Report text available as:

  • TXT
  • PDF   (PDF provides a complete and accurate display of this text.) Tip ?
                                                       Calendar No. 157
104th Congress                                                   Report
                                 SENATE

   1st Session                                                  104-121
_______________________________________________________________________


 
 TREASURY, POSTAL SERVICE, AND GENERAL GOVERNMENT APPROPRIATION BILL, 
                                  1996

                                _______


    July 27 (legislative day, July 10), 1995.--Ordered to be printed

_______________________________________________________________________


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

                              R E P O R T

                        [To accompany H.R. 2020]
    The Committee on Appropriations, to which was referred the 
bill (H.R. 2020) making appropriations for the Treasury 
Department, the United States Postal Service, the Executive 
Office of the President, and certain Independent Agencies for 
the fiscal year ending September 30, 1996, and for other 
purposes, reports the same to the Senate with amendments and 
recommends that the bill as amended do pass.

Amount of bill as passed by House....................... $23,177,286,500
Amount of bill as reported to the Senate................  23,134,570,000
Amount of estimate......................................  24,909,570,000
The bill as reported to the Senate:
    Below the appropriations provided in 1995...........    -367,859,000
    Below the estimates for 1996........................  -1,775,000,000
    Below the House bill................................     -42,716,500


                            C O N T E N T S

                              ----------                              
                                                                   Page
General statement and summary of bill............................     3
Title I--Treasury Department.....................................     7
Title II--Postal Service.........................................    38
Title III--Executive Office of the President and Funds 
  Appropriated to the President..................................    40
Title IV--Independent Agencies:
    Administrative Conference of the United States...............    53
    Advisory Commission on Intergovernmental Relations...........    53
    Committee for Purchase From People Who Are Blind or Severely 
      Disabled...................................................    53
    Federal Election Commission..................................    54
    Federal Labor Relations Authority............................    55
    General Services Administration..............................    56
    John F. Kennedy Assassination Review Board...................    66
    Merit Systems Protection Board: Salaries and expenses........    66
    National Archives and Records Administration.................    67
    National Historical Publications and Records Commission......    69
    Office of Government Ethics..................................    69
    Office of Personnel Management...............................    70
    Office of Inspector General..................................    72
    Office of Special Counsel....................................    76
    U.S. Tax Court...............................................    77
Title V--General provisions, this act............................    79
Title VI--General provisions, departments, agencies, and 
  corporations...................................................    81
Compliance with paragraph 7, rule XVI, of the Standing Rules of 
  the Senate.....................................................    83
Compliance with paragraph 7(c), rule XXVI of the Standing Rules 
  of the Senate..................................................    85
Compliance with paragraph 12, rule XXVI of the Standing Rules of 
  the Senate.....................................................    86
Tables...........................................................    92
               General Statement and Summary of the Bill

    The accompanying bill contains recommendations for new 
budget (obligational) authority for the Treasury Department, 
the United States Postal Service, the Executive Office of the 
President, and certain independent agencies for the fiscal year 
ending September 30, 1996.
    The Committee considered budget estimates for fiscal year 
1996 in the aggregate amount of $24,909,570,000. Compared to 
that amount, the accompanying bill recommends new budget 
authority totaling $11,262,500,000 which is $1,775,000,000 less 
than the amount requested by the administration and $42,716,500 
below the House-passed bill.
    The Committee recommendations are consistent with the 
fiscal year 1996 section 602(b) budget authority and outlay 
allocations for the Treasury, Postal Service, and General 
Government Subcommittee.

                    july 17, 1995, budget amendment

    A budget amendment submitted by the administration on July 
17, 1995, requests additional funding for Treasury law 
enforcement bureaus for counterterrorism and counternarcotics 
activities totaling $89,790,000. The amendment included offsets 
for these increases from the following: -$98,330,000 from 
Internal Revenue Service, information systems; -$32,795,000 
from the General Services Administration, real property 
activities. Also included in this budget amendment were two 
general appropriations provisions regarding the use of Treasury 
aircraft and security requirements at Federal buildings.
    The Committee notes that this budget amendment was 
transmitted to the Congress just 1 day prior to the Committee 
meeting to make 602(b) allocations for fiscal year 1996 
spending bills. Prior to this time, the Committee was already 
working with very limited budgetary resources, and the budget 
amendment placed a further strain on the Committee's ability to 
meet program needs. Nonetheless, the Committee did review those 
items included in the budget amendment and made recommendations 
giving the highest priority to the most essential activities.

                reprogramming and transfer requirements

    The Committee expects the justifications for proposed 
reprogramming requests to be clear and strongly documented. 
Furthermore, except in extraordinary circumstances, 
reprogramming proposals will not be approved by the Committee 
45 days prior to the end of the fiscal year, nor will they be 
approved if the proposed actions would effectively reverse 
previous congressional directives.
    The guidelines to be used to determine whether or not a 
reprogramming shall be submitted to the Committee for prior 
approval during fiscal year 1996 are as follows:
    (1) For agencies, departments, or offices receiving 
appropriations in excess of $20,000,000, a reprogramming must 
be submitted if the amount to be shifted to or from any object 
class, budget activity, program line item, or program activity 
involved is in excess of $500,000 or 10 percent, whichever is 
greater;
    (2) For agencies, departments, or offices receiving 
appropriations less than $20,000,000, a reprogramming must be 
submitted if the amount to be shifted to or from any object 
class, budget activity, program line item, or program activity 
involved is in excess of $50,000 or 10 percent, whichever is 
greater;
    (3) For any actions which would result in a major change 
contrary to the program or item presented to and approved by 
the Committee or the Congress;
    (4) For any action where the cumulative effect of past 
reprogramming actions added to the new reprogramming would 
exceed the dollar threshold mentioned above;
    (5) For any actions where funds earmarked for a specific 
activity are proposed to be used for another activity; and
    (6) For any actions where funds earmarked for a specific 
activity are in excess to meet the project or activity 
requirement, and are proposed to be used for another activity.
    The administration has requested authority to transfer 
funds between appropriation accounts of the Department of the 
Treasury of up to 2 percent. In addition, the Department 
requests unlimited authority for the Internal Revenue Service 
to transfer funds between its appropriation accounts.
    The Committee has denied the requested 2-percent transfer 
authority for the Secretary of the Treasury and approves a 2-
percent transfer authority for the IRS. Such transfers shall 
follow established reprogramming procedures and shall be 
requested only in emergency situations when the need for such 
transfer is unforeseen and absolutely critical to the mission 
supported by the affected appropriation account, and only with 
prior approval of both the House and Senate Committees on 
Appropriations. In addition, the Committee expects transfer 
requests to be submitted for Committee approval in a timely 
manner to permit a sufficient period for consideration. The 
Committee is concerned that in the past, transfer requests have 
been submitted so late in a fiscal year that transfers of funds 
have already been effected by the agencies and cannot be 
reversed.
    The Committee is concerned that in the past transfer and 
reprogramming authority has been overutilized and often used by 
agencies for reorganizations that have major policy 
implications. Such transfers and reprogrammings are interpreted 
by the Committee as circumventing the appropriations process 
and will not be condoned.

definition of program, project, and activity as provided for by public 
                         law 99-177, as amended

    During fiscal year 1996, for purposes of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (Public Law 
99-177), as amended, the following information provides the 
definition of the term ``program, project, and activity'' for 
departments and agencies under the jurisdiction of the 
Treasury, Postal Service, and General Government Subcommittee. 
The term ``program, project, and activity'' shall include the 
most specific level of budget items identified as a dollar 
amount in the Treasury, Postal Service, and General Government 
Appropriations Act, 1996 (H.R. 2020), the House (H. Rept. 104-
183) and the Senate committee report and the conference report 
and accompanying joint explanatory statement of the managers of 
the committee of conference accompanying that act. (Under the 
above definition, the Federal buildings fund, the Bureau of 
Engraving and Printing fund, and other intragovernmental funds 
are exempt under section 255(g)(1) of Public Law 99-177, as 
amended).
    In implementing a Presidential Order, departments and 
agencies shall apply the percentage reduction required for 
fiscal year 1996 pursuant to the provisions of Public Law 99-
177, as amended, to each budget item that is listed under said 
accounts in the budget justifications submitted to the House 
and Senate Committees on Appropriations as modified by 
subsequent appropriations acts (including joint resolutions 
providing continuing appropriations), and accompanying House 
and Senate Committee reports, conference reports, or joint 
explanatory statements of the committee of conference.

  total funding for treasury, postal service, and general government 
                                programs

    In addition to the new obligational authority recommended 
in the accompanying bill, additional significant sums are made 
available each year for the Treasury Department, the Office of 
Personnel Management, and other independent agencies under 
permanent indefinite authority which do not require 
consideration by the Congress during the annual appropriations 
process.
    The principal items in these categories include: payment of 
interest on the public debt, interest on Internal Revenue 
Service refunds of income tax payments, and other interest 
payments on selected accounts handled by the Department of the 
Treasury, which total an estimated $368,100,000,000 in fiscal 
year 1996; repayments of taxes collected by Puerto Rico, 
payment made when the earned income credit exceeds the 
taxpayer's tax liability, special claims, and damage payments 
required as a result of judgments against the U.S. Government, 
the coinage trust fund, the Treasury forfeiture fund, 
reimbursements from Federal Reserve banks, and payments to the 
Presidential candidates and their parties, which total an 
estimated $24,100,000,000 in fiscal year 1996; and payments in 
connection with the civil service retirement and disability 
fund, estimated to be $12,811,759,000 in fiscal year 1996.
    The Committee also establishes limitations on the use of 
certain funds within the agencies covered by this act.
    In addition to the agencies whose funds are derived from 
direct appropriations, there are other agencies which operate 
under authorities which exempt them from congressional review, 
in whole or in part, during the annual appropriations process. 
For example, the U.S. Postal Service, under the Postal 
Reorganization Act, is authorized to use all of its income from 
postage and services for its own purposes and to request an 
appropriation from the Congress for certain subsidies. Normally 
only the amount of the subsidy requirement is regularly 
reviewed by the Congress. In the Treasury Department, the 
Office of the Comptroller of the Currency, whose income is 
derived principally from assessments paid by national banks, is 
exempt from regular funding review, because such assessments 
are not construed under law to be Government funds.

    agency adherence to estimates contained in budget justifications

    The Committee believes that the agency budget 
justifications presented each year outlining the assumptions 
contained in the President's annual budget should accurately 
reflect the proposed allocation of resources and activities 
within the agency budget plan for the coming fiscal year. At 
the same time, the Committee is cognizant of the fact that 
economic conditions; program changes; congressional directives; 
and other unforeseen circumstances often change the assumptions 
which are built into the President's budget submission. 
Nevertheless, the Committee expects every agency funded in this 
bill to closely adhere to the estimates presented in their 
annual budget justifications, including object classification 
tables, unless funding levels for programs, projects, and 
activities are specifically altered by the Committee and/or the 
Congress. In such case, the affected agencies shall submit new 
object classification tables within 45 days of enactment of the 
appropriations act.
    The Committee expects to receive periodic notification from 
the agencies if and when they intend to alter the mix of 
programs, projects, activities, or funding assumptions 
initially presented in their fiscal year 1996 budget 
justifications which do not require a formal reprogramming 
action in accordance with this report.

                       administrative reductions

    During discussions with the administration regarding H.R. 
1944, making emergency supplemental appropriations and 
rescissions for fiscal year 1995, the White House indicated 
that significant additional savings could be made by reducing 
administrative overhead over and above that proposed in the 
President's fiscal year 1996 budget.
    The Committee has reviewed this proposal and has, based on 
the amount the administration indicated could be saved in the 
latter part of fiscal year 1995, reduced the fiscal year 1996 
request for a number of agencies by 5 percent. The reduction 
shall be applied to the following object classes at the 
discretion of the affected agency or department head: 21.0, 
travel; 22.0, transportation of things; 23.3, communications 
and utilities; 24.0, printing, reproduction; 25.0, other 
services; 26.0, supplies and materials; and 31.0, equipment; 
however, the total reduction must be achieved.
                  TITLE I--DEPARTMENT OF THE TREASURY

                          Departmental Offices

                         salaries and expenses
Appropriations, 1995....................................    $104,379,000
Budget estimate, 1996...................................     120,408,000
House allowance.........................................     104,000,500

Committee recommendation

                                                             105,929,000

    The Committee recommends an appropriation of $105,929,000 
for salaries and expenses for Departmental Offices of the 
Treasury Department. The amount provided by the Committee is 
$14,479,000 less than the budget estimate and $1,928,500 above 
the House allowance.
    The departmental offices function of the Treasury 
Department provides basic support to the Secretary in his roles 
as the chief financial officer of the Government, major policy 
advisor to the President, and Executive Director of the 
Treasury Department. The Secretary's responsibilities include: 
recommending and implementing U.S. domestic and international 
economic policy, fiscal policy, and tax policy; managing the 
fiscal operations of the Government; managing the public debt; 
overseeing the major law enforcement functions carried out by 
the Treasury Department; serving as the U.S. representative to 
the various international financial organizations; and 
directing the general administrative operations of the Treasury 
Department.
    In support of the Secretary, the departmental offices 
function provides policy formulation and implementation in 
areas such as tax and economic affairs, trade and financial 
operations, and general fiscal policy. This function also 
provides advice and technical assistance on administrative and 
legislative programs and establishes and coordinates 
departmental administrative policies in areas such as budget, 
accounting, personnel, procurement, information systems 
development and management, telecommunications, and equal 
employment opportunity.
    The international affairs programs involve the formulation 
and execution of Treasury policy in a wide range of important 
economic areas. This activity includes those offices 
responsible for providing staff analysis and support for the 
Secretary and other senior officials involved in formulating 
and implementing international economic and financial policies. 
The issues involved within this activity include: international 
monetary affairs; international development financing policy; 
U.S. policy toward, and participation in, the work of the 
various international financial organizations; international 
economic analysis; international trade and investment policy; 
financial aspects of commodities and natural resources policy; 
and relations with the oil-producing countries of the Arabian 
Peninsula.

                        committee recommendation

    Due to budgetary constraints, the Committee has denied 
program enhancements totaling $10,244,000, but has provided 
requested funding for repairs to the main Treasury Building and 
annex, totaling $7,684,000 in a separate account. The Committee 
has included the requested funding for mandatory pay increases 
and other inflationary adjustments totaling $3,498,000. The 
Committee has denied the $2,100,000 transfer from the IRS and 
the Bureau of the Public Debt from previous years to the base 
of departmental offices. Funding provided by the Committee will 
support an FTE level of 1,032 FTE's, a reduction of 49 from the 
1995 level. In addition, the Committee has reduced the request 
by an additional $1,651,000. This reduction shall be applied at 
the discretion of the Secretary to object classes 21.0, 22.0, 
23.3, 24.0, 25.0, 26.0, and 31.0.

               Counter-Drug Technology Assessment Center

             salaries, expenses, research, and development
Appropriations, 1995....................................................
Budget estimate, 1996...................................................
House allowance.........................................................

Committee recommendation

                                                             $20,500,000

    The Committee has established a new account, ``Counter-Drug 
Technology Assessment Center, salaries, expenses, research, and 
development''. The Committee takes this action as it has 
recommended termination of the Office of National Drug Control 
Policy and has transferred jurisdiction and control over the 
Counter-Drug Technology Assessment Center to the Department of 
the Treasury.
    The Anti-Drug Abuse Act of 1988, Public Law 100-690, was 
amended during 1990 to provide for the establishment of a 
Counter-Drug Technology Assessment Center within the Office of 
National Drug Control Policy. This Office is authorized to 
serve as the central counternarcotics enforcement research and 
development organization of the U.S. Government. The law 
provides for the appointment of a chief scientist to head up 
this new center, to make a priority ranking of scientific needs 
according to fiscal and technological feasibility as part of 
the national counterdrug enforcement research and development 
strategy.
    The Committee has provided $20,000,000 specifically for 
counternarcotics research and development projects in fiscal 
year 1996.
    The Committee expects multiagency research and development 
programs to be coordinated by the Counter-Drug Technology 
Assessment Center in order to prevent duplication of effort and 
to assure that whenever possible, those efforts provide 
capabilities that transcend the need of any single Federal 
agency. Prior to the obligation of these funds, the Committee 
expects to be notified by the chief scientist on how these 
funds will be spent; it also expects to receive periodic 
reports from the chief scientist on the priority counterdrug 
enforcement research and development requirements identified by 
the Center and on the status of projects funded by CTAC.
    The Committee believes CTAC should work closely and 
cooperatively with the individual law enforcement agencies in 
the definition of a national research and development program 
which addresses agency requirements with respect to timeliness, 
operational utility, and consistency with agency budget plans. 
CTAC should develop a true blueprint for the program to include 
identification and assignment of priority projects, expected 
results, and funding projections based on agency priorities and 
expected results. This effort should be led by CTAC with input, 
review, and consensus from drug control agencies. The blueprint 
should include descriptions of the necessary conference and 
outreach efforts. The national blueprint shall also include the 
rationale for allocation of funding among demand, supply, and 
State and local efforts. The Committee expects agencies to 
support CTAC by defining the expected value of the projects 
they advocate and placing them in the context with agency and 
national goals and programs. Agencies should also identify the 
expected cost and benefits of procuring sufficient quantities 
of equipment under development, assuming it is successful. The 
Committee believes CTAC should recognize the ultimate 
requirements for technology procurement if technology 
development is successful and advocate funding requests for 
such equipment. Finally, the Committee believes CTAC should 
recognize and support agency contributions to research and 
development and work to strengthen those capabilities.
    The Committee urges the Chief Scientist to consider a 
collaborative effort with the Hahnemann University Medical 
Center, the Kelly G. Champlin Foundation, and the Albert 
Einstein Medical Center of Philadelphia to develop a 
demonstration project to explore the causes of drug and alcohol 
addiction.

                 high intensity drug trafficking areas

                     (including transfer of funds)
Appropriations, 1995....................................\1\ $107,000,000
Budget estimate, 1996................................... \1\ 110,000,000
House allowance......................................... \1\ 104,000,000
Committee recommendation................................     110,000,000

\1\ Funding in fiscal year 1995 and the President's request in fiscal 
year 1996 includes funding for this program under the Office of National 
Drug Control Policy [ONDCP]. The House has provided funding for this 
program under ONDCP in fiscal year 1996.

    The Committee has established a new account for drug 
control activities of the high-intensity drug trafficking areas 
[HIDTA]. The Committee takes this action as it has terminated 
the Office of National Drug Control Policy. Control and 
jurisdiction over the activities of the HIDTA program are 
transferred to the Department of the Treasury beginning in 
fiscal year 1996.
    The fiscal year 1996 request seeks a $3,000,000 increase 
above current levels to provide the Puerto Rico-United States 
Virgin Islands HIDTA, which is currently funded at $9,000,000, 
equivalent funding with that of the other HIDTA's. The 
Committee has provided the increase requested for this purpose.
    There are currently seven high-intensity drug trafficking 
areas: New York, Miami, Houston, Los Angeles, Baltimore-
Washington metropolitan area, Puerto Rico-Virgin Islands, and 
the Southwest border. A total of not less than $55,000,000 is 
provided specifically for assistance to State and local drug 
control agencies in the seven HIDTA's. In allocating these 
funds, the Committee expects the Secretary to ensure that the 
activities receiving these limited additional resources are 
used strictly for implementing the strategy for each HIDTA 
area, taking into consideration local conditions and resource 
requirements. These funds should not be used to supplant 
existing support for ongoing Federal, State, or local drug 
control operations normally funded out of the operating budgets 
of each agency. The remaining funds may be transferred to 
Federal agencies and departments to support Federal antidrug 
activities.
    The Committee believes that the Secretary should take steps 
to ensure that the HIDTA funds are transferred to the 
appropriate drug control agencies expeditiously. To ensure that 
the funding allocations meet the priorities outlined in the 
strategies, the Committee instructs the Secretary to submit the 
strategies, along with the identification of how the funds will 
be spent, to the Committee for review prior to the obligation 
of the funds. The Committee also expects to be notified if any 
changes are made in the spending plans presented to it during 
the course of the fiscal year. The Committee further instructs 
the Secretary to submit the updated 1996 strategies for each of 
the HIDTA's to the Committee for review and to obligate the 
HIDTA funds within 120 days of enactment of this act. This 
provision may be waived if a request is made to the Committee 
and has been approved in advance according to the normal 
reprogramming procedures. The Committee expects the Secretary 
to take actions necessary to ensure that all HIDTA funds are 
being used to support only those activities which are directly 
linked to the individual HIDTA strategies recommended by the 
HIDTA coordinators and which support the goals and objectives 
outlined in each of these strategies.

       repair and maintenance of the treasury building and annex
Appropriations, 1995....................................................
Budget estimate, 1996...................................  \1\ $7,684,000
House allowance.........................................................
Committee recommendation................................       7,684,000

\1\ The budget submission included this amount in the ``Departmental 
Offices'' account.

    The Committee has created a new account for the Department 
of the Treasury for repairs and alteration requirements of the 
Treasury Building and annex. Traditionally the funds for 
repairs and alterations of the building have been included in 
the ``Departmental Offices'' account, and when funding 
conflicts arose, repair and maintenance of the building became 
a lower priority.
    The amount in this account equals the request of the 
administration to fund a new electrical distribution system and 
steam cooling lines and to make general repairs. The House has 
chosen to fund these improvements through the General Services 
Administration's ``Federal buildings fund, repair and 
alterations'' account and the ``Salaries and expenses'' 
account.

                        Foreign Law Enforcement
Appropriations, 1995....................................................
Budget estimate, 1996...................................     $14,490,000
House allowance.........................................................

Committee recommendation

                                             ...........................

    The administration proposed to establish a new account to 
consolidate funding for Department of the Treasury law 
enforcement personnel deployed at foreign locations under the 
authority of the Under Secretary for Enforcement.
    The fiscal year 1996 budget requests of the Customs 
Service, Secret Service, Bureau of Alcohol, Tobacco and 
Firearms, and the Internal Revenue Service were proposed to be 
reduced by the following to accommodate this proposal:

------------------------------------------------------------------------
                                                FTE           Amount    
------------------------------------------------------------------------
Customs Service.........................              36      $8,280,000
Secret Service..........................              17       3,910,000
Alcohol, Tobacco and Firearms...........               5       1,150,000
Internal Revenue Service................               5       1,150,000
------------------------------------------------------------------------

    The Committee joins the House in denying this request. The 
Committee has placed these positions and funds back in the 
affected agencies' appropriations. The Committee takes this 
opportunity to remind the Department that the Office of the 
Under Secretary for law enforcement is policy in nature, not 
operational.

                   sharing law enforcement resources

    The Committee, recognizing, current budgetary constraints, 
urges Treasury law enforcement agencies to share forensic and 
technical resources with sister Treasury enforcement bureaus 
whenever possible. Law enforcement agencies frequently possess 
unique capabilities which may have applications to 
investigations outside of an agency's respective jurisdiction. 
Sharing these resources can prove to be cost effective and 
contribute to the success of a wide range of investigative 
efforts.

                    Office of the Inspector General

                         salaries and expenses
Appropriations, 1995....................................     $29,700,000
Budget estimate, 1996...................................      31,864,000
House allowance.........................................      29,319,000

Committee recommendation

                                                              30,067,000

    The Committee recommends an appropriation of $30,067,000 
for salaries and expenses of the Office of the Inspector 
General. This amount is $1,797,000 below the budget request and 
$748,000 above the House allowance.
    The statutory Office of the Inspector General of the 
Department of the Treasury was authorized under the Inspector 
General Act Amendments of 1988, Public Law 100-504. That act 
required the consolidation of the staff and responsibilities 
for the internal audit functions at the Bureau of Alcohol, 
Tobacco and Firearms, the U.S. Customs Service, and the U.S. 
Secret Service, with the Department of the Treasury's existing 
Office of the Inspector General.
    The Office of the Inspector General is organizationally 
independent of all other offices and bureaus within the 
Department of the Treasury and is under the general supervision 
of the Secretary of the Treasury or his Deputy. The Office is 
responsible for: (1) the conduct, supervision, and coordination 
of audits with the Department; (2) the conduct of 
investigations within the nonlaw enforcement bureaus of the 
Department; (3) the oversight of investigations in the law 
enforcement bureaus or the conduct of such investigations, if 
appropriate; (4) the review of legislation and regulations of 
the Department; and (5) reporting to the Secretary and the 
Congress as set forth in the law.

                        Committee recommendation

    Due to budgetary constraints, the Committee has denied the 
requested program enhancements and annualizations totaling 
$1,396,000. In addition, the Committee has reduced 
administrative overhead object classes by $401,000 to be 
applied, at the discretion of the inspector general. This 
reduction shall be applied to object classes 21.0, 22.0, 23.3, 
24.0, 25.0, 26.0, and 31.0. Funding provided by the Committee 
will support an FTE level of 306, or 4 less than the 1995 
level.

