Senate Report 112-177 - FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 2013

[Senate Report 112-177]
[From the U.S. Government Publishing Office]

Calendar No. 429
112th Congress Report
SENATE
2d Session 112-177

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

FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 2013

_______

June 14, 2012.--Ordered to be printed

_______

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

REPORT

[To accompany S. 3301]

The Committee on Appropriations reports an original bill
(S. 3301) making appropriations for financial services and
general government for the fiscal year ending September 30,
2013, and for other purposes, reports favorably thereon and
recommends that the bill do pass.

Amounts of new budget (obligational) authority for fiscal year 2013

Total of bill as reported to the Senate................. $44,286,736,000
Amount of 2012 appropriations........................... 43,090,895,000
Amount of 2013 budget estimate.......................... 44,623,459,000
Bill as recommended to Senate compared to--
2012 appropriations................................. +1,195,841,000
2013 budget estimate................................ -336,723,000

CONTENTS

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Page
Overview and Summary of Bill..................................... 5
Program, Project, and Activity................................... 5
Reprogramming Guidelines......................................... 5
Relationship With Budget Offices................................. 6
Congressional Budget Justifications.............................. 7
Agency Reports................................................... 7
Title I: Department of the Treasury:
Departmental Offices......................................... 8
Department-wide Systems and Capital Investments Programs. 11
Office of Inspector General.............................. 12
Treasury Inspector General for Tax Administration........ 13
Special Inspector General for the Troubled Asset Relief
Program................................................ 14
Financial Crimes Enforcement Network......................... 15
Treasury Forfeiture Fund..................................... 17
Financial Management Service................................. 17
Alcohol and Tobacco Tax and Trade Bureau..................... 18
United States Mint........................................... 18
Bureau of the Public Debt.................................... 19
Fiscal Service............................................... 20
Community Development Financial Institutions Fund............ 21
Bureau of Engraving and Printing............................. 22
Internal Revenue Service..................................... 23
Taxpayer Services........................................ 25
Enforcement.............................................. 27
Operations Support....................................... 29
Business Systems Modernization........................... 31
Administrative Provisions--Internal Revenue Service.......... 33
Administrative Provisions--Department of the Treasury........ 33
Title II: Executive Office of the President and Funds
Appropriated to the President:
Compensation of the President................................ 35
The White House.............................................. 35
Executive Residence at the White House....................... 36
White House Repair and Restoration........................... 36
Council of Economic Advisers................................. 37
National Security Council and Homeland Security Council...... 37
Office of Administration..................................... 37
Office of Management and Budget.............................. 38
Office of National Drug Control Policy....................... 39
Funds Appropriated to the President:
High Intensity Drug Trafficking Areas.................... 40
Other Federal Drug Control Programs...................... 41
Unanticipated Needs.......................................... 42
Partnership Fund for Program Integrity Innovation............ 42
Integrated, Efficient and Effective Uses of Information
Technology................................................. 43
Special Assistance to the President.......................... 44
Official Residence of the Vice President..................... 45
Administrative Provisions--Executive Office of the President
and Funds Appropriated to the President.................... 45
Title III: The Judiciary:
Supreme Court of the United States........................... 46
Care of the Building and Grounds......................... 47
United States Court of Appeals for the Federal Circuit....... 47
United States Court of International Trade................... 48
Courts of Appeals, District Courts, and Other Judicial
Services................................................... 48
Vaccine Injury Compensation Trust Fund................... 49
Defender Services........................................ 49
Fees of Jurors and Commissioners......................... 50
Court Security........................................... 50
Administrative Office of the United States Courts............ 51
Federal Judicial Center...................................... 51
Judicial Retirement Funds.................................... 52
United States Sentencing Commission.......................... 52
Administrative Provisions--The Judiciary..................... 52
Title IV--District of Columbia:
Federal Funds:
Federal Payment for Resident Tuition Support............. 54
Federal Payment for Emergency Planning and Security Costs
in the District of Columbia............................ 55
Federal Payment to the District of Columbia Courts....... 56
Federal Payment for Defender Services in District of
Columbia Courts........................................ 57
Federal Payment to the Court Services and Offender
Supervision Agency for the District of Columbia........ 58
Federal Payment to the Public Defender Service for the
District of Columbia................................... 59
Federal Payment to the District of Columbia Water and
Sewer Authority........................................ 59
Federal Payment to the Criminal Justice Coordinating
Council................................................ 60
Federal Payment for Judicial Commissions................. 61
Federal Payment for School Improvement................... 61
Federal Payment for the D.C. National Guard.............. 65
Federal Payment for Redevelopment of the St. Elizabeths
Hospital Campus........................................ 65
Federal Payment for HIV/AIDS Prevention.................. 66
Federal Payment for Job Training Pilot Project........... 66
Federal Payment for D.C. Commission on the Arts and
Humanities Grants...................................... 67
District of Columbia Funds................................... 67
Title V--Independent Agencies:
Administrative Conference of the United States............... 68
Christopher Columbus Fellowship Foundation................... 68
Civilian Property Realignment Board.......................... 69
Commodity Futures Trading Commission......................... 69
Consumer Product Safety Commission........................... 72
Election Assistance Commission............................... 74
Federal Communications Commission............................ 74
Federal Deposit Insurance Corporation: Office of Inspector
General.................................................... 77
Federal Election Commission.................................. 77
Federal Labor Relations Authority............................ 78
Federal Trade Commission..................................... 78
General Services Administration.............................. 81
Harry S Truman Scholarship Foundation........................ 90
Merit Systems Protection Board............................... 91
Morris K. Udall and Stewart L. Udall Foundation.............. 91
National Archives and Records Administration................. 92
National Credit Union Administration......................... 96
Office of Government Ethics.................................. 97
Office of Personnel Management............................... 98
Office of Special Counsel.................................... 102
Postal Regulatory Commission................................. 103
Privacy and Civil Liberties Oversight Board.................. 104
Recovery Accountability and Transparency Board............... 105
Securities and Exchange Commission........................... 105
Selective Service System..................................... 110
Small Business Administration................................ 111
United States Postal Service................................. 116
Office of Inspector General.............................. 119
United States Tax Court...................................... 119
Statement Concerning General Provisions.......................... 120
Title VI--General Provisions--This Act........................... 121
Title VII--General Provisions--Governmentwide.................... 123
Title VIII--General Provisions--District of Columbia............. 127
Compliance With Paragraph 7, Rule XVI of the Standing Rules of
the
Senate......................................................... 129
Compliance With Paragraph 7(c), Rule XXVI of the Standing Rules
of the Senate.................................................. 130
Compliance With Paragraph 12, Rule XXVI of the Standing Rules of
the Senate..................................................... 130
Budgetary Impact of Bill......................................... 143
Comparative Statement of New Budget Authority.................... 144

OVERVIEW AND SUMMARY OF THE BILL

The Financial Services and General Government
appropriations bill provides funding for the Department of the
Treasury, including the Internal Revenue Service; the Executive
Office of the President; the Judiciary; the District of
Columbia; and more than two dozen independent Federal agencies.
The Committee recommends $44,286,736,000 in discretionary
and mandatory appropriations. This represents an increase of
$1,195,841,000 above the fiscal year 2012 enacted level, and a
decrease of $336,723,000 below the budget request. Of the
total, $23,158,400,000 is provided in discretionary
appropriations, including $167,000,000 for the Small Business
Administration Disaster Loans Program Account designated by
Congress as disaster relief pursuant to Public Law 112-25. This
discretionary amount is $340,723,000 below the budget request
of $23,499,123,000. Mandatory appropriations total
$21,251,397,000.

PROGRAM, PROJECT, AND ACTIVITY

During fiscal year 2013, for the purposes of the Balanced
Budget and Emergency Deficit Control Act of 1985 (Public Law
99-177), as amended, with respect to appropriations contained
in the accompanying bill, the terms ``program, project, and
activity'' [PPA] shall mean any item for which a dollar amount
is contained in appropriations acts (including joint
resolutions providing continuing appropriations) or
accompanying reports of the House and Senate Committees on
Appropriations, or accompanying conference reports and joint
explanatory statements of the committee of conference.

REPROGRAMMING GUIDELINES

The Committee includes a provision (section 608)
establishing the authority of agencies to reprogram funds and
the limitation on that authority. The provision specifically
requires the advance approval of the House and Senate
Committees on Appropriations of any proposal to reprogram funds
that: (1) creates a new program; (2) eliminates a program,
project, or activity [PPA]; (3) increases funds or personnel
for any PPA for which funds have been denied or restricted by
the Congress; (4) proposes to redirect funds that were directed
in such reports for a specific activity to a different purpose;
(5) augments an existing PPA in excess of $5,000,000 or 10
percent, whichever is less; (6) reduces an existing PPA by
$5,000,000 or 10 percent, whichever is less; or (7) creates,
reorganizes, or restructures offices differently than the
congressional budget justifications or the table at the end of
the Committee report, whichever is more detailed.
The Committee retains the requirement that each agency
submit an operating plan to the House and Senate Committees on
Appropriations not later than 60 days after enactment of this
act to establish the baseline for application of reprogramming
and transfer authorities provided in this act. Specifically,
each agency should provide a table for each appropriation with
columns displaying the budget request; adjustments made by
Congress; adjustments for rescissions, if appropriate; and the
fiscal year enacted level. The table shall delineate the
appropriation both by object class and by PPA. The report must
also identify items of special congressional interest.
The Committee expects the agencies and bureaus to submit
reprogramming requests in a timely manner and to provide a
thorough explanation of the proposed reallocations, including a
detailed justification of increases and reductions and the
specific impact the proposed changes will have on the budget
request for the following fiscal year. Except in emergency
situations, reprogramming requests should be submitted no later
than June 30.
The Committee expects each agency to manage its programs
and activities within the amounts appropriated by Congress. The
Committee reminds agencies that reprogramming requests should
be submitted only in the case of an unforeseeable emergency or
a situation that could not have been anticipated when
formulating the budget request for the current fiscal year.
Further, the Committee notes that when a Department or agency
submits a reprogramming or transfer request to the Committees
on Appropriations and does not receive identical responses from
the House and the Senate, it is the responsibility of the
Department or agency to reconcile the House and the Senate
differences before proceeding, and if reconciliation is not
possible, to consider the request to reprogram funds
unapproved.

RELATIONSHIP WITH BUDGET OFFICES

Through the years, the Committee has channeled most of its
inquiries and requests for information and assistance through
the budget offices of the various departments, agencies,
offices, and commissions. The Committee has often pointed to
the natural affinity and relationship between the budget
offices and the Committee which makes such a relationship
workable. The Committee reiterates its longstanding position
that while the Committee reserves the right to call upon any
office or officer in the departments, agencies, and
commissions, the primary conjunction between the Committee and
these entities must be through the budget offices. To help
ensure the Committee's ability to perform its responsibilities,
the Committee insists on having direct, unobstructed, and
timely access to the budget offices and expects to be able to
receive forthright and complete responses from those offices
and their employees.
The Committee has encountered growing difficulties in
securing timely agency compliance with mandated reporting
requirements and has experienced several situations in which
deadlines for submission of reports were disregarded entirely.
The Committee expects and directs all agencies from which
reports are required to allow sufficient time to secure any
necessary internal and external clearances of reports in order
to satisfy congressional deadlines. The Committee strongly
urges agencies to alert the Committee as far as possible in
advance of any expected slippage in meeting a report delivery
due date.

CONGRESSIONAL BUDGET JUSTIFICATIONS

Budget justifications are prepared not for the use of the
agency, but instead are the primary tool used by the House and
Senate Committees on Appropriations to evaluate the resource
requirements and fiscal needs of agencies. The Committee is
aware that the format and presentation of budget materials is
largely left to the agency within presentation objectives set
forth by OMB. In fact, OMB Circular A-11, part 6 specifically
states that the ``agency should consult with your congressional
committees beforehand to ensure their awareness of your plans
to modify the format of agency budget documents.'' The
Committee expects all the budget justifications to adhere to
this directive and provide the data needed to make appropriate
and meaningful funding decisions.
The Committee directs that justifications submitted with
the fiscal year 2014 budget requests by agencies funded under
this act must contain the customary level of detailed data and
explanatory statements to support the appropriations requests
at the level of detail contained in the funding table included
at the end of the report. Among other items, agencies shall
provide a detailed discussion of proposed new initiatives,
proposed changes in the agency's financial plan from prior year
enactment, and detailed data on all programs and comprehensive
information on any office or agency restructurings. At a
minimum, each agency must also provide adequate justification
for funding and staffing changes for each individual office and
materials that compare programs, projects, and activities that
are proposed for fiscal year 2014 to the fiscal year 2013
enacted level.
The Committee is aware that the analytical materials
required for review by the Committee are unique to each agency
in this act. Therefore, the Committee expects that each agency
will coordinate with the House and Senate Committees on
Appropriations in advance on its planned presentation for its
budget justification materials in support of the fiscal year
2014 budget request.

AGENCY REPORTS

As a measure to reduce costs and conserve paper, the
Committee reminds agencies funded by this act that currently
provide separate copies of periodic reports (such as
Performance and Accountability Reports) and correspondence to
the chairs of the House and Senate Appropriations Committees
and Subcommittees on Financial Services and General Government,
and also to the ranking members of the committees and
subcommittees, to send only one copy jointly addressed to the
chairs of the Committee and subcommittee and one copy jointly
addressed to the ranking members of the Committee and
subcommittee (separate copies should be sent to the House and
the Senate). Eliminating duplication will reduce by one-half
(from eight to four) the copies of periodic reports agencies
send to the committees.

TITLE I

DEPARTMENT OF THE TREASURY

Departmental Offices

salaries and expenses

Appropriations, 2012.................................... $308,388,000
Budget estimate, 2013................................... 301,216,000
Committee recommendation................................ 301,216,000

PROGRAM DESCRIPTION

The Secretary of the Treasury has 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 Departmental Offices Salaries
and Expenses appropriation include: recommending and
implementing U.S. domestic and international economic and tax
policy; formulating fiscal policy; governing the fiscal
operations of the Government; executing the Nation's financial
sanction policies; disrupting and dismantling terrorist
financial infrastructure; protecting the United States and the
international financial system from terrorist financing, money
laundering, and other financial crimes; managing the public
debt; managing international development policy; representing
the United States on international monetary, trade, and
investment issues; overseeing Department of the Treasury
overseas operations; and directing the administrative
operations of the Department of the Treasury. The majority of
the Salaries and Expenses appropriation provides resources for
policy formulation and implementation in the areas of domestic
and international finance, terrorist financing and financial
crimes, tax, economic, trade, financial operations and general
fiscal policy. This appropriation also provides resources to
support the Secretary, policy components, and departmental
administrative policies in financial and personnel management,
procurement operations, and information systems and
telecommunications.

COMMITTEE RECOMMENDATION

The Committee recommends $301,216,000 for the Departmental
Offices account of the Department of the Treasury for fiscal
year 2013. This amount is the same as the budget request and
$7,172,000 below the fiscal year 2012 enacted level. The
funding recommendations are made based on information included
in the budget justification.
The Committee directs the Department to prioritize
resources within the Departmental Offices account for the
Office of Terrorism and Financial Intelligence in order to
support safeguarding financial systems against illicit use and
combating rogue nations, terrorist facilitators, money
launderers, proliferators of weapons of mass destruction, and
other national security threats.
The Committee makes the following findings:
Office of Financial Education.--The Committee is concerned
about the low level of literacy and numeracy skills among the
adult population of the United States, as one in seven adults
do not have basic literacy skills to succeed in all but the
most rudimentary literacy tasks. The Department's Office of
Financial Education administers the National Financial Literacy
Challenge and develops strategies to combat predatory lending.
The Office of Financial Education also coordinates the efforts
of the Financial Literacy and Education Commission, a group
chaired by the Secretary of the Treasury and composed of
representatives from 20 Federal departments, agencies, and
commissions. The Commission works to improve financial literacy
and education for people throughout the United States. The
Committee encourages the Department to explore the degree to
which current financial literacy programs benefit those
individuals with less than basic literacy skills and to develop
measurable goals and objectives for the Financial Literacy and
Education Commission that address the needs of this population.
Finally, the Committee urges the Department to explore
opportunities to work with community-based adult and family
literacy organizations to promote and implement future
financial literacy initiatives.
Foreclosure Crisis.--The Committee commends the Department
for enhancements to the Home Affordable Modification Program
[HAMP], including increased incentive payments for principal
reduction and extending eligibility for increased incentive
payments to Fannie Mae and Freddie Mac. The Committee notes
that the HAMP April 2012 report shows that 994,000 homeowners
are in active permanent modification and more than 1.1 million
homeowners have been able to remain in their homes because of
HAMP. The Committee directs the Department to urge mortgage
servicers and investors, including Fannie Mae and Freddie Mac,
to consider and implement principal reductions that could save
taxpayer dollars while allowing homeowners to remain in the
home with a reduced monthly mortgage payment and reduce the
number of vacant real-estate owned property that may negatively
affect an entire neighborhood. The Committee also directs the
Department to ensure mortgage servicers properly comply with
HAMP agreements and provide ample technical assistance and
outreach to educate servicers about their responsibilities
under the program.
The Committee supports the administration's goal of
disposing of real-estate owned [REO] properties held by Fannie
and Freddie through the Federal Housing Finance Agency's Pilot
REO Property Sales in Hardest Hit Areas, including the
objectives of returning often vacant REO properties to
productive use to reduce taxpayer costs and stabilize
neighborhood and home prices. To achieve the greatest positive
impact for taxpayers, the Committee urges Fannie and Freddie to
enhance cooperation with State and local entities, including
making REO inventories available for participation in locally
targeted programs. The Committee also supports disposition
strategies that increase rental housing and affordable housing
stock. The Committee notes that to truly reduce the number of
REO properties held by Fannie and Freddie, it is necessary to
prevent homes from foreclosure. The Committee urges the
Department to better utilize programs like HAMP, the Home
Affordable Refinance Program, and the Hardest Hit Fund to
reduce the foreclosure rate among homes financed through Fannie
Mae and Freddie Mac.
Group Home Mortgage Program.--Under authorities provided
pursuant to the Housing and Economic Recovery Act of 2008
(Public Law 110-289), the Federal housing Enterprises have been
placed into conservatorship, with Treasury providing ongoing
financial support to the Enterprises to ensure they remain
active participants in the marketplace. The Group Home Mortgage
Program--formerly Community Living mortgage loans--comprises
approximately $165,000,000 of Fannie Mae's roughly
$3,000,000,000,000 portfolio and is designed to provide
financing for small, community-based group homes for
individuals who are unable to live independently. The program
is intended to provide aid to individuals and legal entities,
including nonprofit and for-profit corporations, limited
partnerships, and government agencies that serve adults and
children with physical and mental disabilities. The Committee
urges Treasury and the Enterprises to maintain this modest
portfolio so that taxpayers will continue to benefit from
profits generated under the program and members of the disabled
community will continue to have accessible and affordable
housing.
Federal Insurance Office.--The Committee supports the
mission and goals of the Treasury Department's Federal
Insurance Office [FIO], particularly its efforts in
international forums to protect U.S. jobs and the
competitiveness of the U.S. insurance and reinsurance
industries. The FIO, working in close partnership with state
insurance supervisors, the Treasury Secretary, and the U.S.
Trade Representative, will strengthen the position of the
United States as it engages with international organizations
and agencies on international insurance regulatory issues.
FIO's appointment to the Executive Committee of the
International Association of Insurance Supervisors [IAIS] is an
important step forward for FIO and the United States. The
Committee believes that the Treasury Department should provide
adequate resources for FIO to ensure the best outcomes for the
United States on international insurance issues.
Economic Sanctions and Divestments.--The Committee
recommendation includes resources for Terrorism and Financial
Intelligence programs. With these funds, the Department will
continue to issue and enforce economic and trade sanctions
consistent with national security and foreign policy goals.
These sanctions are a key tool for asserting U.S. policy toward
countries and entities under sanction. The Committee directs
the Department to fully implement all sanctions and divestment
measures, particularly those applicable to North Korea,
Belarus, Burma, Iran, Sudan, and Zimbabwe. The Committee
directs the Department to promptly notify the Committee of any
resource constraints that adversely impact the implementation
of any sanctions program.
Management of Capital Investments and Information
Security.--The Treasury Office of Inspector General continues
to cite the Department's management of capital investments and
information security as a top management challenge. Treasury is
currently planning and managing several capital investments,
including the transition to a new telecommunications contract,
the implementation of enhanced information security
requirements, and a modernization of systems supporting the
implementation of the Bank Secrecy Act. The Committee
recognizes efforts the Department has made to emphasize capital
investment management Department-wide.
The Committee directs the Department to continue improving
the management of capital investments. The Committee notes that
section 117 of the bill requires the Secretary of the Treasury
to develop an annual Capital Investment Plan, to be submitted
to the Committees on Appropriations of the Senate and the House
of Representatives within 30 days following submission of the
President's annual budget request. The Committee directs the
Department to include estimated funding needs for the lifetime
capital needs for each project, not just for the budget year.
The Committee also directs the Department to include in the
Capital Investment Plan meaningful and understandable summaries
of capital investments by project type (e.g., information
technology). The Committee directs the Office of the Chief
Information Officer to ensure that adequate resources are
devoted both to projects in the capital phase and to proper
maintenance and modernization of existing systems and to ensure
that all projects are tracked properly and described completely
in the annual Capital Investment Plan.

DEPARTMENT-WIDE SYSTEMS AND CAPITAL INVESTMENTS PROGRAMS

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2012....................................................
Budget estimate, 2013................................... $7,108,000
Committee recommendation................................ 7,108,000

PROGRAM DESCRIPTION

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 Government agencies.

COMMITTEE RECOMMENDATION

The Committee recommends $7,108,000 for Department-wide
Systems and Capital Investments Programs [DSCIP] for fiscal
year 2013 in accordance with the budget request. Funding was
not provided for DSCIP for fiscal year 2012.
The Committee notes that the DSCIP account has been
utilized to fund a wide variety of multiyear initiatives. Given
the complexity of these initiatives, the bill includes language
in section 117 directing the Department of the Treasury to
submit an annual Capital Investment Plan to the Committees on
Appropriations within 30 days after the President's budget
submission.

OFFICE OF INSPECTOR GENERAL

SALARIES AND EXPENSES

Appropriations, 2012.................................... $29,641,000
Budget estimate, 2013................................... 28,593,000
Committee recommendation................................ 29,641,000

PROGRAM DESCRIPTION

As a result of the 1988 amendments to the Inspector General
[IG] Act, the Secretary of the Treasury established the Office
of Inspector General [OIG] in 1989.
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 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. The investigative
function provides for the detection and investigation of
improper and illegal activities involving programs, personnel,
and operations.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $29,641,000
for salaries and expenses of the Office of Inspector General.
This amount is an increase of $1,048,000 to the budget request
and equal to the fiscal year 2012 enacted level. The Committee
directs that the office shall focus resources, when practical,
on audits of the Bank Secrecy Act Information Technology
Modernization project currently being planned and implemented
by Treasury's Financial Crimes Enforcement Network. The
Committee directs that the Inspector General shall submit a
written report to the Committee regarding this project,
including contractor oversight and progress regarding budget
and schedule, on March 31, 2013. In addition, the Committee
directs the Inspector General to perform audits, when resources
allow, on Treasury's antimoney laundering and terrorist
financing activities, capital investment spending and planning,
the Community Development Financial Institutions Fund, and
areas identified by the Inspector General as presenting a high
risk to taxpayer-funded spending.

TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

SALARIES AND EXPENSES

Appropriations, 2012.................................... $151,696,000
Budget estimate, 2013................................... 153,834,000
Committee recommendation................................ 153,834,000

PROGRAM DESCRIPTION

The Treasury Inspector General for Tax Administration
[TIGTA] was established by the IRS Restructuring and Reform Act
of 1998 (Public Law 105-206). TIGTA was created to provide
independent audit and investigative services necessary to
improve the quality and credibility of oversight of the
Internal Revenue Service [IRS].
TIGTA conducts audits, investigations, and inspections and
evaluations to assess the operations and programs of the 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 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, limited contract audit, and financial audit
services. Program audits review and audit all facets of the IRS
and related entities in an effort to improve IRS systems and
operations, while ensuring fair and equitable treatment of
taxpayers. Contract audits focus on invoices/vouchers submitted
to the IRS to determine whether charges are valid and to
identify erroneous and improper payments. 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 the administration of
the tax laws.
During fiscal year 2011, TIGTA issued 132 audit reports
that included potential financial benefits of approximately
$16,900,000,000 (including $7,400,000,000 in cost savings and
$9,200,000,000 in increased revenue/revenue protected) and
potentially affected 22.7 million taxpayer accounts in areas
such as taxpayer burden, taxpayer rights and entitlements, and
increased revenue/revenue protected. The Office of
Investigations processed 8,924 complaints, and opened 3,622
investigations during fiscal year 2011. The Office of
Investigations also closed 3,907 investigations, which included
1,499 cases of employee misconduct referred for action and 237
cases accepted for criminal prosecution during fiscal year
2011.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $153,834,000
for the Treasury Inspector General for Tax Administration. This
amount is $2,138,000 above the fiscal year 2012 enacted level
and the same as the budget request. The Committee appreciates
the challenges TIGTA faces in adapting its oversight activities
to address increasingly complex and high-risk issues associated
with IRS operations, including detection and investigation of
fraud and electronic crime, review of procurement activities,
and safeguarding of taxpayer privacy. The Committee recognizes
that growth in the size and workload of the IRS generates
concomitant increased work for TIGTA.
The Committee commends TIGTA for its ongoing review of the
IRS's business systems modernization program and other
information technology projects. The Committee shares TIGTA's
concern that the IRS is developing and launching its modernized
systems without adequately contemplating the security
implications. The Committee also acknowledges the critical
importance of the priorities TIGTA has identified in its
strategic plan, including adapting to the IRS's continuously
evolving operations and mitigating intensified risks associated
with modernization, security, addressing the tax gap, and human
capital challenges facing the IRS in light of budgetary
limitations.
In addition, TIGTA plays a pivotal role in responding to
threats and attacks against IRS employees, property, and
sensitive information. Furthermore, as the IRS bolsters its
efforts to address international tax compliance and combat
offshore evasion, TIGTA's attendant responsibilities to build a
foundation of inspections of the IRS's global activities have
grown, necessitating an international presence, new law
enforcement partnerships, and working relationships with
foreign revenue collection agencies and antifraud
organizations.
The Committee appreciates TIGTA's continued vigilance in
monitoring IRS efforts to implement a significant array of
amendments to the tax code. Despite resource constraints, the
Committee strongly urges TIGTA's sustained oversight of the
IRS's effective implementation and administration of the
requirements involving taxpayer education and outreach,
adequacy of controls to ensure accurate deliverance of tax
credits, and development of information technology
infrastructure to support all of these areas.
The Committee welcomes TIGTA's ongoing work to evaluate the
implementation of the Return Preparer Program and assess the
capacity of the IRS to timely detect and filter fraudulent tax
returns, promptly resolve claims of innocent taxpayers, and
curb the incidence of erroneous refund issuance.

SPECIAL INSPECTOR GENERAL FOR THE TROUBLED ASSET RELIEF PROGRAM

SALARIES AND EXPENSES

Appropriations, 2012.................................... $41,800,000
Budget estimate, 2013................................... 40,224,980
Committee recommendation................................ 40,225,000

PROGRAM DESCRIPTION

The Emergency Economic Stabilization Act (Public Law 110-
343) established the Office of the Special Inspector General
for the Troubled Asset Relief Program [SIGTARP] to perform
audits and investigations of the Troubled Asset Relief Program
[TARP].

COMMITTEE RECOMMENDATION

The Committee recommends $40,225,000 for the SIGTARP for
fiscal year 2013. The recommendation is $1,575,000 below the
fiscal year 2012 enacted level because the SIGTARP will be able
to utilize carryover balances to fund a portion of fiscal year
2013. The recommendation is $20 above the budget request. The
Committee is pleased with the quality of the audits and
investigations conducted by the SIGTARP, particularly with
regard to written materials provided to the Congress and the
public.

Financial Crimes Enforcement Network

SALARIES AND EXPENSES

Appropriations, 2012.................................... $110,788,000
Budget estimate, 2013................................... 102,407,000
Committee recommendation................................ 108,307,000

PROGRAM DESCRIPTION

The Financial Crimes Enforcement Network [FinCEN], a bureau
within the Treasury Department's Office of Terrorism and
Financial Intelligence, is the largest overt collector of
financial intelligence in the United States. FinCEN's mission
is to safeguard the financial system from the abuses of
financial crime, including terrorist financing, money
laundering, and other illicit activity. FinCEN accomplishes its
mission by administering the Bank Secrecy Act, a collection of
statutes that form the Nation's antimoney laundering/
counterterrorist financing regulatory regime. As the delegated
administrator of the Bank Secrecy Act, FinCEN is responsible
for the development and implementation of regulations, rules,
and guidance issued under the Bank Secrecy Act. FinCEN also
oversees the work of eight Federal agencies that have been
delegated responsibility to examine various sectors of the
financial industry for compliance with the Bank Secrecy Act's
requirements. FinCEN is responsible for collecting,
maintaining, and disseminating the information reported by
financial institutions under the Bank Secrecy Act through a
Governmentwide access service. FinCEN is the United States'
Financial Intelligence Unit [FIU] and a founding member of the
Egmont Group of Financial Intelligence Units. As the United
States' FIU, FinCEN routinely shares information and cooperates
with other FIUs around the world to address the global problems
of terrorist financing, money laundering, and other illicit
activity.

COMMITTEE RECOMMENDATION

The Committee recommends $108,307,000 for the Financial
Crimes Enforcement Network [FinCEN]. This amount is $2,481,000
below the fiscal year 2012 enacted level and $5,900,000 above
the budget request.
The Committee is concerned with proposed funding reductions
for FinCEN activities. FinCEN plays a key role in preventing
terrorism and promoting the Nation's security by deterring and
detecting criminal financial activity. The amount recommended
above the request will allow FinCEN to continue to provide full
intelligence support to external agencies in support of
national security, counter terrorism financing, and law
enforcement matters. The increase will also allow FinCEN to
adequately maintain mission critical functions in fiscal year
2013.
The Committee notes that Public Law 107-58 established
FinCEN as a separate bureau within the Department of the
Treasury. The Committee finds that there is a tremendous value
in FinCEN's current structure, which incorporates rulemaking,
compliance, and enforcement functions related to the Bank
Secrecy Act under one single bureau. The Committee notes that
locating such functions in one bureau or agency is the most
common model across the Federal Government, and notes that the
Internal Revenue Service and the banking regulators are
similarly structured. The Committee finds that this model is an
effective management tool because it provides for a continuity
of communication with stakeholders in all steps of the process
and facilitates collaboration among subject-matter experts.
Further, deficiencies and gaps in regulatory coverage
identified through the compliance and enforcement process
inform future rulemaking decisions, whether it be to reduce
industry burdens, close unintended loopholes, or address
emerging risks.
The Committee reminds the Department that section 608 of
this bill requires prior approval from the Committees on
Appropriations for any reprogramming of funds that creates or
reorganizes offices, programs, or activities. The Committee
finds that reimbursable agreements and other similar funding
mechanisms utilized for the purpose of reallocating funding
shall be considered a reprogramming of funds under such
section. When determining the applicability of section 608, the
Department should consult with the Committees on
Appropriations.
Information Technology Modernization.--The Committee
recommendation supports FinCEN's continued efforts to modernize
the technical environment for implementation of the Bank
Secrecy Act [BSA]. The modernization, near completion, will re-
engineer the BSA data architecture, update antiquated
infrastructure required to support data capture and
dissemination, implement innovative Web services and enhanced
electronic filing, and provide enhanced analytical tools. This
system is used by banks, Federal law enforcement, State and
local law enforcement, and other Federal intelligence agencies
to report, gather, and analyze data to identify money
laundering, terrorist financing, tax evasion, and
vulnerabilities in the financial industry. The previous
infrastructure is outdated and limits the capabilities of these
users, which ultimately limits the capability of the Treasury
and its partners to pursue money laundering, terrorist
financing, and tax evasion.
The Committee is pleased with the results of the Treasury
Office of Inspector General's audit of the modernization
project (OIG-12-047). The Inspector General reported that
through May 2011, FinCEN had generally met all scheduled
milestones on time and that the project costs are within an
acceptable 10-percent budget threshold. The Committee
appreciates that FinCEN has engaged stakeholder groups during
the development process, including regulators, law enforcement,
and industry users of BSA data. The Committee directs FinCEN to
prioritize the mapping of BSA data for IRS's purposes so that
data integrity is not disrupted. FinCEN is directed to continue
to submit a semiannual report to the Committee on
Appropriations summarizing the agency's progress regarding the
modernization effort, including milestones planned and
achieved, progress on cost and schedule, management of
contractor oversight, strategies to involve stakeholders, and
acquisition management efforts.
The Committee also directs FinCEN to focus efforts on
improving the completeness and reliability of BSA data in
accordance with recommendations by the Treasury Inspector
General and the Government Accountability Office. The Committee
notes that while a new BSA infrastructure will improve the
capabilities of processing and analyzing BSA data, the
accuracy, reliability, and timeliness of the data itself will
ultimately determine the effectiveness of the system and
related processes.

Treasury Forfeiture Fund

(RESCISSION)

The Committee recommends a rescission of $950,000,000 of
unobligated balances in the Treasury Forfeiture Fund.

Financial Management Service

SALARIES AND EXPENSES

Appropriations, 2012.................................... $217,805,000
Budget estimate, 2013................................... (\1\)
Committee recommendation................................ (\1\)

\1\The budget proposes to consolidate the Financial Management Service
and the Bureau of the Public Debt under one appropriation entitled
``Fiscal Service''. Funding proposed for the Fiscal Service for fiscal
year 2013 is $360,531,000. The Committee recommendation is consistent
with the budget request.
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PROGRAM DESCRIPTION

The Financial Management Service [FMS] implements payment
policy and procedures for Federal agencies, issues and
distributes payments, promotes the use of electronics in the
payment process, provides debt collection operational services
to client agencies, and implements collections policy,
regulations, standards, and procedures for the Federal
Government. 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 Governmentwide
reports.

COMMITTEE RECOMMENDATION

The Committee recommends a consolidated appropriation for
the Financial Management Service and the Bureau of the Public
Debt under a new appropriation entitled ``Fiscal Service'' and
in the amount of $360,531,000, consistent with the budget
request.

Alcohol and Tobacco Tax and Trade Bureau

SALARIES AND EXPENSES

Appropriations, 2012.................................... $99,878,000
Budget estimate, 2013................................... 96,786,000
Committee recommendation................................ 100,378,000

PROGRAM DESCRIPTION

The Homeland Security Act created the Alcohol and Tobacco
Tax and Trade Bureau [TTB] within the Department of the
Treasury and charged TTB with collecting revenue and protecting
the public.
TTB enforces certain Federal laws and regulations relating
to alcohol and tobacco. TTB works directly and in cooperation
with others to maintain a sound revenue management and
collection system that continues to reduce the regulatory
burden, improve service, collect the revenue due, and prevent
tax evasion and other criminal conduct. TTB is also responsible
for preventing consumer deception, ensuring that regulated
products comply with Federal commodity, safety, and
distribution requirements, and providing customer service.

COMMITTEE RECOMMENDATION

The Committee recommends $100,378,000 for TTB for fiscal
year 2013. This amount is $3,592,000 above the budget request
and $500,000 above the fiscal year 2012 enacted level.
The Committee recommendation includes $2,000,000 for the
costs of special law enforcement agents to continue to target
tobacco smuggling and other criminal diversion activities.
Illegally trafficked tax-free tobacco is sold at lower prices,
increasing consumption and tobacco-related illness while
depriving governments of revenue. In 2011, special TTB
enforcement efforts led to the initiation of 21 cases with a
total estimated combined Federal tax liability of $20,000,000
and seizures and forfeitures of approximately $1,700,000.
The Committee rejects the Department's proposal to transfer
enforcement of such tax evasion to the Internal Revenue
Service. The Committee notes that TTB has sole jurisdiction
over Federal excise tax evasion involving alcohol and tobacco
products. The Committee directs the Department and TTB to place
a high priority on conducting robust criminal enforcement
activities at TTB.

United States Mint

UNITED STATES MINT PUBLIC ENTERPRISE FUND

PROGRAM DESCRIPTION

The United States 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 two major
activities: Manufacturing and sales (including circulating
coinage and 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. Those receipts pay for the
costs of the Mint's operations, which include the costs of
production and distribution. The difference between the face
value of the coins and these costs is a profit, which is
deposited as seigniorage to the general fund. In fiscal year
2011, the Mint transferred $51,000,000 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.

COMMITTEE RECOMMENDATION

The Committee recommends a spending level of $19,000,000
for circulating coinage and protective service capital
investments for the Mint. This amount is a decrease of
$1,000,000 to the fiscal year 2012 enacted level and is equal
to the budget request.

Bureau of the Public Debt

ADMINISTERING THE PUBLIC DEBT

Appropriations, 2012.................................... $173,635,000
Budget estimate, 2013................................... (\1\)
Committee recommendation................................ (\1\)

PROGRAM DESCRIPTION

The Bureau of the Public Debt conducts all public debt
operations and promotes the sale of U.S. savings-type
securities.

COMMITTEE RECOMMENDATION

Fiscal Service

SALARIES AND EXPENSES

Appropriations, 2012.................................... (\1\)
Budget estimate, 2013................................... $360,531,000
Committee recommendation................................ 360,531,000

\1\The budget proposes to consolidate the Financial Management Service
and the Bureau of the Public Debt under one appropriation entitled
``Fiscal Service''. The fiscal year 2012 enacted level was $217,805,000
for the Financial Management Service and $173,635,000 for the Bureau of
the Public Debt.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Fiscal Service is a proposed consolidation of the
Financial Management Service and the Bureau of the Public Debt.
The Fiscal Service will continue the operations of both
agencies by providing central payment services to Federal
agencies, operating the Federal Government's collections and
deposit systems, providing governmentwide accounting and
reporting services, managing the collection of delinquent debt
owed to the Federal Government, borrowing on behalf of the
Federal Government, and providing support services for other
Federal agencies on a reimbursable basis.

