and 
functions. The Committee believed at the time, and still 
believes, that the manufacturing operations of the Mint are 
dramatically improved by allowing the Mint the managerial 
flexibility it needs to respond quickly and efficiently to 
changes in coinage demand. However, it was not and is not the 
intent or desire of the Committee that the Mint should use 
these management flexibilities for the sole purpose of avoiding 
Federal law and regulations regarding non-manufacturing and 
non-mission activities involved with the procurement of 
administrative support services, information technology 
contracts, real estate transactions, and marketing and 
advertising.
    Specific items of serious concern to the Committee include 
the extensive use of the Mint's procurement exemption to 
circumvent requirements of the Federal Acquisition Streamlining 
Act of 1994, the Clinger-Cohen Act of 1996, and other 
procurement rules contained in the Federal Acquisition 
Regulation. The Treasury's Inspector General recently 
determined that poor planning and careless management resulted 
in significant unused and expensive office space in the Mint's 
headquarters in Washington, D.C. The marketing plans of the 
Mint for the new one-dollar coin and the 50-State quarter 
program have raised significant questions with the Committee 
and are premature given the studies underway by the General 
Accounting Office.
    Perhaps most troubling has been the Mint's apparent 
willingness in past years to inappropriately compete with free 
enterprise activities in the private sector. The Mint has a 
legislated monopoly on the production of all official 
government coinage. The Committee realizes that the Mint feels 
it is in direct competition with the private sector collectible 
industry with respect to numismatic commemorative coins. The 
Committee appreciates the vigilance with which the Mint asserts 
the Federal government's clear prerogatives with respect to 
coinage and potential commercial misrepresentations. However, 
since only the Mint is allowed by law to coin money, the 
Committee firmly believes that the Mint should refrain from any 
actions that are counter-productive to free enterprise and 
competition, including sole-source contracts. In this regard, 
the Committee has serious questions regarding Mint offerings of 
and exclusive marketing agreements for jewelry, other country's 
coinage, and commercially-available products.
    The Committee is aware that many of its concerns extend 
back over a number of years and that the Mint now has new 
leadership. The Committee is encouraged by some of the actions 
that recently have been taken to improve the management of the 
Mint and establish the proper tone. The Committee looks to the 
current Mint leadership, with the strong assistance of the 
Department of the Treasury and the Office of Management and 
Budget, to greatly improve the management of the Mint.

                       Bureau of the Public Debt


                     ADMINISTERING THE PUBLIC DEBT




Appropriation, fiscal year 2002 to date...............      $186,953,000
Budget estimate, fiscal year 2003.....................       191,119,000
Recommended in the bill...............................       168,673,000
Bill compared with:
    Appropriation, fiscal year 2002...................       -18,280,000
    Budget Estimate, fiscal year 2003.................       -22,446,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $168,673,000 
for administering the public debt, a decrease of $18,280,000 
below the fiscal year 2002 enacted level and a decrease of 
$22,446,000 below the President's request. The decrease below 
the President's request is a $22,400,000 savings realized from 
a cessation in marketing savings securities and an additional 
reduction of $46,000 associated with the President's pending 
proposal to integrate the benefits and administrative costs of 
the Federal Employees' Compensation Act (FECA) which, to date, 
has not been enacted.

                             SAVINGS BONDS

    The Committee continues to have strong concerns regarding 
the utility, necessity, and relatively high administrative 
costs associated with the savings bond program. The information 
provided over the past year, including the exchange during and 
after a March 2002 hearing on the debt management activities of 
the Department of the Treasury, indicate that savings bonds are 
an incidental and inefficient way for the government to raise 
money. The savings bond program finances only 3 percent of the 
total public debt but consumes more than 70 percent of the 
workforce and funding of the Bureau of the Public Debt. The 
government can easily raise the capital it needs to finance its 
operations through the marketable securities program. In 
addition, other forms of safe investment opportunities exist 
for the public. Individual savings deposits are insured and 
protected. Banking and financial institutions are federally 
regulated. Other types of private investments are safeguarded 
against improper procedures and criminal actions.
    As testimony established, the administrative costs of 
raising capital through savings bonds is 53 times higher than 
the costs of doing so through marketable securities. It is 
inherently more expensive to process a large number of very 
small transactions (savings bonds) than a comparatively small 
number of large transactions. The enormous cost difference is 
increased by the need to process and service paper-based bonds 
rather than electronic transactions as is done with marketable 
securities. In this regard, the per-transaction costs for the 
debt managed by the Bureau of the Public Debt remain 
prohibitively and unjustifiably expensive. Some may argue that 
savings bonds may satisfy an existing public need. However, 
other secure and federally insured savings options exist. In 
any event, savings bonds do not require promotion. The added 
costs of promoting these bonds merely increases the higher 
administrative costs of processing these bonds rather than 
wider use of the more marketable securities. However, the 
Committee recognizes that there are continuing expenses in 
processing and servicing already-issued bonds.
    The Committee, therefore, has reduced the amount provided 
for the Bureau of the Public Debt to remove the level of funds 
requested for marketing savings bonds, $22,400,000. This 
reduction should have no effect on current arrangements, such 
as payroll purchases, other issuing activities, or the 
servicing and redeeming of existing savings bonds. The 
reduction is aimed at stopping the growth of unjustifiable 
expenses.
    The Committee directs the Bureau and the Department to 
develop plans for further reducing the funding requirements of 
the savings bond program and eventually discontinue the costly 
practice of issuing paper copies of small-denomination 
certificates.

                        Internal Revenue Service

    The Committee recognizes the role of the Internal Revenue 
Service (IRS) Oversight Board in reviewing the annual budget 
request of the IRS. The Committee appreciates its analysis of 
the IRS budget and looks forward to strengthening its working 
relationship with the Board. The Committee urges the Secretary 
of the Treasury to consider the recommendations of the Board 
during future deliberations on the IRS budget. One of the most 
critical responsibilities of the Board is assisting the 
Administration in locating and selecting a new Commissioner of 
the IRS; the Committee appreciates the importance and 
difficulty of this task, particularly given the exemplary 
management style and substance of the current Commissioner.

                               COMPLIANCE

    The Committee remains very concerned about the decline in 
IRS compliance actions and the degree to which IRS compliance 
resources are appropriately allocated to meet the most pressing 
needs. Taxpayer error rates have been estimated to run at 
approximately 15 percent of all returns filed with the IRS. The 
IRS recently testified that the amount of revenue lost due to 
tax errors and fraud is about $250 billion a year.
    These losses occur at both ends of the financial spectrum. 
In May of this year, the General Accounting Office (GAO) cited 
estimates by the IRS which indicated that between $20 and $40 
billion of revenues was lost annually due to offshore ``tax 
schemes'' by individuals. In 1997 the GAO stated that 
unreported business sources alone resulted in annual losses of 
$40 billion. Several recent events demonstrate significant 
cause for concern about the accounting practices of some major 
corporations, and the potential understatement and underpayment 
of their tax liabilities.
    The IRS itself recently reported that at least $8.5 billion 
in Earned Income Tax Credit (EITC) claims were erroneous or 
fraudulent, with that amount comprising 27 percent to 31.7 
percent of the amounts listed, compared to 23.8 percent to 25.6 
percent of the amounts issued according to the IRS report of 
two years earlier, although the IRS could not determine with 
any certainty (due to sampling error and changes in 
methodology) that an actual increase in the overpayment rate 
occurred and cautioned that methodological and procedural 
differences between the two studies may explain some or all of 
the difference in the percentages. The IRS also reported that 
while overall filing of EITC returns declined from 1997 to 1999 
by 1.1 million returns, the amount of erroneous or fraudulent 
claims increased by between $378 and $2.382 billion. The amount 
unclaimed by eligible filers also increased, by between $66 
million and $139 million. It is clear that errors and fraud are 
occurring at high rates, cutting across all types of returns 
and socioeconomic levels, without adequate responsiveness to 
current IRS approaches to increasing compliance.
    This appropriations measure funds two IRS compliance 
accounts, the Tax Law Enforcement and the Earned Income Tax 
Credit Compliance programs. The Committee provides funding for 
these accounts at the levels requested by the President, 
$3,729,072,000 and $146,000,000, respectively. The Committee 
directs the IRS to apply these resources in the most efficient 
and effective way possible to strengthen voluntary compliance 
while reducing tax cheating, tax fraud, tax scams, and other 
non-compliance problems among all population segments.
    The compliance concerns of the Committee are not new. In 
the report that accompanied the House appropriations bill for 
fiscal year 2002 (H.R. 107-152), the Committee directed the IRS 
to provide two detailed studies. The first was on audit rates 
and audit fairness; the second was on the effectiveness of the 
Earned Income Tax Credit Compliance program. The report on 
audit rates and audit fairness was extremely late reaching 
Congress; it was due in the middle of March and was not 
received until the end of June. Such delays are not acceptable; 
the Committee must receive the information it needs to make 
difficult, critical, and timely funding decisions about federal 
programs. The Nation's taxpayers are ill served by these 
delays, the Committee directs the Administration to improve its 
delivery of information to the Congress.
    The tardy report on tax compliance activities provided data 
on a range of IRS examination functions but raises more 
questions than it provides answers. Technological and process 
changes over the past five years make data comparisons 
difficult. Furthermore, the IRS states that it is difficult to 
determine the ``optimum'' examination rate for any population 
segment and feels that all examination rates are probably below 
optimal levels, causing all law-abiding taxpayers to bear more 
than their fair share of the tax burden. The data can be 
interpreted to suggest that more complicated tax returns 
receive IRS scrutiny than do simple returns and to question the 
fairness of IRS examination practices. The Committee is 
concerned by this conclusion and is interested in the IRS 
achieving balance in its compliance efforts across all 
socioeconomic levels. Specifically, the Committee considers it 
important to reduce errors and fraud in all tax returns 
involving all parts of the tax code but particularly those 
types of returns that have historically had high noncompliance 
rates. It has been argued by the IRS, GAO and others that 
corporate and partnership income are areas in which the highest 
noncompliance rates occur each year. Part of the IRS response 
to the issue of compliance fairness is to initiate a national 
research program (NRP) to assess and measure taxpayer 
compliance through random, statistically valid examinations of 
tax returns. The Committee, while understanding the premise and 
utility of these examinations, cautions the IRS to ensure that 
all of its related actions are as unobtrusive as possible to 
safeguard against undue and unnecessary burdens placed on law-
abiding taxpayers. The Committee encourages the IRS to continue 
its efforts, such as the NRP, to ensure tax system fairness. 
However, the Committee understands that the NRP will take 
several years to complete and, for example, will not consider 
corporate and partnership returns as part of its review until 
2005. This is far too long to wait for filing, payment and 
compliance data from categories that historically have among 
the highest rates of noncompliance. The Committee directs the 
IRS within 90 days of the enactment of this Act to provide a 
new report on IRS tax compliance activities that updates the 
data of the current report, expands the analysis of the 
fairness with which IRS compliance efforts are being 
implemented, provides a detailed status (including a budget) of 
the NRP, and identifies the resources necessary to accelerate 
the NRP in order to more quickly obtain critical information on 
all categories of tax filers. This should include a multi-year 
analysis of the extent to which categories of problem filers 
generate recurring or repetitive problematic tax returns.
    The second report focused exclusively on EITC compliance 
activities. The Committee notes that the IRS has been working 
diligently to make the credit more efficient and is examining 
ways to improve the accuracy of the credit while reducing its 
complexity. The Committee also understands that other EITC 
reforms that would further reduce error rates are being 
prepared or have been proposed. Nevertheless, the IRS still 
reports that a large percentage of EITC filings contain errors 
or are fraudulent, costing the American taxpayers at least $8.5 
billion yearly. This compares with almost $2 billion that the 
IRS estimates are due to taxpayers eligible for the credit who 
do not claim it. The Committee notes that only those eligible 
for the credit received it, the bottom-line revenues of the 
Treasury would increase by $6 billion. The Committee directs 
the IRS to be diligent in its efforts to improve its 
administration of the credit and regards as a positive action 
the recently convened Treasury and IRS Task Force that brings 
together high level personnel to address EITC problems and 
determine potential legislation and process and procedural 
changes that would improve the administration of the credit. 
The Committee also directs the IRS within 90 days of the 
enactment of this Act to provide a new report on its EITC 
compliance activities that updates the data of the current 
report, expands the analysis of the effectiveness of EITC 
compliance efforts, and provides a detailed summary of the 
activities and findings of the Treasury and IRS Task Force.

                 Processing, Assistance and Management





Appropriation, fiscal year 2002 enacted to date.......    $3,810,880,000
Budget estimate, fiscal year 2003.....................     3,958,337,000
Recommended in the bill...............................     3,955,777,000
Bill compared with:
    Appropriation, fiscal year 2002...................      +144,897,000
    Budget Estimate, fiscal year 2003.................        -2,560,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $3,955,777,000 
for Processing, Assistance, and Management, an increase of 
$144,897,000 above the fiscal year 2002 enacted level and a 
decrease of $2,560,000 below the President's request. The 
reduction below the President's request is associated with the 
President's pending proposal to integrate the benefits and 
administrative costs of the Federal Employees' Compensation Act 
which, to date, has not been enacted. The appropriation 
includes $9,000,000 in support of low-income tax clinics.

                         NO-COST EZ TAX FILING

    On October 3, 2000, the Committee held a hearing on 
electronic tax administration that focused on IRS plans with 
respect to no- or low-cost digital filing of tax returns over 
the Internet. At that hearing, the IRS stated that it did not 
intend to enter into the tax preparation software business; 
instead, it intended to work in partnership with industry to 
expand the electronic filing of tax returns. The necessity of a 
partnership between the industry and the IRS was again 
emphasized in a statement released by the Department of the 
Treasury on January 30, 2002. In answers provided this Spring 
to questions for the record, the IRS echoed this commitment to 
work with industry and noted that IRS plans did not include tax 
preparation services. In addition, the IRS stated that it did 
not have the resources to build, implement, and maintain a free 
Internet tax preparation and filing option by itself. The 
Committee further notes that the IRS in its budget is seeking 
no such resources, nor has this Committee provided any. The 
Committee strongly believes in the industry-IRS partnership 
concept and directs the IRS to continue strengthening its ties 
with the private sector and computer software community as it 
moves forward in this endeavor.

                           EMPOWERMENT ZONES

    The Committee is aware that the Department of Housing and 
Urban Development (HUD) has designated certain urban and rural 
areas as HUD Empowerment Zones, which provide tax incentives to 
businesses located in the empowerment zones that employ local 
residents. The Committee understands that there is a lack of 
detailed guidance for the administration of the tax incentives, 
which has caused some confusion and delay for gaining 
investment in those areas. The Committee directs that the 
Department of Treasury and the IRS work with HUD and the 
Department of Commerce in determining how the tax incentives 
will be implemented and report the status of its efforts to 
this Committee by October 31, 2002. Additionally, the Committee 
directs that the IRS work more closely with Empowerment Zone 
local officials for ensuring that information about the tax 
incentives is readily available and understood by the local 
officials, the private sector investors that the Empowerment 
Zones are designed to attract, and other stakeholders.

                          Tax Law Enforcement





Appropriation, fiscal year 2002 enacted to date.......    $3,542,891,000
Budget estimate, fiscal year 2003.....................     3,729,072,000
Recommended in the bill...............................     3,729,072,000
Bill compared with:
    Appropriation, fiscal year 2002...................      +186,181,000
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $3,729,072,000 
for Tax Law Enforcement, an increase of $186,181,000 above the 
fiscal year 2002 enacted level and the same as the President's 
request. Within available funds, IRS is directed to spend 
$4,000,000 to contract for actuarial expertise and/or related 
computer software in a compliance effort to assist in audits 
involving tax reserves and other situations requiring actuarial 
expertise.
    The Committee is aware of a pressing issue involving the 
submittal of erroneous social security numbers to the IRS; the 
issue is of concern to many members and committees in Congress; 
the Committee encourages the IRS to continue working with 
industry, the Congress, and other pertinent groups of the 
Administration to resolve the issue and assist in the rapid 
identification of appropriate and valid social security numbers 
for tax purposes.

             Earned Income Tax Credit Compliance Initiative





Appropriation, fiscal year 2002 to date...............      $146,000,000
Budget estimate, fiscal year 2003.....................       146,000,000
Recommended in the bill...............................       146,000,000
Bill compared with:
    Appropriation, fiscal year 2002...................  ................
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $146,000,000 
for the Earned Income Tax Credit Compliance Initiative, the 
same as the fiscal year 2002 enacted level and the same as the 
President's request.

                          Information Systems





Appropriation, fiscal year 2002 to date...............    $1,579,240,000
Budget estimate, fiscal year 2003.....................     1,632,444,000
Recommended in the bill...............................     1,632,444,000
Bill compared with:
    Appropriation, fiscal year 2002...................       +53,204,000
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $1,632,444,000 
for Information Systems, an increase of $53,204,000 above the 
fiscal year 2002 enacted level and the same as the President's 
request. The Committee has been following the progress of the 
IRS to improve program management for its business systems 
modernization and directs the IRS to apply those same program 
management and capital planning principles to the systems 
development processes and projects funded in this account. The 
Committee is particularly concerned about the coordination of 
program management and modernization projects between the two 
accounts to ensure that the newly modernized projects 
successfully transition into the IRS operating environment.

                     Business Systems Modernization





Appropriation, fiscal year 2002 to date...............      $391,593,000
Budget estimate, fiscal year 2003.....................       450,000,000
Recommended in the bill...............................       436,000,000
Bill compared with:
    Appropriation, fiscal year 2002...................       +44,407,000
    Budget Estimate, fiscal year 2003.................       -14,000,000


                                MISSION

    This appropriation provides for funding of the PRIME 
Systems Integration Services Contractor to modernize the 
business systems of the Internal Revenue Service.

                             RECOMMENDATION

    The Committee recommends an appropriation of $436,000,000 
for Business Systems Modernization, an increase of $44,407,000 
above the fiscal year 2002 enacted level and a decrease of 
$14,000,000 below the President's request. The release of 
funding from this account is governed by the same statutory 
conditions that governed the funds appropriated into the 
Information Technology Investment account for fiscal year 2002.

          Administrative Provisions--Internal Revenue Service

    Section 101. The Committee continues the provision that 
allows the transfer of 5 percent of any appropriation made 
available to the IRS to any other IRS appropriation, subject to 
prior Congressional approval.
    Section 102. The Committee continues the provision that 
requires the IRS to maintain a training program in taxpayer's 
rights, dealing courteously with taxpayers, and cross cultural 
relations.
    Section 103. The Committee continues the provision that 
requires the IRS to institute policies and procedures, which 
will safeguard the confidentiality of taxpayer information.
    Section 104. The Committee continues the provision that 
makes funds available for improved facilities and increased 
manpower to provide sufficient and effective 1-800 help line 
service for taxpayers.

                      United States Secret Service


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............    $1,025,384,000
Budget estimate, fiscal year 2003.....................     1,010,435,000
Recommended in the bill...............................     1,017,892,000
Bill compared with:
    Appropriation, fiscal year 2002...................        -7,492,000
    Budget Estimate, fiscal year 2003.................        +7,457,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $1,017,892,000 
for the U.S. Secret Service, a decrease of $7,492,000 below the 
fiscal year 2002 enacted level and an increase of $7,457,000 
above the President's request. The change from the President's 
request includes an increase of $6,824,000 for non-pay 
inflation; $991,000 in additional support to the National 
Center for Missing and Exploited Children (including $300,000 
for Web-Wise Kids); and a reduction of $358,000 associated with 
the President's pending proposal to integrate the benefits and 
administrative costs of the Federal Employees' Compensation Act 
(FECA) which, to date, has not been enacted.

                           UNIFORMED DIVISION

    The Committee is aware that the Uniformed Division (UD) of 
the Secret Service is experiencing dramatic rates of attrition, 
with as many as twenty percent of the entire force leaving 
since January. While some of this is due to more attractive 
compensation with other law enforcement agencies, such as the 
newly formed Transportation Security Administration, this 
attrition is exacerbating the pressure on UD officers who have 
been experiencing significant and continuously high rates of 
overtime since September 11th. The Committee directs the Secret 
Service to report not later than September 30, 2002, on its 
proposals to address these problems, to include proposals for 
increased hiring or realignment of the force.

                    UNDER VEHICLE INSPECTION SYSTEM

    The Under Vehicle Inspection System (UVIS) was created 
through a joint cooperation program of the Secret Service and 
the Department of Transportation. It is a computer-controlled 
linear array of sensors placed at the security entrance of a 
facility or border designed to eliminate the necessity of 
having guards use mirrors to manually inspect the bottom of 
vehicles by creating digital imagery of the undercarriage of 
vehicles. The Committee recognizes that the Secret Service and 
the Customs Service have explored and reviewed the possible 
utilization of this technology, and requests that the Secret 
Service work with the Customs Service and other agencies with 
possible security or related needs to determine if there is a 
value in application of the UVIS to their various law 
enforcement and security missions, and directs the Secret 
Service to report by March 1, 2003, on its recommendations for 
the UVIS.

                        OVERSEAS COUNTERFEITING

    The Committee has been pleased to learn of the beneficial 
impact of Secret Service engagement in anti-counterfeiting 
efforts in Colombia under the auspices of Plan Colombia. Given 
the increasing risk of counterfeiting in the region, 
particularly with the adoption of the U.S. dollar as the 
principal form of monetary exchange in countries such as 
Ecuador, the Committee is concerned that there may need to be 
an increased presence of Secret Service agents stationed in the 
region. The Committee therefore directs the Secret Service to 
report by September 30, 2002 on its recommendations for 
staffing its foreign offices in the region to investigate and 
shut down such counterfeiting operations.

                 RETENTION AND REBALANCING OF WORKLOAD

    The Committee has been aware for several years that the 
Secret Service has been experiencing extremely high overtime 
for both its agents and uniformed officers, as high as 90 hours 
a month. As a result, the Secret Service is seeing unusually 
high rates of attrition, especially among its younger agents 
and officers, at a time when Secret Service responsibilities 
and workload are growing rapidly. In testimony for the record, 
the Committee was told that no additional funding was requested 
to fully fund the fiscal year 2003 estimated costs of the 
retention and rebalancing initiative begun in fiscal year 2000. 
However, the Committee has learned that $28,000,000 requested 
in fiscal year 2003 for overtime and travel costs, associated 
with increased protective detail coverage to be provided by 
existing staffing, may be available for reprogramming. The 
Committee directs the Secret Service and the Department of 
Treasury to give priority to fully funding the costs of the 
retention and rebalancing initiative, and will look favorably 
on any necessary reprogramming requests for that purpose.

     Acquisition, Construction, Improvements, and Related Expenses





Appropriation, fiscal year 2002 to date...............        $3,457,000
Budget estimate, fiscal year 2003.....................         3,519,000
Recommended in the bill...............................         3,519,000
Bill compared with:
      Appropriation, fiscal year 2002.................           +62,000
      Budget Estimate, fiscal year 2003...............  ................


                                MISSION

    This account supports the acquisition, construction, 
improvement, equipment, furnishing and related costs for 
maintenance and support of Secret Service facilities, including 
the Secret Service Headquarters Building and the Rowley 
Training Center.

                             RECOMMENDATION

    The Committee recommends an appropriation of $3,519,000 for 
Acquisition, Construction, Improvement and Related Expenses, an 
increase of $62,000 above the fiscal year 2002 enacted level 
and the same as the President's request.

