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107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    107-152

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



 
 TREASURY, POSTAL SERVICE, AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 
                                  2002

                                _______
                                

 July 23, 2001.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 2590]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for the Treasury Department, the Postal Service, 
the Executive Office of the President, and certain Independent 
Agencies for the fiscal year ending September 30, 2002, and for 
other purposes.

                        INDEX TO BILL AND REPORT

_______________________________________________________________________


                                                            Page number

                                                            Bill Report
Summary of the Bill........................................
                                                                      2
Title I--Department of the Treasury:
        Bureau of Alcohol, Tobacco and Firearms............     9
                                                                     18
        Bureau of Engraving and Printing...................
                                                                     28
        Bureau of the Public Debt..........................    17
                                                                     30
        Departmental Offices...............................     2
                                                                      5
        Department-Wide Systems and Capital Investments 
            Programs.......................................     3
                                                                      9
        Federal Law Enforcement Training Center............     6
                                                                     15
        Financial Crimes Enforcement Network...............     5
                                                                     12
        Financial Management Service.......................     9
                                                                     17
        General Provisions--Treasury Department............    23
                                                                     38
        Interagency Crime and Drug Enforcement.............     9
                                                                     17
        Internal Revenue Service...........................    17
                                                                     32
        Office of Inspector General........................     3
                                                                      9
        Treasury Building and Annex Repair and Restoration.     4
                                                                     11
        Treasury Inspector General for Tax Administration..     4
                                                                     10
        United States Customs Service......................    12
                                                                     20
        United States Mint.................................    16
                                                                     29
        United States Secret Service.......................    21
                                                                     37
        Violent Crime Reduction Programs...................
                                                                     19
Title II--Postal Service:
        Payment to the Postal Service Fund.................    26
                                                                     39
Title III--Executive Office of the President and Funds 
    Appropriated to the President:
        Compensation of the President and White House 
            Office.........................................    27
                                                                     44
        Council of Economic Advisers.......................    32
                                                                     47
        Executive Residence at the White House.............    28
                                                                     45
        Federal Drug Control Programs......................    38
                                                                     57
        National Security Council..........................    33
                                                                     48
        Office of Administration...........................    33
                                                                     49
        Office of Management and Budget....................    34
                                                                     50
        Office of National Drug Control Policy.............    36
                                                                     55
        Office of Policy Development.......................    33
                                                                     48
        Special Assistance to the President and Official 
            Residence of the Vice President................    31
                                                                     46
        Unanticipated Needs................................    39
                                                                     61
Title IV--Independent Agencies:
        Committee for Purchase from People who are Blind or 
            Severely Disabled..............................    40
                                                                     61
        Federal Election Commission........................    40
                                                                     62
        Federal Labor Relations Authority..................    40
                                                                     64
        General Services Administration....................    41
                                                                     64
        Merit Systems Protection Board.....................    55
                                                                     76
        Morris K. Udall Scholarship and Foundation.........    56
                                                                     77
        National Archives and Records Administration.......    57
                                                                     79
        Office of Government Ethics........................    58
                                                                     81
        Office of Personnel Management.....................    58
                                                                     82
        Office of Special Counsel..........................    62
                                                                     85
        United States Tax Court............................    62
                                                                     86
Title V--General Provisions:
        This Act...........................................    63
                                                                     86
Title VI--Governmentwide General Provisions:
        Departments, Agencies, and Corporations............    68
                                                                     87
        Compliance with House Rules........................
                                                                     90
        Tables.............................................
                                                                    118
        Summary of the Total Bill..........................
                                                                     95

    The accompanying bill contains recommendations for new 
budget (obligational) authority for fiscal year 2002 for the 
Department of the Treasury, the Postal Service, various offices 
in the Executive Office of the President, and certain 
Independent Agencies. The following table summarizes these 
Recommendations and reflects comparisons with the budget, as 
amended, and with amounts appropriated to date for fiscal year 
2001:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                      Budget                            Bill compared with
                                    New budget     estimates of                  -------------------------------
                                   (obligation)         new
             Agency                  authority    (obligational)  Recommended in    New budget        Budget
                                    fiscal year     authority,       the bill        authority       estimate,
                                   2001 enacted     fiscal year                     fiscal year     fiscal year
                                      to date          2002                            2001            2002
----------------------------------------------------------------------------------------------------------------
Treasury........................     $13,880,468     $14,631,710     $15,061,997     +$1,181,529        $430,287
Postal Service..................          95,888         143,712         143,712         +47,824  ..............
Executive Office of the                  700,273         731,725         749,585         +49,312         +17,860
 President......................
Independent agencies............      15,740,361      16,528,204      16,519,775        +779,414          -8,429
                                 -------------------------------------------------------------------------------
      Grand total...............      30,619,925      32,371,351      32,711,450      +2,091,526        +340,099
----------------------------------------------------------------------------------------------------------------

                             RECOMMENDATION

    The Committee recommends a total of $17,021,000,000 in 
discretionary resources for agencies under its jurisdiction; 
this includes $146,000,000 for the Earned Income Tax Credit 
Compliance Initiative. After scorekeeping adjustments, the 
Committee's recommendation is $1,080,682,000 or 6.8 percent 
above amounts appropriated in fiscal year 2001 and $340,099,000 
or 2.0 percent above the amounts requested by the President.

                           GENERAL STATEMENT

    The allocation received by the Subcommittee on Treasury, 
Postal Service and General Government for fiscal year 2002 
fully supports the critical missions and responsibilities for 
programs under its jurisdiction and maintains a strong 
commitment to ongoing information technology, federal law 
enforcement, and capital construction requirements. The funding 
level is consistent with the recommendations included in the 
fiscal year 2002 Congressional Budget Resolution, as agreed to 
by the House, Senate and President. Although the allocation is 
above the President's original budget by $340 million, the 
agreement on the budget resolution superseded those figures. 
The Committee believes the President's original budget under-
funded certain critical law enforcement and information 
technology initiatives, as reflected by the President's own 
supplemental request for additional funds to provide security 
at the upcoming Olympics.
    The Committee has adjusted amounts to balance Congressional 
priorities with the President's, but has remained within the 
overall agreed-to funding level, and within its 302(b) 
allocation. The Committee is disappointed that the President's 
budget did not support the total funding requirements of the 
Customs Service's Automated Commercial Environment (ACE) 
program. The Committee is aware that original cost estimates 
for ACE called for an investment of $1.4-$1.8 billion over 4 
years. Under the President's budget, this schedule would have 
slipped by an estimated 2 years, with an additional cost to 
taxpayers of $200 million. In order to keep this program on 
track and within budget, the Committee recommends an 
appropriation of $300 million, an increase of $170 million from 
amounts requested by the President.
    The Committee is also concerned that the President's 
initial request did not include the $60.6 million necessary to 
support Treasury law enforcement's role in the upcoming 2002 
Winter Olympics; the Committee is nonetheless pleased that the 
President submitted a request for these funds within the fiscal 
year 2001 supplemental appropriations bill. Because these funds 
would not be spent until fiscal year 2001 had closed, the 
Committee has included funding for these efforts in fiscal year 
2002, which is when they are needed.
    The Committee is pleased by efforts within the 
Administration to streamline common functions, achieve 
economies of scale and implement best business practices. The 
Committee looks forward to working with the Administration to 
achieve these goals but is concerned that the Administration so 
far has adopted a non-specific longer-term approach and could 
not identify specific initiatives nor quantify exact savings 
for fiscal year 2002. In total, the Administration proposed 
that agencies under the Subcommittee's jurisdiction absorb $150 
million in uncontrollable costs associated with non-pay 
inflation, most of which was presumed to be made up through 
administrative initiatives to streamline common functions. In 
the absence of specific initiatives to produce these savings, 
the Committee believes it is premature to assume savings of 
$150 million. The Committee is also concerned that this non-
specific absorption of $150 million would reduce the number of 
critical law enforcement personnel at a time when they are 
sorely needed. For example, the volume of trade and passenger 
traffic outpaces Customs' workforce levels; and Secret Service 
agents are averaging 80 hours of overtime per month. Therefore, 
the Committee provides full funding for most agencies to 
maintain their current levels of effort. The Committee directs 
agencies to keep it informed of ongoing reviews for program 
efficiencies and all efforts associated with implementing best 
business practices; the Committee expects that specific 
proposed savings will be fully developed and submitted as part 
of the President's fiscal year 2003 budget request.
    The Committee supports the President's request to maintain 
a viable courthouse construction program and other critical 
federal infrastructure requirements. Nonetheless, the Committee 
is concerned by the dramatic increases in courthouse 
construction costs and is disappointed by the absence of 
aggressive measures within the General Services Administration 
(GSA) to control these costs. The Committee expects GSA to be 
prepared to both quantify and justify the methodologies used to 
develop the courthouse construction program. The Committee 
believes that these costs can be controlled and will look for 
positive results in the President's fiscal year 2003 budget 
request.
    The Committee continues to have serious concerns about 
Office of Management and Budget's (OMB) lack of leadership in 
the management of federal agencies. The Committee commends the 
President's efforts to improve government performance and 
believes that OMB, which implements both the President's budget 
and his management agenda, will play a critical role in 
determining whether these efforts succeed. The Committee will 
continue to review OMB's performance as it relates to oversight 
and management of federal agencies.

             REPROGRAMMING AND TRANSFER OF FUNDS GUIDELINES

    The following reprogramming guidelines shall be complied 
with by all agencies funded by the Treasury and General 
Government Appropriations Act, 2002:
          1. Except under extraordinary and emergency 
        situations, the Committees on Appropriations will not 
        consider requests for a reprogramming or a transfer of 
        funds, or use of unobligated balances, which are 
        submitted after the close of the third quarter of the 
        fiscal year, June 30;
          2. Clearly stated and detailed documentation 
        presenting justification for the reprogramming, 
        transfer, or use of unobligated balances shall 
        accompany each request;
          3. For agencies, departments, or offices receiving 
        appropriations in excess of $20,000,000, a 
        reprogramming shall be submitted if the amount to be 
        shifted to or from any object class, budget activity, 
        program line item, or program activity involved is in 
        excess of $500,000 or 10 percent, whichever is greater, 
        of the object class, budget activity, program line 
        item, or program activity;
          4. For agencies, departments, or offices receiving 
        appropriations less than $20,000,000, a reprogramming 
        shall be submitted if the amount to be shifted to or 
        from any object class, budget activity, program line 
        item, or program activity involved is in excess of 
        $50,000, or 10 percent, whichever is greater, of the 
        object class, budget activity, program line item, or 
        program activity;
          5. For any action where the cumulative effect of 
        below threshold reprogramming actions, or past 
        reprogramming and/or transfer actions added to the 
        request, would exceed the dollar threshold mentioned 
        above, a reprogramming shall be submitted;
          6. For any action which would result in a major 
        change to the program or item which is different than 
        that presented to and approved by either of the 
        Committees, or the Congress, a reprogramming shall be 
        submitted;
          7. For any action where funds earmarked by either of 
        the Committees for a specific activity are proposed to 
        be used for a different activity, a reprogramming shall 
        be submitted; and
          8. For any action where funds earmarked by either of 
        the Committees for a specific activity are in excess of 
        the project or activity requirement, and are proposed 
        to be used for a different activity, a reprogramming 
        shall be submitted.
    Additionally, each request shall include a declaration 
that, as of the date of the request, none of the funds included 
in the request have been obligated, and none will be obligated, 
until the Committees on Appropriations have approved the 
request.

                  UNAUTHORIZED APPROPRIATIONS REQUESTS

    The Committee directs that budget justification materials 
submitted in support of future appropriations requests contain 
tabular listings of any item that is not authorized by law, in 
the format contained elsewhere in this report under the heading 
``Appropriations Not Authorized by Law''.

                  TITLE I--DEPARTMENT OF THE TREASURY


                          Departmental Offices


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............      $162,381,000
Budget estimate, fiscal year 2002.....................       181,768,000
Recommended in the bill...............................       173,496,000
Bill compared with:
    Appropriation, fiscal year 2001...................       +11,115,000
    Budget Estimate, fiscal year 2002.................        -8,272,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $173,496,000 
for Departmental Offices, an increase of $11,115,000 above the 
fiscal year 2001 enacted level and a decrease of $8,272,000 
below the request level. Increases above the enacted level 
include $6,059,000 to maintain current levels, $2,612,000 to 
annualize the fiscal year 2001 initiative for establishing a 
new interagency National Terrorist Asset Tracking Center, 
$40,000 for law enforcement support of the 2002 Winter 
Olympics, and $3,356,000 to fund the highest priority 
additional requirements of the Departmental Offices. These 
increases are partially offset by a reduction of $952,000 
associated with one-time costs of certain local law enforcement 
support.
    The Administration proposed a total increase of $13,022,000 
for six items: a secure data network ($3,000,000), an 
occupational safety and health information system ($400,000), a 
record management system ($200,000), a labor shortfall 
($5,659,000), a digital telecommunications system ($2,000,000), 
and information technology contract support ($1,763,000). The 
Committee expects the $3,356,000 provided in support of these 
efforts to be used to meet the highest priority requirements of 
the Departmental Offices and directs that the Department supply 
a report 120 days after the enactment of this Act that outlines 
the uses of these funds. The Committee notes that $1,746,000 
has been provided as requested in the Department-wide Systems 
and Capital Investments Programs account for a computer backup/
disaster recovery project for Departmental Offices. The 
Committee looks forward to working with the Department to 
ensure that all of its highest priority needs are met, 
including those of its offices and bureaus, and strongly 
supports the current management review and analysis that is 
underway.

                         Office of Enforcement

    The Office of Enforcement (OE) occupies a key position with 
the Treasury Department, led by an Under Secretary with 
responsibility for issues covering the whole range of law 
enforcement bureaus and offices. The Committee has reviewed the 
General Accounting Office report on OE operations, which 
brought to light the problems faced by the OE, the bureaus, and 
Treasury law enforcement community in general when it comes to 
(1) coordinating policy and resource planning, (2) advocating 
for the Department and on behalf of its operational components 
for law enforcement priorities within and beyond Treasury, and 
(3) maintaining continuity in management for Treasury law 
enforcement. The Committee strongly supports the plan to 
develop an Enforcement policies and procedures manual that will 
make clear the ground rules for interaction within the 
Department between OE and various Departmental components and 
their liaisons, to the overall benefit of Treasury law 
enforcement. Other issues raised in the report, such as 
organizational or bureaucratic hindrances to good planning and 
coordination, may be addressed through management improvements 
or resources. The Committee requests the Department and OE keep 
the Committee informed of efforts to strengthen policy and 
program coordination and to improve the status and voice of 
Treasury law enforcement within the Federal law enforcement 
arena.

            INVENTORY OF INTERNATIONAL AGREEMENT PROVISIONS

    The Committee directs the Department of the Treasury to 
produce a report containing an inventory of all provisions of 
current agreements between the International Monetary Fund and 
debtor countries and between the World Bank and debtor 
countries that place specific restrictions on the debtor 
countries. The inventory is to include all agreements that 
contain provisions requiring debtor countries to (1) establish, 
revise or privatize state-owned enterprises, utilities 
(including water and sewer systems) or public services, (2) 
convert any private enterprises to state ownership, (3) lower 
or raise barriers to imports (food products in particular), (4) 
establish, revise or privatize public pension, retirement or 
benefit systems (including social security), (5) change bank 
interest rates, (6) establish, revise or eliminate regulations 
on the environment and natural resources, or (7) adopt or 
revise labor, wage or benefit laws (including legal minimum 
wages and the right to strike). The report shall be completed 
and delivered to the House Committee on Appropriations by 
November 15, 2001. The Committee notes with frustration and 
extreme disappointment that the Department has not complied 
with an earlier request for this material.

                      STATE AND LOCAL REVENUE LOSS

    Congress periodically must consider issues arising from or 
related to consumer transactions that are (or that are claimed 
to be) exempt from state or local taxes, including requests to 
compensate for tax losses with federal spending. Among these 
are transactions involving remote sellers (via the Internet, 
mail order, long-distance telephone, etc.) and transactions 
involving Indian tribes. The Treasury Department's Office on 
Tax Policy and the IRS's Tax Exempt and Government Entities 
Division are directed to submit to the Committee on 
Appropriations, the House Resources Committee and the House 
Judiciary Committee, a report, no later than 120 days after 
enactment of this Act, detailing the dollar volume of 
transactions that are exempt from state taxes (or that are 
claimed to be exempt) and their impact on state and local tax 
revenue, with state-by-state breakdowns where possible. It is 
not the intent of the Committee that this report include 
impacts of compacts regarding gambling, property tax, interests 
in natural resources or use of natural resources, but instead 
be limited to impact arising from consumer transactions.
    To the extent that any impact is affected by compacts 
between the tribes and state and/or local governments (or lack 
thereof) the report should detail these compacts (or lack 
thereof) and the parties to them, including the relevant 
conditions, the starting and expiration dates, and the impact 
of each compact (or lack thereof) on state and local tax 
revenues. The report should differentiate the impact by type of 
tax.

                          E-Learning Solutions

    The Committee understands that the Department is exploring 
the potential benefits that can be gained from the customized 
development and selective deployment of Internet-based 
training. The Committee believes that in many circumstances 
such e-learning solutions can lead to substantial savings and 
enhanced improvements in skills. The Committee encourages the 
Department to continue its evaluation and assessment of the 
best ways in which Internet-based training can fulfill many of 
the training needs of the Department.

             ``Dollarization'' in Central and South America

    The Committee is concerned that the growth in 
``dollarization'' throughout the world, especially in Central 
and South America, could also cause a negative consequence--
namely an increase in the overseas based production and 
distribution of counterfeit U.S. currency, causing more 
circulation of counterfeit both globally and domestically. 
Nations are increasingly adopting U.S. currency as the official 
means of exchange or tying the rate of exchange for their 
internal currencies to the U.S. dollar making U.S. currency 
more prevalent.
    A nation's decision to end the legal tender status of its 
national currency and to adopt the U.S. dollar provides 
potential benefits to both the nation that converts and to the 
United States. Dollarization in foreign countries can reduce 
transaction costs for U.S. importers, exporters, borrowers and 
lenders. Nearly a century ago, Panama became the first nation 
outside of the U.S. to officially choose the dollar as its form 
of currency. Now, Ecuador is among several nations worldwide 
that have switched to the dollar. Nations are dollarizing as a 
way to boost trade, increase foreign investment and control 
inflation.
    Despite its advantages, the Committee is concerned that 
dollarization will heighten the status of U.S. currency as a 
prime target for counterfeiters. Dollarization in countries 
that lack law enforcement expertise or meaningful criminal 
penalties will provide counterfeiters a fertile environment to 
use that economy as a place to launder counterfeit U.S. 
dollars. It is estimated that nearly two-thirds of the 
approximately $570 billion of genuine U.S. currency circulates 
beyond our nation's border and nearly one-third of today's 
counterfeit passed in this country originates in Colombia. 
Ecuadorian authorities are seeing significant increases in 
counterfeit since it dollarized in 2000. From 1999 to the end 
of 2000, counterfeit seizures in Ecuador rose from $239,000 to 
$1.4 million.
    To prevent the proliferation of counterfeiting as a result 
of increased dollarization, the Committee directs the Secretary 
of the Treasury to develop jointly a strategy with the 
Secretary of State to mitigate counterfeiting of U.S. dollars 
in dollarized regions and report its findings to the Committees 
on Appropriations no later than September 30, 2002.

                         REAL ESTATE BROKERAGE

    The Committee is aware that concerns have been expressed 
about the impact of the Federal Reserve/Department of Treasury 
proposed regulation to redefine real estate brokerage and 
management activities. The Committee expects Treasury to work 
with the Department of Housing and Urban Development when 
developing the final rule.

        Department-Wide Systems and Capital Investments Programs





Appropriation, fiscal year 2001 to date...............       $62,150,000
Budget estimate, fiscal year 2002.....................        70,828,000
Recommended in the bill...............................        68,828,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +6,678,000
    Budget Estimate, fiscal year 2002.................        -2,000,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $68,828,000 
for the Department-wide Systems and Capital Investments 
Programs, an increase of $6,678,000 above the fiscal year 2001 
enacted level and a decrease of $2,000,000 below the 
President's request. The changes to the President's request 
consist of a decrease of $3,000,000 for the critical 
infrastructure protection project and an increase of $1,000,000 
for technical investigations equipment as part of the Treasury 
(Wireless) Integrated Network.

                      Office of Inspector General


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............       $32,827,000
Budget estimate, fiscal year 2002.....................        35,150,000
Recommended in the bill...............................        35,318,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +2,491,000
    Budget Estimate, fiscal year 2002.................          +168,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $35,318,000 
for the Office of Inspector General, an increase of $2,491,000 
above the fiscal year 2001 enacted level and an increase of 
$168,000 above the President's request. The increase above the 
President's request is for non-pay inflation.

                Inspector General for Tax Administration


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............      $118,166,000
Budget estimate, fiscal year 2002.....................       122,342,000
Recommended in the bill...............................       123,133,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +4,967,000
    Budget Estimate, fiscal year 2002.................          +791,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $123,133,000 
for the Inspector General for Tax Administration, an increase 
of $4,967,000 above the fiscal year 2001 enacted level and an 
increase of $791,000 above the President's request. The 
increase above the President's request includes $457,000 for 
non-pay inflation and $334,000 for participation in law 
enforcement support of the 2002 Winter Olympics.

            Inspectors General Criminal Investigator Academy

    The mission of the Inspectors General (IG) is unique, in 
that it focuses on the practices of government agencies and 
representatives. This mission is vitally important, as it 
ensures that the public is served in the best possible manner 
by providing an independent review of agency policies and 
operations. This mission requires training which is specific to 
the Inspectors General. The Committee supports the concept of 
an Inspectors General Criminal Investigator Academy, as 
authorized by Public Law 106-422, and is also aware that a 
training academy exists at the Federal Law Enforcement Training 
Center (FLETC), in Glynco, Georgia. This academy consolidates 
training of the 57 independent Offices of Inspectors General, 
composed of approximately 3,000 investigators, and provides 
programs tailored to the Inspectors General mission. The 
Treasury IG for Tax Administration (TIGTA) is the accountable 
IG for the academy. Training regarding the investigation of 
contract and procurement fraud, health care fraud, entitlement 
and program fraud, and other topics specific to the Inspectors 
General Criminal Investigator is provided. Funding for this 
academy is currently supported by contributions from the 
budgets of the individual Inspector General offices.
    In order to properly evaluate the current and future 
funding levels appropriate for the current IG academy, as well 
as that authorized by Public Law 106-422, the Committee directs 
that TIGTA, in consultation and coordination with FLETC, 
present a report detailing the operations of the current 
academy at FLETC. This report should include a description of 
the current financial contribution made by each Office of 
Inspector General, as well as an evaluation of appropriate 
levels of training hours, a determination as to whether FLETC 
is the appropriate venue for all, or part, of the training 
requirement, and a detailed explanation of these 
determinations. The report should also include a comprehensive 
analysis regarding the establishment of a forensic laboratory, 
as authorized by P.L. 106-422. This should include a cost-
benefit analysis of establishing a separate laboratory as well 
as the numbers and types of cases that require specialized 
services.
    The Committee strongly supports the partnership formed with 
the Federal Law Enforcement Training Center to create 
specialized training for Inspectors General criminal 
investigators, and believes that this partnership ensures that 
the training provided adheres to the highest professional 
standards in a consistent manner.

           Treasury Building and Annex Repair and Restoration





Appropriation, fiscal year 2001 to date...............       $30,932,000
Budget estimate, fiscal year 2002.....................        32,932,000
Recommended in the bill...............................        30,932,000
Bill compared with:
    Appropriation, fiscal year 2001...................  ................
    Budget Estimate, fiscal year 2002.................        -2,000,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $30,932,000 
for Treasury Building and Annex Repair and Restoration, the 
same as the fiscal year 2001 enacted level and $2,000,000 below 
the President's request.

                  Financial Crimes Enforcement Network


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............       $37,493,333
Budget estimate, fiscal year 2002.....................        45,155,000
Recommended in the bill...............................        45,760,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +8,266,667
    Budget Estimate, fiscal year 2002.................          +605,000


                                MISSION

    The Financial Crimes Enforcement Network (FinCEN) is 
responsible for implementing Treasury's anti-money laundering 
regulations through administration of the Bank Secrecy Act, 31 
U.S.C. section 5311, et seq (BSA). It also serves as a United 
States Government source for the systematic collection and 
analysis of information to assist in the investigation of money 
laundering and other financial crimes. FinCEN assists all law 
enforcement entities, including Federal, State, local and 
international, through information collection, sophisticated 
data analysis, and intelligence sharing through dissemination 
of its analytical products, technological assistance, and 
implementation of Treasury authorities. It prevents money 
laundering through its regulatory and outreach programs, 
including setting policy for and overseeing BSA compliance by 
financial institutions, and by providing BSA training for law 
enforcement, bankers, and bank regulators. FinCEN supports U.S. 
Government initiatives on money laundering and financial crime 
through multilateral organizations, such as the Financial 
Action Task Force (FATF) of the Group of Eight, and the UN. It 
is a catalyst for the development of Financial Intelligence 
Units (FIUs) in other countries, and the transfer of 
information on money laundering and financial services 
worldwide.
    As part of its regulatory mission, FinCEN is beginning to 
provide regulatory and enforcement support to ensure compliance 
by money service businesses (MSBs) with the requirements of the 
BSA.

                             RECOMMENDATION

    The Committee recommends an appropriation of $45,760,000 
for the Financial Crimes Enforcement Network, an increase of 
$8,266,667 above the fiscal year 2001 enacted level and 
$605,000 above the President's request. The increase above the 
President's request is for non-pay inflation and for security 
planning and operations related to the 2002 Winter Olympics.

                   Money Service Business Initiative

    Efforts to combat money laundering have long focused on 
traditional financial institutions, which submit currency 
transaction reports for transactions exceeding $10,000, and are 
also required to submit Suspicious Activity Reports (SARs). In 
recent years, non-bank financial institutions have been 
recognized as posing a high money laundering risk, due to their 
large numbers and the opportunity they offer criminals to 
structure financial transactions. A major development in the 
effort to curtail money laundering, therefore, is the 
implementation of regulations pursuant to the Bank Secrecy Act 
and the Money Laundering Suppression Act of 1994 to register 
and educate money service businesses (MSBs) about their 
responsibilities to report on and prevent money laundering. 
MSBs are defined to include five types of financial services 
providers: currency dealers or exchangers; check cashers; 
issuers or sellers of traveler's checks, money orders, or 
stored value; money transmitters; and the U.S. Postal Service 
(except with respect to sale of postage or philatelic 
products). As of January 1, 2002, MSBs, subject to certain 
dollar thresholds, must also submit SARs. The Committee has 
provided, as requested by the President, an additional 
$5,520,000 to fully fund the costs of completing registration, 
outreach, and related administration costs to permit the 
implementation of this rule.
    Because of its interest in seeing how this regulation is 
carried out, the Committee directs FinCEN to report by May 1, 
2002, on the status of its MSB program, to include costs, 
statistics on SAR reporting, and a description of the outreach 
and communication system in place for dealing with this newly 
regulated financial sector.

                Cost-Benefit Analysis of SAR Regulations

    The Committee is aware of interest within Treasury in 
reevaluating the costs and benefits of Suspicious Activity 
Reports, including the private sector compliance cost to detect 
the relatively small number of transactions that are 
suspicious, and to deter improper transactions. The Committee 
is aware of the SAR Activity Review published by FinCEN, and is 
familiar with the statistics on the numbers of SARs filed, the 
numbers of SARs that are referred for action directly to law 
enforcement or regulatory institutions, and reporting on major 
trends in money laundering, and knows that there is ample 
information about program outputs.
    To more fully understand the costs and benefits associated 
with SARs, the Committee directs the Secretary of the Treasury 
to submit by February 1, 2002, a cost-benefit analysis. This 
report should include reference to the overall number of 
financial transactions potentially subject to SAR reports, to 
establish the proportion that result in SARs; the total dollar 
value of such transactions and the dollar value of transactions 
that are the subject of SARs; the private sector costs 
associated with SAR reporting, per transaction and per SAR; and 
the costs to the Treasury Department and the Federal government 
on a per transaction and per SAR basis. As appropriate, the 
report should include an analysis of inflation's impact on 
costs and benefits, including to law enforcement.