COMMITTEE RECOMMENDATION

The Committee recommends $360,531,000 for the Fiscal
Service, consistent with the budget request. The Fiscal Service
is a consolidated bureau proposed by the President for fiscal
year 2013 and therefore was not provided a specific
appropriation for fiscal year 2012. Compared to the fiscal year
2012 enacted level for both the Financial Management Service
[FMS] and the Bureau of the Public Debt [BPD], the
recommendation represents a decrease of $30,909,000.
The Committee supports the consolidation of the FMS and the
BPD into the Fiscal Service. Both entities support the
financial management functions for the Federal Government and
have collaborated on important initiatives such as data center
consolidation and shared human resource services. The Committee
commends Treasury for identifying an opportunity to streamline
the delivery of financial services and save taxpayer dollars
through efficiencies. The Department reports that the proposed
consolidation will save $36,000,000 over 5 years. The Committee
directs the Fiscal Service to keep the Committee apprised of
progress on the consolidation effort.
The Committee has included language (section 119)
authorizing the Treasury Department to retain a portion of
assets recovered under an unclaimed asset recovery program to
cover the cost of such program. The Committee directs that any
funds retained by Treasury pursuant to such section shall only
be used for operational and administrative costs of recovering
unclaimed assets. The remainder of the recovered assets shall
be deposited in the Treasury for the purposes of deficit
reduction.

Community Development Financial Institutions Fund

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM ACCOUNT

Appropriations, 2012.................................... $221,000,000
Budget estimate, 2013................................... 221,000,000
Committee recommendation................................ 233,000,000

PROGRAM DESCRIPTION

The Community Development Financial Institutions Fund makes
investments in the form of grants, loans, equity investments,
deposits, and technical assistance grants to new and existing
community development financial institutions [CDFIs] through
the CDFI program. CDFIs include community development banks,
credit unions, venture capital funds, revolving loan funds, and
microloan funds, among others. Recipient institutions engage in
lending and investment for affordable housing, small business,
and community development within underserved communities. The
CDFI Fund administers the Bank Enterprise Award [BEA] Program,
which provides a financial incentive to insured depository
institutions to undertake community development financing
activities.

COMMITTEE RECOMMENDATION

The Committee recommends $233,000,000 for the CDFI Fund,
which is an increase of $12,000,000 to both the fiscal year
2012 enacted level and the budget request.
The Committee supports funding for the CDFI Fund because of
the program's unique ability to leverage private sector
investment in community development projects such as affordable
housing, retail development, and community centers, as well as
lending to small businesses. Funding for the CDFI Fund expands
the power of CDFIs to improve urban and rural communities
through sound but patient investment. With just a small amount
of seed financing from the CDFI Fund, CDFIs transform
communities. CDFIs often provide the ``last mile'' of financing
to our Nation's most challenged areas. CDFIs also provide
banking services to the unbanked and others targeted by
predatory lenders.
Bank On USA.--The Committee recommends $20,000,000 for the
Bank On USA program, consistent with the budget request, to
promote access to affordable financial services and basic
consumer credit products for households without access to such
products and services. These households face a number of
problems, including high fees for alternative financial
services such as check-cashing, barriers to saving and building
credit, and increased exposure to risks such as fraud and
theft. Many of these households also lack access to reasonably
priced short-term consumer credit to meet emergency or regular
needs, often turning to payday loans, refund anticipation
loans, pawn shops and other high-priced alternatives for credit
needs. The Committee directs the CDFI Fund to submit a detailed
spending plan on the Bank On USA program to the Committee
within 120 days of enactment. The Committee also directs the
CDFI Fund to consider underserved rural areas when distributing
funding under the Bank On USA program.
Healthy Food Financing Initiative.--The Committee
recommends $25,000,000 for the Healthy Food Financing
Initiative, consistent with the budget request. The goal of the
initiative is to increase the availability of affordable,
healthy foods in underserved urban and rural communities. Many
of these communities are only served by fast food restaurants
and convenience stores that offer limited healthy food options.
Recommended funding will increase the availability of
affordable financing for grocery store development, supplies
and equipment to improve food production technology, and
improvements and modernization of food distribution mechanisms
and infrastructure.
Native Programs.--The Committee recommends a set-aside of
$12,000,000 for grants, loans, and technical assistance and
training programs to benefit Native American, Alaskan Natives,
and Native Hawaiian communities in the coordination of
development strategies, increased access to equity investments,
and loans for development activities.
Bond Guarantee Program.--The Committee includes a provision
enabling the Secretary of the Treasury to guarantee up to
$1,000,000,000 in bonds in fiscal year 2013, as authorized by
section 1134 of the Small Business Jobs Act of 2010 (Public Law
111-240). The bond guarantees will not result in a cost to the
taxpayer. The bonds will support CDFI lending and investment
activities in underserved communities by providing a source of
long-term capital, and the funds raised through the bonds will
be used to capitalize new loans or refinance existing loans.
CDFI Capacity Building.--The Committee recommendation
includes $2,000,000 to enhance the CDFI Fund's efforts in
building the capacity of CDFIs to serve the needs of
underserved communities. The Committee directs that such funds
shall be used to support the enhancement of CDFIs' capabilities
related to entrepreneurial development, including small dollar
lending.

Bureau of Engraving and Printing

PROGRAM DESCRIPTION

The Bureau of Engraving and Printing [BEP] has been the
sole manufacturer of U.S. paper currency for almost 150 years.
The origin of the BEP is traced to an act of Congress passed on
February 25, 1862, 12 Stat. 345, authorizing the Secretary of
the Treasury to issue a new currency--United States notes.
While this law was the cornerstone authority for the operations
of the engraving and printing division of the Treasury for many
years, it was not until an Act of June 20, 1874, 18 Stat. 100,
that the Congress first referred to this division as the
``Bureau of Engraving and Printing.'' The Bureau's status as a
distinct bureau within the Department of the Treasury was
solidified by section 1 of the Act of June 4, 1897, 30 Stat.
18, which placed all of the business of the BEP under the
immediate control of a director, subject to the direction of
the Secretary of the Treasury. The 1897 law is now codified in
31 U.S.C. 303.
The BEP designs, manufactures, and supplies Federal Reserve
notes and other security documents issued by the Federal
Government. The operations of the BEP 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 BEP to be reimbursed by customer agencies
for all costs of manufacturing products and services performed.
The BEP is also authorized to assess amounts to acquire capital
equipment and provide for working capital needs. No direct
appropriation is required to cover the activities of the BEP.
Currency Accessibility for the Blind and Visually
Impaired.--The Committee is concerned about the ability of
blind and visually impaired individuals to identify
denominations of United States currency. In May 2008, the
United States District Court for the District of Columbia
ordered the Treasury Department to provide meaningful access to
currency for blind and visually impaired persons in order to
comply with the Rehabilitation Act of 1973. The Committee finds
that this is an obligation we have to our service members and
veterans who have lost their sight while serving their country.
The Committee directs the Government Accountability Office
to report within 180 days on how the BEP can expedite the
development, design, testing, and printing of currency with
accessibility features, including tactile features and high-
contrast numerals. The report should include a description of
how the BEP may expedite the Federal acquisition process for
the specialized equipment required to create accessibility
features.
Further, the Committee directs the BEP to report to
Congress and to Treasury's Office of Inspector General [OIG]
within 90 days of enactment on a detailed plan, including a
timeline, to develop, design, test, and print currency with
accessibility features. The plan should also include an
analysis of the feasibility of expediting the Federal
acquisition process for the specialized equipment required to
create accessibility features. The Committee directs the OIG to
provide an initial assessment of the plan to the Committee
within 60 days of receipt and to report on its progress and
implementation every 6 months thereafter until the plan is
fully implemented.
Finally, the Committee encourages the BEP to contract with
the Library of Congress National Library Service for the Blind
and Physically Handicapped, and relevant Executive Agencies,
for the purpose of distributing supplemental currency readers
to blind and other visually impaired U.S. citizens and legal
residents.

Internal Revenue Service

PROGRAM DESCRIPTION

The Internal Revenue Service [IRS] administers the Nation's
tax laws and collects the revenue that funds more than 92
percent of the Federal Government's operations and public
services. The IRS's mission is to provide taxpayers with
quality service by helping them understand and meet their tax
responsibilities and by applying the tax law with integrity and
fairness to all. The IRS focuses its enforcement programs
toward increasing voluntary tax compliance by deterring
taxpayers inclined to evade their tax obligations while
vigorously pursuing those who violate the law. Each year, IRS
employees deal directly with more American taxpayers than any
other institution, public or private.
During fiscal year 2011, the IRS processed more than 234
million returns, issued over 122.8 million refunds, and
collected over $2,415,000,000,000 for the Federal Government.
Of the more than 143 million individual income tax returns
processed, over 76 percent were filed electronically. This
marks a significant increase in electronically filed returns
compared to the 31 percent in fiscal year 2001. The IRS
provided taxpayer assistance through more than 319 million
visits to the IRS.gov Web site, over 42 million automated
telephone calls, 6.4 million walk-in Taxpayer Assistance Center
contacts, and over 34 million telephone calls. The IRS employed
a total work force of 91,380, including seasonal and part-time
employees. In fiscal year 2011, the average cost of collecting
$100 in tax revenue was 51 cents. An important focus for the
IRS in recent years has been to undertake a major modernization
of its systems, including expanding its Internet services and
business operations to better serve taxpayers and enforce the
law.

COMMITTEE RECOMMENDATION

The Committee recommends a total of $12,519,084,000 for the
Internal Revenue Service for fiscal year 2013. This is an
increase of $702,388,000 above the fiscal year 2012 enacted
level and $242,129,000 below the budget request.
Tax Gap.--The vast majority of Americans pay their fair
share of taxes, yet there is still a ``tax gap.'' The tax gap
is the difference between what taxpayers are supposed to pay
and what they actually do pay. In January 2012, the IRS issued
an updated estimate, based on tax year 2006 liabilities,
reflecting a gross tax gap of $450,000,000,000 and a net tax
gap of $385,000,000,000. Of the gross tax gap, more than 83
percent is attributable to underreporting of income. The
determination in the 2001 assessment that compliance is far
higher when reported amounts are subject to information
reporting and, more so, when subject to withholding, remained
valid with the 2006 tax gap estimate.
To reduce the tax gap, experts recommend a number of
approaches. These include improving information reporting,
improving taxpayer services, increasing research on
noncompliance, improving the partnership between the IRS and
the tax administration community, and leveraging technology to
improve IRS's systems. The Committee supports all of these
approaches in combination.
Tax Compliance.--The Committee remains concerned that
absent a better understanding of the current sources of
noncompliance, efforts to improve compliance may be hampered,
misdirected, and difficult to measure. To gain meaningful
insights into taxpayer behavior, the Committee strongly
supports the work of the National Taxpayer Advocate and the IRS
Office of Research to examine factors that influence taxpayer
compliance behavior, including how and the extent to which
various factors influence such behavior, and how the
establishment of a cognitive learning and applied research
laboratory might facilitate continued evaluation.
Operating Plan and Notification.--In addition to the
regular operating plan requirements detailed in the
introduction in this report, the Committee directs the IRS to
include details on any planned reorganization, job reductions
or increases to offices or activities within the agency, and
modifications to any service or enforcement activity. The
Committee also directs the IRS to obtain and include comments
of the IRS Oversight Board as part of its operating plan
submission to the Committee. Further, the IRS should promptly
notify the Committee and the IRS Oversight Board of any
substantial changes to these plans.
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 Centers in
these States are fully staffed and capable of resolving
taxpayer problems of the most complex nature. The Committee
directs the IRS to continue to staff each Taxpayer Advocate
Service Center 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
should be increased if, as the result of the IRS Restructuring
and Reform Act of 1998, subsequent legislation, or other
factors, the volume of cases or their complexity increases.

TAXPAYER SERVICES

Appropriations, 2012.................................... $2,239,703,000
Budget estimate, 2013................................... 2,253,133,000
Committee recommendation................................ 2,253,133,000

PROGRAM DESCRIPTION

The Taxpayer Services appropriation provides for taxpayer
services, including forms and publications; processing tax
returns and related documents; filing and account services;
taxpayer advocacy services; and assisting taxpayers to
understand their tax obligations, correctly file their returns,
and pay taxes due in a timely manner.

COMMITTEE RECOMMENDATION

The Committee recommends $2,253,133,000 for Taxpayer
Services, which is $13,430,000 above the fiscal year 2012
enacted level, and the same as the budget request. Bill
language is included providing not less than $5,600,000 for the
tax counseling for the elderly program, not less than
$10,000,000 for low-income taxpayer clinic [LITC] grants, not
less than $12,000,000, to be available for 2 years, for a
community volunteer income tax assistance [VITA] matching grant
program for tax return preparation assistance and $209,500,000
for the Taxpayer Advocate Service.
The Committee recognizes the significant service challenges
requiring rapid implementation that the IRS has faced as a
result of recent tax law provisions designed to assist
taxpayers in difficult economic times.
The Committee acknowledges that telephonic access to the
IRS is critical to promoting voluntary compliance. In recent
years, the IRS has experienced a decline in its level of
service on its toll-free taxpayer service line due to increased
volume. The Committee encourages the IRS to continue to make
steady progress in its telephonic response performance and work
to sustain taxpayer service delivery in an atmosphere of fiscal
austerity and budgetary constraints.
E-Filing.--The Committee is heartened by the IRS's steady
improved performance in increasing the number of tax filers who
submit their returns electronically and without additional
cost. Electronic filing benefits taxpayers and promotes
effective tax administration because it decreases processing
errors, expedites processing and payment of refunds, and allows
the IRS to efficiently maintain up-to-date records. It costs
the IRS 17 cents to process an electronically filed return,
compared to $3.66 to process a paper filed return.
Based on filing results for most of 2011, the total number
of major individual, business, and tax exempt returns filed
electronically grew about 14 percent, representing the
strongest annual growth since 2004. As a result, the e-file
rate for all major tax returns stands at nearly 67 percent, up
from 59 percent for 2010, meaning that about two out of every
three major tax returns are now filed electronically.
In view of the high rate of electronic filing of tax
returns, IRS's ability to process returns on a daily basis, and
the popularity of electronic deposit of refunds, the Committee
strongly urges the IRS to reevaluate and update its measure on
refund timeliness as recommended by GAO and the IRS Oversight
Board.
Taxpayer Assistance Blueprint.--In response to the
Committee's directive in the fiscal year 2006 Treasury
Appropriations Act, the IRS, in consultation with the IRS
Oversight Board and the National Taxpayer Advocate, developed a
``Taxpayer Assistance Blueprint'' to institute a 5-year
strategic plan for taxpayer services. The Committee expects the
Taxpayer Assistance Blueprint to be an integral and guiding
component of delivering services. The Committee supports
ongoing efforts to conduct research on taxpayer needs and
taxpayer service performance.
The Committee directs the IRS, the IRS Oversight Board, and
the National Taxpayer Advocate to continue to submit to
Congress annual updates to the Taxpayer Assistance Blueprint
identifying any changes to its strategic plan for taxpayer
service, including the results of any new research and relevant
findings, and any open issues requiring additional research.
Community Volunteer Income Tax Assistance.--The Volunteer
Income Tax Assistance [VITA] program is an important aspect of
IRS efforts to provide income tax preparation assistance
programs for low-income taxpayers.
A grant program established in 2008 provides direct funds
to enable VITA programs to extend services to underserved
populations and hardest-to-reach areas, both urban and
nonurban, as well as to increase the capacity to file returns
electronically, heighten quality control, enhance training of
volunteers, and significantly improve the accuracy rate of
returns prepared by VITA sites.
The Committee notes that in November 2011, IRS awarded
matching grants to 213 organizations enabling them to offer
free tax preparation services during the 2012 tax filing season
at locations in all 50 States and the District of Columbia. The
Committee recognizes that the applications for these grants far
exceed the available resources.
The Committee provides that, within funds provided,
$12,000,000 shall be available for 2 years for exclusive use as
part of continuing a matching grant program established and
administered by the IRS, in consultation with the Taxpayer
Advocate Service, for not for profit organizations which
provide volunteer income tax return preparation services for
lower income individual taxpayers.
The Committee strongly urges the IRS to make every effort
to expand the quantity and funding level of VITA grants focused
on serving persons with disabilities proportional to the
growing disability population requiring tax assistance. The
Committee understands that entities that are currently
increasing their outreach efforts to better serve the needs of
the disability population have experienced difficulty in
applying for Federal grant assistance due to a lack of
resources at the local level needed to complete the
application. The Committee urges the IRS to allow national
coalitions responsible for the coordination of local community
partnerships focused specifically on the expanded provision of
tax services for individuals with disabilities to compete in
the VITA community matching grant processes.

ENFORCEMENT

Appropriations, 2012.................................... $5,299,367,000
Budget estimate, 2013................................... 5,701,670,000
Committee recommendation................................ 5,611,530,000

PROGRAM DESCRIPTION

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

COMMITTEE RECOMMENDATION

The Committee recommends $5,611,530,000 for enforcement
activities for fiscal year 2013. This amount is $312,163,000
above the fiscal year 2012 enacted level and $90,140,000 below
the budget request. Bill language is included to provide not
less than $60,257,000 to the Interagency Crime and Drug
Enforcement program.
Expected Benefits of Investments.--The recommended funding
will support restoration of resource reductions experienced in
fiscal year 2012 in audit coverage (field examinations,
compliance risks of complex business networks, and
correspondence examinations particularly focused on refundable
credits) and in collection inventory work that helps brings
indebted taxpayers into compliance. The funding will also
enable the IRS to undertake an array of enforcement initiatives
including promoting offshore tax compliance, improving
international compliance, implementing a revenue protection
strategy to identify and screen questionable refund claims and
help prevent issuance of erroneous refund payments, build-out
of the return preparer registration program, and address the
steady growth in the administrative appeals workload. The
Committee notes that funding these enforcement initiatives in
fiscal year 2013 is projected to yield an overall return on
investment of $4.90 to $1 once new hires reach full potential
in fiscal year 2015.
International Tax Compliance.--The Committee supports the
use and prioritization of enforcement resources to address
business and individual international tax compliance by
building upon steady multiyear investments in initiatives and
activities to reduce offshore tax evasion, including the
success of special voluntary disclosure programs. The Committee
commends the IRS for its recent launch of the third offshore
program to encourage persons hiding assets overseas to
reconcile their U.S. tax responsibilities. Similar initiatives
in 2009 and 2011 produced 33,000 voluntary disclosures and
reaped more than $4,400,000,000, which recovery level is
expected to grow as the IRS continues to process cases.
National Research Program.--As noted previously, the
Committee strongly supports the work of the National Research
Program [NRP] to increase understanding of the tax gap. The
Committee agrees with GAO, TIGTA, the National Taxpayer
Advocate, and the IRS Oversight Board, which have all
recommended greater and more frequent data collection and
studies of the tax gap including the portion of the tax gap
attributable to international transactions.
Performance Measures.--The Committee strongly urges the IRS
to develop additional performance measures to evaluate the
effectiveness of IRS programs such as preparer regulation, new
information reports for merchant payment cards and stock basis,
the Compliance Assurance Process [CAP] program, and Offshore
Voluntary Disclosure programs. The Committee shares the
perspective of the IRS Oversight Board that such measures would
provide greater insight into how specific initiatives impact
compliance and would contribute to better informed management
and funding decisions.
Misclassification of Contractors.--The Committee continues
to be highly concerned with the misclassification of workers as
independent contractors rather than as employees. This
misclassification leads to the underreporting and underpayment
of employment and payroll taxes by employers and individuals,
which accounts for a substantial portion of the gross tax gap.
The Committee is encouraged by IRS actions to develop an
agency-wide plan and a worker classification team to assist
external stakeholders. The Committee understands that the IRS
is undertaking a random sampling selection to study worker
classification and other employment tax issues, including the
safe harbor provision. The Committee looks forward to reviewing
the findings once the 3 years of examinations are complete.
The Committee is concerned that staffing within the IRS's
SS-8 program, responsible for making determinations as to a
worker's Federal employment tax status, has not kept pace with
the record and sustained SS-8 filings during the past three
filing seasons. The Committee believes that the IRS SS-8
program is critical to ensuring that workers are classified
correctly, identifying leads for employment tax exams and
criminal investigations, and combating the underreporting of
employment taxes that contributes significantly to the tax gap.
The Committee believes it is crucial, given the growing
workload, that the IRS maintain sufficient staffing at SS-8
processing locations. Prior to making any staffing reductions
at the SS-8 processing locations, the Committee directs the IRS
to provide a report to the Committee that details the past 5
years of staffing levels and employee productivity, SS-8
receipt volumes, and rationale for the proposed workforce
changes.

OPERATIONS SUPPORT

Appropriations, 2012.................................... $3,947,416,000
Budget estimate, 2013................................... 4,476,200,000
Committee recommendation................................ 4,324,211,000

PROGRAM DESCRIPTION

The Operations Support appropriation provides for overall
planning and direction of the IRS including Infrastructure,
including administrative services related to space and housing,
rent and space alterations, buildings service maintenance,
guard services, and non-IT equipment; Shared Services and
Support, including policy management, IRS-wide support for
research, strategic planning, communications and liaison,
finance, human resources, equity, diversity, and inclusion
programs, printing, postage, business systems planning,
corporate training, legal services, procurement, and employee
benefit programs; and Information Services, including the
staffing, equipment, and related costs to manage, maintain, and
operate the information systems critical to the support of tax
administration programs.
Funding for Operations Support budget activities undergirds
both Taxpayer Services and Enforcement programs that depend on
agile, sophisticated information systems to promptly and
properly process tax and information returns, account for tax
revenues collected, permit automated requests for account and
return transcripts, issue billings for taxes owed, generate
refund payments, assist in selection of returns for audit, and
provide telecommunications services for the full array of IRS
business activities, including Web site and toll-free phone
access.

COMMITTEE RECOMMENDATION

The Committee recommends $4,324,211,000 for Operations
Support for fiscal year 2013. This amount is $376,795,000 above
the fiscal year 2012 enacted level and $151,989,000 below the
budget request. Bill language is included allowing up to
$250,000,000 of these funds to remain available until September
30, 2014, for information technology support and not to exceed
$1,000,000 to remain available until September 30, 2015, for
research; not less than $2,000,000 for the Internal Revenue
Oversight Board; and $25,000 for official reception and
representation expenses.
The recommended funding supports initiatives being
undertaken to implement the information technology and
operational infrastructure critical to delivery of new tax
credits and other IT changes necessitated by changes in the
law. The Committee understands that the IRS recently awarded a
contract to update the cost estimates for its multiyear
information systems development project underway to meet
statutory responsibilities under the Affordable Care Act. The
Committee directs that the IRS ensure that this updated cost
estimate, estimated to be completed by September 2012, follow
the best practices outlined in GAO's Cost Guide for a
comprehensive, well-documented, accurate, and credible cost
estimate. It is imperative that the Committee be regularly
apprised of updated cost estimates in order to have sufficient
reliable information about the specific fiscal 2013 funding
needs in the context of what has been expended to date and with
what results, as well as what costs may be expected to arise in
fiscal years beyond 2013.
Through the Health Care and Education Reconciliation Act of
2010 (Public Law 111-152), Congress established the Health
Insurance Reform Implementation Fund (HIRIF) and appropriated
to the Fund $1,000,000,000 for the Federal administrative
expenses to carry out the law. The Committee directs the IRS to
submit to the Committee, within 30 days of enactment, a
detailed table and explanatory information reflecting the
amounts, dates of receipt, and use of HIRIF funds made
available to the IRS.
Information Technology [IT] Management and Oversight.--The
IRS funds 155 IT systems. Of these, 20 are major systems each
having an annual budget of greater than $10,000,000. The IRS
has made significant strides in improving the management and
oversight of its business systems modernization [BSM] program.
The Committee strongly urges the IRS to vigilantly address
major systemic problems with its non-BSM portfolio of
information technology projects.
The Committee shares the concerns, cited by TIGTA and GAO,
that the IRS lacks a comprehensive integrated system to provide
accurate, relevant, and timely financial and operating data
that can be used to evaluate performance measures,
productivity, and the associated costs of IRS programs. This
deficiency hinders IRS management decisionmaking as well as
congressional oversight of progress in achieving program goals.
The Committee notes that while the IRS uses its IT
governance process to track progress in completing activities
and achieving milestones in non-BSM IT project implementation,
it lacks a quantitative measure for doing so and as a result,
cannot determine the extent of functionality achieved as
incremental stages of project development are reached.
Quantitative measures are valuable project management tools for
securing complete information for ascertaining status and
progress in delivering systems.
In response to GAO's recommendation as part of its
evaluation work related to the BSM spending plans several years
ago, the IRS developed a useful measure based on capabilities
to be achieved for each milestone. The Committee strongly
encourages the IRS to consider developing and using a
quantitative measure of scope for all of its non-BSM major IT
systems to provide more complete understanding of the
functionalities achieved along the course of project work, and
to better ensure that investments are producing the results
expected. In addition, TIGTA has identified problems in several
areas of IT management and oversight including, but not limited
to, such areas as classification of investment projects,
oversight and governance structure, risk management,
contingency planning, and contractor performance and
accountability.
Although progress has been made, the Committee remains
concerned about chronic material weaknesses in IRS's internal
controls over information security that expose systems to
serious risk. The Committee expects the IRS to continue efforts
to fully address information security vulnerabilities,
including promptly instituting corrective action in response to
recommendations of TIGTA and GAO in this area.
The Committee directs the administration and the IRS to
include within the fiscal year 2014 budget request a proposed
long-term multiyear funding strategy and timetable within the
Operations Support account to upgrade and modernize the aging
legacy IRS information technology infrastructure.
Information Technology Reports.--The Committee directs the
IRS to submit quarterly reports on particular major project
activities to the Committees on Appropriations and the GAO, no
later than 2 weeks following the end of each calendar quarter
in fiscal year 2013. The Committee expects the reports to
include detailed, plain English explanations of the costs and
schedules for the previous 3 months and a description of the
anticipated cost and schedule for the upcoming 3 months for the
following major information technology project activities:
IRS.gov; Returns Remittance Processing; EDAS/IPM; Information
Returns and Document Matching; E-services; and other projects
associated with significant changes in law. The Committee
further directs GAO to review and provide an annual report to
the Committees evaluating the cost and schedule of activities
of all major IRS information technology projects for the year,
with particular focus on the projects about which the IRS is
submitting quarterly reports to the Committee.

BUSINESS SYSTEMS MODERNIZATION

Appropriations, 2012.................................... $330,210,000
Budget estimate, 2013................................... 330,210,000
Committee recommendation................................ 330,210,000

PROGRAM DESCRIPTION

The Business Systems Modernization account provides
resources for revamping business practices and acquiring new
technology. The IRS has undertaken a multiyear, multibillion
dollar effort to migrate from its antiquated legacy system to
bring the IRS tax administration system to a level of public
and private sector best practices. The IRS is using a formal
methodology to prioritize, approve, fund, and evaluate its
portfolio of business systems modernization investments. This
methodology is designed to enforce a documented, repeatable,
and measurable process for managing investments throughout
their life cycle. The process is reviewed by the Government
Accountability Office on a regular basis.

COMMITTEE RECOMMENDATION

The Committee recommends $330,210,000 for Business Systems
Modernization [BSM] for fiscal year 2013. This amount is the
same as the fiscal year 2012 enacted level and the budget
request. The Committee encourages the IRS to tap resources
available through user fee revenues to augment the direct
discretionary appropriation for the BSM program.
The Committee salutes IRS management and staff for
achieving two significant milestones in the core tax processing
system in the 2012 filing season. First, the IRS successfully
deployed the long-awaited change from a weekly batch cycle to
daily account processing as part of the Customer Account Data
Engine 2 [CADE 2] program. Second, as a result of updates of
the Modernized e-File [MeF] program, IRS now accepts
electronically all Form 1040 returns and the associated
schedules and forms for the first time, and is processing the
vast majority of electronic tax returns instead of the legacy
e-file system.
The Committee is committed to ensuring continued progress
as the IRS builds on the foundational work accomplished in 2012
to launch additional system capabilities. The Committee
recognizes that successful high-risk systems modernization
efforts depend upon sustained and adequate funding to support
automation refinements designed to help improve customer
service through faster response, enhance compliance and
enforcement activities, and enhance production volumes at lower
error rates.
Of the recommend level of $330,210,000, $252,310,000 is
expected to support key capital investments, notably (1) CADE2
Transition State 2 developmental activities to employ a single
system for managing individual taxpayer accounts that will
address financial management applications and material
weaknesses, and eliminate security weaknesses to ensure privacy
and protection of personally identifiable information, and (2)
further enhancements to the MeF platform achieved through final
deployment of Form 94X family of tax forms (employment/
unemployment tax), development and deployment of Form 1041
(estates and trusts) and requirements development for
incorporating additional forms in the MeF platform.
Building on the reporting directive imposed for fiscal year
2012, the Committee expects the IRS to continue to submit
quarterly reports to the Committee and the Government
Accountability Office [GAO] during fiscal year 2013, no later
than 2 weeks following the end of each calendar quarter. The
Committee expects the reports to include detailed, plain
English explanations of the costs and schedules for CADE2 and
MeF activities for the previous 3 months and a description of
the anticipated cost and schedule for the upcoming 3 months.
The Committee further directs GAO to review and provide an
annual report to the Committee evaluating the cost and schedule
of CADE2 and MeF activities for the year.
The Committee remains concerned that IRS systems
modernization, by its nature, is a high-risk endeavor, and
appreciates that the IRS has, in recent years, satisfied the
majority of developmental milestones planned for completion
early, under budget, or within 10 percent of cost and schedule
estimates. Because of the tendency for certain projects or
components to exceed schedule and cost estimates, the Committee
urges IRS management to maintain close routine scrutiny of cost
and schedule factors.

ADMINISTRATIVE PROVISIONS--INTERNAL REVENUE SERVICE

(INCLUDING TRANSFER OF FUNDS)

The Committee has included five administrative provisions
carried in prior appropriations acts as follows:
Section 101 continues a provision allowing the IRS to
transfer up to 5 percent of any appropriation made available to
the agency in fiscal year 2013 to any other IRS account, with
the exception of the Enforcement account, which is limited to 3
percent. The IRS is directed to follow the Committee's
reprogramming procedures outlined earlier in this report.
Section 102 continues a provision maintaining a training
program in taxpayers' rights and cross-cultural relations.
Section 103 continues a provision requiring the IRS to
institute and enforce policies and procedures, which will
safeguard the confidentiality of taxpayer information and
protect taxpayers against identity theft.
Section 104 continues, with a modification, a provision
directing that funds shall be available for improved facilities
and increased staffing to support sufficient and effective 1-
800 help line services for taxpayers including enhanced
reception and response time of taxpayer correspondence,
particularly for victims of tax-related crimes.
Section 105 continues a provision that prohibits the use of
funds in this act to enter into, renew, extend, administer,
implement, enforce, provide oversight of, or make any payment
related to any qualified tax collection contract.

Administrative Provisions--Department of the Treasury

(INCLUDING TRANSFERS OF FUNDS)

The Committee includes 14 administrative provisions carried
over from prior appropriations acts. The administrative
provisions are as follows:
Section 106 authorizes certain basic services within the
Treasury Department in fiscal year 2013, 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 107 authorizes transfers, up to 2 percent, between
Departmental Offices, Office of Inspector General, Special
Inspector General for the Troubled Asset Relief Program, Fiscal
Service, Alcohol and Tobacco Tax and Trade Bureau, and
Financial Crimes Enforcement Network appropriations under
certain circumstances.
Section 108 authorizes transfers, up to 2 percent, between
the Internal Revenue Service and the Treasury Inspector General
for Tax Administration under certain circumstances.
Section 109 requires that the purchase of law enforcement
vehicles be consistent with departmental vehicle management
principles.
Section 110 prohibits the Department of the Treasury and
the Bureau of Engraving and Printing from redesigning the $1
Federal Reserve Note.
Section 111 authorizes the Secretary of the Treasury to
transfer funds from Salaries and Expenses, Fiscal Service, to
the Debt Collection Fund 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 Collection Fund.
Section 112 extends the authority to conduct a personnel
management demonstration project.
Section 113 requires prior approval for the construction
and operation of a museum by the United States Mint.
Section 114 prohibits the merger of the United States Mint
and the Bureau of Engraving and Printing without prior approval
of the committees of jurisdiction.
Section 115 authorizes the Department's intelligence
activities.
Section 116 permits the Bureau of Engraving and Printing to
use $5,000 from the Industrial Revolving Fund for reception and
representation expenses.
Section 117 requires the Secretary of the Treasury to
develop an annual Capital Investment Plan.
Section 118 relates to refunds, drawbacks, and payments of
claims by certain Federal agencies.
Section 119 relates to the recovery of assets of the United
States.

TITLE II

EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO THE
PRESIDENT

Compensation of the President

Appropriations, 2012.................................... $450,000
Budget estimate, 2013................................... 450,000
Committee recommendation................................ 450,000

PROGRAM DESCRIPTION

This account provides for the compensation of the
President, including an expense allowance as authorized by 3
U.S.C. 102.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $450,000 for
compensation of the President, including an expense allowance
of $50,000. This is the same as the fiscal year 2012 enacted
level and the same as the budget request. The expense account
is for official use as authorized by title 3, United States
Code, and is not considered taxable to the President. The bill
specifies that any unused amount shall revert to the Treasury
consistent with 31 U.S.C. 1552.

The White House

SALARIES AND EXPENSES

Appropriations, 2012.................................... $56,974,000
Budget estimate, 2013................................... 56,974,000
Committee recommendation................................ 56,974,000

PROGRAM DESCRIPTION

The ``Salaries and Expenses'' account of The White House
provides staff assistance and administrative services for the
direct support of the President. The White House also serves as
the President's representative before the media. In accordance
with 3 U.S.C. 105, The White House office also supports and
assists the activities of the spouse of the President.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $56,974,000
for The White House, Salaries and Expenses. The recommendation
is equal to both the fiscal year 2012 enacted level and the
budget request.
The Committee directs the Executive Office of the President
[EOP] to allocate sufficient resources to continue the robust
operation of the Office of National AIDS Policy [ONAP]. ONAP is
responsible for leading implementation of the National HIV/AIDS
Strategy and holding Federal agencies and local jurisdictions
accountable for implementing effective, scalable, and cost-
effective interventions for HIV prevention and care through
commissioning policy research, consulting with the HIV/AIDS
advocacy community, and helping jurisdictions modernize data
collection and other activities to align with the strategy. The
Committee directs the administration to continue to coordinate
a Governmentwide effort to develop and implement a domestic
AIDS strategy, including the development of targets for
improved prevention and treatment outcomes.

Executive Residence at the White House

OPERATING EXPENSES

Appropriations, 2012.................................... $13,425,000
Budget estimate, 2013................................... 13,200,000
Committee recommendation................................ 13,200,000

PROGRAM DESCRIPTION

These funds provide for the care, maintenance, repair,
alteration, refurnishing, improvement, air-conditioning,
heating, and lighting of the White House and the official and
ceremonial functions of the President.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $13,200,000
for the Executive Residence at the White House. The Committee
recommendation is $225,000 less than the fiscal year 2012
enacted level and equal to the budget request. The bill also
continues certain restrictions on reimbursable expenses for use
of the Executive Residence.

White House Repair and Restoration

Appropriations, 2012.................................... $750,000
Budget estimate, 2013................................... 750,000
Committee recommendation................................ 750,000

PROGRAM DESCRIPTION

This account funds 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.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $750,000 for
White House Repair and Restoration, equal to both the budget
request and the fiscal year 2012 enacted level.

Council of Economic Advisers

SALARIES AND EXPENSES

Appropriations, 2012.................................... $4,192,000
Budget estimate, 2013................................... 4,192,000
Committee recommendation................................ 4,192,000

PROGRAM DESCRIPTION

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $4,192,000 for
salaries and expenses of the Council of Economic Advisers. This
amount is equal to both the budget request and the fiscal year
2012 enacted level.

National Security Council and Homeland Security Council

SALARIES AND EXPENSES

Appropriations, 2012.................................... $13,048,000
Budget estimate, 2013................................... 13,048,000
Committee recommendation................................ 13,048,000

PROGRAM DESCRIPTION

The National Security Council advises the President in
integrating domestic, foreign, and military policies related to
national security, and the Homeland Security Council advises
the President in coordinating homeland security-related
policies across the Government.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $13,048,000
for the salaries and expenses of the National Security Council
and the Homeland Security Council. This amount is equal to both
the budget request and the fiscal year 2012 enacted level.

Office of Administration

SALARIES AND EXPENSES

Appropriations, 2012.................................... $112,952,000
Budget estimate, 2013................................... 114,952,000
Committee recommendation................................ 114,952,000

PROGRAM DESCRIPTION

The Office of Administration provides administrative
services to the EOP. These services, defined by Executive Order
12028 of 1977, include financial, personnel, library and
records services, information management systems support, and
general office services.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $114,952,000
for the Office of Administration for fiscal year 2013. This
amount is an increase of $2,000,000 to the fiscal year 2012
enacted level and is equal to the budget request.
The Committee's recommendation includes $10,403,000 to
stabilize and modernize the information technology
infrastructure within the EOP. This funding supports the
continuation of a major initiative that will refresh the aging
information technology infrastructure, strengthen disaster
recovery and information security capabilities, and transition
the EOP's communications architecture to integrate mobile
devices while complying with security and records management
requirements. The Committee is pleased with progress to date on
the initiative and notes that metrics tracking results have
improved dramatically. The Committee supports continued
investment in the initiative to further modernize the IT
infrastructure, accommodate increasing data needs, and prepare
for cybersecurity threats.
The Committee directs the Office of Administration to place
a top priority on the implementation of comprehensive policies
and procedures for the preservation of all records, including
electronic records such as emails, videos, and social
networking communication, consistent with the requirements of
the Presidential Records Act, the Federal Records Act, and
other pertinent laws. The Office of Administration shall work
closely with the National Archives and Records Administration
[NARA] to ensure the full and complete maintenance and
formatting of electronic records that will eventually be turned
over to NARA. The Committee expects the Office of
Administration to keep the Committee fully apprised of funding
needs related to record preservation and retention.

