79–006

106TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 106–554

WILDLIFE AND SPORT FISH RESTORATION PROGRAMS

IMPROVEMENT ACT OF 2000

MARCH 30, 2000.—Committed to the Committee of the Whole House on the State

of the Union and ordered to be printed

Mr. YOUNG of Alaska, from the Committee on Resources,

submitted the following

R E P O R T

together with

ADDITIONAL VIEWS

[To accompany H.R. 3671]

[Including cost estimate of the Congressional Budget Office]

The Committee on Resources, to whom was referred the bill

(H.R. 3671) to amend the Acts popularly known as the PittmanRobertson Wildlife Restoration Act and the Dingell-Johnson Sport

Fish Restoration Act to enhance the funds available for grants to

States for fish and wildlife conservation projects and increase opportunities for recreational hunting, bow hunting, trapping, archery, and fishing, by eliminating opportunities for waste, fraud,

abuse, maladministration, and unauthorized expenditures for administration and execution of those Acts, and for other purposes,

having considered the same, report favorably thereon with an

amendment and recommend that the bill as amended do pass.

The amendment is as follows:

Strike out all after the enacting clause and insert in lieu thereof

the following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Wildlife and Sport Fish Restoration Programs Improvement Act of 2000’’.

SEC. 2. DEFINITIONS.

In this Act:

(1) WILDLIFE RESTORATION ACT.—The term ‘‘Wildlife Restoration Act’’ means

the Act of September 2, 1937 (chapter 899; 16 U.S.C. 669 et seq.), popularly

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known as the Federal Aid in Wildlife Restoration Act and as the Pittman-Robertson Wildlife Restoration Act.

(2) SPORT FISH RESTORATION ACT.—The term ‘‘Sport Fish Restoration Act’’

means the Act of August 9, 1950 (chapter 658; 16 U.S.C. 777 et seq.), popularly

known as the Federal Aid in Fish Restoration Act and as the Dingell-Johnson

Sport Fish Restoration Act.

TITLE I—WILDLIFE RESTORATION

SEC. 101. EXPENDITURES FOR ADMINISTRATION.

(a) ANNUAL SET-ASIDE FOR ADMINISTRATION.—Section 4 of the Wildlife Restoration Act (16 U.S.C. 669c) is amended—

(1) by redesignating subsection (b) as subsection (c);

(2) by amending so much as precedes the second sentence of subsection (a)

to read as follows:

‘‘ALLOCATION AND APPORTIONMENT OF AVAILABLE AMOUNTS

‘‘SEC. 4. (a) SET-ASIDE FOR ADMINISTRATION.—(1) Of the revenues (excluding interest accruing under section 3(b)) covered into the fund in each fiscal year, up to

$5,000,000 may be used by the Secretary for expenses to administer this Act, in accordance with this subsection and section 9 in each of the fiscal years 2001, 2002,

and 2003. Of the revenues (excluding interest accruing under section 3(b)) covered

into the fund in each fiscal year, beginning in fiscal year 2004, such amount, adjusted annually to reflect the changes in the Consumer Price Index, not to exceed

$7,000,000, may be used by the Secretary for expenses to administer this Act, in

accordance with this subsection and section 9.

‘‘(2)(A) The amount authorized to be used by the Secretary under paragraph (1)

each fiscal year shall remain available for obligation for such use until the expiration of that fiscal year. Within 60 days after that fiscal year, the Secretary shall

apportion among the States any of the amount that remains unobligated at the end

of the fiscal year, on the same basis and in the same manner as other amounts authorized by this Act are apportioned among the States for the fiscal year in which

the apportionment is made.

‘‘(B) Within 30 days after the end of each fiscal year, the Secretary shall—

‘‘(i) certify in writing to the Secretary of the Treasury and to each State fish

and game department—

‘‘(I) the amount apportioned under subparagraph (A) to each State in the

most recent apportionment under that subparagraph; and

‘‘(II) amounts obligated by the Secretary during the fiscal year for administration of this Act; and

‘‘(ii) publish in the Federal Register the amounts so certified.

‘‘(b) APPORTIONMENT TO STATES.—’’; and

(3) in subsection (b), as designated by the amendment made by paragraph (2),

by striking ‘‘after making the aforesaid deduction, shall apportion, except as

provided in subsection (b) of this section,’’ and inserting ‘‘after deducting the

amount authorized to be used under subsection (a), the amount apportioned

under subsection (c), any amount apportioned under section 8A, and amounts

provided as grants under sections 10 and 11, shall apportion’’.

(b) REQUIREMENTS AND RESTRICTIONS REGARDING USE OF AMOUNTS FOR ADMINIS- TRATION.—Section 9 of the Wildlife Restoration Act (16 U.S.C. 669h) is amended to

read as follows:

‘‘REQUIREMENTS AND RESTRICTIONS REGARDING USE OF AMOUNTS FOR

ADMINISTRATION

‘‘SEC. 9. (a) AUTHORIZED ADMINISTRATIVE COSTS.—The Secretary may use

amounts under section 4(a)(1) only for administration expenses that directly support

the implementation of this Act and that consist of any of the following:

‘‘(1) Personnel costs of any employee who directly administers this Act on a

full-time basis.

‘‘(2) Personnel costs of any employee who directly administers this Act on a

part-time basis for at least 20 hours each week, not to exceed the portion of

such costs incurred with respect to the work hours of such employee during

which the employee directly administers this Act, as such hours are certified by

the supervisor of the employee.

‘‘(3) Support costs directly associated with personnel costs authorized under

paragraphs (1) and (2) of this subsection not including costs associated with

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staffing and operation of regional offices of the United States Fish and Wildlife

Service and the Department of the Interior, other than for purposes of this Act.

‘‘(4) Costs to evaluate, approve, disapprove, and advise concerning comprehensive fish and wildlife resource management plans under section 6(a)(1) and

wildlife restoration projects under section 6(a)(2).

‘‘(5) Overhead costs, including general administrative services, that are directly attributable to administration of this Act based on—

‘‘(A) actual costs, as determined by a direct cost allocation methodology

approved by the Director of the Office of Management and Budget for use

by Federal agencies; and

‘‘(B) for those costs not determinable pursuant to subparagraph (A), an

amount per full-time equivalent employee authorized pursuant to paragraphs (1) and (2) that does not exceed the amount charged or assessed for

such costs per full-time equivalent employee for any other division or program of the United States Fish and Wildlife Service.

‘‘(6) Costs incurred in auditing the wildlife and sportfish activities of each

State fish and game department and the use of funds under section 6 by each

State fish and game department every 5 years.

‘‘(7) Costs of audits under subsection (d).

‘‘(8) Costs of necessary training of Federal and State full-time personnel who

administer this Act to improve administration of this Act.

‘‘(9) Costs of travel to the States, territories, and Canada by personnel who

administer this Act on a full-time basis for purposes directly related to administration of State programs or projects, or who administer grants under section

6, section 10, or section 11.

‘‘(10) Costs of travel outside of the United States (except travel to Canada)

that relates directly to administration of this Act and that is approved directly

by the Assistant Secretary for Fish and Wildlife and Parks.

‘‘(11) Relocation expenses for personnel who, after relocation, will administer

this Act on a full-time basis for at least 1 year, as certified by the Director of

the United States Fish and Wildlife Service at the time such relocation expenses are incurred.

‘‘(12) Costs to audit, evaluate, approve, disapprove, and advise concerning

grants under section 6, section 10, or section 11.

‘‘(b) UNAUTHORIZED COSTS.—Use of funds for a cost to administer this Act shall

not be authorized because the cost is not expressly prohibited by this Act.

‘‘(c) RESTRICTION ON USE TO SUPPLEMENT GENERAL APPROPRIATIONS.—The Secretary may not use amounts under section 4(a)(1) to supplement any function for

which general appropriations are made for the United States Fish and Wildlife

Service or any other entity of the Department of the Interior.

‘‘(d) AUDIT REQUIREMENT.—(1) The Inspector General of the Department of the Interior shall procure the conduct of biennial audits, in accordance with generally accepted accounting principles, of expenditures of amounts used by the Secretary for

administration of this Act.

‘‘(2) Audits under this subsection shall be performed under contracts that are

awarded under competitive procedures (as that term is defined in section 4 of the

Office of Federal Procurement Policy Act (41 U.S.C. 403)), by a person that is not

associated in any way with the Department of the Interior.

‘‘(3) The auditor selected pursuant to paragraph (1) shall report to, and be supervised by, the Inspector General of the Department of the Interior, except that the

auditor shall submit a copy of the biennial audit findings to the Secretary at the

time such findings are submitted to the Inspector General of the Department of the

Interior.

‘‘(4) The Inspector General of the Department of the Interior shall promptly report

to the Committee on Resources of the House of Representatives and the Committee

on Environment and Public Works of the Senate on the results of each such audit.

‘‘(e) CERTIFICATION BY SECRETARY.—(1) The Secretary shall within 3 months after

each fiscal year certify in writing to the Committee on Resources of the House of

Representatives and the Committee on Environment and Public Works of the Senate the following for the fiscal year:

‘‘(A) The amount of funds used under section 4(a)(1) and a breakdown of categories for which such funds were expended.

‘‘(B) The amount of funds apportioned to States under section 4(a)(2).

‘‘(C) The results of the audits performed pursuant to subsection (d).

‘‘(D) That all funds expended under section 4(a)(1) were necessary for administration of this Act.

‘‘(E) The Secretary, the Assistant Secretary for Fish and Wildlife and Parks,

the Director of the United States Fish and Wildlife Service, and the Assistant

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Director for Wildlife and Sport Fish Restoration Programs each properly discharged their duties under this Act.

‘‘(2) The Secretary may not delegate the responsibility to make certifications

under paragraph (1) except to the Assistant Secretary for Fish and Wildlife and

Parks.

‘‘(3) Within 60 days after the start of each fiscal year, the Assistant Director for

Wildlife and Sport Fish Restoration Programs shall provide to the Committee on Resources of the House of Representatives and the Committee on Environment and

Public Works of the Senate the following for the fiscal year:

‘‘(A) The amount of funds that will be expended in the fiscal year under section 4(a)(1) and a breakdown of categories for which such funds will be expended.

‘‘(B) A description of how the funds to be expended are necessary for administration of this Act.

‘‘(4) The Secretary shall promptly publish in the Federal Register each certification under this subsection.

‘‘(f) CERTIFICATION BY ASSISTANT DIRECTOR FOR WILDLIFE AND SPORT FISH RES- TORATION PROGRAMS.—Within 1 month after the end of each fiscal year, the Assistant Director for Wildlife and Sport Fish Restoration Programs shall—

‘‘(1) certify that—

‘‘(A) all amounts expended in that fiscal year to administer this Act in

agency headquarters and in regional offices of the United State Fish and

Wildlife Service were used in accordance with this Act; and

‘‘(B) all such expenditures were necessary to administer this Act; and

‘‘(2) distribute such certifications to each State fish and game department.’’.

SEC. 102. FIREARM AND BOW HUNTER EDUCATION AND SAFETY PROGRAM GRANTS.

The Wildlife Restoration Act is amended by redesignating section 10 as section

12, and by inserting after section 9 the following:

‘‘FIREARM AND BOW HUNTER EDUCATION AND SAFETY PROGRAM GRANTS

‘‘SEC. 10. (a) IN GENERAL.—Of the revenues covered into the fund in each fiscal

year, $15,000,000, less the amount used under section 4(a) and the amount granted

under section 11(a)(1), shall be apportioned among the States in the manner specified in section 4(b) by the Secretary for the following:

‘‘(1) Grants to States for the enhancement of hunter education programs,

hunter and sporting firearm safety programs, and hunter development programs.

‘‘(2) Grants for the enhancement of interstate coordination and development

of hunter education programs.

‘‘(3) Grants to States for the enhancement of bow hunter and archery education, safety, and development programs.

‘‘(4) Grants to States for the enhancement of construction or enhancement of

firearm shooting ranges and archery ranges, and updating safety features of

firearm shooting ranges and archery ranges.

‘‘(b) COST-SHARING.—The Federal share of the cost of any activity carried out with

a grant under this section may not exceed 75 percent of the total cost of the activity

and the remainder of the cost shall come from a non-Federal source.

‘‘(c) PERIOD OF AVAILABILITY; REAPPORTIONMENT.—Amounts available under this

subsection shall remain available for 1 fiscal year, after which all unobligated balances shall be apportioned among the States in the manner specified in section

4(b).’’.

SEC. 103. MULTI-STATE CONSERVATION GRANT PROGRAM.

The Wildlife Restoration Act is further amended by inserting after section 10 the

following:

‘‘MULTI-STATE CONSERVATION GRANT PROGRAM

‘‘SEC. 11. (a) IN GENERAL.—(1) Up to $2,500,000 of the revenues covered into the

fund each fiscal year shall be available to the Secretary for making multi-State conservation grants in accordance with this section.

‘‘(2) Amounts available under this subsection shall remain available for two fiscal

years, after which all unobligated balances shall be apportioned in the manner specified in section 4(b).

‘‘(b) SELECTION OF PROJECTS.—(1) A project shall not be eligible for a grant under

this section unless it will benefit at least 26 States, a majority of the States in a

region of the United States Fish and Wildlife Service, or a regional association of

State fish and game departments.

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‘‘(2) The Secretary may award grants under this section based only on a priority

list of wildlife restoration projects prepared and submitted by State fish and game

departments acting through the International Association of Fish and Wildlife Agencies each fiscal year in accordance with paragraph (3).

‘‘(3)(A) The International Association of Fish and Wildlife Agencies shall—

‘‘(i) prepare each priority list through a committee comprised of the heads of

State fish and game departments (or their designees);

‘‘(ii) approve each priority list by a majority of the heads of all State fish and

game departments (or their designees); and

‘‘(iii) submit each priority list by not later than October 1 of each fiscal year

to the Assistant Director for Wildlife and Sport Fish Restoration Programs, who

shall accept such list on behalf of the Secretary.

‘‘(B) In preparing any priority list under this paragraph, the International Association of Fish and Wildlife Agencies shall consult with nongovernmental organizations that represent conservation organizations, sportsmen organizations, and industries that support or promote hunting, trapping, recreational shooting, bow hunting,

or archery.

‘‘(4) The Assistant Director for Wildlife and Sport Fish Restoration Programs shall

publish in the Federal Register each priority list submitted under this subsection.

‘‘(c) ELIGIBLE GRANTEES.—(1) The Secretary may make a grant under this section

only to—

‘‘(A) a State or group of States; or

‘‘(B) subject to paragraph (2), a nongovernmental organization.

‘‘(2) Any nongovernmental organization applying for a grant under this section

shall submit with the application to the International Association of Fish and Wildlife Agencies a certification that the organization does not promote or encourage opposition to regulated hunting or trapping of regulated wildlife, and will use any

funds awarded pursuant to this section in compliance with subsection (d).

‘‘(3) Any nongovernmental organization that is found to promote or encourage opposition to regulated hunting or trapping of regulated wildlife or does not use funds

in compliance with subsection (d) shall return all funds received and be subject to

any other penalties under law.

‘‘(d) USE OF GRANTS.—Amounts provided as a grant under this section may not

be used for education, activities, projects, or programs that promote or encourage

opposition to regulated hunting or trapping of regulated wildlife.

‘‘(e) CLARIFICATION.—No activities undertaken by the personnel of State fish and

game departments under this section shall constitute advice or recommendations for

1 or more agencies or officers of the Federal Government.’’.

SEC. 104. MISCELLANEOUS PROVISIONS.

Section 5 of the Wildlife Restoration Act (16 U.S.C. 669d) is amended by inserting

‘‘, at the time such deduction or apportionment is made’’ after ‘‘he has apportioned

to each State’’.

TITLE II—SPORT FISH RESTORATION

SEC. 201. EXPENDITURES FOR ADMINISTRATION.

(a) ANNUAL SET-ASIDE FOR ADMINISTRATION.—Section 4(d) of the Sport Fish Restoration Act (16 U.S.C. 777c(d)) is amended to read as follows:

‘‘(d)(1) Of the balance of each such annual appropriation remaining after the distribution and use under subsections (a), (b), and (c) of this section and section 14,

up to $5,000,000 may be used by the Secretary of the Interior for expenses in accordance with this subsection and section 9 in each of the fiscal years 2001, 2002,

and 2003. Of the balance of each such annual appropriation remaining after the distribution and use under subsections (a), (b), and (c) of this section and section 14,

beginning in fiscal year 2004, such amount, adjusted annually to reflect the changes

in the Consumer Price Index, not to exceed $7,000,000, may be used by the Secretary of the Interior for expenses in accordance with this subsection and section

9.

‘‘(2) The amount authorized to be used by the Secretary under paragraph (1) each

fiscal year shall remain available for obligation for such use until the expiration of

that fiscal year. Within 60 days after the end of that fiscal year, the Secretary shall

apportion any of the amount that remains unobligated at the end of the fiscal year

on the same basis and in the same manner as other amounts authorized by this

Act are apportioned among the States under section 4(e) for the fiscal year in which

the apportionment is made.’’.

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(b) REQUIREMENTS AND RESTRICTIONS REGARDING USE OF AMOUNTS FOR ADMINISTRATION.—Section 9 of the Sport Fish Restoration Act (16 U.S.C. 777h) is amended

to read as follows:

‘‘REQUIREMENTS AND RESTRICTIONS REGARDING USE OF AMOUNTS FOR

ADMINISTRATION

‘‘SEC. 9. (a) AUTHORIZED ADMINISTRATION COSTS.—The Secretary of the Interior

may use amounts under section 4(d) only for administration expenses that directly

support the implementation of this Act and that consist of any of the following:

‘‘(1) Personnel costs of any employee who directly administers this Act on a

full-time basis.

‘‘(2) Personnel costs of any employee who directly administers this Act on a

part-time basis for at least 20 hours each week, not to exceed the portion of

such costs incurred with respect to the work hours of such employee during

which the employee directly administers this Act, as such hours are certified by

the supervisor of the employee.

‘‘(3) Support costs directly associated with personnel costs authorized under

paragraphs (1) and (2).

‘‘(4) Costs to evaluate, approve, disapprove, and advise concerning comprehensive fish and wildlife resource management plans under section 6(a)(1) and fish

restoration and management projects under section 6(a)(2).

‘‘(5) Overhead costs, including general administrative services, that are directly attributable to administration of this Act based on—

‘‘(A) actual costs, as determined by a direct cost allocation methodology

approved by the Director of the Office of Management and Budget for use

by Federal agencies; and

‘‘(B) for those costs not determinable pursuant to subparagraph (A), an

amount per full-time equivalent employee authorized pursuant to paragraphs (1) and (2) that does not exceed the amount charged or assessed for

such costs per full-time equivalent employee for any other division or program of the United States Fish and Wildlife Service.

‘‘(6) Costs incurred in auditing the wildlife and sport fish activities of each

State fish and game department and the use of funds under section 6 by each

State fish and game department every 5 years.

‘‘(7) Costs of audits under subsection (d).

‘‘(8) Costs of necessary training of Federal and State full-time personnel who

administer this Act to improve administration of this Act.

‘‘(9) Costs of travel to the States, territories, and Canada by personnel who

administer this Act on a full-time basis for purposes directly related to administration of State programs or projects, or who administer grants under section

6 or section 14.

‘‘(10) Costs of travel outside of the United States (except travel to Canada)

that relates to administration of this Act and that is approved directly by the

Assistant Secretary for Fish and Wildlife and Parks.

‘‘(11) Relocation expenses for personnel who, after relocation, will administer

this Act on a full-time basis for at least 1 year, as certified by the Director of

the United States Fish and Wildlife Service at the time such relocation expenses are incurred.

‘‘(12) Costs to audit, evaluate, approve, disapprove, and advise concerning

grants under section 6 and section 14.

‘‘(b) UNAUTHORIZED COSTS.—Use of funds for a cost to administer this Act shall

not be authorized because the cost is not expressly prohibited by this Act.

‘‘(c) RESTRICTION ON USE TO SUPPLEMENT GENERAL APPROPRIATIONS.—The Secretary may not use amounts under section 4(d) to supplement any function for

which general appropriations are made for the United States Fish and Wildlife

Service or any other entity of the Department of the Interior.

‘‘(d) AUDIT REQUIREMENT.—(1) The Inspector General of the Department of the Interior shall procure the conduct of biennial audits, in accordance with generally accepted accounting principles, of expenditures of amounts used by the Secretary for

administration of this Act.

‘‘(2) Audits under this subsection shall be performed under contracts that are

awarded under competitive procedures (as that term is defined in section 4 of the

Office of Federal Procurement Policy Act (41 U.S.C. 403)), by a person that is not

associated in any way with the Department of the Interior.