                  High Intensity Financial Crime Areas

    Under the National Money Laundering Strategy, High 
Intensity Financial Crime Areas (HIFCAs) were established in 
four areas (New York-New Jersey, Puerto Rico, Los Angeles, and 
the Southwest Border). These overlay and reinforce existing 
government working groups, and geographically represent high 
concentrations of money laundering activity. The Committee 
supports close coordination in this multi-agency effort, and 
directs the Secretary of Treasury to include a report on the 
progress of the HIFCA initiative with its submission of the 
fiscal year 2003 budget. This report should describe the 
budgets for the HIFCAs, statistical information about the level 
of money laundering in the regions covered by the HIFCAs, and 
performance data.

                  Magnitude of Money Laundering Study

    The Committee is aware that the ongoing study of the 
magnitude of money laundering being undertaken by FinCEN faces 
some complex obstacles in terms of quantifying the proceeds of 
criminal activity. Some of these include not only difficulties 
in data quality and methodology, but unequal willingness by 
government agencies to share information. The lack of a uniform 
database on money laundering, and absence of international 
cooperation also present difficulties. Because the Committee 
firmly supports establishing a baseline for money laundering 
strategy and anti-money laundering performance, it directs the 
Secretary of the Treasury to report within 90 days of enactment 
of this Act on the progress of the study, to include 
recommendations for funding or legislation if necessary.

                         Counterterrorism Fund





Appropriation, fiscal year 2001 to date...............       $54,879,000
Budget estimate, fiscal year 2002.....................        44,879,000
Recommended in the bill...............................        36,879,000
Bill compared with:
    Appropriation, fiscal year 2001...................       -18,000,000
    Budget Estimate, fiscal year 2002.................        -8,000,000


                                MISSION

    This appropriation would provide funding for unanticipated 
costs associated with support to counter, investigate, or 
prosecute domestic or international terrorism, including 
payment of rewards, and to re-establish the operational 
capability of an office, facility, or other property damaged or 
destroyed as a consequence of any unexpected domestic or 
international terrorist act. These funds would only be 
available to the extent that prior notification is sent to the 
Committees on Appropriations in accordance with guidelines on 
reprogramming and transfer of funds.

                             RECOMMENDATION

    The Committee recommends an appropriation of $36,879,000 
for the Treasury Counterterrorism Fund, a decrease of 
$18,000,000 below the fiscal year 2001 enacted level and 
$8,000,000 below the President's request. The Committee has 
included language clarifying that the fund is to be used for 
unexpected threats or acts of terrorism, and that funding shall 
be available after prior notification is made to the Committees 
on Appropriations in accordance with reprogramming and transfer 
guidelines.

                Federal Law Enforcement Training Center


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............       $99,264,137
Budget estimate, fiscal year 2002.....................       100,707,000
Recommended in the bill...............................       101,769,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +2,504,863
    Budget Estimate, fiscal year 2002.................        +1,062,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $101,769,000 
for the Federal Law Enforcement Training Center, an increase of 
$2,504,863 above the fiscal year 2001 enacted level and 
$1,062,000 above the President's request. The increase above 
the President's request is for non-pay inflation.

               Transition of Border Patrol Basic Training

    The current Master Plan for the Federal Law Enforcement 
Training Center (FLETC) is predicated on providing basic 
training for new entrants to the U.S. Border Patrol at the 
Glynco, Georgia or Artesia, New Mexico, FLETC campuses. This 
will require adequate capacity to handle the increased numbers 
of new entrants, particularly with the planned closure of the 
temporary U.S. Border Patrol training facility at the former 
Charleston, South Carolina, Navy Yard. This move will conform 
to longstanding Congressional support for consolidated law 
enforcement training. The Committee wants to be fully apprised 
of decisions as they are made, as well as funding necessary to 
complete this transition successfully. The Committee therefore 
directs FLETC to report by September 1, 2001, on the 
preparations for this transition, including a description of 
remaining decisions, actions, and funding required, as well as 
associated timelines.

      Capital Metropolitan Area Law Enforcement Training Facility

    In fiscal year 2001, the Committee provided $30,000,000 for 
the establishment of a new training facility to meet the 
substantial need for Washington, D.C., area firearms and driver 
requalification and other necessary training that can be met 
more effectively and practically in the Capital region, rather 
than require travel to other facilities such as FLETC campuses 
at Glynco or Artesia, or simply failing to provide critical 
perishable skills maintenance. This facility, which will be 
located at the site of the former Cheltenham Naval 
Communications Detachment in Prince Georges County, Maryland, 
will serve this purpose for both federal agencies located in 
the Capital area, including the U.S. Capitol Police, as well as 
for local law enforcement agencies on a space-available basis. 
The Committee wishes to be kept fully informed of progress in 
developing the new training facility.
    Although the initial concept was that the new center be 
open to all interested Federal agencies in the Capital area, as 
well as meet local law enforcement agency training needs, not 
every agency has demonstrated such interest. At the same time, 
the Committee is aware of efforts to establish other training 
facilities for specialized purposes. Consistent with the 
longstanding goal of this Committee to consolidate law 
enforcement training wherever practicable, the Committee 
directs that any plans for new training facilities or 
significant new programs should address why they cannot be 
accommodated through the use of existing FLETC facilities, 
distance learning or off-site training programs. The Committee 
also directs that requests to fund such initiatives other than 
through FLETC should be accompanied by an assessment from FLETC 
explaining the necessity for such action.

                     Rural Law Enforcement Training

    FLETC has for several years run a counterdrug training 
program for rural law enforcement agencies. The Committee 
strongly supports this effort, and encourages FLETC to continue 
its efforts to make such training available as widely as 
possible, to include using such tools as teleconferencing, 
online training, or ``train the trainer'' approaches to 
expanding the access to FLETC resources for rural State and 
local law enforcement agencies.

      Acquisition, Construction, Improvements and Related Expenses





Appropriation, fiscal year 2001 to date...............       $54,086,000
Budget estimate, fiscal year 2002.....................        21,895,000
Recommended in the bill...............................        22,834,000
Bill compared with:
    Appropriation, fiscal year 2001...................       -31,252,000
    Budget Estimate, fiscal year 2002.................          +939,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $22,834,000 
for FLETC Acquisition, Construction, Improvements, and Related 
Expenses, a decrease of $31,252,000 below the fiscal year 2001 
appropriation and $939,000 above the President's request. The 
increase above the President's request is for non-pay 
inflation.

                      Interagency Law Enforcement


                 INTERAGENCY CRIME AND DRUG ENFORCEMENT




Appropriation, fiscal year 2001 to date...............      $103,248,000
Budget estimate, fiscal year 2002.....................       106,487,000
Recommended in the bill...............................       106,965,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +3,717,000
    Budget Estimate, fiscal year 2002.................          +478,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $106,965,000 
for Interagency Crime and Drug Enforcement, an increase of 
$3,717,000 above the fiscal year 2001 enacted level and 
$478,000 above the President's request for the estimated costs 
of non-pay inflation.

                      Financial Management Service


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............      $206,396,000
Budget estimate, fiscal year 2002.....................       211,594,000
Recommended in the bill...............................       212,316,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +5,920,000
    Budget Estimate, fiscal year 2002.................          +722,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $212,316,000 
for the Financial Management Service, an increase of $5,920,000 
above the fiscal year 2001 enacted level and an increase of 
$722,000 above the President's request. The increase above the 
President's request is for non-pay inflation.

                Bureau of Alcohol, Tobacco and Firearms


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............      $771,142,745
Budget estimate, fiscal year 2002.....................       803,521,000
Recommended in the bill...............................       824,199,000
Bill compared with:
    Appropriation, fiscal year 2001...................       +53,056,255
    Budget Estimate, fiscal year 2002.................       +20,678,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $824,199,000 
for the Bureau of Alcohol, Tobacco and Firearms, an increase of 
$53,056,255 above the fiscal year 2001 enacted level and an 
increase of $20,678,000 above the President's request. The 
increase above the President's request includes $9,655,000 for 
non-pay inflation, $10,523,000 for costs of security planning 
and operations associated with the 2002 Winter Olympics, and 
$500,000 to fund additional support for management improvements 
for the National Firearms Act (NFA) and Imports Branches, and 
the National Licensing Center.

                          INSPECTOR SHORTFALL

    ATF has testified that it faces a significant shortage of 
inspectors required to meet its statutory mandates. Such a 
shortfall translates into reduced frequency in inspections by 
field inspectors in such critical areas as explosives and 
firearms licensees, as well as reducing ATF's ability to carry 
out its mission to collect revenue and protect the public. The 
Committee continues to be concerned by this discrepancy, and 
strongly urges ATF to develop a plan to improve its inspection 
effort and resources, and to incorporate this plan in its 
budget request for fiscal year 2003.

                 TARGETED ENFORCEMENT OF VIOLENT CRIME

    The Committee strongly supports the goals of the Integrated 
Violence Reduction Strategy (IVRS) (initiated in FY 2000), the 
Youth Crime Gun Interdiction Initiative (YCGII) (initiated in 
FY 1996), and the National Integrated Ballistic Information 
Network (NIBIN) (initiated in 1999). Accordingly, the Committee 
has significantly increased funding for each of these programs 
since their inception, and fully funds the President's request 
for each of these programs in FY 2002. This includes 
$73,500,000 for IVRS, $85,000,000 for YCGII, and $25,200,000 
for NIBIN. The Committee believes that this level of funding 
for these programs is consistent with the priority of stopping 
gun violence. However, the Committee believes that the rapid 
growth of these programs warrants close oversight to ensure 
that funding is directed most effectively to those programs 
that result in a reduction in violent crime. In October, 2000, 
the Committee heard from ATF and the Treasury Inspector General 
about management weaknesses in the YCGII program, as well as 
about assessments of program effectiveness. To this end, the 
Committee will look carefully to ATF to see that it carries out 
its agreed management improvements for the YCGII program, and 
continues to develop and utilize reliable measures of 
effectiveness for these programs. The Committee therefore 
directs ATF to report on a quarterly basis as to program 
effectiveness, including statistical data and other information 
about program performance.

                        NORTH CAROLINA GUN CRIME

    The Committee is concerned about youth gun violence in the 
Raleigh, Durham, and Chapel Hill areas of North Carolina. The 
Committee requests that ATF evaluate the feasibility of 
expanding the Youth Crime Gun Interdiction Initiative into 
these areas and report its findings to the Committee within 90 
days of enactment of this Act.

                     NEW JERSEY YOUTH GUN VIOLENCE

    The Committee requests that the ATF evaluate its current 
Youth Crime Gun Interdiction Initiative efforts in New Jersey 
to combat youth gun violence and examine the feasibility of 
expanding those efforts and report those findings to the 
Committee within 90 days of enactment of this Act.

                             GREAT PROGRAM

    The Committee anticipates that ATF will soon release a 
longitudinal study of the Gang Resistance Education And 
Training (GREAT) program, which should help add to the basis 
for evaluating the impact this program has had on reducing gang 
violence. ATF has testified that its assessments show that 
program participants demonstrate more positive social attitudes 
and more antipathy toward gangs than non-participants. However, 
the Committee would also encourage ATF to look at the 
statistics for gang violence and membership in areas where the 
GREAT program has been operating as well to see if a 
correlation can be drawn between this program and the impact on 
creating a safer environment for young people.

      IMPROVEMENTS IN FIREARMS LICENSING AND REGULATORY OPERATIONS

    ATF received $2,000,000 in fiscal year 2001 for management 
and technical improvements at the National Firearms and Import 
Branches, as well as the National Licensing Center. This is 
being used to upgrade the level of service provided to both 
commercial and personal customers. ATF has applied this funding 
to three principal initiatives aimed at rationalizing separate 
systems, including consolidation and standardization, and is 
pursuing several management initiatives to streamline processes 
and improve information access and usefulness for both ATF and 
the public. ATF is also engaged in a project to image and index 
records of the National Firearms Registration and Transfer 
Record (NFRTR), and then to link such records to its retrieval 
system in order to meet recommendations by the Treasury 
Inspector General to ensure accuracy in the NFRTR database. The 
Committee includes an additional $500,000 to assist in such 
efforts as linkage technology, electronic filing, and the use 
of contract employees with the aim of reducing processing times 
and ensuring the completeness and accuracy of the NFRTR.

     ATF Report on Status of Notice of Proposed Rulemaking No. 872

    The Committee is aware that the ATF issued a Notice of 
Proposed Rulemaking (No. 872 dated February 9, 1999, as amended 
by No. 873 dated April 12, 1999) to prohibit certain alcohol 
beverage containers that are likely to mislead consumers as to 
the identity or character of the distilled spirits, wine, or 
malt beverage products within the containers, or which are 
likely to be confused with other (non-alcohol) food products. 
The proposed rules also amend regulations to clarify the 
standards of fill for distilled spirits and wine.
    The Committee directs the ATF to report to the Committee by 
October 1, 2001 concerning the status of these proposed rules. 
The report shall include the ATF's analysis of how, if at all, 
the adoption of these rules will affect the marketing and 
distribution of so-called ``Alcopops'' products, the sweeter 
and fruit-flavored, 5%+ alcoholic beverages bearing names which 
equate them to or are confusingly similar to lemonade, tea, or 
other drinks that typically contain no alcohol. The ATF also 
shall include an analysis of whether it needs any additional 
regulatory or legal authority to address this issue 
effectively.

                     United States Customs Service


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............    $1,878,557,062
Budget estimate, fiscal year 2002.....................     1,961,764,000
Recommended in the bill...............................     2,059,170,000
Bill compared with:
    Appropriation, fiscal year 2001...................      +180,612,938
    Budget Estimate, fiscal year 2002.................       +97,406,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $2,059,170,000 
for the U.S. Customs Service, an increase of $180,612,938 above 
the fiscal year 2001 enacted level and an increase of 
$97,406,000 above the President's request. The increase above 
the President's request includes $33,476,000 for non-pay 
inflation, $13,813,000 for costs of security planning and 
operations associated with the 2002 Winter Olympics, 
$30,000,000 for additional investments in nonintrusive 
inspection technology, $15,000,000 for additional positions to 
offset reductions in COBRA funding, $3,000,000 to field test 
Pulsed Fast Neutron Analysis (PFNA) inspection technology, 
$800,000 to fund tobacco smuggling task forces, and $1,317,000 
to implement the African Growth and Opportunity Act.

                   INSPECTION TECHNOLOGY INVESTMENTS

    In fiscal year 1999 the Customs Service received 
$134,000,000 to begin a significant investment in non-intrusive 
inspection (NII) technology. Acquisition and deployment of this 
technology has continued since that time, with significant 
improvements in the use of such technology at high risk ports 
of entry. In addition to such systems as mobile x-ray, gamma 
ray technology and the Automated Targeting System (ATS), Mobile 
Sea Container Systems are being deployed at vulnerable seaports 
to begin to improve the level of scrutiny given the rapidly 
increasing volume of cargo there. Such technology investments 
are essential, given the rapid increase in volume of trade and 
passenger traffic that Customs must clear with no significant 
increase in personnel.
    However, $80,000,000 is required to complete deployment of 
NII systems called for in the Customs five year NII Technology 
Plan for the southern United States, and there is a need to 
address similar concerns along the Northern Border, where 
Customs is planning to deploy two NII systems funded through 
the fiscal year 2001 appropriation provided to enhance Northern 
Border security after recent terrorist threats.
    The Committee therefore provides an additional $30,000,000, 
to remain available until expended, to address this high 
priority. Such technology may be used, in conjunction with 
existing NII technology, to increase the range and intensity of 
coverage, to test promising new technologies such as computed 
tomography, to be applied to outbound detection (such as for 
currency or stolen vehicles), to increase security against 
smuggling, drugs, and terrorist threats, and generally to 
assist in enforcing compliance with Customs laws.

                Pulsed Fast Neutron Analysis Field Test

    In addition to the $30,000,000 described above, the 
Committee has included in its recommendation an additional 
$3,000,000 to fund the operational field testing of a Pulsed 
Fast Neutron Analysis (PFNA) NII system in El Paso, Texas. The 
technology, which has been developed through years of support 
from various government agencies, is designed to provide non-
invasive, non-harmful detection of illegal substances including 
narcotics, explosives, currency and chemical weapons, 
regardless of the shape or density of the subject material. The 
Committee directs Customs to report within 90 days after 
enactment of this Act on the progress in deploying this system, 
and again one year after enactment of this Act on the results 
of its test. The Committee encourages the Customs Service to 
invite other border inspection agencies to participate in this 
test.

                 Customs Inspection Staffing Shortfalls

    The cost of providing Customs inspection services is 
exceeding the revenues generated by Consolidated Omnibus 
Reconciliation Act (COBRA) fees. As a result, in fiscal year 
2001 Customs is experiencing a real reduction of over 300 full-
year positions, resulting in reduced staffing and deferral or 
cancellation of plans to upgrade equipment and staff Customs 
terminals. At the same time, the Resource Allocation Model 
(RAM) developed by Customs indicates a workload exists to 
justify staffing levels that are at least 50% higher than at 
present.
    The Committee recognizes that a decision to reauthorize 
COBRA fees may provide additional resources, as authority to 
collect them otherwise expires in 2003. However, the trend 
appears to be downward, particularly in light of possible moves 
toward more trade agreements that could create pressure to 
reduce or eliminate such fees. Given the certainty that Customs 
will continue to face sharply increasing passenger and cargo 
workloads, any real reduction in staffing levels is 
unacceptable. The Committee therefore has included $15,000,000 
to permit additional staffing, with the expectation that such 
positions will be allocated according to the highest priorities 
indicated by the RAM and other management tools.
    The Committee directs the Secretary of the Treasury to 
report by February 1, 2002, on how Customs will allocate this 
funding, indicating the types, numbers and locations of 
positions filled. The report should also address what steps the 
Department and Customs are taking to compensate for decreases 
in COBRA resources and meet growing demands on Customs 
inspection and related services.

   Customs Inspection Services For International Cargo and Passenger 
                                Traffic

    The Committee is aware of many ports of entry and border 
areas that are experiencing significant growth in commercial 
and passenger traffic, or that face more severe drug 
trafficking and other forms of smuggling. The Committee remains 
concerned about airports and seaports experiencing increases in 
traffic and about those that project such increases as a result 
of regional development patterns. The Committee acknowledges 
that decisions by the Customs Service to allocate inspectors, 
criminal investigators, trade specialists and other positions 
must be based on staff availability, funding constraints, 
traffic and workload experience and projections, as well as the 
need to prioritize targets in enforcing trade laws or 
countering smuggling. At the same time, the Committee 
recognizes that some ports, such as international airports like 
Miami (which is developing new terminals), Louisville (a major 
cargo shipment hub), or Dulles International Airports, are 
facing the prospect of growth that depends heavily on the 
availability of critical Customs services. The Committee 
expects the $15,000,000 provided to offset reductions in COBRA-
funded positions to be used to target areas facing such acute 
pressure. The Committee directs the Customs Service, with the 
help of its RAM and other decision tools, to identify and 
request resources needed to meet these requirements, and in so 
doing to work closely with airport and other port authorities 
and the trade community.

                            Northern Border

    With the expansion of trade entries by 132 percent since 
enactment of the U.S.-Canada Free Trade Agreement and NAFTA, 
the increase of air and sea passengers by 62 percent, from 52 
million to 84 million per year, and dramatic increases in land 
border traffic, there has been only a token increase in the 
number of inspectors and other needed personnel, and U.S.-
Canadian ports are experiencing significant delays in cross-
border traffic. The Committee therefore directs Customs to pay 
especial attention to the needs of these port areas as it makes 
its allocation decisions, both in terms of personnel, as guided 
by the RAM, and in infrastructure. In 2001 Congress provided 
additional funding for Northern Border security infrastructure 
and criminal investigator positions to meet the increased 
terrorist threat. The Committee expects that decisions on 
allocation of the additional $15,000,000 for personnel will 
thoroughly assess the needs of Northern Border ports for 
additional staff, particularly inspectors, canine enforcement 
officers, and import specialists.

              Southwest Border Ports of Entry Organization

    The Committee is interested in the continuing growth in 
border crossings along the Southwest Border ports of entry. The 
Committee is following with interest the infrastructure 
improvements for Southwest (and Northern) Border ports 
identified in the U.S. Port of Entry Infrastructure Study last 
year, and looks forward to the recommendations of the Border 
Station Partnership Council. Given this potential 
infrastructure change, along with highway improvements on both 
sides of the border, airport improvement and increased NAFTA 
activity, the Committee requests that Customs submit a report 
on how it plans to address this growth, including any plans to 
change existing port or border organizational structures.

                       Resource Allocation Model

    The Committee recognizes the limitations in using the 
Resource Allocation Model (RAM) to make staffing and investment 
decisions, and that it cannot be employed as the exclusive 
basis for such decisions. However, it provides a reasonable 
estimate of country-wide workload requirements, and Customs 
should be able to use the RAM in conjunction with other 
management tools to make objective and timely decisions about 
how to prioritize its resources. The Committee is struck by the 
significant discrepancy between overall resource requirements 
estimated using the RAM, and actual resources available or 
planned for the Customs Service, and believes this incongruity 
needs to be addressed by the Administration. The Committee 
therefore directs the Secretary of the Treasury to report by 
November 1, 2001, on its plan to fulfill these requirements, 
including a description of staffing requirements indicated by 
the RAM for each Customs location, and what decision processes, 
including the RAM, are in use to decide where and how to deploy 
staff and resources.

                       Personal Search Practices

    Customs is commended for taking meaningful and effective 
steps to reform and clarify its personal search practices. As a 
result, it is the first major law enforcement agency to 
demonstrate a significant reduction in the numbers of 
minorities searched for contraband, with the number of personal 
searches at international airports falling by nearly 80 percent 
between 1998 and 2000, while experiencing a 38 percent increase 
in drug seizures since 1999. The Committee congratulates 
Customs on its success, and because maintaining strong 
oversight of this is important, the Committee directs Customs 
to submit by November 1, 2001, an updated report giving 
statistical information concerning the frequency of complaints 
about personal search abuses, including claims of racial 
profiling; Customs' assessment of such claims; and any new 
policies or procedures that have been or are being implemented 
by Customs.

                            Seaport Security

    In 2000 the Interagency Commission on Crime and Security in 
U.S. Seaports (ICCSS) reported on significant levels of drug 
trafficking and other smuggling occurring at the 368 public 
seaports in this country, and described the high vulnerability 
of those seaports to terrorist and criminal exploitation. The 
ICCSS called for substantial increases in resources, changes in 
regulations and procedures, and improved interagency and 
intergovernmental coordination to improve the level of security 
at our nation's seaports.
    Customs has reported on several efforts underway to address 
these concerns. The General Service Administration's Maritime 
Federal Facilities council is seeking single site federal 
services within seaports. In a move to make export information 
more timely, the Customs Service, Commerce Department and 
National Institute for Standards and Technology have defined 
export filing requirements and will submit a report to Congress 
requiring all export filings to be reported in the Automated 
Export System (AES), rather than provided after vessels leave 
U.S. ports. The Research and Technology Committee of the 
Interagency Committee on the Marine Transportation System 
(ICMTS) will hold a conference in November, 2001 and follow 
this up with interagency recommendations for examination and 
investigative technology at seaports. To assess resource 
requirements, a Subcommittee on Security was established under 
the ICMTS, co-chaired by Customs and the Coast Guard, and is 
pursuing a comprehensive interagency study to analyze the 
impact of current projections related to seaport crime, trade 
volumes, technology, and other key factors on future personnel 
requirements for federal agencies having seaport border control 
responsibilities.
    The Committee strongly urges the Administration to sustain 
momentum in addressing the ICCSS' recommendations, and 
therefore directs the Secretary of the Treasury to report 
within 90 days of enactment of this Act on these and other 
specific actions that have been taken by the Department, 
Customs Service and other federal agencies to complete action 
on the initiatives underway, including efforts of the Criminal 
Justice Information Services Advisory Policy Board to develop a 
National Incident Based Report System and thereby improve 
collection and reporting of crime data by seaports. The report 
should detail actions underway and provide a time line for 
completion of reports, draft legislation, and other action 
items.

                   AFRICAN GROWTH AND OPPORTUNITY ACT

    The Committee provides $1,317,000 to the Customs Service to 
provide assistance to help AGOA beneficiary countries come into 
compliance with the customs requirements in the Trade and 
Development Act of 2000, so that more countries are designated 
as eligible to ship goods under the program.

                         ILLEGAL TRANSSHIPMENTS

    The Committee is concerned about reports of goods, 
including textiles and shoes, being transshipped from China 
through the United States into Mexico with false certificates 
of origin. Such transshipment clearly would violate NAFTA. The 
Committee encourages Customs to accelerate its efforts to stop 
illegal transshipments that follow this or other patterns.

                   Harbor Maintenance Fee Collection





Appropriation, fiscal year 2001 to date...............        $2,993,000
Budget estimate, fiscal year 2002.....................         2,993,000
Recommended in the bill...............................         2,993,000
Bill compared with:
    Appropriation, fiscal year 2001...................  ................
    Budget Estimate, fiscal year 2002.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $2,993,000, 
the same as the fiscal year 2001 appropriation and the amount 
requested by the President.

  Operation, Maintenance and Procurement, Air and Marine Interdiction 
                                Programs




Appropriation, fiscal year 2001 to date...............      $139,919,498
Budget estimate, fiscal year 2002.....................       162,637,000
Recommended in the bill...............................       183,853,000
Bill compared with:
    Appropriation, fiscal year 2001...................       +43,933,502
    Budget Estimate, fiscal year 2002.................       +21,216,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $183,853,000 
for Operations, Maintenance and Procurement, Air and Marine 
Interdiction Programs, an increase of $43,933,502 above the 
fiscal year 2001 enacted level and an increase of $21,216,000 
above the President's request. The increase above the 
President's request includes $2,285,000 for non-pay inflation, 
$4,931,000 for costs of security planning and operations 
associated with national special security events, $4,000,000 
for electro-optical and infrared imaging systems for aircraft 
and marine vessels, and $10,000,000 for additional investments 
in the air program.

       MODERNIZATION OF THE AIR AND MARINE INTERDICTION DIVISION

    The Committee fully funds the President's request for new 
investments for the Air and Marine Interdiction Division (AMID) 
program. However, this only scratches at the surface of the 
needs projected for modernization as outlined in the 
Modernization Plan for the AMID, which totals over $1.5 billion 
for air, marine, communications and training/standardization 
requirements. Requirements of this magnitude are clearly beyond 
the means of the Committee at this time. However, given the age 
of the Customs AMID air and marine vessels, its inadequate 
basing and storage capabilities, and the difficulties it faces 
in maintaining a high rate of operational readiness, it is 
critical that modernization must be approached strategically, 
with a clear, achievable plan.
    This will require strong direction from the Administration, 
through the Treasury Department and Customs, and in 
coordination with other federal agencies with responsibilities 
for air and international and arrival zone counterdrug 
missions. Such efforts should also address the strategic and 
tactical priorities for Customs mission and functions, and 
either follow the timelines and priorities of the existing plan 
or institute a new one. Future funding will need to be 
substantially increased if credible modernization is to take 
place, which will involve large scale system replacement, 
upgrades, and facilities and communications costs. The 
Committee strongly urges that the Administration assign this 
effort high priority as it plans for its fiscal year 2003 
budget.
    As a way to begin support for this effort, the Committee 
provides an additional $10,000,000 that it directs should go 
towards air program modernization. The Committee also directs 
the Customs Service to apply this funding to key program 
priorities contained in the AMID Modernization Plan, such as 
the need for hangars at the Standardization and Training Branch 
and for needed aircraft replacements or upgrades.
    The Committee would also urge the Administration to avoid 
the complete breakdown of the tethered aerostat radar system 
(TARS), which is being allowed to shut down in the absence of 
strong, committed program management and funding support. If 
the Customs Service is assigned the TARS mission, it will be 
essential that an adequate budget for that activity be included 
as well.

                         MOBILE SUPPORT VESSELS

    As part of modernizing its marine interdiction effort, the 
Customs Service needs to consider a wide range of options for 
basing and deploying its interceptor vessels in the most 
effective and economical way. The Committee requests that 
Customs consider the option of using mobile support vessels to 
support offshore drug interdiction efforts for long term, on-
station mission support, supplies, maintenance and personnel 
needs.

                        Automation Modernization






Appropriation, fiscal year 2001 to date...............      $257,831,532
Budget estimate, fiscal year 2002.....................       257,832,000
Recommended in the bill...............................       427,832,000
Bill compared with:
    Appropriation, fiscal year 2001...................      +170,000,468
    Budget Estimate, fiscal year 2002.................      +170,000,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $427,832,000 
for Automation Modernization, an increase of $170,000,468 above 
the fiscal year 2001 enacted level and an increase of 
$170,000,000 above the President's request. The increase above 
the President's request is for development and deployment of 
the Automated Commercial Environment (ACE).