             General Provisions--Department of the Treasury

    Section 110. The Committee continues the provision that 
requires the Secretary of the Treasury to comply with certain 
reprogramming guidelines when obligating or expending funds for 
law enforcement activities.
    Section 111. The Committee continues the provision that 
allows the Department of the Treasury to purchase uniforms, 
insurance, and motor vehicles without regard to the general 
purchase price limitation, and enter into contracts with the 
State Department for health and medical services for Treasury 
employees in overseas locations.
    Section 112. The Committee continues the provision that 
requires expenditures of funds so as not to diminish efforts 
under the Federal Alcohol Administration Act.
    Section 113. The Committee continues the provision that 
authorizes transfers, up to 2 percent, between law enforcement 
appropriations under certain circumstances.
    Section 114. The Committee continues the provision that 
authorizes transfers, up to 2 percent, between Departmental 
Offices, Office of the Inspector General, Financial Management 
Service, and the Bureau of the Public Debt appropriations under 
certain circumstances.
    Section 115. The Committee continues the provision that 
authorizes transfer, up to 2 percent, between the Internal 
Revenue Service and the Treasury Inspector General for Tax 
Administration under certain circumstances.
    Section 116. The Committee continues the provision that 
provides that no funds may be obligated for the purchase of law 
enforcement vehicles until the Secretary of the Treasury 
certifies that the purchase is consistent with Departmental 
vehicle management principles.
    Section 117. The Committee continues the provision that 
prohibits the Department of the Treasury from undertaking a 
redesign of the $1 Federal Reserve note.
    Section 118. The Committee continues the provision that 
provides for transfers from and reimbursements to the Salaries 
and Expenses appropriation of the Financial Management Service 
for the purposes of debt collection.
    Section 119. The Committee continues and modifies a 
provision that extends the pilot project for designated 
critical occupations for one additional year.
    Section 120. The Committee continues the provision that 
requires Congressional approval for the construction and 
operation of a museum by the United States Mint.
    Section 121. The Committee continues the provision that 
prohibits funds made available through this Act from being used 
for the production of Customs Declarations that do not inquire 
whether the passenger had been in the proximity of livestock.
    Section 122. The Committee includes a new provision that 
directs the Federal Law Enforcement Training Center to 
establish an accrediting body to set standards for measuring 
and assessing the quality and effectiveness of Federal law 
enforcement training.

                        TITLE II--POSTAL SERVICE


                   Payment to the Postal Service Fund





Appropriation, fiscal year 2002 to date...............      $596,093,000
Budget estimate, fiscal year 2003.....................        76,619,000
Recommended in the bill...............................        76,619,000
Bill compared with:
      Appropriation, fiscal year 2002.................      -519,474,000
      Budget Estimate, fiscal year 2003...............  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $76,619,000 in 
fiscal year 2003 for Payment to the Postal Service Fund, a 
decrease of $519,474,000 from amounts appropriated in fiscal 
year 2002 and the same as the amounts requested by the 
President. Of the funds provided for fiscal year 2003, the 
Committee includes $29,000,000 as reimbursement for prior year 
shortfalls due to insufficient appropriations and the rate 
phasing provisions of the Revenue Forgone Act of 1993. The 
balance of $47,619,000 of fiscal year 2003 funds reflects the 
advance appropriation for 2003 provided in the appropriations 
act for fiscal year 2002 for free mail for the blind and 
overseas voters. The Committee also recommends an advance 
appropriation of $48,999,000 for fiscal year 2004 for free mail 
for the blind and overseas voters; a reduction of $17,985,000 
is assumed as a reconciliation adjustment for differences 
between estimated free mail volumes and final audited volumes 
for fiscal year 2000. The final net appropriation of 
$31,014,000 is made available on October 1, 2003.

                TRANSFORMATION OF THE US POSTAL SERVICE

    The Committee remains extremely concerned by the current 
financial status of the US Postal Service (USPS), with current 
estimates projecting a deficit of $1.5 billion for fiscal year 
2002. The Committee continues to believe that deficits of this 
magnitude are unacceptable. USPS continues to suffer cash flow 
problems that have, in turn, prevented the funding of needed 
capital commitments. USPS is also approaching its statutory 
debt limit of $15 billion and faces growing pension 
liabilities. The Committee is aware of the financial impact of 
the decline in mail volume caused by the recent economic 
downturn, the terrorist attacks of September 11 and the anthrax 
attacks of last fall. The Committee believes, however, that 
USPS financial difficulties cannot be attributed solely to 
recent events, nor can the problem be resolved solely by 
increasing postal rates or by Federal appropriations. Instead, 
the Committee believes that USPS organization and practices 
must undergo fundamental changes to adapt to the current 
business climate.
    The Committee is aware that USPS released a needed 
Transformation Plan in April 2002 and commends the 
comprehensive nature of this plan. The Committee is also aware 
that the USPS Board of Governors has recognized the need for 
significant statutory reform of USPS and has expressed its 
support for legislation under consideration by the Committee on 
Government Reform. The Committee supports these ongoing efforts 
by the Committee on Government Reform and encourages USPS to 
work with Congress in the passage of legislation that will 
return USPS to financial sustainability.

                          PAY-FOR-PERFORMANCE

    The Committee is concerned that the USPS pay-for-
performance program based on the concept of economic value 
added (EVA) does not provide the necessary incentives to 
improve postal performance. The Committee notes that although 
USPS recorded a deficit of $1.7 billion for fiscal year 2001, 
$164.1 million in bonuses were awarded to nearly 84,000 postal 
executive employees. The Committee also notes that the USPS 
Office of Inspector General (USPS OIG) found the EVA concept to 
be inappropriate for USPS and recommended that USPS develop an 
alternative method for calculating pay-for-performance. The 
Committee especially notes USPS OIG's finding that without a 
unique inflation adjustment incorporated into the system, EVA 
in fiscal year 2000 would have been negative and no award 
payments would have been made in that year. The Committee is 
therefore concerned that the pay-for-performance program has 
become disjoined from actual performance and instead has become 
based on fulfilling employees' expectation of payments. The 
Committee understands that USPS has agreed to evaluate an 
alternative method for the pay-for-performance program by the 
end of fiscal year 2002. The Committee directs USPS to report 
to the Committee on the findings of this evaluation no later 
than December 31, 2002.

              EMERGENCY PREPAREDNESS FOR TERRORIST ATTACKS

    At the direction of Congress, USPS submitted to the 
Committee on March 6, 2002 an Emergency Preparedness Plan for 
Protecting Postal Employees and Customers From Exposure to 
Biohazardous Material and for Ensuring Mail Security Against 
Bioterror Attacks. The Committee directs USPS to report on a 
quarterly basis to the Committee on the implementation of the 
Emergency Preparedness Plan, including the obligation of funds 
appropriated to date and the identification and evaluation of 
technologies relating to the prevention, protection and health-
risk reduction, detection and identification, intervention, and 
decontamination for possible future biological and/or chemical 
terrorist attacks via US mail. The Committee further directs 
USPS to report by December 31, 2002 on the evaluation of the 
cost-effectiveness and security benefits that may be provided 
by a system of cooperative security or ``trusted mail'' efforts 
(including incentive options) between USPS and commercial 
mailers, whereby mail received from a commercial mailer that 
has complied with security standards, such as unique traceable 
identifiers, would not be scheduled to receive any special 
handling for the detection and neutralization of biohazardous 
contaminants.

                 MAIL MOVED BY COMMERCIAL AIR TRANSPORT

    The Committee is aware that since the terrorist attacks of 
September 11, 2001, there has been a significant reduction in 
the amount of US Mail being moved by commercial air transport 
due to new security requirements. The Committee is concerned 
with the rapid and efficient transport of the US Mail and 
encourages the US Postal Service to work in close coordination 
with the Transportation Security Administration and airlines 
industry for developing effective and secure procedures for 
moving the US Mail by commercial air transport.

                        PERIODICAL POSTAL RATES

    It is the Committee's understanding that the USPS and 
publishers have been negotiating for more than two years to 
find a suitable audit procedure to verify periodical postal 
rates for phone and Internet orders and that, to date, an 
agreement has not been reached. The Committee encourages USPS 
to consider the acceptance of personal identifiers, Internet/E-
mail digital footprints, voice recordings and/or equivalent 
methods of verification to determine whether a publication 
meets the 50 percent test for periodical postal rates. The 
Committee directs USPS to report to the Committee on the status 
of this issue within 120 days.

                        COMMUNITY IDENTIFICATION

    The Committee is aware that ZIP codes are often used to 
identify communities, and in some cases the ZIP code coverage 
may overlap, divide or exclude some particular communities' 
governmental boundaries in a way that sometimes causes 
jurisdictional confusion for conducting local governmental 
business. The Committee encourages the Postal Service to work 
more closely with local communities in assigning ZIP codes that 
correspond more closely with their governmental boundaries.

        POSTAL SERVICE WEATHER EMERGENCY POLICIES AND PRACTICES

    In its report last year (H. Rpt. 107-152) and the year 
before (H. Rpt. 106-756), the Committee expressed its concern 
that during Hurricanes Irene and Floyd, the US Postal Service 
may have put the health and safety of South Florida postal 
employees at risk by continuing business as usual for an 
unreasonable period and failing to curtail postal operations in 
a timely manner.
    Despite strong and repeated requests from the Committee, 
the Postal Service has refused to adopt a policy and practice 
of following the recommendations and directives of federal, 
state and local emergency management and weather authorities in 
all locations served by the Postal Service whenever weather 
emergencies arise. While the Postal Service says that it will 
observe any evacuation order that it receives from an emergency 
management authority, it appears that it reserves the right to 
ignore the recommendations and directives of federal, state and 
local emergency management and weather authorities in all other 
circumstances.
    The Committee continues to believe that the health and 
safety of postal employees must never be put at risk in order 
to deliver the mail. The Committee remains concerned that the 
Postal Service's refusal to adopt a policy and practice of 
following the recommendations and directives of federal, state 
and local emergency management and weather authorities in all 
locations served by the Postal Service whenever weather 
emergencies arise is placing Postal employees, especially South 
Florida postal employees, at risk in future weather 
emergencies. It is important for the Committee to know the 
reasons for the differences in policy and practice whenever 
South Florida postal workers are required to work during a 
weather emergency while other workers are not. Thus, the 
Committee directs the Postal Service to report to the Committee 
by October 1, 2002 on its South Florida weather emergency 
policies and practices.
    In its report, the US Postal Service shall describe any 
variation between U.S. Postal Service weather emergency 
policies and practices and those used by federal, state, and 
local emergency management and weather authorities for South 
Florida, (namely, the Federal Emergency Management Agency, the 
Florida Division of Emergency Management, and the Miami Dade 
County Office of Emergency Management). This report shall 
identify each instance when Miami-Dade County employees were 
released from duty in a weather emergency when Postal employees 
were not, and provide the Postal Service's explanation for its 
refusal to release postal employees working in or living in 
Miami Dade County during a weather emergency even though other 
Miami-Dade County employees were released.
    The Committee further directs the Postal Service to report 
to the Committee within thirty days of any South Florida 
weather emergency in any case where the Postal Service remained 
operational and required its employees to report for, and/or 
remain at work despite a directive from the Miami-Dade County 
government releasing their employees from service. This report 
shall explain how the Postal Service arrived at its decisions 
concerning how to respond to the South Florida weather 
emergency, and shall provide the rationale for any variations 
between the Postal Service's decision and that of Federal, 
State or local emergency management and weather authorities.

                       MORRIS PLAINS, NEW JERSEY

    The Committee believes that the US Postal Service Inspector 
General and the US Postal Service should consider conducting a 
thorough investigation of the ongoing management and service 
complaints at the Morris Plains Post Office in Morris Plains, 
New Jersey. The Committee notes that formal complaints have 
been brought to local and Federal USPS officials, as well as 
the Postmaster General's attention since April 1998. Under such 
circumstances, the Committee strongly encourages the US Postal 
Service and Inspector General to conduct a thorough 
investigation to address these management complaints at the 
Morris Plains Post Office.

                          LITTLEVILLE, ALABAMA

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

                          WEST POINT, ALABAMA

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

                           SOUTHSIDE, ALABAMA

    The Committee is concerned about the postal needs of 
Southside, Alabama, located in Etowah County. The Committee 
recommends that the US Postal Service evaluate the need for a 
classified post office in Southside, Alabama, working with 
local officials and community leaders. The Committee further 
recommends that the US Postal Service report its findings to 
the Committee.

                            DOUGLAS, ALABAMA

    The Committee is concerned about the postal needs of 
Douglas, Alabama, located in Marshall County. The Committee 
recommends that the US Postal Service evaluate the need for the 
Douglas post office to serve the entire city of Douglas, 
Alabama, working with local officials and community leaders. 
The Committee further recommends that the US Postal Service 
report its findings to the Committee.

                      CHAPEL HILL, NORTH CAROLINA

    The Committee is concerned about the postal needs of the 
citizens of Chapel Hill, North Carolina. The Committee supports 
the US Postal Service's plans to construct a new carrier/retail 
facility that would relieve overcrowding at existing post 
offices and regrets that budget constraints have delayed this 
project. The Committee encourages the Postal Service to report 
to the Committee on the status of this effort. The Committee 
also recommends that the Postal Service re-evaluate the need 
for a contract facility in the Southern Village development and 
report its findings to the Committee.

                           SUFFOLK, VIRGINIA

    The Committee is aware that the City of Suffolk, Virginia, 
has been in consultation with the Postal Service for more than 
seven years regarding the construction of a new retail facility 
in downtown Suffolk. The Committee is encouraged by the 
progress that has been made in this dialogue and recommends 
that the Postal Service continue to seek alternatives for 
providing improved postal service for the residents of this 
community, including rental of retail space from the City.

                       COLONIAL HEIGHTS, VIRGINIA

    The Committee is concerned that the postal needs of 
Colonial Heights, Virginia are not being adequately met. The 
Committee recommends that the Postal Service work with City 
officials to determine how these services can be improved and 
evaluate alternatives to new construction until such time as 
the spending moratorium is lifted. The Committee further 
recommends that the Postal Service report its findings to the 
Committee.

                            BRONX, NEW YORK

    The Committee is greatly concerned with the numerous 
reports of missing mail, misdelivered mail, late delivery and 
poor service at the Morris Park, Bronx, New York Post Office, 
with particular focus to the neighborhoods encompassing the 
10461 ZIP code, and recommends action be taken by the United 
States Post Office, New York headquarters to investigate this 
situation and report recommendations to correct this problem. 
Recommendations and a plan of implementation should be issued 
to the Committee no later then 90 days after the enactment of 
this legislation.

                         BARTONVILLE, ILLINOIS

    The Committee is concerned about the postal needs of the 
Village of Bartonville, Illinois. The Committee believes that 
the current Postal Service facility in Bartonville is 
inadequately sized for the services it provides, and that the 
lack of adequate adjacent parking for customers as well as the 
inadequate parking for mail trucks and employees pose serious 
safety hazards. The Committee recommends that the Postal 
Service work with local officials and community leaders to 
expeditiously address the needs of this facility and its 
customers and employees. The Committee further recommends that 
the Postal Service evaluate this situation and report its 
findings to the Committee.

                            JOPLIN, MISSOURI

    The Committee is concerned about the postal needs of 
Joplin, Missouri. The Committee believes that the current 
Postal Service facility in Joplin has inadequate parking that 
has created a traffic problem, and is not suitably accessible 
to the disabled. It is the Committee's understanding that the 
city will contribute over 20 percent of the overall cost of 
constructing a new facility in Joplin and will receive the 
current Postal facility. The Committee recommends that the 
Postal Service work with the community of Joplin to address the 
city's need for a new facility, and directs the Postal Service 
to report to the Committee on this matter no later than 90 days 
after the enactment of this Act.

                           MARKHAM, ILLINOIS

    The Committee is aware that Markham, Illinois has shared a 
zip code with Harvey, Phoenix, and Dixmoor, Illinois. Markham's 
60428 zip code designation was removed in 1974 and remains 
unused. The committee understands that the Village of Markham 
has requested reinstatement of their former zip code. The 
Committee recommends that the Postal Service evaluate this 
situation and report its findings to the Committee.

                         SAUK VILLAGE, ILLINOIS

    The Committee is concerned about the postal needs of Sauk 
Village, Ford Heights and Lynwood, Illinois. The Committee 
recommends that the U.S. Postal Service evaluate the need for a 
post office in Sauk Village working with local officials and 
community leaders. The Committee further recommends that the 
U.S. Postal Service report its findings to the Committee.

                           TUSCUMBIA, ALABAMA

    The Committee is concerned about the decision by the USPS 
to close the downtown Tuscumbia, Alabama post office located in 
Colbert County. The Committee is concerned that this proposed 
closing could have a negative impact on the elderly citizens of 
the Tuscumbia community and on downtown business owners. The 
Committee recommends that the Postal Service evaluate this 
situation, including the concerns described above, and report 
its findings to the Committee.

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


        Compensation of the President and the White House Office


                     COMPENSATION OF THE PRESIDENT




Appropriation, fiscal year 2002 to date...............          $450,000
Budget estimate, fiscal year 2003.....................           450,000
Recommended in the bill...............................           450,000
Bill compared with:
    Appropriation, fiscal year 2002...................  ................
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $450,000 for 
Compensation of the President, the same as the amounts 
appropriated in fiscal year 2002 and the same as the amount 
requested by the President.

                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............       $54,651,000
Budget estimate, fiscal year 2003.....................        84,595,000
Recommended in the bill...............................        50,715,000
Bill compared with:
    Appropriation, fiscal year 2002...................        -3,936,000
    Budget Estimate, fiscal year 2003.................       -33,880,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $50,715,000 
for the White House Office, $3,936,000 below the amounts 
appropriated in fiscal year 2002 and $33,880,000 below the 
amounts requested by the President. The Committee's 
recommendation transfers $9,020,000 to the Office of 
Administration in support of a one-year pilot project to 
centralize the procurement of certain common goods and 
services. The Committee also establishes a separate 
appropriation account for the Office of Homeland Security 
($24,844,000) instead of including these funds within the White 
House Office, Salaries and Expenses appropriation. The 
Committee's recommendation also assumes a reduction of $16,000 
associated with the President's pending proposal to integrate 
the benefits and administrative costs of the Federal Employees' 
Compensation Act (FECA) which, to date, has not been enacted.

                         WHITE HOUSE OPERATIONS

    The Committee is disappointed that information and 
communication from the White House is not offered in an 
expeditious and complete manner. This takes several forms, 
which goes beyond simple unreturned phone calls. The Committee 
has been extremely disappointed by the lack of detailed 
information provided by the White House regarding the staffing, 
funding and operations of the White House Office. As in the 
past, and as part of the Committee's questions on the use of 
appropriated funds, the Committee requested a brief description 
of the duties and responsibilities of each office within the 
White House, including the obligations incurred by each office 
for fiscal years 2001-2003. On two separate occasions, the 
White House responded that this information was not available; 
on the third occasion, after the White House was referred to 
the fiscal year 1999 hearing volumes which accurately displays 
fiscal year 1999 obligations by White House office, as provided 
by the previous Administration, the White House provided 
information regarding current operations for the record. The 
Committee has been steadfast in its resolve to conduct 
oversight of the use of appropriated funds for all agencies 
under its jurisdiction, including the White House Office.

                           WHITE HOUSE TOURS

    The Committee is aware that, because of the tragic events 
of September 11, 2001, public visitation of the White House has 
been severely restricted. The Committee would like to see a 
resumption of public White House tours as soon as safely 
possible. We urge the executive branch to work toward this 
goal.

                      Office of Homeland Security


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............       $27,000,000
Budget estimate, fiscal year 2003.....................        24,844,000
Recommended in the bill...............................        24,061,000
Bill compared with:
    Appropriation, fiscal year 2002...................        -2,939,000
    Budget Estimate, fiscal year 2003.................          -783,000
------------------------------------------------------------------------

(Note: Fiscal Year 2002 funds for the Office of Homeland Security were
  provided under the Heading, ``Office of Administration, Salaries and
  Expenses''.)

                                MISSION

    On October 8, 2001, the President signed Executive Order 
13288, establishing the Office of Homeland Security (OHS). As 
identified by Executive Order 13288, the primary 
responsibilities of OHS are to coordinate the executive 
branch's efforts to detect, prepare for, prevent, protect 
against, respond to, and recover from terrorist attacks within 
the United States.

                             RECOMMENDATION

    The Committee proposes a new appropriation account for the 
Office of Homeland Security rather than including funds within 
the account, White House Office, Salaries and Expenses. The 
Committee believes that the Office of Homeland Security is a 
high priority effort and should be funded as a separate 
appropriations structure.
    The Committee recommends an appropriation of $24,061,000 
for the Office of Homeland Security, a decrease of $2,939,999 
from the amounts appropriated in fiscal year 2002 and $783,000 
below the amounts requested by the President. The Committee's 
recommendation assumes savings from non-recurring costs 
associated with the fiscal year 2002 emergency supplemental 
appropriation and the transfer of $783,000 to the Office of 
Administration in support of a pilot program to centralize the 
procurement of certain common goods and services.

                          COMMITTEE OVERSIGHT

    In creating a new Office of Homeland Security within the 
Executive Office of the President, the Committee seeks to 
better highlight and isolate those costs directly associated 
with the operations of this office. In fiscal year 2002, the 
Office of Homeland Security was established by Executive Order 
13228 ``to develop and coordinate the implementation of a 
comprehensive national strategy to secure the United States 
from terrorist threats or attacks.'' During fiscal year 2002, 
$27,000,000 in funding for this new office was provided within 
the account, Office of Administration. An additional 
$24,844,000 was requested as part of the White House Office 
account for fiscal year 2003. The Committee establishes a new 
Office of Homeland Security account and provides the 
$24,844,000 in funding previously requested within the White 
House Office.
    During the Committee's fiscal year 2003 hearings on agency 
budget requests, the Committee asked many questions about 
funding for the Office of Homeland Security; the Committee was 
disappointed that the witnesses were not able to answer these 
questions. When the Committee then sought testimony from the 
Director of Homeland Security to address these and other 
questions, the requests were denied. The Committee's ability to 
exercise its oversight responsibilities of the Office of 
Homeland Security were significantly hindered by the 
Administration's inability to answer questions in a timely and 
complete answer.
    Despite its strong belief that the Committee should have 
received testimony from the Director of the Office of Homeland 
Security within the regular Committee hearing process, the 
Committee accommodated the executive branch by conducting a 
more informal briefing. The committee's decision to focus on 
cooperation rather than confrontation does not diminish its 
belief that a regular hearing with testimony should have been 
agreed to by the executive branch.
    It is the expectation of the Committee that, by 
establishing a new account for this function, information 
related to the operations of and funding for this office will 
be more readily available. Witnesses who testify before the 
Committee on behalf of this account are expected to be fully 
prepared to answer questions about the functions and operations 
of the Office of Homeland Security.

                      FUNCTIONAL RESPONSIBILITIES

    Executive Order 13288 establishes several broad areas of 
functional responsibility for the OHS, including the 
development of a national strategy; prioritizing and 
coordinating detection efforts; coordinating national 
preparedness efforts; coordinating prevention efforts; 
coordinating efforts to protect critical infrastructure; 
coordinating efforts to respond to and promote response and 
recovery; coordinating incident management response efforts; 
reviewing plans and preparations for the continuity of 
government; coordinating the executive branch strategy for 
communications and public affairs; encouraging the cooperation 
of state and local governments and private entities; reviewing 
legal authorities; and reviewing agency and department budgets 
for homeland security efforts. The Committee believes that 
these are laudable efforts and has included bill language 
directing the Office of Homeland Security to submit a report 
identifying estimated obligations for each function to the 
Committee on Appropriations no later than November 1, 2002. The 
Committee further directs the Office of Homeland Security to 
submit any future appropriations requests according to these 
functional responsibilities; this submission shall be in 
addition to standard appropriations justification materials 
that display an object class analysis for the activities of the 
Office of Homeland Security.

                            LESSONS LEARNED

    The Committee is aware of a lessons learned initiative at 
the Oklahoma City National Memorial Institute for the 
Prevention of Terrorism. The lessons learned initiative is 
intended as a repository where First Responders can input their 
observations and lessons learned from their experiences, to be 
shared with all First Responders nationally. The Committee 
considers the lessons learned initiative to be significant work 
by a non-governmental organization towards contributing to 
homeland security. The Office of Homeland Security is urged to 
coordinate and work with the Memorial Institute for the 
Prevention of Terrorism in order to leverage ongoing lessons 
learned for First Responders. The Committee believes that such 
efforts provide the best return on investment because they 
identify and share information on best practices for combating 
terrorism on United States soil. A lesson learned system also 
allows a trend analysis that can be used to strengthen a first 
responder-training program and determine research agendas.

