74–032

107TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 107–152

TREASURY, POSTAL SERVICE, AND GENERAL

GOVERNMENT APPROPRIATIONS BILL, 2002

JULY 23, 2001.—Committed to the Committee of the Whole House on the State of

the Union and ordered to be printed

Mr. ISTOOK, from the Committee on Appropriations,

submitted the following

REPORT

together with

MINORITY VIEWS

[To accompany H.R. 2590]

The Committee on Appropriations submits the following report in

explanation of the accompanying bill making appropriations for the

Treasury Department, the Postal Service, the Executive Office of

the President, and certain Independent Agencies for the fiscal year

ending September 30, 2002, and for other purposes.

INDEX TO BILL AND REPORT

Page number

Bill Report

Summary of the Bill ................................................................................... ........ 2

Title I—Department of the Treasury:

Bureau of Alcohol, Tobacco and Firearms ........................................ 9 18

Bureau of Engraving and Printing .................................................... ........ 28

Bureau of the Public Debt .................................................................. 17 30

Departmental Offices .......................................................................... 2 5

Department-Wide Systems and Capital Investments Programs .... 3 9

Federal Law Enforcement Training Center ...................................... 6 15

Financial Crimes Enforcement Network ........................................... 5 12

Financial Management Service .......................................................... 9 17

General Provisions—Treasury Department ...................................... 23 38

Interagency Crime and Drug Enforcement ....................................... 9 17

Internal Revenue Service ................................................................... 17 32

Office of Inspector General ................................................................. 3 9

Treasury Building and Annex Repair and Restoration ................... 4 11

Treasury Inspector General for Tax Administration ....................... 4 10

2

Page number

Bill Report

United States Customs Service .......................................................... 12 20

United States Mint ............................................................................. 16 29

United States Secret Service .............................................................. 21 37

Violent Crime Reduction Programs ................................................... ........ 19

Title II—Postal Service:

Payment to the Postal Service Fund ................................................. 26 39

Title III—Executive Office of the President and Funds Appropriated

to the President:

Compensation of the President and White House Office ................. 27 44

Council of Economic Advisers ............................................................ 32 47

Executive Residence at the White House .......................................... 28 45

Federal Drug Control Programs ........................................................ 38 57

National Security Council .................................................................. 33 48

Office of Administration ..................................................................... 33 49

Office of Management and Budget .................................................... 34 50

Office of National Drug Control Policy .............................................. 36 55

Office of Policy Development .............................................................. 33 48

Special Assistance to the President and Official Residence of the

Vice President .................................................................................. 31 46

Unanticipated Needs .......................................................................... 39 61

Title IV—Independent Agencies:

Committee for Purchase from People who are Blind or Severely

Disabled ............................................................................................ 40 61

Federal Election Commission ............................................................. 40 62

Federal Labor Relations Authority .................................................... 40 64

General Services Administration ....................................................... 41 64

Merit Systems Protection Board ........................................................ 55 76

Morris K. Udall Scholarship and Foundation ................................... 56 77

National Archives and Records Administration ............................... 57 79

Office of Government Ethics .............................................................. 58 81

Office of Personnel Management ....................................................... 58 82

Office of Special Counsel .................................................................... 62 85

United States Tax Court .................................................................... 62 86

Title V—General Provisions:

This Act ................................................................................................ 63 86

Title VI—Governmentwide General Provisions:

Departments, Agencies, and Corporations ........................................ 68 87

Compliance with House Rules ........................................................... ........ 90

Tables ................................................................................................... ........ 118

Summary of the Total Bill .................................................................. ........ 95

The accompanying bill contains recommendations for new budget

(obligational) authority for fiscal year 2002 for the Department of

the Treasury, the Postal Service, various offices in the Executive

Office of the President, and certain Independent Agencies. The following table summarizes these Recommendations and reflects comparisons with the budget, as amended, and with amounts appropriated to date for fiscal year 2001:

[In thousands of dollars]

Agency

New budget (obligation) authority fiscal year

2001 enacted to

date

Budget estimates

of new

(obligational) authority, fiscal

year 2002

Recommended in

the bill

Bill compared with

New budget authority fiscal year

2001

Budget estimate,

fiscal year 2002

Treasury ............................................. $13,880,468 $14,631,710 $15,061,997 +$1,181,529 $430,287

Postal Service .................................... 95,888 143,712 143,712 +47,824 ........................

Executive Office of the President ..... 700,273 731,725 749,585 +49,312 +17,860

Independent agencies ....................... 15,740,361 16,528,204 16,519,775 +779,414 ¥8,429

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[In thousands of dollars]

Agency

New budget (obligation) authority fiscal year

2001 enacted to

date

Budget estimates

of new

(obligational) authority, fiscal

year 2002

Recommended in

the bill

Bill compared with

New budget authority fiscal year

2001

Budget estimate,

fiscal year 2002

Grand total .......................... 30,619,925 32,371,351 32,711,450 +2,091,526 +340,099

RECOMMENDATION

The Committee recommends a total of $17,021,000,000 in discretionary resources for agencies under its jurisdiction; this includes

$146,000,000 for the Earned Income Tax Credit Compliance Initiative. After scorekeeping adjustments, the Committee’s recommendation is $1,080,682,000 or 6.8 percent above amounts appropriated in fiscal year 2001 and $340,099,000 or 2.0 percent

above the amounts requested by the President.

GENERAL STATEMENT

The allocation received by the Subcommittee on Treasury, Postal

Service and General Government for fiscal year 2002 fully supports

the critical missions and responsibilities for programs under its jurisdiction and maintains a strong commitment to ongoing information technology, federal law enforcement, and capital construction

requirements. The funding level is consistent with the recommendations included in the fiscal year 2002 Congressional

Budget Resolution, as agreed to by the House, Senate and President. Although the allocation is above the President’s original

budget by $340 million, the agreement on the budget resolution superseded those figures. The Committee believes the President’s

original budget under-funded certain critical law enforcement and

information technology initiatives, as reflected by the President’s

own supplemental request for additional funds to provide security

at the upcoming Olympics.

The Committee has adjusted amounts to balance Congressional

priorities with the President’s, but has remained within the overall

agreed-to funding level, and within its 302(b) allocation. The Committee is disappointed that the President’s budget did not support

the total funding requirements of the Customs Service’s Automated

Commercial Environment (ACE) program. The Committee is aware

that original cost estimates for ACE called for an investment of

$1.4–$1.8 billion over 4 years. Under the President’s budget, this

schedule would have slipped by an estimated 2 years, with an additional cost to taxpayers of $200 million. In order to keep this program on track and within budget, the Committee recommends an

appropriation of $300 million, an increase of $170 million from

amounts requested by the President.

The Committee is also concerned that the President’s initial request did not include the $60.6 million necessary to support Treasury law enforcement’s role in the upcoming 2002 Winter Olympics;

the Committee is nonetheless pleased that the President submitted

a request for these funds within the fiscal year 2001 supplemental

appropriations bill. Because these funds would not be spent until

fiscal year 2001 had closed, the Committee has included funding

for these efforts in fiscal year 2002, which is when they are needed.

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The Committee is pleased by efforts within the Administration to

streamline common functions, achieve economies of scale and implement best business practices. The Committee looks forward to

working with the Administration to achieve these goals but is concerned that the Administration so far has adopted a non-specific

longer-term approach and could not identify specific initiatives nor

quantify exact savings for fiscal year 2002. In total, the Administration proposed that agencies under the Subcommittee’s jurisdic- tion absorb $150 million in uncontrollable costs associated with

non-pay inflation, most of which was presumed to be made up

through administrative initiatives to streamline common functions.

In the absence of specific initiatives to produce these savings, the

Committee believes it is premature to assume savings of $150 million. The Committee is also concerned that this non-specific absorption of $150 million would reduce the number of critical law enforcement personnel at a time when they are sorely needed. For example, the volume of trade and passenger traffic outpaces Customs’ workforce levels; and Secret Service agents are averaging 80 hours

of overtime per month. Therefore, the Committee provides full

funding for most agencies to maintain their current levels of effort.

The Committee directs agencies to keep it informed of ongoing reviews for program efficiencies and all efforts associated with implementing best business practices; the Committee expects that specific proposed savings will be fully developed and submitted as part

of the President’s fiscal year 2003 budget request.

The Committee supports the President’s request to maintain a

viable courthouse construction program and other critical federal

infrastructure requirements. Nonetheless, the Committee is concerned by the dramatic increases in courthouse construction costs

and is disappointed by the absence of aggressive measures within

the General Services Administration (GSA) to control these costs.

The Committee expects GSA to be prepared to both quantify and

justify the methodologies used to develop the courthouse construction program. The Committee believes that these costs can be controlled and will look for positive results in the President’s fiscal

year 2003 budget request.

The Committee continues to have serious concerns about Office

of Management and Budget’s (OMB) lack of leadership in the management of federal agencies. The Committee commends the President’s efforts to improve government performance and believes that

OMB, which implements both the President’s budget and his management agenda, will play a critical role in determining whether

these efforts succeed. The Committee will continue to review

OMB’s performance as it relates to oversight and management of

federal agencies.

REPROGRAMMING AND TRANSFER OF FUNDS GUIDELINES

The following reprogramming guidelines shall be complied with

by all agencies funded by the Treasury and General Government

Appropriations Act, 2002:

1. Except under extraordinary and emergency situations, the

Committees on Appropriations will not consider requests for a

reprogramming or a transfer of funds, or use of unobligated

balances, which are submitted after the close of the third quarter of the fiscal year, June 30;

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2. Clearly stated and detailed documentation presenting justification for the reprogramming, transfer, or use of unobligated balances shall accompany each request;

3. For agencies, departments, or offices receiving appropria- tions in excess of $20,000,000, a reprogramming shall be submitted if the amount to be shifted to or from any object class,

budget activity, program line item, or program activity involved is in excess of $500,000 or 10 percent, whichever is

greater, of the object class, budget activity, program line item,

or program activity;

4. For agencies, departments, or offices receiving appropria- tions less than $20,000,000, a reprogramming shall be submitted if the amount to be shifted to or from any object class,

budget activity, program line item, or program activity involved is in excess of $50,000, or 10 percent, whichever is

greater, of the object class, budget activity, program line item,

or program activity;

5. For any action where the cumulative effect of below

threshold reprogramming actions, or past reprogramming and/

or transfer actions added to the request, would exceed the dollar threshold mentioned above, a reprogramming shall be submitted;

6. For any action which would result in a major change to

the program or item which is different than that presented to

and approved by either of the Committees, or the Congress, a

reprogramming shall be submitted;

7. For any action where funds earmarked by either of the

Committees for a specific activity are proposed to be used for

a different activity, a reprogramming shall be submitted; and

8. For any action where funds earmarked by either of the

Committees for a specific activity are in excess of the project

or activity requirement, and are proposed to be used for a different activity, a reprogramming shall be submitted.

Additionally, each request shall include a declaration that, as of

the date of the request, none of the funds included in the request

have been obligated, and none will be obligated, until the Committees on Appropriations have approved the request.

UNAUTHORIZED APPROPRIATIONS REQUESTS

The Committee directs that budget justification materials submitted in support of future appropriations requests contain tabular

listings of any item that is not authorized by law, in the format

contained elsewhere in this report under the heading ‘‘Appropriations Not Authorized by Law’’.

TITLE I—DEPARTMENT OF THE TREASURY

DEPARTMENTAL OFFICES

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $162,381,000

Budget estimate, fiscal year 2002 ..................................................... 181,768,000

Recommended in the bill ................................................................... 173,496,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +11,115,000

Budget Estimate, fiscal year 2002 ............................................. ¥8,272,000

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MISSION

The Departmental Offices’ function in the Treasury Department

is to provide basic support to the Secretary of the Treasury, who

is the chief operating executive of the Department. The Secretary

of the Treasury also has a primary role in formulating and managing the domestic and international tax and financial policies of

the Federal Government. The Secretary’s responsibilities funded by

the salaries and expenses appropriation include: recommending

and implementing United States domestic and international economic and tax policy; fiscal policy; governing the fiscal operations

of the Government; maintaining foreign assets control; managing

the public debt; overseeing the law enforcement functions carried

out by the Treasury Department; managing development of financial policy; representing the United States on international monetary, trade and investment issues; overseeing Treasury Department

overseas operations; directing the administrative operations of the

Treasury Department; and providing executive oversight of the bureaus within the Treasury Department.

RECOMMENDATION

The Committee recommends an appropriation of $173,496,000 for

Departmental Offices, an increase of $11,115,000 above the fiscal

year 2001 enacted level and a decrease of $8,272,000 below the request level. Increases above the enacted level include $6,059,000 to

maintain current levels, $2,612,000 to annualize the fiscal year

2001 initiative for establishing a new interagency National Terrorist Asset Tracking Center, $40,000 for law enforcement support

of the 2002 Winter Olympics, and $3,356,000 to fund the highest

priority additional requirements of the Departmental Offices. These

increases are partially offset by a reduction of $952,000 associated

with one-time costs of certain local law enforcement support.

The Administration proposed a total increase of $13,022,000 for six items: a secure data network ($3,000,000), an occupational safety and health information system ($400,000), a record management

system ($200,000), a labor shortfall ($5,659,000), a digital telecommunications system ($2,000,000), and information technology

contract support ($1,763,000). The Committee expects the

$3,356,000 provided in support of these efforts to be used to meet

the highest priority requirements of the Departmental Offices and

directs that the Department supply a report 120 days after the enactment of this Act that outlines the uses of these funds. The Committee notes that $1,746,000 has been provided as requested in the

Department-wide Systems and Capital Investments Programs account for a computer backup/disaster recovery project for Departmental Offices. The Committee looks forward to working with the

Department to ensure that all of its highest priority needs are met,

including those of its offices and bureaus, and strongly supports the

current management review and analysis that is underway.

OFFICE OF ENFORCEMENT

The Office of Enforcement (OE) occupies a key position with the

Treasury Department, led by an Under Secretary with responsibility for issues covering the whole range of law enforcement bureaus and offices. The Committee has reviewed the General AcVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
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counting Office report on OE operations, which brought to light the

problems faced by the OE, the bureaus, and Treasury law enforcement community in general when it comes to (1) coordinating policy and resource planning, (2) advocating for the Department and

on behalf of its operational components for law enforcement priorities within and beyond Treasury, and (3) maintaining continuity

in management for Treasury law enforcement. The Committee

strongly supports the plan to develop an Enforcement policies and

procedures manual that will make clear the ground rules for interaction within the Department between OE and various Departmental components and their liaisons, to the overall benefit of

Treasury law enforcement. Other issues raised in the report, such

as organizational or bureaucratic hindrances to good planning and

coordination, may be addressed through management improvements or resources. The Committee requests the Department and

OE keep the Committee informed of efforts to strengthen policy

and program coordination and to improve the status and voice of

Treasury law enforcement within the Federal law enforcement

arena.

INVENTORY OF INTERNATIONAL AGREEMENT PROVISIONS

The Committee directs the Department of the Treasury to

produce a report containing an inventory of all provisions of current agreements between the International Monetary Fund and

debtor countries and between the World Bank and debtor countries

that place specific restrictions on the debtor countries. The inventory is to include all agreements that contain provisions requiring

debtor countries to (1) establish, revise or privatize state-owned enterprises, utilities (including water and sewer systems) or public

services, (2) convert any private enterprises to state ownership, (3)

lower or raise barriers to imports (food products in particular), (4)

establish, revise or privatize public pension, retirement or benefit

systems (including social security), (5) change bank interest rates,

(6) establish, revise or eliminate regulations on the environment

and natural resources, or (7) adopt or revise labor, wage or benefit

laws (including legal minimum wages and the right to strike). The

report shall be completed and delivered to the House Committee on

Appropriations by November 15, 2001. The Committee notes with

frustration and extreme disappointment that the Department has

not complied with an earlier request for this material.

STATE AND LOCAL REVENUE LOSS

Congress periodically must consider issues arising from or related to consumer transactions that are (or that are claimed to be)

exempt from state or local taxes, including requests to compensate

for tax losses with federal spending. Among these are transactions

involving remote sellers (via the Internet, mail order, long-distance

telephone, etc.) and transactions involving Indian tribes. The

Treasury Department’s Office on Tax Policy and the IRS’s Tax Exempt and Government Entities Division are directed to submit to

the Committee on Appropriations, the House Resources Committee

and the House Judiciary Committee, a report, no later than 120

days after enactment of this Act, detailing the dollar volume of

transactions that are exempt from state taxes (or that are claimed

to be exempt) and their impact on state and local tax revenue, with

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state-by-state breakdowns where possible. It is not the intent of the

Committee that this report include impacts of compacts regarding

gambling, property tax, interests in natural resources or use of natural resources, but instead be limited to impact arising from consumer transactions.

To the extent that any impact is affected by compacts between

the tribes and state and/or local governments (or lack thereof) the

report should detail these compacts (or lack thereof) and the parties to them, including the relevant conditions, the starting and expiration dates, and the impact of each compact (or lack thereof) on

state and local tax revenues. The report should differentiate the

impact by type of tax.

E-LEARNING SOLUTIONS

The Committee understands that the Department is exploring

the potential benefits that can be gained from the customized development and selective deployment of Internet-based training. The

Committee believes that in many circumstances such e-learning solutions can lead to substantial savings and enhanced improvements

in skills. The Committee encourages the Department to continue

its evaluation and assessment of the best ways in which Internetbased training can fulfill many of the training needs of the Department.