                 AUTOMATED COMMERCIAL ENVIRONMENT (ACE)

    The selection of a prime contractor to work with the 
Customs Service to develop a successor system to the aging, 
legacy Automated Commercial System (ACS) has put the Customs 
effort to modernize and improve its automated systems on a new 
footing. The Committee strongly supports this effort, and 
believes it merits some of the highest priority in funding for 
this bill. However, the Administration's request for 
$130,000,000 would have the effect of delaying the 
implementation of this project by at least a year, increasing 
the risk of project failure (worsened by uncertainty over 
future funding), and increasing the pressure on ACS. In order 
to help ensure that the development phase of this project 
remains on track for completion within five years, the 
Committee includes an additional $170,000,000 to bring the full 
fiscal year 2002 level of funding for ACE to $300,000,000. This 
is $88,000,000 below what it would take to fully fund phases I 
and II of this project, but should provide ample resources to 
begin making a significant impact on Customs processes at 
critical, high volume ports of entry.
    The Committee has continued language requiring that the 
release of this funding will depend on first receiving and 
reviewing specific Customs' expenditure plans, including cost-
benefit analysis, for each requested funding release. Such 
Committee review will last a minimum of 30 days, with the 
assistance of the General Accounting Office. The Committee 
strongly supports the recommendations made by GAO to 
consolidate responsibility and accountability for ITDS under 
the overall modernization management framework, rather than to 
permit development of a separate, stovepiped system, and 
clarify roles of agents used by Customs and its prime 
contractor to avoid conflicts of interest. The Committee 
therefore directs Customs to specifically include any plans for 
further ITDS pilot funding, including cost, benefits, and risk 
justification, in the next ACE expenditure plan, expected to be 
submitted in October 2001, and at the same time report to the 
Committee on what steps it has taken to ensure the independence 
of its independent verification and validation agent.

                    Bureau of Engraving and Printing


----------------------------------------------------------------------------------------------------------------
                                                                                       2001            2002
                                                                  2000  (actual)    (estimate)      (estimate)
----------------------------------------------------------------------------------------------------------------
Total revenue...................................................    $476,000,000    $417,000,000    $450,000,000
    Revenue from currency.......................................     409,000,000     355,000,000     396,000,000
    Revenue from stamps.........................................      55,000,000      53,000,000      45,000,000
    Other revenue...............................................      12,000,000       9,000,000       9,000,000
Cost of operations..............................................     461,000,000     425,000,000     450,000,000
Net revenue (to Treasury).......................................      15,000,000      -8,000,000               0
----------------------------------------------------------------------------------------------------------------

                                MISSION

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

                           United States Mint


----------------------------------------------------------------------------------------------------------------
                                         Circulating coins         Numismatic coins            Protection
----------------------------------------------------------------------------------------------------------------
2000 (actual):
    Number of coins.................  21.0 billion...........  6.2 billion............
    Cost of operations..............  $423 million...........  $669 million...........  $28 million
    Revenue.........................  $1,679 million.........  $2,023 million.........
    Net revenue (to Treasury).......  $1,256 million.........  $1,355 million.........  ($28 million)
2001 (estimate):
    Number of coins.................  18.9 billion...........  6.0 billion............
    Cost of operations..............  $311 million...........  $768 million...........  $35 million
    Revenue.........................  $816 million...........  $1,956 million.........
    Net revenue (to Treasury).......  $504 million...........  $1,188 million.........  ($35 million)
2002 (estimate):
    Number of coins.................  18.2 billion...........  5.8 billion............
    Cost of operations..............  $287 million...........  $806 million...........  $36 million
    Revenue.........................  $689 million...........  $1,939 million.........
    Net revenue (to Treasury).......  $402 million...........  $1,133 million.........  ($36 million)
----------------------------------------------------------------------------------------------------------------

                                MISSION

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

                             RECOMMENDATION

    The Committee recommends a spending level for capital 
investments by the U.S. Mint for circulating coinage and 
protective services of $43,000,000, the same as the fiscal year 
2002 spending level currently planned by the U.S. Mint and a 
decrease of $5,000,000 below the level included in the 
President's request. The Committee is extremely disappointed 
with the level of information provided in the budget 
justification for this item and directs that more detailed 
information, including descriptions of specific capital 
investment items, be provided in future annual budget 
justifications to Congress. The Committee also includes a 
requirement that the United States Mint Public Enterprise Fund 
pay for a study by the General Accounting Office on circulating 
coinage. The payment is to be made 60 days after the enactment 
of this Act. The GAO report is to be delivered to the House 
Committee on Appropriations and House Committee on Financial 
Service 270 days after the enactment of this Act.
    The Committee recommends a new general provision (Section 
121) to require specific Congressional authorization for the 
construction and operation of a museum in the Mint's National 
Headquarters in Washington, D.C. Last year, the Committee 
directed the Mint to provide a report assessing the nature and 
the extent to which the new dollar coin is being used in 
commerce; the resultant report did not address this issue. The 
Committee directs the Mint to provide a new report by March 31, 
2002, on this important topic and expects the Mint to more 
adequately address this issue. The Committee also has serious 
reservations regarding the procurement and leasing activities 
of the Mint and is concerned that the Mint may be 
misinterpreting or abusing the flexibility provided by Congress 
in establishing the public enterprise fund. The Committee urges 
the Department to take a more active role in guiding and 
managing the Mint, particularly in such areas as its needs for 
foreign travel and justification of foreign travel.

                       Bureau of the Public Debt


                     ADMINISTERING THE PUBLIC DEBT




Appropriation, fiscal year 2001 to date...............      $182,699,000
Budget estimate, fiscal year 2002.....................       185,370,000
Recommended in the bill...............................       187,318,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +4,619,000
    Budget Estimate, fiscal year 2002.................        +1,948,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $187,318,000 
for administering the public debt, an increase of $4,619,000 
above the fiscal year 2001 enacted level and an increase of 
$1,948,000 above the President's request. The increase above 
the President's request is for non-pay inflation.
    The Committee has not continued language in the bill 
regarding the administration of certain Trusts. This language, 
first contained in fiscal year 2001, created an indefinite 
appropriation for the funding of administrative services by the 
Bureau of the Public Debt on behalf of these Trusts. The 
Committee believes that the Bureau should recover the costs of 
the administrative services it provides to the various Federal 
trust and investment funds and expects these administrative 
costs to be fully covered within the appropriation provided.
    The Committee has provided a one-time increase in the 
representational allowance for the Bureau of the Public Debt in 
support of its hosting of an international debt conference in 
May 2002 to share information and discuss the challenges of 
managing and marketing sovereign debt.

                     PUBLIC DEBT PROGRAM ACTIVITIES

    The Committee is concerned about the adequacy of response 
by the Bureau of Public Debt to recent developments that have 
drastically altered the long-time assumptions regarding the 
debt of the Nation. Current and future reductions of the 
national debt held by the public should bring significant 
reductions of the workforce required to manage and service that 
debt. As debt instruments mature, there will continue to be 
some new or rollover borrowings to re-finance the declining 
balance as well as a need to administer bond redemptions. But 
reductions in borrowing from the public also will dramatically 
affect the mix of instruments used to finance the public debt.
    The Committee finds a pressing need to explore immediately 
the implications of reduced borrowing and to re-visit the 
assumptions that underlie the work of the Bureau of Public 
Debt. For instance, according to its fiscal year 2002 budget 
justification, more than 70 percent of the Bureau's workforce 
and funding are devoted to savings bond activities. Yet savings 
bonds constitute only about 3 percent of the total public debt 
and less than 6 percent of the publicly held debt. In contrast, 
less than 30 percent of the Bureau's workforce and funding are 
focused on marketable securities, although these securities 
make up 97 percent of the outstanding public debt. The 
Committee is concerned that the implications of (1) the decline 
in the relative importance of savings bonds in funding the 
public debt, (2) the steady increase in savings bond 
redemptions over new issuances, and (3) the preference by 
Americans for other forms of savings and investments are not 
being adequately anticipated by the Bureau in its debt 
management programs and activities.
    Therefore, the Committee directs the Bureau to provide a 
report that reviews the complete debt program of the Bureau. 
The report is to take a fresh and fiscally-focused look at the 
savings bond program, its current and future role in financing 
the public debt and in providing a savings opportunity for the 
public, in the context of the full range of debt instruments 
available for financing the public debt. The report should 
detail the specific costs associated with the various debt 
instruments (savings bonds, Treasury bills, etc.), not only the 
interest rates that represent federal liabilities but also the 
federal personnel and processing costs related to issuing, 
redeeming, and otherwise administering the instruments on both 
an annual basis (expense of paying interest) and a cost-per-
transaction basis. The report should provide cost comparisons 
between high-amount, lower-volume instruments such as large T-
bills or T-notes (with varying maturities) and low-amount, 
high-volume instruments such as savings bonds. It should also 
explore the costs associated with maintaining these dual 
approaches to borrowing, rather than converting to a single 
approach, as the public debt shrinks. Costs related on a per-
transaction basis should include a breakout and description of 
overhead charges, such as the indirect costs of program 
management and administrative and support personnel, as well as 
the costs of the employees who directly handle transactions. 
The report should focus on fiscal management concerns. The 
report should provide an analysis of the impact on the federal 
government of simply discontinuing the savings bond program. 
The Bureau is to provide this report to the House Committee on 
Appropriations and to the House Committee on Financial Services 
180 days after enactment of this Act.

                        Internal Revenue Service

    The Committee is concerned about the variety and quality of 
information provided in justification of the budget request for 
the Internal Revenue Service (IRS). Despite the improvements 
brought about by the recent budget restructuring and by the 
functional presentation in the budget justification, the 
Committee remains intensely aware that other types of 
information and presentations would be of assistance in 
evaluating the IRS budget.
    A portion of this concern stems from the known inadequacy 
and weaknesses of the current financial management system, 
leading to mistrust of the financial information generated by 
the system. This lack of sound financial information, and the 
recent one-year delay in replacing the system as part of the 
business systems modernization effort, throws into question the 
ability of the IRS to justify its budgetary needs. While the 
IRS is to be congratulated for having achieved a clean audit 
opinion for its fiscal year 2000 financial statement, this 
unqualified opinion was only achieved at great cost, and the 
General Accounting Office continues to document substantial 
financial weaknesses. The Committee fully expects the IRS to 
continue improving its financial practices and processes to the 
greatest extent practicable. The Committee recognizes the role 
of the newly formulated IRS Oversight Board in reviewing the 
annual budget request of the IRS and submitting its own budget 
recommendation to the Congress. The Committee appreciates 
receiving their analysis of the IRS budget and looks forward to 
strengthening its relations with the IRS Oversight Board. The 
Committee urges the Secretary of the Treasury to consider the 
IRS Oversight Board's budget recommendations during 
deliberations on the FY 2000 budget request.

                 Processing, Assistance and Management





Appropriation, fiscal year 2001 enacted to date.......    $3,594,966,000
Budget estimate, fiscal year 2002.....................     3,783,347,000
Recommended in the bill...............................     3,808,434,000
Bill compared with:
    Appropriation, fiscal year 2001...................      +213,468,000
    Budget Estimate, fiscal year 2002.................       +25,087,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $3,808,434,000 
for Processing, Assistance, and Management, an increase of 
$213,468,000 above the fiscal year 2001 enacted level and an 
increase of $25,087,000 above the President's request. The 
increase above the President's request is for non-pay 
inflation. The Committee understands that this amount will be 
sufficient to provide $6,000,000 in support of low income tax 
clinics, the same level of support provided during fiscal year 
2001.

                          Tax Law Enforcement





Appropriation, fiscal year 2001 enacted to date.......    $3,366,380,000
Budget estimate, fiscal year 2002.....................     3,533,198,000
Recommended in the bill...............................     3,541,076,000
Bill compared with:
    Appropriation, fiscal year 2001...................      +174,696,000
    Budget Estimate, fiscal year 2002.................        +7,878,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $3,541,076,000 
for Tax Law Enforcement, an increase of $174,696,000 above the 
fiscal year 2001 enacted level and $7,878,000 above the 
President's request. The increase above the President's request 
includes $5,149,000 for non-pay inflation and $2,729,000 for 
participation in law enforcement support of the 2002 Winter 
Olympics. Within available funds, IRS is directed to spend 
$3,000,000 to contract for actuarial expertise and/or related 
computer software as a pilot compliance effort to assist in 
audits involving tax reserves and other situations requiring 
actuarial expertise.

                     AUDIT RATES AND AUDIT FAIRNESS

    The Committee remains concerned about the steady and 
significant decline in IRS' audit rates. An April 2001 
Government Accounting Office report, GAO-01-484, requested by 
the Committee on Ways and Means, reports IRS data of reductions 
since 1997 in audit coverage for large corporations (-60%), 
partnerships (-40%), and individuals (-62%). The IRS hopes to 
reverse this trend during fiscal years 2001 and 2002, and has 
pointed out increasing rates of other non-audit compliance 
activities, such as document matching. The Committee recognizes 
that audit rates are not the only measure of IRS tax compliance 
efforts, but remains concerned with the uncertainty about 
optimizing the rate of audits. Although the IRS has stated that 
it foresees no need to return to the levels of individual audit 
coverage that existed five years ago, the IRS has been unable 
to state what the audit rate ought to be (either in general or 
for specific taxpayer segments), to quantify the degree to 
which it expects fiscal years 2001 and 2002 will reverse the 
decline in audit rates, or to characterize how recent audit 
levels have affected compliance.
    The Committee is also concerned with indications that the 
current IRS audit coverage may disproportionately impact lower-
income taxpayers. At a recent hearing before the Committee, the 
IRS Commissioner testified that the decline in audit coverage 
and the increase in document matching have created unevenness 
in IRS compliance actions among taxpayers based on economic 
considerations, because current document-matching capabilities 
center upon tax returns that report mostly wages, salaries, and 
other non-investment income sources. At the same time, higher-
income taxpayers, whose returns often have income sources and 
deductions that are not part of current document-matching, also 
are being audited less frequently. The audit rate for high-
income individuals ($100,000 and higher) has declined by 65% 
from FY 1997 to FY 2000, while the audit rate for all 
individuals has declined by 62% over the same period. These 
figures call into question how the IRS can best allocate and 
manage its compliance resources.
    Therefore, the Committee directs the IRS to provide to the 
House Committee on Appropriations within 120 days of the date 
of the enactment of this Act a report detailing how the full 
range of all IRS tax compliance activities (document matching, 
in-person audits, correspondence audits, etc.) have changed for 
fiscal years 1996 through 2000 with projections for fiscal 
years 2001 and 2002. The report shall contain an analysis, 
broken out by appropriate taxpayer segments, of what the 
current audit levels are, what the optimum audit rates should 
be, and what actions are being taken to achieve these optimal 
audit rates. The report shall discuss, by specific tax law 
areas and taxpayer categories, compliance rates, the equitable 
distribution of IRS compliance resources among taxpayer 
segments, and the steps IRS is taking to ensure that no segment 
of taxpayers are disproportionately impacted by IRS tax 
enforcement activities.

             Earned Income Tax Credit Compliance Initiative





Appropriation, fiscal year 2001 to date...............      $144,681,000
Budget estimate, fiscal year 2002.....................       146,000,000
Recommended in the bill...............................       146,000,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +1,319,000
    Budget Estimate, fiscal year 2002.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $146,000,000 
for the Earned Income Tax Credit Compliance Initiative, an 
increase of $1,319,000 above the fiscal year 2001 enacted level 
and the same as the President's request.

                        EITC PROGRAM MANAGEMENT

    The Committee is quite concerned that the IRS, in managing 
its special program for remedying improper EITC payments, has 
not allocated the program resources in proportion to the 
different factors causing overclaims (math errors by tax payers 
and by tax preparers, legal misinterpretations by tax payers 
and by tax preparers, criminal fraud committed by tax payers 
and by tax preparers, etc.) that cause those improper payments. 
Of even greater concern, the IRS has not documented the 
relative levels of these factors but nevertheless has allocated 
major resources toward education efforts to correct legal 
misinterpretations but only lesser resources to reduce criminal 
fraud. Because the overclaims and overpayments consistently 
total $8-billion to $9-billion annually, it is crucial that all 
contributing factors be pursued in correct proportion to their 
contribution to the problem.
    Therefore, the Committee directs the IRS to immediately: 
devote all resources necessary to distinguish expeditiously 
what portions of the overclaims are attributable to erroneous 
but unintentional misunderstandings of the law, to math errors, 
to social security number errors, to returns prepared by 
taxpayers, to returns prepared by professionals, and to 
fraudulent or other deliberate conduct by taxpayers or 
preparers; and align the distribution of program resources (the 
$146-million appropriated for fiscal year 2002 and the 2,200 
FTE associated with the effort) to create a mix between 
education and enforcement efforts that reflects the ratio 
between mistaken versus intentional efforts to receive improper 
payments of EITC.

                       EITC Program Effectiveness

    Last year, the Committee directed the Internal Revenue 
Service to provide a report on the results, effectiveness, and 
success of the program. The resultant report provided limited 
information on program effectiveness. A key ingredient to 
determining the effectiveness of a program is the ability to 
measure and quantitatively characterize the extent of the 
problems and issues as well as the impact of the program on 
those problems and issues. Such specific measures and 
quantitative characteristics were not included in the report.
    For instance, the report state that about 7,100 tax return 
preparers were educated on EITC provisions and an additional 
2,300 received compliance visits, but information is not 
provided to place these figures in context. For example, the 
report does not address a comparison between the number of EITC 
tax return preparers and the overall number of preparers 
(including the proportion of EITC returns among the total 
returns prepared by these preparers), the proportion and number 
of self-prepared EITC returns and professionally prepared 
returns as a percentage of overall EITC returns which sought 
overclaims, whether IRS has identified preparers with a high 
volume of EITC overclaims and, if so, what portions have been 
detected and how has the IRS targeted these preparers for 
education or enforcement followup. These are but a few examples 
of the types of questions generated by the report; answers to 
these and other questions will assist in evaluating the 
effectiveness of the program.
    Therefore, the Committee directs the IRS to provide to the 
House Committee on Appropriations and the House Ways and Means 
Committee within 90 days of enactment of this Act a report that 
specifically addresses and provides data on the management and 
effectiveness of this program. The report should contain a 
cohesive strategy for improving the EITC program in the 
framework of pre-filing, filing, and post-filing activities and 
that strategy should specifically address the areas of: 
outreach and education, enforcement, compliance improvement, 
and compliance research. Such information is crucial in 
deliberations regarding future program authorization and 
funding. The report should contain the amounts for outreach and 
education, enforcement, compliance improvement, and compliance 
research for fiscal years 1998, 1999, 2000, 2001 (estimate), 
and 2002 (estimate) including a full discussion of what steps 
IRS has taken to better align its program resources in 
proportion to the factors that have created the overpayment 
problem.

                          Information Systems





Appropriation, fiscal year 2001 to date...............    $1,522,416,000
Budget estimate, fiscal year 2002.....................     1,563,249,000
Recommended in the bill...............................     1,573,065,000
Bill compared with:
    Appropriation, fiscal year 2001...................       +50,649,000
    Budget Estimate, fiscal year 2002.................        +9,816,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $1,573,065,000 
for Information Systems, an increase of $50,649,000 above the 
fiscal year 2001 enacted level and an increase of $9,816,000 
above the President's request. The increase above the 
President's request is for non-pay inflation. The Committee is 
aware of information system requirements that were identified 
by the IRS Oversight Board but not explicitly included in the 
President's budget request. The Committee believes the 
appropriation recommended by the Committee is adequate to 
address all of the highest priority information system needs of 
the IRS.
    The IRS and the Department of the Treasury are to be 
congratulated on the reverse auction it held on May 14, 2001, 
for purchasing new computers for IRS employees. This was the 
largest reverse auction yet to be conducted by a government 
agency and it resulted in substantial savings. For desktop and 
laptop computers, the government saved an average of about 25 
percent off the prices that otherwise would have been obtained; 
for some types of computers, such as top-end desktops, the 
savings were even greater. As a consequence of the reverse 
auction process and savings, the IRS should be able to meet its 
employees' immediate needs for computers during fiscal years 
2001 and 2002.

                     Business Systems Modernization





Appropriation, fiscal year 2001 to date...............       $71,593,000
Budget estimate, fiscal year 2002.....................       396,593,000
Recommended in the bill...............................       391,593,000
Bill compared with:
    Appropriation, fiscal year 2001...................      +320,000,000
    Budget Estimate, fiscal year 2002.................        -5,000,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $391,593,000 
for Business Systems Modernization, an increase of $320,000,000 
above the fiscal year 2001 enacted level and a decrease of 
$5,000,000 below the level proposed in the President's request. 
This account had been previously known as the Information 
Technology Investment account; the Committee approves the 
change of the name of the appropriation as proposed by the 
Administration. The release of funding from this account is 
governed by the same statutory conditions that governed the 
funds appropriated into the Information Technology Investment 
account for fiscal year 2001.

          Administrative Provisions--Internal Revenue Service

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

                      United States Secret Service


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............      $824,885,251
Budget estimate, fiscal year 2002.....................       857,117,000
Recommended in the bill...............................       943,777,000
Bill compared with:
    Appropriation, fiscal year 2001...................      +118,891,749
    Budget Estimate, fiscal year 2002.................       +86,660,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $943,777,000 
for the U.S. Secret Service, an increase of $118,891,749 above 
the fiscal year 2001 enacted level and an increase of 
$86,660,000 above the President's request. The increase above 
the President's request includes $13,624,000 for non-pay 
inflation, $27,530,000 for security planning and operations for 
the 2002 Winter Olympics (including the costs of non-Treasury 
agencies), $45,000,000 to complete the staffing rebalancing 
initiative, and $506,000 in additional support for the National 
Center for Missing and Exploited Children.

        Workforce Retention and Workload Rebalancing Initiative

    In response to a significant increase in workload for 
Secret Service agents, particularly in the field, and unusually 
high attrition rates, Congress provided additional funding for 
new hires to reduce the level of overtime to the 1994 target 
level of 62 hours per month. Fiscal year 2000 saw average 
overtime rise as high as 80 hours per month, as would be 
expected in an election year, but is on track to fall to more 
manageable levels. In order to complete this effort and achieve 
the target level, the Committee has included funding for the 
final increment of 204 agents, and included the funding 
necessary for hiring, support, space and equipment.

     Acquisition, Construction, Improvements, and Related Expenses





Appropriation, fiscal year 2001 to date...............        $8,921,330
Budget estimate, fiscal year 2002.....................         3,352,000
Recommended in the bill...............................         3,457,000
Bill compared with:
    Appropriation, fiscal year 2001...................        -5,464,330
    Budget Estimate, fiscal year 2002.................          +105,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $3,457,000 for 
Acquisition, Construction, Improvement and Related Expenses, a 
decrease of $5,464,330 below the fiscal year 2001 enacted level 
and an increase of $105,000 above the President's request. The 
increase above the President's request is for non-pay 
inflation.

             General Provisions--Department of the Treasury

    Section 110. The Committee continues the provision that 
requires the Secretary of the Treasury to comply with certain 
reprogramming guidelines when obligating or expending funds for 
law enforcement activities.
    Section 111. The Committee continues the provision that 
allows the Department of the Treasury to purchase uniforms, 
insurance, and motor vehicles without regard to the general 
purchase price limitation, and enter into contracts with the 
State Department for health and medical services for Treasury 
employees in overseas locations.
    Section 112. The Committee continues the provision that 
requires expenditures of funds so as not to diminish efforts 
under the Federal Alcohol Administration Act.
    Section 113. The Committee continues the provision that 
authorizes transfers, up to 2 percent, between law enforcement 
appropriations under certain circumstances.
    Section 114. The Committee continues the provision that 
authorizes transfers, up to 2 percent, between Departmental 
Offices, Office of the Inspector General, Financial Management 
Service, and the Bureau of the Public Debt appropriations under 
certain circumstances.
    Section 115. The Committee continues the provision that 
authorizes transfer, up to 2 percent, between the Internal 
Revenue Service and the Treasury Inspector General for Tax 
Administration under certain circumstances.
    Section 116. The Committee continues the provision that 
provides that no funds may be obligated for the purchase of law 
enforcement vehicles until the Secretary of the Treasury 
certifies that the purchase is consistent with Departmental 
vehicle management principles.
    Section 117. The Committee continues the provision that 
prohibits the Department of the Treasury from undertaking a 
redesign of the $1 Federal Reserve note.
    Section 118. The Committee continues the provision that 
provides for transfers from and reimbursements to the Salaries 
and Expenses appropriation of the Financial Management Service 
for the purposes of debt collection.
    Section 119. The Committee includes a new provision that 
authorizes intelligence and intelligence-based activities of 
the Department of Treasury.
    Section 120. The Committee includes a new provision that 
extends the pilot project for designated critical occupations 
for one additional year.
    Section 121. The Committee includes a new provision that 
requires authorization for the construction and operation of a 
museum by the United States Mint.

                        TITLE II--POSTAL SERVICE


                   Payment to the Postal Service Fund





Appropriation, fiscal year 2001 to date...............       $95,888,000
Budget estimate, fiscal year 2002.....................       143,712,000
Recommended in the bill...............................       143,712,000
Bill compared with:
    Appropriation, fiscal year 2001...................       +47,824,000
    Budget Estimate, fiscal year 2002.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $143,712,000 
for Payment to the Postal Service Fund, an increase of 
$47,824,000 from amounts appropriated in fiscal year 2001 and 
the same as the amounts requested by the President. Of the 
amounts appropriated, $56,303,000 is provided for free mail for 
the blind and overseas voters; a reduction of $8,684,000 is 
assumed as a reconciliation adjustment for differences between 
estimated free mail volumes and final audited volumes for 
fiscal year 1999. The final appropriation of $47,619,000 for 
free mail for the blind and overseas voters is made available 
on October 1, 2002. The Committee also includes $29,000,000 as 
reimbursements to the Postal Service for prior year 
reimbursement shortfalls due to insufficient appropriations and 
rate phasing provisions of the Revenue Forgone Act of 1993. The 
balance of the funds appropriated, $67,093,000, reflects the 
advance appropriation provided in fiscal year 2001.

              FINANCIAL CONDITION OF THE US POSTAL SERVICE

    The Committee is extremely concerned by the current 
financial status of the US Postal Service (USPS), with current 
estimates projecting a deficit of between $2-3 billion during 
fiscal year 2001 and $3.5 billion in fiscal year 2002. Although 
the Committee understands that this deficit reflects a number 
of unanticipated factors such as rising energy costs, labor 
costs, and reduced mail volume, the Committee believes that 
deficits of this magnitude are unacceptable. The Committee is 
also aware that the General Accounting Office has placed the 
USPS on its high-risk list due to the Service's operational and 
financial challenges.
    The Committee understands that the USPS is considering a 
number of options to reduce projected deficits, increase 
revenue, and control future costs, including an ongoing review 
of Saturday mail delivery, postal rate increases and the 
consolidation of postal facilities. The Committee is extremely 
concerned by reports that the USPS is considering the 
termination of Saturday mail delivery, the closing of small 
post offices and additional rate increases as both revenue 
generating and cost-saving mechanisms. The Committee directs 
the USPS to submit a copy of all reviews related to these 
matters upon their completion to the House Committee on 
Appropriations and the House Committee on Government Reform.
    The Committee believes that the goal of maintaining 
universal service at uniform rates from self-supporting postal 
revenues is in jeopardy within the current financial and 
operational structure of the USPS. The Committee strongly 
supports on-going efforts by the House Committee on Government 
Reform to achieve comprehensive postal service reform and 
believes that such reform efforts are central to the ability of 
the USPS to efficiently manage its resources. The Committee is 
disappointed that the Administration has not taken a more 
active role in both postal service reform and the financial 
viability of the USPS. The Committee believes that these issues 
are of national significance and deserve the active 
participation of the Administration.

        POSTAL SERVICE WEATHER EMERGENCY POLICIES AND PRACTICES

    In its report last year (H. Rpt. 106-756), the Committee 
expressed its concern that during Hurricanes Irene and Floyd, 
the US Postal Service may have put the health and safety of 
South Florida postal employees at risk by continuing business 
as usual for an unreasonable period and failing to curtail 
postal operations in a timely manner. As a result of that 
concern, the Committee urged the U.S. Postal Service to report 
to the Committee, by October 1, 2000, on its weather emergency 
policies and practices and to adopt a policy and practice of 
following the recommendations and directives of federal, state 
and local emergency management and weather authorities in all 
locations served by the Postal Service when weather emergencies 
arise.
    Despite this request, the Postal Service did not report to 
the Committee, nor does it appear that it has adopted a policy 
and practice of following the recommendations and directives of 
federal, state and local emergency management and weather 
authorities in all locations served by the US Postal Service 
when weather emergencies arise.
    The Committee continues to believe that the health and 
safety of postal employees must never be put at risk in order 
to deliver the mail. Thus, the Committee directs the Postal 
Service to report to the Committee by October 1, 2001, on its 
weather emergency policies and practices, and strongly urges 
the Postal Service to adopt a policy and practice of following 
the recommendations and directives of federal, state and local 
emergency management and weather authorities in all locations 
served by the US Postal Service when weather emergencies arise.
    In its October 1, 2001 report, the US Postal Service shall 
describe any variation between US Postal Service weather 
emergency policies and practices and those used by federal, 
state, and local emergency management and weather authorities, 
including the justification for each variation and shall 
indicate whether it will agree to follow the recommendations 
and directives of federal, state and local emergency management 
and weather authorities in all locations served by the US 
Postal Service when weather emergencies arise.