                        Treasury Forfeiture Fund
Appropriations, 1995....................................     $15,000,000
Budget estimate, 1996...................................      15,000,000
House allowance.........................................................

Committee recommendation

                                                              15,000,000

    The Committee recommends an appropriation of $15,000,000 
for the Treasury forfeiture fund in fiscal year 1996. This 
amount is the same as the budget request and $15,000,000 above 
the House allowance.
    The Treasury forfeiture fund was established on October 1, 
1993, in Public Law 102-393. It has two accounts, one which is 
funded through permanent indefinite authority and the other 
which is funded through a direct annual appropriation. The 
direct appropriation represents the annual congressional 
limitation on the use of the proceeds from seized and forfeited 
assets. Forfeited cash and the proceeds of forfeited monetary 
instruments are deposited into the fund. Proceeds from the sale 
of other seized and forfeited assets are also deposited into 
the fund.
    The permanent indefinite appropriation is available to pay 
for seizure specific expenses such as: (1) all proper expenses 
of the seizure including investigative costs leading to the 
seizure; (2) contract services and reimbursement for Federal, 
State, and local agencies to perform seizure-related expenses; 
(3) awards of compensation to informants; (4) satisfaction of 
liens and mortgages; (5) remission and mitigation expenses; (6) 
claims of parties to the disposed property; (7) equitable 
sharing payments to Federal, State, local, and foreign law 
enforcement agencies; (8) overtime salaries, travel, fuel, 
training, equipment, and other similar costs of State and local 
law enforcement officers incurred in joint operations with 
Treasury bureaus; (9) services of experts and consultants to 
carry out the forfeitures; and (10) necessary and direct 
seizure and forfeiture expenses for ADP systems, training, 
printing, and related services.
    The annual appropriation is used for the following 
purposes: (1) awards for information leading to civil and 
criminal forfeitures; (2) purchases of evidence or information; 
(3) costs for publicizing awards; (4) equipping vehicles, 
vessels, or aircraft assisting in law enforcement functions 
including forfeiture-related equipment and the cost of its 
operations and maintenance; (5) reimbursement of expenses for 
private persons involved in investigations or undercover 
operations; and (6) training of foreign law enforcement 
personnel.
    Staff support for the Treasury forfeiture fund is provided 
through the permanent indefinite appropriation.

                             Project ALERT

    The Committee instructs the Executive Director of the fund 
to make available no less than $50,000 to the National Center 
for Missing and Exploited Children in fiscal year 1996 for 
Project ALERT, for the training of retired law enforcement 
officers to assist in the investigation of unsolved missing 
children cases nationwide. The Committee anticipates that these 
funds will be in addition to other funds available to the 
Center for these purposes.

                  Financial Crimes Enforcement Network
Appropriations, 1995....................................     $19,823,000
Budget estimate, 1996...................................      22,198,000
House allowance.........................................      20,273,000

Committee recommendation

                                                              22,198,000

    The Committee recommends an appropriation of $22,198,000 
for the Financial Crimes Enforcement Network [FinCEN] for 
fiscal year 1996. This amount is equal to the budget request 
and $1,925,000 above the House allowance.
    The Financial Crimes Enforcement Network [FinCEN] was 
created on April 25, 1990, by Treasury Order 105-08. The 
Treasury Department established FinCEN to implement the 
President's national drug control strategy recommendations 
calling for increased efforts to combat drug money laundering. 
FinCEN was created to serve as a central source for the 
systematic identification, collation, and analysis of 
intelligence in support of law enforcement operations. It also 
exercises the Department's responsibilities under the Bank 
Secrecy Act.
    FinCEN provides a Governmentwide multisource intelligence 
and analytical network to support Federal, State, local, and 
foreign law enforcement and regulatory agencies in the 
detection, investigation, and prosecution of money laundering 
and other financial crimes. Toward this end, FinCEN is charged 
with linking together and analyzing financial, law enforcement, 
and public data sources, to provide leads on criminal financial 
activity that might otherwise go undetected.
    In support of this mission, FinCEN is staffed with 
permanent FinCEN employees, analysts and computer specialists, 
as well as special agents, analysts, and other Federal 
employees on nonreimbursable details from Federal Government 
agencies.
    The increases provided in the budget is for further 
enhancement of information systems, allowing FinCEN to develop 
and expand its link analysis capabilities. This will enable 
quick, massive data processing for timely support of the law 
enforcement community's information requirements.

                        Committee recommendation

    The Committee recommendation includes the full amount 
requested by the administration and will support an FTE level 
of 163, the same as funded in fiscal year 1995. In addition, 
program enhancements totaling $2,026,000 for information 
systems modernization activities have been included.
                Federal Law Enforcement Training Center

                         salaries and expenses
Appropriations, 1995....................................     $58,813,000
Budget estimate, 1996...................................      50,128,000
House allowance.........................................      36,070,000

Committee recommendation

                                                              34,006,000

    The Committee recommends an appropriation of $34,006,000 
for salaries and expenses of the Federal Law Enforcement 
Training Center [FLETC]. This amount is $16,122,000 below the 
budget request and $2,064,000 below the House allowance. 
Unobligated balances totaling $11,600,000 transferred from the 
``Acquisition, construction, improvements, and related 
expenses'' account in fiscal year 1995 will supplement the 1996 
appropriation for a total funding level of $45,606,000.
    The Federal Law Enforcement Training Center provides the 
necessary facilities, equipment, and support services for 
conducting basic and advanced training for Federal law 
enforcement personnel of its participating organizations. 
Center personnel conduct the instructional programs for the 
basic recruit training and also selected portions of the 
advanced training. In addition, the Center furnishes training 
on a space-available basis to personnel from several Federal 
organizations which are not formal participants under the 
memorandum of understanding.
    In October 1982, the President directed that a national 
center for State and local training be established as a part of 
the Federal Law Enforcement Training Center. The major program 
goals are to present advanced and specialized training and to 
provide basic technical assistance to State and local law 
enforcement agencies.

                        Committee recommendation

    Due to budgetary constraints, the Committee has denied 
program enhancements and annualizations totaling $790,000. The 
Committee recommendation will support an FTE level of 462, a 
reduction of 1 FTE from the 1995 level. In addition, the 
Committee has reduced administrative overhead object classes by 
$1,032,000, to be applied at the discretion of the Director. 
The reductions shall be applied to object classes 21.0, 22.0, 
23.3, 24.0, 25.0, 26.0, and 31.0. The Committee has provided 
funding for the counterterrorism initiative in the violent 
crime trust fund account.

     acquisition, construction, improvements, and related expenses
Appropriations, 1995....................................      $5,815,000
Budget estimate, 1996...................................       8,163,000
House allowance.........................................       8,163,000

Committee recommendation

                                                               9,663,000

    The Committee recommends an appropriation of $9,663,000 for 
acquisition, construction, improvements, and related expenses 
of the Federal Law Enforcement Training Center. This amount is 
$1,500,000 above budget estimate and the House allowance.
    The ``Acquisition, construction, improvements, and related 
expenses'' account covers major maintenance and facility 
improvements, construction, renovation, capital improvements, 
and related equipment at FLETC facilities in Glynco, GA, and 
Artesia, NM.
    The Federal Law Enforcement Training Center was established 
in 1970 as the single interagency training organization for 
Federal law enforcement agencies. FLETC's concept of 
Governmentwide, consolidated law enforcement training is 
directed at promoting the highest quality training at the most 
reasonable cost to the American taxpayer through multiple 
agency support and use. FLETC, through its principal facility 
in Glynco, GA, now serves the basic and advanced training needs 
of over 70 participating Federal agencies.
    In June 1989, the Training Center completed its development 
of a master plan which will enable FLETC to better serve the 
training demands of Federal, State, and local law enforcement 
agencies. This master plan calls for the construction of 
additional facilities at all three Center locations. The 
Committee expects the Department to periodically update the 
master plan to include new requirements demanded by the user 
agencies for effective law enforcement training.
    The Committee has increased this account by $1,500,000 for 
dormitory space and training facilities to meet the increased 
student weeks demand, as outlined in the master plan, for the 
Artesia, NM, facility.

                         reporting requirements

    The training requirements of Federal law enforcement 
agencies have fluctuated dramatically over the last several 
years and have resulted in significantly increased and 
continuously changing training projections by participating 
agencies in the FLETC. Due to the lag time that exists from the 
development of an agency's budget to the final enactment of an 
appropriations act, it is exceedingly difficult for FLETC to 
accurately reflect in advance the actual training needs of 
agencies. Lack of reliable or accurate data has made it 
difficult to accurately predict annual funding needs. FLETC has 
developed a procedure that requires its participating agencies 
to review, refine, and update their training projections 
semiannually. As in previous years, the Committee directs that 
the FLETC provide a summary of its semiannual review on 
training projections to the Committee. Furthermore, the 
Committee understands that FLETC compiles a summary of its 
review of training projections from participating agencies on 
an annual basis and the Committee directs FLETC to provide that 
annual summary to the Committee.

                      Financial Management Service

                         salaries and expenses
Appropriations, 1995....................................    $183,729,000
Budget estimate, 1996...................................     189,259,000
House allowance.........................................     181,837,000

Committee recommendation

                                                             186,070,000

    The Committee recommends an appropriation of $186,070,000 
for salaries and expenses of the Financial Management Service 
[FMS] in fiscal year 1996. This amount is $3,189,000 less than 
the budget estimate and $4,233,000 above the House allowance.
    In its financial management leadership role, the Service 
must manage effectively the movement of Federal funds as well 
as make the optimal use of Federal financial information. By 
doing so, FMS fulfills an obligation to the public by improving 
the Federal Government's overall financial position and helping 
to reduce the Federal deficit.
    FMS oversees the Government's overall financial operations 
through the financial and accounting services it provides to 
its customers--Congress, other Federal agencies, financial 
institutions, and the public. The Service's mission involves 
making over 800 million payments each year totaling over 
$1,000,000,000,000; effectively managing mechanisms which 
collect over $1,400,000,000,000 in revenue for the Federal 
Government; providing leadership, direction, and assistance to 
Government agencies in the fields of cash and credit 
management, and financial systems; overseeing a daily cash flow 
of over $10,000,000,000; and accounting for and reporting on 
these activities.
    Service responsibilities include: regulation and management 
of the Government's collection systems; development and 
implementation of innovative cash management and credit 
administration practices in the administration of Federal 
programs; central payment services for all civilian executive 
agencies except the U.S. Postal Service, U.S. marshals, and 
certain Government corporations; processing claims on all lost, 
stolen, and forged checks including those not issued by the 
Treasury; providing central accounting services for the 
Government; compiling and publishing financial reports; and 
managing trust, revolving, and deposit fund accounts.

                        committee recommendation

    The Committee recommended funding level will support an FTE 
level of 2,052, or 15 below the 1995 level. Included in this 
amount is $2,575,000 for program enhancements to improve 
systems for financial management, electronic benefit transfers, 
and ADP integration for electronic data exchange. The Committee 
has reduced administrative overhead object classes by 
$3,189,000, to be applied at the discretion of the 
Commissioner. The reductions shall be applied to object classes 
21.0, 22.0, 23.3, 24.0, 25.0, 26.0, and 31.0.

                Bureau of Alcohol, Tobacco and Firearms

                         salaries and expenses
Appropriations, 1995....................................    $420,138,000
Budget estimate, 1996...................................     435,185,000
House allowance.........................................     391,035,000

Committee recommendation

                                                             377,971,000

    The Committee recommends an appropriation of $377,971,000 
for salaries and expenses of the Bureau of Alcohol, Tobacco and 
Firearms [ATF]. This amount is $57,214,000 below the 
administration's request and $13,064,000 below the House 
allowance.
    The mission of the Bureau of Alcohol, Tobacco and Firearms 
is: (1) to reduce the criminal use of firearms and to assist 
other Federal, State, and local law enforcement agencies in 
reducing crime and violence by effective enforcement of the 
Federal firearms laws; (2) to provide safety for the public by 
reducing the criminal misuse of explosives, combating arson-
for-profit schemes, and removing safety hazards caused by 
improper and unsafe storage of explosive materials; (3) to 
assure the collection of all alcohol and tobacco tax revenues 
and obtain a high level of compliance with the alcohol and 
tobacco tax statutes; (4) to suppress commercial bribery, 
consumer deception, and other prohibited trade practices in the 
alcohol beverage industry by effective enforcement and 
administration of the Federal Alcohol Administration [FAA] Act; 
and (5) to suppress illicit manufacture and sale of nontaxpaid 
alcohol beverages.
    The Bureau's program objectives are as follows:
    Alcohol and tobacco programs.--Ensure the collection of all 
taxes due; prevent organized crime or other unqualified 
applicants from obtaining permits to enter the alcohol and 
tobacco industries; ensure an open, competitive market for 
alcohol beverages; ensure protection for the consumer in 
alcohol beverage products; and undertake projects on regulatory 
reform and programs offering assistance to other agencies (both 
regulatory and law enforcement), industry, and the public.
    Firearms program.--Reduce illegal trafficking in firearms; 
assist Federal, State, and local law enforcement and regulatory 
agencies in reducing illegal trafficking in weapons, reducing 
firearms-related crime, and investigating firearms-related 
cases; and identify and investigate violence-prone individuals 
who use firearms in criminal acts.
    Explosives and arson programs.--Reduce criminal misuse of 
explosives; ensure public safety regarding the storage of legal 
explosives; reduce arson incidents; and assist Federal, State, 
and local investigative and regulatory agencies in explosives 
and arson-related areas.

                        committee recommendation

    The Committee has reduced the request by $7,874,000 for 
program enhancements and $5,000,000 for base equipment needs 
because the Committee funded these activities in the Fiscal 
Year 1995 Supplemental Appropriations Act. The Committee has 
increased the request by $1,150,000 and five FTE's to reflect a 
transfer-back of the funding and positions which the 
administration proposed to be funded in the ``Foreign law 
enforcement'' account. The Committee has denied the $4,700,000 
in ATF's base for the violence reduction alliance initiative. 
The Committee has reduced the account by $2,800,000 for ATF's 
support role in the GREAT Program. This funding has been 
shifted to the violent crime trust fund along with continued 
funding for GREAT grants to existing communities. Finally, the 
Committee has reduced administrative overhead object classes by 
$3,690,000 to be applied at the discretion of the Director. The 
reductions shall be applied to object classes 21.0, 22.0, 23.3, 
24.0, 25.0, 26.0, and 31.0. The reduction in the equipment 
activity should be restored to ATF's base in fiscal year 1997. 
Funding for counterterrorism initiatives has been included in 
the ``Violent crime trust fund'' account.

                                 arson

    The efforts of the Bureau of Alcohol, Tobacco and Firearms 
to control arson crime for profit warrant nothing less than 
unqualified support from the Congress. The investigative 
techniques and skills brought to arson crime investigations by 
ATF national response teams greatly enhance the potential for 
solution of these vicious acts.

                        collection of statistics

    The Committee directs the Bureau of Alcohol, Tobacco and 
Firearms to continue the monthly collection of statistics for 
the alcohol beverage industry. The Committee finds that any 
move to disseminate these statistics on a quarterly rather than 
on a monthly basis will create a vacuum for industry, concerned 
consumer interest groups, and Federal, State, and local 
agencies that depend on timely statistics to accurately gauge 
trends and patterns in their efforts to address industry 
problems, including alcohol abuse.

                   Federal alcohol administration act

    The Committee recognizes alcohol beverages as among the 
most socially sensitive commodities marketed in the United 
States. In this connection, marketing, labeling, and 
advertising of alcohol beverages must be accomplished in an 
environment which fosters fair and healthy competition while 
protecting the interests of the American consumer. The 
Committee expects that there be no diminution of alcohol-
related functions in fiscal year 1996.

               armed career criminal apprehension program

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

                         salaries and expenses
Appropriations, 1995....................................  $1,395,793,000
Budget estimate, 1996...................................   1,395,970,000
House allowance.........................................   1,392,429,000

Committee recommendation

                                                           1,387,153,000

    The Committee recommends an appropriation of $1,387,153,000 
for salaries and expenses of the U.S. Customs Service. This 
amount is $8,817,000 less than the budget estimate and 
$5,276,000 less than the House allowance.
    The U.S. Customs Service is the primary border enforcement 
agency and a major revenue producer. Customs administers and 
enforces the Tariff Act of 1930 and some 400 other provisions 
of laws and regulations of 40 other Federal agencies governing 
international traffic and trade. The mission is multifaceted 
and mandates the Service to:
  --Control, regulate, and facilitate the movement of carriers, 
        persons, and commodities between the United States and 
        other nations;
  --Protect the American consumer and the environment against 
        the introduction of hazardous and noxious products; and 
        protect American industry and the American worker 
        against unfair competition from foreign manufacturers;
  --Assess, collect, and protect the revenue accruing to the 
        United States from duties, taxes, and fees incident to 
        international traffic and trade;
  --Detect, interdict, and/or investigate:
        Smuggling and other illegal practices designed to gain 
            illicit entry into the United States of prohibited 
            articles, narcotics, and other contraband;
        Fraudulent activities calculated to avoid the payment 
            of taxes and fees, or to evade the legal 
            requirements of international traffic and trade;
        Illegal transfers of critical technology to foreign 
            nations for the building of their military systems, 
            thus posing a threat to our national security;
        Illegal international trafficking in arms, munitions, 
            and currency.

                        Committee recommendation

    The Committee recommendation transfers back $8,280,000 and 
36 FTE's to this account which the administration had proposed 
to be funded in the new ``Foreign law enforcement'' account. 
The Committee funding level restores funding of $5,190,000 for 
fiscal year 1995 initiatives as follows: +$2,310,000 and 35 
FTE's for marine enforcement; +$780,000 and 10 FTE's for the 
Corpus Christi Surveillance Center; and +$2,100,000 and 30 
FTE's for inspectors for the El Paso, TX, port of entry. The 
Committee has also included an increase of $13,300,000 for 
Operation Hardline. Additional funding for this initiative has 
been included in the ``Violent crime trust fund'' account.
    Finally, the Committee has reduced administrative overhead 
object classes by $15,221,000 to be applied at the discretion 
of the Commissioner. The reductions shall be applied to objects 
classes 21.0, 22.0, 23.3, 24.0, 25.0, 26.0, and 31.0.

                         container examination

    As the war against drug continues, each time a new strategy 
is devised by Federal, State, and local law enforcement, the 
narcotics traffickers adjust their smuggling tactics. Today it 
is estimated that over 70 percent of the cocaine coming into 
the United States transits the Southwest border. It is 
estimated that a large portion of that cocaine comes through 
the ports of entry on the border in commercial traffic.
    Customs has been working for years to develop x ray 
capabilities to search trucks without devanning them. Recent 
technological advancements have given Customs that capability. 
The unit in Otay Mesa, CA, has proven very successful in drug 
interdiction. Another unit will become operational in El Paso, 
TX, in the near term.
    The Committee has provided funding in the Supplemental 
Appropriations Act of 1995 and in this bill for Operation 
Hardline, which is directed at hardening the ports along the 
border. The Committee expects that funds appropriated in these 
respective bills will be used for x-ray technology, as well as, 
other initiatives.

                         commercial operations

    The duties of the Customs Service to facilitate the 
legitimate transport of goods being imported into the United 
States and exported to overseas markets are directly linked to 
the economic well-being of our Nation. In addition, the 
revenues derived from the collection of duties, merchandise 
fees, and other commerce-related services help support Federal 
deficit reduction efforts. Commercial operations of the Customs 
Service serve the national trade policy by: (1) collecting 
revenues from imported merchandise; (2) enforcing the laws and 
regulations of other Federal agencies as well as international 
agreements; (3) ensuring uniformity in the implementation of 
trade procedures; (4) accurately collecting and reporting 
import/export statistics; and (5) providing efficient services 
to international trade. In addition, importer records are 
audited to deter potential illegal activities and to protect 
the revenue. Estimates are that Customs will process 469 
million international travelers, 138 million conveyances, and 
over 14 million formal import entries, collecting over 
$28,000,000,000 in revenue from duties, merchandise fees, and 
other commerce-related activities which supported Federal 
deficit reduction efforts.

          inspection staffing, southwest border ports of entry

    The Committee continues to believe that Customs should give 
priority to the funding of adequate personnel levels to man the 
new and expanded ports of entry along the Southwest border 
which have been funded under the United States-Mexico Capital 
Improvements Program. New facilities should be properly staffed 
and equipped to permit full utilization of the facilities and 
enable the United States to meet increasing trade demands.

                       national guard assistance

    The Committee wishes to commend the National Guard for its 
efforts in support of the U.S. Customs Service drug 
interdiction mission. The National Guard provides invaluable 
assistance to the Customs Service by conducting intensive 
narcotics examinations in the passenger and commercial 
environments. It assists by searching conveyances and targeted 
cargo alongside customs inspection personnel, and by acting as 
a force multiplier. The Guard dismantle vehicles and hidden 
compartments with specialized tools, x ray cargo and personal 
effects, and operates other detection technologies. In 
addition, National Guard personnel assist Customs with 
operational case support, intelligence analysts, and linguistic 
support.
    At the end of May 1995, approximately 590 National Guard 
personnel were deployed in Customs-related activities 
nationwide with approximately 100 supporting the Southwest 
border and 75 supporting the State of Florida's narcotics 
interdiction efforts at the ports of entry. National Guard 
support has enhanced the number of examinations that Customs 
has been able to carry out by 20 to 25 percent.
    The work of the National Guard in support of the Customs 
mission is invaluable, especially during this time of fiscal 
restraint. Even though staff and funding resources are scarce, 
the challenge to stop the importation of illegal narcotics 
continues. The interdiction activities of the National Guard 
and the Customs Service demonstrate continued cooperation in 
the law enforcement community and provides an example of 
creative problem-solving and efficient use of resources. The 
Committee strongly encourages the continued partnership between 
the Customs Service and the National Guard to meet the 
interdiction challenge.

         staffing and service levels at customs ports of entry

    The Committee continues to believe that the services 
provided through the Charleston, WV, Customs office are very 
important to the State of West Virginia and the Nation as a 
whole. For this reason, the Committee expects the Service to 
maintain the level of services provided in fiscal year 1995 
through fiscal year 1996 at this office. The Committee 
continues to believe that the policy of providing part-time and 
temporary inspectors at the Honolulu International Airport is 
an effective way to handle the large and increasing volume of 
passengers arriving and departing this very busy airport in 
Hawaii. The Committee has again included $750,000 for part-time 
and temporary positions in the Honolulu Customs District. This 
action is intended to enhance and not supplant current staffing 
levels. Amounts included in this account are sufficient to 
maintain staffing at this airport through fiscal year 1996 at 
the fiscal year 1995 level. The inspection staffing along the 
Southwest border has increased the number of seizures of 
illegal contraband, and consequently the need for agents 
dedicated to investigation of these cases has increased. In 
fiscal year 1994, the Committee directed the Customs Service to 
increase the number of agents in New Mexico by 10 to meet the 
rising need. The Committee urges that Customs take continued 
action to meet the increasing demands on the work force in New 
Mexico. Customs should give high priority to the funding of 
sufficient inspection personnel at ports of entry in the State 
of Florida for fiscal year 1996.

                  PORT OF BROWNSVILLE/MATAMOROS BRIDGE

    The Port of Brownsville submitted its formal application 
for a commercial bridge project in October 1991. Customs 
indicated that the bridge was among its top priorities for new 
border stations. During binational meetings between Mexico and 
the United States in May of this year the port's Presidential 
permit application was elevated to the active consideration 
list, with the State Department indicating its intentions to 
give high priority to the review of the port's final revised 
documentation.
    The Committee notes that the Port of Brownsville has agreed 
to finance all of the U.S. portion of the bridge, including all 
of the U.S. Customs, Immigration and Naturalization Service, 
and Agriculture inspection facilities. Additionally, the port 
and the State of Tamaulipas, Mexico intend to structure the 
project in such a way that all of the Mexican infrastructure, 
including access roads, would be financed by private sector, 
not Government, funding.
    The Committee recommends that Customs explore the 
possibility of meeting staffing requirements of the proposed 
new port bridge on a reimbursable basis when the bridge is 
projected to open in fiscal year 1998.

                           CHILD PORNOGRAPHY

    The Committee is concerned that there has been steady and 
significant decreases in the number of calls placed to the 
Child Pornography Tipline. Tipline calls have, in the past, 
resulted in a substantial number of successful prosecutions for 
child pornography violations. The Committee, therefore, directs 
the U.S. Customs Service to provide $50,000 from available 
funds to promote public awareness for the Child Pornography 
Tipline in fiscal year 1996. The Committee recommends that the 
U.S. Customs Service coordinate this promotional effort with 
the National Center for Missing and Exploited Children and the 
U.S. Postal Service to ensure that the publicity is diversified 
and effective.