‘‘DOLLARIZATION’’ IN CENTRAL AND SOUTH AMERICA

The Committee is concerned that the growth in ‘‘dollarization’’

throughout the world, especially in Central and South America,

could also cause a negative consequence—namely an increase in

the overseas based production and distribution of counterfeit U.S.

currency, causing more circulation of counterfeit both globally and

domestically. Nations are increasingly adopting U.S. currency as

the official means of exchange or tying the rate of exchange for

their internal currencies to the U.S. dollar making U.S. currency

more prevalent.

A nation’s decision to end the legal tender status of its national

currency and to adopt the U.S. dollar provides potential benefits to

both the nation that converts and to the United States.

Dollarization in foreign countries can reduce transaction costs for

U.S. importers, exporters, borrowers and lenders. Nearly a century

ago, Panama became the first nation outside of the U.S. to officially

choose the dollar as its form of currency. Now, Ecuador is among

several nations worldwide that have switched to the dollar. Nations

are dollarizing as a way to boost trade, increase foreign investment

and control inflation.

Despite its advantages, the Committee is concerned that

dollarization will heighten the status of U.S. currency as a prime

target for counterfeiters. Dollarization in countries that lack law

enforcement expertise or meaningful criminal penalties will provide

counterfeiters a fertile environment to use that economy as a place

to launder counterfeit U.S. dollars. It is estimated that nearly twothirds of the approximately $570 billion of genuine U.S. currency

circulates beyond our nation’s border and nearly one-third of today’s counterfeit passed in this country originates in Colombia. Ecuadorian authorities are seeing significant increases in counterfeit

9

since it dollarized in 2000. From 1999 to the end of 2000, counterfeit seizures in Ecuador rose from $239,000 to $1.4 million.

To prevent the proliferation of counterfeiting as a result of increased dollarization, the Committee directs the Secretary of the

Treasury to develop jointly a strategy with the Secretary of State

to mitigate counterfeiting of U.S. dollars in dollarized regions and

report its findings to the Committees on Appropriations no later

than September 30, 2002.

REAL ESTATE BROKERAGE

The Committee is aware that concerns have been expressed

about the impact of the Federal Reserve/Department of Treasury

proposed regulation to redefine real estate brokerage and management activities. The Committee expects Treasury to work with the

Department of Housing and Urban Development when developing

the final rule.

DEPARTMENT-WIDE SYSTEMS AND CAPITAL INVESTMENTS PROGRAMS

Appropriation, fiscal year 2001 to date ............................................ $62,150,000

Budget estimate, fiscal year 2002 ..................................................... 70,828,000

Recommended in the bill ................................................................... 68,828,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +6,678,000

Budget Estimate, fiscal year 2002 ............................................. ¥2,000,000

MISSION

This appropriation funds the modernization of Treasury business

processes and increases in Department-wide systems efficiency

through technology investments for systems that involve more than

one Treasury bureau or Treasury’s interface with other governmental agencies.

RECOMMENDATION

The Committee recommends an appropriation of $68,828,000 for

the Department-wide Systems and Capital Investments Programs,

an increase of $6,678,000 above the fiscal year 2001 enacted level

and a decrease of $2,000,000 below the President’s request. The

changes to the President’s request consist of a decrease of $3,000,000 for the critical infrastructure protection project and an

increase of $1,000,000 for technical investigations equipment as

part of the Treasury (Wireless) Integrated Network.

OFFICE OF INSPECTOR GENERAL

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $32,827,000

Budget estimate, fiscal year 2002 ..................................................... 35,150,000

Recommended in the bill ................................................................... 35,318,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +2,491,000

Budget Estimate, fiscal year 2002 ............................................. +168,000

MISSION

This appropriation provides agency-wide audit and investigative

functions to identify and correct operational and administrative deficiencies, which create conditions for existing or potential inVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00009 Fmt 6659 Sfmt 6602 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
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stances of fraud, waste, and mismanagement. The audit function

provides program, contract, and financial statement audit services.

Contract audits provide professional advice to agency contracting

officials on accounting and financial matters relative to negotiation,

award, administration, repricing, and settlement of contracts. Program audits review and evaluate all facets of agency operations. Financial statement audits assess whether financial statements fairly

present the agency’s financial condition and results of operations,

the adequacy of accounting controls, and compliance with laws and

regulations. The investigative function provides for the detection

and investigation of improper and illegal activities involving programs, personnel, and operations. The Office of Inspector General

also provides for internal investigations made by the Office of Internal Affairs and Inspection in the Bureau of Alcohol, Tobacco and

Firearms, the Customs Service, and the Secret Service.

RECOMMENDATION

The Committee recommends an appropriation of $35,318,000 for

the Office of Inspector General, an increase of $2,491,000 above the

fiscal year 2001 enacted level and an increase of $168,000 above

the President’s request. The increase above the President’s request

is for non-pay inflation.

INSPECTOR GENERAL FOR TAX ADMINISTRATION

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $118,166,000

Budget estimate, fiscal year 2002 ..................................................... 122,342,000

Recommended in the bill ................................................................... 123,133,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +4,967,000

Budget Estimate, fiscal year 2002 ............................................. +791,000

MISSION

The Internal Revenue Service (IRS) Restructuring and Reform

Act of 1998 established the Office of Treasury Inspector General for

Tax Administration and abolished the IRS Office of the Chief Inspector. The Office was established in January of 1999 as required

by that legislation. The Treasury Inspector General for Tax Administration conducts audits, investigations, and evaluations to assess

the operations and programs of the IRS and its related entities, the

IRS Oversight Board and the Office of Chief Counsel. The purpose

of those audits and investigations is to: (1) promote the economic,

efficient, and effective administration of the nation’s tax laws and

to detect and deter fraud and abuse in IRS programs and operations; and (2) recommend actions to resolve fraud and other serious problems, abuses, and deficiencies in these programs and operations.

RECOMMENDATION

The Committee recommends an appropriation of $123,133,000 for

the Inspector General for Tax Administration, an increase of

$4,967,000 above the fiscal year 2001 enacted level and an increase

of $791,000 above the President’s request. The increase above the

President’s request includes $457,000 for non-pay inflation and

11

$334,000 for participation in law enforcement support of the 2002

Winter Olympics.

INSPECTORS GENERAL CRIMINAL INVESTIGATOR ACADEMY

The mission of the Inspectors General (IG) is unique, in that it

focuses on the practices of government agencies and representatives. This mission is vitally important, as it ensures that the public is served in the best possible manner by providing an independent review of agency policies and operations. This mission requires training which is specific to the Inspectors General. The

Committee supports the concept of an Inspectors General Criminal

Investigator Academy, as authorized by Public Law 106–422, and

is also aware that a training academy exists at the Federal Law

Enforcement Training Center (FLETC), in Glynco, Georgia. This

academy consolidates training of the 57 independent Offices of Inspectors General, composed of approximately 3,000 investigators,

and provides programs tailored to the Inspectors General mission.

The Treasury IG for Tax Administration (TIGTA) is the accountable IG for the academy. Training regarding the investigation of

contract and procurement fraud, health care fraud, entitlement and

program fraud, and other topics specific to the Inspectors General

Criminal Investigator is provided. Funding for this academy is currently supported by contributions from the budgets of the individual Inspector General offices.

In order to properly evaluate the current and future funding levels appropriate for the current IG academy, as well as that authorized by Public Law 106–422, the Committee directs that TIGTA, in

consultation and coordination with FLETC, present a report detailing the operations of the current academy at FLETC. This report

should include a description of the current financial contribution

made by each Office of Inspector General, as well as an evaluation

of appropriate levels of training hours, a determination as to

whether FLETC is the appropriate venue for all, or part, of the

training requirement, and a detailed explanation of these determinations. The report should also include a comprehensive analysis

regarding the establishment of a forensic laboratory, as authorized

by P.L. 106–422. This should include a cost-benefit analysis of establishing a separate laboratory as well as the numbers and types

of cases that require specialized services.

The Committee strongly supports the partnership formed with

the Federal Law Enforcement Training Center to create specialized

training for Inspectors General criminal investigators, and believes

that this partnership ensures that the training provided adheres to

the highest professional standards in a consistent manner.

TREASURY BUILDING AND ANNEX REPAIR AND RESTORATION

Appropriation, fiscal year 2001 to date ............................................ $30,932,000

Budget estimate, fiscal year 2002 ..................................................... 32,932,000

Recommended in the bill ................................................................... 30,932,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. ............................

Budget Estimate, fiscal year 2002 ............................................. ¥2,000,000

12

MISSION

This appropriation funds the repairs, selected improvements, and

construction necessary to renovate and maintain the Main Treasury, the Treasury Annex, and other Treasury buildings.

RECOMMENDATION

The Committee recommends an appropriation of $30,932,000 for

Treasury Building and Annex Repair and Restoration, the same as

the fiscal year 2001 enacted level and $2,000,000 below the President’s request.

FINANCIAL CRIMES ENFORCEMENT NETWORK

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $37,493,333

Budget estimate, fiscal year 2002 ..................................................... 45,155,000

Recommended in the bill ................................................................... 45,760,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +8,266,667

Budget Estimate, fiscal year 2002 ............................................. +605,000

MISSION

The Financial Crimes Enforcement Network (FinCEN) is responsible for implementing Treasury’s anti-money laundering regulations through administration of the Bank Secrecy Act, 31 U.S.C.

section 5311, et seq (BSA). It also serves as a United States Government source for the systematic collection and analysis of information to assist in the investigation of money laundering and other

financial crimes. FinCEN assists all law enforcement entities, including Federal, State, local and international, through information

collection, sophisticated data analysis, and intelligence sharing

through dissemination of its analytical products, technological assistance, and implementation of Treasury authorities. It prevents

money laundering through its regulatory and outreach programs,

including setting policy for and overseeing BSA compliance by financial institutions, and by providing BSA training for law enforcement, bankers, and bank regulators. FinCEN supports U.S. Government initiatives on money laundering and financial crime

through multilateral organizations, such as the Financial Action

Task Force (FATF) of the Group of Eight, and the UN. It is a catalyst for the development of Financial Intelligence Units (FIUs) in

other countries, and the transfer of information on money laundering and financial services worldwide.

As part of its regulatory mission, FinCEN is beginning to provide

regulatory and enforcement support to ensure compliance by money

service businesses (MSBs) with the requirements of the BSA.

RECOMMENDATION

The Committee recommends an appropriation of $45,760,000 for

the Financial Crimes Enforcement Network, an increase of

$8,266,667 above the fiscal year 2001 enacted level and $605,000

above the President’s request. The increase above the President’s

request is for non-pay inflation and for security planning and operations related to the 2002 Winter Olympics.

13

MONEY SERVICE BUSINESS INITIATIVE

Efforts to combat money laundering have long focused on traditional financial institutions, which submit currency transaction reports for transactions exceeding $10,000, and are also required to

submit Suspicious Activity Reports (SARs). In recent years, nonbank financial institutions have been recognized as posing a high

money laundering risk, due to their large numbers and the opportunity they offer criminals to structure financial transactions. A

major development in the effort to curtail money laundering, therefore, is the implementation of regulations pursuant to the Bank Secrecy Act and the Money Laundering Suppression Act of 1994 to

register and educate money service businesses (MSBs) about their

responsibilities to report on and prevent money laundering. MSBs

are defined to include five types of financial services providers: currency dealers or exchangers; check cashers; issuers or sellers of

traveler’s checks, money orders, or stored value; money transmitters; and the U.S. Postal Service (except with respect to sale of

postage or philatelic products). As of January 1, 2002, MSBs, subject to certain dollar thresholds, must also submit SARs. The Committee has provided, as requested by the President, an additional

$5,520,000 to fully fund the costs of completing registration, outreach, and related administration costs to permit the implementation of this rule.

Because of its interest in seeing how this regulation is carried

out, the Committee directs FinCEN to report by May 1, 2002, on

the status of its MSB program, to include costs, statistics on SAR

reporting, and a description of the outreach and communication

system in place for dealing with this newly regulated financial sector.

COST-BENEFIT ANALYSIS OF SAR REGULATIONS

The Committee is aware of interest within Treasury in reevaluating the costs and benefits of Suspicious Activity Reports, including the private sector compliance cost to detect the relatively small

number of transactions that are suspicious, and to deter improper

transactions. The Committee is aware of the SAR Activity Review

published by FinCEN, and is familiar with the statistics on the

numbers of SARs filed, the numbers of SARs that are referred for

action directly to law enforcement or regulatory institutions, and

reporting on major trends in money laundering, and knows that

there is ample information about program outputs.

To more fully understand the costs and benefits associated with

SARs, the Committee directs the Secretary of the Treasury to submit by February 1, 2002, a cost-benefit analysis. This report should

include reference to the overall number of financial transactions

potentially subject to SAR reports, to establish the proportion that

result in SARs; the total dollar value of such transactions and the

dollar value of transactions that are the subject of SARs; the private sector costs associated with SAR reporting, per transaction

and per SAR; and the costs to the Treasury Department and the

Federal government on a per transaction and per SAR basis. As appropriate, the report should include an analysis of inflation’s impact on costs and benefits, including to law enforcement.

14

HIGH INTENSITY FINANCIAL CRIME AREAS

Under the National Money Laundering Strategy, High Intensity

Financial Crime Areas (HIFCAs) were established in four areas

(New York-New Jersey, Puerto Rico, Los Angeles, and the Southwest Border). These overlay and reinforce existing government

working groups, and geographically represent high concentrations

of money laundering activity. The Committee supports close coordination in this multi-agency effort, and directs the Secretary of

Treasury to include a report on the progress of the HIFCA initiative with its submission of the fiscal year 2003 budget. This report

should describe the budgets for the HIFCAs, statistical information

about the level of money laundering in the regions covered by the

HIFCAs, and performance data.

MAGNITUDE OF MONEY LAUNDERING STUDY

The Committee is aware that the ongoing study of the magnitude

of money laundering being undertaken by FinCEN faces some complex obstacles in terms of quantifying the proceeds of criminal activity. Some of these include not only difficulties in data quality

and methodology, but unequal willingness by government agencies

to share information. The lack of a uniform database on money

laundering, and absence of international cooperation also present

difficulties. Because the Committee firmly supports establishing a

baseline for money laundering strategy and anti-money laundering

performance, it directs the Secretary of the Treasury to report

within 90 days of enactment of this Act on the progress of the

study, to include recommendations for funding or legislation if necessary.

COUNTERTERRORISM FUND

Appropriation, fiscal year 2001 to date ............................................ $54,879,000

Budget estimate, fiscal year 2002 ..................................................... 44,879,000

Recommended in the bill ................................................................... 36,879,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. ¥18,000,000

Budget Estimate, fiscal year 2002 ............................................. ¥8,000,000

MISSION

This appropriation would provide funding for unanticipated costs

associated with support to counter, investigate, or prosecute domestic or international terrorism, including payment of rewards, and

to re-establish the operational capability of an office, facility, or

other property damaged or destroyed as a consequence of any unexpected domestic or international terrorist act. These funds would

only be available to the extent that prior notification is sent to the

Committees on Appropriations in accordance with guidelines on reprogramming and transfer of funds.

RECOMMENDATION

The Committee recommends an appropriation of $36,879,000 for

the Treasury Counterterrorism Fund, a decrease of $18,000,000

below the fiscal year 2001 enacted level and $8,000,000 below the

President’s request. The Committee has included language clarifying that the fund is to be used for unexpected threats or acts of

15

terrorism, and that funding shall be available after prior notification is made to the Committees on Appropriations in accordance

with reprogramming and transfer guidelines.

FEDERAL LAW ENFORCEMENT TRAINING CENTER

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $99,264,137

Budget estimate, fiscal year 2002 ..................................................... 100,707,000

Recommended in the bill ................................................................... 101,769,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +2,504,863

Budget Estimate, fiscal year 2002 ............................................. +1,062,000

MISSION

The Federal Law Enforcement Training Center (FLETC) provides the necessary facilities, equipment, and support services to

conduct advanced, specialized, and refresher training for Federal

law enforcement personnel. This appropriation is for operating expenses of the Center, for research in law enforcement training

methods, and curriculum content. In addition, the Center has a reimbursable program to accommodate the training requirements of

various Federal agencies. As funds are available, law enforcement

training is provided to certain State and local law enforcement, and

in some cases, foreign government and private sector security personnel, on a space-available and usually reimbursable basis.

RECOMMENDATION

The Committee recommends an appropriation of $101,769,000 for

the Federal Law Enforcement Training Center, an increase of

$2,504,863 above the fiscal year 2001 enacted level and $1,062,000

above the President’s request. The increase above the President’s

request is for non-pay inflation.

TRANSITION OF BORDER PATROL BASIC TRAINING

The current Master Plan for the Federal Law Enforcement

Training Center (FLETC) is predicated on providing basic training

for new entrants to the U.S. Border Patrol at the Glynco, Georgia

or Artesia, New Mexico, FLETC campuses. This will require adequate capacity to handle the increased numbers of new entrants,

particularly with the planned closure of the temporary U.S. Border

Patrol training facility at the former Charleston, South Carolina,

Navy Yard. This move will conform to longstanding Congressional

support for consolidated law enforcement training. The Committee

wants to be fully apprised of decisions as they are made, as well

as funding necessary to complete this transition successfully. The

Committee therefore directs FLETC to report by September 1,

2001, on the preparations for this transition, including a description of remaining decisions, actions, and funding required, as well

as associated timelines.