                 INBOUND AND OUTBOUND MAIL INSPECTIONS

    In 2000, the House Treasury, Postal Service and General 
Government Appropriations Subcommittee expressed concern about 
the U.S. Customs Service's inability to effectively screen 
items entering and exiting the United States via the U.S. 
Postal Service. The Subcommittee recognizes the critical role 
that Customs plays in protecting our nation's borders from 
illegal drugs and contraband, money laundering, intellectual 
property violations, and other types of fraud.
    Last year, the fiscal year 2001 Treasury, Postal Service, 
and General Government Appropriations included House report 
language that directed the U.S. Customs Service and U.S. Postal 
Service to jointly study and report on the problems and 
possible solutions affecting Customs' ability to properly and 
effectively screen, inspect, and review all parcels and 
packages entering the United States.
    The requested report is to address the issue of electronic 
manifests, timely collection of fees, and other issues of party 
in the treatment of the Postal Service and private carriers by 
the Customs Service. This report is due to the appropriate 
authorizing and appropriations committees within 180 days of 
enactment of the legislation.
    A subsequent face-to-face meeting between Members of 
Congress, Customs and the Postal Service, and resulting 
correspondence, have further instructed the agencies to work 
toward a joint operating agreement to correct the anomaly that 
prevents Customs from inspecting outbound items exiting the 
United States via the Postal Service. Currently, Customs 
inspects items exiting the United States via any mode of 
transport except the U.S. Postal Service. The outcome of 
efforts to develop a joint operating agreement is desired 
within the same time frame as the report described above.
    Customs and the Postal Service have provided interim status 
reports at the request of various Members of the House of 
Representatives and the Senate as the two agencies have been 
working towards resolution of these issues. The Committee looks 
forward to receiving the results of this final report.

                           KENNAN, WISCONSIN

    The Committee is concerned about the postal needs of the 
citizens of Kennan, Wisconsin. The Committee supports the US 
Postal Service's effort to construct a new facility in Kennan 
to replace the current deteriorating post office. The Committee 
recommends that the US Postal Service evaluate the status of 
this effort and report its findings to the Committee.

                         COLLEGEDALE, TENNESSEE

    The Committee is concerned about the postal needs of 
Collegedale, Tennessee, in Hamilton County, particularly that 
the City has four different Postmasters: Collegedale, Ooltewah, 
McDonald, and Apison. This situation has led to zip code 
related problems. The Committee is also aware that the USPS 
could consolidate local mail routes in order to create a unique 
zip code for Collegedale. The Committee recommends that the 
USPS evaluate the need for a post office in Collegedale, 
Tennessee, by working with local officials and community 
leaders. The Committee urges the USPS to evaluate the proposal 
for a single Collegedale zip code and report its findings to 
the Committee no later than December 1, 2001.

                         MEBANE, NORTH CAROLINA

    The Committee is aware that the City of Mebane, North 
Carolina, is interested in acquiring the postal-owned building 
on Main Street in Mebane, which has been vacated. The Committee 
encourages the Postal Service to work with the City to 
facilitate this acquisition.

                             CURRY, ALABAMA

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

                            GADSDEN, ALABAMA

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

                             SNEAD, ALABAMA

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

                         ROYAL OAKS, CALIFORNIA

    The Committee is concerned about the postal needs of Royal 
Oaks, California, located in Monterey County because the 
current zip code does not correspond to the City's 
jurisdictional boundaries. This situation has led to delayed 
mail delivery, confusion when dispatching police and fire 
services, and other zip code related problems such as: mail 
order taxes, auto insurance ratings, and insurance coverage. 
Therefore, the Committee directs the Postal Service to review 
the zip code related problems in Royal Oaks and report its 
findings to the Committee.

                POSTAL SERVICE EMPLOYEES IN PENNSYLVANIA

    The Committee has received reports that USPS employees in 
Pennsylvania have expressed a high level of concern and 
dissatisfaction with various aspects of their job. The 
Committee knows the importance of resolving these claims of a 
high degree of frustration among the rural letter carriers, 
city letter carriers, and clerks concerning management 
practices. The Committee directs the USPS to look into the 
situation in Pennsylvania and report back to the Committee by 
December 1, 2001.

                         PUEBLO WEST, COLORADO

    The Committee is concerned about the postal needs of Pueblo 
West, Colorado, located in Pueblo County. Pueblo West has 
experienced a 70% growth rate in the past decade, and its 
population of 17,200 is projected to double in the next five 
years, yet the community is still served by a small contract 
facility. The Committee recommends that the US Postal Service 
evaluate the need for a post office in Pueblo West, Colorado, 
working with local officials and community leaders. The 
Committee further recommends that the US Postal Service report 
its findings to the Committee.

                        Cooperative Mailing Rule

    The Committee supports the work of the House Committee on 
Government Reform to pass legislation correcting the current 
USPS misinterpretation of the cooperative mailing rule. The 
Committee is disappointed with the interpretation of the 
cooperative mailing rule rendered by the USPS. The Committee 
regrets that a legislative clarification is necessary to 
resolve this issue.

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


        Compensation of the President and the White House Office


                     COMPENSATION OF THE PRESIDENT




Appropriation, fiscal year 2001 to date...............          $390,000
Budget estimate, fiscal year 2002.....................           450,000
Recommended in the bill...............................           450,000
Bill compared with:
    Appropriation, fiscal year 2001...................           +60,000
    Budget Estimate, fiscal year 2002.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $450,000 for 
Compensation of the President, an increase of $60,000 from 
amounts appropriated in fiscal year 2001 and the same as the 
amount requested by the President. This increase fully funds 
the additional costs of increasing compensation for the 
President to $400,000, as authorized by Section 644 of Public 
Law 106-58.

                         Salaries and Expenses





Appropriation, fiscal year 2001 to date...............       $53,171,000
Budget estimate, fiscal year 2002.....................        54,165,000
Recommended in the bill...............................        54,651,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +1,480,000
    Budget Estimate, fiscal year 2002.................          +486,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $54,651,000 
for the White House Office, $1,480,000 above the amounts 
appropriated in fiscal year 2001 and $486,000 above the amounts 
requested by the President. The Committee includes an increase 
of $486,000 to cover the estimated costs of non-pay inflation 
during fiscal year 2002.

                 Executive Residence at the White House


                           OPERATING EXPENSES




Appropriation, fiscal year 2001 to date...............       $10,876,000
Budget estimate, fiscal year 2002.....................        11,914,000
Recommended in the bill...............................        11,695,000
Bill compared with:
    Appropriation, fiscal year 2001...................          +819,000
    Budget Estimate, fiscal year 2002.................          -219,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $11,695,000 
for the operating expenses of the Executive Residence, an 
increase of $819,000 from the amounts appropriated in fiscal 
year 2001 and a decrease of $219,000 from the amounts requested 
by the President. The Committee denies the President's 
requested increase of $214,000 for supplies and materials and 
notes that the Committee increased the base appropriation for 
these requirements from $450,000 to $748,000 in fiscal year 
2001. The Committee further denies the requested increase of 
$5,000 for historic furnishing and notes that funding for this 
activity was increased from $5,000 to $10,000 in fiscal year 
2001. The Committee was informed that, as of May of this year, 
only $114 had been obligated from the $10,000 appropriated; as 
such, the Committee does not believe that an increase of 50% is 
justified at this time.

                   White House Repair and Restoration





Appropriation, fiscal year 2001 to date...............          $966,000
Budget estimate, fiscal year 2002.....................         8,625,000
Recommended in the bill...............................         8,625,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +7,659,000
    Budget Estimate, fiscal year 2002.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $8,625,000 for 
White House Repair and Restoration, an increase of $7,659,000 
from amounts appropriated in fiscal year 2001 and the same as 
the amounts requested by the President.

                     Appropriations Justifications

    The Committee is disappointed by the justification 
materials as originally submitted by the National Park Service 
for White House Repair and Restoration. The President has 
requested funds for 8 separate construction activities within 
this account, including the 2nd phase of repair for the 
communication system serving the East Wing and the Executive 
Residence. Some are multi-year efforts requiring significant 
survey and design work prior to construction. The Committee 
requested detailed information regarding the costs and 
schedules of these projects and was disappointed by the 
vagueness of responses originally provided by the National Park 
Service. Although subsequent information provided to the 
Committee served to justify the appropriations request, the 
Committee remains concerned that the 8 separate projects, all 
of which will be in various stages of completion throughout the 
fiscal year, may be both difficult to manage as well as 
disruptive to Executive Residence operations.
    For each project in excess of $100,000, with the exception 
of computer upgrades and software development, and prior to the 
obligation of any of the funds appropriated, the Committee 
directs the National Park Service to submit a prospectus that 
includes, at minimum, a complete description of the project's 
scope and design, major work items to be completed, estimated 
total obligations by activity (construction cost, design and 
review cost, management and inspection), estimated construction 
schedules including start and completion dates for both design 
and construction, and estimated construction cost by major work 
item.

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


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............        $3,665,000
Budget estimate, fiscal year 2002.....................         3,896,000
Recommended in the bill...............................         3,925,000
Bill compared with:
    Appropriation, fiscal year 2001...................          +260,000
    Budget Estimate, fiscal year 2002.................           +29,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $3,925,000 for 
the Office of the Vice President, an increase of $260,000 from 
amounts appropriated in fiscal year 2001 and an increase of 
$29,000 from amounts requested by the President. The Committee 
includes an increase of $29,000 to cover the cost of non-pay 
inflation during fiscal year 2002. The Committee funds the 
requested increase of $150,000 for 2 additional FTE within the 
Office of the Vice President, bringing total FTE to 24.

                           OPERATING EXPENSES




Appropriation, fiscal year 2001 to date...............          $353,000
Budget estimate, fiscal year 2002.....................           314,000
Recommended in the bill...............................           318,000
Bill compared with:
    Appropriation, fiscal year 2001...................           -35,000
    Budget Estimate, fiscal year 2002.................            +4,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $318,000 for 
the Operating Expenses of the Vice President's residence, a 
decrease of $35,000 from amounts appropriated in fiscal year 
2001 and an increase of $4,000 from amounts requested by the 
President. The Committee includes an increase of $4,000 for 
estimated costs of non-pay inflation during fiscal year 2002. 
The Committee also includes two new general provisions 
(Sections 633 and 634), as requested by the President, 
regarding the care and operations of the Official Residence.

                      Council of Economic Advisers


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............        $4,101,000
Budget estimate, fiscal year 2002.....................         4,192,000
Recommended in the bill...............................         4,211,000
Bill compared with:
    Appropriation, fiscal year 2001...................          +110,000
    Budget Estimate, fiscal year 2002.................           +19,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $4,211,000 for 
the Council of Economic Advisers, an increase of $110,000 from 
amounts appropriated in fiscal year 2001 and an increase of 
$19,000 from amounts requested by the President. The Committee 
includes an increase of $19,000 for estimated costs of non-pay 
inflation in fiscal year 2002.

                      Office of Policy Development


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............        $4,023,000
Budget estimate, fiscal year 2002.....................         4,119,000
Recommended in the bill...............................         4,142,000
Bill compared with:
    Appropriation, fiscal year 2001...................          +119,000
    Budget Estimate, fiscal year 2002.................           +23,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $4,142,000 for 
the Office of Policy Development, an increase of $119,000 from 
amounts appropriated in fiscal year 2001 and an increase of 
$23,000 from amounts requested by the President. As compared to 
the President's request, the Committee includes an increase of 
$23,000 for the estimated costs of non-pay inflation in fiscal 
year 2002.

                       National Security Council


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............        $7,149,000
Budget estimate, fiscal year 2002.....................         7,447,000
Recommended in the bill...............................         7,494,000
Bill compared with:
    Appropriation, fiscal year 2001...................          +345,000
    Budget Estimate, fiscal year 2002.................           +47,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $7,494,000 for 
the National Security Council, an increase of $345,000 from 
amounts appropriated in fiscal year 2001 and an increase of 
$47,000 above the amounts requested by the President. The 
Committee includes an increase of $47,000 for estimated costs 
of non-pay inflation in fiscal year 2002.

                        Office of Administration


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............       $43,641,000
Budget estimate, fiscal year 2002.....................        46,032,000
Recommended in the bill...............................        46,955,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +3,314,000
    Budget Estimate, fiscal year 2002.................          +923,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $46,955,000 
for the Office of Administration, an increase of $3,314,000 
from amounts appropriated in fiscal year 2001 and an increase 
of $923,000 from amounts requested by the President. Although 
the Committee appreciates the President's efforts to control 
costs within the Executive Office of the President (EOP), the 
Committee is concerned that the proposed funding levels for the 
Office of Administration (OA) may be inadequate to fully 
support authorized activities and, specifically, the 
requirements of the Chief Financial Officers Act. As such, in 
comparison to amounts requested by the President, the Committee 
includes $377,000 for estimated costs of non-pay inflation in 
fiscal year 2002, $216,000 to annualize the costs of the office 
of the Chief Financial Officer, and $330,000 to fully fund the 
required formal audit of financial statements within the EOP.

                        Capital Investment Plan

    For the past 5 years, the Committee has followed closely 
the EOP's efforts to develop and implement a comprehensive 
information technology modernization system. To date, the 
Committee has appropriated $61,704,000 for these efforts, 
including $29,791,000 for Y2K compliance and $13,200,000 for 
on-going e-mail reconstruction efforts. The Committee is 
extremely disappointed to learn that the Capital Investment 
Plan (CIP) that was submitted to it was based on an incomplete 
and inadequate enterprise architecture and is missing critical 
elements such as a capital planning and investment control 
process and a strategic plan. The Committee recognizes that 
each new Administration inherits the work of its predecessor, 
and believes that this vital information system should be 
designed in a manner easily understood and used by subsequent 
Administrations. The Committee is also concerned that the EOP 
may not have the requisite in-house expertise to complete this 
project successfully and highly recommends that OA consider 
expanding the use of external expertise for all future work on 
this project.
    The Committee has fully funded the President's request for 
information technology. Of the amounts provided, $7,300,000 is 
made available on October 1, 2001, for the following purposes: 
Core Infrastructure (Cabling, Network hardware/software, Data 
Center, Internet/security, Travel support/equipment) and 
Development and Modernization (Desktop Operating Software and 
Calendaring/e-forms). The balance of $4,475,000 is withheld 
pending the submission of a report that (1) includes an 
Enterprise Architecture, as defined, in OMB Circular A-130 and 
the Federal Chief Information Officers' guidance; (2) presents 
an Information Technology (IT) Human Capital Plan, to include 
an inventory of current IT workforce knowledge and skills, a 
definition of needed IT knowledge and skills, a gap analysis of 
any shortfalls, and a plan for addressing any shortfalls; (3) 
presents a capital investment plan for implementing the 
Enterprise Architecture; (4) includes a description of the IT 
capital planning and investment control process; and (5) is 
reviewed and approved by OMB, is reviewed by the General 
Accounting Office, and is approved by the House Committee on 
Appropriations.

                        Chief Financial Officer

    The Committee is pleased with on-going progress to hire a 
Chief Financial Officer (CFO) within the EOP and has provided 
full funding for the CFO in fiscal year 2002, including 
estimated costs for the auditable financial statements and 
formal financial statements. The Committee directs the OA to 
provide a report identifying the schedule for accomplishing the 
preparation of auditable financial statements, by EOP agency, 
as well as a schedule for preparation of the financial audit. 
This report should identify estimated and actual obligations by 
activity and delivered to the Committee no later than 30 days 
after enactment of this Act.

                    Office of Management and Budget


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............       $68,635,000
Budget estimate, fiscal year 2002.....................        70,521,000
Recommended in the bill...............................        70,752,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +2,117,000
    Budget Estimate, fiscal year 2002.................          +231,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $70,752,000 
for the Office of Management and Budget, an increase of 
$2,117,000 from amounts appropriated in fiscal year 2001 and an 
increase of $231,000 from amounts requested by the President. 
As compared to the President's request, the Committee includes 
$233,000 for the estimated costs of non-pay inflation in fiscal 
year 2002 and a reduction of $2,000 from amounts requested for 
representation allowances. The Committee has fenced a portion 
of the funds appropriated to the Office of Information and 
Regulatory Affairs (OIRA) until such time as the Office of 
Management and Budget addresses the Committee's concerns 
regarding the implementation of Executive Order 13166, 
Improving Access to Services for Persons with Limited English 
Proficiency, as discussed below.

                       Representation Allowances

    As requested by the President, the Committee has agreed to 
establish a representation allowance for the Office of 
Management and Budget (OMB); however, the Committee provides 
$3,000 instead of the $5,000 requested. This amount is 
consistent with amounts provided to the Congressional Budget 
Office. The Committee directs OMB to submit, as part of its 
fiscal year 2003 budget submission, an itemization of all 
obligations made from this account, including a description of 
the official purpose of each obligation.

        Executive Office of the President Account Consolidation

    The Administration has proposed to consolidate eighteen 
separate appropriations accounts within the Executive Office of 
the President (EOP) into a single annual appropriation in order 
to provide the President with maximum flexibility in allocating 
resources, simplify the current accounting structure and 
streamline common administrative functions, such as 
procurement. The Committee supports these objectives. However, 
the Committee has a number of concerns that make it difficult 
to support the proposed consolidation at this time.
    In fiscal year 2000, the Committee established a Chief 
Financial Officer (CFO) within the EOP to analyze the EOP's 
accounting systems and reports, examine internal financial 
management control procedures, review compliance with 
applicable government-wide accounting standards, and identify 
areas needing improvement. The Committee believes that the 
CFO's review of EOP's financial management systems should be 
considered as part of any proposal to consolidate 
appropriations accounts; absent that review, the Committee 
believes that the proposed consolidation is premature.
    The Committee believes that current law provides the 
necessary authority to achieve economies of scale for common 
goods and services. In particular, the Administration has been 
unable to illustrate why the authorities provided by 31 U.S.C., 
Section 1535, have not been used in the past and why they are 
insufficient to meet current and future EOP objectives. 
Further, the Committee notes that statutory transfer authority 
would provide the desired flexibility in managing EOP staff and 
resources and does not agree with the Administration that 
transfer authority would create complications. In addition, the 
Committee believes that future consolidation proposals should 
include specific information detailing and quantifying the 
economies of scale that would be achieved by merging 
appropriations accounts.
    The Committee is also concerned that the proposed account 
consolidation would adversely affect oversight of specific 
statutory responsibilities assigned to various EOP offices, 
including the Council on Environmental Quality, the National 
Security Council, the Office of Management and Budget, and the 
Office of Science and Technology Policy. The Committee believes 
that the current account structure ensures that adequate 
resources are provided to each agency, that sufficient 
resources are devoted to support the unique missions and 
responsibilities of these distinct organizations, and that 
Congressional oversight is maintained.
    The Committee is encouraged by the EOP's intent to achieve 
economies of scale and supports the President's desires to 
achieve flexibility; the Committee looks forward to working 
with the EOP to achieve these goals during the upcoming fiscal 
year.

                   OMB's Management Responsibilities

    The Committee is pleased by the boldness of the 
Administration's opening section, ``Improving Government 
Performance,'' in its fiscal year 2002 budget submission. The 
ability to deliver improvements will greatly depend on the 
efforts and guidance of OMB, with its broad superintending 
authority over the multitude of agencies within the Executive 
Branch. That hoped-for performance, however, is challenged both 
by a slow start on this year's budget due to the transition, 
and by the expectation that OMB will not launch many of its 
reviews until the new fiscal year starts in October. As the 
budget proposal stated, ``This task will not be easy and it 
will take time''.
    The Committee supports the goals stated in the 
Administration's budget, which expressly calls for re-examining 
the role of the Federal government with three objectives for 
improving performance: becoming citizen centered, not 
bureaucracy centered; results-oriented, not process-oriented; 
and market-based, actively promoting innovation and 
competition. The intended tasks for accomplishing this include 
linking budget and management decisions to performance, 
ensuring financial accountability, eliminating duplicative and 
ineffective programs, using capital planning to improve 
performance, and opening government activities to competition. 
Many of these tasks are not new but rather expand upon existing 
legislation intended to improve government performance, 
including the Government Performance and Results Act and the 
Clinger-Cohen Act. What is new is the President's proposal to 
reexamine the role of the Federal government and to create an 
aggressive management agenda. OMB, as staff to the President, 
has played, and will continue to play, a key leadership role 
both to develop and to implement this agenda.
    In this regard, the Committee remains concerned by OMB's 
lack of leadership in the management of federal agencies. Too 
often its focus is on budgeting but not on managing. In 
reviewing OMB's FY 2000 Annual Performance Report, the 
Committee notes the absence of quantifiable measures of 
performance associated with OMB's management responsibilities. 
The Committee is also struck by certain inconsistencies. For 
instance, although the Performance Report states that OMB 
``worked with agencies . . . to manage . . . the health of the 
Government's IT portfolio'' a recent report by the Senate 
Committee on Governmental Affairs (Senate Report 106-64) found 
that seventeen of twenty-four agencies and departments did not 
have a complete and comprehensive IT capital planning and 
investment control process. The Committee questions not only 
the extent to which OMB has worked with agencies as it relates 
to IT portfolios but also its success.
    The Committee believes that OMB must take a more aggressive 
leadership role in the coordination of agency efforts to 
implement the Government Performance and Results Act, the Chief 
Financial Officers Act and the Clinger-Cohen Act. The Committee 
also remains extremely disappointed in OMB's implementation of 
the Paperwork Reduction Act, the Congressional Review Act and 
the review of agency regulatory proposals.
    In fairness, it should be stressed that OMB has new 
leadership and certainly has many highly capable individuals to 
meet these challenges. The Committee is attempting to outline a 
clear assessment of how difficult those challenges are as a 
necessary part of working with OMB to surmount them.
    The Committee believes that the Administration's management 
agenda should be incorporated into OMB's annual performance 
plan and should include specific and measurable goals. The 
Committee notes that the General Accounting Office (GAO) has 
identified 22 high risk areas within the federal government, 
those programs, activities, and operations that are vulnerable 
to fraud, waste, abuse and mismanagement. Given OMB's 
superintending authority over Executive Branch agencies, the 
Committee believes that OMB plays a critical role in addressing 
these and other vulnerabilities within federal agencies. The 
Committee will look to OMB's Fiscal Year 2001 Annual 
Performance Report to determine the extent to which OMB has 
included quantifiable goals that measure its success at 
implementing the President's management agenda.

                      Limited English Proficiency

    The Committee is concerned that OMB has made no appreciable 
effort to review both the regulatory burden and the budgetary 
impact of agency implementation of Executive Order 13166, 
Improving Access to Services for Persons with Limited English 
Proficiency (LEP). The Committee understands that agencies are 
required to develop policy guidance to implement this Executive 
Order and that this guidance is to be submitted to the 
Department of Justice. OMB has informed the Committee that, 
because this Executive Order is being implemented through 
policy guidance and not regulation, OMB has had a limited role 
in review of EO 13166 and its implementation.
    The Committee believes that the difference between ``policy 
guidance'' and ``regulation'' is more than a technical 
distinction, and further understands OMB's responsibilities in 
regard to reviewing ``significant regulatory action''. The 
Committee believes that, for the practical purpose of 
implementing EO 13166, there is virtually no distinction 
between ``policy guidance'' and ``regulatory action''. In fact, 
the cumulative effect of agency policy guidance regarding EO 
13166 clearly meets the definition of ``significant regulatory 
action'' and should be considered as such for the purpose of 
OMB's responsibilities.
    The Committee further believes that, even if the EO impact 
only generated internal costs, it would create new federal 
expenditures that have not been expressly authorized or 
approved by Congress. However, the EO requirements extend far 
beyond placing internal burdens upon federal agencies and 
workers. The Committee is concerned that OMB has not assessed 
the budgetary impact of this Executive Order on entitlements, 
grants, loan programs and contracts. Additionally, the 
Committee is concerned that there has been no assessment of the 
burden EO 13166 will create for state and local governments, 
private businesses and non-profit organizations.
    The Committee understands that OMB is in the process of 
considering how to assess the costs that may be imposed on 
recipients of federal financial assistance as a result of EO 
13166 and is concerned that these cost burdens may be imposed 
on agencies and the private sector before OMB has thoroughly 
evaluated them. The Committee has fenced a portion of the funds 
available to the Office of Information and Regulatory Affairs 
pending a submission by OMB of the total costs of implementing 
EO 13166. The Committee directs that this report include the 
cost to each of the following: federal, state and local 
governments as well as those imposed on recipients of federal 
financial assistance and upon the overall private sector.

                Making Federal Information User Friendly

    The rapidly-expanding information made publicly available 
by Federal agencies via the Internet is a positive development 
in improving public disclosure, understanding and 
accountability. The efforts of many Federal agencies in this 
are worthy of praise. However, it often remains difficult for 
the public to comprehend fully, in part because the great 
volume of material must often be re-organized in different ways 
to be useful to different persons. Information from different 
Federal sources--and in particular information involving 
spending--can be compared and correlated only if it can be 
properly matched. Matching is often difficult because different 
names or labels may be used to mean the same thing, and 
similar-appearing names or labels may be used to mean different 
things. Internally, Federal agencies apply identifying codes to 
resolve this and to distinguish among entities, accounts, etc. 
(For example: agency codes, function codes, program codes, 
report numbers, contract and grant numbers, identifying numbers 
of vendors, contractors, grantees, sub-vendors, subcontractors, 
sub-grantees, etc.) By March 1, 2002, the Office of Management 
and Budget is directed to establish and publish guidelines to 
require all Federal agencies to include the existing non-
confidential federal identifying codes as part of information 
on their websites and their public documents in a manner that 
permits ease-of-use for persons wishing to compare and 
correlate Federal data.

                           LOAN SUBSIDY RATES

    The Committee is concerned that the subsidy models for the 
Section 7(a) General Business Loan and the Section 504 
Certified Development Company Loan programs operated by the 
Small Business Administration (SBA) have repeatedly resulted in 
over-estimated losses in those programs. Since implementation 
of the Credit Reform Act, there have been nine years of subsidy 
rate re-estimates that compare projections against actual 
experience. According to the Congressional Budget Office, the 
budget re-estimates for the 7(a) loan program alone have 
totaled $1.258 billion in downward re-estimates representing 
excess funds returned to Treasury. Inaccurate subsidy models 
result in both excessive fees and unnecessary appropriations.
    The Committee has included bill language directing OMB to 
work with the SBA to develop subsidy estimates that track the 
actual default experience in those programs since the 
implementation of the Credit Reform Act of 1992. The Committee 
further requires that these subsidy estimates be included in 
the President's fiscal year 2003 budget submission and to 
report on the progress of developing these efforts to the House 
Committee on Appropriations and the House Committee on Small 
Business.

        Apportionment for International Food Assistance Programs

    The Committee remains concerned that the Office of 
Management and Budget is inappropriately involved in the 
detailed review of applications filed with the Department of 
Agriculture for international food assistance, particularly as 
a member of the Food Assistance Policy Council. While OMB does 
have a responsibility to be certain that funds are expended for 
the purposes for which they are appropriated, OMB's role is not 
to interfere with the policy determinations made by USDA, 
including the policy decision to allow for the monetization of 
commodities. The allocation and review process that has been in 
place has resulted in delays in the provision of food 
assistance that has hampered efforts to provide food assistance 
around the world in a timely fashion. It has also hindered 
USDA's ability to acquire commodities in a fashion designed to 
have a positive effect on the prices received by producers. The 
Committee directs OMB to apportion not less than 75% of funds 
for all of the food assistance programs operated by USDA no 
later than December 31, 2001, and to restrict its involvement 
with the Food Assistance Policy Council to administrative 
monitoring.

