[Senate Report 107-212]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 498
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-212

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



 
        TREASURY AND GENERAL GOVERNMENT APPROPRIATION BILL, 2003
                                _______
                                

                 July 17, 2002.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 2740]

    The Committee on Appropriations reports the bill (S. 2740) 
making appropriations for the Treasury Department, the United 
States Postal Service, the Executive Office of the President, 
and certain Independent Agencies for the fiscal year ending 
September 30, 2003, and for other purposes, reports favorably 
thereon and recommends that the bill do pass.

Amount of bill as reported to the Senate................ $34,766,450,000
Amount of estimate......................................  34,276,277,000
The bill as reported to the Senate:
    Above the appropriations provided in 2002...........   1,052,088,000
    Above the estimates for 2003........................     490,173,000


                            C O N T E N T S

                              ----------                              
                                                                   Page
General statement and summary of bill............................     3
Accrual funding of retirement cost and post-retirement health 
  benefits.......................................................     4
Agency fees for FECA Administration..............................     5
Title I--Department of the Treasury..............................     6
Title II--United States Postal Service...........................    48
Title III--Executive Office of the President and Funds 
  Appropriated to the President..................................    51
Title IV--Independent Agencies:
    Committee for Purchase From People Who Are Blind or Severely 
      Disabled...................................................    66
    Federal Election Commission..................................    66
    Federal Labor Relations Authority............................    67
    General Services Administration..............................    67
    Merit Systems Protection Board...............................    79
    Morris K. Udall Scholarship and Excellence in National 
      Environmental Policy Foundation............................    79
    National Archives and Records Administration.................    80
    National Historical Publications and Records Commission......    82
    Office of Government Ethics..................................    83
    Office of Personnel Management...............................    84
    Office of Special Counsel....................................    88
    U.S. Tax Court...............................................    88
    White House Commission on the National Moment of Remembrance.    89
Statement concerning general provisions..........................    90
Title V--General provisions, this act............................    91
Title VI--General provisions, departments, agencies, and 
  corporations...................................................    93
Compliance with paragraph 7, rule XVI, of the Standing Rules of 
  the Senate.....................................................    96
Compliance with paragraph 7(c), rule XXVI of the Standing Rules 
  of the Senate..................................................    97
Compliance with paragraph 12, rule XXVI of the Standing Rules of 
  the Senate.....................................................    98
Budget impact....................................................    99
Comparative statement............................................   100

               GENERAL STATEMENT AND SUMMARY OF THE BILL

    The accompanying bill contains recommendations for new 
budget (obligational) authority for the Treasury Department, 
the United States Postal Service, the Executive Office of the 
President, and certain independent agencies for the fiscal year 
ending September 30, 2003.
    The Committee considered budget estimates for fiscal year 
2003 in the aggregate amount of $34,276,277,000. Compared to 
that amount, the accompanying bill recommends new budget 
authority totaling $34,766,450,000.

                       reprogramming requirements

    The Committee is concerned about the number of 
reprogramming requests submitted by agencies for congressional 
review. Agencies are again reminded that only those requests 
which meet the reprogramming criteria listed below will be 
considered, that reprogramming should be reserved for critical 
circumstances, and that reprogramming proposals will not be 
considered, except in extraordinary circumstances, if received 
45 or fewer days prior to the end of the fiscal year.
    The reprogramming guidelines to be used to determine 
whether or not a reprogramming shall be submitted to the 
Committee for prior approval are as follows:
          1. 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 of 
        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 Senate Committee on Governmental 
Affairs 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.
    The authorizing committee has not acted on this 
legislation, therefore the Senate Appropriations Committee has 
reduced the dollar amounts of the President's request shown in 
the ``Comparative Statement of New Budget Authority Request and 
Amounts Recommended in the Bill'', as well as in other tables 
in this report, to exclude the accrual funding proposal.
    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 subsequently transmitted to the 
Congress.
    The Senate Appropriations Committee joins with the House 
Appropriations Committee in raising concern 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.

                  AGENCY FEES FOR FECA ADMINISTRATION

    The President's budget included a legislative proposal 
under the jurisdiction of the Senate Committee on Health, 
Education, Labor, and Pensions to charge individual agencies, 
starting in fiscal year 2003, the administrative cost of the 
Federal Employees' Compensation Act (FECA) program. Currently 
Federal agencies are budgeted for and billed each year for 
monetary and medical benefits that have been paid to their 
employees under FECA, while the program's discretionary 
administrative costs are financed in the Department of Labor 
(DOL).
    The authorizing committee has not acted on this 
legislation; therefore, the Senate Appropriations Committee 
will continue to fund this administrative cost through the 
Department of Labor, Employment Standards Administration 
Salaries and Expenses Account.

                  TITLE I--DEPARTMENT OF THE TREASURY

      Homeland Security and the Future of Treasury Law Enforcement

    The tragic events of September 11, 2001 brought clearly 
into focus the need for a significant restructuring of 
Executive Branch agencies to provide a more cohesive and 
integrated delivery of services and protection for the American 
people. Numerous Government and private sector studies had 
recommended over the years that functions such as border 
security, currently spread between a number of Federal 
departments, be consolidated within a single department.
    After appointing Governor Tom Ridge to the post of 
Assistant to the President and Director of Homeland Security, a 
function funded in this bill, President Bush resisted calls by 
Members of Congress of both parties to allow his new Director 
to testify before the Congress. Additionally, until recently, 
he opposed the suggestions by many in Congress that a new 
Department of Homeland Security needed to be formed to address 
future threats to the Nation's security.
    On June 6, 2002 the President announced his intention to 
create the Department of Homeland Security so eagerly sought by 
many on the Hill. The Committee applauds the President for his 
vision and looks forward to working with him and the 
appropriate authorizing committees on the creation of this new 
department as well as to the smooth transition to the 
consolidation of its many parts.
    Regarding the affected agencies under jurisdiction of this 
subcommittee, we note that both the Customs Service and the 
Secret Service would be transferred from the Department of the 
Treasury to the new Department of Homeland Security under the 
President's proposal. Both agencies have long and proud 
traditions within the Department of the Treasury. The Customs 
Service was created in 1789 and has had a dual function as both 
a revenue raiser as well as a border protector. The Secret 
Service was created by President Lincoln to protect the 
Nation's currency and only gained its role as official 
protector of the President after the assassination of President 
McKinley.
    While not attempting to ``second guess'' the recommendation 
to move these agencies to the new department, the proposal 
significantly reduces the Department of the Treasury's law 
enforcement function and requires the consideration that 
perhaps other Treasury law enforcement agencies should also be 
housed within the new department. The Committee is concerned 
that the Department of the Treasury's traditional treatment of 
its law enforcement components as second class citizens may 
only become aggravated by the proposed recommendations. The 
Committee is committed to ensuring that those agencies 
remaining within the Department of the Treasury receive the 
full support at the departmental level that they so richly 
deserve and urges the Department to make their critical law 
enforcement functions a priority in budgetary and other 
matters.

                          Departmental Offices

                         salaries and expenses

Appropriations, 2002....................................    $177,142,000
Budget estimate, 2003...................................     191,914,000
Committee recommendation................................     195,100,000

    The Committee recommends an appropriation of $195,100,000 
for salaries and expenses for departmental offices of the 
Department of the Treasury, which is $3,186,000 above the 
President's request. The increase above the President's request 
includes $1,213,000 for pay parity, and $2,000,000 for 
counterfeit currency technology.
    The Departmental Offices function in the Department of the 
Treasury is to provide basic support to the Secretary of the 
Treasury, who is the chief operating executive of the 
Department. The Secretary of the Treasury maintains the primary 
role in formulating and managing the domestic and international 
tax and financial policies of the Federal Government. The 
Secretary's responsibilities funded by the Salaries and 
Expenses appropriation include: recommending and implementing 
United States domestic and international economic and tax 
policy; fiscal policy; governing the fiscal operations of the 
Government; maintaining foreign assets control; managing the 
public debt; overseeing major law enforcement functions carried 
out by the Department of the Treasury; managing development 
financial policy; representing the United States on 
international monetary, trade and investment issues; overseeing 
Department of the Treasury's overseas operations; and directing 
the administrative operations of the Department of the 
Treasury.
    In support of the Secretary, the Salaries and Expenses 
appropriation provides resources for policy formulation and 
implementation in the areas of domestic and international 
financial, investment, tax, economic, trade and financial 
operations and general fiscal policy. This appropriation also 
provides resources for administrative support to the Secretary 
and policy components, and coordination of Departmental 
administrative policies in financial and personnel management, 
procurement operations, and automated information systems and 
telecommunications.
    Economic Policies and Programs.--The function of the 
Economic Policies and Programs Activity is to advise the 
Secretary and Deputy Secretary in economic areas such as: (1) 
monitors macro-and micro-economic developments and assists in 
determining appropriate economic policies; collects and 
analyzes data pertaining to international portfolio investment 
and foreign exchange positions; develops an overall appraisal 
of the current state of, and outlook for the economy; provides 
written and oral briefing materials for the Secretary, other 
officials, and outsiders; participates in interagency groups 
working on economic matters to develop and maintain a 
coordinated and consistent government-wide economic program; 
and (2) the formulation and execution of U.S. international 
economic and financial policies regarding a wide range of 
international development and analysis functions involving: 
trade and investment, energy policy, monetary affairs, 
development financing, and general economic research into 
international financial issues. The Office of International 
Affairs works closely with other Federal agencies and 
international financial institutions, and coordinates 
international financial and macro-economic policy with the 
National Economic Council (Annual Economic Summit), the 
National Security Council, the Council of Economic Advisors, 
the Office of Management and Budget (foreign country risk 
review), the United States Trade Representative (financial 
services, investment, etc.), and all components of the 
Executive Office of the President. Under Presidential Executive 
Order, the Office of International Affairs participates with 
the Department of State in the collection and analysis of 
economic information on foreign countries. In the areas of 
international monetary and foreign exchange policy, the Office 
of International Affairs shares responsibility with the Federal 
Reserve (principally, the Board of Governors, but also the 
Federal Reserve Bank of New York) in working closely with the 
International Monetary Fund. In the area of international 
development, the Office of International Affairs formulates 
resource needs, notably U.S. contributions, policies and 
programs for various Multilateral Development Banks. With the 
Export-Import Bank, the Office of International Affairs has 
responsibility for export credit finance. This activity 
includes the Office of the Assistant Secretary (Economic 
Policy), the immediate offices of the Under Secretary 
(International Affairs), the Assistant Secretary (International 
Affairs) and the Office of International Affairs.
    Financial Policies and Programs.--The function of the 
Financial Policies and Programs Activity is to advise the 
Secretary and Deputy Secretary in areas of domestic finance, 
banking, fiscal policy and operations, and other related 
financial matters, including development of policies and 
guidance in the areas of financial institutions, Federal debt 
finance, financial regulation, and capital markets. 
Specifically, this activity ensures that the management of the 
Federal Government's cash minimizes risk and strikes a balance 
between cash needs and short-term investments. This activity 
provides decision makers and stakeholders with: (1) timely, 
concise and thorough policies, guidance and analysis in the 
areas of: financial institutions, financial regulation, the 
equitable and efficient delivery of financial services, the 
availability of credit, financial crimes, Federal debt finance, 
capital markets, the privatization of government assets, and 
any other issues related to domestic finance and financial 
services; and (2) recommendations regarding the development and 
implementation of tax policies and programs; official estimates 
of all Government receipts for the President's Budget, fiscal 
policy decisions, and cash management decisions; policy 
criteria reflected in regulations and rulings to implement the 
Internal Revenue Code; negotiation of tax treaties for the 
United States; and provides economic and legal policy analysis 
for domestic and international tax policy decisions. This 
activity includes the immediate office of the Under Secretary 
(Domestic Finance), the Assistant Secretary (Financial 
Institutions), the Assistant Secretary (Financial Markets), the 
Fiscal Assistant Secretary, and the Deputy Assistant Secretary 
for Community Development Policy and the Assistant Secretary 
(Tax Policy).
    Enforcement Policies and Programs.--The function of the 
Enforcement Policies and Programs activity is to provide policy 
development, guidance and coordination to Treasury's law 
enforcement entities to combat money laundering and other 
financial crime, interdict illegal drugs, reduce violent crime, 
protect our nation's leaders, and provide quality training for 
enforcement personnel. Responsibilities include: (1) providing 
Departmental oversight and supervision of U.S. Customs Service, 
U.S. Secret Service, Federal Law Enforcement Training Center, 
Financial Crimes Enforcement Network, Bureau of Alcohol, 
Tobacco, and Firearms, and Executive Office of Asset 
Forfeiture; and (2) negotiating international agreements on 
behalf of the Secretary to engage in joint law enforcement 
operations for the exchange of financial information and 
records. The Office of Enforcement administers economic 
sanctions against selective foreign countries, international 
narcotics traffickers and international terrorists in 
furtherance of U.S. foreign policy and national security goals. 
This activity includes the immediate offices of the Under 
Secretary for Enforcement and the Assistant Secretary 
(Enforcement), including the Office of Foreign Assets Control.
    Treasury-wide Management Policies and Programs.--The 
Treasury-wide Management Policies and Programs Activity 
provides policy advice on matters involving the internal 
management of the Department and its bureaus; coinage and 
currency production and security; the sale and retention of 
savings bonds; financial management, information systems, 
security, property management, human resources, procurement and 
contracting, strategic planning; and customer service. This 
activity is responsible for implementing the functions of the 
Chief Financial Officer (CFO), the Government Performance 
Results Act (GPRA), and the Information Technology Management 
Reform Act which includes efficient and effective use of the 
Treasury's resources. This activity includes the Office of the 
Assistant Secretary (Management) and Chief Financial Officer 
and the Treasurer of the United States.
    Treasury-wide Financial Statement Audit.--This activity has 
responsibility for contracting and funding all financial 
statement audit work that will be done by the Office of the 
Inspector General (OIG). The OIG would streamline the process, 
provide costs savings and accountability for getting these 
audits done, and ensure timeliness and consistency of financial 
statement audits in the Department. The audits would include 
those of the Customs Service, the Financial Management Service, 
the Bureau of Public Debt, the Federal Financing Board, the 
Bureau of Alcohol, Tobacco, and Firearms, the Community 
Development Financial Institutions, and the Departmental 
Offices.

                        TREASURY FRANCHISE FUND

    The Committee recognizes the success of Treasury's efforts 
to improve the quality and lower the cost of financial and 
administrative services. Accordingly, the need to have 
continuity in service delivery to current customers and to 
continuously improve operations and achieve further 
efficiencies in administrative support functions requires a 
permanent footing. Therefore, the Committee has included a new 
provision to permanently extend the Treasury Franchise Fund.

                    COUNTERFEIT CURRENCY TECHNOLOGY

    The Committee notes that the war on terrorism and the war 
on drugs have demonstrated the importance of tracking the flows 
of currency. The Department of the Treasury has several offices 
that track, target, and block the financial transactions and 
assets of terrorists, narcotics traffickers, foreign countries, 
and others that pose a threat to our national security and 
economy, as well as offices that work with domestic and foreign 
financial markets. The Department of the Treasury, working in 
conjunction with the Department of State, the Department of 
Justice, and other agencies has been able to identify terrorist 
groups that may be funding possible actions against the United 
States at home and abroad. In order to better serve these 
critical missions, the Committee has included $2,000,000 for 
the Secretary to create a grant program, the goals of which 
will be to provide for a demonstration project that will test 
the utility of using new technologies to help identify the size 
of the universe of counterfeit currency and better understand 
the circulation patterns of currency. The Committee believes 
that such a demonstration project will allow for the assessment 
of the utility of such technology to law enforcement, counter-
terrorism, narcotics interdiction, and other homeland security 
activities.

                CHICAGO POLICE DEPARTMENT CLEAR PROGRAM

    The Committee is aware of an innovative program, created by 
the Chicago Police Department, designed to partner with the 
Department of the Treasury to implement improved information 
sharing between criminal justice agencies at the local, state, 
and Federal level--Citizen/Law Enforcement Analysis and 
Reporting (CLEAR). In addition to violent crimes, the CLEAR 
program will address financial and drug crimes, as well as 
other law enforcement functions under the jurisdiction of the 
Department and its related agencies. The Committee directs the 
Department to work with the Chicago Police Department to 
further develop and implement this important program and has 
included $150,000, from within existing funds, for this 
project.

                    OFFICE OF FOREIGN ASSETS CONTROL

    The Committee provides that the Office of Foreign Assets 
Control (OFAC) be funded at no less than $21,206,000. The 
Committee is encouraged by the level of funding detail offered 
by Treasury in its budget justifications for its Enforcement 
programs, and regards this as an assurance that OFAC's direct 
costs will be properly covered as shown, and that 
administrative overhead resources are fairly allocated. The 
Committee requests that similar explanatory tables be provided 
in future justifications.
    The Committee understands that license applications 
submitted to agencies at other departments, such as the 
Department of Commerce, are resolved in a reasonable period of 
time. The Committee believes that all license applications 
submitted to OFAC should be resolved expeditiously, but in no 
case no later than 90 calendar days after receipt of the 
completed license application.
    The Committee has included a new general provision 
directing OFAC, whenever it decides to deny a license 
application, to notify the applicant of the denial in writing. 
The notification shall include:
  --(1) The statutory and regulatory basis for the denial;
  --(2) To the extent consistent with the national security of 
        the United States, the specific considerations that led 
        to the decision to deny the license application;
  --(3) What, if any, modification or restrictions to the 
        license application would allow OFAC to reconsider the 
        license application;
  --(4) The name, phone number and e-mail address of the OFAC 
        representative in a position to discuss the issues with 
        the applicant.

        Department-wide Systems and Capital Investments Program

Appropriations, 2002....................................     $68,828,000
Budget estimate, 2003...................................      68,828,000
Committee recommendation................................      68,828,000

    The Committee has provided a total of $68,828,000. The 1997 
Treasury and General Government Appropriations Act established 
this account which is authorized to be used by or on behalf of 
Treasury bureaus, at the Secretary's discretion, to modernize 
business processes and increase efficiency through technology 
investments, as well as other activities that involve more than 
one Treasury bureau or Treasury's interface with other 
governmental agencies.
    The Committee has been made aware of the inadequate funding 
requested by the Department of the Treasury for the projects 
under this program for the past couple of years. The Committee 
is also aware of the importance of the timelines for completion 
of these projects. The Committee urges the Department to 
provide the necessary funding in fiscal year 2004 to avoid 
delays and potential cost overruns for these projects.

                    Office of the Inspector General


                         SALARIES AND EXPENSES

Appropriations, 2002....................................     $35,424,000
Budget estimate, 2003...................................      35,428,000
Committee recommendation................................      35,736,000

    The Committee recommends an appropriation of $35,736,000 
for salaries and expenses of the Office of the Inspector 
General (OIG). The Committee supports the creation of an 
official representational account and provides $2,500 out of 
existing funds for that purpose. The increase above the 
President's request is for pay parity.
    The OIG conducts and supervises audits, evaluations, and 
investigations designed to: (1) promote economy, efficiency, 
and effectiveness and prevent fraud, waste and abuse in 
Departmental programs and operations; and (2) keep the 
Secretary and the Congress fully and currently informed of 
problems and deficiencies in the administration of Departmental 
programs and operations. The audit function provides program 
audit, contract audit and financial statement audit services. 
Contract audits provide professional advice to agency 
contracting officials on accounting and financial matters 
relative to negotiation, award, administration, repricing, and 
settlement of contracts. Program audits review and audit 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. 
These audits contribute significantly to improved financial 
management by helping Treasury managers identify improvements 
needed in their accounting and internal control systems. The 
evaluations function reviews program performance and issues 
critical to the mission of the Department, including assessing 
the Department's implementation of the Government Performance 
and Results Act (GPRA). The investigative function provides for 
the detection and investigation of improper and illegal 
activities involving programs, personnel, and operations. This 
appropriation also provides for the oversight of 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.
    The Inspectors General Auditor Training Institute provides 
the necessary facilities, equipment, and support services for 
conducting auditor training for the Federal Government 
Inspector General community. The Office of the Inspector 
General is the parent organization for this entity, although 
program and financing data is reported under the Treasury 
Franchise fund (effective in 1999).

           TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

Appropriations, 2002....................................    $125,778,000
Budget estimate, 2003...................................     123,962,000
Committee recommendation................................     125,011,000

    The Committee recommends an appropriation of $125,011,000. 
The increase above the President's request is for pay parity.
    The Treasury Inspector General for Tax Administration 
(TIGTA) conducts audits, investigations, and evaluations to 
assess the operations and programs of the Internal Revenue 
Service (IRS) and Related Entities, the IRS Oversight Board and 
the Office of Chief Counsel 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, and keep the Secretary and the 
Congress fully and currently informed of these issues and the 
progress made in resolving them. TIGTA reviews existing and 
proposed legislation and regulations relating to the programs 
and operations of the IRS and Related Entities and makes 
recommendations concerning the impact of such legislation and 
regulations on the economy and efficiency in the administration 
of programs and operations of the IRS and Related Entities. The 
audit function provides program audit, contract audit and 
financial statement audit services. Program audits review and 
audit all facets of IRS and Related Entities. Contract audits 
provide professional advice to IRS contracting officials on 
accounting and financial matters relative to negotiation, 
award, administration, repricing, and settlement of contracts. 
The evaluations function reviews program performance and issues 
critical to the mission of the IRS. The investigative function 
provides for the detection and investigation of improper and 
illegal activities involving IRS programs and operations and 
protects the IRS and Related Entities against external attempts 
to corrupt or threaten their employees.
    The Treasury Inspector General for Tax Administration was 
established by the IRS Restructuring and Reform Act of 1998 
(Public Law 105-206). Funding was first appropriated for this 
account in the fiscal year 2000 Treasury and General Government 
Appropriations Act (Public Law 106-58).

                AIR TRANSPORTATION STABILIZATION PROGRAM

Appropriations, 2002....................................................
Budget estimate, 2003...................................      $6,041,000
Committee recommendation................................       6,041,000

    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.''

           TREASURY BUILDING AND ANNEX REPAIR AND RESTORATION

Appropriations, 2002....................................     $28,932,000
Budget estimate, 2003...................................      32,932,000
Committee recommendation................................      32,932,000

    The Committee recommends an appropriation of $32,932,000 
for the repair and restoration of the Treasury Building and 
Annex. This appropriation funds repairs and selected 
improvements to maintain the Main Treasury and Annex buildings. 
This recommendation is $4,000,000 above the fiscal year 2002 
level and equal to the budget estimate.

                  Financial Crimes Enforcement Network

Appropriations, 2002....................................     $47,537,000
Budget estimate, 2003...................................      50,517,000
Committee recommendation................................      50,825,000

    The Committee recommends an appropriation of $50,825,000 
for the Financial Crimes Enforcement Network (FinCEN), which is 
$308,000 above the President's request. The increase above the 
President's request is for pay parity.
    FinCEN, created in 1990 and elevated to bureau status in 
2001, supports law enforcement investigations to prevent and 
detect money laundering and other financial crimes. FinCEN's 
network links law enforcement, financial, and regulatory 
communities into a single information-sharing network. Using 
Bank Secrecy Act (BSA) information reported by banks and other 
financial institutions, FinCEN serves as the nation's central 
clearinghouse for broad-based financial intelligence and 
information sharing on money laundering. This information helps 
illuminate the financial trail for investigators to follow as 
they track criminals and their assets.
    Investigative Analysis, Regulatory, and International 
Activities.--Through investigative analysis efforts, FinCEN 
provides support for the investigation and prosecution of law 
enforcement cases at the Federal, State, local and 
international levels, using financial data collected under the 
BSA, as well as other commercial and law enforcement 
information. FinCEN serves as a catalyst for research, 
analysis, and dissemination of information on money laundering 
methods and trends through joint case analysis with law 
enforcement, integration of all source information and the 
application of state-of-the-art data processing techniques. In 
the regulatory area, FinCEN establishes policies to administer 
the BSA effectively while balancing the associated burden 
imposed on the regulated financial institutions. 
Internationally, FinCEN maintains in-depth, country-specific 
expertise concerning money laundering and other financial 
crimes around the world to assist decision makers in developing 
and promoting U.S. government anti-money laundering policies. 
FinCEN also uses this expertise to promote the development of 
Financial Intelligence Units (FIUs) in other countries, and to 
facilitate investigative exchanges with them.
    Money Services Business (MSB) Regulatory Program.--This 
program supports new requirements to strengthen anti-money 
laundering controls within the money services business 
industry. The term `MSB' is used to define over 200,000 
entities that act as money transmitters, issuers, redeemers and 
sellers of money orders and travelers checks, check cashers and 
currency exchanges. This largely unregulated industry is 
required to register with the Department of the Treasury by 
June 30, 2002. The Department of the Treasury has also issued a 
final regulation that, for the first time, extends suspicious 
activity reporting requirements to money transmitter, travelers 
check, and money order segments of the industry in 2002. In 
order to properly implement these regulations, FinCEN has 
undertaken a major public outreach project that is designed to 
identify and educate members of the money service business 
industry concerning the requirements of these new regulations.
    USA Patriot Act.--FinCEN is responsible for implementing 23 
of the 44 provisions contained in Title III of the USA Patriot 
Act, which provides new authorities and opportunities to 
support law enforcement investigative efforts and foster 
interagency cooperation against domestic and international 
financial crime. FinCEN also has a key role in many of the 
working groups established by the Department of the Treasury to 
address the other provisions. These responsibilities include 
developing regulatory programs to meet many of the provisions, 
establishing a highly secure network for electronic filing of 
Bank Secrecy Act reports, strengthening cooperation between 
financial institutions and the law enforcement communities, and 
enhancing strategic analysis in areas such as alternate 
remittances systems.

                        TREASURY FORFEITURE FUND

    The Treasury forfeiture fund was established on October 1, 
1993, in Public Law 102-393. It is available to pay or 
reimburse certain costs and expenses related to seizures and 
forfeitures that occur pursuant to the Treasury Department's 
law enforcement activities. It has two accounts, one which is 
funded through permanent indefinite authority and the other 
which is funded through a direct annual appropriation. The 
direct appropriation represents the annual congressional 
limitation on the use of the proceeds from seized and forfeited 
assets. Forfeited cash and the proceeds of forfeited monetary 
instruments are deposited into the fund. Proceeds from the sale 
of other seized and forfeited assets are also deposited into 
the fund.

                 Expanded Access to Financial Services

Appropriations, 2002....................................      $2,000,000
Budget estimate, 2003...................................       2,000,000
Committee recommendation................................       2,000,000

    The Committee has provided $2,000,000 for Expanded Access 
to Financial Services. The account continues funding to develop 
and implement a program to expand access to financial services 
to low-and moderate-income individuals who do not currently 
utilize bank accounts or other financial service opportunities. 
The Department of Treasury will develop and assist in funding 
private sector provision of low-cost electronic accounts and 
access to ATMs as a way of encouraging greater efficiency and 
access to the financial service system; conduct research on the 
financial services needs of low- and moderate-income persons; 
and assist in funding financial education for low- and 
moderate-income individuals.
    The Committee recommends that funds be obligated to 
continue the two projects initiated in fiscal year 2001. The 
Committee also urges the Department to work with, and consider 
an application for a project under this account from, the 
Passaic County (New Jersey) Legal Aid Society.

                         Counterterrorism Fund

Appropriations, 2002....................................     $40,000,000
Budget estimate, 2003...................................      40,000,000
Committee recommendation................................      40,000,000

    The Committee has provided $40,000,000 for the 
Counterterrorism Fund, which is equal to the budget estimate. 
These funds are provided for responding to unforseen 
emergencies not budgeted for in the regular process. These 
funds are to be made available upon the advance approval of the 
Committees on Appropriations.
    The Counterterrorism Fund is designed to cover 
unanticipated costs associated with: (1) providing support to 
counter, investigate, or prosecute domestic or international 
terrorism, including payment of rewards in connection with 
these activities; and (2) re-establishing the operational 
capability of an office, facility or other property damaged or 
destroyed as a result of any domestic or international 
terrorist incident. Treasury bureaus have important 
counterterrorism responsibilities including: protecting the 
President; designing and implementing security at National 
Special Security Events; investigating arson, explosives and 
firearms incidents; conducting financial investigations 
relating to terrorism; preventing weapons of mass destruction 
from entering our country; and implementing sanctions against 
terrorist organizations. Funds would be reimbursed to Treasury 
bureaus of departmental offices to compensate for costs 
incurred in areas such as travel, transportation, rentals and 
communications, print and graphics, other services, supplies, 
equipment, and unvouchered funds.