                  Canadian Private Aircraft Reporting

    It has come to the attention of the Committee that Customs 
is planning implementation of a telephonic private aircraft 
reporting system for general aviation aircraft arriving in the 
United States from Canada. The Committee is concerned about the 
potential for contraband smuggling from such a system, 
particularly if the aircraft would not be subjected to routine 
inspections by Customs personnel upon entry. For this reason, 
the Committee instructs the Commissioner of Customs to not take 
any action which will put such a reporting system in place 
until the Committee has been sufficiently briefed on the system 
and enforcement implications have been addressed.
                   HARBOR MAINTENANCE FEE COLLECTION
Appropriations, 1995....................................................
Budget estimate, 1996...................................      $3,000,000
House allowance.........................................       3,000,000

Committee recommendation

                                                               3,000,000

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

    operation and maintenance, air and marine interdiction programs
Appropriations, 1995....................................     $89,041,000
Budget estimate, 1996...................................  \1\ 60,993,000
House allowance.........................................      60,993,000
Committee recommendation................................      68,543,000

\1\ In fiscal year 1996, appropriations and unobligated balances in 
support of four air and marine interdiction operations accounts totaling 
$20,101,000 will supplement the appropriation.

    The Committee recommends an appropriation of $68,543,000 
for operation and maintenance activities of the Customs air and 
marine interdiction programs. This amount is $7,550,000 above 
the budget request and the House allowance. This amount will be 
enhanced by $20,101,000 in prior-year unobligated balances 
remaining in this and other air and marine accounts.
    The operation and maintenance, air and marine interdiction 
programs will cover expenses incurred by the Customs Service 
for operating and maintaining aircraft, boats, radar, and 
equipment necessary to carry out its air and marine 
interdiction missions. This account also includes operational 
training, mission-related travel, and special operations 
directly associated with the air and marine interdiction 
programs. This account covers the essential costs associated 
with operating and maintaining the military aircraft and 
equipment that has been, and will continue to be, loaned to 
Customs for use in its air interdiction mission.
    The Customs Service is the frontline in drug interdiction. 
The air and marine efforts compose a major element of the 
country's firstline interdiction effort. In recent years the 
strategy has changed, but the problem remains the same. The 
Committee has iterated over and over how important air and 
marine efforts are to deterring narcotics smuggling. These 
efforts have proven extremely effective. The change in the drug 
control strategy does not eliminate the need for continued 
vigilance. The Committee continues to maintain a keen interest 
in air and marine activities and reminds the Service that air 
and marine interdiction are and shall be a top priority.

                  air and marine interdiction strategy

                              P-3 Program

    The Committee continues to support the P-3 airborne early 
warning [AEW] aircraft program and the aircraft's preeminent 
role in the air interdiction program.
    The Committee is pleased to note that the Customs P-3 AEW's 
are playing a major role in carrying out the defense-in-depth 
drug interdiction strategy that is integral to the overall 
national drug control strategy. The Committee directs that 
there be no diminuition of P-3 flight hours in fiscal year 
1996.

                          Transfer of Aircraft

    The Committee has once again included language in the bill 
which prohibits the transfer of any Customs aircraft outside 
the Department of the Treasury except for damaged, one of a 
kind, or obsolete aircraft with prior Committee approval. The 
Committee notes that the appropriation language contained in 
the bill on the transfer of aircraft should not be interpreted 
or viewed in any way as a limitation on the authority of the 
U.S. Customs Service to acquire aircraft by means other than 
commercial purchase. Furthermore, the Committee reaffirms the 
intent of the Congress in prior years that the Customs Service 
is authorized to acquire aircraft through means such as seizure 
for violations of law and by transfer from other agencies. The 
Committee has included statutory authority for the Customs 
Service to continue acquiring seized aircraft which have been 
confiscated as a result of legal action against a violator of 
Customs laws and to acquire aircraft and equipment from other 
Federal agencies, including the Department of Defense.

                         UH-60 BLACKHAWK SAFETY

    The Committee has expressed its concern in the past about 
safety of aircrews and aircraft during night missions against 
air smuggling. The lack of appropriate night vision 
capabilities, such as forward looking infrared radar [FLIR] 
sensors, limits the capabilities of the Blackhawks, as well as, 
raising safety issues. Installation of this equipment would 
enhance capabilities and enhance crew safety.

                        committee recommendation

    The Committee recommendation fully funds the requested 
level and increases this amount by $7,550,000 to restore fiscal 
year 1995 initiatives as follows: +$3,000,000 for Blackhawk 
operations and maintenance; +$850,000 for marine interdiction 
operations and maintenance; and $3,700,000 for citation 
training missions in Mexico.

                   customs services at small airports

                  (to be derived from fees collected)
Appropriations, 1995....................................      $1,406,000
Budget estimate, 1996...................................       1,406,000
House allowance.........................................       1,406,000

Committee recommendation

                                                               1,406,000

    The Committee recommends an appropriation of $1,406,000 for 
customs services at certain small airports. These services are 
to be paid from user fees collected at each of these small 
airports. The Committee funding recommendation for fiscal year 
1996 for this account is the same as the budget request and the 
House allowance.
    The Trade and Tariff Act of 1984 (Public Law 98-573) 
authorizes the U.S. Customs Service to impose user fees for 
services at certain small airports where the volume or value of 
business is insufficient to justify the availability of customs 
services. The fee will be equal to the expenses incurred in 
providing the services.
    The legislation authorizes Customs to charge a fee for 
services at certain designated airports and locations 
designated by the Secretary of the Treasury. (The Governor of 
the State in which such airport is located must also approve 
the designation.)
    Fees which are collected at each airport are deposited into 
an account within the Treasury of the United States 
specifically designated for that airport. The funds in the 
account are only available for expenditures relating to the 
provision of customs services at each airport, including 
salaries and expenses of personnel employed to provide such 
services.
    The amount of funding provided in fiscal year 1996 will 
permit Customs to serve 27 designated user fee airports with a 
staffing level of 30 full-time permanent positions.

                               U.S. Mint

                         salaries and expenses
Appropriations, 1995....................................     $55,740,000
Budget estimate, 1996...................................      58,261,000
House allowance.........................................................

Committee recommendation

                                             ...........................

    The Committee recommends no appropriation for the salaries 
and expenses of the U.S. Mint. Instead the Committee has 
concurred with the House by including bill language (section 
522) to establish a revolving fund for mint coinage operations 
in fiscal year 1996, and thereafter.
    The Mint manufactures coins, receives gold and silver 
bullion, safeguards the Government's holdings of monetary 
metals, and refines gold and silver bullion. The manufacture of 
domestic coins is the major activity of the Mint. Coins are 
ordered from the Mint by the Federal Reserve banks in 
quantities required for the country's business transactions. 
Thus, the volume of the coinage program is determined by the 
public need for coins. In fiscal year 1996 the Mint will 
produce approximately 19.5 billion coins. This coinage 
production level represents an increase of 2 billion above that 
to be produced in fiscal year 1995.

                          MINT REVOLVING FUND

    The establishment of a revolving fund for mint operations 
has been discussed for a number of years. Production of coins 
is driven by demand and it has become apparent that the 
variability of annual appropriations has placed a burden of 
production operations.
    This does not mean, however, that the Committee is 
abdicating its annual review of mint operations. The Committee 
fully concurs with the directives included in House Report 104-
183, which accompanies this bill.
    The fund shall not pay out more than 6.2415 percent of the 
nominal value of the coins minted for the purpose of funding 
circulating coin operations and programs during the first year 
of the fund's operation.

                    Bureau of Engraving and Printing

    The Bureau of Engraving and Printing, the world's largest 
securities manufacturing establishment, operates on the basis 
of authority conferred upon the Secretary of the Treasury by 31 
U.S.C. 321(a)(4) to engrave and print currency and security 
documents. Additional authority is derived from past 
appropriations made to the Bureau for work to be undertaken. 
The operations of the Bureau are currently financed by means of 
a revolving fund established in accordance with the provisions 
of Public Law 81-656, August 4, 1950 (31 U.S.C. 5142). This 
fund is reimbursed by other Government agencies for the direct 
and indirect costs of the Bureau, including its administrative 
expenses, incidental to performing the work or services 
requisitioned.
    Public Law 95-81, July 31, 1977 (31 U.S.C. 5142(c)(3)) 
increased the Bureau's fund and authorized the establishment of 
reimbursement prices from customer agencies at a level intended 
to provide funding for the acquisition of capital equipment and 
future working capital. This should preclude future requests 
for appropriations.
    The Bureau designs, manufactures, and supplies most of the 
major evidences of a financial character issued by the United 
States. It is the sole source of U.S. currency, various public 
debt instruments, as well as most other evidences of a 
financial character issued by the United States, such as 
postage stamps. The Bureau executes certain printings for 
various territories administered by the United States, 
particularly postage and revenue stamps. It conducts extensive 
research and development programs for improving the quality of 
products, reducing manufacturing costs, and for strengthening 
deterrents to the counterfeiting of Government securities. It 
manufactures inks and plates used for its products; purchases 
materials, supplies, and equipment; provides maintenance 
services for its buildings and plant machinery and equipment; 
and stores and delivers its products in accordance with 
requirements of customer agencies. The Bureau is responsible 
for the accountability and destruction of its security waste 
products. The Bureau also renders services to other Government 
agencies such as security, custodial, and elevator services in 
areas of its buildings occupied by another Treasury bureau.
    The total cost of sales and services by the Bureau of 
Engraving and Printing is estimated to be $445,000,000 in 
fiscal year 1996, or an increase of $16,000,000 from the fiscal 
year 1995 estimated level.
    The budget estimates are determined primarily by two 
factors; namely, (1) the volume of production of the various 
items needed to meet the estimated requirements of customer 
agencies, and (2) the unit cost of manufacturing each type of 
item produced. The unit cost of production of each item 
manufactured is developed through a detailed system of cost 
accounting and adjusted to reflect all known factors which will 
affect the cost of production during the current budget year. 
Such factors include pay rate and material price increases 
expected to occur during the current year, as well as estimated 
savings resulting from improvements in production procedures.
    No direct appropriation is required to cover the activities 
of the Bureau.

            Ownership and Production of U.S. Currency Paper

    To maintain the integrity of U.S. currency, the U.S. 
Government must ensure the security of currency paper. Any 
change to laws or regulations which may affect ownership, 
production, or delivery or other related handling of U.S. 
currency paper must include the strongest security safeguards. 
The U.S. Secret Service and the Bureau of Engraving and 
Printing have a longstanding history of providing such 
safeguards. Any changes to current handling must permit these 
agencies to continue to have the tools and access to currency 
paper facilities and records to perform certain record 
inspections and monitor the location and movement of such 
paper. As a consequence, the Committee believes that all 
production of currency paper must be located within U.S. 
borders or possessions. Activities by the Secret Service and 
the Bureau of Engraving and Printing should not be interfered 
with or altered or interrupted as the result of any change in 
ownership or increased participation by foreign entities.
                       Bureau of the Public Debt

                     administering the public debt
Appropriations, 1995....................................    $183,458,000
Budget estimate, 1996...................................     176,965,000
House allowance.........................................     170,000,000

Committee recommendation

                                                             170,000,000

    The Committee recommends an appropriation of $170,000,000 
for the Bureau of the Public Debt in fiscal year 1996. The 
Committee recommendation is the same as the House allowance and 
$6,965,000 below the budget estimate.
    The Bureau of the Public Debt is responsible for 
administering the laws and regulations pertaining to public 
debt financing and operations within the framework of policies 
established by the Secretary of the Treasury. The Bureau's 
primary concerns are with the issuance, servicing, and 
retirement of public debt securities, and accounting for the 
public debt and its related interest cost. It also has a 
general responsibility for the conduct or direction of 
transactions in public issues of those Government agencies for 
which the Treasury acts as agent.
    This appropriation currently provides funds for: the direct 
operating costs of the Bureau of the Public Debt including the 
Office of U.S. Savings Bonds, which was reorganized into one 
entity in fiscal year 1994; the payment of fees at stipulated 
rates to financial institutions and others; and the payment of 
postage and registry fees to the U.S. Postal Service for 
delivering securities.
    The Office of U.S. Savings Bonds is charged with reducing 
Federal spending by promoting the sale and retention of U.S. 
savings bonds. In addition to helping the U.S. Government 
finance its debts in the least expensive and least inflationary 
way possible, savings bonds provide Americans with an 
effective, systematic way to save through the payroll savings 
plan. The program is also intended to create a partnership of 
direct participation of American business, labor, banking, 
media, and community groups, as well as to provide the 
opportunity for all citizens to voluntarily participate in the 
financing of their Government.

                        committee recommendation

    The Committee recommendation will support an FTE level of 
2,026 or 51 less than the fiscal year 1995 level. The Committee 
has reduced the request by $6,965,000 and expects the Bureau to 
seek offsetting user fee collections over and above those 
assumed in the budget for 1996.
                        Internal Revenue Service

                                summary

    The Committee has recommended a total of $7,307,208,000 for 
the Internal Revenue Service [IRS] in fiscal year 1996. This 
amount is $803,437,000 below the budget estimate and 
$201,626,000 below the the enacted level for the three accounts 
under the Internal Revenue Service.

                 processing assistance, and management
Appropriations, 1995....................................  $1,511,266,000
Budget estimate, 1996...................................   1,805,042,000
House allowance.........................................   1,682,742,000

Committee recommendation

                                                           1,767,309,000

    The Committee recommends an appropriation of $1,767,309,000 
for processing tax assistance and management. This amount is 
$37,733,000 below the fiscal year 1996 request and $84,567,000 
above the House allowance.
    The ``Processing, assistance, and management'' 
appropriation provides for processing tax returns and related 
documents; assisting taxpayers in the correct filing of their 
returns and in paying taxes that are due; protecting public 
confidence in the integrity of the IRS; overall planning and 
direction of the Internal Revenue Service; providing 
administrative services and support for selected IRS 
facilities; and management of the Service's financial resources 
and procurement programs necessary to fulfill the Service's 
mission in performing tax administration.
    Mission statements of each of the program activities under 
this account are as follows:
    Returns processing.--Process tax returns, account for tax 
revenues, issue refunds and tax notices, and provide tax 
returns to the compliance functions.
    Taxpayer services.--Inform taxpayers of their 
responsibilities and provide services and information through 
various media which assist them in meeting their obligations.
    Inspection.--Promote public confidence in the integrity of 
the IRS.
    Management services.--Set policy direction and goals for 
servicewide management, administration, strategic and 
organizational planning, and development of human, logistical, 
and financial resources required to accomplish the Service's 
mission in performing tax administration.
    Resources management.--Provide support to the national 
office, service centers, submission processing sites, customer 
service sites, and area distribution centers to assist program 
functions in meeting their tax administration responsibilities.

                        committee recommendation

    Due to funding constraints, the Committee has reduced 
requested program enhancements by $20,925,000 and 373 FTE's. In 
addition, the Committee has reduced administrative overhead 
object classes by $16,808,000, to be applied at the discretion 
of the Commissioner. The reductions shall be applied to object 
classes 21.0, 22.0, 23.3, 24.0, 25.0, 26.0, and 31.0.

                     tax counseling for the elderly

    The Committee once again believes that the Tax Counseling 
Program for the Elderly has proven to be most successful, as 
evidenced by a recent GAO report. To meet the goals of this 
program, $3,700,000 is included within the aggregate amount 
recommended by the Committee for processing tax returns and 
assistance in fiscal year 1996. This amount represents the same 
level as provided for this program in fiscal year 1995. To 
ensure that the full effect of the program is accomplished, the 
IRS is directed to cover administrative expenses within 
existing funds.

                          GASOLINE TAX REFUNDS

    Over the past year the Committee has expressed its concern 
about the failure of the IRS to refund gasoline taxes in a 
timely manner. Since this issue was raised in the report 
accompanying Public Law 103-329, some improvement has been 
shown; however, there is still room for improvement. The 20-day 
refund schedule for diesel fuel seems an appropriate target for 
gasoline.

                        Newport, VT, IRS Office

    The Committee instructs the Commissioner of Internal 
Revenue to allocate $450,000 and 16 FTE's to the Newport, VT, 
IRS development site for the processing of SS-8 forms, 
determination of employee work status for purposes of Federal 
employment taxes, and income tax withholding.

                          tax law enforcement
Appropriations, 1995....................................  $4,385,459,000
Budget estimate, 1996...................................   4,524,351,000
House allowance.........................................   4,254,476,000

Committee recommendation

                                                           4,097,294,000

    The Committee recommends an appropriation of $4,097,294,000 
for tax law enforcement activities in fiscal year 1996. This 
amount is $427,057,000 below the budget estimate and 
$157,182,000 below the House allowance.
    The tax law enforcement appropriation provides for the 
examination of tax returns, both domestic and international, 
and the administrative and judicial settlement of taxpayer 
appeals of examination findings. It also provides for technical 
rulings, monitoring employee pension plans, determining 
qualifications of organizations seeking tax-exempt status, 
examining tax returns of exempt organizations, enforcing 
statutes relating to detection and investigation of criminal 
violations of the internal revenue laws, collecting unpaid 
accounts, compiling statistics of income and compliance 
research, and securing unfiled tax returns and payments.
    The examination activity encourages voluntary compliance 
with the internal revenue laws through the determination of 
correct tax liability by the selective examination of tax 
returns, the correction of errors, and explanation of these 
corrections to taxpayers.
    The appeals, tax litigation, and technical activity, under 
the Office of the Chief Counsel, is primarily involved with 
those cases in which taxpayers disagree with examination 
results. The appeals function provides an independent 
administrative review with the objective of reaching impartial 
settlement.
    The tax fraud and financial investigations activity is 
responsible for investigating criminal violation of the 
Internal Revenue laws. It investigate's cases of suspected 
intent to defraud, recommends prosecution as warranted, and 
assists in the preparation and trial of criminal tax cases. In 
addition, financial investigations expose money laundering 
schemes through a variety of methods, including currency 
transaction reports.
    The collection activity collects unpaid accounts, as well 
as securing unfiled tax returns and payments. It develops and 
implements programs to prevent tax accounts from becoming 
delinquent; determines and analyzes reasons for tax accounts 
that become delinquent; and develops, implements, and measures 
programs that analyze the reasons for types and degrees of 
nonfiling.
    The statistics of income activity publishes statistics of 
income reports on the operation of income tax laws, as required 
by the Internal Revenue Code for the Congress and its 
committees; for administrative use by the Secretary of the 
Treasury and the Commissioner of Internal Revenue; and for the 
Federal benchmark statistical programs on income, wealth, and 
finance.
    The employee plans and exempt organizations activity 
monitors private pension plans to ensure compliance with the 
Employee Retirement Income Security Act of 1974, as amended. 
Organizations apply for tax-exempt status, which is determined 
by this activity, through the application of certain tests. By 
monitoring tax returns of tax-exempt organizations, it monitors 
and ensures compliance with current tax laws regarding tax-
exempt organizations.
    The international activity is responsible for directing IRS 
enforcement and assistance programs as they relate to U.S. 
taxpayers performing business or residing outside the 
continental United States and nonresident aliens with U.S. tax 
obligations.
    This activity also provides technical tax training and 
administrative assistance to foreign governments and provides 
compliance and taxpayer service support to Puerto Rico, the 
Virgin Islands, and certain Pacific island jurisdictions.
    The document matching activity processes information 
returns such as wage, dividend, and interest statements with 
related individual income tax returns. This activity enables 
the IRS to identify income reporting discrepancies, 
unsubstantiated deductions, the nonfiling of tax returns, and 
to verify facts and amounts in question through taxpayer 
contact.

                        committee recommendation

    Due to funding constraints, the Committee has had no choice 
but to reduce program enhancements totaling $23,207,000 and 189 
FTE's, and $405,000,000 that would have been used for the 
second-year of the 1995 revenue compliance initiative. The 
Committee has transferred back $1,150,000 and five FTE's from 
the administration proposed ``Foreign law enforcement'' 
account.

                          information systems
Appropriations, 1995....................................  $1,386,510,000
Budget estimate, 1996...................................   1,781,252,000
House allowance.........................................   1,571,616,000

Committee recommendation

                                                           1,442,605,000

    The Committee recommends an appropriation of $1,442,605,000 
for information systems activities in fiscal year 1996. The 
Committee recommendation is $338,647,000 below the budget 
request and $129,011,000 below the House allowance.
    The information systems appropriation provides for 
servicewide data processing support, including the evaluation, 
development, and implementation of computer systems, software, 
and hardware requirements.
    Tax systems modernization (modernized developmental 
systems).--This activity provides for major redesign and 
acquisition of the basic information systems infrastructure 
needed to achieve a fully integrated framework for tax 
administration operations. This includes implementing a 
redesigned tax administration system, developing a target 
architecture, replacing equipment at major field installations, 
and executing other major redesign efforts.
    Modernized operational.--This activity includes those tax 
systems modernization projects that have advanced from the 
developmental phase of activity to an operational mode after 
servicewide implementation and acceptance.
    Services and compliance.--This activity provides automation 
support for the processing, assistance and management, and tax 
law enforcement appropriations. The systems in this activity 
direct IRS compliance and enforcement programs including: 
examining tax returns, collecting unpaid accounts, securing 
delinquent returns, investigating tax fraud, resolving tax 
disputes, and determining tax liability status or exemption of 
organizations. This activity also provides automation support 
for processing tax and information returns, issuing refunds and 
notices, accounting for tax revenue, and assisting taxpayers 
with their tax obligations.
    Support systems.--This activity provides automation support 
for all IRS administrative programs, including management and 
financial information, logistics, payroll and personnel, and 
internal audit and security automation. This activity also 
provides the support that ensures the efficient functioning of 
payroll and personnel systems, financial systems, resource 
inventory systems, and quality assurance efforts.

                        committee recommendation

    Due to funding constraints, the Committee reduced the 
request by $338,647,000 and 95 FTE's. Service and staffing 
levels at the Beckley and Martinsburg, WV, IRS facilities shall 
be maintained at the current year levels during fiscal year 
1996.