                         PROFESSIONAL CONTRACTS

    The Office of Homeland Security has requested $8,000,000 
for ``professional contracts'' under the object class ``Other 
Services''. The Committee is aware that these funds will be 
used to meet research and analysis requirements of the Office 
of Homeland Security including the review and assessment of 
federal emergency response plans; the development of criteria 
for reviewing security measures for critical infrastructure; 
the identification of methods for coordinating public health 
preparedness; the design and review of programs to facilitate 
incident response; the analysis of cyber security and 
vulnerability; the development of information technology 
security awareness; and the review of government vulnerability 
and homeland security programs. The Committee directs the 
Office of Homeland Security to notify the Committee on a 
quarterly basis of all projects funded through these contracts. 
Additionally, the Committee directs the Office of Homeland 
Security to submit a copy of each project, study or review 
funded when such studies, projects and reviews are completed, 
subject to normal security procedures, as may be necessary.

                 Executive Residence at the White House


                           OPERATING EXPENSES




Appropriation, fiscal year 2002 to date...............       $11,695,000
Budget estimate, fiscal year 2003.....................        12,228,000
Recommended in the bill...............................        12,228,000
Bill compared with:
    Appropriation, fiscal year 2002...................          +533,000
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $12,228,000 
for the operating expenses of the Executive Residence, an 
increase of $533,000 from the amounts appropriated in fiscal 
year 2003 and the same as the amounts requested by the 
President.

                   White House Repair and Restoration





Appropriation, fiscal year 2002 to date...............        $8,625,000
Budget estimate, fiscal year 2003.....................         1,200,000
Recommended in the bill...............................         1,200,000
Bill compared with:
    Appropriation, fiscal year 2002...................        -7,425,000
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

    To provide for the repair, alteration, and improvement of 
the Executive Residence at the White House, a separate account 
was established in fiscal year 1996 to program and track 
expenditures for capital improvement projects at the Executive 
Residence at the White House.

                             RECOMMENDATION

    The Committee recommends an appropriation of $1,200,000 for 
White House Repair and Restoration, a decrease of $7,425,000 
from amounts appropriated in fiscal year 2002 and the same as 
the amounts requested by the President.

                FISCAL YEAR 2002 CONSTRUCTION ACTIVITIES

    In fiscal year 2002, the Committee provided $8,625,000 for 
eight separate construction activities for the Executive 
Residence at the White House. The Committee directed the 
National Park Service to submit a prospectus for each of these 
projects in excess of $100,000; the Committee was extremely 
disappointed with the quality of the original submission and 
remains concerned about both the planning and the execution of 
these projects. The Committee directs the National Park Service 
to submit a detailed status report for each of the projects 
supported in the fiscal year 2002 appropriations bill no later 
than 60 days after enactment of this Act. This report shall 
include a summary of obligations to date, by project. The 
National Park Service is directed to include all projects that 
are law enforcement sensitive and/or classified in this report 
under separate and appropriate cover.

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


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............        $3,925,000
Budget estimate, fiscal year 2003.....................         4,066,000
Recommended in the bill...............................         3,160,000
Bill compared with:
    Appropriation, fiscal year 2002...................          -765,000
    Budget Estimate, fiscal year 2003.................          -906,000


                                MISSION

    These funds support the official duties and functions of 
the Office of the Vice President.

                             RECOMMENDATION

    The Committee recommends an appropriation of $3,160,000 for 
the Office of the Vice President, a decrease of $765,000 from 
amounts appropriated in fiscal year 2002 and a decrease of 
$906,000 from amounts requested by the President. The 
Committee's recommendation transfers $906,000 to the Office of 
Administration in support of a one-year pilot project to 
centralize the procurement of certain common goods and 
services.

                           Operating Expenses





Appropriation, fiscal year 2002 to date...............          $318,000
Budget estimate, fiscal year 2003.....................           324,000
Recommended in the bill...............................           324,000
Bill compared with:
    Appropriation, fiscal year 2002...................            +6,000
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

    These funds support the care and operation of the Vice 
President's residence and specifically support equipment, 
furnishings, dining facilities, and services required to 
perform and discharge the Vice President's official duties, 
functions and obligations.

                             RECOMMENDATION

    The Committee recommends an appropriation of $324,000 for 
the Operating Expenses of the Vice President's residence, an 
increase of $6,000 from amounts appropriated in fiscal year 
2002 and the same as the amounts requested by the President.

                      Council of Economic Advisers


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............        $4,211,000
Budget estimate, fiscal year 2003.....................         4,405,000
Recommended in the bill...............................         3,763,000
Bill compared with:
    Appropriation, fiscal year 2002...................          -448,000
    Budget Estimate, fiscal year 2003.................          -642,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $3,763,000 for 
the Council of Economic Advisers, a decrease of $448,000 from 
amounts appropriated in fiscal year 2002 and a decrease of 
$642,000 from amounts requested by the President. The 
Committee's recommendation transfers $642,000 to the Office of 
Administration in support of a one-year pilot project to 
centralize the procurement of certain common goods and 
services.

                      Office of Policy Development


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............        $4,142,000
Budget estimate, fiscal year 2003.....................         4,221,000
Recommended in the bill...............................         3,251,000
Bill compared with:
    Appropriation, fiscal year 2002...................          -891,000
    Budget Estimate, fiscal year 2003.................          -970,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $3,251,000 for 
the Office of Policy Development, a decrease of $891,000 from 
amounts appropriated in fiscal year 2002 and a decrease of 
$970,000 from amounts requested by the President. The 
Committee's recommendation transfers $970,000 to the Office of 
Administration in support of a one-year pilot project to 
centralize the procurement of certain common goods and 
services.

                       National Security Council


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............        $7,494,000
Budget estimate, fiscal year 2003.....................         9,525,000
Recommended in the bill...............................         7,803,000
Bill compared with:
    Appropriation, fiscal year 2002...................          +309,000
    Budget Estimate, fiscal year 2003.................        -1,722,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $7,803,000 for 
the National Security Council, an increase of $309,000 from 
amounts appropriated in fiscal year 2002 and a decrease of 
$1,722,000 from amounts requested by the President. The 
Committee's recommendation transfers $1,722,000 to the Office 
of Administration in support of a one-year pilot project to 
centralize the procurement of certain common goods and 
services.

                        Office of Administration


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............       $96,995,000
Budget estimate, fiscal year 2003.....................        70,128,000
Recommended in the bill...............................        92,681,000
Bill compared with:
    Appropriation, fiscal year 2002...................        -4,314,000
    Budget Estimate, fiscal year 2003.................       +22,553,000


                                MISSION

    The Office of Administration is responsible for providing 
cost-effective, administrative services to the Executive Office 
of the President. These services, defined by Executive Order 
12028 of 1977, include financial, personnel, library and 
records services, information management systems support, and 
general office services.

                             RECOMMENDATION

    The Committee recommends an appropriation of $92,681,000 
for the Office of Administration, a decrease of $4,314,000 from 
amounts appropriated in fiscal year 2002 and an increase of 
$22,553,000 from amounts requested by the President. The 
Committee's recommendation reflects savings from non-recurring 
costs associated with the fiscal year 2002 emergency 
supplemental appropriation. The recommended increase is 
associated with the pilot project to centralize the procurement 
of common goods and services and is offset from other Executive 
Office of the President (EOP) appropriations, resulting in a 
total appropriation for the EOP that is the same as the amount 
requested by the President. As part of this appropriation, the 
Committee includes $17,495,000 for the Capital Investment Plan, 
including $720,000 for amounts associated with the pilot 
project on centralized procurement efforts.

 PILOT PROJECT ON CENTRALIZED PROCUREMENT OF COMMON GOODS AND SERVICES

    The President proposed to consolidate 17 separate 
appropriations accounts into one account for agencies under the 
umbrella of the Executive Office of the President (EOP). The 
Committee has not included the proposed account consolidation 
in its fiscal year 2003 recommendation. However, the Committee 
believes that there are merits to some of the underlying 
justifications to such a consolidation, including enabling the 
EOP to achieve economies of scale through centralized 
procurement of certain common goods and services.
    The Committee transfers funds from seven of the EOP 
agencies to establish a one-year pilot project for centralized 
procurement and management of information technology, rent, 
printing and reproduction, supplies and materials and 
equipment. Specifically, the Committee transfers $22,553,000 
from the White House Office, the Office of Homeland Security, 
the Office of the Vice President, the Office of Management and 
Budget, the Office of Policy Development, the National Security 
Council, and the Council of Economic Advisers to the Office of 
Administration to establish a pilot project for these agencies. 
The Committee has transferred the following amounts for each 
agency:

                                            TRANSFER BY OBJECT CLASS
                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                   Supplies
              Account                 Rent    Communications  Printing    Other      and     Equipment    Total
                                                                & rep   services  materials
----------------------------------------------------------------------------------------------------------------
WHO...............................     5,392        1,551          316       619        570        572     9,020
OHS...............................  ........           54           40        54        535        100       783
OVP, S&E..........................       637          112            5        26         54         72       906
OPD...............................       605          180           20        23         90         52       970
NSC...............................     1,310           88           10        44        164        106     1,722
CEA...............................       487           31     ........         9         64         51       642
OMB...............................     6,431          439           51       111        690        788     8,510
                                   -----------------------------------------------------------------------------
      TOTAL.......................    14,862        2,455          442       886      2,167      1,741    22,553
----------------------------------------------------------------------------------------------------------------
Note.--Communications includes telecommunications and monthly cell phone service; Equipment includes cell
  phones, IT desktops, copiers and faxes; Other Services includes Lexus, Quorum and Copier Maintenance.

    The Committee has established this one-year pilot in order 
to allow the Administration an opportunity to evaluate both the 
costs and the benefits of centralized procurement authority. 
While the Committee has not included all of the EOP agencies in 
this pilot project, the Committee encourages the Office of 
Administration to solicit the participation of these agencies. 
The Committee also notes its strong belief that central 
management will be successful only to the extent that there are 
specific procurement standards established for each commodity 
to be centralized.
    The Committee expects that the Office of Administration 
will achieve economies of scale using centralized procurement 
practices. The Committee directs the Office of Administration 
to identify these savings with the submission of the 
President's fiscal year 2004 appropriations request. The 
Committee will review these savings in conjunction with any 
future requests to continue and/or modify this appropriations 
transfer. The Committee further directs the Office of 
Administration to submit a description of this pilot project, 
including a description of the standards established for the 
procurement of each commodity included in this project, no 
later than December 1, 2002. Finally, the Committee directs the 
Office of Administration, as part of the fiscal year 2004 
appropriations request, to submit a summary of estimated versus 
actual obligations by object class for each agency and each 
commodity included under this pilot project, including those 
obligations incurred by the Office of Administration.

                        CAPITAL INVESTMENT PLAN

    For the past six years, the Committee has followed closely 
the efforts of the Office of Administration to establish and 
implement an information technology modernization effort within 
the Executive Office of the President (EOP) and has withheld 
funds from obligation pending certain critical steps that the 
Committee believed were necessary to achieve a successful 
information technology infrastructure within the EOP. As part 
of the fiscal year 2002 appropriations cycle, the Committee 
withheld funds pending the submission of a comprehensive report 
on the status of the enterprise architecture, the capital 
planning and investment control process, the capital investment 
plan, and the IT human capital plan. The Committee has recently 
received General Accounting Office's (GAO) review of this 
report and is pleased with the GAO findings. The Committee 
commends the Office of Administration and, in particular, the 
Chief Information Officer, for the progress that has been made 
on information technology within the EOP during fiscal year 
2002.
    The Committee has provided a total of $17,495,000 for the 
Capital Investment Plan in fiscal year 2003. The Committee 
believes that sufficient progress has been made to eliminate 
the need to withhold funds for this project. However, the 
Committee will continue to carefully monitor the EOP's 
information technology efforts and has continued bill language 
requiring the submission of annual updates of the enterprise 
architecture, the IT capital planning and investment control 
process and the IT Human Capital Plan. The Committee directs 
that this report be submitted with the President's fiscal year 
2004 budget. The Committee also continues the requirement that 
the General Accounting Office review this report. The Committee 
believes that GAO's Office of Information Technology 
Architecture and Systems Issues has provided critical and 
invaluable guidance in EOP's efforts and will continue to seek 
its expertise as this project proceeds.

                    Office of Management and Budget


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2020 to date...............       $70,752,000
Budget estimate, fiscal year 2003.....................        70,752,000
Recommended in the bill...............................        61,492,000
Bill compared with:
    Appropriation, fiscal year 2002...................        -9,260,000
    Budget Estimate, fiscal year 2003.................        -9,260,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $61,492,000 
for the Office of Management and Budget (OMB), a reduction of 
$9,260,000 from amounts appropriated in fiscal year 2002 and 
the amounts requested by the President. The Committee's 
recommendation is consistent with the reductions taken to OMB 
in the H.R. 4775, the House-passed supplemental appropriations 
bill that reduced OMB's personnel expenses by $750,000 to 
reflect duplication of effort with the Office of Homeland 
Security. The Committee's recommendation also transfers 
$8,510,000 to the Office of Administration in support of a one-
year pilot project to centralize the procurement of certain 
common goods and services.

                       ANTI-DEFICIENCY VIOLATION

    On June 22, 2002, the Speaker of the House of 
Representatives and the Committee on Appropriations were 
notified that funds provided for federal loan guarantees in the 
Air Transportation Safety and System Stabilization Act were 
apportioned by the Office of Management and Budget and 
obligated by the Air Transportation Stabilization Board (ATSB) 
in violation of the Anti-Deficiency Act. These funds were not 
available for apportionment because, at the time of OMB's 
execution of the apportionment, the emergency designation had 
not been transmitted by the President to the Speaker of the 
House of Representatives. The facts of this matter are 
troubling and seem to indicate that the Office of Management 
and Budget refuses to take responsibility for its own failure 
in its fiduciary responsibilities in federal funds management 
and has sought to shift the blame to the ATSB:
    1. On December 28, 2001, the ATSB conditionally approved a 
$429 million loan for America West airlines.
    2. On January 18, 2002, OMB signed an apportionment 
releasing $429 million in loan authority.
    3. On January 18th, the Board obligated $172 million.
    4. Nearly four months later, on May 16th, the Presidential 
designation (through the Office of Management and Budget) of 
the amounts as an emergency requirement pursuant to the 
Balanced Budget and Deficit Control Act was referred to the 
Committee on Appropriations. At that time, no indication was 
given that such designation was untimely.
    5. On May 20, 2002 the Committee on Appropriations formally 
requested the Comptroller General of the General Accounting 
Office to determine whether OMB had apportioned the funds in 
violation of the Anti-Deficiency Act. At the same time, the 
Committee informally asked OMB if a violation of the Act had 
been committed.
    6. On June 25, 2002, the ATSB reported a ``technical 
violation'' of the Anti-Deficiency Act to the Speaker 
implicating itself, the Department of the Treasury, and OMB.
    The Committee believes that the Office of Management and 
Budget (not a disinterested party) concluded that the ATSB 
violated the Anti-Deficiency Act and insisted that the ATSB 
report the violation. However, the Committee observes that the 
ATSB obligated the funds only after OMB had previously 
apportioned the funds to the ATSB, though the OMB had failed 
first to submit to the President and the Congress a request to 
make available contingent emergency funds for the program. The 
ATSB simply obligated the funds for the program based upon the 
apportionment that OMB had executed in violation of the law. 
Therefore, the Committee believes that OMB is principally at 
fault for the violation, not the ATSB. OMB was surely aware of 
the anti-deficiency violation on May 15, 2002, when it 
submitted the late emergency designation to the Congress. The 
Committee is concerned that OMB did not acknowledge the 
violation at that time. The Committee can only conclude that 
OMB would not have acknowledged the anti-deficiency violation 
if the Committee had not questioned the untimeliness of the 
President's emergency designation. This inaction is 
inappropriate for an Office that is charged with overseeing the 
financial operations of the Federal Government. For these 
reasons, the Committee directs the Office of Management and 
Budget to transmit a letter to the Speaker of the House of 
Representatives taking responsibility for the violation of the 
Anti-Deficiency Act, as is required by section 1351 of title 
31, not later than August 1, 2002.

        STANDARDS AND BEST PRACTICES FOR FEDERAL IT PROCUREMENT

    The Committee is aware that the Administration is working 
with industry leaders to develop a new set of ``standards and 
best practices'' for Federal information technology 
procurement, which would include the building in of cyber-
security protections to software and hardware products. The 
Committee encourages this type of initiative, especially for 
providing uniform cyber-security across the government's 
departments and agencies.

                      LIMITED ENGLISH PROFICIENCY

    The report provided by the Administration to the Committee 
regarding the total costs of implementing Executive Order 
13166, Improving Access to Services for Persons with Limited 
English Proficiency, failed to identify the costs of this 
program. The Committee remains concerned about this program's 
costs and directs that the Committee be provided a report, no 
later than September 30, 2002, that identifies the cost, the 
number of publications that have been translated, and the 
number of languages that those publications have been 
translated into under this program. This report shall also 
include the status of OMB's progress in establishing a 
government-wide central registry of all LEP compliance actions 
undertaken by federal agencies.

                 OVERLAPPING CYBER-SECURITY INITIATIVES

    The Committee is concerned about redundancies in developing 
and implementing governmental cyber-security initiatives for 
the protection of government information technology. The 
Committee directs OMB to submit a report, within 90 days of 
enactment of this Act, that details the cyber-security 
initiatives undertaken by the various government departments 
and agencies. This report shall include: total costs, as of the 
date of the report, by department or agency for cyber-security, 
an identification of those initiatives that are being shared 
between departments or agencies, an identification of those 
initiatives that respond to unique requirements, and an 
identification of initiatives that satisfy requirements of more 
than one department or agency yet are not being shared.

         GOVERNMENT WEB SITES UNIFORMITY AND USER FRIENDLINESS

    The Committee is concerned about the lack of uniformity of 
standards and user friendliness that affect usability of the 
various department and agency web sites. The Committee 
encourages the adoption by the Administration of uniform 
standards that can lead to more user friendly and usable 
government web sites.

              EISENHOWER EXECUTIVE OFFICE BUILDING (EEOB)

    The EEOB, built in 1888, was declared a National Historic 
Landmark in 1969. In fiscal year 1996, the Committee provided 
$2,900,000 to initiate a concept design for the modernization 
of this building; the concept documents were completed but full 
design was not authorized. Additional funds were provided in 
fiscal year 1999 to address life safety issues for fire and 
smoke detection systems. Fiscal year 2002 emergency 
supplemental funds of $27,209,000 were released by the 
Administration to the General Services Administration (GSA) for 
continued but poorly defined work associated with this project; 
the Administration has requested $7,500,000 for the design of 
necessary electrical upgrades in its fiscal year 2003 request 
for GSA. The Committee has denied these funds, as discussed 
under the GSA section of this report.
    The Committee is aware of the current condition of the 
Eisenhower Executive Office Building and the critical need to 
design and complete a major multi-year repair and alteration 
project with a total cost ranging from $350,000,000 to 
$625,000,000. In addition to a significant deterioration of 
basic infrastructure such as water infiltration, electrical 
systems and heating and ventilating systems, the Committee is 
aware of the additional security concerns that have arisen 
since the events of September 11th and which have resulted in 
the relocation of nearly 300 employees from the 17th Street 
side of this building. The combination of critical 
infrastructure deterioration and enhanced security requirements 
make this project even more urgent than ever.
    The Committee has made every attempt to obtain 
comprehensive and accurate information on the status of design 
work for this project; the Committee has been extremely 
disappointed in general by the quality and quantity of 
information provided by the Administration. The Committee has 
found OMB's responses to its inquiries incomplete and 
problematic.
    The Committee supports all efforts to ensure the historical 
and operational integrity of the EEOB but finds that, because 
the Administration has been unable to answer simple questions 
on the status of design work related to this project, any 
funding to proceed is premature. The Committee has also 
concluded that, to the detriment of the EEOB employees, 
internal deliberations within the Administration have prevented 
the development of a cohesive design strategy. The Committee 
directs OMB to submit, no later than September 30, 2002, a 
comprehensive design for this project, including all security 
requirements necessary to return all relocated employees to the 
17th Street side of the building. This design shall be prepared 
in direct cooperation with the GSA and the EOP's Office of 
Administration and shall include all design work necessary to 
complete the multi-year repair and alteration project, 
including all necessary cost estimates for each phase of the 
project.

                              OMB/FAIR ACT

    The Committee is encouraged by OMB's efforts towards 
performance goals, expanded A-76 competitions and more accurate 
FAIR Act inventories, but recognizes that even greater effort 
is required. One aspect of this effort is to eliminate unfair 
competition with the private sector by agencies that are 
greatly benefited by use of public resources. OMB is encouraged 
to identify and correct specific instances of unfair 
competition, and to encourage agency heads to develop 
Directives implementing the spirit of the FAIR Act and work 
towards eliminating unfair government competition.

                          GOVERNMENT PRINTING

    The Office of Management and Budget has recently proposed 
disregarding the statutory requirement of Title 44, U.S. Code, 
Section 501, that Executive-branch agencies produce or procure 
their printing through the Government Printing Office. Previous 
examinations of such proposals have questioned whether such a 
policy could result in significant increases in the cost of 
printing government-wide and could substantially impair public 
access to government information through the Federal Depository 
Library Program. OMB is directed to report to the Committees on 
Appropriations within 30 days on how its proposal: (1) improves 
economy and efficiency in federal printing; (2) improves public 
access to government information; and (3) comports with the 
concern that unless and until Title 44 is changed by a 
constitutional process, Executive-branch officials responsible 
for printing are legally bound to uphold it.

                          PAPERWORK REDUCTION

    The Office of Management and Budget has reported that 
paperwork burdens on Americans have increased in each of the 
last six years. Since the Internal Revenue Service imposes over 
80 percent of these paperwork burdens, the Committee believes 
that OMB should work to identify and review proposed and 
existing IRS paperwork.

                       Electronic Government Fund





Appropriation, fiscal year 2002 to date...............        $5,000,000
Budget estimate, fiscal year 2003.....................        45,000,000
Recommended in the bill...............................         5,000,000
Bill compared with:
    Appropriation, fiscal year 2002...................  ................
    Budget Estimate, fiscal year 2003.................       -40,000,000


                                MISSION

    The Electronic Government (E-Gov) Fund supports interagency 
initiatives that utilize the Internet or other electronic 
methods as a means to increase Federal government 
accessibility, efficiency, and productivity.

                             RECOMMENDATION

    The Committee recommends an appropriation of $5,000,000 for 
the Electronic Government Fund, the same as the amounts 
provided in fiscal year 2002 and $40,000,000 below the amounts 
requested by the President. The account was previously funded 
in the budget of the General Services Administration; the 
account has been moved to more closely associate the funding 
with the decision-making mechanism for these funds. The 
Committee notes that the activities associated with the 
account, including the expanded role of the Office of 
Management and Budget in directly managing a program, remain 
unauthorized and the need for the funding is poorly justified.