                Federal Law Enforcement Training Center


                         SALARIES AND EXPENSES

Appropriations, 2002....................................    $128,680,000
Budget estimate, 2003...................................     122,393,000
Committee recommendation................................     126,441,000

    The Committee recommends an appropriation of $126,441,000 
for salaries and expenses of the Federal Law Enforcement 
Training Center (FLETC), an increase of $4,048,000 above the 
President's request including $621,000 for pay parity.
    FLETC provides the necessary facilities, equipment, and 
support services for conducting recruit, advanced, specialized, 
and refresher training for Federal law enforcement personnel. 
FLETC personnel conduct the instructional programs for the 
basic recruit and some of the advanced training. This 
appropriation is for operating expenses of FLETC, for research 
in law enforcement training methods, and curriculum content. In 
addition, FLETC 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, local, and foreign law enforcement personnel on a space-
available basis.
    The Committee has included funding to ensure that FLETC can 
meet the demands of agencies for training their personnel as 
they continue to hire additional personnel.
    The Committee has again included a general provision 
(section 615) to permit FLETC to acquire the temporary use of 
additional training facilities without seeking the advance 
approval otherwise required by that section.

                          OFF-CAMPUS TRAINING

    The Committee continues to support the FLETC mission to 
provide basic technical assistance to State and local law 
enforcement agencies. Therefore, the Committee provides funding 
for the travel expenses of non-Federal personnel to attend 
course development meetings and training. In addition, the 
Committee continues to authorize FLETC to obtain temporary use 
of additional facilities by lease, contract, or other agreement 
for training which cannot be accommodated in existing Center 
facilities. In making these decisions, the Committee believes 
every consideration should be given to providing training in 
the most cost effective manner.

                    RURAL LAW ENFORCEMENT EDUCATION

    The Committee recognizes the successful collaboration 
between the National Center for State and Local Training at 
FLETC and the Minot State University (MSU) Rural Crime and 
Justice Center to expand the Small Town and Rural Law 
Enforcement training series in the Northern Plains States and 
for related rural law enforcement research. The validated 
success of this collaboration at a regional level leads the 
Committee to conclude that the project should be expanded and 
conducted on a nationwide basis. Empirical research findings 
from the Northern Plains project have indicated that evaluation 
of rural law enforcement training results in higher quality and 
more relevant training practices, significantly changing how 
rural law enforcement officers perform their official duties. 
The Committee recognizes that it is not unusual to have only 
one law enforcement officer in a rural area, which underscores 
the significance of the training and evaluation, and the need 
to expand the program nationwide. In addition to funding 
included in the base, the Committee has provided $1,500,000 to 
the national center and $1,500,000 for MSU to expand on the 
current program and conduct the research and evaluative 
component of this national initiative.

                LAW ENFORCEMENT VEHICLE PURSUIT TRAINING

    The Committee recognizes the importance of evaluating the 
effectiveness of the vehicle pursuit training program that 
FLETC has conducted nationwide with law enforcement executives. 
To conduct this assessment, the Committee has included an 
additional $500,000 to FLETC for the Minot State University 
Rural Crime and Justice Center to provide a comprehensive 
evaluation/assessment of the effectiveness of the training and 
to provide recommendations for curriculum revision, training 
delivery methods, and program policy modifications.

                      FEDERAL AIR MARSHAL TRAINING

    The Committee commends the men and women of the Federal Law 
Enforcement Training Center for their outstanding service to 
the nation, the law enforcement community and the traveling 
public. Immediately following the tragic terrorist attacks of 
September 11, 2001, FLETC and the Federal Aviation 
Administration (FAA) collaborated to meet the challenge of 
training large numbers of Federal Air Marshals to protect the 
United States aviation industry on an expedited basis.
    Only weeks after the attacks, FLETC in Artesia, New Mexico, 
and Glynco, Georgia, began training large numbers of newly 
hired law enforcement officers for deployment as air marshals. 
FLETC augmented its excellent facilities in Artesia for this 
new training, which included operational commercial aircraft 
fuselages to provide realistic training environments. Through 
FLETC, the United States rapidly marshaled critical resources 
from across government to meet the urgent need for airline 
security. The Committee applauds this exceptional effort by 
FLETC and the Federal Air Marshals.

     ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED EXPENSES

Appropriations, 2002....................................     $41,934,000
Budget estimate, 2003...................................      23,329,000
Committee recommendation................................      40,009,000

    The Committee recommends an appropriation of $40,009,000 
for acquisition, construction, improvements, equipment, 
furnishings and related costs for expansion and maintenance of 
facilities of the Federal Law Enforcement Training Center 
(FLETC).
    The Committee was disappointed that the fiscal year 2003 
budget request did not include additional funding for needed 
construction at the FLETC facilities in Glynco, Georgia and 
Artesia, New Mexico. While the Committee understands that the 
Master Plan is undergoing review, Federal law enforcement 
training needs have significantly increased since September 11, 
2001. With new requirements placed upon FLETC to train Federal 
air marshals and additional law enforcement personnel necessary 
for homeland security, the budget falls well short of meeting 
immediate needs to support these efforts. The Committee 
therefore believes that it is incumbent upon the Department of 
the Treasury and the Federal Law Enforcement Training Center to 
move expeditiously to determine the long-range needs of both 
campus locations and to take all necessary steps to find the 
funding to begin addressing these needs. To that end, the 
Committee has provided $6,900,000 for a steam distribution 
system, $680,000 for new building support, and $400,000 for 
security upgrades at the Glynco, Georgia campus and $4,200,000 
for a new classroom and $4,500,000 for an indoor firearms 
training range at the Artesia, New Mexico campus.

                      INTERAGENCY LAW ENFORCEMENT

Appropriations, 2002....................................    $107,576,000
Budget estimate, 2003...................................     107,576,000
Committee recommendation................................     108,532,000

    The Committee recommends an appropriation of $108,532,000 
for interagency law enforcement. The increase above the 
President's request is for pay parity.
    In a 1982 counterdrug effort, the Department of Justice 
(DOJ) developed the Interagency Crime and Drug Enforcement Task 
Force (ICDE) program to bring together and integrate the 
efforts of all levels of law enforcement in the fight against 
drugs. The ICDE program designated nine domestic regions that 
deploy the investigative expertise from 10 Federal agencies, 
and State and local law enforcement agencies to dismantle and 
disrupt major drug trafficking and money laundering 
organizations and place offenders in jail. Treasury agencies 
provide specific value-added investigative expertise to these 
major cases. The U.S. Customs Service provides specific 
expertise in international smuggling and interdiction; the 
Bureau of Alcohol, Tobacco and Firearms (ATF) provides 
expertise on firearms and explosives violence; and the Internal 
Revenue Service (Criminal Investigative Division) provides 
expertise on money laundering and tax evasion. Since 1998, the 
Treasury portion of the ICDE program has been administered by 
Treasury's Departmental Offices. Treasury's participating 
bureaus, ATF, Customs, and IRS, are reimbursed from this 
appropriation. Treasury has assigned two special agents to 
oversee ICDE policy and budget for the three Treasury bureaus. 
Funding for Treasury components is primarily utilized for full-
time equivalent employees; however, a portion of funding is 
used for operating expenses incurred during the investigative 
phase of the case.

                      Financial Management Service


                         SALARIES AND EXPENSES

Appropriations, 2002....................................    $212,850,000
Budget estimate, 2003...................................     220,712,000
Committee recommendation................................     222,078,000

    The Committee recommends an appropriation of $222,078,000 
for salaries and expenses for the Financial Management Service 
(FMS) in fiscal year 2003. The increase above the President's 
request is for pay parity.
    Payments.--FMS implements payment policy and procedures for 
the Federal Government, issues and distributes payments, 
promotes the use of electronics in the payment process, and 
assists agencies in converting payments from paper checks to 
electronic funds transfer (EFT). The control and financial 
integrity of the Federal payments and collections process 
includes reconciliation, accounting, and claims activities. The 
claims activity settles claims against the United States 
resulting from Government checks which have been forged, lost, 
stolen, or destroyed, and collects monies from those parties 
liable for fraudulent or otherwise improper negotiation of 
Government checks.
    Collections.--FMS implements collections policy, 
regulations, standards, and procedures for the Federal 
Government, facilitates collections, promotes the use of 
electronics in the collections process, and assists agencies in 
converting collections from paper to electronic media.
    Debt Collection.--FMS provides debt collection operational 
services to client agencies which includes collection of 
delinquent accounts, offset of Federal payments against debts 
owed the Government, post-judgment enforcement, consolidation 
of information reported to credit bureaus, reporting for 
discharged debts or vendor payments, and disposition of 
foreclosed property.
    Government-wide Accounting and Reporting.--FMS also 
provides financial accounting, reporting, and financing 
services to the Federal Government and the Government's agents 
who participate in the payments and collections process by 
generating a series of daily, monthly, quarterly and annual 
Government-wide reports. FMS also works directly with agencies 
to help reconcile reporting differences.

                Bureau of Alcohol, Tobacco and Firearms


                         SALARIES AND EXPENSES

Appropriations, 2002....................................    $854,747,000
Budget estimate, 2003...................................     883,775,000
Committee recommendation................................     899,753,000

    The Committee recommends an appropriation of $899,753,000 
for salaries and expenses of the Bureau of Alcohol, Tobacco and 
Firearms (ATF), an increase of $15,978,000 above the 
President's request, which includes $5,323,000 for pay parity 
and $10,000,000 for an explosives enforcement initiative.
    The ATF has three major strategic goals: (1) effectively 
contribute to a safer America by reducing the future number and 
cost of violent crimes; (2) maintain a sound revenue management 
and regulatory system that continues reducing payer burden, 
improving service, collecting revenue due, and preventing 
illegal diversion; and (3) protect the public and prevent 
consumer deception in ATF's regulated commodities. To achieve 
these goals, ATF enforces the Federal laws and regulations 
relating to alcohol, tobacco, firearms, explosives, and arson 
by working directly and in cooperation with others.

                   FEDERAL ALCOHOL ADMINISTRATION ACT

    The Committee recognizes alcoholic beverages as among the 
most socially sensitive commodities marketed in the United 
States. In this connection, marketing, labeling, and 
advertising of alcoholic beverages must be accomplished in an 
environment which fosters fair and healthy competition while 
protecting the interests of the American consumer. The 
Committee expects that there be no diminution of regulatory and 
oversight functions in fiscal year 2003.

               ARMED CAREER CRIMINAL APPREHENSION PROGRAM

    The Armed Career Criminal Act, signed into law in 1984 and 
expanded by the Anti-Drug Abuse Act of 1986, provides mandatory 
sentences for certain violent repeat offenders who carry 
firearms. The Bureau, given its jurisdiction over firearms 
laws, has a unique opportunity to effect the apprehension of 
violent offenders. The success to date of the Bureau's Repeat 
Offender Program has surpassed initial expectations regarding 
apprehension, prosecution, and conviction of career criminals. 
The Committee notes that 74 percent of the defendants 
apprehended under this program have had direct involvement in 
illegal narcotics trafficking.

           STAFFING LEVELS IN SMALLER STATES AND RURAL STATES

    Over the past several years the number of ATF agents in the 
smaller States and rural areas have steadily declined, in favor 
of placing agent resources in larger States with large 
metropolitan centers. These staffing trends have not always 
reflected the needs of these areas. The Committee credits the 
Department for recognizing the need for placing special agents 
in under-represented rural areas and small and medium-sized 
States. The Committee urges that ATF follow through on pledges 
to maintain and increase staffing in under-represented rural, 
small, and medium-sized States.

                             GREAT PROGRAM

    The Committee provides $13,000,000 for grants to local law 
enforcement organizations for the Gang Resistance Education and 
Training (GREAT) Program. The GREAT program continues to be 
enthusiastically endorsed by communities in Colorado, North 
Dakota, and Alaska. The Committee directs ATF to consider 
providing GREAT funding to the qualified law enforcement and 
prevention organizations in these areas.

                     SAFETY AND SECURITY STANDARDS

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

                    ACTIVITY ON INDIAN RESERVATIONS

    The Committee appreciates ATF's efforts to address the 
growing problem of gang-related activities on and near Indian 
reservations. In conjunction with programs and activities 
provided by the Boys and Girls Clubs of America, ATF has made 
in-roads in Native communities to reduce gang-related 
activities by training, seminars, and after-school activities 
aimed at reducing the number of Native children that are likely 
participants in gang behavior. The Committee recommends that 
ATF continue to coordinate the efforts of the Bureau of Indian 
Affairs (BIA), the Boys and Girls Clubs of America, and private 
organizations such as the National Native American Law 
Enforcement Association to expand these activities and develop 
an inter-agency and inter-disciplinary approach to gang-related 
activities.
    Native American youth often face desperate obstacles in 
life, such as severe poverty, physical abuse, drug and alcohol 
abuse, and malnutrition. These same young people are all too 
often denied access to positive youth programs that are often 
taken for granted in other areas of all Indian country. The 
Committee has included $1,000,000 for grants to the National 
Congress of American Indians to work with tribes to establish 
and operate Bureau of Indian Affairs school-based Boys and 
Girls Clubs in Native American communities nationwide. These 
Clubs will reach out and serve this most needy population, 
while helping to preserve their rich culture and share it with 
other Clubs around the country.

                YOUTH CRIME GUN INTERDICTION INITIATIVE

    The Committee commends ATF's efforts to reduce firearms 
violence by investigating illegal trafficking to the youth of 
this country. The Youth Crime Gun Interdiction Initiative 
(YCGII) began as a pilot program in 17 cities in 1996 and is 
currently operating in 50 sites.
    The partnership between ATF and local law enforcement 
agencies in these communities is invaluable to the mutual 
effort to reduce gun-related crime. The tracing information 
provided by ATF not only allows local jurisdictions to target 
scarce resources to investigations likely to achieve results 
but also gives ATF the raw data to be able to investigate and 
prosecute the illegal source of these crime guns. The Committee 
continues to believe that there are significant disruptions in 
these illegal firearms markets directly due to investigative 
leads arising from this regional initiative.

                     EXPLOSIVES ENFORCEMENT GROUPS

    The Committee is concerned about the illegal use of 
explosives and its relation to our homeland security. The 
Committee is dedicated to protecting and supporting our first 
responders, the American public, and American institutions from 
the threat of terrorist violence and the illegal and criminal 
use of explosives. There are approximately 6 billion pounds of 
explosives produced in the United States every year. Because of 
the extremely high and unacceptable risk to public safety from 
criminal or terrorist theft and misuse of these explosives, the 
Committee believes that more comprehensive enforcement and 
regulatory efforts are essential to public safety. Therefore, 
the Committee has included an additional $10,000,000 for an 
explosives enforcement initiative. This funding shall be used 
to increase the number of agents and inspectors dedicated to 
enforcing existing Federal explosives laws and regulations. The 
additional personnel would comprise explosives groups to be 
located strategically nationwide. These groups shall conduct 
undercover and surveillance operations into the misuse and 
trafficking in explosive materials; investigating all bombings 
of Federal interest throughout the United States; and 
thoroughly investigating all explosives-related thefts and 
losses. The Committee directs ATF to provide a detailed 
spending plan to the Committee on Appropriations prior to the 
obligation of any funds. The Committee encourages ATF to work 
with industry in developing this initiative.

                      EXPLOSIVE DETECTION TRAINING

    The Committee appreciates efforts by ATF to make explosive 
detection training available on request to school districts 
nationwide. The Committee understands that ATF, in conjunction 
with the U.S. Department of Education, is developing a CD-ROM 
training program which will provide a standardized bomb threat 
management and response template for use by school 
administrators to develop a customized response program for 
individual schools. The Committee is pleased by this expanded 
assistance and encourages continued assistance to schools by 
ATF field office personnel as they establish and implement 
these necessary management and response plans.

               MANAGEMENT AND TECHNOLOGICAL ENHANCEMENTS

    The Committee expects that $2,500,000 will be used to 
continue management and technological enhancement at the AFT 
National Licensing Center, the Imports Branch, and the National 
Firearms Act Branch (NFA). The Committee notes that ATF has 
taken some major steps in the right direction:
  --substantial progress on information management improvements 
        for data retrieval and reporting for customers of the 
        Firearms, Explosives and Arson Services (FEA) Division;
  --increased meeting and other outreach efforts with industry 
        to coordinate policy and operational concerns;
  --a firearms importers conference and seminar to be held in 
        the summer of 2002; and
  --additional contract assistance retained and directed at 
        FEA's service improvements efforts.
    However, the Committee believes that there are critical 
areas of the plan which have not yet demonstrated improvement 
over the last 2 years.
    The lack of well trained personnel still continues at 
certain branches. Some additional assistance is particularly 
needed with regard to specialized staff at the Division level 
to troubleshoot problems, and manage these significant 
improvement efforts. Operations personnel cannot be expected to 
perform these roles and still achieve service improvements, 
particularly where the operations workload has increased 
significantly in the last fiscal year due to the processing of 
import applications for nonimmigrant aliens (NIA).
    Performance standards and critical elements for services 
positions to meet enhanced service goals in the FEA Division 
have not been finalized, but are still under review. The 
Committee has received no information that the Division as a 
whole has established milestones for service improvements, such 
as specific targets for reductions in current the processing 
times. The Committee notes that such milestones will have to 
take into account the addition of the NIA applicant workload.
    Communications improvements must continue to be emphasized. 
In recent years, and more dramatically since new homeland 
security programs have been initiated, importers and NFA 
registrants often face inconsistent and confusing policy, law, 
and technical guidance that frequently changes regarding the 
importation of firearms, parts, and ammunition. Developments in 
these areas must be communicated clearly, consistently, and 
often to the importing and NFA communities. The Committee 
believes that in addition to use of the FFL newsletters and the 
ATF web site, a comprehensive and frequently updated guidance 
handbook designed for both the importing and NFA communities 
should be published and distributed to these communities as the 
Committee has recommended for the last 2 years.
    ATF efforts cannot be fully achieved without serious 
coordination efforts, both in technology and policy, with the 
import and export processes at the Department of State and the 
U.S. Customs Service. The Committee recommends that ATF seek a 
working group with these agencies to consult with importers and 
others on solutions that will enhance the fairness and 
efficiency of administering or enforcing firearms-related laws 
by these agencies.

                          U.S. Customs Service


                         salaries and expenses

Appropriations, 2002....................................  $2,471,960,000
Budget estimate, 2003...................................   2,391,952,000
Committee recommendation................................   2,525,453,000

    The Committee recommends an appropriation of $2,525,453,000 
for salaries and expenses of the U.S. Customs Service, an 
increase of $53,493,000 above fiscal year 2002 levels and 
$133,501,000 above the President's request.
    The Committee has included $15,115,000 for pay parity, an 
additional $5,000,000 for forced child labor, an additional 
$5,000,000 for expanded intellectual property rights 
initiatives, $500,000 for the Vermont World Trade Center, 
$2,300,000 for canine curriculum on chemical and biological 
threats, $4,000,000 for port technology research and 
development, $18,000,000 for the Container Security Initiative, 
$2,000,000 for a bulk currency initiative, and $750,000 for the 
Center for Agricultural Policy and Trade Studies.
    The United States Customs Service, in partnership with 
other Federal agencies, is one of the Nation's primary means of 
border enforcement. Its mission 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.
    Commercial.--Commercial activities are all process/business 
area activities (Trade Compliance, Outbound, and Passenger 
Processing) which occur prior to a violation being confirmed or 
acceptance of a referral for investigation. This includes 
intelligence gathering, targeting, analysis, and examination 
activities.
    Drug and Other Enforcement.--Drug and Other Enforcement 
activities are process activities which occur after 
confirmation of a violation or acceptance of a referral for 
investigation. Also included are enforcement strategies to 
address enforcement issues which impact more than one process, 
intelligence activities and investigations of drug and money 
laundering violations, intelligence activities and 
investigations related to alleged/suspected violations which 
are independent of process activities, the air and marine 
interdiction programs, and radio communications management.

                            NORTHERN BORDER

    The Committee commends the actions of the United States 
Customs Service insofar as the Customs Service has worked to 
strengthen America's border with Canada. The Committee also 
recognizes that the process of strengthening the Northern 
Border is not complete and that further adjustments in 
personnel assignments and resource allocations will be 
necessary. Customs stands at the front line in securing ``the 
longest open border in the world'' from potential acts of 
terrorism and other illegal activity. The Committee is also 
aware of the vital role Customs performs in supporting 
America's strong trade relationship with Canada, facilitating 
over $350,000,000,000 in trade annually.
    The Committee supports full implementation of the 30-point 
``Smart Border Accord,'' signed by the United States and Canada 
in December 2001. The Committee urges Customs to fully 
implement ongoing initiatives in furtherance of securing the 
flow of people and goods, hardening our infrastructure, and in 
sharing mutual enforcement objectives with Canada. 
Implementation of programs such as pre-clearance of U.S.-bound 
traffic, ``reverse inspections,'' hardening of remote ports, 
and expanded information sharing promises increased security 
and important trade benefits on the Northern Border.
    The Committee commends Customs for stationing U.S. Customs 
officers in Canadian ports to work side by side with Canadian 
counterparts to target high-risk containers bound for the 
United States. Additionally, the Committee encourages Customs 
to expand use of ``smart'' processing and inspection 
technologies such as the NEXUS program. This joint United 
States-Canadian pilot is a dedicated commuter lane system which 
allows Customs and the Immigration and Naturalization Service 
to rapidly identify and clear pre-registered frequent 
travelers. The Committee urges Customs to implement an 
expansion of the program expeditiously as an integral part of a 
layered security framework which both secures our mutual border 
and facilitates this unique trade relationship.

                     CONTAINER SECURITY INITIATIVE

    The Customs Service announced the creation of the Container 
Security Initiative (CSI) on January 17, 2002. The CSI is a 
critical effort to address the need to protect U.S. seaports. 
This initiative would allow the targeting and screening of 
potentially dangerous cargo prior to its arrival at U.S. ports. 
The Committee notes that three major Canadian ports as well as 
the ports of Rotterdam, Singapore, Antwerp, and Le Havre have 
all become participants in this initiative. The Committee notes 
that funds will be provided in the fiscal year 2002 Emergency 
Supplemental Appropriations bill to begin this initiative. The 
Committee provides $18,000,000 to continue this effort. The 
Committee also urges the Customs Service to continue to 
evaluate best practices when investigating options for 
container security as stated in Senate Report 107-156.

                    REMOTE ADMINISTRATION TECHNOLOGY

    The Committee supports ongoing efforts to enhance services 
at low-volume ports of entry through the use of remote 
administration technology. The Committee believes the 
additional security presence and the after-hours travel 
capabilities will benefit those who live near the affected 
border crossings. However, to ensure that commercial traffic 
through these ports is not negatively affected, these 
enhancements must not result in loss of personnel or reduction 
of staffed hours at these ports.

         STAFFING AND SERVICE LEVELS AT CUSTOMS PORTS OF ENTRY

    The Committee continues to believe that the services 
provided through the Charleston, WV, Customs office are very 
important to the State of West Virginia and the Nation as a 
whole. For this reason, the Committee expects the Service to 
maintain the level of services provided in fiscal year 1996 
through fiscal year 2003 at this office.
    The Committee continues to believe that the policy of 
providing part-time and temporary inspectors at the Honolulu 
International Airport is an effective way to handle the large 
and increasing volume of passengers arriving and departing this 
very busy airport in Hawaii. The Committee has again included 
$750,000 for part-time and temporary positions in the Honolulu 
Customs District. This action is intended to enhance and not 
supplant current staffing levels. Amounts included in this 
account are sufficient to maintain staffing levels at this 
airport through fiscal year 2003 at the fiscal year 1997 level.
    The Charleston, South Carolina Port (Port) is the fourth 
largest cargo port in the United States, and the second largest 
on the East Coast. However, the Port continues to be severely 
understaffed by Customs and lacks the necessary resources to 
address the volume of cargo entering the Port yearly. As the 
volume of cargo traffic at the Port continues to increase, 
Customs resources and staffing at the Port have fallen behind. 
The Committee is aware that Customs dedicated to the Port, on a 
temporary basis, an additional canine team which resulted in 
commensurate increases in seizures of contraband. This is 
concrete evidence that increased staffing at the Port will 
enhance the mission of the Customs Service at this location, 
supporting enforcement as well as facilitating the entry of 
legitimate trade. The Committee recommends that Customs make 
every effort to provide additional staffing and equipment for 
use at the Port. The Committee directs that in no case shall 
the level of Special Agents, Inspectors, Canine Enforcement 
Officers or other support personnel fall below the 1999 
staffing levels at the Port.
    The Committee is aware that the Immigration and 
Naturalization Service has assigned badly needed personnel to 
New Mexico's major ports of entry at Santa Teresa and Columbus. 
Similar increases in Customs Service personnel are needed, 
especially in Santa Teresa which lacks the staff to operate two 
processing booths throughout the day. The Committee therefore 
strongly urges the Customs Service to review the staffing 
situation in Santa Teresa and to approve the addition of four 
Customs Service personnel to that location. Further, the 
Committee expects to be kept informed on the status of this 
review.
    Legitimate, as well as illicit, trade and traffic continue 
to grow in the State of Florida. Customs should give a high 
priority to funding sufficient inspection personnel at ports of 
entry in Florida for fiscal year 2003.
    Over the years Customs personnel in smaller States as well 
as rural areas have declined considerably. Problems facing 
these areas have not necessarily declined, and the Committee 
urges Customs to continually review its staffing requirements 
and to consider the allocation to smaller States and rural 
areas.
    The Committee recognizes the importance of full-time 
staffing at the Pittsburg, New Hampshire port of entry for New 
Hampshire and the entire New England region. As the only port 
of entry in New Hampshire, the Committee directs Customs to 
give a high priority to funding sufficient staffing at the 
Pittsburg station for fiscal year 2003.
    The Committee appreciates the work of the Customs Service 
to address issues related to the national and economic security 
of our Nation. As such, the Committee recognizes the 
significant role that the Customs Service plays in providing 
essential inspection services to major airports such as 
Louisville, Kentucky, a major shipment hub which faces acute 
economic pressure due to tremendous growth year after year. The 
Committee directs the Customs Service to identify and request 
resources necessary to address staffing shortfalls at the 
Louisville Airport, and to work closely with the Regional 
Airport Authority and the many businesses that rely on this 
location as a channel for national and international trade.
    The U.S. Customs Service is the first line of homeland 
defense for cargo and ships that enter the Port of Virginia, 
which consists of the Norfolk International Terminals, the 
Portsmouth Marine Terminal, and the Newport News Marine 
Terminal. The Port of Virginia handled 1.3 million 20-foot 
containers and 1.6 million vessels in 2001. Located near the 
port are the Norfolk Naval Base, the Norfolk Naval Air Station, 
the Oceana Naval Air Station, Langley Air Force Base, the U.S. 
Army Transportation Center at Fort Eustis and Fort Story, and 
several other critical Department of Defense facilities. 
Because of the unique combination of defense facilities and 
large volume of international trade, the Port of Virginia is a 
likely target for terrorism. The Committee directs the Customs 
Service to conduct an in-depth review the homeland security 
needs of the Port of Virginia, and report back by March 14, 
2003 on the resources necessary and steps they are taking to 
address those needs.
    The Committee recognizes the importance of full-time 
staffing for the Providence, Rhode Island port of entry. While 
the volume of cargo entering Rhode Island has increased 
annually, staffing at the Office of Field Operations in Rhode 
Island has been operating below full strength. The Committee 
directs the Customs Service to give high priority to funding 
sufficient staffing in Rhode Island for fiscal year 2003.
    The Committee also recognizes the increased demand for 
criminal investigative work by the Customs Service in Rhode 
Island, particularly in the areas of drug smuggling and money 
laundering investigations. The Committee directs the Customs 
Service to explore the feasibility of establishing an Office of 
Investigations in Providence, Rhode Island, including an 
adequate number of special agents and support staff.