                       TAX SYSTEMS MODERNIZATION

    The Committee continues to be committed to the long-term 
modernization of IRS's antiquated tax processing, collection, 
and taxpayer account systems. To date, the Congress has 
appropriated $2,500,000,000 for tax systems modernization [TSM] 
against a revised total project cost of approximately 
$7,000,000,000. Despite shrinking budgets, the Committee 
remains committed to this program has provided funding of 
$674,066,000 for TSM in fiscal year 1996. However, the 
Committee continues to be seriously concerned about IRS's 
management of this program both from a planning and 
implementation standpoint.
    Ongoing reviews by the General Accounting Office reveal 
critical deficiencies and weaknesses which have not been 
addressed. GAO compared IRS's business strategies, management 
infrastructure, and organizational effectiveness with best 
practices in the private sector nationwide. It found that IRS 
does not presently have in place an infrastructure which will 
ensure delivery of a modernized tax system.
    While efforts are underway, IRS has not yet implemented or 
institutionalized specific infrastructure plans, and has 
formulated no official plans or schedules which should 
constitute the basic blueprint, defining how and when this 
infrastructure will be used to manage modernization projects. 
In addition, the IRS has not completed a definition of explicit 
decision criteria to evaluate and prioritize its information 
technology investments. It does not have in place an effective 
process for selecting, prioritizing, controlling, and 
evaluating the progress and performance of all major 
information systems investments, both new and ongoing.
    With respect to software development, GAO compared IRS 
processes to those required by the Software Engineering 
Institute for level 2 maturity. GAO found that IRS is rated 
level 1 on a scale of 1 to 5 because of significant weaknesses 
in all key process areas. It has no detailed procedures for 
engineers and project managers to follow, and its software 
development activities are inconsistent, unpredictable, and 
poorly controlled.
    The key component of modernization is to realize a goal of 
80 million tax return filings via electronic submissions by the 
year 2001, to achieve a virtually paperless processing system. 
To date, IRS has only reached the 15 million electronic filings 
level. Even if the 80 million electronic filings objective were 
to be achieved, which now appears unlikely, this would still 
only ensure that 35 percent of the filings were processed 
electronically leaving 65 percent of the returns filed through 
traditional paper methods.
    The Committee is seriously concerned that the current 
methods do not permit the individual taxpayer to electronically 
file returns through home computers. While a taxpayer can 
purchase returns filing software, a taxpayer cannot transmit 
the completed return to IRS because IRS systems are incapable 
of receiving the return. The taxpayer must go to a practitioner 
who provides this service and pay a cost for the transmission.
    In order to establish credibility in IRS's ability to 
manage and implement a workable, efficient, and cost-effective 
systems modernization program, the Committee directs that 
certain milestones be completed by July 1, 1996.
    The milestones are as follows: (1) refocus the business 
strategy to maximize electronic submissions, aggressively 
targeting those sectors of the taxpaying populations that can 
file electronically most cost beneficially; (2) define and 
commit to a plan and schedule for completing and 
institutionalizing process improvements in these key areas: 
strategic information management; software development 
capability; cost/benefit analyses; and data, security, and 
interoperability architectures; and (3) establish at least a 
level 2 as a mandatory requirement for all contractors 
developing software for the agency.
    By December 1995, the Committee expects IRS to complete the 
following: define, implement, and mandate a consistent set of 
procedures for software development and enforce the use of 
these procedures on all software projects; define and implement 
a set of software development metrics that measure software 
attributes that relate to business goals; complete integrated 
systems architecture including security, telecommunications, 
network management, and data management; institutionalize 
formal configuration management process for all newly approved 
projects and upgrades and develop a transition plan for ongoing 
projects; develop security concept of operations, disaster 
recovery, and contingency plans for the modernization vision 
and ensure these requirements are addressed when developing 
information system projects; develop a test and evaluation 
master plan for the modernization; and establish an integration 
test and control facility.
    Finally, the Committee expects IRS to complete the 
modernization integration plan and ensure that projects are 
monitored for compliance with modernization architectures.
    Until these milestones are met, the funds provided for tax 
systems modernization will be fenced. Once GAO certifies to the 
Committee that IRS has met these milestones, the Committee will 
give the required approval for the obligation of TSM funds 
provided in fiscal year 1996.
    As indicated last year, it is not the intent of the 
Committee that reductions to the amount requested be applied 
disaproportionately to contracted efforts. In particular, the 
Committee anticipates that the strategic replanning required to 
implement the 1996 funding level will require more intensive 
utilization of the IRS's federally funded research and 
development center.
    Despite the changes made by the IRS in the TSM program the 
Committee remains concerned about the number of FTE's dedicated 
to the TSM program. IRS continues to insist that it takes 2,900 
FTE's to run the program. In fact, the fiscal year 1996 budget 
request indicated an additional 95 FTE's would be needed to 
supplement the already onboard strength. The Committee has 
denied that request and reiterates that there is a need for the 
IRS to rely on outside sources to design the system.
    TSM needs to be managed by the IRS. The private sector has 
far more experience in designing and implementing systems. IRS 
should be dedicating its efforts to ensure the appropriate 
system is procured to meet tax systems needs. It should not be 
in the design business. The Committee, once again, takes this 
opportunity to reassert that the IRS is a revenue collection 
agency, not an automation design company.

                     irs--administrative provisions

    The Committee has recommended approval of the following 
administrative provisions for the Internal Revenue Service.
    Section 1 authorizes the IRS to transfer up to 2 percent of 
any appropriation made available to the agency in fiscal year 
1996, to any other IRS account. The IRS is directed to follow 
the committee's reprogramming procedures outlined earlier in 
this report.
    Section 2 is a provision which maintains a training program 
in taxpayer's rights and cross-cultural relations.
                          U.S. Secret Service

                         salaries and expenses
Appropriations, 1995....................................    $483,606,000
Budget estimate, 1996...................................     579,628,000
House allowance.........................................     542,461,000

Committee recommendation

                                                             534,502,000

    The Committee recommends an appropriation of $534,502,000 
for the U.S. Secret Service in fiscal year 1996. This amount is 
$45,126,000 below the budget estimate and $7,959,000 below the 
House allowance.

                        committee recommendation

    The Committee recommends the increased amount requested by 
the administration which will cover the costs of mandatory 
workload increases necessitated by the upcoming 1996 summer 
olympics ($3,278,000) and initiation of candidate nominee 
protection activities related to the 1996 Presidential campaign 
($39,403,000).
    The Committee denies the request for $16,295,000 associated 
with the move to the new headquarters building, and instead 
utilizes that funding to restore base funding requirements to 
fund 140 FTE eroded from the base in previous years. The 
request of $1,200,000 for a mainframe computer replacement and 
$1,100,000 for financial systems enhancements are also denied. 
Partial funding for counterterrorism activities are included in 
the ``Violent crime trust fund'' account.
    The Committee has transferred back 17 FTE's and $3,100,000 
from the administration proposed ``Foreign law enforcement'' 
account. In addition, the Committee has reduced administrative 
overhead object classes by $7,646,000 to be applied at the 
direction of the Director. The reductions are to be taken from 
object classes 21.0, 22.0, 23.3, 24.0, 25.0, 26.0, 31.0.

                        secret service functions

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

                 counterfeiting of u.s. currency abroad

    The Committee, again, expresses concern over the dramatic 
increase in the counterfeiting of U.S. currency in foreign 
countries. This increase represents a serious assault on the 
integrity of our Nation's currency. The Committee has supported 
the efforts of the U.S. Secret Service in combatting this 
growing problem by providing funding in fiscal 1995 
appropriations bill to increase overseas staffing in existing 
offices and establish new foreign offices where needed.
    Despite the Committee's interest, concern, support, and 
funding, as well as the clear expression and direction it has 
given to the Treasury Department, the additional staffing and 
new offices have yet to be realized. While cognizant of the 
efforts of the Secret Service through task forces and temporary 
assignments, the Committee remains committed in its belief that 
a permanent presence and increased staffing are essential in 
order to successfully protect the integrity of our currency 
around the world.
    On March 1, 1995, as required by the Committee, the Secret 
Service provided a report detailing their efforts to establish 
additional overseas offices. Additionally, the same report 
reflected efforts to enhance staffing at certain of its 
existing overseas offices. A total of 28 positions were 
addressed.
    The Committee continues to focus on anticounterfeiting 
activity by the Secret Service. The continuing increase of 
foreign counterfeiting activity confirms that the attention is 
warranted. On that basis, the Committee reemphasizes that every 
effort be made to realize each of the positions. It is 
understood that the Department of the Treasury concurs with the 
deployment of Secret Service agents as cited in the March 1, 
1995, report.
    The Committee directs the Secret Service to proceed in 
taking the necessary action required to increase staffing and 
establish additional foreign offices in those countries which 
require such a presence. The Committee also directs the Secret 
Service to report by February 1, 1996, on the progress of this 
initiative and to identify any obstacles which may be impeding 
or delaying such action.

           Violent Crime Control and Law Enforcement Funding
Appropriations, 1995....................................     $38,700,000
Budget estimate, 1996...................................      78,200,000
House allowance.........................................      63,886,000

Committee recommendation

                                                              75,500,000
                    Violent Crime reduction program

    The Committee has provided $75,500,000 for Treasury 
enforcement activities as follows: $24,700,000 and 24 FTE's for 
the Bureau of Alcohol, Tobacco and Firearms, of which no less 
than $21,200,000 shall be available to annualize the salaries 
and related costs for the fiscal year 1995 counterterrorism 
initiative, and of which no less than $3,500,000 and 24 FTE's 
shall be made available for administering the GREAT Program; 
$7,200,000 for support of existing gang resistance, education, 
and training [GREAT] projects; $21,600,000 for the U.S. Secret 
Service to support White House security and anticounterfeiting 
activities and the hiring of an additional 150 FTE's, and of 
which no less than $1,600,000 shall be available for enhancing 
forensics technology to aid missing and exploited children 
investigations; $17,500,000 for the U.S. Customs Service to 
support Operation Hardline; $2,000,000 for expanding training 
at Federal Law Enforcement Training Center facilities; and 
$2,500,000 which shall be available to the Financial Crimes 
Enforcement Network for enhancing information systems 
technologies.

                 gang resistance education and training

    The Committee continues to be extremely supportive of ATF's 
Gang Resistance Education and Training [GREAT] Program. The 
$7,200,000 provided in fiscal year 1996 shall be used to 
support existing ATF GREAT projects funded in fiscal year 1995 
at or above fiscal year 1995 levels. The remaining $3,500,000 
and 24 FTE's is to support ATF's oversight and management of 
the GREAT Program.

                       DEPARTMENT OF THE TREASURY

                           General Provisions

    The Committee recommends that certain general provisions be 
included in the Senate bill. The provisions do the following:
    Section 101 pertains to reprogramming instructions for 
unobligated funds.
    Section 102 authorizes certain basic services within the 
Treasury Department in fiscal year 1996, 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 104 establishes certain codes of conduct for 
employees of the Internal Revenue Service in carrying out their 
tax collection duties.
    Section 105 requires the IRS to institute policies and 
procedures to safeguard the confidentiality of taxpayer 
information.
    Section 106 requires that funds provided to ATF for fiscal 
year 1995 will be expended in such a manner so as not to 
diminish enforcement efforts with respect to section 105 of the 
Federal Alcohol Administration Act.
    Section 107 prohibits any reduction of Customs personnel 
funded through reimbursement from the Puerto Rico trust fund.
    Section 108 removes ambiguity relating to the use of 
Treasury aircraft for the performance of emergency law 
enforcement missions by Federal authorities.
                     TITLE II--U.S. POSTAL SERVICE

                   Payment to the Postal Service Fund
Appropriations, 1995....................................     $92,317,000
Budget estimate, 1996...................................     109,094,000
House allowance.........................................      85,080,000

Committee recommendation

                                                              85,080,000

    The Committee has recommended an appropriation of 
$85,080,000 in fiscal year 1996 for payment to the Postal 
Service fund. This amount is $24,014,000 below the President's 
budget request and equal to the House allowance.
    Revenue forgone on free and reduced-rate mail enables 
postage rates to be set at levels below the unsubsidized rates 
for certain second-class, third-class, and fourth-class mail as 
authorized by subsections (c) and (d) of section 2401 of title 
39, United States Code. Free mail for the blind and overseas 
voters will continue to be provided at the funding level 
recommended by the Committee.
    The funding provided by the Committee is allocated for the 
following purposes: $56,080,000 for free mail for the blind and 
overseas voters and $29,000,000 for the reimbursement to the 
Postal Service for subsidies provided for the revenue forgone 
program.
    The Committee has concurred with the House by including 
provisions in the bill that would assure that mail for overseas 
voting and mail for the blind shall continue to be free; that 
6-day delivery and rural delivery of mail shall continue at the 
1983 level; and that none of the funds provided be used to 
consolidate or close small rural and other small post offices 
in fiscal year 1996. These are services that must be maintained 
in fiscal year 1996 and beyond. The Committee believes that, 
despite the lack of public service appropriations, these 
critical postal services are the linchpin of services that the 
public deserves and expects.

      Payment to the Postal Service Fund for Nonfunded Liabilities
Appropriations, 1995....................................     $37,776,000
Budget estimate, 1996...................................      36,828,000
House allowance.........................................      36,828,000

Committee recommendation

                                                              36,828,000

    The Committee recommends an appropriation of $36,828,000 
for nonfunded liabilities of the former Post Office Department. 
This amount is the same as the budget estimate and the House 
allowance.
    Pursuant to 39 U.S.C. 2004, an annual appropriation is 
required to provide compensation to postal employees for 
injuries which occurred prior to July 1, 1971, while employed 
by the Post Office Department. The Postal Service share of the 
costs for compensation payments billed to it by the Department 
of Labor in the latest fiscal year is $36,828,000. All Federal 
agencies meet their responsibilities, as required by Public Law 
93-416, by reimbursing the Labor Department the appropriate 
amounts. Requiring all agencies to budget for workers' 
compensation costs focuses their attention on promoting safer 
and healthier workplaces for their employees and helps assure 
that they effectively manage their claims to get people back to 
work as quickly as possible.

                           Pest Introductions

    The Committee is concerned that recent introductions of 
plant and animal pests and diseases into Hawaii have occurred 
through the U.S. mail system. Such introductions have severe 
consequences for U.S. agriculture, biodiversity, and public 
health and safety. The Committee, therefore, directs the U.S. 
Postal Service to devise and implement a program to stem pest 
introductions. The Committee directs the Postal Service to work 
with the U.S. Department of Agriculture and the Hawaii 
Department of Agriculture to establish this important program 
during fiscal year 1996.
TITLE III--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO 
                             THE PRESIDENT

                                Summary

    The President's fiscal year 1996 budget request for the 15 
accounts funded under this title totals $308,342,000. This 
amount is $2,202,000 below the total fiscal year 1995 
appropriations.
    These 15 accounts include: Compensation of the President, 
Office of Administration, the White House Office, the Executive 
Residence at the White House, the Official Residence of the 
Vice President, Special Assistance to the President, the 
Council of Economic Advisors, the Office of Policy Development, 
the National Security Council, the Office of Management and 
Budget, the Office of National Drug Control Policy, the special 
forfeiture fund, high-intensity drug trafficking areas, and 
unanticipated needs. For accounts included in this title, the 
Committee recommends a total funding level of $149,915,000 for 
fiscal year 1996, or $158,427,000 below the total funding level 
requested by the President. The Committee has terminated the 
Office of National Drug Control Policy and has transferred the 
Counterdrug Technical Assessment Center [CTAC] and the high-
intensity drug trafficking area [HIDTA] programs to the 
Department of the Treasury. The Information Security Oversight 
Office has been established as a separate account within the 
Executive Office of the President.

                     Compensation of the President
Appropriations, 1995..........................................  $250,000
Budget estimate, 1996.........................................   250,000
House allowance...............................................   250,000

Committee recommendation

                                                                 250,000

    The fiscal year 1995 budget request for compensation of the 
President is $250,000. This amount includes $200,000 for the 
direct salary of the President as authorized by 3 U.S.C. 102, 
and a $50,000 expense account for official expenses, with any 
unused portions reverting to the Treasury. This expense account 
is not considered as taxable to the President.
    The Committee concurs with the House in recommending the 
full budget request of $250,000 for compensation of the 
President.

                        Office of Administration

                         salaries and expenses
Appropriations, 1995....................................     $26,217,000
Budget estimate, 1996...................................      26,100,000
House allowance.........................................      25,736,000

Committee recommendation

                                                              25,560,000

    The Committee recommends an appropriation of $25,560,000 
for the Office of Administration in fiscal year 1996. The 
Committee recommendation is $540,000 below the budget estimate 
and $176,000 below the House allowance.
    The Office of Administration [OA] was created by 
Reorganization Plan No. 1 of 1977 and formally established by 
Executive Order 12028. The purpose of the Office of 
Administration provides financial and personnel management 
services, information management, library and records 
management services, and general services support to all 
agencies within the Executive Office of the President [EOP] and 
upon request, services in direct support of the President.
    The Office of Administration is composed of six functional 
divisions which are: Personnel Management Division, Financial 
Management Division, Administrative Operations Division, 
Library and Research Services Division, the Information 
Services and Technology Division, and Facilities Management 
Division.

                       Administrative Reductions

    The Office of Administration ``Salaries and expenses'' 
account is reduced by $540,000. The reductions are to be taken 
from object classes 21.0, 22.0, 23.3, 24.0, 25.0, 26.0, and 
31.0 and at the discretion of the President.

                         The White House Office

                         salaries and expenses
Appropriations, 1995....................................     $40,022,000
Budget estimate, 1996...................................      40,193,000
House allowance.........................................      39,459,000

Committee recommendation

                                                              38,131,000

    The Committee recommends an appropriation of $38,131,000 
for the White House Office. The Committee recommendation is 
$2,062,000 less than the budget estimate and $1,328,000 below 
the House allowance.
    These funds provide the President with staff assistance and 
provide administrative services for the direct support of the 
President. Public Law 95-570 authorizes appropriations for the 
White House Office and codifies the activities of the White 
House Office.

                       Committee Recommendations

    The White House Office ``Salaries and expenses'' account is 
reduced by $362,000 in administrative overhead object classes. 
The reductions are to be taken from object classes 21.0, 22.0, 
23.3, 24.0, 25.0, 26.0, and 31.0 and applied at the discretion 
of the President. In addition, this account has been reduced by 
$1,700,000 to restore funding cut in the House for the Council 
of Economic Advisers.

                 Executive Residence at the White House

                           operating expenses
Appropriations, 1995..........................................$7,827,000
Budget estimate, 1996......................................... 7,827,000
House allowance............................................... 7,522,000

Committee recommendation

                                                               7,827,000

    The Committee recommends an appropriation of $7,827,000 for 
the Executive Residence at the White House. The Committee 
recommendation is the same as the budget estimate and $305,000 
above the House allowance.
    These funds provide for the care, maintenance, 
refurnishing, improvement, heating, and lighting, including 
electrical power and fixtures, of the Executive Residence.
    The Executive Residence staff provides for the operation of 
the Executive Residence. A staff of 36 domestic employees 
accomplish general housekeeping, prepare and serve meals, greet 
visitors, and provide services as required in support of 
official and ceremonial functions. A staff of 33 tradespersons, 
including plumbers, carpenters, painters, on a single shift; 
electricians on a double shift; and operating engineers on a 
24-hour basis, maintains and makes repairs, minor 
modifications, and improvements to the 132 rooms and the 
mechanical systems, and provides support for official and 
ceremonial functions.
    A staff of 12 specialized employees provide services 
necessary to the operation of the White House and official and 
ceremonial functions. This staff includes four florists, four 
curators, and four calligraphers.
    An administrative staff consists of the chief usher, four 
assistant ushers, one executive grounds superintendent, one 
operating accountant, and one administrative officer. This 
staff is charged with management and administrative functions 
of the Executive Residence. This requires coordination with the 
Executive Office of the President, the National Park Service, 
the military, the U.S. Secret Service, the General Services 
Administration, and other agencies.
    The equivalent of 4 full-time work-years of extra staff 
above the ceiling for full-time permanent positions are hired 
under personal services contract agreements (service by 
agreement) to provide additional help as required for official 
and ceremonial functions.

                   white house repair and restoration
Appropriations, 1995....................................................
Budget estimate, 1996...................................      $2,200,000
House allowance.........................................................

Committee recommendation

                                                               2,200,000

    The Committee recommends an appropriation of $2,200,000 for 
White House repair and alteration. The Committee recommendation 
is the same as the budget estimate and $2,200,000 above the 
House allowance.
    The House has provided for funding the repairs and 
alterations in the General Services Administration ``Federal 
buildings fund repair and alterations'' account.
    The Committee has created a separate account to program and 
track expenditures devoted directly for capital improvement 
projects at the Executive Residence at the White House. The 
House has proposed funding for repairs from the Federal 
buildings fund.
    The fiscal year 1996 funding will be devoted to the roof of 
the Executive Residence which has experienced numerous 
localized leaks, as well as flashing failures. An evaluation 
coordinated by the American Institute of Architects recommended 
total roof replacement. The last roof replacement was in 1952, 
during the Truman renovation, when only portions of the roof 
were replaced. The last major roof replacement prior to that 
was in 1927. When the roof is removed, workers currently 
completing the west face of the White House will be allowed 
access to perform necessary repairs to stone areas adjacent to 
roof and chimney areas.

                Official Residence of the Vice President

                           operating expenses
Appropriations, 1995..........................................  $324,000
Budget estimate, 1996.........................................   324,000
House allowance...............................................   324,000

Committee recommendation

                                                                 324,000

    The Committee recommends an appropriation of $324,000 for 
the official residence of the Vice President. This amount is 
the same as the budget estimate and the House allowance.
    The ``Official Residence of the Vice President 
(residence)'' account was established by Public Law 93-346 on 
July 12, 1974. The residence is located on the grounds of the 
Naval Observatory in the District of Columbia and serves as a 
facility for official and ceremonial functions and as a home 
for the Vice President and his family.
    The objective of the ``Residence'' account is to provide 
for the care of, operation, maintenance, refurnishing, 
improvement, and heating and lighting of the residence and to 
provide such appropriate equipment, furnishings, dining 
facilities, services, and provisions as may be required to 
enable the Vice President to perform and discharge the duties, 
functions, and obligations associated with his high office.
    Funds to renovate the residence are provided to the 
residence through the Department of the Navy budget. The 
Committee has had a longstanding interest in the condition of 
the residence and expects to be kept fully apprised by the Vice 
President's office of any and all renovations and alterations 
made to the residence by the Navy.
    The funding level provided by the Committee will support 
one full-time equivalent position or the same level as funded 
in fiscal year 1995.

                  Special Assistance to the President

                         salaries and expenses
Appropriations, 1995..........................................$3,280,000
Budget estimate, 1996......................................... 3,280,000
House allowance............................................... 3,175,000

Committee recommendation

                                                               3,280,000

    The Committee recommends an appropriation of $3,280,000 for 
special assistance to the President. The Committee 
recommendation is equal to the budget estimate and $105,000 
above the House allowance.
    The ``Special assistance to the President'' account was 
established on September 26, 1970, to enable the Vice President 
to provide assistance to the President. This assistance takes 
the form of directed and special presidentially assigned 
functions.
    The objective of the Office of the Vice President is to 
efficiently and effectively advise, assist, and support the 
President in the areas of domestic policy, national security 
affairs, counsel, administration, press, scheduling, advance, 
special projects, and assignments. Assistance is also provided 
for the wife of the Vice President.
    The Vice President also has a staff funded by the Senate to 
assist him in the performance of his duties in the legislative 
branch.
    The level of funding recommended by the Committee will 
allow for 21 full-time permanent positions in fiscal year 1996 
or the same as funded in fiscal year 1995.

                      Council of Economic Advisers

                         salaries and expenses
Appropriations, 1995..........................................$3,439,000
Budget estimate, 1996......................................... 3,439,000
House allowance.........................................................

Committee recommendation

                                                               3,439,000

    The Committee recommends an appropriation of $3,439,000 for 
salaries and expenses of the Council of Economic Advisers. The 
Committee recommendation equals the budget estimate and is 
$3,439,000 above the House allowance.
    The activities of the Council are set forth in the 
Employment Act of 1946. They include the following: To assist 
and advise the President in the preparation of the ``Economic 
Report''; to gather and analyze timely information concerning 
current and prospective economic developments and report 
regularly to the President on the relationship of these 
developments to the achievement of maximum employment, 
production, and purchasing power as prescribed in the act; to 
appraise and report to the President on the extent to which the 
various programs and activities of the Federal Government 
contribute to the carrying out of the purposes of the act; to 
develop and recommend to the President national economic 
policies to foster and promote competitive enterprise, to avoid 
economic fluctuations, and to maintain maximum employment, 
production, and purchasing power; and to make such studies, 
reports, and recommendations on Federal economic policy and 
legislation as the President may request.
    In carrying out these duties, the Council consults 
regularly with other Government agencies and departments, as 
well as the Congress, and representatives of business, labor, 
consumers, agriculture, State, and local governments, and the 
economics profession. In addition, the members and staff of the 
Council are frequently called upon to serve on Cabinet Council 
working groups in a wide variety of fields.
    Included in the Council's staff is a statistical unit which 
is responsible for the monthly publication ``Economic 
Indicators'' and the preparation of the statistical material in 
the annual ``Economic Report of the President,'' as well as for 
providing continuous assistance to the Council and professional 
staff.

                      Office of Policy Development

                         salaries and expenses
Appropriations, 1995....................................  \1\ $5,058,000
Budget estimate, 1996...................................       3,867,000
House allowance.........................................       3,867,000

Committee recommendation

                                                               3,867,000

\1\ Fiscal year 1995 funding of $790,000 for the Office of Environmental 
Policy [DEP] was included in the OPD budget. Funding for this office has 
been included in the budget of the Council on Environmental Quality for 
fiscal year 1996.

    The Committee recommends $3,867,000 for the Office of 
Policy Development. The Committee recommendation is equal to 
the budget estimate and the House allowance.
    The Office of Policy Development supports the National 
Economic Council and the Domestic Policy Council, in carrying 
out their responsibilities to advise and assist the President 
in the formulation, coordination, and implementation of 
economic and domestic policy. The Office of Policy Development 
also provides support for other domestic policy development and 
implementation activities as directed by the President.
    This budget request reflects the effect of the transfer of 
the Office on Environmental Policy [OEP] to the Council on 
Environmental Quality [CEQ]. This transfer is reflected in a 
decrease of $790,000 and nine FTE's in this account from the in 
fiscal year 1995 level.

                       National Security Council

                         salaries and expenses
Appropriations, 1995..........................................$6,648,000
Budget estimate, 1996......................................... 6,648,000
House allowance............................................... 6,459,000

Committee recommendation

                                                               6,648,000

    The Committee recommends an appropriation of $6,648,000 for 
the salaries and expenses of the National Security Council 
[NSC]. The Committee recommendation is equal to the budget 
estimate and $189,000 above the House allowance.
    The primary purpose of the Council is to advise the 
President with respect to the integration of domestic, foreign, 
and military policies relating to the national security. 
Subject to direction by the President, it is the responsibility 
of the Council to assess and appraise the objectives, 
commitments, and risks of the United States in relation to 
actual and potential military power, to consider policies on 
matters of common interest to the departments and agencies of 
the Government, and to make recommendations and other reports 
to the President.
    The funding level provided by the Committee will support 60 
full-time equivalent positions or the same as the fiscal year 
1995 level for the normal activities of the NSC.
                    Office of Management and Budget

                         salaries and expenses
Appropriations, 1995.................................... \1\ $57,754,000
Budget estimate, 1996...................................      56,272,000
House allowance.........................................      55,426,000
Committee recommendation................................      55,907,000

\1\ Fiscal year 1995 funding of $1,482,000 for the Information Security 
Oversight Office [ISOO] was included in the OMB budget. Funding for this 
office has been included in a new account of the EOP for fiscal year 
1996.