                 Office of National Drug Control Policy


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............       $24,704,530
Budget estimate, fiscal year 2002.....................        25,100,000
Recommended in the bill...............................        25,267,000
Bill compared with:
    Appropriation, fiscal year 2001...................          +562,470
    Budget Estimate, fiscal year 2002.................          +167,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $25,267,000 
for the Office of National Drug Control Policy, an increase of 
$562,470 above the fiscal year 2001 enacted level and an 
increase of $167,000 above the President's request. The 
increase above the President's request is for non-pay 
inflation.

               STRATEGIC INFORMATION AND POLICY GUIDANCE

    The Committee strongly supports continued efforts to 
develop information on the flows of various drugs, the 
population and treatment of chronic users, and the development 
of both strategic and detailed information about the structure 
and scale of the underground economy and social structures that 
make illicit drug use and trafficking possible. ONDCP is 
encouraged to keep the Committee fully informed about progress 
in mapping such flows of drugs and in the development of 
systems such as the National Treatment Outcome Monitoring 
System (NTOMS).

            COUNTERDRUG ENFORCEMENT IN U.S. NATIONAL FORESTS

    Last year, the Committee directed ONDCP, in consultation 
with the U.S. Forest Service, the Bureau of Land Management, 
and other relevant agencies, to review the problems of 
marijuana cultivation and controlled-substance production in 
our national forests and to submit a plan to address them, 
including legislative and funding recommendations, by February 
1, 2001. The Committee continues to await this report and is 
very disappointed that it has not yet been provided. If the 
report is not submitted prior to enactment of this Act, the 
Committee expects ONDCP to submit a written explanation 
regarding the status of the report within 30 days of enactment. 
The Committee directs ONDCP to submit the completed report 
within 90 days of enactment of this legislation.

                Counterdrug Technology Assessment Center





Appropriation, fiscal year 2001 to date...............       $35,973,683
Budget estimate, fiscal year 2002.....................        40,000,000
Recommended in the bill...............................        40,000,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +4,026,317
    Budget Estimate, fiscal year 2002.................  ................


                                MISSION

    Pursuant to 21 U.S.C. 1707, the Counterdrug Technology 
Assessment Center serves as the central counterdrug research 
and development organization for the United States Government.

                             RECOMMENDATION

    The Committee recommends an appropriation of $40,000,000 
for the Counterdrug Technology Assessment Center, an increase 
of $4,026,317 above the fiscal year 2001 enacted level and the 
same as the President's request. The Committee directs that 
this appropriation reflect a funding level of $22,236,000 for 
the technology transfer program, $236,000 above the President's 
request, and $17,764,000 for basic R&D;, which is the fiscal 
year 2001 funding level.

                    CTAC TECHNOLOGY TRANSFER PROGRAM

    The CTAC technology transfer program has been enormously 
successful, demonstrating the impact that can be achieved with 
a relatively small level of funding by transferring mature, 
tested technology that has practical and immediate usefulness 
to local and State law enforcement agencies that would 
otherwise not have access to such tools. The Committee 
therefore includes $22,236,000, a $4,026,150 increase over the 
level funded in fiscal year 2001. As of the end of fiscal year 
2000, there had been 1,808 deliveries of targeted, relatively 
low-cost technology to 1,325 State and local law enforcement 
agencies nationwide. In fiscal year 2001, there are 1,234 
outstanding requests for law enforcement technology transfers 
to date, and the expectation that over 800 of these can be met 
this year. The Committee believes that this additional funding 
will help increase the capability of CTAC to meet this need for 
technology to help leverage the ability of chronically short-
staffed law enforcement agencies to take on major drug crime at 
the local level.

                     Federal Drug Control Programs


             HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM




Appropriation, fiscal year 2001 to date...............      $206,045,700
Budget estimate, fiscal year 2002.....................       206,350,000
Recommended in the bill...............................       231,500,000
Bill compared with:
    Appropriation, fiscal year 2001...................       +25,454,300
    Budget Estimate, fiscal year 2002.................       +25,150,000


                                MISSION

    The High Intensity Drug Trafficking Areas (HIDTA) Program 
was established by the Director, ONDCP pursuant to Section 1005 
of the Anti-Drug Abuse Act of 1988, and now as reauthorized by 
21 U.S.C. 1706 to provide assistance to Federal and State and 
local law enforcement entities operating in those areas most 
adversely affected by drug trafficking.

                             RECOMMENDATION

    The Committee recommends an appropriation of $231,500,000 
for the High Intensity Drug Trafficking Areas Program, an 
increase of $25,454,300 above the fiscal year 2001 enacted 
level and an increase of $25,150,000 above the President's 
request. The increase above the President's request is to meet 
requirements to fully fund existing HIDTA program activity, to 
expand existing HIDTAs where such expansion is justified, and 
to fund new HIDTAs as appropriate. The Committee provides that 
HIDTAs existing in FY 2001 shall receive funding equal to the 
FY 2001 level. However, the Committee has continued language 
that permits ONDCP to adjust such spending levels if 
performance indicates that an increase or decrease in funding 
is warranted.
    The Committee supports a vigorous HIDTA program and is 
aware of areas facing increased drug trafficking that may be 
appropriate candidates for designation as a HIDTA, inclusion in 
an existing HIDTA, or increased funding. As ONDCP reviews 
candidates for new HIDTA funding, the Committee recommends that 
it consider the following: expansion of the North Texas HIDTA 
to include Oklahoma counties, and of the Northwest HIDTA to 
include the counties of Southwest and Eastern Washington; 
increased funding for the Southeast Michigan HIDTA; designation 
of an Arkansas HIDTA; designation of a North Carolina HIDTA; 
increased funding for Arizona in the Southwest border HIDTA; 
and an increase in funding for the Central Florida, West Texas, 
Appalachian, Lake County, Indiana, and Gulf Coast HIDTAs. The 
Committee recognizes the strong pressure to add new HIDTAs and 
expand those currently existing, and underscores the need for 
performance based management ensuring that HIDTAs that 
demonstrate performance and need are provided adequate 
resources.

                         CENTRAL FLORIDA HIDTA

    The Central Florida HIDTA was established in 1998 to meet 
the rising threat of drug trafficking coming from the Caribbean 
and South America. As the level of drugs transiting through 
this area have grown in recent years, HIDTA funding has 
remained at the basic level, with only a $22,000 increase in 
fiscal year 2001 to provide intelligence-sharing 
infrastructure. The region would especially benefit from joint 
program operations and support available from the HIDTA, such 
as for additional overtime costs of task forces, network 
communications, and translation services. The Committee 
therefore directs ONDCP to examine these requirements, 
including providing additional funds of $2,500,000 to support 
these needs, and to report back to the Committee within 90 days 
of enactment of this Act on implementation of this directive.

                      HIDTA Performance Management

    Performance measures for HIDTAs have been, and continue to 
be, an area of focus for the Committee. As previously noted, 
the ability to match funding needs against budgets depends on 
reliable and consistent methodology for performance measurement 
and management. ONDCP has indicated that fifty-six 
developmental standards are currently being used by HIDTA 
executive boards to guide their decisions and improve the 
effectiveness of law enforcement efforts. The Committee 
strongly encourages continued efforts on the part of ONDCP to 
develop and refine standards that provide reliable measures 
which can be easily reported, and will serve as a basis for 
sound budget decisions. The goal should be to have the ability 
to assess overall program performance and to set priorities for 
resource allocation within and between HIDTAs.

              HIDTA Response to Methamphetamine Production

    The Committee remains extremely concerned about the 
manufacture and distribution of methamphetamines. ONDCP reports 
that methamphetamines are the most prevalent synthetic drug 
clandestinely manufactured in the United States. It is highly 
addictive and can be manufactured using products commercially 
available. Because of this ease of manufacture, small towns and 
rural areas are popular targets of manufacturing and 
distribution. The Committee endorses efforts to focus on those 
areas most significantly affected by methamphetamine 
manufacture and distribution and strongly encourages ONDCP, as 
it makes its decisions to designate new HIDTAs or fund existing 
ones, to target methamphetamines. The Committee believes that 
this would be a productive use of funding and an extremely 
beneficial tool in the implementation of the national drug 
control strategy.

                        Special Forfeiture Fund





Appropriation, fiscal year 2001 to date...............      $233,086,080
Budget estimate, fiscal year 2002.....................       247,600,000
Recommended in the bill...............................       238,600,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +5,513,920
    Budget Estimate, fiscal year 2002.................        -9,000,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $238,600,000 
for the Special Forfeiture Fund, an increase of $5,513,920 
above the fiscal year 2001 enacted level and a decrease of 
$9,000,000 below the President's request. The recommendation 
includes no funding for the proposed Parents for a Drug-Free 
Future initiative, and $180,000,000 for the National Youth 
Anti-Drug Media Campaign, $5,000,000 below the President's 
request. The Committee also includes $50,600,000 for 
implementation of the Drug Free Communities Act, $3,000,000 for 
the Counterdrug Intelligence Executive Secretariat, and 
$1,000,000 for the National Drug Court Institute. The Committee 
also recommends $4,000,000 for the US Anti-Doping Agency, an 
increase of $1,000,000 above the President's request.

                National Youth Anti-Drug Media Campaign

    The Committee provides $180,000,000 for the National Youth 
Anti-Drug Media Campaign (NYAMC), pursuant to 21 U.S.C. 1801-
1804. This is $5,000,000 below the level in fiscal years 1999-
2001. The impact of this program has not been clearly 
determined and is difficult to measure. The Committee is 
watching closely the reports on the impact of the campaign, 
both from long-term analyses such as that being conducted under 
the auspices of the National Institute of Drug Abuse (NIDA) as 
well as more anecdotal reports from community drug coalitions. 
Campaign ads have received notice in the general media, and the 
Committee is aware of local efforts to leverage their impact, 
thereby helping increase awareness of and sensitivity to drug 
use. In addition, the Committee is aware of some promising 
trends in indicators of youth attitudes and behavior (although 
some, such as increasing prevalence of such club drugs as 
ecstasy, are discouraging). However, the statistical 
significance of such awareness and the campaign's impact on 
behavior on a national or even local level has yet to be 
adequately validated. The Committee will continue to scrutinize 
such information with the expectation that statistically 
significant results, demonstrating how effective the campaign 
has been, will be available within the foreseeable future.
    The Committee is aware that ONDCP developed a corporate 
sponsorship strategy for the campaign last year, and would like 
to know more about the feasibility and success of efforts to 
enlist direct, private support and contributions to the 
campaign. The Committee therefore directs ONDCP to report not 
later than 90 days after enactment on the performance of its 
sponsorship strategy, as well as corporate cooperation, 
including an assessment of the potential contribution such a 
strategy has or could make to increase the resources for the 
campaign and leverage its impact. In the absence of clear 
measurements of performance, the ability of this program to 
attract private support may prove a key indicator of its value.

    Contract Performance and Management for the Youth Media Campaign

    The Committee has received the General Accounting Office 
(GAO) review of the advertising contract for phase III of the 
National Youth Anti-Drug Media Campaign (NYAMC) and is 
disappointed to learn of weaknesses in contract performance and 
management. GAO concluded that there was a failure on the part 
of both the contractor and the government to ensure that a 
proper billing and accounting system was in place and adhered 
to, as well as poor contract management of key elements of the 
award and administration of the advertising contract. The 
Committee is aware that responsibility for contract management 
has been transferred from HHS to the Navy, which is conducting 
its own audit of contracts, and that the contractor has agreed 
to restructure its accounting system to comply with government 
cost accounting standards. However, to ensure that there be no 
repetition of such mistakes, the Committee fully supports the 
recommendations made by GAO. The Committee therefore directs 
ONDCP to work with its Contracting Officer's Technical 
Representative (COTR), the Navy, to: (1) review the 
contractor's invoices and determine how much the government 
overpaid or should reimburse the contractor; (2) ensure that 
the contractor has a cost accounting system needed for full 
contract performance; and (3) coordinate the roles of ONDCP's 
contracting officer and the COTR and ensure that such roles are 
effectively carried out. The Committee also directs that the 
Navy not exercise the next option year of the contract with the 
current contractor until that contractor has restructured its 
accounting system to meet government requirements, and ONDCP 
has assessed both the contractor's administrative as well as 
technical performance. The Committee recognizes that this is an 
evolving situation, given that the GAO report was only recently 
published, and because ONDCP is still awaiting new policy 
leadership.

                   Counterdrug Intelligence Programs

    The Committee strongly supports intensifying efforts to 
develop useful strategic and tactical intelligence to attack 
drug trafficking and organizations, and to leverage the 
resources available to law enforcement and other agencies 
charged with stopping drug trafficking. The Committee therefore 
continues its funding of the Counterdrug Intelligence Executive 
Secretariat (CDX) in its support of the interagency Counterdrug 
Intelligence Coordinating Group. The Committee directs ONDCP to 
report within 90 days of enactment on the status of 
implementation of the General Counterdrug Intelligence Plan.

                  Funds Appropriated to the President


                          UNANTICIPATED NEEDS




Appropriation, fiscal year 2001 to date...............        $3,492,000
Budget estimate, fiscal year 2002.....................         1,000,000
Recommended in the bill...............................         1,000,000
Bill compared with:
    Appropriation, fiscal year 2001...................        -2,492,000
    Budget Estimate, fiscal year 2002.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $1,000,000, a 
decrease of $2,492,000 from amounts appropriated in fiscal year 
2001 and the same as the amount requested by the President.

                     TITLE IV--INDEPENDENT AGENCIES


 Committee for Purchase From People Who Are Blind or Severely Disabled


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............        $4,149,000
Budget estimate, fiscal year 2002.....................         4,498,000
Recommended in the bill...............................         4,609,000
Bill compared with:
    Appropriation, fiscal year 2001...................          +460,000
    Budget Estimate, fiscal year 2002.................          +111,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $4,609,000 for 
the Committee for Purchase From People Who Are Blind or 
Severely Disabled, an increase of $460,000 from amounts 
appropriated in fiscal year 2001 and an increase of $111,000 
from amounts requested by the President. The Committee's 
recommendation includes an increase of $111,000 for the 
estimated costs of non-pay inflation.

                      Federal Election Commission


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............       $40,410,900
Budget estimate, fiscal year 2002.....................        41,410,900
Recommended in the bill...............................        43,223,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +2,812,100
    Budget Estimate, fiscal year 2002.................        +1,812,100


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $43,223,000 
for the Federal Election Commission (FEC), an increase of 
$2,812,100 from amounts appropriated in fiscal year 2001 and an 
increase of $1,812,100 from amounts requested by the President. 
The Committee is disappointed to learn that, in preparation of 
the fiscal year 2002 budget submission, the Office of 
Management and Budget (OMB) did not base the President's 
recommended fiscal year 2002 budget for the FEC on a 
comprehensive review of FEC's resource requirements but rather 
recommended an unspecified increase of $1,000,000. The 
Committee will continue to monitor OMB's process for managing 
the preparation of the President's budget and, in particular, 
it's examination of agency programs and resource requirements.
    The Committee's recommendation includes an increase of 
$1,679,000 for personnel compensation and benefits, $708,100 
for the estimated costs of non-pay inflation, and $425,000 and 
5 FTE for the Data Systems Division to complete and support 
current and future information technology initiatives. The 
Committee has included a new general provision (Section 641) 
extending authority for FEC to assess administrative fines for 
straightforward violations of reporting deadlines; FEC's 
authority is extended from December 31, 2001, to December 31, 
2003.

                     Election Administration Reform

    The Committee notes that, as a concurrent submission 
agency, the FEC has submitted a fiscal year 2002 request of 
$47,671,000, including an increase of $2,542,600 for the Office 
of Election Administration to update and enhance Voting Systems 
Standards. The Committee supports efforts to achieve election 
administration reform and is aware of several legislative 
initiatives currently being considered by the House Committee 
on Administration. The Committee will consider appropriations 
for election administration reform when such reform measures 
become authorized.

                       FEC Resource Requirements

    The Committee continues to have overall concerns regarding 
FEC's resource requirements. The request submitted by the 
Commission for fiscal year 2002 recommended an increase of 18 
percent from fiscal year 2001 appropriated levels, well above 
the President's overall increase of 4 percent for domestic 
discretionary programs. The Committee appreciates that a 
portion of the Commission's request was targeted to election 
administration reform; nonetheless, absent this initiative, the 
FEC was requesting an increase of nearly 11 percent. The 
Committee notes that, over the past 10 years, the FEC has 
received an increase of more than 136 percent in appropriations 
and continues to question FEC's ability to efficiently manage 
its resources.
    The Committee is aware that much of FEC's workload is 
uncontrollable and independent of any actions FEC might take. 
For instance, total disbursements in federal elections were 
$3.5 billion in the 2000 election cycle which, according to FEC 
budget justification materials, has translated into an increase 
of 27 percent in documents filed since 1984 and an increase of 
400 percent in the number of transactions entered into the 
database. The Committee understands that certain factors are 
beyond FEC's control. On the other hand, much of FEC's work is 
controllable, such as the manner in which FEC processes 
filings, its methods and processes in meeting disclosure 
deadlines, and its compliance and enforcement activities. The 
Committee notes that it has supported FEC's efforts to use more 
information technology, providing approximately $26 million for 
these IT efforts over the past 7 years. The Committee is not 
convinced that the FEC has maximized the use of these IT 
resources, or the use of available technology.
    The Committee is particularly aware that, over the past ten 
years, the Office of General Counsel has received more than a 
165 percent increase in appropriations, largely based on data 
showing the growth in both internal and external enforcement 
cases and the complexity of those cases. Because of the 
confidential nature of the work conducted by the Office of 
General Counsel (OGC), it has been difficult for the Committee 
to conduct a comprehensive and thorough analysis of its 
resource requirements. The Committee is nonetheless concerned 
by certain enforcement statistics and measures of lagging 
performance, including the total number of pending cases, the 
number of inactive cases, and the number of cases closed 
because they have become ``stale''. Although the FEC maintains 
that lagging indicators reflect a lack of enforcement 
resources, the Committee has been unable to verify this 
assertion given FEC's stated need to maintain confidentiality 
of certain information, particularly involving the FEC's 
Enforcement Priority System (EPS). The Committee supports the 
need for confidentiality of EPS, but without greater specifics 
on how FEC allocates its enforcement resources and manages its 
investigations, it is difficult for the Committee to support 
significant increases in FEC's appropriation.
    The Committee is pleased with the progress FEC has made in 
regard to the recommendations put forth by the Price Waterhouse 
Coopers management and technological review. The Committee also 
believes there continue to be significant opportunities for 
improvement. The Committee looks forward to working with the 
FEC to implement these opportunities and directs the FEC to 
work with the Committee to design an analytical flow of 
information that will help the Committee to determine more 
precisely the appropriate levels of resources needed for proper 
FEC operations.

                   Federal Labor Relations Authority


                         Salaries and Expenses





Appropriation, fiscal year 2001 to date...............       $25,002,872
Budget estimate, fiscal year 2002.....................        26,378,000
Recommended in the bill...............................        26,378,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +1,375,128
    Budget Estimate, fiscal year 2002.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $26,378,000 
for the Federal Labor Relations Authority (FLRA), an increase 
of $1,375,128 above the amount appropriated in fiscal year 2001 
and the same as requested by the President.

                    General Services Administration


                         Federal Buildings Fund

Appropriation:
    Appropriation, fiscal year 2001 to date.............    $476,523,000
    Budget estimate, fiscal year 2002...................     276,400,000
    Recommended in the bill.............................     276,400,000
Bill compared with:
    Appropriation, fiscal year 2001.....................    -200,123,000
    Budget Estimate, fiscal year 2002...................................
Limitations on Availability of Revenue (not an 
    appropriation):
    Limitation on availability, fiscal year 2001 enacted 
      to date...........................................   5,983,878,000
    Limitation on availability, budget estimate, fiscal 
      year 2002.........................................   6,179,891,000
    Recommended in the bill.............................   6,133,838,000
Bill compared with:
    Availability limitation, fiscal year 2001 enacted to 
      date..............................................    +149,960,000
    Availability limitation, fiscal year 2002 estimate..     -46,053,000

                                MISSION

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

                             RECOMMENDATION

    The Committee recommends no additional direct appropriation 
into the Federal Buildings Fund, a decrease of $200,123,000 
below the fiscal year 2001 enacted level and the same as the 
President's request. The $276,400,000 listed in the table above 
references the amount included in fiscal year 2001 and made 
available on October 1, 2001, for four courthouse projects.

                      Construction and Acquisition





Limitations on Availability of Revenue (not an
 appropriation):
    Limitation on availability, fiscal year 2001            $477,676,000
 enacted to date......................................
    Limitation on availability, budget estimate,             386,289,000
 fiscal year 2002.....................................
    Recommended in the bill...........................       328,816,000
Bill compared with:
    Availability limitation, fiscal year 2001 enacted       -148,860,000
 to date..............................................
    Availability limitation, fiscal year 2002 estimate       -57,473,000


                             RECOMMENDATION

    The Committee recommends a limitation of $328,816,000 for 
construction and acquisition, a decrease of $148,860,000 below 
the fiscal year 2001 enacted level and a decrease of 
$57,473,000 below the President's request. Changes to the 
President's request include decreases of $500,000 for 
nonprospectus construction and $84,406,000 and increases of 
$4,933,000 for the Rockford, IL, courthouse project, $4,000,000 
for the Orlando, FL, courthouse project, $15,000,000 for the 
Miami, Florida, courthouse project, $500,000 for the Champlain, 
NY, border station, and $3,000,000 for the Prince Georges 
County, MD, National Center for Environmental Prediction 
project. All construction projects funded in this bill are 
subject to authorization by the Committee on Transportation and 
Infrastructure.

                      Orlando, Florida, Courthouse

    The Committee recommends an appropriation of $4,000,000 to 
complete the design of the Orlando, Florida, courthouse. The 
Committee directs the General Services Administration (GSA) to 
use this funding to redesign the courthouse so that it meets 
the functional and security needs stipulated by the courts. The 
Committee has serious concerns about the security of the 
current design. To alleviate these concerns, the courthouse 
should be located further away from Highway I-4 than 
contemplated in the current design. It also believes that a 
glass facade at this location provides an inviting target. 
Therefore, materials should be incorporated into the building 
which reduce the appearance of vulnerability. The courthouse 
should be oriented to provide security and to complement the 
historic community and the future Florida A&M; College of Law. 
Space not specifically dedicated to judicial functions should 
be minimized and designed to facilitate efficient movement of 
those using the building. The Committee expects the GSA to 
reach an agreement expeditiously with the courts on the final 
design of this project and directs that none of the funds be 
obligated until approved by the Committee.

              National Center for Environmental Prediction

    The Committee includes $3,000,000, subject to authorization 
by the Committee on Transportation and Infrastructure, to begin 
the site design and acquisition or lease acquisition of a 
replacement facility for the National Center for Environmental 
Prediction currently located in Camp Springs, MD. The General 
Services Administration is directed to follow the findings and 
conclusions in its site selection analysis to identify a 
location for this facility.

                     Courthouse Construction Costs

    The Committee remains unconvinced that the General Services 
Administration has taken all necessary and prudent steps to 
reduce its courthouse construction costs. For ten courthouse 
construction projects that are completed, or nearly completed, 
GSA has provided data to the Committee indicating an average 
courthouse construction cost of $175 per square foot. 
Information gleaned from the GSA budget justification for 
fiscal year 2002 indicates that the average per-square-foot 
construction costs for currently active courthouse projects may 
be significantly higher (as much as $250 per square foot). Such 
a potential large increase appears to be out of step with 
inflation and has not been adequately justified. The Committee 
is committed to gaining a better understanding of courthouse 
construction costs and the potential for increases in 
courthouse construction costs as well as to helping lower these 
costs.
    The Committee strongly supports the benchmarking of 
construction costs but is concerned that the ``space-type'' 
methodology being followed by GSA does not lend itself to 
external benchmarking. While adequate and meaningful cost 
comparisons among federal courthouse construction projects are 
important, the ability to compare federal costs to non-federal 
costs is equally critical. The Committee looks forward to being 
provided with a copy of the Smith Group/Hanscomb analysis that 
is currently underway for verifying the construction costs for 
five different types of courthouse spaces and for identifying 
the breakout between the construction costs for the core and 
shell elements and for the tenant improvement elements of the 
space types. Nevertheless, this analysis will not allow an easy 
or meaningful comparisons among federal and state courthouse 
construction projects.
    Therefore, the Committee directs the GSA to conduct a 
comparative analysis of its courthouse construction costs with 
an appropriate representative sampling of state courthouse 
construction costs and to provide this analysis to the 
Committee 120 days after enactment of this Act. This analysis 
should contain externally derived cost estimates from the 
private sector. Accompanying this analysis is to be a 
quantification and discussion, if applicable, of specific 
reasons why federal courthouse construction costs exceed state 
courthouse construction costs.

                       MIAMI, FLORIDA, COURTHOUSE

    The Committee directs the General Services Administration 
to make every effort to include minority contractors, vendors, 
and employees in every phase of the design, construction, and 
operation of the new courthouse to be constructed in Miami, 
Florida. The Committee further directs the General Services 
Administration to provide a report by February 1, 2002, on its 
plans for achieving this essential objective and its progress 
to date.

                SOLOMON BUILDING, CHATTANOOGA, TENNESSEE

    The Committee is aware that a recent feasibility study of 
the space requirements associated with the Solomon Federal 
Building recommends that GSA acquire the old post office 
building, renovate the Solomon Federal Building, and develop an 
adjoining addition to the Solomon Building to provide parking 
and expansion. Given the time-sensitive nature of the optimal 
site acquisition, the Committee strongly encourages GSA move 
forward quickly with plans to acquire land adjacent to the 
Solomon Building. The Committee also fully supports actions to 
acquire the old post office building from the Tennessee Valley 
Authority as part of its debt servicing arrangements. The 
Committee is concerned to learn that the construction aspect of 
the project may be delayed and urges GSA to work with the 
courts to reestablish as early a construction start as is 
practicable.

                   HAMMOND, INDIANA, FEDERAL BUILDING

    The Committee is very concerned about the added costs and 
extensive delays that have plagued the construction of a new 
federal building in Hammond, Indiana. The needs for federal 
facilities in northwestern Indiana are not being met because 
the new federal building being constructed by GSA in Hammond, 
originally scheduled for completion in November 1999, remains 
unfinished and unoccupied. The Committee directs GSA to apply 
all necessary resources and priority to immediately resolve all 
outstanding issues and to complete the project by no later than 
September 8, 2001; with occupancy immediately thereafter. The 
Committee is extremely concerned with reports that extensive 
project delays have been caused not only by major issues but 
also by flaws in expensive finishing materials. The Committee 
directs GSA to provide a report to the House Committee on 
Appropriations within 90 days of the enactment of this Act on 
all steps it is taking to ensure that this and other federal 
building construction projects remain on schedule, and 
especially to ensure that aesthetic factors do not impede 
progress or completion.

                        TOLEDO, OHIO, COURTHOUSE

    The Committee is aware of a recent land exchange between 
the City of Toledo and GSA that provided GSA with a site 
eminently suitable for constructing a new federal plaza to 
include a new federal building and courthouse. GSA is also in 
the process of completing an 11(b) Report of Building Project 
Survey to identify and characterize the needs for federal 
construction in the Toledo area. The Committee urges GSA to 
move forward on this construction project with all due speed 
and to take factors such as site availability and multi-purpose 
space requirements into serious consideration in formulating 
its construction priorities for this and coming years.

                  CHAMPLAIN, NEW YORK, BORDER CROSSING

    The Committee is aware of the difficult and dangerous 
situation that exists at the Champlain, New York, border 
crossing. Growth in commercial traffic and changes in 
inspection procedures have contributed to severe backups, a 
growing number of accidents, significant increases in air 
pollution, and a concern that the increasing delays associated 
with the Champlain crossing are having a detrimental impact on 
the all-important U.S.-Canadian trade relationship along that 
portion of the border. The Committee recommends an 
appropriation of $500,000, subject to authorization, to assist 
GSA in meeting the site and design needs of the project to 
vastly improve the Champlain border station and crossing. The 
Committee is aware that $2,800,000 was appropriated for fiscal 
year 2001 through Public Law 106-346 and that negotiations are 
underway to allow the transfer of these funds from the State of 
New York to GSA for a portion of the site and design work. In 
addition, the State of New York has indicated that it will 
provide an additional $500,000. The Committee expects that 
these funds, together with the $500,000 appropriated in this 
bill, will be sufficient to complete the site and design work 
for the project, providing a total of $3,300,000 in Federal 
funds and $500,000 in State funds. The Committee further urges 
GSA to submit with all due speed a site and design prospectus 
to the appropriate authorizing committees so that these funds 
can be quickly applied to the much needed improvements of the 
Champlain, NY, border requirements.