                   PEACE BRIDGE JOINT BORDER FACILITY

    The Committee directs the Commissioner of the U.S. Customs 
Service, in consultation with the Commissioner of the 
Immigration and Naturalization Service and the Office of 
Homeland Security, to submit to the Committee on Appropriations 
a report, within 180 days of enactment, that details how a 
joint United States/Canadian border inspection facility could 
be established on the Canadian side of the Peace Bridge in Fort 
Erie, Ontario. In formulating this report, the Commission shall 
consult with the Canadian Government, the Buffalo and Fort Erie 
Public Bridge Authority, and the City of Buffalo, New York. The 
report shall consider how such a joint facility could maximize 
the security and efficiency of the Peace Bridge Expansion 
project, which is currently being developed by the Buffalo and 
Fort Erie Public Bridge Authority. The report shall also 
include preliminary recommendations for such a joint or shared 
United States/Canadian facility and identify any United States 
or Canadian statutes or regulations that would need to be 
altered in order to establish such a facility.

                  TECHNOLOGY RESEARCH AND DEVELOPMENT

    The Committee has provided $4,000,000 to the U.S. Customs 
Service for the establishment of a pilot program to evaluate 
and prototype next-generation technology to screen and detect 
contraband, explosives, chemical and biological weapons, and 
radioactive materials at the Nation's larger ports including, 
but not limited to, the Port of Charleston, South Carolina. The 
Committee is aware of proven technology and security standards 
currently being employed by the Department of Defense Total 
Asset Visibility Network and encourages Customs to evaluate 
such best practices when investigating options for this 
project. In particular, Customs shall: (a) evaluate screening 
technology including, but not limited to, machinery that does 
not require human evaluation and analysis; and (b) work with 
agencies like the Departments of Energy and Defense to evaluate 
technology to facilitate the placement of radiation detection 
to maximize the ability to effectively detect Nuclear, 
Biological, and Chemical (NBC) threats. Customs shall report to 
the Committee on Appropriations no later than 120 days after 
the enactment of this legislation on its progress in 
implementing this program.

                  VEHICLE AND CARGO INSPECTION SYSTEM

    The Committee has been responsive to the needs of the 
Customs Service for new technology and equipment to improve the 
inspection of traffic across both the Northern and Southwest 
Borders. One example is the use of the Vehicle and Cargo 
Inspection System (VACIS) technology which is a non-intrusive 
inspection technology used to scan vehicles, primarily trucks, 
and cargo containers. A new VACIS system has been developed to 
scan rail cars and has been installed along the Southwest 
Border for deployment.
    An additional technology of interest to law enforcement 
agencies is the Weigh-In-Motion or WIM system, which can weigh 
commercial traffic as it passes through ports of entry. New 
Mexico State University's Physical Science Lab has WIM under 
development and has established the Santa Teresa Border 
Technology Deployment Center to test such technologies. The 
Committee strongly believes that the Customs Service should 
work jointly with the New Mexico State University Physical 
Science Lab to test the effectiveness of this technology at an 
operating port of entry.

                       VERMONT WORLD TRADE OFFICE

    Vermont continues to develop a large market in 
international trade. Forty percent of Vermont companies, which 
employ approximately 70,000 individuals, are engaged in 
exports. In 1995, the State of Vermont created the Vermont 
World Trade Office to provide technical assistance to 
businesses and information on foreign trade opportunities. The 
Office has received overwhelming numbers of requests from 
companies interested in exploring international trade 
opportunities. To meet this demand, the Vermont World Trade 
Office hopes to open satellite offices and expand service for 
its clients. The Committee includes $500,000 to continue the 
partnership with the Vermont World Trade Office in furtherance 
of promoting foreign trade.

               CUSTOMS INTEGRITY AWARENESS PROGRAM (CIAP)

    The Committee continues its strong support for the Customs 
integrity awareness program. This program, begun in fiscal year 
2000, is to improve hiring methodologies to ensure that 
applicants are of the highest quality and integrity, and to 
improve the recruitment process. The funding provided allows 
Customs to conduct polygraph examinations for candidates 
applying for positions which are most susceptible to 
corruption. The Committee encourages the Commissioner to 
continue efforts to improve the integrity measures of the 
Customs Service.

                           CHILD PORNOGRAPHY

    The Committee directs the Customs Service to continue 
providing $100,000 of available funds to promote public 
awareness for the child pornography tipline, including ongoing 
efforts to make children aware of the tipline, in fiscal year 
2003. The Committee recommends that the Customs Service 
continue to coordinate this promotional effort with the 
National Center for Missing and Exploited Children and the U.S. 
Postal Service to ensure that the publicity is diversified and 
effective. The Committee fully supports Customs' work in 
battling child pornography and is impressed with the successes 
Customs has had given the limited resources.

                   FORCED AND INDENTURED CHILD LABOR

    The Committee is pleased with the continued work of Customs 
regarding enforcement of section 307 of the Tariff Act of 1930 
as it relates to forced and indentured child labor. The 
Committee believes that continued focus on enforcement of the 
ban on importation of goods made by forced child labor is 
critical, and that Customs needs to continue this effort 
through aggressive investigation and enforcement of the 
applicable laws. The Committee has provided an additional 
$5,000,000 and expects to receive an expenditure plan prior to 
the obligation of funds.

                INTELLECTUAL PROPERTY RIGHTS INITIATIVE

    The Committee commends Customs for continuing to focus on 
Intellectual Property Rights violations even while it serves as 
America's frontline and performs critical homeland security 
duties. Intellectual Property Rights violation cost American 
businesses millions in lost revenue annually. Since its 
establishment in early calendar year 2002, the National 
Intellectual Property Rights Coordination Center, led by 
Customs in collaboration with the Federal Bureau of 
Investigation, has provided critical leadership for both 
domestic and international efforts. Through outreach, training, 
symposia, and aggressive investigations, the Center is 
protecting citizens from economic and other adverse impacts of 
counterfeit merchandise. The Committee directs Customs to 
aggressively continue these efforts and provides an additional 
$5,000,000 for domestic and international programs, staffing, 
as well as continued operation of the Coordination Center.

            CENTER FOR AGRICULTURAL POLICY AND TRADE STUDIES

    The volume of trade along the Northern border has increased 
dramatically in the last decade as a result of a number of free 
trade agreements. Implementation of World Trade Organization 
(WTO) policies will also have a significant impact on the 
Northern Border, particularly in the Northern Plains region. 
The Committee recognized the importance of this growth in trade 
and provided funds in fiscal years 2000, 2001, and 2002 to 
conduct research on the bilateral trade of agricultural 
commodities and products under the Canada-United States Trade 
Agreement. This research is being conducted at the Center for 
Agricultural Policy and Trade Studies located at North Dakota 
State University.
    The primary purpose of this research program is to analyze 
a wide range of agricultural and trade policy issues for 
agricultural products, agribusiness firms, and the rural 
economies in the Northern Plains States. Specific objectives 
for this research are (1) to evaluate the potential impacts of 
multilateral and regional free trade agreements (e.g. the WTO 
and Free Trade Area of the Americas negotiations) on Northern 
Plains agricultural competitiveness in global markets, (2) to 
analyze net farm income and agricultural policies for the 
Northern Plains region, (3) to evaluate the impacts of macro 
policy variables, such as exchange rates and the new farm bill, 
on agricultural exports, (4) to develop strategies to improve 
export opportunities for agricultural goods from this region, 
and (5) to analyze the impacts of the North American Free Trade 
Agreement on trilateral flows of agricultural goods and net 
farm income in the region. The Committee has included $750,000 
to continue this project.

                             PROJECT ALERT

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

                        INTERDICTION OPERATIONS

    Through the years, Customs has had to react to constantly 
changing drug smuggling methods. Consequently, interdiction 
methods have been adapted to challenge the nature of the ever-
changing threat. This effort has proven effective, with record 
narcotics seizures posted annually. After the terrorist attacks 
of September 11, 2001, the concept of applying the lessons 
learned in air and marine narcotics enforcement to the precepts 
of counterterrorism have become particularly critical. This is 
especially true given the published vulnerabilities of our 
sovereign coastal waters, seaports, and airspace. The Committee 
notes that a reactive posture, oftentimes successful in counter 
drug activities, becomes an unacceptably passive alternative to 
combating the specter of terrorism proactively. The Committee 
believes that the threat of terrorism and the fluid patterns of 
drug smuggling demand forward thinking vigilance by Customs. 
The Committee notes that the consequences for failure in the 
fight against terrorism are unacceptable. The Committee 
therefore strongly urges Customs to apply the lessons learned 
from enhanced air and marine enforcement efforts in countering 
fluid smuggling efforts to the battle against terrorism by 
ensuring sufficient resources are dedicated to the interdiction 
mission.

            CANINE DETECTION TRAINING CURRICULUM DEVELOPMENT

    The Committee is encouraged with the initiatives 
demonstrated by the Customs Service as regards development and 
utilization of canine detection to combat and respond to 
possible future terrorist activities involving hazardous 
materials. The Committee is pleased that the Customs Service 
has continually recognized the unique and special abilities 
that the appropriately trained canine and handler immediately 
offer in this regard. The Committee has provided $2,300,000 for 
further canine training activities and curriculum development 
to enhance canine detection technology for the detection of 
additional chemical and biological agents. In order to comply 
with this section, the Committee directs the Customs Service to 
contract with an appropriate entity, like Auburn University, 
and to provide any and all technical and physical support 
necessary to enhance canine detection technology and 
operational resources for protecting the Nation against 
terrorism.

                 ADVANCED PASSENGER INFORMATION SYSTEM

    The Committee commends the U.S. Customs Service for the 
creation and expansion of the Advanced Passenger Information 
System. The Committee strongly believes that the information 
supplied through this program will be critical in our homeland 
security efforts. The Committee recommends that the Customs 
Service recognize the unique aspects of Part 135 on-demand air 
taxi operators as they apply manifest requirements according to 
Public Law 107-71, the Aviation Transportation Security Act of 
2001. Customs is encouraged to consider all transmission 
options for any operators or locations that do not have 
internet access.

  CHARACTERIZATION AND RECOGNITION OF DOMESTIC AND INTERNATIONAL BULK 
                                CURRENCY

    Both United States and international bulk currency are used 
to finance trafficking of illicit substances and in supporting 
terrorist activities. Funding in the amount of $2,000,000 is 
provided to the Customs Service for a contract with the Idaho 
National Engineering and Environmental Laboratory to expand the 
lab's support to the Department of the Treasury and the Customs 
Service program to characterize domestic currency and build a 
detector to identify illicit movement of bulk currency. The 
program will expand the existing effort into the 
characterization and recognition of international currency.

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

    The Committee supports Customs in its enforcement of U.S. 
trade laws, including the Presidents' 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 states 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 supports assisting 
Customs officials, 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 trading 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. Other efforts could involve assigning 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. In 
addition, the Committee 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.

  operation, maintenance and procurement, air and marine interdiction 
                                programs

Appropriations, 2002....................................    $184,560,000
Budget estimate, 2003...................................     170,829,000
Committee recommendation................................     177,829,000

    The Committee recommends an appropriation of $177,829,000 
for operation and maintenance activities of the Customs air and 
marine interdiction programs. This amount is $6,731,000 below 
fiscal year 2002 levels and $7,000,000 above the President's 
request. This includes an additional $7,000,000 for the Customs 
National Aviation Center.
    The Customs Air and Marine Interdiction Program combats the 
illegal entry of narcotics and other goods into the United 
States. This appropriation provides capital procurement and 
total operations and maintenance for the Customs air and marine 
program. This program also provides support for the 
interdiction of narcotics by other Federal, State and local 
agencies.
    The Customs Service will continue implementation of the 
Western Hemisphere Drug Elimination Act (WHDEA). At the 
Administration's request $35,764,000 in new funding is included 
to intensify WHDEA activities, including the purchase of new 
equipment as well as other enhancements, to improve 
interdiction efforts against drug operations in the source and 
transit zones.

                     CUSTOMS COUNTERDRUG RESOURCES

    The Committee, supportive of the use of technology and 
assets as a means to enhance the Customs mission, necessarily 
places the priority on meeting these annualized costs over the 
acquisition of additional assets and the concomitant support 
personnel and maintenance costs. The Committee remains 
concerned about the Customs Service failure to consider the 
full budgetary impact and secure funding for items and 
personnel funded in addition to their congressional budget 
submission. The Committee encourages Customs to continue to 
evaluate, consider and acquire such assets in an effort to 
maximize its personnel and resources. However, the Committee 
expects that the Customs Service will responsibly address and 
meet all out-year costs for any new acquisitions and personnel 
without sacrificing existing programs in the process.

                    CUSTOMS NATIONAL AVIATION CENTER

    The Committee has provided $7,000,000 to continue a Customs 
Service program to facilitate uniformity in aviation training. 
This standardization program will be headquartered on site at 
the Customs National Aviation Center (CNAC) at Oklahoma City, 
Oklahoma. CNAC will also be the home station for such assets as 
are required to implement this program, including facilities 
necessary for further standardization of operational training 
activities of the Customs Service's Air and Marine Interdiction 
Division.

                         TOTAL SYSTEMS SUPPORT

    The Committee has supported and continues to support the 
Customs air and marine interdiction programs, and is concerned 
about the aging fleet of P-3 aircraft. While it would be 
preferable to replace these aging aircraft with new models, the 
Committee is mindful of funding constraints. The Committee 
believes that the Customs Service should take all necessary 
steps to protect the investment in these aircraft, while 
considering aircrew safety. In this regard, the Committee is 
aware of an unsolicited proposal to work with Customs to study 
the feasibility of utilizing private sector expertise to manage 
a wide range of engineering and maintenance requirements. The 
Committee urges Customs to carefully review this proposal, and 
provide a report to the Committee on their plans with regard to 
a total systems support concept.

                        AUTOMATION MODERNIZATION

Appropriations, 2002....................................    $427,832,000
Budget estimate, 2003...................................     435,332,000
Committee recommendation................................     435,332,000

    The Committee has provided $122,432,000 for the Automated 
Commercial Systems (ACS), and $312,900,000 to continue work on 
the Automated Commercial Environment (ACE).
    The Customs Service continues to modernize its trade data 
processing system. The current system, ACS, will be replaced 
with the new ACE. ACE will provide an upgrade to the system 
which will enable Customs to meet the demands of an increasing 
volume of trade and convert to a paperless process and an 
account-based system. These funds will support the ACS legacy 
system while the conversion to ACE is underway.

                    AUTOMATED COMMERCIAL ENVIRONMENT

    Automation modernization of the aging Customs commercial 
systems and processes is critical to the Nation's commerce. In 
light of the events of September 11, 2001, it is even more 
imperative that all trade entering this country be as 
accurately tracked as possible. The Committee continues to be 
encouraged by the efforts and progress made by the Customs 
Service in its modernization effort. The Committee believes 
that Customs appears to be on the right track in establishing a 
well-considered framework necessary to proceed with the initial 
ACE development.
    The Committee notes that the Commissioner is anxious to 
move out on the program as expeditiously as possible. While the 
Committee is pleased that the administration has submitted a 
robust request for this program for fiscal year 2003, we are 
concerned that the program is not sufficiently mature in its 
development to warrant an acceleration of the timetable. 
However, the Committee shares the Commissioner's concern that 
the ultimate system not be obsolete by the time it becomes 
fully functional. The Committee looks forward to favorably 
considering an even more robust funding request and 
acceleration of ACE should the administration so propose in its 
next budget submission.
    The Committee directs Customs, in concert with General 
Accounting Office (GAO) and the Department of the Treasury, to 
report periodically on the status of the project pertaining to 
the need for technology insertion, to include the reasons, 
whether through technological advancement or delay in project 
completion.
    The Committee strongly believes that continued oversight of 
the program by GAO and Treasury is critical to successful 
adherence to the ACE expenditure plan. Periodic review of 
investment increments allows for oversight of the capital 
planning and architecture development and is consistent with 
best practices. The Committee directs that regular quarterly 
reports continue to be provided until ACE becomes functional. 
Additionally, the Committee directs Customs to submit requests 
for release of funds, including a cost-benefit analysis, in a 
timely manner, but in no case less than 30 days from the 
anticipated need for the funds.

                   HARBOR MAINTENANCE FEE COLLECTION

Appropriations, 2002....................................      $3,000,000
Budget estimate, 2003...................................       3,000,000
Committee recommendation................................       3,000,000

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

                               U.S. Mint

    The U.S. Mint manufactures coins, sells numismatic and 
investment products, and provides for security and asset 
protection. Public Law 104-52 established the U.S. Mint Public 
Enterprise Fund (the Fund). The Fund encompasses the previous 
Salaries and Expenses, Coinage Profit Fund, Coinage Metal Fund, 
and the Numismatic Public Enterprise Fund. The Mint submits 
annual audited business-type financial statements to the 
Secretary of the Treasury and to Congress in support of the 
operations of the revolving fund.
    The operations of the Mint are divided into three major 
activities: Circulating Coinage; Numismatic and Investment 
Products; and Protection. The Mint is credited with receipts 
from its circulating coinage operations, equal to the full cost 
of producing and distributing coins that are put into 
circulation, including depreciation of the Mint's plant and 
equipment on the basis of current replacement value. From those 
receipts, the Mint pays its cost of operations, which includes 
the costs of production and distribution. The difference 
between the face value of the coins and these costs are profit, 
which is deposited as seigniorage to the general fund. In 2001, 
the Mint transferred $1,383,000,000 to the General Fund. Any 
seigniorage used to finance the Mint's capital acquisitions is 
recorded as budget authority in the year that funds are 
obligated for this purpose, and as receipts over the life of 
the asset.

                           GOLDEN DOLLAR COIN

    The Committee strongly supported the creation and 
circulation of the Golden Dollar (Sacagawea) coin. However, the 
Committee notes with disappointment that nearly 2 years has 
passed since the coin's introduction with an exhuberant 
marketing campaign, and the coin has yet to enter into regular 
circulation in all areas. The Committee held a hearing on this 
subject on May 17, 2002 and directed the U.S. Mint to submit 
for approval to the Committee on Appropriations, a revised 
marketing plan. The Committee met with the Mint in reference to 
the draft recommendations and is aware that the Mint is 
coordinating the formal report with the U.S. Federal Reserve 
Bank. The Committee is also aware that the General Accounting 
Office (GAO) will be publishing a report on the Mint's 
marketing and promotion of the coin in August 2002. Therefore, 
the Committee directs the Mint to submit for approval to the 
Committee on Appropriations, no later than 30 days after the 
release of the GAO report, a revised marketing plan that also 
addresses the distribution of the coin.

                    Bureau of Engraving and Printing

    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 Bureau executes 
certain printings for various territories administered by the 
United States, particularly postage and revenue stamps.
    The anticipated work volume is based on estimates of 
requirements submitted by agencies served. The program 
comprises the following activities:
    Currency.--Total deliveries of currency for 2002 and 2003 
are estimated to be 7 billion notes each year. During 2001, the 
Bureau delivered 7 billion Federal Reserve notes.
    Stamps.--This category of work is comprised of postal and 
internal revenue stamps. The projected requirements for 2002 
and 2003 are estimated to be 12 billion and 9 billion stamps, 
respectively. In 2001, the Bureau delivered 15.9 billion 
stamps.
    Securities.--This program encompasses the production of a 
wide variety of bonds, notes, and debentures for the Bureau of 
Public Debt and certain other agencies of the Government.
    Commissions, certificates, etc.--This program is comprised 
primarily of Presidential and Department of Defense commissions 
and certificates, White House invitations, and identification 
cards for various Government agencies. It represents a small 
portion of the Bureau's total workload.
    Space utilized by other agencies.--Other agencies are 
charged for services provided in the space occupied in the 
Bureau's buildings.
    Other miscellaneous services.--A wide variety of 
miscellaneous services are performed by Bureau personnel for 
other agencies, which are charged on an actual cost basis.
    Purchase of operating equipment.--This category consists of 
new purchases and replacement of printing equipment and other 
related printing items.
    Plant alterations and experimental equipment.--This 
category encompasses alterations made on the Bureau's buildings 
and purchases of experimental equipment. The operations of the 
Bureau are currently 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 Bureau 
to be reimbursed by customer agencies for all costs of 
manufacturing products and services performed. The Bureau is 
also authorized to assess amounts to acquire capital equipment 
and provide for working capital needs. Bureau operations during 
2001 resulted in an increase to retained earnings of 
$45,000,000.
    The Committee is concerned about the links between 
terrorism and counterfeiting. The Committee is also aware that 
a substantial degree of counterfeiting of U.S. currency takes 
place overseas. The Committee encourages the Department of the 
Treasury to consider for future currency designs, the best 
available, most cost effective anti-counterfeiting technology 
and security devices for U.S. currency, including but not 
limited to alternative substrates; distinctive fibers; 
optically variable devices; high-technology inks; and, security 
measures produced by modern offset printing techniques.
    No direct appropriation is required to cover the activities 
of the Bureau.

                       Bureau of the Public Debt


                     ADMINISTERING THE PUBLIC DEBT

Appropriations, 2002....................................    $186,953,000
Budget estimate, 2003...................................     191,119,000
Committee recommendation................................     192,068,000

    The Committee recommends an appropriation of $192,068,000 
for the Bureau of the Public Debt in fiscal year 2003. The 
increase above the President's request is for pay parity. This 
amount includes $2,500 within existing funds for official 
reception and representation expenses.
    This appropriation provides funds for the conduct of all 
public debt operations and the promotion of the sale of U.S. 
savings-type securities.
    Savings securities.--This activity involves the issuance, 
servicing, and retirement of savings bonds and notes and 
retirement-type securities, including: (1) the maintenance and 
servicing of individual accounts of owners of series H and HH 
bonds and the authorization of interest payments; and (2) the 
maintenance of accounting control over financial transactions, 
securities transactions and accountability, and interest cost. 
These functions are performed directly by the Bureau of the 
Public Debt, by the Federal Reserve Banks as fiscal agents of 
the United States, and by the qualified agents which issue and 
redeem savings bonds and notes. This activity also consists of 
sales promotion efforts, using press, radio, other advertising 
media, and organized groups, augmented by concentrated sales 
campaign emphasizing payroll savings plans.
    Marketable and special securities.--This activity involves 
all securities of the United States, other than savings and 
retirement securities, including securities of Government 
corporations for which the Bureau of the Public Debt provides 
services. Functions performed relate to the issuance, 
servicing, and retirement of these securities, both directly by 
the Bureau and through the Federal Reserve Banks, as fiscal 
agents, including: (1) the maintenance and servicing of 
individual accounts of owners of registered securities and 
book-entry Treasury bills; (2) the authorization of interest 
and principal payments; and (3) the maintenance of accounting 
control over financial transactions, securities transactions 
and accountability, and interest cost.

                        Internal Revenue Service


                                SUMMARY

    The Committee has recommended a total of $9,995,221,000 for 
the Internal Revenue Service (IRS) in fiscal year 2003. This 
amount is $524,617,000 above the fiscal year 2002 enacted level 
and an increase of $79,368,000 above the President's request.

                 PROCESSING, ASSISTANCE, AND MANAGEMENT

Appropriations, 2002....................................  $3,810,880,000
Budget estimate, 2003...................................   3,958,337,000
Committee recommendation................................   3,985,151,000

    The Committee recommends an appropriation of $3,985,151,000 
for processing, taxpayer assistance, and management. This 
amount is $174,271,000 above fiscal year 2002 levels and 
$26,814,000 above the President's request. This includes 
$4,350,000 for Volunteer Income Taxpayer Assistance and 
$9,000,000 for the Low Income Taxpayer Clinic program.
    This appropriation provides for: processing tax returns and 
related documents; assisting taxpayers in the filing of their 
returns, paying taxes that are due, and complying with tax 
laws; issuing technical rulings; revenue accounting, conducting 
background investigations; managing financial resources, rent 
and utilities.
    Pre-Filing Taxpayer Assistance and Education.--This 
activity includes resources to support services provided before 
a return is filed to assist the taxpayer in filing a tax return 
correctly. Included in this activity are staffing, training and 
direct support for (1) pre-filing services operational 
management; (2) tax law interpretation and published guidance; 
(3) taxpayer communication and education to research customer 
needs, prepare tax forms and publications, develop and manage 
education programs, establish partnerships with stakeholder 
groups, and disseminate tax information to taxpayers and the 
general public; (4) rulings and agreements to apply the tax law 
to specific taxpayers in the form of pre-filing agreements, 
determination letters, advance pricing agreements and other 
pre-filing determinations and advice; (5) marketing of 
electronic tax administration products and services; and (6) 
ensuring that taxpayers have an advocate to prevent future 
problems by identifying the underlying causes of taxpayers' 
problems and to participate in the development of systemic and/
or procedural remedies.
    Filing and Account Services.--This activity provides 
resources to support services provided to a taxpayer in the 
process of filing returns and paying taxes in addition to 
issuance of refunds and maintenance of taxpayers accounts. 
Included in this activity are staffing, training and direct 
support for (1) filing and account services operational 
management; (2) submission processing of paper and 
electronically submitted tax returns and supplemental documents 
which account for tax revenues, and issue refunds and tax 
notices; (3) electronic/correspondence assistance to taxpayers 
to resolve account and notice inquires, either electronically 
or by telephone; (4) face-to-face assistance to taxpayers, 
including return preparation, answering tax questions, 
resolving account and notice inquiries, and supplying forms and 
publications to taxpayers; and (5) processing of information 
documents which enables the Service to match this information 
with that provided by taxpayers on their returns.
    Shared Services Support.--This activity provides staffing, 
training and direct support for (1) services and supplies to 
manage IRS facilities; (2) human resources programs including 
recruitment, labor and employee relations, workforce planning 
and evaluation, performance management, employee benefits, 
personnel security and transactional processing; (3) 
procurement; (4) the Servicewide EEO and Diversity program; (5) 
the Servicewide Career Management and Learning Center; (6) 
financial services including relocation, travel, imprest fund, 
purchase cards, corporate express and employee clearance; and 
(7) Treasury complaint centers. This activity also provides 
resources for (1) building rent; (2) IRS building services, 
maintenance space alterations, guard services, custodial 
overtime, utility services, and non-information technology 
equipment; (3) shared support such as copiers, postage meters, 
shredders, courier services, P.O. boxes, etc.; and (4) 
cleaning, maintenance, utilities, security and repair costs of 
delegated buildings.
    General Management and Administration.--This activity 
provides staffing, training and direct support for (1) business 
unit headquarters management activities of strategic planning, 
communications and liaison, finance, human resources, EEO and 
diversity, and business systems planning; (2) national 
headquarters management and administration of policy making and 
goal setting, leadership and direction for the IRS, building 
partner relationships with key stakeholders (e.g., Congress, 
OMB, etc.); (3) strategic direction Servicewide for 
communications, Government liaison and disclosure, legislative 
affairs and public liaison; (4) general legal advice to the IRS 
on non-tax legal issues including procurement, personnel, labor 
relations, equal employment opportunity, fiscal law, tort 
claims and damages, ethics, and conflict of interest; and (5) 
payments for workmen's compensation benefits and unemployment 
compensation payments.

                           IRS STAFFING PLANS

    The Committee continues to support adequate staffing levels 
for effective tax administration and supports the staffing 
plans for the Internal Revenue Service facilities in the 
communities of Martinsburg and Beckley, WV. Therefore, the 
Committee urges the IRS, within the constraints of the fiscal 
year 2003 funding levels, to make no staffing reductions at the 
Martinsburg National Computing Center and the programmed level 
at the Administrative Services Center in Beckley, WV.

                           TAXPAYER SERVICES

    The Committee is pleased that the IRS is providing more 
service and assistance to taxpayers, especially in rural and 
less populated areas. The Committee notes the benefits provided 
by, and increased usage of, mobile tax preparation services in 
North Dakota. The Committee commends the IRS for providing this 
mobile taxpayer service and urges the IRS to use existing 
resources to expand this mobile service to New Mexico, with a 
special emphasis on providing these services to Native American 
reservations and pueblos. To increase use of these mobile 
services, the Committee urges the IRS to make a greater effort 
to provide early notice to local media of the dates and times 
the mobile services will be in specific locations.
    The Committee also directs the IRS to provide a report to 
the Committee at the conclusion of the filing season on its 
efforts to publicize the availability of these mobile taxpayer 
services as well as the number of taxpayers served and the 
types of assistance provided.

                     TAX COUNSELING FOR THE ELDERLY

    The Committee once again believes that the Tax Counseling 
Program for the Elderly has proven to be most successful. To 
meet the goals of this program, $3,950,000 is included within 
the aggregate amount recommended by the Committee for 
processing tax returns and assistance in fiscal year 2003. To 
ensure that the full effect of the program is accomplished, the 
IRS is directed to cover administrative expenses within 
existing funds.