                        E-GOVERNMENT INITIATIVES

    The Committee is concerned about the establishment of 
government's proper role in providing digital services. The 
Committee notes that, according to the President's budget, the 
federal government's investment in information technology is 
estimated to be $50 billion for fiscal year 2003 and rife with 
inefficiencies and redundancies. While the Administration is to 
be strongly encouraged to leverage related government business 
processes to improve productivity, eliminate redundant systems, 
and significantly improve the quality of government services, 
its E-government plans must be carefully evaluated and 
monitored to ensure that they do not support government 
competition with market-based private providers of digital 
services. The Committee is concerned that the rules steering 
the government's relationships with the traditional bricks-and-
mortar economy are outdated and should not guide the provision 
of digital services. Blind adherence to past practices can lead 
to an ambiguous environment in which some federal agencies may 
develop highly beneficial Internet initiatives, while others 
create ventures that dangerously encroach on businesses already 
served by private enterprise. The Committee is concerned that 
the government needs a new blueprint for guiding e-government 
initiatives.
    The President's budget request for fiscal year 2003 and the 
E-Government Task Force's strategy report briefly describe 24 
E-Government initiatives that are expected to provide agencies 
with significant productivity improvements. The Committee 
directs that OMB provide within 90 days of enactment of this 
Act a report that details the blueprint used by the Task Force 
in its review and adoption of those initiatives; the process 
used by the Task Force to consider, and adopt or reject E-
Government initiatives; the evaluations of those and other E-
Government initiatives that were already provided for, or were 
requested by an agency or from the private sector; the reviews 
undertook by the Task Force for establishing and deciding which 
digital activities and services are inherently governmental and 
should be pursued as an E-Government initiative and which are 
non-governmental and therefore fall under private provider's 
domain; and the support and guidance from the private sector 
used by the Task Force in its work.

          Election Administration Reform and Related Expenses


                     (INCLUDING TRANSFER OF FUNDS)




Appropriation, fiscal year 2002 to date...............  ................
Budget estimate, fiscal year 2003.....................  ................
Recommended in the bill...............................      $200,000,000
Bill compared with:
    Appropriation, fiscal year 2002...................      +200,000,000
    Budget Estimate, fiscal year 2003.................      +200,000,000


                                MISSION

    This account is established as a mechanism to implement the 
provisions of pending authorizing legislation to establish 
election administration reform. This account shall be used to 
transfer funds to those federal entities that may be authorized 
by such legislation.

                             RECOMMENDATION

    The Committee has included $200,000,000 for the 
requirements of implementing election administration reform and 
related expenses and makes these funds available subject to 
authorization. The Committee's recommendation is identical to 
language that was included in H.R. 4775, the pending fiscal 
year 2002 supplemental appropriations, for election 
administration reform which requires the Director of the Office 
of Management and Budget (OMB) to transfer the funds 
appropriated, upon enactment of legislation improving the 
administration of elections, to the Federal entities specified 
by that legislation, for the purposes designated, and the 
amounts specified. The Committee notes that H.R. 4775 includes 
$450,000,000 for this account in fiscal year 2002.
    H.R. 3295, the Help America Vote Act of 2001, authorizes 
appropriations for states to upgrade and replace voting systems 
with optical scan or electronic voting equipment on a statewide 
basis. H.R. 3295 does not, however, take into account those 
states that had upgraded or replaced their voting systems prior 
to the November 2000 election. The Committee has included new 
language to rectify this disparity by providing authorization 
and appropriations for one-time payments to those states that 
obtained optical scan or electronic voting equipment prior to 
the regularly scheduled general election for Federal office 
held in November 2000. It is the Committee's understanding that 
this provision affects five states with a total estimated cost 
of approximately $23,000,000.

                 Office of National Drug Control Policy


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............       $25,263,000
Budget estimate, fiscal year 2003.....................        25,458,000
Recommended in the bill...............................        24,458,000
Bill compared with:
    Appropriation, fiscal year 2002...................          -805,000
    Budget Estimate, fiscal year 2003.................        -1,000,000


                                MISSION

    The Office of National Drug Control Policy, established by 
the Anti-Drug Abuse Act of 1988, is charged with developing 
policies, objectives and priorities for the National Drug 
Control Program as defined by the Act and Executive Order 
12880, and by the Office of National Drug Control Policy 
Reauthorization Act of 1998.

                             RECOMMENDATION

    The Committee recommends an appropriation of $24,458,000 
for the Office of National Drug Control Policy (ONDCP), a 
decrease of $805,000 below the fiscal year 2002 enacted level 
and $1,000,000 below the President's request. The Committee has 
included bill language withholding $5,000,000 of these funds 
until certain actions are taken by the Director of ONDCP 
regarding the High Intensity Drug Trafficking Areas (HIDTA) 
program, as discussed in the HIDTA section of this report.
    The Committee is extremely concerned by the growth in 
ONDCP's bureaucracy, particularly in the upper management 
levels, and believes that ONDCP's salaries and expenses 
appropriation should be used to support front line activities 
and not the back office. The Committee therefore directs that 
no reductions be taken from amounts proposed in the President's 
request for salaries and expenses for the administration of the 
Counterdrug Technology Assessment Center, the HIDTA program, or 
the programs funded through the Special Forfeiture Fund. The 
Committee further directs ONDCP to submit, within 60 days of 
the enactment of this Act, an organizational chart for ONDCP, a 
position description for each position funded in this Act, and 
a revised object class analysis indicating where the 
Committee's reductions to this account have been applied.

              NATIONAL ALLIANCE FOR MODEL STATE DRUG LAWS

    The Committee includes $1,000,000 for the National Alliance 
for Model State Drug Laws (NAMSDL). The Committee is concerned 
about ONDCP's lack of cooperation with NAMSDL in fulfilling its 
primary purpose of holding model state drug law conferences in 
all fifty states. The Committee directs ONDCP to report on its 
strategy for the model state drug laws program no later than 60 
days after enactment of this Act.

               FEDERAL COUNTERDRUG EFFORTS IN RURAL AREAS

    The Committee is aware that rural areas face a significant 
but frequently overlooked illicit drug abuse problem. The 
Committee is concerned that although drug use rates by high 
school seniors in rural areas exceed large urban areas, rural 
areas often lack adequate drug intervention, prevention, and 
treatment resources relative to their urban counterparts. The 
Committee therefore directs ONDCP to report to the Committee on 
a comparison of Federal counterdrug program activities and 
expenditures in rural and urban areas.

                Counterdrug Technology Assessment Center





Appropriation, fiscal year 2002 to date...............       $42,300,000
Budget estimate, fiscal year 2003.....................        40,000,000
Recommended in the bill...............................        55,800,000
Bill compared with:
    Appropriation, fiscal year 2002...................       +13,500,000
    Budget Estimate, fiscal year 2003.................       +15,800,000


                                MISSION

    Pursuant to the Office of National Drug Control Policy 
Reauthorization Act of 1998 (title VII of Division C of Public 
Law 105-277), the Counterdrug Technology Assessment Center 
serves as the central counterdrug research and development 
organization for the United States Government.

                             RECOMMENDATION

    The Committee recommends an appropriation of $55,800,000 
for the Counterdrug Technology Assessment Center, $13,500,000 
above the fiscal year 2002 enacted level and $15,800,000 above 
the President's request. Included in the appropriation are 
$26,064,000 for counternarcotics Technology Research and 
Development, and $29,736,000 for the Technology Transfer 
Program. The Committee has included continued funding for 
neuroimaging studies and genomic research into the relationship 
between genetic predisposition and environmental factors 
bearing upon drug addiction in the amount for counternarcotics 
Technology Research and Development.

                     Federal Drug Control Programs


             HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM




Appropriation, fiscal year 2002 to date...............      $226,350,000
Budget estimate, fiscal year 2003.....................       206,350,000
Recommended in the bill...............................       246,350,000
Bill compared with:
    Appropriation, fiscal year 2002...................       +20,000,000
    Budget Estimate, fiscal year 2003.................       +40,000,000


                                MISSION

    The High Intensity Drug Trafficking Areas (HIDTA) Program 
was established by the Director of ONDCP pursuant to section 
1005 of the Anti-Drug Abuse Act of 1988, and now as 
reauthorized by section 707 of the Office of National Drug 
Control Policy Act of 1998 to provide assistance to Federal and 
State and local law enforcement entities operating in those 
areas most adversely affected by drug trafficking.

                             RECOMMENDATION

    The Committee recommends an appropriation of $246,350,000 
for the High Intensity Drug Trafficking Areas Program, an 
increase of $20,000,000 above the fiscal year 2002 enacted 
level and an increase of $40,000,000 above the President's 
request. The increase above the President's request is to meet 
requirements to fully fund existing HIDTA program activity, to 
expand existing HIDTAs where such expansion is justified, and 
to fund new HIDTAs as appropriate. The Committee provides that 
HIDTAs existing in fiscal year 2002 shall receive funding equal 
to the FY 2002 level. This level includes all direct 
allocations to designated HIDTAs.
    The Committee supports a vigorous HIDTA program and is 
aware of areas facing increased drug trafficking that may be 
appropriate candidates for designation as a HIDTA, inclusion in 
an existing HIDTA, or increased funding. As ONDCP reviews 
candidates for new HIDTA funding, the Committee recommends that 
it consider the following: expansion of the North Texas HIDTA 
to include Oklahoma counties; expansion of the Northwest HIDTA 
to include counties of southwestern and eastern Washington; 
expansion of the Gulf Coast HIDTA to include Saint Charles 
Parish, Louisiana; an increase in funding for Arizona and West 
Texas in the Southwest Border HIDTA; and increased funding for 
the Chicago, Central Florida, Central Valley, Gulf Coast, Lake 
County Appalachia, and Midwest HIDTAs. The Committee recognizes 
the strong pressure to add new HIDTAs and expand those 
currently existing, and underscores the need for performance 
based management ensuring that HIDTAs demonstrating performance 
and need are provided adequate resources. The Committee is 
nevertheless very concerned about ONDCP's lack of response to 
the Committee's concerns regarding the HIDTA program. The 
Committee provided increased HIDTA funding in the fiscal year 
2002 appropriation with directions to expand HIDTAs. The 
Committee is gravely disappointed to learn that rather than 
actively exploring opportunities to expand HIDTAs per the 
directions of the Committee, ONDCP passively waited for 
eligible counties to contact ONDCP, which resulted in an 
effective non-response to the Committee's directions. The 
Committee directs ONDCP to initiate contact with possible 
candidate counties for their inclusion in HIDTA expansions as 
identified in this report, and to report to the Committee on 
this contact no later than December 1, 2002.

        HIDTA PERFORMANCE MANAGEMENT AND HIGH PRIORITY TARGETING

    Performance measures for HIDTAs have been, and continue to 
be, an area of focus for the Committee. The ability to match 
funding needs against budgets depends on reliable and 
consistent methodology for performance measurement and 
management. The Committee is concerned about the lack of 
progress on the development of such measures and their 
integration with HIDTA management and budgeting. The Committee 
has therefore included bill language stipulating that 
$5,000,000 of fiscal year 2003 funds for the ONDCP Salaries and 
Expenses shall not be obligated until the Director submits 
performance measures of effectiveness (PMEs) for the HIDTA 
program to the Committee. The Committee has also included 
language requiring that the fiscal year 2004 budget submission 
for the HIDTA program must be supported by PMEs data, including 
supporting justifications for each individual HIDTA and an 
optimal spending allocation based on PMEs.
    The Committee is aware that ONDCP has allocated fiscal year 
2002 funds to establish a HIDTA National Priority Targeting 
Project administered by the National HIDTA Assistance Center 
(NHAC). It is the Committee's understanding that this project 
will make funds available to HIDTAs that develop and conduct 
investigations against major drug trafficking organizations 
affiliated with National Priority Targets and meeting other 
project criteria. The Committee expects that this new project 
will be consistent with performance measurement and management 
goals. The Committee directs ONDCP to report to the Committee 
no later than September 30, 2002 on how NHAC has allocated its 
fiscal year 2002 funds, as well as the rationale for the 
allocation, National Priority Targets, and other priority 
targeting criteria developed under the project.

                        Special Forfeiture Fund





Appropriation, fiscal year 2002 to date...............      $239,400,000
Budget estimate, fiscal year 2003.....................       251,300,000
Recommended in the bill...............................       240,800,000
Bill compared with:
    Appropriation, fiscal year 2002...................        +1,400,000
    Budget Estimate, fiscal year 2003.................       -10,500,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $240,800,000 
for the Special Forfeiture Fund, an increase of $1,400,000 
above the fiscal year 2002 enacted level and a decrease of 
$10,500,000 from the President's request. The recommended 
appropriation includes $170,000,000 for the National Youth 
Anti-Drug Media Campaign, $60,000,000 for the Drug Free 
Communities Support Program, $6,000,000 for the Counterdrug 
Intelligence Executive Secretariat, $2,000,000 for Performance 
Measures Development, $1,000,000 for the US Anti-Doping Agency, 
$1,000,000 for the National Drug Court Institute, and $800,000 
for dues to the World Anti-Doping Agency. The decrease from the 
President's request is partially a result of the Committee's 
decision to continue funding the National Alliance for Model 
State Drug Laws through the ONDCP Salaries and Expenses 
account, rather than through the Special Forfeiture Fund as 
requested by the President.

                NATIONAL YOUTH ANTI-DRUG MEDIA CAMPAIGN

    The Committee is deeply concerned about the effectiveness 
of the National Youth Anti-Drug Media Campaign (NYADMC), for 
which Congress has appropriated nearly $930,000,000 to date. 
The Committee believes that the ultimate purpose of NYADMC is 
to reduce drug abuse among youth, and it is on this basis that 
NYADMC should be judged. The most recent report on the 
evaluation of NYADMC currently being conducted under the 
auspices of the National Institute on Drug Abuse indicates 
that, to date, there is no evidence that NYADMC is having the 
intended effect on youth drug use. It is the Committee's 
understanding that the evaluation is incomplete, having 
collected only two-fifths of the potential data, and that it 
will be completed sometime in late 2003. The Committee believes 
that this evaluation is scientifically rigorous and expects to 
make future funding decisions on NYADMC based upon its results. 
The Committee expects to see concrete evidence of a clear and 
statistically significant decline in youth drug use as a direct 
impact of NYADMC in order to justify future appropriations for 
this program. The Committee is also concerned that too small a 
proportion of NYADMC funds are being spent on the actual 
purchase of airtime and other media space, and therefore the 
Committee includes language stipulating that no less than 
$150,000,000 of NYADMC funds shall be used for media buys.

                          Unanticipated Needs





Appropriation, fiscal year 2002 to date...............        $1,000,000
Budget estimate, fiscal year 2003.....................         1,000,000
Recommended in the bill...............................         1,000,000
Bill compared with:
    Appropriation, fiscal year 2002...................  ................
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $1,000,000, 
the same as the amount appropriated in fiscal year 2002 and the 
same as the amount requested by the President.

                     TITLE IV--INDEPENDENT AGENCIES


 Committee for Purchase From People Who Are Blind or Severely Disabled


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............        $4,629,000
Budget estimate, fiscal year 2003.....................         4,629,000
Recommended in the bill...............................         4,629,000
Bill compared with:
    Appropriation, fiscal year 2002...................  ................
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $4,629,000 for 
the Committee for Purchase From People Who Are Blind or 
Severely Disabled, an amount equal to both the fiscal year 2002 
enacted level and the President's request.

                      Federal Election Commission


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............       $43,689,000
Budget estimate, fiscal year 2003.....................        45,244,000
Recommended in the bill...............................        49,426,000
Bill compared with:
    Appropriation, fiscal year 2002...................        +5,737,000
    Budget Estimate, fiscal year 2003.................        +4,182,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $49,426,000 
for the Federal Election Commission (FEC), an increase of 
$5,737,000 from amounts appropriated in fiscal year 2002 and an 
increase of $4,182,000 above amounts requested by the 
President. This increase includes $1,539,000 to maintain 
current services. The increase also includes $4,198,000 to 
implement the Bipartisan Campaign Reform Act (BCRA) (P.L. 107-
155) signed by the President on March 27, 2002. This amount is 
a decrease of $1,168,200 from the request of $5,366,200 
submitted by the FEC, a concurrent submission agency, as a 
budget amendment on April 23. The Committee notes that $750,000 
for BCRA is recommended in H.R. 4775 making supplemental 
appropriations for fiscal year 2002.

                   Federal Labor Relations Authority


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............       $26,524,000
Budget estimate, fiscal year 2002.....................        28,684,000
Recommended in the bill...............................        28,677,000
Bill compared with:
    Appropriation, fiscal year 2002...................        +2,153,000
    Budget Estimate, fiscal year 2003.................            -7,000


                                MISSION

    The Federal Labor Relations Authority (FLRA), established 
by the Civil Service Reform Act of 1978, serves as a neutral 
party in the settlement of disputes that arise between unions, 
employees, and agencies on matters outlined in the Federal 
Service Labor Management Relations statute, decides major 
policy issues, prescribes regulations, and disseminates 
information appropriate to the needs of agencies, labor 
organizations, and the public. Establishment of the FLRA gives 
full recognition to the role of the Federal Government as an 
employer. Pursuant to the Foreign Service Act of 1980, FLRA 
also supports the Foreign Service Impasse Disputes Panel and 
the Foreign Service Labor Relations Board.

                             RECOMMENDATION

    The Committee recommends an appropriation of $28,677,000 
for the Federal Labor Relations Authority (FLRA), an increase 
of $2,153,000 above the amount appropriated in fiscal year 2002 
and a decrease of $7,000 from the President's request. The 
decrease from the President's request is for costs associated 
with the President's pending proposal to integrate the benefits 
and administrative costs of the Federal Employees Compensation 
Act (FECA) which, to date, has not been enacted.

                    General Services Administration


                         FEDERAL BUILDINGS FUND




Appropriation:
    Appropriation, fiscal year 2002 to date...........      $410,912,000
    Budget estimate, fiscal year 2003.................       276,400,000
Recommended in the bill...............................       325,711,000
Bill compared with:
    Appropriation, fiscal year 2002...................       -85,201,000
    Budget Estimate, fiscal year 2003.................       +49,311,000
Limitations on Availability of Revenue (not an
 appropriation):
    Limitation on availability, fiscal year 2002           6,575,294,000
 enacted to date......................................
    Limitation on availability, budget estimate,           6,919,619,000
 fiscal year 2003.....................................
    Recommended in the bill...........................     6,961,930,000
Bill compared with:
    Availability limitation, fiscal year 2002 enacted       +386,636,000
 to date..............................................
    Availability limitation, fiscal year 2003 estimate       +42,311,000


                                MISSION

    The Federal Buildings Fund (FBF) finances the activities of 
the Public Buildings Service, which provides space and services 
for Federal agencies in a relationship similar to that of 
landlord and tenant. The FBF, established in 1975, replaces 
direct appropriations by using income derived from rent 
assessments, which approximate commercial rates for comparable 
space and services. The Appropriations Committee makes funds 
available through a process of placing limitations on 
obligations from the FBF as a way of allocating funds for 
various FBF activities. The Committee may also appropriate 
funds into the FBF as a way of covering the difference between 
the total revenues coming into the FBF and the total limitation 
on the expenditure from the FBF.

                             RECOMMENDATION

    The Committee recommends a direct appropriation of 
$325,711,000 into the Federal Buildings Fund, a decrease of 
$85,201,000 below the fiscal year 2002 enacted level and an 
increase of $49,311,000 above the President's request.

                      Construction and Acquisition





Limitations on Availability of Revenue (not an
 appropriation):
Limitation on availability, fiscal year 2002 enacted        $662,680,000
 to date..............................................
Limitation on availability, budget estimate, fiscal          556,574,000
 year 2003............................................
    Recommended in the bill...........................       646,385,000
Bill compared with:
    Availability limitation, fiscal year 2002 enacted        -16,295,000
 to date..............................................
    Availability limitation, fiscal year 2003 estimate       +89,811,000


                             RECOMMENDATION

    The Committee recommends a limitation of $646,385,000 for 
construction and acquisition, a decrease of $16,295,000 below 
the fiscal year 2002 enacted level and an increase of 
$89,811,000 above the President's request. Increases above the 
President's request include $49,311,000 for constructing a new 
courthouse in Cape Girardeau, Missouri, $5,000,000 for the 
Champlain border station in New York, and $40,000,000 for the 
FDA consolidation project. Decreases below the President's 
request include $2,500,000 for remediation of the southeast 
federal center and $2,000,000 for non-prospectus construction.

                      ORLANDO, FLORIDA, COURTHOUSE

    A new courthouse in Orlando, Florida, is now the highest 
unfunded priority of the courts and the General Services 
Administration's (GSA) courthouse program. The Committee fully 
understands the importance of this project and provided 
$4,000,000 for fiscal year 2002 in order to ensure that 
appropriate design work was completed in a timely fashion. The 
Committee is very disappointed that the President's request did 
not include funding for this project and that this bill was 
unable to meet the courthouse construction needs of Orlando, 
Florida. The Committee will carefully watch for opportunities 
to meet the funding requirements for this project, which is one 
of the Committee's highest priorities, as the annual 
appropriations process proceeds.

                      BORDER STATION CONSTRUCTION

    The Committee has had long-standing concerns about the 
condition and infrastructure needs of the ports of entry along 
U.S. land borders. A Committee-requested report completed in 
June 2000 by the U.S. Customs Service, in consultation with 
GSA, identified almost $800 million in unmet infrastructure 
needs at these land-based ports of entry. For fiscal year 2003, 
the President's request includes $27,366,000 in GSA's budget 
for new construction at border stations. The heightened 
security concerns, technology advancements, and personnel 
requirements that have been identified since the terrorist acts 
of September 11, 2001, bring into question the sufficiency of 
the requested border station construction projects and whether 
the designs for current and planned projects adequately meet 
all of the new physical space configuration and alignment 
needs. The Committee directs GSA to review all ongoing and 
planned border station projects to ensure that all 
requirements, particularly those recently identified, will be 
met. The Committee is aware that the Customs Service is 
evaluating the costs and benefits associated with applying a 
``reverse inspection'' pilot project along the northern border 
and directs GSA to work closely with the Customs Service in its 
deliberations as it specifically relates to infrastructure 
requirements of a ``reverse inspection'' pilot project as well 
as enhanced security measures along the Northern Border 
including, but not limited to, technology and staffing. The 
Committee is also aware of the strong potential for new border 
station needs at Fabens, Texas, associated with anticipated new 
bridge construction and directs GSA to stay abreast of the 
situation and to work with the involved agencies to ensure that 
all Federal needs are appropriately prioritized and 
incorporated into GSA's construction plans.

                        COURTHOUSE CONSTRUCTION

    The Committee remains concerned about the costs associated 
with courthouse construction. GSA recently completed a thorough 
study that compared state and federal courthouse construction 
costs. This study concludes that federal projects typically 
were 10 to 15 percent more expensive than comparable state 
projects and took on average a year longer to complete. Much of 
the cost differential between state and federal projects was 
attributable to higher levels of security required in federal 
projects and a greater durability in materials, which should 
lead to long-term savings from reduced maintenance costs. 
Another factor contributing to increased federal costs was 
federal mandates involved in construction procurement. A 
portion of the difference also resulted from significant 
differences in courthouse space standards as defined for 
federal courthouses by the US Courts Design Guide. The 
Committee notes that the area per courtroom (including judge's 
chambers and suites) averaged almost twice the size of state 
courtroom areas and suggests that this difference should be 
carefully evaluated. Additionally, federal projects took an 
average of one year more to plan, design and construct than did 
state projects; this time difference should be looked at for 
ways in which the construction process can be streamlined. The 
Committee also notes a difference in the funding amount 
included in the President's request for courthouse construction 
and the funding amount included in prospectuses submitted by 
the Administration to Congress for authorization. It is the 
intent of the Committee to appropriate project funds at the 
authorized project levels and to make whatever adjustments are 
necessary on a project basis to obtain this result as it 
proceeds.

                      CHATTANOOGA, TN, COURTHOUSE

    The Committee is acutely aware of the needs for a new 
courthouse and for renovating the current building, the Solomon 
Courthouse, in Chattanooga, Tennessee. The Committee directs 
GSA to proceed with its discussions with the city to find the 
most suitable site for the new courthouse to contain the U.S. 
District Court, the U.S. Attorney's Office, the U.S. Marshals 
Service, the U.S. Probation Office and Pretrial Services. The 
Committee is very concerned that determination and acquisition 
of the site proceed as quickly as possible and directs GSA to 
continue its evaluation and discussion process with the city 
with all due speed. As plans for the new courthouse progress, 
the Committee directs GSA to begin any necessary preliminary 
studies and plans for renovating the existing courthouse so it 
can serve the needs of the U.S. Bankruptcy Court.