Office of Management and Budget

salaries and expenses

Appropriations, 2012.................................... $89,456,000
Budget estimate, 2013................................... 91,542,000
Committee recommendation................................ 91,542,000

PROGRAM DESCRIPTION

The Office of Management and Budget [OMB] assists the
President in the discharge of his budgetary, management, and
other executive responsibilities.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $91,542,000
for the Office of Management and Budget, which is $2,086,000
above the fiscal year 2012 enacted level and equal to the
budget request.
The Committee reminds OMB of its obligation to keep the
Committee informed on decisions made, including the process for
such decisionmaking, related to resource allocation within
funding provided for programs, projects, and activities. The
Committee directs OMB to follow congressional intent and
consult the Committee immediately if there are barriers to
implementing congressional intent or questions regarding
congressional intent. The Committee notes that the report
accompanying the Energy and Water Development Appropriations
Bill, 2013 (Senate Report 112-164), as reported by the Senate
Committee on Appropriations, requires the Army Corps of
Engineers to provide the Committee within 45 days of enactment
a work plan related to the account titled ``Mississippi River
and Tributaries, Remaining Items, Additional Funding for
Ongoing Work'' delineating how funds provided for the account
are to be distributed. The work plan shall include a listing of
all the studies and construction projects that were considered
eligible and could have used funding for fiscal year 2013 and
the reasons why these items were considered as being less
competitive for inclusion in the work plan. The Committee
directs OMB to facilitate the completion and submission of the
work plan and to ensure that such work plan includes sufficient
detail on resource allocation within the account.
The Committee directs OMB to submit a report within 90 days
of enactment on the feasibility of producing an analysis of
current levels of spending on children and children's programs,
including a detailed breakdown by agency, department, and
initiative.
The Committee notes that OMB maintains the Federal
Government's core budgeting system, which is accessed by over
1,000 users Governmentwide to collect, validate, analyze,
prepare, and publish information related to the Federal budget.
The Committee appreciates OMB's submission of the required
report detailing current capabilities of and deficiencies in
the system. In recent years, OMB has added the capability for
the system to collect, analyze, and share information on
Governmentwide management and budgeting activities. However,
the last major upgrade to the system was completed in 1993. The
Committee notes that, using limited resources, OMB has made
improvements to the system that have enhanced data quality and
implemented efficiencies in the budget process. The Committee
directs OMB to continue making enhancements to the system
within current resources and to notify the Committee of any
cost-effective opportunities that OMB may identify to further
improve the system.
The Committee reminds OMB of its duty to honor the terms
and conditions of appropriations acts by not only reviewing
reprogramming requests submitted to the Committees on
Appropriations pursuant to the reprogramming conditions of this
or any other act, but also by reviewing agency activities for
compliance with reprogramming conditions. With regard to
section 608 of this bill, the Committee finds that reimbursable
agreements and other similar funding mechanisms utilized for
the purpose of reallocating funding shall be considered a
reprogramming of funds under such section. When determining the
applicability of section 608, OMB and the agencies should
consult with the Committees on Appropriations.

Office of National Drug Control Policy

SALARIES AND EXPENSES

Appropriations, 2012.................................... $24,500,000
Budget estimate, 2013................................... 23,413,000
Committee recommendation................................ 24,500,000

PROGRAM DESCRIPTION

The Office of National Drug Control Policy [ONDCP],
established by the Anti-Drug Abuse Act of 1988, and
reauthorized by Public Law 109-469, is charged with developing
policies, objectives, and priorities for the National Drug
Control Program. In addition, ONDCP administers the High
Intensity Drug Trafficking Areas program, the Drug-Free
Communities Support Program, and several other related
initiatives.
This 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.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $24,500,000
for ONDCP's salaries and expenses. This amount is the same as
the fiscal year 2012 enacted level and $1,087,000 above the
budget request. Due to budget constraints, no funding is
provided for policy research.
The Committee appreciates efforts to reduce the often
lengthy clearance process at the Executive Office of the
President [EOP] which delays submission of budgetary
information required by Congress in a timely manner.

FEDERAL DRUG CONTROL PROGRAMS

HIGH INTENSITY DRUG TRAFFICKING AREAS

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2012.................................... $238,522,000
Budget estimate, 2013................................... 200,000,000
Committee recommendation................................ 238,522,000

PROGRAM DESCRIPTION

The High Intensity Drug Trafficking Areas [HIDTA] program
was established by the Anti-Drug Abuse Act of 1988 (Public Law
100-690) and the Office of National Drug Control Policy's
reauthorization (Public Law 109-469) to provide assistance to
Federal, State, and local law enforcement entities operating in
those areas most adversely affected by drug trafficking.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $238,522,000
for the HIDTA program, the same as the fiscal year 2012 level
and $38,522,000 above the budget request. The Committee directs
that funding shall be provided for the existing HIDTAs at no
less than the fiscal year 2012 level.
ONDCP is directed to consult with the HIDTAs in advance of
deciding programmatic spending allocations for discretionary
(supplemental) funding.
The Committee recommendation specifies that up to
$2,700,000 may be used for auditing services and associated
activities.
The Committee directs that HIDTA funds be transferred to
the appropriate drug control agencies expeditiously and
includes provisions in the bill to help prevent delay.
The Committee recognizes the National HIDTA Assistance
Center for providing programmatic support to the HIDTA program
to include training, financial management/audit review, and
other essential services.
HIDTA 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.
ONDCP is directed to withhold all HIDTA funds from a State
until such time as a State or locality has met its financial
obligation.

OTHER FEDERAL DRUG CONTROL PROGRAMS

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2012.................................... $105,550,000
Budget estimate, 2013................................... 118,600,000
Committee recommendation................................ 128,584,000

PROGRAM DESCRIPTION

The Anti-Drug Abuse Act of 1988 (Public Law 100-690), and
the Office of National Drug Control Policy Reauthorization Act
(Public Law 109-469) established this account to be
administered by the Director of the Office of National Drug
Control Policy. The funds appropriated to the program support
high-priority drug control programs and may be transferred to
drug control agencies.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $128,584,000
for Other Federal Drug Control Programs, which is $23,034,000
above the fiscal year 2012 enacted level and $9,984,000 above
the budget request. Within this amount, the Committee provides
the following funding levels:

------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
Youth Drug Prevention Media Program..................... $20,000,000
Drug-Free Communities Support Program................... 95,134,000
National Community Anti-Drug Coalition training..... 2,000,000
Drug court training and technical assistance............ 1,400,000
Anti-doping activities.................................. 9,000,000
World Anti-Doping Agency [WADA]......................... 1,900,000
Activities as authorized by Public Law 109-469, section 1,150,000
1105...................................................
Performance Measures Development........................ ..............
------------------------------------------------------------------------

Youth Drug Prevention Media Program.--This antidrug
messaging program targets teens through online and television
messages as well as engaging youth through community partners.
The Committee is aware of reports that marijuana use has
increased among teens, marking an upward trend over the past 3
years. Past-month use is up 42 percent (about 1.4 million
additional teens), up from 19 percent in 2008 to 27 percent in
2011. Past-year use is up 26 percent (about 1 million
additional teens) up from 31 percent in 2008 to 39 percent in
2011. In addition, the percentage of teens smoking marijuana
heavily (at least 20 times in the past month) grew from 5
percent in 2008 to 9 percent (nearly 800,000 additional teens)
in 2011. The Committee believes that antidrug messaging to
reach this population remains an important goal. The Committee
provides $20,000,000 for the Youth Drug Prevention Media
Program.
Drug-Free Communities Support Program.--ONDCP directs the
Drug-Free Communities Support Program [DFCSP] in partnership
with the Substance Abuse and Mental Health Services
Administration. DFCSP provides dollar-for-dollar matching
grants of up to $125,000 to local coalitions that mobilize
their communities to prevent youth alcohol, tobacco, illicit
drug, and inhalant abuse. Such grants support coalitions of
youth; parents; media; law enforcement; school officials;
faith-based organizations; fraternal organizations; State,
local, and tribal government agencies; healthcare
professionals; and other community representatives. The DFCSP
enables these coalitions to strengthen their coordination and
prevention efforts, encourage citizen participation in
substance abuse reduction efforts, and disseminate information
about effective programs. The Committee provides $95,134,000
for the continuation of the DFCSP.
The Committee includes a provision in the bill directing
ONDCP to provide $2,000,000 of DFCSP funds for training and
related purposes as authorized by section 4 of Public Law 107-
82, as amended by Public Law 109-469.
Antidoping Activities.--Antidoping activities focus on
efforts to educate athletes on the dangers of drug use,
eliminate doping in amateur athletic competitions, and rely on
standards established and recognized by the United States
Olympic Committee. The United States Anti-Doping Agency [USADA]
is the independent antidoping agency for Olympic sports in the
United States, and is responsible for managing the testing and
adjudication process for U.S. Olympic, Pan Am and Paralympic
athletes. As a nonprofit corporation under the leadership of an
independent Board of Directors, USADA has the authority to set
forth guiding principles in antidoping policy and to enforce
any doping violations. The Committee provides $9,000,000 for
antidoping activities.

Unanticipated Needs

Appropriations, 2012.................................... $988,000
Budget estimate, 2013................................... 1,000,000
Committee recommendation................................ 1,000,000

PROGRAM DESCRIPTION

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

COMMITTEE RECOMMENDATION

The Committee recommends $1,000,000, which is $12,000 more
than the amount appropriated in fiscal year 2012 and equal to
the budget request.

Partnership Fund for Program Integrity Innovation

Appropriations, 2012....................................................
Budget estimate, 2013................................... $1,000,000
Committee recommendation................................ 1,000,000

PROGRAM DESCRIPTION

The Partnership Fund for Program Integrity Innovation
(Partnership Fund) was initiated in fiscal year 2010. The
Partnership Fund supports pilot programs designed to reduce
errors and improve efficiency and service of Federal programs
administered by States. The pilot programs focus on
coordinating State-administered Federal programs both within
States and between State and Federal officials and on
technology solutions that may serve as best practices in the
future. The Director of the Office of Management and Budget
[OMB] chairs an interagency council consisting of
representatives of appropriate Federal agencies, States, and
other stakeholders. The council analyzes and selects pilot
programs for funding, develops strategies and goals for the
overall program as well as for each pilot program, and develops
methodologies for assessing the performance of the overall
program and the pilot programs.

COMMITTEE RECOMMENDATION

The Committee recommends $1,000,000 for the administrative
expenses of the Partnership Fund in fiscal year 2013,
consistent with the budget request. In fiscal year 2012, the
Partnership Fund operated using funds provided in prior years
and did not require a new appropriation to continue its
operations. The Committee directs the administration to
continue to leverage program funds provided in fiscal year 2010
to continue the initiative during fiscal year 2013.
The Committee is pleased with the initiative which is
designed to improve the operations of State-administered
Federal programs. Efficiencies can be gained by better
coordinating Federal programs, and technology may play a
significant role in such improvements. The Committee reminds
the interagency council of the semiannual progress reports that
are required to be submitted to the Committees on
Appropriations.
The Committee notes that OMB does not administer or execute
Federal programs. While the Committee expects OMB to continue
to play a coordinating role in designing pilot programs,
developing performance measures, and allocating funds, the
Committee directs that the interagency council be the exclusive
decisionmaking body for such activities. As Chair of the
Interagency Council, the Committee directs the Director of OMB
to seek consensus and input to the maximum extent possible from
council members and participating Federal and State agencies.

Integrated, Efficient and Effective Uses of Information Technology

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2012.................................... $5,000,000
Budget estimate, 2013................................... 5,000,000
Committee recommendation................................ 5,000,000

PROGRAM DESCRIPTION

The goal of the Integrated, Efficient and Effective Uses of
Information Technology [IEEUIT] program is to turn around
poorly performing information technology projects and to
centralize key information technology [IT] services for
Government agencies, saving taxpayer dollars in the future that
would otherwise be spent on inefficient and duplicative IT
services. The EOP began a major IT reform effort in fiscal year
2009 by leveraging existing resources provided for management
improvements and dedicated funding for the effort was first
provided in fiscal year 2012.

COMMITTEE RECOMMENDATION

The Committee recommends $5,000,000 for the IEEUIT, equal
to both the fiscal year 2012 enacted level and the budget
request.
The Committee lauds the administration's comprehensive and
innovative approach to improving IT development processes and
maximizing efficiencies across the Federal IT portfolio. The
Federal Government invests $80,000,000,000 a year in IT
development for a wide variety of capabilities, spanning, for
example, from basic desktop computing to a searchable database
for investigating terrorist financing activity.
Using resources provided for general management
improvements, in 2009 the administration began a major IT
reform effort focused on improving poorly performing IT
projects, consolidating costly data centers, and consolidating
common IT functions across Federal agencies. The administration
estimates that taxpayer savings realized to date under the
current IT reform initiative totals approximately
$7,000,000,000.
The Committee reminds the EOP that the Committee expects to
be regularly apprised of how Governmentwide IT reform efforts
affect agency-specific projects and missions on a case-by-case
basis. The Committee directs that IT reform initiatives shall
not be a substitute for the Committee's routine consideration
of agency needs in accordance with the regular budget process.
Finally, the Committee directs the EOP to notify the Committee
immediately upon any change in an agency spending plan pursuant
to any efforts to modernize, streamline, or improve Federal IT
projects.

Special Assistance to the President

SALARIES AND EXPENSES

Appropriations, 2012.................................... $4,328,000
Budget estimate, 2013................................... 4,328,000
Committee recommendation................................ 4,328,000

PROGRAM DESCRIPTION

This appropriation provides for staff and expenses to
enable the Vice President to provide assistance to the
President in connection with the performance of executive
duties and responsibilities. These funds also support the
official activities of the spouse of the Vice President. The
Vice President also has a staff funded by the Senate to assist
him in the performance of his legislative duties.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $4,328,000 for
special assistance to the President. This amount is the same as
both the budget request and the fiscal year 2012 enacted level.

Official Residence of the Vice President

OPERATING EXPENSES

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2012.................................... $307,000
Budget estimate, 2013................................... 307,000
Committee recommendation................................ 307,000

PROGRAM DESCRIPTION

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $307,000 for
the official residence of the Vice President. This amount is
the same as both the budget request and the fiscal year 2012
enacted level.

Administrative Provisions--Executive Office of the President and Funds
Appropriated to the President

(INCLUDING TRANSFERS OF FUNDS)

Section 201 continues a provision that provides flexibility
in the use of funds in accounts under the EOP.
Section 202 requires a detailed financial plan by the
Director of ONDCP prior to the obligation of funds in fiscal
year 2013.
Section 203 allows for the transfer of up to 2 percent
among programs within ONDCP.
Section 204 establishes reprogramming requirements for
ONDCP.
Section 205 requires a report on appropriations accounts
subject to sequestration pursuant to section 251(a) of the
Balanced Budget and Emergency Deficit Control Act of 1985.
Section 206 requires a report on accounts subject to
sequestration in fiscal year 2013 pursuant to section 251A of
the Balanced Budget and Emergency Deficit Control Act of 1985.

TITLE III

THE JUDICIARY

PROGRAM DESCRIPTION

Established under Article III of the Constitution, the
judicial branch of Government is a separate but equal branch.
The Federal judiciary consists of the Supreme Court, United
States Courts of Appeals, District Courts, Bankruptcy Courts,
Court of International Trade, Court of Federal Claims, and
several other entities and programs. The organization of the
judiciary, the district and circuit boundaries, the places of
holding court, and the number of Federal judges are legislated
by the Congress and signed into law by the President.
The Committee's recommended funding levels support the
Federal judiciary's role of providing equal justice under the
law and include sufficient funds to support this critical
mission. The recommended funding level includes the salaries of
judges and support staff and the operation and security of our
Nation's courts.
The judicial branch is subject to the same funding
constraints facing the executive and legislative branches. It
is imperative that the Federal judiciary devote its resources
primarily to the retention of staff. Further, it is also
important that the judiciary contain controllable costs such as
travel, construction, and other expenses.

Supreme Court of the United States

SALARIES AND EXPENSES

Appropriations, 2012.................................... $74,819,000
Budget estimate, 2013................................... 77,165,000
Committee recommendation................................ 77,165,000

PROGRAM DESCRIPTION

The United States Supreme Court consists of nine justices
appointed under Article III of the Constitution of the United
States, one of whom is appointed as Chief Justice of the United
States. The Supreme Court acts as the final arbiter in the
Federal court system.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $77,165,000
for the Justices, their supporting personnel, and the costs of
operating the Supreme Court, excluding the care of the building
and grounds. The recommendation is $2,346,000 above the fiscal
year 2012 funding level and consistent with the budget request.

CARE OF THE BUILDING AND GROUNDS

Appropriations, 2012.................................... $8,159,000
Budget estimate, 2013................................... 11,963,000
Committee recommendation................................ 11,963,000

PROGRAM DESCRIPTION

Care of the Building and Grounds, for expenditure by the
Architect of the Capitol, provides for the structural and
mechanical care of the United States Supreme Court Building and
Grounds, including maintenance and operation of mechanical,
electrical, and electronic equipment.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $11,963,000
for personnel and other services related to the Supreme Court
building and grounds, which is supervised by the Architect of
the Capitol. The recommendation is $3,804,000 more than the
fiscal year 2012 funding level and the same as the budget
request.
The Court shall continue to provide to the Committee
detailed single-spaced quarterly reports on the Supreme Court
modernization project, including descriptions; timeliness;
milestones; and funding committed, obligated, and expended, as
well as any unobligated balances of each major capital project.
In addition, the report should include the identification,
descriptions, and status of any contract claims.

United States Court of Appeals for the Federal Circuit

salaries and expenses

Appropriations, 2012.................................... $32,511,000
Budget estimate, 2013................................... 34,328,000
Committee recommendation................................ 33,720,000

PROGRAM DESCRIPTION

The United States Court of Appeals for the Federal Circuit
was established on October 1, 1982 under Article III of the
Constitution. The court was formed by the merger of the United
States Court of Customs and Patent Appeals and the appellate
division of the United States Court of Claims. The court
consists of 12 judges who are appointed by the President, with
the advice and consent of the Senate. Judges are appointed to
the court under Article III of the Constitution of the United
States.
The Federal Circuit has nationwide jurisdiction in a
variety of subjects, including international trade, Government
contracts, patents, certain claims for money from the United
States Government, Federal personnel, and veterans' benefits.
Appeals to the court come from all Federal district courts, the
United States Court of Federal Claims, the United States Court
of International Trade, and the United States Court of Veterans
Appeals. The court also takes appeals of certain administrative
agencies' decisions, including the Merit Systems Protection
Board, the Board of Contract Appeals, the Board of Patent
Appeals and Interferences, and the Trademark Trial and Appeals
Board. Decisions of the United States International Trade
Commission, the Office of Compliance of the United States
Congress, and the Government Accountability Office Personnel
Appeals Board are also reviewable by the court.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $33,720,000.
The recommendation is $1,209,000 above the fiscal year 2012
funding level and $608,000 below the budget request. The
Committee believes that in this fiscal climate, lower-priority
activities cannot continue to be funded at the same levels.
Consequently, funding has been reduced for cyclical maintenance
and tenant alterations, consistent with the funding requests
for other courts.

United States Court of International Trade

salaries and expenses

Appropriations, 2012.................................... $21,447,000
Budget estimate, 2013................................... 22,880,000
Committee recommendation................................ 22,880,000

PROGRAM DESCRIPTION

The United States Court of International Trade, located in
New York City, consists of nine Article III judges. The court
has exclusive nationwide jurisdiction over civil actions
brought against the United States, its agencies and officers,
and certain civil actions brought by the United States, arising
out of import transactions and the administration and
enforcement of the Federal customs and international trade
laws.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $22,880,000.
The recommendation is $1,433,000 above the fiscal year 2012
funding level and the same as the budget request.

Courts of Appeals, District Courts, and Other Judicial Services

SALARIES AND EXPENSES

Appropriations, 2012.................................... $5,015,000,000
Budget estimate, 2013................................... 5,148,799,000
Committee recommendation................................ 5,142,005,000

PROGRAM DESCRIPTION

Salaries and Expenses is one of four accounts that provide
total funding for the Courts of Appeals, District Courts, and
Other Judicial Services. In addition to funding the salaries of
judges and support staff, this account also funds the operating
costs of appellate, district, and bankruptcy courts, the Court
of Federal Claims, and probation and pretrial services offices.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $5,142,005,000
for salaries and expenses. The recommendation is $127,005,000
above the fiscal year 2012 funding level and $6,794,000 below
the budget request.
Perimeter Security Pilot Project.--The Committee is aware
that the judiciary is undertaking a review of court security
officer staffing standards and upon completion encourages the
judiciary to consider opportunities to expand the perimeter
security pilot project at additional primary courthouses on a
cost-neutral basis.

VACCINE INJURY COMPENSATION TRUST FUND

Appropriations, 2012.................................... $5,000,000
Budget estimate, 2013................................... 5,354,000
Committee recommendation................................ 5,354,000

PROGRAM DESCRIPTION

Enacted by the National Childhood Vaccine Injury Act of
1986 (Public Law 99-660), the Vaccine Injury Compensation
Program is a Federal no-fault program designed to resolve a
perceived crisis in vaccine tort liability claims that
threatened the continued availability of childhood vaccines
nationwide. The statute's primary intention is the creation of
a more efficient adjudicatory mechanism that ensures a no-fault
compensation result for those allegedly injured or killed by
certain covered vaccines. This program protects the
availability of vaccines in the United States by diverting a
substantial number of claims from the tort arena.
Not only did this act create a special fund to pay
judgments awarded under the act, but it also created the Office
of Special Masters within the United States Court of Federal
Claims to hear vaccine injury cases. The act stipulates that up
to eight special masters may be appointed for this purpose. The
special masters expenditures are reimbursed to the judiciary
for vaccine injury cases from a special fund set up under the
Vaccine Act.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $5,354,000.
The recommendation is $354,000 above fiscal year 2012 funding
level and the same as the budget request.

DEFENDER SERVICES

Appropriations, 2012.................................... $1,031,000,000
Budget estimate, 2013................................... 1,063,517,000
Committee recommendation................................ 1,048,517,000

PROGRAM DESCRIPTION

The Defender Services program ensures the right to counsel
guaranteed by the Sixth Amendment, the Criminal Justice Act (18
U.S.C. 3006A(e)) and other congressional mandates for those who
cannot afford to retain counsel and other necessary defense
services. The Criminal Justice Act provides that courts appoint
counsel from Federal public and community defender
organizations or from a panel of private attorneys established
by the court. The Defender Services program helps to maintain
public confidence in the Nation's commitment to equal justice
under the law and ensures the successful operation of the
constitutionally based adversary system of justice by which
Federal criminal laws and federally guaranteed rights are
enforced.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of
$1,048,517,000. The recommendation is $17,517,000 above the
fiscal year 2012 funding level and $15,000,000 below the budget
request. The Committee believes that funding for fiscal year
2013 Federal Defender Office [FDO] staffing in the request is
overstated by $8,000,000 because of delays in hiring in fiscal
year 2012. In addition, the Committee further reduces FDO
funding by $13,000,000 because, unlike the courts, the FDOs
have not performed sufficient cost containment. Last, based on
fiscal year 2012 estimates, the Committee increases funding for
panel attorney payments by $6,000,000.

FEES OF JURORS AND COMMISSIONERS

Appropriations, 2012.................................... $51,908,000
Budget estimate, 2013................................... 54,635,000
Committee recommendation................................ 54,635,000

PROGRAM DESCRIPTION

This account provides for the statutory fees and allowances
of grand and petit jurors and for the compensation of jury and
land commissioners. Budgetary requirements depend primarily
upon the volume and the length of jury trials demanded by
parties to both civil and criminal actions and the number of
grand juries being convened by the courts at the request of the
United States Attorneys.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $54,635,000.
The recommendation is $2,727,000 above the fiscal year 2012
funding level and the same as the budget request.

COURT SECURITY

(INCLUDING TRANSFERS OF FUNDS)

Appropriations, 2012.................................... $500,000,000
Budget estimate, 2013................................... 514,673,000
Committee recommendation................................ 512,673,000

PROGRAM DESCRIPTION

The Court Security appropriation was established in 1983
and funds the necessary expenses incident to the provision of
protective guard services, and the procurement, installation,
and maintenance of security systems and equipment for United
States courthouses and other facilities housing Federal court
operations, including building access control, inspection of
mail and packages, directed security patrols, perimeter
security provided by the Federal Protective Service, and other
similar activities as authorized by section 1010 of the
Judicial Improvement and Access to Justice Act (Public Law 100-
702).

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $512,673,000.
The recommendation is $12,673,000 above the fiscal year 2012
funding level and $2,000,000 below the budget request.

Administrative Office of the United States Courts

SALARIES AND EXPENSES

Appropriations, 2012.................................... $82,909,000
Budget estimate, 2013................................... 85,148,000
Committee recommendation................................ 85,148,000

PROGRAM DESCRIPTION

The Administrative Office [AO] of the United States Courts
was created in 1939 by an act of Congress. It serves the
Federal judiciary in carrying out its constitutional mission to
provide equal justice under the law. Beyond providing numerous
services to the Federal courts, the AO provides support and
staff counsel to the Judicial Conference of the United States
and its committees, and implements Judicial Conference policies
as well as applicable Federal statutes and regulations. The AO
is the focal point for communication and coordination within
the Federal judiciary and with Congress, the executive branch,
and the public on behalf of the judiciary.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $85,148,000.
This recommendation is $2,239,000 above the fiscal year 2012
funding level and the same as the budget request.

Federal Judicial Center

SALARIES AND EXPENSES

Appropriations, 2012.................................... $27,000,000
Budget estimate, 2013................................... 27,729,000
Committee recommendation................................ 27,519,000

PROGRAM DESCRIPTION

The Federal Judicial Center, located in Washington, DC,
improves the management of Federal judicial dockets and court
administration through education for judges and staff, and
research, evaluation, and planning assistance for the courts
and the Judicial Conference. The Center's responsibilities
include educating judges and other judicial branch personnel
about legal developments and efficient litigation management
and court administration. Additionally, the Center also
analyzes the efficacy of case and court management procedures
and ensures the Federal judiciary is aware of the methods of
best practice.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $27,519,000.
The recommendation is $519,000 above the fiscal year 2012
funding level and $210,000 below the budget request.

Judicial Retirement Funds

PAYMENT TO JUDICIARY TRUST FUNDS

Appropriations, 2012.................................... $103,768,000
Budget estimate, 2013................................... 125,464,294
Committee recommendation................................ 125,464,294

PROGRAM DESCRIPTION

The funds in this account cover the estimated future
benefit payments to be made to retired bankruptcy judges and
magistrate judges, claims court judges, and spouses and
dependent children of deceased judicial officers.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $125,464,000
for payments to the Judicial Officers' Retirement Fund and the
Claims Court Judges Retirement Fund. The recommendation is
$21,696,294 above the fiscal year 2012 funding level and
consistent with the budget request.

United States Sentencing Commission

SALARIES AND EXPENSES

Appropriations, 2012.................................... $16,500,000
Budget estimate, 2013................................... 17,061,000
Committee recommendation................................ 17,061,000

PROGRAM DESCRIPTION

The United States Sentencing Commission establishes,
reviews, and revises sentencing guidelines, policies, and
practices for the Federal criminal justice system. The
Commission is also required to monitor the operation of the
guidelines and to identify and report necessary changes to the
Congress.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $17,061,000.
The recommendation is $561,000 above the fiscal year 2012
funding level and the same as the budget request.

Administrative Provisions--The Judiciary

(INCLUDING TRANSFERS OF FUNDS)

The Committee recommends the following administrative
provisions for the judiciary:
Section 301 allows the judiciary to expend funds for the
employment of experts and consultative services.
Section 302 allows the judiciary, subject to the
Committee's reprogramming procedures, to transfer up to 5
percent between appropriations, but limits to 10 percent the
amount that may be transferred into any one appropriation.
Section 303 limits official reception and representation
expenses incurred by the Judicial Conference of the United
States to no more than $11,000.
Section 304 grants the judicial branch the same tenant
alteration authorities as the executive branch.
Section 305 provides continued authority for a court
security pilot program.
Section 306 extends for various short-term durations the
authorization of a temporary judgeship in Kansas, Hawaii,
Arizona, Florida, New Mexico, California, and Missouri.
Section 307 authorizes additional district judgeships in
California, Texas, Minnesota, and Arizona, where caseloads have
reached unsustainable levels and converts a temporary judgeship
to permanent status in California and in Arizona.

TITLE IV

DISTRICT OF COLUMBIA

Federal Payments

FEDERAL FUNDS

A total of $676,152,000 in Federal funds are estimated to
be available to the District of Columbia government, the
District of Columbia Courts, the District of Columbia Court
Services and Offender Supervision Agency, and other D.C.
entities. This is $10,512,000 above the fiscal year 2012
enacted level and $1,671,000 below the budget request.

FEDERAL PAYMENT FOR RESIDENT TUITION SUPPORT

Appropriations, 2012.................................... $30,000,000
Budget estimate, 2013................................... 35,100,000
Committee recommendation................................ 35,100,000

PROGRAM DESCRIPTION

The Resident Tuition Support program was created by the
District of Columbia College Access Act of 1999 (Public Law
106-98), expanded through the District of Columbia College
Access Improvement Act of 2002 (Public Law 107-157), and
amended and reauthorized through Public Law 110-97. This
program provides eligible college-bound District residents the
opportunity to expand their higher education choices.
Under the program, financial assistance is available to
qualified District residents who attend public colleges outside
of the District of Columbia, private postsecondary institutions
in the District of Columbia, Maryland, or Virginia, or any
historically black college or university. The private-school
tuition grants are restricted to nonprofit institutions.
Students who attend public schools receive assistance equal to
the difference between the tuition paid by residents of the
State in which the institution is located and the tuition
charged to nonresident students, with an annual limit of
$10,000 and a lifetime limit of $50,000. Private-school
students receive a $2,500 maximum annual grant, with a lifetime
limit of $12,500.
Since its inception over a decade ago, the program has
disbursed more than $307,000,000 as of February 2012 for the
benefit of more than 18,663 District of Columbia residents,
with grants averaging $6,339 per year. For the most recently
completed academic year (2010-2011), 5,103 students received
$32,300,000 in grants. Sixty percent of the program grantees
are the first in their families to attend college. Program
participants have enrolled in more than 600 colleges and
universities in 48 States. This has brought an infusion of the
District's students as well as Federal dollars to State
university systems nationwide.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment of $35,100,000
for the resident tuition support program, $5,100,000 above the
fiscal year 2012 enacted level and the same as the budget
request.
The Committee urges the Office of the State Superintendent
of Education to continue its efforts to improve the student
retention, persistence, and college graduation rate of program
participants. The Committee acknowledges the challenges facing
the students who do enroll in college to reach graduation. Data
reveal that among program grantees, many students interrupt
their enrollment or drop out entirely on their path to a
degree, and 48 percent graduate from college in 6 years.
The Committee is encouraged by the array of initiatives
that the State Superintendent has launched or is contemplating
in the immediate future that are designed to enhance college
retention and success. These programs include financial aid
forums, guidance counselor certification, boot camps and summer
institute programs, high achievers program, a retention mentor
program, and a smart college choice campaign to guide students
in selection of colleges and universities particularly suited
to their academic and financial needs.
The Committee directs that the State Superintendent shall
include, as a component of the fiscal year 2014 budget
justification submission, an annual update of its efforts,
including research findings, to enhance the retention,
persistence, and graduation rates, including early awareness
and readiness initiatives to promote academic college
preparation, guidance, and other support mechanisms and
partnerships.

FEDERAL PAYMENT FOR EMERGENCY PLANNING AND SECURITY COSTS IN THE
DISTRICT OF COLUMBIA

Appropriations, 2012.................................... $14,900,000
Budget estimate, 2013................................... 24,700,000
Committee recommendation................................ 24,700,000

PROGRAM DESCRIPTION

Due to the fact that the District of Columbia is the seat
of the Federal Government and headquarters of many
international organizations, District police, fire, and
emergency personnel have had to provide security for a number
of events. As the need for the District of Columbia to provide
security increases, overtime costs for personnel escalate and
divert local police from neighborhood patrols. The complexity
and costs associated with these events, including unique needs
for crowd control, surveillance, and protection against unusual
threats, are high and growing, and demand effective and
efficient coordinated operations.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment of $24,700,000,
for the District of Columbia for the costs of providing public
safety at events related to the presence of the national
capital in the District of Columbia, for the costs of providing
support requested by the United States Secret Service Division
in carrying out their protective duties under the direction of
the Secretary of Homeland Security, and for the costs of
providing support to respond to immediate and specific
terrorist threats or attacks in the District of Columbia or
surrounding jurisdictions. This is $9,800,000 above the fiscal
year 2012 enacted level and the same as the budget request.
Of the total funding recommended, the Committee expects
that $14,900,000 will be designated for meeting the regular,
expected annual emergency planning and security costs. The
Committee directs that the additional amount of $9,800,000 be
devoted to up-front planning activities leading up to and
associated with the 57th Presidential Inauguration. These funds
are separate and independent of any post-Inaugural
reimbursement.
In addition, the District may use any funds remaining from
prior year appropriations under this heading. The District may
use the payment to cover the costs of Executive transportation
support including motorcades and helicopter landings. The
Committee directs the District of Columbia to submit a detailed
budget justification with its funding request for fiscal year
2014. The Committee further directs the District of Columbia to
submit, within 60 days of the end of fiscal year 2013, a report
to the House and the Senate Committees on Appropriations
detailing the purposes and amounts expended using the funds,
particularly noting any deviation from the original proposed
spending.

FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA COURTS

Appropriations, 2012.................................... $232,841,000
Budget estimate, 2013................................... 219,651,000
Committee recommendation................................ 225,370,000

PROGRAM DESCRIPTION

Under the National Capital Revitalization and Self-
Government Improvement Act of 1997 (Public Law 105-33, title
XI), the Federal Government is required to finance the District
of Columbia Courts. This Federal payment to the District of
Columbia Courts funds the operations of the District of
Columbia Court of Appeals, Superior Court, the Court System,
and the Capital Improvement Program. Capital improvement
projects include implementation of the updated Facilities
Master Plan, with particular focus on expansion of the Moultrie
Courthouse to address space shortfalls. By law, the annual
budget includes estimates of the expenditures for the
operations of the Courts prepared by the Joint Committee on
Judicial Administration as well as the President's
recommendation for funding the Courts' operations.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment to the District
of Columbia Courts of $225,370,000, which is $7,471,000 below
the fiscal year 2012 enacted level and $5,719,000 above the
President's budget request. This amount includes $13,118,000
for the Court of Appeals, $111,746,000 for the Superior Court,
$66,756,000 for the Court System, and $33,750,000 for capital
improvements to courthouse facilities.
The Committee recommendation for the District of Columbia
Court System is $719,000 above the President's recommended
funding of $66,037,000 and will permit the Court System to
support strategic transformation of human resources management
to an integral partnership within the administration of the
courts, address the maintenance and utility costs attendant to
occupying the newly renovated Building C, and provide minimum
baseline security improvements, including dedicated staffing
and access control equipment.
The Committee recommendation for capital improvements
provides $5,000,000 above the President's recommendation of
$28,750,000 to support the Facilities Master Plan, particularly
the Moultrie Courthouse Addition (C Street Expansion). The
Committee acknowledges that steady progress on the Facilities
Master Plan should provide a cost-effective path to address
deficiencies in the Courts' space needs.
The Committee supports the Courts' request to maintain the
current level of funds available for its official reception and
representation purposes. These resources enable the Courts to
meet various community outreach responsibilities including
supporting legal education in the District of Columbia as the
home of six law schools; work with the D.C. Bar committees; and
host the significant number of international guests who visit
the D.C. Courts to learn about legal systems in democratic
societies. The Committee acknowledges that the current amount
of the Courts' reception and representation funds is
commensurate with small Federal agencies and considerably less
than the comparative representation funds available to other
District officials.

FEDERAL PAYMENT FOR DEFENDER SERVICES IN DISTRICT OF COLUMBIA COURTS

Appropriations, 2012.................................... $55,000,000
Budget estimate, 2013................................... 49,890,000
Committee recommendation................................ 50,000,000

PROGRAM DESCRIPTION

The District of Columbia Courts appoint and compensate
attorneys to represent persons who are financially unable to
obtain such representation. The Defender Services programs
provide counsel for indigent persons who are charged with
criminal offenses, for family proceedings involving child
abuse, neglect, and termination of parental rights, and for
guardianship proceedings for protection of mentally
incapacitated individuals and minors whose parents are
deceased.
In addition to legal representation, these programs provide
indigent persons with services such as transcripts of court
proceedings, expert witness testimony, foreign and sign
language interpretation, and investigations and genetic
testing.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment of $50,000,000
for Defender Services in the District of Columbia Courts. This
is $5,000,000 below the fiscal year 2012 enacted level and
$110,000 above the budget request.
The reduction in the budgetary needs for this program is
attributable to the laudable savings realized from use of a new
accounting methodology and enhanced technology that provide
more precise tools to account for and project costs. The
Committee commends the vast improvements in business processes
and management that have reduced the timespan from initial
appointment of counsel to payment for services to 3 years, down
from 7 years.

FEDERAL PAYMENT TO THE COURT SERVICES AND OFFENDER SUPERVISION AGENCY
FOR THE DISTRICT OF COLUMBIA

Appropriations, 2012.................................... $212,983,000
Budget estimate, 2013................................... 215,506,000
Committee recommendation................................ 215,506,000

PROGRAM DESCRIPTION

The Court Services and Offender Supervision Agency [CSOSA]
for the District of Columbia is an independent Federal agency
created by the National Capital Revitalization and Self-
Government Improvement Act of 1997 (Public Law 105-33, title
XI). CSOSA acquired the operational responsibilities for the
former District agencies in charge of probation and parole, and
houses the Pretrial Services Agency within its framework. The
mission of CSOSA is to increase public safety, prevent crime,
reduce recidivism, and support the fair administration of
justice in close collaboration with the community. The CSOSA
appropriation supports the Community Supervision Program which
monitors or supervises approximately 16,000 offenders on a
daily basis and 25,000 different offenders over the course of a
year and the Pretrial Services Agency [PSA] which monitors
approximately 7,000 defendants at any given time and supervised
26,752 unique placements, of which 4,454 were treatment
placements, during fiscal year 2011.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment of $215,506,000,
which is $2,523,000 above the fiscal year 2012 enacted level
and the same as the budget request. Of this amount, $58,911,000
is designated for the Pretrial Services Agency and $156,595,000
is designated for the Community Supervision Program.
The Committee is supportive of CSOSA's efforts to
successfully reintegrate ex-offenders to their communities and
notes the centrality of job training and employment readiness
in reducing recidivism. CSOSA is encouraged to work with
organizations that have demonstrated effectiveness and best
practices to improve the outcomes for men and women returning
home from prison and under court supervision.
For a number of years, CSOSA has worked with grassroots,
nonprofit providers of transitional housing, including faith-
based organizations, that offer counseling, mentoring, and life
skills training to men and women returning home from prison.
The Committee notes that this is a model program for the
Nation.
The Committee is encouraged that the Community Supervision
Program has successfully lowered its caseloads to nationally
recommended levels, a significant improvement over the 100:1
average ratios prior to the Agency's inception.
The Committee appreciates the efforts of CSOSA management
to identify savings and other efficiencies through targeted
cutbacks, streamlining of programs, and strategic
reorganization as the agency fulfills its critical mission and
addresses high priority public safety needs amid Governmentwide
fiscal constraints.
The Committee commends the collaborative efforts of the
Community Supervision Program to continue to partner with the
District of Columbia Government, the United States Parole
Commission, and the Bureau of Prisons to implement the Secure
Residential Treatment Program pilot. This program aims to
provide a secure, residential substance abuse treatment
intervention/sanction alternative to high-risk, chronic
substance abusing and criminally involved male D.C. code
offenders in lieu of revoking them to Bureau of Prisons
custody. The Committee encourages CSOSA to keep the Committee
regularly informed of how well this program is meeting its
goals of increasing offenders' chances of successful community
reintegration and breaking the cycle of recidivism.