                 TAXPAYER SERVICES IN ALASKA AND HAWAII

    Given the remote distance of Alaska and Hawaii from the 
U.S. mainland and the difficulty experienced by Alaska and 
Hawaii taxpayers in receiving needed tax assistance by the 
national toll-free line, it is imperative that the Taxpayer 
Advocate Service office in each of these States is fully 
staffed and capable of resolving taxpayer problems of the most 
complex nature. The Committee directs the Internal Revenue 
Service to staff each Taxpayer Advocate Service office in each 
of these States with a Collection Technical Advisor and an 
Examination Technical Advisor in addition to the current 
complement of office staff. Staffing shall be increased if, as 
the result of the IRS Restructuring and Reform Act of 1998, 
subsequent legislation, or other factors, the number of cases 
or their complexity increases.

                       LOW-INCOME TAXPAYER CLINIC

    The Committee once again commends the IRS for the Low-
Income Taxpayer Clinic (LITC) program. With the growing 
complexity of tax laws, this program has provided invaluable 
help for taxpayers who are seeking to resolve disputes with the 
IRS. To ensure that the goals of the LITC program are 
maintained, the Committee has provided a total of $9,000,000 to 
assist low-income taxpayer clinics across the Nation.
    The Committee is concerned about recent proposed Treasury 
regulations that state that the Treasury Department and the 
Internal Revenue Service do not believe that qualified LITC's 
are authorized to provide tax preparation services unless it is 
in conjunction with a controversy or with an English as a 
Second Language program. Need-based tax preparation assistance 
through LITC and other programs such as VITA is imperative for 
many of our Nation's taxpayers who cannot afford commercial 
preparers. Without this assistance, many individuals may either 
not file a return or will make errors and prepare their returns 
improperly, ultimately leading to a controversy with the IRS. 
Helping taxpayers with problems with the IRS begins with the 
preparation and filing of the return. Without this assistance, 
the limited resources available to the LITC program will be 
insufficient to meet the demand of taxpayers with controversies 
with the IRS.

                RHODE ISLAND LOW INCOME TAXPAYER CLINIC

    The Committee acknowledges the valuable work and service to 
the community that the Rhode Island Low Income Taxpayer Clinic 
(RILITC) has provided over the past 4 years of its existence. 
The Committee therefore encourages the Internal Revenue Service 
to fund the RILITC's grant request for 2003, so that it may 
continue to operate and deliver its unique services to the 
citizens of the City of Providence.

                    VOLUNTEER INCOME TAX ASSISTANCE

    The Committee notes that the existing Volunteer Income Tax 
Assistance (VITA) program provides an invaluable service by 
helping low income taxpayers prepare and file their Federal 
income tax returns. It is the Committee's understanding that 
IRS used Congress' fiscal year 2002 appropriation of an 
additional $1,000,000 for the VITA program to provide VITA 
sites with additional computers and computer modules to assist 
taxpayers to file electronically. The Committee, therefore, 
directs the IRS to provide $4,350,000 to the VITA program 
outside of its in-kind contribution program. These additional 
funds are intended to assist the IRS in expanding the VITA 
program to hard to serve areas, such as Indian Reservations. 
Additionally, these funds are intended to increase the capacity 
of VITA sites to file returns electronically and to cover some 
operational expenses. The Committee expects that IRS will 
continue its current level of in-kind contributions to VITA 
programs in addition to this funding.

          PROVIDENCE, RHODE ISLAND TAXPAYER ASSISTANCE OFFICE

    The Committee notes and commends the work that is being 
done at the Providence Field Office of the IRS to establish a 
Taxpayer Assistance Office, as well as to redesign the space 
used by the Taxpayer Advocate's Office. The Committee urges the 
IRS to ensure that these projects remain a priority and that 
funding for them remains intact.

                      WAGE AND INVESTMENT DIVISION

    The Committee recognizes that there are ebbs and flows in 
employment at the Internal Revenue Service's field offices 
around the country, particularly in correlation to the tax 
filing season. However, the Committee is concerned that some of 
these departures may have unintended consequences, especially 
by stretching available resources to satisfy the needs of a 
particular community. Therefore, the Committee requests that 
the IRS report to the Committee, by January 31, 2003, with an 
analysis of staffing plans at IRS field offices and the impact 
of such plans on the communities they serve. The report also 
should include an analysis of staffing plans at the Providence, 
Rhode Island field office.

                           OFFICE OF APPEALS

    The Committee recognizes the importance of the work 
provided by the IRS Office of Appeals, and strongly urges the 
IRS to consider establishing an Office of Appeals within the 
current IRS Field Office in Providence, Rhode Island.

         IRS CONSORTIUM FOR LEARNING AND WORKFORCE DEVELOPMENT

    The Committee is aware of the IRS Consortium for Learning 
and Workforce Development that incorporates technology such as 
e-learning to deliver training in a more cost-effective manner. 
The Committee is concerned that the delays in awarding the 
course conversion task order may jeopardize the Consortium 
initiative and directs the IRS to complete its negotiations 
expeditiously. Further, the Committee requests that the IRS 
provide quarterly briefings to the Committee on the work of the 
Consortium.

                         NO-COST EZ TAX FILING

    The Committee understands that the IRS does not intend to 
enter into the tax preparation software business with respect 
to no-or low-cost digital filing of tax returns over the 
Internet. The Committee recognizes that the IRS intends to work 
in partnership with industry to expand the electronic filing of 
tax returns. The necessity of a partnership was emphasized in a 
statement released by the Department of the Treasury on January 
30, 2002. The IRS has echoed this commitment to work with 
industry and notes that IRS plans do not include tax 
preparation services. The Committee notes that the IRS budget 
request sought no resources for this purpose. The Committee 
strongly believes in the industry-IRS partnership concept and 
urges the IRS to continue strengthening its ties with the 
private sector and computer software industry as it moves 
forward in this endeavor.

                          TAX LAW ENFORCEMENT

Appropriations, 2002....................................  $3,542,891,000
Budget estimate, 2003...................................   3,729,072,000
Committee recommendation................................   3,774,121,000

    The Committee recommends an appropriation of $3,774,121,000 
for tax law enforcement activities in fiscal year 2003. This 
amount is $235,774,000 above fiscal year 2002 levels and 
includes $10,000,000 for an initiative to combat abusive tax 
shelters.
    This appropriation funds IRS's ability to provide equitable 
application and enforcement of the tax laws, identify possible 
nonfilers for investigations, investigate violations of 
criminal statutes, and supports the Statistics of Income 
program.
    Compliance Services.--This activity funds services to 
taxpayers after a return is filed, identifying and attempting 
to correct possible errors or underpayment. It provides for the 
examination of tax returns, both domestic and international, 
and the administration and judicial settlement of taxpayer 
appeals of examination findings. It also provides for 
monitoring employee pension plans, determining qualifications 
of organizations seeking exempt status, examining the tax 
returns of exempt organizations, enforcing statutes relating to 
detection and investigation of criminal violations of the 
internal revenue laws and other financial crimes, collecting 
unpaid accounts, securing unfiled tax returns and payments, 
analyzing and determining the reasons for delinquent accounts, 
preventing accounts from becoming delinquent, and preventing 
nonfiling. This activity also provides for legal counsel 
regarding legal interpretation of the law and representation in 
litigation.
    Research and Statistics of Income.--This activity funds 
research and statistical analysis support for the Service. It 
provides annual income, financial, and tax data from tax 
returns filed by individuals, corporations, and tax-exempt 
organizations. Likewise it provides resources for market-based 
research to identify compliance issues, for conducting tests of 
treatments to address non-compliance, and for the 
implementation of successful treatments of taxpayer non-
compliant behavior.

                          ABUSIVE TAX SHELTERS

    The Committee has become extremely concerned about the 
growth of abusive tax shelters and their impact on investor 
confidence as well as on the national economy. For instance, 
during Committee hearings this spring with the Internal Revenue 
Service the Committee explored with the Commissioner examples 
of these corporations, such as the Enron Corporation which 
apparently ran nearly 600 subsidiaries out of single post 
office box in the Cayman Islands. The Committee strongly 
believes that these abuses are out of control and that the IRS 
must do more to target these abuses.
    In order to more effectively and aggressively investigate 
and combat abusive tax shelters, the Committee has provided an 
additional $10,000,000 to the ``Tax Law Enforcement'' account 
solely for the purpose of providing additional personnel and 
resources to target these abuses.

                        EARNED INCOME TAX CREDIT

Appropriations, 2002....................................    $146,000,000
Budget estimate, 2003...................................     146,000,000
Committee recommendation................................     147,233,000

    The Committee recommends an appropriation of $147,233,000, 
which includes pay parity.
    The ``Earned income tax credit'' (EITC) appropriation 
provides for expanded customer service and public outreach 
programs, strengthened enforcement activities, and enhanced 
research efforts to reduce overclaims and erroneous filing 
associated with the earned income tax credit.
    Expanded customer service includes dedicated, toll-free 
telephone assistance, increased community-based tax preparation 
sites, and a coordinated marketing and educational effort 
(including paid advertising and direct mailings) to assist low-
income taxpayers in determining their eligibility for EITC. 
Improved compliance includes increased staff and systemic 
improvements in submissions processing, examination, and 
criminal investigation programs. In returns processing, new 
procedures include expanded use of math error authority and the 
identification of EITC-based refund claims involving invalid or 
duplicate primary, secondary, and dependent tax identification 
numbers (TIN's). Increased examination coverage, prior to 
issuance of refunds, reduces overpayment and encourages 
compliance in subsequent filing periods. In addition, post-
refund correspondence audits by service center staff aids in 
the recovery of erroneous refunds. Criminal investigation 
activities target individuals and practitioners involved in 
fraudulent refund schemes and generate referrals of suspicious 
returns for followup examination. Examination staff, assigned 
to district offices, audit return preparers and may apply 
penalties for noncompliance with due diligence requirements.
    Enhanced research activities and projects focus on EITC 
claimant characteristics and patterns of noncompliance and are 
designed to improve education and outreach products, strengthen 
IRS abuse detection capabilities, and measure the effects of 
Servicewide programs on compliance levels for the EITC-eligible 
taxpayer population. This appropriation also funds the 
development of specialized research data bases and masterfile 
updates, reimbursement to the Social Security Administration 
(SSA) for enhancements to the SSA numbering systems, and 
cooperative efforts with State vital statistics offices.

                          INFORMATION SYSTEMS

Appropriations, 2002....................................  $1,579,240,000
Budget estimate, 2003...................................   1,632,444,000
Committee recommendation................................   1,638,716,000

    The Committee recommends an appropriation of $1,638,716,000 
for information systems activities in fiscal year 2003. The 
increase above the request is for pay parity.
    This appropriation provides for Servicewide information 
systems operations and maintenance, and investments to enhance 
or develop business applications for the IRS Business Units. 
The appropriation includes staffing, telecommunications, 
hardware and software (including commercial-off-the-shelf), and 
contractual services.
    Information services.--This activity provides the salaries, 
benefits, and related costs to manage, maintain, and operate 
the information systems that support tax administration. The 
Service's business activities rely on these information systems 
to process tax and information returns, account for tax 
revenues collected, send bills for taxes owed, issue refunds, 
assist in the selection of tax returns for audit, and provide 
telecommunications services for all business activities 
including the public's toll free access to tax information. 
These systems are located in a variety of sites including the 
Martinsburg, West Virginia, Memphis, Tennessee, and Detroit, 
Michigan Computing Centers; Service Centers; and in other field 
office operations. Staffing in this activity develops and 
maintains the millions of lines of programming code supporting 
all aspects of tax processing; as well as operating and 
administering the Service's hardware infrastructure of 
mainframes, minicomputers, personal computers, networks, and a 
variety of management information systems.
    Information systems improvement programs.--This activity 
funds improvements or enhancements to business applications 
that support requirements unique to one of the new IRS Business 
Units. These projects meet the following criteria: each project 
is small or medium in size and can be fully developed and 
implemented in 1 to 2 years; it supports specialized functions 
of a single Business Unit; and it conforms to the modernized 
IRS architecture. These projects differ in scope from those 
funded by the Business Systems Modernization Program, which 
addresses major common tax administration systems that cross 
Business Unit lines.
    The Committee believes that funds provided under the 
Information Systems account, particularly for development 
related activities, should be managed with the same diligence 
and financial controls as those activities funded through the 
Business Systems Modernization account. In addition, the 
Committee expects that as the Business Systems Modernization 
moves an increasing number of major projects into deployment, 
the Service will realign development activities funded under 
the Information Systems account so that they are managed and 
integrated formally into Business Systems Modernization 
activity. For this reason, the Committee directs the 
Commissioner to submit, concurrent with the fiscal year 2004 
budget submission, a detailed budget justification for funds 
provided in the Information Systems account that outlines the 
specific use of all monies allocated in this appropriation, 
apportioning responsibility between operations and development 
functions, and specifying how program governance for these 
funds will meet the appropriate and rigorous requirements set 
for comparable activities in Business Systems Modernization.

                     BUSINESS SYSTEMS MODERNIZATION

Appropriations, 2002....................................    $391,593,000
Budget estimate, 2003...................................     450,000,000
Committee recommendation................................     450,000,000

    The Committee recommends an appropriation of $450,000,000. 
This amount is $58,407,000 above fiscal year 2002 levels and 
equals the President's budget request. This account provides 
for revamping business practices and acquiring new technology. 
The agency is using a formal methodology to prioritize, 
approve, fund, and evaluate its portfolio of business systems 
modernization investments. This methodology enforces a 
documented, repeatable, and measurable process for managing 
investments throughout their life cycle. Investment decisions 
are approved by the IRS Core Business System Executive Steering 
Committee, chaired by the Commissioner.

                 BUSINESS SYSTEMS MODERNIZATION EFFORT

    The Committee is pleased with the program's progress to 
date. In order to ensure more timely release of funds 
appropriated under this account in fiscal year 2003, the 
Committee directs the Internal Revenue Service (IRS), in 
consultation with the Department of the Treasury and the Office 
of Management and Budget, to submit a single business systems 
modernization spending plan to the Committee on Appropriations 
for the full use of this appropriation by November 1, 2002, or 
15 days after the enactment of this appropriations act, 
whichever is sooner. In addition, the IRS should articulate in 
its fiscal years 2003 and 2004 expenditure plans and the fiscal 
year 2004 budget submission how IRS intends to guarantee that 
products and projects delivered under the business systems 
modernization program are fully integrated into the new 
business units. As in previous years, the Committee fully 
expects that the IRS will continue to brief and provide 
documents and all pertinent information to the General 
Accounting Office in a timely manner for review of the 
expenditure plan.

                     IRS--ADMINISTRATIVE PROVISIONS

    The Committee has recommended approval of the following 
administrative provisions for the Internal Revenue Service:
    Section 101 continues a provision which authorizes the IRS 
to transfer up to 5 percent of any appropriation made available 
to the agency in fiscal year 2003, to any other IRS account. 
The IRS is directed to follow the Committee's reprogramming 
procedures outlined earlier in this report.
    Section 102 continues a provision which maintains a 
training program in taxpayer's rights and cross-cultural 
relations.
    Section 103 continues a provision which requires the IRS to 
institute and enforce policies and procedures which will 
safeguard the confidentiality of taxpayer information.
    Section 104 continues a provision which directs that funds 
shall be available for improved facilities and increased 
manpower to provide sufficient and effective 1-800 telephone 
assistance and that the Commissioner shall continue to make 
this a priority.

                          U.S. Secret Service


                         SALARIES AND EXPENSES

Appropriations, 2002....................................  $1,025,384,000
Budget estimate, 2003...................................   1,010,435,000
Committee recommendation................................   1,016,947,000

    The Committee recommends an appropriation of $1,016,947,000 
for the U.S. Secret Service in fiscal year 2003. The increase 
above the President's request reflects $6,475,000 for pay 
parity and an additional $395,000 for the National Center for 
Missing and Exploited Children.
    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, D.C.
    Investigations, protection, and uniformed activities.--The 
Service must provide for the protection of the President of the 
United States, members of his immediate family, the President-
elect, the Vice President, or other officer next in the order 
of succession to the Office of the President, and the Vice 
President-elect, and the members of their immediate families 
unless the members decline such protection; protection of the 
person of a visiting head and accompanying spouse of a foreign 
state or foreign government and, at the direction of the 
President, other distinguished foreign visitors to the United 
States and official representatives of the United States 
performing special missions abroad; the protection of the 
person of former Presidents, their spouses and minor children 
unless such protection is declined. The Service is also 
responsible for the detection and arrest of persons engaged in 
counterfeiting, forging, or altering of any of the obligations 
or other securities of the United States and foreign 
governments; the investigation of thefts and frauds relating to 
Treasury electronic fund transfers; fraudulent use of debit and 
credit cards; fraud and related activity in connection with 
Government identification documents; computer fraud; food 
coupon fraud; and the investigation of personnel, tort claims, 
and other criminal and noncriminal cases.
    The Secret Service Uniformed Division protects the 
Executive Residence and grounds in the District of Columbia; 
any building in which White House offices are located; the 
President and members of his immediate family; the official 
residence and grounds of the Vice President in the District of 
Columbia; the Vice President and members of his immediate 
family; foreign diplomatic missions located in the Washington 
metropolitan area; and the Treasury Building, its annex and 
grounds, and such other areas as the President may direct on a 
case-by-case basis.
    Presidential candidate protective activities.--The Secret 
Service is authorized to protect major Presidential and Vice 
Presidential candidates, as determined by the Secretary of the 
Treasury after consultation with an advisory committee. In 
addition, the Service is authorized to protect the spouses of 
major Presidential and Vice Presidential candidates; however, 
such protection may not commence more than 120 days prior to 
the general Presidential election.

                     MISSING AND EXPLOITED CHILDREN

    The Committee has included $1,633,000 for the Service's 
operation costs of the exploited child unit, associated with 
its continued efforts with the National Center for Missing and 
Exploited Children, including $3,404,000 as a grant for 
investigations of exploited children.

                        STAFFING IN RHODE ISLAND

    The Committee is concerned about the declining number of 
Secret Service special agents in Rhode Island, particularly in 
light of the increased demand for criminal investigative work 
in the areas of identity theft, bank fraud and counterfeit 
currency investigations. The Committee understands that the 
number of special agents, excluding the supervisor, has 
declined from seven in fiscal year 1998 to three in fiscal year 
2002. The Committee urges the Secret Service to give the 
highest priority to funding additional staffing in Rhode Island 
for fiscal year 2003.

      ACQUISITION, CONSTRUCTION, IMPROVEMENT AND RELATED EXPENSES

Appropriations, 2002....................................      $3,457,000
Budget estimate, 2003...................................       3,519,000
Committee recommendation................................       3,519,000

    The Committee recommends an appropriation of $3,519,000 for 
the ``Acquisition, construction, improvement and related 
expenses'' account in fiscal year 2003, which is equal to the 
budget estimate.
    This appropriation provides funding for security upgrades 
of existing facilities and the James J. Rowley Training Center 
to continue development of the current Master Plan and to 
maintain and renovate existing facilities to ensure efficient 
and full utilization of the Center.

                       DEPARTMENT OF THE TREASURY


                           General Provisions

    The Committee recommends that certain general provisions be 
included in the Senate bill. The provisions do the following:
    Section 110 continues a provision which pertains to 
reprogramming instructions for unobligated funds.
    Section 111 continues a provision which authorizes certain 
basic services within the Treasury Department in fiscal year 
2003, including purchase of uniforms; maintenance, repairs, and 
cleaning; purchase of insurance for official motor vehicles 
operated in foreign countries; and contracts with the 
Department of State for health and medical services to 
employees and their dependents serving in foreign countries.
    Section 112 continues a provision which requires that funds 
provided to ATF for fiscal year 2003 will be expended in such a 
manner so as not to diminish enforcement efforts with respect 
to section 105 of the Federal Alcohol Administration Act.
    Section 113 continues a provision which authorizes 
transfers, up to 2 percent, between law enforcement 
appropriations under certain circumstances.
    Section 114 continues a provision which authorizes 
transfers, up to 2 percent, between Departmental Offices, 
Office of Inspector General, Treasury Inspector General for Tax 
Administration, Financial Management Service, and the Bureau of 
the Public Debt appropriations under certain circumstances.
    Section 115 continues a provision which authorizes 
transfer, up to 2 percent, between the Internal Revenue Service 
and the Treasury Inspector General for Tax Administration under 
certain circumstances.
    Section 116 continues a provision to require that the 
purchase of law enforcement vehicles is consistent with 
Departmental vehicle management principles.
    Section 117 continues a provision that prohibits the 
Department of the Treasury and the Bureau of Engraving and 
Printing from redesigning the $1 Federal Reserve Note.
    Section 118 continues a provision that authorizes the 
Secretary of the Treasury to transfer funds from Salaries and 
Expenses, Financial Management Service, to the Debt Services 
Account as necessary to cover the costs of debt collection. 
Such amounts shall be reimbursed to the Salaries and Expenses 
account from debt collections received in the Debt Services 
Account.
    Section 119 continues a provision that extends the pilot 
project for designated critical occupations for 1 additional 
year.
    Section 120 modifies and continues a provision that 
requires prior notification for the construction and operation 
of a museum by the United States Mint.
    Section 121 continues a provision limiting the use of funds 
for the production of Customs declarations that do not inquire 
whether the passenger had been in the proximity of livestock.
    Section 122 is a new provision directing the Federal Law 
Enforcement Training Center to establish an accrediting body to 
set standards for measuring and assessing the quality and 
effective of Federal law enforcement training.
    Section 123 is a new provision providing for a permanent 
extension of the Treasury Franchise Fund.
    Section 124 is a new provision providing for licensing 
procedures for the Office of Foreign Assets Control.
    Section 125 is a new provision requiring a report from the 
U.S. Mint on the marketing and distribution of the Golden 
Dollar.
    Section 126 is a new provision authorizing a pilot project 
concerning reverse inspections for the Customs Service.
    Section 127 is a new provision to allow two government 
established trust funds, the John C. Stennis Center for Public 
Service Development Trust Fund and the James Madison Memorial 
Fellowship Trust Fund, to invest in par value special 
securities issued by the Department of the Treasury.

                     TITLE II--U.S. POSTAL SERVICE

                   Payment to the Postal Service Fund

Appropriations, 2002....................................    $596,093,000
Budget estimate, 2003...................................      76,619,000
Committee recommendation................................     107,633,000

    The Committee recommends an appropriation of $107,633,000 
in fiscal year 2003 for payment to the Postal Service Fund. The 
Committee provides $48,999,000 for providing free mail to the 
blind and overseas voters and $17,985,000 has been deducted to 
reconcile previous fiscal year estimated mail volume with 
actual volume. The Committee also provides $29,000,000 as 
partial reimbursement for losses incurred in previous years for 
reduced-rate mail, as required by the Revenue Forgone Act of 
1993.
    Revenue forgone on free and reduced-rate mail enables 
postage rates to be set at levels below the unsubsidized rates 
for certain categories of mail as authorized by subsections (c) 
and (d) of section 2401 of title 39, United States Code. Free 
mail for the blind and overseas voters will continue to be 
provided at the funding level recommended by the Committee.
    The Committee includes provisions in the bill that would 
assure that mail for overseas voting and mail for the blind 
shall continue to be free; that 6-day delivery and rural 
delivery of mail shall continue at the 1983 level; and that 
none of the funds provided be used to consolidate or close 
small rural and other small post offices in fiscal year 2003. 
These are services that must be maintained in fiscal year 2003 
and beyond.
    The Committee believes that 6-day mail delivery is one of 
the most important services provided by the Federal Government 
to its citizens. Especially in rural and small town America, 
this critical postal service is the linchpin that serves to 
bind the Nation together. The Committee recognizes that the 
Postal Service faces fiscal woes, but it believes that there 
are other means available to resolve this problem than reducing 
mail delivery to Americans.

               RESPONSE TO THE ANTHRAX THREAT TO THE MAIL

    The Committee was extremely concerned about the safety and 
security of postal employees and the American people as well as 
the mail as a result of last year's anthrax attacks. Following 
the attacks, the Committee held a hearing in November to learn 
more about how to protect the Nation's mail system from 
biohazards. Also in November, the President provided 
$175,000,000 in funds under his control from the funds provided 
by Congress in response to the September 11, 2001 terrorist 
attacks. In December, this Committee took the lead in 
appropriating an additional $500,000,000 to the Postal Service 
to further assist its response for additional funds to protect 
the mail. The Committee is also aware that the President has 
requested an additional $87,000,000 in supplemental fiscal year 
2002 funding to continue its efforts to improve mail safety and 
security. The Committee supports the request and expects the 
Congress to approve those funds in the very near future.
    The Committee understands that the Postal Service formally 
requested of the administration an additional $799,800,000 for 
fiscal year 2003. The Committee understands the threat to mail 
safety continues. However, the Office of Management and Budget 
has yet to transmit a request for these funds to the Congress 
and the Committee's allocation is not sufficient to meet this 
additional requirement.

                           PEST INTRODUCTIONS

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

                          MEDICAL GRADE GLOVES

    The Committee is aware of the U.S. Postal Service's (USPS) 
efforts to procure medical grade gloves that protect the skin 
from biological pathogens. USPS issued a solicitation for this 
equipment in late 2001. As it moves forward with any additional 
procurement, the Committee encourages USPS to explore 
contracting with not-for-profit corporations that employ 
persons with disabilities to supply these medical grade gloves 
and to report back to the Committee on its efforts in this 
regard by December 1, 2002.

                              TRUSTED MAIL

    The Committee is aware that the Postal Service currently 
uses mail-tracking technologies that provide the capability to 
uniquely identify individual and bulk mail pieces. The 
Committee is also aware that the Postal Service is considering 
other options to enhance its capabilities in this area after 
the anthrax attacks last year. Therefore, the Committee 
requests that the Postal Service provide the Committee with a 
report by December 31, 2002 on their efforts to further enhance 
``trusted mail''. That report should include an analysis of the 
feasibility of using unique, traceable identifiers applied by 
the creator of the mail piece, and the feasibility of providing 
incentives for the creation of trusted mail.

                        ELY, NEVADA POST OFFICE

    The Committee requests the United States Postal Service to 
conduct an analysis of the recent decision to close the 
contract Post Office located in downtown Ely, Nevada. Within 90 
days of the enactment of this Act, the Postal Service shall 
submit to the Committee a report on why the Ely Post Office was 
closed and what effect it believes the closure will have on 
Ely.

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

            EXECUTIVE OFFICE OF THE PRESIDENT CONSOLIDATION

    For the second year in a row, the administration has 
proposed a consolidation of the various accounts which comprise 
the Executive Office of the President. Last year, the Committee 
gave this request considerable deliberation and concluded that 
the existing structure well served the Committee's and the 
public's need for sunshine in the funding and operation of 
these important functions. The existing structure also provides 
the executive branch with the flexibility it needs to reprogram 
funds within accounts to address unforeseen budget needs upon 
the notification and approval of the Committee. As noted in 
discussions with administration officials last year, as well as 
in hearings before this Committee this year, at no time has 
this Committee rejected an administration's request to 
reprogram existing funds within accounts in this Title.

        Compensation of the President and the White House Office

                     COMPENSATION OF THE PRESIDENT

Appropriations, 2002....................................        $450,000
Budget estimate, 2003...................................         450,000
Committee recommendation................................         450,000

    The fiscal year 2003 budget request for compensation of the 
President is $450,000. This amount includes $400,000 for the 
direct salary of the President as authorized by 3 U.S.C. 102, 
and a $50,000 expense account for official expenses, with any 
unused portions reverting to the Treasury. This expense account 
is not considered as taxable to the President.
    The Committee recommends the full budget request of 
$450,000 for compensation of the President.

                         SALARIES AND EXPENSES

Appropriations, 2002....................................     $54,651,000
Budget estimate, 2003...................................      84,595,000
Committee recommendation................................      60,212,000

    The Committee recommends an appropriation of $60,212,000 
for the White House Office. This is a decrease of $24,380,000 
below the budget estimate because a portion of the funds 
requested for this account are provided in a new ``Office of 
Homeland Security'' account.
    These funds provide the President with staff assistance and 
provide administrative services for the direct support of the 
President. Public Law 95-570 authorizes appropriations for the 
White House Office and codifies the activities of the White 
House Office.

                      OFFICE OF HOMELAND SECURITY

Appropriations, 2002....................................     $27,000,000
Budget estimate, 2003...................................      24,844,000
Committee recommendation................................      25,301,000

    The Office of Homeland Security was created by Executive 
Order 13288 which was signed by the President on October 8, 
2001. The purpose of the Office, as stated in the Executive 
Order, is ``to develop and coordinate the implementation of a 
comprehensive national strategy to secure the United States 
terrorist threats or attacks.'' The increase above the 
President's request is for pay parity.