                       MIAMI, FLORIDA, COURTHOUSE

    The Committee directs the General Services Administration 
to make every effort to include minority contractors, vendors, 
and employees in every phase of the design, construction, and 
operation of the new courthouse to be constructed in Miami, 
Florida. The Committee further directs the General Services 
Administration to provide a report by February 1, 2003, on its 
plans for achieving this essential objective and its progress 
to date.

                    GREEN BAY, WISCONSIN, COURTHOUSE

    The Committee is aware of the courthouse needs of 
northeastern Wisconsin. GSA recently determined that it will be 
significantly more cost effective to build a court facility in 
Green Bay rather than lease space, and a location for the 
courthouse has been selected. The Committee expects this 
project will soon be added to the Five-Year Plan of the 
Judicial Conference of the United States and looks forward to 
seeing its needs appropriately reflected in future GSA budget 
submissions for courthouse construction.

                        Repairs and Alterations





Limitations on Availability of Revenue (not an
 appropriation):
    Limitation on availability, fiscal year 2002            $869,376,000
 enacted to date......................................
    Limitation on availability, budget estimate,             986,029,000
 fiscal year 2003.....................................
    Recommended in the bill...........................       978,529,000
Bill compared with
    Availability limitation, fiscal year 2002 enacted       +109,153,000
 to date..............................................
    Availability limitation, fiscal year 2003 estimate        -7,500,000


                             RECOMMENDATION

    The Committee recommends a limitation of $978,529,000 for 
repairs and alterations, an increase of $109,153,000 above the 
fiscal year 2002 enacted level and a decrease of $7,500,000 
below the President's request. The decrease below the 
President's request is for a design project for repair of the 
Eisenhower Executive Office Building.

                  EISENHOWER EXECUTIVE OFFICE BUILDING

    The Committee is keenly aware of the deplorable condition 
of the Eisenhower Executive Office Building and the critical 
need to move forward on a major multi-year repair and 
alteration project for this property. In addition, about one-
quarter of this building was vacated after September 11, 2001, 
due to security concerns.
    The Committee is also aware that the Administration has not 
finalized its thoughts on the total scope of work for this 
project. It is the only design project included in the 
Administration's fiscal year 2003 request for funding and 
prospectus approval for which total project costs have not been 
estimated. The design funds sought by the Administration for 
fiscal year 2003 are related only to the replacement of the 
building's primary electric service; no project cost estimation 
for even this portion of the modernization effort has been 
provided.
    On March 20, 2002, the Committee was informed that the 
Administration was releasing $27,209,000 of funds appropriated 
through fiscal year 2002 emergency supplemental appropriations 
for security upgrades to this building to allow re-occupancy of 
the vacated section. The Committee is disappointed with 
information provided by the Office of Management and Budget 
(OMB) and GSA on the use of these funds. The Administration has 
yet to determine how these funds will be used, what specific 
work will be accomplished, when this work would be started or 
completed, or whether this security upgrade funding is 
sufficient to allow any part of the vacated space to be re-
occupied.
    The Committee is very concerned with the lack of clear, 
consistent, and timely decision-making by this Administration 
on this project. The Committee believes that the current lack 
of progress on planning the entire modernization effort does a 
serious disservice to the Administration and the affected 
personnel. The Committee notes that this is an historic 
structure and believes that repairs to this building are 
necessary in order to ensure its integrity as well as the 
safety of the employees who work there. The Committee expects 
the Administration to give this project the priority attention 
it deserves. Until the Committee is confident that the 
Administration has made a final decision regarding this 
modernization project, the Committee believes it would be 
premature and inappropriate to fund incomplete design efforts 
in a piecemeal fashion. Additional concerns related to this 
project are addressed in the OMB section of this report.

                     BASIC REPAIRS AND ALTERATIONS

    The Committee is strongly aware of the backlog needs for 
repairs and alterations of the federal inventory of buildings 
managed by GSA. GSA reported that the repairs and workload 
inventory was about $5.8 billion as of February 10, 2002, that 
it would take 5 to 7 years at current funding levels to reduce 
the backlog to a sustainable operational level, and that the 
average age of buildings in the inventory exceeds 50 years. At 
the same time, GSA has indicated that more than 55 percent of 
the buildings with identified repair and alteration work items 
in its inventory (657 buildings out of 1162) have repair needs 
of $1,000,000 or less. These work items are below the level 
requiring a prospectus and are generally funded out of the 
basic repairs and alterations program. The Committee is 
supportive of maintaining sufficient levels of funding for this 
activity such that relatively small repair needs can be met 
before the problems grow and require more extensive and 
expensive solutions and has provided the level requested in the 
budget, $367,340,000, for this purpose.
    The Committee is also aware of specific instances in which 
basic repairs and alterations requirements for certain 
buildings have not been adequately addressed. One such case is 
the Max Rosenn U.S. Courthouse in Wilkes-Barre, Pennsylvania; 
the Committee directs GSA to spend $300,000 for meeting the 
security and other needs of this property if requested by the 
U.S. Marshals Service.
    In several other cases, buildings with modest repair needs 
have been identified for potential disposal due to changes in 
federal space requirements. The Committee believes that such 
properties, even if they house a reduced number of federal 
tenants and are not currently economical, deserve appropriate 
levels of basic repairs and alterations funding until such a 
time that they are disposed of and other space is provided for 
the federal tenants. The Committee directs GSA to spend 
$250,000 to provide for the most pressing repair needs of the 
historic Morton federal building in Cookeville, Tennessee, 
prior to its disposal. The Committee also directs GSA to spend 
$1,000,000 to provide for the most pressing repair needs of the 
Federal Bankruptcy Court facilities in the Bow Federal Building 
in Canton, Ohio prior to its disposal.

                    Installment Acquisition Payments





Limitations on Availability of Revenue (not an
 appropriation):
    Limitation on availability, fiscal year 2002 to         $186,427,000
 date.................................................
    Limitation on availability, budget estimate,             178,960,000
 fiscal year 2003.....................................
    Recommended in the bill...........................       178,960,000
Bill compared with:
    Availability limitation, fiscal year 2002 to date.        -7,467,000
    Availability limitation, fiscal year 2003 estimate  ................


                             RECOMMENDATION

    The Committee recommends a limitation of $178,960,000 for 
installation acquisition payments, a decrease of $7,467,000 
below the fiscal year 2002 enacted level and the same as the 
President's request.

                            Rental of Space





Limitations on Availability of Revenue (not an
 appropriation):
    Limitation on availability, fiscal year 2002 to       $2,952,050,000
 date.................................................
    Limitation on availability, budget estimate,           3,153,211,000
 fiscal year 2003.....................................
    Recommended in the bill...........................     3,153,211,000
Bill compared with:
    Availability limitation, fiscal year 2002 to date.      +201,161,000
    Availability limitation, fiscal year 2003 estimate  ................


                             RECOMMENDATION

    The Committee recommends a limitation of $3,153,211,000 for 
rental of space, an increase of $201,161,000 above the fiscal 
year 2002 enacted level and the same as the President's 
request.

              NATIONAL CENTER FOR ENVIRONMENTAL PREDICTION

    The Committee is aware that GSA is working with the 
National Oceanic and Atmospheric Administration on a 
replacement lease prospectus for the National Center for 
Environmental Prediction currently located in Camp Springs, 
Maryland. The Committee expects that the lease prospectus will 
be submitted to the Transportation and Infrastructure Committee 
no later than 30 days following GSA's submission to the Office 
of Management and Budget. As this project matures, the 
Committee directs GSA to explore potential economies of scale 
associated with the ongoing Food and Drug Administration 
consolidation in White Oak, Maryland.

                          Building Operations





Limitations on Availability of Revenue (not an
 appropriation):
    Limitation on availability, fiscal year 2002 to       $1,832,761,000
 date.................................................
    Limitation on availability, budget estimate,           1,965,160,000
 fiscal year 2003.....................................
    Recommended in the bill...........................     1,925,160,000
Bill compared with:
    Availability limitation, fiscal year 2002 to date.       +92,399,000
    Availability limitation, fiscal year 2003 estimate       -40,000,000


                             RECOMMENDATION

    The Committee recommends a limitation of $1,925,160,000 for 
building operations, an increase of $92,399,000 above the 
fiscal year 2002 enacted level and a decrease of $40,000,000 
below the President's request.

                         GEOTHERMAL HEAT PUMPS

    The Committee firmly believes that geothermal heat pumps 
can provide a significant economic benefit to a wide variety of 
major GSA construction and repair projects and may lead to a 
substantial reduction in the use of fossil energy resources. 
GSA has signed a memorandum of understanding with the 
Geothermal Heat Pump Consortium, Inc., and is exploring the 
feasibility and cost-effectiveness of geothermal technology for 
a few projects. The Committee encourages GSA to more 
aggressively consider and evaluate geothermal energy technology 
in its development plans for all major new projects.

                    PUBLIC SERVICE RECOGNITION WEEK

    The Committee recognizes that Public Service Recognition 
Week, a program of the Public Employees Roundtable, has 
educated America about the value of the career workforce, which 
carries out the daily operations of government. This program, 
which has existed for over 10 years, plays an important role in 
educating our nation's youth by providing them with timely 
information about their government. The Committee urges the 
General Services Administration to support the mission of the 
Public Employees Roundtable and provides $100,000 in 
administrative and logistical assistance to Public Service 
Recognition Week activities, the same level as was provided for 
fiscal year 2002.

                       WINDOW AND CABLE STANDARDS

    The Committee urges GSA to carefully review its facility 
standards with respect to security requirements and upgrade 
them appropriately to incorporate not only newly recognized 
risks but also newly developed technologies. The Committee is 
aware that new types and classes of materials for glass windows 
and data cables can help mitigate dangers, reduce injuries, and 
lessen structural damage. The Committee believes these 
materials should be considered for use in new construction 
projects as well as in current buildings as appropriate.

                    RISKS TO BUILDING WATER SUPPLIES

    The maintenance of secure working environments for 
government employees and the assurance of the continuation of 
ongoing critical governmental operations are important GSA 
goals. The Committee encourages GSA to work with appropriate 
groups in assessing the risk of contamination of the water 
supply for federal facilities by covert introduction of 
chemical, biological, or radiological elements subsequent to 
the treatment of the water at a water treatment facility. If 
such risks are significant, the Committee urges GSA to evaluate 
the costs and benefits of options for providing effective 
security for water entering federal facilities, such as the 
installation of commercially available water purification 
systems.

                       BOW BUILDING, CANTON, OHIO

    The Committee strongly encourages the GSA to move forward 
with the ongoing discussions with representatives of the City 
of Canton, Ohio, on the property exchange involving the Frank 
T. Bow Federal Building for an adjacent City-owned site with 
the goal of finding suitable housing for federal tenants in the 
Canton area, which includes the option of building a new 
federal building.

                    USGS COASTAL AND MARINE FACILITY

    The Committee directs GSA to work closely with the United 
States Geological Survey, the University of California at Santa 
Cruz, and all other interested parties regarding the plans to 
establish a Pacific Science Center in Santa Cruz, California. 
The Committee expects GSA to fully assist the USGS in 
evaluating and planning for its facility needs in the region, 
including the use, if appropriate, of resources from the 
Federal Buildings Fund to assist in the development, planning, 
design, environmental reviews, and other related costs 
associated with the USGS Pacific Science Center.

                         Policy and Operations





Appropriation, fiscal year 2002 to date...............      $143,139,000
Budget estimate, fiscal year 2003.....................  ................
Recommended in the bill...............................  ................
Bill compared with:
    Appropriation, fiscal year 2002...................      -143,139,000
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends no appropriation for Policy and 
Operations, a decrease of $143,139,000 below the fiscal year 
2002 enacted level and the same as the President's request. The 
Committee notes that the mission and functions of this account 
are being proposed for two new accounts, ``Policy and Citizen 
Services'' and ``Operating Expenses''.

                      Policy and Citizen Services





Appropriation, fiscal year 2002 to date...............  ................
Budget estimate, fiscal year 2003.....................       $65,995,000
Recommended in the bill...............................        65,995,000
Bill compared with:
    Appropriation, fiscal year 2002...................       +65,995,000
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

    This appropriations account provides for Government-wide 
policy and evaluation activities associated with the management 
of real and personal property assets and certain administrative 
services; Government-wide policy support responsibilities 
relating to acquisition, telecommunications, information 
technology management, and related technology activities; 
providing Internet access to Federal information and services; 
and services as authorized by 5 U.S.C. 3109.

                             RECOMMENDATION

    The Committee recommends an appropriation of $65,995,000 
for Policy and Citizen Services, an increase of $65,995,000 
above the fiscal year 2002 enacted level and the same as the 
President's request. The Committee notes that the mission and 
functions of this account were previously funded through the 
GSA Policy and Operations account.

                           Operating Expenses





Appropriation, fiscal year 2002 to date...............  ................
Budget estimate, fiscal year 2003.....................       $88,263,000
Recommended in the bill...............................        77,904,000
Bill compared with:
    Appropriation, fiscal year 2002...................       +77,904,000
    Budget Estimate, fiscal year 2003.................       -10,359,000


                                MISSION

    This appropriations account provides for Government-wide 
activities associated with the utilization and donation of 
surplus personal property; disposal of real property; 
telecommunications, information technology management, and 
related technology activities; agency-wide policy direction and 
management; ancillary accounting, records management, and other 
support services; services as authorized by 5 U.S.C. 3109; and 
other related operational expenses.

                             RECOMMENDATION

    The Committee recommends an appropriation of $77,904,000 
for Operating Expenses, an increase of $77,904,000 above the 
fiscal year 2002 enacted level and a decrease of $10,359,000 
below the President's request. The Committee notes that the 
mission and functions of this account were previously funded 
through the GSA Policy and Operations account. Increases above 
the request level include $2,500,000 as a transfer to the New 
York State Historical Society for exhibits, education, 
collections, and research associated with items and events 
stemming from the September 11, 2001, terrorist attacks on the 
World Trade Center; and $150,000 as a transfer to the 
Association of Central Oklahoma Governments for establishing 
alternative fuel facilities. Decreases from the request level 
include $5,450,000 in savings realized by the non-recurrence of 
five items; a reduction of $1,123,000 associated with the 
President's pending proposal to integrate the benefits and 
administrative costs of the Federal Employees' Compensation Act 
which, to date, has not been enacted; and $6,436,000 in savings 
due to the pending transfer of Governor's Island in New York. 
In light of this transfer, the Committee has subtracted all but 
$2,146,000 in GSA's operating budget for the security and 
maintenance of the island and directs GSA to make no additional 
funding payments for this property beyond the amount provided.

                    ANGEL ISLAND IMMIGRATION STATION

    The Committee directs GSA, in consultation with the 
Department of the Interior, National Park Service, and the 
National Archives and Records Administration, to provide a 
report on efforts and plans to preserve and restore the Angel 
Island Immigration Station in California. GSA should also seek 
input from the Angel Island Immigration Station Foundation in 
developing the report. Angel Island Immigration Station is a 
national treasure that has been described as ``the Ellis Island 
of the West.'' In order to ensure that this landmark is 
appropriately cared for, the Committee seeks GSA's guidance in 
assessing and coordinating the proper role of other Federal 
agencies in moving this project forward. GSA should make a 
recommendation to the Committee on how Federal involvement in 
this project should proceed and how best private funding can be 
leveraged to augment Federal involvement. This report should be 
provide to the Committee no later than November 30, 2002.

                        IMPROVED FUEL EFFICIENCY

    The Committee is aware of commercially-available 
technologies for standard vehicles that significantly improve 
fuel efficiencies and reduce harmful emissions through fuel 
treatments and catalysts. The Committee directs GSA to explore 
the use of these technologies and directs GSA to report its 
findings to the Committee by April 1, 2003.
    The Committee is also aware that GSA has purchased a 
significant number of flexible fuel vehicles capable of 
utilizing alternative fuels. However, the Committee is 
concerned that these vehicles are not making sufficient use of 
alternative fuels. The Committee directs GSA to provide a 
report regarding what steps can be taken to maximize the actual 
use of alternative fuels in GSA fleet vehicles, and to take 
such steps as may be necessary to provide appropriate 
encouragement and support for the use of alternative fuels.

                      Office of Inspector General





Appropriation, fiscal year 2002 to date...............       $36,346,000
Budget estimate, fiscal year 2003.....................        37,617,000
Recommended in the bill...............................        37,617,000
Bill compared with:
    Appropriation, fiscal year 2002...................        +1,271,000
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $37,617,000 
for the Office of Inspector General, an increase of $1,271,000 
above the fiscal year 2002 enacted level and the same as the 
President's request.

                       Electronic Government Fund





Appropriation, fiscal year 2002 to date...............        $5,000,000
Budget estimate, fiscal year 2003.....................        45,000,000
Recommended in the bill...............................  ................
Bill compared with:
    Appropriation, fiscal year 2002...................        -5,000,000
    Budget Estimate, fiscal year 2003.................       -45,000,000


                                MISSION

    The appropriation provides support for interagency 
Electronic Government (E-Gov) initiatives that utilize the 
Internet or other electronic methods as a means to increase 
Federal Government accessibility, efficiency, and productivity.

                             RECOMMENDATION

    The Committee recommends no appropriation for the GSA 
Electronic Government Fund, a decrease of $5,000,000 below the 
fiscal year 2002 level and a decrease of $45,000,000 below the 
President's request. The Committee notes that funds for this 
function have been included in Title III of this Act within the 
Executive Office of the President under the jurisdiction of the 
Office of Management and Budget.

           Allowances and Office Staff for Former Presidents





Appropriation, fiscal year 2002 to date...............        $3,196,000
Budget estimate, fiscal year 2003.....................         3,339,000
Recommended in the bill...............................         3,339,000
Bill compared with:
    Appropriation, fiscal year 2002...................          +143,000
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $3,339,000 for 
allowances and office staff of former Presidents, an increase 
of $143,000 above the fiscal year 2002 enacted level and the 
same as the President's request.

                        FY 2003 BUDGET ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                        Ford      Carter     Reagan      Bush     Clinton     Widows     Totals
----------------------------------------------------------------------------------------------------------------
Personnel Compensation.............         96         96         96         96        150          0        534
Personnel Benefits.................         24          6         24         35         56          0        145
Benefits for Former Presidents.....        170        170        170        170        175         20        875
Travel.............................         50          2         16         58         58          0        184
Rental Payments to GSA.............        112        102        140        174        436          0        964
Communications, Utilities and
 Miscellaneous charges:
    Telephone......................         25         25         17         14         29          0        110
    Postage........................          9         20         10         14         22          2         77
Printing...........................          6          5         13         12         15          0         51
Other Services.....................         14         67         20         26         82          0        209
Supplies & Materials...............         11          6         21         11         25          0         74
Equipment..........................          4          9          3         64         36          0        116
                                    ----------------------------------------------------------------------------
      Total Obligations............        521        508        530        674      1,084         22      3,339
----------------------------------------------------------------------------------------------------------------

          General Provisions--General Services Administration

    Section 401. The Committee continues the provision that 
provides that costs included in rent received from government 
corporations for operation, protection, maintenance, upkeep, 
repair and improvement shall be credited to the Federal 
Buildings Fund.
    Section 402. The Committee continues the provision 
providing authority for the use of funds for the hire of motor 
vehicles.
    Section 403. The Committee continues the provision, with 
technical modification, providing that funds made available for 
activities of the Federal Buildings Fund may be transferred 
between appropriations with advance approval of the Congress.
    Section 404. The Committee continues the provision, with 
technical modification, prohibiting the use of funds for 
developing courthouse construction requests that do not meet 
GSA standards and the priorities of the Judicial Conference.
    Section 405. The Committee continues the provision 
providing that no funds may be used to increase the amount of 
occupiable square feet, provide cleaning services, security 
enhancements, or any other service usually provided, to any 
agency which does not pay the requested rent.
    Section 406. The Committee continues the provision 
providing for Information Technology Fund repayment from 
sponsored projects that realize program savings.
    Section 407. The Committee continues the provision that 
permits GSA to pay small claims (up to $250,000) made against 
the government.

                     Merit Systems Protection Board


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............       $30,555,000
Budget estimate, fiscal year 2003.....................        31,790,000
Recommended in the bill...............................        31,788,000
Bill compared with:
    Appropriation, fiscal year 2002...................        +1,233,000
    Budget Estimate, fiscal year 2003.................            -2,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $31,788,000 
for the Merit Systems Protection Board (MSPB), an increase of 
$1,233,000 above the amount appropriated in fiscal year 2002 
and a $2,000 decrease from the President's request. The 
decrease from the President's request is for costs associated 
with the President's pending proposal to integrate the benefits 
and administrative costs of the Federal Employees Compensation 
Act (FECA) which, to date, has not been enacted.

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


 MORRIS K. UDALL SCHOLARSHIP AND EXCELLENCE IN NATIONAL ENVIRONMENTAL 
                           POLICY TRUST FUND




Appropriation, fiscal year to date....................        $1,996,000
Budget estimate, fiscal year 2003.....................         1,996,000
Recommended in the bill...............................         1,996,000
Bill compared with:
    Appropriation, fiscal year 2002...................  ................
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

    Public Law 102-259 established the Morris K. Udall 
Scholarship and Excellence in National Environmental Policy 
Trust Fund. Federal payments to that fund are invested in 
Treasury securities. Interest earnings from the investments are 
used to carry out the activities of the Morris K. Udall 
Scholarship and Excellence in National Environmental Policy 
Foundation. The Foundation awards scholarships, fellowships, 
and grants and funds activities of the Udall Center for Studies 
in Public Policy. Public Law 106-568 (section 817) established 
the Native Nations Institute as part of the Morris K. Udall 
Scholarship and Excellence in National Environmental Policy 
Foundation. The purpose of the Native Nations Institute is to 
provide management and leadership training to Native American 
tribal leaders.

                             RECOMMENDATION

    The Committee recommends $1,996,000 for the activities of 
the Morris K. Udall Foundation, the same as the fiscal year 
2002 enacted level and the President's request.

                 Environmental Dispute Resolution Fund





Appropriation, fiscal year 2002 to date...............        $1,309,000
Budget estimate, fiscal year 2003.....................         1,309,000
Recommended in the bill...............................         1,309,000
Bill compared with:
    Appropriation, fiscal year 2002...................  ................
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $1,309,000 for 
the Environmental Dispute Resolution Fund, the same as the 
fiscal year 2002 enacted level and the same as the President's 
request.

              National Archives and Records Administration


                           OPERATING EXPENSES




Appropriation, fiscal year 2002 to date...............      $245,847,000
Budget estimate, fiscal year 2003.....................       256,731,000
Recommended in the bill...............................       249,731,000
Bill compared with:
    Appropriation, fiscal year 2002...................        +3,884,000
    Budget Estimate, fiscal year 2003.................        -7,000,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $249,731,000 
for the operating expenses of the National Archives and Records 
Administration, an increase of $3,884,000 above the fiscal year 
2002 enacted level and a decrease of $7,000,000 below the 
President's request. The reduction from the President's request 
is for the initiative to train state and local personnel in the 
handling of classified and sensitive homeland security data. 
The Committee believes that funding this effort in this account 
is premature. The directive for addressing sensitive homeland 
security information has not been issued, the specific state 
and local needs for training have not been determined, training 
options have not been fully developed, and the portion of the 
initiative aimed at ensuring that Federal agencies have 
appropriate authorities is unknown.

          COMMITMENT TO RECORDS MANAGEMENT BY FEDERAL AGENCIES

    The Committee notes that NARA recently commissioned a study 
on Federal agency records management, shares NARA's concerns 
that some agencies have not provided an appropriate priority to 
their records management programs (especially for electronic 
records), and encourages NARA to develop a strategy for raising 
agency awareness of and commitment to records management 
principles, functions, and programs. The Committee further 
urges NARA to develop a strategy for conducting systematic 
inspections of agency management programs to periodically (1) 
assess agency progress in improving records management 
programs, and (2) evaluate the efficacy of NARA's 
governmentwide guidance.