    The Committee recommends an appropriation of $55,907,000. 
The Committee recommendation is $365,000 less than the budget 
estimate and $481,000 above the House allowance.
    The Office of Management and Budget [OMB] assists the 
President in the discharge of his budgetary, management, and 
other executive responsibilities.
    National security and international affairs; general 
government; natural resources, energy, and science; human 
resources; and health and personnel.--Agency programs, budget 
requests, and management activities are examined, 
appropriations are apportioned, proposed changes in agency 
functions are studied, and special analyses aimed at 
establishing goals and objectives that would result in long- 
and short-range improvements in the agencies' financial, 
administrative, and operational management are conducted. 
Implementation of Governmentwide policies as developed by the 
statutory management offices is carried out. Governmentwide 
supply and facility acquisition, credit and cash management, 
and personnel management policies are evaluated. Also, 
leadership and support is provided for program evaluation and 
Federal-State-local relations.
    Director's office/OMB-wide offices.--Executive direction 
and coordination for all Office of Management and Budget 
activities is provided. This includes the Director's immediate 
office as well as staff support in the areas of administration, 
public affairs, legislative reference, legislative affairs, 
economic policy, budget review, and general counsel. Budget 
instructions and procedures are developed, review of agency 
estimates is coordinated, budget data systems are maintained, 
agency financial management plans are reviewed, the budget 
document is prepared, and scorekeeping is accomplished.
    Financial management.--Governmentwide policy guidance for 
financial statements, financial systems, and internal controls 
is provided to agencies; evaluation of agency performance and 
progress is carried out; and a Governmentwide financial 
management plan is prepared.
    Information and regulatory affairs.--Agency proposals to 
implement or revise Federal regulations and information 
collection requirements are reviewed and coordinated. 
Information resource management and statistical policies and 
practices are analyzed and developed.
    Procurement policy.--The Office of Federal Procurement 
Policy is responsible for promoting economy, efficiency, and 
effectiveness in the procurement of property and services by 
and for the executive branch.
    The budget request is $1,482,000 and 19 full-time 
equivalent positions below the fiscal year 1995 level. The 
Committee has established a new account for the Information 
Security Oversight Office [ISOO].

                           UNFUNDED MANDATES

    The Advisory Commission on Intergovernmental Relations was 
tasked by Public Law 104-4, the Unfunded Mandates Reform Act of 
1995, to complete a baseline study and intergovernmental review 
of Federal mandates and their impact on State, local, and 
tribal governments. That act provided authorization of $500,000 
for ACIR to complete these projects.
    The Committee, however, has concurred with the House to 
terminate the ACIR. Because OMB has both the technical and 
resource capacity to prepare the reports according to Public 
Law 104-4, an additional $334,000 has been provided to OMB to 
support this effort.

                        Committee recommendation

    The Committee has denied program enhancements totaling 
$300,000 for information systems and $540,000 in administrative 
overhead object classes, to be applied at the discretion of the 
Director, to the following object classes: 21.0, 22.0, 23.3, 
24.0, 25.0, 26.0, and 31.0.

                       Federal Building Security

    The Committee, having reviewed the Justice Department 
``Vulnerability Assessment of Federal Facilities'' report, 
dated June 28, 1995, recognizes the timely need for the 
implementation of security recommendations as provided in this 
assessment.
    Many of these recommendations require extensive funding at 
a time of limited resources. The Committee recognizes that 
individual agencies cannot bear the cost burden associated with 
many of these recommendations. The Committee, therefore, 
directs the Office of Management and Budget to address the 
additional budgetary requirements associated with Federal 
building security and submit a supplemental budget request 
during fiscal year 1996 to meet the Governmentwide security 
needs and priorities.

                            marketing orders

    Marketing orders which are authorized under the 
Agricultural Marketing Agreement Act of 1937 have made valuable 
contributions to the stability of many of our agricultural 
commodity markets. In addition to assuring orderly markets for 
both producers and consumers, marketing orders have provided 
for quality control standards, research and promotional 
programs, and supply management programs.
    The Agricultural Marketing Agreement Act of 1937 gave 
direct supervision and control over the management of marketing 
orders to the U.S. Department of Agriculture. The Office of 
Management and Budget has never been given any legislative 
authority over marketing orders. The Committee has included 
language prohibiting OMB from acting with regard to marketing 
orders. The purpose of this language is to reaffirm USDA's sole 
authority in an area where they have developed the necessary 
expertise and trained personnel over the years to effectively 
monitor and enforce agricultural marketing order programs.

                  alcohol and tobacco statistical data

    The Committee has again included language which prohibits 
OMB from curtailing the collection and dissemination of alcohol 
and tobacco statistical data. The Committee believes such data 
is valuable in addressing such problems as alcohol abuse, 
public health, and industrial safety.
    The Committee, however, recognizes the continuing need and 
directs the Bureau of Alcohol, Tobacco and Firearms [ATF] to 
continue the monthly collection of alcoholic beverage 
statistics.

                           transcript review

    The Committee has continued language in the bill that would 
prohibit OMB from altering certain transcripts.

                           entitlement fraud

    Entitlement fraud has become a significant problem both 
domestically and internationally. The Secret Service has been 
in the forefront in efforts to reduce losses resulting from 
criminal fraud activities. The Service has concentrated on the 
international problem and spot investigations have proven in 
certain countries, fraudulent collection of government benefits 
in the 50-percent range. The Federal Government makes payments 
of approximately $3,000,000,000 per month. If only 1 percent of 
those payments is fraudulent, it totals nearly $960,000,000 per 
year. The Committee applauds and strongly endorses the 
initiative the Service has taken in working with other 
government agencies to correct this problem. The Committee 
directs the OMB to take such actions which might be necessary 
to ensure beneficiary agency compliance with Secret Service 
recommendations to eliminate such fraud. The Committee directs 
OMB to submit a report to the Committee by no later than 
February 15, 1996, on actions taken to comply with this 
directive.

             OVERSIGHT AND COORDINATION OF FEDERAL EFFORTS

    For years complaints of duplication of effort and 
duplicative programs abounding in government have been the 
topic of discussion. As the Government moves toward a balanced 
budget, these problems become more apparent. A classic example 
is the 1994 Institute of Medicine [IOM] Report, ``Reducing 
Risks for Mental Disorders: Frontiers for Preventive 
Intervention Reseach'' which documents the uncoordinated 
research and service efforts that now exist in 23 Federal 
agencies in this field. The Committee believes that efforts to 
coordinate these activities would result in both financial 
savings and improved science.
    This is only one example of many. The Committee urges OMB 
to coordinate efforts in the prevention of mental disorders 
that now exist across the various Federal agencies, and to 
apply lessons learned wherever applicable.

                          long-term budgeting

    The first and most significant recommendation endorsed by a 
majority of the Bipartisan Commission on Entitlement and Tax 
Reform was that the Federal Government make major spending and 
tax decisions with reference to a longer time period than the 
traditional 5-year budget window. The next 30 years will bring 
a period of major increases in entitlement costs and interest 
due to changes in demographics, as a result of the retirement 
of baby-boomers, which will significantly increase the number 
of Social Security and Medicare beneficiaries. The Committee 
has requested the Director of Office of Management and Budget 
to provide such information for its review and use. However, to 
date, that information has not been forwarded to the Committee. 
The Committee has, therefore, included a provision in the bill 
which prohibits the obligation of any funds for OMB after 60 
days from the date of enactment if this information has not 
been submitted to the Committees on Appropriations.

    PRIvATIZATION OF NONPERFORMing FEDERAL LOAN AND LOAN Guarantees

    The Committee is aware that some Federal agencies are 
exploring the privatization of nonperforming Federal loans and 
loan guarantees. For example, the Department of Housing and 
Urban Development [HUD] recently held an auction of 177 
multifamily loans that had defaulted on mortgage insurance 
written by HUD. The unpaid amount of these defaulted loans was 
more than $900,000,000, but because of the Government's poor 
collection history, the loans were valued by OMB as worth only 
$286,000,000 if they continued to be held by the Government. 
However, these same loans were sold to private investors for 
$710,000,000. This one transaction alone reduced the deficit by 
$424,000,000.
    The private sector is willing to pay more than twice the 
value of these loans to the Government because there is a huge 
productivity gap between the Government and the private sector, 
(technology, infrastructure and expertise in managing bad 
loans, and profit motive). In short, the private sector has the 
technology, capacity, ability, and motivation to produce more 
value than the Government ever could.
    The Committee believes that more consideration should be 
given to the sale of nonperforming loans held not only by HUD, 
but by all Federal agencies that provide credit programs. The 
Federal Government holds huge amounts of loans and loan 
guarantees that are worth more in the hands of the private 
sector. The estimated amounts are: $1,000,000,000,000 of loan 
guarantees and $200,000,000,000 in loans.
    Using conservative estimates, it may be that between 
$20,000,000,000 to $50,000,000,000 could be realized if the 
entire Federal credit program were to be turned over to the 
private sector. However, it is impossible now to ascertain the 
value of such an effort because many of the agencies are 
unaware of the extent of their credit programs.
    Therefore, the Committee is directing the Office of 
Management and Budget to direct, and coordinate with, the 
Federal agencies involved in credit programs to evaluate the 
value of their credit programs, including the cost of annual 
administrative expenses, and develop a plan for the 
privatization of such credit programs.) The Director of OMB 
shall be responsible for assuring the implementation of this 
directive and to coordinate the activities of all Federal 
agencies hereunder.
    Specifically, OMB is directed to have the various agencies 
provide the following information:
    For each financing account and for each liquidating 
account, as those terms are defined in sections 502(7) and 
502(8) of the Federal Credit Reform Act of 1990;
  --the cumulative balance of direct loans outstanding, the 
        estimated net present value of such direct loans, the 
        annual administrative expenses (the portion of salaries 
        and expenses that are directly related to such loans 
        outstanding), and the estimated net proceeds that would 
        be received if such direct loans were sold;
  --the cumulative balance of guaranteed loans outstanding, the 
        estimated net present value of such loan guarantees, 
        the annual administrative expenses (the portion of 
        salaries and expenses that are directly related to such 
        guaranteed loans outstanding), and the estimated net 
        proceeds that would be received if such loan guarantees 
        were sold; and
  --the cumulative balance of defaulted loans that were 
        previously guaranteed and have resulted in loans 
        receivables, the estimated net present value of such 
        loan assets, the annual administrative expenses (the 
        portion of salaries and expenses that are directly 
        related to such loan assets), and the estimated net 
        proceeds that would be received if such loan assets 
        were sold.
    On or before March 31, 1996, OMB shall require each Federal 
agency that makes or had made direct loans or loan guarantees, 
as those terms are defined in sections 502(1) and 502(2) of the 
Federal Credit Reform Act of 1990, to prepare and issue a 
report to the Director of the Office of Management and Budget, 
the Director of the Congressional Budget Office, and the 
chairmen of the appropriate committees of the House and Senate 
a detailed plan containing the agency's proposed schedule, by 
fiscal year, providing for the sale by September 30, 2002, of 
all direct loans, loan guarantees and defaulted loans that were 
previously guaranteed and have resulted in loans receivable. 
Such schedule shall be updated annually on the first day of 
each successive fiscal year, and shall include a detailed plan 
for the sale of all direct loans, loan guarantees and defaulted 
loans that were previously guaranteed that are added to the 
agency's financing accounts subsequent to October 1, 1995.

                 Office of National Drug Control Policy

                         salaries and expenses
Appropriations, 1995....................................      $9,942,000
Budget estimate, 1996...................................       9,942,000
House allowance.........................................      20,062,000

Committee recommendation

                                             ...........................

    The Committee recommends termination of the Office of 
National Drug Control Policy.
    The Committee has taken this action as a result of its 
extreme disappointment in the ONDCP. Drugs and drug-related 
violence remain the scourge of our Nation. Despite billions of 
dollars being spent over the past decade on prevention and 
treatment, the number of hardcore drug users has remained the 
same. Despite the interdiction efforts, drugs are readily 
available on the streets of almost every community in the 
country.
    The Committee is very concerned that the administration has 
chosen to move the war on drugs from a top priority, and that 
is reflected by this Office's invisibility. The Committee 
believes that the funding provided to operate this Office can 
be far better utilized on the front lines and has taken action 
accordingly.

                 Information Security Oversight Office

                         Salaries and Expenses
Appropriations, 1995....................................  \1\ $1,482,000
Budget estimate, 1996...................................   \2\ 1,482,000
House allowance.........................................................
Committee recommendation................................       1,482,000

\1\ In fiscal year 1995 this account was funded in the salaries and 
expenses of the Office of Management and Budget.
\2\ In fiscal year 1996 the President's budget proposes to fund this 
office as a part of the National Archives.

    The Committee recommends $1,482,000 for salaries and 
expenses for the Information Security Oversight Office [ISOO] 
in fiscal year 1996, in a new account under the Executive 
Office of the President. This amount is the same as the budget 
request and $1,482,000 more than the House allowance.
    The President's fiscal year 1996 budget request recommended 
that the Information Security Oversight Office be funded as a 
separate independent agency outside the Executive Office of the 
President. In fiscal year 1995 this office had been funded 
within the Office of Management and Budget. After reviewing the 
proper placement of ISOO during fiscal year 1995, OMB 
recommended that for fiscal year 1996 and beyond, ISOO should 
be transferred to the National Archives and Records 
Administration and funded through the ``Operating'' account. 
The Committee disagrees with this OMB finding.
    ISOO monitors the information security programs of 
approximately 80 executive branch agencies. Under Executive 
Order 19958, ISOO will become the lead Government entity 
ensuring compliance with a new Governmentwide system for 
classification of national security information and the 
automatic declassification of material after a determined 
period of time. Further, the Office will review all appeals of 
classification decisions and agency requests for waivers from 
the requirements of the order. The Committee believes that 
ISOO's mission in integral to the security interests of our 
Nation and to ensuring to the greatest extent possible that 
Government decisionmaking and actions are open for public 
review. For this reason, the Committee believes ISOO can best 
fulfill its functions and responsibilities as an independent 
office within the Executive Office of the President and has, 
therefore, established such an account for its operations in 
fiscal year 1996. The Committee further recommends that the 
National Security Council continue to provide guidance and 
policy support to the Oversight Office. The Committee funding 
will support an FTE level of 15 in fiscal year 1996, the same 
level as in fiscal year 1995.

                  Funds Appropriated to the President

                     Federal drug control programs

                 high-intensity drug trafficking areas

                     (including transfer of funds)
Appropriations, 1995....................................    $107,000,000
Budget estimate, 1996...................................     110,000,000
House allowance.........................................     104,000,000

Committee recommendation

                                             ...........................

    The Committee has moved this account to the Department of 
the Treasury.

                        special forfeiture fund

                     (including transfer of funds)
Appropriations, 1995....................................     $41,900,000
Budget estimate, 1996...................................      37,000,000
House allowance.........................................................

Committee recommendation

                                             ...........................

    The Committee has recommended no funding for the special 
forfeiture fund in fiscal year 1996.

                          unanticipated needs
Appropriations, 1995..........................................$1,000,000
Budget estimate, 1996......................................... 1,000,000
House allowance............................................... 1,000,000

Committee recommendation

                                                               1,000,000

    The Committee recommends an appropriation of $1,000,000 for 
unanticipated needs. The Committee recommendation is identical 
to the budget request and the same as the House allowance.
    In 1940, Congress recognized the need for the President of 
the United States to have limited funds available to meet 
unplanned and unbudgeted contingencies. In so doing, an account 
entitled ``Emergency fund for the President'' was created 
allowing the President, as the head of the National Government, 
to confront unforeseen problems demanding immediate executive 
action. In 1975, Congress changed the account title to 
``Unanticipated needs.''
    Expenditures from this account may be authorized only by 
the President while the Director of the Office of Management 
and Budget provides the necessary control to assure that only 
unforeseen priorities are financed. Prior use of these funds 
has occurred under tight budget control and covered 
unanticipated needs not met from regular budget accounts nor 
available in a timely fashion through the supplemental budget 
process.
                     TITLE IV--INDEPENDENT AGENCIES

             Administrative Conference of the United States

                         salaries and expenses
Appropriations, 1995..........................................$1,800,000
Budget estimate, 1996......................................... 2,259,427
House allowance.........................................................

Committee recommendation

                                             ...........................

    The Committee concurs with the House in terminating the 
Administrative Conference of the United States.

           Advisory Commission on Intergovernmental Relations

                         salaries and expenses
Appropriations, 1995..........................................$1,000,000
Budget estimate, 1996......................................... 1,400,000
House allowance.........................................................

Committee recommendation

                                             ...........................

    The Committee concurs with the House in terminating the 
Advisory Commission on Intergovernmental Relations.

 Committee for Purchase From People Who Are Blind or Severely Disabled

                         salaries and expenses
Appropriations, 1995..........................................$1,682,000
Budget estimate, 1996......................................... 1,800,000
House allowance............................................... 1,682,000

Committee recommendation

                                                               1,800,000

    The Committee recommends $1,800,000 for the Committee for 
Purchase From People Who Are Blind or Severely Disabled 
[CPPBSD]. The Committee recommendation is the same as the 
budget estimate and $118,000 above the House allowance.
    The Committee was established by the Javits-Wagner-O'Day 
Act of 1971.
    The Committee's primary objective is to increase the 
employment opportunities for the blind and other severely 
handicapped and, whenever possible, to prepare them to engage 
in normal competitive employment. The Committee determines 
which commodities and services are suitable for Government 
procurement from qualified, nonprofit agencies serving the 
blind and other severely handicapped; publishes a procurement 
list of such commodities and services; determines the fair 
market price for commodities and services on the procurement 
list; and makes rules and regulations necessary to carry out 
the purposes of the act.
    The Committee staff supervises the selection and assignment 
of new commodities and services, assists in establishing 
prices, reviews and adjusts these prices, verifies the 
qualifications of workshops, and monitors their performance.
    The Committee recognizes the importance of the Javits-
Wagner-O'Day [JWOD] Act in providing much needed employment 
opportunities to blind and other severely handicapped 
Americans, while at the same time providing quality goods and 
services to the Federal Government at fair market prices.
    In this regard, the Committee intends that CPPBSD, in its 
monitoring of the designated central nonprofit agencies, assure 
that all funds acquired by each such agency from nonprofit 
agencies for the blind and other severely handicapped in 
conjunction with the Javits-Wagner-O'Day Program be used solely 
for activities that are consistent with the goal of the 
program, which is to generate employment and training 
opportunities for persons who are blind or have other severe 
disabilities.
    The Congress further recognizes that research, promotional, 
and advocacy efforts aimed at strengthening and expanding the 
program are both a statutory and necessary function in order 
for the Committee for Purchase From People Who Are Blind or 
Severely Disabled [CPPBSD] to fulfill its obligations under the 
JWOD Act. The Congress supports efforts by the CPPBSD to 
initiate such research and advocacy activities.

                      Federal Election Commission

                         salaries and expenses
Appropriations, 1995....................................     $25,710,000
Budget estimate, 1996...................................      29,021,000
House allowance.........................................      26,521,000

Committee recommendation

                                                              28,517,000

    The Committee recommends an appropriation of $28,517,000 
for the Federal Election Commission [FEC]. The Committee 
recommendation is $504,000 below the budget request and 
$1,996,000 above the House allowance.
    The Federal Election Commission is charged with 
implementing and enforcing the Federal Election Campaign Act 
[FECA] as amended. This includes: promoting public disclosure 
of campaign finance activity; providing information to the 
public, press, and campaign officials on the FECA and campaign 
finance; obtaining voluntary compliance with the disclosure and 
limitation provisions of the FECA; and enforcing that 
disclosure and compliance through audits, investigations, and/
or litigation. The Commission is also charged with implementing 
the Presidential campaign funding programs for both primary and 
general election campaigns of qualified Presidential 
candidates. This includes certification, audit, and enforcement 
of the provisions of the Federal funding legislation concerning 
the use of Federal funds.
    The Committee has denied program enhancements of $504,000.

                   Federal Labor Relations Authority

                         salaries and expenses
Appropriations, 1995....................................     $21,341,000
Budget estimate, 1996...................................      22,230,000
House allowance.........................................      19,742,000

Committee recommendation

                                                              21,398,000

    The Committee recommends an appropriation of $21,398,000 
for the Federal Labor Relations Authority [FLRA]. This amount 
is $832,000 below the budget request and $1,656,000 above the 
House allowance.
    The FLRA was established to administer title VII of the 
Civil Service Reform Act of 1978 and to serve as a neutral 
third party in the resolution of labor-management disputes 
arising among unions, employees, and Federal agencies. The 
effective resolution of these labor-management disputes has an 
important impact on the operations of the Government. These 
disputes arise with nearly all agencies of the executive 
branch, and the Library of Congress and the Government Printing 
Office, in locations throughout the United States and overseas.
    Authority members.--Provides leadership in the 
establishment of policies and guidance relating to matters 
under title VII of the Civil Service Reform Act of 1978. 
Specifically, the authority is empowered to: (1) determine the 
appropriateness of units for labor organization representation; 
(2) supervise or conduct elections to determine whether a labor 
organization has been selected as an exclusive representative 
by a majority of the employees in an appropriate unit; (3) 
otherwise administer the provisions relating to the according 
of exclusive recognition to labor organizations; (4) prescribe 
criteria and resolve issues relating to the granting of 
national consultation rights; (5) prescribe and resolve issues 
relating to determining compelling need for agency rules and 
regulations; (6) resolve issues relating to the duty to bargain 
in good faith; (7) prescribe criteria relating to the granting 
of consultation rights with respect to conditions of 
employment; (8) conduct hearings involving complaints of unfair 
labor practices; (9) resolve exceptions to arbitrators' awards; 
and (10) take such other actions as necessary and appropriate 
to effectively administer the provisions of title VII of the 
Civil Service Reform Act of 1978.
    General Counsel.--Has discharged responsibilities mandated 
in the Federal service-management relations statute and 
additional responsibilities which are delegated from the 
authority. The functions of the Office of the General Counsel 
are to: (1) investigate all alleged unfair labor practices 
under the Federal service labor-management relations statute 
and under the foreign service labor-management relations 
statute; (2) exercise final authority over the issuance of all 
complaints and the prosecution of all complaints arising under 
the statutes listed above; (3) review and decide all appeals of 
decisions of the regional directors refusing to issue 
complaint; (4) exercise delegated authority for investigating 
and taking dispositive action on all representation petitions; 
(5) exercise delegated authority for supervising or conducting 
all representation elections and certifying the results of 
these elections to the parties; (6) exercise delegated 
authority for conducting hearings in all representation 
petitions where issues of fact are in dispute; (7) exercise 
delegated authority for the preparation of final decisions and 
orders based on the hearings held in representation cases; and 
(8) manage regional offices, including directing and 
supervising all employees of the regional offices. The regional 
offices are located in Boston, Atlanta, Chicago, Dallas, 
Denver, San Francisco, and Washington, DC. Subregional offices 
are located in Philadelphia, New York, Los Angeles, and 
Cleveland.
    Federal services impasses panel [FSIP].--An entity within 
the FLRA, assists Federal agencies and unions representing 
Federal employees in resolving impasses which arise in labor 
negotiations. The FSIP assists the parties through informal 
meetings, factfinding and, if necessary, arbitration. The 
professional staff aids the panel members by promptly 
investigating requests for assistance; bringing about informal 
settlements; conducting factfinding and arbitration hearings; 
and drafting report recommendations as well as binding 
decisions for the FSIP members. Further, the staff supports the 
Foreign Service impasses disputes panel in resolving 
negotiation impasses arising under the Foreign Service Act of 
1980.
    The Committee has applied a general reduction of $832,000.

                    General Services Administration

        SALARIES AND EXPENSES, POLICY, LEADERSHIP AND OPERATIONS
Appropriations, 1995....................................    $130,036,000
Budget estimate, 1996...................................     111,827,000
House allowance.........................................      62,499,000
Committee recommendation................................     118,449,000

    The Committee recommends an appropriation of $118,449,000 
for salaries and expenses, policy, leadership and operations of 
the General Services Administration.
    The Committee recommends one appropriation for fiscal year 
1996, as opposed to two separate accounts requested by the 
administration and funded by the House. The Committee believes 
two separate appropriations would unnecessarily fragment GSA's 
financial management of its policy, leadership, and operations 
activities. In total the Committee recommendation is 
$47,256,000 less than the budget estimate, and $6,820,00 more 
than the House allowance for the two accounts.
    The Committee expects GSA to use this flexibility to 
further emphasize and expand its policy and leadership 
responsibilities. The Committee further expects GSA to continue 
converting its operational programs to industrial funding where 
practical.