                     BROOKLYN, NEW YORK, COURTHOUSE

    The Committee recognizes the economic prudence of building 
out the remaining additional courtrooms and chambers needed to 
complete the district courthouse in Brooklyn, NY, at this time. 
The Committee has approved an appropriation of $3,361,000 in 
this bill and expects that design of these courtrooms and 
chambers shall begin. Further, the Committee urges GSA to seek 
the necessary funding to complete this project in a timely 
manner.

                 CENSUS FACILITIES, SUITLAND, MARYLAND

    The Committee has included $2,813,000 for Census Bureau 
facilities in Suitland, Maryland, within the construction and 
acquisition activity. These funds, together with the requested 
reprogramming of $5,200,000 from the repairs and alterations 
activity hereby approved, are sufficient to design one new 
building for the Census Bureau at Suitland. The House Committee 
on Appropriations understands that the Committee on 
Transportation and Infrastructure is on the verge of 
authorizing $16,200,000 for the design of two buildings for the 
Census Bureau at Suitland and that the establishment of two 
buildings for the Census is now the preferred alternative. The 
House Committee on Appropriations is also aware of discussions 
and negotiations between GSA and Census in support of the 
project. The Committee anticipates that the Agencies involved 
will be able to resolve how funding might be allocated to 
enable the design work to proceed on both buildings.

                   SAN DIEGO, CALIFORNIA, COURTHOUSE

    The Committee is aware of plans for constructing a new 
courthouse in San Diego next to the current courthouse and the 
need for repairing the current courthouse. $15,400,000 was 
included in the FY 1999 bill for acquisition of a site for the 
new courthouse. $13,070,000 has been included in this bill, as 
proposed by the President, for repairing the current 
courthouse. The House Committee on Appropriations understands 
that the Committee on Transportation and Infrastructure is on 
the verge of authorizing $14,337,000 for the design of the new 
courthouse. The Committee urges GSA to move forward 
expeditiously to meet the judiciary space needs efficiently and 
effectively. The Committee is also aware that there are 
negotiations currently underway regarding historical issues 
with the property and urges GSA to expeditiously complete these 
negotiations.

                        Repairs and Alterations





Limitations on Availability of Revenue (not an
 appropriation):
    Limitation on availability, fiscal year 2001            $681,613,000
 enacted to date......................................
    Limitation on availability, budget estimate,             826,676,000
 fiscal year 2002.....................................
    Recommended in the bill...........................       826,676,000
Bill compared with:
    Availability limitation, fiscal year 2001 enacted       +145,063,000
 to date..............................................
    Availability limitation, fiscal year 2002 estimate  ................


                             RECOMMENDATION

    The Committee recommends a limitation of $826,676,000 for 
repairs and alterations, an increase of $145,063,000 above the 
fiscal year 2001 enacted level and the same as the budget 
request.

                       BOW BUILDING, CANTON, OHIO

    Within the amount provided for the basic repair program the 
Committee understands that GSA will spend $500,000 on repairing 
the exterior of the Bow Building in Canton, Ohio. The Committee 
is further aware that GSA recently completed a modernization 
study pursuant to a House Resolution and encourages GSA to move 
forward with the modernization project.

                         PROJECT PRIORITIZATION

    The Committee is concerned that the methodology, its 
application, or the associated criteria used by the GSA and the 
Administration to develop the priority listing of repair and 
alteration projects contained in the President's budget request 
may be flawed. This concern is based on a possible geographic 
bias, the continuing exclusion of the much-needed repair work 
at 300 North Los Angeles Boulevard in California, and 
uncertainty about the weights assigned the 5 criteria used for 
assessing and ranking projects. The failure of the 300 North 
Los Angeles Boulevard Federal Building repair project to be 
included in the President's budget request, despite serious and 
extensive public health and safety problems (unmitigated 
seismic risks, inadequate venting and exiting, fire and 
disability code violations, etc.), suggests that insufficient 
weight is being given to the physical urgency and public 
safety.
    Therefore, the Committee directs GSA to provide a report 
120 days after enactment of this Act that includes (1) the 
fiscal year 2002 guidance sent to the GSA regions as to how GSA 
repair and alteration projects will be ranked, what criteria 
will be used, how each criterion is to be evaluated, and what 
weight is to be assigned each criterion; and (2) the individual 
rankings (total ranking as well as specific criteria ranking) 
of the proposed fiscal year 2002 projects submitted by the GSA 
regions to GSA headquarters and by GSA headquarters to the 
Office of Management and Budget.

                    Installment Acquisition Payments





Limitations on Availability of Revenue (not an
 appropriation):
    Limitation on availability, fiscal year 2001 to         $185,369,000
 date.................................................
    Limitation on availability, budget estimate,             186,427,000
 fiscal year 2002.....................................
    Recommended in the bill...........................       186,427,000
Bill compared with:
    Availability limitation, fiscal year 2001 to date.        +1,058,000
    Availability limitation, fiscal year 2002 estimate  ................


                             RECOMMENDATION

    The Committee recommends a limitation of $186,427,000 for 
installation acquisition payments, an increase of $1,058,000 
above the fiscal year 2001 enacted level and the same as the 
President's request.

                            Rental of Space





Limitations on Availability of Revenue (not an
 appropriation):
    Limitation on availability, fiscal year 2001 to       $2,943,854,000
 date.................................................
    Limitation on availability, budget estimate,           2,959,550,000
 fiscal year 2002.....................................
    Recommended in the bill...........................     2,959,550,000
Bill compared with:
    Availability limitation, fiscal year 2001 to date.       +15,696,000
    Availability limitation, fiscal year 2002 estimate  ................


                             RECOMMENDATION

    The Committee recommends a limitation of $2,959,550,000 for 
rental of space, an increase of $15,696,000 above the fiscal 
year 2001 enacted level and the same as the President's 
request.

                          Building Operations





Limitations on Availability of Revenue (not an
 appropriation):
    Limitation on availability, fiscal year 2001 to       $1,624,771,000
 date.................................................
    Limitation on availability, budget estimate,           1,748,949,000
 fiscal year 2002.....................................
    Recommended in the bill...........................     1,760,369,000
Bill compared with:
    Availability limitation, fiscal year 2001 to date.      +135,598,000
    Availability limitation, fiscal year 2002 estimate       +11,420,000


                             RECOMMENDATION

    The Committee recommends a limitation of $1,760,369,000 for 
building operations, an increase of $135,598,000 above the 
fiscal year 2001 enacted level and an increase of $11,420,000 
above the President's request. The increase above the 
President's request consists of $10,970,000 to cover a portion 
of estimated non-pay inflation costs and $450,000 for a study 
of hurricane risks and mitigation strategies in the southeast. 
In providing only a portion of the increase needed to cover the 
non-pay inflation in building operations, the Committee 
encourages GSA to seriously consider absorbing the shortfall in 
such activities as cleaning, maintenance, other building 
services, and staff support (especially reducing or eliminating 
the funding for the proposed new environmental audits). The 
Committee is aware of a memorandum of understanding between GSA 
and the Geothermal Heat Pump Consortium and urges GSA to 
continue exploring and evaluating the energy efficient and cost 
effective use of geothermal heat pumps in federal buildings. 
The Committee directs the General Services Administration to 
work with the State Department to review the decision to 
consolidate warehouse space along the Southwest border. The 
Committee directs the General Services Administration to report 
on the benefits of other locations.

            NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

    The Committee directs GSA to work closely with the National 
Oceanic and Atmospheric Administration, the University of 
Oklahoma, and all other interested parties regarding the much-
needed new facilities for NOAA's National Serve Storm 
Laboratory and Storm Prediction Center, for which design funds 
were appropriated in the last Congress. Due to the intended co-
location of the NOAA facility with related programs at the 
university, GSA is particularly directed to help identify the 
necessary costs that are beyond those of standard-design 
federal offices.

                         TELECOMMUTING/TELEWORK

    The Committee is strongly supportive of the appropriate and 
effective use of telecommuting, including utilization of the 
GSA telecenters. Currently, the GSA telecenters are operating 
at about 50 percent of their full capacity and GSA is 
subsidizing operating costs not covered by user fees. To 
facilitate federal employee awareness and utilization of 
federal telecenters, GSA is directed to increase its marketing 
of the telecenters and to develop a business case for a pilot 
project that would allow a 60-day free trial period for certain 
federal employees to use the telecenters. The federal employees 
eligible for participation in the 60-day free trial period are 
to be those federal employees that are eligible for telework, 
that do not currently use the telecenters, and whose agencies 
have sufficient funds to cover the user fees if the employee 
elects to continue using the telecenter after the trial period. 
The business case is to be submitted to the House Committee on 
Appropriations within 60 days of enactment; the pilot program 
should be implemented immediately, if warranted.
    The Committee further directs GSA to prepare and deliver to 
the Committee 90 days after enactment of this Act a report 
evaluating the costs (actual costs on a per-worker basis based 
on historical data) of providing telecenters in comparison to 
the costs of establishing and operating a workplace within a 
telecommuter's home, and the other relative merits of each 
approach.
    The Committee further directs GSA to evaluate the needs and 
opportunities for establishing a telecenter to serve the Route 
355/I-270 corridor and a telecenter to serve the Georgia/New 
Hampshire Avenue corridor in Montgomery County, Maryland, to 
include this evaluation in the cost evaluation report, and to 
proceed with establishing both or either of these centers if 
warranted.

                   HURRICANE THREATS IN THE SOUTHEAST

    The Committee is concerned about the risks to federal 
buildings in the southeastern United States from damaging 
hurricanes. The Committee has provided $450,000 for a study to 
assess the risk of hurricane damage to federal buildings in the 
southeast, to ascertain what pre-disaster hurricane mitigation 
strategies are most appropriate, to quantitatively characterize 
the current mitigation strategy costs and benefits, and to 
determine the extent to which additional measures should be 
taken as well as associated implementation costs. The study is 
to be submitted to the House Committee on Appropriations six 
months after the enactment of this Act.

                   CONSUMER PRODUCT SAFETY COMMISSION

    The Committee is very supportive of GSA's continued efforts 
to assist the Consumer Product Safety Commission (CPSC) with 
the development of their master plan. The Committee further 
understands that the CPSC has contributed $50,000 from its 
fiscal year 1999 appropriation for an assessment to determine 
the modernization needs of CPSC's laboratories in Gaithersburg, 
Maryland. CPSC also hopes, as part of its master plan, to 
reduce waste and inefficiency by co-locating a sample warehouse 
on its Gaithersburg facilities. In recognition of the important 
service that CPSC offers to the American public, the Committee 
encourages GSA to continue to work with CPSC to finalize a 
master plan and work toward its implementation.

                USGS FACILITIES, SANTA CRUZ, CALIFORNIA

    The Committee strongly encourage GSA to work with the U.S. 
Geological Survey (USGS) and the University of California at 
Santa Cruz to fashion a plan to address the facilities needs of 
the USGS Western Coastal and Marine Geology Program. The 
Committee hopes that such a plan will provide the best possible 
financial and programmatic benefits to the Federal Government 
and the USGS over an extended time frame in terms of facilities 
construction, rental, and relocation costs. The Committee urges 
GSA to consider innovative and creative facilities construction 
alternatives that would give the Federal government, and the 
USGS, the greatest possible economic benefit, including a rent-
free option exclusive of maintenance and operation costs. Part 
of such a facilities plan is predicated on the USGS adequately 
defining its coastal and marine facility needs and appropriate 
Congressional authorization. The GSA should report back to the 
Committee no later than 90 days after enactment of this Act.

                         Policy and Operations





Appropriation, fiscal year 2001 to date...............      $137,406,000
Budget estimate, fiscal year 2002.....................       138,499,000
Recommended in the bill...............................       137,515,000
Bill compared with:
    Appropriation, fiscal year 2001...................          +109,000
    Budget Estimate, fiscal year 2002.................          -984,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $137,515,000 
for Policy and Operations, an increase of $109,000 above the 
fiscal year 2001 enacted level and a decrease of $984,000 below 
the President's request. Changes to the President's request 
include decreases of $1,000,000 for the Federal Computer 
Incident Response Capability, $1,000,000 for activities 
associated with the Lorton Complex (leaving $3,822,000 
appropriated in fiscal year 2002 for this effort), and $500,000 
for activities associated with Governors Island (leaving 
$8,082,000 appropriated in fiscal year 2002 for this effort) as 
well as an increase of $1,516,000 for non-pay inflation.
    The fiscal year 2002 funding level for the public key 
infrastructure (PKI) effort is $3,500,000, the same level as 
proposed in the President's budget. In materials supplied to 
the Committee in response to questions for the record, GSA 
stated that the effort was focused on deploying commercial PKI 
in a Federal environment. The Committee remains concerned that 
this deployment, as presented, may be more appropriately 
conducted by (and funded in the accounts of) those individual 
federal agencies who require secure ways of conducting 
transactions or exchanging information electronically. 
Therefore, GSA is directed to provide a report to the House 
Committee on Appropriations 90 days after enactment of this Act 
that fully explains the importance and benefits from managing 
this effort centrally within the federal government, quantifies 
the extent to which commercially developed PKI is already being 
deployed in the federal government, and that fully describes 
industry/government PKI relations, partnerships, and 
collaborations.
    The fiscal year 2002 funding level for the Federal computer 
incident response capability is $9,982,000, an increase of 
$2,000,000 above the fiscal year 2002 funding level and a 
decrease of $1,000,000 below the level requested in the 
President's budget. The Committee is supportive of the 
decentralized, distributed philosophy for computer incident 
detection and response that is inherent in the current federal 
effort and that appears to allow appropriate agency control and 
private sector involvement.

                    Public Service Recognition Week

    The Committee recognizes that Public Service Recognition 
Week, a program of the Public Employees Roundtable, has 
educated America about the value of the career workforce, which 
carries out the daily operations of government. This program, 
which has existed for over 10 years, plays an important role in 
educating our nation's youth by providing them with timely 
information about their government. The Committee urges the 
General Services Administration to support the mission of the 
Public Employees Roundtable and provide $100,000 in 
administrative and logistical assistance to Public Service 
Recognition Week activities, the same level as was provided for 
fiscal year 2001.

                      Office of Inspector General





Appropriation, fiscal year 2001 to date...............       $34,444,000
Budget estimate, fiscal year 2002.....................        36,025,000
Recommended in the bill...............................        36,290,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +1,846,000
    Budget Estimate, fiscal year 2002.................          +265,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $36,290,000 
for the Office of Inspector General, an increase of $1,846,000 
above the fiscal year 2001 enacted level and an increase of 
$265,000 above the President's request. The increase above the 
President's request is for non-pay inflation.

                       Electronic Government Fund





Appropriation, fiscal year 2001 to date...............  ................
Budget estimate, fiscal year 2002.....................       $20,000,000
Recommended in the bill...............................         5,000,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +5,000,000
    Budget Estimate, fiscal year 2002.................       -15,000,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $5,000,000 for 
the Electronic Government Fund, an increase of $5,000,000 above 
the level that was provided for fiscal year 2001 and a decrease 
of $15,000,000 below the President's request. The Committee 
supports, in general, the purpose of the fund and recommends 
the Administration work with the House Committee on Government 
Reform to clarify its authorization. The Committee would 
encourage the use of these funds for interagency electronic 
government projects for which matching funds are provided. The 
Committee is aware of interagency groups, such as the Chief 
Information Officer (CIO) Council chaired by OMB, that have 
wide experience and expertise in electronic government and 
information technology areas and suggests that these groups 
could make key contributions in the review and selection of 
projects.

           Allowances and Office Staff for Former Presidents





Appropriation, fiscal year 2001 to date...............        $2,511,000
Budget estimate, fiscal year 2002.....................         3,552,000
Recommended in the bill...............................         3,196,000
Bill compared with:
    Appropriation, fiscal year 2001...................          +685,000
    Budget Estimate, fiscal year 2002.................          -356,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $3,196,000 for 
allowances and office staff of former Presidents, an increase 
of $685,000 above the fiscal year 2001 enacted level and a 
decrease of $356,000 below the President's request. Changes to 
the President's request include a decrease of $176,000 for an 
unspecified increase and a decrease of $180,000 as a reduction 
in office rent for former President Reagan.

                        FY 2002 BUDGET ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                            Ford     Carter    Reagan     Bush     Clinton   Widows      Total
----------------------------------------------------------------------------------------------------------------
Personnel Compensation..................        96        96        96        96       150         0         534
Personnel Benefits......................        24         6        24        35        60         0         149
Benefits for Former Personnel:
    Pensions............................       166       166       166       166       166        20         850
    Travel..............................        50         2        16        57        57         0         182
Rental Payments to GSA..................       110       102       177       169       354         0         912
Communications, Utilities and
 Miscellaneous charges:
    Telephone...........................        21        25        15        14        28         0         103
    Postage.............................         6        20        10        14        22         2          74
Printing................................         0         5        12        12        15         0          44
Other Services..........................        11        71        15        13        80         0         190
Supplies & Materials....................         9         6        20        11        24         0          70
Equipment...............................         4         9         3        36        36         0          88
                                         -----------------------------------------------------------------------
      Total Obligations.................       497       508       554       623       992        22       3,196
----------------------------------------------------------------------------------------------------------------

          General Provisions--General Services Administration

    Section 401. The Committee continues the provision that 
provides that costs included in rent received from government 
corporations for operation, protection, maintenance, upkeep, 
repair and improvement shall be credited to the Federal 
Buildings Fund.
    Section 402. The Committee continues the provision 
providing authority for the use of funds for the hire of motor 
vehicles.
    Section 403. The Committee continues the provision 
providing that funds made available for activities of the 
Federal Buildings Fund may be transferred between 
appropriations with advance approval of the Congress.
    Section 404. The Committee continues the provision 
prohibiting the use of funds for developing courthouse 
construction requests that do not meet GSA standards and the 
priorities of the Judicial Conference.
    Section 405. The Committee continues the provision 
providing that no funds may be used to increase the amount of 
occupiable square feet, provide cleaning services, security 
enhancements, or any other service usually provided, to any 
agency which does not pay the requested rent.
    Section 406. The Committee continues the provision 
providing for Information Technology Fund repayment from 
sponsored projects that realize program savings.
    Section 407. The Committee continues the provision that 
permits GSA to pay small claims (up to $250,000) made against 
the government.
    Section 408. The Committee recommends a new provision 
requiring the General Services Administration to increase its 
fiscal year 2002 expenditures for purchasing alternative fuel 
vehicles by $5,000,000 above its fiscal year 2001 expenditures.

                     Merit Systems Protection Board


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............       $29,372,239
Budget estimate, fiscal year 2002.....................        30,375,000
Recommended in the bill...............................        30,375,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +1,002,761
    Budget Estimate, fiscal year 2002.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $30,375,000 
for the Merit Systems Protection Board (MSPB), an increase of 
$1,002,761 above the amount appropriated in fiscal year 2001 
and the same as requested by the President.

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


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




Appropriation, fiscal year to date....................        $1,996,000
Budget estimate, fiscal year 2002.....................         1,746,000
Recommended in the bill...............................  ................
Bill compared with:
    Appropriation, fiscal year 2001...................        -1,996,000
    Budget Estimate, fiscal year 2002.................        -1,746,000


                                MISSION

    Public Law 102-259 established the Morris K. Udall 
Scholarship and Excellence in National Environmental Policy 
Trust Fund. Federal payments to that fund are invested in 
Treasury securities. Interest earnings from the investments are 
used to carry out the activities of the Morris K. Udall 
Scholarship and Excellence in National Environmental Policy 
Foundation. The Foundation awards scholarships, fellowships, 
and grants and funds activities of the Udall Center for Studies 
in Public Policy.

                             RECOMMENDATION

    The Committee recommends no appropriation for this account, 
a decrease of $1,996,000 below the fiscal year 2001 enacted 
level and a decrease of $1,746,000 below the President's 
request. Funding for activities associated with this account is 
provided in a new account, Morris K. Udall Scholarship and 
Excellence in National Environmental Policy Trust Fund.

                        Native Nations Institute





Appropriation, fiscal year 2001 to date...............  ................
Budget estimate, fiscal year 2002.....................          $250,000
Recommended in the bill...............................  ................
Bill compared with:
    Appropriation, fiscal year 2001...................  ................
    Budget Estimate, fiscal year 2002.................          -250,000


                                MISSION

    Public Law 106-653 (section 817) established the Native 
Nations Institute as part of the Morris K. Udall Scholarship 
and Excellence in National Environmental Policy Foundation. The 
purpose of the Native Nations Institute is to provide 
management and leadership training to Native American tribal 
leaders.

                             RECOMMENDATION

    The Committee recommends no appropriation for the Native 
Nations Institute, the same as the fiscal year 2001 enacted 
level and a decrease of $250,000 below the President's request. 
The potential for funding activities associated with this 
proposed account has been made permissible by transfer from a 
new account, Morris K. Udall Scholarship and Excellence in 
National Environmental Policy Trust Fund.

 Morris K. Udall Scholarship and Excellence in National Environmental 
                           Policy Trust Fund





Appropriation, fiscal year 2001 to date...............  ................
Budget estimate, fiscal year 2002.....................  ................
Recommended in the bill...............................        $2,500,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +2,500,000
    Budget Estimate, fiscal year 2002.................        +2,500,000


                                MISSION

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

                             RECOMMENDATION

    The Committee establishes a new appropriation in lieu of 
the Federal Payment to Morris K. Udall Scholarship and 
Excellence in National Environmental Policy Foundation account 
and the proposed Native Nations Institute account. The 
Committee recommends an appropriation of $2,500,000 for these 
activities of the Morris K. Udall Foundation, an increase of 
$504,000 above the fiscal year 2001 enacted level for the Trust 
Fund and an increase of $504,000 above the President's combined 
request for the Trust Fund and the proposed Native Nations 
Institute account. The Committee includes language to allow up 
to 60 percent of the appropriation to be used for the expenses 
of the Native Nations Institute. The Committee also includes 
language requiring the Foundation to report to the Committee on 
the amount of funding, if any, transferred from the Trust Fund 
for the Native Nations Institute, and directs that this report 
include an itemization of planned Native Nations Institute 
expenditures for fiscal year 2002. The Committee further 
directs the Foundation to describe as part of the report its 
justification for such a transfer. Future budget justifications 
submitted to Congress regarding this effort are to contain 
detailed information on the actual expenditures of past years 
as well as detailed information on planned expenditures for the 
current and budget years.

                 Environmental Dispute Resolution Fund





Appropriation, fiscal year 2001 to date...............        $1,248,000
Budget estimate, fiscal year 2002.....................         1,309,000
Recommended in the bill...............................         1,309,000
Bill compared with:
    Appropriation, fiscal year 2001...................           +61,000
    Budget Estimate, fiscal year 2002.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $1,309,000 for 
the Environmental Dispute Resolution Fund, an increase of 
$61,000 above the fiscal year 2001 enacted level and the same 
as the President's request.

              National Archives and Records Administration


                           OPERATING EXPENSES




Appropriation, fiscal year 2001 to date...............      $208,946,000
Budget estimate, fiscal year 2002.....................       244,247,000
Recommended in the bill...............................       243,547,000
Bill compared with:
    Appropriation, fiscal year 2001...................       +34,601,000
    Budget Estimate, fiscal year 2002.................          -700,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $243,547,000 
for the operating expenses of the National Archives and Records 
Administration, an increase of $34,601,000 above the fiscal 
year 2001 enacted level and a decrease of $700,000 below the 
President's fiscal year 2002 budget request. Changes to the 
President's budget request include decreases of $1,000,000 for 
the electronic records archive and $1,000,000 for the 
development of an integrated website as well as increases of 
$850,000 for non-pay inflation and $450,000 for efforts to 
preserve and improve access to the records of the Freedmen's 
Bureau. The Committee also has recommended identification of 
funding for the electronic records archive in the bill and made 
a portion of the funding for this effort available for three 
years.

                       ELECTRONIC RECORDS ARCHIVE

    The Committee recommends a funding level of $22,302,000 for 
the electronic records archive, an increase of $19,000,000 
above the level provided for fiscal year 2001 and a decrease of 
$1,000,000 less than the President's request. The Committee 
also recommends making a portion of the funding available for 
three years.
    The Committee is aware of the importance of this project 
and its potential impact on the entire Federal government. The 
project also involves substantial risks due to the magnitude of 
the effort, the immaturity of the technology, the limited 
information available on the volumes and types of agency 
electronic records, and the lack of related management and 
technical experience within NARA. The Committee is acutely 
aware of the potential pitfalls associated with the effort, as 
a result of these risks and based on previous experience of the 
Committee with large information technology efforts.
    Therefore, the Committee directs NARA to use a portion of 
the fiscal year 2002 funding to assess the feasibility of 
exploring alternative solutions based on existing technologies 
and commercial-off-the-shelf applications and to provide a 
report on this effort to the House Committee on Appropriations 
by July 30, 2002.
    NARA is also directed (1) to develop a fiscal year 2002 
research plan and to submit the plan to the Committee 120 days 
after enactment of this Act, (2) to develop a plan to identify 
and periodically assess the volumes and types of agency 
electronic records to be accessioned, preserved, and made 
accessible and to submit the plan to the Committee 120 days 
after enactment of this Act, and (3) to work with the Library 
of Congress and other Federal information technology groups to 
ensure that the proposed information technologies are developed 
in conjunction with the National Digital Information 
Infrastructure and Preservation program and that the proposed 
systems development follows all appropriate capital planning 
guidance for information technologies.

                           Freedmen's Bureau

    The Committee has provided an increase of $450,000 for 
preservation and access activities associated with the records 
of the Freedmen's Bureau, providing a total fiscal year 2002 
base funding level of at least $600,000 for this effort. These 
records are the best documentation of the greatest social 
undertaking in this country's history. These funds are to be 
used to help microfilm the records, assist researchers in using 
related documents, provide better access to record inventories, 
and create partnerships for developing indexes.

                        Repairs and Restoration





Appropriation, fiscal year 2001 to date...............      $101,536,000
Budget estimate, fiscal year 2002.....................        10,643,000
Recommended in the bill...............................        10,643,000
Bill compared with:
    Appropriation, fiscal year 2001...................       -90,893,000
    Budget Estimate, fiscal year 2002.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $10,643,000 
for repairs and restoration, a decrease of $90,893,000 below 
the fiscal year 2001 enacted level and the same as the 
President's request.

        National Historical Publications and Records Commission


                             GRANTS PROGRAM




Appropriation, fiscal year 2001 to date...............        $6,436,000
Budget estimate, fiscal year 2002.....................         4,436,000
Recommended in the bill...............................        10,000,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +3,564,000
    Budget Estimate, fiscal year 2002.................        +5,564,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $10,000,000 
for the National Historical Publications and Research 
Commission grants program, an increase of $3,564,000 above the 
fiscal year 2001 enacted level and an increase of $5,564,000 
above the President's request. The Committee has included 
$1,700,000 for a grant to the Oklahoma Centennial Commission to 
assist with memorializing the Oklahoma Land Run as part of the 
Oklahoma Centennial celebration and $1,000,000 for a grant to 
the Boston Public Library for preserving and enhancing its 
holdings of materials related to John Adams.

                      Office of Government Ethics


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............        $9,663,000
Budget estimate, fiscal year 2002.....................        10,060,000
Recommended in the bill...............................        10,060,000
Bill compared with:
    Appropriation, fiscal year 2001...................          +397,000
    Budget Estimate, fiscal year 2002.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $10,060,000 
for the Office of Government Ethics, the same amount requested 
by the President and $397,000 above the fiscal year 2001 
appropriated level.

                     Office of Personnel Management


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............       $93,888,000
Budget estimate, fiscal year 2002.....................        99,036,000
Recommended in the bill...............................        99,036,000
Bill compared with:
    Appropriation, fiscal year 2001...................        +5,148,000
    Budget Estimate, fiscal year 2002.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $99,036,000 
for the Office of Personnel Management, an increase of 
$5,148,000 above the amount appropriated in fiscal year 2001 
and the same as requested by the President.

                          FEDERAL WAGE SYSTEM

    The Federal Government currently pays approximately 225,000 
blue collar craft and trades workers under the Federal Wage 
System (FWS). Section 612 of this bill caps the 2002 pay raise 
which FWS workers can receive at that provided to General 
Schedule (GS) employees. However, many FWS workers may receive 
less than the GS raise, as a result of FWS surveys. The 
Committee therefore directs the Office of Personnel Management 
to submit a report within 120 days of enactment on the cost of 
administering the FWS, including the cost of data collection, 
the cost of analyzing FWS data and its transformation into FWS 
pay lines and wage schedules, the cost of operating the Federal 
Prevailing Rate Advisory Committee, and the number of FWS 
workers in each Federal agency. This information will help to 
determine whether the data used by the FWS justifies its cost, 
and whether other mechanisms for setting federal blue collar 
worker pay would be more effective.