                       ELECTRONIC RECORDS ARCHIVE

    The Committee recommends $11,837,000 for the electronic 
records archive (ERA) project and makes a portion of this 
funding available for three years. To mitigate the risks 
associated with the development and acquisition of an advanced 
electronic archival system, the Committee directs NARA to 
reassess the ERA project schedule based on estimates of the 
amount of work and resources required to complete each task. 
The Committee expects the ERA project schedule to allow 
sufficient time for NARA to strengthen its information 
technology management capabilities by implementing an 
information technology investment management process, 
developing an enterprise architecture, and improving 
information security.
    Beginning on October 1, 2002, NARA shall submit to the 
Committee quarterly reports on the cost, schedule, and 
performance of the ERA project. These quarterly reports should 
provide information on the status of the project's schedule, 
budget, and expenditures as measured against a reported 
baseline; a prioritization of project risks and their 
mitigation efforts; and corrective actions taken to manage 
identified schedule slippages, cost overruns, or quality 
problems should they occur.

                          ERECORDS MANAGEMENT

    The Committee notes that NARA has been named by the 
Administration as the ``proposed agency managing partner'' for 
eRecords Management (ERM), one of 24 electronic government 
projects selected for special emphasis in the President's 
budget request for fiscal year 2003 under the quicksilver 
initiative. The Committee also notes that no funds specifically 
for the ERM effort have been included or identified in NARA's 
Congressional budget justification for fiscal year 2003. While 
the Committee does not object to NARA taking the lead for this 
project, the Committee has not given blanket approval to NARA's 
use of significant funds (particularly ERA funds) for the ERM 
project absent the approval of a reprogramming.

                        Repairs and Restoration





Appropriation, fiscal year 2002 to date...............       $40,143,000
Budget estimate, fiscal year 2003.....................        10,458,000
Recommended in the bill...............................        10,458,000
Bill compared with:
    Appropriation, fiscal year 2002...................       -29,685,000
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $10,458,000 
for repairs and restoration, a decrease of $29,685,000 below 
the fiscal year 2002 enacted level and the same as the 
President's request.

        National Historical Publications and Records Commission


                             GRANTS PROGRAM




Appropriation, fiscal year 2002 to date...............        $6,436,000
Budget estimate, fiscal year 2002.....................         5,000,000
Recommended in the bill...............................         7,000,000
Bill compared with:
    Appropriation, fiscal year 2002...................          +564,000
    Budget Estimate, fiscal year 2003.................        +2,000,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $7,000,000 for 
the National Historical Publications and Research Commission 
grants program, an increase of $564,000 above the fiscal year 
2002 enacted level and an increase of $2,000,000 above the 
President's request. The Committee is aware of a grant 
application being made by Jefferson Parish, Louisiana, Clerk of 
Court regarding historical documents and urges that this 
application be given due consideration. The Committee notes 
that the National Historic Publications and Records Commission 
has initiated an effort to encourage a greater inclusion of 
under-documented groups, such as women and minorities, in the 
grants program.

                      Office of Government Ethics


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............       $10,117,000
Budget estimate, fiscal year 2003.....................        10,488,000
Recommended in the bill...............................        10,486,000
Bill compared with:
    Appropriation, fiscal year 2002...................          +369,000
    Budget Estimate, fiscal year 2003.................            -2,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $10,486,000 
for the Office of Government Ethics, an increase of $369,000 
above the enacted fiscal year 2002 level and a $2,000 decrease 
from the President's request. The decrease from the President's 
request is for costs associated with the President's pending 
proposal to integrate the benefits and administrative costs of 
the Federal Employees Compensation Act (FECA) which, to date, 
has not been enacted.

                     Office of Personnel Management


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............       $99,636,000
Budget estimate, fiscal year 2003.....................       128,804,000
Recommended in the bill...............................       128,986,000
Bill compared with:
    Appropriation, fiscal year 2002...................       +29,350,000
    Budget Estimate, fiscal year 2003.................          +182,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $128,986,000 
for the Office of Personnel Management, an increase of 
$29,350,000 above the enacted fiscal year 2002 level and 
$182,000 above the amount requested by the President. The 
increase does not include $68,000 requested by the President 
for costs associated with the pending proposal to integrate the 
benefits and administrative costs of the Federal Employees 
Compensation Act (FECA) which, to date, has not been enacted. 
The Committee also includes a $250,000 decrease from the 
President's request for salaries and expenses of the Office of 
Congressional Affairs. The Committee's recommendation includes 
$20,800,000 for the Human Resources Data Network, $5,800,000 
for e-Government initiatives, $2,500,000 for a government-wide 
payroll modernization initiative, and $500,000 for the 
establishment of a Telecommuting Training Program designed to 
educate executive branch managers about the benefits and 
logistics of telecommuting. The Committee notes that while the 
number of telecommuters in the Federal Government has increased 
significantly, from 1 percent in 1999 to 4.2 percent in 2001, 
telecommuting rates at some federal agencies remain very low 
and manager reluctance is the most frequently cited barrier to 
telecommuting. The Committee believes that efforts could be 
made to encourage managers, through the performance planning 
and evaluation process, to assess, and where appropriate, 
create telecommuting plans for their offices and staff. The 
Committee directs that the Telecommuting Training Program 
target executive agencies where less than 2 percent of 
employees telecommute.

         FEDERAL EMPLOYEES IN BARNSTABLE COUNTY, MASSACHUSETTS

    The Committee is aware that the Federal Salary Council has 
rejected a proposal by federal employees in Barnstable County, 
Massachusetts to be considered as an area of application to the 
Boston-Worcester-Lawrence Pay Area for locality pay purposes. 
It is the Committee's understanding that Barnstable County, as 
a small county, has exceptional difficulty in meeting the 
Council's requirement that a county contain at least 2,000 
General Schedule employees to be designated an area of 
application to the pay area. It is the Committee's further 
understanding that the Council is awaiting new data from the 
2000 census before acting upon any proposed modifications to 
pay areas, and that such data may take years to produce. The 
Committee directs the Office of Personnel Management (OPM) to 
report to the Committee on its intentions regarding all 
proposals for consideration as an area of application that have 
been rejected pending new census data.

               FEDERAL PREVAILING RATE ADVISORY COMMITTEE

    The Committee is aware that the employees of the Butner Low 
Security Correctional Institute in Butner, North Carolina have 
recommended to the Federal Prevailing Rate Advisory Committee 
(FPRAC) that the facility be considered part of the Richmond-
Petersburg, Virginia wage area for wage-grade purposes. The 
Committee directs FPRAC to report to the Committee on the 
status of this recommendation and the available means of 
promoting pay parity among wage areas with similar costs of 
living.

                       FLEXIBLE SPENDING ACCOUNTS

    The Committee supported the introduction of Premium 
Conversion Plans in 2000 permitting federal employees to pay 
their health insurance premiums with pre-tax dollars. It is the 
Committee's understanding that OPM is committed to making 
Flexible Spending Accounts (FSAs) available to the federal 
workforce as well. FSAs will permit employees to also pay 
certain out-of-pocket health care and dependent care expenses 
with pre-tax dollars. The Committee is aware that most medium 
and large employers as well as the majority of state and local 
governments provide these benefits to their employees. The 
Committee believes that the extension of FSAs to the federal 
workforce will enhance the ability of the federal government to 
compete in the labor market and help address current 
recruitment and retention issues. For these reasons, the 
Committee directs OPM to report to the Committee on efforts to 
implement FSAs.

                      Office of Inspector General





Appropriation, fiscal year 2002 to date...............        $1,498,000
Budget estimate, fiscal year 2003.....................         1,498,000
Recommended in the bill...............................         1,498,000
Bill compared with:
    Appropriation, fiscal year 2002...................  ................
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $1,498,000 for 
the Office of Inspector General of the Office of Personnel 
Management, an amount equal to both the fiscal year 2002 
enacted level and the President's request.

      Government Payment for Annuitants, Employees Health Benefits





Appropriation, fiscal year 2002 to date...............    $6,129,000,000
Budget estimate, fiscal year 2003.....................     6,853,000,000
Recommended in the bill...............................     6,853,000,000
Bill compared with:
    Appropriation, fiscal year 2002...................      +724,000,000
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

    This appropriation covers: (1) the Government's share of 
the cost of health insurance for 1,851,000 annuitants as 
defined in sections 8901 and 8906 of title 5, United States 
Code; (2) the Government's share of the cost of health 
insurance for about 12,000 annuitants (who were retired when 
the Federal employees health benefits law became effective), as 
defined in the Retired Federal Employees Health Benefits Act of 
1960; and (3) the Government's contribution for payment of 
administrative expenses incurred by the Office of Personnel 
Management in administration of the act.

      Government Payment for Annuitants, Employees Life Insurance





Appropriation, fiscal year 2002 to date...............       $34,000,000
Budget estimate, fiscal year 2003.....................        34,000,000
Recommended in the bill...............................        34,000,000
Bill compared with:
    Appropriation, fiscal year 2002...................  ................
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

    This appropriation finances the Government's share of 
premiums, which is one-third the cost, for basic life insurance 
for annuitants retiring after December 31, 1989, and who are 
less than 65 years old.

        Payment to Civil Service Retirement and Disability Fund





Appropriation, fiscal year 2002 to date...............    $9,229,000,000
Budget estimate, fiscal year 2003.....................     9,410,000,000
Recommended in the bill...............................     9,410,000,000
Bill compared with:
    Appropriation, fiscal year 2002...................      +181,000,000
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

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

                       Office of Special Counsel


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............       $11,891,000
Budget estimate, fiscal year 2003.....................        12,434,000
Recommended in the bill...............................        12,432,000
Bill compared with:
    Appropriation, fiscal year 2002...................          +541,000
    Budget Estimate, fiscal year 2003.................            -2,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $12,432,000 
for the Office of Special Counsel, an increase of $541,000 
above the fiscal year 2002 enacted level and $2,000 less than 
the President's request. The decrease from the President's 
request is for costs associated with the President's pending 
proposal to integrate the benefits and administrative costs of 
the Federal Employees Compensation Act (FECA) which, to date, 
has not been enacted.

                        United States Tax Court


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............       $37,305,000
Budget estimate, fiscal year 2003.....................        37,305,000
Recommended in the bill...............................        37,305,000
Bill compared with:
    Appropriation, fiscal year 2002...................  ................
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $37,305,000 
for the U.S. Tax Court, an amount equal to both the fiscal year 
2002 level and the President's request.

      White House Commission on the National Moment of Remembrance


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2002 to date...............  ................
Budget estimate, fiscal year 2003.....................          $250,000
Recommended in the bill...............................           250,000
Bill compared with:
    Appropriation, fiscal year 2002...................          +250,000
    Budget Estimate, fiscal year 2003.................  ................


                                MISSION

    The White House Commission on the National Moment of 
Remembrance, established by Public Law 106-579, was created to 
(1) sustain the American spirit through acts of remembrance, 
not only on Memorial Day, but throughout the year; (2) 
institutionalize the National Moment of Remembrance; and (3) to 
enhance the commemoration and understanding of Memorial Day.

                             RECOMMENDATION

    The Committee recommends an appropriation of $250,000, the 
same as the level requested by the President.

                      TITLE V--GENERAL PROVISIONS


                                This Act

    Section 501. The Committee continues the provision limiting 
the expenditure of funds to the current year unless expressly 
provided in this Act.
    Section 502. The Committee continues the provision limiting 
the expenditure of funds for consulting services under certain 
conditions.
    Section 503. The Committee continues the provision 
prohibiting the use of funds to engage in activities that would 
prohibit the enforcement of section 307 of the 1930 Tariff Act.
    Section 504. The Committee continues the provision 
prohibiting the transfer of control over the Federal Law 
Enforcement Training Center out of the Department of the 
Treasury.
    Section 505. The Committee continues the provision 
concerning employment rights of Federal employees who return to 
their civilian jobs after assignment with the Armed Forces.
    Section 506. The Committee continues the provision 
concerning compliance with the Buy American Act.
    Section 507. The Committee continues the provision 
regarding the purchase of American made equipment and products.
    Section 508. The Committee continues the provision 
prohibiting contract eligibility where fraudulent intent has 
been proven in affixing ``Made in America'' labels.
    Section 509. The Committee continues the provision 
prohibiting the expenditure of funds for abortions under the 
FEHBP.
    Section 510. The Committee continues the provision that 
would authorize the expenditure of funds for abortions under 
the FEHBP if the life of the mother is in danger or the 
pregnancy is a result of an act of rape or incest.
    Section 511. The Committee continues the provision 
providing that fifty percent of unobligated balances may remain 
available for certain purposes.
    Section 512. The Committee continues the provision 
restricting the use of funds for the White House to request 
official background reports without the written consent of the 
individual who is the subject of the report.
    Section 513. The Committee continues the provision that 
cost accounting standards under the Federal Procurement Policy 
Act shall not apply to the FEHBP.
    Section 514. The Committee continues a provision regarding 
non-foreign area cost of living allowances.
    Section 515. The Committee continues a provision 
prohibiting the use of funds by any person or entity convicted 
of violating the Buy American Act.
    Section 516. The Committee includes a new provision 
prohibiting the transfer of funds in this Act to any 
department, agency, or instrumentality of the United States 
Government, except pursuant to a transfer made by, or transfer 
authority provided in, this Act or any other Appropriations 
Act.

              TITLE VI--GOVERNMENTWIDE GENERAL PROVISIONS


                Departments, Agencies, and Corporations

    Section 601. The Committee continues the provision 
authorizing agencies to pay costs of travel to the United 
States for the immediate families of Federal employees assigned 
to foreign duty in the event of a death or a life threatening 
illness of the employee.
    Section 602. The Committee continues the provision 
requiring agencies to administer a policy designed to ensure 
that all of its workplaces are free from the illegal use of 
controlled substances.
    Section 603. The Committee continues the provision 
regarding price limitations on vehicles to be purchased by the 
Federal Government.
    Section 604. The Committee continues the provision allowing 
funds made available to agencies for travel, to also be used 
for quarters allowances and cost-of-living allowances.
    Section 605. The Committee continues the provision 
prohibiting the government, with certain specified exceptions, 
from employing non-U.S. citizens whose posts of duty would be 
in the continental U.S.
    Section 606. The Committee continues the provision ensuring 
that agencies will have authority to pay GSA bills for space 
renovation and other services.
    Section 607. The Committee continues the provision allowing 
agencies to finance the costs of recycling and waste prevention 
programs with proceeds from the sale of materials recovered 
through such programs.
    Section 608. The Committee continues the provision 
providing that funds may be used to pay rent and other service 
costs in the District of Columbia.
    Section 609. The Committee continues the provision 
prohibiting payments to persons filling positions for which 
they have been nominated after the Senate has voted not to 
approve the nomination.
    Section 610. The Committee continues the provision 
prohibiting interagency financing of groups absent prior 
statutory approval.
    Section 611. The Committee continues the provision 
authorizing the Postal Service to employ guards and give them 
the same special police powers as GSA guards.
    Section 612. The Committee continues the provision 
prohibiting the use of funds for enforcing regulations 
disapproved in accordance with the applicable law of the U.S.
    Section 613. The Committee continues the provision limiting 
the pay increases of certain prevailing rate employees.
    Section 614. The Committee continues the provision limiting 
the amount of funds that can be used for redecoration of 
offices under certain circumstances.
    Section 615. The Committee continues the provision 
prohibiting the expenditure of funds for the acquisition of 
additional law enforcement training facilities.
    Section 616. The Committee continues the provision to allow 
for interagency funding of national security and emergency 
telecommunications initiatives.
    Section 617. The Committee continues the provision 
requiring agencies to certify that a Schedule C appointment was 
not created solely or primarily to detail the employee to the 
White House.
    Section 618. The Committee continues the provision 
requiring agencies to administer a policy designed to ensure 
that all workplaces are free from discrimination and sexual 
harassment.
    Section 619. The Committee continues the provision 
prohibiting the importation of any goods manufactured by forced 
or indentured child labor.
    Section 620. The Committee continues the provision 
prohibiting the payment of any employee who prohibits, 
threatens or prevents another employee from communicating with 
Congress.
    Section 621. The Committee continues the provision 
prohibiting Federal training not directly related to the 
performance of official duties.
    Section 622. The Committee continues the provision 
prohibiting the expenditure of funds for implementation of 
agreements in nondisclosure policies unless certain provisions 
are included.
    Section 623. The Committee continues the provision 
prohibiting propaganda, publicity and lobbying by executive 
agency personnel in support or defeat of legislative 
initiatives.
    Section 624. The Committee continues the provision 
prohibiting any Federal agency from disclosing an employee's 
home address to any labor organization, absent employee 
authorization or court order.
    Section 625. The Committee continues the provision 
prohibiting funds to be used to provide non-public information 
such as mailing or telephone lists to any person or 
organization outside the government without the approval of the 
Committees on Appropriations.
    Section 626. The Committee continues the provision 
prohibiting the use of funds for propaganda and publicity 
purposes not authorized by Congress.
    Section 627. The Committee continues the provision 
directing agency employees to use official time in an honest 
effort to perform official duties.
    Section 628. The Committee continues the provision, with 
technical modifications, authorizing the use of funds to 
finance an appropriate share of the Joint Financial Management 
Improvement Program.
    Section 629. The Committee continues the provision, with 
technical modifications, authorizing agencies to transfer funds 
to the Policy and Citizen Services account of GSA to finance an 
appropriate share of the Joint Financial Management Improvement 
Program.
    Section 630. The Committee continues the provision that 
permits breast feeding in a Federal building or on Federal 
property if the woman and child are authorized to be there.
    Section 631. The Committee continues the provision that 
permits interagency funding of the National Science and 
Technology Council and provides for a report on the budget and 
resources of the National Science and Technology Council. The 
report should include the entire budget of the National Science 
and Technology Council.
    Section 632. The Committee continues the provision 
requiring documents involving the distribution of Federal funds 
to indicate the agency providing the funds and the amount 
provided.
    Section 633. The Committee continues the provision to 
extend the authorization for franchise fund pilots for one year 
in order to allow the Administration to evaluate their results 
and make a decision regarding permanent authority.
    Section 634. The Committee continues the provision 
prohibiting the use of funds to monitor personal information 
relating to the use of Federal internet sites to collect, 
review, or create any aggregate list that includes personally 
identifiable information relating to access to or use of any 
federal internet site of such agency.
    Section 635. The Committee continues the provision 
requiring health plans participating in the FEHBP to provide 
contraceptive coverage and provides exemptions to certain 
religious plans.
    Section 636. The Committee continues the provision 
providing recognition of the US Anti-Doping Agency as the 
official anti-doping agency.
    Section 637. The Committee continues the provision 
requiring a report by the Inspector Generals detailing policies 
and procedures for implementing portion of the Rural 
Development Act, 1972.
    Section 638. The Committee includes a new provision 
requiring each agency to submit a report, at the time the 
President's budget is submitted, on the use of official time 
within such agency during the previous fiscal year.
    Section 639. The Committee includes a new provision 
requiring each agency to annually review all programs and 
activities that it administers and identify all such programs 
and activities that may be susceptible to significant improper 
payments.
    Section 640. The Committee includes a new provision making 
a technical correction to the 1994 Pay Act for Federal Law 
Enforcement Officers for certain series 1811 criminal 
investigators.
    Section 641. The Committee includes a new provision making 
a technical correction to the Law Enforcement Pay Equity Act of 
2000 regarding locality pay for the Uniformed Division of the 
Secret Service and the U.S. Park Police.
    Section 642. The Committee has included a new provision 
regarding the Bureau of Alcohol, Tobacco and Firearm's policy 
on releasing law enforcement database information.
    Section 643. The Committee includes a new provision 
requiring that the adjustment in rates of basic pay for the 
statutory pay systems that takes effect in fiscal year 2003 
shall be an increase of 4.1 percent.
    Section 644. The Committee includes a new provision that 
amends Title 5 of the United States Code to make Senior 
Executive Service employees of the Internal Revenue Service 
eligible for the same level of pay bonuses as all other Federal 
employees.
    Section 645. The Committee includes a new provision that 
prohibits funds in the bill from being used to issue 
regulations relating to the determination that real estate 
brokerage is an activity that is financial in nature or 
incidential to a financial activity.
    Section 646. The Committee includes a new provision that 
prohibits funds in the bill from being used for payment on any 
new federal contract to a subsidiary of a publicly traded 
corporation if the corporation is incorporated in a tax haven 
country but the United States is the principal market for the 
public trading of the corporation's stock.

    Appropriations Can Be Used Only for the Purposes for Which Made

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

                      Compliance With House Rules


                           TRANSFER OF FUNDS

    Pursuant to clause 3(f)(2), rule XIII of the Rules of the 
House of Representatives, the following is submitted describing 
the transfer of funds provided in the accompanying bill.
    The table shows, by title, department and agency, the 
appropriations affected by such transfers:

                                 APPROPRIATION TRANSFERS RECOMMENDED IN THE BILL
----------------------------------------------------------------------------------------------------------------
                                                                 Account from which transfer is
   Account to which transfer is to be made          Amount                 to be made                 Amount
----------------------------------------------------------------------------------------------------------------
Treasury Department offices, bureaus and           $68,828,000  Department-wide Systems and          $68,828,000
 other groups.                                                   Capital Investments programs.
Treasury Department offices, bureaus and             5,893,000  Departmental Offices...........        5,893,000
 other groups.
Customs, Salaries & Expenses.................        3,000,000  Harbor Maintenance Fee                 3,000,000
                                                                 Collection.
Federal Departments..........................        5,000,000  Electronic Government Fund.....        5,000,000
Federal Departments..........................      200,000,000  Election Administration Reform.      200,000,000
Treasury Department Offices, Bureaus and             4,000,000  Expanded Access to Financial           4,000,000
 other groups.                                                   Services.
Federal Departments..........................        1,350,000  Office of National Drug Control        1,350,000
                                                                 Policy.
State and local entities.....................      122,400,000  Federal Drug Programs--HIDTA...      122,400,000
Federal Departments..........................      117,600,000  Federal Drug Programs--HIDTA...      117,600,000
State and local entities.....................       29,736,000  Counterdrug Technology                29,736,000
                                                                 Assessment Center.
Federal Departments..........................       26,064,000  Counterdrug Technology                26,064,000
                                                                 Assessment Center.
Federal Departments..........................      250,800,000  Special Forfeiture Fund........      250,800,000
Merit System Protection Board................        2,594,000  Civil Service Retirement and           2,594,000
                                                                 Disability Trust Fund.
Office of Personnel Management...............      120,791,000  Trust Funds, Office of               120,791,000
                                                                 Personnel Management.
Inspector General, OPM.......................       10,766,000  Trust Funds, Office of                10,766,000
                                                                 Personnel Management.
Federal Financing Bank.......................       79,685,000  General Services                      79,685,000
                                                                 Administration, Federal
                                                                 Buildings Fund.
Treasury Department offices, bureaus and               875,000  General Services                         875,000
 other groups.                                                   Administration, Allowances and
                                                                 Office Staff for Former
                                                                 Presidents.
----------------------------------------------------------------------------------------------------------------

                          RESCISSION OF FUNDS

    In compliance with clause 3(f)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee reports that it 
recommends no rescissions in the bill.

                        CONSTITUTIONAL AUTHORITY

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives states that:
    ``Each report of a committee on a bill or joint resolution 
of a public character, shall include a statement citing the 
specific powers granted to the Congress in the Constitution to 
enact the law proposed by the bill or joint resolution.''
    The Committee on Appropriations bases its authority to 
report this legislation from Clause 7 of Section 9 of Article I 
of the Constitution of the United States of America that 
states:
    ``No money shall be drawn from the Treasury but in 
consequence of Appropriations made by law * * *''
    Appropriations contained in this Act are made pursuant to 
this specific power granted by the Constitution.