CAPITAL METROPOLITAN AREA LAW ENFORCEMENT TRAINING FACILITY

In fiscal year 2001, the Committee provided $30,000,000 for the

establishment of a new training facility to meet the substantial

need for Washington, D.C., area firearms and driver requalification

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and other necessary training that can be met more effectively and

practically in the Capital region, rather than require travel to other

facilities such as FLETC campuses at Glynco or Artesia, or simply

failing to provide critical perishable skills maintenance. This facility, which will be located at the site of the former Cheltenham

Naval Communications Detachment in Prince Georges County,

Maryland, will serve this purpose for both federal agencies located

in the Capital area, including the U.S. Capitol Police, as well as for

local law enforcement agencies on a space-available basis. The

Committee wishes to be kept fully informed of progress in developing the new training facility.

Although the initial concept was that the new center be open to

all interested Federal agencies in the Capital area, as well as meet

local law enforcement agency training needs, not every agency has

demonstrated such interest. At the same time, the Committee is

aware of efforts to establish other training facilities for specialized

purposes. Consistent with the longstanding goal of this Committee

to consolidate law enforcement training wherever practicable, the

Committee directs that any plans for new training facilities or significant new programs should address why they cannot be accommodated through the use of existing FLETC facilities, distance

learning or off-site training programs. The Committee also directs

that requests to fund such initiatives other than through FLETC

should be accompanied by an assessment from FLETC explaining

the necessity for such action.

RURAL LAW ENFORCEMENT TRAINING

FLETC has for several years run a counterdrug training program

for rural law enforcement agencies. The Committee strongly supports this effort, and encourages FLETC to continue its efforts to

make such training available as widely as possible, to include using

such tools as teleconferencing, online training, or ‘‘train the trainer’’ approaches to expanding the access to FLETC resources for

rural State and local law enforcement agencies.

ACQUISITION, CONSTRUCTION, IMPROVEMENTS AND RELATED

EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $54,086,000

Budget estimate, fiscal year 2002 ..................................................... 21,895,000

Recommended in the bill ................................................................... 22,834,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. ¥31,252,000

Budget Estimate, fiscal year 2002 ............................................. +939,000

MISSION

This account provides for the acquisition, construction, improvements, equipment, furnishings and related costs for expansion and

maintenance of facilities of the Federal law Enforcement Training

Center.

RECOMMENDATION

The Committee recommends an appropriation of $22,834,000 for

FLETC Acquisition, Construction, Improvements, and Related Expenses, a decrease of $31,252,000 below the fiscal year 2001 approVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00016 Fmt 6659 Sfmt 6602 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
17

priation and $939,000 above the President’s request. The increase

above the President’s request is for non-pay inflation.

INTERAGENCY LAW ENFORCEMENT

INTERAGENCY CRIME AND DRUG ENFORCEMENT

Appropriation, fiscal year 2001 to date ............................................ $103,248,000

Budget estimate, fiscal year 2002 ..................................................... 106,487,000

Recommended in the bill ................................................................... 106,965,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +3,717,000

Budget Estimate, fiscal year 2002 ............................................. +478,000

MISSION

This program consists of nine regional task forces that consolidate resources and expertise of 11 member federal agencies, in cooperation with state and local investigators and prosecutors, to target and destroy major narcotic trafficking and money laundering

organizations. The funding for Treasury Department participation

was included in the Department of Justice appropriation prior to

fiscal year 1998. Since then, Treasury has administered its portion

of the program through its Departmental Offices to reimburse the

three Treasury bureaus—the Customs Service, the Bureau of Alcohol and Tobacco, and the Internal Revenue Service—for the costs

of their employees detailed to the task forces, as well as for operating expenses during investigative phases of cases.

RECOMMENDATION

The Committee recommends an appropriation of $106,965,000 for

Interagency Crime and Drug Enforcement, an increase of

$3,717,000 above the fiscal year 2001 enacted level and $478,000

above the President’s request for the estimated costs of non-pay inflation.

FINANCIAL MANAGEMENT SERVICE

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $206,396,000

Budget estimate, fiscal year 2002 ..................................................... 211,594,000

Recommended in the bill ................................................................... 212,316,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +5,920,000

Budget Estimate, fiscal year 2002 ............................................. +722,000

MISSION

The Financial Management Service (FMS) is responsible for the

management of Federal finances and the collection of Federal debt.

As the Government’s central financial agent, FMS receives and disburses public monies, maintains Government accounts, and reports

on the status of the Government’s finances. FMS is also accountable for developing and implementing the most reliable and efficient financial methods and systems to manage and improve the

Government’s cash management, credit management, and debt collection programs.

Pursuant to the Debt Collection Improvement Act of 1996, FMS

became the primary agency for the collecting of Federal non-tax

debt which is due and owed to the government. Through FMS,

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there is a coordinated effort to collect debt from those who have defaulted on agreements with the Federal government.

RECOMMENDATION

The Committee recommends an appropriation of $212,316,000 for

the Financial Management Service, an increase of $5,920,000 above

the fiscal year 2001 enacted level and an increase of $722,000

above the President’s request. The increase above the President’s

request is for non-pay inflation.

BUREAU OF ALCOHOL, TOBACCO AND FIREARMS

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $771,142,745

Budget estimate, fiscal year 2002 ..................................................... 803,521,000

Recommended in the bill ................................................................... 824,199,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +53,056,255

Budget Estimate, fiscal year 2002 ............................................. +20,678,000

MISSION

The Bureau of Alcohol, Tobacco and Firearms (ATF) is responsible for the enforcement of laws designed to eliminate certain illicit activities and to regulate lawful activities relating to distilled

spirits, beer, wine and nonbeverage alcohol products, tobacco, firearms, explosives, and arson. Its responsibilities are focused on reducing the future number and cost of violent crimes; collecting revenue, reducing taxpayer burden and improving service while preventing diversion of regulated items and revenue from their sale;

and protecting the public and preventing consumer deception in

ATF’s regulated commodities.

RECOMMENDATION

The Committee recommends an appropriation of $824,199,000 for

the Bureau of Alcohol, Tobacco and Firearms, an increase of

$53,056,255 above the fiscal year 2001 enacted level and an increase of $20,678,000 above the President’s request. The increase

above the President’s request includes $9,655,000 for non-pay inflation, $10,523,000 for costs of security planning and operations associated with the 2002 Winter Olympics, and $500,000 to fund additional support for management improvements for the National

Firearms Act (NFA) and Imports Branches, and the National Licensing Center.

INSPECTOR SHORTFALL

ATF has testified that it faces a significant shortage of inspectors

required to meet its statutory mandates. Such a shortfall translates into reduced frequency in inspections by field inspectors in

such critical areas as explosives and firearms licensees, as well as

reducing ATF’s ability to carry out its mission to collect revenue

and protect the public. The Committee continues to be concerned

by this discrepancy, and strongly urges ATF to develop a plan to

improve its inspection effort and resources, and to incorporate this

plan in its budget request for fiscal year 2003.

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TARGETED ENFORCEMENT OF VIOLENT CRIME

The Committee strongly supports the goals of the Integrated Violence Reduction Strategy (IVRS) (initiated in FY 2000), the Youth

Crime Gun Interdiction Initiative (YCGII) (initiated in FY 1996),

and the National Integrated Ballistic Information Network (NIBIN)

(initiated in 1999). Accordingly, the Committee has significantly increased funding for each of these programs since their inception,

and fully funds the President’s request for each of these programs

in FY 2002. This includes $73,500,000 for IVRS, $85,000,000 for

YCGII, and $25,200,000 for NIBIN. The Committee believes that

this level of funding for these programs is consistent with the priority of stopping gun violence. However, the Committee believes

that the rapid growth of these programs warrants close oversight

to ensure that funding is directed most effectively to those programs that result in a reduction in violent crime. In October, 2000,

the Committee heard from ATF and the Treasury Inspector General about management weaknesses in the YCGII program, as well

as about assessments of program effectiveness. To this end, the

Committee will look carefully to ATF to see that it carries out its

agreed management improvements for the YCGII program, and

continues to develop and utilize reliable measures of effectiveness

for these programs. The Committee therefore directs ATF to report

on a quarterly basis as to program effectiveness, including statistical data and other information about program performance.

NORTH CAROLINA GUN CRIME

The Committee is concerned about youth gun violence in the Raleigh, Durham, and Chapel Hill areas of North Carolina. The Committee requests that ATF evaluate the feasibility of expanding the

Youth Crime Gun Interdiction Initiative into these areas and report its findings to the Committee within 90 days of enactment of

this Act.

NEW JERSEY YOUTH GUN VIOLENCE

The Committee requests that the ATF evaluate its current Youth

Crime Gun Interdiction Initiative efforts in New Jersey to combat

youth gun violence and examine the feasibility of expanding those

efforts and report those findings to the Committee within 90 days

of enactment of this Act.

GREAT PROGRAM

The Committee anticipates that ATF will soon release a longitudinal study of the Gang Resistance Education And Training

(GREAT) program, which should help add to the basis for evaluating the impact this program has had on reducing gang violence.

ATF has testified that its assessments show that program participants demonstrate more positive social attitudes and more antipathy toward gangs than non-participants. However, the Committee

would also encourage ATF to look at the statistics for gang violence

and membership in areas where the GREAT program has been operating as well to see if a correlation can be drawn between this

program and the impact on creating a safer environment for young

people.

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IMPROVEMENTS IN FIREARMS LICENSING AND REGULATORY

OPERATIONS

ATF received $2,000,000 in fiscal year 2001 for management and

technical improvements at the National Firearms and Import

Branches, as well as the National Licensing Center. This is being

used to upgrade the level of service provided to both commercial

and personal customers. ATF has applied this funding to three

principal initiatives aimed at rationalizing separate systems, including consolidation and standardization, and is pursuing several

management initiatives to streamline processes and improve information access and usefulness for both ATF and the public. ATF is

also engaged in a project to image and index records of the National Firearms Registration and Transfer Record (NFRTR), and

then to link such records to its retrieval system in order to meet

recommendations by the Treasury Inspector General to ensure accuracy in the NFRTR database. The Committee includes an additional $500,000 to assist in such efforts as linkage technology, electronic filing, and the use of contract employees with the aim of reducing processing times and ensuring the completeness and accuracy of the NFRTR.

ATF REPORT ON STATUS OF NOTICE OF PROPOSED RULEMAKING NO.

872

The Committee is aware that the ATF issued a Notice of Proposed Rulemaking (No. 872 dated February 9, 1999, as amended by

No. 873 dated April 12, 1999) to prohibit certain alcohol beverage

containers that are likely to mislead consumers as to the identity

or character of the distilled spirits, wine, or malt beverage products

within the containers, or which are likely to be confused with other

(non-alcohol) food products. The proposed rules also amend regulations to clarify the standards of fill for distilled spirits and wine.

The Committee directs the ATF to report to the Committee by

October 1, 2001 concerning the status of these proposed rules. The

report shall include the ATF’s analysis of how, if at all, the adoption of these rules will affect the marketing and distribution of socalled ‘‘Alcopops’’ products, the sweeter and fruit-flavored, 5%+ alcoholic beverages bearing names which equate them to or are confusingly similar to lemonade, tea, or other drinks that typically

contain no alcohol. The ATF also shall include an analysis of

whether it needs any additional regulatory or legal authority to address this issue effectively.

UNITED STATES CUSTOMS SERVICE

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $1,878,557,062

Budget estimate, fiscal year 2002 ..................................................... 1,961,764,000

Recommended in the bill ................................................................... 2,059,170,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +180,612,938

Budget Estimate, fiscal year 2002 ............................................. +97,406,000

MISSION

The United States Customs Service is the nation’s principal border agency with responsibility to enforce the law, safeguard revVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00020 Fmt 6659 Sfmt 6602 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
21

enue, and support lawful international trade and travel. Its mission is to ensure that all goods that enter and exit the United

States do so in accordance with all United States laws and regulations. This includes enforcing U.S. laws intended to stop trafficking

in drugs and other contraband; protecting the American public and

environment from the introduction of prohibited hazardous and

noxious products; assessing and collecting revenue in the form of

duties, taxes, and fees on imported merchandise; regulating the

movement of persons, carriers, merchandise, and commodities between the United States and other nations, while facilitating the

movement of all legitimate cargo, carriers, travelers, and mail;

interdicting narcotics and other contraband; and enforcing certain

provisions of the export control laws of the United States.

RECOMMENDATION

The Committee recommends an appropriation of $2,059,170,000 for the U.S. Customs Service, an increase of $180,612,938 above

the fiscal year 2001 enacted level and an increase of $97,406,000

above the President’s request. The increase above the President’s

request includes $33,476,000 for non-pay inflation, $13,813,000 for

costs of security planning and operations associated with the 2002

Winter Olympics, $30,000,000 for additional investments in nonintrusive inspection technology, $15,000,000 for additional positions

to offset reductions in COBRA funding, $3,000,000 to field test

Pulsed Fast Neutron Analysis (PFNA) inspection technology,

$800,000 to fund tobacco smuggling task forces, and $1,317,000 to

implement the African Growth and Opportunity Act.

INSPECTION TECHNOLOGY INVESTMENTS

In fiscal year 1999 the Customs Service received $134,000,000 to

begin a significant investment in non-intrusive inspection (NII)

technology. Acquisition and deployment of this technology has continued since that time, with significant improvements in the use of

such technology at high risk ports of entry. In addition to such systems as mobile x-ray, gamma ray technology and the Automated

Targeting System (ATS), Mobile Sea Container Systems are being

deployed at vulnerable seaports to begin to improve the level of

scrutiny given the rapidly increasing volume of cargo there. Such

technology investments are essential, given the rapid increase in

volume of trade and passenger traffic that Customs must clear

with no significant increase in personnel. However, $80,000,000 is required to complete deployment of NII

systems called for in the Customs five year NII Technology Plan

for the southern United States, and there is a need to address similar concerns along the Northern Border, where Customs is planning to deploy two NII systems funded through the fiscal year 2001

appropriation provided to enhance Northern Border security after

recent terrorist threats.

The Committee therefore provides an additional $30,000,000, to

remain available until expended, to address this high priority. Such

technology may be used, in conjunction with existing NII technology, to increase the range and intensity of coverage, to test

promising new technologies such as computed tomography, to be

applied to outbound detection (such as for currency or stolen vehicles), to increase security against smuggling, drugs, and terrorist

22

threats, and generally to assist in enforcing compliance with Customs laws.

PULSED FAST NEUTRON ANALYSIS FIELD TEST

In addition to the $30,000,000 described above, the Committee

has included in its recommendation an additional $3,000,000 to

fund the operational field testing of a Pulsed Fast Neutron Analysis (PFNA) NII system in El Paso, Texas. The technology, which

has been developed through years of support from various government agencies, is designed to provide non-invasive, non-harmful detection of illegal substances including narcotics, explosives, currency and chemical weapons, regardless of the shape or density of

the subject material. The Committee directs Customs to report

within 90 days after enactment of this Act on the progress in deploying this system, and again one year after enactment of this Act

on the results of its test. The Committee encourages the Customs

Service to invite other border inspection agencies to participate in

this test.

CUSTOMS INSPECTION STAFFING SHORTFALLS

The cost of providing Customs inspection services is exceeding

the revenues generated by Consolidated Omnibus Reconciliation

Act (COBRA) fees. As a result, in fiscal year 2001 Customs is experiencing a real reduction of over 300 full-year positions, resulting

in reduced staffing and deferral or cancellation of plans to upgrade

equipment and staff Customs terminals. At the same time, the Resource Allocation Model (RAM) developed by Customs indicates a

workload exists to justify staffing levels that are at least 50% higher than at present.

The Committee recognizes that a decision to reauthorize COBRA

fees may provide additional resources, as authority to collect them

otherwise expires in 2003. However, the trend appears to be downward, particularly in light of possible moves toward more trade

agreements that could create pressure to reduce or eliminate such

fees. Given the certainty that Customs will continue to face sharply

increasing passenger and cargo workloads, any real reduction in

staffing levels is unacceptable. The Committee therefore has included $15,000,000 to permit additional staffing, with the expectation that such positions will be allocated according to the highest

priorities indicated by the RAM and other management tools.

The Committee directs the Secretary of the Treasury to report by

February 1, 2002, on how Customs will allocate this funding, indicating the types, numbers and locations of positions filled. The report should also address what steps the Department and Customs

are taking to compensate for decreases in COBRA resources and

meet growing demands on Customs inspection and related services.

CUSTOMS INSPECTION SERVICES FOR INTERNATIONAL CARGO AND

PASSENGER TRAFFIC

The Committee is aware of many ports of entry and border areas

that are experiencing significant growth in commercial and passenger traffic, or that face more severe drug trafficking and other

forms of smuggling. The Committee remains concerned about airports and seaports experiencing increases in traffic and about those

23

that project such increases as a result of regional development patterns. The Committee acknowledges that decisions by the Customs

Service to allocate inspectors, criminal investigators, trade specialists and other positions must be based on staff availability, funding

constraints, traffic and workload experience and projections, as

well as the need to prioritize targets in enforcing trade laws or

countering smuggling. At the same time, the Committee recognizes

that some ports, such as international airports like Miami (which

is developing new terminals), Louisville (a major cargo shipment

hub), or Dulles International Airports, are facing the prospect of

growth that depends heavily on the availability of critical Customs

services. The Committee expects the $15,000,000 provided to offset

reductions in COBRA-funded positions to be used to target areas

facing such acute pressure. The Committee directs the Customs

Service, with the help of its RAM and other decision tools, to identify and request resources needed to meet these requirements, and

in so doing to work closely with airport and other port authorities

and the trade community.