                 Executive Residence at the White House


                           OPERATING EXPENSES

Appropriations, 2002....................................     $11,695,000
Budget estimate, 2003...................................      12,228,000
Committee recommendation................................      12,339,000

    The Committee recommends an appropriation of $12,339,000 
for the Executive Residence at the White House. The increase 
above the request is for pay parity.
    These funds provide for the care, maintenance, 
refurnishing, improvement, heating, and lighting, including 
electrical power and fixtures, of the Executive Residence.
    The Executive Residence staff provides for the operation of 
the Executive Residence. A staff of 40 domestic employees 
accomplish general housekeeping, prepare and serve meals, greet 
visitors, and provide services as required in support of 
official and ceremonial functions. A staff of 33 tradespersons, 
including plumbers, carpenters, painters, on a single shift; 
electricians on a double shift; and operating engineers on a 
24-hour basis, maintains and makes repairs, minor 
modifications, and improvements to the 132 rooms and the 
mechanical systems, and provides support for official and 
ceremonial functions.
    A staff of 12 specialized employees provide services 
necessary to the operation of the White House and official and 
ceremonial functions. This staff includes four florists, four 
curators, and four calligraphers.
    An administrative staff consists of the chief usher, four 
assistant ushers, one executive grounds superintendent, one 
operating accountant, one accounting technician, one computer 
network engineer, and one administrative officer. This staff is 
charged with management and administrative functions of the 
Executive Residence. This requires coordination with the 
Executive Office of the President, the National Park Service, 
the military, the U.S. Secret Service, the General Services 
Administration, and other agencies.
    During larger events, the Executive Residence staff is 
assisted by contract personnel under personal services contract 
agreements (services by agreement) to provide additional help 
as required for official and ceremonial functions.

                   WHITE HOUSE REPAIR AND RESTORATION

Appropriations, 2002....................................      $8,625,000
Budget estimate, 2003...................................       1,200,000
Committee recommendation................................       1,200,000

    The Committee recommends an appropriation of $1,200,000 for 
White House Repair and Restoration. The Committee 
recommendation is equal to the budget estimate.
    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 the capital improvement projects at the 
Executive Residence at the White House.

                  Special Assistance to the President


                         SALARIES AND EXPENSES

Appropriations, 2002....................................      $3,925,000
Budget estimate, 2003...................................       4,066,000
Committee recommendation................................       4,093,000

    The Committee recommends an appropriation of $4,093,000 for 
special assistance to the President. The increase above the 
request is for pay parity.
    The ``Special assistance to the President'' account was 
established on September 26, 1970, to enable the Vice President 
to provide assistance to the President. This assistance takes 
the form of directed and special Presidentially assigned 
functions.
    The objective of the Office of the Vice President is to 
efficiently and effectively advise, assist, and support the 
President in the areas of domestic policy, national security 
affairs, counsel, administration, press, scheduling, advance, 
special projects, and assignments. Assistance is also provided 
for the wife of the Vice President.
    The Vice President also has a staff funded by the Senate to 
assist him in the performance of his duties in the legislative 
branch.
    The level of funding recommended by the Committee will 
allow for 24 full-time permanent positions in fiscal year 2003.

                Official Residence of the Vice President


                           OPERATING EXPENSES

Appropriations, 2002....................................        $318,000
Budget estimate, 2003...................................         324,000
Committee recommendation................................         325,000

    The Committee recommends an appropriation of $325,000 for 
the official residence of the Vice President. The increase 
above the request is for pay parity.
    The ``Official Residence of the Vice President 
(residence)'' account was established by Public Law 93-346 on 
July 12, 1974. The residence is located on the grounds of the 
Naval Observatory in the District of Columbia and serves as a 
facility for official and ceremonial functions and as a home 
for the Vice President and his family.
    The objective of the ``Residence'' account is to provide 
for the care of, operation, maintenance, refurnishing, 
improvement, and heating and lighting of the residence and to 
provide such appropriate equipment, furnishings, dining 
facilities, services, and provisions as may be required to 
enable the Vice President to perform and discharge the duties, 
functions, and obligations associated with his high office.
    Funds to renovate the residence are provided to the 
residence through the Department of the Navy budget. The 
Committee has had a longstanding interest in the condition of 
the residence and expects to be kept fully apprised by the Vice 
President's office of any and all renovations and alterations 
made to the residence by the Navy.

                      Council of Economic Advisers


                         SALARIES AND EXPENSES

Appropriations, 2002....................................      $4,211,000
Budget estimate, 2003...................................       4,405,000
Committee recommendation................................       4,444,000

    The Committee recommends an appropriation of $4,444,000 for 
salaries and expenses of the Council of Economic Advisers. The 
increase above the request is for pay parity.
    The Council of Economic Advisors 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 the preparation of the 
annual Economic Report of the President to Congress.

                      Office of Policy Development


                         SALARIES AND EXPENSES

Appropriations, 2002....................................      $4,142,000
Budget estimate, 2003...................................       4,221,000
Committee recommendation................................       4,254,000

    The Committee recommends $4,254,000 for the Office of 
Policy Development. The increase above the request is for pay 
parity.
    The Office of Policy Development supports the National 
Economic Council and the Domestic Policy Council, in carrying 
out their responsibilities to advise and assist the President 
in the formulation, coordination, and implementation of 
economic and domestic policy. The Office of Policy Development 
also provides support for other domestic policy development and 
implementation activities as directed by the President.

                       National Security Council


                         SALARIES AND EXPENSES

Appropriations, 2002....................................      $7,494,000
Budget estimate, 2003...................................       9,525,000
Committee recommendation................................       9,600,000

    The Committee recommends an appropriation of $9,600,000 for 
the salaries and expenses of the National Security Council 
(NSC). The increase above the request is for pay parity.
    The primary purpose of the Council is to advise the 
President with respect to the integration of domestic, foreign, 
and military policies relating to the national security.
    The funding level provided by the Committee will support 60 
full-time equivalent positions, or the same since the fiscal 
year 1996 level for the normal activities of the NSC.

                        Office of Administration


                         SALARIES AND EXPENSES

Appropriations, 2002....................................     $96,995,000
Budget estimate, 2003...................................      70,128,000
Committee recommendation................................      70,338,000

    The Committee has provided $70,338,000 to the Office of 
Administration for fiscal year 2003. The increase above the 
request is for pay parity.
    The Office of Administration's mission is to provide high-
quality, cost-effective administrative services to the 
Executive Office of the President. These services, defined by 
Executive Order 12028 of 1977, include financial, personnel, 
library and records services, information management systems 
support, and general office services.
    The Office of Administration receives reimbursements for 
information management support and general office services.

                    Office of Management and Budget


                         SALARIES AND EXPENSES

Appropriations, 2002....................................     $70,752,000
Budget estimate, 2003...................................      70,752,000
Committee recommendation................................      71,370,000

    The Committee recommends an appropriation of $71,370,000. 
The increase above the request is for pay parity.
    The Office of Management and Budget (OMB) assists the 
President in the discharge of his budgetary, management, and 
other executive responsibilities.
    OMB-wide offices.--Executive direction and coordination for 
all Office of Management and Budget activities is provided. 
This includes the Director's immediate office as well as staff 
support in the areas of budget review, administration, public 
affairs, office of communications, legislative reference, 
legislative affairs, economic policy, and general counsel. 
Budget instructions and procedures are developed, review of 
agency estimates is coordinated, budget data systems are 
maintained, agency financial management plans are reviewed, the 
budget document is prepared, and scorekeeping is accomplished.
    National security and international affairs; general 
government and finance; natural resources, energy, and science; 
education, income maintenance, and labor; and health/
personnel.--Agency programs, budget requests, and management 
activities are examined, appropriations are apportioned, 
proposed changes in agency functions are studied, and special 
studies aimed at establishing goals and objectives that would 
result in long- and short-range improvements in the agencies' 
financial, administrative, and operational management are 
conducted.
    Financial management.--In conjunction with the Chief 
Financial Officers Council, prepares the Government-wide 
financial management status report and 5-year plan, monitors 
execution of the plan; provides policy guidance on preparation 
and audit of financial statements, financial systems 
requirements, management controls, and cost accounting and 
audit requirements for the non-Federal grantee community.
    Information and regulatory affairs.--Agency proposals to 
implement or revise Federal regulations and information 
collection requirements are reviewed and coordinated. 
Information resources management and statistical policies and 
practices are analyzed and developed.
    Procurement policy.--The Office of Federal Procurement 
Policy is responsible for promoting economy, efficiency, and 
effectiveness in the procurement of property and services by 
and for the executive branch.

                       GOVERNMENT PRINTING OFFICE

    The Committee strongly opposes the Office of Management and 
Budget's plans, announced in a May 3, 2002, memorandum (M-02-
07), to ignore the statutory requirement that the procurement 
of Government publications must be conducted through the 
Government Printing Office (GPO). Not only has the 
administration announced an intention to completely disregard a 
law which has been in place since 1895 and strengthened in 
1994, it has failed to consider the consequences particularly 
in terms of Government printing costs and public access to 
Government publications.
    With respect to costs, GPO's analysis shows that if all 
executive branch printing were to be removed from GPO, the cost 
to the Government could potentially increase over current 
levels by a range of $231,500,000 to $335,200,000 in the first 
year. With respect to the Federal depository library program, 
there currently is no mechanism other than GPO to ensure 
distribution to the 1,300 depository libraries nationwide, 
thereby depriving the public of access to Government 
publications.
    The Committee directs the administration to abide by the 
statutory requirement, 44 U.S.C. 501, that printing be done by 
or through the Government Printing Office.

                  HARRY S TRUMAN MEMORIAL SCHOLARSHIPS

    The Committee strongly supports the Truman Scholarship 
program and its original intentions. The Committee is 
concerned, however, that the regulations regarding awarding a 
scholarship to at least one qualified applicant from each State 
has been violated numerous times in recent years. The Committee 
directs the Board of the Truman Scholarship program to strictly 
adhere to its statutory mandate to ``assure that at least one 
Truman scholar shall be selected each year from each State in 
which there is at least one resident applicant who meets the 
minimum criteria established by the Foundation.''

                 Office of National Drug Control Policy


                         salaries and expenses

Appropriations, 2002....................................     $25,263,000
Budget estimate, 2003...................................      25,458,000
Committee recommendation................................      26,605,000

    The Committee recommends an appropriation of $26,605,000. 
This recommendation includes $149,000 for pay parity.
    The Office of National Drug Control Policy (ONDCP), 
established by the Anti-Drug Abuse Act of 1988, and 
reauthorized by Public Law 105-277, is charged with developing 
policies, objectives and priorities for the National Drug 
Control Program. In addition, ONDCP administers the Counterdrug 
Technology Assessment Center (CTAC), the High Intensity Drug 
Trafficking Areas (HIDTA) program and the Special Forfeiture 
Fund. The account provides funding for personnel compensation, 
travel, and other basic operations of the Office, and for 
general policy research to support the formulation of the 
National Drug Control Strategy. Funds are also provided for the 
National Alliance for Model State Drug Laws, which encourages 
States to adopt and implement laws, policies, and regulations 
to reduce drug trafficking, drug use, and their related 
consequences.

                COUNTERDRUG TECHNOLOGY ASSESSMENT CENTER

Appropriations, 2002....................................     $42,300,000
Budget estimate, 2003...................................      40,000,000
Committee recommendation................................      40,000,000

    The Committee recommends an appropriation of $40,000,000 
for the Counterdrug Technology Assessment Center (CTAC). This 
funding includes $22,000,000 for the continuation of the 
technology transfer program by CTAC to State and local law 
enforcement in their efforts to combat drugs. Pursuant to the 
Office of National Drug Control Policy Reauthorization Act of 
1998 (Title VII of Division C of Public Law 105-277), CTAC 
serves as the central counterdrug research and development 
organization for the U.S. Government.
    The Committee expects multiagency research and development 
programs to be coordinated by CTAC in order to prevent 
duplication of effort and to assure that whenever possible, 
those efforts provide capabilities that transcend the need of 
any single Federal agency. Prior to the obligation of these 
funds, the Committee expects to be notified by the chief 
scientist on how these funds will be spent; it also expects to 
receive periodic reports from the chief scientist on the 
priority counterdrug enforcement research and development 
requirements identified by the Center and on the status of 
projects funded by CTAC.
    The Committee continues to believe CTAC should work closely 
and cooperatively with the individual law enforcement agencies 
in the definition of a national research and development 
program which addresses agency requirements with respect to 
timeliness, operational utility, and consistency with agency 
budget plans.
    Last year the Committee provided additional funds for CTAC 
to focus on conducting substance abuse research and training 
Native American physicians in the field of substance abuse 
research. The Committee requests that the chief scientist 
provide periodic updates on this process.

                COUNTERDRUG TECHNOLOGY TRANSFER PROGRAM

    The Committee fully supports the continuation of this 
program and, therefore, has provided $22,000,000 for its 
operation in fiscal year 2003. The Committee believes that this 
program demonstrates the best that the Federal Government has 
to offer to State and local law enforcement in their efforts to 
combat drug related crimes. The Committee is encouraged by the 
positive reception this program has received by State and local 
law enforcement agencies as current requests for technology 
continue to outpace resources by over four to one. The 
Committee expects that CTAC will conduct further outreach to 
State and local agencies to educate them about the program. 
Finally, the Committee would encourage CTAC to work with 
private industry to make their developed technology available 
to State and local law enforcement through this program. The 
Committee requests that ONDCP report within 60 days after the 
date of enactment of the fiscal year 2003 appropriations bill 
on the number of requests received, promotion efforts to State 
and local law enforcement, and the effectiveness and interest 
in this program by these law enforcement communities.

                  Funds Appropriated to the President


                     FEDERAL DRUG CONTROL PROGRAMS

                 HIGH-INTENSITY DRUG TRAFFICKING AREAS

                     (INCLUDING TRANSFER OF FUNDS)

Appropriations, 2002....................................    $226,350,000
Budget estimate, 2003...................................     206,350,000
Committee recommendation................................     226,350,000

    The Committee recommends an appropriation of $226,350,000, 
which is $20,000,000 above the budget request. The Committee 
directs that funding shall be provided for the existing High 
Intensity Drug Trafficking Areas (HIDTA) at no less than the 
fiscal year 2001 level.
    The Committee has included a new provision to prohibit the 
use of funds to consolidate management of the California, 
Arizona, New Mexico, and Texas partnerships in the El Paso 
office. Such a centralization of the Southwest Border HIDTA 
could undermine operational flexibility and law-enforcement 
support for the HIDTA program, ultimately degrading its 
effectiveness.
    The Committee is deeply disturbed over ONDCP actions and 
communications with the Committee concerning the HIDTA program 
over the past year. The Committee provided additional funds in 
fiscal year 2002 for the HIDTA program to increase funding for 
or expand existing HIDTAs, or to fund newly designated HIDTAs. 
The Committee was not consulted when ONDCP decided how to 
obligate these funds, in some cases for different purposes. In 
addition, the Committee is concerned that those decisions were 
not completely thought out, and that necessary programmatic 
personnel were not consulted.
    The Committee is aware of the continued interest in the 
creation of new, and expansion of existing, HIDTAs. The 
Committee is also profoundly aware of proposals submitted to 
ONDCP for the additional $20,000,000 provided by the Congress 
in fiscal year 2002 that went unfunded in ONDCP's spending 
plan. Prior to any notification or any obligation of funds, the 
Committee directs ONDCP to submit for approval to the Committee 
on Appropriations a spending plan for the additional 
$20,000,000 for fiscal year 2003. The Committee directs ONDCP 
to review the Senate report for suggestions on how to allocate 
portions of the additional funds and requires ONDCP to provide 
a detailed explanation to the Committee on Appropriations on 
the reasons why any of the Senate recommendations receive an 
amount lower than that requested. The Committee also directs 
ONDCP to provide a detailed timeline and explanation to the 
Committee by September 30, 2002, on how the additional 
$20,000,000 provided in fiscal year 2002 was obligated. This 
explanation should include a list of the names and titles of 
all parties involved in the decisions.
    The HIDTA program was established by the Anti-Drug Abuse 
Act of 1988, as amended, and the Office of National Drug 
Control Policy's reauthorization, Public Law 105-277, to 
provide assistance to Federal, State and local law enforcement 
entities operating in those areas most adversely affected by 
drug trafficking. In allocating the HIDTA funds, the Committee 
expects the Director of ONDCP to ensure that the activities 
receiving these limited additional resources are used strictly 
for implementing the strategy for each HIDTA, taking into 
consideration local conditions and resource requirements. These 
funds should not be used to supplant existing support for 
ongoing Federal, State, or local drug control operations 
normally funded out of the operating budgets of each agency. 
The remaining funds may be transferred to Federal agencies and 
departments to support Federal antidrug activities.
    The Committee believes that the Director should take steps 
to ensure that the HIDTA funds are transferred to the 
appropriate drug control agencies expeditiously. To ensure that 
the funding allocations meet the priorities outlined in the 
strategies, the Committee instructs the Director to submit the 
strategies, along with the identification of how the funds will 
be spent, to the Committee for approval prior to the obligation 
of the funds. The Committee also expects to be notified if any 
changes are made in the spending plans presented to it during 
the course of the fiscal year. The Committee further instructs 
the Director to submit the updated 2003 strategies for each of 
the HIDTA's to the Committee for review and to obligate the 
HIDTA funds within 120 days of enactment of this act. This 
provision may be waived if a request is made to the Committee 
and has been approved in advance according to the normal 
reprogramming procedures. The Committee expects the Director to 
take actions necessary to ensure that all HIDTA funds are being 
used to support only those activities which are directly linked 
to the individual HIDTA strategies recommended by the HIDTA 
coordinators and which support the goals and objectives 
outlined in each of these strategies.

                          ROCKY MOUNTAIN HIDTA

    The Committee understands that the Office of National Drug 
Control Policy is reviewing a proposal from the Rocky Mountain 
High Intensity Drug Trafficking Area to expand its operation 
into five counties in Montana. The Committee encourages ONDCP 
to closely and expeditiously review the merit of this request. 
However, the Committee directs that any expansion of the Rocky 
Mountain HIDTA be accomplished in such a way so as not to 
diminish the funding currently available to the existing HIDTA 
entities.

                      ECSTASY REDUCTION INITIATIVE

    The Committee is extremely concerned about the use of 
Ecstasy among teenagers and young adults. The use of this 
dangerous drug has reached alarming proportions among junior 
high and high school students, and the numerous fatalities 
associated with Ecstasy do not appear to have had any impact on 
the drug's popularity. The Committee encourages the Rocky 
Mountain HIDTA to continue the Ecstasy reduction initiative to 
help deal with this steadily increasing problem, with emphasis 
on designated counties in Colorado.

                    COMMUNITY INVOLVEMENT IN HIDTAS

    The Committee recognizes the positive impact and successes 
of the cooperative law enforcement arrangements of the HIDTA. 
As HIDTAs have matured, they have demonstrated an ability to 
address their HIDTA-specific problems with unique and effective 
solutions. Many HIDTAs have begun to reach outside of the law 
enforcement community to other organizations which affect the 
effort to combat drugs in our communities. The Committee has 
seen success in the HIDTAs as they begin to incorporate the 
important work of those in the community itself, such as in the 
areas of treatment and counseling. The Committee is encouraged 
by this rounding out of the HIDTAs' efforts and encourages the 
HIDTAs to continue to further develop these relationships.

                             MIDWEST HIDTA

    The Committee is concerned about the growing production, 
trafficking, and use of methamphetamine throughout the Midwest 
HIDTA. The Committee is distressed that ONDCP did not provide 
more funds out of the additional $20,000,000 fiscal year 2002 
to address this situation.
    The Committee notes that the State of Missouri, which is 
part of the Midwest HIDTA, had the highest number of 
methamphetamine lab seizures in the country. The fight against 
methamphetamine places a tremendous burden on State and local 
law enforcement. Additional funding would allow Missouri to 
continue to target methamphetamine labs, and would enable ONDCP 
to designate additional counties as part of the Midwest HIDTA 
where appropriate.

              BALANCED FOCUS BETWEEN URBAN AND RURAL AREAS

    The Committee is also concerned about the direction ONDCP 
seems to be taking the HIDTA program with the new National 
Priority Targeting Project. According to ONDCP, this Project 
will enhance existing HIDTA-affiliated law enforcement efforts 
to curtail the availability of illegal drugs through the 
disruption and dismantlement of specific major drug trafficking 
organizations that coincide with Department of Justice National 
Priority Targets (``NPTs''). The Committee is concerned that 
this ``king-pin'' strategy could significantly impact the level 
of support provided to cases that have been regional impact 
targets in the past.

                            GULF COAST HIDTA

    The Committee recognizes that the Gulf Coast HIDTA covers 
the full spectrum of drug trafficking and abuse, trafficking 
modalities and types of criminal organizations. In its 
continued effort to combat these threats, the Gulf Coast HIDTA 
is seeking to expand into new areas of Louisiana, Mississippi, 
and Alabama. ONDCP is encouraged to work with Louisiana and 
other interested States to further their initiatives.

                           NEW ENGLAND HIDTA

    The Committee recognizes that the growing availability and 
abuse of inexpensive, high-purity heroin has had a harmful 
impact on the New England region, resulting in an increase in 
the number of drug-related arrests, overdose deaths and 
injuries, and individuals seeking treatment for addiction. The 
Committee is also aware of the extraordinary challenges posed 
by increasing drug importation into the region across the 
northern U.S. border and via marine transportation. Therefore, 
the Committee directs ONDCP to focus additional resources on 
these emerging drug threats and to work with the New England 
HIDTA to address unmet needs in the areas of task force 
expansion, training, intelligence, space and equipment, with a 
particular focus on Rhode Island.

                           SOUTHWEST INDIANA

    The Committee is aware of a proposal to create a HIDTA in 
Southwest Indiana to combat the drastic increase in the 
production, use and distribution of methamphetamine. The 
Indiana State Police, in conjunction with local and Federal 
officials, would target the following counties in Southwest 
Indiana: Benton, Clay, Crawford, Daviess, Dubois, Fountain, 
Gibson, Greene, Jackson, Jasper, Knox, Lawrence, Martin, 
Monroe, Morgan, Montgomery, Newton, Orange, Owen, Parke, Perry, 
Pike, Posey, Putnam, Spencer, Sullivan, Vanderburgh, Vigo and 
Warrick. The State of Indiana has experienced an exponential 
increase in the number of methamphetamine labs that have been 
seized--43 in 1998, 129 in 1999, 314 in 2000, and 546 in 2001. 
State Police estimate that they will seize over 800 labs in 
2002. Recognizing current resource limitations, the Committee 
has provided additional discretionary funding and directs ONDCP 
to work with the affected counties to determine whether they 
meet the statutory criteria required for designation as a 
HIDTA.

                            MILWAUKEE HIDTA

    The Committee understands that the ONDCP is reviewing a 
proposal to expand the Milwaukee HIDTA to the metropolitan 
areas surrounding Milwaukee along the I-94 corridor connecting 
Milwaukee to Chicago. This extension of the program to Racine, 
Kenosha and Waukesha counties would assist Milwaukee's efforts 
and attack the scourge of drugs in the surrounding communities. 
The Committee has provided additional discretionary funding and 
encourages ONDCP to work with these States and communities to 
determine whether they meet the statutory criteria required for 
designation as a HIDTA and direct the necessary resources 
towards this proposal.

                         SOUTHWEST BORDER HIDTA

    The Committee recognizes the strides that have been made by 
the New Mexico partnership of the Southwest Border HIDTA in 
disrupting heroin trafficking in New Mexico. Despite these 
gains, however, the availability of heroin continues to be 
prevalent in Rio Arriba County and other counties in New 
Mexico. The Committee directs the Director of ONDCP to evaluate 
the situation and work with State and local law enforcement to 
provide adequate resources to target this continuing threat.

                       PHILADELPHIA/CAMDEN HIDTA

    The Committee is aware of the current coordination of the 
State of Delaware with the Philadelphia/Camden HIDTA. As a 
result of this strong relationship, the Committee directs the 
Director of ONDCP to evaluate the current situation to 
determine whether or not Delaware meets the statutory 
requirements to qualify for inclusion into the Philadelphia/
Camden HIDTA.

                            APPALACHIA HIDTA

    The Committee is concerned that the three Appalachia HIDTA 
States, West Virginia, Kentucky, and Tennessee, along with 
California and Hawaii, account for over 77 percent of the 
domestic production of marijuana. The three Appalachia HIDTA 
States are also producing some of the most potent marijuana 
available. For fiscal year 2000, the West Virginia National 
Guard, which has mounted a vigorous counterdrug program in 
cooperation with the Appalachia HIDTA, estimates that the 
eradicated marijuana crop in West Virginia yielded plants 
valued at $57,000,000. Therefore, the Committee directs ONDCP 
to work with State and local law enforcement officials to 
provide additional resources to combat this threat.

                          SOUTH CAROLINA HIDTA

    The Committee is aware of a proposal to create a HIDTA in 
Charleston County, South Carolina. Charleston, South Carolina 
is the fourth largest port in the United States, with 177,000 
containers annually entering the United States. The Committee 
understands the proposal would target, disrupt, and dismantle 
narcotics smuggling operations at the Ports of Charleston, 
Georgetown, and Port Royal, South Carolina. The Committee 
directs ONDCP to work with the Federal, State, and local law 
enforcement agencies in South Carolina to determine whether 
these areas meet the statutory criteria required for 
designation as a HIDTA.

                            NORTHWEST HIDTA

    The Committee recognizes that Washington State has recently 
experienced tremendous growth in the production and use of 
methamphetamine. In fact, Washington is now second in the 
country in methamphetamine production, after California. 
Combating methamphetamine and other illegal drugs takes a 
multi-faceted approach, including the use of narcotics canines 
and support from various Federal agencies. Washington State has 
recently lost a number of critical drug detecting canines. 
Therefore, the Committee directs ONDCP to focus additional 
resources on these emerging drug threats, and in particular 
funding for additional narcotic canines to work with the 
Northwest HIDTA to address unmet needs in detection and 
enforcement.

         HIDTA EFFORTS TO COMBAT METHAMPHETAMINE IN RURAL AREAS

    The Committee is concerned about the increasing threat 
posed by methamphetamine production, trafficking, and use, 
especially in rural, underpopulated areas. Recognizing that the 
Director of ONDCP designated the Midwest HIDTA in 1996 to 
specifically address this threat, the Committee encourages 
ONDCP to continue to focus available resources on combating 
this emerging drug threat not only in the Midwest HIDTA, but in 
all HIDTAs operating in traditionally underserved areas.

                        SPECIAL FORFEITURE FUND

Appropriations, 2002....................................    $239,400,000
Budget estimate, 2003...................................     251,300,000
Committee recommendation................................     172,700,000

    The Committee recommends an appropriation of $172,700,000. 
The Committee provides $100,000,000 for the continuation of the 
National Youth Anti-Drug Media Campaign. The Committee included 
a total of $5,900,000 for the United States Anti-Doping Agency.
    The Anti-Drug Abuse Act of 1988, as amended, and the Office 
of National Drug Control Policy's reauthorization, Public Law 
105-277, established the Special Forfeiture Fund to be 
administered by the Director of ONDCP. The monies deposited in 
the Fund support high-priority drug control programs and may be 
transferred to drug control agencies or may be directly 
obligated by the Director of ONDCP.

                        NATIONAL MEDIA CAMPAIGN

    The Committee has been supportive of the national media 
campaign and has provided consistent funding for this program. 
When this program was initially funded by the Congress in 
fiscal year 1998, it was with the understanding that within 3 
years there would be demonstrable behavior changes in America's 
youth with relation to drug use. To date, the Congress has 
provided over $928,872,000 for this program and has done so at 
the expense of many other important law enforcement needs. The 
Committee is concerned that drug use is clearly increasing in 
spite of the national media campaign, leading some observers to 
conclude it has not had a noticeable impact on drug use among 
America's youth.
    The May 2002 evaluation by Westat and the Annenberg School 
for Communication of the University of Pennsylvania confirmed 
numerous concerns over the effectiveness of the media campaign. 
It concluded that while there appears to be a favorable effect 
on parents, youth--the target audience for the program--do not 
seem to obtain similar benefits. It was the intent of both the 
authorizers and the appropriators to affect the behavior of 
drug use among youth over the course of a 5-year program. 
Unfortunately, we find ourselves back at square one after 
spending close to $1,000,000,000 of taxpayer money.
    The Committee held a hearing on this subject on June 19, 
2002, shortly after the release of the Westat evaluation. The 
issues raised during the hearing highlighted the numerous 
controversies associated with the campaign and speculation 
regarding the cause. ONDCP is staking the future of the media 
campaign on an advertising effort it developed outside the 
parameters and participants specified in the authorization. 
ONDCP also stated that to move forward with the campaign, 
additional testing needed to be performed prior to any airing 
of advertising. The Committee agrees with the Director on fully 
testing the advertising.
    The Committee has cautioned ONDCP for a number of years 
about the growing number of controversies and maintaining the 
true essence of the program as authorized by Congress. Recent 
events have resulted in a loss of the Committee's confidence in 
the management of the campaign, and the reason the Committee 
has decreased the allocation for the campaign.