                       Administrative Reductions

    The ``Salaries and expenses, policy, leadership, and 
operations'' account is reduced by $2,178,000. The reductions 
are to be taken from object classes 21.0, 22.0, 23.3, 24.0, 
25.0, 26.0, and 31.0 at the discretion of the Administrator.

                   REVIEW OF FEDERAL SUPPLY SCHEDULES

    The Committee is advised that the General Services 
Administration has proposed rules to implement section 1555 of 
the Federal Acquisition and Streamlining Act. As they apply to 
Federal supply schedules 65 and 66, these rules may pose 
significant problems within the medical supply and equipment 
markets by disrupting their unique marketing and distribution 
systems. Therefore, the Committee directs that GSA postpone 
rules to implement section 1555 until a comprehensive analysis 
of the effect of such rules, including the impact on private 
sector vendors, has been completed and forwarded to the 
Committee for review and approval.

     Federal buildings fund--limitations on availability of revenue

                        committee funding levels

    The Committee has recommended an aggregate limitation on 
availability of revenue from the Federal buildings fund of 
$5,087,819,000. This amount is $415,546,000 below the budget 
request and $271,859,000 above the House allowance.

                      construction and acquisition
Appropriations, 1995....................................  ($604,002,000)
Budget estimate, 1996...................................   (989,418,000)
House allowance.........................................   (302,013,000)
Committee recommendation................................   (573,872,000)

    The Committee recommends a limitation of $573,872,000 for 
construction and acquisition of facilities in fiscal year 1996. 
The Committee recommendation is $415,546,000 below the budget 
estimate and $271,859,000 above the House allowance.
    The construction and acquisition of facilities activity 
meets the space needs of Federal agencies by funding new 
construction, acquisition of excess properties from the U.S. 
Postal Service and other Government agencies, and the purchase 
of commercial buildings. It is the aim of the General Services 
Administration [GSA] to increase the ratio of Government-owned 
to leased facilities as the most economical means of housing 
Government activities in most geographic locations.


Construction and acquisition facilities--Projects approved by the 
Committee

Colorado: Lakewood, Denver Federal Center, U.S. 
    Geological Survey lab building......................     $25,802,000
Florida: Tallahassee, U.S. courthouse annex.............      24,015,000
Georgia: Savannah, U.S. courthouse annex................       2,597,000
Louisiana: Lafayette, Federal building and U.S. 
    courthouse..........................................      29,565,000
Maryland: Montgomery and Prince Georges Counties, Food 
    and Drug Administration, phase II...................      87,000,000
Nebraska: Omaha, Federal building and U.S. courthouse...      53,424,000
New Mexico: Albuquerque, Federal building and U.S. 
    courthouse..........................................       6,126,000
New York: Central Islip, Federal building and U.S. 
    courthouse..........................................     189,102,000
North Dakota: Pembina, border station...................      11,113,000
Pennsylvania: Scranton, Federal building and U.S. 
    courthouse annex....................................      24,095,000
South Carolina: Columbia, U.S. courthouse annex.........       3,562,000
Texas:
    Austin, Veterans Affairs annex......................       7,940,000
    Brownsville, Federal building and U.S. courthouse...      27,452,000
Washington:
    Point Roberts, U.S. border station..................       3,516,000
    Seattle, U.S. courthouse............................       8,305,000
West Virginia: Martinsburg, Internal Revenue Service 
    Computer Center.....................................      63,408,000
Nonprospectus projects program..........................       6,850,000
                   U.S. COURTHOUSE CONSTRUCTION PLAN

    The Committee concurs with the House in including a new 
provision (sec. 4) which prohibits the submission of a fiscal 
year 1997 budget for the construction of U.S. courthouses, 
unless the facilities meet the construction standards developed 
by the GSA, OMB, and the Judicial Conference of the United 
States and reflects the priorities of the Judicial Conference, 
established in its 5 year construction plan.
    The Committee has been frustrated by the courts' 
unwillingness to establish a priority list for construction and 
continued insistence that all projects are of an equal 
priority.

                       Las Vegas, NV, Courthouse

    The Committee is aware of the need for a new courthouse in 
Las Vegas, NV. Land for the site for this project will be 
donated to the Federal Government from the city of Las Vegas, 
at no cost. The Committee has not provided funds for the 
construction of this project in fiscal year 1996 because the 
General Services Administration has advised the Committee that 
the contract for this project cannot be awarded until June 
1997. Because of the urgent need of the courts in Nevada, the 
Committee instructs GSA to continue preliminary design work on 
this project in fiscal year 1996 and request funds in fiscal 
year 1997 for the construction of this new courthouse project. 
The Committee further notes that it will do its best to fund 
this project as one of the highest priorities in fiscal year 
1997.

                    MOBILE, AL, HOUSING REQUIREMENTS

    The Committee has been made aware of the emerging need to 
construct a new Federal building/courthouse to meet the 
expanding needs of the courts and consolidate the various 
Federal offices in Mobile. The Committee urges the 
Administrator of General Services to work closely with the 
courts and affected Federal agencies to accelerate an 11(b) 
report on the space requirements, so that the report can be 
submitted to the House Committee on Transportation and 
Infrastructure, the Senate Committee on Environment and Public 
Works, and the House and Senate Committees on Appropriations at 
the soonest possible date.
                        repairs and alterations
Appropriations, 1995....................................  ($723,864,000)
Budget estimate, 1996...................................   (911,000,000)
House allowance.........................................   (713,086,000)

Committee recommendation

                                                           (627,000,000)

    The Committee recommends new obligational authority of 
$627,000,000 for repairs and alterations in fiscal year 1996. 
The Committee recommendation is $284,000,000 below the budget 
estimate and $86,086,000 under the House allowance.
    Under this activity, the General Services Administration 
[GSA] executes its responsibility for repairs and alterations 
[R&A;] of both Government-owned and leased facilities under the 
control of GSA. The major goal of this activity is to provide 
commercially equivalent space to tenant agencies. Safety, 
quality, and operating efficiency of facilities are given 
primary consideration in carrying out this responsibility. A 
major portion of the fiscal year 1996 program is devoted to 
nondiscretionary work necessary to meet this goal and keep the 
buildings in an occupiable condition.
    R&A; workload requirements originate with scheduled onsite 
inspections of buildings by qualified regional engineers and 
building managers. The work identified through these 
inspections is programmed in order of priority into the repairs 
and alterations construction automated tracking system [RACATS] 
and incorporated into a 5-year plan for accomplishment, based 
upon funding availability, urgency, and the volume of R&A; work 
that GSA has the capability to execute annually. Beginning in 
fiscal year 1995, design and construction services activities 
associated with the repair and alteration projects are funded 
in this account.
    The R&A; program, for purposes of funds control, is divided 
into two types of projects--line item and nonline item. The 
following is a definition of each category of projects:
    Line item projects.--Line item projects are those larger 
projects for which a prospectus is required under the 
provisions of the Public Buildings Act of 1959 and for which 
over $1,500,000 is to be obligated at a single location within 
a fiscal year. Generally, line item projects are similar to 
construction projects in the scope of work involved and the 
multiyear timeframe for project completion. Line item projects 
are listed individually in GSA's appropriations acts and the 
obligational authority for each project is limited to the 
amount shown therein.
    Nonline item projects.--This category includes all smaller 
projects for which an amount less than $1,500,000 is to be 
obligated at a single location within a fiscal year. Projects 
included in this category are generally short term in nature 
and funds can normally be obligated within a 1-year period. 
This category also includes projects which are recurring in 
nature, such as cyclic painting and the minor repair of 
defective building systems; for example, mechanical, plumbing, 
electrical, fire safety, and elevator system components.
    Below is the list of line item projects recommended for 
funding by the Committee for fiscal year 1996.

Repairs and alterations:
    Arkansas: Little Rock, Federal building.............      $7,551,000
    California: Sacramento, Federal building (2800 
      Cottage Way)......................................      13,636,000
    District of Columbia: ICC/connecting wing complex/
      Customs (phase 2/3)...............................      58,275,000
    Illinois: Chicago, Federal center...................      45,971,000
    Maryland: Woodlawn, SSA east high-low buildings.....      17,422,000
    North Dakota: Bismarck, Federal building, post 
      office, and U.S. courthouse.......................       7,119,000
    Pennsylvania:
        Philadelphia:
            Byrne-Green complex.........................      30,909,000
            SSA building, Mid-Atlantic Program Service 
              Center....................................      11,376,000
    Puerto Rico: Old San Juan, post office and U.S. 
      courthouse........................................      25,701,000
    Texas: Dallas, Federal building (Griffin St.).......       5,641,000
    Nationwide:
        Chlorofluorocarbons program.....................      43,533,000
        Elevator program................................      13,109,000
        Energy program..................................      20,000,000
        Advance design..................................      22,000,000
    Basic repairs and alterations.......................     304,757,000

    The Committee notes that GSA has authority to reprogram up 
to 10 percent between projects in the Federal buildings fund 
without prior Committee approval. The Committee, therefore, 
suggests that if funds provided for specific repair and 
alterations projects are insufficient to cover the costs, GSA 
should reprogram funds from other lower priority areas.

               capital improvements of border facilities

    Beginning in fiscal year 1988, the Committee recommended, 
and the President approved, the initial phase of a multiyear 
program to improve the United States-Mexico border facilities 
along the entire Southwest border of the United States. 
Although the Committee expects GSA to keep it abreast of the 
needs along the Southwest border it is also aware that a North 
American Free Trade Agreement may result in a need for 
expansion of existing facilities not only of southern, but also 
northern border facilities. Therefore, the Committee instructs 
GSA to work with the Federal inspection agencies in fiscal year 
1996 to identify and pursue facility requirements along the 
borders of the United States.

                   u.s. CustomHouse, New Orleans, LA

    The Committee directs GSA to undertake necessary studies to 
request funds in the fiscal year 1997 budget to accomplish the 
recapture and historic renovation of vacant, underutilized, and 
unrenovated space in the U.S. Customhouse in New Orleans, LA, 
for the purpose of outleasing the first floor space to the 
Audubon Institute to house a new museum.
    The 147-year-old customhouse is listed on the National 
Register of Historic Places and has been designated a National 
Landmark due to its architecture, remarkable construction 
history, and association with numerous events of State and 
national significance. It is one of the most renowned 
monumental buildings in the United States. The Committee 
supports the proposed renovation to ensure that this historic 
asset will be properly maintained and utilized, and its 
countless aesthetic and historic features be preserved and 
enhanced for the use and enjoyment of future generations.

          U.S. Courthouse and Post Office Building, Camden, NJ

    The Committee is aware of the health and safety 
deficiencies at the Camden, NJ, U.S. Courthouse-Post Office 
Building. The Committee instructs GSA to conduct an evaluation 
of the repair and alteration requirements of the Camden, NJ, 
U.S. Courthouse and Post Office Building and submit a report to 
the appropriate congressional committees on this building no 
later than February 1, 1996. Such report shall address 
corrective measures needed to be taken and identify the amount 
of funding required.

                    U.S. Courthouse, Little Rock, AR

    The Committee is aware of the need to provide additional 
courtroom space in Little Rock, AR. The Committee instructs GSA 
to prepare a survey of additional court requirements in this 
area and identify how such needs can be met through an annex to 
the existing courthouse building. Such report shall be 
submitted to the appropriate congressional committees by no 
later than February 1, 1996.

                    SANTA TERESA, NM, PORT OF ENTRY

    The Committee expects the GSA to expedite action to 
construct a permanent border station at Santa Teresa, NM, 
including any necessary reprogramming actions.

                         STEAM TRAP TECHNOLOGY

    A steam trap is a type of control valve that improves the 
flow of steam energy by removing condensate from steamlines. 
The Committee understands that newer steam trap technology has 
created the potential for energy savings in the operation of 
steam systems within Federal facilities. The Committee also 
understands that GSA is knowledgeable of these technologies and 
has a program in place to take advantage of the new energy 
saving technologies whenever steam trap replacements are 
necessary. If it is necessary to test the available systems, 
GSA is instructed to conduct tests in Federal facilities in the 
Washington area to determine acceptability of the steam traps. 
GSA is encouraged to continue replacing inefficient steam traps 
with the most efficient, state-of-the-art types available on a 
life-cycle-cost basis. The Committee expects GSA to report its 
activities in this program to the Committee by April 1, 1996.

                             advance design

    Funding of $2,826,000 for modernization of the old U.S. 
Mint building in San Francisco, CA, has been included, as 
requested, in the advance design funding line item for fiscal 
year 1996.

                    installment acquisition payments
Appropriations, 1995....................................  ($127,531,000)
Budget estimate, 1996...................................   (181,963,000)
House allowance.........................................   (181,963,000)

Committee recommendation

                                                           (181,963,000)

    The Committee recommends a limitation of $181,963,000 for 
installment acquisition payments. The Committee recommendation 
is the same as the budget estimate and the House allowance.
    The Public Buildings Amendments of 1972 enables GSA to 
enter into contractual arrangements for the construction of a 
backlog of approved but unfunded projects. The purchase 
contracts require the Government to make periodic payments on 
these facilities over varying periods until title is 
transferred to the Government. This activity provides for the 
payment of principal, interest, taxes, and other required 
obligations related to facilities acquired pursuant to the 
Public Buildings Amendments of 1972 (40 U.S.C. 602a).

                            rental of space
Appropriations, 1995....................................($2,181,300,000)
Budget estimate, 1996................................... (2,339,000,000)
House allowance......................................... (2,341,100,000)

Committee recommendation

                                                         (2,329,000,000)

    The Committee recommends a limitation of $2,329,000,000 for 
rental of space. The Committee recommendation is $10,000,000 
less than the budget estimate and $12,100,000 below the House 
allowance.
    The General Services Administration is responsible for 
leasing general purpose space and land incident thereto for 
Federal agencies, except for cases where GSA has delegated its 
leasing authority (for example, the Veterans Administration, as 
well as the Departments of Agriculture, Commerce, and Defense). 
GSA's policy is to lease privately owned buildings and land 
only when: (1) Federal space needs cannot be otherwise 
accommodated satisfactorily in existing Government-owned or 
leased space; (2) leasing proves to be more efficient than the 
construction or alteration of a Federal building; (3) 
construction or alteration is not warranted because 
requirements in the community are insufficient or are 
indefinite in scope or duration; or (4) completion of a new 
Federal building within a reasonable time cannot be assured.

                          building operations
Appropriations, 1995....................................($1,322,025,000)
Budget estimate, 1996................................... (1,352,551,000)
House allowance......................................... (1,389,463,000)

Committee recommendation

                                                         (1,302,551,000)

    The Committee recommends a limitation of $1,302,551,000 for 
building operations. The Committee recommendation is 
$50,000,000 less than the budget estimate and $86,912,000 below 
the House allowance.
    This activity provides for the operation of all Government-
owned facilities under the jurisdiction of GSA and building 
services in GSA-leased space where the terms of the lease do 
not require the lessor to furnish such services.
    Services included in building operations are cleaning, 
protection, maintenance, payments for utilities and fuel, 
grounds maintenance, and elevator operations. Other related 
supporting services include various real property management 
and staff support activities such as space acquisition and 
assignment; the moving of Federal agencies as a result of space 
alterations in order to provide better space utilization in 
existing buildings; onsite inspection of building services and 
operations accomplished by private contractors; and various 
highly specialized contract administration support functions. 
The space, operations, and services referred to above are 
furnished by GSA to its tenant agencies in return for payment 
of rent. Due to considerations unique to their operation, GSA 
also provides varying levels of above-standard services in 
agency headquarter facilities, including those occupied by the 
Executive Office of the President, such as the east and west 
wings of the White House.

                            Paralympic Games

    The Committee has included $1,000,000 in the GSA budget to 
provide planning and logistical support to the Paralympic games 
to be held during 1996. Such support shall include technical 
assistance, operations and communications equipment and 
support, construction supervision, storage space, and staff 
assistance where required to help in the preparation of these 
games.

                       Federal Building Security

    Many of the recommendations contained in the Department of 
Justice vulnerability assessment will require a significant 
expenditure of funds, which have not been budgeted. The 
Committee, however, notes that some recommended measures, which 
carry little or no cost could be implemented immediately. For 
example, the interagency group recommended that intelligence 
sharing between law enforcement agencies be facilitated through 
the establishment of a law enforcement liaison. The success of 
liaison programs which currently exist within other law 
enforcement and security agencies are evidence to their 
effectiveness. Accurate flow of timely information can provide 
advance warning of potential threats, enhance prevention 
efforts, and provide a method by which to efficiently allocate 
resources. The Committee instructs GSA to implement this 
recommendation immediately.
    The Committee further instructs GSA to report to the 
Congress by no later than November 1, 1995, on the measures it 
has taken to ensure that its security forces are active 
participants in the intelligence-sharing process through 
liaison programs or other initiatives. Such report shall also 
address the additional costs, if any, associated with the 
enhancement of these capabilities.
    The Committee instructs GSA to review the pay scale and 
other forms of benefits and compensation currently provided to 
the Federal Protective Service officers. Particular 
consideration should be given to the maximum grade and pay of 
an officer, comparisons to similar Federal security positions, 
review of job classifications, and obstacles which may exist to 
remedy any deficiencies identified as a result of this review. 
The Committee instructs GSA to submit the results of this 
review to the Congress by no later than February 1, 1996.
                           Operating Expenses
Appropriations, 1995....................................    $130,036,000
Budget estimate, 1996...................................      53,878,000
House allowance.........................................      49,130,000

Committee recommendation

                                             ...........................

    The Committee has combined this appropriation into the 
``Salaries and expenses, policy, leadership, and operations'' 
account.

                      Office of Inspector General
Appropriations, 1995....................................     $33,090,000
Budget estimate, 1996...................................      34,407,000
House allowance.........................................      32,549,000

Committee recommendation

                                                              34,000,000

    The Committee recommends an appropriation of $34,000,000 
for the Office of Inspector General, which is $407,000 below 
the budget estimate and $1,451,000 above the House allowance.
    The Office of Inspector General [OIG] implements in its 
entirety the provisions of the Inspector General Act.
    Consistent with the Inspector General Act, the OIG has been 
given total responsibility for the audit and investigative 
functions of the agency. Its mission is to detect and 
investigate all instances of fraud and abuse and assure that 
proper corrective action is taken. The Office is also charged 
with the responsibility for reporting on waste, inefficiency, 
and mismanagement, and making recommendations for improvement.
    Audit services provided by the OIG fall within two broad 
categories: Audits of GSA contracts and internal audits, 
including inspections. Through the preaward and postaward 
auditing of GSA contracts, the OIG provides professional advice 
on accounting and financial matters related to the negotiation, 
award, administration, repricing, and settlement of contracts. 
Internal audits deal with all facets of GSA operations.
    Inspections services provide detailed technical evaluations 
of GSA operations. The investigations program provides for the 
detection and investigation of illegal or unethical activities 
against GSA by its employees, vendors doing business with the 
agency, and by other individuals or groups of individuals.
    The Inspector General Act also requires that the inspectors 
general move beyond their traditional role of detecting and 
preventing fraud, waste, and abuse, to also assume 
responsibility for promoting economy and efficiency. The GSA 
Office of Inspector General has a unique role within the 
Federal structure in that its activities affect all Federal 
agencies and several State programs. The broadened mandate 
requires increased emphasis on more effective involvement with 
other governmental agencies, identification of systemic 
problems, participation in the design of new programs, review 
of proposed legislation and regulations, and employee awareness 
programs. The Committee has applied a general reduction of 
$407,000 to this account.

           Allowances and Office Staff for Former Presidents
Appropriations, 1995....................................      $2,215,000
Budget estimate, 1996...................................       2,181,000
House allowance.........................................       2,181,000

Committee recommendation

                                                               2,181,000

    The Committee recommends $2,181,000 for allowances and 
office staff for former Presidents. This recommendation is the 
same as the budget request and the House allowance.
    This program is authorized by the Former Presidents Act, 
Public Law 85-745 (3 U.S.C. 102 note), of August 25, 1958, as 
amended. It provides for an annual pension paid monthly to each 
former President and each widow of a former President; 
compensation for staff assistants employed by each former 
President; and funding for office space, furnishings, and 
equipment as appropriate (defined under CG Decision B-114073, 
Mar. 8, 1961). The Supplemental Appropriations Act of October 
21, 1968, Public Law 90-608, 82 Stat. 1192, allows for travel 
and related expenses for each former President and not to 
exceed two members of his staff. Title 39 U.S.C. 3214 
authorizes a former President and widow to send all mail in the 
United States and its territories as franked mail. Under the 
Presidential Transition Act, section 3(a)(7), each former 
President may use penalty mail.
    This appropriation provides for the pensions, office 
staffs, and related expenses for former Presidents Gerald R. 
Ford, Jimmy Carter, Ronald Reagan, and George Bush and for the 
pension and postal franking privileges for the widow of former 
President Lyndon B. Johnson.
    Below is listed a detailed breakdown of the fiscal year 
1996 funding:

                       ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS, FISCAL YEAR 1996                      
----------------------------------------------------------------------------------------------------------------
                                                             Former Presidents                                  
                                               --------------------------------------------   Widows     Total  
                                                   Ford      Carter     Reagan      Bush                        
----------------------------------------------------------------------------------------------------------------
Personnel compensation........................    $96,000    $96,000    $96,000   $112,655  .........   $400,655
Personnel benefits............................     20,160      5,000     31,680     35,445  .........     92,285
Benefits for former personnel: Pensions.......    151,950    151,950    151,950    151,950    $20,000    627,800
Travel........................................     43,200      2,000     31,000     45,000  .........    121,200
Rental payments to GSA........................     95,000     90,000    344,000    135,000  .........    664,000
Communications, utilities, miscellaneous                                                                        
 charges:                                                                                                       
    Equipment rental..........................  .........  .........  .........  .........  .........  .........
    Telephone.................................     10,000     29,000     31,000     20,000  .........     90,000
    Postage...................................      6,000     14,000     10,000     10,000      1,130     41,130
Printing......................................      4,600     14,000      6,200     16,000  .........     40,800
Other services................................      9,100     13,000     16,000      7,000  .........     45,100
Supplies and materials........................      8,900     11,000      7,000      7,000  .........     33,900
Equipment.....................................  .........     14,000      3,130      7,000  .........     24,130
                                               -----------------------------------------------------------------
      Total obligations.......................    444,910    439,950    727,960    547,050     21,130  2,181,000
----------------------------------------------------------------------------------------------------------------

                         GSA General Provisions

    The Committee has recommended the inclusion of the 
following general provisions:
    Section 1 authorizes GSA to credit accounts with certain 
funds received from Government corporations;
    Section 2 authorizes GSA to use funds for the hire of 
passenger motor vehicles;
    Section 3 authorizes GSA to transfer funds within the 
Federal buildings fund for meeting program requirements;
    Section 4 limits funding for courthouse construction which 
does not meet the standards established by GSA, the Judicial 
Conference of the United States, and OMB and reflect the 
priorities of the Judicial Conference.
    Section 8 continues a provision prohibiting excessing of 
certain property in the vicinity of Norfolk Lake, AR.
    Section 9 continues a provision prohibiting excessing of 
certain property in the vicinity of Bull Shoals Lake, AR.
    Section 10 inserts a general provision which amends section 
17 of Public Law 101-136. In 1989 Congress enacted a provision 
as part of the Fiscal Year 1990, Treasury, Postal Service, and 
General Government Appropriations Act to authorize the transfer 
of 89.274 acres of surplus U.S. Coast Guard property under the 
control of the General Services Administration to the State of 
Hawaii. GSA was unable to transfer the property due to a 
longstanding legal dispute. However, in light of the 5-year 
lapse, the properties listing in Public Law 101-136 may no 
longer approximate the value of the 89.274 acre parcel. This 
section permits the State of Hawaii departments the flexibility 
to effectuate the transfer and swap of properties for 
educational and recreational purposes.

               John F. Kennedy Assassination Review Board

                         salaries and expenses
Appropriations, 1995....................................      $2,150,000
Budget estimate, 1996...................................       2,418,000
House allowance.........................................       2,150,000

Committee recommendation

                                                               2,150,000

    The Committee has recommended $2,150,000 for fiscal year 
1996 for salaries and expenses of the John F. Kennedy 
Assassination Review Board. The Committee recommendation is 
$268,000 less than the budget request and the same as the House 
allowance.
    The John F. Kennedy Assassination Review Board was 
established by Public Law 102-526, the John F. Kennedy 
Assassination Records Collection Act of 1992. The Board will 
facilitate the public disclosure of previously public or 
privately held records relating to the assassination of 
President Kennedy. In addition, the Board will assist in 
dispelling longstanding myths and controversies surrounding the 
assassination of President Kennedy through the release of 
previously sequestered records.