NORTHERN BORDER

With the expansion of trade entries by 132 percent since enactment of the U.S.-Canada Free Trade Agreement and NAFTA, the

increase of air and sea passengers by 62 percent, from 52 million

to 84 million per year, and dramatic increases in land border traffic, there has been only a token increase in the number of inspectors and other needed personnel, and U.S.-Canadian ports are experiencing significant delays in cross-border traffic. The Committee

therefore directs Customs to pay especial attention to the needs of

these port areas as it makes its allocation decisions, both in terms

of personnel, as guided by the RAM, and in infrastructure. In 2001

Congress provided additional funding for Northern Border security

infrastructure and criminal investigator positions to meet the increased terrorist threat. The Committee expects that decisions on

allocation of the additional $15,000,000 for personnel will thoroughly assess the needs of Northern Border ports for additional

staff, particularly inspectors, canine enforcement officers, and import specialists.

SOUTHWEST BORDER PORTS OF ENTRY ORGANIZATION

The Committee is interested in the continuing growth in border

crossings along the Southwest Border ports of entry. The Committee is following with interest the infrastructure improvements

for Southwest (and Northern) Border ports identified in the U.S.

Port of Entry Infrastructure Study last year, and looks forward to

the recommendations of the Border Station Partnership Council.

Given this potential infrastructure change, along with highway improvements on both sides of the border, airport improvement and

increased NAFTA activity, the Committee requests that Customs

submit a report on how it plans to address this growth, including

any plans to change existing port or border organizational structures.

24

RESOURCE ALLOCATION MODEL

The Committee recognizes the limitations in using the Resource

Allocation Model (RAM) to make staffing and investment decisions,

and that it cannot be employed as the exclusive basis for such decisions. However, it provides a reasonable estimate of country-wide

workload requirements, and Customs should be able to use the

RAM in conjunction with other management tools to make objective and timely decisions about how to prioritize its resources. The

Committee is struck by the significant discrepancy between overall

resource requirements estimated using the RAM, and actual resources available or planned for the Customs Service, and believes

this incongruity needs to be addressed by the Administration. The

Committee therefore directs the Secretary of the Treasury to report

by November 1, 2001, on its plan to fulfill these requirements, including a description of staffing requirements indicated by the

RAM for each Customs location, and what decision processes, including the RAM, are in use to decide where and how to deploy

staff and resources.

PERSONAL SEARCH PRACTICES

Customs is commended for taking meaningful and effective steps

to reform and clarify its personal search practices. As a result, it

is the first major law enforcement agency to demonstrate a significant reduction in the numbers of minorities searched for contraband, with the number of personal searches at international airports falling by nearly 80 percent between 1998 and 2000, while experiencing a 38 percent increase in drug seizures since 1999. The

Committee congratulates Customs on its success, and because

maintaining strong oversight of this is important, the Committee

directs Customs to submit by November 1, 2001, an updated report

giving statistical information concerning the frequency of complaints about personal search abuses, including claims of racial

profiling; Customs’ assessment of such claims; and any new policies

or procedures that have been or are being implemented by Customs.

SEAPORT SECURITY

In 2000 the Interagency Commission on Crime and Security in

U.S. Seaports (ICCSS) reported on significant levels of drug trafficking and other smuggling occurring at the 368 public seaports in

this country, and described the high vulnerability of those seaports

to terrorist and criminal exploitation. The ICCSS called for substantial increases in resources, changes in regulations and procedures, and improved interagency and intergovernmental coordination to improve the level of security at our nation’s seaports.

Customs has reported on several efforts underway to address

these concerns. The General Service Administration’s Maritime

Federal Facilities council is seeking single site federal services

within seaports. In a move to make export information more timely, the Customs Service, Commerce Department and National Institute for Standards and Technology have defined export filing requirements and will submit a report to Congress requiring all export filings to be reported in the Automated Export System (AES),

rather than provided after vessels leave U.S. ports. The Research

25

and Technology Committee of the Interagency Committee on the

Marine Transportation System (ICMTS) will hold a conference in

November, 2001 and follow this up with interagency recommendations for examination and investigative technology at seaports. To

assess resource requirements, a Subcommittee on Security was established under the ICMTS, co-chaired by Customs and the Coast

Guard, and is pursuing a comprehensive interagency study to analyze the impact of current projections related to seaport crime,

trade volumes, technology, and other key factors on future personnel requirements for federal agencies having seaport border control responsibilities.

The Committee strongly urges the Administration to sustain momentum in addressing the ICCSS’ recommendations, and therefore

directs the Secretary of the Treasury to report within 90 days of

enactment of this Act on these and other specific actions that have

been taken by the Department, Customs Service and other federal

agencies to complete action on the initiatives underway, including

efforts of the Criminal Justice Information Services Advisory Policy

Board to develop a National Incident Based Report System and

thereby improve collection and reporting of crime data by seaports.

The report should detail actions underway and provide a time line

for completion of reports, draft legislation, and other action items.

AFRICAN GROWTH AND OPPORTUNITY ACT

The Committee provides $1,317,000 to the Customs Service to

provide assistance to help AGOA beneficiary countries come into

compliance with the customs requirements in the Trade and Development Act of 2000, so that more countries are designated as eligible to ship goods under the program.

ILLEGAL TRANSSHIPMENTS

The Committee is concerned about reports of goods, including

textiles and shoes, being transshipped from China through the

United States into Mexico with false certificates of origin. Such

transshipment clearly would violate NAFTA. The Committee encourages Customs to accelerate its efforts to stop illegal transshipments that follow this or other patterns.

HARBOR MAINTENANCE FEE COLLECTION

Appropriation, fiscal year 2001 to date ............................................ $2,993,000

Budget estimate, fiscal year 2002 ..................................................... 2,993,000

Recommended in the bill ................................................................... 2,993,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. ............................

Budget Estimate, fiscal year 2002 ............................................. ............................

MISSION

The Harbor Maintenance Fee provides resources to the Army

Corps of Engineers for the improvement of American channels and

harbors. It is assessed on the value of commercial imports and exports delivered to or from certain specified ports. The fee is collected by the U.S. Customs Service and deposited into the Harbor

Maintenance Trust Fund.

26

RECOMMENDATION

The Committee recommends an appropriation of $2,993,000, the

same as the fiscal year 2001 appropriation and the amount requested by the President.

OPERATION, MAINTENANCE AND PROCUREMENT, AIR AND MARINE

INTERDICTION PROGRAMS

Appropriation, fiscal year 2001 to date ............................................ $139,919,498

Budget estimate, fiscal year 2002 ..................................................... 162,637,000

Recommended in the bill ................................................................... 183,853,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +43,933,502

Budget Estimate, fiscal year 2002 ............................................. +21,216,000

MISSION

The Customs Air and Marine Interdiction Programs combat the

illegal entry of narcotics and other items into the United States.

This appropriation provides all operations, maintenance and procurement for the Customs air and marine program and support for

the interdiction of narcotics by other Federal, State, and local agencies. Included in this mission is the requirement to support the Bureau of Alcohol, Tobacco and Firearms and the U.S. Secret Service.

RECOMMENDATION

The Committee recommends an appropriation of $183,853,000 for

Operations, Maintenance and Procurement, Air and Marine Interdiction Programs, an increase of $43,933,502 above the fiscal year

2001 enacted level and an increase of $21,216,000 above the President’s request. The increase above the President’s request includes

$2,285,000 for non-pay inflation, $4,931,000 for costs of security

planning and operations associated with national special security

events, $4,000,000 for electro-optical and infrared imaging systems

for aircraft and marine vessels, and $10,000,000 for additional investments in the air program.

MODERNIZATION OF THE AIR AND MARINE INTERDICTION DIVISION

The Committee fully funds the President’s request for new investments for the Air and Marine Interdiction Division (AMID) program. However, this only scratches at the surface of the needs projected for modernization as outlined in the Modernization Plan for

the AMID, which totals over $1.5 billion for air, marine, communications and training/standardization requirements. Requirements

of this magnitude are clearly beyond the means of the Committee

at this time. However, given the age of the Customs AMID air and

marine vessels, its inadequate basing and storage capabilities, and

the difficulties it faces in maintaining a high rate of operational

readiness, it is critical that modernization must be approached

strategically, with a clear, achievable plan.

This will require strong direction from the Administration,

through the Treasury Department and Customs, and in coordination with other federal agencies with responsibilities for air and

international and arrival zone counterdrug missions. Such efforts

should also address the strategic and tactical priorities for Customs

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ities of the existing plan or institute a new one. Future funding will

need to be substantially increased if credible modernization is to

take place, which will involve large scale system replacement, upgrades, and facilities and communications costs. The Committee

strongly urges that the Administration assign this effort high priority as it plans for its fiscal year 2003 budget.

As a way to begin support for this effort, the Committee provides

an additional $10,000,000 that it directs should go towards air program modernization. The Committee also directs the Customs

Service to apply this funding to key program priorities contained

in the AMID Modernization Plan, such as the need for hangars at

the Standardization and Training Branch and for needed aircraft

replacements or upgrades.

The Committee would also urge the Administration to avoid the

complete breakdown of the tethered aerostat radar system (TARS),

which is being allowed to shut down in the absence of strong, committed program management and funding support. If the Customs

Service is assigned the TARS mission, it will be essential that an

adequate budget for that activity be included as well.

MOBILE SUPPORT VESSELS

As part of modernizing its marine interdiction effort, the Customs Service needs to consider a wide range of options for basing

and deploying its interceptor vessels in the most effective and economical way. The Committee requests that Customs consider the

option of using mobile support vessels to support offshore drug

interdiction efforts for long term, on-station mission support, supplies, maintenance and personnel needs.

AUTOMATION MODERNIZATION

Appropriation, fiscal year 2001 to date ............................................ $257,831,532

Budget estimate, fiscal year 2002 ..................................................... 257,832,000

Recommended in the bill ................................................................... 427,832,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +170,000,468

Budget Estimate, fiscal year 2002 ............................................. +170,000,000

MISSION

The Automation Modernization account includes funding for

major information technology projects for the Customs Service.

Projects included in this request are the planned Automated Commercial Environment (ACE) system, the existing Automated Commercial System (ACS), and the International Trade Data System

(ITDS), which is being developed as a component of ACE.

RECOMMENDATION

The Committee recommends an appropriation of $427,832,000 for

Automation Modernization, an increase of $170,000,468 above the

fiscal year 2001 enacted level and an increase of $170,000,000

above the President’s request. The increase above the President’s

request is for development and deployment of the Automated Commercial Environment (ACE).

28

AUTOMATED COMMERCIAL ENVIRONMENT (ACE)

The selection of a prime contractor to work with the Customs

Service to develop a successor system to the aging, legacy Automated Commercial System (ACS) has put the Customs effort to

modernize and improve its automated systems on a new footing.

The Committee strongly supports this effort, and believes it merits

some of the highest priority in funding for this bill. However, the

Administration’s request for $130,000,000 would have the effect of

delaying the implementation of this project by at least a year, increasing the risk of project failure (worsened by uncertainty over

future funding), and increasing the pressure on ACS. In order to

help ensure that the development phase of this project remains on

track for completion within five years, the Committee includes an

additional $170,000,000 to bring the full fiscal year 2002 level of

funding for ACE to $300,000,000. This is $88,000,000 below what

it would take to fully fund phases I and II of this project, but

should provide ample resources to begin making a significant impact on Customs processes at critical, high volume ports of entry.

The Committee has continued language requiring that the release of this funding will depend on first receiving and reviewing

specific Customs’ expenditure plans, including cost-benefit analysis,

for each requested funding release. Such Committee review will

last a minimum of 30 days, with the assistance of the General Accounting Office. The Committee strongly supports the recommendations made by GAO to consolidate responsibility and accountability

for ITDS under the overall modernization management framework,

rather than to permit development of a separate, stovepiped system, and clarify roles of agents used by Customs and its prime contractor to avoid conflicts of interest. The Committee therefore directs Customs to specifically include any plans for further ITDS

pilot funding, including cost, benefits, and risk justification, in the

next ACE expenditure plan, expected to be submitted in October

2001, and at the same time report to the Committee on what steps

it has taken to ensure the independence of its independent

verification and validation agent.

BUREAU OF ENGRAVING AND PRINTING

2000

(actual)

2001

(estimate)

2002

(estimate)

Total revenue .............................................................................................. $476,000,000 $417,000,000 $450,000,000

Revenue from currency ...................................................................... 409,000,000 355,000,000 396,000,000

Revenue from stamps ........................................................................ 55,000,000 53,000,000 45,000,000

Other revenue ..................................................................................... 12,000,000 9,000,000 9,000,000

Cost of operations ...................................................................................... 461,000,000 425,000,000 450,000,000

Net revenue (to Treasury) ........................................................................... 15,000,000 ¥8,000,000 0

MISSION

The Bureau of Engraving and Printing (BEP) designs, manufactures, and supplies Federal Reserve notes, various public debt instruments, as well as most evidences of a financial character issued

by the United States, such as postage and internal revenue stamps.

The BEP executes certain printings for various territories administered by the United States, particularly postage and revenue

stamps.

29

The operations of the BEP are financed by means of a revolving

fund established in accordance with the provisions of Public Law

656, August 4, 1950 (31 U.S.C. 181), which requires the BEP to be

reimbursed by customer agencies for all costs of manufacturing

products and services performed. The BEP is also authorized to assess amounts to acquire capital equipment and provide for working

capital needs. The anticipated work volume is based on estimates

of requirements submitted by agencies served.

UNITED STATES MINT

Circulating coins Numismatic coins Protection

2000 (actual):

Number of coins ............... 21.0 billion ................................ 6.2 billion.

Cost of operations ............ $423 million .............................. $669 million .............................. $28 million

Revenue ............................ $1,679 million ........................... $2,023 million.

Net revenue (to Treasury) $1,256 million ........................... $1,355 million ........................... ($28 million)

2001 (estimate):

Number of coins ............... 18.9 billion ................................ 6.0 billion.

Cost of operations ............ $311 million .............................. $768 million .............................. $35 million

Revenue ............................ $816 million .............................. $1,956 million.

Net revenue (to Treasury) $504 million .............................. $1,188 million ........................... ($35 million)

2002 (estimate):

Number of coins ............... 18.2 billion ................................ 5.8 billion.

Cost of operations ............ $287 million .............................. $806 million .............................. $36 million

Revenue ............................ $689 million .............................. $1,939 million.

Net revenue (to Treasury) $402 million .............................. $1,133 million ........................... ($36 million)

MISSION

The United States Mint manufactures coins, receives deposits of

gold and silver bullion, and safeguards the Government’s holdings

of monetary metals. For fiscal year 1997, Congress established the

United States Mint Public Enterprise Fund (Public Law 104–52)

which authorized the U.S. Mint to use proceeds from the sale of

coins to finance the costs of its operations and which consolidated

all existing Mint accounts into a single fund. Public Law 104–52

also provides that, in certain situations, the levels of capital investments for circulating coins and protective services factor into the

decisions of the Congress such that those levels compete with other

requirements for funding.

RECOMMENDATION

The Committee recommends a spending level for capital investments by the U.S. Mint for circulating coinage and protective services of $43,000,000, the same as the fiscal year 2002 spending level

currently planned by the U.S. Mint and a decrease of $5,000,000

below the level included in the President’s request. The Committee

is extremely disappointed with the level of information provided in

the budget justification for this item and directs that more detailed

information, including descriptions of specific capital investment

items, be provided in future annual budget justifications to Congress. The Committee also includes a requirement that the United

States Mint Public Enterprise Fund pay for a study by the General

Accounting Office on circulating coinage. The payment is to be

made 60 days after the enactment of this Act. The GAO report is

to be delivered to the House Committee on Appropriations and

30

House Committee on Financial Service 270 days after the enactment of this Act.

The Committee recommends a new general provision (Section

121) to require specific Congressional authorization for the construction and operation of a museum in the Mint’s National Headquarters in Washington, D.C. Last year, the Committee directed

the Mint to provide a report assessing the nature and the extent

to which the new dollar coin is being used in commerce; the resultant report did not address this issue. The Committee directs the

Mint to provide a new report by March 31, 2002, on this important

topic and expects the Mint to more adequately address this issue.

The Committee also has serious reservations regarding the procurement and leasing activities of the Mint and is concerned that

the Mint may be misinterpreting or abusing the flexibility provided

by Congress in establishing the public enterprise fund. The Committee urges the Department to take a more active role in guiding

and managing the Mint, particularly in such areas as its needs for

foreign travel and justification of foreign travel.

BUREAU OF THE PUBLIC DEBT

ADMINISTERING THE PUBLIC DEBT

Appropriation, fiscal year 2001 to date ............................................ $182,699,000

Budget estimate, fiscal year 2002 ..................................................... 185,370,000

Recommended in the bill ................................................................... 187,318,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +4,619,000

Budget Estimate, fiscal year 2002 ............................................. +1,948,000

MISSION

This appropriation provides funds for the conduct of all public

debt operations and the promotion of the sale of U.S. savings-type

securities.

RECOMMENDATION

The Committee recommends an appropriation of $187,318,000 for

administering the public debt, an increase of $4,619,000 above the

fiscal year 2001 enacted level and an increase of $1,948,000 above

the President’s request. The increase above the President’s request

is for non-pay inflation.