‘‘(3) The auditor selected pursuant to paragraph (1) shall report to, and be supervised by, the Inspector General of the Department of the Interior, except that the

auditor shall submit a copy of the biennial audit findings to the Secretary of the

7

Interior at the time such findings are submitted to the Inspector General of the Department of the Interior.

‘‘(4) The Inspector General of the Department of the Interior shall promptly report

to the Committee on Resources of the House of Representatives and the Committee

on Environment and Public Works of the Senate on the results of each such audit.

‘‘(e) CERTIFICATION BY SECRETARY.—(1) The Secretary of the Interior shall within

3 months after each fiscal year certify in writing to the Committee on Resources

of the House of Representatives and the Committee on Environment and Public

Works of the Senate the following for the fiscal year:

‘‘(A) The amount of funds used under section 4(d) and a breakdown of categories for which such funds were expended.

‘‘(B) The amount of funds apportioned to States under section 4(d)(2)(A).

‘‘(C) The results of the audits performed pursuant to subsection (d).

‘‘(D) That all funds expended under section 4(d) were necessary for administration of this Act.

‘‘(E) The Secretary, Assistant Secretary for Fish and Wildlife and Parks, the

Director of the United States Fish and Wildlife Service, and the Assistant Director for Wildlife and Sport Fish Restoration Programs each properly discharged

their duties under this Act.

‘‘(2) The Secretary may not delegate the responsibility to make certifications

under paragraph (1) except to the Assistant Secretary for Fish and Wildlife and

Parks.

‘‘(3) The Secretary shall promptly publish in the Federal Register each certification under this subsection.

‘‘(f) CERTIFICATION BY ASSISTANT DIRECTOR FOR WILDLIFE AND SPORT FISH RES- TORATION PROGRAMS.—Within 1 month after the end of each fiscal year, the Assistant Director for Wildlife and Sport Fish Restoration Programs shall—

‘‘(1) certify that—

‘‘(A) all amounts expended in that fiscal year to administer this Act in

agency headquarters and in regional offices of the United States Fish and

Wildlife Service were used in accordance with this Act; and

‘‘(B) all such expenditures were necessary to administer this Act; and

‘‘(2) distribute such certifications to each State fish and game department.’’.

SEC. 202. MULTI-STATE GRANT PROGRAM.

(a) ESTABLISHMENT OF PROGRAM.—The Sport Fish Restoration Act is amended by

striking the second section 13 (16 U.S.C. 777 note) and inserting the following:

‘‘MULTI-STATE CONSERVATION GRANT PROGRAM

‘‘SEC. 14. (a) IN GENERAL.—(1) Of the balance of each annual appropriation made

in accordance with section 3 remaining after the distribution and use under subsections (a), (b), and (c) of section 4 each fiscal year, up to $2,500,000 shall be available to the Secretary of the Interior for making multi-State conservation grants in

accordance with this section.

‘‘(2) Amounts available under this subsection shall remain available for 2 fiscal

years, after which all unobligated balances shall be apportioned in the manner specified in section 4(e).

‘‘(b) SELECTION OF PROJECTS.—(1) A project shall not be eligible for a grant under

this section unless it will benefit at least 26 States, a majority of the States in a

region of the Fish and Wildlife Service, or a regional association of State fish and

game departments.

‘‘(2) The Secretary of the Interior may award grants under this section based only

on a priority list of sportfish restoration projects prepared and submitted by State

fish and game departments acting through the International Association of Fish and

Wildlife Agencies each fiscal year in accordance with paragraph (3).

‘‘(3)(A) The International Association of Fish and Wildlife Agencies shall—

‘‘(i) prepare each priority list through a committee comprised of the heads of

State fish and game departments (or their designees);

‘‘(ii) approve each priority list by a majority of the heads of State fish and

game departments (or their designees); and

‘‘(iii) submit each priority list by not later than October 1 of each fiscal year

to the Secretary of the Interior.

‘‘(B) In preparing any priority list under this paragraph, the International Association of Fish and Wildlife Agencies shall consult with nongovernmental organizations that represent conservation organizations, sportsmen organizations, and industries that fund the Sport Fish Restoration Programs.

‘‘(4) The Assistant Director for Wildlife and Sport Fish Restoration Programs shall

publish in the Federal Register each priority list submitted under this subsection.

8

‘‘(c) ELIGIBLE GRANTEES.—(1) The Secretary of the Interior may make a grant

under this section only to—

‘‘(A) a State or group of States; or

‘‘(B) subject to paragraph (2) a nongovernmental organization.

‘‘(2) Any nongovernmental organization applying for a grant under this section

shall submit with the application to the International Association of Fish and Wildlife Agencies a certification that the organization does not promote or encourage opposition to the regulated taking of fish and will use any funds awarded pursuant

to this section in compliance with subsection (d).

‘‘(3) Any nongovernmental organization that is found to promote or encourage opposition to the regulated taking of fish or does not use funds in compliance with

subsection (d) shall return all funds received and be subject to any other penalties

under law.

‘‘(d) USE OF GRANTS.—Amounts provided as a grant under this section may not

be used for education, activities, projects, or programs that promote or encourage

opposition to the regulated taking of fish.

‘‘(e) CLARIFICATION.—No activities undertaken by the personnel of State fish and

game departments, other State agencies, or organizations of State fish and game departments under this section shall constitute advice or recommendations for 1 or

more agencies or officers of the Federal Government.

‘‘(f) FUNDING FOR MARINE FISHERIES COMMISSIONS.—Of the balance of each annual appropriation made in accordance with section 3 remaining after the distribution and use under subsections (a), (b), and (c) of section 4 each fiscal year and after

deducting amounts used for grants under subsection (a) of this section, $200,000

shall be available for each of—

‘‘(1) the Atlantic States Marine Fisheries Commission;

‘‘(2) the Gulf States Marine Fisheries Commission;

‘‘(3) the Pacific States Marine Fisheries Commission; and

‘‘(4) the Great Lakes Fisheries Commission.’’.

(b) CONFORMING AMENDMENTS.—Section 4 of the Sport Fish Restoration Act (16

U.S.C. 777c) is amended in subsection (e) by inserting ‘‘of this section and section

14’’ after ‘‘subsections (a), (b), (c), and (d)’’.

SEC. 203. CERTIFICATIONS.

Section 5 of the Sport Fish Restoration Act (16 U.S.C. 777d) is amended—

(1) by striking ‘‘SEC. 5.’’ and inserting the following:

‘‘CERTIFICATIONS

‘‘SEC. 5. (a) ADMINISTRATIVE DEDUCTION AND STATE APPORTIONMENTS.—’’;

(2) in subsection (a) (as designated by the amendment made by paragraph (1)

of this section) by inserting ‘‘, at the time such deduction or apportionment is

made’’ after ‘‘apportioned to each State for such fiscal year’’; and

(3) by adding at the end the following:

‘‘(b) FISCAL YEAREND CERTIFICATION BY SECRETARY.—Within 30 days after the

end of each fiscal year, the Secretary of the Interior shall—

‘‘(1) certify in writing to the Secretary of the Treasury and to each State fish

and game department—

‘‘(A) the amount apportioned under section 4(d)(2) to each State in the

most recent apportionment under that section for that fiscal year; and

‘‘(B) amounts obligated by the Secretary during the fiscal year for administration of this Act; and

‘‘(2) publish in the Federal Register the amounts so certified.

‘‘(c) CERTIFICATION BY ASSISTANT DIRECTOR.—(1) Within 60 days after the start

of each fiscal year, the Assistant Director for Wildlife and Sport Fish Restoration

Programs shall provide to the Committee on Resources of the House of Representatives and the Committee on Environment and Public Works of the Senate the following for the fiscal year:

‘‘(A) The amount of funds that will be expended in the fiscal year under section 4(d)(2) and a breakdown of categories for which such funds will be expended.

‘‘(B) A description of how the funds to be expended are necessary for administration of this Act.

‘‘(2) The Secretary of the Interior shall promptly publish in the Federal Register

each certification under this subsection.’’.

SEC. 204. PERIOD OF AVAILABILITY.

Section 4(f) of the Sport Fish Restoration Act (16 U.S.C. 777c) is amended by

striking the first sentence.

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TITLE III—WILDLIFE AND SPORT FISH

RESTORATION PROGRAMS

SEC. 301. DESIGNATION OF PROGRAMS.

The programs established under the Wildlife Restoration Act and the Sport Fish

Restoration Act may be collectively referred to as the Federal Assistance Program

for State Wildlife and Sport Fish Restoration Programs.

SEC. 302. ASSISTANT DIRECTOR FOR WILDLIFE AND SPORT FISH RESTORATION PROGRAMS.

(a) ESTABLISHMENT.—There is established within the United States Fish and

Wildlife Service of the Department of the Interior an Assistant Director for Wildlife

and Sport Fish Restoration Programs.

(b) SUPERIOR.—The Assistant Director for Wildlife and Sport Fish Restoration

Programs shall report directly to the Director of the United States Fish and Wildlife

Service.

(c) RESPONSIBILITIES.—The Assistant Director for Wildlife and Sport Fish Restoration Programs shall be responsible for the administration, management, and oversight of the Federal Assistance Program for State Wildlife and Sport Fish Restoration Programs under the Wildlife Restoration Act and the Sport Fish Restoration

Act.

SEC. 303. CHIEF OF THE DIVISION OF FEDERAL AID.

The Chief of the Division of Federal Aid of the Department of the Interior, or any

similar position, is abolished and the duties of that position shall be the responsibility of the Assistant Director for Wildlife and Sport Fish Restoration Programs.

PURPOSE OF THE BILL

The purpose of H.R. 3671 is to amend the Acts popularly known

as the Pittman-Robertson Wildlife Restoration Act and the DingellJohnson Sport Fish Restoration Act to enhance the funds available

for grants to States for fish and wildlife conservation projects and

increase opportunities for recreational hunting, bow hunting, trapping, archery and fishing, by eliminating opportunities for waste,

fraud, abuse, maladministration, and unauthorized expenditures

for administration and execution of those Acts, and for other purposes.

BACKGROUND AND NEED FOR LEGISLATION

A. HISTORY

In 1937, Congress enacted the Federal Aid in Wildlife Restoration Act (popularly known as Pittman-Robertson Wildlife Restoration Act, 16 U.S.C. 669 et seq.) so that the federal government and

the States would ‘‘cooperatively engage in a broad program which

will not only preserve our present-day limited supply of wildlife,

but restore it to some semblance of its former abundance.’’ (See,

Aid to States In Wildlife Restoration Projects, Report No. 1572, 1st

Session, 75th Cong.). Wildlife restoration was to be funded though

excise taxes on sporting arms and ammunition. The theory behind

that Act was that money taken in by Government agencies from

sportsmen’s license fees and excise taxes should be spent for the

conservation and maintenance of wildlife species.

To get the conservation money collected through excise taxes for

a State project, the State game and fish departments had to make

laws governing the conservation of wildlife that included a prohibition against the diversion of license fees paid by hunters for any

other purpose than the administration of State fish and game departments. This created a funding source for the State matching

10

requirement that would be needed to obtain the federal portion of

the grants to the States.

The Fiscal year (FY) 1951 General Appropriations Act (Public

Law 759) added language so that the wildlife conservation trust

fund would have a permanent appropriation, making excise tax

money collected automatically available to the Fish and Wildlife

Service for apportionment and then grants to the States.

In 1970 revenue from an 11 percent excise tax on pistols and revolvers was added to the fund. One-half of those revenues would

be available for hunter education programs and construction and

maintenance of public target ranges, with the other half of the revenues going toward wildlife restoration projects. In addition, another provision encouraged comprehensive planning by State fish

and game departments.

In 1972 an 11 percent excise tax was placed on archery equipment. Half of this revenue was designated for wildlife restoration

and the other half was added to hunter education and target range

development.

In 1950, Congress enacted the Federal Aid in Fish Restoration

(popularly known as Dingell-Johnson Sport Fish Restoration Act,

16 U.S.C. 777 et seq.). Patterned after the Pittman-Robertson Act,

the Dingell-Johnson Act was to do for sport fish what the PittmanRobertson Act had done for wildlife: create a program of aid to the

States for the restoration and management of sport fish resources

of the States. The Dingell-Johnson Act is financed by a ten percent

tax on fishing rods, reels, and artificial lures, bait and flies.

In 1984 an amendment to the Dingell-Johnson Act established a

new trust fund, the Aquatic Resources Trust Fund (sport fish trust

fund) which is divided into two accounts: the Boat Safety Account

and the Sport Fish Restoration Account. The base tax was expanded to include all items of fishing tackle, new motorboat fuel

taxes and import duties on fishing tackle and boats. In 1990 an increase in federal fuel excise taxes deposited to the Highway Trust

Fund was mandated, of which 1.08 percent was to accrue to the

Aquatic Resources Trust Fund. Federal fuel tax receipts attributable to small gasoline engines were designated for deposit to the

Sport Fish Restoration Account.

Since its inception, the Pittman-Robinson Wildlife Restoration

Act has provided over $2 billion for State wildlife restoration

projects, and the Dingell-Johnson Sport Fish Restoration Act has

provided more than $3.6 billion for State sport fish restoration

projects. Both Acts are administered by the United States Fish and

Wildlife Service (FWS) of the Department of the Interior. Collectively, the two Acts are known as the Federal Aid Program.

Under the both Acts, administration is funded by withholding a

percentage (up to eight percent in the case of Pittman-Robertson

and up to six percent in the case of Dingell-Johnson) of the revenues in each fund each fiscal year. The Secretary of the Interior

has discretion to withhold up to the maximum percentage, provided

the funds are used to ‘‘administer and execute’’ the Acts. To date,

$237,176,491 was used for administration of the Wildlife Restoration Act and $186,240,791 was used for administration of the Sport

Fish Restoration Act. Under the Dingell-Johnson Act, before the

administration and execution funds are taken, other distributions

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are made from the trust funds for the Coastal Wetlands Planning,

Protection and Restoration Act, projects under the Clean Vessel Act

of 1992, projects under the Sportfishing and Boating Safety Act of

1998, recreational boating and safety programs and funds for National Outreach and Communications Program.

After deduction for ‘‘administration and execution,’’ the remainder of the trust funds are apportioned to the States according to

a formula established in the Acts. The amount for administration

is available for two fiscal years, and any remainder is then apportioned by the formula to the State fish and game departments. Administering the amounts apportioned to the States is done through

a grant process.

The FWS Division of Federal Aid allocates trust funds to the

States for fish and wildlife restoration projects. In FY 1998, the

combined excise taxes collected for the Federal Aid programs were

$426,836,814, of which ‘‘administration and execution’’ funds were

$30,825,115. As the chart below demonstrates, during the last two

years the six percent and eight percent caps have been reached and

prior to that even greater percentages were taken. The yearly average for the Federal Aid Program administrative expenses since

1993 was $26,511,924.

FEDERAL AID DEDUCTIONS FOR ADMINISTRATION

Fiscal Year

Wildlife Restoration Sport Fish Restoration

Amount Percentage Amount Percentage

1959 and earlier .................................................................... $7,786,190 ...................... $1,766,130 ......................

1960 ....................................................................................... 766,193 4.6 289,379 5.2

1961 ....................................................................................... 857,708 5.5 350,695 6.0

1962 ....................................................................................... 985,093 6.6 453,432 7.2

1963 ....................................................................................... 979,717 6.6 478,494 7.9

1964 ....................................................................................... 580,000 3.6 203,000 3.2

1965 ....................................................................................... 719,941 4.1 316,529 4.3

1966 ....................................................................................... 964,720 4.5 563,380 7.7

1967 ....................................................................................... 810,804 3.3 359,018 4.5

1968 ....................................................................................... 1,485,901 5.3 493,513 5.0

1969 ....................................................................................... 1,051,605 3.4 383,299 4.2

1970 ....................................................................................... 1,406,322 4.3 573,719 4.8

1971 ....................................................................................... 2,005,725 6.1 819,091 5.3

1972 ....................................................................................... 2,249,089 7.6 868,045 6.1

1973 ....................................................................................... 2,288,533 5.1 922,667 7.1

1974 ....................................................................................... 2,415,268 4.8 903,348 5.9

1975 ....................................................................................... 3,384,672 5.9 1,338,692 7.4

1976 ....................................................................................... 4,446,646 7.1 1,694,197 7.7

1977 ....................................................................................... 5,287,154 5.9 1,784,610 6.7

1978 ....................................................................................... 4,889,316 7.2 2,031,887 7.7

1979 ....................................................................................... 3,818,633 4.1 1,369,505 4.8

1980 ....................................................................................... 4,974,102 5.3 2,417,772 7.9

1981 ....................................................................................... 7,250,651 7.9 2,690,051 8.0

1982 ....................................................................................... 4,927,999 4.0 1,973,626 6.2

1983 ....................................................................................... 4,394,029 3.9 2,201,798 6.3

1984 ....................................................................................... 5,256,702 5.6 2,325,466 5.9

1985 ....................................................................................... 6,772,254 7.9 3,025,995 7.9

1986 ....................................................................................... 8,528,516 7.1 7,267,378 5.9

1987 ....................................................................................... 6,487,540 5.9 5,855,884 4.2

1988 ....................................................................................... 5,189,251 5.9 5,373,398 4.2

1989 ....................................................................................... 7,534,070 6.0 7,162,802 3.8

1990 ....................................................................................... 9,994,000 7.9 10,391,000 5.4

1991 ....................................................................................... 13,683,734 8.0 12,541,280 6.0

1992 ....................................................................................... 9,958,217 6.2 12,514,431 5.8

1993 ....................................................................................... 11,888,000 7.5 11,714,000 5.2

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FEDERAL AID DEDUCTIONS FOR ADMINISTRATION—Continued

Fiscal Year

Wildlife Restoration Sport Fish Restoration

Amount Percentage Amount Percentage

1994 ....................................................................................... 11,297,000 6.2 10,573,000 5.7

1995 ....................................................................................... 14,012,598 6.3 12,750,084 6.0

1996 ....................................................................................... 14,326,972 6.6 12,583,206 6.0

1997 ....................................................................................... 13,681,466 7.6 13,994,166 5.0

1998 ....................................................................................... 13,461,598 8.0 17,363,517 6.0

1999 ....................................................................................... 14,378,562 8.0 13,559,307 6.0

Total .......................................................................... $237,176,491 3 5.9 $186,240,791 4 5.9

1Wildlife Restoration deductions began in 1939 and Sport Fish Restoration deductions began in 1952.

2 Includes transition quarter funding.

3 This is the average percentage for the 1960 to 1999 period.

4 This is the average percentage for the 1960 to 1999 period.

Source: Published Federal Aid data on deductions made for administration.

B. OVERSIGHT

The Committee on Resources initiated an oversight review of the

‘‘administration and execution’’ expenditures by the FWS through

its Division of Federal Aid in December 1998 through the Government Accounting Office (GAO) and in March 1999 (through Committee staff). GAO and the Committee encountered a severe lack

of documentation explaining where and how funds were spent. It

was difficult to determine who within the FWS made decisions

about how to spend the administration dollars. To date, the FWS

has been unable to provide a clear accounting of how ‘‘administration and execution’’ funds were spent. Even considering a lack of

documentation, the review uncovered irresponsible, wasteful, unauthorized and inappropriate expenditures of the administration and

execution funds.

The Committee on Resources held three oversight hearings to examine how the FWS through its Division of Federal Aid administered and executed the Pittman-Robertson Act and Dingell-Johnson

Act. It was revealed that the funds withheld by the Department of

Interior to administer and execute the Pittman-Robertson and Dingell-Johnson Acts were used for expenses unrelated to the administration of these Acts. In addition, some funds that were used for

appropriate and legitimate administration of these programs were

not used responsibly. A lack of fiscal and organizational accountability and management throughout the Federal Aid Program was

uncovered and found to be reinforced by those who were supposed

to be administering these programs at all levels of the FWS. In

fact, GAO characterized the program as the ‘‘one of the worst managed programs’’ the investigators had ever encountered.

Since the establishment of the Pittman-Robertson and DingellJohnson Acts, Congress has not reviewed the administration of the

Federal Aid Program. The direct and indefinite appropriation of the

funds to the Wildlife and Sport Fish Restoration accounts does not

provide the yearly appropriations scrutiny that most other programs within federal agencies must undergo to receive funds, and

there were no other built-in checks for administration and execution expenditures. In part, this contributed to an environment that

enabled the FWS to invent new uses for trust fund money or cover

costs unrelated to the administration and execution of Federal Aid

Program.