                       DRUG-FREE COMMUNITIES ACT

    The accelerating rate of drug use by young Americans is a 
major concern that must be addressed. The Committee, therefore, 
provides $60,000,000 in support of the Drug-Free Communities 
Act. These funds will be used to support the establishment of 
local counterdrug efforts that are characterized by strong 
conditions for local initiatives, support, and accountability. 
In addition, the requirement for participating communities to 
match funding will help ensure the degree of commitment 
necessary to succeed.
    The Drug Free Communities Support Program Reauthorization 
(Public Law 107-82) authorized ONDCP to make a grant to 
establish a National Community Anti-Drug Coalition Institute. 
ONDCP instead solicited applications for a cooperative 
agreement. The sponsors of the provision did not intend for the 
National Community Anti-Drug Coalition Institute to be hampered 
by layers of bureaucracy which duplicate current efforts.
    Congress created an advisory commission to oversee and 
guide the program when it authorized the Drug Free Communities 
Support Program in 1997. Creating a second advisory committee 
to oversee the National Community Anti-Drug Coalition Institute 
is a needless duplication and expense. In addition, avoiding 
programmatic duplications of effort should be the 
responsibility of ONDCP, and should not be shifted to the grant 
recipient.
    The requirements for a grant recipient were clearly written 
in the authorizing legislation, and the sponsors of the 
reauthorization legislation are unaware of any organization 
besides the Community Anti-Drug Coalitions of America who meet 
these qualifications. As a result, the Committee has included 
language directing ONDCP to provide a $2,000,000 grant directly 
to the Community Anti-Drug Coalitions of America to establish 
and maintain the National Community Anti-Drug Coalition 
Institute.

                      NATIONAL DRUG-FREE WORKPLACE

    The Committee recognizes the work of the National Drug-Free 
Workplace Alliance to promote and assist the establishment of 
drug-free workplace programs and provide comprehensive drug-
free workplace services to businesses. In addition, the 
Committee understands that the Alliance provides technical 
assistance and up-to-date workplace substance abuse information 
to communities, drug-free workplace organizations, and other 
similar groups through a national network of experts and 
professionals with drug-free workplace interests. The Committee 
urges ONDCP to work with the National Drug-Free Workplace 
Alliance as it coincides with ONDCP's mission and encourages 
cooperative efforts relating to the National Clearinghouse.

                    UNITED STATES ANTI-DOPING AGENCY

    The Committee provides $5,900,000 for efforts of the United 
States Anti-Doping Agency (USADA) under the Special Forfeiture 
Fund. The Committee directs ONDCP to provide the entire amount 
directly to USADA within 30 days after enactment.
    USADA was created to oversee testing, education, research, 
and adjudication on behalf of America's athletes participating 
in the Olympic, Pan American, and Paralympic Games. The 
Committee has provided additional funds to increase the number 
of ``No-Advanced-Notice'' tests, to increase research funding 
at university and research laboratories, and to expand their 
efforts to educate the youth of America on health issues and 
the ethics of competing fairly in sport. The Committee 
continues to be impressed with the operations of this new 
agency and wishes to congratulate them on the international 
recognition of their efforts.

                          DRUG COURT INSTITUTE

    The Committee provides $1,000,000 for the National Drug 
Court Institute. The Committee is aware of the extraordinary 
growth in drug courts across the country and the important 
training of new drug courts that the Institute provides. Drug 
courts provide an effective means to fight drug-related crime 
through the cooperative efforts of State and local law 
enforcement, the judicial system, and the public health 
treatment network.

                     TITLE IV--INDEPENDENT AGENCIES

 Committee for Purchase From People Who Are Blind or Severely Disabled

                         SALARIES AND EXPENSES

Appropriations, 2002....................................      $4,629,000
Budget estimate, 2003...................................       4,629,000
Committee recommendation................................       4,658,000

    The Committee recommends $4,658,000 for the Committee for 
Purchase From People Who Are Blind or Severely Disabled 
(CPPBSD). The increase above the request is for pay parity.
    The CPPBSD administers the Javits-Wagner-O'Day Act (JWOD) 
of 1971, as amended. Its primary objective is to use the 
purchasing power of the Federal Government to provide people 
who are blind or have other severe disabilities with employment 
and training that will develop and improve job skills as well 
as prepare them for employment options outside the JWOD 
program. In fiscal year 2003, the Committee's goal is to employ 
approximately 50,000 people who are blind or have other severe 
disabilities in 650 producing nonprofit agencies. The 
Committee's duties include promoting the program; determining 
which products and services are suitable for Government 
procurement from qualified nonprofit agencies serving people 
who are blind or have other severe disabilities; maintaining a 
procurement list of such products and services; determining the 
fair market price for products and services on the procurement 
list; and making rules and regulations necessary to carry out 
the purposes of the Act. In fiscal year 2003, the Committee's 
goal is to have sales of $1.6 billion.
    The Committee staff's responsibilities include promoting 
and assessing the overall program; supervising the selection 
and assignment of new products and services; assisting in 
establishing prices; reviewing and adjusting these prices; 
verifying the qualifications of nonprofit agencies; and 
monitoring their performance.

                      Federal Election Commission


                         SALARIES AND EXPENSES

Appropriations, 2002....................................     $43,689,000
Budget estimate, 2003...................................      45,244,000
Committee recommendation................................      45,668,000

    The Committee recommends an appropriation of $45,668,000 
for the Federal Election Commission. The increase above the 
President's request is for pay parity.
    The Federal Election 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.

                   Federal Labor Relations Authority


                         SALARIES AND EXPENSES

Appropriations, 2002....................................     $26,524,000
Budget estimate, 2003...................................      28,684,000
Committee recommendation................................      28,950,000

    The Committee recommends an appropriation of $28,950,000 
for the Federal Labor Relations Authority. The increase above 
the President's request is for pay parity.
    The Federal Labor Relations Authority (FLRA) serves as a 
neutral party in the settlement of disputes that arise between 
unions, employees, and agencies on matters outlined in the 
Federal Service Labor Management Relations statute, decides 
major policy issues, prescribes regulations, and disseminates 
information appropriate to the needs of agencies, labor 
organizations, and the public. Establishment of the FLRA gives 
full recognition to the role of the Federal Government as an 
employer.
    In addition, the FLRA is engaged in case-related 
interventions and training and facilitation of labor-management 
partnerships and in resolving disputes. FLRA promotes labor-
management cooperation by providing training and assistance to 
labor organizations and agencies on resolving disputes, 
facilitates the creation of partnerships, and trains the 
parties on rights and responsibilities under the Federal 
Relations Labor Relations Management statute.

                    General Services Administration


     FEDERAL BUILDINGS FUND--LIMITATIONS ON AVAILABILITY OF REVENUE

                     (INCLUDING TRANSFER OF FUNDS)

    The Federal Buildings Fund program consists of the 
following activities financed from rent charges:
    Construction and acquisition of facilities.--Space is 
acquired through the construction or purchase of facilities and 
prospectus-level extensions to existing buildings. All costs 
directly attributable to site acquisition, construction, and 
the full range of design and construction services, and 
management and inspection of construction projects are funded 
under this activity.
    Repairs and alterations.--Repairs and alterations of public 
buildings as well as associated design and construction 
services are funded under this activity. Protection of the 
Government's investment, health and safety of building 
occupants, transfer of agencies from leased space, and cost 
effectiveness are the principal criteria used in establishing 
priorities. Primary consideration is given to repairs to 
prevent deterioration and damage to buildings, their support 
systems, and operating equipment. This activity also provides 
for conversion of existing facilities and non-prospectus 
extensions.
    Installment acquisition payments.--Payments are made for 
liabilities incurred under purchase contract authority and 
lease purchase arrangements. The periodic payments cover 
principal, interest, and other requirements.
    Rental of space.--Space is acquired through the leasing of 
buildings including space occupied by Federal agencies in U.S. 
Postal Service facilities, 153 million rentable square feet in 
fiscal year 2002, and 157 million rentable square feet in 
fiscal year 2003.
    Building operations.--Services are provided for Government-
owned and leased facilities, including cleaning, utilities and 
fuel, protection, maintenance, miscellaneous services (such as 
moving, evaluation of new materials and equipment, and field 
supervision), and general management and administration of all 
real property related programs including salaries and benefits 
paid from the Federal Buildings Fund.
    Other programs.--When requested by Federal agencies, the 
Public Buildings Service provides building services such as 
tenant alterations, cleaning and other operations, and 
protection services which are in excess of those services 
provided under the commercial rental charge. For presentation 
purposes, the balances of the Unconditional Gifts of Real, 
Personal, or Other Property trust fund have been combined with 
the Federal Buildings Fund.

                      CONSTRUCTION AND ACQUISITION

Limitation on availability, 2002........................    $662,680,000
Limitation on availability, 2003........................     556,574,000
Committee recommendation................................     653,913,000

    The Committee recommends $653,913,000 for the construction 
and acquisition account. The Committee recommendation is 
$97,339,000 above the President's request.

                        COURTHOUSE CONSTRUCTION

    The Committee encourages the General Services 
Administration (GSA), the administration, and the judiciary to 
continue to work cooperatively to develop a single 
comprehensive plan upon which courthouse construction will be 
based. The Committee continues to believe that a model should 
incorporate utilization rates, courtroom sharing, and safety 
considerations. The use of cost savings measures and careful 
planning will result in a program that can be consistently 
supported. The Committee notes, however, that it has been 
extremely supportive of addressing the courthouse construction 
backlog. The Committee would remind the Administrative Office 
of the U.S. Courts (AOC) and other organizations that the 
Committee has adhered to the jointly agreed to priority list 
and that the Congress is constrained by overall budget 
resolutions and spending caps from accommodating every request.

                           COURTROOM SHARING

    The Committee is aware of conflicting information regarding 
the issue of courtroom sharing. The Committee is concerned that 
in spite of the strict budgetary pressures facing the Federal 
Government, AOC fails to pursue a policy of fiscal restraint 
and approaches the Congress for increases in courthouse 
construction funding above the Administration's request. The 
Congress and the Administration have worked diligently to reign 
in court construction costs and the Committee will continue to 
pursue all avenues with respect to cost containment with or 
without the support of the Courts.
    The Committee notes that the General Accounting Office 
(GAO), in a December 2000 report to the Congress on this issue, 
analyzed the data used in a courtroom sharing study 
commissioned by the Courts. That study criticized a 1997 GAO 
report on the same issue. GAO noted that the Courts did not 
agree with its recommendations, yet also commented that the AOC 
``did not provide any data, analysis, or rationale that would 
give us [GAO] an adequate basis for changing or dropping'' the 
recommendations. The Committee concurs with GAO's concerns and 
urges the AOC to provide the Committee with persuasive 
courtroom use data and analysis, along with its views, to 
justify the number of courtrooms being requested in future 
courtroom construction requests.

                      PORT OF ENTRY INFRASTRUCTURE

    The Committee notes that it has been over 2 years since the 
Port of Entry Infrastructure Assessment Study was delivered to 
the Congress. That study was required as part of the fiscal 
year 2000 Treasury and General Government Appropriations Act 
and included detailed input from the U.S. Customs Service, the 
Immigration and Naturalization Service, and GSA. The study 
identified an enormous backlog of 822 individual infrastructure 
requirements at our Nation's border crossings at an estimated 
gross cost of $784,000,000.
    The events of September 11, 2001 refocused the Nation's 
attention on the need to reinforce our borders. While this 
Committee has fully funded the administration's past requests 
for border facility construction and repair, those projects 
merely scratch the surface of what is required to robustly 
address the infrastructure backlog. The proposed creation of a 
new Department of Homeland Security, with its proposed 
combining of the various existing border agencies, offers the 
opportunity to address this facilities backlog in a cohesive 
manner.
    The Committee therefore directs GSA, in consultation with 
the Office of Management and Budget, the U.S. Customs Service, 
the Immigration and Naturalization Service, and any successor 
border entity which might be created within the proposed new 
Department of Homeland Security, to update the study and submit 
it to the Congress no later than March 14, 2003.
    The Committee also directs that the study identify port of 
entry infrastructure and technology improvements which enhance 
border security and facilitate the flow of legitimate commerce. 
The Committee urges that the study, to the greatest extent 
possible, prioritize projects based on the ability of the 
project to fulfill immediate security requirements and 
facilitate trade across the borders. The Committee recommends 
that the annual courthouse construction projects prioritization 
list submitted by the Administrative Office of the U.S. Courts 
be used as a model for this effort.

                        CHAMPLAIN PORT OF ENTRY

    The Committee acknowledges the untenable conditions at the 
Champlain, New York port of entry and is aware that the General 
Services Administration is currently designing a new border 
facility to improve the safety and efficiency of this critical 
United States and Canada trade corridor. The Committee urges 
the Administration to make the completion of the Champlain port 
of entry a high priority and to include construction funding 
for the facility in the fiscal year 2004 budget request.

                       BURLINGTON, VT COURTHOUSE

    The Committee is pleased that Burlington, VT is included in 
the list of recommended future construction projects provided 
by the Administrative Office of the U.S. Courts. The Committee 
expects GSA to move forward with this project in an expeditious 
manner and give priority to central business districts when 
selecting a location for the new building.

                       ROSENN FEDERAL COURTHOUSE

    The Committee is aware of the shortage of parking in and 
around the Rosenn Federal Courthouse in Wilkes-Barre, 
Pennsylvania, which has caused a number of inconveniences for 
both employees and visitors to the facility. The Committee 
encourages GSA to work with the community to address this 
parking issue, utilizing up to $1,000,000 from funds provided 
for the construction non-prospectus account.

                         FABENS BORDER STATION

    The border station at Fabens in El Paso County, Texas 
consists of temporary buildings. The old permanent station is 
empty and dilapidated. A new inspection facility is needed and 
will be located on a 90-acre site that is part of the 240 acres 
the County of El Paso will acquire. There is also sufficient 
land at the site so that the Texas Department of Transportation 
can construct a truck inspection facility close to the Federal 
facility. It is estimated that the Federal share of costs 
associated with construction of a border station at Fabens will 
be $17,250,000. In order to get this much-needed project 
started, the Committee has provided $2,250,000 for engineering 
and architectural fees associated with the design of the port 
facilities.

                        REPAIRS AND ALTERATIONS

Limitation on availability, 2002........................    $869,376,000
Limitation on availability, 2003........................     986,029,000
Committee recommendation................................     995,589,000

    The Committee recommends new obligational authority of 
$995,589,000 for repairs and alterations in fiscal year 2003. 
This amount is $9,560,000 above the President's request.
    Under this activity, the General Services Administration 
(GSA) executes its responsibility for repairs and alterations 
(R&A) of both Government-owned and leased facilities under the 
control of GSA. The major goal of this activity is to provide 
commercially equivalent space to tenant agencies. Safety, 
quality, and operating efficiency of facilities are given 
primary consideration in carrying out this responsibility. A 
major portion of the fiscal year 2003 program is devoted to 
nondiscretionary work necessary to meet this goal and keep the 
buildings in an occupiable condition.
    R&A workload requirements originate with scheduled onsite 
inspections of buildings by qualified regional engineers and 
building managers. The work identified through these 
inspections is programmed in order of priority into the repairs 
and alterations construction automated tracking system (RACATS) 
and incorporated into a 5-year plan for accomplishment, based 
upon funding availability, urgency, and the volume of R&A work 
that GSA has the capability to execute annually. Beginning in 
fiscal year 1995, design and construction services activities 
associated with the repair and alteration projects are funded 
in this account.
    The R&A program, for purposes of funds control, is divided 
into two types of projects--line item and nonline item. The 
following is a definition of each category of projects:
    Line item projects.--Line item projects are those larger 
projects for which a prospectus is required under the 
provisions of the Public Buildings Act of 1959. Generally, line 
item projects are similar to construction projects in the scope 
of work involved and the multiyear timeframe for project 
completion. Line item projects are listed individually in GSA's 
appropriations acts and the obligational authority for each 
project is limited to the amount shown therein.
    Nonline item projects.--Projects included in this category 
are generally short term in nature and funds can normally be 
obligated within a 1-year period. This category also includes 
projects which are recurring in nature, such as cyclic painting 
and the minor repair of defective building systems; for 
example, mechanical, plumbing, electrical, fire safety, and 
elevator system components.

                  ROGERS COURTHOUSE RENOVATION PROJECT

    The Committee provided funding for the design of the Rogers 
Courthouse renovation project in Denver, Colorado, in fiscal 
year 2002 with the expectation that the construction funding, 
estimated to be $40,000,000, would be requested in fiscal year 
2003. However, due to funding constraints, that level of 
funding is not available within the Federal Buildings Fund. The 
timing of the project had been planned to coordinate with the 
completion of the new Denver courthouse later this year which 
will house the judicial offices currently occupying the Rogers 
Courthouse while renovations are underway. Therefore, in an 
effort to keep this project moving forward, the Committee has 
included an additional $9,000,000 for demolition and asbestos 
removal. The Committee fully expects that the remaining 
construction funds will be requested as part of the fiscal year 
2004 budget submission.

               PITTSBURGH U.S. POST OFFICE AND COURTHOUSE

    The Pittsburgh U.S. Post Office and Courthouse was 
completed in 1934 and must be expanded to accommodate the U.S. 
Courts. Needed alterations include an upgrade of the building's 
exterior, plaza and parking ramp improvements, installation of 
a fire safety system, and expansion of the severely undersized 
main lobby. The Committee provided much needed funding for this 
project in fiscal year 2002. However, in order to complete the 
project, the Committee has provided an additional $2,810,000 in 
fiscal year 2003 for facade and window repairs, sprinkler 
system testing drains, millwork repairs, refurbishment of the 
lobbying revolving doors, sanitary/storm pipe repairs, corridor 
restoration, and replacement of basement garage doors.

                    INSTALLMENT ACQUISITION PAYMENTS

Limitation on availability, 2002........................    $186,427,000
Limitation on availability, 2003........................     178,960,000
Committee recommendation................................     178,960,000

    The Committee recommends a limitation of $178,960,000 for 
installment acquisition payments. The Committee recommendation 
equals the budget estimate.
    The Public Buildings Amendments of 1972 enables GSA to 
enter into contractual arrangements for the construction of a 
backlog of approved but unfunded projects. The purchase 
contracts require the Government to make periodic payments on 
these facilities over varying periods until title is 
transferred to the Government. This activity provides for the 
payment of principal, interest, taxes, and other required 
obligations related to facilities acquired pursuant to the 
Public Buildings Amendments of 1972 (40 U.S.C. 602a).

                            RENTAL OF SPACE

Limitation on availability, 2002........................  $2,952,050,000
Limitation on availability, 2003........................   3,153,211,000
Committee recommendation................................   3,153,211,000

    The Committee recommends a limitation of $3,153,211,000 for 
rental of space. The Committee recommendation is equal to the 
budget estimate.
    GSA is responsible for leasing general purpose space and 
land incident thereto for Federal agencies, except cases where 
GSA has delegated its leasing authority (for example, the 
Department of Veterans Affairs, as well as the Departments of 
Agriculture, Commerce, and Defense). GSA's policy is to lease 
privately owned buildings and land only when: (1) Federal space 
needs cannot be otherwise accommodated satisfactorily in 
existing Government-owned or leased space; (2) leasing proves 
to be more efficient than the construction or alteration of a 
Federal building; (3) construction or alteration is not 
warranted because requirements in the community are 
insufficient or are indefinite in scope or duration; or (4) 
completion of a new Federal building within a reasonable time 
cannot be assured.

                          BUILDING OPERATIONS

Limitation on availability, 2002........................  $1,748,949,000
Limitation on availability, 2003........................   1,965,160,000
Committee recommendation................................   1,971,030,000

    The Committee recommends a limitation of $1,971,030,000 for 
building operations.
    This activity provides for the operation of all Government-
owned facilities under the jurisdiction of GSA and building 
services in GSA-leased space where the terms of the lease do 
not require the lessor to furnish such services. Services 
included in building operations are cleaning, protection, 
maintenance, payments for utilities and fuel, grounds 
maintenance, and elevator operations. Other related supporting 
services include various real property management and staff 
support activities such as space acquisition and assignment; 
the moving of Federal agencies as a result of space alterations 
in order to provide better space utilization in existing 
buildings; onsite inspection of building services and 
operations accomplished by private contractors; and various 
highly specialized contract administration support functions.
    The space, operations, and services referred to above are 
furnished by GSA to its tenant agencies in return for payment 
of rent. Due to considerations unique to their operation, GSA 
also provides varying levels of above-standard services in 
agency headquarter facilities, including those occupied by the 
Executive Office of the President, such as the east and west 
wings of the White House.

                      POLICY AND CITIZEN SERVICES

                         SALARIES AND EXPENSES

Appropriations, 2002....................................................
Budget estimate, 2003...................................     $65,995,000
Committee recommendation................................      75,304,000

    The Committee recommends an appropriation of $75,304,000 
for salaries and expenses for the policy and operations of the 
General Services Administration. This amount is $9,309,000 
above the President's request.
    Office of Governmentwide Policy provides for Government-
wide policy development, support, and evaluation functions 
associated with real and personal property, supplies, vehicles, 
aircraft, information technology, acquisition, transportation 
and travel management. This office also provides for the 
Federal Procurement Data Center, Workplace Initiatives, 
Regulatory Information Service Center, the Catalog of Federal 
Domestic Assistance, and the Committee Management Secretariat. 
The Office of Government-wide Policy, working cooperatively 
with other agencies, provides the leadership needed to develop 
and evaluate the implementation of policies designed to achieve 
the most cost-effective solutions for the delivery of 
administrative services and sound workplace practices, while 
reducing regulations and empowering employees.
    Office of Citizen Services provides leadership and support 
for electronic government initiatives and operates the official 
Federal portal through which citizens may access Federal 
information services electronically. The Federal Consumer 
Information Center is part of this office, though funded under 
a separate appropriation.

                           CHILD CARE CENTERS

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

                    VIRTUAL ARCHIVE STORAGE TERMINAL

    The Committee recognizes that in the interest of national 
security, it is imperative to enhance and expand the capability 
to capture and archive electronic data on a government-wide 
scale. As such, the Committee provided funds in fiscal year 
2002 to continue development of data mining tools to instantly 
extract and match data from multiple sources to resolve the 
critical security issues of today's environment. The Committee 
recognizes the important advancements of the Virtual Archive 
Storage Terminal (VAST) and the importance of adding the high 
performance computing capability of this data mining system and 
has included $2,500,000 to continue this research effort.

                      COMPUTERS TO SCHOOLS PROGRAM

    The Committee is aware that Indian tribal colleges and 
Alaska Native and Native Hawaiian serving institutions are 
being asked to undertake an increasing number of activities in 
Native communities related to education, employment and other 
training as part of the ongoing ``welfare to work'' transition 
mandated by the 1996 welfare reform law. To complement recent 
private sector donations of computers and related equipment to 
Indian tribes and Alaska Native and Native Hawaiian serving 
institutions, as part of its existing ``Computers to Schools'' 
program, the General Services Administration (GSA) is 
encouraged to work with the 31 Indian tribal colleges and 
Alaska Native and Native Hawaiian serving institutions to 
provide assistance to them in developing and upgrading the 
colleges' electronic capabilities. As part of this effort, GSA 
should utilize the 31 tribal colleges and Alaska Native and 
Native Hawaiian serving institutions as a discrete evaluation 
point as it works to meet these equipment needs. GSA's 
technical assistance will further enable the tribal colleges 
and Alaska Native and Native Hawaiian serving institutions to 
provide a higher quality of education to their students.

                     DIGITAL LEARNING TECHNOLOGIES

    The Committee has provided an additional $500,000 to 
continue the development, demonstration, and research of the 
digital medical education project in connection with the Upper 
Great Plains Native American Telehealth Program.

                         TELECOMMUTING CENTERS

    The Committee encourages GSA to continue to promote 
telecommuting centers within the Federal Government in the 
Washington DC metro area as an effective means to provide an 
alternative workplace.

              FEDERAL OFFICE BUILDING IN COLORADO SPRINGS

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

                  GOVERNMENT RURAL OUTREACH INITIATIVE

    The Committee is pleased with the work performed thus far 
on this rural areas outreach initiative. The Committee notes 
that the funds provided in fiscal year 2002 enabled the 
launching of the initiative to make electronic government 
services accessible to rural residents and to study and develop 
the technologies needed to ensure secure transactions of 
private information. The Committee has provided an additional 
$1,750,000 to continue this initiative.

                    UNITED STATES CONSENSUS COUNCIL

    The Committee is aware of a bipartisan effort to create a 
United States Consensus Council. The response by national 
leaders to the attacks of September 11, 2001 has demonstrated 
the benefits of working together across party and political 
lines to address the Nation's most urgent priorities. The 
Council would provide ongoing support to Congress by bringing 
conflicting stakeholders to the table to resolve a wide range 
of difficult national policy issues. The Committee has provided 
$1,000,000, subject to enactment of the authorizing 
legislation, to initiate this effort.

                         VETERANS' ORAL HISTORY

    The Committee strongly supports efforts of various 
organizations to make oral history recordings of the veterans 
of the Nation's foreign wars. The Committee has provided 
$250,000 for a grant to the North Dakota State Historical 
Society for costs associated with this effort in the State.

                        GSA FLEET VEHICLE STUDY

    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, if determined to be 
appropriate and economically feasible, incorporate them into 
GSA Fleet vehicles. The Committee directs GSA to report its 
findings to the Committee within 1 year.

                        FEDERAL BUILDING ACCESS

    The Committee has learned that not all Federal 
identification is acceptable for immediate access to all 
Federal facilities. Rather, the tenants of some Federal 
Buildings have decided that only identification for staff who 
actually work in the building would allow immediate access and 
all other Federal visitors must wait in line to sign in before 
being allowed to enter. While the Committee understands the 
necessity for strict security, this inconsistency has created 
problems in some areas. Therefore, the Committee requests that 
GSA review this situation and report back by March 14, 2003 on 
their recommendations for a resolution to this problem.

                     FINANCIAL TRANSACTION SOFTWARE

    The Committee acknowledges the growing homeland security 
requirement to provide enhanced security for financial 
transactions. The Committee is aware of the efforts of 
organizations, such as the New York Institute for Advanced 
Studies in Software and Information Technology, to research and 
develop software focused on securing these transactions and has 
included $1,500,000 to assist in this effort.

                       BATON ROUGE DOWNTOWN AREA

    The Committee is aware of the long history between the City 
of Baton Rouge, Louisiana and the GSA regarding the 
construction of the Russell B. Long Federal Building and United 
States Courthouse and the subsequent loss of the World War I-
era Victory Park. The Committee has provided an additional 
$1,500,000 for this account and directs GSA to work with the 
City on a suitable solution to this outstanding issue of 
concern.

                    ANGEL ISLAND IMMIGRATION STATION

    The Committee directs the GSA to submit a report to the 
Committee by January 1, 2003 on the status of the Angel Island 
Immigration Station which outlines the role of the GSA, the 
National Archives, the National Park Service, and any other 
relevant Federal agency in the effort to properly maintain, 
preserve and restore the Station as a national landmark.