The Committee has not continued language in the bill regarding

the administration of certain Trusts. This language, first contained

in fiscal year 2001, created an indefinite appropriation for the

funding of administrative services by the Bureau of the Public Debt

on behalf of these Trusts. The Committee believes that the Bureau

should recover the costs of the administrative services it provides

to the various Federal trust and investment funds and expects

these administrative costs to be fully covered within the appropriation provided.

The Committee has provided a one-time increase in the representational allowance for the Bureau of the Public Debt in support of

its hosting of an international debt conference in May 2002 to

share information and discuss the challenges of managing and

marketing sovereign debt.

31

PUBLIC DEBT PROGRAM ACTIVITIES

The Committee is concerned about the adequacy of response by

the Bureau of Public Debt to recent developments that have drastically altered the long-time assumptions regarding the debt of the

Nation. Current and future reductions of the national debt held by

the public should bring significant reductions of the workforce required to manage and service that debt. As debt instruments mature, there will continue to be some new or rollover borrowings to

re-finance the declining balance as well as a need to administer

bond redemptions. But reductions in borrowing from the public also

will dramatically affect the mix of instruments used to finance the

public debt.

The Committee finds a pressing need to explore immediately the

implications of reduced borrowing and to re-visit the assumptions

that underlie the work of the Bureau of Public Debt. For instance,

according to its fiscal year 2002 budget justification, more than 70

percent of the Bureau’s workforce and funding are devoted to savings bond activities. Yet savings bonds constitute only about 3 percent of the total public debt and less than 6 percent of the publicly

held debt. In contrast, less than 30 percent of the Bureau’s workforce and funding are focused on marketable securities, although

these securities make up 97 percent of the outstanding public debt.

The Committee is concerned that the implications of (1) the decline

in the relative importance of savings bonds in funding the public

debt, (2) the steady increase in savings bond redemptions over new

issuances, and (3) the preference by Americans for other forms of

savings and investments are not being adequately anticipated by

the Bureau in its debt management programs and activities.

Therefore, the Committee directs the Bureau to provide a report

that reviews the complete debt program of the Bureau. The report

is to take a fresh and fiscally-focused look at the savings bond program, its current and future role in financing the public debt and

in providing a savings opportunity for the public, in the context of

the full range of debt instruments available for financing the public

debt. The report should detail the specific costs associated with the

various debt instruments (savings bonds, Treasury bills, etc.), not

only the interest rates that represent federal liabilities but also the

federal personnel and processing costs related to issuing, redeeming, and otherwise administering the instruments on both an annual basis (expense of paying interest) and a cost-per-transaction

basis. The report should provide cost comparisons between highamount, lower-volume instruments such as large T-bills or T-notes

(with varying maturities) and low-amount, high-volume instruments such as savings bonds. It should also explore the costs associated with maintaining these dual approaches to borrowing, rather

than converting to a single approach, as the public debt shrinks.

Costs related on a per-transaction basis should include a breakout

and description of overhead charges, such as the indirect costs of

program management and administrative and support personnel,

as well as the costs of the employees who directly handle transactions. The report should focus on fiscal management concerns.

The report should provide an analysis of the impact on the federal

government of simply discontinuing the savings bond program. The

Bureau is to provide this report to the House Committee on ApproVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00031 Fmt 6659 Sfmt 6602 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
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priations and to the House Committee on Financial Services 180

days after enactment of this Act.

INTERNAL REVENUE SERVICE

The Committee is concerned about the variety and quality of information provided in justification of the budget request for the Internal Revenue Service (IRS). Despite the improvements brought

about by the recent budget restructuring and by the functional

presentation in the budget justification, the Committee remains intensely aware that other types of information and presentations

would be of assistance in evaluating the IRS budget.

A portion of this concern stems from the known inadequacy and

weaknesses of the current financial management system, leading to

mistrust of the financial information generated by the system. This

lack of sound financial information, and the recent one-year delay

in replacing the system as part of the business systems modernization effort, throws into question the ability of the IRS to justify its

budgetary needs. While the IRS is to be congratulated for having

achieved a clean audit opinion for its fiscal year 2000 financial

statement, this unqualified opinion was only achieved at great cost,

and the General Accounting Office continues to document substantial financial weaknesses. The Committee fully expects the IRS to

continue improving its financial practices and processes to the

greatest extent practicable. The Committee recognizes the role of

the newly formulated IRS Oversight Board in reviewing the annual

budget request of the IRS and submitting its own budget recommendation to the Congress. The Committee appreciates receiving their analysis of the IRS budget and looks forward to strengthening its relations with the IRS Oversight Board. The Committee

urges the Secretary of the Treasury to consider the IRS Oversight

Board’s budget recommendations during deliberations on the FY

2000 budget request.

PROCESSING, ASSISTANCE AND MANAGEMENT

Appropriation, fiscal year 2001 enacted to date .............................. $3,594,966,000

Budget estimate, fiscal year 2002 ..................................................... 3,783,347,000

Recommended in the bill ................................................................... 3,808,434,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +213,468,000

Budget Estimate, fiscal year 2002 ............................................. +25,087,000

MISSION

This appropriation provides for processing tax returns and related documents; processing data for compiling statistics of income;

assisting taxpayers in correct filing of their returns and in paying

taxes that are due; overall planning and direction of the Internal

Revenue Service; and management of financial resources and procurement.

RECOMMENDATION

The Committee recommends an appropriation of $3,808,434,000

for Processing, Assistance, and Management, an increase of

$213,468,000 above the fiscal year 2001 enacted level and an increase of $25,087,000 above the President’s request. The increase

above the President’s request is for non-pay inflation. The ComVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00032 Fmt 6659 Sfmt 6602 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
33

mittee understands that this amount will be sufficient to provide

$6,000,000 in support of low income tax clinics, the same level of

support provided during fiscal year 2001.

TAX LAW ENFORCEMENT

Appropriation, fiscal year 2001 enacted to date .............................. $3,366,380,000

Budget estimate, fiscal year 2002 ..................................................... 3,533,198,000

Recommended in the bill ................................................................... 3,541,076,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +174,696,000

Budget Estimate, fiscal year 2002 ............................................. +7,878,000

MISSION

This appropriation provides for the examination of tax returns,

both domestic and international; the administrative and judicial

settlement of taxpayer appeals of examination findings; technical

rulings; monitoring employee pension plans; determining qualifications of organizations seeking tax-exempt status; examining tax returns of exempt organizations; enforcing statutes relating to detection and investigation of criminal violations of the internal revenue

laws; collecting unpaid accounts; compiling statistics of income and

compliance research; and securing unfiled tax returns and payments.

RECOMMENDATION

The Committee recommends an appropriation of $3,541,076,000

for Tax Law Enforcement, an increase of $174,696,000 above the

fiscal year 2001 enacted level and $7,878,000 above the President’s

request. The increase above the President’s request includes

$5,149,000 for non-pay inflation and $2,729,000 for participation in

law enforcement support of the 2002 Winter Olympics. Within

available funds, IRS is directed to spend $3,000,000 to contract for

actuarial expertise and/or related computer software as a pilot compliance effort to assist in audits involving tax reserves and other

situations requiring actuarial expertise.

AUDIT RATES AND AUDIT FAIRNESS

The Committee remains concerned about the steady and significant decline in IRS’ audit rates. An April 2001 Government Accounting Office report, GAO–01–484, requested by the Committee

on Ways and Means, reports IRS data of reductions since 1997 in

audit coverage for large corporations (¥60%), partnerships

(¥40%), and individuals (¥62%). The IRS hopes to reverse this

trend during fiscal years 2001 and 2002, and has pointed out increasing rates of other non-audit compliance activities, such as document matching. The Committee recognizes that audit rates are

not the only measure of IRS tax compliance efforts, but remains

concerned with the uncertainty about optimizing the rate of audits.

Although the IRS has stated that it foresees no need to return to

the levels of individual audit coverage that existed five years ago,

the IRS has been unable to state what the audit rate ought to be

(either in general or for specific taxpayer segments), to quantify the

degree to which it expects fiscal years 2001 and 2002 will reverse

the decline in audit rates, or to characterize how recent audit levels

have affected compliance.

34

The Committee is also concerned with indications that the current IRS audit coverage may disproportionately impact lower-income taxpayers. At a recent hearing before the Committee, the IRS

Commissioner testified that the decline in audit coverage and the

increase in document matching have created unevenness in IRS

compliance actions among taxpayers based on economic considerations, because current document-matching capabilities center

upon tax returns that report mostly wages, salaries, and other noninvestment income sources. At the same time, higher-income taxpayers, whose returns often have income sources and deductions

that are not part of current document-matching, also are being audited less frequently. The audit rate for high-income individuals

($100,000 and higher) has declined by 65% from FY 1997 to FY

2000, while the audit rate for all individuals has declined by 62%

over the same period. These figures call into question how the IRS

can best allocate and manage its compliance resources.

Therefore, the Committee directs the IRS to provide to the House

Committee on Appropriations within 120 days of the date of the enactment of this Act a report detailing how the full range of all IRS

tax compliance activities (document matching, in-person audits,

correspondence audits, etc.) have changed for fiscal years 1996

through 2000 with projections for fiscal years 2001 and 2002. The

report shall contain an analysis, broken out by appropriate taxpayer segments, of what the current audit levels are, what the optimum audit rates should be, and what actions are being taken to

achieve these optimal audit rates. The report shall discuss, by specific tax law areas and taxpayer categories, compliance rates, the

equitable distribution of IRS compliance resources among taxpayer

segments, and the steps IRS is taking to ensure that no segment

of taxpayers are disproportionately impacted by IRS tax enforcement activities.

EARNED INCOME TAX CREDIT COMPLIANCE INITIATIVE

Appropriation, fiscal year 2001 to date ............................................ $144,681,000

Budget estimate, fiscal year 2002 ..................................................... 146,000,000

Recommended in the bill ................................................................... 146,000,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +1,319,000

Budget Estimate, fiscal year 2002 ............................................. ............................

MISSION

The Earned Income Tax Credit Compliance Initiative provides

for expanded customer service and public outreach programs,

strengthened enforcement programs, and enhanced research efforts

to reduce overclaims and erroneous filings associated with the

Earned Income Tax Credit.

RECOMMENDATION

The Committee recommends an appropriation of $146,000,000 for

the Earned Income Tax Credit Compliance Initiative, an increase

of $1,319,000 above the fiscal year 2001 enacted level and the same

as the President’s request.

35

EITC PROGRAM MANAGEMENT

The Committee is quite concerned that the IRS, in managing its

special program for remedying improper EITC payments, has not

allocated the program resources in proportion to the different factors causing overclaims (math errors by tax payers and by tax preparers, legal misinterpretations by tax payers and by tax preparers, criminal fraud committed by tax payers and by tax preparers, etc.) that cause those improper payments. Of even greater

concern, the IRS has not documented the relative levels of these

factors but nevertheless has allocated major resources toward education efforts to correct legal misinterpretations but only lesser resources to reduce criminal fraud. Because the overclaims and overpayments consistently total $8-billion to $9-billion annually, it is

crucial that all contributing factors be pursued in correct proportion to their contribution to the problem.

Therefore, the Committee directs the IRS to immediately: devote

all resources necessary to distinguish expeditiously what portions

of the overclaims are attributable to erroneous but unintentional

misunderstandings of the law, to math errors, to social security

number errors, to returns prepared by taxpayers, to returns prepared by professionals, and to fraudulent or other deliberate conduct by taxpayers or preparers; and align the distribution of program resources (the $146-million appropriated for fiscal year 2002

and the 2,200 FTE associated with the effort) to create a mix between education and enforcement efforts that reflects the ratio between mistaken versus intentional efforts to receive improper payments of EITC.

EITC PROGRAM EFFECTIVENESS

Last year, the Committee directed the Internal Revenue Service

to provide a report on the results, effectiveness, and success of the

program. The resultant report provided limited information on program effectiveness. A key ingredient to determining the effectiveness of a program is the ability to measure and quantitatively

characterize the extent of the problems and issues as well as the

impact of the program on those problems and issues. Such specific

measures and quantitative characteristics were not included in the

report.

For instance, the report state that about 7,100 tax return preparers were educated on EITC provisions and an additional 2,300

received compliance visits, but information is not provided to place

these figures in context. For example, the report does not address

a comparison between the number of EITC tax return preparers

and the overall number of preparers (including the proportion of

EITC returns among the total returns prepared by these preparers), the proportion and number of self-prepared EITC returns

and professionally prepared returns as a percentage of overall

EITC returns which sought overclaims, whether IRS has identified

preparers with a high volume of EITC overclaims and, if so, what

portions have been detected and how has the IRS targeted these

preparers for education or enforcement followup. These are but a

few examples of the types of questions generated by the report; answers to these and other questions will assist in evaluating the effectiveness of the program.

36

Therefore, the Committee directs the IRS to provide to the House

Committee on Appropriations and the House Ways and Means

Committee within 90 days of enactment of this Act a report that

specifically addresses and provides data on the management and

effectiveness of this program. The report should contain a cohesive

strategy for improving the EITC program in the framework of prefiling, filing, and post-filing activities and that strategy should specifically address the areas of: outreach and education, enforcement,

compliance improvement, and compliance research. Such information is crucial in deliberations regarding future program authorization and funding. The report should contain the amounts for outreach and education, enforcement, compliance improvement, and

compliance research for fiscal years 1998, 1999, 2000, 2001 (estimate), and 2002 (estimate) including a full discussion of what steps

IRS has taken to better align its program resources in proportion

to the factors that have created the overpayment problem.

INFORMATION SYSTEMS

Appropriation, fiscal year 2001 to date ............................................ $1,522,416,000

Budget estimate, fiscal year 2002 ..................................................... 1,563,249,000

Recommended in the bill ................................................................... 1,573,065,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +50,649,000

Budget Estimate, fiscal year 2002 ............................................. +9,816,000

MISSION

This appropriation provides for Service-wide data processing support, including the evaluation, development, and implementation of

computer systems (including software and hardware) requirements.

RECOMMENDATION

The Committee recommends an appropriation of $1,573,065,000

for Information Systems, an increase of $50,649,000 above the fiscal year 2001 enacted level and an increase of $9,816,000 above the

President’s request. The increase above the President’s request is

for non-pay inflation. The Committee is aware of information system requirements that were identified by the IRS Oversight Board

but not explicitly included in the President’s budget request. The

Committee believes the appropriation recommended by the Committee is adequate to address all of the highest priority information

system needs of the IRS.

The IRS and the Department of the Treasury are to be congratulated on the reverse auction it held on May 14, 2001, for purchasing new computers for IRS employees. This was the largest reverse auction yet to be conducted by a government agency and it

resulted in substantial savings. For desktop and laptop computers,

the government saved an average of about 25 percent off the prices

that otherwise would have been obtained; for some types of computers, such as top-end desktops, the savings were even greater. As

a consequence of the reverse auction process and savings, the IRS

should be able to meet its employees’ immediate needs for computers during fiscal years 2001 and 2002.

37

BUSINESS SYSTEMS MODERNIZATION

Appropriation, fiscal year 2001 to date ............................................ $71,593,000

Budget estimate, fiscal year 2002 ..................................................... 396,593,000

Recommended in the bill ................................................................... 391,593,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +320,000,000

Budget Estimate, fiscal year 2002 ............................................. ¥5,000,000

MISSION

This appropriation provides for funding of the PRIME Systems

Integration Services Contractor to modernize the business systems

of the Internal Revenue Service.

RECOMMENDATION

The Committee recommends an appropriation of $391,593,000 for Business Systems Modernization, an increase of $320,000,000

above the fiscal year 2001 enacted level and a decrease of

$5,000,000 below the level proposed in the President’s request. This

account had been previously known as the Information Technology

Investment account; the Committee approves the change of the

name of the appropriation as proposed by the Administration. The

release of funding from this account is governed by the same statutory conditions that governed the funds appropriated into the Information Technology Investment account for fiscal year 2001.

ADMINISTRATIVE PROVISIONS—INTERNAL REVENUE SERVICE

Section 101. The Committee continues the provision that allows

the transfer of 5 percent of any appropriation made available to the

IRS to any other IRS appropriation, subject to prior Congressional

approval.

Section 102. The Committee continues the provision that requires the IRS to maintain a training program in taxpayer’s rights,

dealing courteously with taxpayers, and cross cultural relations.

Section 103. The Committee continues the provision that requires the IRS to institute policies and procedures, which will safeguard the confidentiality of taxpayer information.

Section 104. The Committee continues the provision that makes

funds available for improved facilities and increased manpower to

provide sufficient and effective 1–800 help line service for taxpayers.

UNITED STATES SECRET SERVICE

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $824,885,251

Budget estimate, fiscal year 2002 ..................................................... 857,117,000

Recommended in the bill ................................................................... 943,777,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +118,891,749

Budget Estimate, fiscal year 2002 ............................................. +86,660,000

MISSION

The Secret Service is responsible for the security of the President, the Vice President and other dignitaries and designated individuals; for enforcement of laws relating to obligations and securities of the United States and financial crimes such as financial inVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00037 Fmt 6659 Sfmt 6602 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
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stitution fraud and other fraud; and for protection of the White

House and other buildings within Washington, D.C. It also has responsibility to provide security for national special security events,

as designated by the President.