FEDERAL PAYMENT TO THE PUBLIC DEFENDER SERVICE FOR THE DISTRICT OF
COLUMBIA

Appropriations, 2012.................................... $37,241,000
Budget estimate, 2013................................... 39,376,000
Committee recommendation................................ 39,376,000

PROGRAM DESCRIPTION

The Public Defender Service [PDS] for the District of
Columbia, an independent organization established by a District
of Columbia statute (16 D.C. Code 2-1601-1608), has a distinct
mission to provide and promote quality legal representation
services within the District of Columbia justice system. PDS
provides legal representation to indigent adults and children
facing loss of liberty and provides support in the form of
training, consultation, and legal reference services to members
of the local bar appointed as counsel in criminal, juvenile,
and mental health cases involving indigent individuals.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment to the Public
Defender Service for the District of Columbia of $39,376,000,
which is $2,135,000 above the fiscal year 2012 enacted level
and the same as the budget request.
The Committee provides authority in section 814 of the bill
for the PDS to obtain professional liability insurance for its
attorneys, staff, and board members. The Committee understands
that the cost for such coverage can be met within the funding
provided.

FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA WATER AND SEWER AUTHORITY

Appropriations, 2012.................................... $15,000,000
Budget estimate, 2013................................... 11,500,000
Committee recommendation................................ 15,000,000

PROGRAM DESCRIPTION

Approximately one-third of the District is served by a
combined sewer system, constructed by the Federal Government in
1890, in which both sanitary waste and storm water flow through
the same pipes. When the collection system or the Blue Plains
treatment plant reach capacity, typically during periods of
heavy rainfall, the system is designed to overflow the excess
water. This mixture of sewage and storm water runoff is
discharged to the Anacostia and Potomac Rivers, Rock Creek, and
tributary waters between 60 and 75 times each year. Under a
judicial consent decree entered on March 23, 2005, the Water
and Sewer Authority is undertaking a 20-year, $2,600,000,000
sewer construction program to reduce combined sewer overflows
[CSO]. The Clean Rivers Project includes deep underground
storage tunnels, side tunnels to reduce flooding, pump station
rehabilitation, and the elimination of over a dozen CSO
outfalls along the Potomac and Anacostia Rivers and Rock Creek.
When completed in 2025, this project is expected to vastly
improve water quality and significantly reduce debris in our
Nation's capital waterways as well as improve the health of the
Chesapeake Bay.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment of $15,000,000
to be matched by at least $15,000,000 provided by the Water and
Sewer Authority, to continue implementation of the Long-Term
Combined Sewer Overflow Control Plan. This is the same as the
fiscal year 2012 enacted level and $3,500,000 above the budget
request. The Committee understands that the Clean Rivers
project is currently exploring a more expansive investment in
green infrastructure through a full-scale demonstration pilot
program with low impact development technologies. The Committee
is encouraged by the potential benefits not only for stormwater
management, but for job creation, improved air quality, greener
public and private spaces, and added wildlife habitat.

FEDERAL PAYMENT TO THE CRIMINAL JUSTICE COORDINATING COUNCIL

Appropriations, 2012.................................... $1,800,000
Budget estimate, 2013................................... 1,800,000
Committee recommendation................................ 1,800,000

PROGRAM DESCRIPTION

The Criminal Justice Coordinating Council for the District
of Columbia [CJCC] is the primary forum in which District of
Columbia criminal justice agencies can identify and address
interagency coordination issues. Its mission is to address
coordination difficulties among District of Columbia criminal
justice agencies and address criminal justice issues, such as
illegal drugs, juvenile justice, halfway houses, information
technology, and identification of arrestees.
The CJCC was originally established pursuant to a
memorandum of agreement in May 1998 and operates as an
independent working group to foster cooperation among the more
than a dozen Federal and local governmental agencies which have
law enforcement responsibility in our Nation's capital. As part
of a local enactment in August 2001, the CJCC was established
as an independent agency within the District of Columbia.
The CJCC maintains the Justice Integrated Information
System [JUSTIS] using technology that allows for the seamless
sharing of information at critical decision points throughout
the justice system. JUSTIS connects Federal agencies, the
District government, and court information systems, so that
criminal activity can be easily monitored across an array of
participating agencies. Agencies currently using JUSTIS include
the Metropolitan Police Department, the D.C. Department of
Corrections, D.C. Superior Court, the U.S. Park Police, the
U.S. Capitol Police, the U.S. Bureau of Alcohol, Tobacco,
Firearms, and Explosives, the Pretrial Services Agency, CSOSA,
the U.S. Attorney's Office for the District of Columbia, and
the D.C. and Maryland Public Defenders Service. No other system
provides this range of access to Federal and local information
in the District.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment of $1,800,000 to
CJCC. This is the same as the fiscal year 2012 enacted level
and the budget request.
Among the array of activities that the recommended Federal
payment will support during fiscal year 2013 is enhancing the
JUSTIS information system's capabilities to promote sharing of
public safety information and more effective mobilization in
response to matters transcending a single agency. The Committee
expects that the resources will also support the GunStat
initiative; improved sharing of information on mental health
and substance abuse to redirect persons to necessary support
services; records management, court-based release, court
processing and papering reforms; clear business processes to
help reduce the number of outstanding warrants; and a
comprehensive approach to truancy prevention.
The Committee directs the CJCC to submit annual performance
measures in an annual report to accompany the fiscal year 2014
budget justification, which should also describe progress made
on individual CJCC initiatives.

FEDERAL PAYMENT FOR JUDICIAL COMMISSIONS

Appropriations, 2012.................................... $500,000
Budget estimate, 2013................................... 500,000
Committee recommendation................................ 500,000

PROGRAM DESCRIPTION

The Commission on Judicial Disabilities and Tenure provides
support to the District of Columbia Court of Appeals and
Superior Court through reviewing and investigating allegations
of judicial misconduct. The Judicial Nomination Commission
recommends candidates to the President of the United States for
nomination to judicial vacancies in these courts. In accordance
with the National Capital Revitalization and Self-Government
Improvement Act of 1997 (Public Law 105-33), the Federal
Government is responsible for financing of the District of
Columbia Courts, including the operations of the District of
Columbia Court of Appeals, Superior Court, the Court System,
and the Capital Improvement Program. Although independent of
the Courts by design, these two Commissions provide important
functions within the judicial branch of local government in the
District of Columbia.

COMMITTEE RECOMMENDATION

The Committee provides $500,000 as a Federal payment for
the judicial commissions, of which $205,000 is designated for
the Judicial Nomination Commission and $295,000 is designated
for the Commission on Judicial Disabilities and Tenure. This
amount is the same as the fiscal year 2012 enacted level and
the budget request. The Committee continues to support the
rationale of recognizing these commissions as local judicial
branch agencies for which Federal support for the operations is
necessary.

FEDERAL PAYMENT FOR SCHOOL IMPROVEMENT

Appropriations, 2012.................................... $60,000,000
Budget estimate, 2013................................... 60,000,000
Committee recommendation................................ 53,500,000

PROGRAM DESCRIPTION

The Committee continues its commitment to improving
educational opportunities for the children of the District of
Columbia. For the past 8 fiscal years, Congress has supported a
three-sector funding arrangement to provide Federal resources
for the District of Columbia Public Schools, public charter
schools, and for a scholarship program for low-income students
to attend private schools.
For the last 5 years the District has charted a new
management course for the District's troubled public school
system in response to Public Law 110-33, which vested authority
over the school superintendent, operating budget, and capital
program in the Mayor beginning in 2007. The Committee
acknowledges the daunting challenges this undertaking presents,
given that District of Columbia public school students have
chronically performed well below national averages in reading
and mathematics. The Committee commends the progress that has
been made to streamline bureaucracy, recruit new principals,
expand course offerings available to students, expand pre-K
classrooms, complete major renovations, and raise math and
reading test scores. For the ensuing 2012-2013 school year,
enrollment of 54,982 students is projected.
Public charter schools in the District of Columbia have
grown considerably since the first two opened in 1996 and
served 160 students. In school year 2011-2012, 52 tuition-free,
autonomous public charter schools on 93 campuses operated in
the District, enrolling 31,768 students in every ward of the
city, and serving nearly 40 percent of all District of Columbia
public school students. The District of Columbia School Reform
Act of 1995 (Public Law 104-134), one of the strongest charter
school laws in the Nation, guarantees charter school autonomy
from the District of Columbia Public Schools and from the
District government and mandates uniform per student funding of
all public school students, both traditional and charter.
Congress established the private school scholarship
(voucher) program as a 5-year pilot in 2003. In April 2011, the
Opportunity Scholarship Program was reauthorized for 5 years
through enactment of Public Law 112-10, division C. The intent
of this program is to help increase the District of Columbia's
capacity to provide parents, particularly low-income parents
whose children attend low-performing schools, more options for
quality education. In school year 2010-2011, 1,615 students
participated in the program and were enrolled at nonpublic
schools. This represented an increase of 58 percent above the
1,017 students enrolled in the 2010-2011 school year.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment of $53,500,000,
which is $6,500,000 below the fiscal year 2012 enacted level
and $6,500,000 below the budget request. These funds are
allocated as follows: $20,000,000 for the District of Columbia
Public Schools to improve public school education, $20,000,000
to expand quality charter schools and $13,500,000 for the
Secretary of Education for private school scholarships under
Public Law 112-10, division C.
The Committee does not adopt the request to provide no
funding for the Opportunity Scholarship Program in fiscal year
2013 or to limit the enrollment to the school year 2011-2012
level. Instead, the Committee recommends a payment of
$13,500,000, reflecting expected resource needs for the next
two school years, based on historic attrition and enrollment
rates and anticipated increases in program participation by new
students, measured in tandem with the funds on hand.
The Committee believes it is essential to consider
projected resource needs in light of the fact that there is
$34,233,406 currently available to the program, without
additional funding. These funds consist of $12,688,000 in
grantee carryover funds; $1,545,000 in Department of Education
carryover funds for evaluation; and $20,000,000 in appropriated
funds provided in Public Law 112-74.
For school year 2012-2013, the recommended funding will
support approximately 2,225 total students, calculated at the
maximum inflation-adjusted scholarship rate, plus the annual
expenses for administration and program assessment and
evaluation. This would represent a potential net increase of
610 students or 38 percent more scholarship participants than
the 1,615 students in school year 2011-2012.
The Committee notes that the available unobligated balances
are, in part, the result of a prior suspension of the program
and a desire to ensure that students already enrolled in the
program have the ability to continue through graduation.
Congress expressed its intent to continue this program through
continuous funding and a 5-year reauthorization in 2011. The
Committee expects that any funding appropriated for the
Opportunity Scholarship Program, including currently available
balances, will be used to continue the program and admit new
students.
The Committee directs the Secretary of Education to
develop, as necessary, appropriate cost containment protocols,
consistent with Public Law 112-10, division C, to address
potential enrollment oversubscription issues posed by retention
of students newly entering the program and extension to new
enrollments in future school years to ensure that any expansion
of the program is undertaken in conformity with the authorized
funding level.
Public Schools.--The Committee directs the District of
Columbia Public Schools to submit a detailed spending plan
outlining specific activities no later than 60 days after
enactment of this act. The Committee expects that this spending
plan should contain a particular emphasis on initiatives to
improve the recruitment and retention of a high-quality teacher
and principal workforce in District public schools.
The District has 11,000 special needs students for whom the
District must provide or secure educational services. The
Committee expects the District to continue to make substantial
progress in achieving compliance with the 2006 Federal court-
ordered consent decree, eliminating inadequacies in treatment
and support for special needs students, and establishing more
inclusive learning environments for these students within the
District of Columbia Public Schools system.
Public Charter Schools.--With respect to the recommended
Federal payment for fiscal year 2013 for public charter
schools, the Committee directs the District of Columbia Public
Charter School Board to submit to Congress, through the Office
of the State Superintendent of Education [OSSE], a detailed
spending plan outlining specific activities no later than 60
days after enactment of this act. This spending plan should
particularly emphasize enhancing the academic quality of
existing charter schools, expanding the capacity of high-
performing charter schools, and executing a robust performance
management system to help identify low-performing schools and
close them. The Committee expects that funding provided for
charter schools will be used in accordance with the plan
submitted.
Over the years, public charter schools have moved into and
revitalized former DCPS school buildings that otherwise would
have been developed into condominiums or used for other
commercial purposes. These buildings, including several
historic structures, often long-abandoned and severely
blighting neighborhoods, have been converted to public charter
schools.
The Committee directs the Mayor of the District of Columbia
to submit to the Committees on Appropriations, as part of the
fiscal year 2014 Federal payment budget justification
materials, a detailed fiscal year 2014-2018 public education
facilities plan that will ensure public charter school access
to surplus or underutilized DCPS space.
The Committee reminds the government of the District of
Columbia that students in public charter schools are to have
access to the same publicly funded services that are offered to
students in traditional public schools. These include school
nurses, School Resource Officers, crossing guards, and mental
health and other wrap-around services.
Private School Scholarships.--The Committee expects that
any school enrolling a scholarship participant under the
Opportunity Scholarship Program should satisfy certain minimum
reasonable expectations as an educational setting in full
compliance with the statutory requirements of section
3007(a)(4) of Public Law 112-10, division C relating to valid
certificates of occupancy, school accreditation, site
inspections, financial stability, fiscal management controls,
and teacher qualifications.
The Committee directs the Secretary of Education to work
with the Office of Management and Budget to develop and
implement suitable administrative control mechanisms to promote
greater oversight of the program.

FEDERAL PAYMENT FOR THE D.C. NATIONAL GUARD

Appropriations, 2012.................................... $375,000
Budget estimate, 2013................................... 500,000
Committee recommendation................................ 500,000

PROGRAM DESCRIPTION

The D.C. National Guard is a Federal, rather than a local,
entity and responds to orders of the President of the United
States who is the Commander-in-Chief of the D.C. National Guard
pursuant to law (District of Columbia Official Code Sec. 49-409
and Executive Order No. 11485 (October 1, 1969)). Unlike a
Governor of a State, the Mayor is not authorized to deploy the
National Guard under any circumstances. The District of
Columbia National Guard is specifically trained to support law
enforcement during critical missions, such as demonstrations,
Presidential inaugurations and funerals, and emergency services
for weather-related contingencies. The D.C. Air Guard patrols
the skies over the District on round-the-clock alert. However,
residency restrictions preclude a significant number of Guard
members from eligibility for tuition assistance programs, which
has severely hampered recruitment and retention efforts.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment of $500,000 for
the D.C. National Guard designated for the Major General David
F. Wherley, Jr. District of Columbia National Guard Retention
and College Access Program, a tuition assistance program for
nonresident District of Columbia National Guard members. This
amount is $125,000 above the fiscal year 2012 enacted level and
the same as the budget request.

FEDERAL PAYMENT FOR REDEVELOPMENT OF THE ST. ELIZABETHS HOSPITAL CAMPUS

Appropriations, 2012....................................................
Budget estimate, 2013................................... $9,800,000
Committee recommendation................................ 9,800,000

PROGRAM DESCRIPTION

St. Elizabeths, established by Congress in 1855 as the
Government Hospital for the Insane and officially renamed as
St. Elizabeths Hospital in 1916, is presently divided into two
campuses. The West Campus, owned by the Federal Government and
under the custody and control of the General Services
Administration, will be the new headquarters for the Department
of Homeland Security. The East Campus, owned by the District of
Columbia, is still in use as a mental health facility. The
fiscal year 2013 budget request seeks a new Federal payment of
$9,800,000 to support various redevelopment planning activities
on the East Campus to stimulate economic and community
revitalization in tandem with the transformation of the West
Campus property.

COMMITTEE RECOMMENDATION

The Committee recommends a one-time Federal payment of
$9,800,000, to remain available until expended, to support the
revitalization efforts underway at the East Campus of St.
Elizabeths in the District of Columbia. The Committee
understands that the Federal funding will be leveraged with a
total of $28,700,000 in local and private funds in fiscal year
2013 to support revitalization that will bring together
opportunities for community business development, workforce
development, financial services, and other economic benefits
for the community.

FEDERAL PAYMENT FOR HIV/AIDS PREVENTION

PROGRAM DESCRIPTION

The District of Columbia is facing a daunting HIV epidemic.
Based on the national HIV/AIDS case based reporting system, the
District currently has the highest AIDS rate in the country,
nearly twice as high as New York City and five times as high as
Detroit. Currently, 3.2 percent of the population was diagnosed
and is living with HIV in the District. Studies suggest that
between one-third and one-half of people who are HIV positive
in the District are unaware of their status. Early diagnosis
and increased access to care improves health outcomes and
reduces the chances of spreading the disease. According to the
most recent local epidemiology report, more than 75 percent of
persons in the District entered into care and treatment within
3 months of their HIV diagnosis, a steady increase from the 58
percent in 2005. The proportion of persons progressing from HIV
to AIDS decreased to 24.2 percent in 2008, cut nearly in one-
half from 47 percent in 2004. The number of deaths among
persons with HIV/AIDS decreased by more than one-half, from 326
in 2005 to 153 in 2009.

COMMITTEE RECOMMENDATION

The Committee acknowledges the serious situation and
recommends a special Federal payment of $5,000,000 to support
the use of emerging and effective technology and social
networking to promote regular and routine testing to
significantly increase the number of District residents who
know their HIV status and increase the number of HIV positive
residents immediately linked to care.

FEDERAL PAYMENT FOR JOB TRAINING PILOT PROGRAM

Appropriations, 2012....................................................
Budget estimate, 2013................................... $2,000,000
Committee recommendation................................................

The budget requests a special Federal payment of $2,000,000
to support pilot programs focused on workforce development of
core job and computer skills and green job training initiatives
aimed at adult residents in three city wards with chronically
high-unemployment levels that are overwhelmingly more extensive
than the cumulative average of other areas of the city and far
surpass the national average. Programs would focus on narrowing
the digital divide and enhance computer literacy and using
modernized buildings as training facilities to help prepare
District residents to meet the projected demand for green
workforce skills.

COMMITTEE RECOMMENDATION

The Committee is unable to support the request for a new
special Federal payment to the District of Columbia. The
Committee urges the District to fully explore and exhaust other
Federal grant options and private sources to augment local
investments to support these pilot programs in fiscal year
2013.

FEDERAL PAYMENT FOR D.C. COMMISSION ON THE ARTS AND HUMANITIES GRANTS

Appropriations, 2012....................................................
Budget estimate, 2013................................... $2,500,000
Committee recommendation................................................

The budget requests a special Federal payment of $2,500,000
to fund competitively awarded grants for nonprofit fine and
performing arts organizations based in and primarily serving
the District of Columbia. This request relates to a proposal to
eliminate funding for the National Capital Arts and Cultural
Affairs [NCACA] grants program administered by the Commission
on Fine Arts, a Federal entity funded under the Interior
appropriation.

COMMITTEE RECOMMENDATION

The Committee is unable to support the request for a new
special Federal payment to the District of Columbia for grants
for non-profit fine and performing arts organizations in fiscal
year 2013.

District of Columbia Funds

The Committee recommends a total of $11,356,050,000 for the
operating expenses of the District of Columbia as contained in
the fiscal year 2013 budget submitted to the Congress by the
government of the District of Columbia. Of the total,
$6,379,906,000 is from local funds, $998,179,000 is from
Federal grant funds, $2,165,470,000 is from other funds, and
$9,352,000 is from private funds. The Committee further
recommends an additional $130,900,000 in appropriated Federal
payments as set forth under this title. The Committee directs
that any changes to the financial plan as submitted by the
District must follow the reprogramming guidelines.

TITLE V

INDEPENDENT AGENCIES

Administrative Conference of the United States

SALARIES AND EXPENSES

Appropriations, 2012.................................... $2,900,000
Budget estimate, 2013................................... 3,200,000
Committee recommendation................................ 3,200,000

PROGRAM DESCRIPTION

The Administrative Conference of the United States [ACUS]
is an independent agency and advisory committee created to
study administrative processes in order to recommend
improvements to Congress and agencies.

COMMITTEE RECOMMENDATION

The Committee recommends $3,200,000 for ACUS, equal to the
budget request and $300,000 above the fiscal year 2012 enacted
level.

Christopher Columbus Fellowship Foundation

SALARIES AND EXPENSES

Appropriations, 2012.................................... $450,000
Budget estimate, 2013...................................................
Committee recommendation................................ 450,000

PROGRAM DESCRIPTION

The Christopher Columbus Fellowship Foundation is an
independent agency established by Congress in 1992 (Public Law
102-281) to encourage and support research, study, and labor
designed to produce new discoveries in all fields of endeavor
for the benefit of mankind. Its mission is accomplished through
the sponsorship of national competitions designed to promote
innovation in the fields of homeland security, life sciences,
and education. Through its Frontiers of Discovery--Work in
Progress and Discover the Future programs, the agency
recognizes cutting-edge innovations of worthy American
scientists, student inventors, and exemplary teachers who
inspire despite especially challenging educational environments
or personal physical disabilities.
Initial funding for the Christopher Columbus Fellowship
Foundation was derived from the sale of three denominations of
specially minted coins sold by the United States Mint from
August 1992 through June 1993. Revenues from the coin sales
surcharges were deposited in the Christopher Columbus
Fellowship Fund at the Department of the Treasury, and made
available to the Foundation. To address the fact that the coin
sales revenues had been depleted, Congress authorized funding
for the Christopher Columbus Fellowship Foundation in the
Omnibus Appropriations Act, 2009 (Public Law 111-8).

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $450,000 for
the Christopher Columbus Fellowship Foundation. This is the
same as the fiscal year 2012 enacted level and $450,000 above
the budget request.

Civilian Property Realignment Board

Appropriations, 2012....................................................
Budget estimate, 2013................................... $57,000,000
Committee recommendation................................................

The Civilian Property Realignment Board would be an
independent agency that assists the President and Congress in
identifying ways the Government can eliminate unneeded assets
and downsize its real property inventory. The purpose of the
Board would be to create a fair process for the timely disposal
and realignment of Federal real property. The goals of the
Board would be to sell unneeded property, reduce the operating
costs of the Government, support and incentivize agency co-
location, and improve the sustainability of the Government's
operations.

COMMITTEE RECOMMENDATION

The Committee recommends no funding as neither the Civilian
Property Realignment Board nor the Civilian Property
Realignment Act has been authorized by Congress.

Commodity Futures Trading Commission

SALARIES AND EXPENSES

Appropriations, 2012.................................... $205,294,000
Budget estimate, 2013................................... 308,000,000
Committee recommendation................................ 308,000,000

PROGRAM DESCRIPTION

The Commodity Futures Trading Commission [CFTC] was
established as an independent agency by the Commodity Futures
Trading Commission Act of 1974 (88 Stat. 1389; 7 U.S.C. 4a).
The Commission administers the Commodity Exchange Act, 7 U.S.C.
section 1, et seq.
The 1974 Act brought under Federal regulation futures
trading in all goods, articles, services, rights, and
interests; commodity options trading; and leverage trading in
gold and silver bullion and coins; and otherwise strengthened
the regulation of the commodity futures trading industry. It
established a comprehensive regulatory structure to oversee the
volatile futures trading complex. The CFTC's statutory mandate
was renewed and/or expanded in 1978, 1982, 1986, 1992, 1995,
2000, 2008, and 2010.
The CFTC is the sole Federal regulator responsible for
overseeing the futures, options, and swaps markets by
encouraging competitiveness and efficiency, ensuring market
integrity, and protecting market participants against
manipulation, abusive trading practices, fraud, and other
unscrupulous activities. Effective oversight by the CFTC
fosters open, competitive, and financially sound markets. This
enables the markets to better serve their designated functions
of providing a price discovery mechanism and a means to offset
price risk.
Under the Dodd-Frank Wall Street and Consumer Protection
Act (Public Law 111-203), the CFTC faces the daunting added
responsibility of comprehensive oversight of the once-
unregulated $300,000,000,000,000 over-the-counter U.S.
derivatives market to protect and benefit end-users and the
broader American public. This complex swaps market has a
notional value of nearly eight times the size of that of the
futures markets.
Programs in support of the overall CFTC mission include
market surveillance analysis and research; registration,
audits, and contract markets; enforcement; reparations;
proceedings; legal counsel; agency direction; and
administrative support services. CFTC activities are carried
out in Washington, DC and in regional offices located in
Chicago, New York City, and Kansas City.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $308,000,000
for the Commodity Futures Trading Commission. This is
$102,706,000 above the fiscal year 2012 enacted level and the
same as the budget request. The Committee supports the need for
increased resources for the CFTC above the fiscal year 2012
enacted level to satisfy its substantially broadened regulatory
workload and to ensure appropriate oversight of the futures
markets, which are growing steadily in volume and new users,
and rapidly evolving in their complexity and diversity.
The CFTC regulates a futures and options industry that grew
from 250 million contracts in 2001 to more than 2.5 billion
contracts in 2011--a change of over 900 percent. During that
same decade, customer funds held in Futures Commission
Merchants accounts increased from $56,700,000,000 to more than
$203,710,000,000, and the value of these contracts is
notionally estimated at $40,000,000,000,000. Moreover, under
the Dodd-Frank Act mandates, the CFTC is tasked with regulating
the swaps markets with an estimated notional value of
approximately $300,000,000,000,000--roughly eight times the
size of the regulated futures markets. To address this massive
growth surge in workload expected with respect to previously
unregulated swaps entities, while still maintaining strong
vigilance over its core responsibilities that predated the
statutory duties of Dodd-Frank, it is imperative that the
staffing and organization of the CFTC adapt to keep pace. That
cannot be undertaken without a significant increase in its
operating budget that balances investments in human capital and
technology.
As emphasized in the CFTC's 2011-2015 strategic plan,
``effective oversight can only be accomplished if the regulator
has access to all relevant activity in the markets.'' Promptly
collecting, synthesizing, managing, and analyzing the vast
volume of data and information is paramount in CFTC's
surveillance work and real-time public reporting. Without
question, enhanced cutting-edge technology is essential to
CFTC's capacity to leverage financial and human resources to
execute not only the CFTC's core mission, but for fulfilling
the expanded responsibilities under Dodd-Frank reforms.
Detecting and deterring illegitimate market forces requires
the CFTC's steady vigilance and swift response. The CFTC's
annual performance report for fiscal year 2011 highlighted the
uptick in the number of market manipulation and disruptive
trading investigations which tend to be complex, resource-
intensive, and longer in duration.
The CFTC is required to review all swaps to determine
whether the swap is exempt from the mandatory clearance
requirement; require real-time reporting for all swaps; adopt
rules for imposing capital and margin requirements on all
noncleared swaps; exercise dual regulatory authority, in
conjunction with the SEC, over mixed swaps; promulgate rules
defining the universe of swaps that can be executed on a swap
execution facility; and exercise backstop enforcement authority
if prudential regulators do not act after notification of a
perceived violation.
The Committee is particularly concerned that, absent
additional resources in fiscal 2013 at the level recommended by
the Committee, the CFTC will continue to face extreme
challenges in accomplishing all that it is expected to do, and
at a technological disadvantage. Similar to what the agency
encountered in fiscal year 2012, the CFTC may have no choice
but to redeploy its scarce resources internally in order to
process the anticipated surge of registration applications and
reviews of products in the swaps arena. The Committee is
troubled that this shifting of staff would be done at the
expense of conducting robust and systematic examination
programs and sustained, visible, and public enforcement
programs designed to deter fraud and ensure redress for
consumers. The Committee believes the risk to the marketplace
that such a sacrifice presents is an untenable proposition.
The Committee directs the CFTC to submit, within 30 days of
enactment, a detailed spending plan for the allocation of the
funds made available, displayed by discrete program, project,
and activity, including staffing projections, specifying both
FTEs and contractors, and planned investments in information
technology.
The Committee underscores the crucial need for the CFTC to
make mission-critical investments in technology to sort through
the millions of pieces of information generated daily by
markets. The CFTC's responsibilities to integrate both swaps
and futures markets and perform required analysis and oversight
requires a comprehensive overhaul of the current systems and a
greater attention to automating surveillance and market risk
analysis. The amount and detail of trade data collected and
analyzed by the CFTC is expanding with its new authority over
swaps markets and can only be managed by completely automating
the collection and analysis of market data.
The Committee is pleased that the CFTC is taking steps to
improve the transparency of market data to better inform market
participants and the public.
The Committee stresses that with the enactment of Public
Law 111-203, it is all the more critical for the CFTC, in
collaboration with the SEC, to ensure optimum harmonization in
executing the respective oversight responsibilities of each
agency with respect to over-the-counter derivative products.
The Committee expects the CFTC and the SEC to limit, to the
greatest extent possible, inconsistent regulation of similar
products and entities that could lead to opportunities for
regulatory arbitrage. The Committee continues to support the
use of funds to support the Joint SEC-CFTC Advisory Committee.
The Committee understands that petitions are pending before
the CFTC and the SEC to allow portfolio margining of index
credit default swaps and single name credit default swaps. The
Committee is concerned that the CFTC and SEC have not acted on
these petitions, nor reached agreement on portfolio margining
in general. The Committee encourages the agencies to work
collaboratively and promptly address the pending petitions.

Consumer Product Safety Commission

salaries and expenses

Appropriations, 2012.................................... $114,500,000
Budget estimate, 2013................................... 122,425,000
Committee recommendation................................ 122,425,000

PROGRAM DESCRIPTION

The Consumer Product Safety Commission [CPSC] is an
independent regulatory agency that was established on May 14,
1973, and is responsible for protecting the public against
unreasonable risks of injury from consumer products; assisting
consumers to evaluate the comparative safety of consumer
products; developing uniform safety standards for consumer
products and minimizing conflicting State and local
regulations; and promoting research and investigation into the
causes and prevention of product-related deaths, illnesses, and
injuries.
In carrying out its mandate, the CPSC establishes mandatory
product safety standards, where appropriate, to reduce the
unreasonable risk of injury to consumers from consumer
products; helps industry develop voluntary safety standards;
bans unsafe products if it finds that a safety standard is not
feasible; monitors recalls of defective products; informs and
educates consumers about product hazards; conducts research and
develops test methods; collects and publishes injury and hazard
data; and promotes uniform product regulations by governmental
units.
On August 14, 2008, Congress reauthorized the Commission by
enacting the Consumer Product Safety Improvement Act of 2008
[CPSIA] (Public Law 110-314). CPSIA represents the most
substantial change in the Consumer Product Safety Commission's
authorities since the creation of the Commission. Among other
things, it enhances the Commission's recall authority,
streamlines the rulemaking process, provides for the creation
of a new searchable database of consumer product complaints,
and requires product certification.

COMMITTEE RECOMMENDATION

The Committee recommends $122,425,000 for the Consumer
Product Safety Commission, which is $7,925,000 above the fiscal
year 2012 funding level and the same as the budget request.
The Committee continues to remain pleased with the Consumer
Product Safety Information Database as authorized by CPSIA,
which aids consumers in more quickly detecting hazardous or
potentially hazardous or unsafe products. SaferProducts.gov has
posted more than 8,200 searchable reports, many of which
include incidents of injury and even death.
The Committee remains concerned that small, round, coin-
shaped batteries, known as ``button cell batteries'' are
increasingly present in consumer products, and pose a hazard--
potentially fatal--to small children who ingest them. As many
as 3,471 button battery ingestion cases were reported to U.S.
poison centers in 2011, for a total of 63,555 cases since 1985.
The number of ingestions that result in serious injury or death
has increased almost sevenfold since 1985 due to the higher
voltage of newer batteries. Hundreds of children have been
injured, 34 were severely injured, and 5 have died from these
ingestions in the last 2 years alone. If these batteries were
securely enclosed in products (like the existing Federal safety
rules that require toys that use batteries to have such
compartments), with accompanying warning labels, this hazard
could be greatly diminished. The Committee acknowledges efforts
to promulgate a voluntary safety standard and urges that
efforts be expedited to address this hazard.
CPSC has identified window coverings with cords as 1 of the
top 5 hidden hazards in the home. CPSC is aware of 135
fatalities and 140 nonfatal incidents, most of which resulted
in injuries related to corded window blinds since 1999. About
once a month, a child between 8 months and 8 years old dies
from window cord strangulation and another child suffers a near
strangulation. In recent years, CPSC has recalled tens of
millions of window coverings, including Roman shades, roller
and roll-up blinds, vertical and horizontal blinds. A voluntary
standard exists for window blinds but it has proven to be
inadequate to eliminate or significantly reduce the
strangulation risk posed by corded window coverings. For 18
years and presently on the sixth revision of a voluntary
standard, the window coverings manufacturing industry has
refused to agree to include language that would lead to any
substantive reduction in the strangulation hazard. Accordingly,
a provision has been included requiring CPSC to promulgate a
rule that eliminates or significantly reduces the strangulation
hazard caused by cords on window coverings.
For some time, consumers have been told that flame-
retardant chemicals significantly mitigate the risk of
accidental fires in furniture. Yet, a recent investigation has
now called into question the effectiveness of flame retardant
chemicals, while highlighting the health concerns associated
with the heavy and widespread use of these chemicals in goods
ranging from sofas to consumer electronics. CPSC is directed to
report to the Committee no later than 90 days after enactment
of this act on the status of the proposed rule setting
flammability standards for residential upholstered furniture,
including the steps necessary to complete the rulemaking.

ADMINISTRATIVE PROVISIONS--CONSUMER PRODUCT SAFETY COMMISSION

Section 501 makes technical corrections to the Virginia
Graeme Baker Pool and Spa Safety Act.
Section 502 requires CPSC to promulgate a rule eliminating
the strangulation hazard caused by cords on window coverings.

Election Assistance Commission

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2012.................................... $11,500,000
Budget estimate, 2013................................... 11,500,000
Committee recommendation................................ 11,500,000

PROGRAM DESCRIPTION

The Election Assistance Commission [EAC] was created by the
Help America Vote Act of 2002 [HAVA] (Public Law 107-252).
Under HAVA, the EAC's role is to promulgate voluntary State
guidelines for election systems, develop a national
certification program for voting equipment, and provide related
guidance. The EAC is also charged with awarding grants to
improve election administration and to enhance election
equipment.

COMMITTEE RECOMMENDATION

The Committee provides $11,500,000 for EAC's administrative
expenses, which is the same as both the fiscal year 2012
enacted level and the budget request. The Committee bill
requires that $2,750,000 of these funds be transferred to the
National Institute for Standards and Technology for technical
assistance related to the development of voluntary State voting
systems guidelines.

Federal Communications Commission

SALARIES AND EXPENSES

Appropriations, 2012.................................... $339,844,000
Budget estimate, 2013................................... 346,782,000
Committee recommendation................................ 347,782,000

PROGRAM DESCRIPTION

The Federal Communications Commission [FCC] is charged with
regulating interstate and international communications by
radio, television, wire, satellite, and cable. The FCC is also
charged with promoting the safety of life and property through
wire and radio communications. The mandate of the FCC under the
Communications Act is to make available to all people of the
United States a rapid, efficient, nationwide, and worldwide
wire and radio communication service. The FCC performs five
major functions to fulfill this charge: (1) spectrum
allocation; (2) creating rules to promote fair competition and
protect consumers where required by market conditions; (3)
authorization of service; (4) enhancing public safety and
homeland security; and (5) enforcement.