13

In general, the Committee oversight found that because the authorizing legislation makes ‘‘administration and execution’’ funds

available based on a percentage of the money in the Federal Aid

Program, new ways to spend the maximum available administration and execution money were found. In federal agencies there are

innumerable ‘‘needs’’ for money, but in many years the bulk of ‘‘administration and execution’’ expenditures were either unauthorized

or only tangentially related administration of this program. While

the core function of administering the restoration programs—dispensing wildlife and fish conservation grants to States and ensure

that the funds are properly spent—did not change over the years,

a host of other uses of administration money were devised.

Abuse of administration funds occurred throughout the FWS

from the Washington Office level down to the Regional level. Adding to the abuse of administrative funds is the mismanagement of

the Federal Aid Program by the Service. According to the GAO, collectively the problems suggest a lack of attention to detail that

erodes the Division of Federal Aid’s ability to effectively manage

and oversee the administrative aspects of the program. In each

area where administrative funds are used, there are problems.

These include ineffective management oversight, inadequate internal controls, and inadequate policies and procedures for reviewing

and approving administrative expenditures. As a result, it appears

that some of the administrative funds have been spent unnecessarily and ineffectively. GAO testified at both hearings that these

conditions have spawned a culture of permissive spending that

raises significant questions about whether the Division is meeting

its management responsibilities.

For example, the GAO and Committee investigations discovered

that administration funds were being used by entities other than

the Federal Aid Program. In some instances, individuals within the

Director’s office of the FWS were using Federal Aid Program administration funds for expenses unrelated to Federal Aid. In other

instances, Regional Directors of the seven Fish and Wildlife Service

Regions were using administration funds for expenses unrelated to

Federal Aid. Under both scenarios expenses were being ‘‘charged’’

to administration of the Federal Aid Program that had nothing at

all to do with administration of the Program.

C. ABUSES AND SOLUTIONS

The Committee focused on the Federal Aid program administration expenses in FY 1998, although different abuses occurred in different years to different degrees. For FY 1998, the Committee identified at least $15.8 million in ‘‘administration and execution’’ funds

that were not used for administration of the Federal Aid Program.

Some of these abuses are highlighted below with the proposed

changes in the bill designed to curb or stop the abuses:

Administration and Execution Expenses

As stated above, in the original Acts, the FWS is able to withhold

up to eight percent of the wildlife revenues and up to six percent

of the sport fish revenues (after deductions for specific grant programs) for ‘‘administration and execution’’ of the two Acts. The

GAO testified that while program administration was a relatively

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well-understood concept, neither statute specifies exactly what

might constitute program ‘‘execution.’’ While the Committee disagrees with the FWS’s contorted reading of the law, the bill deals

with this problematic shortfall in the existing Acts in three ways:

(1) it eliminates all references to funds being used for ‘‘execution;’’

(2) it specifies clearly what functions constitute ‘‘administration’’ of

the law; and (3) it substitutes a reasonable dollar amount for the

percentage concept in current law.

These changes eliminate entirely any possible interpretation, as

the FWS testified, that the agency had ‘‘broad discretionary authority under the law’’ to spend administration funds as it wished.

Thus, reading Section 9 of both Acts (that authorizes things like

paying for employees, clerks, and equipment) in combination with

the word ‘‘execution’’ is no longer a possible justification for the

FWS to use any funds authorized for administration of the laws

however it wishes. The percentage scenario, coupled with the contorted reading of Section 9, was used as a license to allow the administration of the Federal Aid Program to grow unchecked. The

size of the administration side of the program became a function

of funds available for administration, not the needs of properly carrying out apportionments and grants to the States for conservation

projects and programs.

The three modifications also are intended to ensure that the bulk

of the revenues in the fund go for the purposes of the Acts—to the

States for wildlife and sport fish restoration projects. The modifications also avoid a varying level of administration funds. For example, under current law if there is a spike in fishing equipment

sales, the revenues put into the fund would increase and there

would be a 1:1 increase in the amount of funds available for administration. There are not necessarily added needs for administering

the new level of money in the sport fish trust fund; however, the

opportunity for ‘‘creatively’’ finding new ways to spend the additional ‘‘administration’’ money was easy and often occurred.

The construction of these modifications will also allow better fiscal planning, force the FWS and the Division of Federal Aid to

make choices most important to its core function, and provide for

more than adequate attention to the core functions of administering the program. Providing a dollar cap forces the FWS to request a new cap when it needs additional funds. This will give the

Committee the opportunity to review administrative spending and

determine if the additional funds are needed for administration of

the Program.

Due to lack of data provided by the FWS, the bill authorizes a

total of $15 million for expenses that were formerly funded though

‘‘administration and execution’’ withholdings. This includes a new

statutory $5 million multi-state grant program for projects that

benefit groups of States or regions. The remaining funds for administration (in FY 2001–2003) are $10 million total, combining sport

fish and wildlife administration. Of that amount, the Committee

anticipates the following staffing levels at the grade indicated for

administration of the programs:

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Washington Office

Staffing levels outlined below will enable the Assistant Director

to have the staff needed to administer, manage and oversee the

Federal Aid Program. This structure will reinstate biological support for the Federal Aid Program and provide the fiscal integrity

and accountability of the Program. By eliminating excess staffing,

more funds will be available for the States for on-the-ground

projects. The goal is to eliminate the bureaucracy that developed

over time when there was a sense of unlimited funds that facilitated growth of the Program.

Assistant Director for Wildlife and Sport Fish Restoration Programs (1) [SES/GS 15]—Administration, management, and oversight of the wildlife and sport fish restoration programs under the

Wildlife Restoration Act and the Sport Fish Restoration Act.

Wildlife Biologist (2) [GS 14]—Administer regional office operations consistently with regard to national issues, visit regional offices, maintain consistency between regions, deal with programmatic national issues.

Fish Biologist (2) [GS 14]—Administer regional office operations

consistently with regard to national issues, visit regional offices,

maintain consistency between regions, deal with programmatic national issues.

Accounting/Auditing (2) [GS 13]—Tracking of all financial transactions involving administrative funds, supervision of the State audits, administration of State audit resolutions consistently throughout the United States and the Territories.

Reporting Administration (1) [GS 12]—Fulfillment of reporting

requirements for the Federal Assistance Program for Wildlife and

Sport Fish Restoration.

Multi-State Conservation Grant/Firearm & Bow Hunter Grant

Administration (1) [GS 13]—Administration and oversight of the

grants awarded under the Multi-State Conservation Grant Program and the Firearm and Bow Hunting Grant Program.

Secretarial/Office Support (4) [GS 5/6/7]—General secretarial

support for the Washington Office.

Computer Support (2) [GS 12/13]—Computer support for the

FAIMS system. These individuals would provide support for all

Federal Aid offices.

Regulation Management (1) [GS 13]—Writing and management

of regulations for the Federal Assistance Program for Wildlife and

Sport Fish Restoration.

Regional Offices

Each Region will have an Assistant Regional Director for Wildlife

and Sport Fish Restoration Programs. The responsibilities will be

to administer, manage and oversee the Program at the Regional

level. This includes administering and overseeing the grants that

are awarded under the State apportionments. The number and size

of the States in each Region will be reflected in the staffing of the

Regional office. Depending on the number and size of the States in

each Region, the number of biologists will vary as will the number

of secretarial/support staff. A breakdown in the staffing of each Region is provided below:

16

Region 1

Assistant Regional Director for Wildlife and Sport Fish Restoration

Programs (1) [GS 14]

Secretarial/Office Support (1) [GS 5/6]

Senior Wildlife Biologist (1) [GS 13]

Senior Fish Biologist (1) [GS 13]

Junior Wildlife Biologist (1) [GS 9/10/11/12]

Junior Fish Biologist (1) [GS 9/10/11/12]

Region 2

Assistant Regional Director for Wildlife and Sport Fish Restoration

Programs (1) [GS 14]

Secretarial/Office Support (1) [GS 5/6]

Senior Wildlife Biologist (1) [GS 13]

Senior Fish Biologist (1) [GS 13]

Region 3

Assistant Regional Director for Wildlife and Sport Fish Restoration

Programs (1) [GS 14]

Secretarial/Office Support (1) [GS 5/6]

Senior Wildlife Biologist (2) [GS 13]

Senior Fish Biologist (2) [GS 13]

Program Administrator (1) [GS 11/12]

Region 4

Assistant Regional Director for Wildlife and Sport Fish Restoration

Programs (with wildlife/fish background) (1) [GS 14]

Secretarial/Office Support (1) [GS 5/6]

Senior Wildlife Biologist (2) [GS 13]

Senior Fish Biologist (2) [GS 13]

Junior Wildlife Biologist (1) [GS 9/10/11/12]

Junior Fish Biologist (1) [GS 9/10/11/12]

Program Administrator (1) [GS 11/12]

Region 5

Assistant Regional Director for Wildlife and Sport Fish Restoration

Programs (1) [GS 14]

Secretarial/Office Support (2) [GS 5/6]

Senior Wildlife Biologist (2) [GS 13]

Senior Fish Biologist (2) [GS 13]

Junior Wildlife Biologist (.5) [GS 9/10/11/12]

Junior Fish Biologist (.5) [GS 9/10/11/12]

Program Administrator (1) [GS 11/12]

Region 6

Assistant Regional Director for Wildlife and Sport Fish Restoration

Programs (1) [GS 14]

Secretarial/Office Support (2) [GS 5/6]

Senior Wildlife Biologist (2) [GS 13]

Senior Fish Biologist (2) [GS 13]

Program Administrator (1) [GS 11/12]

17

Region 7

Assistant Regional Director for Wildlife and Sport Fish Restoration

Programs (1) [GS 14]

Secretarial/Office Support (1) [GS 5/6]

Senior Wildlife Biologist (1) [GS 13]

Senior Fish Biologist (1) [GS 13] This staffing level provides 63 FTEs. Using the $76,000 per employee figure provided by the FWS for salary and benefits, approximately $5 million of the authorized amount would be used for personnel and support costs.

Administrative Grants Program

The FWS created an ‘‘Administrative Grants Program’’ from administrative funds that were ‘‘left over.’’ According to the Acts,

funds not used for administration within the two year period are

to be returned to the States through the apportionment formula.

Instead of returning the funds to the States as directed by the law,

the FWS created an administrative grants program, in spite of the

fact that no words in either statute authorize such a grant program. The theory behind the program was to fund projects that

would benefit a majority of the States. In reviewing the projects

that were funded through the Administrative Grant Program, not

all projects funded met even this criteria. For example, some

projects benefitted States of a specific region. In addition, the

projects that the Director decided to fund did not always reflect the

wishes of the States. In some cases, the Director would approve

projects for funding that the States did not feel were a priority and

should not be funded.

H.R. 3671 recognized the value of funding some projects that

benefit groups of States by creating a new (but more transparent

and clearly authorized) Multi-State Conservation Grant Program.

The Multi-State Conservation Grant Program (MSCGP) authorizes

projects that benefit a majority of the States or the majority of

States in a Region of the FWS or a majority of the States within

a regional association of State fish and game departments. A State,

group of States, or a non-governmental organization may apply for

a grant under the MSCGP. The International Association of Fish

and Wildlife Agencies, which is the organization that represents all

State fish and game departments, plays a central role in coordinating recommendations of worthwhile projects to the Secretary of

the Interior. This legislation was designed to allow those groups

that primarily pay into the trust funds to have a strong voice in

the recommendations of conservation projects from which the Secretary may select.

Non-governmental organizations may apply for grants under the

MSCGP if they meet specific criteria. For the wildlife grants, the

organization must certify that it does not promote or encourage opposition to regulated hunting or trapping of wildlife, and will not

use the funds awarded for education, activities, projects or programs that promote or encourage opposition to regulated hunting

or trapping of wildlife. Any non-governmental organization that is

found to promote or encourage opposition to regulated hunting or

trapping of wildlife or does not use the funds as stated in the law

will return all funds received and be subject to any other penalties

18

under law. On the sport fish side, the non-governmental organizations may not oppose the regulated taking of fish or use the funds

for education, activities, projects or programs that promote or encourage opposition to the regulated taking of fish.

These criteria were developed to ensure that the anglers, hunters, and shooters who pay the excise taxes see the benefits of enhanced hunting, fishing, and shooting conservation and recreation

opportunities. Groups that oppose those activities and groups who

do not promote those activities are not to receive grant money

under the MSCGP. These criteria were also developed in response

to testimony before the Committee concerning an administrative

grant that was applied for by the Fund for Animals. The Fund for

Animals had applied for two administrative grants. The grant applications were reviewed by Federal Aid Program grant administrators, and were found not to satisfy the criteria established for the

grants. However, superiors of the grant administrator, Mr. Jim

Beers, at the FWS pressured him to approve the grant despite the

fact that it lacked several criteria for the grant. He was then forced

out of his job.

Jim Beers served with the FWS for thirty years. In his capacity

as a grants administrator in the Federal Aid Program, Mr. Beers

turned down funding for animal-rights applicants. The FWS, in reaction to his refusal of approving the application of an animalrights group for consideration as an administrative grant and his

work on a humane trapping standards project, announced that Mr.

Beers would be transferred to a Regional office in Massachusetts.

Mr. Beers alleged that his transfer was illegal and that FWS had

proposed to transfer him because he differed with his superiors

over whether to approve a request for grant money that had been

filed by the Fund for Animals, a conservation group, and because

of his involvement in the negotiation of an international agreement

concerning humane trapping standards. Mr. Beers received a highly favorable award with the help of the Office of Special Counsel.

It was troubling to the Committee this type of mistreatment occurred and that excise taxes paid by sportsmen and women might

be available for groups diametrically opposed to the activities from

which the revenues are collected. Therefore, while sanctioning and

providing legislative authorization for a MSCGP grant, the Committee ensured that funds available in the new MSCG program

would not be used in any way to the detriment of the interests of

those who collectively pay the excise taxes that fund the wildlife

and sport fish conservation programs.

Certain projects were being funded with admininstrative funds

under the direction of the FWS without concurrence of the State

fish and game departments. Some of these projects have been described as necessary, while others have been described as unnecessary. For example, the Management Assistance Team (MAT) provided consultant services to State fish and game departments on a

wide range of topics including organization development, planning,

budgeting, leadership development, programmatic and agency review, work force diversity, commissions and boards, and organization effectiveness. MAT was previously funded solely by the Service

and evolved into being fully funded by the Federal Aid Program.

MAT employed six FWS FTEs and an additional 11 contract perVerDate 20-MAR-2000 06:35 Mar 31, 2000 Jkt 079006 PO 00000 Frm 00018 Fmt 6659 Sfmt 6602 E:\HR\OC\HR554.010 pfrm03 PsN: HR554
19

sonnel. A recently removed homepage of MAT described the services they provide to State game and fish departments as ‘‘free.’’ The

services, however, were not free. In fact the States were funding

MAT through administration and execution dollars belonging to the

Federal Aid Program. Instead of apportioning funds not used for

administration back to the States, the Service funneled the money

to MAT. This decision was not being made by the States and was

not related to administering the conservation trust funds managed

by the Division of Federal Aid.

Another example is the funding of the National Fishing and

Hunting Survey. The survey is conducted every five years at a current cost of $10 million. Over the years, States have complained

about the timeliness of the data and the method and information

gathered and whether it was helpful. The Survey was one of the

most expensive projects that was funded with administration

funds. The Service transferred in 1997 a total of almost $9.7 million from its interest-earning account to cover the cost of the Survey over a five year period. By transferring the money prematurely,

the FWS lost over $400,000 in interest, which would have increased the amount of funds in the program. Again, the FWS was

making spending decisions for the State game and fish departments.

A final example of funding from administration is the funding of

the Fish and Wildlife Reference Service. Since 1965, the Federal

Aid Program has been fully funding the Fish and Wildlife Reference Service (FWRS). FWRS receives, indexes, stores and distributes copies of reports produced by State fish and wildlife agencies

from research studies supported by Federal Aid Program funding.

FWRS also receives reports produced by the Anadromous Fish Conservation Program, the Endangered Species Grant Program, and

the Cooperative Fish and Wildlife Research Units. Additional collections located at FWRS include the Lead Shot/Lead Poisoning

Clearinghouse, Boating Access/Boating Facilities Clearinghouse,

and the Clean Vessel Act Education/Information Clearinghouse. Although FWRS clearly serves other programs of importance to the

FWS, the funding of FWRS is the sole responsibility of the Federal

Aid Program.

The Committee is not recommending whether these three expenses should or should not be funded, but some of them appear

to be beyond functions that relate to ‘‘administration and execution’’ of the Federal Aid Program. However, it is the intention of

the Committee that these expenses, as well as others that have

been traditionally funded under the Administrative Grant Program, compete under the new MSCGP for funding. Placing the

funding of these programs under the auspices of the MSCG, forces

setting of priorities and gives the States and other stakeholders influence over what projects may receive funding. In addition,

through the competitive process the opportunity exists for realization of a savings if others are allowed to bid for the contracts to

perform these services or projects.

MSCG projects under the new program include multi-State, regional or national projects which meet identified conservation

needs. Such projects include those that strengthen the ability of the

State and territorial fish and wildlife agencies to effectively meet

20

the needs of the public for fish and wildlife resources, or to provide

direct benefit to a significant number of states at the national or

broad geographic level to meet the needs of the Acts. Proposals

must address a pressing resource management problem that is significant and urgent and will provide a practical and economically

feasible management approach for fish and wildlife management

which could not practically be addressed by a single State. Proposals for marine resource projects must also be of direct concern

or provide direct benefit to a significant number of the States.

Highest priority projects should be selected by the States from

among those proposals submitted.

Use of Federal Aid Administration and Execution Money for Expenses Unrelated to the Trust Funds

The Committee found that the administration funds were used

for expenses unrelated to the administration of the program. To ensure that the FWS only uses the funds for legitimate administration of the trust funds, H.R. 3671 establishes 12 categories of allowable administration costs.

The twelve categories were developed by examining what agency

personnel actually do to accomplish the core tasks of allocating approximately $450 million annually in grant money to States for

wildlife and sport fish conservation projects and ensuring that

grants are properly spent. The 12 authorized categories provide an

additional ‘‘checks and balances’’ to the program. The Committee

consulted with the FWS on potential modifications of the categories

to ensure all core, essential functions were covered, and the FWS

could suggest no additional functions. The categories will prevent

the Regions and the other parts of the FWS generally from

supplementing their budgets with Federal Aid Program administrative funds. The 12 categories eliminate the ability of the FWS

to redefine administration of the programs. The 12 categories are

listed below:

(1) Personnel costs of any employee who directly administers

this Act on a full-time basis.

(2) Personnel costs of any employee who directly administers

this Act on a part-time basis for at least 20 hours each week,

not to exceed the portion of such costs incurred with respect to

the work hours of such employee during which the employee

directly administers this Act, as such hours are certified by the

supervisor of the employee.

(3) Support costs directly associated with personnel costs authorized under paragraphs (1) and (2) of this subsection not including costs associated with staffing and operation of regional

offices of the United States Fish and Wildlife Service and the

Department of the Interior, other than for purposes of this Act.

(4) Costs to evaluate, approve, disapprove, and advise concerning comprehensive fish and wildlife resource management

plans and wildlife restoration projects.

(5) Overhead costs, including general administrative services, that are directly attributable to administration of this Act

based on—

21

(A) actual costs, as determined by a direct cost allocation

methodology approved by the Director of the Office of Management and Budget for use by Federal agencies;

(B) for those costs not determinable pursuant to subparagraph (A), an amount per full-time equivalent employee authorized pursuant to paragraphs (1) and (2) that

does not exceed the amount charged or assessed for such

costs per full-time equivalent employee for any other division or program of the United States Fish and Wildlife

Service.

(6) Costs incurred in auditing the wildlife and sport fish activities of each State fish and game department and the use of

funds by each State fish and game department every 5 years.

(7) Costs of audits.

(8) Costs of necessary training of federal and State full-time

personnel who administer this Act to improve administration

of this Act.

(9) Costs of travel to the States, territories, and Canada by

personnel who administer this Act on a full-time basis for purposes directly related to administration of State programs or

projects, or who administer this Act on a full-time basis for

purposes directly related to administration of State programs

or projects, who administer apportionments to the States, the

MSCGP, funding for the Marine Fisheries Commissions, or the

Firearm and Bow Hunter Education Program.

(10) Costs of travel outside of the United States that relates

directly to administration of this Act and that is approved directly by the Assistant Secretary for Fish and Wildlife and

Parks.

(11) Relocation expenses for personnel who, after relocation,

will administer this Act on a full-time basis for at least 1 year,

as certified by the Director of the United States Fish and Wildlife Service at the time such relocation expenses are incurred.

(12) Costs to audit, evaluate, approve, disapprove, and advise

concerning apportionments to the States, the MSGCP, Marine

Fisheries Commissions), or the Firearm and Bow Hunter Education Program.