                     Merit Systems Protection Board

                         salaries and expenses
Appropriations, 1995....................................     $24,549,000
Budget estimate, 1996...................................      24,549,000
House allowance.........................................      21,129,000

Committee recommendation

                                                              24,549,000

    The Committee recommends an appropriation of $24,549,000 
for the Merit Systems Protection Board. The Committee 
recommendation is the same as the budget estimate and 
$3,420,000 above the House allowance.
    The Merit Systems Protection Board is an independent, 
quasi-judicial agency, charged by Congress with protecting the 
integrity of Federal merit systems against partisan political 
and other prohibited personnel practices, ensuring adequate 
protection for employees against abuses by agency management, 
and requiring executive branch agencies to make employment 
decisions based on individual merit. This mission is carried 
out principally by: (1) adjudicating employee appeals of agency 
personnel actions, such as removals, suspensions, and 
demotions; (2) adjudicating actions brought by the special 
counsel involving alleged abuses of the merit systems; (3) 
adjudicating actions brought under the Whistleblower Protection 
Act; (4) ordering compliance with final orders where necessary; 
(5) conducting special studies of the civil service and other 
merit systems in the executive branch to determine whether they 
are free of prohibited personnel practices; (6) analyzing and 
reporting on the significant actions of the Office of Personnel 
Management [OPM]; and (7) reviewing regulations issued by OPM 
to ensure they do not require or result in the commission of a 
prohibited personnel practice.

                               limitation

                          (transfer of funds)
Appropriations, 1995....................................    ($2,250,000)
Budget estimate, 1996...................................     (2,430,000)
House allowance.........................................     (2,430,000)

Committee recommendation

                                                             (2,430,000)

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

              National Archives and Records Administration

                           operating expenses
Appropriations, 1995....................................    $195,238,000
Budget estimate, 1996...................................     195,291,000
House allowance.........................................     193,291,000

Committee recommendation

                                                             199,633,000

    The Committee recommends an appropriation of $199,633,000. 
The Committee recommendation is $4,342,000 above the budget 
estimate and $6,342,000 above the House allowance.
    The National Archives and Records Administration became an 
independent agency on April 1, 1985. This appropriation 
provides for basic operations dealing with management of the 
Government's archives and records, operation of Presidential 
libraries, grants for historical publications, and for the 
review for declassification of all security classified 
information.
    Records center.--The records center activity provides for 
the accessioning, storage, reference service, and disposal of 
the semiactive and noncurrent records of Federal agencies 
through a nationwide system of 14 records centers. Significant 
savings result from use of low-cost records storage and the 
efficient and timely disposal of nonpermanent records.
    Archives and related services.--This activity provides for 
selecting, preserving, describing, and making available to the 
general public, scholars, and Federal agencies, the permanently 
valuable historical records of the Federal Government and the 
historical material in Presidential libraries, related 
publications and exhibit programs, and the appraisal of all 
Federal records. It also provides for the publication of the 
Federal Register and Code of Federal Regulations, the U.S. 
Statutes at Large, Presidential documents, and for a program to 
improve the quality of regulations and the public's access to 
them. It provides for the National Audiovisual Center's 
audiovisual information and management programs. It also 
provides for the systematic review of all classified records in 
the National Archives which are over 30 years old, except 
intelligence and cryptological materials dated after 1945, 
which are to be reviewed when 50 years old.
    Program direction.--This activity provides for general 
direction and program support for all programs assigned to the 
National Archives and Records Administration [NARA]. Direction 
is provided by the Archivist, his staff, and the Office of 
Management and Administration.

                           ELECTRONIC ACCESS

    The Committee has provided $4,500,000 for expanding public 
access to National Archives and Records Administration records 
and historical documents. These funds shall be used by the 
Archives to develop an electronic, online, comprehensive 
catalog of Federal records. The Committee notes that despite 
the extensive holdings of the National Archives, some 2.5 
million cubic square feet of documents, the Archives is not 
capable of answering the question, ``What do you have that 
could be of use to us?'' With the increasing use of the 
Internet and other information networks, the Committee believes 
that as a first step, the Archives should catalog the vast 
amount of information it stores so that it will be in a 
position to provide access to these holdings through the 
superinformation highways. The Committee has provided 
$2,600,000 for this purpose in fiscal year 1996. In addition, 
of the increased funds provided, $800,000 shall be used to 
develop a public access server for the Archives to access the 
World Wide Web. Finally, the remaining $1,100,000 shall be used 
to digitize 200,000 or more pages in fiscal year 1996 in order 
to illustrate the breadth and value of its holdings. These 
200,000 pages will bring to the classrooms, public libraries 
and homes of America the milestone documents of our history and 
Government, the Gallery of the Open Frontier, a collection of 
service records from the American Civil War, and frequently 
consulted records of the war in Vietnam. The Committee believes 
this digitization effort is extremely important and expects the 
Archives to work closely with the private sector and utilize 
the expertise and knowledge in developing such systems for use 
online to ensure that these collections are formulated and 
presented in such a way as to be usable, educational, and 
interesting to the public. The Committee further expects the 
Archives to complete this effort as expeditiously as possible 
and be prepared to develop a follow-on project in future fiscal 
years.

 archives facilities and presidential libraries repair and restoration
Appropriations, 1995....................................................
Budget estimate,1996....................................................
House allowance.........................................................

Committee recommendation

                                                              $1,500,000

    The Committee has established a new account for repair and 
restoration of the Archives facilities and Presidential 
libraries. Funds for repairs and alterations have traditionally 
been a part of the ``Operating expenses'' account. The House 
has funded repairs and alterations in that account.
    The creation of this account will ensure that funds are 
available to make the necessary repairs and improvements to 
Archives buildings and Presidential libraries.

        National Historical Publications and Records Commission

                             grants program
Appropriations, 1995....................................      $9,000,000
Budget estimate, 1996...................................       4,000,000
House allowance.........................................       4,000,000

Committee recommendation

                                                               5,000,000

    The Committee recommends an appropriation of $5,000,000. 
The Committee recommendation is $1,000,000 above the budget 
request and the House allowance.
    The National Historical Publications and Records Commission 
[NHPRC] reviews and recommends project grants to Federal and 
State governments and private nonprofit institutions, chiefly 
universities and research libraries. It makes plans, estimates, 
and recommendations for the publication of important historical 
documents and works with various public and private 
institutions in collecting, editing, and publishing papers 
significant to the history of the United States. The Commission 
is composed of members appointed by, and representing, the 
President, Congress, Supreme Court, executive agencies, and 
historical and archival societies.
    Administrative costs of the Commission are included in the 
archives and related services program in the operating 
expenses, National Archives appropriation, beginning in fiscal 
year 1995.

                      Office of Government Ethics

                         salaries and expenses
Appropriations, 1995....................................      $8,104,000
Budget estimate, 1996...................................       8,328,000
House allowance.........................................       7,776,000

Committee recommendation

                                                               8,328,000

    The Committee recommends an appropriation of $8,328,000 for 
salaries and expenses of the Office of Government Ethics in 
fiscal year 1996. This amount is the same as the budget request 
and $552,000 above the House allowance.
    Public Law 100-598 authorized the establishment of the 
Office of Government Ethics as an independent executive branch 
agency separate and apart from the Office of Personnel 
Management beginning October 1, 1989.
    The Office of Government Ethics functions primarily in six 
areas, pursuant to the Ethics in Government Act of 1978. Those 
areas are:
  --Regulatory authority for conflict of interest and 
        postemployment statutes, standards of conduct, and 
        financial disclosure programs throughout the executive 
        branch;
  --Public financial disclosure review and certification for 
        all advice and consent Presidential appointees, and the 
        monitoring of ethics agreements which are executed 
        incident to that review to prevent ethics violations;
  --Education and training to promote understanding among 
        agency ethics officials and employees, as well as the 
        general public;
  --Guidance and interpretation concerning the conflict of 
        interest statutes, standards of conduct and financial 
        disclosure, through advisory opinions, telephone 
        advice, and consultation with agency ethics officials;
  --Enforcement by monitoring and auditing agency ethics 
        programs, and ordering corrective action where 
        appropriate; and
  --Evaluation of the effectiveness of ethics laws and 
        regulations, as well as agency implementation.
    The funding level provided by the Committee will support 91 
full-time equivalent positions, or the same as the 1995 level.

                     Office of Personnel Management

                         salaries and expenses
Appropriations, 1995....................................    $111,999,000
Budget estimate, 1996...................................     108,572,000
House allowance.........................................      85,524,000

Committee recommendation

                                                              96,384,000

    The Committee recommends an appropriation of $96,384,000 
for the salaries and expenses of the Office of Personnel 
Management. The Committee recommendation is $12,188,000 below 
the budget estimate and $10,860,000 above the House allowance.
    The Office of Personnel Management provides Governmentwide 
staffing programs to meet the personnel needs of the Federal 
Government in accordance with law, regulation, and merit 
principles. Among the staffing services OPM provides are:
    Recruiting and special personnel programs.--OPM identifies 
staffing needs, communicates these needs to potential 
recruitment sources, and helps agencies solve recruitment 
problems. It provides the public with information about 
available Federal employment through OPM regional/area offices, 
State job services, and publications. Program planning and 
leadership are also provided for special emphasis programs 
including those for veterans, Hispanics, other minority groups, 
women, and the handicapped.
    Evaluating applicants.--OPM manages the intake of 
applications to meet identified recruiting needs. It evaluates 
candidates for most Federal jobs, maintains applicant 
inventories, and refers the names of candidates for 
consideration in response to agencies requests. For some 
Federal jobs, OPM delegates to other agencies the authority to 
evaluate and refer applicants, while maintaining an oversight 
function to ensure adherence to staffing laws.
    Establishing standards.--OPM sets standards for the 
qualifications required for Federal jobs.
    Policy development.--Through research and development in 
job analysis and personnel assessment procedures, OPM enhances 
the knowledge base which supports Federal personnel practices, 
policies, and standards, as well as provides leadership and 
guidance to Federal agencies in applying sound selection and 
advancement practices.
    Administrative law judges.--OPM provides policy direction 
and evaluation for all personnel aspects for administrative law 
judges Governmentwide and directs the allocation of these 
positions.

                health promotion and disease prevention

    The Committee instructs the Director of OPM to expend not 
to exceed $1,000,000 in fiscal year 1996 to continue and expand 
efforts to ensure that Federal employees and their families 
have ready access to health promotion and disease prevention 
activities. The Committee continues to be aware that the U.S. 
prevention services task force has reported that substituting 
behavioral interventions in ways to maintain good health would 
be more likely to reduce morbidity and morality in this country 
than any other category of clinical intervention. The Committee 
expects OPM to continue to collaborate with the health 
promotion and disease prevention centers currently being 
supported by the Centers for Disease Control and Prevention of 
HHS and further, to ensure that efforts are also made to 
develop innovative ways to utilize video communication 
technology. The Committee further expects OPM to continue to 
utilize the unique expertise that has been demonstrated by the 
University of Arizona and the University of Hawaii under this 
project. The Committee expects the development of culturally 
sensitive model programs targeted toward minority groups, that 
is, native Hawaiians, native Americans, Filipinos, et cetera. 
The Committee further directs OPM to provide a report to the 
Congress on its health promotion and disease prevention 
activities no later than December 31, 1996.

                        committee recommendation

    The Committee concurs with the House in eliminating funding 
for certain OPM programs and activities. The Committee reduces 
funding for the following in the following amounts: the Federal 
Quality Institute (-$808,000); the International Affairs Office 
(-$140,000); the Research Office (-$900,000); and elimination 
of regional offices (-$2,720,000). The Committee also reduces 
funding for common services provided for the terminated 
functions by $2,605,000. The Committee also makes a reduction 
of $5,015,000 in OPM general employment services.

                           FERS/CSRS Coverage

    It has come to the attention of the Committee that certain 
employees hired by the Internal Revenue Service in 1984 were 
informed by their employer, the IRS, that they could select 
coverage under the Civil Service Retirement System. The 
employees then chose this coverage and were informed in 1993, 9 
years later, that the IRS had erroneously provided this 
retirement option to these employees. As a result, IRS has 
advised the employees that they must now be placed, 
retroactively, into the Federal Employees' Retirement System. 
The Committee understands that there may be other Federal 
employees in a similar situation. This error, which had gone 
unnoticed and unchanged for nearly a decade, could adversely 
impact on previously made, long-term, personal, and financial 
decisions and consequently, the employees and their families. 
An administrative error by employing agencies, which occurred 
over 10 years ago, should not penalize employees who selected 
in good faith, such coverage.
    OPM is directed to review the IRS problem and other similar 
circumstances and make every effort to resolve this issue with 
common sense and fairness in mind. Additionally, the 1984 
conversion of Federal retirement annuity systems appears to 
have resulted in several unusual circumstances and 
discrepancies during the years 1984-86. OPM should conduct a 
thorough review of employee coverage to determine if other 
unintended, yet unfair circumstances, may have resulted from 
this conversion. OPM is instructed to correct these problems 
through administrative procedures, if possible, and if not, 
recommend any legislative action which may be required to 
correct this and any other inadvertent inequities.

                       Privatizing Investigations

    The Committee supports the privatization efforts of OPM of 
its investigative services. A private service will enable the 
Federal Government to better serve taxpayers. Nevertheless, the 
Committee is concerned that OPM may be proceeding without a 
full understanding of the fiscal impact of its efforts. The 
Committee understands that OPM has not completed a detailed, 
long-term, cost-benefit analysis of the ESOP proposal. 
Therefore, the Committee believes that OPM should conduct a 
cost-benefit analysis of the proposal, as well as a feasibility 
analysis of the employee-owned company before proceeding. The 
Committee requests that the General Accounting Office [GAO] 
provide the Committee with an analysis of the OPM submissions. 
Additionally, if the ESOP privatization proposal proves 
feasible, the Committee notes that OPM has provided assurances 
that full staffing will be retained at the Federal 
Investigations Processing Center [FIPC], with the recognition 
that many of the employees will be converted from the Federal 
payroll to the employee stock ownership plan. The Committee, 
therefore, instructs OPM not to put this privatization proposal 
into operation prior to completing its cost-benefit analysis 
and in no event prior to March 30, 1996.
                               limitation

                          (transfer of funds)
Appropriations, 1995....................................   ($93,934,000)
Budget estimate, 1996...................................   (102,536,000)
House allowance.........................................   (102,536,000)

Committee recommendation

                                                            (93,261,000)

    The Committee recommends a limitation of $93,261,000. This 
amount is $9,275,000 below budget request and the House 
allowance.
    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.
    The Committee has reduced the limitation on transfers from 
the trust funds by $9,275,000. This reduction is based on the 
fact that OPM is downsizing several revolving fund programs and 
the Committee believes that the limitation should be reduced 
accordingly.

                      Office of Inspector General

                         salaries and expenses
Appropriations, 1995..........................................$4,009,000
Budget estimate, 1996......................................... 4,037,000
House allowance............................................... 4,009,000

Committee recommendation

                                                               4,009,000

    The Committee recommends an appropriation of $4,009,000 for 
salaries and expenses of the Office of Inspector General in 
fiscal year 1996. This amount is $28,000 below the budget 
estimate and the same as the House allowance.
    The Office of Inspector General was established as a 
statutory entity under the Inspector General Act Amendments of 
1988, Public Law 100-504, effective April 16, 1989. The Office 
of Inspector General is charged with establishing policies for 
conducting and coordinating efforts which promote economy, 
efficiency, and integrity in the Office of Personnel 
Management's activities which prevent and detect fraud, waste, 
and abuse in the agency's programs. Furthermore, as a means of 
assuring that inspector general offices maintain the ability to 
function independently within the overall structure of their 
agencies, the 1988 legislation required a direct semiannual 
reporting structure among the inspector general and the agency 
head and Congress and allowed inspectors general to perform a 
number of internal management functions, such as budget, 
personnel, and procurement, separate and apart from the 
agencies' existing systems. The Office of Inspector General 
carries out its programmatic mandate in three principal 
operational areas: audits and inspections of OPM activities and 
operations; investigations; and followup and reporting.

               (Limitation on Transfer from Trust Funds)
Appropriations, 1995....................................    ($6,156,000)
Budget estimate, 1996...................................     (6,181,000)
House allowance.........................................     (6,181,000)

Committee recommendation

                                                             (6,181,000)

    The Committee recommends a limitation on transfers from the 
trust funds in support of the Office of Inspector General 
activities totaling $6,181,000 for fiscal year 1996, as 
requested. This amount is the same as the budget estimate and 
the House allowance.

      government payment for annuitants, employees health benefits
Appropriations, 1995....................................  $4,210,560,000
Budget estimate, 1996...................................   3,746,337,000
House allowance.........................................   3,746,337,000

Committee recommendation

                                                           3,746,337,000

    The Committee recommends an appropriation of $3,746,337,000 
for Government payments for annuitants, employees health 
benefits. The Committee recommendation is the same as the 
budget estimate and the House allowance.
    This appropriation funds the Government's share of health 
benefit costs for annuitants and survivors who no longer have 
an agency to contribute the employer's share. The Office of 
Personnel Management requests the appropriation necessary to 
pay this contribution to the employees health benefits fund and 
the retired employees health benefits fund. These revolving 
trust funds are available for: (1) the payment of subscription 
charges to approved carriers for the cost of health benefits 
protection; (2) contributions for qualified retired employees 
and survivors who carry private health insurance under the 
Retired Employees Health Benefits Program; and (3) the payment 
of expenses incurred by the Office of Personnel Management in 
the administration of these programs.
    Public Law 93-246 provides for Government contributions to 
enrollees in the Employees Health Benefits Program equal to 60 
percent of the unweighted average of the high-option premiums 
of six large plans. The total obligations for fiscal year 1995 
reflect the use of payments made by the U.S. Postal Service to 
the employees health benefits fund to finance the cost of the 
Government's contribution for annuitant's health benefits as 
provided in Public Law 100-203. In addition, Public Law 99-272 
provides that the Government contribution for health benefits 
for individuals who first become annuitants by reason of 
retirement from employment with the U.S. Postal Service on or 
after October 1, 1986, shall be paid by the U.S. Postal 
Service.
    This appropriation also provides financing for the 
Government's share of health benefit costs for annuitants and 
survivors covered under the Retired Employees Health Benefits 
Program. Public Law 96-156 provides for increased Government 
contributions toward the subscription charge for health 
coverage, tied to increases in the cost of part B (medical) of 
Medicare, for those annuitants who retired prior to July 1, 
1960.
    The decreased funding in fiscal year 1996 reflects OPM's 
attempt to exhaust excess balances held within this account. 
These unusually high balances are a result of the unexpected 
decrease in premiums that occurred in January 1995.

       government payment for annuitants, employee life insurance
Appropriations, 1995....................................     $28,159,000
Budget estimate, 1996...................................      32,647,000
House allowance.........................................      32,647,000

Committee recommendation

                                                              32,647,000

    The Committee recommends an appropriation of $32,647,000 
for the Government payment for annuitants, employee life 
insurance in fiscal year 1996. This amount is the same as the 
budget request and the House allowance.
    Public Law 96-427, the Federal Employees' Group Life 
Insurance Act of 1980 requires that all employees under the age 
of 65 who separate from the Federal Government for purposes of 
retirement on or after January 1, 1990, continue to make 
contributions toward their basic life insurance coverage after 
retirement until they reach the age of 65. These retirees will 
contribute two-thirds of the cost of the basic life insurance 
premium, identical to the amount contributed by active Federal 
employees for basic life insurance coverage. As with the active 
Federal employees, the Government is required to contribute 
one-third of the cost of the premium for basic coverage. OPM, 
acting as the payroll office on behalf of Federal retirees, has 
requested and the Committee has provided, the funding necessary 
to make the required Government contribution associated with 
annuitants' postretirement life insurance coverage.
    The increased funding provided in fiscal year 1996 is due 
to the increased number of retirements resulting from enactment 
of the Federal Work Force Restructuring Act.

        payment to civil service retirement and disability fund
Appropriations, 1995....................................  $7,339,638,000
Budget estimate, 1996...................................   7,945,998,000
House allowance.........................................   7,945,998,000

Committee recommendation

                                                           7,945,998,000

    The Committee recommends an appropriation of $7,945,998,000 
for payment to the civil service retirement and disability 
fund. The Committee recommendation is identical to the budget 
estimate and the House allowance.
    The civil service retirement and disability fund was 
established in 1920 to administer the financing and payment of 
annuities to retired Federal employees and their survivors. The 
fund covers the operation of the Civil Service Retirement 
System and the Federal Employees' Retirement System.
    The payment to the civil service retirement and disability 
fund consists of an appropriation and a permanent indefinite 
authorization to pay the Government's share of retirement costs 
as defined in the Civil Service Retirement Amendments of 1969 
(Public Law 91-93), the Federal Employees' Retirement System 
Act of 1986 (Public Law 99-335), and the Civil Service 
Retirement Spouse Equity Act of 1985 (Public Law 98-615). The 
payment is made directly from the general fund of the U.S. 
Treasury, and is in addition to appropriated funds that will be 
contributed from agency budgets in fiscal year 1995.
    Public Law 91-93 provides for an annual appropriation to 
amortize, over a 30-year period, all increases in Civil Service 
Retirement System costs resulting from acts of Congress 
granting new or liberalized benefits, extensions of coverage, 
or pay raises. However, the effects of cost-of-living 
adjustments are not amortized. The total current appropriation 
for fiscal year 1996 is the sum of the annual payments 
authorized since the law was enacted in 1969 ($7,410,711,000) 
plus the estimated payment resulting from assumed pay raises 
totaling 5.8 percent in January 1996 ($534,555,000). It also 
includes funding for the annuities of persons employed on the 
construction of the Panama Canal and widows of former 
Lighthouse Service employees ($732,000). The total fiscal year 
1996 current appropriation request represents an increase of 
$534,437,000 from the amount provided in fiscal year 1995 
primarily due to increases in employees' pay.
    Public Law 91-93 also provides permanent, indefinite 
authorization for the Secretary of the Treasury to transfer, on 
an annual basis, an amount equal to 5 percent interest on the 
civil service retirement and disability fund's current unfunded 
liability, calculated based on static economic assumptions, 
$9,332,565,000 and annuity disbursements attributable to credit 
for military service of $3,193,856,000. The permanent 
indefinite authorization in fiscal year 1996 will also include 
the 8 of 30 annual payments of $233,700,000 authorized by 
Public Law 99-335, Federal Employees' Retirement Act of 1986, 
to amortize the supplemental liability of the Federal 
Employees' Retirement System [FERS]. It includes a payment of 
$51,638,000 in accordance with Public Law 98-615 which provides 
for the Secretary of the Treasury to transfer an amount equal 
to the annuities granted to eligible former spouses of 
annuitants who died between September 1978, and May 1985, and 
who did not elect survivor coverage.
    The permanent indefinite authorization in fiscal year 1996 
will total $12,811,759,000, an increase of $74,827,000 from 
fiscal year 1995. This increase reflects a lower CSRS unfunded 
liability interest payment of $67,435,000 and a higher payment 
for military service credit of $142,262,000.

           GENERAL PROVISIONS--OFFICE OF PERSONNEL MANAGEMENT

    The Committee proposes the following new provision:
    Section 5 proposes to extend the date for which OPM has to 
make a final report on certain pay adjustments.

                       Office of Special Counsel

                         salaries and expenses
Appropriations, 1995..........................................$7,955,000
Budget estimate, 1996......................................... 8,566,279
House allowance............................................... 7,840,000

Committee recommendation

                                                               7,840,000

    The Committee recommends an appropriation of $7,840,000 for 
the Office of Special Counsel. The Committee recommendation is 
$726,000 below the budget estimate and the same as the House 
allowance.
    The Office of the Special Counsel of the U.S. Merit Systems 
Protection Board is charged with enforcement of certain 
provisions of the Civil Service Reform Act of 1978 (Public Law 
95-454 and 5 U.S.C. 1204-1208). The primary functions of the 
office are: (1) to investigate and, if appropriate, prosecute 
prohibited personnel practices and activities prohibited by 
other civil service law, rule, or regulation; (2) to 
investigate and, if appropriate, prosecute prohibited political 
activities on the part of Federal and covered State and local 
employees; and (3) to provide employees a protected means of 
disclosing information concerning wrongdoing in Federal 
agencies with assurance that the confidentiality of the 
discloser will be maintained and that appropriate action will 
be taken.
    The statute requires OSC to investigate and, if warranted, 
prosecute: all allegations of prohibited personnel practices, 
including reprisal for protected disclosures of information; 
prohibited political activity; arbitrary or capricious 
withholding of information under the Freedom of Information 
Act; involvement of any employee in any prohibited 
discrimination found by any court or appropriate administrative 
authority; and any other activity prohibited by civil service 
law, rule, or regulation. OSC also provides a safe channel for 
disclosure of information evidencing waste, fraud, and abuse 
and referral of such information to agencies.
    The Committee recommendation denies funding for the 
requested initiatives.
    The funding provided in fiscal year 1996 will provide a 
permanent, full-time staffing level of 95 for the Office of 
Special Counsel, or 1 below the fiscal year 1995 level.