COMMITTEE RECOMMENDATION

The Committee recommendation provides $347,782,000 for the
salaries and expenses of the Federal Communications Commission
[FCC], of which $347,782,000 is to be derived from the
collection of fees. The recommendation is $7,938,000 above the
fiscal year 2012 enacted level and $1,000,000 above the budget
request.
The amount recommended above the budget request will
provide adequate funding for the activities of the Office of
Inspector General. The Committee directs the FCC to submit the
independent budget of the FCC Inspector General to the
President without alteration in fiscal year 2014 and each
subsequent fiscal year.
The Committee also recommends that up to $99,000,000 be
retained from spectrum auction activities to fund the
administrative expenses of conducting such auctions. The
recommendation is an increase of $14,000,000 to both the fiscal
year 2012 enacted amount and the budget request due to the cost
of the FCC's expanded responsibilities related to the
implementation of incentive auctions provisions included in the
Middle Class Tax Relief and Job Creation Act of 2012 (Public
Law 112-96).
The Committee has included language (section 510) to extend
FCC's exemption from the Anti-deficiency Act [ADA] until
December 31, 2014.
The Committee has included language (section 511) that
prohibits the FCC from enacting certain recommendations
regarding universal service that were made by the Joint Board
of FCC members and State utility commissioners. The
recommendation would limit universal support to one line. This
would be harmful to small businesses, especially in rural
areas, which often need additional lines for a fax or for other
business purposes.
Universal Service Reform.--The Committee supports the FCC's
goal to modernize the Universal Service Fund to put America on
a path to universal broadband by the end of the decade. The
reform will have a significant impact on deployment of
broadband in rural areas, where millions of Americans lack
access. However, transforming the Universal Service program
presents challenges to certain telecommunications providers
transitioning to a new universal service system. To address
this concern, the FCC has established a waiver process through
which companies may be able to mitigate the impact of the
reforms. The Committee encourages the FCC to implement the
waiver process in a transparent, timely and equitable manner.
Cramming.--The Committee appreciates the FCC's new rules
addressing ``cramming'', the practice of forcing unwanted,
unsolicited, or fraudulent charges on consumers' phone bills.
Cramming occurs when the legitimate practice of third-party
billing is used for deceptive or fraudulent charges. The
Committee is concerned, however, that the rules requiring phone
companies to allow wireline customers to ``opt-out'' of third-
party billing will not be sufficient to help customers avoid
cramming. The Committee urges the FCC to consider implementing
an ``opt-in'' requirement for third-party billing on wireline
phone bills to best help consumers avoid unwanted or fraudulent
charges. Recognizing that wireless billing often involves
third-party vendors for legitimate purchases, such as music and
applications, and that the use of wireless devices as a payment
mechanism is evolving, the Committee also urges the FCC to seek
a solution to address cramming on wireless bills.
Technical Resources.--The Committee is concerned with the
lack of engineering expertise at the FCC, particularly given
that the agency will continue to face more technically complex
issues under its jurisdiction such as advanced wireless
communications, cyber security, public safety interoperability,
and broadband. In addition, FCC officials have acknowledged a
shortage of network engineers and that a large number of
experienced FCC engineers will be eligible to retire within the
next few years. To address this emerging issue, the Committee
urges the FCC to try to improve the level of its technical
resources and staffing to be better equipped to address the
dynamic and increasingly technical landscape of the
telecommunications industry and the many issues under its
jurisdiction. The Committee believes it is important for the
FCC to properly address this lack of technical expertise as it
re-evaluates and implements its Strategic Human Capital Plan.
In addition, the Committee expects the Commission to update
hiring practices as appropriate to attract qualified engineers
and make improvements to internal initiatives such as the
Engineer in Training and the Excellence in Engineering programs
to better train and retain FCC technical staff.
Public Inspection File.--The Committee commends the FCC for
requiring that broadcasters' public inspection files be made
available online and in a searchable format. Such files contain
important information regarding broadcasters' fulfillment of
public interest obligations, including public comments, maps of
broadcast areas, and information on political advertisements.
The requirement will modernize disclosure requirements, inform
the public on the use of the public's airtime, and increase the
transparency of campaign advertising purchases.
Protecting Consumer Privacy Online.--The Committee notes
the important role that the FCC plays in creating an
environment that fosters technological innovation but also
protects consumer privacy. More than 500,000 new jobs have been
created from the Apps Economy over the last 3 years, for
example, but there have also been widespread reports of
sensitive, personally identifiable consumer information being
compromised, sometimes intentionally, by major companies. The
Committee directs the FCC to work with the FTC and issue
guidance to consumers on best practices for protecting personal
information transmitted over wireless networks, including
through encryption and other practices. The Committee further
directs the FCC to study the privacy policies governing the
collection and use of personal information online by major
communications companies and issue guidance on best practices
for disclosing the terms and conditions of these policies in
written agreements that are concise, user friendly, and easily
understood.

Federal Deposit Insurance Corporation

OFFICE OF INSPECTOR GENERAL

Appropriations, 2012.................................... $45,261,000
Budget estimate, 2013................................... 34,568,000
Committee recommendation................................ 34,568,000

PROGRAM DESCRIPTION

The Federal Deposit Insurance Corporation [FDIC] Office of
Inspector General [OIG] conducts audits, investigations, and
other reviews to assist and augment the FDIC's contribution to
the stability of, and public confidence in, the Nation's
financial system. A separate appropriation more effectively
ensures the OIG's independence consistent with the Inspector
General Act of 1978 and other legislation.

COMMITTEE RECOMMENDATION

The Committee recommends $34,568,000 for the FDIC inspector
general, the same as the budget request and $10,693,000 less
than the fiscal year 2012 enacted level. Funds are to be
derived from the Deposit Insurance Fund and the Federal Savings
and Loan Insurance Corporation resolution fund.

Federal Election Commission

SALARIES AND EXPENSES

Appropriations, 2012.................................... $66,367,000
Budget estimate, 2013................................... \1\66,367,000
Committee recommendation................................ 67,999,000

\1\Consistent with 2 U.S.C. 437d(d), the Federal Election Commission
[FEC] provided to the Congress a copy of the budget request the FEC
submitted to the President. That request for fiscal year 2013 totaled
$67,999,000.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Federal Election Commission [FEC] was created through
the 1974 Amendments to the Federal Election Campaign Act of
1971 (Public Law 93-443). Consistent with its duty of executing
our Nation's Federal campaign finance laws, and in pursuit of
its mission of maintaining public faith in the integrity of the
Federal campaign finance system, FEC conducts three major
regulatory programs: (1) providing public disclosure of funds
raised and spent to influence Federal elections; (2) enforcing
compliance with restrictions on contributions and expenditures
made to influence Federal elections; and (3) administering
public financing of Presidential campaigns.

COMMITTEE RECOMMENDATION

The Committee recommends $67,999,000 for the Federal
Election Commission, which is $1,632,000 more than both the
President's budget request and the fiscal year 2012 enacted
level. The recommendation is equal to the budget request the
FEC submitted to the President. The FEC concurrently submitted
a copy of such request to the Congress as authorized by 2
U.S.C. 437d(d).

Federal Labor Relations Authority

SALARIES AND EXPENSES

Appropriations, 2012.................................... $24,723,000
Budget estimate, 2013................................... 24,792,000
Committee recommendation................................ 25,200,000

PROGRAM DESCRIPTION

The Federal Labor Relations Authority [FLRA] is an
independent administrative Federal agency created by title VII
of the Civil Service Reform Act of 1978 (Public Law 95-454)
with a mission to carry out five statutory responsibilities in
relation to the Federal workforce: (1) determining the
appropriateness of units for labor organization representation;
(2) resolving complaints of unfair labor practices; (3)
adjudicating exceptions to arbitrator's awards; (4)
adjudicating legal issues relating to the duty to bargain; and
(5) resolving impasses during negotiations.
The FLRA's authority is divided by law and by delegation
among a three-member authority and an Office of General
Counsel, appointed by the President and subject to Senate
confirmation; and the Federal Service Impasses Panel, which
consists of seven part-time members appointed by the President.
In addition, the FLRA is engaged in case-related
interventions, training and facilitation of labor-management
partnerships, and 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 Labor
Relations Management statute.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $25,200,000
for the Federal Labor Relations Authority. This amount is
$408,000 above the budget request and $477,000 above the fiscal
year 2012 enacted level.

Federal Trade Commission

SALARIES AND EXPENSES

Appropriations, 2012.................................... $311,563,000
Budget estimate, 2013................................... 300,000,000
Committee recommendation................................ 300,000,000

PROGRAM DESCRIPTION

The Federal Trade Commission [FTC] administers a variety of
Federal antitrust and consumer protection laws. Activities in
the antitrust area include detection and elimination of illegal
collusion, anticompetitive mergers, unlawful single-firm
conduct, and injurious vertical agreements. The FTC enforces
consumer protection laws involving advertising, marketing, and
financial practices; fights consumer fraud; and addresses
privacy and identity protection concerns.

COMMITTEE RECOMMENDATION

The Committee recommendation provides $300,000,000. The
recommendation is $11,563,000 below the fiscal year 2012
enacted level and equal to the budget request.
Of the amounts provided, $15,000,000 is derived from Do-
Not-Call fees and $115,000,000 is derived from Hart-Scott-
Rodino per-merger filing fees. The total amount of direct
appropriations for this account is therefore $170,000,000.
The Committee continues to place a high priority on the
FTC's mission to protect consumers and preserve competition in
the marketplace. The Committee is pleased with the FTC's
efforts to protect consumers by investigating fraud and
misleading practices related to mortgage lending, identity
theft, data security, and healthcare. In particular, the
Committee appreciates the FTC's enforcement of the Mortgage
Assistance Relief Services Rule, which protects struggling
homeowners from mortgage relief scams, and the recent rule
banning deceptive mortgage advertising practices. These rules
strengthen consumer protection and prevent providers of
mortgage relief services from misleading customers. The
Committee also appreciates the FTC's efforts to combat identity
theft, including steps to publicize a victim assistance guide
for pro-bono attorneys, train local law enforcement to detect
and prosecute identity theft, and update educational materials
to address emerging issues such as medical identity theft and
children's identity theft.
The Committee is also pleased that the FTC has worked to
preserve competition in the marketplace through education and
enforcement of Federal laws related to anticompetitive
practices. Over the past 3 years, the FTC saved consumers more
than $1,700,000,000 in economic injury by stopping illegal
practices in the marketplace. In 2010 alone, the FTC took
action against mergers likely to harm competition in markets
with a total of $22,500,000,000 in sales. The Committee directs
the FTC to robustly continue such activities.
The Committee makes the following findings:
Do-Not-Call Initiative.--The recommendation includes
funding for the FTC Do-Not-Call initiative and implementation
of the Telemarketing Sales Rule [TSR], of which the entire
amount is to be derived from the collection of fees. The Do-
Not-Call initiative was launched pursuant to the FTC's amended
TSR to establish a national database of telephone numbers of
consumers who choose not to receive telephone solicitations
from telemarketers. The Do-Not-Call initiative has received
broad support from, and will provide significant benefits to,
consumers from all corners of the United States.
Gas and Diesel Prices.--The Committee continues to be
concerned with the potential for market manipulation and
anticompetitive behavior in the oil and natural gas industries.
The FTC is encouraged to continue its investigations and other
activities related to these concerns. The Committee directs the
FTC to keep the Committee apprised of findings made regarding
fuel prices, as well as other planned activities and
investigations regarding the oil and gas industries.
Payment Card Networks.--The Committee notes the important
role that the FTC has been assigned in enforcing the provisions
of section 1075 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act as they relate to payment card network
companies. The FTC's enforcement role is critical to ensuring
that payment card network companies do not take steps to
undermine the small issuer exemption or the pro-consumer
benefits contained in section 1075. The Committee reminds the
FTC of the requirement to report to the Committee on steps that
the FTC has taken over the previous year to ensure compliance
by payment card network companies with section 1075 of Dodd-
Frank and regulations promulgated thereunder. The Committee
expects the report to explain whether the FTC has identified
any evidence that payment card network companies have taken
steps to diminish the ability of small banks and credit unions
to successfully compete with large financial institutions in
the debit card issuance market, and if any such steps have been
taken by the card network companies in coordination or
collusion with large financial institutions. The Committee
looks forward to the completion and submission of this report
within 1 year of enactment of the Consolidated Appropriations
Act, 2012 (Public Law 112-7). The Committee also directs FTC to
provide an updated report 1 year after the completion and
submission of the initial report.
FTC Headquarters Building.--The Committee is concerned
about the cost to implement proposed legislation to transfer
the FTC's headquarters building to the National Gallery of Art
[NGA]. The proposal would provide the NGA with additional space
to expand its exhibitions, education, and administrative
offices. The Committee is concerned that this transaction will
result in taxpayers surrendering a valuable public asset
without any compensation. The building would have significant
value if sold on the market due to its prime location and good
working condition; in fact, the FTC reports that the building
was recently appraised at $92,000,000 to $95,000,000. The
Committee is concerned that this transaction would be
unprecedented; other NGA buildings were constructed with
private funds, not paid for by taxpayers. Furthermore, while
the NGA has indicated it would raise private funds to renovate
the building, Federal spending would continue to be required
for maintenance and repair of the building. The Congressional
Budget Office [CBO] reports, ``Since the original buildings
were donated to the NGA, all renovations and repairs to those
facilities have been completed with appropriated funds.'' For
example, over the past several years, Congress has appropriated
more than $80,000,000 for repairs to the marble facade of the
NGA's East Building and for fiscal year 2013, the NGA has
identified $45,000,000 in additional critical maintenance and
repair needs for its East and West Buildings.
The Committee is concerned that such a proposal also would
require the Federal Government to buy or lease replacement
space for a new FTC headquarters, which would require
additional Federal spending. The CBO reports that the most
cost-effective approach to acquiring additional real estate for
permanent Federal use is purchasing or constructing new
buildings rather than entering into long-term leases. The CBO
estimates that constructing a large enough facility to
accommodate the entirety of the FTC would cost roughly
$300,000,000. The Committee expects that a smaller space to
accommodate only the current headquarters staff could cost the
taxpayers a smaller but still significant amount of money. The
Committee finds these costs difficult to contemplate,
especially at a time when existing top priority projects have
been deferred due to severely limited funds. The Committee is
also concerned about the significant costs associated with this
proposal. Among these costs are: (1) the significantly greater
cost of commercially leased space for the FTC should a new
space not be built for its use; (2) the cost of moving the FTC,
which is estimated at $70,000,000 to $95,000,000 and would
recur every 10 to 15 years if the FTC is moved into
commercially leased space; and (3) the ongoing Federal costs
associated with the NGA's occupancy of the FTC headquarters
building. Further, moving the FTC into existing Federal space
(leased or owned) would require the Federal Government to find
space for another Federal agency which could also impose
significant additional costs on the Federal Government.
Given the Committee's concerns, section 623 of the bill
precludes the conveyance of the FTC headquarters building
unless the Federal Government receives fair market value for
the property. The Committee also directs the FTC and the
General Services Administration to keep the Committee fully and
regularly apprised of the cost of proposals related to the
headquarters building.

General Services Administration

PROGRAM DESCRIPTION

The General Services Administration [GSA] was established
by the Federal Property and Administrative Services Act of 1949
(Public Law 81-152) when Congress mandated the consolidation of
the Federal Government's real property and administrative
services. GSA is organized into the Public Buildings Service,
the Federal Acquisition Service, the Office of Governmentwide
Policy, and the Office of Citizen Services.

COMMITTEE RECOMMENDATION

Outraged over excessive spending and misuse of taxpayer
funds, the Committee held a hearing in April on the findings of
the Inspector General with regard to the 2010 Western Regions
Conference. Immediate steps were taken to address the
spectacular lack of judgment by some senior officials and now
under new leadership at GSA, changes have been made to ensure
that these errors do not recur. These include, but are not
limited to: an immediate tightening of employee travel and
conferences; a new chain of command for finance officers in GSA
Regions, who now report directly to headquarters instead of to
a Regional Administrator; a consolidation of conference
management into a new office of Administrative Services to be
responsible for contracting, approving, and reviewing spending
for conferences; and a top-to-bottom review of the agency's
operations for possible further reforms.
Battery Purchases.--The Committee is concerned that Federal
agencies are not adequately considering service life when
contracting for large quantities of batteries. Disregarding
battery life prevents the Government from determining which
product offers the best value to the taxpayer. For example,
purchasing a slightly more expensive product with a
significantly longer service life may provide a better value to
the taxpayer.
The Committee directs GSA to submit a report not later than
90 days after enactment on the costs and benefits of: (1)
collecting industry standard test results for service life from
venders selling batteries through GSA; and (2) sharing this
data with Federal agencies seeking technical assistance to
prepare a contract for the purchase of batteries. If benefits
exceed costs, the Committee expects GSA to implement such a
policy.
Use of Stairs.--Senate Report 112-79 discussed the
increasing incidence of obesity and the significant health
benefits that lifestyle activities, such as choosing stairs
over elevators, can have in addressing obesity. The Committee
continues to believe that the Federal Government should be a
leader in encouraging workplace wellness. In addition,
lessening the use of elevators by all will speed their movement
for those who depend on them. While the Committee believes that
GSA has made some progress since the first effort to promote
the use of stairs was initiated in the fiscal year 2006
appropriation bill, further effort is needed.
The Committee directs that GSA begin to undertake the
following actions at future GSA-owned and leased buildings: (1)
display signage next to all banks of elevators or on elevator
doors, at the entrance to all nonemergency use public
stairwells, and at the base of escalators, indicating the
location of and encouraging use of the stairs; and (2) utilize
new building designs that promote the use of stairs. In order
to ascertain precisely how much progress has been made and how
much remains, GSA is directed to provide a report on the
percentage of Federal buildings with such signage as well as on
actions undertaken with regard to the design of new facilities,
with a view to increasing the likely use of stairs within 120
days of enactment.
Global Supply Transformation Initiative.--The Federal
Acquisition Service's [FAS] Supply Operations division provides
services and products to Federal agencies. According to its
fiscal year 2013 budget request for FAS, in fiscal year 2012
and fiscal year 2013, GSA seeks to strengthen its partnerships
with the Department of Defense, maximize customer service,
reduce delivery times, and modernize its supply chain. To
implement these goals, GSA has initiated the Supply
Transformation Initiative, which would transfer the sale of
many products previously sold at GSA-operated distribution
facilities to private companies. This would lead to downsizing
the workforce at GSA facilities, even at facilities where
leases have recently been extended. The Committee is generally
supportive of GSA's goal to improve its supply chain process
and product distribution services; however, the details and
implications of this initiative remain unclear, and the
Committee is concerned that the consequences to jobs, small
businesses, taxpayers, and Federal agencies have not been
adequately examined.
Therefore, before launching a full-scale overhaul with the
Supply Transformation Initiative, GSA is directed to issue a
report to Congress that fully explains the proposed plan and
includes--at a minimum--the following: (1) Annual projected
savings; (2) Impact to Federal and non-Federal employees; (3)
Impact to small businesses that contract with GSA supply
operations facilities, including Small and Disadvantaged
Businesses and Service Disabled Veteran Owned Small Businesses;
(4) Impact to local economies that house GSA supply operations
facilities; and (5) Long-term plans for each GSA facility in
the supply operations structure.
In addition, the report shall provide new alternatives to
the current Supply Transformation Initiative that have not been
previously included in other studies. These new alternatives
should seek to minimize job loss and negative impacts to
businesses that contract with GSA while achieving efficiencies
to the Federal Government and improved service for customer
Federal agencies.
The Committee recognizes that the Supply Transformation
Initiative has already begun and will be conducted in phases.
Therefore, GSA should not enter into new phases of the
initiative that would result in the closure of any supply
operations facilities or reductions in the number of Federal or
non-Federal employees at supply operations facilities until the
report is completed.

FEDERAL BUILDINGS FUND--LIMITATIONS ON AVAILABILITY OF REVENUE

Limitation on availability of revenue:
Limitation on availability, 2012.................... $8,017,967,000
Limitation on availability, budget estimate, 2013... 8,619,098,000
Committee recommendation................................ 8,639,098,000

The Federal Buildings Fund program consists of the
following activities financed largely from rent charges:
Construction and Acquisition of Facilities.--This activity
provides for 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.--This activity provides for
repairs and alterations of existing buildings as well as
associated design and construction services. 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. Repairs to prevent deterioration and damage to
buildings, their support systems, and operating equipment are
given priority.
Installment Acquisition Payments.--This activity provides
for payments for liabilities incurred under purchase contract
authority and lease purchase arrangements. GSA makes periodic
payments to cover principal, interest, and other requirements
on the debt incurred for construction of Federal buildings.
Rental of Space.--This activity provides for the leasing of
privately-owned buildings. Including space occupied by Federal
agencies in U.S. Postal Service facilities, GSA provided 193
million square feet of rental space in fiscal year 2011. GSA
expects to provide 201 million square feet of rental space in
fiscal year 2012 and 199 million in fiscal year 2013.
Building Operations.--This activity provides services for
Government-owned and -leased facilities, including cleaning,
utilities and fuel, 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 Reimbursable Programs.--When requested by other
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 charges.

CONSTRUCTION AND ACQUISITION

Limitation on availability, 2012........................ $50,000,000
Limitation on availability, budget estimate, 2013....... 56,000,000
Committee recommendation................................ 56,000,000

PROGRAM DESCRIPTION

The construction and acquisition fund shall be available
for site, design, construction, management, and inspection
costs for the construction of new Federal facilities.

COMMITTEE RECOMMENDATION

The Committee recommends a limitation of $56,000,000 for
construction and acquisition of facilities in fiscal year 2013.

REPAIRS AND ALTERATIONS

Limitation on availability, 2012........................ $280,000,000
Limitation on availability, budget estimate, 2013....... 494,768,000
Committee recommendation................................ 514,768,000

PROGRAM DESCRIPTION

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 primary 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.
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
Inventory Reporting Information System 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. Since fiscal year 1995,
design and construction services activities associated with
repair and alteration projects have been funded in this
account.

COMMITTEE RECOMMENDATION

The Committee recommends a limitation of $514,768,000 for
repairs and alterations in fiscal year 2013.

INSTALLMENT ACQUISITION PAYMENTS

Limitation on availability, 2012........................ $126,801,000
Limitation on availability, budget estimate, 2013....... 119,589,000
Committee recommendation................................ 119,589,000

PROGRAM DESCRIPTION

The Public Buildings Amendments of 1972 enable GSA to enter
into contractual arrangements for the construction of a backlog
of approved but unfunded projects. This activity provides for
the payment of interest to the Federal Financing Bank related
to facilities acquired pursuant to the Public Buildings
Amendments of 1972 (40 U.S.C. 592).

COMMITTEE RECOMMENDATION

The Committee recommends a limitation of $119,589,000 for
installment acquisition payments consistent with the budget
request.

RENTAL OF SPACE

Limitation on availability, 2012........................ $5,210,198,000
Limitation on availability, budget estimate, 2013....... 5,548,583,000
Committee recommendation................................ 5,548,583,000

PROGRAM DESCRIPTION

GSA is responsible for leasing general purpose space and
land incident thereto for Federal agencies, except in cases
where GSA has delegated its leasing authority. 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.

COMMITTEE RECOMMENDATION

The Committee recommends a limitation of $5,548,583,000 for
rental of space. The Committee recommendation is $338,385,000
above the fiscal year 2012 enacted level and the same as the
budget request.

BUILDING OPERATIONS

Limitation on availability, 2012........................ $2,350,968,000
Limitation on availability, budget estimate, 2013....... 2,400,158,000
Committee recommendation................................ 2,400,158,000

PROGRAM DESCRIPTION

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 headquarters facilities, including those occupied by the
EOP, such as the east and west wings of the White House.

COMMITTEE RECOMMENDATION

The Committee recommends a limitation of $2,400,158,000 for
building operations. This amount is $49,190,000 above the
fiscal year 2012 enacted level and the same as the budget
request.

GOVERNMENTWIDE POLICY

Appropriations, 2012.................................... $61,115,000
Budget estimate, 2013................................... 84,182,000
Committee recommendation................................ 78,182,000

PROGRAM DESCRIPTION

The Office of Governmentwide Policy [OGP], working
cooperatively with other agencies, provides the leadership
needed to develop and evaluate policies associated with high-
performance green buildings and real property, acquisition
policy, personal property, travel and transportation
management, vehicles and aircraft, committee and regulations
management, and management of Federal spending data. OGP
collaborates with partner agencies and other stakeholders to
improve public access to policy information and support data,
and improve transparency in Government.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $78,182,000
for Governmentwide Policy. This amount is $17,067,000 above the
fiscal year 2012 enacted level and $6,000,000 below the budget
request.

OPERATING EXPENSES

Appropriations, 2012.................................... $69,500,000
Budget estimate, 2013................................... 67,388,000
Committee recommendation................................ 67,000,000

PROGRAM DESCRIPTION

Operating Expenses supports a variety of operational
activities which are not feasible or appropriate for a user fee
arrangement. Major programs include the personal property
utilization and donation activities of the Federal Acquisition
Service; the real property utilization and disposal activities
of the Public Buildings Service; the activities of the Civilian
Board of Contract Appeals; and the Management and
Administration activities, including support of Governmentwide
emergency response and recovery activities, and top-level
agency-wide management, administration, and communications
activities.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $67,000,000
for Operating Expenses. This amount is $2,500,000 below the
fiscal year 2012 enacted level and $388,000 below the budget
request.

OFFICE OF INSPECTOR GENERAL

Appropriations, 2012.................................... $58,000,000
Budget estimate, 2013................................... 58,960,000
Committee recommendation................................ 58,960,000

PROGRAM DESCRIPTION

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. The
audit function provides internal audit and contract audit
services. Contract audits provide professional advice to GSA
contracting officials on accounting and financial matters
relative to the negotiation, award, administration, repricing,
and settlement of contracts. Internal audits review and
evaluate all facets of GSA operations and programs, test
internal control systems, and develop information to improve
operating efficiencies and enhance customer services. The
investigative function provides for the detection and
investigation of improper and illegal activities involving GSA
programs, personnel, and operations.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $58,960,000
for the Office of Inspector General. This amount is $960,000
above the fiscal year 2012 enacted level and the same as the
budget request.

ELECTRONIC GOVERNMENT [E-GOV] FUND

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2012.................................... $12,400,000
Budget estimate, 2013................................... 16,665,000
Committee recommendation................................ 16,665,000

PROGRAM DESCRIPTION

This program supports interagency ``electronic government''
or ``e-gov'' initiatives and projects that use the Internet or
other electronic methods to provide individuals, businesses,
and government agencies with simpler and more timely access to
Federal information, benefits, services, and business
opportunities. The program would also further the
administration's implementation of the Government Paperwork
Elimination Act [GPEA] of 1998, which calls upon agencies to
provide the public with optional use and acceptance of
electronic information, services, and signatures, when
practicable.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $16,665,000
for the Electronic Government Fund. This amount is $4,265,000
above the fiscal year 2012 enacted level and the same as the
budget request.

ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS

Appropriations, 2012.................................... $3,671,000
Budget estimate, 2013................................... 3,779,000
Committee recommendation................................ 3,779,000

PROGRAM DESCRIPTION

This appropriation provides pensions, office staffs, and
related expenses for former Presidents Jimmy Carter, George
H.W. Bush, William J. Clinton, and George W. Bush, and for the
postal franking privileges for the widow of former President
Ronald Reagan.

COMMITTEE RECOMMENDATION

The Committee recommends $3,779,000 for allowances and
office staff for former Presidents, $108,000 above the fiscal
year 2012 funding level and the same as the budget request.
Below is listed a detailed analysis of the Committee's
recommendation for fiscal year 2013 funding:

FISCAL YEAR 2013 BUDGET ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS
[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
Carter G.H. Bush Clinton G.W. Bush Widows Total
----------------------------------------------------------------------------------------------------------------
Personnel compensation........................ 96 96 96 96 ......... 384
Personnel benefits............................ 2 64 109 102 ......... 277
Benefits for former Presidents (pensions)..... 200 200 212 208 ......... 820
Travel........................................ 2 56 5 60 ......... 123
Rental Payments to GSA........................ 106 174 442 392 ......... 1,114
Communications:
Telephone................................. 10 17 7 85 ......... 119
Postage................................... 15 13 14 20 7 69
Printing...................................... 5 14 18 26 ......... 63
Other services................................ 70 167 80 241 ......... 558
Supplies...................................... 5 15 2 40 ......... 62
Equipment..................................... 7 63 34 86 ......... 190
-----------------------------------------------------------------
Fiscal year 2013 request................ 518 879 1,019 1,356 7 3,779
----------------------------------------------------------------------------------------------------------------

PRESIDENTIAL TRANSITION EXPENSES

Appropriations, 2012....................................................
Budget estimate, 2013................................... $8,947,000
Committee recommendation................................ 8,947,000

PROGRAM DESCRIPTION

The appropriation provides for an orderly transfer of
Executive power, in accordance with the Presidential Transition
Act of 1963, as amended. Funds are also authorized to finance
the costs of briefings and training for personnel associated
with a potential incoming administration.

COMMITTEE RECOMMENDATION

The Committee recommends $8,947,000 for presidential
transition expenses, an amount equal to the budget estimate, of
which $1,000,000 is for briefing personnel associated with the
incoming administration. No funding was requested or provided
in fiscal year 2012.

FEDERAL CITIZEN SERVICES FUND

Appropriations, 2012.................................... $34,100,000
Budget estimate, 2013................................... 31,751,000
Committee recommendation................................ 31,751,000

program description

The Federal Citizen Services Fund provides for the salaries
and expenses of the Office of Citizen Services and Innovative
Technologies [OCSIT]. OCSIT develops new ways for citizens,
businesses, other governments, and the media to easily obtain
information and services from the Government on the Web, via
email, in print, and over the telephone. OCSIT leads several
interagency groups to share best practices and develop
strategies for improving the way Government provides services
to the American public.
OCSIT provides information and services to the public
primarily through USA.gov and GobiernoUSA.gov, the official Web
portal of the U.S. Government. OCSIT also operates
pueblo.gsa.gov, consumeraction.gov and consumidor.gov,
webcontent.gov, and kids.gov Web sites. OCSIT provides direct
telephone (1-800-FED-INFO), email and online assistance to
citizens through the National Contact Center, and offers
comprehensive and cost-effective contact center solutions to
customer Federal agencies through the USA Services program.
OCSIT also coordinates the publication and distribution of
information through the Government Printing Office's Public
Documents Distribution Center in Pueblo, Colorado.
The Federal Citizen Services [FCS] Fund is financed from
annual appropriations to pay for the salaries and expenses of
OCSIT staff. Reimbursements from Federal agencies pay for the
direct costs of information services OCSIT provides on their
behalf. The FCS Fund also receives funding from user fees for
publications ordered by the public, payments from private
entities for services rendered, and gifts from the public. All
income is available without regard to fiscal year limitations,
but is subject to an annual aggregate expenditure limit as set
forth in appropriation acts.

committee recommendation

The Committee recommends $31,751,000 for the Federal
Citizen Services Fund, a decrease of $2,349,000 below the
fiscal year 2012 enacted level and the same as the budget
request. The appropriation will be augmented by reimbursements
from Federal agencies for distribution of consumer
publications, user fees from the public, and other income.

ADMINISTRATIVE PROVISIONS--GENERAL SERVICES ADMINISTRATION

(INCLUDING TRANSFERS OF FUNDS)

Section 520 authorizes GSA to use funds for the hire of
passenger motor vehicles.
Section 521 authorizes GSA to transfer funds within the
Federal buildings fund to meet program requirements.
Section 522 requires that the fiscal year 2014 budget
request meet certain standards.
Section 523 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 524 continues the provision that permits GSA to pay
small claims less than $250,000 made against the Government.
Section 525 provides that certain lease agreements must
conform to an approved prospectus.

Harry S Truman Scholarship Foundation

SALARIES AND EXPENSES

Appropriations, 2012.................................... $748,000
Budget estimate, 2013...................................................
Committee recommendation................................ 748,000

PROGRAM DESCRIPTION

The Harry S Truman Scholarship Foundation is an independent
agency established by Congress in 1975 (Public Law 93-642) to
encourage exceptional college students to pursue careers in
public service through the Truman Scholarship program. The
Truman Scholarship is a merit-based award available to college
juniors who plan to pursue careers in Government or elsewhere
in public service. Truman Scholars receive up to $30,000 for
graduate or professional school, participate in leadership
development activities, and have special opportunities for
internships and employment with the Federal Government.
The Foundation Trust Fund was established with a one-time
$30,000,000 appropriation in 1976. The authorizing legislation
directed that this endowment be invested solely in U.S.
Treasury Securities, the interest from which has funded the
Foundation's operating budget. With the decline in interest
rates, the Foundation has experienced a significant decline in
Federal financial support. From fiscal year 2002 to fiscal year
2011, despite having cut expenditures by 42 percent, annual
trust fund revenue has declined 51 percent. The Foundation
anticipates a budget deficit of $1,700,000 without the
requested appropriation.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $748,000 for
the Harry S Truman Scholarship Foundation. This amount is the
same as the fiscal year 2012 enacted level and $748,000 above
the budget request. The appropriation is provided to offset the
decline in trust fund revenues, to increase direct financial
support to scholars, to ensure compliance with Government audit
reporting requirements, and to invest in technology and
financial development activities.

Merit Systems Protection Board

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2012.................................... $42,603,000
Budget estimate, 2013................................... \1\40,993,000
Committee recommendation................................ 43,400,000

\1\Consistent with 5 U.S.C. 1204(k), the Merit Systems Protection Board
submitted an independent budget estimate to the Congress. The
independent request for fiscal year 2013 totaled $43,400,000.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Merit Systems Protection Board [MSPB] was established
by the Civil Service Reform Act of 1978. MSPB is an independent
quasi-judicial agency manifested to protect Federal merit
systems against partisan political and other prohibited
personnel practices and to ensure adequate protection for
employees against abuses by agency management.
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. The
intended results of MSPB's efforts are 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.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $43,400,000
for the Merit Systems Protection Board [MSPB], an increase of
$797,000 to the fiscal year 2012 enacted level. The
recommendation is equal to the MSPB's independent budget
request as authorized by 5 U.S.C. 1204(k) and is an increase of
$2,407,000 to the President's budget request. The Committee
makes available not more than $2,345,000 for adjudicating
retirement appeals through an appropriation from the trust fund
consistent with past practice.

Morris K. Udall and Stewart L. Udall Foundation

MORRIS K. UDALL AND STEWART L. UDALL TRUST FUND

Appropriations, 2012.................................... $2,200,000
Budget estimate, 2013................................... 2,200,000
Committee recommendation................................ 2,200,000

PROGRAM DESCRIPTION

The General Fund payment to the Morris K. Udall and Stewart
L. Udall Trust 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 and Stewart L. Udall Foundation. The
Foundation awards scholarships, fellowships, and grants, and
funds activities of the Udall Center.
The Morris K. Udall and Stewart L. Udall Foundation also
supports 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, provides Native
Americans with leadership and management training, and analyzes
policies relevant to tribes.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $2,200,000 for
the Morris K. Udall and Stewart L. Udall Trust Fund. This
amount is equal to both the fiscal year 2012 enacted level and
the budget request.

ENVIRONMENTAL DISPUTE RESOLUTION FUND

Appropriations, 2012.................................... $3,792,000
Budget estimate, 2013................................... 3,800,000
Committee recommendation................................ 3,800,000

PROGRAM DESCRIPTION

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 and Stewart L. Udall Foundation and serves as an
impartial, nonpartisan 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
together for discussion, and whether a third-party facilitator
or mediator might be helpful in assisting the parties in their
efforts to reach 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 professional.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $3,800,000 for
the Environmental Dispute Resolution Fund. This amount is an
increase of $8,000 to the fiscal year 2012 enacted level and is
equal to the budget request.

National Archives and Records Administration

The National Archives and Records Administration [NARA] is
the national recordkeeper, managing the Government's archives
and records, and operating the Presidential libraries. NARA is
an independent agency created by statute in 1934 and tasked
with the unique mission to identify, access, protect, preserve,
and make available for use the important documents and records
of all three branches of the Federal Government. NARA
administers the Information Security Oversight Office, is the
publisher of the Federal Register, and makes grants for
historical documentation through the National Historical
Publications and Records Commission. In addition, NARA is
charged with additional responsibilities including mediating
Freedom of Information Act disputes and coordinating controlled
unclassified information.

OPERATING EXPENSES

Appropriations, 2012.................................... $373,300,000
Budget estimate, 2013................................... 371,675,000
Committee recommendation................................ 371,675,000

PROGRAM DESCRIPTION

This account provides for basic operations dealing with
management of the Federal Government's archives and records,
operation of Presidential libraries, review for
declassification of classified security information, and other
duties.

COMMITTEE RECOMMENDATION

The Committee recommends $371,675,000 for operating
expenses of the National Archives and Records Administration
for fiscal year 2013. This amount is $1,625,000 below the
fiscal year 2012 enacted level and the same as the budget
request.
The Committee's recommendation supports initiatives to
strengthen NARA's record management leadership role; address
archival storage needs; continue to develop, build, and expand
the IT infrastructure to conduct the business of the National
Declassification Center established in Executive Order 13526;
operate and maintain the Electronic Records Archive [ERA]; and
improve research room holdings protection.
The Committee notes that security of NARA's collections and
holdings has been identified as a material weakness by the
Archivist and cited as a management challenge by the Inspector
General. The Committee directs and expects NARA to institute
and enforce effective inventory controls and adequate levels of
security within its facilities to reduce the risk of loss,
damage, or destruction of irreplaceable historic documents and
artifacts.
As the steward of an astronomical volume of temporary and
permanent agency records, the Committee strongly urges the
Archivist to continue to explore bar-coding and other
innovative alternatives for cataloging boxed materials
entrusted to NARA's care, institute enhanced quality controls,
regain accountability for the security of classified records in
its custody, and institute more stringent management controls
at the Washington National Records Center and any other
facilities in which NARA is the custodian of Federal records.
The Committee commends NARA's leadership in administering
the executive branch-wide Records Management Self-Assessment.
Based on the findings outlined in the assessments report issued
in April 2012, the Committee is disturbed that most Federal
agencies lack controls for their records management programs,
with records management staff exhibiting insufficient knowledge
and understanding of electronic records, and continuing poor
recordkeeping practices. Moreover, nearly one-quarter of
respondent agencies do not conduct records management training
for their senior officials. Given that records disposition,
training, compliance monitoring, and electronic records
management pose a challenge for agencies, the Committee looks
forward to NARA's work to develop and issue a Records
Management Directive required by the November 2011 Presidential
Memorandum on Managing Government Records.
The Committee believes that providing reliable access to
electronic records far into the future, regardless of
advancements in technology, is of utmost importance. The
Committee strongly urges NARA, as it operates and maintains the
ERA, to ensure effective and efficient preservation, appraisal,
scheduling, and routine transfer of electronic records by
Federal agencies. The Committee expects NARA to prioritize its
efforts to accelerate user adoption of the ERA system,
including providing instructional guidance and training
materials.

OFFICE OF INSPECTOR GENERAL

Appropriations, 2012.................................... $4,100,000
Budget estimate, 2013................................... 4,100,000
Committee recommendation................................ 4,100,000

PROGRAM DESCRIPTION

The mission of the Office of Inspector General [OIG] is to
ensure that NARA safeguards and preserves the records of our
Government while providing the American people with access to
the essential documentation of their rights and the actions of
their Government. The OIG accomplishes this by combating fraud,
waste, and abuse through high-quality objective audits and
investigations covering all aspects of agency operations at 45
facilities nationwide. The OIG also serves as an independent,
internal advocate for the economy, efficiency, and
effectiveness of NARA and its operations.

COMMITTEE RECOMMENDATION

The Committee recommends $4,100,000 for the Office of
Inspector General [OIG]. This amount is the same as the fiscal
year 2012 enacted level and the budget request. The Committee
supports a distinct account for the OIG in order to clearly
identify the resources necessary to staff and operate the
expanding mission-critical oversight and accountability
functions performed by the OIG to ensure responsible NARA
stewardship over public records.