Unauthorized Grant Programs

Federal Aid ‘‘administration and execution’’ funds were used for

several unauthorized grant programs described as ‘‘slush funds.’’

For example, an unauthorized FWS Director’s Conservation Fund

was created in 1994 (perhaps it was created earlier on an informal

basis) using $1 million annually drawn from money withheld for

‘‘administration and execution’’ of the Federal Aid Program. No

words in either statute authorized this fund. The money was controlled exclusively by the Director, and had no criteria other than

the Director’s approval for issuance of grants. While some grants

may be for worthy projects, they were completely unauthorized by

either Federal Aid Program law, and there was no transparant

process to evaluate the expenditures.

The Director gave grants to non-government organizations and

used the Fund for other purposes within the FWS. Examples of

‘‘Director’s Conservation Fund’’ grants include:

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Organization Grant title/year Amount

Future Fisherman Foundation ......................................... Hooked on Fishing-Not on Drugs/FY95 ......................... $243,125

Mississippi Interstate Cooperative Resource Assoc. ...... Lower Mississippi Resource Conservation Council/FY

98.

100,000

States Organization for Boating Access ......................... Nationwide Boating Access Needs Assessment/FY 95 49,868

Izzak Walton League of America .................................... Hunter Ethics/Land-Access Project/FY 97 ..................... 117,860

Fish and Wildlife Service ................................................ Human Resources—Various Projects/FY 94 ................. 235,886

Office of Migratory Bird Mgmt, Fish and Wildlife Service.Nesting and Foraging Ecology and Habitat Use of

Band-Tailed Pigeons in Western Oregon/FY 95.

85,000

Office of Migratory Bird Mgmt, Fish and Wildlife Service.Webless Migratory Bird Research—Various Projects/

FY96.

150,000

In addition to Director’s Conservation Fund, the FWS created

two additional granting mechanisms that tap ‘‘administration and

execution’’ funds: ‘‘Operational grants’’ and ‘‘Regional Administrative Grants.’’ Operational grants are made by the Division of Federal Aid as needed for projects that supported the Federal Aid Program. Operational grants awarded include: $78,924 to analyze a

1996 Survey of Fishing and Hunting and Wildlife-Associated Recreation, and $10,000 to Tread Lightly, Inc., for a 1997 Conference.

Regional Administrative Grants are made by the Regions for

projects and programs. Regional Administrative Grants include:

$13,000 for a neotropical bird workshop; $11,500 for a SE deer

study group conference; and $40,000 for routine Federal/State

projects.

The Service has no statutory authorization to make the Operational grants or the Regional Administrative Grants from Pittman-Robertson and Dingell-Johnson ‘‘administration and execution’’ funds. Administration funds are only to be drawn from the

money otherwise available for conservation grants to the States if

they are necessary for administration and execution of the law.

Due to the lack of recordkeeping on the part of the FWS, the

Committee does not believe all grant information has been provided to the Committee regarding these grants. Until that information is confirmed, there is no way to tell how the grants were used.

Therefore, H.R. 3671 does not authorize the use of Federal Aid Program money for these grants.

Federal aid paying for overhead of the Fish and Wildlife Service

through disproportionate assessments of General Administrative Services (GAS)

This was perhaps one of the most significant areas of abuse. The

FWS ‘‘assessed’’ the Federal Aid Program a disproportionally high

percentage of the funds available for administration and execution

to make up for a shortfall in appropriated and recovered dollars for

the funding of FWS-wide Administrative Support or overhead.

Non-resource management accounts (such as the Federal Aid

Program) were assessed to pay for General Administrative Services

(GAS), based on a percentage of the amount of their management

and administrative funds. The FWS assessed Federal Aid Program

based on the total amount of funds allowable to be withheld under

the law—the whole eight percent and six percent—irrespective of

what percentage of the funds were actually used for administration

and execution. So, for example, in the years that administration

and execution funds were only five percent of the Wildlife Restoration Program and four percent of the Sport Fish Restoration ProVerDate 20-MAR-2000 06:35 Mar 31, 2000 Jkt 079006 PO 00000 Frm 00022 Fmt 6659 Sfmt 6602 E:\HR\OC\HR554.012 pfrm03 PsN: HR554
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gram, the FWS still based its GAS assessment on the whole eight

percent and six percent. In addition the size of the program provided a larger baseline level on which to make the assessment. The

more money in a program the higher the assessment for GAS.

These odd practices allowed the FWS to use this money on non-conservation, non-authorized projects and programs.

FWS-wide Administrative Expenses were used by the Director to

fund ‘‘Director’s Office Projects and Initiatives.’’ From FY 1990–

1998, the Director has spent $10,174,993 of overhead funds on

projects and initiatives. The projects and initiatives funded include:

Spotted Owl, Seattle Sea Lions, Ferry Shrimp Habitat Conservation Plan under the Endangered Species Act, Mexican Wolf, Wolf

Monitoring Project, Wolf Reintroduction Program, Grizzly Bears,

Blackfoot Ferret, Habitat Conservation Planning, Department of

the Interior Solicitor’s Office, Relocation Costs, and the North

American Free Trade Agreement.

The FWS testified that only ‘‘Director’s Projects and Initiatives’’

funded with Pittman-Robertson and Dingell-Johnson funds were

relocation costs. However, the Federal Aid Program’s disproportionately large contribution to FWS-wide Administrative Support (overhead, rent, telephones) for the whole FWS allowed the FWS to pay

for ‘‘projects and initiatives’’ conducted at the direction of the Director from FWS-wide Administrative Support. GAO described the

FWS’s use of Administrative Support funds as ‘‘a shell game’’ or an

‘‘accounting game,’’ which is an accurate assessment.

At the conclusion of each year the Service has had a balance remaining for the FWS-wide Administrative Support Funds. The balance remaining ranges from a high of $1,718,546 in FY 1994 to a

low of $100,864 in FY 1998. The remaining balance was not taken

into account when determining funding for the next year—the Federal Aid programs continued to be assessed at the highest possible

amount even though the Service did not use all of the funds it had

at its disposal for overhead expenses.

Since the Committee’s investigation, the FWS agreed to use a direct cost analysis to determine the overhead costs throughout the

FWS. This is the approach required in the bill. It only authorizes

expenditures for ‘‘direct costs’’ and guarantees that the programs

will not be overcharged in the future. Any costs that are unable to

be determined through a direct cost approach are only authorized

to the lowest level charged or assessed other FWS divisions.

Travel Abuses

Federal Aid Program administrative funds were used to pay for

foreign travel that was unrelated to the administration of the Acts.

One example is an individual who made multiple trips to Japan.

The purposes listed for these trips included: (1) encourage the use

of the Federal Aid in Sport Fish Restoration Program Logo on

products exported into the United States, (2) Federal Aid Program

may serve as a model for Japan to consider as they develop funded

support for sport fish restoration in Japan; and (3) make contacts

with officials from Japanese Trade groups and their interest in a

‘‘user pay’’ concept. Whether or not the logo is placed on tackle, the

tax is still collected. The two Japanese tackle manufacturers that

export into the U.S. each have offices in the United States. Any

24

discussions regarding the placement of the logo on merchandise

could have taken place over the phone, or at least at the U.S. offices of these Japanese manufacturers. However, the Act does not

provide administrative funds for international travel to promote

such causes. Numerous other examples of unnecessary, costly, and

extravagant travel were uncovered by the Committee investigation.

H.R. 3671 restricts travel to employees who administer the Acts

on a full-time basis. It was reported to the Committee that it may

be necessary for travel to Canada and Mexico regarding issues related to administration of the Acts. It was also reported that there

have been occasions in the past when it was necessary to send Federal Aid Program staff to other countries related to administration

of the Acts. Because of the past abuses in this area, the Committee

was reluctant to provide that such travel would be authorized.

However, by requiring that the Assistant Secretary for Fish and

Wildlife and Parks to directly approve such travel, more control

will be exerted to prevent this type of abuse in the future.

Poor Records and Bookkeeping Abuses: Mismanagement

According to GAO, while individually the problems identified in

each of the areas where administrative funds are spent may not

appear too significant, collectively the problems suggest a lack of

attention to detail that erodes the Division of Federal Aid’s ability

to effectively manage and oversee the administrative aspects of the

programs. In each area where administrative funds are used, there

are problems. These include ineffective management oversight, inadequate internal controls, and inadequate policies and procedures

for reviewing and approving administrative expenditures. GAO testified at both hearings that these conditions have spawned a culture of permissive spending that raises significant questions about

whether the Division is meeting its management responsibilities.

This culture finds its roots in the FWS. Federal Aid Program employees in the Regions answer to the Regional Directors, and the

Chief of Federal Aid in Washington answers to the Assistant Director of External Affairs. These are the individuals making decisions

as to how much, where, and how the administrative funds are

spent. They were just carrying out the policies of the Director.

Because the Program funding does not have to be appropriated

and no routine audits are performed, the Federal Aid Program has

had very little oversight. First, unlike most other federal programs,

Federal Aid Program receives dedicated tax revenues each year to

administer its programs. As a result, Program officials do not have

to publicly justify the Programs’ spending levels before Congress

each year. Second, although Federal Aid Program provides bi-annual reports on its programs to the public, it does not fully disclose

all of its spending, as the Committee’s work has shown. For example, the spending associated with the use of administrative funds

by the Director’s Conservation Fund and the FWS’s Regional offices

is not discussed in these reports. Third, only three audits of the administrative funds have been performed over the past 20 years,

each of which has identified some significant management problems.

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Poor Records and Bookkeeping Abuses: Lack of Internal Audits/

Recordkeeping

It is good management for an agency to keep accurate records

and perform internal audits to ensure that programmatic and funding requirements are met. This was not the case with the Federal

Aid Program. This systemic problem with lack of record keeping for

the Federal Aid Program developed over the years.

GAO and Committee staff findings indicate that there was a

careless disregard for how the Federal Aid Program was managed.

GAO audited the Sport Fish Restoration program in 1993 and

found the same internal record keeping and auditing deficiencies

existed then—nearly seven years ago.

Very little was done to remedy the problems, particularly concerning the ‘‘administration and execution’’ record-keeping. State

audits were initiated and there is an attempt to implement a new

computer management system. In doing so, the cost of true administration of the Federal Aid Program increased leading to less

funds for other purposes. As a result, the FWS instructed Federal

Aid Program to cut funding of true administrative expenses to

make more funds available to the Director for funding of other divisions of the FWS.

To prevent the management and fiscal abuses in the future, H.R.

3671 establishes certification requirements. H.R. 3671 establishes

a series of certifications to ensure that funds used for administration of the programs are being used of this purpose and that they

are used responsibly. It was revealed that no budgetary process existed that ensured that funds for administration were used for administration and that if funds were used as required, that they

were done so responsibly. Committee staff has been unable to obtain from the FWS accurate and completed information explaining

how the up to eight percent and up to six percent funds have been

used in the past.

Beginning at the time the apportionment amounts are made

available to the States, the Secretary of the Interior and the Assistant Director for Wildlife and Sport Fish Restoration Programs are

required to provide a series of certifications to the House Committee on Resources, the Senate Committee on Environment and

Public Works, each State game and fish department or publish in

the Federal Register an accounting of the funds used for administration. The certifications in H.R. 3671 ‘‘forces’’ the Service to account for the expenses they have when administering the programs. A criticism in the past has been that it was difficult from

the information provided and maintained by the Service to determine how the funds were used. In addition, it requires that the

Secretary, Assistant Secretary for Fish and Wildlife and Parks, the

Director of the Fish and Wildlife Service and the Assistant Director

of the Wildlife and Sport Fish Restoration Programs all certify

within 30 days of the end of each fiscal year that they each properly discharged their duties under the Acts.

Poor Oversight and Regional Office Control

Poor oversight and regional office control of administration and

execution funds contributed to the mismanagement of the Federal

Aid program. The Federal Aid Program and the funds apportioned

26

to the States account for over one-third of the Service’s budget. Divisions within the Service with smaller budgets have representation at the Directorate level of the FWS. The decision to use Federal Aid Program administrative funds for expenses unrelated to

the administration of the programs made at the Directorate level

would have been less likely if the Federal Aid Program had an advocate at the Directorate level.

Under the current structure, the FWS has not provided the necessary tools for the Chief of Federal Aid to administer the program—it is obvious that the Program needs to be administered at

a higher level within the FWS. The current structure of the Federal Aid Program does not provide for line authority of the Chief

of Federal Aid to the Federal Aid staff in the Regions. Under the

current structure, Federal Aid Program staff in the Region report

to the Regional Directors. The Regional Directors make the final

decisions regarding the Federal Aid budget in the Regions, not the

Regional Federal Aid staff, and this arrangement has allowed for

the opportunity of Regional Directors to supplement their Region’s

budgets with Federal Aid Program administrative funds.

There is no consistency between Regions as to how they develop

Federal Aid budgets or assess the Federal Aid Program for common

Regional costs. Again this allows for the opportunity of taking advantage of the Federal Aid administrative funds. The FWS has recently proposed a reorganization. The proposed structure places the

Federal Aid Program under the same Assistant Director who will

be responsible for Migratory Birds. This will create a temptation

for the Assistant Director, who is tied to the appropriations process

for obtaining funding for the Migratory Bird program, while not

having the same restraints for the Federal Aid Program. It is important that funds from Federal Aid Program are not used by other

programs to supplement their budgets.

The Assistant Director will raise the stature of this important

conservation program and help to prevent other parts of the FWS

from tapping Federal Aid Program funds. The Assistant Director

will be responsible only for the administration, management and

oversight of the programs. This will allow the Federal Aid Program

to get the management attention it has not gotten in the past. Federal Aid is a mechanism for passing excise tax revenues to the

States. The Federal Aid program is not a vehicle for the FWS to

carry out other missions.

COMMITTEE ACTION

H.R. 3671 was introduced on February 16, 2000, by Congressman

Don Young (R-AK). The bill was referred to the Committee on Resources. Although no hearings were held on the bill, the bill was

developed as a result of three oversight hearings held in 1999 on

the Federal Aid Program administered by the FWS. On March 15,

2000, the Full Resources Committee met to consider the bill. Chairman Young offered an amendment in the nature of a substitute to

make technical corrections to the bill and to clarify that the Firearm and Bow Hunting grants were to enhance existing grants used

by States for these purposes, and to remove the designation of the

Assistant Secretary for Fish and Wildlife and Parks as being ultimately responsible for the administration, management and overVerDate 20-MAR-2000 06:35 Mar 31, 2000 Jkt 079006 PO 00000 Frm 00026 Fmt 6659 Sfmt 6602 E:\HR\OC\HR554.014 pfrm03 PsN: HR554
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sight of the Wildlife and Sport Fish Restoration Programs (the Acts

allow the Secretary of the Interior to delegate these responsibilities

to the Assistant Secretary for Fish and Wildlife and Parks). The

amendment was adopted by voice vote. The bill as amended was

then ordered favorably reported by a roll call vote of 36 to 0 to the

House of Representatives, as follows:

28

29

SECTION-BY-SECTION ANALYSIS

Section 1. Short title

The short title of H.R. 3671 is the Wildlife and Sport Fish Restoration Programs Improvement Act of 2000.

Section 2. Definitions

The term ‘‘Wildlife Restoration Act’’ means the Act of September

2, 1937 (chapter 899; 16 U.S.C. 669 et seq.), popularly known as

the Federal Aid in Wildlife Restoration Act and as the PittmanRobertson Wildlife Restoration Act.

The term ‘‘Sport Fish Restoration Act’’ means the Act of August

9, 1950 (chapter 658; 16 U.S.C. 777 et seq.), popularly known as

the Federal Aid in Fish Restoration Act and as the Dingell-Johnson

Sport Fish Restoration Act.

Title I—Wildlife Restoration

Section 101. Expenditures for administration

Expenditures for administration will be spent from the revenues

(excluding the interest accruing under section 3(b) of the Wildlife

Restoration Act) covered into the fund each fiscal year. The Secretary may use up to $5,000,000 for administration of this program

for fiscal years 2001, 2002, and 2003. Starting in fiscal year 2004,

the Secretary may use an amount adjusted annually to reflect the

changes in the Consumer Price Index, not to exceed $7,000,000.

The Secretary of the Interior will make the apportionments to the

States after deductions have been made for administration (section

4(a)), the apportionment to the States from the tax imposed on pistols, revolvers, bow and arrows (section 4(c)), any amount apportioned to the territories (section 8A), the Firearm and Bow Hunter

Education and Safety Program Grants designated under Section

102 of this Act and the Multi-State Conservation Program designated under Section 103 of this Act.

The funds available to the Secretary for the administration of the

Act will be available for only one fiscal year. Within 60 days of the

end of the fiscal year, all unobligated funds will be returned to the

States through the apportionment formula. In the past, the Secretary was able to carry over administration funds for two fiscal

years. If after the two years, the funds were not used for administration and execution of the Act, any remaining funds are to be apportioned back to the States for their use on restoration projects.

The Federal Aid Program has had leftover funds from previous

years and has not been allocating all of these funds to the States.

Instead, it has been rolling the funds over and adding them to the

administration funds for the next fiscal year—making more funds

available for redistribution to non-Federal Aid programs. For FY

1992–1998 only 18 percent of the carryover administrative funds

were given to the States as required by law. In any given year,

more funds are available to use in ways not envisioned by the Acts.

For example, from FY 1992–1998 $32,805,402 in Wildlife and Sport

Fish administrative funds were carried over. Of this amount only

$6,048,576 was given back to the States and $26,756,826 stayed in

the FWS. The remainder rolled over for use during the following

30

year. The FWS was unable to account for which funds were rolled

over from one year to the next. The Committee determined that the

ability of the FWS to carry over the funds allowed it the latitude

to spend administration funds on expenses not related to the administration of the Act. This latitude, combined with the poor fiscal

management of the administration funds created an environment

ripe for abuse.

Section 101 also creates a series of certifications by the Secretary

of the Interior (who may delegate only to the Assistant Secretary

for Fish and Wildlife and Parks) and the Assistant Director for

Wildlife and Sport Fish Restoration Programs that will build in a

series of checks and balances that will require the FWS to report

on how it uses administration funds. The certifications are described below:

Within 30 days after the end of each fiscal year, the Secretary

of the Interior shall certify in writing to the Secretary of the Treasury and to each State fish and game department the amount apportioned to each State in the most recent apportionment and the

amounts obligated by the Secretary of the Interior during the fiscal

year for administration of the Act. These amounts are also to be

published in the Federal Register.

The Secretary shall within three months after each fiscal year

certify in writing to the Committee on Resources of the House of

Representatives and the Committee on Environment and Public

Works of the Senate the following for the fiscal year: (1) the

amount of funds used for administration and a breakdown of categories for which such funds were expended, (2) the amount of

funds apportioned to States not used for administration, (3) the results of the audits of the funds used for administration of the Act,

(4) that all funds expended for administration were necessary for

administration of the Acts, and (5) the Secretary, the Assistant

Secretary for Fish and Wildlife and Parks, the Director of the

United States Fish and Wildlife Service, and the Assistant Director

for Wildlife and Sport Fish Restoration Programs each properly discharged their duties under this Act. This responsibility of the Secretary of the Interior to make these certifications may only be delegated to the Assistant Secretary for Fish and Wildlife and Parks.

Within 60 days after the start of each fiscal year, the Assistant

Director for Wildlife and Sport Fish Restoration Programs shall

provide to the Committee on Resources of the House of Representatives and the Committee on Environment and Public Works of the

Senate and publish in the Federal Register the following for the fiscal year: (1) the amount of funds that will be expended for administration, (2) a breakdown of categories for which such funds will be

expended, and (3) a description of how the funds are necessary for

the administration of the Act.

Within 1 month after the end of each fiscal year, the Assistant

Director for Wildlife and Sport Fish Restoration Programs shall

certify that: (1) all amounts expended in that fiscal year to administer this Act in agency headquarters and in regional offices of the

United States Fish and Wildlife Service were used in accordance

with the Acts, (2) that all such expenditures were necessary to administer the Act, (3) distribute such certifications to each State fish

31

and game department, and (4) publish this information in the Federal Register.

Use of funds to administer this Act will not be authorized just

because the cost is not expressly prohibited by this Act. The FWS

testified that it had broad discretionary authority under the law to

spend the administration funds as it saw fit. The wording in H.R.

3671 is designed to prevent the FWS from using the fact that funding for an item was not prohibited as a reason to allow for the

funding. In addition, the Secretary of the Interior is not authorized

to use any of the administration funds to supplement any function

for which general appropriations are made for the FWS or any

other entity of the Department of the Interior.