                             U.S. Tax Court

                         salaries and expenses
Appropriations, 1995....................................     $34,039,000
Budget estimate, 1996...................................      34,039,000
House allowance.........................................      32,899,000

Committee recommendation

                                                              33,639,000

    The Committee recommends an appropriation of $33,639,000 
for the U.S. Tax Court. This amount is $400,000 less than the 
budget estimate and $740,000 above the House allowance.
    The U.S. Tax Court is an independent judicial body in the 
legislative branch under article I of the Constitution of the 
United States. The court is composed of a chief judge and 18 
judges. Decisions by the court are reviewable by the U.S. 
Courts of Appeals and, if certioraris is granted, by the 
Supreme Court.
    In their judicial duties the judges are assisted by senior 
judges, who participate in the adjudication of regular cases, 
and by special trial judges, who hear small tax cases and 
certain regular cases assigned to them by the chief judge.
    The court conducts trial sessions throughout the United 
States, including Hawaii and Alaska.
    The U.S. Tax Court hears and decides cases involving 
Federal income, estate and gift tax deficiencies, and excise 
taxes relating to public charities, private foundations, 
qualified pension plans, real estate investment trusts, and 
windfall profit tax on domestic crude oil. It also renders 
declaratory judgments regarding the qualification or continuing 
qualification (including revocations of rulings on the 
exemptions) of retirement plans.
    The Tax Court has jurisdiction to render declaratory 
judgments with respect to exempt organization status 
determinations pursuant to section 501(c)(3), Internal Revenue 
Code, and to enter declaratory judgments on the tax treatment 
of interest on proposed issues of Government obligations. In 
addition, the court has jurisdiction over actions to restrain 
disclosure and to obtain additional disclosure with respect to 
public inspection of written determinations issued by the 
Internal Revenue Service, and actions to compel the disclosure 
of the identity of third-party contacts relating to written 
determinations made by the Internal Revenue Service.
    For 1996, the court proposes a trial program of 380 weeks 
consisting of 175 weeks of regular trial sessions and 105 weeks 
of small tax case sessions. In addition, the court plans to 
schedule special sessions for lengthy trials consisting of 
approximately 100 weeks. Trials are held in approximately 80 
cities throughout the United States; 90 to 95 percent of the 
Federal tax trial work occurs in the U.S. Tax Court.
                STATEMENT CONCERNING GENERAL PROVISIONS

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

                                This Act

    Sections 502-508 and 511-520 of the General Provisions 
contained in the accompanying bill are the same as last year's 
bill and the House-passed bill. A summary of those provisions 
follows, as well as, that of the Committee's recommendation for 
new provisions, sections 522, 523, and 529:
    Section 502 limiting the use of appropriated funds to the 
current fiscal year;
    Section 503 regarding consultant services;
    Section 504 regarding employment of veterans in certain 
jobs performed in Federal buildings;
    Section 505 regarding enforcement of section 307 of the 
Tariff Act;
    Section 506 prohibiting the transfer of control over the 
Federal Law Enforcement Training Center;
    Section 507 regarding the use of funds for certain 
propaganda purposes;
    Section 508 prohibiting use of funds appropriated in this 
act from being used to prevent certain Federal employees from 
contacting their Congressman;
    Section 510 permits the Office of Personnel Management to 
accept donations for the Federal Executive Institute and 
executive seminar centers;
    Section 511 authorizes the Secret Service to accept 
donations to offset the costs of protection of former 
Presidents;
    Section 513 regarding certain employment practices 
regarding veterans;
    Section 514 prohibits the use of funds to provide nonpublic 
information such as mailing or telephone lists to any person or 
organization outside of the Government;
    Section 515 requires compliance with the Buy American Act;
    Section 516 states the sense of the Congress regarding 
notice and purchase of American-made products;
    Section 517 prohibits an individual from eligibility for 
Government contracts if a court determines that individual has 
intentionally fraudulently affixed a ``Made in America'' label 
to any product non-American made;
    Section 519 prohibits any increases in the travel object 
classification for any agency funded in this act without the 
prior approval of the Committees on Appropriations;
    Section 520 defines area of authority for special police 
officers of the Bureau of Engraving and Printing.
    Section 522 establishes the U.S. Mint public enterprise 
fund.
    Section 523 makes a technical correction to Public Law 103-
329.
    Section 529 establishes a date certain with regard to 
employment of certain employees of the Bureau of Public Debt.
                      TITLE VI--GENERAL PROVISIONS

                Departments, Agencies, and Corporations

    Sections 601-618, 620-625 of the general provisions 
contained in the accompanying bill are the same as last year's 
bill and the House-passed bill. The Committee has continued 
sections 631-633 which were in last year's bill, but not 
included in the House-passed bill. The Committee has included 
one new section, 634.
    The Committee has recommended the inclusion of the 
following general provisions:
    Section 601 continues a provision authorizing agencies to 
pay travel costs of the families of Federal employees on 
foreign duty to return to the United States in the event of 
death or a life threatening illness of the employee.
    Section 602 continues a provision requiring agencies to 
administer a policy designed to ensure that all of its 
workplaces are free from the illegal use of controlled 
substances.
    Section 603 continues a provision authorizing reimbursement 
for travel, transportation, and subsistence expenses incurred 
for training classes, conferences, or other meetings in 
connection with the provision of child care services to Federal 
employees.
    Section 604 continues a provision regarding price 
limitations on vehicles to be purchased by the Federal 
Government.
    Section 605 continues a provision allowing funds made 
available to agencies for travel to also be used for quarters 
allowances and cost-of-living allowances.
    Section 606 continues a provision prohibiting the 
Government, with certain specified exceptions, from employing 
non-U.S. citizens whose posts of duty would be in the 
continental United States.
    Section 607 continues a provision ensuring that agencies 
will have authority to pay the General Services Administration 
bills for space renovation and other services.
    Section 608 continues a provision allowing agencies to 
finance the costs of recycling and waste prevention programs 
with proceeds from the sale of materials recovered through such 
programs.
    Section 609 continues a provision providing that funds may 
be used to pay rent and other service costs in the District of 
Columbia.
    Section 610 continues a provision restricting the 
President's recess appointment power.
    Section 611 continues a provision authorizing agencies with 
delegated authority to make direct expenditures to operate, 
maintain, and repair its facilities using funds otherwise 
available to make rental payments to GSA.
    Section 612 continues a provision allowing agencies to use 
foreign currency (for which the Treasury is to be reimbursed) 
to carry out any program that the agency is authorized to carry 
out under its dollar appropriations.
    Section 613 continues a provision precluding the financing 
of groups by more than one Federal agency absent prior and 
specific statutory approval.
    Section 614 continues a provision authorizing the Postal 
Service to employ guards and give them the same special police 
powers as GSA guards.
    Section 615 continues a provision prohibiting the use of 
funds for enforcing regulations disapproved in accordance with 
the applicable law of the United States.
    Section 616 continues a provision limiting the pay 
increases of certain prevailing rate employees.
    Section 617 continues a provision limiting the amount of 
funds that can be used for redecoration of offices under 
certain circumstances.
    Section 618 continues a provision prohibiting the 
expenditure of funds for the acquisition of additional law 
enforcement training facilities without the advance approval of 
the Committees on Appropriations.
    Section 620 continues a provision permitting interagency 
funding of national security and emergency preparedness 
telecommunications initiatives, which benefit multiple Federal 
departments, agencies, and entities.
    Section 621 continues a provision permitting 
telecommunications support for the work-at-home and 
telecommuting program under guidelines issued by the Office of 
Personnel Management. The Committee has amended this provision 
to make it permanent law.
    Section 622 continues a provision requiring agencies to 
certify that a schedule C appointment was not created solely or 
primarily to detail the employee to the White House.
    Section 623 continues a provision requiring agencies to 
administer a policy designed to ensure that all of its 
workplaces are free from discrimination and sexual harassment.
    Section 624 continues a provision prohibiting the use of 
funds for travel expenses not directly related to official 
governmental duties.
    Section 625 continues a provision requiring the President 
to certify that persons responsible for administering the Drug 
Free Workplace Program are not themselves the subject of random 
drug testing.
    Section 626 authorizes agencies to retain 50 percent of the 
money they receive as a result of participating in energy and 
water conservation activities.
    Section 631 continues a requirement for reporting on 
detailing of certain Federal employees.
    Section 632 continues a provision prohibiting the 
expenditure of funds for the implementation of agreements in 
certain nondisclosure policies unless certain provisions are 
included in the policies.
    Section 633 continues a provision regarding mandatory use 
of FTS 2000.
    Section 634 amends D.C. Code section 4-607(18) which will 
clarify existing language in the code to ensure proper 
calculation of the death benefit annuity for spouses of Secret 
Service personnel consistent with all other participants in the 
annuity plan. This amendment corrects a technical error which 
would have caused a disparity in the compensation provided by 
the annuity between Secret Service members and other 
participants in the plan. It must be stressed that to date, 
this annuity has been paid out consistently to all members in 
the plan, yet this recently discovered error could result in 
the disparity in payments between members in the annuity. 
Therefore, the Committee amends this language so the annuity 
continues to be paid fairly to all eligible participants.

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

    Paragraph 7 of rule XVI requires that Committee reports on 
general appropriations bills identify each Committee amendment 
to the House bill ``which proposes an item of appropriation 
which is not made to carry out the provisions of an existing 
law, a treaty stipulation, or an act or resolution previously 
passed by the Senate during that session.''
    The Committee recommends the following appropriations which 
lack authorization:
    Department of the Treasury:
      Departmental Offices:
                  Salaries and expenses, $105,929,000
                  Treasury Building and annex, repair and 
                restoration, $7,684,000
                  Counterdrug Technology Assessment Center, 
                salaries and expenses, research and 
                development, $20,500,000
                  Counternarcotics research and development 
                projects, $20,000,000
                  High-intensity drug trafficking areas, 
                $110,000,000
                          State and local drug control 
                        activities, $55,000,000
                          Federal agency drug control 
                        activities, $55,000,000
      Financial Crimes Enforcement Network, salaries and 
        expenses, $22,198,000
      Federal Law Enforcement Training Center:
                  Salaries and expenses, $34,006,000
                  Acquisition, construction, improvements, and 
                related expenses, $9,663,000
      Financial Management Service, salaries and expenses, 
        $186,070,000
      Bureau of Alcohol, Tobacco and Firearms, salaries and 
        expenses, $377,971,000
      U.S. Customs Service:
                  Salaries and expenses, $1,387,853,000
                  Operation and maintenance, air and marine 
                interdiction programs, $68,543,000
      Internal Revenue Service:
                  Processing, assistance, and management, 
                $1,767,309,000
                  Tax law enforcement, $4,097,294,000
                  Information systems, $1,445,105,000
      Executive Office of the President:
                  The White House Office, salaries and 
                expenses, $38,131,000
                  Executive Residence at the White House, 
                operating expenses, $7,827,000
                  White House repair and restoration, 
                $2,200,000
                  Special Assistance to the President, salaries 
                and expenses, $3,280,000
                  Council of Economic Advisers, salaries and 
                expenses, $3,439,000
                  Information Security Oversight Office, 
                salaries and expenses, $1,382,000
                  National Security Council, salaries and 
                expenses, $6,648,000
                  Office of Administration, salaries and 
                expenses, $25,560,000
                  Office of Management and Budget, salaries and 
                expenses, $55,907,000
      Federal Election Commission, salaries and expenses, 
        $28,517,000
      Federal Labor Relations Authority, salaries and expenses, 
        $21,398,000
      General Services Administration, Federal buildings fund, 
        limitations on availability of revenue:
                New construction, $410,707,000:
                        Florida:
                                Tallahassee, U.S. courthouse 
                                annex, $24,015,000
                        Georgia:
                                Savannah, U.S. courthouse 
                                annex, $2,597,000
                        Louisiana:
                                Lafayette, Federal building and 
                                U.S. courthouse, $29,565,000
                        Nebraska:
                                Omaha, Federal building and 
                                U.S. courthouse, $53,424,000
                        New Mexico:
                                Albuquerque, Federal building 
                                and U.S. courthouse, $6,126,000
                        New York:
                                Central Islip, Federal building 
                                and U.S. courthouse, 
                                $189,102,000
                        South Carolina:
                                Columbia, U.S. courthouse 
                                annex, $3,562,000
                        Texas:
                                Austin, Veterans Affairs annex, 
                                $7,940,000
                                Brownsville, Federal building 
                                and U.S. courthouse, 
                                $27,452,000
                        Washington:
                                Point Roberts, U.S. Border 
                                Station, $3,516,000
                        West Virginia:
                                Martinsburg, Internal Revenue 
                                Service computer center, 
                                $63,408,000
                Repairs and alterations, $519,062,000:
                        Arkansas:
                                Little Rock, Federal building, 
                                $7,551,000
                        District of Columbia:
                                ICC/connecting wing complex/
                                customs (phase 2/3), 
                                $58,275,000
                        North Dakota:
                                Bismarck, Federal building, 
                                Post Office and U.S. 
                                courthouse, $7,119,000
                        Pennsylvania:
                                Philadelphia, SSA Building, 
                                Mid-Atlantic Program Service 
                                Center, $11,376,000
                        Puerto Rico:
                                Old San Juan, Post Office and 
                                U.S. courthouse, $25,701,000
                Texas:
                        Dallas, Federal building (Griffin St.), 
                        $5,641,000
                        Chlorofluorcarbons program, $43,533,000
                        Elevator program, $13,109,000
                        Energy program, $20,000,000
                        Advance design, $22,000,000
                        Basic repairs and alterations, 
                        $304,757,000
      Salaries and expenses, policy, leadership, and 
        operations, $118,449,000
      Merit Systems Protection Board, salaries and expenses, 
        $24,549,000
      National Historical Publications and Records Commission, 
        $5,000,000
      Office of Personnel Management, health promotion and 
        disease prevention activities, $1,000,000
      Office of Special Counsel, salaries and expenses, 
        $7,840,000
      U.S. Tax Court, salaries and expenses, $33,639,000
COMPLIANCE WITH PARAGRAPH 7(C), RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

    Pursuant to paragraph 7(c) of rule XXVI, the accompanying 
bill was ordered reported from the Committee, subject to 
amendment and subject to the subcommittee allocation, by 
recorded vote of 28-0.
        Yeas                          Nays
Chairman Hatfield                     
Mr. Stevens
Mr. Cochran
Mr. Specter
Mr. Domenici
Mr. Gramm
Mr. Bond
Mr. Gorton
Mr. McConnell
Mr. Mack
Mr. Burns
Mr. Shelby
Mr. Jeffords
Mr. Gregg
Mr. Bennett
Mr. Byrd
Mr. Inouye
Mr. Hollings
Mr. Johnston
Mr. Leahy
Mr. Bumpers
Mr. Lautenberg
Mr. Harkin
Ms. Mikulski
Mr. Reid
Mr. Kerrey
Mr. Kohl
Mrs. Murray
 COMPLIANCE WITH PARAGRAPH 12, RULE XXVI OF THE STANDING RULES OF THE 
                                 SENATE

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

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

    Section 1. The Allowance provided to employees at rates set 
under section 5941 of title 5, United States Code, and 
Executive Order Numbered 10000 as in effect on the date of 
enactment of this Act through December 31, [1996] 1998: 
Provided, That no later than March 1 [1996] 1998, the Office of 
Personnel Management shall conduct a study and submit a report 
to the Congress proposing appropriate changes in the method of 
fixing compensation for affected employees, including any 
necessary legislative changes. Such study shall include----
          (1) an examination of the pay practices of other 
        employers in the affected areas;
          (2) a consideration of alternative approaches to 
        dealing with the unusual and unique circumstances of 
        the affected areas, including modifications to the 
        current methodology for calculating allowances to take 
        into account all cost of living in the geographic areas 
        of the affected employee; and
          (3) an evaluation of the likely impact of the 
        different approaches on the Government's ability to 
        recruit and retain a well-qualified workforce.

            Sec. 522. Subchapter III of chapter 51 of subtitle 
        IV of title 31, United States Code is amended by adding 
        at the end thereof the following new section:

        SEC. 5136. UNITED STATES MINT PUBLIC ENTERPRISE FUND.

            There shall be established in the Treasury of the 
        United States, a United States Mint Public Enterprise 
        Fund (the ``Fund'') beginning in fiscal year 1996 and to 
        remain thereafter: Provided, That all receipts from Mint 
        operations and programs, including the production and 
        sale of numismatic items, the production and sale of 
        circulating coinage, the protection of Government 
        assets, and gifts and bequests of property, real or 
        personal, shall be deposited into the Fund and shall be 
        available without fiscal year limitations: Provided 
        further, That all expenses incurred by the Secretary of 
        the Treasury for operations and programs of the United 
        States Mint that the Secretary of the Treasury 
        determines, in the Secretary's sole discretion, to be 
        ordinary and reasonable incidents of Mint operations and 
        programs, and any expense incurred pursuant to any 
        obligation or other commitment of Mint operations and 
        programs that was entered into before the establishment 
        of the Fund, shall be paid out of the Fund: Provided 
        further, That not to exceed 6.2415 percent of the 
        nominal value of the coins minted, shall be paid out of 
        the Fund for the circulating coin operations and 
        programs previously provided for by appropriation: 
        Provided further, That the Secretary of the Treasury may 
        borrow such funds from the General Fund as may be 
        necessary to meet existing liabilities and obligations 
        incurred prior to the receipt of revenues into the Fund: 
        Provided further, That the General Fund shall be 
        reimbursed for such funds by the Fund within 1 year of 
        the date of the loan: Provided further, That the Fund 
        may retain receipts from the Federal Reserve System from 
        the sale of circulating coins at face value for deposit 
        into the Fund: Provided further, That the Secretary of 
        the Treasury shall transfer to the Fund all assets and 
        liabilities of the Mint operations and programs, 
        including all Numismatic Public Enterprise Fund assets 
        and liabilities, all receivables, unpaid obligations and 
        unobligated balances from the Mint's appropriation, the 
        Coinage Profit Fund, and the Coinage Metal Fund, and the 
        land and buildings of the Philadelphia Mint, Denver 
        Mint, and the Fort Knox Bullion Depository: Provided 
        further, That the Numismatic Public Enterprise Fund, the 
        Coinage Profit Fund, and the Coinage Metal Fund shall 
        cease to exist as separate funds as their activities and 
        functions are subsumed under and subject to the Fund, 
        and the requirements of 31 U.S.C. 5134(c)(4), (c)(5)(B), 
        and (d), and (e) of the Numismatic Public Enterprise 
        Fund shall apply to the Fund: Provided further, That at 
        such times as the Secretary of the Treasury determines 
        appropriate, but not less than annually, any amount in 
        the Fund that is determined to be in excess of the 
        amount required by the Fund shall be transferred to the 
        Treasury for deposit as miscellaneous receipts: Provided 
        further, That the term ``Mint operations and programs'' 
        means (1) the activities concerning, and assets utilized 
        in, the production, administration, distribution, 
        marketing, purchase, sale, and management of coinage, 
        numismatic items, the protection and safeguarding of 
        Mint assets and those non-Mint assets in the custody of 
        the Mint, and the Fund; and (2) includes capital, 
        personnel salaries and compensation, functions relating 
        to operations, marketing, distribution, promotion, 
        advertising, official reception and representation, the 
        acquisition or replacement of equipment, the renovation 
        or modernization of facilities, and the construction or 
        acquisition of new buildings: Provided further, That the 
        term ``numismatic item'' includes any medal, proof coin, 
        uncirculated coin, bullion coin, numismatic collectible, 
        other monetary issuances and products and accessories 
        related to any such medal or coin: Provided further, 
        That provisions of law governing procurement or public 
        contracts shall not be applicable to the procurement of 
        goods or services necessary for carrying out Mint 
        programs and operations and such programs and operations 
        shall also be exempt from all government personnel 
        regulations, ceilings and full-time equivalent controls.
    Section 634 amends section 4-607(18) of title 4 of the 
District of Columbia Code, as follows:

    (18) The term ``adjusted average pay'' means the average 
pay of a member who was an officer or member of the United 
States Secret Service Uniformed Division, the United States 
Secret Service Division, the Metropolitan Police Force or the 
Fire Department of the District of Columbia increased by the 
per centum increase (adjusted to the nearest one-tenth of 1 
percent) in the Consumer Price Index for All Urban Consumers, 
published by the Bureau of Labor Statistics, between the month 
in which such member retires and the month immediately prior to 
the month in which such member dies.

    Section 4-622 of title 4 of the District of Columbia Code, 
in section (b)(1)(A):

    (A) [Of the basis upon which the annuity, relief, or 
retirement compensation being received by such former member at 
the time of death was computed] Of the adjusted average pay of 
such former member in the case of a member who was an officer 
or member of the United States Park Police force, the United 
States Secret Service Uniformed Division, or the United States 
Secret Service Division; or

    Section 4-622 of title 4 of the District of Columbia Code, 
in section (c)(1)(A)(ii):

    (ii) [The basis upon which the former member's annuity at 
the time of death was computed] the adjusted average pay of the 
former member in the case of a member who was an officer or 
member of the United States park Police force, the United 
States Secret Service Uniformed Division, or the United States 
Secret Service Division, or the adjusted average pay of the 
former member in the case of a member who was an officer or 
member the Metropolitan Police force or the Fire Department of 
the District of Columbia, divided by the number of eligible 
children;

    Section 4-622 of title 4 of the District of Columbia Code, 
in section (c)(2)(B):

    (B) In the case of a member who was an officer or member of 
the United States Park Police Force, the United States Secret 
Service Uniformed Division, or the United States Secret Service 
Division[:
          (i) 75 percent of the basis upon which the former 
        member's annuity at the time of death was computed, 
        divided by the number of eligible children;
          (ii) $1,860; or
          (iii) $5,580 divided by the number of eligible 
        children; or]
          75 percent of the adjusted average pay of the former 
        member, divided by the number of eligible children; or

    Section 10, General Provisions GSA, amends Section 17(c)(1) 
and (2) of Public Law 101-136, as follows:

    (c) Conditions of Conveyances.--(1) The Administrator shall 
convey the approximately 89.274 acres described in subsection 
(b) to the State of Hawaii on the condition that the State of 
Hawaii, [within three years of date of conveyance] 
simultaneously, exchange such property and other appropriate 
consideration (if necessary) for an equal total amount of 
consideration that includes one or more parcels of Hawaiian 
home lands on the islands of Hawaii, Oahu, and Molokai. 
[consisting of: (1) approximately 6.00 acres of real property 
located in Keaukaha (Tract 1), Waiakea, Hilo, Hawaii, being the 
present site of Keaukaha School; (2) approximately 26.207 acres 
of real property filed in the Office of the Department of Land 
and Natural Resources in C.S.F. No. 20282 and a separate 
parcel, being the present site of Molokai High School and 
Athletic Field; and (3) approximately 13.675 acres, filed in 
the Office of the Department of Land and Natural Resources in 
C.S.F. Nos. 12325, 10414, and 6342, being the present site of 
Nanaikapono Elementary School.]
    (2) Prior to the conveyance by the Administrator of 
approximately 89.274 acres described in subsection (b), as a 
condition of the conveyance, the State of Hawaii shall agree 
that the Hawaiian Home Land properties to be acquired by the 
State of Hawaii [in the exchange described in subsection 
(c)(1)] shall only be used for educational or recreational 
purposes in perpetuity, and in the event the properties cease 
to be so used, all or any portion of such properties shall, in 
its existing condition, revert to the United States.

                        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     Amountof    Committee     Amountof 
                       allocation      bill      allocation      bill   
------------------------------------------------------------------------
Comparison of                                                           
 amounts in the bill                                                    
 with Committee                                                         
 allocations to its                                                     
 subcommittees of                                                       
 amounts in the                                                         
 First Concurrent                                                       
 Resolution for                                                         
 1996: Subcommittee                                                     
 on Treasury, Postal                                                    
 Service, General                                                       
 Government:                                                            
    Defense                                                             
 discretionary......  ...........  ...........  ...........  ...........
    Nondefense                                                          
 discretionary......       11,187       11,187       11,557   \1\ 11,525
    Violent crime                                                       
 reduction fund.....           78           76           70           69
    Mandatory.......       11,555       11,889       11,553       11,886
Projections of                                                          
 outlays associated                                                     
 with the                                                               
 recommendation:                                                        
    1996............  ...........  ...........  ...........   \2\ 20,565
    1997............  ...........  ...........  ...........        1,550
    1998............  ...........  ...........  ...........          465
    1999............  ...........  ...........  ...........          270
    2000 and future                                                     
 year...............  ...........  ...........  ...........          201
Financial assistance                                                    
 to State and local                                                     
 governments for                                                        
 1996 in bill.......           NA            7           NA            6
------------------------------------------------------------------------
\1\ Includes outlays from prior-year budget authority.                  
\2\ Excludes outlays from prior-year budget authority.                  
                                                                        
NA: Not applicable.