REPAIRS AND RESTORATION

Appropriations, 2012.................................... $9,100,000
Budget estimate, 2013................................... 8,000,000
Committee recommendation................................ 8,000,000

PROGRAM DESCRIPTION

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 NARA to maintain its facilities in proper
condition for public visitors, researchers, and NARA employees,
and also maintain the structural integrity of the buildings.

COMMITTEE RECOMMENDATION

The Committee recommends $8,000,000 for the repairs and
restoration account. This amount is $1,100,000 below the fiscal
year 2012 enacted level and the same as the budget request.
The Committee appreciates NARA's submission of an update of
its comprehensive capital needs assessment for its entire
infrastructure of Presidential libraries and records
facilities, as part of the fiscal year 2013 budget submission
and urges NARA to include an appropriate level of funding for
repair of valuable historic Presidential libraries in the
fiscal year 2014 budget request.

NATIONAL HISTORICAL PUBLICATIONS AND RECORDS COMMISSION

GRANTS PROGRAM

Appropriations, 2012.................................... $5,000,000
Budget estimate, 2013................................... 3,000,000
Committee recommendation................................ 5,000,000

PROGRAM DESCRIPTION

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. Since 1964, the NHPRC has funded nearly
5,000 projects at local government archives, colleges and
universities, and other nonprofit institutions to facilitate
use of public records and other collections by scholars, family
and local historians, journalists, documentary filmmakers, and
many others.

COMMITTEE RECOMMENDATION

The Committee recommends $5,000,000 for the National
Historical Publications and Records Commission [NHPRC]. This
amount is the same as the fiscal year 2012 enacted level and
$2,000,000 above the budget request.
The Committee supports the central role the NHPRC program
plays in the preservation and dissemination of the Nation's
documentary heritage and its success in leveraging private
sector contributions.
The Committee notes that the funding provided will enable
NARA, through the NHPRC, to undertake a variety of initiatives,
including advancing archives preservation, access, and
digitization projects within the interlocking repositories of
historic records and hidden collections; ensuring public access
to some of the most important historical resources that are
maintained outside of Federal repositories; and digitizing
nationally significant historic records collections to
facilitate round-the-clock Internet availability.

National Credit Union Administration

central liquidity facility

program description

The National Credit Union Administration [NCUA] Central
Liquidity Facility [CLF] was created by the National Credit
Union Central Liquidity Facility Act (Public Law 95-630). The
CLF is a mixed-ownership Government corporation managed by the
National Credit Union Administration Board and owned by its
member credit unions.
The purpose of the CLF is to improve the general financial
stability of credit unions by meeting their seasonal and
emergency liquidity needs and thereby encourage savings,
support consumer and mortgage lending, and provide basic
financial resources to all segments of the economy. To become
eligible for CLF services, credit unions invest in the capital
stock of the CLF, and the facility uses the proceeds of such
investments and the proceeds of borrowed funds to meet the
liquidity needs of credit unions. The primary sources of funds
for the CLF are stock subscriptions from credit unions and
borrowings.
The CLF may borrow funds from any source, with the amount
of borrowing limited to 12 times the amount of subscribed
capital stock and surplus.
Loans are available to meet short-term requirements for
funds attributable to emergency outflows from managerial
difficulties or local economic downturns. Seasonal credit is
also provided to accommodate fluctuations caused by cyclical
changes in such areas as agriculture, education, and retail
business. Loans can also be made to offset protracted credit
problems caused by factors such as regional economic decline.

committee recommendation

The Committee recommends that lending through the CLF be
limited to the maximum level provided for by section
307(a)(4)(A) of the Federal Credit Union Act. This limitation
provides the NCUA maximum flexibility to assist with credit
unions' financial liquidity. The Committee also recommends the
budget request of limiting administrative expenses for the CLF
to $1,250,000 in fiscal year 2013.

COMMUNITY DEVELOPMENT REVOLVING LOAN FUND

Appropriations, 2012.................................... $1,247,000
Budget estimate, 2013................................... 1,187,000
Committee recommendation................................ 1,187,000

PROGRAM DESCRIPTION

The Community Development Revolving Loan Fund Program
[CDRLF] was established in 1979 to assist officially designated
``low-income'' credit unions in providing basic financial
services to low-income communities. Low-interest loans and
deposits are made available to assist these credit unions.
Loans or deposits are normally repaid in 5 years, although
shorter repayment periods may be considered. Technical
assistance grants [TAGs] are also available to low-income
credit unions for improving operations as well as addressing
safety and soundness issues. Credit unions use TAG funds for
specific initiatives, including taxpayer assistance, financial
education, home ownership initiatives, and training assistance.

COMMITTEE RECOMMENDATION

The Committee recommends $1,187,000 for technical
assistance grants to community development credit unions. This
funding level is equal to the budget request and $60,000 below
the fiscal year 2012 enacted level. The Committee expects the
CDRLF to continue making loans from available funds derived
from repaid loans and interest earned on previous loans to
designated credit unions.
The Committee supports NCUA's outreach efforts to
underserved rural and urban communities across America through
technical assistance grants provided within CDRLF. The
Committee encourages NCUA to continue its efforts to provide
financial education, particularly regarding consumer credit and
home mortgages, and to provide alternatives to predatory
lending services through targeted technical assistance grants
and support.

Office of Government Ethics

SALARIES AND EXPENSES

Appropriations, 2012.................................... $13,664,000
Budget estimate, 2013................................... 13,473,000
Committee recommendation................................ 20,164,000

PROGRAM DESCRIPTION

The Office of Government Ethics [OGE], a separate agency
within the executive branch, was established by the Ethics in
Government Act of 1978 (Public Law 95-521). The OGE is charged
by law to provide overall direction of executive branch
policies designed to prevent conflicts of interest and ensure
high-ethical standards for executive branch employers. The OGE
carries out these responsibilities by promulgating and
maintaining enforceable standards of ethical conduct for nearly
4 million civilian employees and uniformed service members in
more than 130 executive branch agencies and the White House;
overseeing a financial disclosure system that reaches 28,000
public and over 325,000 confidential filers; providing direct
education and training products to 5,700 ethics officials;
conducting outreach to the general public, the private sector,
and civil society; and sharing good practices with and
providing technical assistance to State, local, and foreign
governments and international organizations.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $20,164,000
for salaries and expenses of the OGE in fiscal year 2013. This
amount is $6,500,000 above the fiscal year 2012 enacted level
and $6,691,000 above the budget request.
The Committee's recommendation supports OGE's mission-
critical work to foster high-ethical standards for executive
branch employees, prevent conflicts of interest, and strengthen
the public's confidence that the Government's business is
conducted with impartiality and integrity. The OGE has
designated four priorities to advance these objectives in
fiscal year 2013: ensuring that the influx of new Presidential
appointees following the 2012 election are free of financial
conflicts of interest; modernizing government ethics laws,
regulations, and programs; harnessing technology to promote
transparency, training, and oversight; and promoting continuity
and succession planning in the executive branch ethics program.
In addition to the base funding, the Committee provides an
additional $6,500,000, to remain available until expended, to
help the OGE comply with its new statutory mandates under the
recently enacted Stop Trading on Congressional Knowledge
[STOCK] Act of 2012 (Public Law 112-105). The STOCK Act
established new requirements for executive branch ethics
programs, ethics officials, and the hundreds of thousands of
Federal employees who currently file either public or
confidential financial disclosure reports pursuant to the
Ethics in Government Act.
Implementation of the STOCK Act imposes pivotal additional
responsibilities on the OGE, most notably the mandate to
develop a centralized, publicly accessible, searchable, and
sortable electronic database of financial disclosure reports.
In addition to designing, developing, and deploying this system
before September 30, 2013, the OGE will face recurring costs
annually for operating the system as well as expenses for
routine maintenance. OGE's resource needs for the STOCK Act
database were not addressed in the fiscal year 2013 budget
submission due to the timing of law's enactment. The Committee
directs OGE officials to keep the Committee regularly informed
about developments and progress related to its STOCK Act
implementation activities.

Office of Personnel Management

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF TRUST FUNDS)

Appropriations, 2012.................................... $97,774,000
Budget estimate, 2013................................... 90,541,000
Committee recommendation................................ 90,541,000

PROGRAM DESCRIPTION

The Office of Personnel Management [OPM] was established by
Public Law 95-454, the Civil Service Reform Act of 1978,
enacted on October 13, 1978. OPM is responsible for management
of Federal human resources policy and oversight of the merit
civil service system. Although individual agencies are largely
responsible for personnel operations, OPM provides a
Governmentwide framework for human resources policy, advises
and assists agencies (often on a reimbursable basis) with
workforce planning and personnel matters, and ensures that
agency operations are consistent with requirements of law on
issues such as veterans preference and merit system compliance.
OPM oversees examination of applicants for employment in the
competitive service; issues regulations and policies on
recruitment, hiring, classification and pay, training, and
other aspects of personnel management; and manages the process
for personnel security and background checks for suitability
and national security clearances. OPM is also responsible for
administering the retirement, health benefits, and life
insurance programs affecting most Federal employees, retired
Federal employees, and their families and survivors.

COMMITTEE RECOMMENDATION

The Committee recommends a general fund appropriation of
$90,541,000 for the salaries and expenses of the Office of
Personnel Management. This amount is $7,233,000 less than the
fiscal year 2012 level and the same as the budget request.
The recommendation includes the requested funding for the
Enterprise Human Resources Integration project, the Human
Resources Line of Business project, and the workforce
acquisition initiative.
Retirement Processing.--The Committee is aware of OPM's
actions to address the backlog of retirement claims and is
supportive of expediting those efforts. OPM is directed to
inform the Committee of developments to improve processing
rates.
Retirement Modernization.--The Committee directs OPM to
continue providing reports and status update briefings, as
developments and milestones occur, and future plans are
determined.

limitation

(TRANSFER OF TRUST FUNDS)

Limitation, 2012........................................ $112,516,000
Budget estimate, 2013................................... 114,708,000
Committee recommendation................................ 114,708,000

PROGRAM DESCRIPTION

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, including the cost of automating the retirement
recordkeeping systems.

COMMITTEE RECOMMENDATION

The Committee recommends a limitation of $114,708,000,
which is $2,192,000 more than the fiscal year 2012 level and
the same as the budget request.

OFFICE OF INSPECTOR GENERAL

salaries and expenses

(INCLUDING TRANSFER OF TRUST FUNDS)

Appropriations, 2012.................................... $3,142,000
Budget estimate, 2013................................... 4,232,000
Committee recommendation................................ 4,232,000

PROGRAM DESCRIPTION

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,
healthcare 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
healthcare providers whose conduct may pose a threat to the
financial integrity of the program itself or to the well-being
of insurance program enrollees.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $4,232,000 for
salaries and expenses of the Office of Inspector General in
fiscal year 2013. This amount is $1,090,000 more than the
fiscal year 2012 enacted level and the same as the budget
request.

(LIMITATION ON TRANSFER FROM TRUST FUNDS)

Limitation, 2012........................................ $21,174,000
Budget estimate, 2013................................... 21,172,000
Committee recommendation................................ 21,172,000

COMMITTEE RECOMMENDATION

The Committee recommends a limitation on transfers from the
trust funds in support of the Office of Inspector General
activities totaling $21,172,000 for fiscal year 2013. This
amount is $2,000 less than the fiscal year 2012 enacted level,
and the same as the budget request.

government payment for annuitants, employees health benefits

Appropriations, 2012.................................... $10,862,000,000
Budget estimate, 2013................................... 10,818,000,000
Committee recommendation................................ 10,818,000,000

PROGRAM DESCRIPTION

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.

COMMITTEE RECOMMENDATION

The Committee recommends a mandatory appropriation of
$10,818,000,000 for Government payments for annuitants,
employees health benefits.

government payment for annuitants, employee life insurance

Appropriations, 2012.................................... $52,000,000
Budget estimate, 2013................................... 51,000,000
Committee recommendation................................ 51,000,000

PROGRAM DESCRIPTION

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 retirees' 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.

COMMITTEE RECOMMENDATION

The Committee recommends a mandatory appropriation of
$51,000,000 for the Government payment for annuitants, employee
life insurance.

payment to civil service retirement and disability fund

Appropriations, 2012.................................... $9,979,000,000
Budget estimate, 2013................................... 9,780,000,000
Committee recommendation................................ 9,780,000,000

PROGRAM DESCRIPTION

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.

COMMITTEE RECOMMENDATION

The Committee recommends a mandatory appropriation of
$9,780,000,000 for payment to the civil service retirement and
disability fund.

Office of Special Counsel

salaries and expenses

Appropriations, 2012.................................... $18,972,000
Budget estimate, 2013................................... 18,692,000
Committee recommendation................................ 18,972,000

PROGRAM DESCRIPTION

The U.S. Office of Special Counsel [OSC] provides a safe
channel for Federal employees to report waste, fraud, abuse,
and threats to public health and safety.
The OSC was first established on January 1, 1979. From 1979
until 1989, it operated as an autonomous investigative and
prosecutorial arm of the Merit Systems Protection Board [MSPB].
In 1989, Congress enacted the Whistleblower Protection Act
(Public Law 101-12), which made OSC an independent agency
within the executive branch. In 1994, the Uniformed Services
Employment and Reemployment Rights Act [USERRA] (Public Law
103-353) became law. It defined employment-related rights of
persons in connection with military service, prohibited
discrimination against them because of that service, and gave
OSC new authority to pursue remedies for violations by Federal
agencies.
The OSC continues to experience significant increases in
its caseload. In fiscal year 2011, the new case intake volume
surpassed 4,000 for the first time, representing an increase
over record levels of cases presented to the agency in the
previous fiscal year. Areas of significant growth included
prohibited personnel practice complaints as well as USERRA
cases, which nearly doubled in volume with the launch of a new
3-year demonstration project to help further protect veteran's
employment rights as authorized under the Veterans' Benefits
Act of 2010 (Public Law 111-275). Hatch Act cases and
whistleblower disclosure matters continued at elevated levels
in fiscal year 2011.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $18,972,000
for the OSC. This amount is the same as the fiscal year 2012
enacted level and $280,000 above the budget request.
The Committee acknowledges that the OSC continues to
experience dramatic growth in its caseload, as a result of
heightened awareness of the Hatch Act, a more vigorous focus on
complaints under USERRA, and actions under the Whistleblower
Protection Act. The Committee commends the OSC's efforts to
prevent heightened backlogs despite the escalating caseload in
fiscal year 2011. The Committee appreciates that processing
cases is resource-intensive, and that the 28-percent increase
in caseload growth that the OSC experienced over the previous 3
years is not expected to abate going forward, necessitating
sustained funding.

Postal Regulatory Commission

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2012.................................... $14,304,000
Budget estimate, 2013................................... 14,450,000
Committee recommendation................................ 14,450,000

PROGRAM DESCRIPTION

The Postal Regulatory Commission [PRC] is an independent
agency that has exercised regulatory oversight over the United
States Postal Service since its creation by the Postal
Reorganization Act of 1970. For over 3 decades, that oversight
consisted primarily of conducting public, on-the-record
hearings concerning proposed rates, mail classification, and
major service changes, and recommended decisions for action to
the Postal Service Board of Governors. The mission of the PRC
is to ensure transparency and accountability of the United
States Postal Service and foster a vital and efficient
universal mail system.
The Postal Accountability and Enhancement Act (Public Law
109-435) assigned significant responsibilities to the PRC.
These enhanced authorities include providing regulatory
oversight of the pricing of Postal Service products and
services, ensuring Postal Service transparency and
accountability, consulting on delivery service standards and
performance measures, consulting on international postal
policies, preventing cross-subsidization or other
anticompetitive postal practices, and serving as a forum to act
on complaints with postal products and services. The PRC
provides leadership and recommends policies that foster a
robust and viable postal system.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation, out of the
Postal Fund, of $14,450,000 for the Postal Regulatory
Commission. This amount is $146,000 above the fiscal year 2012
enacted level and the same as the budget request. The funds
will support 75 FTEs and enable the PRC to meet its mission of
ensuring transparency and accountability in postal operations,
services, and finances.
The Committee notes that in fiscal year 2013, the PRC will
be engaged in issuing advisory opinions and hearing cases of
major national policy import as the Postal Service adjusts to
changing mail usage; reviewing efforts of the Postal Service to
restructure its network; overseeing the exercise of pricing
flexibility; and fully evaluating the merits of new ideas for
innovative products and services that could boost postal
revenue, provide greater efficiencies, and produce cost
savings. With the Postal Service's announced intent to close or
consolidate potentially hundreds of mail processing facilities
and a significant number of postal retail facilities, the
Committee understands that the number of appeals to the PRC and
the volume of documents per docket as a result of these actions
can be expected to grow exponentially over the next few years.
The Committee appreciates the vital statutory role the PRC
plays in the Universal Postal Union, a specialized agency of
the United Nations, to support the Secretary of State in
foreign policy related to international postal services,
including treaties and conventions. The Committee urges the
PRC, which is funded from the Postal Service Fund which is
derived directly from postal rates and fees paid by postal
customers, to continue to optimize efficient use of its
resources, including exercising prudent decisionmaking for its
necessary travel expenditures.

Privacy and Civil Liberties Oversight Board

SALARIES AND EXPENSES

Appropriations, 2012.................................... $900,000
Budget estimate, 2013................................... 1,000,000
Committee recommendation................................ 1,000,000

PROGRAM DESCRIPTION

Recommended by the July 22, 2004 report of the National
Commission on Terrorist Attacks Upon the United States (the 9/
11 Commission), the Privacy and Civil Liberties Oversight Board
[PCLOB] was originally established through the Intelligence
Reform and Terrorism Prevention Act of 2004 (Public Law 108-
458). The PCLOB was made a component of the White House Office
within the Executive Office of the President.
Under the Implementing Recommendations of the 9/11
Commission Act of 2007 (Public Law 110-53), the PCLOB was
reconstituted as an independent agency within the executive
branch. The dual mission of the PCLOB is to: (1) analyze and
review actions the executive branch takes to protect the Nation
from terrorism, ensuring that the need for such actions is
balanced with the need to protect privacy and civil liberties;
and (2) ensure that liberty concerns are appropriately
considered in the development and implementation of laws,
regulations, and policies related to efforts to protect the
Nation against terrorism.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $1,000,000 for
the PCLOB. This amount is $100,000 above the fiscal year 2012
enacted level and the same as the budget request.
The Committee strongly supports the mission of the PCLOB.
The Committee notes that the original Board ceased operations
on January 30, 2008, with the intention that a new, more
independent Board would be instituted in its place. The
Committee is dismayed that now, over 4 years later, the new
PCLOB has not yet been reconstituted and staffed as required by
Public Law 110-53. The Committee is encouraged that nominees to
serve as members of the PCLOB are being considered in the
Senate and directs the PCLOB, once it is reconstituted, to
promptly provide a detailed budget justification to the
Committee.

Recovery Accountability and Transparency Board

SALARIES AND EXPENSES

Appropriations, 2012.................................... $28,350,000
Budget estimate, 2013................................... 31,500,000
Committee recommendation................................ 31,500,000

PROGRAM DESCRIPTION

The Recovery Accountability and Transparency Board
(Recovery Board) was established by the American Recovery and
Reinvestment Act of 2009 (Recovery Act) to ensure
accountability and transparency in the expenditure of Recovery
Act funds and to minimize fraud, waste, and mismanagement. The
Recovery Board analyzes Recovery Act projects for further in-
depth investigation or referral to Federal Inspectors General
and operates a fraud hotline to allow individuals to report
possible fraud, waste, and abuse. The Recovery Board also
collects information from recipients of Recovery Act funds,
compiles the information in a user-friendly format, and posts
the information on its public Web site, Recovery.gov.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $31,500,000
for the Recovery Board. The recommendation is $3,150,000 above
the fiscal year 2012 enacted level because the Recovery Board
was operating in part using prior year balances during that
year. The recommendation is equal to the budget request.

Securities and Exchange Commission

SALARIES AND EXPENSES

Appropriations, 2012.................................... $1,321,000,000
Budget estimate, 2013................................... 1,566,000,000
Committee recommendation................................ 1,566,000,000

PROGRAM DESCRIPTION

The Securities and Exchange Commission [SEC] is an
independent agency responsible for administering many of the
Nation's laws regulating the areas of securities and finance.
The mission of the SEC is to administer and enforce Federal
securities laws in order to protect investors, maintain fair,
honest, and efficient markets, and promote capital formation.
This includes ensuring full disclosure of financial
information, regulating the Nation's securities markets, and
preventing and policing fraud and malpractice in the securities
and financial markets. The strength of the American economy and
our Nation's financial markets is dependent upon investors'
confidence in the financial disclosures and statements released
by publicly traded companies.
As the investor's advocate, the SEC has responsibility for
approximately 35,000 entities, including direct oversight of
about 11,700 investment advisers, 9,700 mutual funds and
exchange traded funds, and close to 4,500 broker-dealers with
more than 160,000 branch offices. It is also responsible for
reviewing the disclosures and financial statements of more than
9,100 reporting companies, overseeing approximately 450
transfer agents, 15 national securities exchanges, eight active
clearing agencies, and nine nationally recognized statistical
rating organizations, as well as the Public Company Accounting
Oversight Board, the Financial Industry Regulatory Authority,
the Municipal Securities Rulemaking Board, and the Securities
Investor Protection Corporation. As a result of recent
statutory changes, smaller investment advisers will transition
from SEC to State oversight during 2012, but with the
corresponding addition of advisers to private funds, the SEC
will still oversee approximately 10,000 investment advisers
with about $44,000,000,000,000 in assets under management. The
SEC also acquired new oversight responsibilities with respect
to municipal advisors and entities registering with the SEC in
connection with the security-based swap regulatory regime.
The enactment of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank Act) (Public Law 111-203)
added significantly to SEC's responsibilities, including
bringing transparency and accountability to the over-the-
counter derivatives market; registering and overseeing hedge
fund and private equity advisers; enhanced supervision of
nationally recognized statistical rating organizations and
clearing agencies; heightened regulation of asset-backed
securities; and creation of a new whistleblower program.
With the enactment of the Jumpstart Our Business Startups
[JOBS] Act (Public Law 112-106) on April 5, 2012, the SEC is
tasked with additional new responsibilities to undertake
various initiatives, including rulemaking and studies touching
on capital formation, disclosure and registration requirements,
and implementing rules and methods relating to a new exemption
that will allow crowdfunding.

COMMITTEE RECOMMENDATION

The Committee recommends a total budget (obligational)
authority of $1,566,000,000 for the salaries and expenses of
the SEC, to be fully derived from $1,566,000,000 in new fee
collections. This total funding level is $145,000,000 above the
fiscal year 2012 enacted level and the same as the budget
request.
Enactment of the Dodd-Frank Act altered the budgetary
treatment of SEC fee receipts. For fiscal year 2012 and beyond,
transaction fees receipts are to be treated as offsetting
collections equal to the amount of the appropriation. In
addition, the law established a ``SEC Reserve Fund'' designated
for necessary functions as determined by the SEC and drawn from
registration fee receipts. The Committee reminds the SEC of its
obligation to notify Congress of the date, amount, and purpose
of any obligation from the Fund within 10 days of such
obligation.
Spending Plan.--The Committee directs the SEC to submit,
within 30 days of enactment, a detailed spending plan for the
allocation of appropriated funds displayed by discrete program,
project, and activity, including staffing projections,
specifying both FTEs and contractors, and planned investments
in information technology.
The Committee's recommended funding increase is expected to
allow the SEC to more aggressively police the securities
markets through examinations and enforcement actions. The
resources will help enhance risk-based oversight of the
investment management industry, expand inspections of credit
rating agencies, and permit the SEC to conduct more
comprehensive examinations, reach a broader universe of the
entities it regulates, and improve its ability to uncover and
prosecute fraud.
In addition, the recommended increase supports urgent,
critical investments in information technology upgrades so that
SEC staff are equipped with cutting edge automation support
tools to enhance their ability to promptly handle tips,
complaints, and referrals as well as to better identify
emerging risks using improved surveillance tools. The Committee
expects the SEC to implement key controls to effectively
safeguard the confidentiality, integrity, and availability of
its financial and sensitive information and systems.
The Committee strongly believes that fair and orderly
markets are essential to restore public confidence in and
bolster the integrity of our capital markets. The Committee
emphasizes that with this significant recommended funding
increase comes a concomitant responsibility on the part of the
SEC to aggressively safeguard the investing public. The SEC
must be vigilant in its enforcement of securities laws, and
failures to properly investigate and take appropriate action
will not be condoned.
Regulatory Reform Efforts.--While recognizing the many
challenges facing the SEC, the Committee is deeply concerned
with the SEC's lack of progress on the timely implementation of
key provisions of the Dodd-Frank Act. The Committee strongly
urges the SEC to act expeditiously to adopt strong and
effective regulatory proposals to reform the financial system,
consistent with Congress's intent in enacting the Dodd-Frank
Act.
Use of Independent Leasing Authority.--The Committee
understands that the SEC is pursuing corrective measures to
address the serious problems identified in the October 3, 2011,
GAO Decision B-322160 relating to the agency's exercise of its
independent leasing authority and adherence to budgetary
obligation recording practices for multiyear contracts over the
last 20 years. The Committee directs that, as part of the
spending plan to be submitted to the Committee no later than 30
days following enactment of this act, the SEC shall include a
detailed remedial action plan and timetable, reviewed before
its submission by the Inspector General, describing how the SEC
intends to rectify the Antideficiency Act violation and what
procedures it has instituted to ensure compliance with the
recording statute (31 U.S.C. 1501(a)(1)).
Regulatory Harmonization.--The Committee stresses that with
the enactment of the Dodd-Frank Act, it is all the more
critical for the SEC, in collaboration with the CFTC, to ensure
optimum harmonization in executing the respective oversight
responsibilities of each agency with respect to over-the-
counter derivative products. The Committee expects the SEC and
the CFTC to limit, to the greatest extent possible,
inconsistent regulation of similar products and entities that
could lead to opportunities for regulatory arbitrage. The
Committee continues to support the use of funds to support the
Joint SEC-CFTC Advisory Committee.
Portfolio Margining.--The Committee understands that
petitions are pending before the SEC and the CFTC to allow
portfolio margining of index credit default swaps and single
name credit default swaps. The Committee is concerned that the
SEC and the CFTC have not acted on these petitions, nor reached
agreement on portfolio margining in general. The Committee
encourages the agencies to work collaboratively and promptly
address the pending petitions.
Disclosure to Investors.--The Committee remains concerned
that American investors may be unwittingly investing in
companies or organizations with ties to countries that sponsor
terrorism or are linked to human rights violations. The
Committee believes that a company's association with sponsors
of terrorism and human rights abuses, no matter how large or
small, can have a materially adverse result on a public
company's operations, financial condition, earnings, and stock
prices, all of which can negatively affect the value of an
investment. Investors and consumers also have a reasonable
right to know what activities their investments or purchases
may be directly or indirectly supporting.
In order to protect American investors' savings and to
disclose these business relationships to investors, an Office
of Global Security Risk was established within the Division of
Corporation Finance. The Committee notes that under the Dodd-
Frank Act, public companies are required to provide disclosure
to the SEC in matters involving conflict minerals, extractive
industries, and mining safety matters. The Committee
understands that the SEC will be implementing the requirements,
as directed, in the coming months. The Committee expects the
work of the Office to remain a high priority during fiscal year
2013 and directs the SEC to continue to submit quarterly
reports on its activities.
The Committee is concerned that current SEC regulations
leave broad discretion to companies to decide if disclosure of
their activities is required with respect to business interests
in or with a state sponsor of terrorism. Companies are only
required to make disclosures in cases where the companies
judges the information is ``material'' to investors or is
necessary to ensure a required statement is not misleading. In
November 2007, the SEC issued a concept release seeking comment
about whether to develop a new mechanism to facilitate greater
access to companies' disclosures concerning their business
activities in or with state sponsors of terrorism. The comment
period ended on January 22, 2008, and the SEC has taken no
action since that time.
The Committee believes that business conducted by a
publicly traded company that could subject such company to
sanctions should be considered material and disclosed.
Therefore, the Committee directs the Commission to issue final
rules that require each issuer to disclose activities that may
subject it to sanctions under section 5 of the Iran Sanctions
Act of 1996.
Similarly, the human rights and sexual violence problems
plaguing mineral rich Democratic Republic of Congo are long
standing and well known. Industries using key minerals from
this region have been aware of the problem and a number have
already taken laudable steps to ensure their sourcing of
minerals avoids fueling further violence. The Committee expects
the clear congressional intent of section 1502 of the Dodd-
Frank Act to be implemented in a timely manner.
Climate Change Disclosure.--The Committee appreciates the
SEC's timely submission of the staff report as specified in
Public Law 112-74 on the quality of public company reporting in
response to the Commission's February 2010 guidance related to
climate change (75 Fed. Reg. 6290). The Committee directs the
SEC to submit to the Committee, no later than 90 days following
enactment of this act, an updated staff report focused on the
quality, specificity, and thoroughness of disclosure, with
particular attention to the adequacy of disclosure by large
companies in key sectors. The SEC is directed to include in the
report a full description of its own initiatives to carry out
the guidance, their efficacy, and the efforts it will implement
in fiscal year 2013. The Committee notes that, in addition to
reviewing disclosure in registrants' SEC filings, the guidance
specified that the SEC's Investor Advisory Committee would
consider climate change disclosure and provide advice to the
SEC and that the SEC would convene a public roundtable on
climate change disclosure. The Committee strongly urges that
the newly re-established Investor Advisory Committee evaluate
climate change disclosure, and that, during fiscal year 2013,
the SEC convene the roundtable as contemplated in the 2010
guidance.
JOBS Act Studies.--The Committee directs the SEC to study
and submit a report to the Committee, no later than 2 years
following enactment of this Act, on the impact of the JOBS Act
on capital formation, including but not limited to: (1) the
amount of capital raised under the new offering methods in the
JOBS Act; (2) the number of issuances and amount raised between
registered and unregistered offerings; (3) the number of
placement agents and brokers facilitating the new offering
methods; (4) the number of Federal, State, other actions taken
against issuers with respect to the new offering venues; and
(5) the costs associated with raising capital under the new
rules in comparison to the prior rules.
The Committee is concerned about press reports of shell
companies attempting to qualify as emerging growth companies in
order to evade securities laws to which they would otherwise be
subject, and directs the SEC to closely monitor the situation.
The Committee directs the SEC to study and submit a report
to the Committee, no later than 1 year following enactment of
this act, on whether and how the definition of the term ``held
of record'' in section 12(g)(5) of the Securities Exchange Act
of 1934 (15 U.S.C. 781(g)(5)) should be revised.
The Committee directs the SEC to study and submit a report
to the Committee no later than 2 years following enactment of
this act on whether there should be restrictions on the forms
of communication used in connection with general solicitation
and general advertising in Rule 506 offerings under Regulation
D.
Financial Literacy and Education.--Access to financial
education, resources, services, and protections promotes better
informed decisionmaking about investing and saving for long-
term financial security. The Committee applauds the Office of
Investor Education and Advocacy [OEIA] for its attention to and
consideration of the views and interests of retail investors
including improvements available electronically through
Investor.gov activities. The Committee encourages the OEIA to
continue its efforts, including financial literacy and
education initiatives, to protect and advance the interests of
retail investors. The Committee commends SEC's efforts to
expand its research on various aspects of investment
decisionmaking behavior to help enrich investor education
programs and materials.

Selective Service System

SALARIES AND EXPENSES

Appropriations, 2012.................................... $23,984,000
Budget estimate, 2013................................... 24,400,000
Committee recommendation................................ 24,400,000

PROGRAM DESCRIPTION

The Selective Service System is an independent Federal
agency, operating with permanent authorization under the
Military Selective Service Act (50 U.S.C. App. 451 et seq.).
The agency is not part of the Department of Defense, but its
basic mission is to be prepared to supply manpower to the Armed
Forces adequate to ensure the security of the United States
during a time of national emergency. Since 1973, the Armed
Forces have relied on volunteers to fill military manpower
requirements. However, the Selective Service System remains the
primary vehicle by which personnel will be brought into the
military if Congress and the President should authorize a
return to the draft.
In December 1987, Selective Service was tasked by law
(Public Law 100-180) to develop plans for a postmobilization
healthcare personnel delivery system capable of providing the
necessary critically skilled healthcare personnel to the Armed
Forces in time of emergency. An automated system capable of
handling mass registration and inductions is now complete,
together with necessary draft legislation, a draft Presidential
proclamation, prototype forms and letters, and other products.
These products will be available should the need arise. The
development of supplemental standby products, such as a
compliance system for healthcare personnel, continues using
very limited existing resources.

committee recommendation

The Committee recommends an appropriation of $24,400,000
for the Selective Service System. This amount is $416,000 above
the fiscal year 2012 enacted level and the same as the budget
request.
The Committee commends the efforts of the Selective Service
System during fiscal year 2011 to complete the comprehensive
migration from an obsolete computer mainframe to a smaller,
more responsive platform. The Committee is pleased to
acknowledge that during fiscal year 2011 the Selective Service
System reduced a 137-day backlog of public correspondence to a
more manageable 5-day turnaround, even as its registration
verification responsibilities increased. In addition, the
Selective Service System achieved recognition as the most
improved small agency in the Federal Government in the annual
Best Places to Work survey conducted by the Partnership for
Public Service.

Small Business Administration

Appropriations, 2012.................................... $918,771,000
Budget estimate, 2013................................... 1,115,381,000
Committee recommendation................................ 1,123,709,000

The Committee recommendation provides $1,123,709,000 for
the Small Business Administration [SBA]. The recommendation is
$204,938,000 above the fiscal year 2012 enacted level and
$8,328,000 above the budget request. The recommendation
includes $167,000,000 for the Disaster Loans Program Account
designated by Congress as disaster relief pursuant to the
Balanced Budget and Emergency Deficit Control Act of 1985.
Funding is distributed among the SBA appropriation accounts as
described below.

SALARIES AND EXPENSES

Appropriations, 2012.................................... $417,348,000
Budget estimate, 2013................................... 423,577,000
Committee recommendation................................ 445,499,000

The Committee recommendation provides $445,499,000 for
salaries and expenses of the SBA. The recommendation is
$28,151,000 above the fiscal year 2012 enacted level and is
$21,922,000 above the budget request.

Non-Credit Business Assistance Programs

Within the amounts made available under this heading, the
Committee recommendation provides $179,740,000 for the SBA
noncredit business assistance programs. The recommendation is
$20,627,000 above the budget request and $7,392,000 above the
2012 enacted level.
The Committee recommendations for noncredit business
assistance, by program, are displayed in the following table:

NON-CREDIT BUSINESS ASSISTANCE PROGRAMS
[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal year
Fiscal year 2013 budget Committee
2012 enacted estimate recommendation
----------------------------------------------------------------------------------------------------------------
Small Business Development Centers.............................. 112,500 101,093 114,750
SCORE........................................................... 7,000 6,300 7,140
Women's Business Centers........................................ 14,000 12,600 14,000
Women's Business Council........................................ 998 898 1,000
Microloan Technical Assistance.................................. 20,000 19,760 24,000
Veterans Programs............................................... 2,500 2,496 2,500
PRIME........................................................... 3,500 .............. ..............
Native American Outreach........................................ 1,250 850 1,250
7(j) Technical Assistance....................................... 3,100 2,790 3,100
HUBZone......................................................... 2,500 1,976 2,000
Entrepreneurial Development Initiative.......................... 5,000 3,350 5,000
Veterans Entrepreneurship Training.............................. .............. 7,000 5,000
-----------------------------------------------
Total, Non-Credit Business Assistance Programs............ 172,348 159,113 179,740
----------------------------------------------------------------------------------------------------------------

The Committee directs that the amounts provided for SBA's
Non-Credit Business Assistance Programs, as specified in the
table above, shall be administered in the same manner as
previous years and shall not be reduced, reallocated, or
reprogrammed to provide additional funds for other programs,
initiatives, or activities.
The Committee continues to support the Small Business
Development Center [SBDC] Program and recommends $114,750,000
for fiscal year 2013, $2,250,000 above the fiscal year 2012
enacted level and $13,657,000 above the budget request. The
SBDC network--which encompasses over 900 service centers across
the Nation--provides management and technical assistance to an
estimated 1.2 million small business owners and aspiring
entrepreneurs each year. As the economy struggles, SBDCs have
reported a significant increase in demand for their expertise
as businesses seek guidance on how to weather the economic
downturn and as newly unemployed Americans look for advice on
starting a small business as a new career path. Providing
support for SBDCs is more critical than ever as our economy
works to recover and grow.
The Committee recommends $24,000,000 for grants to
Microloan intermediaries under the Microloan program for
marketing, management, and technical assistance provided to
borrowers. An additional $4,000,000 is recommended under the
heading ``Business Loans Program Account'' to support estimated
lending volume of $25,000,000 under the Microloan program.
The Committee supports funding for veterans programs and
veterans business outreach centers and provides $2,500,000 for
veterans programs. When determining the allocation of the
funding, the Committee strongly encourages SBA to consider
centers with significant experience in conducting outreach to
veterans.
The Committee recommends $5,000,000 for SBA's
entrepreneurial development initiative. The Committee
encourages SBA to support nonprofit organizations that provide
business development services designed to accelerate industry
sectors built on regional assets under the initiative.