            FEDERAL WAGE GRADE SYSTEM FOR BUREAU OF PRISIONS

    The Committee is concerned that the wage surveys utilized 
in determining the cost of labor for federal wage grade 
positions are inadequate with respect to Bureau of Prisons 
employees. Wage grade employees in the Bureau of Prisons are 
often in ``mixed jobs'' which have no private sector 
equivalent. These employees are hired for one primary skill, 
but they also are trained as security officers and perform 
security functions in conjunction with their other duties. The 
Committee directs OPM to review and report to Congress on how 
the current survey instrument quantifies the cost of labor with 
respect to mixed wage grade jobs at the Bureau of Prisons. The 
report should include a comparison of the average wage rates 
for employees at each federal prison facility, a review of any 
differences in how the surveys are conducted in different wage 
areas, and a set of recommendations for determining how to 
quantify the cost of labor in a given wage area if there are no 
private sector comparables. The report is due no later than 90 
days after the date of enactment of this Act.

      WAGE GRADE FEDERAL EMPLOYEES IN MONTEREY COUNTY, CALIFORNIA

    It is the Committee's understanding that on November 8, 
1999, and again on February 24, 2000, the Salinas-Monterey 
Local Wage Grade Survey Committee recommended that the Salinas-
Monterey Wage Area be realigned with San Francisco/San Jose/
Santa Cruz wage area, based in part upon their finding that 
Monterey County GS civil service employees are part of the San 
Francisco/San Jose locality pay area. The Committee directs OPM 
to report to the Committee its intention with regard to 
implementing this recommendation.

                      Office of Inspector General





Appropriation, fiscal year 2001 to date...............        $1,357,000
Budget estimate, fiscal year 2002.....................         1,398,000
Recommended in the bill...............................         1,398,000
Bill compared with:
    Appropriation, fiscal year 2001...................           +41,000
    Budget Estimate, fiscal year 2002.................  ................


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $1,398,000 for 
the Office of Inspector General of the Office of Personnel 
Management, an increase of $41,000 above the amount 
appropriated in fiscal year 2001 and the same as requested by 
the President.

      Government Payment for Annuitants, Employees Health Benefits





Appropriation, fiscal year 2001 to date...............    $5,427,166,000
Budget estimate, fiscal year 2002.....................     6,145,000,000
Recommended in the bill...............................     6,145,000,000
Bill compared with:
    Appropriation, fiscal year 2001...................      +717,834,000
    Budget Estimate, fiscal year 2002.................  ................


                                MISSION

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

      Government Payment for Annuitants, Employees Life Insurance





Appropriation, fiscal year 2001 to date...............       $35,000,000
Budget estimate, fiscal year 2002.....................        33,000,000
Recommended in the bill...............................        33,000,000
Bill compared with:
    Appropriation, fiscal year 2001...................        -2,000,000
    Budget Estimate, fiscal year 2002.................  ................


                                MISSION

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

        Payment to Civil Service Retirement and Disability Fund





Appropriation, fiscal year 2001 to date...............    $8,940,051,000
Budget estimate, fiscal year 2002.....................     9,229,000,000
Recommended in the bill...............................     9,229,000,000
Bill compared with:
    Appropriation, fiscal year 2001...................      +288,949,000
    Budget Estimate, fiscal year 2002.................  ................


                                MISSION

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

                       Office of Special Counsel


                         SALARIES AND EXPENSES




Appropriation, fiscal year 2001 to date...............       $11,122,000
Budget estimate, fiscal year 2002.....................        11,784,000
Recommended in the bill...............................        11,823,000
Bill compared with:
    Appropriation, fiscal year 2001...................          +701,000
    Budget Estimate, fiscal year 2002.................           +39,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $11,823,000 
for the Office of Special Counsel, an increase of $701,000 from 
amounts appropriated in fiscal year 2001 and an increase of 
$39,000 from amounts requested by the President. The 
Committee's recommendation includes an increase of $39,000 for 
non-pay inflation.

                        United States Tax Court


                         SALARIES AND EXPENSES



Appropriation, fiscal year 2001 to date...............       $37,223,000
Budget estimate, fiscal year 2002.....................        37,305,000
Recommended in the bill...............................        37,621,000
Bill compared with:
    Appropriation, fiscal year 2001...................          +398,000
    Budget Estimate, fiscal year 2002.................          +316,000


                                MISSION

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

                             RECOMMENDATION

    The Committee recommends an appropriation of $37,621,000 
for the U.S. Tax Court, an increase of $398,000 from amounts 
appropriated in fiscal year 2001 and an increase of $316,000 
from amounts requested by the President. The Committee's 
recommendation includes an increase of $316,000 for non-pay 
inflation.

                      TITLE V--GENERAL PROVISIONS


                                This Act

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

              TITLE VI--GOVERNMENTWIDE GENERAL PROVISIONS


                Departments, Agencies, and Corporations

    Section 601. The Committee continues the provision 
authorizing agencies to pay costs of travel to the United 
States for the immediate families of Federal employees assigned 
to foreign duty in the event of a death or a life threatening 
illness of the employee.
    Section 602. The Committee continues the provision 
requiring agencies to administer a policy designed to ensure 
that all of its workplaces are free from the illegal use of 
controlled substances.
    Section 603. The Committee continues the provision 
regarding price limitations on vehicles to be purchased by the 
Federal Government.
    Section 604. The Committee continues the provision allowing 
funds made available to agencies for travel, to also be used 
for quarters allowances and cost-of-living allowances.
    Section 605. The Committee continues the provision 
prohibiting the government, with certain specified exceptions, 
from employing non-U.S. citizens whose posts of duty would be 
in the continental U.S.
    Section 606. The Committee continues the provision ensuring 
that agencies will have authority to pay GSA bills for space 
renovation and other services.
    Section 607. The Committee continues the provision allowing 
agencies to finance the costs of recycling and waste prevention 
programs with proceeds from the sale of materials recovered 
through such programs.
    Section 608. The Committee continues the provision 
providing that funds may be used to pay rent and other service 
costs in the District of Columbia.
    Section 609. The Committee continues the provision 
precluding the financing of groups by more than one Federal 
agency absent prior and specific statutory approval.
    Section 610. The Committee continues the provision 
authorizing the Postal Service to employ guards and give them 
the same special police powers as GSA guards.
    Section 611. The Committee continues the provision 
prohibiting the use of funds for enforcing regulations 
disapproved in accordance with the applicable law of the U.S.
    Section 612. The Committee continues the provision limiting 
the pay increases of certain prevailing rate employees.
    Section 613. The Committee continues the provision limiting 
the amount of funds that can be used for redecoration of 
offices under certain circumstances.
    Section 614. The Committee continues the provision 
prohibiting the expenditure of funds for the acquisition of 
additional law enforcement training facilities.
    Section 615. The Committee continues the provision to allow 
for interagency funding of national security and emergency 
telecommunications initiatives.
    Section 616. The Committee continues the provision 
requiring agencies to certify that a Schedule C appointment was 
not created solely or primarily to detail the employee to the 
White House.
    Section 617. The Committee continues the provision 
requiring agencies to administer a policy designed to ensure 
that all workplaces are free from discrimination and sexual 
harassment.
    Section 618. The Committee continues the provision 
prohibiting the importation of any goods manufactured by forced 
or indentured child labor.
    Section 619. The Committee continues the provision 
prohibiting the payment of any employee who prohibits, 
threatens or prevents another employee from communicating with 
Congress.
    Section 620. The Committee continues the provision 
prohibiting Federal training not directly related to the 
performance of official duties.
    Section 621. The Committee continues the provision 
prohibiting the expenditure of funds for implementation of 
agreements in nondisclosure policies unless certain provisions 
are included.
    Section 622. The Committee continues the provision 
prohibiting propaganda, publicity and lobbying by executive 
agency personnel in support or defeat of legislative 
initiatives.
    Section 623. The Committee continues the provision 
prohibiting any Federal agency from disclosing an employee's 
home address to any labor organization, absent employee 
authorization or court order.
    Section 624. The Committee continues the provision 
prohibiting funds to be used to provide non-public information 
such as mailing or telephone lists to any person or 
organization outside the government without the approval of the 
Committees on Appropriations.
    Section 625. The Committee continues the provision 
prohibiting the use of funds for propaganda and publicity 
purposes not authorized by Congress.
    Section 626. The Committee continues the provision 
directing agency employees to use official time in an honest 
effort to perform official duties.
    Section 627. The Committee continues the provision 
authorizing the use of funds to finance an appropriate share of 
the Joint Financial Management Improvement Program.
    Section 628. The Committee continues and modifies the 
provision authorizing agencies to transfer funds to the Policy 
and Operations account of GSA to finance an appropriate share 
of the Joint Financial Management Improvement Program.
    Section 629. The Committee continues a provision, with 
technical modifications, authorizing an Executive agency to use 
certain funds to improve the affordability of child care for 
lower income Federal employees.
    Section 630. The Committee continues the provision that 
permits breast feeding in a Federal building or on Federal 
property if the woman and child are authorized to be there.
    Section 631. The Committee continues the provision that 
permits interagency funding of the National Science and 
Technology Council and provides for a report on the budget and 
resources of the National Science and Technology Council. The 
report should include the entire budget of the National Science 
and Technology Council.
    Section 632. The Committee continues the provision 
requiring that any request for proposals, solicitation, grant 
application, form, notification, press release, or other 
publications involving the distribution of Federal funds shall 
indicate the agency providing the funds and the amount 
provided. This provision shall apply to direct payments, 
formula funds, and grants received by a State receiving Federal 
funds.
    Section 633. The Committee includes a new provision to 
extend the authorization for franchise fund pilots for one year 
in order to allow the Administration to evaluate their results 
and make a decision regarding permanent authority.
    Section 634. The Committee includes a new provision to 
clarify that the Department of the Navy will provide and pay 
for utilities for the official residence of the Vice President 
without reimbursement.
    Section 635. The Committee includes a new provision 
authorizing the Secretary of the Navy to accept gifts of 
consumable items, or funds for them, to be accepted for use at 
official functions at the Vice President's residence, including 
the hosting of foreign dignitaries.
    Section 636. The Committee includes a new provision 
clarifying that certain Title 5 authorities are available with 
respect to civilian personnel of the White House Office, the 
Executive Residence at the White House, the Office of the Vice 
President, the Domestic Policy Council, and the Office of 
Administration.
    Section 637. The Committee includes a new provision 
requiring the Office of Personnel Management to submit a report 
regarding telecommuting centers.
    Section 638. The Committee continues and modifies a 
provision prohibiting the use of funds to monitor personal 
information relating to the use of Federal internet sites. 
Applies provision government-wide.
    Section 639. The committee includes a new provision 
amending Title 5 to clarify retirement benefits for air traffic 
controllers.
    Section 640. The Committee includes a new provision 
amending 5 U.S.C. 4507 to make Federal employees in senior 
technical positions eligible for Presidential rank awards.
    Section 641. The Committee includes a new general provision 
extending authority for the FEC to assess administrative fines 
for straightforward violations of reporting deadlines from 
December 31, 2001 to December 31, 2003.
    Section 642. The Committee continues, with a technical 
modification, the provision addressing contraceptive coverage 
in health plans participating in the FEHBP. The technical 
modification deletes the name of a provider no longer 
participating in the program.
    Section 643. The Committee includes a new provision 
concerning pay parity for federal civilian employees.

    Appropriations Can Be Used Only for the Purposes for Which Made

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

                      Compliance With House Rules


                           TRANSFER OF FUNDS

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

                                 APPROPRIATION TRANSFERS RECOMMENDED IN THE BILL
----------------------------------------------------------------------------------------------------------------
  Account to which transfer is to be                                      Account from which
                 made                        Amount                     transfer is to be made        Amount
----------------------------------------------------------------------------------------------------------------
Treasury Department offices, bureaus         $67,828,000               Department-wide Systems       $67,828,000
 and other groups.                                                      and Capital Investments
                                                                        programs.
Customs, Salaries & Expenses.........          2,993,000               Harbor Maintenance Fee          2,993,000
                                                                        Collection.
Federal Departments..................          1,300,000               Office of National Drug         1,300,000
                                                                        Control Policy.
State and local entries..............        118,065,000               Federal Drug Programs--       118,065,000
                                                                        HIDTA.
Federal Departments..................        112,935,000               Federal Drug Programs--       112,935,000
                                                                        HIDTA.
State and local entities.............         22,236,000               Counterdrug Technology         22,236,000
                                                                        Assessment Center.
Federal Departments..................         17,764,000               Counterdrug Technology         17,764,000
                                                                        Assessment Center.
Federal Departments..................        238,800,000               Special Forfeiture Fund.      238,800,000
Personnel Management.................        115,928,000               Trust Funds, Office of        115,928,000
                                                                        Personnel Management.
Inspector General, OPM...............         10,016,000               Trust Funds, Office of         10,016,000
                                                                        Personnel Management.
Merit System Protection Board........          2,520,000               Civil Service Retirement        2,520,000
                                                                        and Disability Trust
                                                                        Fund.
Federal Financing Bank...............         72,000,000               General Service                72,000,000
                                                                        Administration, Federal
                                                                        Buildings Fund.
Federal Departments..................          5,000,000               General Services                5,000,000
                                                                        Administration,
                                                                        Electronic Government
                                                                        Fund.
Treasury Department offices, bureaus             850,000               General Services                  850,000
 and other groups.                                                      Administration,
                                                                        Allowances and Office
                                                                        Staff for Former
                                                                        Presidents.
Treasury Department offices, bureaus,        $10,000,000               Expanded Access to             10,000,000
 and other organizations.                                               Financial Services.
----------------------------------------------------------------------------------------------------------------

                          RESCISSION OF FUNDS

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

                        CONSTITUTIONAL AUTHORITY

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives states that:

          Each report of a committee on a bill or joint 
        resolution of a public character, shall include a 
        statement citing the specific powers granted to the 
        Congress in the Constitution to enact the law proposed 
        by the bill or joint resolution.

    The Committee on Appropriations bases its authority to 
report this legislation from Clause 7 of Section 9 of Article I 
of the Constitution of the United States of America that 
states:

          No money shall be drawn from the Treasury but in 
        consequence of Appropriations made by law * * * ''

    Appropriations contained in this Act are made pursuant to 
this specific power granted by the Constitution.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

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

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

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

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


                          (Public Law 105-119)

  Sec. 122. (a) * * *

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

                              ----------                              


        SECTION 403 OF GOVERNMENT MANAGEMENT REFORM ACT OF 1994


                          (Public Law 103-356)

SEC. 403. FRANCHISE FUND PILOT PROGRAMS.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Termination.--The provisions of this section shall expire 
on October 1, [2001] 2002.
                              ----------                              


                          ACT OF JULY 12, 1974


                          (Public Law 93-346)

  JOINT RESOLUTION Designating the premises occupied by the Chief of 
   Naval Operations as the official residence of the Vice President, 
  effective upon the termination of service of the incumbent Chief of 
Naval Operations.

           *       *       *       *       *       *       *


  Sec. 3. The Secretary of the Navy shall, subject to the 
supervision and control of the Vice President, provide for the 
military staffing, utilities (including electrical) for, and 
the care and maintenance of the grounds of the temporary 
official residence of the Vice President and, subject to 
reimbursement therefor out of funds appropriated for such 
purposes, provide for the civilian staffing, care, maintenance, 
repair, improvement, alteration, and furnishing of such 
residence.

           *       *       *       *       *       *       *

  Sec. 6. The Secretary of the Navy is authorized and directed, 
with the approval of the Vice President, to accept donations of 
money or property for the furnishing of or making improvements 
in or about, or for use at official functions in or about, the 
temporary official residence of the Vice President, all such 
donations to become the property of the United States and to be 
accounted for as such.

           *       *       *       *       *       *       *

                              ----------                              


TITLE 5, UNITED STATES CODE

           *       *       *       *       *       *       *



PART III--EMPLOYEES

           *       *       *       *       *       *       *


Subpart C--Employee Performance

           *       *       *       *       *       *       *


                      CHAPTER 45--INCENTIVE AWARDS


            SUBCHAPTER I--AWARDS FOR SUPERIOR ACCOMPLISHMENTS

Sec.
4501.  Definitions.
     * * * * * * *
4507.  Awarding of ranks in the Senior Executive Service.
4507a.   Awarding of ranks to other senior career employees.

           *       *       *       *       *       *       *


SUBCHAPTER I--AWARDS FOR SUPERIOR ACCOMPLISHMENTS

           *       *       *       *       *       *       *


Sec. 4506. Regulations

  The Office of Personnel Management shall prescribe 
regulations and instructions under which [the agency awards 
program] the awards programs set forth by this subchapter shall 
be carried out.

           *       *       *       *       *       *       *


Sec. 4507a. Awarding of ranks to other senior career employees

  (a) For the purpose of this section, the term ``senior career 
employee'' means an individual appointed to a position 
classified above GS-15 and paid under section 5376 who is not 
serving--
          (1) under a time-limited appointment; or
          (2) in a position that is excepted from the 
        competitive service because of its confidential or 
        policy-making character.
  (b) Each agency employing senior career employees shall 
submit annually to the Office of Personnel Management 
recommendations of senior career employees in the agency to be 
awarded the rank of Meritorious Senior Professional or 
Distinguished Senior Professional, which may be awarded by the 
President for sustained accomplishment or sustained 
extraordinary accomplishment, respectively.
  (c) The recommendations shall be made, reviewed, and awarded 
under the same terms and conditions (to the extent determined 
by the Office of Personnel Management) that apply to rank 
awards for members of the Senior Executive Service under 
section 4507.

           *       *       *       *       *       *       *


Subpart G--Insurance and Annuities

           *       *       *       *       *       *       *


CHAPTER 83--RETIREMENT

           *       *       *       *       *       *       *


SUBCHAPTER III--CIVIL SERVICE RETIREMENT

           *       *       *       *       *       *       *


Sec. 8335. Mandatory separation

  (a) An air traffic controller shall be separated from the 
service on the last day of the month in which he becomes 56 
years of age[.] or completes the age and service requirements 
for an annuity under section 8336, whichever occurs later. The 
Secretary, under such regulations as he may prescribe, may 
exempt a controller having exceptional skills and experience as 
a controller from the automatic separation provisions of this 
subsection until that controller becomes 61 years of age. The 
Secretary shall notify the controller in writing of the date of 
separation at least 60 days before that date. Action to 
separate the controller is not effective, without the consent 
of the controller, until the last day of the month in which the 
60-day notice expires.

           *       *       *       *       *       *       *

                              ----------                              


SECTION 640 OF THE TREASURY AND GENERAL GOVERNMENT APPROPRIATIONS ACT, 
                                  2000

  Sec. 640. (a) * * *

           *       *       *       *       *       *       *

  (c) Effective Date.--The amendments made by this section 
shall apply with respect to [violations occurring between 
January 1, 2000 and December 31, 2001] violations that relate 
to reporting periods that begin on or after January 1, 2000, 
and that end on or before December 31, 2003.

          FINANCIAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

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

                                                                Millions
FY 2002 new budget authority............................             232
2002 outlays resulting therefrom........................              58

                   COMPARISON WITH BUDGET RESOLUTION

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

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                  302(b) allocation            This bill--
                                                             ---------------------------------------------------
                                                                 Budget                    Budget
                                                               authority     Outlays     authority     Outlays
----------------------------------------------------------------------------------------------------------------
Discretionary...............................................       16,880       16,134       13,021       16,223
Mandatory...................................................       15,478       15,475       15,478       15,475
----------------------------------------------------------------------------------------------------------------
Note.--Pursuant to section 314 of the Congressional Budget Act of 1974, as amended, increases to the Committee's
  section 302(a) allocation are authorized for funding in the reported bill for the Earned Income Tax Credit
  Compliance Initiative. After the bill is reported to the House, the Chairman of the Committee on the Budget
  will provide an increased section 302(a) allocation consistent with the funding provided in the bill.

                      FIVE YEAR OUTLAY PROJECTIONS

    In compliance with section 308(a)(1)(B) of the 
Congressional Budget Act of 1974 (Public Law 93-344), as 
amended, the following table contains five-year projections 
associated with the budget authority provided in the 
accompanying bill:
                                                                Millions
Budget Authority........................................          32,499
Outlays:
    Fiscal year 2002....................................          27,972
    Fiscal year 2003....................................           2,830
    Fiscal year 2004....................................             671
    Fiscal year 2005....................................             262
    Fiscal year 2006 and future years...................             131

Note.--The above table includes mandatory appropriations and 
discretionary appropriations.
---------------------------------------------------------------------------

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

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

                  TITLE I--DEPARTMENT OF THE TREASURY


                          Departmental Offices

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

        Department-Wide Systems and Capital Investments Programs

    The Committee has continued language that provides funds 
for the development and acquisition of automated data 
processing equipment, software, and services, providing 
transfer authority, and prohibiting expenditures for IRS's 
Information Technology Systems.

                      Office Of Inspector General

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

           Treasury Inspector General For Tax Administration

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

           Treasury Building and Annex Repair and Restoration

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

                 Expanded Access to Financial Services

    The Committee has continued language providing $10,000,000 
for the Secretary of the Treasury to develop and implement a 
program to expand access to financial services to low-income 
individuals who do not currently utilize bank accounts or other 
financial service opportunities.

                  Financial Crimes Enforcement Network

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

                         Counterterrorism Fund

    The Committee continues and modifies language that provides 
funds for the Secretary of the Treasury to reimburse Treasury 
Department organizations for support of countererrorism 
efforts. The language no longer designates this as emergency 
funding.

                Federal Law Enforcement Training Center

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

     Acquisition, Construction, Improvements, and Related Expenses

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

                 Interagency Crime and Drug Enforcement

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

                      Financial Management Service

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

                Bureau of Alcohol, Tobacco and Firearms

    The Committee has continued language which provides funds 
for the hire of aircraft, the services of expert witnesses, 
official reception and representation expenses, training of 
State and local law enforcement agencies, the provision of 
laboratory assistance to State and local agencies, the payment 
of attorney's fees, the equipping of certain vessels, vehicles, 
equipment or aircraft. The Committee has continued language 
that: provides that no funds shall be used to consolidate or 
centralize the records pertaining to firearms licenses; 
prohibits the payment of administrative expenses in changing 
the definition of curios or relics; prohibits the transfer of 
ATF's functions to another federal agency; prohibiting 
electronic retrieval of information gathered pursuant to 18 
U.S.C. 923(g)(4) by name or personal identification; and 
prohibits ATF from acting upon applications for relief from 
Federal firearms disabilities. The Committee has continued 
language relating to payment of per diem and/or subsistence 
allowances to cover situations where a major investigative 
assignment requires an employee to work 16 hours or more per 
day or to remain overnight at his or her post of duty; and 
continues language providing funding for cooperative research 
and development programs for Laboratory Services and Fire 
Research Center activities. The Committee continues and 
modifies language regarding the purchase of vehicles. The 
Committee includes language making funding for Gang Resistance 
Education And Training (GREAT) grants available for obligation 
until September 30, 2003.

                     United States Customs Service


                         SALARIES AND EXPENSES

    The Committee has continued and modified language that 
provides funds for the purchase and hire of vehicles, official 
reception and representation expenses, personal services 
contracts abroad, compensation to informers, rental space for 
pre-clearance operations, special operations, procurement of 
automation infrastructure items, research, uniforms, repairs to 
Customs facilities, the child pornography tipline and Project 
Alert. The Committee continues the provision establishing the 
aggregate overtime limitation. The Committee eliminates 
language restricting the number of vehicles that may be 
procured, and includes new language that provides funding for 
the procurement and deployment of non-intrusive inspection 
technology.

                   HARBOR MAINTENANCE FEE COLLECTION

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

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

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

                        AUTOMATION MODERNIZATION

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

                               U.S. Mint

    The Committee has included new language identifying the 
source of funding for the operations and activities of the U.S. 
Mint and specifying the level of funding for circulating 
coinage and protective service capital investments. The 
Committee has included new language requiring the U.S. Mint pay 
for a study of coin circulation by the General Accounting 
Office.

                       Bureau of the Public Debt

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

                        Internal Revenue Service


                 PROCESSING, ASSISTANCE, AND MANAGEMENT

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

                          TAX LAW ENFORCEMENT

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

             EARNED INCOME TAX CREDIT COMPLIANCE INITIATIVE

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

                          INFORMATION SYSTEMS

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

                     BUSINESS SYSTEMS MODERNIZATION

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

          ADMINISTRATIVE PROVISIONS--INTERNAL REVENUE SERVICE

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

                      United States Secret Service

    The Committee has continued language that provides funds 
for the hire of aircraft, training and assistance requested by 
State and local governments, services of expert witnesses, 
rental of certain buildings, improvements to buildings as may 
be necessary for protective functions, per diem and subsistence 
allowance, the conduct of firearms matches, presentation of 
awards, travel of employees on protective missions, for 
repairs, alterations, and minor construction, making grants to 
conduct behavioral research, uniforms, research reimbursement 
for protection as authorized by law, reception and 
representation expenses, assistance to foreign law enforcement 
for counterfeit investigations. The Committee continues 
language permitting some funding for protective travel to 
remain available for two years. The Committee continues 
language making funds available as a grant for activities 
related to the investigations of exploited children. The 
Committee continues and modifies language regarding the 
purchase of vehicles.

      ACQUISITION, CONSTRUCTION, IMPROVEMENT, AND RELATED EXPENSES

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

             General Provisions--Department of the Treasury

    Section 110. The Committee continues the provision that 
requires the Secretary of the Treasury to comply with certain 
reprogramming guidelines when obligating or expending funds for 
law enforcement activities.
    Section 111. The Committee continues the provision that 
allows the Department of the Treasury to purchase uniforms, 
insurance, and motor vehicles without regard to the general 
purchase price limitation, and enter in to contracts with the 
State Department for health and medical services for Treasury 
employees in overseas locations.
    Section 112. The Committee continues the provision that 
requires expenditures of funds so as not to diminish efforts 
under the Federal Alcohol Administration Act.
    Section 113. The Committee continues the provision that 
authorizes transfers, up to 2 percent, between law enforcement 
appropriations under certain circumstances.
    Section 114. The Committee continues the provision that 
authorizes transfers, up to 2 percent, between Departmental 
Offices, Office of the Inspector General, Financial Management 
Service, and the Bureau of the Public Debt appropriations under 
certain circumstances.
    Section 115. The Committee continues the provision that 
authorizes transfer, up to 2 percent, between the Internal 
Revenue Service and the Treasury Inspector General for Tax 
Administration under certain circumstances.
    Section 116. The Committee continues the provision that 
provides that no funds may be obligated for the purchase of law 
enforcement vehicles until the Secretary of the Treasury 
certifies that the purchase is consistent with Departmental 
vehicle management principles.
    Section 117. The Committee continues the provision that 
prohibits the Department of the Treasury from undertaking a 
redesign of the $1 Federal Reserve note.
    Section 118. The Committee continues the provision that 
provides for transfers from and reimbursements to the Salaries 
and Expenses appropriation of the Financial Management Service 
for the purposes of debt collection.
    Section 119. The Committee includes a new provision that 
authorizes intelligence and intelligence-based activities of 
the Department of Treasury.
    Section 120. The Committee includes a new provision that 
extends the pilot project for designated critical occupations 
for one additional year.
    Section 121. The Committee includes a new provision that 
requires authorization for the construction and operation of a 
museum by the United States Mint.

                        TITLE II--POSTAL SERVICE


                   Payment to the Postal Service Fund

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

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


        Compensation of the President and the White House Office

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

                 Executive Residence at the White House

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

                  White House Repairs and Restoration

    The Committee has continued language that provides funds 
for the repair, alteration, and improvement of the Executive 
Residence at the White House and includes new language that 
allows the funds to be used for preventative maintenance in 
conjunction with the General Services Administration, the 
Secret Service, the Office of the President, and other agencies 
charged with the administration and care of the White House.

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

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

                      Council of Economic Advisers

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

                      Office of Policy Development

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

                       National Security Council

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

                        Office of Administration

    The Committee has continued language that provides funds 
for expenses of the Office and the hire of vehicles and funds 
for a capital investment plan that provides for the continued 
modernization of the information technology infrastructure. The 
Committee has included new language prohibiting the use of 
certain Information Technology funds until the Office of 
Administration submits a report that (a) includes an Enterprise 
Architecture, as defined in OMB Circular A-130 and federal 
Chief Information Officer guidance; (b) presents and 
Information Technology (IT) Human Capital Plan, to include an 
inventory of current IT workforce knowledge and skills, a 
definition of needed IT knowledge and skills, a gap analysis of 
any shortfalls, and a plan for addressing any shortfalls; (c) 
presents a capital investment plan for implementing the 
Enterprise Architecture; (d) includes a description of the IT 
capital planning and investment control process; and (e) is 
reviewed and approved by OMB, is reviewed by the General 
Accounting Office, and is approved by the Committee on 
Appropriations.