                           Operating Expenses


                         SALARIES AND EXPENSES

Appropriations, 2002....................................................
Budget estimate, 2003...................................     $88,263,000
Committee recommendation................................      87,674,000

    The Committee recommends $87,674,000 for this account, 
which includes $534,000 for pay parity.
    Provides for the personal property utilization and donation 
activities of the Federal Supply Service and for the real 
property utilization and disposal activities of the Public 
Buildings Service, as well as agency-wide management and 
administration. These programs include utilization of real and 
personal property by Federal agencies and the transfer among 
agencies of excess real and personal property; disposal of 
surplus real property by sale, exchange, lease, permit, 
assignment, or transfer, as well as the protection and 
maintenance of excess and surplus real property pending its 
disposition; appraisal of excess and surplus property, 
necessary environmental and cultural analyses, reuse planning, 
and real property utilization surveys; Indian Trust Accounting, 
administrative support of Congressional District and Senate 
State offices, and Critical Infrastructure Protection 
initiatives in the Federal Technology Service including the 
Federal Computer Incident Response Capability, the focal point 
for detecting and responding to attacks on Federal civilian 
computer systems, and responsibilities for the Federal Public 
Key Infrastructure Steering Committee and its activities.

                      OFFICE OF INSPECTOR GENERAL

Appropriations, 2002....................................     $36,346,000
Budget estimate, 2003...................................      37,617,000
Committee recommendation................................      37,916,000

    The Committee recommends an appropriation of $37,916,000 
for the Office of Inspector General. The increase above the 
request is for pay parity.
    This appropriation provides agency-wide audit and 
investigative functions to identify and correct management and 
administrative deficiencies within the General Services 
Administration (GSA), which create conditions for existing or 
potential instances of fraud, waste and mismanagement. This 
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.

                   ELECTRONIC GOVERNMENT (E-GOV) FUND

Appropriations, 2002....................................      $5,000,000
Budget estimate, 2003...................................      45,000,000
Committee recommendation................................      45,000,000

    The Committee has agreed with the administration's request 
to create a new account to support interagency electronic 
government or ``e-gov'' initiatives, and has recommended an 
appropriation of $45,000,000, to remain available through 
fiscal year 2004. This will allow the administration to begin 
this effort to develop and implement innovative uses of the 
Internet and other electronic media to provide individuals, 
businesses, and other Government agencies with simpler and more 
timely access to Federal information, benefits, services, and 
business opportunities. It is hoped that the resulting 
initiative will allow agencies to provide the public with 
optional use and acceptance of electronic information, 
services, and signatures by October 2003 as required under the 
Government Paperwork Elimination Act.
    Proposals for funding must meet capital planning guidelines 
and include adequate documentation to demonstrate a sound 
business case, attention to security and privacy, and a way to 
measure performance against planned results. The Office of 
Management and Budget would control the allocation of the fund 
and direct its use for information systems projects and affect 
multiple agencies and offer the greatest improvements in access 
and service.

           ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS

Appropriations, 2002....................................      $3,196,000
Budget estimate, 2003...................................       3,339,000
Committee recommendation................................       3,344,000

    The Committee recommends $3,344,000 for allowances and 
office staff for former Presidents. The increase above the 
request is for pay parity.
    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 
William Jefferson Clinton, and for pension and postal franking 
privileges for the widow of former President Lyndon B. Johnson.
    Below is listed a detailed breakdown of the fiscal year 
2003 funding:

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

                         GSA GENERAL PROVISIONS

    The Committee has recommended the inclusion of the 
following general provisions:
    Section 401 continues a provision which authorizes GSA to 
credit accounts with certain funds received from Government 
corporations.
    Section 402 continues a provision which authorizes GSA to 
use funds for the hire of passenger motor vehicles.
    Section 403 continues a provision which authorizes GSA to 
transfer funds within the Federal buildings fund for meeting 
program requirements.
    Section 404 continues a provision which limits funding for 
courthouse construction which does not meet certain standards 
of a capital improvement plan.
    Section 405 continues a provision which provides that no 
funds may be used to increase the amount of occupiable square 
feet, provide cleaning services, security enhancements, or any 
other service usually provided, to any agency which does not 
pay the requested rate.
    Section 406 continues a provision which allows pilot 
information technology projects to be repaid from the 
information technology fund.
    Section 407 continues a provision which authorizes GSA to 
pay claims up to $2,000,000 from construction projects and 
acquisition of buildings.
    Section 408 is a new provision which requires approval from 
the Committees on Appropriations for space leased by GSA for 
longer than 10 years.
    Section 409 is a new provision to name the Judge Dan M. 
Russell, Jr. Federal Building and United States Courthouse in 
Gulfport, Mississippi.
    Section 410 is a new provision to name the Alfonse M. 
D'Amato United States Courthouse in Central Islip, New York.

                     Merit Systems Protection Board


                         SALARIES AND EXPENSES

Appropriations, 2002....................................     $30,555,000
Budget estimate, 2003...................................      31,790,000
Committee recommendation................................      32,027,000

    The Committee recommends an appropriation of $32,027,000 
for the Merit Systems Protection Board (MSPB). The increase 
above the President's request is for pay parity.
    MSPB assists Federal agencies in running a merit-based 
civil service system. This is accomplished on a case-by-case 
basis through hearing and deciding employee appeals, and on a 
systemic basis by reviewing significant actions and regulations 
of the Office of Personnel Management (OPM) and conducting 
studies of the civil service and other merit systems. These 
actions are designed to assure that personnel actions taken 
against employees are processed within the law, and that 
actions taken by OPM and other agencies support and enhance 
Federal merit principles.

                               LIMITATION

                       (TRANSFER OF TRUST FUNDS)

Appropriations, 2002....................................      $2,520,000
Budget estimate, 2003...................................       2,594,000
Committee recommendation................................       2,626,000

    The Committee has recommended a limitation of $2,626,000 on 
the amount to be transferred from the civil service retirement 
and disability fund to the Board to cover administrative 
expenses to adjudicate retirement appeals cases. The increase 
above the President's request is for pay parity.

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


   FEDERAL PAYMENT TO MORRIS K. UDALL SCHOLARSHIP AND EXCELLENCE IN 
                NATIONAL ENVIRONMENTAL POLICY FOUNDATION

Appropriations, 2002....................................      $1,996,000
Budget estimate, 2003...................................       1,996,000
Committee recommendation................................       1,996,000

     The Committee recommends an appropriation of $1,996,000 
for these activities of the Morris K. Udall Foundation. The 
Committee includes language to allow up to 60 percent of the 
appropriation to be used for the expenses of the Native Nations 
Institute. The Committee also includes language requiring the 
Foundation to report to the Committee on the amount of funding, 
if any, transferred from the Trust Fund for the Native Nations 
Institute, and directs that this report include an itemization 
of planned Native Nations Institute expenditures for fiscal 
year 2003. The Committee further directs the Foundation to 
describe as part of the report its justification for such a 
transfer. Future budget justifications submitted to Congress 
regarding this effort are to contain detailed information on 
the actual expenditures of past years as well as detailed 
information on planned expenditures for the current and budget 
years.
    The General Fund payment to the Morris K. Udall Fund is 
invested in Treasury securities with maturities suitable to the 
needs of the Fund. Interest earnings from the investments are 
used to carry out the activities of the Morris K. Udall 
Foundation. The Foundation awards scholarships, fellowships and 
grants, and funds activities of the Udall Center.
    Public Law 106-568 authorized the Morris K. Udall 
Foundation to establish training programs for professionals in 
health care policy and public policy, such as the Native 
Nations Institute (NNI). NNI, based at the University of 
Arizona, will provide Native Americans with leadership and 
management training and analyze policies relevant to tribes.

         MORRIS K. UDALL ENVIRONMENTAL DISPUTE RESOLUTION FUND

Appropriations, 2002....................................      $1,309,000
Budget estimate, 2003...................................       1,309,000
Committee recommendation................................       1,309,000

    The U.S. Institute for Environmental Conflict Resolution is 
a Federal program established by Public Law 105-156 to assist 
parties in resolving environmental, natural resource, and 
public lands conflicts. The Institute is part of the Morris K. 
Udall Foundation, and serves as an impartial, non-partisan 
institution providing professional expertise, services, and 
resources to all parties involved in such disputes. The 
Institute helps parties determine whether collaborative problem 
solving is appropriate for specific environmental conflicts, 
how and when to bring all the parties to the table, and whether 
a third-party facilitator or mediator might be helpful in 
assisting the parties in their efforts to each consensus or to 
resolve the conflict. In addition, the Institute maintains a 
roster of qualified facilitators and mediators with substantial 
experience in environmental conflict resolution, and can help 
parties in selecting an appropriate neutral.

              National Archives and Records Administration


                           OPERATING EXPENSES

Appropriations, 2002....................................    $245,847,000
Budget estimate, 2003...................................     256,731,000
Committee recommendation................................     249,875,000

    The Committee recommends an appropriation of $249,875,000 
for Operating Expenses of the National Archives and Records 
Administration (NARA). The Committee has not included funding 
for Homeland Security records activities because the funds 
cannot be obligated during fiscal year 2003. The Committee has 
included $144,000 for pay parity.
    NARA 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.
    Records services.--This activity provides for selecting, 
preserving, describing, and making available to the general 
public, scholars, and Federal agencies the permanently valuable 
historical records of the Federal Government; the historical 
materials and Presidential records in Presidential Libraries; 
for preparing related publications and exhibit programs; and 
for conducting the appraisal of all Federal records.
    Through the records declassification program, historically 
valuable information in the records of the Federal Government 
and in donated historical materials are made available to the 
public by declassifying as much information as possible without 
endangering the national security.
    This activity also provides oversight for the information 
security program established by Executive Order 12958 as 
amended by Executive Order 13142 and reports annually to the 
President on the status of that program. It is also responsible 
for policy oversight for the National Industrial Security 
Program established under Executive Order 12829.
    NARA, in research and development collaboration with 
national and international partners, is building an Electronic 
Records Archives (ERA) that will ensure the preservation of, 
and access to, Government electronic records. The pace of 
technological progress makes formats in which the records are 
stored obsolete within a few years, threatening to make them 
inaccessible even if they are preserved intact. ERA will 
preserve electronic records, regardless of the original format, 
retain them indefinitely, and enable requesters to access them 
on computer systems now and in the future.
    Archives related services.--This activity provides for the 
publication of the Federal Register, the Code of Federal 
Regulations, the U.S. Statutes-at-Large, and Presidential 
documents, and for a program to improve the quality of 
regulations and the public's access to them. It also includes 
the administration and reference services portion for the 
National Historical Publications and Records Commission. This 
Commission makes grants nationwide to preserve and publish 
records that document American history.
    Archives II Facility.--Provides for construction and 
related services of the new archival facility which was opened 
to the public in 1993. Costs of construction are financed by 
$302 million of federally guaranteed debt issued in 1989. Since 
1994 and continuing in 2003, the Archives seeks appropriations 
for the annual payments for interest and redemption of debt to 
be made under the contract for construction and related 
services.
    Homeland security information sharing.--Provides for 
training personnel at the State and local level in the proper 
use and handling of classified and sensitive but unclassified 
homeland security information. Funding will also be used to 
facilitate security clearances for appropriate individuals at 
the State and local level, and to ensure that Federal agencies 
have the necessary classification authority for homeland 
security information.

                      VETERAN'S RECORDS PROCESSING

    The Committee is pleased to note the exceptional progress 
being made by the National Military Personnel Records Center, 
St. Louis, MO in responding to requests for military service 
records. The Center is ahead of the goals presented to the 
Committee at the beginning of the year with over 33 percent of 
requests being fully answered within 10 days and almost half of 
all requests being filled within 15 days of receipt. The 
Committee applauds the work of the staff of the Center and 
requests a report update with the submission of next year's 
budget.

              ARCHIVES FACILITIES REPAIRS AND RESTORATION

Appropriations, 2002....................................     $40,143,000
Budget estimate, 2003...................................      10,458,000
Committee recommendation................................      14,208,000

    The Committee recommends an appropriation of $14,208,000. 
The Committee has included $3,750,000 to acquire land in 
Anchorage, Alaska to build a new regional archives and records 
facility. The funds will be used to reimburse the General 
Service Administration for land acquisition services and for 
the purchase of approximately 10 acres of land.
    This account provides for the repair, alteration, and 
improvement of Archives facilities and Presidential Libraries 
nationwide, and provides adequate storage for holdings. It will 
better enable the National Archives to maintain its facilities 
in proper condition for public visitors, researchers, and 
employees in NARA facilities, and also maintain the structural 
integrity of the buildings. These funds will determine 
appropriate options for preserving and providing access to 20th 
century military service records. These funds will allow NARA 
to complete preliminary design studies and analysis, including 
workflow and cost estimates, for housing and access options for 
these massive and valuable records. Technology and facility 
approaches will be examined.

        National Historical Publications and Records Commission


                             GRANTS PROGRAM

Appropriations, 2002....................................      $6,436,000
Budget estimate, 2003...................................       5,000,000
Committee recommendation................................       8,000,000

    The Committee recommends an appropriation of $8,000,000. 
This amount is $3,000,000 above the budget request.
    The National Historical Publications and Records Commission 
(NHPRC) provides grants nationwide to preserve and publish 
records that document American history. Administered within the 
National Archives, which preserves Federal records, 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.
    Records Center Revolving Fund.--The NARA Records Center 
Revolving Fund provides low cost services, on a standard price 
basis, to Federal agency customers for quality storage and 
accession, reference, refile, and disposal services for records 
stored in service centers.
    National Archives Gift Fund.--The National Archives Trust 
Fund Board may solicit and accept gifts or bequests of money, 
securities, or other personal property, for the benefit of or 
in connection with the national archival and records activities 
administered by the National Archives and Records 
Administration (44 U.S.C. 2305).
    In accordance with 44 U.S.C. 2112, the Bush Presidential 
Library received a $4 million endowment from the Bush Library 
Foundation. The money was deposited in the gift fund and 
invested in accordance with established National Archives Trust 
and Gift Fund procedures. Income earned on the investment will 
be used to offset a portion of the Library's operation and 
maintenance costs.
    National Archives Trust Fund.--The Archivist of the United 
States furnishes, for a fee, copies of unrestricted records in 
the custody of the National Archives (44 U.S.C. 2116). Proceeds 
from the sale of copies of microfilm publications, 
reproductions, special works, and other publications, as well 
as admission fees to Presidential Library museum rooms, are 
deposited in this fund (44 U.S.C. 2112, 2307).

                          STATEHOOD INITIATIVE

    Communities in Hawaii and Alaska are preparing to celebrate 
the 50th anniversary of Alaska and Hawaii Statehood. The 
Committee provides $500,000, to be split evenly between the 
University of Hawaii and the University of Alaska, to catalog 
the historic records and artifacts relating to Statehood, and 
to improve the exhibit presentation in preparation for the 
Statehood celebrations.

                         JOHN ADAMS COLLECTION

    The Committee is aware of the interest of the Boston Public 
Library in preserving and making accessible to scholars, 
researchers, and the general public its holdings of the John 
Adams collection. The Committee has provided an additional 
$500,000 to this account to assist in this effort in accordance 
with NHPRC guidelines.

                      Office of Government Ethics


                         SALARIES AND EXPENSES

Appropriations, 2002....................................     $10,117,000
Budget estimate, 2003...................................      10,488,000
Committee recommendation................................      10,557,000

    The Committee recommends an appropriation of $10,557,000 
for salaries and expenses of the Office of Government Ethics 
(OGE) in fiscal year 2003. The increase above the President's 
request is for pay parity.
    OGE is charged by law to provide overall direction of 
Executive Branch policies designed to prevent conflicts of 
interest and insure high ethical standards. OGE carries out 
these responsibilities by developing rules and regulations 
pertaining to conflicts of interest, post employment 
restrictions, standards of conduct, and public and confidential 
financial disclosure in the Executive Branch; by monitoring 
compliance with the public and confidential disclosure 
requirements of the Ethics Reform Act of 1978 and the Ethics 
Reform Act of 1989 to determine possible violations of 
applicable laws or regulations and recommending appropriate 
corrective action; by consulting with and assisting various 
officials in evaluating the effectiveness of applicable laws 
and the resolution of individual problems; and by preparing 
formal advisory opinions, informal letter opinions, policy 
memoranda, and Federal Register entries on how to interpret and 
comply with the requirements on conflicts of interest, post 
employment, standards of conduct, and financial disclosure.

                     Office of Personnel Management


                         SALARIES AND EXPENSES

Appropriations, 2002....................................     $99,636,000
Budget estimate, 2003...................................     128,804,000
Committee recommendation................................     129,686,000

    The Committee recommends an appropriation of $129,686,000 
for the salaries and expenses of the Office of Personnel 
Management (OPM). The increase above the President's request is 
for pay parity.
    OPM is responsible for personnel management functions which 
include the following activities:
    Merit systems oversight and effectiveness.--Includes 
evaluating human resources management in Federal agencies 
through various methods including on-site reviews land special 
studies; administering classification appeals, Fair Labor 
Standards Act, and Intergovernmental Personnel programs to 
ensure that agencies adhere to the statutory requirements; 
helping agencies develop merit-based human resources management 
accountability; assessing the effectiveness of Government-wide 
human resources management policies and programs, and serving 
as a clearinghouse for best practices; testing and evaluating 
innovative human resources management practices and systems, 
including demonstration projects; providing readily accessible 
statistics on the Federal workforce; and administering parts of 
the Voting Rights Act of 1965.
    Employment service.--Provides leadership and manages the 
merit-based employment system for the Federal Government. In 
partnership with agencies, the Service provides a high-quality, 
diverse workforce through a mix of policy direction, technical 
assistance, and reimbursable services. These operations are 
carried out through a network of Service Centers throughout the 
country.
    Retirement and Insurance.--This activity encompasses 
administration of earned employee benefits for Federal 
employees, retired Federal employees, and their families. These 
programs include the Civil Service Retirement System, the 
Federal Employees' Retirement System, the Federal Employees 
Group Life Insurance Program, and the Federal Employees and 
Retired Employees Health Benefits Programs. In addition, this 
activity includes OPM's efforts to stay abreast of, and respond 
to, developments in non-Federal fringe benefits practices.
    Workforce compensation and performance.--This activity 
includes developing and implementing pay and leave 
administration policy and evaluating the effectiveness of 
alternative compensation systems; developing classification 
policies and systems, and designing flexible alternatives to 
current systems; and developing Government-wide policy 
concerning employee performance management.
    Investigations.--Focuses on assuring applicant and 
appointee fitness and suitability, and oversight of the 
investigative contract company.
    Workforce relations.--This activity includes developing and 
administering policies, regulations and guidelines on employee 
relations, including adverse and performance-based actions and 
violence in the workplace; facilitating and supporting Federal 
work and family programs; providing leadership and policy 
guidance in support of agency human resources development 
programs and training technology initiatives; and providing 
guidance and assistance to Federal agencies in labor-management 
relations and partnerships.
    Executive resources.--Provides Government-wide program 
leadership, policy direction, and technical assistance on all 
aspects of the Senior Executive Service personnel system and 
comparable executive systems.
    Executive and other services.--Includes executive 
direction, policy development, legal advise and representation, 
public affairs, legislative activities, financial management, 
and the operating expenses of the President's Commission on 
White House Fellows.
    Reimbursable programs.--OPM performs reimbursable work at 
the request of other agencies. OPM also provides 
administrative, information resources management, and executive 
service to other OPM accounts on a reimbursable basis.

                           VOTING RIGHTS ACT

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

                         CHILD CARE ASSISTANCE

    The Committee remains concerned that child care expenses 
are often the second or third largest monthly expense Federal 
employees face. Additionally, many lower paid Federal workers 
are unable to afford quality child care. As private industry 
has increasingly used subsidized child care for its employees 
as an effective productivity enhancement, retention and 
recruiting tool, the Committee believes the Federal Government 
must continue its commitment to do the same.
    The Committee is concerned about the limited number of 
infant spots in Federal child care facilities and the resulting 
impact on working parents. Therefore, the Committee directs the 
Office of Personnel Management, working in consultation with 
the General Services Administration, to assess the past, 
current, and future needs of child care centers, including both 
infant and non-infant needs, in the Federal Government and 
provide a report to the Committee within 9 months after 
enactment of this Act on a plan to address these needs and the 
resources required to do so. The Committee expects OPM to 
coordinate with all Federal agencies in this effort.

                               limitation


                       (TRANSFER OF TRUST FUNDS)

Limitation, 2002........................................    $115,928,000
Budget estimate, 2003...................................     120,791,000
Committee recommendation................................     121,765,000

    The Committee recommends a limitation of $121,765,000. The 
increase above the President's request is for pay parity.
    These funds will be transferred from the appropriate trust 
funds of the Office of Personnel Management to cover 
administrative expenses for the retirement and insurance 
programs.

                    RETIREMENT SYSTEMS MODERNIZATION

    Over the past several years, the Federal Government has 
expended hundreds of millions of dollars on automation hardware 
and software without significant planning and architectural 
design. The General Accounting Office (GAO) has documented 
problems with design and systems procurement on countless 
occasions. The Committee is supportive of providing the 
technology necessary to modernize the Federal employee 
retirement system technology, but is concerned given past 
history with other Federal agencies. In fiscal year 2002, the 
Committee recommended that OPM reach out to GAO for guidance 
and support on this initiative and encouraged the establishment 
of a relationship for the duration of this project. The 
Committee is disappointed that OPM did not act upon that 
suggestion. Therefore, the Committee directs OPM to conduct 
quarterly meetings with GAO and inform the Committee on the 
progress of this IT modernization project.

                      OFFICE OF INSPECTOR GENERAL

                         SALARIES AND EXPENSES

Appropriations, 2002....................................      $1,498,000
Budget estimate, 2003...................................       1,498,000
Committee recommendation................................       1,519,000

    The Committee recommends an appropriation of $1,519,000 for 
salaries and expenses of the Office of Inspector General in 
fiscal year 2003. The increase above the President's request is 
for pay parity.
    The Office of Inspector General is charged with 
establishing policies for conducting and coordinating efforts 
which promote economy, efficiency, and integrity in the Office 
of Personnel Management's activities which prevent and detect 
fraud, waste, and mismanagement in the agency's programs. 
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 agency 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. Administrative sanctions 
debar from participation in the health insurance program those 
health care providers whose conduct may pose a threat to the 
financial integrity of the program itself or to the well-being 
of insurance program enrollees.

               (LIMITATION ON TRANSFER FROM TRUST FUNDS)

Limitation, 2002........................................     $10,016,000
Budget estimate, 2003...................................      10,766,000
Committee recommendation................................      10,886,000

    The Committee recommends a limitation on transfers from the 
trust funds in support of the Office of Inspector General 
activities totaling $10,886,000 for fiscal year 2003. The 
increase above the President's request is for pay parity.

      GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEES HEALTH BENEFITS

Appropriations, 2002....................................  $6,129,000,000
Budget estimate, 2003...................................   6,853,000,000
Committee recommendation................................   6,853,000,000

    The Committee recommends an appropriation of $6,853,000,000 
for Government payments for annuitants, employees health 
benefits. The Committee recommendation equals the budget 
estimate.
    This appropriation covers the Government's share of the 
cost of health insurance for annuitants covered by the Federal 
Employees Health Benefits Program and the Retired Federal 
Employees Health Benefits Act of 1960, as well as 
administrative expenses incurred by OPM for these programs.

       GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEE LIFE INSURANCE

Appropriations, 2002....................................     $34,000,000
Budget estimate, 2003...................................      34,000,000
Committee recommendation................................      34,000,000

    The Committee recommends an appropriation of $34,000,000 
for the Government payment for annuitants, employee life 
insurance. This amount equals the budget request.
    Public Law 96-427, the Federal Employees' Group Life 
Insurance Act of 1980 requires that all employees under the age 
of 65 who separate from the Federal Government for purposes of 
retirement on or after January 1, 1990, continue to make 
contributions toward their basic life insurance coverage after 
retirement until they reach the age of 65. These retirees will 
contribute two-thirds of the cost of the basic life insurance 
premium, identical to the amount contributed by active Federal 
employees for basic life insurance coverage. As with the active 
Federal employees, the Government is required to contribute 
one-third of the cost of the premium for basic coverage. OPM, 
acting as the payroll office on behalf of Federal retirees, has 
requested, and the Committee has provided, the funding 
necessary to make the required Government contribution 
associated with annuitants' postretirement life insurance 
coverage.

        PAYMENT TO CIVIL SERVICE RETIREMENT AND DISABILITY FUND

Appropriations, 2002....................................  $9,229,000,000
Budget estimate, 2003...................................   9,410,000,000
Committee recommendation................................   9,410,000,000

    The Committee recommends an appropriation of $9,410,000,000 
for payment to the civil service retirement and disability 
fund. The Committee recommendation equals the budget estimate.
    The civil service retirement and disability fund was 
established in 1920 to administer the financing and payment of 
annuities to retired Federal employees and their survivors. The 
fund covers the operation of the Civil Service Retirement 
System and the Federal Employees' Retirement System.
    This appropriation provides for the Government's share of 
retirement costs, transfers of interest on the unfunded 
liability and annuity disbursements attributable to military 
service, and survivor annuities to eligible former spouses of 
some annuitants who did not elect survivor coverage.

                       Office of Special Counsel


                         SALARIES AND EXPENSES

Appropriations, 2002....................................     $11,891,000
Budget estimate, 2003...................................      12,434,000
Committee recommendation................................      12,449,000

    The Committee recommends an appropriation of $12,449,000 
for the Office of Special Counsel (OSC). The increase above the 
President's request is for pay parity.
    OSC investigates Federal employee allegations of prohibited 
personnel practices and, when appropriate, prosecutes cases 
before the Merit Systems Protection Board and enforces the 
Hatch Act. OSC also provides a channel for whistleblowing by 
Federal employees, and may transmit whistleblowing allegations 
to the agency head concerned and require an agency 
investigation and a report to Congress and the President when 
appropriate.

                             U.S. Tax Court


                         SALARIES AND EXPENSES

Appropriations, 2002....................................     $37,305,000
Budget estimate, 2003...................................      37,305,000
Committee recommendation................................      37,611,000

    The Committee recommends an appropriation of $37,611,000 
for the U.S. Tax Court. The increase above the President's 
request is for pay parity.
    The U.S. Tax Court is an independent judicial body in the 
legislative branch under article I of the Constitution of the 
United States. The court is composed of a chief judge and 18 
judges. Decisions by the court are reviewable by the U.S. 
Courts of Appeals and, if certiorari is granted, by the Supreme 
Court.
    In their judicial duties the judges are assisted by senior 
judges, who participate in the adjudication of regular cases, 
and by special trial judges, who hear small tax cases and 
certain regular cases assigned to them by the chief judge.
    The court conducts trial sessions throughout the United 
States, including Hawaii and Alaska. The matters over which the 
Court has jurisdiction are set forth in various sections of 
title 26 of the United States Code.
    Tax Court Independent Counsel Fund.--This fund is 
established pursuant to 26 U.S.C. 7475. The fund is used by the 
Tax Court to employ independent counsel to pursue disciplinary 
matters involving practitioners admitted to practice before the 
Court.
    Tax Court Judges Survivors Annuity Fund.--This fund 
established pursuant to 26 U.S.C. 7448, is used to pay 
survivorship benefits to eligible surviving spouses and 
dependent children of deceased judges of the U.S. Tax Court. 
Participating judges pay 3.5 percent of their salaries or 
retired pay into the fund to cover creditable service for which 
payment is required. Additional funds, as are needed, are 
provided through the annual appropriation to the U.S. Tax 
Court.

      White House Commission on the National Moment of Remembrance

Appropriations, 2002....................................        $500,000
Budget estimate, 2003...................................         250,000
Committee recommendation................................         250,000

    The Committee recommends an appropriation of $250,000 for 
the White House Commission on the National Moment of 
Remembrance. This is the same as the President's request. The 
Commission was established and authorized by Public Law 106-
579. The Commission will also accept gifts and generate product 
royalty revenue in order to revitalize the national 
understanding and commemoration of Memorial Day. The Defense 
Emergency Response Fund included $500,000 for the Commission in 
fiscal year 2002.