Operating Expenses

Within the amounts made available under this heading, the
Committee recommendation provides $265,759,000 for SBA's
operating expenses. The recommendation is $20,759,000 above the
2012 enacted level and $1,295,000 above the budget request.
Credit Risk Management.--The Committee recommends
$12,000,000 for SBA's Office of Credit Risk Management [OCRM].
In support of its mission to analyze and manage the risk of
SBA's estimated $75,000,000,000 loan portfolio, OCRM performs
performance analytics to identify and understand lender
performance trends and assess the quality of the overall loan
portfolio. The Committee finds that OCRM plays a key role in
eliminating waste, fraud, and abuse in SBA lending programs and
protecting taxpayer losses on loans by ensuring lenders comply
with procedures that mitigate the risk of loss under SBA's loan
programs.
The Committee is concerned about the quality of lender
oversight activities at SBA, particularly considering the
magnitude of SBA's loan portfolio, and notes that SBA's Office
of Inspector General [IG] continues to identify weaknesses in
SBA's lender oversight process. SBA loan programs rely on
numerous outside parties (e.g., private lenders, local economic
development organizations, nonprofit community lenders, and
venture capital investors) to complete loan transactions, and
many of SBA's loans are made by lenders to whom SBA has
delegated loan-making authority. For example, the SBA IG
reports that in fiscal year 2011, approximately 67 percent of
the dollars guaranteed under SBA's 7(a) program were made by
lenders using delegated authorities. The Committee concurs with
the SBA IG's finding that the risks inherent in delegated
lending require an effective oversight program to: (1) monitor
lender compliance with SBA policies and procedures; and (2)
take corrective action when a material noncompliance is
detected.
The Committee finds that credit risk management should be a
key tenet of SBA's efforts to administer efficient and
effective loan programs to ensure the best use of taxpayer
dollars. The Committee directs SBA to report to the Committee
within 90 days of enactment on the status of SBA's current
credit risk management capabilities and how those capabilities
can be strengthened. The report shall also include an analysis
of the advantages and disadvantages of changing SBA's
organizational structure so that OCRM is independent from SBA's
Office of Capital Access and the director of OCRM reports
directly to the SBA Administrator.
Finally, the Committee finds that the Loan and Lender
Monitoring System [L/LMS] is a vital component of the SBA's
technical capability to provide oversight of its largest
lending programs, the 7(a) and 504 loan programs. OCRM uses L/
LMS as a tool for managing the risk in the loan and lender
portfolios. The Committee directs SBA to continue utilizing L/
LMS to ensure that lenders are employing sound financial risk
management techniques to manage and monitor risk within their
SBA loan portfolios. The Committee directs SBA to maintain the
current capabilities and capacity of the L/LMS system and
encourages the agency to consider how updating or expanding the
system could improve lender oversight capabilities.
Major Information Technology Acquisition.--Within the
amounts recommended for SBA's operating expenses, the Committee
recommends $7,100,000 to continue development activities
related to the modernization of SBA's agency-wide loan
management and accounting system. Additional funding will be
contributed from amounts provided for the administrative
expenses of the Disaster Loans Program Account because the
modernization supports that program in addition to SBA's
business loan programs. The Committee expects that
appropriations provided for fiscal year 2013 will fulfill
development funding required for the modernized system.
Operation and maintenance costs for the new system will
continue in future fiscal years, consistent with other
information technology systems.
The Committee is pleased with SBA's decision to reformulate
the original planned modernization to lower costs, shorten the
time to completion, and reduce the risks associated with a
long-term acquisition. The fiscal year 2013 budget request
assumes that development costs under the new approach will
total $39,000,000, a savings of $117,000,000 from the original
budget of $156,000,000.
The Committee will continue to monitor progress on the
modernization due to the risk inherent in major Federal
information technology [IT] projects. The Government
Accountability Office [GAO] finds that ``Federal IT projects
too frequently incur numerous cost overruns and schedule
slippages while contributing little to mission-related
outcome'' (GAO 12-7). The Committee directs SBA to focus
modernization activities on activities identified by GAO as
common factors of successful Federal IT programs. In
particular, the Committee directs SBA to ensure, consistent
with GAO recommendations, that: (1) program officials actively
engage with stakeholders; (2) senior agency executives support
the program; (3) end users participate in testing of system
functionality prior to formal end user acceptance testing; and
(4) program officials maintain regular communication with
contractors.
The Committee directs SBA to continue to report quarterly
to the Committees on Appropriations summarizing the agency's
progress regarding the modernization effort. The Committee
directs that such reports shall include progress on time and
budget, both estimated and planned, beginning with the first
fiscal year of the modernization project. The Committee
emphasizes the need for such reports to include plain language
descriptions of the project in place of technical jargon.
Employee Ownership.--The Committee finds that employee
ownership protects jobs, promotes economic growth, supports
local economies, and is often a viable alternative for business
owners considering succession. The Committee directs SBA to
submit a report within 90 days of enactment on what SBA
programs can do to promote employee ownership through training,
education, and financing.

OFFICE OF INSPECTOR GENERAL

Appropriations, 2012.................................... $16,267,000
Budget estimate, 2013................................... 19,400,000
Committee recommendation................................ 19,400,000

The Committee recommendation provides $19,400,000 for the
Office of Inspector General. The recommendation is $3,133,000
above the fiscal year 2012 enacted level and is equal to the
budget request.
The Committee directs the Inspector General to continue
routine analysis and reporting on SBA's modernization of its
loan management and accounting systems, including acquisition,
contractor oversight, implementation, and progress regarding
budget and schedule.

OFFICE OF ADVOCACY

Appropriations, 2012.................................... $9,120,000
Budget estimate, 2013................................... 8,900,000
Committee recommendation................................ 9,150,000

The Office of Advocacy, an independent office within SBA,
solicits and represents the views, concerns, and interests of
small businesses before Congress, the White House, Federal
agencies, Federal courts, and State policymakers.
The Committee recommendation provides $9,150,000 for the
Office of Advocacy. The recommendation is $30,000 above the
fiscal year 2012 enacted level and $250,000 above the budget
request. The Committee directs that within funds provided, the
Office of Advocacy shall conduct a study, pursuant to section 3
of Public Law 112-29, on how changes in patent law have
impacted the ability of small businesses to obtain patents.
The Committee emphasizes the need for the Office of
Advocacy to be inclusive and transparent in soliciting and
incorporating the views of small businesses into the Office's
process for making recommendations and comments on Federal
policies, activities, rulemakings, and legislation.
The Committee directs the Office of Advocacy to submit a
report to the Committee within 60 days of enactment detailing
the process under which the Office solicits feedback from small
businesses and ensures that the Office's recommendations and
comments represent a balanced perspective on the views of
affected small business stakeholders.

BUSINESS LOANS PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2012.................................... $358,736,000
Budget estimate, 2013................................... 496,504,000
Committee recommendation................................ 482,660,000

The Committee recommendation provides $482,660,000. The
recommendation is $123,924,000 above the fiscal year 2012
enacted level and is $13,844,000 below the budget request due
to updated estimates of carryover balances.
The recommendation provides $145,060,000 for administrative
expenses, which may be transferred to and merged with SBA
salaries and expenses to cover the common overhead expenses
associated with the business loans programs.
The recommendation provides $4,000,000 for the Microloan
direct loan program to support lending volume estimated at
$25,000,000. An additional amount of $24,000,000 is recommended
under the heading ``Salaries and Expenses'' for technical
assistance grants to Microlending intermediaries. The Committee
directs SBA to continue to conduct outreach to existing
financial entities that may be well-suited to participate in
the Microloan program so that the program can grow and expand
access to microcapital across the country. SBA shall submit a
written report to the Committees on Appropriations within 90
days of enactment summarizing the agency's plans for expanding
the reach of the Microloan program.
The recommendation provides $333,600,000 to subsidize the
7(a) and 504 guaranteed loan programs. For a typical year,
estimated fees collected from lenders and borrowers fully
offset estimated Government payments on losses under the 7(a)
and 504 loan programs. However, the budget requests additional
funding for fiscal year 2013 because fee collections are not
expected to offset the cost to the Government for that year due
to changes in assumptions related to the economic downturn. The
recommended funding will allow SBA to continue operating the
7(a) and 504 loan programs in fiscal year 2013. The Committee
expects both programs to return to typical operation when the
economy recovers.

DISASTER LOANS PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2012.................................... $117,300,000
Budget estimate, 2013................................... 167,000,000
Committee recommendation................................ 167,000,000

The Committee recommends $167,000,000 for the
administrative costs of the Disaster Loans program, $49,700,000
above the fiscal year 2012 enacted level. The recommendation is
equal to the budget request and is designated by Congress as
disaster relief pursuant to the Balanced Budget and Emergency
Deficit Control Act of 1985. SBA is urged to promptly notify
the Committee of the status of disasters requiring loan
assistance.

ADMINISTRATIVE PROVISIONS--SMALL BUSINESS ADMINISTRATION

(INCLUDING TRANSFER OF FUNDS)

Section 530 continues a provision concerning transfer
authority and availability of funds.
Section 531 extends section 1122 of Public Law 111-240 for
1 year.

United States Postal Service

PAYMENT TO THE POSTAL SERVICE FUND

Appropriations, 2012.................................... $78,153,000
Budget estimate, 2013................................... 89,092,000
Committee recommendation................................ 89,092,000

PROGRAM DESCRIPTION

The Post Office dates back to 1775. It became the Postal
Service in 1971 as an independent establishment of the
executive branch of the United States Government. The Postal
Service's basic function and obligation is to provide postal
services to bind the Nation together through the personal,
educational, literary, and business correspondence of the
people. Its mission is to provide prompt, reliable, and
efficient services to patrons in all areas and render postal
services to all communities. The Postal Service does not depend
upon taxpayer subsidies through discretionary appropriations
for its operations but generates nearly all of its more than
$65,700,000,000 in annual gross operating revenue by charging
users of the mail for the costs of postage, products, and
services.

COMMITTEE RECOMMENDATION

The Committee recommends appropriations totaling
$89,092,000 for payment to the Postal Service Fund, an increase
of $10,939,000 above the fiscal year 2012 enacted level and the
same as the budget request.
This amount constitutes an advance appropriation for fiscal
year 2014 to compensate for revenue forgone on free mail for
the blind and for overseas voters. The Postal Service will have
$78,153,000 available for fiscal year 2013 pursuant to Public
Law 112-74, division C.
The Committee includes provisions in the bill that would
ensure 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 without reduction; and that
none of the funds provided be used to consolidate or close
small rural and other small post offices in fiscal year 2013.
Fiscal Health.--The Committee remains concerned about the
fragile fiscal health of the Postal Service. Decline in mail
volume continues to have a staggering impact on the Postal
Service, which released its most recent financial data on May
10, 2012. The Postal Service experienced net losses for the
second quarter ending March 31, 2012, of $3,200,000,000, up
$1,000,000,000 above the losses recorded in the same 3-month
span in 2011. Overall, the Postal Service had income of
$16,200,000,000 from January 2012 through March 2012, down a
fraction from the same period in 2011. The number of items
mailed during the second quarter of 2012 was 39,400,000,000
pieces, a 4-percent comparative decrease below 2011, much of it
in first-class mail.
Mail Delivery.--Since fiscal year 1981, annual
appropriations bills have each included language requiring 6-
day per week postal delivery. 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
does not include a provision that would alter this requirement
during fiscal year 2013.
Postal Retail Network.--The Committee acknowledges that on
May 9, 2012, the Postal Service announced its intent to
implement a strategy to balance the need for continued retail
services while achieving cost savings that will not result in
the wholesale shuttering of small and rural post offices. The
Committee understands that this plan, which will mean reduced
retail window hours in many communities, will undergo review by
the Postal Regulatory Commission [PRC] before any changes are
instituted, and that open community meetings will be scheduled
for public input on various possible service options. The
Committee appreciates the Postal Service's need to adjust its
infrastructure, but emphasizes that it is imperative to
evaluate the perspectives of affected postal customers in
determining the most viable solution for any community impacted
by the proposed changes. Furthermore, the Committee directs the
Postal Service to not shorten the timetable for implementing
retail postal service modifications as outlined in its
announcement.
The Committee understands that the Postal Service has
partnered with more than 70,000 alternate access locations such
as supermarkets, drug stores, ATMs, and other retailers to sell
postage and selected postal services. The online alternative at
usps.com allows customers to conveniently access, around the
clock, a diverse array of postal services, including tracking
and confirmation, address changes, reservation and renewal of
Post Office boxes, holding of mail, locating ZIP codes,
obtaining shipping information, and purchasing and printing
postage. The Committee strongly urges the Postal Service to
continue to expand the co-location of postal services and other
innovative approaches to serving communities, significantly
grow its inventory of Automated Postal Centers for self-service
access particularly in currently underserved areas, and widely
disseminate information through national advertising promoting
the benefits to postal customers of on-line and self-service
options.
Consolidation of Mail Processing Facilities.--The Postal
Service is developing and implementing a major realignment of
its postal facilities to achieve greater efficiencies, reduce
redundancies, and realize cost savings. To date, the Postal
Service has announced that it is studying the feasibility of
consolidating more than 200 of its over 400 mail processing
facilities. Many questions remain unanswered about how
consolidation of the processing and transportation networks
will impact current nationwide delivery service standards for
First-Class Mail, Periodicals, Package Services, and Standard
Mail, as well as how the postal workforce, mailers, customers,
and communities may be impacted by the realignment decisions.
The PRC is currently conducting a formal review to examine
the Postal Service's request for an advisory opinion on the
proposal to revise current service standards for First-Class
Mail, Periodicals, Package Services, and Standard Mail. As
proposed, the Postal Service would eliminate overnight service
for First-Class Mail and Periodicals, and would instead provide
2- and 3-day delivery service. These service standard changes
are contemplated in order to capture significant cost savings
from the proposed consolidation of a significant portion of the
mail processing and transportation networks. The Committee
urges the Postal Service to await the publication of the
advisory opinion before finalizing any decisions.
In addition to the consideration of the proposed changes to
delivery standards by the PRC, the Government Accountability
Office [GAO] has issued a series of reports evaluating the
Postal Service's realignment strategy and tracking the Postal
Service's response to recommendations. Congressional requests
have been made to GAO to follow-up on the recommendations,
determine what progress the Postal Service has made in
response, and conduct additional study of anticipated loss in
revenue from potential erosion of current delivery standards in
light of a significant wave of closures of processing
facilities. The Committee believes that these concerns should
be addressed prior to continuation of the facilities closure
proposal.
The Committee directs that the Postal Service shall not
execute, before fiscal year 2014, any decisions pertaining to
the closure or consolidation of any mail processing facility if
the Postal Service (1) did not close or consolidate such mail
processing facility before May 15, 2012; and (2) conducted an
area mail processing study with respect to the postal facility
after January 1, 2006, that was either terminated or concluded
that no significant cost savings or efficiencies would result
from closing or consolidating the mail processing facility,
unless an audit by the Postal Service Inspector General
concludes that the mail volume and operations of the facility
have changed since the date of termination or completion of an
area mail processing study to such an extent that the outcome
of the previous study is no longer valid; and an area mail
processing study concludes that the closing or consolidation of
the mail processing facility is justified, taking into
consideration the savings to the Postal Service and the impact
of the closing or consolidation on postal customers.
This will allow the Postal Service time to make any
necessary changes to respond to the PRC's advisory opinion and
GAO's follow-up report on Strategy for Realigning Mail
Processing Infrastructure, which is under development. The
Postal Service shall keep the Committee regularly informed of
its consolidation plans, and directs GAO to continue monitoring
these efforts.

OFFICE OF INSPECTOR GENERAL

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2012.................................... $241,468,000
Budget estimate, 2013................................... 241,468,000
Committee recommendation................................ 241,468,000

PROGRAM DESCRIPTION

The United States Postal Service Office of Inspector
General [OIG] is an independent organization established in
1996 and charged with reporting to Congress on the overall
efficiency, effectiveness, and economy of Postal Service
programs and operations. The OIG plays a key role in
maintaining the integrity and accountability of America's
postal service, its revenue and assets, and its employees. The
OIG meets this responsibility by conducting and supervising
objective and independent audits, investigations, and other
reviews.
In fiscal year 2011, the OIG issued 303 audit reports, of
which 68 indicated financial impact in the form of funds put to
better use, questioned costs, or potential revenue of
$77,997,000,000. The OIG completed 3,790 investigative cases,
secured 1,367 arrests and indictments, and referred 2,114
administrative actions. The Inspector General's investigations
of injury compensation fraud, financial fraud, and contract
fraud produced a total of $170,644,323 in cost avoidance during
fiscal year 2011. Cumulative fines, restitution, and recoveries
totaled $728,658,328. There were 111,507 hotline contacts.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation, out of the
Postal Fund, of $241,468,000 for the United States Postal
Service Office of Inspector General. This amount is the same as
the fiscal year 2012 funding level and the budget request. The
Committee appreciates the efforts of the Inspector General to
perform its exemplary audit and investigative work under severe
spending constraints.

United States Tax Court

salaries and expenses

Appropriations, 2012.................................... $51,079,000
Budget estimate, 2013................................... 53,103,429
Committee recommendation................................ 53,103,429

PROGRAM DESCRIPTION

The U.S. Tax Court is an independent judicial body in the
legislative branch established in 1969 under Article I of the
Constitution of the United States. The Court was created to
provide a national forum for the resolution of disputes between
taxpayers and the Internal Revenue Service, resolve cases
expeditiously while giving careful consideration to the merits
of each matter, and ensure the uniform interpretation of the
Internal Revenue Code. The matters over which the Court has
jurisdiction are set forth in various sections of title 26 of
the United States Code.
The Court is composed of 19 judges, one of whom the judges
elect as chief judge. Tax Court judges are appointed to 15-year
terms by the President with the advice and consent of the
Senate. 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. Decisions by the Court are
reviewable by the U.S. Courts of Appeals and, if certiorari is
granted, by the Supreme Court.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $53,103,429
for the U.S. Tax Court. This amount is $2,024,429 above the
fiscal year 2012 enacted level and the same as the budget
request.

STATEMENT CONCERNING GENERAL PROVISIONS

The Financial Services and General Government
appropriations bill includes 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 specifically covered by the
bill.
The bill contains a number of general provisions that have
been carried in this bill for many 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 as
administrative provisions immediately following that particular
agency's or department's appropriation accounts in the bill.
Those provisions that address activities or directives
affecting all of the agencies covered in this bill are
contained in title VI. General provisions that are
Governmentwide in scope are contained in title VII of this
bill. General provisions applicable to the District of Columbia
are contained in title VIII of this bill.

TITLE VI

GENERAL PROVISIONS--THIS ACT

Section 601 continues the provision prohibiting pay and
other expenses of non-Federal parties intervening in regulatory
or adjudicatory proceedings funded in this act.
Section 602 continues the provision prohibiting obligations
beyond the current fiscal year and prohibits transfers of funds
unless expressly provided.
Section 603 continues the provision limiting expenditures
for any consulting service through procurement contracts where
such expenditures are a matter of public record and available
for public inspection.
Section 604 continues the provision prohibiting funds in
this act from being transferred without express authority.
Section 605 continues the provision prohibiting the use of
funds to engage in activities that would prohibit the
enforcement of section 307 of the 1930 Tariff Act (46 Stat.
590).
Section 606 continues the provision prohibiting the use of
funds unless the recipient agrees to comply with the Buy
American Act.
Section 607 continues the provision prohibiting funding for
any person or entity convicted of violating the Buy American
Act.
Section 608 continues the provision authorizing the
reprogramming of funds and specifies the reprogramming
procedures for agencies funded by this act.
Section 609 continues the provision ensuring that 50
percent of unobligated balances may remain available for
certain purposes.
Section 610 continues the provision restricting the use of
funds for the Executive Office of the President to request
official background reports from the Federal Bureau of
Investigation without the written consent of the individual who
is the subject of the report.
Section 611 continues the provision ensuring that the cost
accounting standards shall not apply with respect to a contract
under the Federal Employees Health Benefits Program.
Section 612 continues the provision referencing nonforeign
area cost of living allowances.
Section 613 continues the provision waiving restrictions on
the purchase of nondomestic articles, materials, and supplies
in the case of acquisition by the Federal Government of
information technology.
Section 614 continues a provision on the acceptance by
agencies or commissions funded by this act, or by their
officers or employees, of payment or reimbursement for travel,
subsistence, or related expenses from any person or entity (or
their representative) that engages in activities regulated by
such agencies or commissions.
Section 615 continues a provision allowing the Public
Company Accounting Oversight Board to obligate amounts
collected from monetary penalties for the purpose of funding
scholarships for accounting students, as authorized by the
Sarbanes-Oxley Act of 2002 (Public Law 107-204).
Section 616 continues a provision permitting the Securities
and Exchange Commission and the Commodity Futures Trading
Commission to fund a joint advisory committee to advise on
emerging regulatory issues, notwithstanding section 708 of this
act.
Section 617 is a new provision that would prohibit the
conveyance of the headquarters building of the Federal Trade
Commission (located at 600 Pennsylvania Avenue, Northwest, in
the District of Columbia) to any entity unless it is in the
best interest of the taxpayer.
Section 618 continues the provision requiring certain
agencies to provide quarterly reports on unobligated prior year
fund balances.
Section 619 continues the provision requiring agencies
covered by this act with independent leasing authority to
consult with the General Services Administration before seeking
new office space or making alterations to existing office
space.
Section 620 continues the provision prohibiting expenditure
of funds to any corporation with certain unpaid Federal tax
liabilities unless the agency has considered suspension or
debarment of the corporation and made a determination that
further action is not necessary to protect the interests of the
Government.
Section 621 continues the provision prohibiting the
expenditure of funds to any corporation that was convicted of a
felony criminal violation within the preceding 24 months unless
the agency has considered suspension or debarment of the
corporation and made a determination that further action is not
necessary to protect the interests of the Government.
Section 622 is a new provision related to electronic filing
of campaign finance reports by Senators and candidates seeking
election to the Senate.
Section 623 is a new provision related to the Abraham
Lincoln Commemorative Coin Act (Public Law 109-285).
Section 624 is a new provision that provides limitations on
conference spending and requires agencies to make public
reports of conferences exceeding $100,000.

TITLE VII

GENERAL PROVISIONS--GOVERNMENTWIDE

Departments, Agencies, and Corporations

(INCLUDING TRANSFERS OF FUNDS)

Section 701 continues the provision requiring agencies to
administer a policy designed to ensure that all of its
workplaces are free from the illegal use of controlled
substances.
Section 702 continues the provision setting specific limits
on the cost of passenger vehicles purchased by the Federal
Government with exceptions for police, heavy duty, electric
hybrid, and clean fuels vehicles adding a new exception for
commercial vehicles that operate on emerging motor vehicle
technology.
Section 703 continues the provision allowing funds made
available to agencies for travel to also be used for quarters
allowances and cost-of-living allowances.
Section 704 continues the provision prohibiting the
government, with certain specified exceptions, from employing
non-U.S. citizens whose posts of duty would be in the
continental United States.
Section 705 continues the provision ensuring that agencies
will have authority to pay the General Services Administration
for space renovation and other services.
Section 706 continues the provision allowing agencies to
use receipts from the sale of materials for acquisition, waste
reduction and prevention, environmental management programs,
and other Federal employee programs.
Section 707 continues the provision providing that funds
for administrative expenses may be used to pay rent and other
service costs in the District of Columbia.
Section 708 continues the provision precluding interagency
financing of groups absent prior statutory approval.
Section 709 continues the provision prohibiting the use of
appropriated funds for enforcing regulations disapproved in
accordance with the applicable law of the United States.
Section 710 continues the provision limiting the amount
that can be used for redecoration of offices under certain
circumstances.
Section 711 continues the provision that permits
interagency funding of national security and emergency
preparedness telecommunications initiatives, which benefit
multiple Federal departments, agencies, and entities.
Section 712 continues the provision requiring agencies to
certify that a schedule C appointment was not created solely or
primarily to detail the employee to the White House.
Section 713 continues the provision prohibiting 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 714 continues the provision prohibiting Federal
training not directly related to the performance of official
duties.
Section 715 continues the provision prohibiting the
expenditure of funds for the implementation of agreements in
certain nondisclosure policies unless certain provisions are
included in the policies.
Section 716 continues the provision prohibiting the use of
appropriated funds for publicity or propaganda designed to
support or defeat legislation pending before Congress.
Section 717 continues the provision prohibiting the use of
appropriated funds by an agency to provide home addresses of
Federal employees to labor organizations, absent employee
authorization, or court order.
Section 718 continues the provision prohibiting the use of
appropriated funds to provide nonpublic information such as
mailing or telephone lists to any person or organization
outside of the Government without approval of the Committees on
Appropriations.
Section 719 continues the provision prohibiting the use of
appropriated funds for publicity or propaganda purposes within
the United States not authorized by Congress.
Section 720 continues the provision directing agencies'
employees to use official time in an honest effort to perform
official duties.
Section 721 continues the provision authorizing the use of
current fiscal year funds to finance an appropriate share of
the Federal Accounting Standards Advisory Board administrative
costs.
Section 722 continues a provision authorizing the transfer
of funds to the General Services Administration to finance an
appropriate share of various governmentwide boards and councils
under certain conditions.
Section 723 continues the provision authorizing
breastfeeding at any location in a Federal building or on
Federal property.
Section 724 continues the provision permitting interagency
funding of the National Science and Technology Council, and
requiring an OMB report on the budget and resources of the
Council.
Section 725 continues the 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 726 continues the provision prohibiting the use of
funds to monitor personal information relating to the use of
Federal Internet sites.
Section 727 continues the provision regarding contraceptive
coverage under the Federal Employees Health Benefits Plan.
Section 728 continues the provision recognizing that the
United States is committed to ensuring the health of the
Olympic, Pan American and Paralympic athletes, and supports the
strict adherence to antidoping in sport activities.
Section 729 continues the provision allowing departments
and agencies to use official travel funds to participate in the
fractional aircraft ownership pilot programs.
Section 730 continues the provision prohibiting funds for
implementation of OPM regulations limiting detailees to the
legislative branch and placing certain limitations on the Coast
Guard Congressional Fellowship program.
Section 731 continues the provision prohibiting the
expenditure of funds for the acquisition of certain additional
Federal law enforcement training facilities.
Section 732 continues a provision prohibiting funds for E-
Government initiatives sponsored by OMB prior to 15 days
following submission of a report to the House and Senate
Committees on Appropriations and receipt of the Committees'
approval to transfer funds. The section also prohibits funds
for new E-government initiatives without the explicit approval
of the Committees.
Section 733 continues a provision that prohibits the use of
funds to begin or announce a study or a public-private
competition regarding the conversion to contractor performance
of any function performed by civilian Federal employees
pursuant to Office of Management and Budget Circular A-76 or
any other administrative regulation, directive, or policy.
Section 734 continues a provision that prohibits executive
branch agencies from creating or funding prepackaged news
stories that are broadcast or distributed in the United States
unless specific notification conditions are met.
Section 735 continues the provision prohibiting funds used
in contravention of the Privacy Act, section 552a of title 5,
United States Code or section 522.224 of title 48 of the Code
of Federal Regulations.
Section 736 continues the provision requiring agencies to
evaluate the creditworthiness of an individual before issuing a
Government travel charge card and prohibits agencies from
issuing a Government travel charge card to individuals with an
unsatisfactory credit history.
Section 737 continues a provision requiring OMB to submit a
crosscut budget report on Great Lakes restoration activities
not later than 45 days after the submission of the budget of
the President to Congress.
Section 738 continues a provision prohibiting funds in this
or any other act from being used for a Federal contract with
inverted corporations, unless the contract preceded this act or
the Secretary grants a waiver in the interest of national
security.
Section 739 prohibits the Office of Personnel Management or
any other agency from using funds to implement regulations
changing the competitive areas under reductions-in-force for
Federal employees.
Section 740 makes a technical modification to a provision
enacted in fiscal year 2010 requiring agency compilation of
inventories of service contracts.
Section 741 directs OMB to issue guidance relating to the
ban on direct conversion to contract performance of work
performed by Federal employees, absent public-private
competition.
Section 742 continues a provision requiring agencies to
remit to the Civil Service Retirement and Disability Fund an
amount equal to the Office of Personnel Management's average
unit cost of processing a retirement claim for the preceding
fiscal year to be available to the Office of Personnel
Management for the cost of processing retirements of employees
who separate under Voluntary Early Retirement Authority or who
receive Voluntary Separation Incentive Payments.
Section 743 prohibits certain personnel management
constraints.
Section 744 is a new provision limiting the pay increases
of certain prevailing rate employees.
Section 745 is a new provision eliminating automatic
statutory pay increases for the Vice President, political
appointees paid under the executive schedule, ambassadors who
are not career members of the Foreign Service, politically
appointed (noncareer) Senior Executive Service employees, and
any other senior political appointee paid at or above level IV
of the executive schedule.
Section 746 is a new provision requiring Executive Branch
reporting to Congress on Automated External Defibrillators.
Section 747 is a new provision regarding the formula for
calculating the cap on the amount that the Federal Government
reimburses Federal contractors for executive compensation.
Section 748 declares the inapplicability of these general
provisions to title IV and title VIII.

TITLE VIII

GENERAL PROVISIONS--DISTRICT OF COLUMBIA

(INCLUDING TRANSFER OF FUNDS)

Section 801 continues the provision that appropriates funds
for refunding overpayments of taxes collected and for paying
settlements and judgments against the District of Columbia
government.
Section 802 continues the provision that prohibits the use
of the appropriation for publicity or propaganda purposes, and
permits the use of local funds for carrying out lobbying
activity.
Section 803 continues the provision that establishes
notification requirements for certain reprogramming and
transfer requirements with respect to funds and specifies a
timeframe for approval and execution of requests to reprogram
and transfer local funds.
Section 804 continues the provision that prohibits the use
of Federal funds for salaries, expenses, or other costs
associated with the offices of U.S. Senator or Representative
under section 4(d) of the D.C. Statehood Constitutional
Convention Initiatives of 1979.
Section 805 continues the provision that restricts the use
of official vehicles to official duties and not between a
residence and workplace, except under certain circumstances.
Section 806 continues the provision that prohibits the use
of appropriated funds by the District of Columbia Attorney
General or any other officer or entity of the District
government to provide assistance for any petition drive or
civil action which seeks to require Congress to provide for
voting representation in Congress for the District of Columbia.
Section 807 continues the provision that prohibits the use
of Federal funds in this act to distribute, for the purpose of
preventing the spread of blood borne pathogens, sterile needles
or syringes in any location that has been determined by local
public health officials or local law enforcement authorities to
be inappropriate for such distribution.
Section 808 continues the provision that includes a
``conscience clause'' on legislation that pertains to
contraceptive coverage by health insurance plans.
Section 809 continues the provision prohibiting use of
Federal funds to change the legality of marijuana use.
Section 810 restricts the use of Federal funds for
abortion, with certain exceptions.
Section 811 continues a provision requiring the submittal
of a revised appropriated funds budget that reflects the total
amount of the approved appropriation and realigns all budget
data for personal services and other-than-personal-services
with anticipated actual expenditures.
Section 812 continues a provision requiring the submittal
of a revised appropriated funds budget for the District of
Columbia Schools that aligns the schools' budgets to actual
enrollment.
Section 813 continues, with modification, a provision
authorizing the transfer of local funds to capital and
enterprise funds.
Section 814 continues and makes permanent a provision that
permits the Public Defender Service for the District of
Columbia to purchase professional liability insurance for its
attorneys, staff, and board members.
Section 815 is a new provision granting the District of
Columbia authority to spend local funds if the District's
budget has not been approved by Congress at the start of a
fiscal year.
Section 816 is a new provision allowing the expenditure of
funds by the District of Columbia under certain contingency fee
contracts for the provision of legal services.
Section 817 continues the provision which limits references
to ``this Act'' as referring to only this title.
Section 818 is a new section permitting the District of
Columbia to donate and the Joint Committee on the Library to
accept a statue of Frederick Douglass for placement in the
United States Capitol. All costs of the transportation and
placement of the statue would be borne by the District of
Columbia.

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 is filing an original bill, which is not
covered under this rule, but reports this information in the
spirit of full disclosure.
Items providing funding for fiscal year 2013 which lack
authorization are as follows:
Department of the Treasury
Departmental Offices
Department-wide Systems and Capital Investments
Office of the Inspector General
Inspector General for Tax Administration
Financial Crimes Enforcement Network
Fiscal Service
Alcohol and Tobacco Tax and Trade Bureau
Community Development Financial Institutions Fund
Internal Revenue Service:
Taxpayer Services
Enforcement
Operations Support
Business Systems Modernization
Executive Office of the President
Office of Management and Budget
Office of National Drug Control Policy
District of Columbia
Federal Payment for the District of Columbia Water and
Sewer Authority
Federal Payment for Judicial Commissions
Federal Payment for the D.C. National Guard
Independent Agencies
Administrative Conference of the United States
Election Assistance Commission
Federal Communications Commission
Federal Election Commission
Federal Trade Commission
General Services Administration:
E-Government Fund
Federal Buildings Fund\1\
---------------------------------------------------------------------------
\1\Deposits into the Federal Buildings Fund are available for real
property management and related activities in the amounts specified in
annual appropriations laws, as provided by 40 U.S.C. 592.
---------------------------------------------------------------------------
Merit Systems Protection Board
National Archives and Records Administration, National
Historical Publications and Records Commission
National Credit Union Administration: Community Development
Revolving Loan Fund
Office of Government Ethics
Office of Special Counsel

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

Pursuant to paragraph 7(c) of rule XXVI, on June 14, 2012,
the Committee ordered favorably reported favorably an original
bill (S. 3301) making appropriations for financial services and
general government for the fiscal year ending September 30,
2013, subject to amendment and subject to its spending
allocations, by a recorded vote of 16-14, a quorum being
present. The vote was as follows:
Yeas Nays
Chairman Inouye Mr. Cochran
Mr. Leahy Mr. McConnell
Mr. Harkin Mr. Shelby
Ms. Mikulski Mrs. Hutchison
Mr. Kohl Mr. Alexander
Mrs. Murray Ms. Collins
Mrs. Feinstein Ms. Murkowski
Mr. Durbin Mr. Graham
Mr. Johnson (SD) Mr. Kirk
Ms. Landrieu Mr. Coats
Mr. Reed Mr. Blunt
Mr. Lautenberg Mr. Moran
Mr. Nelson Mr. Hoeven
Mr. Pryor Mr. Johnson (WI)
Mr. Tester
Mr. Brown

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, changes in existing law
proposed to be made by the bill are shown as follows: existing
law to be omitted is enclosed in black brackets; new matter is
printed in italic; and existing law in which no change is
proposed is shown in roman.

TITLE 2--THE CONGRESS

CHAPTER 14--FEDERAL ELECTION CAMPAIGNS

SUBCHAPTER I--DISCLOSURE OF FEDERAL CAMPAIGN FUNDS

Sec. 432. Organization of political committees

(a) Treasurer; vacancy; official authorizations

* * * * * * *

[(g) Filing with and receipt of designations, statements, and
reports by Secretary of Senate; forwarding to
Commission; filing requirements with Commission;
public inspection and preservation of designations,
etc.

[(1) Designations, statements, and reports required to
be filed under this Act by a candidate for the office
of Senator, by the principal campaign committee of such
candidate, and by the Republican and Democratic
Senatorial Campaign Committees shall be filed with the
Secretary of the Senate, who shall receive such
designations, statements, and reports, as custodian for
the Commission.
[(2) The Secretary of the Senate shall forward a copy
of any designation, statement, or report filed with the
Secretary under this subsection to the Commission as
soon as possible (but no later than 2 working days)
after receiving such designation, statement, or report.
[(3) All designations, statements, and reports required
to be filed under this Act, except designations,
statements, and reports filed in accordance with
paragraph (1), shall be filed with the Commission.
[(4) The Secretary of the Senate shall make the
designations, statements, and reports received under
this subsection available for public inspection and
copying in the same manner as the Commission under
section 438(a)(4) of this title, and shall preserve
such designations, statements, and reports in the same
manner as the Commission under section 438(a)(5) of
this title.]

(g) Filing with the Commission.--All designations,
statements, and reports required to be filed under this Act
shall be filed with the Commission.
------

TITLE 10--ARMED FORCES

CHAPTER 137--PROCUREMENT GENERALLY

Sec. 2324. Allowable costs under defense contracts

(a) Indirect Cost That Violates a far Cost Principle.-- * *
*

* * * * * * *

(e) Specific Costs not Allowable.--(1) The following costs
are not allowable under a covered contract:
(A) The head of an agency shall require
that a covered contract provide that if the
contractor submits to the agency a proposal for
settlement of indirect costs incurred by the
contractor for any period after such costs have
been accrued and if that proposal includes the
submission of a cost which is unallowable
because the cost violates a cost principle in
the Federal Acquisition Regulation or
applicable agency supplement to the Federal
Acquisition Regulation, the cost shall be
disallowed.

* * * * * * *

(P) (i) Costs of compensation of any
contractor or subcontractor employee for a
fiscal year, regardless of the contract funding
source, to the extent that such compensation
exceeds [the benchmark compensation amount
determined applicable for the fiscal year by
the Administrator for Federal Procurement
Policy under section 1127 of title 41] the
annual amount paid to the President of the
United States in accordance with section 102 of
title 3, except that the Secretary of Defense
may establish one or more narrowly targeted
exceptions for scientists and engineers upon a
determination that such exceptions are needed
to ensure that the Department of Defense has
continued access to needed skills and
capabilities.
(ii) In this subparagraph:
(I) The term ``compensation'', in the case
of an employee, includes the total amount of
wages, salary, bonuses, and deferred
compensation for the employee for a fiscal
year, whether paid, earned, or otherwise
accruing, as recorded in an employer's cost
accounting records for the fiscal year.
``(II) The term ``fiscal year'' means a
fiscal year a contractor or subcontractor
establishes for accounting purposes.

TITLE 15--COMMERCE AND TRADE

Sec. 8004. State swimming pool safety grant program

(a) In general

* * * * * * *

(b) Eligibility

* * * * * * *

(1) * * *
(A) except as provided in section
8005(a)(1)(A)(i) of this title, applies to [all
swimming pools constructed after the date that
is 6 months after the date of enactment of the
Financial Services and General Government
Appropriations Act, 2012 in the State] all
swimming pools constructed in the State after
the date the State first submits an application
to the Commission for a grant under this
section; and

* * * * * * *

(e) Authorization of appropriations

[There are authorized to be appropriated to the Commission
for each of fiscal years 2009 and 2010 $2,000,000 to carry out
this section, such sums to remain available until expended.]
There is authorized to be appropriated to the Commission such
sums as may be necessary to carry out this section through
fiscal year 2014. Any amounts appropriated pursuant to this
subsection that remain unexpended and unobligated at the end of
[fiscal year 2012] fiscal year 2014 shall be retained by the
Commission and credited to the appropriations account that
funds enforcement of the Consumer Product Safety Act [15 U.S.C.
2051 et seq.].