RECOMMENDATION

The Committee recommends an appropriation of $943,777,000 for

the U.S. Secret Service, an increase of $118,891,749 above the fiscal year 2001 enacted level and an increase of $86,660,000 above

the President’s request. The increase above the President’s request

includes $13,624,000 for non-pay inflation, $27,530,000 for security

planning and operations for the 2002 Winter Olympics (including

the costs of non-Treasury agencies), $45,000,000 to complete the

staffing rebalancing initiative, and $506,000 in additional support

for the National Center for Missing and Exploited Children.

WORKFORCE RETENTION AND WORKLOAD REBALANCING INITIATIVE

In response to a significant increase in workload for Secret Service agents, particularly in the field, and unusually high attrition

rates, Congress provided additional funding for new hires to reduce

the level of overtime to the 1994 target level of 62 hours per

month. Fiscal year 2000 saw average overtime rise as high as 80

hours per month, as would be expected in an election year, but is

on track to fall to more manageable levels. In order to complete

this effort and achieve the target level, the Committee has included

funding for the final increment of 204 agents, and included the

funding necessary for hiring, support, space and equipment.

ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED

EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $8,921,330

Budget estimate, fiscal year 2002 ..................................................... 3,352,000

Recommended in the bill ................................................................... 3,457,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. ¥5,464,330

Budget Estimate, fiscal year 2002 ............................................. +105,000

MISSION

This account supports the acquisition, construction, improvement, equipment, furnishing and related costs for maintenance and

support of Secret Service facilities, including the Secret Service

Headquarters Building and the Rowley Training Center.

RECOMMENDATION

The Committee recommends an appropriation of $3,457,000 for

Acquisition, Construction, Improvement and Related Expenses, a

decrease of $5,464,330 below the fiscal year 2001 enacted level and

an increase of $105,000 above the President’s request. The increase

above the President’s request is for non-pay inflation.

GENERAL PROVISIONS—DEPARTMENT OF THE TREASURY

Section 110. The Committee continues the provision that requires the Secretary of the Treasury to comply with certain reVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00038 Fmt 6659 Sfmt 6602 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
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programming guidelines when obligating or expending funds for

law enforcement activities.

Section 111. The Committee continues the provision that allows

the Department of the Treasury to purchase uniforms, insurance,

and motor vehicles without regard to the general purchase price

limitation, and enter into contracts with the State Department for

health and medical services for Treasury employees in overseas locations.

Section 112. The Committee continues the provision that requires expenditures of funds so as not to diminish efforts under the

Federal Alcohol Administration Act.

Section 113. The Committee continues the provision that authorizes transfers, up to 2 percent, between law enforcement appropriations under certain circumstances.

Section 114. The Committee continues the provision that authorizes transfers, up to 2 percent, between Departmental Offices, Office of the Inspector General, Financial Management Service, and

the Bureau of the Public Debt appropriations under certain circumstances.

Section 115. The Committee continues the provision that authorizes transfer, up to 2 percent, between the Internal Revenue Service and the Treasury Inspector General for Tax Administration

under certain circumstances.

Section 116. The Committee continues the provision that provides that no funds may be obligated for the purchase of law enforcement vehicles until the Secretary of the Treasury certifies that

the purchase is consistent with Departmental vehicle management

principles.

Section 117. The Committee continues the provision that prohibits the Department of the Treasury from undertaking a redesign

of the $1 Federal Reserve note.

Section 118. The Committee continues the provision that provides for transfers from and reimbursements to the Salaries and

Expenses appropriation of the Financial Management Service for

the purposes of debt collection.

Section 119. The Committee includes a new provision that authorizes intelligence and intelligence-based activities of the Department of Treasury.

Section 120. The Committee includes a new provision that extends the pilot project for designated critical occupations for one

additional year.

Section 121. The Committee includes a new provision that requires authorization for the construction and operation of a museum by the United States Mint.

TITLE II—POSTAL SERVICE

PAYMENT TO THE POSTAL SERVICE FUND

Appropriation, fiscal year 2001 to date ............................................ $95,888,000

Budget estimate, fiscal year 2002 ..................................................... 143,712,000

Recommended in the bill ................................................................... 143,712,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +47,824,000

Budget Estimate, fiscal year 2002 ............................................. ............................

40

MISSION

Funds provided to the Postal Service in the Payment to the Postal Service Fund include the costs of revenue forgone on free and

reduce-rate mail for the blind and overseas voters; reconciliation

adjustments for amounts appropriated for free and reduced rate

mail and the actual amounts required; and partial reimbursement

for losses which the Postal Service incurred as a result of insufficient appropriations in fiscal years 1991 through 1993 and the additional revenues it would have received between 1993 and 1998 in

the absence of certain rate phasing provisions of the Revenue Forgone Act of 1993.

RECOMMENDATION

The Committee recommends an appropriation of $143,712,000 for

Payment to the Postal Service Fund, an increase of $47,824,000

from amounts appropriated in fiscal year 2001 and the same as the

amounts requested by the President. Of the amounts appropriated,

$56,303,000 is provided for free mail for the blind and overseas voters; a reduction of $8,684,000 is assumed as a reconciliation adjustment for differences between estimated free mail volumes and final

audited volumes for fiscal year 1999. The final appropriation of

$47,619,000 for free mail for the blind and overseas voters is made

available on October 1, 2002. The Committee also includes

$29,000,000 as reimbursements to the Postal Service for prior year

reimbursement shortfalls due to insufficient appropriations and

rate phasing provisions of the Revenue Forgone Act of 1993. The

balance of the funds appropriated, $67,093,000, reflects the advance appropriation provided in fiscal year 2001.

FINANCIAL CONDITION OF THE US POSTAL SERVICE

The Committee is extremely concerned by the current financial

status of the US Postal Service (USPS), with current estimates projecting a deficit of between $2–3 billion during fiscal year 2001 and

$3.5 billion in fiscal year 2002. Although the Committee understands that this deficit reflects a number of unanticipated factors

such as rising energy costs, labor costs, and reduced mail volume,

the Committee believes that deficits of this magnitude are unacceptable. The Committee is also aware that the General Accounting

Office has placed the USPS on its high-risk list due to the Service’s

operational and financial challenges.

The Committee understands that the USPS is considering a

number of options to reduce projected deficits, increase revenue,

and control future costs, including an ongoing review of Saturday

mail delivery, postal rate increases and the consolidation of postal

facilities. The Committee is extremely concerned by reports that

the USPS is considering the termination of Saturday mail delivery,

the closing of small post offices and additional rate increases as

both revenue generating and cost-saving mechanisms. The Committee directs the USPS to submit a copy of all reviews related to

these matters upon their completion to the House Committee on

Appropriations and the House Committee on Government Reform.

The Committee believes that the goal of maintaining universal

service at uniform rates from self-supporting postal revenues is in

jeopardy within the current financial and operational structure of

41

the USPS. The Committee strongly supports on-going efforts by the

House Committee on Government Reform to achieve comprehensive postal service reform and believes that such reform efforts are

central to the ability of the USPS to efficiently manage its resources. The Committee is disappointed that the Administration

has not taken a more active role in both postal service reform and

the financial viability of the USPS. The Committee believes that

these issues are of national significance and deserve the active participation of the Administration.

POSTAL SERVICE WEATHER EMERGENCY POLICIES AND PRACTICES

In its report last year (H. Rpt. 106–756), the Committee expressed its concern that during Hurricanes Irene and Floyd, the

US Postal Service may have put the health and safety of South

Florida postal employees at risk by continuing business as usual

for an unreasonable period and failing to curtail postal operations

in a timely manner. As a result of that concern, the Committee

urged the U.S. Postal Service to report to the Committee, by October 1, 2000, on its weather emergency policies and practices and

to adopt a policy and practice of following the recommendations

and directives of federal, state and local emergency management

and weather authorities in all locations served by the Postal Service when weather emergencies arise.

Despite this request, the Postal Service did not report to the

Committee, nor does it appear that it has adopted a policy and

practice of following the recommendations and directives of federal,

state and local emergency management and weather authorities in

all locations served by the US Postal Service when weather emergencies arise.

The Committee continues to believe that the health and safety

of postal employees must never be put at risk in order to deliver

the mail. Thus, the Committee directs the Postal Service to report

to the Committee by October 1, 2001, on its weather emergency

policies and practices, and strongly urges the Postal Service to

adopt a policy and practice of following the recommendations and

directives of federal, state and local emergency management and

weather authorities in all locations served by the US Postal Service

when weather emergencies arise.

In its October 1, 2001 report, the US Postal Service shall describe any variation between US Postal Service weather emergency

policies and practices and those used by federal, state, and local

emergency management and weather authorities, including the justification for each variation and shall indicate whether it will agree

to follow the recommendations and directives of federal, state and

local emergency management and weather authorities in all locations served by the US Postal Service when weather emergencies

arise.

INBOUND AND OUTBOUND MAIL INSPECTIONS

In 2000, the House Treasury, Postal Service and General Government Appropriations Subcommittee expressed concern about the

U.S. Customs Service’s inability to effectively screen items entering

and exiting the United States via the U.S. Postal Service. The Subcommittee recognizes the critical role that Customs plays in protecting our nation’s borders from illegal drugs and contraband,

42

money laundering, intellectual property violations, and other types

of fraud.

Last year, the fiscal year 2001 Treasury, Postal Service, and

General Government Appropriations included House report language that directed the U.S. Customs Service and U.S. Postal Service to jointly study and report on the problems and possible solutions affecting Customs’ ability to properly and effectively screen,

inspect, and review all parcels and packages entering the United

States.

The requested report is to address the issue of electronic manifests, timely collection of fees, and other issues of party in the

treatment of the Postal Service and private carriers by the Customs Service. This report is due to the appropriate authorizing and

appropriations committees within 180 days of enactment of the legislation.

A subsequent face-to-face meeting between Members of Congress,

Customs and the Postal Service, and resulting correspondence,

have further instructed the agencies to work toward a joint operating agreement to correct the anomaly that prevents Customs

from inspecting outbound items exiting the United States via the

Postal Service. Currently, Customs inspects items exiting the

United States via any mode of transport except the U.S. Postal

Service. The outcome of efforts to develop a joint operating agreement is desired within the same time frame as the report described

above.

Customs and the Postal Service have provided interim status reports at the request of various Members of the House of Representatives and the Senate as the two agencies have been working towards resolution of these issues. The Committee looks forward to

receiving the results of this final report.

KENNAN, WISCONSIN

The Committee is concerned about the postal needs of the citizens of Kennan, Wisconsin. The Committee supports the US Postal

Service’s effort to construct a new facility in Kennan to replace the

current deteriorating post office. The Committee recommends that

the US Postal Service evaluate the status of this effort and report

its findings to the Committee.

COLLEGEDALE, TENNESSEE

The Committee is concerned about the postal needs of

Collegedale, Tennessee, in Hamilton County, particularly that the

City has four different Postmasters: Collegedale, Ooltewah, McDonald, and Apison. This situation has led to zip code related problems. The Committee is also aware that the USPS could consolidate local mail routes in order to create a unique zip code for

Collegedale. The Committee recommends that the USPS evaluate

the need for a post office in Collegedale, Tennessee, by working

with local officials and community leaders. The Committee urges

the USPS to evaluate the proposal for a single Collegedale zip code

and report its findings to the Committee no later than December

1, 2001.

43

MEBANE, NORTH CAROLINA

The Committee is aware that the City of Mebane, North Carolina, is interested in acquiring the postal-owned building on Main

Street in Mebane, which has been vacated. The Committee encourages the Postal Service to work with the City to facilitate this acquisition.

CURRY, ALABAMA

The Committee is concerned about the postal needs of Curry,

Alabama, located in Walker County. The Committee recommends

that the US Postal Service evaluate the need for a post office in

Curry, Alabama, working with local officials and community leaders. The Committee further recommends that the US Postal Service report its findings to the Committee.

GADSDEN, ALABAMA

The Committee is concerned about the postal needs of Gadsden,

Alabama, located in Etowah County. The Committee recommends

that the US Postal Service evaluate the need for a larger post office

in Gadsden, Alabama, working with local officials and community

leaders. The Committee further recommends that the US Postal

Service report its findings to the Committee.

SNEAD, ALABAMA

The Committee is concerned about the postal needs of Snead,

Alabama, located in Etowah County. The Committee recommends

that the US Postal Service evaluate the need for a new post office

in Snead, Alabama, working with local officials and community

leaders. The Committee further recommends that the US Postal

Service report its findings to the Committee.

ROYAL OAKS, CALIFORNIA

The Committee is concerned about the postal needs of Royal

Oaks, California, located in Monterey County because the current

zip code does not correspond to the City’s jurisdictional boundaries.

This situation has led to delayed mail delivery, confusion when dispatching police and fire services, and other zip code related problems such as: mail order taxes, auto insurance ratings, and insurance coverage. Therefore, the Committee directs the Postal Service

to review the zip code related problems in Royal Oaks and report

its findings to the Committee.

POSTAL SERVICE EMPLOYEES IN PENNSYLVANIA

The Committee has received reports that USPS employees in

Pennsylvania have expressed a high level of concern and dissatisfaction with various aspects of their job. The Committee knows

the importance of resolving these claims of a high degree of frustration among the rural letter carriers, city letter carriers, and clerks

concerning management practices. The Committee directs the

USPS to look into the situation in Pennsylvania and report back

to the Committee by December 1, 2001.

44

PUEBLO WEST, COLORADO

The Committee is concerned about the postal needs of Pueblo

West, Colorado, located in Pueblo County. Pueblo West has experienced a 70% growth rate in the past decade, and its population of

17,200 is projected to double in the next five years, yet the community is still served by a small contract facility. The Committee recommends that the US Postal Service evaluate the need for a post

office in Pueblo West, Colorado, working with local officials and

community leaders. The Committee further recommends that the

US Postal Service report its findings to the Committee.

COOPERATIVE MAILING RULE

The Committee supports the work of the House Committee on

Government Reform to pass legislation correcting the current

USPS misinterpretation of the cooperative mailing rule. The Committee is disappointed with the interpretation of the cooperative

mailing rule rendered by the USPS. The Committee regrets that a

legislative clarification is necessary to resolve this issue.

TITLE III—EXECUTIVE OFFICE OF THE PRESIDENT AND

FUNDS APPROPRIATED TO THE PRESIDENT

COMPENSATION OF THE PRESIDENT AND THE WHITE HOUSE OFFICE

COMPENSATION OF THE PRESIDENT

Appropriation, fiscal year 2001 to date ............................................ $390,000

Budget estimate, fiscal year 2002 ..................................................... 450,000

Recommended in the bill ................................................................... 450,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +60,000

Budget Estimate, fiscal year 2002 ............................................. ............................

MISSION

These funds provide for the compensation of the President as

well as official expenses, as authorized by Title 3.

RECOMMENDATION

The Committee recommends an appropriation of $450,000 for

Compensation of the President, an increase of $60,000 from

amounts appropriated in fiscal year 2001 and the same as the

amount requested by the President. This increase fully funds the

additional costs of increasing compensation for the President to

$400,000, as authorized by Section 644 of Public Law 106–58.

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $53,171,000

Budget estimate, fiscal year 2002 ..................................................... 54,165,000

Recommended in the bill ................................................................... 54,651,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +1,480,000

Budget Estimate, fiscal year 2002 ............................................. +486,000

MISSION

The Salaries and Expenses account of the White House Office

supports staff and administrative services necessary for the direct

45

support of the President. This account also includes reimbursements to the White House Communications Agency.

RECOMMENDATION

The Committee recommends an appropriation of $54,651,000 for

the White House Office, $1,480,000 above the amounts appropriated in fiscal year 2001 and $486,000 above the amounts requested by the President. The Committee includes an increase of

$486,000 to cover the estimated costs of non-pay inflation during

fiscal year 2002.

EXECUTIVE RESIDENCE AT THE WHITE HOUSE

OPERATING EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $10,876,000

Budget estimate, fiscal year 2002 ..................................................... 11,914,000

Recommended in the bill ................................................................... 11,695,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +819,000

Budget Estimate, fiscal year 2002 ............................................. ¥219,000

MISSION

These funds provide for the care, maintenance, and operation of

the Executive Residence.

RECOMMENDATION

The Committee recommends an appropriation of $11,695,000 for

the operating expenses of the Executive Residence, an increase of

$819,000 from the amounts appropriated in fiscal year 2001 and a

decrease of $219,000 from the amounts requested by the President.

The Committee denies the President’s requested increase of

$214,000 for supplies and materials and notes that the Committee

increased the base appropriation for these requirements from

$450,000 to $748,000 in fiscal year 2001. The Committee further

denies the requested increase of $5,000 for historic furnishing and

notes that funding for this activity was increased from $5,000 to

$10,000 in fiscal year 2001. The Committee was informed that, as

of May of this year, only $114 had been obligated from the $10,000

appropriated; as such, the Committee does not believe that an increase of 50% is justified at this time.

WHITE HOUSE REPAIR AND RESTORATION

Appropriation, fiscal year 2001 to date ............................................ $966,000

Budget estimate, fiscal year 2002 ..................................................... 8,625,000

Recommended in the bill ................................................................... 8,625,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +7,659,000

Budget Estimate, fiscal year 2002 ............................................. ............................

MISSION

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

capital improvement projects at the Executive Residence at the

White House.

46

RECOMMENDATION

The Committee recommends an appropriation of $8,625,000 for White House Repair and Restoration, an increase of $7,659,000

from amounts appropriated in fiscal year 2001 and the same as the

amounts requested by the President.