                STATEMENT CONCERNING GENERAL PROVISIONS

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

                      TITLE V--GENERAL PROVISIONS

                                This Act

    Section 501 continues a provision which limits the use of 
appropriated funds to the current fiscal year.
    Section 502 continues a provision regarding consultant 
services.
    Section 503 continues a provision which prohibits the use 
of funds to engage in activities which would prohibit in the 
enforcement of section 307 of the 1930 Tariff Act.
    Section 504 continues a provision which prohibits the 
transfer of control over the Federal Law Enforcement Training 
Center.
    Section 505 continues the provision concerning the 
employment rights of Federal employees who return to their 
civilian jobs after assignment with the Armed Forces.
    Section 506 continues a provision which requires compliance 
with the Buy American Act.
    Section 507 continues a provision which states the sense of 
Congress regarding notice and purchase of American-made 
products.
    Section 508 continues a provision which prohibits an 
individual from eligibility for Government contracts if a court 
determines that individual has intentionally fraudulently 
affixed a ``Made in America'' label to any product non-American 
made.
    Section 509 continues a provision which provides up to 50 
percent of unobligated balances may remain available for 
authorized purposes in compliance with reprogramming 
guidelines.
    Section 510 continues a provision which prohibits the 
Executive Office of the President from using appropriated funds 
to request FBI background investigation reports.
    Section 511 continues a provision that cost accounting 
standards under the Federal Procurement Policy Act shall not 
apply to the Federal Employees Health Benefits program.
    Section 512 continues a provision permitting OPM to utilize 
certain funds to resolve litigation and implement settlement 
agreements regarding the non-foreign area cost-of-living 
allowance program.
    Section 513 continues a provision prohibiting the use of 
funds to any person or entity convicted of violating the Buy 
American Act.
    Section 514 is a new provision concerning procurement of 
goods made with forced or indentured child labor.
    Section 515 is a new provision increasing the size of the 
endowment for future Presidential libraries.
    Section 516 is a new provision limiting the ban on travel 
to Cuba.
    Section 517 is a new provision prohibiting the use of funds 
for any activity or operation of the Federal Accounting 
Standards Advisory Board unless the Congressional Budget Office 
is a signatory to the Memorandum of Understanding establishing 
and governing the operations of the Board.

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

    The Committee has recommended the inclusion of the 
following general provisions:
    Section 601 continues a provision authorizing agencies to 
pay travel costs of the families of Federal employees on 
foreign duty to return to the United States in the event of 
death or a life threatening illness of an employee.
    Section 602 continues a provision requiring agencies to 
administer a policy designed to ensure that all of its 
workplaces are free from the illegal use of controlled 
substances.
    Section 603 continues a provision regarding price 
limitations on vehicles to be purchased by the Federal 
Government.
    Section 604 continues a provision allowing funds made 
available to agencies for travel to also be used for quarters 
allowances and cost-of-living allowances.
    Section 605 continues a provision prohibiting the 
Government, with certain specified exceptions, from employing 
non-U.S. citizens whose posts of duty would be in the 
continental United States.
    Section 606 continues a provision ensuring that agencies 
will have authority to pay the General Services Administration 
bills for space renovation and other services.
    Section 607 continues a provision allowing agencies to 
finance the costs of recycling and waste prevention programs 
with proceeds from the sale of materials recovered through such 
programs.
    Section 608 continues a provision providing that funds may 
be used to pay rent and other service costs in the District of 
Columbia.
    Section 609 continues a provision prohibiting the use of 
appropriated funds to pay the salary of any nominee after the 
Senate voted not to approve the nomination.
    Section 610 continues a provision precluding interagency 
financing of groups absent prior statutory approval.
    Section 611 continues a provision authorizing the Postal 
Service to employ guards.
    Section 612 continues a provision prohibiting the use of 
appropriated funds for enforcing regulations disapproved in 
accordance with the applicable law of the United States.
    Section 613 continues a provision limiting the pay 
increases of certain prevailing rate employees.
    Section 614 continues a provision limiting the amount that 
can be used for redecoration of offices under certain 
circumstances.
    Section 615 continues provision prohibiting the expenditure 
of appropriated funds for the acquisition of additional law 
enforcement training facilities without the advance approval of 
the Committees on Appropriations and allowing the Federal Law 
Enforcement Training Center to obtain temporary use of 
additional facilities for training which cannot be accommodated 
in existing Center facilities.
    Section 616 continues a provision permitting interagency 
funding of national security and emergency preparedness 
telecommunications initiatives, which benefit multiple Federal 
departments, agencies, and entities.
    Section 617 continues a provision requiring agencies to 
certify that a schedule C appointment was not created solely or 
primarily to detail the employee to the White House.
    Section 618 continues a provision requiring agencies to 
administer a policy designed to ensure that all of its 
workplaces are free from discrimination and sexual harassment.
    Section 619 continues a provision which prohibits the U.S. 
Customs Service from allowing the importation of products 
produced by forced or indentured child labor.
    Section 620 continues a provision which prohibits the use 
of funds to prevent Federal employees from communicating with 
Congress or to take disciplinary or personnel actions against 
employees for such communication.
    Section 621 continues a provision which prohibits training 
not directly related to the performance of official duties.
    Section 622 continues a provision prohibiting the 
expenditure of funds for the implementation of agreements in 
certain nondisclosure policies unless certain provisions are 
included in the policies.
    Section 623 continues a provision which prohibits use of 
appropriated funds for publicity or propaganda designed to 
support or defeat legislation pending before Congress.
    Section 624 continues a provision which prohibits use of 
appropriated funds by an agency to provide Federal employees 
home address to labor organizations.
    Section 625 continues a provision which prohibits the use 
of appropriated funds to provide nonpublic information such as 
mailing or telephone lists to any person or organization 
outside of the Government.
    Section 626 continues a provision which prohibits the use 
of appropriated funds for publicity or propaganda purposes 
within the United States not authorized by Congress.
    Section 627 continues a provision directing agencies 
employees to use official time in an honest effort to perform 
official duties.
    Section 628 continues a provision authorizing the use of 
current fiscal year funds to finance an appropriate share of 
the Joint Financial Management Improvement Program.
    Section 629 continues a provision authorizing agencies to 
transfer funds to the Policy and Operations account of GSA to 
finance an appropriate share of the Joint Financial Management 
Improvement Program.
    Section 630 continues a provision authorizing breastfeeding 
at any location in a Federal building or on Federal property.
    Section 631 continues a provision which permits interagency 
funding of the National Science and Technology Council.
    Section 632 continues a provision requiring identification 
of the Federal agencies providing Federal funds and the amount 
provided for all proposals, solicitations, grant applications, 
forms, notifications, press releases, or other publications 
related to the distribution of funding to a State.
    Section 633 modifies and continues a provision which 
extends the authorization for franchise fund pilots for 1 year.
    Section 634 continues a provision prohibiting the use of 
funds to monitor personal information relating to the use of 
Federal internet sites; the conferees apply this provision 
government-wide.
    Section 635 continues a provision regarding contraceptive 
coverage under the Federal Employees Health Benefits Plan.
    Section 636 continues a provision which clarifies that the 
United States Anti-Doping Agency is the official anti-doping 
agency for Olympic, Pan American, and Paralympic sport in the 
United States.
    Section 637 is a new provision regarding Federal employee 
pay adjustments.
    Section 638 continues a provision directing departments and 
agencies to comply with the Rural Development Act of 1972.
    Section 639 is a new provision extending the expiration 
date of certain government information security requirements.
    Section 640 is a new provision regarding numerical quotas 
for contracting out.

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

    Paragraph 7 of rule XVI requires that Committee reports on 
general appropriations bills identify each Committee amendment 
to the House bill ``which proposes an item of appropriation 
which is not made to carry out the provisions of an existing 
law, a treaty stipulation, or an act or resolution previously 
passed by the Senate during that session.''
    The Committee recommends the following appropriations which 
lack authorization:
    Department of the Treasury:
      Departmental Offices:
                  Salaries and expenses, $195,100,000
                  Department-wide Systems and Capital 
                Investments Program, $70,828,000
                  Air Transportation Stabilization Program, 
                $6,041,000
                  Treasury Building and annex, repair and 
                restoration, $32,732,000
      Financial Crimes Enforcement Network, salaries and 
        expenses, $50,825,000
      Federal Law Enforcement Training Center:
                  Salaries and expenses, $126,441,000
                  Acquisition, construction, improvements, and 
                related expenses, $40,009,000
      Financial Management Service, salaries and expenses, 
        $222,078,000
      Bureau of Alcohol, Tobacco and Firearms:
                  Salaries and expenses, $899,753,000
      U.S. Customs Service:
                  Salaries and expenses, $2,525,453,000
                  Operation and maintenance, air and marine 
                interdiction programs, $177,829,000
                  Automation modernization, $435,332,000
      Internal Revenue Service:
                  Processing, assistance, and management, 
                $3,985,151,000
                  Tax law enforcement, $3,774,121,000
                  Earned Income Tax Credit, $147,223,000
                  Information systems, $1,638,716,000
      Executive Office of the President:
                  The White House Office, salaries and 
                expenses, $60,212,000
                  Office of Homeland Security, $25,301,000
                  Executive Residence at the White House, 
                operating expenses, $12,339,000
                  Special Assistance to the President, salaries 
                and expenses, $4,093,000
                  Council of Economic Advisers, salaries and 
                expenses, $4,444,000
                  National Security Council, salaries and 
                expenses, $9,600,000
                  Office of Administration, salaries and 
                expenses, $70,338,000
                  Office of Management and Budget, salaries and 
                expenses, $71,370,000
      Office of National Drug Control Policy, salaries and 
        expenses, $26,605,000
      Counterdrug Technology Assessment Center, salaries and 
        expenses, $40,000,000
      High-intensity drug trafficking areas, $226,350,000
      Federal Election Commission, salaries and expenses, 
        $45,668,000
      Federal Labor Relations Authority, salaries and expenses, 
        $28,950,000
      General Services Administration, Federal buildings fund, 
        limitations on availability of revenue: Construction 
        and Acquisition of Facilities, $651,663,000
      National Historical Publications and Records Commission, 
        $8,000,000
      Office of Government Ethics, salaries and expenses, 
        $10,557,000
      U.S. Tax Court, salaries and expenses, $37,611,000

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

    Pursuant to paragraph 7(c) of rule XXVI, on July 16, 2002, 
the Committee ordered reported S. 2740, an original Treasury 
and General Government Appropriations bill, 2003, subject to 
amendment and subject to the budget allocations, by a recorded 
vote of 29-0, a quorum being present. The vote was as follows:
        Yeas                          Nays
Chairman Byrd
Mr. Inouye
Mr. Hollings
Mr. Leahy
Mr. Harkin
Ms. Mikulski
Mr. Reid
Mr. Kohl
Mrs. Murray
Mr. Dorgan
Mrs. Feinstein
Mr. Durbin
Mr. Johnson
Mrs. Landrieu
Mr. Reed
Mr. Stevens
Mr. Cochran
Mr. Specter
Mr. Domenici
Mr. Bond
Mr. McConnell
Mr. Burns
Mr. Shelby
Mr. Gregg
Mr. Bennett
Mr. Campbell
Mr. Craig
Mrs. Hutchison
Mr. DeWine

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

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

                                            BUDGETARY IMPACT OF BILL
  PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS
                                                     AMENDED
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                              Budget authority                 Outlays
                                                       ---------------------------------------------------------
                                                           Committee     Amount of      Committee     Amount of
                                                        allocation \1\      bill     allocation \1\      bill
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee
 allocations to its subcommittees, fiscal year 2003:
 Subcommittee on Treasury and General Government:
    Discretionary.....................................         18,501        18,501         18,237    \2\ 17,953
    Mandatory.........................................             NA        16,586             NA        16,583
Projection of outlays associated with the
 recommendation:
    2003..............................................  ..............  ...........  ..............   \2\ 29,889
    2004..............................................  ..............  ...........  ..............        3,013
    2005..............................................  ..............  ...........  ..............          979
    2006..............................................  ..............  ...........  ..............          369
    2007 and future year..............................  ..............  ...........  ..............          270
Financial assistance to State and local governments                NA           226             NA            57
 for  2003............................................
----------------------------------------------------------------------------------------------------------------
\1\ Levels approved by the Committee on June 27, 2002.
\2\ Includes outlays from prior-year budget authority.
\3\ Excludes outlays from prior-year budget authority.

NA: Not applicable.


  COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2002 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL
                                                                        YEAR 2003
                                                                [In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        Senate Committee recommendation
                                                                                                                            compared with (+ or -)
                             Item                                     2002         Budget estimate      Committee    -----------------------------------
                                                                  appropriation                      recommendation         2002
                                                                                                                        appropriation    Budget estimate
--------------------------------------------------------------------------------------------------------------------------------------------------------
              TITLE I--DEPARTMENT OF THE TREASURY

Departmental Offices..........................................          177,142           191,914           195,100           +17,958            +3,186
Department-wide systems and capital investments programs......           68,828            68,828            68,828   ................  ................
Office of Inspector General...................................           35,424            35,428            35,736              +312              +308
Treasury Inspector General for Tax Administration.............          123,746           123,962           125,011            +1,265            +1,049
    9/11 Supplemental (Public Law 107-117)....................            2,032   ................  ................           -2,032   ................
                                                               -----------------------------------------------------------------------------------------
      Subtotal................................................          125,778           123,962           125,011              -767            +1,049

Air Transportation Stabilization Program Account..............  ................            6,041             6,041            +6,041   ................
Treasury Building and Annex Repair and Restoration............           28,932            32,932            32,932            +4,000   ................
Expanded Access to Financial Services.........................            2,000             2,000             2,000   ................  ................

Financial Crimes Enforcement Network..........................           45,837            50,517            50,825            +4,988              +308
    9/11 Supplemental (Public Law 107-117)....................            1,700   ................  ................           -1,700   ................
                                                               -----------------------------------------------------------------------------------------
      Subtotal................................................           47,537            50,517            50,825            +3,288              +308

Treasury franchise fund.......................................  ................  ................  ................  ................  ................
Counterterrorism Fund.........................................           40,000            40,000            40,000   ................  ................

Federal Law Enforcement Training Center:
    Salaries and Expenses.....................................          105,680           122,393           126,441           +20,761            +4,048
        9/11 Supplemental (Public Law 107-117)................           23,000   ................  ................          -23,000   ................
                                                               -----------------------------------------------------------------------------------------
          Subtotal............................................          128,680           122,393           126,441            -2,239            +4,048
    Acquisition, Construction, Improvements, & Related                   33,434            23,329            40,009            +6,575           +16,680
     Expenses.................................................
        9/11 Supplemental (Public Law 107-117)................            8,500   ................  ................           -8,500   ................
                                                               -----------------------------------------------------------------------------------------
          Subtotal............................................           41,934            23,329            40,009            -1,925           +16,680
                                                               =========================================================================================
          Total...............................................          170,614           145,722           166,450            -4,164           +20,728

Interagency Law Enforcement:
    Interagency crime and drug enforcement....................          107,576           107,576           108,532              +956              +956
Financial Management Service..................................          212,850           220,712           222,078            +9,228            +1,366
Bureau of Alcohol, Tobacco and Firearms.......................          810,316           870,775           886,753           +76,437           +15,978
    9/11 Supplemental (Public Law 107-117)....................           31,431   ................  ................          -31,431   ................
                                                               -----------------------------------------------------------------------------------------
      Subtotal................................................          841,747           870,775           886,753           +45,006           +15,978

    GREAT grants..............................................           13,000            13,000            13,000   ................  ................
                                                               -----------------------------------------------------------------------------------------
      Total...................................................          854,747           883,775           899,753           +45,006           +15,978

United States Customs Service:
    Salaries and Expenses.....................................        2,079,357         2,391,952         2,525,453          +446,096          +133,501
        9/11 Supplemental (Public Law 107-117)................          392,603   ................  ................         -392,603   ................
                                                               -----------------------------------------------------------------------------------------
          Subtotal............................................        2,471,960         2,391,952         2,525,453           +53,493          +133,501

    Users fees, conveyance/passenger/other....................  ................         -167,000   ................  ................         +167,000
    Harbor Maintenance Fee Collection.........................            3,000             3,000             3,000   ................  ................
    Operation, Maintenance and Procurement, Air and Marine              177,860           170,829           177,829               -31            +7,000
     Interdiction Programs....................................
        9/11 Supplemental (Public Law 107-117)................            6,700   ................  ................           -6,700   ................
                                                               -----------------------------------------------------------------------------------------
          Subtotal............................................          184,560           170,829           177,829            -6,731            +7,000

        Miscellaneous appropriations (Public Law 106-554).....  ................  ................  ................  ................  ................

    Automation modernization:
        Automated Commercial System...........................          122,432           122,432           122,432   ................  ................
        International Trade Data System.......................            5,400   ................  ................           -5,400   ................
        Automated Commercial Environment......................          300,000           312,900           312,900           +12,900   ................
                                                               -----------------------------------------------------------------------------------------
          Subtotal............................................          427,832           435,332           435,332            +7,500   ................

    Customs Services at Small Airports (to be derived from                3,000             3,000             3,000   ................  ................
     fees collected)..........................................
        Offsetting receipts...................................           -3,000            -3,000            -3,000   ................  ................
                                                               =========================================================================================
          Total...............................................        3,087,352         2,834,113         3,141,614           +54,262          +307,501

Bureau of the Public Debt.....................................          186,953           191,119           192,068            +5,115              +949
Payment of government losses in shipment......................            1,000             1,000             1,000   ................  ................

Internal Revenue Service:
    Processing, Assistance, and Management....................        3,797,890         3,958,337         3,985,151          +187,261           +26,814
        9/11 Supplemental (Public Law 107-117)................           12,990   ................  ................          -12,990   ................
                                                               -----------------------------------------------------------------------------------------
          Subtotal............................................        3,810,880         3,958,337         3,985,151          +174,271           +26,814

    Tax Law Enforcement.......................................        3,538,347         3,729,072         3,774,121          +235,774           +45,049
        9/11 Supplemental (Public Law 107-117)................            4,544   ................  ................           -4,544   ................
                                                               -----------------------------------------------------------------------------------------
          Subtotal............................................        3,542,891         3,729,072         3,774,121          +231,230           +45,049

    Earned Income Tax Credit Compliance Initiative............          146,000           146,000           147,233            +1,233            +1,233

    Information Systems.......................................        1,563,249         1,632,444         1,638,716           +75,467            +6,272
        9/11 Supplemental (Public Law 107-117)................           15,991   ................  ................          -15,991   ................
                                                               -----------------------------------------------------------------------------------------
          Subtotal............................................        1,579,240         1,632,444         1,638,716           +59,476            +6,272

    Business systems modernization............................          391,593           450,000           450,000           +58,407   ................
                                                               -----------------------------------------------------------------------------------------
      Total (net).............................................        9,470,604         9,915,853         9,995,221          +524,617           +79,368

United States Secret Service:
    Salaries and Expenses.....................................          920,615         1,010,435         1,016,947           +96,332            +6,512
        9/11 Supplemental (Public Law 107-117)................          104,769   ................  ................         -104,769   ................
                                                               -----------------------------------------------------------------------------------------
          Subtotal............................................        1,025,384         1,010,435         1,016,947            -8,437            +6,512
    Acquisition, Construction, Improvements, & Related                    3,457             3,519             3,519               +62   ................
     Expenses.................................................
                                                               -----------------------------------------------------------------------------------------
      Total...................................................        1,028,841         1,013,954         1,020,466            -8,375            +6,512
                                                               =========================================================================================
      Total, title I, Department of the Treasury..............       15,646,178        15,865,446        16,303,655          +657,477          +438,209
          Appropriations......................................       15,041,918        15,865,446        16,303,655        +1,261,737          +438,209
          Rescissions.........................................  ................  ................  ................  ................  ................
                                                               =========================================================================================
                   TITLE II--POSTAL SERVICE

Payment to the Postal Service Fund............................           29,000            29,000            60,014           +31,014           +31,014
    9/11 Supplemental (Public Law 107-117)....................          500,000   ................  ................         -500,000   ................
                                                               -----------------------------------------------------------------------------------------
      Subtotal................................................          529,000            29,000            60,014          -468,986           +31,014
    Advance appropriation, fiscal year 2002/2003..............           67,093            47,619            47,619           -19,474   ................
    Advance appropriation, fiscal year 2004...................  ................           31,014   ................  ................          -31,014
                                                               -----------------------------------------------------------------------------------------
      Total, title II, Postal Service:
          Fiscal year 2002/2003...............................          596,093            76,619           107,633          -488,460           +31,014
          Fiscal year 2004....................................  ................           31,014   ................  ................          -31,014
                                                               =========================================================================================
    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.............................              450               450               450   ................  ................
    Salaries and Expenses.....................................           54,651            84,592            60,212            +5,561           -24,380
    Office of Homeland Security...............................  ................  ................           25,301           +25,301           +25,301
Executive Residence at the White House:
    Operating Expenses........................................           11,695            12,228            12,339              +644              +111
    White House Repair and Restoration........................            8,625             1,200             1,200            -7,425   ................
Special Assistance to the President and the Official Residence
 of the Vice President:
    Salaries and Expenses.....................................            3,925             4,066             4,093              +168               +27
    Operating expenses........................................              318               324               325                +7                +1
Council of Economic Advisers..................................            4,211             4,405             4,444              +233               +39
Office of Policy Development..................................            4,142             4,221             4,254              +112               +33

National Security Council.....................................            7,494             9,525             9,600            +2,106               +75
Office of Administration......................................           46,955            70,128            70,338           +23,383              +210
    9/11 Supplemental (Public Law 107-117)....................           50,040   ................  ................          -50,040   ................
                                                               -----------------------------------------------------------------------------------------
      Subtotal................................................           96,995            70,128            70,338           -26,657              +210

Office of Management and Budget...............................           70,752            70,752            71,370              +618              +618

Office of National Drug Control Policy:
    Salaries and expenses.....................................           25,263            25,458            26,605            +1,342            +1,147
    Counterdrug Technology Assessment Center..................           42,300            40,000            40,000            -2,300   ................
                                                               -----------------------------------------------------------------------------------------
      Total...................................................           67,563            65,458            66,605              -958            +1,147

Federal Drug Control Programs:
    High Intensity Drug Trafficking Areas Program.............          226,350           206,350           226,350   ................          +20,000
    Special Forfeiture Fund...................................          239,400           251,300           172,700           -66,700           -78,600
Unanticipated Needs...........................................            1,000             1,000             1,000   ................  ................
Election Administration Reform................................  ................  ................  ................  ................  ................
                                                               =========================================================================================
      Total, title III, Executive Office of the President and           797,571           785,999           730,581           -66,990           -55,418
       Funds Appropriated to the President....................
                                                               =========================================================================================
                TITLE IV--INDEPENDENT AGENCIES

Committee for Purchase From People Who Are Blind or Severely              4,629             4,629             4,658               +29               +29
 Disabled.....................................................
Federal Election Commission...................................           43,689            45,244            45,668            +1,979              +424
Federal Labor Relations Authority.............................           26,524            28,684            28,950            +2,426              +266

General Services Administration:
    Federal Buildings Fund:
        Appropriations........................................          284,400           276,400           371,489           +87,089           +95,089
            9/11 Supplemental (Public Law 107-117)............          126,512   ................  ................         -126,512   ................
                                                               -----------------------------------------------------------------------------------------
              Subtotal........................................          410,912           276,400           371,489           -39,423           +95,089

        Limitations on availability of revenue:
            Construction and acquisition of facilities........         (662,680)         (556,574)         (653,913)          (-8,767)         (+97,339)
            Repairs and alterations...........................         (826,676)         (986,029)         (995,589)        (+168,913)          (+9,560)
                9/11 Supplemental (Public Law 107-117)........          (42,700)  ................  ................         (-42,700)  ................
                                                               -----------------------------------------------------------------------------------------
                  Subtotal....................................         (869,376)         (986,029)         (995,589)        (+126,213)          (+9,560)

            Installment acquisition payments..................         (186,427)         (178,960)         (178,960)          (-7,467)  ................
            Rental of space...................................       (2,952,050)       (3,153,211)       (3,153,211)        (+201,161)  ................
            Building Operations...............................       (1,748,949)       (1,965,160)       (1,971,030)        (+222,081)          (+5,870)
                9/11 Supplemental (Public Law 107-117)........          (83,812)  ................  ................         (-83,812)  ................
                                                               -----------------------------------------------------------------------------------------
                  Subtotal....................................       (1,832,761)       (1,965,160)       (1,971,030)        (+138,269)          (+5,870)
                                                               -----------------------------------------------------------------------------------------
                  Subtotal, limitations.......................        6,503,294         6,839,934         6,952,703          +449,409          +112,769

            Repayment of Debt.................................          (72,000)          (79,685)          (79,685)          (+7,685)  ................
            Rental income to fund.............................  ................  ................  ................  ................  ................
                                                               -----------------------------------------------------------------------------------------
              Total, Federal Buildings Fund...................          410,912           276,400           371,489           -39,423           +95,089
                  (Limitations)...............................       (6,575,294)       (6,919,619)       (7,032,388)        (+457,094)        (+112,769)

    Policy and Operations.....................................          143,139   ................  ................         -143,139   ................
    Policy and Citizen Services...............................  ................           65,995            75,304           +75,304            +9,309
    Operating Expenses........................................  ................           88,263            87,674           +87,674              -589
    Office of Inspector General...............................           36,346            37,617            37,916            +1,570              +299
    Electronic Government Fund................................            5,000            45,000            45,000           +40,000   ................
    Allowances and Office Staff for Former Presidents.........            3,196             3,339             3,344              +148                +5
                                                               -----------------------------------------------------------------------------------------
      Total, General Services Administration..................          598,593           516,614           620,727           +22,134          +104,113

Merit Systems Protection Board:
    Salaries and Expenses.....................................           30,555            31,790            32,027            +1,472              +237
    Limitation on administrative expenses.....................            2,520             2,594             2,626              +106               +32
Morris K. Udall Foundation:
    Morris K. Udall Trust Fund................................            1,996             1,996             1,996   ................  ................
    Environmental Dispute Resolution Fund.....................            1,309             1,309             1,309   ................  ................

National Archives and Records Administration:
    Operating expenses........................................          244,247           256,731           249,875            +5,628            -6,856
        9/11 Supplemental (Public Law 107-117)................            1,600   ................  ................           -1,600   ................
                                                               -----------------------------------------------------------------------------------------
          Subtotal............................................          245,847           256,731           249,875            +4,028            -6,856
    Reduction of debt.........................................           -6,612            -7,186            -7,186              -574   ................

    Repairs and Restoration...................................           39,143            10,458            14,208           -24,935            +3,750
        9/11 Supplemental (Public Law 107-117)................            1,000   ................  ................           -1,000   ................
                                                               -----------------------------------------------------------------------------------------
          Subtotal............................................           40,143            10,458            14,208           -25,935            +3,750

    National Historical Publications and Records Commission:              6,436             5,000             8,000            +1,564            +3,000
     Grants program...........................................
                                                               -----------------------------------------------------------------------------------------
      Total...................................................          285,814           265,003           264,897           -20,917              -106

Office of Government Ethics...................................           10,117            10,488            10,557              +440               +69

Office of Personnel Management:
    Salaries and Expenses.....................................           99,636           128,804           129,686           +30,050              +882
        Limitation on administrative expenses.................          115,928           120,791           121,765            +5,837              +974
    Office of Inspector General...............................            1,498             1,498             1,519               +21               +21
        Limitation on administrative expenses.................           10,016            10,766            10,886              +870              +120
    Government Payment for Annuitants, Employees Health               6,129,000         6,853,000         6,853,000          +724,000   ................
     Benefits.................................................
    Government Payment for Annuitants, Employee Life Insurance           34,000            34,000            34,000   ................  ................
    Payment to Civil Service Retirement and Disability Fund...        9,229,000         9,410,000         9,410,000          +181,000   ................
                                                               -----------------------------------------------------------------------------------------
      Total, Office of Personnel Management...................       15,619,078        16,558,859        16,560,856          +941,778            +1,997

Office of Special Counsel.....................................           11,891            12,434            12,449              +558               +15
United States Tax Court.......................................           37,305            37,305            37,611              +306              +306
White House Commission on the National Monument of Remembrance              500               250               250              -250   ................
Net fiscal year 2002 proceeds from WTC stamp..................  ................  ................  ................  ................  ................
                                                               -----------------------------------------------------------------------------------------
      Total, title IV, Independent Agencies...................       16,674,520        17,517,199        17,624,581          +950,061          +107,382
                                                               =========================================================================================
      Grand total (net).......................................       33,714,362        34,276,277        34,766,450        +1,052,088          +490,173
          Current year, fiscal year 2002......................       33,647,269        34,197,644        34,718,831        +1,071,562          +521,187
              Appropriations..................................      (32,363,857)      (34,197,644)      (34,718,831)      (+2,354,974)        (+521,187)
              Rescissions.....................................  ................  ................  ................  ................  ................
          Advance appropriations, fiscal year 2002/fiscal year  ................           31,014   ................  ................          -31,014
           2003...............................................
          (Limitations).......................................        6,575,294         6,919,619         7,032,388          +457,094          +112,769
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