The Inspector General of the Department of the Interior is required to procure the conduct of biennial audits, in accordance with

generally accepted accounting principles, of the expenditures of

amounts used by the Secretary for administration of this Act. The

auditor will be supervised by the Inspector General of the Department of the Interior. The auditor shall provide a copy of the audit

findings to the Secretary of the Interior and to the Inspector General of the Department of the Interior, who will promptly report to

the House Committee on Resources and the Committee on Environment and Public Works of the Senate. The audits may not be conducted by anyone associated in any way with the Department of

the Interior.

H.R. 3671 establishes a list of twelve categories of authorized administration costs. Each is described below:

Personnel Costs (categories 1 and 2).—Personnel costs are limited to employees who directly administer the Act on a full-time

basis or on a part-time basis for at least 20 hours each week. The

costs of part-time personnel are not to exceed the costs of employees who administer the Act on a full-time basis and the part-time

hours are to be certified by the employee’s supervisor. The Committee was concerned with the amount of administrative funds that

were used to support the personnel costs of employees who were

not involved in the administration of the Act. At both the Washington D.C. Office level and in the Regions, administrative funds

were used to pay for personnel costs of employees who did not support the Act. The FWS used administrative funds from the Act to

pay for salaries of employees they were unable to fund through the

legitimate program or office of that employee. It also paid for some

or all of the employee’s personnel costs with administrative funds

from the Act allowed funds normally used for the personnel costs

to be used elsewhere in the organization.

Support Costs (category 3).—Support costs are limited to costs directly associated with the personnel costs authorized by categories

1 and 2 and does not include the costs associated with staffing and

operation of any offices of the FWS and the Department of the Interior other than for purposes of the Act. Support costs, like personnel costs, of staff not involved with the administration of the

Act were being paid with administration funds. This restriction is

another means to prevent the FWS from covering costs with administration funds unrelated to the administration of the Act.

Costs Related to the Comprehensive Fish and Wildlife Resource

Management Plans or Projects (category 4).—This category proVerDate 20-MAR-2000 06:35 Mar 31, 2000 Jkt 079006 PO 00000 Frm 00031 Fmt 6659 Sfmt 6602 E:\HR\OC\HR554.015 pfrm03 PsN: HR554
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vides funds for the FWS to determine if comprehensive plans or

projects are substantial in character and design.

Overhead Costs (category 5).—Overhead costs are limited to costs

that are directly attributable to the administration of the Act and

based on actual costs as determined by a direct cost allocation

methodology and approved by the Director of the Office of Management and Budget for use by federal agencies and for costs not able

to be determined by a direct cost methodology, the amount charged

may not exceed the amount charged or assessed for such costs per

full-time equivalent employee for any other division or program of

the FWS.

As discussed earlier, the Committee discovered that the Service

used a method to ‘‘assess’’ the Federal Aid Program that resulted

in a disproportionally high percentage of the funds available for administration of the Federal Aid Program to make up for a shortfall

in appropriated and recovered dollars for the funding of General

Administrative Services overhead.

The FWS derives funds from three sources to meet its servicewide administrative support expenses (overhead): appropriated

funds, reimbursements, and cost recovery from non-resource management programs (11 programs including Federal Aid Program

pay into this source). For example, in FY 1998, the FWS used about $55.5 million for service-wide administrative support. About $47.8 million came from

appropriated funds and collections on reimbursements. Of the remaining $7.7—million cost recovery from non-resource management accounts—Federal Aid Program paid $4.7 million. In reality,

however, the Federal Aid Program’s contribution to the FWS’s

overhead expenses had nothing to do with the Federal Aid Program’s cost to the FWS.

To put the Federal Aid Program’s contribution in perspective,

Federal Aid paid 61 percent of the cost recovery from non-resource

management programs. While the overhead cost paid for each Service employee is about $7,000, the overhead cost paid by the Federal

Aid Program for each Federal Aid employee is about $30,000.

FWS had assessed the Wildlife Restoration Program and the

Sport Fish Restoration Program the total amount of funds allowable under the law—the entire eight percent and six percent irrespective of what percentage of the funds were actually used for administration and execution.

The FWS defended this practice by stating that all non-resource

management programs were ‘‘assessed’’ the same percentage. This

method takes unfair advantage of programs that have the most administrative funds at their disposal and in no way approximates

true overhead costs for the Federal Aid Program. At issue is that

when the Federal Aid program pays more than its fair share of

overhead, wildlife and sport fish conservation suffer.

Costs of Auditing State Fish and Game Departments and the

Use of State Apportionments (category 6).—The costs to audit the

State Fish and Game Departments and their use of the State apportionment funds every five years is authorized. An important

component of administration is the auditing of the States’ use of

the apportioned funds. This will ensure that the States are using

the funds as intended under the Act. Another important component

33

of the auditing process is the audit resolution process. It is necessary that once the audits are completed that an audit resolution

process is implemented. It is important that if diversions of license

fees or of apportioned funds is found, the matter is resolved. It has

come to the attention of the Committee that under the current

audit resolution process there is an inconsistency with how the audits are resolved. The resolutions being promoted are not consistent

from State to State. For example, when one State has been found

to improperly use apportioned funds it is asked to repay the

amount to the program. Another State, found to have also improperly used apportioned funds, is not asked to repay the funds to the

program. It is imperative that the resolution to the audits are uniform throughout the United States and that all States are treated

equally and fairly under the audit resolution process.

Costs of Audits of the Administration of the Acts (category 7).—

The Inspector General of the Department of the Interior shall procure biennial audits of expenditures of amounts used by the Secretary for administration of the Act. The audit contract will be

awarded under competitive procedures and performed by a person

that is not associated in any way with the Department of the Interior. The auditor will be supervised by the Inspector General. The

auditor shall submit a report of the findings to the Inspector General and the Secretary of the Interior. The Inspector General will

then promptly report to the Committee on Resources of the House

of Representative and the Committee on Environment and Public

Works of the Senate on the results of each audit.

The Committee was greatly concerned to discover that the FWS

never conducted an audit of the funds used to administer the Act.

Conducting an audit of the use of the administration funds would

have been good fiscal management of the program. Had such an

audit been conducted, perhaps it could have prevented the use of

administration funds for expenses unrelated to administration of

the Acts. It is imperative that these audits are conducted and that

actions are taken based on the findings of these audits to correct

any inconsistencies or problems.

Costs of Necessary Training (category 8).—Training costs to improve administration of the Acts are allowed for federal and State

full-time personnel who administer the Act.

Training is important to ensure that people are properly trained

for the jobs they are hired to perform. Training offered for courses

that would provide better administration of the Federal Aid Program are permissible. The Committee discovered that in addition

to training for appropriate administrative-type skills, Federal Aid

Program administrative funds were used to provide training that

clearly falls outside of what is necessary for the administration of

the programs. For example, training was offered and paid for with

Federal Aid Program administrative funds for the following: Systematic Development of Informed Consent, Mourning Dove Workshop, Fish Stock Assessment, Stream Classification and Gravel

Mining Workshop, Citizen Participation by Objective, Fundamentals of Ecosystem Management, Comprehensive Accessibility Planning for Parks, Recreation and Tourism and Media Relations.

These courses may have been important, but they did not improve

34

the administration of the Act and it was not appropriate to fund

them with administration funds.

The Committee is concerned about the method the FWS will use

to train eligible personnel. The FWS has provided to the Committee documentation that it plans to offer a centralized training

program at the National Conservation Training Center for eligible

personnel. A centralized training program is not what the Committee intends by necessary training. Training classes and workshops that provide eligible personnel with information and skills

that will allow them to better administer the programs is the intent of the Committee. The Committee is concerned that creation

of such a program will be not to train eligible personnel in administration, but used as a way to cover the costs of training unrelated

to the administration of the Act or training of ineligible employees.

Costs of Travel to the States, Territories and Canada (category

9).—Travel costs for personnel who administer the Acts on a fulltime basis for purposes directly related to administration of State

programs or projects or who administer the Firearm and Bow

Hunter Education Grants Program or the Multi-State Conservation

Grant Program. The Committee discovered that travel was being

funded with administration funds that was unrelated to the administration of the programs, so the bill requires that all travel must

directly relate to administration of the program or projects.

Costs of Travel Outside of the United States (category 10).—

Travel costs that related to the administration of the Act by personnel who administer the Act on a full-time basis are authorized

if travel is approved directly by the Assistant Secretary for Fish

and Wildlife and Parks. This does however, not restrict the travel

of Federal Aid employees to travel internationally to assist in

issues related to wildlife or sport fish restoration. It only restricts

the funding of that travel—it cannot be funded with administration

funds. The Committee discovered many trips to international destinations for matters unrelated to the administration of the Acts.

For example, trips were made to foreign countries to encourage

them to develop their own Sport Fish Restoration Program. Although it maybe important that other countries develop similar

programs, it is not a function that should be funded with administration funds. Such travel costs clearly fall within the responsibility

of the FWS’s International Affairs Office.

Relocation Expenses (category 11).—Relocation expenses for personnel who, after they relocate will administer the Act on a fulltime basis for at least one year. At the time the relocation expenses

are incurred, the Director of the FWS will have to certify that the

employee will administer the Act on a full-time basis for a least one

year. The Committee discovered that administration funds were

being used to relocate personnel who did not administer the programs. Again, the FWS was using administration funds to pay for

other expenses within the agency. For example, in one Region, administration funds were used to relocate the Deputy Regional Director. This type of expense will not be authorized under H.R.

3671.

Costs to Administer Grants (category 12).—Costs to audit, evaluate, approve, disapprove, and advise concerning grants to the

States under the State apportionments, Firearm and Bow Hunter

35

Education Grants and Multi-State Conservation Grants. The intent

of the Committee is not to add any new authorized functions. Rather, it is to capture what the Division now undertakes when it processes grant applications. This language describes the responsibility

of the Secretary of the Interior and the process of review the Secretary engages in before apportioning funds to each State, as an eligible expenditure of the funds available under his or her discretion. The process for approval does not include a programmatic review of the grants. The role of the FWS is not to make programmatic determinations regarding the grants, but instead

whether they are substantial in character and design.

In the course of streamlining the process for administering the

Wildlife and Sport Fish Trust funds in the Regions, the Committee

grew increasingly concerned about allegations that the staff responsible for administering the apportionments to the States used their

ability to control the time it took for projects or plans to be approved as a means of retribution for actions States may or may not

have taken that were not considered by the FWS to be appropriate.

The allegations were not limited to actions States took with regard

to the Wildlife or Sport Fish Restoration Trust Funds. In some

cases, actions taken by States regarding land use, wildlife or sport

fish management unrelated to the Wildlife and Sport Fish Trust

Funds, for example, were seen to be the catalyst for actions taken

by the FWS related to the length of time it took to process grant

applications or approve grant applications. Additional allegations

have surfaced of the FWS using the approval process for State apportionments to advance the restoration and conservation goals of

the FWS on the States. The Act was not designed as a tool for the

FWS to further its mission for or in the States. Instead, it was established to provide States with funding for State wildlife restoration projects that are necessary from the States’ perspective for the

effective management of wildlife.

The administration of the Wildlife and Sport Fish Trust Funds

should not to be used by the FWS to further an independant agenda. Instead, the States are to decide, within the requirements of

the Act, how to spend the apportioned funds. Interference by the

FWS in any way to negatively impact the timing or approval of any

project or plan that falls within the bounds of the requirements of

the law is an obstruction to the implementation of the law.

Section 102. Firearm and Bow Hunter Education and Safety Program grants

In 1970 and 1972, Congress added handgun and archery equipment respectively to the list of items taxed under the Pittman-Robertson program. At that time, Congress recognized the need to invest in the future of hunting and shooting and included language

that allowed States to use up to 50 percent of the revenues collected from handgun and archery equipment for hunter education

and shooting range development. While Congress recognizes that

States have used a portion of the available money for these purposes, both hunter education and shooting range development are

in need of additional investments if they are to meet the challenges

of the 21st Century.

36

In making reforms to the administration of the Pittman-Robertson program in this legislation, the Committee recognized an opportunity to re-invest the savings realized by these reforms in

hunter education, including bowhunter education, as well as shooting ranges, including archery ranges. As a result, the Committee

included language that earmarks $15 million minus the amount

used for administration and the multi-state grant program to enhance both hunter education and shooting range construction,

which constitute some of the savings achieved by the reforms in the

bill.

The Committee has reviewed the December 1996 ‘‘Review of the

National Hunter Education Program with Recommendations for

Improvement’’ and supports the conclusions of this report. In providing this additional money, the Committee intends for States to

implement relevant recommendations from this report. In particular, the Committee suggests that this money be used by States

to: hire additional staff for the hunter education program; provide

additional materials for hunter education courses; enhance and

modernize materials as needed; investigate new technologies and

delivery methods; develop and evaluate home study courses; create

advanced hunter education courses; perform programmatic evaluations and monitoring of hunter education classes; improve and enhance training for hunter education instructors; and provide controlled and supervised facilities for hands-on live firing experiences.

In addition, the Committee intends that this money will be used

by States to provide convenient opportunities for recreational

shooting. Accordingly, the Committee urges States to construct new

firearms and archery ranges and enhance and modernize existing

ranges with the additional funding.

It is the Committee’s intent that this money will be used to enhance existing hunter education and shooting range programs, and

expects States to use this money as a supplement to the PittmanRobertson program dollars under Section 8(b) and other current

sources of funding for both hunter education and shooting ranges.

The Committee does not intend for this money to be used as a replacement for money already being spent on hunter education and

shooting ranges under Section 8(b). The Committee intends to monitor the use of this money by States to ensure that they are following with Congressional intent.

In drafting this section of the legislation, the Committee specifically provided that the 25 percent match that is required for eligibility come from a non-federal source. In so doing, it is the Committee’s intent that States will actively seek private partners from the

conservation community, sportsmen’s and hunting organizations,

and the firearms and archery industry to provide all or part of this

match and work in concert with these groups and organizations to

meet the goals and challenges of hunter education and shooting

range development in the 21st Century.

Under Section 102, a new Section 10(a)(B) of the Pittman-Robertson Wildlife Restoration Act would make eligible the Hunter and

Bow Hunter Education and Safety Program grants for interstate

coordination and development of hunter education programs.

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37

cerned about the condition of hunter education and sporting firearm safety programs authorized under the existing Act. The Committee found broad sentiment from sportsmen’s organizations that

current state programs are under funded and have not received

adequate attention from State agencies. As a result, many sportsmen’s organizations believe that State hunter education programs

have not delivered a consistent level of effort, with some State programs inadequate in content, format, accessibility and meaning.

The Committee shares these concerns, but was concerned about

the lack of quantifiable data that would better identify gaps in

hunter education efforts among and within the States that receive

Pittman-Robertson dollars. There appears at this time to be no consistent set of data or evaluations that reveal which States’ programs are meeting expectations, exceeding expectation, or falling

short of expectations.

The partnership bond with sportsmen’s organizations has helped

make the Pittman-Robertson program a success for more than six

decades. It is very important that these organizations and the

states reinvigorate their efforts to work together using the monies

provided under Sections 102 and 103.

The Committee reiterates that the public uses and benefits arising from Pittman-Robertson Act projects and programs remain important. Just like wildlife dependent recreation is now a priority

public use of National Wildlife Refuge system lands, similar activities including hunting, fishing, field trials with dogs, hunter education, and improvement of hunting skills on lands and interests

acquired or administered with wildlife restoration funds are an important beneficial feature of the program. Guidance that sets clear

and reasonable standards and recognizes the long and consistent

uses of wildlife management areas for activities such as trialing

may be useful.

Section 103. Multi-State Conservation Grant Program

HR 3671 establishes a Multi-State Conservation Grant Program

(MSCGP) for the Secretary of the Interior to make grants of up to

$2.5 million from the revenues covered into the fund. The funds for

the grants will be available for two fiscal years, after which all unobligated funds are to be approtioned to the States according to the

apportionment formula. A project is eligible for funding if: (1) benefits at least 26 states, or (2) benefits a majority of the States in a

region of the United States Fish and Wildlife Service or (3) a majority of the States in a regional association of State fish and game

departments. The Secretary may award grants only based on a priority list of wildlife restoration projects prepared and submitted by

State fish and game departments acting through the International

Association of Fish and Wildlife Agencies (IAFWA) each fiscal year.

The IAFWA shall prepare each prioirty list through a committee

comprised of the heads of State fish and game departments (or

their designees). Once the list is developed, it must be approved by

a majority of the heads of all State fish and game deaprtments (or

their designees) and submitted not later than Ocotber 1 of each fiscal year to the Assistant Director for Wildlife and Sport Fish Restoration Programs, who shall accept the list on behalf of the Secretary of the Interior. The Assistant Director for Wildlife and Sport

38

Fish Restoration Programs shall publish in the Federal Register

each priority list submitted. In preparing the list, the IAFWA shall

consult with nongovernmental organizations that represent conservation organizations, sportsmen organizations, and industries

that support or pormote hunting, trapping, recreational shooting,

bow hunting, or archery.

The Secretary may make a grant only to a State or a group of

States or a nongovernmental organziation (NGO) subject to the following restrictions. Any NGO applying for a grant must submit

with their grant application to the IAFWA a certification that the

organization does not promote or encourage oppostion to regulated

hunting or trapping of wildlife. The funds may not be used for education, activities, projects, or promgrams that promote or encourage

opposition to regulated hunting or trapping of wildlife. Any NGO

that is found to promote or encourage opposition to regulated hunting or trapping of wildlife or does not use the funds in compliance

with the section shall return all funds received and be subject to

any other penalties under law. No activities undertaken by the personnel of State fish and game departments shall constitute advice

or recommendations for one or more agencies or officers of the federal government.

Section 104. Miscellaneous provisions

Section 5 of the Act is amended so that for each fiscal year the

Secretary of the Interior shall certify to the Secretary of the Treasury and to each State fish and game department the sum which

he has estimated to be necessary for administration and the sum

he has apportioned to each State at the time such deduction or apportionment is made.

Title II—Sport Fish Restoration

Section 201. Expenditures for administration

Expenditures for administration will be made after the distribution and use under Section 4 subsections (a) for the Coastal Wetlands Planning, Protection and Restoration Act, subsection (b) for

projects under the Clean Vessel Act of 1992 and for projects under

the Sportfishing and Boating Safety Act of 1998, recreational boating and safety programs, subsection (c) for funds for National Outreach and Communications Program, and grants under the MultiState Conservation Program and Funding for the Marine Fisheries

Commissions under Section 14. The Secretary may use up to

$5,000,000 for administration of this program for fiscal years 2001,

2002, and 2003. Starting in fiscal year 2004, the Secretary may use

an amount adjusted annually to reflect the changes in the Consumer Price Index, not to exceed $7,000,000.

The funds available to the Secretary for the administration of the

Act will be available for only one fiscal year. Within sixty days of

the end of the fiscal year, all unobligated funds will be returned to

the States through the apportionment formula. In the past, the

Secretary was able to carry over administration funds for two fiscal

years. If after the two years, the funds were not used for administration and execution of the Acts, any remaining funds are to be

apportioned back to the States for their use on restoration projects.

39

The Federal Aid Program has had left over funds from previous

years and has not been allocating all of these funds to the states.

Instead, they have been rolling the funds over and adding them to

the administration funds for the next fiscal year—making more

funds available for redistribution to non-Federal Aid Programs. For

FY 1992–1998 only 18 percent of the carryover administrative

funds were given to the States as required by law. In any given

year, more funds are available to use in ways not envisioned by the

Acts. For example: From FY 1992–1998 $32,805,402 in Wildlife and

Sport Fish administrative funds were carried over. Of this amount

only $6,048,576 was given back to the States and $26,756,826

stayed in the FWS. The remainder rolled over for use during the

following year. The FWS was unable to account for which funds

were rolled-over from one year to the next.

The Committee determined that the ability of the FWS to carry

over the funds allowed them the latitude to spend administration

funds on expenses not related to the administration of the Act. This

latitude, combined with the poor fiscal management of the administration funds created an environment ripe for abuse.

HR 3671 creates a series of certifications by the Secretary of the

Interior (who may delegate only to the Assistant Secretary for Fish

and Wildlife and Parks) and the Assistant Director for Wildlife and

Sport Fish Restoration Programs that will build in a series of

checks and balances that will require the Fish and Wildlife Service

to report on how they use administration funds. The certifications

are described below:

The Secretary shall within 3 months after each fiscal year certify

in writing to the Committee on Resources of the House of Representatives, and the Committee on Environment and Public Works

of the Senate the following for the fiscal year: (1) the amount of

funds used for administration and a breakdown of categories for

which such funds were expended, (2) the amount of funds apportioned to States not used for administration, (3) the results of the

audits of the funds used for administration of the Act, (4) that all

funds expended for administration were necessary for administration of the Act, and (5) the Secretary, the Assistant Secretary for

Fish and Wildlife and Parks, the Director of the United States Fish

and Wildlife Service, and the Assistant Director for Wildlife and

Sport Fish Restoration Programs each properly discharged their

duties under the Act. This responsibility of the Secretary of the Interior to make these certifications may only be delegated to the Assistant Secretary for Fish and Wildlife and Parks.