Sec. 8005. Minimum State law requirements

(a) In general

(1) Safety standards

* * * * * * *

(A) the State requires by statute--
(i) the enclosure of all outdoor
residential pools and spas by barriers
to entry that will effectively prevent
small children from gaining
unsupervised and unfettered access to
the pool or spa; and
[(ii) that all pools and spas be
equipped with devices and systems
designed to prevent entrapment by pool
or spa drains;]
[(iii)] (ii) that pools and spas
built more than 1 year after the date
of the enactment of such statute have--
(I) more than 1 drain;
(II) 1 or more unblockable
drains; or
(III) no main drain; and
[(iv) 1 every swimming pool and spa
that has a main drain, other than an
unblockable drain, be equipped with a
drain cover that meets the consumer
product safety standard established by
section 8003 of this title; and
[(v) that periodic notification is
provided to owners of residential
swimming pools or spas about compliance
with the entrapment protection
standards of the ASME/ANSI A112.19.8
performance standard, or any successor
standard; and]

[(2) No liability inference associated with State
notifica-
tion requirement

[The minimum State law notification requirement
under paragraph (1)(A)(v) shall not be construed to
imply any liability on the part of a State related to
that requirement.]

[(3)] (2) Use of minimum State law requirements

The Commission--
(A) shall use the minimum State law
requirements under paragraph (1) solely for the
purpose of determining the eligibility of a
State for a grant under section 8004 of this
title; and
(B) may not enforce any requirement under
paragraph (1) except for the purpose of
determining the eligibility of a State for
agrant under section 8004 of this title.

[(4)] (3) Requirements to reflect national performance
standards and Commission guidelines

In establishing minimum State law requirements under
[paragraph (1)] paragraph (1)(B), the Commission shall--
------

TITLE 28--JUDICIARY AND JUDICIAL PROCEDURE

CHAPTER 5--DISTRICT COURTS

Sec. 133. Appointment and number of district judges

(a) * * *

Districts Judges

Alabama:...................................................
* * * * * *
*
[Arizona................................................... 12]
Arizona.................................................... 15
* * * * * *
*
[California:
[Northern................................................ 14
[Eastern................................................. 6
[Central................................................. 27
[Southern................................................ 13]
California:
Northern................................................. 14
Eastern.................................................. 10
Central.................................................. 28
Southern................................................. 13
* * * * * *
*
[Minnesota................................................. 7]
Minnesota.................................................. 8
[Texas:
[Northern................................................ 12
[Southern................................................ 20
[Eastern................................................. 7
[Western................................................. 15]
* * * * * *
*
Texas:
Northern................................................. 12
Southern................................................. 20
Eastern.................................................. 7
Western.................................................. 15

* * * * * * *
CHAPTER 123--FEES AND COSTS

Sec. 1914. District court; filing and miscellaneous fees; rules of
court

(a) The clerk of each district court shall require the parties
instituting any civil action, suit or proceeding in such court,
whether byoriginal process, removal or otherwise, to pay a
filing fee of [$350] $360, except that on application for a
writ of habeas corpus the filing fee shall be $5.
------

TITLE 31--MONEY AND FINANCE

CHAPTER 13--APPROPRIATIONS

SUBCHAPTER II--TRUST FUNDS AND REFUNDS

Sec. 1324. Refund of internal revenue collections

(a) * * *

* * * * * * *

(b) Disbursements may be made from the appropriation made by
this section only for--
(1) refunds to the limit of liability of an individual
tax account; and
(2) refunds due from credit provisions of the Internal
Revenue Code of 1986 (26 U.S.C. 1 et seq.) enacted
before January 1, 1978, or enacted by the Taxpayer
Relief Act of 1997, or from section 25A, 35, 36, 36A,
36B, 36C, 168(k)(4)(F), 53(e), 54B(h), 6428, or 6431,
of such Code, or due under section 3081(b)(2) of the
Housing Assistance Tax Act of 2008.
(c) Amounts appropriated under subsection (a) of this section
shall be administered, as appropriate, as if they were made
available through separate appropriations to the Secretary of
the Treasury, the Secretary of Homeland Security, and the
Attorney General. Funds so appropriated shall be available to
the Secretary of the Treasury for refunds by the Internal
Revenue Service of taxes collected pursuant to the Internal
Revenue Code and related interest; separately to the Secretary
of the Treasury for refunds and drawbacks of alcohol, tobacco,
firearms and ammunition taxes and refunds of other taxes which
may arise and any interest on such refunds, including payment
of claims for prior fiscal years; to the Secretary of Homeland
Security for refunds and drawbacks of receipts collected
pursuant to the customs revenue functions administered by the
Department of Homeland Security pursuant to delegation by the
Secretary of the Treasury and any interest on such refunds,
including payment of claims for prior fiscal years; and to the
Attorney General for refunds of firearms taxes and refunds of
other taxes which may arise and any interest on such refunds,
including payment of claims for prior fiscal years.

* * * * * * *

CHAPTER 37--CLAIMS

SUBCHAPTER III--FINANCIAL MANAGEMENT

Sec. 3711. Collection and compromise

(a) * * *

* * * * * * *

(i)(1) The head of an executive, judicial, or legislative
agency may sell, subject to section 504(b) of the Federal
Credit Reform Act of 1990 and using competitive procedures, any
nontax debt owed to the United States that is delinquent for
more than 90 days. Appropriate fees charged by a contractor to
assist in the conduct of a sale under this subsection may be
payable from the proceeds of the sale.

* * * * * * *

(5) This subsection is not intended to limit existingstatutory
authority of agencies to sellloans, debts, or other assets.
(j)(1) The Secretary of the Treasury (referred to in this
subsection as the ``Secretary'') may locate and recover assets
of the United States Government on behalf of any executive,
judicial, or legislative agency in accordance with such
procedures as the Secretary considers appropriate.
(2) Notwithstanding any other law concerning the depositing and
collection of Federal payments, including section 3302(b) of
this title, the Secretary may retain a portion of the amounts
recovered pursuant to this subsection to cover the Secretary's
costs associated with locating and recovering assets of the
United States. The amounts retained shall be deposited into an
account established in the Treasury to be known as the
``Unclaimed Assets Recovery Account'' (referred to in this
paragraph as the ``Account''). Amounts deposited in the Account
shall be available until expended to cover costs associated
with implementation and operation of the Secretary's asset
recovery program established under this subsection.
(3) To carry out the purposes of this subsection, the
Secretary may:
(A) Transfer to the Account from funds appropriated to
the Department of Treasury such amounts as may be
necessary to meet liabilities and obligations incurred
prior to the receipt of recovered assets; and
(B) Reimburse any appropriation from which funds were
transferred under this paragraph from the amounts
retained from recovered assets. Any reimbursement under
this paragraph shall occur during the period of
availability of the funds originally transferred from
an appropriation and shall be available for the same
time period and purposes as originally appropriated.
------

TITLE 41--PUBLIC CONTRACTS

DIVISION B--OFFICE OF FEDERAL PROCUREMENT POLICY

CHAPTER 11--ESTABLISHMENT OF OFFICE AND AUTHORITY AND FUNCTIONS OF
ADMINISTRATOR

[Sec. 1127. Determining benchmark compensation amount

[(a) Definitions.--In this section:
[(1) Benchmark Compensation Amount.--The term
``benchmark compensation amount'', for a fiscal year,
is the median amount of the compensation provided for
all senior executives of all benchmark corporations for
the most recent year for which data is available at the
time the determination under subsection (b) is made.
[(2) Benchmark Corporation.--The term ``benchmark
corporation'', with respect to a fiscal year, means a
publicly-owned United States corporation that has
annual sales in excess of $50,000,000 for the fiscal
year.
[(3) Compensation.--The term ``compensation'', for
a fiscal year, means the total amount of wages, salary,
bonuses, and deferred compensation for the fiscal year,
whether paid, earned, or otherwise accruing, as
recorded in an employer's cost accounting records for
the fiscal year.
[(4) Fiscal year.--The term ``fiscal year'' means a
fiscal year a contractor establishes for accounting
purposes.
[(5) publicly-owned united states corporation.--The
term ``publicly-owned United States corporation'' means
a corporation--
[(A) organized under the laws of a State of
the United States, the District of Columbia,
Puerto Rico, or a possession of the United
States; and
[(B) whose voting stock is publicly traded.
[(6) Senior executives.--The term ``senior
executives'', with respect to a contractor, means the 5
most highly compensated employees in management
positions at each home office and each segment of the
contractor.
[(b) Determining Benchmark Compensation Amount.--For
purposes of section 4304(a)(16) of this title and section
2324(e)(1)(P) of title 10, the Administrator shall review
commercially available surveys of executive compensation and,
on the basis of the results of the review, determine a
benchmark compensation amount to apply for each fiscal year. In
making determinations under this subsection, the Administrator
shall consult with the Director of the Defense Contract Audit
Agency and other officials of executive agencies as the
Administrator considers appropriate.

[Historical and Revision Notes

------------------------------------------------------------------------
[Source (U.S. [Source (Statutes
[Revised Section Code) at Large)
------------------------------------------------------------------------
[1127(a)(1)..................... 41:435(b). Pub. L. 93-400,
Sec. 39, as added
Pub. L. 105-85,
title VIII, Sec.
808(c)(1), Nov.
18, 1997, 111
Stat. 1837; Pub.
L. 105-261, title
VIII, Sec.
804(c)(1), Oct.
17, 1998, 112
Stat. 2083.]
[1127(a)(2)..................... 41:435(c)(3).
[1127(a)(3)..................... 41:435(c)(1).
[1127(a)(4)..................... 41:435(c)(5).
[1127(a)(5)..................... 41:435(c)(4).
[1127(a)(6)..................... 41:435(c)(2).
[1127(b)]....................... 41:435(a).]
------------------------------------------------------------------------

* * * * * * *
CHAPTER 43--ALLOWABLE COSTS

Sec. 4304. Specific costs not allowable

(a) Specific Costs.-- * * *
(1) * * *

* * * * * * *

[(16) Costs of compensation of senior executives of
contractors for a fiscal year, regardless of the
contract funding source, to the extent that the
compensation exceeds the benchmark compensation amount
determined applicable for the fiscal year by the
Administrator under section 1127 of this title.]
(16) Costs of compensation of any contractor or
subcontractor employee for a fiscal year, regardless of
the contract funding source, to the extent that such
compensation exceeds the annual amount paid to the
President of the United States in accordance with
section 102 of title 3, except that the head of an
executive agency may establish one or more narrowly
targeted exceptions for scientists, engineers, and
other specialist positions upon a determination that
such exceptions are needed to ensure that the executive
agency has continued access to needed skills and
capabilities.
------

JUDICIAL IMPROVEMENTS ACT, 1990, PUBLIC LAW 101-650

TITLE II--FEDERAL JUDGESHIPS

SEC. 203. DISTRICT JUDGES FOR THE DISTRICT COURTS.

(a) * * *

* * * * * * *

Except with respect to the district of Kansas, the western
district of Michigan, the eastern district of Pennsylvania, the
district of Hawaii, and the northern district of Ohio, the
first vacancy in the office of district judge in each of the
judicial districts named in this subsection, occurring 10 years
and six months or more after the confirmation date of the judge
named to fill the temporary judgeship created by this
subsection, shall not be filled. The first vacancy in the
office of district judge in the district of Kansas occurring
[21 years] 22 years and six months or more after the
confirmation date of the judge named to fill the temporary
judgeship created for such district under this subsection,
shall not be filled. The first vacancy in the office of
district judge in the western district of Michigan, occurring
after December 1, 1995, shall not be filled. The first vacancy
in the office of district judge in the eastern district of
Pennsylvania, occurring 5 years or more after the confirmation
date of the judge named to fill the temporary judgeship created
for such district under this subsection, shall not be filled.
The first vacancy in the office of district judge in the
northern district of Ohio occurring 19 years or more after the
confirmation date of the judge named to fill the temporary
judgeship created under this subsection shall not be filled.
The first vacancy in the office of the district judge in the
district of Hawaii occurring [18 years] 19 years and six months
or more after the confirmation date of the judge named to fill
the temporary judgeship created under this subsection shall not
be filled. For districts named in this subsection for which
multiple judgeships are created by this Act, the last of those
judgeships filled shall be the judgeships created under this
section.
------

DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE JUDICIARY, AND RELATED
AGENCICES APPROPRIATIONS ACT, 1998, PUBLIC LAW 105-119

TITLE I--DEPARTMENT OF JUSTICE

General Provisions--Department of Justice

Sec. 122. (a) * * *

* * * * * * *

(g)(1) Notwithstanding any other provision of law and subject
to paragraph (2), the Secretary of the Treasury is authorized
to establish, for a period of [14 years] 16 years from date of
enactment of this provision, a personnel management
demonstration project providing for the compensation and
performance management of not more than a combined total of 950
employees who fill critical scientific, technical, engineering,
intelligence analyst, language translator, and medical
positions in the Bureau of Alcohol, Tobacco and Firearms.
------

21ST CENTURY DEPARTMENT OF JUSTICE APPROPRIATIONS AUTHORIZATION ACT,
PUBLIC LAW 107-273

TITLE III--MISCELLANEOUS

SEC. 312. ADDITIONAL FEDERAL JUDGESHIPS.

(a) Permanent District Judges for the District Courts.--

* * * * * * *

(c) Temporary Judgeships.--
(1) In general.-- * * *
(2) Vacancies not filled.--The first vacancy in the
office of district judge in each of the offices of
district judge authorized by this subsection, occurring
10 years and six months or more after the confirmation
date of the judge named to fill the temporary district
judgeship created in the applicable district by this
subsection, shall not be filled.
------

ENSURING NEEDED HELP ARRIVES NEAR CALLERS EMPLOYING 911 ACT, 2004,
PUBLIC LAW 108-494

TITLE III--UNIVERSAL SERVICE

SEC. 302. APPLICATION OF CERTAIN TITLE 31 PROVISIONS TO UNIVERSAL
SERVICE FUND.

(a) In General.--During the period beginning on the date of
enactment of this Act and ending on [December 31, 2013]
December 31, 2014, section 1341 and subchapter II of chapter 15
of title 31, United States Code, do not apply--

* * * * * * *

(b) Post-2005 Fulfillment of Protected Obligations.--
Section 1341 and subchapter II of chapter 15 of title 31,
United States Code, do not apply after [December 31, 2013]
December 31, 2014, to an expenditure or obligation described in
subsection (a)(2) made or authorized during the period
described in subsection (a).
------

ABRAHAM LINCOLN COMMEMORATIVE COIN ACT, PUBLIC LAW 109-285

SEC. 7. SURCHARGES.

(a) In General.-- * * *
(b) Distribution.--[Subject to section 5134(f)(1), title
31, United States Code, all surcharges] All surcharges received
by the Secretary from the sale of coins issued under this Act
shall be promptly paid by the Secretary to the Abraham Lincoln
Bicentennial [Commission] Foundation to further the work of the
[Commission] Foundation. Payment of surcharges under this Act
shall be subject to subsection (f)(1) of section 5134 of title
31, United States Code, except that, for purposes of this Act--
(1) subparagraph (A)(ii) of that subsection (f)(1)
shall be read as follows:
``(ii) the designated recipient
organization submits an audited
financial statement that demonstrates,
to the satisfaction of the Secretary,
that, with respect to all projects or
purposes for which the proceeds of such
surcharge may be used, the organization
has raised funds from private sources
for such projects and purposes.''
(2) subparagraph (B) of that subsection (f)(1)
shall be read by striking ``2-year period'' in the
matter preceding clause (i) and inserting ``3-year and
9 month period.''
(c) Audits.--The Abraham Lincoln Bicentennial [Commission]
Foundation shall be subject to the audit requirements of
section 5134(f)(2) of title 31, United States Code.
------

CONSOLIDATED APPROPRIATIONS ACT, 2010, PUBLIC LAW 111-117

Sec. 743. (a) Service Contract Inventory Requirement.--

* * * * * * *

(e) Review and Planning Requirements.-- * * *
(1) * * *
(2) ensure that--
(A) * * *
(B) [the agency is giving special
management attention to functions that are
closely associated with inherently governmental
functions;] to the maximum extent practicable,
the agency is not using contractor employees to
perform any functions closely associated with
inherently governmental functions;
------

SMALL BUSINESS JOBS ACT, 2010, PUBLIC LAW 111-240

TITLE I--SMALL BUSINESSES

Subtitle A--Small Business Access to Credit

PART II--SMALL BUSINESS ACCESS TO CAPITAL

SEC. 1122. LOW-INTEREST REFINANCING UNDER THE LOCAL DEVELOPMENT
BUSINESS LOAN PROGRAM.

(a) Refinancing.-- * * *
(b) Prospective Repeal.--Effective [2 years] 3 years after
the date of enactment of this Act, section 502(7) of the Small
Business Investment Act of 1958 (15 U.S.C. 696(7)) is amended
by striking subparagraph (C).
------

DISTRICT OF COLUMBIA HOME RULE ACT

TITLE IV--THE DISTRICT CHARTER

PART D--DISTRICT BUDGET AND FINANCIAL MANAGEMENT

Subpart 1--Budget and Financial Management

ENACTMENT OF APPROPRIATIONS BY CONGRESS

SEC. 446. [D.C. Official Code Sec. 1-204.46] The Council,
within 56 calendar days after receipt of the budget proposal
from the Mayor, and after public hearing, shall by act adopt
the annual budget for the District of Columbia government. Any
supplements thereto shall also be adopted by act by the Council
after public hearing. Such budget so adopted shall be submitted
by the Mayor to the President for transmission by him to the
Congress. Except as provided in section 445A(b), section
467(d), section 471(c), section 472(d)(2), section 475(e)(2),
section 483(d), and section 490(f), (g), (h)(3), and (i)(3),
[D.C. Official Code Sec. Sec. 1-204.45a(b), Sec. 1-204.67(d),
Sec. 1-204.71(c), Sec. 1-204.72(d)(2), Sec. 1-204.75(e)(2),
Sec. 1-204.83(d), and subsections (f), (g), (h)(3), and (i)(3)
of Sec. Sec. 1-204.90] no amount may be obligated or expended
by any officer or employee of the District of Columbia
government unless such amount has been approved by Act of
Congress, and then only according to such Act: Provided, That,
notwithstanding any other provision of this Act, effective for
fiscal year 2013, and for each succeeding fiscal year, during a
period in which there is an absence of a Federal appropriations
Act authorizing the expenditure of District of Columbia local
funds, the District of Columbia may obligate and expend local
funds for programs and activities at the rate set forth in the
Budget Request Act adopted by the Council, or a reprogramming
adopted pursuant to this section. Notwithstanding any other
provision of this Act, the Mayor shall not transmit any annual
budget or amendments or supplements thereto, to the President
of the United States until the completion of the budget
procedures contained in this Act. After the adoption of the
annual budget for a fiscal year (beginning with the annual
budget for fiscal year 1995), no reprogramming of amounts in
the budget may occur unless the Mayor submits to the Council a
request for such reprogramming and the Council approves the
request, but only if any additional expenditures provided under
such request for an activity are offset by reductions in
expenditures for another activity.

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 in Committee Amount in
allocation bill allocation bill
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee allocations
to its subcommittees of amounts in the budget resolution
for 2013: Subcommittee on Financial Services and General
Government:
Mandatory............................................... 21,240 21,240 21,234 \1\21,234
Discretionary........................................... 22,991 23,158 25,581 \1\25,710
Security............................................ 25 25 NA NA
Nonsecurity......................................... 22,966 23,133 NA NA
Projections of outlays associated with the recommendation:
2013.................................................... ........... ........... ........... \2\40,484
2014.................................................... ........... ........... ........... 3,721
2015.................................................... ........... ........... ........... 626
2016.................................................... ........... ........... ........... 69
2017 and future years................................... ........... ........... ........... -49
Financial assistance to State and local governments for NA 385 NA 463
2013.......................................................

----------------------------------------------------------------------------------------------------------------
\1\Includes outlays from prior-year budget authority.
\2\Excludes outlays from prior-year budget authority.

NA: Not applicable.

Note.--Consistent with the funding recommended in the bill for disaster funding and in accordance with section
251(b)(2)(D) of the BBEDCA and section 106 of the Deficit Control Act of 2011, the Committee anticipates that
the Budget Committee will file a revised section 302(a) allocation for the Committee on Appropriations
reflecting an upward adjustment of $167,000,000 in budget authority plus associated outlays.

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2012 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL
YEAR 2013
[In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Senate Committee recommendation
compared with (+ or -)
Item 2012 Budget estimate Committee ---------------------------------
appropriation recommendation 2013
appropriation Budget estimate
--------------------------------------------------------------------------------------------------------------------------------------------------------
TITLE I--DEPARTMENT OF THE TREASURY

Departmental Offices

Salaries and expenses.............................................. 308,388 301,216 301,216 -7,172 ...............
Department-wide systems and capital investments programs........... ............... 7,108 7,108 +7,108 ...............
Office of Inspector General........................................ 29,641 28,593 29,641 ............... +1,048
Treasury Inspector General for Tax Administration.................. 151,696 153,834 153,834 +2,138 ...............
Special Inspector General for TARP................................. 41,800 40,225 40,225 -1,575 ...............
Financial Crimes Enforcement Network............................... 110,788 102,407 108,307 -2,481 +5,900
Treasury forfeiture fund (rescission).............................. -950,000 -830,000 -950,000 ............... -120,000
------------------------------------------------------------------------------------
Total, Departmental Offices.................................. -307,687 -196,617 -309,669 -1,982 -113,052

Financial Management Service....................................... 217,805 ............... ............... -217,805 ...............
Alcohol and Tobacco Tax and Trade Bureau........................... 99,878 96,786 100,378 +500 +3,592
Bureau of the Public Debt.......................................... 165,635 ............... ............... -165,635 ...............
Fiscal service..................................................... ............... 359,531 359,531 +359,531 ...............

Community development financial institutions fund program account.. 221,000 221,000 233,000 +12,000 +12,000
Payment of government losses in shipment........................... 2,000 2,000 2,000 ............... ...............
------------------------------------------------------------------------------------
Total, Department of the Treasury, non-IRS................... 398,631 482,700 385,240 -13,391 -97,460

Internal Revenue Service

Taxpayer services.................................................. 2,239,703 2,253,133 2,253,133 +13,430 ...............

Enforcement........................................................ 5,299,367 5,424,706 5,611,530 +312,163 +186,824
Enhanced tax enforcement activities............................ ............... 276,964 ............... ............... -276,964
------------------------------------------------------------------------------------
Subtotal..................................................... 5,299,367 5,701,670 5,611,530 +312,163 -90,140

Operations support................................................. 3,947,416 4,062,136 4,324,211 +376,795 +262,075
Enhanced tax enforcement activities............................ ............... 414,064 ............... ............... -414,064
------------------------------------------------------------------------------------
Subtotal..................................................... 3,947,416 4,476,200 4,324,211 +376,795 -151,989

Business systems modernization..................................... 330,210 330,210 330,210 ............... ...............
------------------------------------------------------------------------------------
Total, Internal Revenue Service.............................. 11,816,696 12,761,213 12,519,084 +702,388 -242,129
====================================================================================
Total, title I, Department of the Treasury................... 12,215,327 13,243,913 12,904,324 +688,997 -339,589
Appropriations........................................... (13,165,327) (13,382,885) (13,854,324) (+688,997) (+471,439)
Rescissions.............................................. (-950,000) (-830,000) (-950,000) ............... (-120,000)
====================================================================================
TITLE II--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED
TO THE PRESIDENT

The White House

Salaries and expenses.............................................. 56,974 56,974 56,974 ............... ...............
Compensation of the President.................................. 450 450 450 ............... ...............
------------------------------------------------------------------------------------
Subtotal..................................................... 57,424 57,424 57,424 ............... ...............

Executive Residence at the White House:
Operating expenses............................................. 13,425 13,200 13,200 -225 ...............
White House repair and restoration............................. 750 750 750 ............... ...............
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Subtotal..................................................... 14,175 13,950 13,950 -225 ...............

Council of Economic Advisers....................................... 4,192 4,192 4,192 ............... ...............
National Security Council and Homeland Security Council............ 13,048 13,048 13,048 ............... ...............
Office of Administration........................................... 112,952 114,952 114,952 +2,000 ...............
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Total, The White House....................................... 201,791 203,566 203,566 +1,775 ...............

Office of Management and Budget.................................... 89,456 91,542 91,542 +2,086 ...............

Office of National Drug Control Policy

Salaries and expenses.............................................. 24,500 23,413 24,500 ............... +1,087
Rescission..................................................... -11,328 ............... ............... +11,328 ...............
High intensity drug trafficking areas program...................... 238,522 200,000 238,522 ............... +38,522
Other Federal drug control programs................................ 105,550 118,600 128,584 +23,034 +9,984
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Total, Office of National Drug Control Policy................ 357,244 342,013 391,606 +34,362 +49,593

Unanticipated needs................................................ 988 1,000 1,000 +12 ...............
Partnership fund for program integrity innovation.................. ............... 1,000 1,000 +1,000 ...............

Integrated, efficient and effective uses of information technology. 5,000 5,000 5,000 ............... ...............

Special Assistance to the President and Official Residence of the
Vice President:
Salaries and expenses.......................................... 4,328 4,328 4,328 ............... ...............
Operating expenses............................................. 307 307 307 ............... ...............
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Subtotal..................................................... 4,635 4,635 4,635 ............... ...............
====================================================================================
Total, title II, Executive Office of the President and Funds 659,114 648,756 698,349 +39,235 +49,593
Appropriated to the President...............................
====================================================================================
TITLE III--THE JUDICIARY

Supreme Court of the United States

Salaries and expenses:
Salaries of justices........................................... 2,197 2,207 2,207 +10 ...............
Other salaries and expenses.................................... 72,622 74,958 74,958 +2,336 ...............
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Subtotal..................................................... 74,819 77,165 77,165 +2,346 ...............

Care of the building and grounds................................... 8,159 11,963 11,963 +3,804 ...............
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Total, Supreme Court of the United States.................... 82,978 89,128 89,128 +6,150 ...............

United States Court of Appeals for the Federal Circuit

Salaries and expenses:
Salaries of judges............................................. 2,513 2,524 2,524 +11 ...............
Other salaries and expenses.................................... 29,998 31,804 31,196 +1,198 -608
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Total, United States Court of Appeals for the Federal Circuit 32,511 34,328 33,720 +1,209 -608

United States Court of International Trade

Salaries and expenses:
Salaries of judges............................................. 1,718 1,715 1,715 -3 ...............
Other salaries and expenses.................................... 19,729 21,165 21,165 +1,436 ...............
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Total, U.S. Court of International Trade..................... 21,447 22,880 22,880 +1,433 ...............

Courts of Appeals, District Courts, and Other Judicial Services

Salaries and expenses:
Salaries of judges and bankruptcy judges....................... 327,707 338,037 338,037 +10,330 ...............
Other salaries and expenses.................................... 4,687,293 4,810,762 4,803,968 +116,675 -6,794
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Subtotal..................................................... 5,015,000 5,148,799 5,142,005 +127,005 -6,794

Vaccine Injury Compensation Trust Fund............................. 5,000 5,354 5,354 +354 ...............
Defender services.................................................. 1,031,000 1,063,517 1,048,517 +17,517 -15,000
Fees of jurors and commissioners................................... 51,908 54,635 54,635 +2,727 ...............
Court security..................................................... 500,000 514,673 512,673 +12,673 -2,000
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Total, Courts of Appeals, District Courts, and Other Judicial 6,602,908 6,786,978 6,763,184 +160,276 -23,794
Services....................................................

Administrative Office of the United States Courts

Salaries and expenses.............................................. 82,909 85,148 85,148 +2,239 ...............

Federal Judicial Center

Salaries and expenses.............................................. 27,000 27,729 27,519 +519 -210

Judicial Retirement Funds

Payment to judiciary trust funds................................... 103,768 125,464 125,464 +21,696 ...............

United States Sentencing Commission

Salaries and expenses.............................................. 16,500 17,061 17,061 +561 ...............
====================================================================================
Total, title III, the Judiciary.............................. 6,970,021 7,188,716 7,164,104 +194,083 -24,612
====================================================================================
TITLE IV--DISTRICT OF COLUMBIA

FEDERAL FUNDS

Federal payment for resident tuition support....................... 30,000 35,100 35,100 +5,100 ...............
Federal payment for emergency planning and security costs in the 14,900 24,700 24,700 +9,800 ...............
District of Columbia..............................................
Federal payment to the District of Columbia Courts................. 232,841 219,651 225,370 -7,471 +5,719
Federal payment for defender services in District of Columbia 55,000 49,890 50,000 -5,000 +110
Courts............................................................
Federal payment to the Court Services and Offender Supervision 212,983 215,506 215,506 +2,523 ...............
Agency for the District of Columbia...............................
Federal payment to the District of Columbia Public Defender Service 37,241 39,376 39,376 +2,135 ...............
Federal payment to the District of Columbia Water and Sewer 15,000 11,500 15,000 ............... +3,500
Authority.........................................................
Federal payment to the Criminal Justice Coordinating Council....... 1,800 1,800 1,800 ............... ...............
Federal payment for judicial commissions........................... 500 500 500 ............... ...............
Federal payment for school improvement............................. 60,000 60,000 53,500 -6,500 -6,500
Federal payment for the D.C. National Guard........................ 375 500 500 +125 ...............
Federal payment for redevelopment of the St. Elizabeths Hospital ............... 9,800 9,800 +9,800 ...............
campus............................................................
Federal payment for HIV/AIDS prevention............................ 5,000 5,000 5,000 ............... ...............
Federal payment for job training pilot project..................... ............... 2,000 ............... ............... -2,000
Federal payment for D.C. Commission on the Arts and Humanities ............... 2,500 ............... ............... -2,500
grants............................................................
====================================================================================
Total, title IV, District of Columbia........................ 665,640 677,823 676,152 +10,512 -1,671
====================================================================================
TITLE V--OTHER INDEPENDENT AGENCIES

Administrative Conference of the United States..................... 2,900 3,200 3,200 +300 ...............
Christopher Columbus Fellowship Foundation......................... 450 ............... 450 ............... +450

Civilian Property Realignment Board

Salaries and expenses.............................................. ............... 17,000 ............... ............... -17,000
Asset Proceeds and Space Management Fund........................... ............... 40,000 ............... ............... -40,000
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Total, Civilian Property Realignment Board................... ............... 57,000 ............... ............... -57,000

Commodity Futures Trading Commission............................... 205,294 308,000 308,000 +102,706 ...............

Consumer Product Safety Commission................................. 114,500 122,425 122,425 +7,925 ...............

Election Assistance Commission

Salaries and expenses.............................................. 11,500 11,500 11,500 ............... ...............

Federal Communications Commission

Salaries and expenses.............................................. 339,844 346,782 347,782 +7,938 +1,000
Offsetting fee collections--current year........................... -339,844 -346,782 -347,782 -7,938 -1,000
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Direct appropriation........................................... ............... ............... ............... ............... ...............

Federal Deposit Insurance Corporation: Office of Inspector General (45,261) (34,568) (34,568) (-10,693) ...............
(by transfer).....................................................
Federal Election Commission........................................ 66,367 66,367 67,999 +1,632 +1,632
Federal Labor Relations Authority.................................. 24,723 24,792 25,200 +477 +408

Federal Trade Commission

Salaries and expenses.............................................. 311,563 300,000 300,000 -11,563 ...............
Offsetting fee collections--current year........................... -108,000 -115,000 -115,000 -7,000 ...............
Offsetting fee collections, telephone database..................... -21,000 -15,000 -15,000 +6,000 ...............
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Direct appropriation........................................... 182,563 170,000 170,000 -12,563 ...............

General Services Administration

Federal Buildings Fund

Limitations on availability of revenue:
Construction and acquisition of facilities..................... 50,000 56,000 56,000 +6,000 ...............
Repairs and alterations........................................ 280,000 494,768 514,768 +234,768 +20,000
Installment acquisition payments............................... 126,801 119,589 119,589 -7,212 ...............
Rental of space................................................ 5,210,198 5,548,583 5,548,583 +338,385 ...............
Building operations............................................ 2,350,968 2,400,158 2,400,158 +49,190 ...............
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Subtotal, Limitations on availability of revenue............. 8,017,967 8,619,098 8,639,098 +621,131 +20,000

Repayment of debt.................................................. 80,000 87,620 87,620 +7,620 ...............
Rental income to fund.............................................. -9,303,000 -9,777,590 -9,777,590 -474,590 ...............
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Total, Federal Buildings Fund................................ -1,205,033 -1,070,872 -1,050,872 +154,161 +20,000

Government-wide policy............................................. 61,115 84,182 78,182 +17,067 -6,000
Operating expenses................................................. 69,500 67,388 67,000 -2,500 -388
Office of Inspector General........................................ 58,000 58,960 58,960 +960 ...............
Electronic Government Fund......................................... 12,400 16,665 16,665 +4,265 ...............
Allowances and office staff for former Presidents.................. 3,671 3,779 3,779 +108 ...............
Expenses, Presidential transition.................................. ............... 8,947 8,947 +8,947 ...............
Federal Citizen Services Fund...................................... 34,100 31,751 31,751 -2,349 ...............
Policy and operations (rescission)................................. -4,600 ............... ............... +4,600 ...............
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Total, General Services Administration....................... -970,847 -799,200 -785,588 +185,259 +13,612

Harry S Truman Scholarship Foundation.............................. 748 ............... 748 ............... +748

Merit Systems Protection Board

Salaries and expenses.............................................. 40,258 38,648 41,055 +797 +2,407
Limitation on administrative expenses.............................. 2,345 2,345 2,345 ............... ...............
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Total, Merit Systems Protection Board........................ 42,603 40,993 43,400 +797 +2,407

Morris K. Udall and Stewart L. Udall Foundation

Morris K. Udall and Stewart L. Udall Trust Fund.................... 2,200 2,200 2,200 ............... ...............
Environmental Dispute Resolution Fund.............................. 3,792 3,800 3,800 +8 ...............
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Total, Morris K. Udall and Stewart L. Udall Foundation....... 5,992 6,000 6,000 +8 ...............

National Archives and Records Administration

Operating expenses................................................. 373,300 371,675 371,675 -1,625 ...............
Reduction of debt.............................................. -15,000 -17,000 -17,000 -2,000 ...............
------------------------------------------------------------------------------------
Subtotal..................................................... 358,300 354,675 354,675 -3,625 ...............

Office of the Inspector General.................................... 4,100 4,100 4,100 ............... ...............
Repairs and restoration............................................ 9,100 8,000 8,000 -1,100 ...............

National Historical Publications and Records Commission: Grants 5,000 3,000 5,000 ............... +2,000
program...........................................................
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Total, National Archives and Records Administration.......... 376,500 369,775 371,775 -4,725 +2,000

National Credit Union Administration Community Development 1,247 1,187 1,187 -60 ...............
Revolving Loan Fund...............................................

Office of Government Ethics........................................ 13,664 13,473 20,164 +6,500 +6,691

Office of Personnel Management

Salaries and expenses.............................................. 97,774 90,541 90,541 -7,233 ...............
Limitation on administrative expenses.......................... 112,516 114,708 114,708 +2,192 ...............

Office of Inspector General........................................ 3,142 4,232 4,232 +1,090 ...............
Limitation on administrative expenses.......................... 21,174 21,172 21,172 -2 ...............

Government Payment for Annuitants, Employees Health Benefits....... 10,862,000 10,818,000 10,818,000 -44,000 ...............
Government Payment for Annuitants, Employee Life Insurance......... 52,000 51,000 51,000 -1,000 ...............
Payment to Civil Service Retirement and Disability Fund............ 9,979,000 9,780,000 9,780,000 -199,000 ...............
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Total, Office of Personnel Management........................ 21,127,606 20,879,653 20,879,653 -247,953 ...............

Office of Special Counsel.......................................... 18,972 18,692 18,972 ............... +280
Postal Regulatory Commission....................................... 14,304 14,450 14,450 +146 ...............
Privacy and Civil Liberties Oversight Board........................ 900 1,000 1,000 +100 ...............
Rescission..................................................... -998 ............... ............... +998 ...............
Recovery and Accountability Transparency Board..................... 28,350 31,500 31,500 +3,150 ...............

Securities and Exchange Commission................................. 1,321,000 1,466,000 1,566,000 +245,000 +100,000
SEC fees....................................................... -1,321,000 -1,466,000 -1,566,000 -245,000 -100,000

Selective Service System........................................... 23,984 24,400 24,400 +416 ...............

Small Business Administration

Salaries and expenses.............................................. 417,348 423,577 445,499 +28,151 +21,922
Office of Inspector General........................................ 16,267 19,400 19,400 +3,133 ...............
Office of Advocacy................................................. 9,120 8,900 9,150 +30 +250

Business Loans Program Account:
Direct loans subsidy........................................... 3,678 2,844 4,000 +322 +1,156
Guaranteed loans subsidy....................................... 207,100 348,600 333,600 +126,500 -15,000
Administrative expenses........................................ 147,958 145,060 145,060 -2,898 ...............
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Subtotal, Business loans program account..................... 358,736 496,504 482,660 +123,924 -13,844

Disaster Loans Program Account:
Administrative expenses........................................ 117,300 ............... ............... -117,300 ...............
Disaster relief category....................................... ............... 167,000 167,000 +167,000 ...............
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Total, Small Business Administration..................... 918,771 1,115,381 1,123,709 +204,938 +8,328

United States Postal Service

Payment to the Postal Service Fund:
Advance appropriations......................................... 78,153 89,092 89,092 +10,939 ...............
Office of Inspector General........................................ 241,468 241,468 241,468 ............... ...............
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Total, United States Postal Service.......................... 319,621 330,560 330,560 +10,939 ...............

United States Tax Court............................................ 51,079 53,103 53,103 +2,024 ...............
====================================================================================
Total, title V, Independent Agencies......................... 22,580,793 22,864,251 22,843,807 +263,014 -20,444
Appropriations........................................... (22,508,238) (22,608,159) (22,587,715) (+79,477) (-20,444)
Rescissions.............................................. (-5,598) ............... ............... (+5,598) ...............
Advances................................................. (78,153) (89,092) (89,092) (+10,939) ...............
(by transfer)............................................ (45,261) (34,568) (34,568) (-10,693) ...............
====================================================================================
Grand total........................................................ 43,090,895 44,623,459 44,286,736 +1,195,841 -336,723
Appropriations................................................. (43,979,668) (44,506,339) (44,980,644) (+1,000,976) (+474,305)
Rescissions.................................................... (-966,926) (-830,000) (-950,000) (+16,926) (-120,000)
Advances....................................................... (78,153) (89,092) (89,092) (+10,939) ...............
(by transfer).................................................. (45,261) (34,568) (34,568) (-10,693) ...............
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