APPROPRIATIONS JUSTIFICATIONS

The Committee is disappointed by the justification materials as

originally submitted by the National Park Service for White House

Repair and Restoration. The President has requested funds for 8

separate construction activities within this account, including the

2nd phase of repair for the communication system serving the East

Wing and the Executive Residence. Some are multi-year efforts requiring significant survey and design work prior to construction.

The Committee requested detailed information regarding the costs

and schedules of these projects and was disappointed by the vagueness of responses originally provided by the National Park Service.

Although subsequent information provided to the Committee

served to justify the appropriations request, the Committee remains concerned that the 8 separate projects, all of which will be

in various stages of completion throughout the fiscal year, may be

both difficult to manage as well as disruptive to Executive Residence operations.

For each project in excess of $100,000, with the exception of computer upgrades and software development, and prior to the obligation of any of the funds appropriated, the Committee directs the

National Park Service to submit a prospectus that includes, at minimum, a complete description of the project’s scope and design,

major work items to be completed, estimated total obligations by

activity (construction cost, design and review cost, management

and inspection), estimated construction schedules including start

and completion dates for both design and construction, and estimated construction cost by major work item.

SPECIAL ASSISTANCE TO THE PRESIDENT AND THE OFFICIAL

RESIDENCE OF THE VICE PRESIDENT

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $3,665,000

Budget estimate, fiscal year 2002 ..................................................... 3,896,000

Recommended in the bill ................................................................... 3,925,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +260,000

Budget Estimate, fiscal year 2002 ............................................. +29,000

MISSION

These funds support the official duties and functions of the Office

of the Vice President.

RECOMMENDATION

The Committee recommends an appropriation of $3,925,000 for

the Office of the Vice President, an increase of $260,000 from

amounts appropriated in fiscal year 2001 and an increase of

$29,000 from amounts requested by the President. The Committee

includes an increase of $29,000 to cover the cost of non-pay inflaVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00046 Fmt 6659 Sfmt 6602 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
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tion during fiscal year 2002. The Committee funds the requested

increase of $150,000 for 2 additional FTE within the Office of the

Vice President, bringing total FTE to 24.

OPERATING EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $353,000

Budget estimate, fiscal year 2002 ..................................................... 314,000

Recommended in the bill ................................................................... 318,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. ¥35,000

Budget Estimate, fiscal year 2002 ............................................. +4,000

MISSION

These funds support the care and operation of the Vice President’s residence and specifically support equipment, furnishings,

dining facilities, and services required to perform and discharge the

Vice President’s official duties, functions and obligations.

RECOMMENDATION

The Committee recommends an appropriation of $318,000 for the

Operating Expenses of the Vice President’s residence, a decrease of

$35,000 from amounts appropriated in fiscal year 2001 and an increase of $4,000 from amounts requested by the President. The

Committee includes an increase of $4,000 for estimated costs of

non-pay inflation during fiscal year 2002. The Committee also includes two new general provisions (Sections 633 and 634), as requested by the President, regarding the care and operations of the

Official Residence.

COUNCIL OF ECONOMIC ADVISERS

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $4,101,000

Budget estimate, fiscal year 2002 ..................................................... 4,192,000

Recommended in the bill ................................................................... 4,211,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +110,000

Budget Estimate, fiscal year 2002 ............................................. +19,000

MISSION

The Council of Economic Advisers analyzes the national economy

and its various segments, advises the President on economic developments, recommends policies for economic growth and stability,

appraises economic programs and policies of the Federal Government, and assists in preparation of the annual Economic Report of

the President to Congress.

RECOMMENDATION

The Committee recommends an appropriation of $4,211,000 for

the Council of Economic Advisers, an increase of $110,000 from

amounts appropriated in fiscal year 2001 and an increase of

$19,000 from amounts requested by the President. The Committee

includes an increase of $19,000 for estimated costs of non-pay inflation in fiscal year 2002.

48

OFFICE OF POLICY DEVELOPMENT

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $4,023,000

Budget estimate, fiscal year 2002 ..................................................... 4,119,000

Recommended in the bill ................................................................... 4,142,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +119,000

Budget Estimate, fiscal year 2002 ............................................. +23,000

MISSION

The Office of Policy Development supports the National Economic Council and the Domestic Policy Council in carrying out

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

RECOMMENDATION

The Committee recommends an appropriation of $4,142,000 for

the Office of Policy Development, an increase of $119,000 from

amounts appropriated in fiscal year 2001 and an increase of

$23,000 from amounts requested by the President. As compared to

the President’s request, the Committee includes an increase of

$23,000 for the estimated costs of non-pay inflation in fiscal year

2002.

NATIONAL SECURITY COUNCIL

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $7,149,000

Budget estimate, fiscal year 2002 ..................................................... 7,447,000

Recommended in the bill ................................................................... 7,494,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +345,000

Budget Estimate, fiscal year 2002 ............................................. +47,000

MISSION

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

RECOMMENDATION

The Committee recommends an appropriation of $7,494,000 for

the National Security Council, an increase of $345,000 from

amounts appropriated in fiscal year 2001 and an increase of

$47,000 above the amounts requested by the President. The Committee includes an increase of $47,000 for estimated costs of nonpay inflation in fiscal year 2002.

49

OFFICE OF ADMINISTRATION

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $43,641,000

Budget estimate, fiscal year 2002 ..................................................... 46,032,000

Recommended in the bill ................................................................... 46,955,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +3,314,000

Budget Estimate, fiscal year 2002 ............................................. +923,000

MISSION

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

management systems support, and general office services.

RECOMMENDATION

The Committee recommends an appropriation of $46,955,000 for

the Office of Administration, an increase of $3,314,000 from

amounts appropriated in fiscal year 2001 and an increase of

$923,000 from amounts requested by the President. Although the

Committee appreciates the President’s efforts to control costs within the Executive Office of the President (EOP), the Committee is

concerned that the proposed funding levels for the Office of Administration (OA) may be inadequate to fully support authorized activities and, specifically, the requirements of the Chief Financial Officers Act. As such, in comparison to amounts requested by the

President, the Committee includes $377,000 for estimated costs of

non-pay inflation in fiscal year 2002, $216,000 to annualize the

costs of the office of the Chief Financial Officer, and $330,000 to

fully fund the required formal audit of financial statements within

the EOP.

CAPITAL INVESTMENT PLAN

For the past 5 years, the Committee has followed closely the

EOP’s efforts to develop and implement a comprehensive information technology modernization system. To date, the Committee has

appropriated $61,704,000 for these efforts, including $29,791,000

for Y2K compliance and $13,200,000 for on-going e-mail reconstruction efforts. The Committee is extremely disappointed to learn that

the Capital Investment Plan (CIP) that was submitted to it was

based on an incomplete and inadequate enterprise architecture and

is missing critical elements such as a capital planning and investment control process and a strategic plan. The Committee recognizes that each new Administration inherits the work of its predecessor, and believes that this vital information system should be

designed in a manner easily understood and used by subsequent

Administrations. The Committee is also concerned that the EOP

may not have the requisite in-house expertise to complete this

project successfully and highly recommends that OA consider expanding the use of external expertise for all future work on this

project.

The Committee has fully funded the President’s request for information technology. Of the amounts provided, $7,300,000 is made

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available on October 1, 2001, for the following purposes: Core Infrastructure (Cabling, Network hardware/software, Data Center,

Internet/security, Travel support/equipment) and Development and

Modernization (Desktop Operating Software and Calendaring/eforms). The balance of $4,475,000 is withheld pending the submission of a report that (1) includes an Enterprise Architecture, as defined, in OMB Circular A–130 and the Federal Chief Information

Officers’ guidance; (2) presents an Information Technology (IT)

Human Capital Plan, to include an inventory of current IT workforce knowledge and skills, a definition of needed IT knowledge and

skills, a gap analysis of any shortfalls, and a plan for addressing

any shortfalls; (3) presents a capital investment plan for implementing the Enterprise Architecture; (4) includes a description of

the IT capital planning and investment control process; and (5) is

reviewed and approved by OMB, is reviewed by the General Accounting Office, and is approved by the House Committee on Appropriations.

CHIEF FINANCIAL OFFICER

The Committee is pleased with on-going progress to hire a Chief

Financial Officer (CFO) within the EOP and has provided full funding for the CFO in fiscal year 2002, including estimated costs for

the auditable financial statements and formal financial statements.

The Committee directs the OA to provide a report identifying the

schedule for accomplishing the preparation of auditable financial

statements, by EOP agency, as well as a schedule for preparation

of the financial audit. This report should identify estimated and actual obligations by activity and delivered to the Committee no later

than 30 days after enactment of this Act.

OFFICE OF MANAGEMENT AND BUDGET

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $68,635,000

Budget estimate, fiscal year 2002 ..................................................... 70,521,000

Recommended in the bill ................................................................... 70,752,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +2,117,000

Budget Estimate, fiscal year 2002 ............................................. +231,000

MISSION

The Office of Management and Budget assists the President in

the discharge of budgetary, economic, management, and other executive responsibilities.

RECOMMENDATION

The Committee recommends an appropriation of $70,752,000 for

the Office of Management and Budget, an increase of $2,117,000

from amounts appropriated in fiscal year 2001 and an increase of

$231,000 from amounts requested by the President. As compared

to the President’s request, the Committee includes $233,000 for the

estimated costs of non-pay inflation in fiscal year 2002 and a reduction of $2,000 from amounts requested for representation allowances. The Committee has fenced a portion of the funds appropriated to the Office of Information and Regulatory Affairs (OIRA)

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until such time as the Office of Management and Budget addresses

the Committee’s concerns regarding the implementation of Executive Order 13166, Improving Access to Services for Persons with

Limited English Proficiency, as discussed below.

REPRESENTATION ALLOWANCES

As requested by the President, the Committee has agreed to establish a representation allowance for the Office of Management

and Budget (OMB); however, the Committee provides $3,000 instead of the $5,000 requested. This amount is consistent with

amounts provided to the Congressional Budget Office. The Committee directs OMB to submit, as part of its fiscal year 2003 budget

submission, an itemization of all obligations made from this account, including a description of the official purpose of each obligation.

EXECUTIVE OFFICE OF THE PRESIDENT ACCOUNT CONSOLIDATION

The Administration has proposed to consolidate eighteen separate appropriations accounts within the Executive Office of the

President (EOP) into a single annual appropriation in order to provide the President with maximum flexibility in allocating resources, simplify the current accounting structure and streamline

common administrative functions, such as procurement. The Committee supports these objectives. However, the Committee has a

number of concerns that make it difficult to support the proposed

consolidation at this time.

In fiscal year 2000, the Committee established a Chief Financial

Officer (CFO) within the EOP to analyze the EOP’s accounting systems and reports, examine internal financial management control

procedures, review compliance with applicable government-wide accounting standards, and identify areas needing improvement. The

Committee believes that the CFO’s review of EOP’s financial management systems should be considered as part of any proposal to

consolidate appropriations accounts; absent that review, the Committee believes that the proposed consolidation is premature.

The Committee believes that current law provides the necessary

authority to achieve economies of scale for common goods and services. In particular, the Administration has been unable to illustrate

why the authorities provided by 31 U.S.C., Section 1535, have not

been used in the past and why they are insufficient to meet current

and future EOP objectives. Further, the Committee notes that statutory transfer authority would provide the desired flexibility in

managing EOP staff and resources and does not agree with the Administration that transfer authority would create complications. In

addition, the Committee believes that future consolidation proposals should include specific information detailing and quantifying

the economies of scale that would be achieved by merging appropriations accounts.

The Committee is also concerned that the proposed account consolidation would adversely affect oversight of specific statutory responsibilities assigned to various EOP offices, including the Council

on Environmental Quality, the National Security Council, the Office of Management and Budget, and the Office of Science and

Technology Policy. The Committee believes that the current account structure ensures that adequate resources are provided to

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each agency, that sufficient resources are devoted to support the

unique missions and responsibilities of these distinct organizations,

and that Congressional oversight is maintained.

The Committee is encouraged by the EOP’s intent to achieve

economies of scale and supports the President’s desires to achieve

flexibility; the Committee looks forward to working with the EOP

to achieve these goals during the upcoming fiscal year.

OMB’S MANAGEMENT RESPONSIBILITIES

The Committee is pleased by the boldness of the Administration’s

opening section, ‘‘Improving Government Performance,’’ in its fiscal

year 2002 budget submission. The ability to deliver improvements

will greatly depend on the efforts and guidance of OMB, with its

broad superintending authority over the multitude of agencies

within the Executive Branch. That hoped-for performance, however, is challenged both by a slow start on this year’s budget due

to the transition, and by the expectation that OMB will not launch

many of its reviews until the new fiscal year starts in October. As

the budget proposal stated, ‘‘This task will not be easy and it will

take time’’. The Committee supports the goals stated in the Administration’s

budget, which expressly calls for re-examining the role of the Federal government with three objectives for improving performance:

becoming citizen centered, not bureaucracy centered; results-oriented, not process-oriented; and market-based, actively promoting

innovation and competition. The intended tasks for accomplishing

this include linking budget and management decisions to performance, ensuring financial accountability, eliminating duplicative and

ineffective programs, using capital planning to improve performance, and opening government activities to competition. Many of

these tasks are not new but rather expand upon existing legislation

intended to improve government performance, including the Government Performance and Results Act and the Clinger-Cohen Act.

What is new is the President’s proposal to reexamine the role of

the Federal government and to create an aggressive management

agenda. OMB, as staff to the President, has played, and will continue to play, a key leadership role both to develop and to implement this agenda.

In this regard, the Committee remains concerned by OMB’s lack

of leadership in the management of federal agencies. Too often its

focus is on budgeting but not on managing. In reviewing OMB’s FY

2000 Annual Performance Report, the Committee notes the absence

of quantifiable measures of performance associated with OMB’s

management responsibilities. The Committee is also struck by certain inconsistencies. For instance, although the Performance Report states that OMB ‘‘worked with agencies . . . to manage . . .

the health of the Government’s IT portfolio’’ a recent report by the

Senate Committee on Governmental Affairs (Senate Report 106–

64) found that seventeen of twenty-four agencies and departments

did not have a complete and comprehensive IT capital planning

and investment control process. The Committee questions not only

the extent to which OMB has worked with agencies as it relates

to IT portfolios but also its success.

The Committee believes that OMB must take a more aggressive

leadership role in the coordination of agency efforts to implement

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the Government Performance and Results Act, the Chief Financial

Officers Act and the Clinger-Cohen Act. The Committee also remains extremely disappointed in OMB’s implementation of the Paperwork Reduction Act, the Congressional Review Act and the review of agency regulatory proposals.

In fairness, it should be stressed that OMB has new leadership

and certainly has many highly capable individuals to meet these

challenges. The Committee is attempting to outline a clear assessment of how difficult those challenges are as a necessary part of

working with OMB to surmount them.

The Committee believes that the Administration’s management

agenda should be incorporated into OMB’s annual performance

plan and should include specific and measurable goals. The Committee notes that the General Accounting Office (GAO) has identified 22 high risk areas within the federal government, those programs, activities, and operations that are vulnerable to fraud,

waste, abuse and mismanagement. Given OMB’s superintending

authority over Executive Branch agencies, the Committee believes

that OMB plays a critical role in addressing these and other

vulnerabilities within federal agencies. The Committee will look to

OMB’s Fiscal Year 2001 Annual Performance Report to determine

the extent to which OMB has included quantifiable goals that

measure its success at implementing the President’s management

agenda.

LIMITED ENGLISH PROFICIENCY

The Committee is concerned that OMB has made no appreciable

effort to review both the regulatory burden and the budgetary impact of agency implementation of Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency

(LEP). The Committee understands that agencies are required to

develop policy guidance to implement this Executive Order and

that this guidance is to be submitted to the Department of Justice.

OMB has informed the Committee that, because this Executive

Order is being implemented through policy guidance and not regulation, OMB has had a limited role in review of EO 13166 and its

implementation.

The Committee believes that the difference between ‘‘policy guidance’’ and ‘‘regulation’’ is more than a technical distinction, and

further understands OMB’s responsibilities in regard to reviewing

‘‘significant regulatory action’’. The Committee believes that, for

the practical purpose of implementing EO 13166, there is virtually

no distinction between ‘‘policy guidance’’ and ‘‘regulatory action’’. In

fact, the cumulative effect of agency policy guidance regarding EO

13166 clearly meets the definition of ‘‘significant regulatory action’’

and should be considered as such for the purpose of OMB’s responsibilities.

The Committee further believes that, even if the EO impact only

generated internal costs, it would create new federal expenditures

that have not been expressly authorized or approved by Congress.

However, the EO requirements extend far beyond placing internal

burdens upon federal agencies and workers. The Committee is concerned that OMB has not assessed the budgetary impact of this Executive Order on entitlements, grants, loan programs and contracts. Additionally, the Committee is concerned that there has

54

been no assessment of the burden EO 13166 will create for state

and local governments, private businesses and non-profit organizations.

The Committee understands that OMB is in the process of considering how to assess the costs that may be imposed on recipients

of federal financial assistance as a result of EO 13166 and is concerned that these cost burdens may be imposed on agencies and the

private sector before OMB has thoroughly evaluated them. The

Committee has fenced a portion of the funds available to the Office

of Information and Regulatory Affairs pending a submission by

OMB of the total costs of implementing EO 13166. The Committee

directs that this report include the cost to each of the following:

federal, state and local governments as well as those imposed on

recipients of federal financial assistance and upon the overall private sector.