Within 1 month after the end of each fiscal year, the Assistant

Director for Wildlife and Sport Fish Restoration Programs shall

certify that: (1) all amounts expended in that fiscal year to administer this Act in agency headquarters and in regional offices of the

FWS were used in accordance with the Act, (2) that all such expenditures were necessary to administer the Act, (3) distribute

such certifications to each State fish and game department, and (4)

publish this information in the Federal Register.

Use of funds to administer this Act will not be authorized just

because the cost is not expressly prohibited by this Act. The FWS

testified to the Committee that it has had broad discretionary authority under the law to spend the administration funds as it saw

40

fit. This working is designed to prevent the FWS using the fact

that funding for an item was not prohibited as a reason to allow

for the funding. In addition, the Secretary of the Interior is not allowed to use any of the administration funds to supplement any

function for which general appropriations are made for the FWS or

any other entity of the Department of the Interior.

The Inspector General of the Department of the Interior is required to procure the conduct of biennial audits, in accordance with

generally accepted accounting principles, of the expenditures of

amounts used by the Secretary for administration of this Act. The

auditor will be supervised by the Inspector General of the Department of the Interior. The auditor shall provide a copy of the audit

findings to the Secretary of the Interior and to the Inspector General of the Department of the Interior, who will promptly report to

the House Committee on Resources and the Committee on Environment and Public Works of the Senate. The audits may not be conducted by anyone associated in any way with the Department of

the Interior.

H.R. 3671 establishes a list of twelve categories of authorized administration costs. Each is described below:

Personnel Costs (categories 1 and 2).—Personnel costs are limited to employees who directly administer the Acts on a full-time

basis or on a part-time basis for at least 20 hours each week. The

costs of part-time personnel are not to exceed the costs of employees who administer the Act on a full-time basis and the part-time

hours are to be certified by the employee’s supervisor. The Committee was concerned with the amount of administrative funds that

were used to support the personnel costs of employees who were

not involved in the administration of the Act. At both the Washington D.C. Office level and in the Regions, administrative funds

were used to pay for personnel costs of employees who did not support the Act. The FWS used administrative funds from the Act to

pay for salaries of employees they were unable to fund through the

legitimate program or office of that employee, or by paying for

some or all of the employee’s personnel costs with administrative

funds from the Act allowed funds normally used for the personnel

costs to be used elsewhere in the organization.

Support Costs (category 3).—Support costs are limited to costs directly associated with the personnel costs authorized by categories

1 and 2 and does not include the costs associated with staffing and

operation of any offices of the FWS and the Department of the Interior other than for purposes of the Act. Support costs, like personnel costs, of staff not involved with the administration of the

Act were being paid with administration funds. This restriction is

another means to prevent the FWS from covering costs with administration funds unrelated to the administration of the Act.

Costs Related to the Comprehensive Fish and Wildlife Resource

Management Plans or Projects (category 4).—This category provides funds for the FWS to determine if comprehensive plans or

projects are substantial in character and design.

Overhead Costs (category 5).—Overhead costs are limited to costs

that are directly attributable to the administration of the Act and

based on actual costs as determined by a direct cost allocation

methodology and approved by the Director of the Office of ManageVerDate 20-MAR-2000 07:22 Mar 31, 2000 Jkt 079006 PO 00000 Frm 00040 Fmt 6659 Sfmt 6602 E:\HR\OC\HR554.020 pfrm01 PsN: HR554
41

ment and Budget for use by federal agencies and for costs not able

to be determined by a direct cost methodology, the amount charged

may not exceed the amount charged or assessed for such costs per

full-time equivalent employee for any other division or program of

the FWS.

The Committee discovered that the FWS used a method to ‘‘assess’’ the Federal Aid Program that resulted in a disproportionally

high percentage of the funds available for administration of the

Federal Aid Program to make up for a shortfall in appropriated

and recovered dollars for the funding of General Administrative

Services overhead.

The FWS derives funds from three sources to meet its servicewide administrative support expenses (overhead): appropriated

funds, reimbursements, and cost recovery from non-resource management programs (11 programs including the Federal Aid Program pay into this source). For example, in fiscal year 1998, the FWS received about $55.5 million for service-wide administrative support. About $47.8 million

came from appropriated funds and collections on reimbursements.

Of the remaining $7.7 million—cost recovery from non-resource

management accounts—the Federal Aid Program paid $4.7 million.

In reality, however, Federal Aid’s contribution to the FWS’s overhead expenses had nothing to do with the Federal Aid Programs’

cost to the FWS.

To put the Federal Aid Program’s contribution in perspective,

Federal Aid paid 61 percent of the cost recovery from non-resource

management programs. While the overhead cost paid for each FWS

employee is about $7,000, the overhead cost paid by Federal Aid for

each Federal Aid employee is about $30,000.

The FWS had assessed the Wildlife Restoration Program and the

Sport Fish Restoration Program on the total amount of funds allowable under the law—the entire eight percent and six percent irrespective of what percentage of the funds were actually used for

administration and execution. So, for example, in the years that

administration and execution funds were only five percent of the

Wildlife Restoration Program and five percent of the Sport Fish

Restoration Program, the FWS still based its assessment on the entire eight percent and six percent. This allowed the FWS to use

this money on non-conservation, non-authorized projects and programs.

The FWS defended this practice by stating that all non-resource

management programs were ‘‘assessed’’ the same percentage. This

method takes unfair advantage of programs that have the most administrative funds at their disposal and in no way approximates

true overhead costs for the Federal Aid Program. At issue is that

when the Federal Aid program pays more than its fair share of

overhead, wildlife and sport fish conservation suffer.

Costs of Auditing State Fish and Game Departments and the

Use of State Apportionments (category 6).—The costs to audit the

State Fish and Game Departments and their use of the State apportionment funds every five years is allowable. An important component of administration is the auditing of the States’ use of the

apportioned funds. This will ensure that the States are using the

funds as intended under the Acts. Another important component of

42

the auditing process is the audit resolution process. It is necessary

that once the audits are completed that an audit resolution process

is implemented. It is important that if diversions of license fees or

of apportioned funds is found, the matter is resolved. It has come

to the attention of the Committee that under the current audit resolution process there is an inconsistency with how the audits are

resolved. The resolutions being promoted are not consistent from

State to State. For example, when one State was been found to improperly use apportioned funds, it was asked to repay the amount

to the program. Another State, found to have also improperly used

apportioned funds, was not asked to repay the funds to the program. It is imperative that the resolution to the audits are uniform

throughout the United States and that all States are treated equally and fairly under the audit resolution process.

Costs of Audits of the Administration of the Acts (category 7).—

The Inspector General of the Department of the Interior shall procure biennial audits of expenditures of amounts used by the Secretary for administration of the Act. The audit contract will be

awarded under competitive procedures and performed by a person

that is not associated in any way with the Department of the Interior. The auditor will be supervised by the Inspector General. The

auditor shall submit a report of the findings to the Inspector General and the Secretary of the Interior. The Inspector General will

then promptly report to the Committee on Resources of the House

of Representative and the Committee on Environment and Public

Works of the Senate on the results of each audit.

The Committee was greatly concerned to discover that the FWS

never conducted an audit of the funds used to administer the Act.

Conducting an audit of the use of the administration funds would

have been good fiscal management of the program. Had such an

audit been conducted, perhaps it could have prevented the use of

administration funds for expenses unrelated to administration of

the Act. It is the opinion of the Committee that it is imperative

that these audits are conducted and that actions are taken based

on the findings of these audits to correct any inconsistencies or

problems.

Costs of Necessary Training (category 8).—Training costs to improve administration of the Act are allowed for federal and State

full-time personnel who administer the Act.

Training is important to ensure that people are properly trained

for the jobs they are hired to perform. Training offered for courses

that would provide better administration of the Federal Aid Program are permissible. The Committee discovered that in addition

to training for appropriate administrative-type skills, Federal Aid

administrative funds were used to provide training that clearly

falls outside of what is necessary for the administration of the Program. For example, training was offered and paid for with Federal

Aid Program administrative funds for the following: Systematic Development of Informed Consent, Mourning Dove Workshop, Fish

Stock Assessment, Stream Classification and Gravel Mining Workshop, Citizen Participation by Objective, Fundamentals of Ecosystem Management, Comprehensive Accessibility Planning for

Parks, Recreation and Tourism and Media Relations. These courses

may have been important, but they did not improve the adminisVerDate 20-MAR-2000 06:35 Mar 31, 2000 Jkt 079006 PO 00000 Frm 00042 Fmt 6659 Sfmt 6602 E:\HR\OC\HR554.021 pfrm03 PsN: HR554
43

tration of the Act and it was not appropriate to fund them with administration funds.

The Committee is concerned about the method the Fish and

Wildlife Service will use to train eligible personnel. The FWS has

provided to the Committee documentation that it plans to offer a

centralized training program at the National Conservation Training Center for eligible personnel. A centralized training program is

not what the Committee intends by necessary training. Training

classes and workshops that provide eligible personnel with information and skills that will allow them to better administer the programs is the intent of the Committee. The Committee is concerned

that creation of such a program will be not to train eligible personnel in administration, but used as a way to cover the costs of

training unrelated to the administration of the Act or training of

ineligible employees.

Costs of Travel to the States, Territories and Canada (category

9).—Travel costs for personnel who administer the Act on a fulltime basis for purposes directly related to administration of State

programs or projects or who administer the Firearm and Bow

Hunter Education Grants Program or the Multi-State Conservation

Grant Program. The Committee discovered that travel was being

funded with administration funds that was unrelated to the administration of the programs.

Costs of Travel Outside of the United States (category 10).—

Travel costs that related to the administration of the Acts by personnel who administer the Acts on a full-time basis are allowed if

it is approved directly by the Assistant Secretary for Fish and

Wildlife and Parks. This does however, not restrict the travel of

Federal Aid Program employees to travel internationally to assist

in issues related to sport fish restoration. It only restricts the funding of that travel—it cannot be funded with administration funds.

The Committee discovered many trips to international destinations

for matters unrelated to the administration of the Act. For example, trips were made to foreign countries to encourage them to develop their own Sport Fish Restoration Program. Although it is important that other countries develop similar programs, it is not a

function that should be funded with administration funds. Such

travel costs clearly fall within the responsibility of the FWS’s International Affairs Office.

Relocation Expenses (category 11).—Relocation expenses for personnel who, after they relocate will administer the Act on a fulltime basis for at least one year. At the time the relocation expenses

are incurred, the Director of the FWS will have to certify that the

employee will administer the Act on a full-time basis for a least one

year. The Committee discovered that administration funds were

being used to relocate personnel who did not administer the programs. Again, the FWS was using administration funds to pay for

other expenses within the agency. For example, in one Region, administration funds were used to relocate the Deputy Regional Director.

Costs to Administer Grants (category 12).—Costs to audit, evaluate, approve, disapprove, and advise concerning grants to the

States under the State apportionments, Marine Fisheries Commission Grants and Multi-State Conservation Grants. The intent of the

44

Committee is that funds are used to determine whether or not the

grants fit within the criteria established under the Act and that

the proper fiscal management and accountability of the grants is

maintained. The process for approval does not include a programmatic review of the grants. The role of the FWS is not to

make programmatic determinations regarding the grants, but instead whether they are substantial in character and design.

In the course of streamlining the process for administering the

Sport Fish Trust funds in the Regions, the Committee grew increasingly concerned about allegations that the staff responsible for

administering the apportionments to the States used their ability

to control the time it took for projects or plans to be approved as

a means of retribution for actions States may or may not have

taken that were not considered by the Service to be appropriate.

The allegations were not limited to actions States took with regard

to the Sport Fish Restoration Trust Funds. In some cases, actions

taken by States regarding land use, wildlife or sport fish management unrelated to the Sport Fish Trust Funds, for example, were

seen to be the catalyst for actions taken by the FWS related to the

length of time it took to process grant applications or approve grant

applications. Additional allegations have surfaced of the FWS using

the approval process for State apportionments to advance the restoration and conservation goals of the FWS on the States. The Act

was not designed as a tool for the FWS to further its mission for

or in the States. Instead, it was established to provide States with

funding for State sport fish restoration projects that are necessary

from the States’ perspective for the effective management of sport

fish.

The administration of the Sport Fish Trust Fund should not be

used by the FWS to further an independent agenda. Instead, the

States are to decide, within the requirements of the Act, how to

spend the apportioned funds. Interference by the FWS in any way

to negatively impact the timing or approval of any project or plan

that falls within the bounds of the requirements of the law is an

obstruction to the implementation of the laws.

Section 202. Multi-State Conservation Grant Program

H.R. 3671 establishes a Multi-State Conservation Grant Program

(MSCGP) for the Secretary of the Interior to make grants of up to

$2.5 million from the revenues covered into the fund. The funds for

the grants will be available for two fiscal years, after which all unobligated funds are to be apportioned to the States according to the

apportionment formula. A project is eligible for funding if: (1) benefits at least 26 states, or (2) benefits a majority of the States in a

region of the United States Fish and Wildlife Service or (3) a majority of the States in a regional association of State fish and game

departments. The Secretary may award grants only based on a priority list of sport fish restoration projects prepared and submitted

by State fish and game departments acting through the International Association of Fish and Wildlife Agencies (IAFWA) each

fiscal year. The IAFWA shall prepare each priority list through a

committee comprised of the heads of State fish and game departments (or their designees). Once the list is developed, it must be

approved by a majority of the heads of all State fish and game deVerDate 20-MAR-2000 06:35 Mar 31, 2000 Jkt 079006 PO 00000 Frm 00044 Fmt 6659 Sfmt 6602 E:\HR\OC\HR554.022 pfrm03 PsN: HR554
45

partments (or their designees) and submitted not later than October 1 of each fiscal year to the Assistant Director for Wildlife and

Sport Fish Restoration Programs, who shall accept the list on behalf of the Secretary of the Interior. The Assistant Director for

Wildlife and Sport Fish Restoration Programs shall publish in the

Federal Register each priority list submitted. In preparing the list,

the IAFWA shall consult with nongovernmental organizations that

represent conservation organizations, sportsmen organizations, and

industries that fund the Sport Fish Restoration Programs.

The Secretary may make a grant only to a State or a group of

States or a nongovernmental organization (NGO) subject to the following restrictions. Any NGO applying for a grant must submit

with their grant application to the IAFWA a certification that the

organization does not promote or encourage opposition to regulated

taking of fish. The funds may not be used for education, activities,

projects, or programs that promote or encourage opposition to regulated taking of fish. Any NGO that is found to promote or encourage opposition to the regulated taking of fish does not use the

funds in compliance with the section shall return all funds received

and be subject to any other penalties under law. No activities undertaken by the personnel of State fish and game departments

shall constitute advice or recommendations for 1 or more agencies

or officers of the federal government.

The aiding in the formulation of, adoption and or administration

of any compact between two or more States for the conservation

and management of migratory fishes in marine or freshwaters was

established in Dingell-Johnson. H.R. 3671 eliminates that broad

language and establishes a funding level of $200,000 for each of the

following: the Atlantic Marine Fisheries Commission, the Gulf

States Marine Fisheries Commission and the Pacific States Marine

Fisheries Commission and the Great Lakes Fisheries Commission.

It is the intention of the Committee that all funds received by these

Commissions will be used for expenses related to conservation and

management of migratory fishes in marine or freshwaters between

States and not for use with other countries. The FWS began to

fund the Atlantic Marine Fisheries Commission, the Gulf States

Marine Fisheries Commission and the Pacific States Marine Fisheries Commission at a level of $200,000 a year. The Committee discovered that as the administration funds became scarce (due to the

use by the FWS for expenses unrelated to the administration of the

Program), the FWS began to cut back on the funding to the Commissions. To preserve the funding of compacts between two or more

States, H.R. 3671 has detailed the funding to the Commissions.

Section 203. Certifications

Section 5 of the Dingell-Johnson Sport Fish Restoration Act is

amended so that for each fiscal year the Secretary of the Interior

shall certify to the Secretary of the Treasury and to each State fish

and game department the sum which the Secretary has estimated

to be necessary for administration and the sum he or she has apportioned to each State at the time such deduction or apportionment is made.

Within 30 days after the end of each fiscal year, the Secretary

of the Interior shall certify in writing to the Secretary of the TreasVerDate 20-MAR-2000 06:35 Mar 31, 2000 Jkt 079006 PO 00000 Frm 00045 Fmt 6659 Sfmt 6602 E:\HR\OC\HR554.022 pfrm03 PsN: HR554
46

ury and to each State fish and game department the amount apportioned to each State in the most recent apportionment and the

amounts obligated by the Secretary of the Interior during the fiscal

year for administration of the Act. These amounts are also to be

published in the Federal Register.

Within 60 days after the start of each fiscal year, the Assistant

Director for Wildlife and Sport Fish Restoration Programs shall

provide to the Committee on Resources of the House of Representatives, and the Committee on Environment and Public Works of the

Senate and publish in the Federal Register the following for the fiscal year: (1) the amount of funds that will be expended for administration, (2) a breakdown of categories for which such funds will be

expended, and (3) a description of how the funds are necessary for

the administration of the Acts.

Section 204. Period of availability

Section 4(f) is amended by removing the authority of the Secretary to use any unexpended sum available for expenditure by the

Secretary of the Interior in carrying out the research program of

the FWS in respect to fish of material value for sport or recreation.

Title III—Wildlife and Sport Fish Restoration Programs

Section 301. Designation of programs

H.R. 3671 designated that the programs established under the

Wildlife Restoration Act and the Sport Fish Restoration Act are to

be collectively referred to as the Federal Assistance Program for

State Wildlife and Sport Fish Restoration Programs. The reference

to the programs as the Federal Aid Program has supported a culture within the FWS that the revenues collected for Wildlife and

Sport Fish Restoration belong to the FWS. There is a misconception regarding whose money it is. The revenues collected are from

excise taxes placed on ammunition, firearms, archery equipment

and fishing equipment paid for by sportsmen and women. These

monies are paid so that State game and fish departments could use

it for wildlife and sport fish restoration projects.

Section 302. Assistant Director for Wildlife and Sport Fish Restoration Programs

H.R. 3671 establishes an Assistant Director for Wildlife and

Sport Fish Restoration Programs (Assistant Director). The lack of

representation at the Directorate level of the FWS added to the environment that allowed the administration funds to be spent on expenses not related to the administration of the programs. The Assistant Director will report directly to the Director. In addition, the

individuals in the Regional offices who are responsible for administering the Wildlife and Sport Fish Restoration Programs will also

report to the Assistant Director. The Assistant Director will only be

responsible for the administration, management and oversight of

the Federal Assistance Program for State Wildlife and Sport Fish

Restoration Programs.

47

Section 303. Chief of the Division of Federal Aid

The Chief of the Division of Federal Aid or any similar position

is abolished and all duties shall be the responsibility of the Assistant Director for Wildlife and Sport Fish Restoration Programs (Assistant Director). By creating an Assistant Director whose sole responsibility is the Federal Assistance Program for State Wildlife

and Sport Fish Restoration Programs, the position of the Chief is

unnecessary.

COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of rule XIII

of the Rules of the House of Representatives, the Committee on Resources’ oversight findings and recommendations are reflected in

the body of this report.

CONSTITUTIONAL AUTHORITY STATEMENT

Article I, section 8 of the Constitution of the United States

grants Congress the authority to enact this bill.

COMPLIANCE WITH HOUSE RULE XIII

1. Cost of Legislation.—Clause 3(d)(2) of rule XIII of the Rules

of the House of Representatives requires an estimate and a comparison by the Committee of the costs which would be incurred in

carrying out this bill. However, clause 3(d)(3)(B) of that Rule provides that this requirement does not apply when the Committee

has included in its report a timely submitted cost estimate of the

bill prepared by the Director of the Congressional Budget Office

under section 402 of the Congressional Budget Act of 1974.

2. Congressional Budget Act.—As required by clause 3(c)(2) of

rule XIII of the Rules of the House of Representatives and section

308(a) of the Congressional Budget Act of 1974, this bill does not

contain any new budget authority, credit authority, or an increase

or decrease in revenues or tax expenditures. According to the Congressional Budget Office, enactment of this bill could affect the timing of outlays from direct spending authority but the net impact on

the federal budget would not be significant in any year.