            COMPLIANCE WITH RULE XIII, CL. 3 (RAMSEYER RULE)

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

    SECTION 122 OF DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE 
        JUDICIARY, AND RELATED AGENCIES APPROPRIATIONS ACT, 1998

                          (Public Law 105-119)

  Sec. 122. (a) * * *

           *       *       *       *       *       *       *

  (g)(1) Notwithstanding any other provision of law and subject 
to paragraph (2), the Secretary of the Treasury is authorized 
to establish, for a period of [4 years] 5 years from date of 
enactment of this provision, a personnel management 
demonstration project providing for the compensation and 
performance management of not more than a combined total of 950 
employees who fill critical scientific, technical, engineering, 
intelligence analyst, language translator, and medical 
positions in the Bureau of Alcohol, Tobacco and Firearms.

           *       *       *       *       *       *       *

                              ----------                              


        SECTION 403 OF GOVERNMENT MANAGEMENT REFORM ACT OF 1994

                          (Public Law 103-356)

SEC. 403. FRANCHISE FUND PILOT PROGRAMS.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Termination.--The provisions of this section shall expire 
on October 1, [2002] 2003.
                              ----------                              


                      TITLE 5, UNITED STATES CODE

           *       *       *       *       *       *       *


                          PART III--EMPLOYEES

           *       *       *       *       *       *       *


                 CHAPTER 71--LABOR-MANAGEMENT RELATIONS

           *       *       *       *       *       *       *


          Subpart F--Labor-Management and Employee Relations

           *       *       *       *       *       *       *


           SUBCHAPTER IV--ADMINISTRATIVE AND OTHER PROVISIONS

Sec. 7131. Official time

  (a) * * *

           *       *       *       *       *       *       *

  (e)(1) Each agency shall submit to each House of the 
Congress, the Office of Personnel Management, and the Office of 
Management and Budget, at the time the budget is submitted by 
the President to the Congress in each calendar year, a report 
on the use of official time within such agency during the 
fiscal year last ending before the date of the report's 
submission.
  (2) Each such report shall include, with respect to the 
fiscal year to which it pertains--
          (A) the number of hours of official time that 
        employees spent on labor organization activities;
          (B) the number of employees who used official time 
        for labor organization activities;
          (C) the number of employees who spent 100 percent of 
        their time on labor organization activities;
          (D) the dollar value of the official time spent on 
        labor organization activities;
          (E) the dollar value of the office space, equipment, 
        telephone use, and supplies provided to employees using 
        official time for labor organization activities; and
          (F) the benefits and disadvantages of using official 
        time for labor organization activities.

           *       *       *       *       *       *       *


                        Subpart I--Miscellaneous

 CHAPTER 95--PERSONNEL FLEXIBILITIES RELATING TO THE INTERNAL REVENUE 
                                SERVICE

           *       *       *       *       *       *       *


Sec. 9505. Performance awards for senior executives

  (a) * * *

           *       *       *       *       *       *       *

  (d) Notwithstanding section 5384(b)(3), the Secretary of the 
Treasury shall determine the aggregate amount of performance 
awards available to be paid during any fiscal year under this 
section and section 5384 to career senior executives in the 
Internal Revenue Service. [Such amount may not exceed an amount 
equal to 5 percent of the aggregate amount of basic pay paid to 
career senior executives in the Internal Revenue Service during 
the preceding fiscal year.] Such amount may not exceed the 
maximum amount which would be allowable under paragraph (3) of 
section 5384(b) if such paragraph were applied by substituting 
``the Internal Revenue Service'' for ``an agency''. The 
Internal Revenue Service shall not be included in the 
determination under section 5384(b)(3) of the aggregate amount 
of performance awards payable to career senior executives in 
the Department of the Treasury other than the Internal Revenue 
Service.

           *       *       *       *       *       *       *


          FINANCIAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

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

FY 2003 new budget authority............................    $246,000,000
2003 outlays resulting therefrom........................      62,000,000

                   COMPARISON WITH BUDGET RESOLUTION

    Clause 3(c)2 of rule XIII of the Rules of the House of 
Representatives requires an explanation of compliance with 
section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, which requires that the report accompanying a bill 
providing new budget authority contain a statement detailing 
how that authority compares with the reports submitted under 
section 302 of the Act for the most recently agreed to 
concurrent resolution on the budget for the fiscal year. This 
information follows:

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  302(b) allocation            This bill--
                                                             ---------------------------------------------------
                                                                 Budget                    Budget
                                                               authority     Outlays     authority     Outlays
----------------------------------------------------------------------------------------------------------------
Discretionary...............................................       18,501       18,237       18,500       17,889
Mandatory...................................................       16,323       16,308       16,323       16,308
----------------------------------------------------------------------------------------------------------------
Note.--Outlays in ``This bill'' include outlays from prior-year budget authorizing.



         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

                      FIVE YEAR OUTLAY PROJECTIONS

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

                                                                Millions
Outlays:
    Fiscal year 2003....................................          29,825
    Fiscal year 2004....................................           3,092
    Fiscal year 2005....................................             966
    Fiscal year 2006....................................             361
    Fiscal year 2007 and future years...................             265

Note.--The above table includes mandatory and discretionary 
appropriations and excludes outlays from prior year budget authority.
---------------------------------------------------------------------------

               COMPLIANCE WITH RULE XIII, CLAUSE 3(F)(1)

    Pursuant to clause 3(f)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has inserted at the 
appropriate place in the report a description of the effects of 
provisions proposed in the accompanying bill which may be 
considered, under certain circumstances, to change the 
application of existing law, either directly or indirectly.
    The bill provides, in some instances, for funding of 
agencies and activities where legislation has not yet been 
finalized. In addition, the bill carries language, in some 
instances, permitting activities not authorized by law, or 
exempting agencies from certain provisions of law, but which 
has been carried in appropriations acts for many years. 
Additionally, the Committee includes a number of new general 
provisions.
    In title IV of the bill, in connection with the General 
Services Administration, certain limitations on availability of 
revenue in the Federal Buildings Fund and certain legislative 
provisions have been carried forward from last year.
    The bill continues a number of general provisions applying 
to agencies covered by the bill as well as certain provisions 
applying Government-wide. These provisions have been carried in 
the prior year appropriations bill, and some have been carried 
for many years. Additionally, the Committee includes a number 
of new general provisions.

                  TITLE I--DEPARTMENT OF THE TREASURY


                          Departmental Offices

    The Committee has continued language which provides funds 
for operation and maintenance of the Treasury Building and 
Annex, hire of passenger motor vehicles; maintenance, repairs, 
and improvements of, and purchase of commercial insurance 
policies for real properties leased or owned overseas; official 
travel expenses, official reception and representation 
expenses; and unforeseen emergencies of a confidential nature. 
The Committee continues language providing funds for grants to 
state and local law enforcement groups to help fight money 
laundering. The Committee includes new language regarding funds 
for Treasury-wide financial audits and the transfer of these 
funds.

        Department-Wide Systems and Capital Investments Programs

    The Committee has continued language that provides funds 
for the development and acquisition of automated data 
processing equipment, software, and services; and providing 
transfer authority.

                      Office of Inspector General

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

                Inspector General for Tax Administration

    The Committee has continued language that provides for the 
purchase and hire of motor vehicles, services by 5 U.S.C. 3109, 
travel expenses, and unforeseen emergencies.

                Air Transportation Stabilization Program

    The Committee has included language that provides funds for 
the Air Transportation Stabilization Board.

          Treasury Buildings and Annex Repair and Restoration

    The Committee has continued language that provides funds 
for the repair, alteration, and improvement of the Treasury 
Building and Annex.

                 Expanded Access to Financial Services

    The Committee has included language that provides funds for 
the Expanded Access to Financial Services account. These funds 
are made subject to the program being authorized and may be 
transferred. The Committee includes language directing that 
none of the funds shall be used (1) to provide real property, 
automated teller machines, or any other equipment for use by 
any financial institution, (2) for any program or activity that 
incurs costs in excess of $100 for each participant who is 
expected to establish an account, or (3) for any program or 
activity that does not provide at least $0.50 in non-federal 
matching funds for each $1.00 received from the Expanded Access 
to Financial Services account.

                  Financial Crimes Enforcement Network

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

                         Counterterrorism Fund

    The Committee continues and modifies language that provides 
funds for the Secretary of the Treasury to reimburse Treasury 
Department organizations for support of counterterrorism 
efforts. The Committee includes new language permitting Federal 
agencies to be reimbursed for costs incurred when responding to 
a Secret Service request to provide security for National 
Special Security Events, and modifies language to make such 
funding available only after notice of proposed use has been 
submitted to the Committees on Appropriations in accordance 
with reprogramming and transfer guidelines, and funds have been 
apportioned.

                Federal Law Enforcement Training Center

    The Committee has continued language that provides funds 
for: material and support costs of basic training; the purchase 
and hire of vehicles; student athletic and related activities; 
uniform purchases; for the conduct of and participation in 
firearms matches, and presentation of awards; room and board 
for interns; training U.S. Postal Service, State and local law 
enforcement personnel; training of foreign law enforcement 
personnel on a space available, reimbursable basis with 
discretion by the Secretary to waive reimbursement; training of 
private sector security officials on a reimbursable space 
available basis; travel expenses of non-federal personnel to 
attend course development meetings and training sponsored by 
the Center; training for the GREAT program; and the provision 
of short term medical services for students undergoing training 
at the center. It has also continued language authorizing 
acceptance of gifts, including funding of a gift for certain 
honor graduate students, and to authorize obligation of funds 
in anticipation of reimbursements from agencies receiving 
training at the Center, provided that total obligations do not 
exceed total budgetary resources at the end of the fiscal year. 
New language is included to authorize the Center to accept non-
reimbursable detailees from other Federal agencies to staff 
accreditation functions.

     Acquisition, Construction, Improvements, and Related Expenses

    The Committee has continued language for acquisition of 
necessary additional real property and facilities, and for 
ongoing maintenance, facility improvements, and related 
expenses, to remain available until expended.

                 Interagency Crime and Drug Enforcement

    The Committee has continued language funding Treasury 
participation in and contribution to regional crime and drug 
enforcement task forces.

                      Financial Management Service

    The Committee has continued language that provides that 
funds for necessary expenses of the Financial Management 
Service and provides that funds for systems modernization will 
remain available for three years.

                Bureau of Alcohol, Tobacco and Firearms

    The Committee has continued language which provides funds 
for the hire of aircraft, the services of expert witnesses, 
official reception and representation expenses, training of 
State and local law enforcement agencies, the provision of 
laboratory assistance to State and local agencies, the payment 
of attorney's fees, the equipping of certain vessels, vehicles, 
equipment or aircraft. The Committee has continued language 
that: provides that no funds shall be used to consolidate or 
centralize the records pertaining to firearms licenses; 
prohibits the payment of administrative expenses in changing 
the definition of curios or relics; prohibits the transfer of 
ATF's functions to another Federal agency; prohibiting 
electronic retrieval of information gathered pursuant to 18 
U.S.C. 923(g)(4) by name or personal identification; and 
prohibits ATF from acting upon applications for relief from 
Federal firearms disabilities. The Committee has continued 
language relating to payment of per diem and/or subsistence 
allowances to cover situations where a major investigative 
assignment requires an employee to work 16 hours or more per 
day or to remain overnight at his or her post of duty; and 
continues language providing funding for cooperative research 
and development programs for Laboratory Services and Fire 
Research Center activities. The Committee has included new 
language providing that funding for new headquarters shall 
remain available until September 30, 2004. The Committee has 
continued and modified language regarding the purchase of 
vehicles.

                     United States Customs Service


                         SALARIES AND EXPENSES

    The Committee has continued and modified language that 
provides funds for official reception and representation 
expenses, personal services contracts abroad, compensation to 
informers, rental space for pre-clearance operations, special 
operations, procurement of automation infrastructure items, 
research, uniforms, repairs to Customs facilities, and the 
child pornography tipline. The Committee continues the 
provision establishing the aggregate overtime limitation. The 
Committee has continued and modified language regarding the 
purchase and lease of vehicles.

                   HARBOR MAINTENANCE FEE COLLECTION

    The Committee has continued language relating to the 
appropriations of funds to be transferred to and merged with 
the Customs Salaries and Expenses account to be used for the 
collection of the Harbor Maintenance Fee pursuant to Public Law 
103-182.

 OPERATION, MAINTENANCE, AND PROCUREMENT, AIR AND MARINE INTERDICTION 
                                PROGRAMS

    The Committee has continued language providing funds for 
the operation and maintenance of marine vessels, aircraft and 
other equipment; operational training and mission-related 
travel; rental payments; operations for interdiction of 
narcotics and other goods; provision of support to Customs and 
other Federal, State, or local agencies in enforcement or 
administration of laws enforced by Customs; and for other law 
enforcement and emergency humanitarian efforts; and prohibiting 
transfer of certain aircraft without prior Committee approval.

                        AUTOMATION MODERNIZATION

    The Committee has continued and modified language providing 
funding for major information technology projects for the U.S. 
Customs Service, providing that funds are available until 
expended, and requiring expenditure plans.

                               U.S. Mint

    The Committee has continued language identifying the source 
of funding for the operations and activities of the U.S. Mint 
and specifying the level of funding for circulating coinage and 
protective service capital investments.

                       Bureau of the Public Debt

    The Committee has continued language that provides that 
funds may be used for reception and representation expenses and 
language that provides that a portion of the funds will remain 
available until expended. The Committee has also continued 
language that provides that appropriations from the General 
Fund will be reduced as fees are collected, and that funds are 
to be derived from the Oil Spill Liability Trust Fund for 
administration of the Fund.

                        Internal Revenue Service


                 PROCESSING, ASSISTANCE, AND MANAGEMENT

    The Committee has continued language providing funds for 
management services, rent and utilities, services authorized by 
5 U.S.C. 3109, and official reception and representation 
expenses. The Committee has modified the language concerning 
the intent of the funds to include reference to pre-filing and 
filing services and related activities. The Committee has also 
continued language providing funds for the Tax Counseling for 
the Elderly program.

                          TAX LAW ENFORCEMENT

    The Committee has continued language that provides funds 
for the purchase and hire of vehicles, and services authorized 
by 5 U.S.C. 3109. The Committee continues language concerning 
the intent of the funds to include reference to post-filing 
services and related activities. The Committee continues 
language providing that funds provided for research shall be 
available for two fiscal years.

             EARNED INCOME TAX CREDIT COMPLIANCE INITIATIVE

    The Committee has continued language providing that funds 
for earned income tax credit compliance and error reduction 
initiatives may be used to reimburse the Social Security 
Administration.

                          INFORMATION SYSTEMS

    The Committee has continued language that provides funds 
for information systems and telecommunications support and 
funds for the hire of motor vehicles.

                     BUSINESS SYSTEMS MODERNIZATION

    The Committee has continued language that provides for the 
capital asset acquisition of information technology, including 
management and related contractual costs of said acquisitions, 
including contractual costs associated with operation 
authorized by 5 U.S.C. 3109. The Committee has continued 
restrictions on the use of the funds.

          ADMINISTRATIVE PROVISIONS--INTERNAL REVENUE SERVICE

    Section 101. The Committee continues the provision that 
allows the transfer of 5 percent of any appropriation, made 
available to the IRS to any other IRS appropriation, subject to 
prior Congressional approval.
    Section 102. The Committee continues the provision that 
requires the IRS to maintain a training program in taxpayer's 
rights, dealing courteously with taxpayers, and cross cultural 
relations.
    Section 103. The Committee continues the provision that 
requires the IRS to institute policies and procedures, which 
will safeguard the confidentiality of taxpayer information.
    Section 104. The Committee continues the provision that 
requires the IRS to maintain and improve a 1-800 help line 
service for taxpayers.

                      United States Secret Service

    The Committee has continued language that provides funds 
for the hire of aircraft, services of expert witnesses, rental 
of certain buildings, improvements to buildings as may be 
necessary for protective functions, per diem and subsistence 
allowance, the conduct of firearms matches, presentation of 
awards, travel of employees on protective missions, for 
repairs, alterations, and minor construction, making grants to 
conduct behavioral research, uniforms, research reimbursement 
for protection as authorized by law, reception and 
representation expenses, assistance to foreign law enforcement 
for counterfeit investigations. The Committee has continued 
language permitting some funding for protective travel to 
remain available for two years, and language making funds 
available for activities related to the investigations of 
exploited children. The Committee has continued and modified 
language regarding the purchase and hire of vehicles. The 
Committee has continued and modified language regarding 
training for State and local law enforcement officials, and has 
included new language making funds available for training to be 
provided on a reimbursable or non-reimbursable, space-available 
basis to Postal Service and other Federal law enforcement 
officers, and on a reimbursable, space-available basis to 
foreign law enforcement officers and private security 
officials. The Committee has included new language authorizing 
the Secret Service to obligate funds in anticipation of 
reimbursements for training provided at the James J. Rowley 
Training Center, and authorizing the provision of short-term 
medical services for students at the Center.

      ACQUISITION, CONSTRUCTION, IMPROVEMENT, AND RELATED EXPENSES

    The Committee has continued language providing funds for 
the acquisition, construction, improvement, and related 
expenses of Secret Service facilities.

             General Provisions--Department of the Treasury

    Section 110. The Committee continues the provision that 
requires the Secretary of the Treasury to comply with certain 
reprogramming guidelines when obligating or expending funds for 
law enforcement activities.
    Section 111. The Committee continues the provision that 
allows the Department of the Treasury to purchase uniforms, 
insurance, and motor vehicles without regard to the general 
purchase price limitation, and enter into contracts with the 
State Department for health and medical services for Treasury 
employees in overseas locations.
    Section 112. The Committee continues the provision that 
requires expenditures of funds so as not to diminish efforts 
under the Federal Alcohol Administration Act.
    Section 113. The Committee continues the provision that 
authorizes transfers, up to 2 percent, between law enforcement 
appropriations under certain circumstances.
    Section 114. The Committee continues the provision that 
authorizes transfers, up to 2 percent, between Departmental 
Offices, Office of the Inspector General, Financial Management 
Service, and the Bureau of the Public Debt appropriations under 
certain circumstances.
    Section 115. The Committee continues the provision that 
authorizes transfer, up to 2 percent, between the Internal 
Revenue Service and the Treasury Inspector General for Tax 
Administration under certain circumstances.
    Section 116. The Committee continues the provision that 
provides that no funds may be obligated for the purchase of law 
enforcement vehicles until the Secretary of the Treasury 
certifies that the purchase is consistent with Departmental 
vehicle management principles.
    Section 117. The Committee continues the provision that 
prohibits the Department of the Treasury from undertaking a 
redesign of the $1 Federal Reserve note.
    Section 118. The Committee continues the provision that 
provides for transfers from and reimbursements to the Salaries 
and Expenses appropriation of the Financial Management Service 
for the purposes of debt collection.
    Section 119. The Committee includes a new provision that 
extends the pilot project for designated critical occupations 
for one additional year.
    Section 120. The Committee continues the provision that 
requires authorization for the construction and operation of a 
museum by the United States Mint.
    Section 121. The Committee continues the provision that 
prohibits funds made available through this Act from being used 
for the production of Customs Declarations that do not inquire 
whether the passenger had been in the proximity of livestock.
    Section 122. The Committee includes a new provision that 
directs the Federal Law Enforcement Training Center to 
establish an accrediting body to set standards for measuring 
and assessing the quality and effectiveness of Federal law 
enforcement training.

                        TITLE II--POSTAL SERVICE


                   Payment to the Postal Service Fund

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

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


        Compensation of the President and the White House Office

    The Committee has continued language that mandates that 
unused amounts of the President's expense allowance will revert 
to the Treasury and not be taxable to the President and which 
provides funds for service authorized by 5 U.S.C. 3109, 
subsistence expenses, hire of vehicles, newspapers, 
periodicals, teletype news service, travel, and official 
entertainment expenses. The Committee has continued language 
making funds available for reimbursement to the White House 
Communications Agency.

                      Office of Homeland Security

    The Committee has included new language that provides funds 
for the Office of Homeland Security, pursuant to Executive 
Order 13288.

                 Executive Residence at the White House

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

                  White House Repairs and Restoration

    The Committee has continued language that provides funds 
for the repair, alteration, and improvement of the Executive 
Residence at the White House.

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

    The Committee has continued language that provides funds 
for operation and maintenance of the official residence of the 
Vice President, the hire of vehicles, official entertainment 
expenses and provides for the transfer of funds as necessary. 
The Committee has continued language that enables the Vice 
President to provide assistance to the President, services 
authorized by 5 U.S.C. 3109, subsistence, and the hire for 
vehicles.

                      Council of Economic Advisers

    The Committee has continued language that provides funds 
for the expenses of the Council of Economic Advisers.

                      Office of Policy Development

    The Committee has continued language that provides funds 
for expenses of the Office of Policy Development.

                       National Security Council

    The Committee has continued language that provides funds 
for expenses of the National Security Council.

                        Office of Administration

    The Committee has continued language that provides funds 
for expenses of the Office and the hire of vehicles and funds 
for a capital investment plan that provides for the continued 
modernization of the information technology infrastructure. The 
Committee has continued and modified language regarding 
information technology within the Executive Office of the 
President, requiring the submission of a report that includes a 
current description of (1) the Enterprise Architecture, as 
defined in OMB Circular A-130 and Federal Chief Information 
Officer guidance; (2) the Information Technology (IT) Human 
Capital Plan; (3) the capital investment plan for implementing 
the Enterprise Architecture; and (4) the IT capital planning 
and investment control process. The Committee has continued and 
modified language requiring that this report be reviewed and 
approved by OMB and reviewed by the General Accounting Office.

                    Office of Management and Budget

    The Committee has continued language that provides funds 
for expenses, the hire of vehicles, carrying out provisions of 
chapter 35 of 44 U.S.C., directs that funds shall be applied 
only to items for which appropriations were made, prohibits the 
review of agricultural marketing orders and the alteration of 
certain testimony. The Committee has continued language funding 
a representational allowance and has continued language 
prohibiting the use of funds for the purpose of OMB 
calculating, preparing, or approving any tabular or other 
material that proposes the sub-allocation of budget authority 
or outlays by the Committees on Appropriations.

                       Electronic Government Fund

    The Committee continues language previously included in 
Title IV of the bill that provides funds for necessary expenses 
in support of interagency projects that enable the Federal 
Government to expand its ability to conduct activities 
electronically through the development and implementation of 
innovative uses of the Internet and other electronic methods. 
The Committee continues language that allows funds to be 
transferred, upon condition, and to be available until 
expended.

                     Election Administration Reform

    The Committee has included new language providing funds to 
implement the provisions of pending authorizing legislation to 
establish election administration reform. This account shall be 
used to transfer funds to those Federal entities that may be 
authorized by such legislation. The Committee includes a 
provision authorizing one-time payments to those states which 
had obtained optical scan or electronic voting equipment for 
the administration of elections for Federal office in the State 
prior to the regularly scheduled general election for Federal 
office held in November 2000.

                 Office of National Drug Control Policy

    The Committee has continued language that provides funds 
for expenses, research, official reception and representation 
expenses, participation in joint projects, and allows for the 
acceptance of gifts. The Committee has continued language 
providing funds for model state drug law conferences and policy 
research and evaluation and making these funds available until 
expended. The Committee has included new language withholding a 
certain amount of funds from obligation until the Director 
submits performance measures of effectiveness for the High 
Intensity Drug Trafficking Areas (HIDTA) program to the 
Committee. The Committee has also included new language 
requiring that the fiscal year 2004 budget submission for the 
HIDTA program be supported by performance measures of 
effectiveness and include supporting justification for each 
individual HIDTA as well as an optimal allocation for each 
HIDTA based on the same measures.

                Counterdrug Technology Assessment Center

    The Committee has continued language that provides funds 
for counternarcotics research and development and the 
technology transfer program.

                     Federal Drug Control Programs


             HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM

    The Committee has continued language that provides a 
certain level of funding for drug control activities for State, 
local and Federal drug control efforts, and requires obligation 
of funds within a specified period of time. The Committee 
continues language regarding the availability of funds.