                    Office of Management and Budget

    The Committee has continued language that provides funds 
for expenses, the hire of vehicles, carrying out provisions of 
chapter 35 of 44 U.S.C., directs that funds shall be applied 
only to items for which appropriations were made, prohibits the 
review of agricultural marketing orders and the alteration of 
certain testimony. The Committee has included new language: (1) 
establishing a representational allowance; (2) prohibiting the 
use of funds for the purpose of OMB calculating, preparing, or 
approving any tabular or other material that proposes the sub-
allocation of budget authority or outlays by the Committees on 
Appropriations; (3) prohibiting the obligation of certain funds 
for the Office of Information and Regulatory Affairs until the 
Office of Management and Budget submits a report to the House 
Committee on Appropriations that provides an assessment of the 
total costs of implementing Executive Order 13166; and (4) 
requiring the Housing, Treasury and Finance Division, in 
consultation with the Small Business Administration, to develop 
subsidy cost estimates for certain loans and to report on the 
progress of these estimates prior to the submission of the 
President's fiscal year 2003 budget.

                 Office of National Drug Control Policy

    The Committee has continued language that provides funds 
for expenses, research, official reception and representation 
expenses, participation in joint projects, and allows for the 
acceptance of gifts. The Committee has continued language 
providing funds for model state drug law conferences and policy 
research and evaluation and making these funds available until 
expended.

                Counterdrug Technology Assessment Center

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

                     Federal Drug Control Programs


             HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM

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

                        SPECIAL FORFEITURE FUND

    The Committee has continued and modified language that 
provides a certain level of funding for the Drug-Free Media 
Campaign Act, for the Drug-Free Communities Act, and to provide 
a grant to the National Drug Court Institute, and for the 
Counterdrug Intelligence Executive Secretariat. The Committee 
also modifies language relating to funding anti-doping efforts 
through the U.S. Anti-Doping Agency.

                     TITLE IV--INDEPENDENT AGENCIES


 Committee for Purchase From People Who Are Blind or Severely Disabled

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

                      Federal Election Commission

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

                   Federal Labor Relations Authority

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

                    General Services Administration


                         FEDERAL BUILDINGS FUND

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

                         POLICY AND OPERATIONS

    The Committee continues language which provides funds for 
government-wide policy and oversight activities, the Board of 
Contract Appeals, accounting records management and other 
services incident to adjudication of Indian Tribal Claims, 
services authorized by 5 U.S.C. 3109, and official reception 
and representation expenses. The Committee continues language 
which provides that a portion of the funds appropriated will 
remain available until expended.

                      OFFICE OF INSPECTOR GENERAL

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

                       ELECTRONIC GOVERNMENT FUND

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

           ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS

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

          GENERAL PROVISIONS--GENERAL SERVICES ADMINISTRATION

    Section 401. The Committee continues the provision that 
provides that costs included in rent received from government 
corporations for operation, protection, maintenance, upkeep, 
repair and improvement shall be credited to the Federal 
Buildings Fund.
    Section 402. The Committee continues the provision 
providing authority for the use of funds for the hire of motor 
vehicles.
    Section 403. The Committee continues the provision 
providing that funds made available for activities of the 
Federal Buildings Fund may be transferred between 
appropriations with advance approval of the Congress.
    Section 404. The Committee continues the provision 
prohibiting the use of funds for developing courthouse 
construction requests that do not meet GSA standards and the 
priorities of the Judicial Conference.
    Section 405. The Committee continues the provision 
providing that no funds may be used to increase the amount of 
occupiable square feet, provide cleaning services, security 
enhancements, or any other service usually provided, to any 
agency which does not pay the requested rent.
    Section 406. The Committee continues the provision 
providing for Information Technology Fund repayment from 
sponsored projects that realize program savings.
    Section 407. The Committee continues the provision that 
permits GSA to pay small claims (up to $250,000) made against 
the government.
    Section 408. The Committee provides a new provision 
requiring the General Services Administration to increase its 
fiscal year 2002 expenditures for purchasing alternative fuel 
vehicles by $5,000,000 above its fiscal year 2001 expenditures.

                     Merit Systems Protection Board

    The Committee has continued language that provides funds 
for the Board.

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


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

    The Committee includes new language that provides funds for 
the Morris K. Udall Scholarship and Excellence in National 
Environmental Policy Trust Fund, allows a portion of the funds 
to be transferred by the Morris K. Udall Scholarship and 
Excellence in National Environmental Policy Foundation to 
support the Native Nations Institute, and requires a report on 
the funding transfer.

              National Archives and Records Administration


                           OPERATING EXPENSES

    The Committee has continued language that provides funds 
for the review and declassification of documents, the hire of 
passenger vehicles, and language that authorizes the Archivist 
to use excess funds available from the amount borrowed for 
construction of the National Archives facility for expenses 
necessary to provide storage for holdings. The Committee 
provides new language specifying funds for the electronic 
records archive and making a portion of these funds available 
until September 30, 2004.

                        REPAIRS AND RESTORATION

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

                      Office of Government Ethics

    The Committee has continued language that provides funds 
for the Office.

                     Office of Personnel Management

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

                      Office of Inspector General

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

      GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEES HEALTH BENEFITS

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

       GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEE LIFE INSURANCE

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

        PAYMENT TO CIVIL SERVICE RETIREMENT AND DISABILITY FUND

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

                       Office of Special Counsel

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

                        United States Tax Court

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

                      TITLE V--GENERAL PROVISIONS


                                This Act

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

              TITLE VI--GOVERNMENT WIDE GENERAL PROVISIONS


                Departments, Agencies, and Corporations

    Section 601. The Committee continues the provision 
authorizing agencies to pay costs of travel to the United 
States for the immediate families of Federal employees assigned 
to foreign duty in the event of a death or a life threatening 
illness of the employee.
    Section 602. The Committee continues the provision 
requiring agencies to administer a policy designed to ensure 
that all of its workplaces are free from the illegal use of 
controlled substances.
    Section 603. The Committee continues the provision 
regarding price limitations on vehicles to be purchased by the 
Federal Government.
    Section 604. The Committee continues the provision allowing 
funds made available to agencies for travel, to also be used 
for quarters allowances and cost-of-living allowances.
    Section 605. The Committee continues the provision 
prohibiting the government, with certain specified exceptions, 
from employing non-U.S. citizens whose posts of duty would be 
in the continental U.S.
    Section 606. The Committee continues the provision ensuring 
that agencies will have authority to pay GSA bills for space 
renovation and other services.
    Section 607. The Committee continues the provision allowing 
agencies to finance the costs of recycling and waste prevention 
programs with proceeds from the sale of materials recovered 
through such programs.
    Section 608. The Committee continues the provision 
providing that funds may be used to pay rent and other service 
costs in the District of Columbia.
    Section 609. The Committee continues the provision 
precluding the financing of groups by more than one Federal 
agency absent prior and specific statutory approval.
    Section 610. The Committee continues the provision 
authorizing the Postal Service to employ guards and give them 
the same special police powers as GSA guards.
    Section 611. The Committee continues the provision 
prohibiting the use of funds for enforcing regulations 
disapproved in accordance with the applicable law of the U.S.
    Section 612. The Committee continues the provision limiting 
the pay increases of certain prevailing rate employees.
    Section 613. The Committee continues the provision limiting 
the amount of funds that can be used for redecoration of 
offices under certain circumstances.
    Section 614. The Committee continues the provision 
prohibiting the expenditure of funds for the acquisition of 
additional law enforcement training facilities.
    Section 615. The Committee continues the provision to allow 
for interagency funding of national security and emergency 
telecommunications initiatives.
    Section 616. The Committee continues the provision 
requiring agencies to certify that a Schedule C appointment was 
not created solely or primarily to detail the employee to the 
White House.
    Section 617. The Committee continues the provision 
requiring agencies to administer a policy designed to ensure 
that all workplaces are free from discrimination and sexual 
harassment.
    Section 618. The Committee continues the provision 
prohibiting the importation of any goods manufactured by forced 
or indentured child labor.
    Section 619. The Committee continues the provision 
prohibiting the payment of any employee who prohibits, 
threatens or prevents another employee from communicating with 
Congress.
    Section 620. The Committee continues the provision 
prohibiting Federal training not directly related to the 
performance of official duties.
    Section 621. The Committee continues the provision 
prohibiting the expenditure of funds for implementation of 
agreements in nondisclosure policies unless certain provisions 
are included.
    Section 622. The Committee continues the provision 
prohibiting propaganda, publicity and lobbying by executive 
agency personnel in support or defeat of legislative 
initiatives.
    Section 623. The Committee continues the provision 
prohibiting any Federal agency from disclosing an employee's 
home address to any labor organization, absent employee 
authorization or court order.
    Section 624. The Committee continues the provision 
prohibiting funds to be used to provide non-public information 
such as mailing or telephone lists to any person or 
organization outside the government without the approval of the 
Committees on Appropriations.
    Section 625. The Committee continues the provision 
prohibiting the use of funds for propaganda and publicity 
purposes not authorized by Congress.
    Section 626. The Committee continues the provision 
directing agency employees to use official time in an honest 
effort to perform official duties.
    Section 627. The Committee continues the provision 
authorizing the use of funds to finance an appropriate share of 
the Joint Financial Management Improvement Program.
    Section 628. The Committee continues and modifies the 
provision authorizing agencies to transfer funds to the Policy 
and Operations account of GSA to finance an appropriate share 
of the Joint Financial Management Improvement Program.
    Section 629. The Committee continues a provision, with 
technical modifications, authorizing an Executive agency to use 
certain funds to improve the affordability of child care for 
lower income Federal employees.
    Section 630. The Committee continues the provision that 
permits breast feeding in a Federal building or on Federal 
property if the woman and child are authorized to be there.
    Section 631. The Committee continues the provision that 
permits interagency funding of the National Science and 
Technology Council and provides for a report on the budget and 
resources of the National Science and Technology Council. The 
report should include the entire budget of the National Science 
and Technology Council.
    Section 632. The Committee continues the provision 
requiring that any request for proposals, solicitation, grant 
application, form, notification, press release, or other 
publications involving the distribution of Federal funds shall 
indicate the agency providing the funds and the amount 
provided. This provision shall apply to direct payments, 
formula funds, and grants received by a State receiving Federal 
funds.
    Section 633. The Committee includes a new provision to 
extend the authorization for franchise fund pilots for one year 
in order to allow the Administration to evaluate their results 
and make a decision regarding permanent authority.
    Section 634. The Committee includes a new provision to 
clarify that the Department of the Navy will provide and pay 
for utilities for the official residence of the Vice President 
without reimbursement.
    Section 635. The Committee includes a new provision 
authorizing the Secretary of the Navy to accept gifts of 
consumable items, or funds for them, to be accepted for use at 
official functions at the Vice President's residence, including 
the hosting of foreign dignitaries.
    Section 636. The Committee includes a new provision 
clarifying that certain Title 5 authorities are available with 
respect to civilian personnel of the White House Office, the 
Executive Residence at the White House, the Office of the Vice 
President, the Domestic Policy Council, and the Office of 
Administration.
    Section 637. The Committee includes a new provision 
requiring the Office of Personnel Management to submit a report 
regarding telecommuting centers.
    Section 638. The Committee continues and modifies a 
provision prohibiting the use of funds to monitor personal 
information relating to the use of Federal internet sites. 
Applies provision government-wide.
    Section 639. The Committee includes a new provision 
amending Title 5 to clarify retirement benefits for air traffic 
controllers.
    Section 640. The Committee includes a new provision 
amending 5 U.S.C. 4507 to make Federal employees in senior 
technical positions eligible for Presidential rank awards.
    Section 641. The Committee includes a new general provision 
extending authority for the Federal Election Commission to 
assess administrative fines for straightforward violations of 
reporting deadlines from December 31, 2001 to December 31, 
2003.
    Section 642. The Committee continues, with a technical 
modification, the provision addressing contraceptive coverage 
in health plans participating in the FEHBP. The technical 
modification deletes the name of a provider no longer 
participating in the program.
    Section 643. The Committee includes a new provision 
concerning pay parity for federal civilian employees.

                    detailed explanations in report

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

                  APPROPRIATIONS NOT AUTHORIZED BY LAW

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

                                      APPROPRIATIONS NOT AUTHORIZED BY LAW
----------------------------------------------------------------------------------------------------------------
                                                                         Appropriations in
                                    Last year of        Authorization       last year of      Appropriations in
                                    authorization           level          authorization          this bill
----------------------------------------------------------------------------------------------------------------
Department Wide Systems and      N/A...............  N/A...............  N/A..............           $67,828,000
 Capital Investments Program.
Treasury Building and Annex      N/A...............  N/A...............  N/A..............           $32,932,000
 Repair and Restoration.
Expanded Access to Financial     N/A...............  N/A...............  N/A..............           $10,000,000
 Services.
Financial Crimes Enforcement     N/A \1\...........  N/A...............  N/A..............           $45,760,000
 Network.
Counterterrorism Fund..........  N/A...............  N/A...............  N/A..............           $44,879,000
Federal Law Enforcement          N/A \2\...........  N/A...............  N/A..............          $124,603,000
 Training Center, Salaries and
 Expenses and Acquisition,
 Construction, Improvements and
 Related Expenses.
Interagency Crime and Drug       N/A...............  N/A...............  N/A..............          $106,965,000
 Enforcement.
Bureau of Alcohol, Tobacco and   N/A \3\...........  N/A...............  N/A..............          $824,199,000
 Firearms, except those
 activities related to the
 enforcement of tobacco
 smuggling and regulation of
 explosives.
US Customs Service (except       1992..............  Such sums.........  $1,484,084,000...        $2,672,531,000
 Harbor Maintenance Fee).
Office of Management and         2001..............  $8,000,000........  $6,157,000.......            $6,331,000
 Budget, Office of Information
 and Regulatory Affairs.
Counter Technology Assessment    ..................  ..................  .................           $22,236,000
 Center, Technology Transfer.
Federal Election Commission....  1981..............  $9,400,000........  $9,662,000.......           $43,223,000
General Services                 N/A...............  N/A...............  N/A..............            $5,000,000
 Administration, Electronic
 Government Fund.
Office of Government Ethics....  1999..............  Such sums.........  $8,492,000.......           $10,060,000
----------------------------------------------------------------------------------------------------------------
N/A: No specific authorization available.
\1\ Established pursuant to Treasury Order 105-08.
\2\ Established pursuant to Treasury Order 140-01.
\3\ Established pursuant to Treasury Order 120-01, 120-02, and 120-03.

                          Full Committee Votes

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

                             Rollcall No. 1

    Date: July 17, 2001.
    Measure: Treasury, Postal Service, and General Government 
Appropriations Bill, FY 2002.
    Motion by: Mr. Istook.
    Description of motion: To consolidate appropriations for 13 
separate accounts within the Executive Office of the President 
into one appropriation account.
    Results: Rejected 31 yeas to 31 nays.
        Members Voting Yea            Members Voting Nay
Mr. Aderholt                        Mr. Boyd
Mr. Bonilla                         Mr. Clyburn
Mr. Callahan                        Mr. Cramer
Mr. Cunningham                      Ms. DeLauro
Mr. DeLay                           Mr. Dicks
Mr. Doolittle                       Mr. Edwards
Mrs. Emerson                        Mr. Farr
Mr. Frelinghuysen                   Mr. Fattah
Mr. Goode                           Mr. Hinchey
Ms. Granger                         Mr. Hoyer
Mr. Hobson                          Mr. Jackson
Mr. Istook                          Ms. Kaptur
Mr. Kingston                        Mr. Kennedy
Mr. Knollenberg                     Ms. Kilpatrick
Mr. Kolbe                           Mrs. Lowey
Mr. Latham                          Mrs. Meek
Mr. Lewis                           Mr. Mollohan
Mr. Miller                          Mr. Moran
Mr. Nethercutt                      Mr. Murtha
Mrs. Northup                        Mr. Obey
Mr. Peterson                        Mr. Olver
Mr. Regula                          Mr. Pastor
Mr. Rogers                          Ms. Pelosi
Mr. Sherwood                        Mr. Price
Mr. Skeen                           Mr. Rothman
Mr. Sweeney                         Ms. Roybal-Allard
Mr. Tiahrt                          Mr. Sabo
Mr. Walsh                           Mr. Serrano
Mr. Wamp                            Mr. Sununu
Mr. Wicker                          Mr. Visclosky
Mr. Young                           Mr. Wolf
                          Full Committee Votes

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

                             Rollcall No. 2

    Date: July 17, 2001.
    Measure: Treasury, Postal Service, and General Accounting 
Appropriations Bill, FY 2002.
    Motion by: Mr. Obey.
    Description of motion: To strike language authorizing the 
Secretary of the Navy to pay for utilities for the official 
residence of the Vice President; to strike language authorizing 
the Secretary of Navy to accept certain gifts or funds for use 
at official functions at the Vice President's residence; and to 
insert a new provision regarding recess appointments.
    Results: Rejected 29 yeas to 33 nays.
        Members Voting Yea            Members Voting Nay
Mr. Boyd                            Mr. Aderholt
Mr. Clyburn                         Mr. Bonilla
Mr. Cramer                          Mr. Callahan
Ms. DeLauro                         Mr. Cunningham
Mr. Dicks                           Mr. Doolittle
Mr. Edwards                         Mrs. Emerson
Mr. Farr                            Mr. Frelinghuysen
Mr. Fattah                          Mr. Goode
Mr. Hinchey                         Ms. Granger
Mr. Hoyer                           Mr. Hobson
Mr. Jackson                         Mr. Istook
Ms. Kaptur                          Mr. Kingston
Mr. Kennedy                         Mr. Knollenberg
Ms. Kilpatrick                      Mr. LaHood
Mrs. Lowey                          Mr. Latham
Mrs. Meek                           Mr. Lewis
Mr. Mollohan                        Mr. Miller
Mr. Moran                           Mr. Nethercutt
Mr. Murtha                          Mrs. Northup
Mr. Obey                            Mr. Peterson
Mr. Olver                           Mr. Regula
Mr. Pastor                          Mr. Rogers
Ms. Pelosi                          Mr. Sherwood
Mr. Price                           Mr. Skeen
Mr. Rothman                         Mr. Sununu
Ms. Roybal-Allard                   Mr. Sweeney
Mr. Sabo                            Mr. Taylor
Mr. Serrano                         Mr. Tiahrt
Mr. Visclosky                       Mr. Walsh
                                    Mr. Wamp
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young
                          Full Committee Votes

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

                             Rollcall No. 3

    Date: July 17, 2001.
    Measure: Treasury, Postal Service, and General Accounting 
Appropriations Bill, FY 2002.
    Motion by: Mrs. Lowey.
    Description of motion: To require that any FEHBP health 
care plan that provides prescription drug coverage also provide 
contraceptive coverage, with exceptions for two named religious 
plans or plans that object to coverage on the basis of 
religious beliefs.
    Results: Adopted 40 yeas to 21 nays.
        Members Voting Yea            Members Voting Nay
Mr. Boyd                            Mr. Aderholt
Mr. Cramer                          Mr. Bonilla
Ms. DeLauro                         Mr. Cunningham
Mr. Dicks                           Mr. Doolittle
Mr. Edwards                         Mr. Goode
Mrs. Emerson                        Mr. Istook
Mr. Farr                            Mr. Kingston
Mr. Fattah                          Mr. Knollenberg
Mr. Frelinghuysen                   Mr. LaHood
Ms. Granger                         Mr. Lewis
Mr. Hinchey                         Mr. Mollohan
Mr. Hobson                          Mr. Peterson
Mr. Hoyer                           Mr. Rogers
Mr. Jackson                         Mr. Skeen
Ms. Kaptur                          Mr. Sununu
Mr. Kennedy                         Mr. Taylor
Ms. Kilpatrick                      Mr. Tiahrt
Mr. Kolbe                           Mr. Walsh
Mr. Latham                          Mr. Wamp
Mrs. Lowey                          Mr. Wicker
Mrs. Meek                           Mr. Wolf
Mr. Miller
Mr. Moran
Mr. Murtha
Mr. Nethercutt
Mrs. Northup
Mr. Obey
Mr. Olver
Mr. Pastor
Ms. Pelosi
Mr. Price
Mr. Regula
Mr. Rothman
Ms. Roybal-Allard
Mr. Sabo
Mr. Serrano
Mr. Sherwood
Mr. Sweeney
Mr. Visclosky
Mr. Young
                          Full Committee Votes

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

                             Rollcall No. 4

    Date: July 17, 2001.
    Measure: Treasury, Postal Service, and General Government 
Appropriations Bill, FY 2002.
    Motion by: Mrs. DeLauro.
    Description of motion: To strike the prohibition on the use 
of funds to pay for an abortion under the FEHBP.
    Results: Rejected 26 yeas to 33 nays.
        Members Voting Yea            Members Voting Nay
Mr. Boyd                            Mr. Aderholt
Mr. Cramer                          Mr. Callahan
Ms. DeLauro                         Mr. Cunningham
Mr. Dicks                           Mr. DeLay
Mr. Farr                            Mr. Doolittle
Mr. Fattah                          Mr. Edwards
Mr. Frelinghuysen                   Mrs. Emerson
Mr. Hinchey                         Mr. Goode
Mr. Hoyer                           Ms. Granger
Ms. Kaptur                          Mr. Hobson
Mr. Kennedy                         Mr. Istook
Ms. Kilpatrick                      Mr. Kingston
Mr. Kolbe                           Mr. LaHood
Mr. Lowey                           Mr. Latham
Mrs. Meek                           Mr. Lewis
Mr. Moran                           Mr. Miller
Mr. Obey                            Mr. Mollohan
Mr. Olver                           Mr. Murtha
Mr. Pastor                          Mr. Nethercutt
Ms. Pelosi                          Mrs. Northup
Mr. Price                           Mr. Peterson
Mr. Rothman                         Mr. Regula
Ms. Roybal-Allard                   Mr. Rogers
Mr. Sabo                            Mr. Sherwood
Mr. Serrano                         Mr. Skeen
Mr. Visclosky                       Mr. Sununu
                                    Mr. Taylor
                                    Mr. Tiahrt
                                    Mr. Walsh
                                    Mr. Wamp
                                    Mr. Wicker
                                    Mr. Wolf
                                    Mr. Young

                 
                                    

MINORITY VIEWS OF THE HONORABLE STENY HOYER, THE HONORABLE CARRIE MEEK, 
   THE HONORABLE DAVID PRICE, THE HONORABLE STEVEN ROTHMAN, AND THE 
                          HONORABLE DAVID OBEY

    We would like to commend the Chairman for his efforts. 
While we do not agree with every recommendation, our views have 
been reflected in many aspects of this bill.
    The TPO bill to be considered by the House is a significant 
improvement over the president's request. The Committee has 
provided $17.0 billion in discretionary budget authority for 
this bill, $1.1 billion higher than FY 2001 and $340 million 
more than the president's request. These levels are much more 
consistent with the levels that we argued were necessary during 
the budget and tax negotiations. This additional funding helps 
to make up for the shortfall in the President's request.
    For example, the President's request did not provide 
sufficient resources to maintain current programs, withholding 
$150 million of necessary ``non-pay'' inflationary increases to 
cover the increased costs of things like rent, energy, fuel, 
and travel. This bill provides these funds. The budget also 
failed to request any funding for Treasury law enforcement 
agencies in support of the 2002 Winter Olympics. This is 
despite the fact that in August of 1999, the Winter Olympics 
were designated a National Special Security Event, meaning that 
the Secret Service would be the lead Federal agency for 
designing, planning, and implementing security. This bill also 
provides for these costs.
    The President's budget also requested insufficient funds 
for the Automated Commercial Environment, or ``ACE.'' This 
essential initiative is key to modernizing how the Customs 
Service assesses and collects taxes and fees totaling over $20 
billion annually at over 300 ports. Intended to be a four-year, 
$1.3 billion effort, this Committee provided the first 
installment of $130 million for ACE in FY 2001 with the 
expectation that additional funding would be requested in the 
future. However, the Administration requested only $130 million 
in FY 2002 and failed to request the required additional 
funding, thereby threatening to increase the total costs of 
developing the system and putting the legacy system in a 
position to crash and immobilize trade in this country. The 
Committee has acknowledged this problem and provided $170 
million over the President's request to continue this important 
modernization activity.
    The bill also attempts to ensure that the Treasury law 
enforcement agencies have sufficient funds to combat terrorism, 
protect our borders, protect our Nation's leaders and 
dignitaries, prevent drug smuggling, and provide training for 
law enforcement. In the past, we have noted the discrepancy in 
funding for Treasury law enforcement agencies in comparison to 
Justice law enforcement agencies, despite the fact that the 
Treasury law enforcement function makes up nearly 40 percent of 
all Federal law enforcement. The President's budget request 
continued this trend of neglect. However, this bill provides 
several significant increases over the President's budget 
request for Treasury law enforcement, including $45 million for 
the Secret Service to hire additional agents to reduce 
staggering overtime levels, $15 million to hire additional 
Customs inspectors, $33 million to improve Customs inspection 
technology, $14million for Customs air program improvements, 
and $25 million for High Intensity Drug Trafficking Areas.
    We are proud to have been able to make significant 
improvements to the bill during Committee consideration. For 
example, we were able to secure $10 million to continue the 
First Accounts program. This program seeks to establish 
affordable banking accounts for low-income families, increase 
the availability of automatic teller machines in low-income 
neighborhoods, and educate low-income Americans about bank 
accounts. We also were able to ensure that Federal civilian 
employees would receive at least a 4.6 percent pay raise and 
that Federal employees participating in the Federal employees 
health program would continue to have contraceptive coverage.
    Despite these improvements, and the additional funding 
provided above the President's request, we have a number of 
concerns that we look forward to working on in the future. We 
continue to be concerned with understaffing at the Customs 
Service. The Resource Allocation Model projects a need for 
almost 15,000 more staff, mostly Inspectors and Special Agents. 
None of the Customs locations show a decline in workload or 
staff coverages, so reallocation of staff does not appear to be 
a realistic option. The Customs Service is our first line of 
defense. We need to ensure that they have the resources they 
need to do their job effectively.
    We also continue to be concerned about the decline in 
compliance activities at the IRS. In-person audits have 
decreased from 2 million in 1976 to 247,000 in 2000, a decline 
of 88 percent. Since 1997, there has been a significant 
decrease in audit coverage for large corporations (-60 
percent), partnerships (-40 percent), and individuals (-62 
percent). Most importantly, however, it appears that audit 
coverage may disproportionately impact lower-income taxpayers. 
The increased use of ``document matching'' to ensure compliance 
(which focuses on ``verifiable'' wage, salary, and non-
investment income sources) excludes many higher-income 
taxpayers who often have income sources and deductions that are 
easily checked through document matching. Compounding the 
problem is the fact that the audit rate for individuals making 
$100,000 or more has declined by 65 percent from FY 1997 to FY 
2000. While we are pleased that this bill contains an 
additional $86 million to complete the hiring of over 3,800 
employees to help improve compliance and customer service at 
the IRS, we believe that this Committee needs to take a larger 
role in ensuring the appropriate level of compliance in order 
to have an equitable tax system.
    We are also concerned about the funding provided for new 
Courthouse construction. Despite providing additional funds 
above the President's request, the Committee bill falls well 
short of the Judiciary's request. Since FY 1996, when the 
Judiciary began approving prioritized, 5 year Courthouse 
project plans, only half of the Judiciary's infrastructure 
request has been enacted. This is not an issue of luxury for 
the Judiciary. The Courthouse request represents an effort to 
keep up with the skyrocketing judicial workload while ensuring 
a safe environment for employees, detainees, and the public. 
The longer we underfund the Court request, the more pressing 
the need becomes.
    We have always been sensitive to the important separation 
between the Executive and the Legislative branches. This 
sensitivity is particularly important as Congress reviews the 
budget request for the Executive Office of the President. The 
President of the United States deserves the appropriate respect 
and deference. However, it is also important that Congress not 
relinquish its oversight responsibilities. We are very 
concerned that certain provisions included in this bill may 
have this effect.
    On balance, we believe this legislation is a significant 
improvement from the President's request. We look forward to 
working with the Majority to continue to make improvements to 
the bill as it moves through the Congress.

                                   David Obey.
                                   Steny H. Hoyer.
                                   Steven R. Rothman.
                                   David Price.
                                   Carrie P. Meek.