3. Government Reform Oversight Findings.—Under clause 3(c)(4)

of rule XIII of the Rules of the House of Representatives, the Committee has received no report of oversight findings and recommendations from the Committee on Government Reform on this

bill.

4. Congressional Budget Office Cost Estimate.—Under clause

3(c)(3) of rule XIII of the Rules of the House of Representatives and

section 403 of the Congressional Budget Act of 1974, the Committee has received the following cost estimate for this bill from the

Director of the Congressional Budget Office:

48

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, March 23, 2000.

Hon. DON YOUNG,

Chairman, Committee on Resources,

House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 3671, the Wildlife and

Sport Fish Restoration Programs Improvement Act of 2000.

If you wish further details on this estimate, we will be pleased

to provide them. The CBO staff contacts are Deborah Reis (for federal costs) and Keith Mattrick (for the private-sector impact).

Sincerely,

BARRY B. ANDERSON

(For Dan L. Crippen, Director).

Enclosure.

H.R. 3671—Wildlife and Sport Fish Restoration Programs Improvement Act of 2000

CBO estimates that enacting H.R. 3671 would have no net impact on the federal budget. Because the bill could affect the timing

of outlays from direct spending authority, pay-as-you-go procedures

would apply. We estimate, however, that the net impact on federal

spending would not be significant in any year. H.R. 3671 contains

no intergovernmental mandates as defined in the Unfunded Mandates Reform Act (UMRA) and would impose no costs on state,

local, or tribal governments. H.R. 3671 would impose a new private-sector mandate on the International Association of Fish and

Wildlife Agencies. Based on information provided by the association

and the U.S. Fish and Wildlife Service, CBO estimates that the direct costs of complying with the new mandate would fall well below

the threshold established in UMRA ($100 million in 1996, adjusted

annually for inflation).

H.R. 3671 would amend the Federal Aid in Wildlife Restoration

Act and the Federal Aid in Sport Fish Restoration Act to reduce

the amounts that may be spent for administering grants or fish

and wildlife restoration. Specifically, for each of the two grant programs carried out under these acts, the bill would limit spending

for administrative expenses to $5 million annually through fiscal

year 2003, and $7 million annually, adjusted for inflation, thereafter.

Under existing law, the amounts set aside for such expenses are

calculated as a percentage of total deposits to the two funds each

year. The annual deposits consist of excise taxes (primarily on fishing and hunting equipment), import duties, and interest earnings.

All such amounts, including those used for administration, are

available without appropriation in the year following deposit. The

U.S. Fish and Wildlife Service, which oversees both programs,

spends 8 percent annually to administer the federal aid-wildlife

program ($14 million in 1999) and 6 percent to administer the

sport fish program ($17 million in 1999). By capping administrative

costs, the bill would reduce such costs in the future, however, this

49

savings would be offset by an equal amount of additional grant expenditures.

The bill also would create a new program for hunting education and safety, to be funded with up to $7.5 million of each year’s revenues. In addition, it would set aside up to $2.5 million from each

of the two funds for multi-state conservation grants. Finally, H.R.

3671 would establish within the U.S. Fish and Wildlife Service an

assistant director for wildlife and sport fish restoration programs.

The salary of the assistant director, who would directly administer

these programs on a full-time basis, would be paid from the two

funds. These new authorized expenditures would not increase the

total amount of spending for fish and wildlife restoration.

The bill would impose a private-sector mandate by requiring that

the International Association of Fish and Wildlife Agencies prepare

and submit priority lists for projects to be funded by the new multistate conservation grant program. As the association has voluntarily performed a similar role for the Department of the Interior

in the past, however, CBO estimates that the direct costs imposed

by that mandate would not be significant.

The CBO staff contacts are Deborah Reis (for federal costs) and

Keith Mattrick (for the private-sector impacts). This estimate was

approved by Peter H. Fontaine, Deputy Assistant Director for

Budget Analysis.

COMPLIANCE WITH PUBLIC LAW 104–4

This bill contains no unfunded mandates, as defined under Public Law 104–4.

PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

This bill is not intended to preempt any State, local or tribal law.

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

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):

ACT OF SEPTEMBER 2, 1937

(Popularly known as the ‘‘Federal Aid in Wildlife Restoration Act’’ and the ‘‘PittmanRobertson Wildlife Restoration Act’’)

AN ACT To provide that the United States shall aid the States in wildliferestoration projects, and for other purposes.

* * * * * * *

øSEC. 4. (a) So much, not to exceed 8 per centum, of the revenues

(excluding interest accruing under section 3(b)) covered into said

fund in each fiscal year as the Secretary of the Interior may estimate to be necessary for his expenses in the administration and

execution of this Act and the Migratory Bird Conservation Act shall

be deducted for that purpose, and such sum is authorized to be

made available therefor until the expiration of the next succeeding

fiscal year, and within sixty days after the close of such fiscal year

50

the Secretary of the Interior shall apportion such part thereof as

remains unexpended by him, if any, and make certificate thereof

to the Secretary of the Treasury and to the State fish and game

departments on the same basis and in the same manner as is provided as to other amounts authorized by this Act to be apportioned

among the States for such current fiscal year.¿

ALLOCATION AND APPORTIONMENT OF AVAILABLE AMOUNTS

SEC. 4. (a) SET-ASIDE FOR ADMINISTRATION.—(1) Of the revenues

(excluding interest accruing under section 3(b)) covered into the

fund in each fiscal year, up to $5,000,000 may be used by the Secretary for expenses to administer this Act, in accordance with this

subsection and section 9 in each of the fiscal years 2001, 2002, and

2003. Of the revenues (excluding interest accruing under section

3(b)) covered into the fund in each fiscal year, beginning in fiscal

year 2004, such amount, adjusted annually to reflect the changes in

the Consumer Price Index, not to exceed $7,000,000, may be used by

the Secretary for expenses to administer this Act, in accordance with

this subsection and section 9.

(2)(A) The amount authorized to be used by the Secretary under

paragraph (1) each fiscal year shall remain available for obligation

for such use until the expiration of that fiscal year. Within 60 days

after that fiscal year, the Secretary shall apportion among the

States any of the amount that remains unobligated at the end of the

fiscal year, on the same basis and in the same manner as other

amounts authorized by this Act are apportioned among the States

for the fiscal year in which the apportionment is made.

(B) Within 30 days after the end of each fiscal year, the Secretary

shall—

(i) certify in writing to the Secretary of the Treasury and to

each State fish and game department—

(I) the amount apportioned under subparagraph (A) to

each State in the most recent apportionment under that

subparagraph; and

(II) amounts obligated by the Secretary during the fiscal

year for administration of this Act; and

(ii) publish in the Federal Register the amounts so certified.

(b) APPORTIONMENT TO STATES.—The Secretary of the Interior,

øafter making the aforesaid deduction, shall apportion, except as

provided in subsection (b) of this section,¿ after deducting the

amount authorized to be used under subsection (a), the amount apportioned under subsection (c), any amount apportioned under section 8A, and amounts provided as grants under sections 10 and 11,

shall apportion the remainder of the revenue in said fund for each

fiscal year among the several States in the following manner: Onehalf in the ratio which the area of each State bears to the total

area of all the States, and one-half in the ratio which the number

of paid hunting-license holders of each State in the second fiscal

year preceding the fiscal year for which such apportionment is

made, as certified to said Secretary by the State fish and game departments, bears to the total number of paid hunting-license holders of all the States. Such apportionments shall be adjusted equitably so that no State shall receive less than one-half of 1 per centum nor more than 5 per centum of the total amount apportioned.

51

The term fiscal year as used in this Act shall be a period of twelve

consecutive months from October 1 through the succeeding September 30, except that the period for enumeration of paid huntinglicense holders shall be a State’s fiscal or license year.

ø(b)¿ (c) One-half of the revenues accruing to the fund under this

Act each fiscal year (beginning with the fiscal year 1975) from any

tax imposed on pistols, revolvers, bows, and arrows shall be apportioned among the States in proportion to the ratio that the population of each State bears to the population of all the States: Provided, That each State shall be apportioned not more than 3 per

centum and not less than 1 per centum of such revenues and

Guam, the Virgin Islands, American Samoa, and the Northern

Mariana Islands shall each be apportioned one-sixth of 1 per centum of such revenues. For the purpose of this subsection, population shall be determined on the basis of the latest decennial census for which figures are available, as certified by the Secretary of

Commerce.

SEC. 5. For each fiscal year, the Secretary of the Interior shall

certify to the Secretary of the Treasury and to each State fish and

game department the sum which he has estimated to be deducted

for administering and executing this Act and the Migratory Bird

Conservation Act and the sum which he has apportioned to each

State, at the time such deduction or apportionment is made. Any

State desiring to avail itself of the benefits of this Act shall notify

the Secretary of the Interior to this effect within sixty days after

it has received the certification referred to in this section. The sum

apportioned to any State which fails to notify the Secretary of the

Interior as herein provided is authorized to be made available for

expenditure by the Secretary of the Interior in carrying out the

provisions of the Migratory Bird Conservation Act.

* * * * * * *

øSEC. 9. Out of the deductions set aside for administering and

executing this Act and the Migratory Bird Conservation Act, the

Secretary of Agriculture is authorized to employ such assistants,

clerks, and other persons in the city of Washington and elsewhere,

to be taken from the eligible lists of the Civil Service; to rent or

construct buildings outside of the city of Washington; to purchase

such supplies, materials, equipment, office fixtures, and apparatus;

and to incur such travel and other expenses, including purchase,

maintenance, and hire of passenger-carrying motor vehicles, as he

may deem necessary for carrying out the purposes of this Act.¿

REQUIREMENTS AND RESTRICTIONS REGARDING USE OF AMOUNTS FOR

ADMINISTRATION

SEC. 9. (a) AUTHORIZED ADMINISTRATIVE COSTS.—The Secretary

may use amounts under section 4(a)(1) only for administration expenses that directly support the implementation of this Act and that

consist of any of the following:

(1) Personnel costs of any employee who directly administers

this Act on a full-time basis.

(2) Personnel costs of any employee who directly administers

this Act on a part-time basis for at least 20 hours each week,

not to exceed the portion of such costs incurred with respect to

52

the work hours of such employee during which the employee directly administers this Act, as such hours are certified by the

supervisor of the employee.

(3) Support costs directly associated with personnel costs authorized under paragraphs (1) and (2) of this subsection not including costs associated with staffing and operation of regional

offices of the United States Fish and Wildlife Service and the

Department of the Interior, other than for purposes of this Act.

(4) Costs to evaluate, approve, disapprove, and advise concerning comprehensive fish and wildlife resource management

plans under section 6(a)(1) and wildlife restoration projects

under section 6(a)(2).

(5) Overhead costs, including general administrative services,

that are directly attributable to administration of this Act based

on—

(A) actual costs, as determined by a direct cost allocation

methodology approved by the Director of the Office of Management and Budget for use by Federal agencies; and

(B) for those costs not determinable pursuant to subparagraph (A), an amount per full-time equivalent employee authorized pursuant to paragraphs (1) and (2) that does not

exceed the amount charged or assessed for such costs per

full-time equivalent employee for any other division or program of the United States Fish and Wildlife Service.

(6) Costs incurred in auditing the wildlife and sportfish activities of each State fish and game department and the use of

funds under section 6 by each State fish and game department

every 5 years.

(7) Costs of audits under subsection (d).

(8) Costs of necessary training of Federal and State full-time

personnel who administer this Act to improve administration of

this Act.

(9) Costs of travel to the States, territories, and Canada by

personnel who administer this Act on a full-time basis for purposes directly related to administration of State programs or

projects, or who administer grants under section 6, section 10,

or section 11.

(10) Costs of travel outside of the United States (except travel

to Canada) that relates directly to administration of this Act

and that is approved directly by the Assistant Secretary for

Fish and Wildlife and Parks.

(11) Relocation expenses for personnel who, after relocation,

will administer this Act on a full-time basis for at least 1 year,

as certified by the Director of the United States Fish and Wildlife Service at the time such relocation expenses are incurred.

(12) Costs to audit, evaluate, approve, disapprove, and advise

concerning grants under section 6, section 10, or section 11.

(b) UNAUTHORIZED COSTS.—Use of funds for a cost to administer

this Act shall not be authorized because the cost is not expressly prohibited by this Act.

(c) RESTRICTION ON USE TO SUPPLEMENT GENERAL APPROPRIATIONS.—The Secretary may not use amounts under section 4(a)(1) to

supplement any function for which general appropriations are made

53

for the United States Fish and Wildlife Service or any other entity

of the Department of the Interior.

(d) AUDIT REQUIREMENT.—(1) The Inspector General of the Department of the Interior shall procure the conduct of biennial audits, in accordance with generally accepted accounting principles, of

expenditures of amounts used by the Secretary for administration of

this Act.

(2) Audits under this subsection shall be performed under contracts that are awarded under competitive procedures (as that term

is defined in section 4 of the Office of Federal Procurement Policy

Act (41 U.S.C. 403)), by a person that is not associated in any way

with the Department of the Interior.

(3) The auditor selected pursuant to paragraph (1) shall report to,

and be supervised by, the Inspector General of the Department of

the Interior, except that the auditor shall submit a copy of the biennial audit findings to the Secretary at the time such findings are

submitted to the Inspector General of the Department of the Interior.

(4) The Inspector General of the Department of the Interior shall

promptly report to the Committee on Resources of the House of Representatives and the Committee on Environment and Public Works

of the Senate on the results of each such audit.

(e) CERTIFICATION BY SECRETARY.—(1) The Secretary shall within

3 months after each fiscal year certify in writing to the Committee

on Resources of the House of Representatives and the Committee on

Environment and Public Works of the Senate the following for the

fiscal year:

(A) The amount of funds used under section 4(a)(1) and a

breakdown of categories for which such funds were expended.

(B) The amount of funds apportioned to States under section

4(a)(2).

(C) The results of the audits performed pursuant to subsection (d).

(D) That all funds expended under section 4(a)(1) were necessary for administration of this Act.

(E) The Secretary, the Assistant Secretary for Fish and Wildlife and Parks, the Director of the United States Fish and Wildlife Service, and the Assistant Director for Wildlife and Sport

Fish Restoration Programs each properly discharged their duties under this Act.

(2) The Secretary may not delegate the responsibility to make certifications under paragraph (1) except to the Assistant Secretary for

Fish and Wildlife and Parks.

(3) Within 60 days after the start of each fiscal year, the Assistant

Director for Wildlife and Sport Fish Restoration Programs shall

provide to the Committee on Resources of the House of Representatives and the Committee on Environment and Public Works of the

Senate the following for the fiscal year:

(A) The amount of funds that will be expended in the fiscal

year under section 4(a)(1) and a breakdown of categories for

which such funds will be expended.

(B) A description of how the funds to be expended are necessary for administration of this Act.

(4) The Secretary shall promptly publish in the Federal Register

each certification under this subsection.

54

(f) CERTIFICATION BY ASSISTANT DIRECTOR FOR WILDLIFE AND

SPORT FISH RESTORATION PROGRAMS.—Within 1 month after the

end of each fiscal year, the Assistant Director for Wildlife and Sport

Fish Restoration Programs shall—

(1) certify that—

(A) all amounts expended in that fiscal year to administer this Act in agency headquarters and in regional offices

of the United State Fish and Wildlife Service were used in

accordance with this Act; and

(B) all such expenditures were necessary to administer

this Act; and

(2) distribute such certifications to each State fish and game

department.

FIREARM AND BOW HUNTER EDUCATION AND SAFETY PROGRAM

GRANTS

SEC. 10. (a) IN GENERAL.—Of the revenues covered into the fund in each fiscal year, $15,000,000, less the amount used under section

4(a) and the amount granted under section 11(a)(1), shall be apportioned among the States in the manner specified in section 4(b) by

the Secretary for the following:

(1) Grants to States for the enhancement of hunter education

programs, hunter and sporting firearm safety programs, and

hunter development programs.

(2) Grants for the enhancement of interstate coordination and

development of hunter education programs.

(3) Grants to States for the enhancement of bow hunter and

archery education, safety, and development programs.

(4) Grants to States for the enhancement of construction or

enhancement of firearm shooting ranges and archery ranges,

and updating safety features of firearm shooting ranges and

archery ranges.

(b) COST-SHARING.—The Federal share of the cost of any activity

carried out with a grant under this section may not exceed 75 percent of the total cost of the activity and the remainder of the cost

shall come from a non-Federal source.

(c) PERIOD OF AVAILABILITY; REAPPORTIONMENT.—Amounts available under this subsection shall remain available for 1 fiscal year,

after which all unobligated balances shall be apportioned among

the States in the manner specified in section 4(b).

MULTI-STATE CONSERVATION GRANT PROGRAM

SEC. 11. (a) IN GENERAL.—(1) Up to $2,500,000 of the revenues

covered into the fund each fiscal year shall be available to the Secretary for making multi-State conservation grants in accordance

with this section.

(2) Amounts available under this subsection shall remain available for two fiscal years, after which all unobligated balances shall

be apportioned in the manner specified in section 4(b).

(b) SELECTION OF PROJECTS.—(1) A project shall not be eligible

for a grant under this section unless it will benefit at least 26

States, a majority of the States in a region of the United States Fish

and Wildlife Service, or a regional association of State fish and

game departments.

55

(2) The Secretary may award grants under this section based only

on a priority list of wildlife restoration projects prepared and submitted by State fish and game departments acting through the

International Association of Fish and Wildlife Agencies each fiscal

year in accordance with paragraph (3).

(3)(A) The International Association of Fish and Wildlife Agencies

shall—

(i) prepare each priority list through a committee comprised

of the heads of State fish and game departments (or their designees);

(ii) approve each priority list by a majority of the heads of all

State fish and game departments (or their designees); and

(iii) submit each priority list by not later than October 1 of

each fiscal year to the Assistant Director for Wildlife and Sport

Fish Restoration Programs, who shall accept such list on behalf

of the Secretary.

(B) In preparing any priority list under this paragraph, the International Association of Fish and Wildlife Agencies shall consult

with nongovernmental organizations that represent conservation organizations, sportsmen organizations, and industries that support

or promote hunting, trapping, recreational shooting, bow hunting,

or archery.

(4) The Assistant Director for Wildlife and Sport Fish Restoration

Programs shall publish in the Federal Register each priority list

submitted under this subsection.

(c) ELIGIBLE GRANTEES.—(1) The Secretary may make a grant

under this section only to—

(A) a State or group of States; or

(B) subject to paragraph (2), a nongovernmental organization.

(2) Any nongovernmental organization applying for a grant under

this section shall submit with the application to the International

Association of Fish and Wildlife Agencies a certification that the organization does not promote or encourage opposition to regulated

hunting or trapping of regulated wildlife, and will use any funds

awarded pursuant to this section in compliance with subsection (d).

(3) Any nongovernmental organization that is found to promote or

encourage opposition to regulated hunting or trapping of regulated

wildlife or does not use funds in compliance with subsection (d)

shall return all funds received and be subject to any other penalties

under law.

(d) USE OF GRANTS.—Amounts provided as a grant under this

section may not be used for education, activities, projects, or programs that promote or encourage opposition to regulated hunting or

trapping of regulated wildlife.

(e) CLARIFICATION.—No activities undertaken by the personnel of

State fish and game departments under this section shall constitute

advice or recommendations for 1 or more agencies or officers of the

Federal Government.

SEC. ø10.¿ 12. The Secretary of Agriculture is authorized to

make rules and regulations for carrying out the provisions of this

Act.

56

ACT OF AUGUST 9, 1950

(Popularly known as the ‘‘Federal Aid in Fish Restoration Act’’, the ‘‘Fish Restoration and Management Projects Act’’, and the ‘‘Dingell-Johnson Sport Fish Restoration Act’’)

AN ACT To provide that the United States shall aid the States in fish restoration

and management projects, and for other purposes.

* * * * * * *

SEC. 4. (a) * * *

* * * * * * *

ø(d) Of the balance of each such annual appropriation remaining

after the distribution and use under subsections (a), (b), and (c), respectively, so much, not to exceed 6 per centum of such balance,

as the Secretary of the Interior may estimate to be necessary for

his or her expenses in the conduct of necessary investigations, administration, and the execution of this Act, for an outreach and

communications program and for aiding in the formulation, adoption, or administration of any compact between two or more States

for the conservation and management of migratory fishes in marine

or freshwaters, shall be deducted for that purpose, and such sum

is authorized to be made available until the expiration of the next

succeeding fiscal year. Of the sum available to the Secretary of the

Interior under this subsection for any fiscal year, up to $2,500,000

may be used for the National Outreach and Communications Program under section 8(d) in addition to the amount available for

that program under subsection (c). No funds available to the Secretary under this subsection may be used to replace funding traditionally provided through general appropriations, nor for any purposes except those purposes authorized by this Act. The Secretary

shall publish a detailed accounting of the projects, programs, and

activities funded under this subsection annually in the Federal

Register.¿

‘‘(d)(1) Of the balance of each such annual appropriation remaining after the distribution and use under subsections (a), (b), and (c)

of this section and section 14, up to $5,000,000 may be used by the

Secretary of the Interior for expenses in accordance with this subsection and section 9 in each of the fiscal years 2001, 2002, and

2003. Of the balance of each such annual appropriation remaining

after the distribution and use under subsections (a), (b), and (c) of

this section and section 14, beginning in fiscal year 2004, such

amount, adjusted annually to reflect the changes in the Consumer

Price Index, not to exceed $7,000,000, may be used by the Secretary

of the Interior for expenses in accordance with this subsection and

section 9.