                        SPECIAL FORFEITURE FUND

    The Committee has continued language that provides a 
certain level of funding for the Drug-Free Media Campaign Act, 
for the Drug-Free Communities Act, and to provide a grant to 
the National Drug Court Institute, and for the Counterdrug 
Intelligence Executive Secretariat and the US Anti-Doping 
Agency. The Committee has included new language providing 
funding for performance measures development and for membership 
dues to the World Anti-Doping Agency. The Committee has also 
included new language requiring that a certain amount of funds 
for the national media campaign be spent on media buys.

                     TITLE IV--INDEPENDENT AGENCIES


 Commission for Purchase From People Who Are Blind or Severely Disabled

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

                      Federal Election Commission

    The Committee has continued language that provides funds 
for expenses of the Commission and specifying a level of 
funding for internal automated data processing systems and 
reception and representation expenses.

                   Federal Labor Relations Authority

    The Committee has continued language that provides funds 
for the expenses of the authority, including authorized 
services, hire of experts and consultants, hire of passenger 
motor vehicles, and rental of conference rooms in the District 
of Columbia and elsewhere. The Committee has also continued 
provisions on compensation for public members of the Federal 
Service Impasse Panel and of the use of fees charged to 
participants at labor-management relations conferences.

                    General Services Administration


                         FEDERAL BUILDINGS FUND

    The Committee has continued language dealing with the 
conditions under which funds made available to the Federal 
Buildings Fund can be used and has designated certain projects 
that can be undertaken. Many technical provisions have been 
included regarding use of funds in the Federal Buildings Fund 
that are not specifically authorized by law.
    The Committee has continued language to limit funds 
available for construction and repair and alteration of 
building projects not authorized by law. A more detailed 
analysis of the Federal Buildings Funds can be found in the 
General Services Administration chapter of this report.

                      POLICY AND CITIZEN SERVICES

    The Committee includes new language that provide funds for 
expenses for Government-wide policy and evaluation activities 
associated with the management of real and personal property 
assets and certain administrative services; Government-wide 
policy support responsibilities relating to acquisition, 
telecommunications, information technology management, and 
related technology activities; and providing Internet access to 
Federal Information and services.

                           OPERATING EXPENSES

    The Committee includes new language the provides funds for 
expenses for Government-wide activities associated with 
utilization and donation of surplus personal property; disposal 
of real property; telecommunications, information technology 
management, and related technology activities; agency-wide 
policy direction and management, and Board of Contract Appeals; 
accounting, records management, and other support services 
incident to adjudication of Indian Tribal Claims by the United 
States Court of Federal Claims; and official reception and 
representation expenses. A portion of the funds are made 
available until expended.

                      OFFICE OF INSPECTOR GENERAL

    The Committee has continued language that provides funds 
for services authorized by 5 U.S.C. 3109 and expenses for the 
Office, payment for information and detection of fraud, and 
awards.

           ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS

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

          GENERAL PROVISIONS--GENERAL SERVICES ADMINISTRATION

    Section 401. The Committee continues the provision that 
provides that costs included in rent received from government 
corporations for operation, protection, maintenance, upkeep, 
repair and improvement shall be credited to the Federal 
Buildings Fund.
    Section 402. The Committee continues the provision 
providing authority for the use of funds for the hire of motor 
vehicles.
    Section 403. The Committee continues the provision 
providing that funds made available for activities of the 
Federal Buildings Fund may be transferred between 
appropriations with advance approval of the Congress.
    Section 404. The Committee continues the provision 
prohibiting the use of funds for developing courthouse 
construction requests that do not meet GSA standards and the 
priorities of the Judicial Conference.
    Section 405. The Committee continues the provision 
providing that no funds may be used to increase the amount of 
occupiable square feet, provide cleaning services, security 
enhancements, or any other service usually provided, to any 
agency which does not pay the requested rent.
    Section 406. The Committee continues the provision 
providing for Information Technology Fund repayment from 
sponsored projects that realize program savings.
    Section 407. The Committee continues the provision that 
permits GSA to pay small claims (up to $250,000) made against 
the government.

                     Merit Systems Protection Board

    The Committee has continued language that provides funds 
for the Board, including the rental of conference rooms in the 
District of Columbia and elsewhere, the hire of passenger motor 
vehicles, and the direct procurement of survey printing.

              National Archives and Records Administration


                           OPERATING EXPENSES

    The Committee has continued language that provides funds 
for the review and declassification of documents, the hire of 
passenger vehicles, and language that authorizes the Archivist 
to use excess funds available from the amount borrowed for 
construction of the National Archives facility for expenses 
necessary to provide storage for holdings. The Committee 
continues language specifying funds for the electronic records 
archive and making a portion of these funds available until 
September 30, 2005.

                        REPAIRS AND RESTORATION

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

                      Office of Government Ethics

    The Committee has continued language that provides funds 
for the Office, including the rental of conference rooms in the 
District of Columbia and elsewhere, the hire of passenger motor 
vehicles, and official reception and representation expenses.

                     Office of Personnel Management

    The Committee has continued language that provides for 
expenses of the Office, services authorized by 5 U.S.C. 3109, 
medical examinations under certain conditions, rental of 
conference rooms, hire of passenger motor vehicles, official 
reception and representation expenses, advances for 
reimbursement per diem and/or subsistence allowances for 
employees affected by Voting Rights Act activities, transfers 
to appropriate trust funds, prohibition of funds for the Legal 
Examining Unit, authority to accept donations for the White 
House Fellows program, and making funds available until 
expended for automating retirement record keeping. The 
Committee has continued language making funding available until 
expended for a government-wide human resources data network. 
The Committee has included new language making funding 
available until expended for leading the government-wide 
payroll modernization initiative.

                      Office of Inspector General

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

      GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEE HEALTH BENEFITS

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

       GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEE LIFE INSURANCE

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

        PAYMENT TO CIVIL SERVICE RETIREMENT AND DISABILITY FUND

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

                       Office of Special Counsel

    The Committee has continued language that provides funds 
for the Office, including the payment of fees and expenses for 
witnesses, rental of conference rooms, and the hire of 
passenger motor vehicles.

                        United States Tax Court

    The Committee has continued language that provides funds 
for services authorized by 5 U.S.C. 3109 and language which 
provides that travel expenses of the judges shall be paid upon 
written certification of the judge.

      White House Commission on the National Moment of Remembrance

    The Committee has included new language funding the White 
House Commission on the National Moment of Remembrance.

                      TITLE V--GENERAL PROVISIONS


                                This Act

    Section 501. The Committee continues the provision limiting 
the expenditure of funds to the current year unless expressly 
provided in this Act.
    Section 502. The Committee continues the provision limiting 
expenditure of funds for consulting services under certain 
conditions.
    Section 503. The Committee continues the provision 
prohibiting the use of funds to engage in activities that would 
prohibit the enforcement of section 307 of the 1930 Tariff Act.
    Section 504. The Committee continues the provision 
prohibiting the transfer of control over the Federal Law 
Enforcement Training Center out of the Department of the 
Treasury.
    Section 505. The Committee continues the provision 
concerning employment rights of Federal employees who return to 
their civilian jobs after assignment with the Armed Forces.
    Section 506. The Committee continues the provision 
concerning compliance with the Buy American Act.
    Section 507. The Committee continues the provision 
regarding the purchase of American made equipment and products.
    Section 508. The Committee continues the provision 
prohibiting contract eligibility where fraudulent intent has 
been proven in affixing ``Made in America'' labels.
    Section 509. The Committee continues the provision 
prohibiting the expenditure of funds for abortions under the 
FEHBP.
    Section 510. The Committee continues the provision that 
would authorize the expenditure of funds for abortions under 
the FEHBP if the life of the mother is in danger or the 
pregnancy is a result of an act of rape or incest.
    Section 511. The Committee continues the provision 
providing that fifty percent of unobligated balances may remain 
available for certain purposes.
    Section 512. The Committee continues the provision 
restricting the use of funds for the White House to request 
official background reports without the written consent of the 
individual who is the subject of the report.
    Section 513. The Committee continues the provision that 
cost accounting standards under the Federal Procurement Policy 
Act shall not apply to the FEHBP.
    Section 514. The Committee continues a provision regarding 
nonforeign area cost of living allowances.
    Section 515. The Committee continues a provision 
prohibiting the use of funds by any person or entity convicted 
of violating the Buy American Act.
    Section 516. The Committee includes a new provision 
prohibiting the transfer of funds in this Act to any 
department, agency, or instrumentality of the United States 
Government, except pursuant to a transfer made by, or transfer 
authority provided in, this Act or any other Appropriations 
Act.

              TITLE VI--GOVERNMENTWIDE GENERAL PROVISIONS


                Departments, Agencies, and Corporations

    Section 601. The Committee continues the provision 
authorizing agencies to pay costs of travel to the United 
States for the immediate families of Federal employees assigned 
to foreign duty in the event of a death or a life threatening 
illness of the employee.
    Section 602. The Committee continues the provision 
requiring agencies to administer a policy designed to ensure 
that all of its workplaces are free from the illegal use of 
controlled substances.
    Section 603. The Committee continues the provision 
regarding price limitations on vehicles to be purchased by the 
Federal Government.
    Section 604. The Committee continues the provision allowing 
funds made available to agencies for travel, to also be used 
for quarters allowances and cost-of-living allowances.
    Section 605. The Committee continues the provision 
prohibiting the government, with certain specified exceptions, 
from employing non-U.S. citizens whose posts of duty would be 
in the continental U.S.
    Section 606. The Committee continues the provision ensuring 
that agencies will have authority to pay GSA bills for space 
renovation and other services.
    Section 607. The Committee continues the provision allowing 
agencies to finance the costs of recycling and waste prevention 
programs with proceeds for the sale of materials recovered 
through such programs.
    Section 608. The Committee continues the provision 
providing that funds may be used to pay rent and other service 
costs in the District of Columbia.
    Section 609. The Committee continues the provision 
prohibiting payments to persons filing positions for which they 
have been nominated after the Senate has voted not to approve 
the nomination.
    Section 610. The Committee continues the provision 
prohibiting interagency financing of groups absent prior 
statutory approval.
    Section 611. The Committee continues the provision 
authorizing the Postal Service to employ guards and give them 
the same special policy powers as GSA guards.
    Section 612. The Committee continues the provision 
prohibiting the use of funds for enforcing regulations 
disapproved in accordance with the applicable law of the U.S.
    Section 613. The Committee continues the provision limiting 
the pay increase of certain prevailing rate employees.
    Section 614. The Committee continues the provision limiting 
the amount of funds that can be used for redecoration of 
offices under certain circumstances.
    Section 615. The Committee continues the provision 
prohibiting the expenditure of funds for the acquisition of 
additional law enforcement training facilities.
    Section 616. The Committee continues the provision to allow 
for interagency funding of national security and emergency 
telecommunications initiatives.
    Section 617. The Committee continues the provision 
requiring agencies to certify that a Schedule C appointment was 
not created solely or primarily to detail the employee to the 
White House.
    Section 618. The Committee continues the provision 
requiring agencies to administer a policy designed to ensure 
that all workplaces are free from discrimination and sexual 
harassment.
    Section 619. The Committee continues the provision 
prohibiting the importation of any goods manufactured by forced 
or indentured child labor.
    Section 620. The Committee continues the provision 
prohibiting the payment of any employee who prohibits, 
threatens or prevents another employee from communicating with 
Congress.
    Section 621. The Committee continues the provision 
prohibiting Federal training not directly related to the 
performance of official duties.
    Section 622. The Committee continues the provision 
prohibiting the expenditure of funds for implementation of 
agreements in nondisclosure policies unless certain provisions 
are included.
    Section 623. The Committee continues the provision 
prohibiting propaganda, publicity and lobbying by executive 
agency personnel in support or defeat of legislative 
initiatives.
    Section 624. The Committee continues the provision 
prohibiting any Federal agency from disclosing an employee's 
home address to any labor organization, absent employee 
authorization or court order.
    Section 625. The Committee continues the provision 
prohibiting funds to be used to provide non-public information 
such as mailing or telephone lists to any person or 
organization outside the government without the approval of the 
Committees on Appropriations.
    Section 626. The Committee continues the provision 
prohibiting the use of funs for propaganda and publicity 
purposes not authorized by Congress.
    Section 627. The Committee continues the provision 
directing agency employees to use official time in an honest 
effort to perform official duties.
    Section 628. The Committee continues the provision, with 
technical modifications authorizing the use of funds to finance 
an appropriate share of the Joint Financial Management 
Improvement Program.
    Section 629. The Committee continues the provision, with 
technical modifications, authorizing agencies to transfer funds 
to the Policy and Citizen Services account of GSA to finance an 
appropriate share of the Joint Financial Management Improvement 
Program.
    Section 630. The Committee continues the provision that 
permits breast feeding in a Federal building or on Federal 
property if the woman and child are authorized to be there.
    Section 631. The Committee continues the provision that 
permits interagency funding of the National Science and 
Technology Council and provides for a report on the budget and 
resources of the National Science and Technology Council. The 
report should include the entire budget of the National Science 
and Technology Council.
    Section 632. The Committee continues the provision 
requiring documents involving the distribution of Federal funds 
to indicate the agency providing the funds and the amount 
provided.
    Section 633. The Committee continues the provision to 
extend the authorization for franchise fund pilots for one year 
in order to allow the Administration to evaluate their results 
and make a decision regarding permanent authority.
    Section 634. The Committee continues the provision 
prohibiting the use of funds to monitor personal information 
relating to the use of Federal internet sites to collect, 
review, or create any aggregate list that includes personally 
identifiable information relating to access to or use of any 
federal internet site of such agency.
    Section 635. The Committee continues the provision 
requiring health plans participating in the FEHBP to provide 
contraceptive coverage and provides exemptions to certain 
religious groups.
    Section 636. The Committee continues the provision 
providing recognition of the US Anti-Doping Agency as the 
official anti-doping agency.
    Section 637. The Committee continues the provision 
requiring a report by the Inspector General detailing policies 
and procedures for implementing portion of the Rural 
Development Act, 1972.
    Section 638. The Committee includes a new provision 
requiring each agency to submit a report at the time the 
Presidents budget is submitted, on the use of official time 
within such agency during the previous fiscal year.
    Section 639. The Committee includes a new provision 
requiring each agency to annually review all programs and 
activities that it administers and identify all such programs 
and activities that may be susceptible to significant improper 
payments.
    Section 640. The Committee includes a new provision making 
a technical correction to the 1994 Pay Act for Federal Law 
Enforcement Officers for certain series 1811 criminal 
investigators.
    Section 641. The Committee includes a new provision making 
a technical correction to the Law Enforcement Pay Equity Act of 
2000 regarding locality pay for the Uniformed Division of the 
Secret Service and the U.S. Park Police.
    Section 642. The Committee has included a new provision 
regarding the Bureau of Alcohol, Tobacco and Firearm's policy 
on releasing law enforcement database information.
    Section 643. The Committee includes a new provision 
requiring that the adjustment in rates of basic pay for the 
statutory pay systems that takes effect in fiscal year 2003 
shall be an increase of 4.1 percent.
    Section 644. The Committee includes a new provision that 
amends Title 5 of the United States Code to make Senior 
Executive Service employees of the Internal Revenue Service 
eligible for the same level of pay bonuses as all other Federal 
employees.
    Section 645. The Committee includes a new provision that 
prohibits funds in the bill from being used to issue 
regulations relating to the determination that real estate 
brokerage is an activity that is financial in nature or 
incidental to a financial activity.
    Section 646. The Committee includes a new provision that 
prohibits funds in the bill from being used for payment on any 
new federal contract to a subsidiary of a publicly traded 
corporation if the corporation is incorporated in a tax haven 
country but the United States is the principal market for the 
public trading of the corporation's stock.

                    DETAILED EXPLANATIONS IN REPORT

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

                  APPROPRIATIONS NOT AUTHORIZED BY LAW

    Pursuant to clause 3(f)(1) of rule XIII of the House of 
Representatives, the following table lists the appropriations 
in the accompanying bill that are not authorized by law:

                                      APPROPRIATIONS NOT AUTHORIZED BY LAW
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                           Appropriations in
                                    Last year of     Authorization level      last year of     Appropriations in
                                   authorization                             authorization         this bill
----------------------------------------------------------------------------------------------------------------
Department Wide Systems and     NA.................  NA.................  NA.................        $68,828,000
 Capital Investments Program.
Air Transportation              NA.................  NA.................  NA.................         $6,041,000
 Stabilization Program.
Treasury Building and Annex     NA.................  NA.................  NA.................        $32,932,000
 Repair and Restoration.
Expanded Access to Financial    NA.................  NA.................  NA.................         $4,000,000
 Services.
Financial Crimes Enforcement    NA \1\.............  NA.................  NA.................        $51,444,000
 Network.
Counterterrorism Fund.........  NA.................  NA.................  NA.................        $33,000,000
Federal Law Enforcement         NA \2\.............  NA.................  NA.................       $184,800,000
 Training Center, Salaries and
 Expenses and Acquisition,
 Construction, Improvement and
 Related Expenses.
Interagency Crime and Drug      NA.................  NA.................  NA.................       $110,594,000
 Enforcement.
Bureau of Alcohol, Tobacco and  NA \3\.............  NA.................  NA.................       $891,034,000
 Firearms, except those
 activities related to the
 enforcement of tobacco
 smuggling and regulation of
 explosives.
US Customs Service (except      1992...............  Such sums..........  $1,484,084,000.....     $3,125,497,000
 Harbor Maintenance Fee).
Office of Management and        ...................  ...................  ...................         $7,001,000
 Budget, Office of Information
 and Regulatory Affairs.
Executive Office of the         NA.................  NA.................  NA.................         $5,000,000
 President, Electronic
 Government Fund.
Election Administration Reform  NA.................  NA.................  NA.................       $200,000,000
ONDCP, Salaries and Expenses,   NA.................  NA.................  NA.................         $1,000,000
 Model State Drug Laws.
Counter Technology Assessment   NA.................  NA.................  NA.................        $29,736,000
 Center Technology Transfer.
Special Forfeiture Fund         NA.................  NA.................  NA.................        $10,800,000
 (except Media Campaign and
 Drug Free Communities).
Federal Election Commission...  1981...............  $9,400,000.........  $9,662,000.........        $49,426,000
Office of Government Ethics...  1999...............  Such sums..........  $8,492,000.........        $10,486,000
----------------------------------------------------------------------------------------------------------------
\1\ Established pursuant to Treasury Order 105-08.
\2\ Established pursuant to Treasury Order 140-01.
\3\ Established pursuant to Treasury Order 120-01, 120-02, and 120-03.

                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:
                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             ROLLCALL NO. 1

    Date: July 9, 2002.
    Measure: Treasury, Postal Service, and General Government 
Appropriations Bill, FY 2003.
    Motion by: Mrs. Meek.
    Description of Motion: To strike and replace bill and 
report language related to the account, ``Expanded Access to 
Financial Services''.
    Results: Rejected 25 yeas to 33 nays.
        Members Voting Yea            Members Voting Nay
Mr. Boyd                            Mr. Aderholt
Mr. Clyburn                         Mr. Bonilla
Mr. Cramer                          Mr. Callahan
Ms. DeLauro                         Mr. Cunningham
Mr. Dicks                           Mr. Doolittle
Mr. Edwards                         Mrs. Emerson
Mr. Farr                            Mr. Frelinghuysen
Mr. Fattah                          Mr. Goode
Mr. Hinchey                         Ms. Granger
Mr. Hoyer                           Mr. Istook
Mr. Jackson                         Mr. Kingston
Ms. Kaptur                          Mr. Knollenberg
Mr. Kennedy                         Mr. Kolbe
Mrs. Lowey                          Mr. LaHood
Mrs. Meek                           Mr. Latham
Mr. Mollohan                        Mr. Lewis
Mr. Moran                           Mr. Miller
Mr. Obey                            Mr. Nethercutt
Mr. Pastor                          Mrs. Northup
Mr. Price                           Mr. Peterson
Mr. Rothman                         Mr. Regula
Ms. Roybal-Allard                   Mr. Rogers
Mr. Sabo                            Mr. Sherwood
Mr. Serrano                         Mr. Skeen
Mr. Visclosky                       Mr. Sununu
                                    Mr. Sweeney
                                    Mr. Taylor
                                    Mr. Tiahrt
                                    Mr. Vitter
                                    Mr. Wamp
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young
                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             ROLLCALL NO. 2

    Date: July 9, 2002.
    Measure: Treasury, Postal Service, and General Government 
Appropriations Bill, FY 2003.
    Motion by: Ms. DeLauro.
    Description of Motion: To prohibit the use of funds for 
payment on any new contract to a subsidiary of a publicly 
traded corporation if the corporation is incorporated in a tax 
haven country but the United States is the principal market for 
the public trading of the corporation's stock.
    Results: Adopted 41 yeas to 17 nays.
        Members Voting Yea            Members Voting Nay
Mr. Aderholt                        Mr. Bonilla
Mr. Boyd                            Mr. Callahan
Mr. Cramer                          Mr. Cunningham
Ms. DeLauro                         Mr. Doolittle
Mr. Dicks                           Mr. Frelinghuysen
Mr. Edwards                         Mr. Istook
Mrs. Emerson                        Mr. Kingston
Mr. Farr                            Mr. Knollenberg
Mr. Fattah                          Mr. Kolbe
Mr. Goode                           Mr. LaHood
Ms. Granger                         Mr. Lewis
Mr. Hinchey                         Mr. Miller
Mr. Hobson                          Mr. Nethercutt
Mr. Hoyer                           Mr. Taylor
Mr. Jackson                         Mr. Tiahrt
Ms. Kaptur                          Mr. Vitter
Mr. Kennedy                         Mr. Young
Ms. Kilpatrick                      Mr. LaHood
Ms. Kilpatrick
Mr. Latham
Mrs. Lowey
Mrs. Meek
Mr. Mollohan
Mr. Moran
Mrs. Northup
Mr. Obey
Mr. Peterson
Mr. Price
Mr. Regula
Mr. Rogers
Mr. Rothman
Ms. Roybal-Allard
Mr. Sabo
Mr. Serrano
Mr. Sherwood
Mr. Skeen
Mr. Sununu
Mr. Sweeney
Mr. Visclosky
Mr. Wamp
Mr. Wicker
Mr. Wolf
                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:

                             ROLLCALL NO. 3

    Date: July 9, 2002.
    Measure: Treasury, Postal Service, and General Government 
Appropriations Bill, FY 2003.
    Motion by: Mr. Moran.
    Description of Motion: To prohibit the use of funds to 
establish, apply, or enforce any numerical goal, target, or 
quota related to private sector competitions or private 
contractor performance under OMB Circular A-76.
    Results: Rejected 26 yeas to 30 nays.
        Members Voting Yea            Members Voting Nay
Mr. Boyd                            Mr. Aderholt
Mr. Cramer                          Mr. Bonilla
Ms. DeLauro                         Mr. Callahan
Mr. Dicks                           Mr. Cunningham
Mr. Edwards                         Mr. Doolittle
Mrs. Emerson                        Mr. Frelinghuysen
Mr. Farr                            Mr. Goode
Mr. Fattah                          Ms. Granger
Mr. Hinchey                         Mr. Hobson
Mr. Hoyer                           Mr. Istook
Mr. Jackson                         Mr. Kingston
Ms. Kaptur                          Mr. Knollenberg
Mr. Kennedy                         Mr. Kolbe
Ms. Kilpatrick                      Mr. LaHood
Mrs. Lowey                          Mr. Latham
Mrs. Meek                           Mr. Lewis
Mr. Mollohan                        Mr. Miller
Mr. Moran                           Mr. Nethercutt
Mr. Obey                            Mrs. Northup
Mr. Price                           Mr. Peterson
Mr. Rothman                         Mr. Regula
Ms. Roybal-Allard                   Mr. Rogers
Mr. Sabo                            Mr. Sherwood
Mr. Serrano                         Mr. Skeen
Mr. Visclosky                       Mr. Taylor
Mr. Wolf                            Mr. Tiahrt
                                    Mr. Vitter
                                    Mr. Wamp
                                    Mr. Wicker
                                    Mr. Young

                                  