(2) The amount authorized to be used by the Secretary under

paragraph (1) each fiscal year shall remain available for obligation

for such use until the expiration of that fiscal year. Within 60 days

after the end of that fiscal year, the Secretary shall apportion any

of the amount that remains unobligated at the end of the fiscal year

on the same basis and in the same manner as other amounts authorized by this Act are apportioned among the States under section

4(e) for the fiscal year in which the apportionment is made.

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(e) The Secretary of the Interior, after the distribution, transfer,

use, and deduction under subsections (a), (b), (c), and (d) of this section and section 14, respectively, shall apportion the remainder of

each such annual appropriation among the several States in the

following manner: 40 per centum in the ratio which the area of

each State including coastal and Great Lakes waters (as determined by the Secretary of the Interior) bears to the total area of

all the States, and 60 per centum in the ratio which the number

of persons holding paid licenses to fish for sport or recreation in the

State in the second fiscal year preceding the fiscal year for which

such apportionment is made, as certified to said Secretary by the

State fish and game departments, bears to the number of such persons in all the States. Such apportionments shall be adjusted equitably so that no State shall receive less than 1 per centum nor

more than 5 per centum of the total amount apportioned. Where

the apportionment to any State under this section is less than

$4,500 annually, the Secretary of the Interior may allocate not

more than $4,500 of said appropriation to said State to carry out

the purposes of this Act when said State certifies to the Secretary

of the Interior that it has set aside not less than $1,500 from its

fish-and-game funds or has made, through its legislature, an appropriation in this amount for said purposes.

(f) øSo much of any sum not allocated under the provisions of

this section for any fiscal year is hereby authorized to be made

available for expenditure to carry out the purposes of this Act until

the close of the succeeding fiscal year, and if unexpended or unobligated at the end of such year, such sum is hereby authorized to be

made available for expenditure by the Secretary of the Interior in

carrying on the research program of the Fish and Wildlife Service

in respect to fish of material value for sport or recreation.¿ The

term fiscal year as used in this section shall be a period of twelve

consecutive months from October 1 through the succeeding September 30, except that the period for enumeration of persons holding licenses to fish shall be a State’s fiscal or license year.

øSEC. 5.¿

CERTIFICATIONS

SEC. 5. (a) ADMINISTRATIVE DEDUCTION AND STATE APPORTIONMENTS.—For each fiscal year beginning with the fiscal year ending

June 30, 1951, the Secretary of the Interior shall certify to the Secretary of the Treasury, and to each State fish and game department, the sum which he has estimated to be deducted for administering and executing this Act and the sum which he has apportioned to each State for such fiscal year, at the time such deduction

or apportionment is made.

(b) FISCAL YEAREND CERTIFICATION BY SECRETARY.—Within 30

days after the end of each fiscal year, the Secretary of the Interior

shall—

(1) certify in writing to the Secretary of the Treasury and to

each State fish and game department—

(A) the amount apportioned under section 4(d)(2) to each

State in the most recent apportionment under that section

for that fiscal year; and

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(B) amounts obligated by the Secretary during the fiscal

year for administration of this Act; and

(2) publish in the Federal Register the amounts so certified.

(c) CERTIFICATION BY ASSISTANT DIRECTOR.—(1) Within 60 days

after the start of each fiscal year, the Assistant Director for Wildlife

and Sport Fish Restoration Programs shall provide to the Committee on Resources of the House of Representatives and the Committee on Environment and Public Works of the Senate the following for the fiscal year:

(A) The amount of funds that will be expended in the fiscal

year under section 4(d)(2) and a breakdown of categories for

which such funds will be expended.

(B) A description of how the funds to be expended are necessary for administration of this Act.

(2) The Secretary of the Interior shall promptly publish in the

Federal Register each certification under this subsection.

* * * * * * *

øSEC. 9. Out of the deductions set aside for administering and

executing this Act the Secretary of the Interior is authorized to employ such assistants, clerks, and other persons in the District of Columbia and elsewhere, to be taken from the eligible lists of the civil

service; to rent or construct buildings outside of the District of Columbia; to purchase such supplies, materials, equipment, office fixtures, and apparatus; and to incur such travel and other expenses,

including publication of technical and administrative reports, purchase, maintenance, and hire of passenger-carrying motor vehicles,

as he may deem necessary for carrying out the provisions of this

Act.¿

REQUIREMENTS AND RESTRICTIONS REGARDING USE OF AMOUNTS FOR

ADMINISTRATION

SEC. 9. (a) AUTHORIZED ADMINISTRATION COSTS.—The Secretary

of the Interior may use amounts under section 4(d) only for administration expenses that directly support the implementation of this

Act and that consist of any of the following:

(1) Personnel costs of any employee who directly administers

this Act on a full-time basis.

(2) Personnel costs of any employee who directly administers

this Act on a part-time basis for at least 20 hours each week,

not to exceed the portion of such costs incurred with respect to

the work hours of such employee during which the employee directly administers this Act, as such hours are certified by the

supervisor of the employee.

(3) Support costs directly associated with personnel costs authorized under paragraphs (1) and (2).

(4) Costs to evaluate, approve, disapprove, and advise concerning comprehensive fish and wildlife resource management

plans under section 6(a)(1) and fish restoration and management projects under section 6(a)(2).

(5) Overhead costs, including general administrative services,

that are directly attributable to administration of this Act based

on—

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(A) actual costs, as determined by a direct cost allocation

methodology approved by the Director of the Office of Management and Budget for use by Federal agencies; and

(B) for those costs not determinable pursuant to subparagraph (A), an amount per full-time equivalent employee authorized pursuant to paragraphs (1) and (2) that does not

exceed the amount charged or assessed for such costs per

full-time equivalent employee for any other division or program of the United States Fish and Wildlife Service.

(6) Costs incurred in auditing the wildlife and sport fish activities of each State fish and game department and the use of

funds under section 6 by each State fish and game department

every 5 years.

(7) Costs of audits under subsection (d).

(8) Costs of necessary training of Federal and State full-time

personnel who administer this Act to improve administration of

this Act.

(9) Costs of travel to the States, territories, and Canada by

personnel who administer this Act on a full-time basis for purposes directly related to administration of State programs or

projects, or who administer grants under section 6 or section 14.

(10) Costs of travel outside of the United States (except travel

to Canada) that relates to administration of this Act and that

is approved directly by the Assistant Secretary for Fish and

Wildlife and Parks.

(11) Relocation expenses for personnel who, after relocation,

will administer this Act on a full-time basis for at least 1 year,

as certified by the Director of the United States Fish and Wildlife Service at the time such relocation expenses are incurred.

(12) Costs to audit, evaluate, approve, disapprove, and advise

concerning grants under section 6 and section 14.

(b) UNAUTHORIZED COSTS.—Use of funds for a cost to administer

this Act shall not be authorized because the cost is not expressly prohibited by this Act.

(c) RESTRICTION ON USE TO SUPPLEMENT GENERAL APPROPRIATIONS.—The Secretary may not use amounts under section 4(d) to

supplement any function for which general appropriations are made

for the United States Fish and Wildlife Service or any other entity

of the Department of the Interior.

(d) AUDIT REQUIREMENT.—(1) The Inspector General of the Department of the Interior shall procure the conduct of biennial audits, in accordance with generally accepted accounting principles, of

expenditures of amounts used by the Secretary for administration of

this Act.

(2) Audits under this subsection shall be performed under contracts that are awarded under competitive procedures (as that term

is defined in section 4 of the Office of Federal Procurement Policy

Act (41 U.S.C. 403)), by a person that is not associated in any way

with the Department of the Interior.

(3) The auditor selected pursuant to paragraph (1) shall report to,

and be supervised by, the Inspector General of the Department of

the Interior, except that the auditor shall submit a copy of the biennial audit findings to the Secretary of the Interior at the time such

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findings are submitted to the Inspector General of the Department

of the Interior.

(4) The Inspector General of the Department of the Interior shall

promptly report to the Committee on Resources of the House of Representatives and the Committee on Environment and Public Works

of the Senate on the results of each such audit.

(e) CERTIFICATION BY SECRETARY.—(1) The Secretary of the Interior shall within 3 months after each fiscal year certify in writing

to the Committee on Resources of the House of Representatives and

the Committee on Environment and Public Works of the Senate the

following for the fiscal year:

(A) The amount of funds used under section 4(d) and a breakdown of categories for which such funds were expended.

(B) The amount of funds apportioned to States under section

4(d)(2)(A).

(C) The results of the audits performed pursuant to subsection (d).

(D) That all funds expended under section 4(d) were necessary for administration of this Act.

(E) The Secretary, Assistant Secretary for Fish and Wildlife

and Parks, the Director of the United States Fish and Wildlife

Service, and the Assistant Director for Wildlife and Sport Fish

Restoration Programs each properly discharged their duties

under this Act.

(2) The Secretary may not delegate the responsibility to make certifications under paragraph (1) except to the Assistant Secretary for

Fish and Wildlife and Parks.

(3) The Secretary shall promptly publish in the Federal Register

each certification under this subsection.

(f) CERTIFICATION BY ASSISTANT DIRECTOR FOR WILDLIFE AND

SPORT FISH RESTORATION PROGRAMS.—Within 1 month after the

end of each fiscal year, the Assistant Director for Wildlife and Sport

Fish Restoration Programs shall—

(1) certify that—

(A) all amounts expended in that fiscal year to administer this Act in agency headquarters and in regional offices

of the United States Fish and Wildlife Service were used in

accordance with this Act; and

(B) all such expenditures were necessary to administer

this Act; and

(2) distribute such certifications to each State fish and game

department.

* * * * * * *

øSEC. 13. The effective date of this Act shall be July 1, 1950.¿

MULTI-STATE CONSERVATION GRANT PROGRAM

SEC. 14. (a) IN GENERAL.—(1) Of the balance of each annual appropriation made in accordance with section 3 remaining after the

distribution and use under subsections (a), (b), and (c) of section 4

each fiscal year, up to $2,500,000 shall be available to the Secretary

of the Interior for making multi-State conservation grants in accordance with this section.

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(2) Amounts available under this subsection shall remain available for 2 fiscal years, after which all unobligated balances shall be

apportioned in the manner specified in section 4(e).

(b) SELECTION OF PROJECTS.—(1) A project shall not be eligible

for a grant under this section unless it will benefit at least 26

States, a majority of the States in a region of the Fish and Wildlife

Service, or a regional association of State fish and game departments.

(2) The Secretary of the Interior may award grants under this section based only on a priority list of sportfish restoration projects prepared and submitted by State fish and game departments acting

through the International Association of Fish and Wildlife Agencies

each fiscal year in accordance with paragraph (3).

(3)(A) The International Association of Fish and Wildlife Agencies

shall—

(i) prepare each priority list through a committee comprised

of the heads of State fish and game departments (or their designees);

(ii) approve each priority list by a majority of the heads of

State fish and game departments (or their designees); and

(iii) submit each priority list by not later than October 1 of

each fiscal year to the Secretary of the Interior.

(B) In preparing any priority list under this paragraph, the International Association of Fish and Wildlife Agencies shall consult

with nongovernmental organizations that represent conservation organizations, sportsmen organizations, and industries that fund the

Sport Fish Restoration Programs.

(4) The Assistant Director for Wildlife and Sport Fish Restoration

Programs shall publish in the Federal Register each priority list

submitted under this subsection.

(c) ELIGIBLE GRANTEES.—(1) The Secretary of the Interior may

make a grant under this section only to—

(A) a State or group of States; or

(B) subject to paragraph (2) a nongovernmental organization.

(2) Any nongovernmental organization applying for a grant under

this section shall submit with the application to the International

Association of Fish and Wildlife Agencies a certification that the organization does not promote or encourage opposition to the regulated taking of fish and will use any funds awarded pursuant to

this section in compliance with subsection (d).

(3) Any nongovernmental organization that is found to promote or

encourage opposition to the regulated taking of fish or does not use

funds in compliance with subsection (d) shall return all funds received and be subject to any other penalties under law.

(d) USE OF GRANTS.—Amounts provided as a grant under this

section may not be used for education, activities, projects, or programs that promote or encourage opposition to the regulated taking

of fish.

(e) CLARIFICATION.—No activities undertaken by the personnel of

State fish and game departments, other State agencies, or organizations of State fish and game departments under this section shall

constitute advice or recommendations for 1 or more agencies or officers of the Federal Government.

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(f) FUNDING FOR MARINE FISHERIES COMMISSIONS.—Of the balance of each annual appropriation made in accordance with section

3 remaining after the distribution and use under subsections (a),

(b), and (c) of section 4 each fiscal year and after deducting

amounts used for grants under subsection (a) of this section,

$200,000 shall be available for each of—

(1) the Atlantic States Marine Fisheries Commission;

(2) the Gulf States Marine Fisheries Commission;

(3) the Pacific States Marine Fisheries Commission; and

(4) the Great Lakes Fisheries Commission.

(63)

ADDITIONAL VIEWS

The general intent of this legislation is to improve the financial

management and accountability of the Office of Federal Aid within

the U.S. Fish and Wildlife Service (Service). We do not oppose this

broad objective. However, the Majority has proposed in this legislation an inter-locking set of funding caps, spending controls and redundant reports and certifications which, when taken together,

provide insufficient funds and administrative flexibility to allow the

Service to adequately implement reforms. These measures are

overly excessive, and we contend that the legislation should be

made less prescriptive to ensure that the Service can actually improve performance and ensure accountability.

Evidence documented by the General Accounting Office (GAO)

investigation and by the Majority’s own parallel investigation demonstrated that the administration and financial oversight of the

Federal Aid in Wildlife and Sport Fish Restoration Program was

lax, if not abysmal. We believe it is appropriate for Congress to address these deficiencies with reasonable, targeted reforms. That

said, we do challenge the necessity and practically of the entire

menu of prescriptive reforms developed by the Majority in this legislation. In its present form, we are concerned that the cumulative

affects of the proposed reform strategy might be counterproductive.

Moreover, we are concerned this bill might ultimately erode the capabilities of the Service to effectively administer the program, and

also frustrate—if not prevent—the Service from achieving the worthy goal of this legislation.

Currently under Pittman-Robertson and Dingell-Johnson, the

Service is authorized to withhold 8 percent and 6 percent of funds,

respectively, to ‘‘administer and execute’’ the Federal Aid Program.

This percent allowance has generally provided approximately $30

million annually to administer the Program. The GAO investigation did reveal some highly questionable, if not wholly inappropriate, Federal Aid administrative expenditures under the broad

authority to ‘‘administer and execute’’ the Program. Nevertheless,

the Majority has chosen to assume that virtually all spending to

administer the program is suspect. They assume that a new budget

for administrative expenses should be zero-based regardless of the

existing fixed costs of the current program or the real consequences

of drastically reducing the operating budget for administration.

The legislation imposes a rigid budget framework to clearly delineate authorized administrative expenses, purportedly to prevent

future indiscretions in the spending, accounting and reporting of

Federal Aid administrative funds. On balance, we believe the

twelve specific budget categories for administrative expenses to be

reasonable and inclusive. Additionally, we concur with the Majority

that the Federal Aid program could learn to make do with less

without sacrificing efficiency or service to the States. In this reVerDate 20-MAR-2000 06:35 Mar 31, 2000 Jkt 079006 PO 00000 Frm 00063 Fmt 6604 Sfmt 6604 E:\HR\OC\HR554.034 pfrm03 PsN: HR554
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spect, we agree that $30 million to administer the program is an

excessive amount, especially when past expenses for administrative

grants, operational grants, and other centralized program activities

(e.g., the Management Assistance Team (MAT), the National Survey of Fishing, Hunting, and Wildlife Associated Recreation, etc.)

are removed from the budget.

However, the caps and restrictions contained in the language are

unrealistic and have the very real potential to severely damage the

Service’s ability to manage the program. For example, the bill contains a fixed funding cap of $10 ($5 million each from Pittman-Robertson and Dingell-Johnson) that would limit administrative funding to $10 million per year, also allowing for minimal Consumer

Price Index (CPI) increases. The Majority has resisted increasing

the cap, or alternatively, decreasing the existing 8 percent and 6

percent allowances to smaller percentages despite documentation

provided by the Service demonstrating that the caps, if applied,

would force the termination of approximately 60 FTEs, or roughly

one-half of all Federal Aid employees. These caps would also reduce

funding for important accountability functions such as State audits,

budget monitoring and training. We are not alone in expressing

this concern. In correspondence received by the Committee on Resources from the Wildlife Management Institute, the International

Association of Fish and Wildlife Agencies, and the National Wildlife Federation, each organization has expressed their preference

for a percent allowance instead of a fixed cap.

It is our understanding that a uniform 4 percent allowance would provide roughly $19 to $20 million per year for administration; approximately the amount the Service has estimated it would spend

on administration based upon the Majority’s own budget framework. We contend that a 4 percent allowance is a fair approach to

provide the Service with sufficient administrative funds without

imposing draconian cuts that will only undermine effective financial management and oversight of the States.

The problem created by the caps is exacerbated by other spending controls, certifications, and reporting requirements in the legislation. In fact, were the caps to be imposed, the need for these

other controls would be obviated. For instance, this legislation

would require all funds not expended by the Service for administration to be reapportioned to the States. In addition, the Service

would be prohibited from spending funds on activities not expressly

prohibited by the bill, and the Service would be prohibited also

from transferring any Federal Aid funds to other programs or activities that receive appropriations within the Department of the

Interior. Separately, any one of these controls would be reasonable.

But cumulatively, we find them contrary to the expressed goal of

effective reform.

Furthermore, the bill would require redundant certifications by

the Secretary of the Interior, the Assistant Secretary for Fish and

Wildlife and Parks, the Director of the Fish and Wildlife Service,

and a newly created Assistant Director for Wildlife and Sport Fish

Restoration Programs, affirming that they have properly discharged their duties. The bill would also require separate annual

certifications and reports specifying first, how all Federal Aid funds

have been spent in the preceding fiscal year, and second, how FedVerDate 20-MAR-2000 06:35 Mar 31, 2000 Jkt 079006 PO 00000 Frm 00064 Fmt 6604 Sfmt 6602 E:\HR\OC\HR554.034 pfrm03 PsN: HR554
65

eral Aid funds will be apportioned and spent by the States and the

Service in the upcoming year. These requirements should be

streamlined into one annual certification or report to be filed by the

Secretary of the Interior.

The cumulative effect of these spending controls is to reduce, if

not eliminate, any discretion or administrative flexibility to allow

the Service to address unexpected or unbudgeted expenses. As an

example, just last year the Federal Government had to spend additional funds to prepare for possible exigencies related to the Year

2000 computer problem. More relevant, current legislation reported

by the Committee on Resources (H.R. 701, The Conservation and

Reinvestment Act) would, if enacted, require the Fish and Wildlife

Service to administer an additional $300 million directed to Pittman-Robertson. The Majority assumes that they have perfectly predicted the future and that unforeseen events simply will not happen. This scenario would leave the Service with no administrative

recourse to address unforeseen expenses other than for the Service

to rely on the Congress to pass a new law. We view this as an unreasonable departure from the normal discretion delegated to the

Congress to the Executive Branch to administer a program. The

addition of an administrative mechanism, even a provision as simple as a congressional certification and notification process for unauthorized expenses, would be a reasonable adjustment.

The Majority has been made aware of the findings developed by

outside auditors that identify substantial waste, fraud and abuse

in how the States spend their Federal Aid apportionments. Yet this

legislation focuses exclusively on the financial management of the

$30 million Federal Aid dollars used by the Federal government

and ignores whether the States are held similarly accountable for

how they spend roughly $450 million apportioned annually to them

under both Pittman-Robertson and Dingell-Johnson. These findings

include gross abuses such as States spending Federal Aid funds to

build prisons or motor pool parking lots. In the absence of an investigation, this legislation should be amended to at least require the

States to annually certify that they have spent their apportioned

funds in accordance with the law.

GEORGE MILLER.

Æ