MAKING FEDERAL INFORMATION USER FRIENDLY

The rapidly-expanding information made publicly available by

Federal agencies via the Internet is a positive development in improving public disclosure, understanding and accountability. The

efforts of many Federal agencies in this are worthy of praise. However, it often remains difficult for the public to comprehend fully,

in part because the great volume of material must often be re-organized in different ways to be useful to different persons. Information from different Federal sources—and in particular information

involving spending—can be compared and correlated only if it can

be properly matched. Matching is often difficult because different

names or labels may be used to mean the same thing, and similarappearing names or labels may be used to mean different things.

Internally, Federal agencies apply identifying codes to resolve this

and to distinguish among entities, accounts, etc. (For example:

agency codes, function codes, program codes, report numbers, contract and grant numbers, identifying numbers of vendors, contractors, grantees, sub-vendors, subcontractors, sub-grantees, etc.) By

March 1, 2002, the Office of Management and Budget is directed

to establish and publish guidelines to require all Federal agencies

to include the existing non-confidential federal identifying codes as

part of information on their websites and their public documents

in a manner that permits ease-of-use for persons wishing to compare and correlate Federal data.

LOAN SUBSIDY RATES

The Committee is concerned that the subsidy models for the Section 7(a) General Business Loan and the Section 504 Certified Development Company Loan programs operated by the Small Business Administration (SBA) have repeatedly resulted in over-estimated losses in those programs. Since implementation of the Credit

Reform Act, there have been nine years of subsidy rate re-estimates that compare projections against actual experience. According to the Congressional Budget Office, the budget re-estimates for

the 7(a) loan program alone have totaled $1.258 billion in downward re-estimates representing excess funds returned to Treasury.

Inaccurate subsidy models result in both excessive fees and unnecessary appropriations.

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The Committee has included bill language directing OMB to

work with the SBA to develop subsidy estimates that track the actual default experience in those programs since the implementation

of the Credit Reform Act of 1992. The Committee further requires

that these subsidy estimates be included in the President’s fiscal

year 2003 budget submission and to report on the progress of developing these efforts to the House Committee on Appropriations

and the House Committee on Small Business.

APPORTIONMENT FOR INTERNATIONAL FOOD ASSISTANCE PROGRAMS

The Committee remains concerned that the Office of Management and Budget is inappropriately involved in the detailed review

of applications filed with the Department of Agriculture for international food assistance, particularly as a member of the Food Assistance Policy Council. While OMB does have a responsibility to

be certain that funds are expended for the purposes for which they

are appropriated, OMB’s role is not to interfere with the policy determinations made by USDA, including the policy decision to allow

for the monetization of commodities. The allocation and review

process that has been in place has resulted in delays in the provision of food assistance that has hampered efforts to provide food assistance around the world in a timely fashion. It has also hindered

USDA’s ability to acquire commodities in a fashion designed to

have a positive effect on the prices received by producers. The Committee directs OMB to apportion not less than 75% of funds for all

of the food assistance programs operated by USDA no later than

December 31, 2001, and to restrict its involvement with the Food

Assistance Policy Council to administrative monitoring.

OFFICE OF NATIONAL DRUG CONTROL POLICY

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $24,704,530

Budget estimate, fiscal year 2002 ..................................................... 25,100,000

Recommended in the bill ................................................................... 25,267,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +562,470

Budget Estimate, fiscal year 2002 ............................................. +167,000

MISSION

The Office of National Drug Control Policy, established by the

Anti-Drug Abuse Act of 1988, is charged with developing policies,

objectives and priorities for the National Drug Control Program as

defined by the Act and Executive Order 12880, and by the Office

of National Drug Control Policy Reauthorization Act of 1998.

RECOMMENDATION

The Committee recommends an appropriation of $25,267,000 for

the Office of National Drug Control Policy, an increase of $562,470

above the fiscal year 2001 enacted level and an increase of

$167,000 above the President’s request. The increase above the

President’s request is for non-pay inflation.

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STRATEGIC INFORMATION AND POLICY GUIDANCE

The Committee strongly supports continued efforts to develop information on the flows of various drugs, the population and treatment of chronic users, and the development of both strategic and

detailed information about the structure and scale of the underground economy and social structures that make illicit drug use

and trafficking possible. ONDCP is encouraged to keep the Committee fully informed about progress in mapping such flows of

drugs and in the development of systems such as the National

Treatment Outcome Monitoring System (NTOMS).

COUNTERDRUG ENFORCEMENT IN U.S. NATIONAL FORESTS

Last year, the Committee directed ONDCP, in consultation with

the U.S. Forest Service, the Bureau of Land Management, and

other relevant agencies, to review the problems of marijuana cultivation and controlled-substance production in our national forests

and to submit a plan to address them, including legislative and

funding recommendations, by February 1, 2001. The Committee

continues to await this report and is very disappointed that it has

not yet been provided. If the report is not submitted prior to enactment of this Act, the Committee expects ONDCP to submit a written explanation regarding the status of the report within 30 days

of enactment. The Committee directs ONDCP to submit the completed report within 90 days of enactment of this legislation.

COUNTERDRUG TECHNOLOGY ASSESSMENT CENTER

Appropriation, fiscal year 2001 to date ............................................ $35,973,683

Budget estimate, fiscal year 2002 ..................................................... 40,000,000

Recommended in the bill ................................................................... 40,000,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +4,026,317

Budget Estimate, fiscal year 2002 ............................................. ............................

MISSION

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

RECOMMENDATION

The Committee recommends an appropriation of $40,000,000 for

the Counterdrug Technology Assessment Center, an increase of

$4,026,317 above the fiscal year 2001 enacted level and the same

as the President’s request. The Committee directs that this appro- priation reflect a funding level of $22,236,000 for the technology

transfer program, $236,000 above the President’s request, and $17,764,000 for basic R&D, which is the fiscal year 2001 funding

level.

CTAC TECHNOLOGY TRANSFER PROGRAM

The CTAC technology transfer program has been enormously

successful, demonstrating the impact that can be achieved with a

relatively small level of funding by transferring mature, tested

technology that has practical and immediate usefulness to local

and State law enforcement agencies that would otherwise not have

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access to such tools. The Committee therefore includes $22,236,000,

a $4,026,150 increase over the level funded in fiscal year 2001. As

of the end of fiscal year 2000, there had been 1,808 deliveries of

targeted, relatively low-cost technology to 1,325 State and local law

enforcement agencies nationwide. In fiscal year 2001, there are

1,234 outstanding requests for law enforcement technology transfers to date, and the expectation that over 800 of these can be met

this year. The Committee believes that this additional funding will

help increase the capability of CTAC to meet this need for technology to help leverage the ability of chronically short-staffed law

enforcement agencies to take on major drug crime at the local level.

FEDERAL DRUG CONTROL PROGRAMS

HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM

Appropriation, fiscal year 2001 to date ............................................ $206,045,700

Budget estimate, fiscal year 2002 ..................................................... 206,350,000

Recommended in the bill ................................................................... 231,500,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +25,454,300

Budget Estimate, fiscal year 2002 ............................................. +25,150,000

MISSION

The High Intensity Drug Trafficking Areas (HIDTA) Program

was established by the Director, ONDCP pursuant to Section 1005

of the Anti-Drug Abuse Act of 1988, and now as reauthorized by

21 U.S.C. 1706 to provide assistance to Federal and State and local

law enforcement entities operating in those areas most adversely

affected by drug trafficking.

RECOMMENDATION

The Committee recommends an appropriation of $231,500,000 for

the High Intensity Drug Trafficking Areas Program, an increase of

$25,454,300 above the fiscal year 2001 enacted level and an increase of $25,150,000 above the President’s request. The increase

above the President’s request is to meet requirements to fully fund

existing HIDTA program activity, to expand existing HIDTAs

where such expansion is justified, and to fund new HIDTAs as appropriate. The Committee provides that HIDTAs existing in FY

2001 shall receive funding equal to the FY 2001 level. However, the

Committee has continued language that permits ONDCP to adjust

such spending levels if performance indicates that an increase or

decrease in funding is warranted.

The Committee supports a vigorous HIDTA program and is

aware of areas facing increased drug trafficking that may be appropriate candidates for designation as a HIDTA, inclusion in an existing HIDTA, or increased funding. As ONDCP reviews candidates

for new HIDTA funding, the Committee recommends that it consider the following: expansion of the North Texas HIDTA to include

Oklahoma counties, and of the Northwest HIDTA to include the

counties of Southwest and Eastern Washington; increased funding

for the Southeast Michigan HIDTA; designation of an Arkansas

HIDTA; designation of a North Carolina HIDTA; increased funding

for Arizona in the Southwest border HIDTA; and an increase in

funding for the Central Florida, West Texas, Appalachian, Lake

County, Indiana, and Gulf Coast HIDTAs. The Committee recogVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00057 Fmt 6659 Sfmt 6602 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
58

nizes the strong pressure to add new HIDTAs and expand those

currently existing, and underscores the need for performance based

management ensuring that HIDTAs that demonstrate performance

and need are provided adequate resources.

CENTRAL FLORIDA HIDTA

The Central Florida HIDTA was established in 1998 to meet the

rising threat of drug trafficking coming from the Caribbean and

South America. As the level of drugs transiting through this area

have grown in recent years, HIDTA funding has remained at the

basic level, with only a $22,000 increase in fiscal year 2001 to provide intelligence-sharing infrastructure. The region would especially benefit from joint program operations and support available

from the HIDTA, such as for additional overtime costs of task

forces, network communications, and translation services. The

Committee therefore directs ONDCP to examine these requirements, including providing additional funds of $2,500,000 to support these needs, and to report back to the Committee within 90

days of enactment of this Act on implementation of this directive.

HIDTA PERFORMANCE MANAGEMENT

Performance measures for HIDTAs have been, and continue to

be, an area of focus for the Committee. As previously noted, the

ability to match funding needs against budgets depends on reliable

and consistent methodology for performance measurement and

management. ONDCP has indicated that fifty-six developmental

standards are currently being used by HIDTA executive boards to

guide their decisions and improve the effectiveness of law enforcement efforts. The Committee strongly encourages continued efforts

on the part of ONDCP to develop and refine standards that provide

reliable measures which can be easily reported, and will serve as

a basis for sound budget decisions. The goal should be to have the

ability to assess overall program performance and to set priorities

for resource allocation within and between HIDTAs.

HIDTA RESPONSE TO METHAMPHETAMINE PRODUCTION

The Committee remains extremely concerned about the manufacture and distribution of methamphetamines. ONDCP reports that

methamphetamines are the most prevalent synthetic drug clandestinely manufactured in the United States. It is highly addictive and

can be manufactured using products commercially available. Because of this ease of manufacture, small towns and rural areas are

popular targets of manufacturing and distribution. The Committee

endorses efforts to focus on those areas most significantly affected

by methamphetamine manufacture and distribution and strongly

encourages ONDCP, as it makes its decisions to designate new

HIDTAs or fund existing ones, to target methamphetamines. The

Committee believes that this would be a productive use of funding

and an extremely beneficial tool in the implementation of the national drug control strategy.

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SPECIAL FORFEITURE FUND

Appropriation, fiscal year 2001 to date ............................................ $233,086,080

Budget estimate, fiscal year 2002 ..................................................... 247,600,000

Recommended in the bill ................................................................... 238,600,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +5,513,920

Budget Estimate, fiscal year 2002 ............................................. ¥9,000,000

MISSION

The Special Forfeiture Fund was established by the Anti-Drug

Abuse Act of 1988, as amended, to be administered by the Director

of the Office of National Drug Control Policy. While the fund was

originally authorized to receive deposits from the Department of

Justice Assets Forfeiture Fund and the Treasury Forfeiture Fund,

its current source of funding is direct appropriations.

RECOMMENDATION

The Committee recommends an appropriation of $238,600,000 for

the Special Forfeiture Fund, an increase of $5,513,920 above the

fiscal year 2001 enacted level and a decrease of $9,000,000 below

the President’s request. The recommendation includes no funding

for the proposed Parents for a Drug-Free Future initiative, and

$180,000,000 for the National Youth Anti-Drug Media Campaign,

$5,000,000 below the President’s request. The Committee also includes $50,600,000 for implementation of the Drug Free Communities Act, $3,000,000 for the Counterdrug Intelligence Executive

Secretariat, and $1,000,000 for the National Drug Court Institute.

The Committee also recommends $4,000,000 for the US AntiDoping Agency, an increase of $1,000,000 above the President’s request.

NATIONAL YOUTH ANTI-DRUG MEDIA CAMPAIGN

The Committee provides $180,000,000 for the National Youth

Anti-Drug Media Campaign (NYAMC), pursuant to 21 U.S.C.

1801–1804. This is $5,000,000 below the level in fiscal years 1999–

2001. The impact of this program has not been clearly determined

and is difficult to measure. The Committee is watching closely the

reports on the impact of the campaign, both from long-term analyses such as that being conducted under the auspices of the National Institute of Drug Abuse (NIDA) as well as more anecdotal

reports from community drug coalitions. Campaign ads have received notice in the general media, and the Committee is aware of

local efforts to leverage their impact, thereby helping increase

awareness of and sensitivity to drug use. In addition, the Committee is aware of some promising trends in indicators of youth attitudes and behavior (although some, such as increasing prevalence

of such club drugs as ecstasy, are discouraging). However, the statistical significance of such awareness and the campaign’s impact

on behavior on a national or even local level has yet to be adequately validated. The Committee will continue to scrutinize such

information with the expectation that statistically significant results, demonstrating how effective the campaign has been, will be

available within the foreseeable future.

The Committee is aware that ONDCP developed a corporate

sponsorship strategy for the campaign last year, and would like to

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know more about the feasibility and success of efforts to enlist direct, private support and contributions to the campaign. The Committee therefore directs ONDCP to report not later than 90 days

after enactment on the performance of its sponsorship strategy, as

well as corporate cooperation, including an assessment of the potential contribution such a strategy has or could make to increase

the resources for the campaign and leverage its impact. In the absence of clear measurements of performance, the ability of this program to attract private support may prove a key indicator of its

value.

CONTRACT PERFORMANCE AND MANAGEMENT FOR THE YOUTH MEDIA

CAMPAIGN

The Committee has received the General Accounting Office

(GAO) review of the advertising contract for phase III of the National Youth Anti-Drug Media Campaign (NYAMC) and is disappointed to learn of weaknesses in contract performance and management. GAO concluded that there was a failure on the part of

both the contractor and the government to ensure that a proper

billing and accounting system was in place and adhered to, as well

as poor contract management of key elements of the award and administration of the advertising contract. The Committee is aware

that responsibility for contract management has been transferred

from HHS to the Navy, which is conducting its own audit of contracts, and that the contractor has agreed to restructure its accounting system to comply with government cost accounting standards. However, to ensure that there be no repetition of such mistakes, the Committee fully supports the recommendations made by

GAO. The Committee therefore directs ONDCP to work with its

Contracting Officer’s Technical Representative (COTR), the Navy,

to: (1) review the contractor’s invoices and determine how much the

government overpaid or should reimburse the contractor; (2) ensure

that the contractor has a cost accounting system needed for full

contract performance; and (3) coordinate the roles of ONDCP’s contracting officer and the COTR and ensure that such roles are effectively carried out. The Committee also directs that the Navy not

exercise the next option year of the contract with the current contractor until that contractor has restructured its accounting system

to meet government requirements, and ONDCP has assessed both

the contractor’s administrative as well as technical performance.

The Committee recognizes that this is an evolving situation, given

that the GAO report was only recently published, and because

ONDCP is still awaiting new policy leadership.

COUNTERDRUG INTELLIGENCE PROGRAMS

The Committee strongly supports intensifying efforts to develop

useful strategic and tactical intelligence to attack drug trafficking

and organizations, and to leverage the resources available to law

enforcement and other agencies charged with stopping drug trafficking. The Committee therefore continues its funding of the

Counterdrug Intelligence Executive Secretariat (CDX) in its support of the interagency Counterdrug Intelligence Coordinating

Group. The Committee directs ONDCP to report within 90 days of

enactment on the status of implementation of the General

Counterdrug Intelligence Plan.

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FUNDS APPROPRIATED TO THE PRESIDENT

UNANTICIPATED NEEDS

Appropriation, fiscal year 2001 to date ............................................ $3,492,000

Budget estimate, fiscal year 2002 ..................................................... 1,000,000

Recommended in the bill ................................................................... 1,000,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. ¥2,492,000

Budget Estimate, fiscal year 2002 ............................................. ............................

MISSION

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

RECOMMENDATION

The Committee recommends an appropriation of $1,000,000, a

decrease of $2,492,000 from amounts appropriated in fiscal year

2001 and the same as the amount requested by the President.

TITLE IV—INDEPENDENT AGENCIES

COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR

SEVERELY DISABLED

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $4,149,000

Budget estimate, fiscal year 2002 ..................................................... 4,498,000

Recommended in the bill ................................................................... 4,609,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +460,000

Budget Estimate, fiscal year 2002 ............................................. +111,000

MISSION

The Committee for Purchase From People Who Are Blind or Severely Disabled was established by the Wagner-O’Day Act of 1938,

as amended. Its primary objective is to increase the employment

opportunities for people who are blind or have other severe disabilities and, whenever possible, to prepare them to engage in competitive employment.

RECOMMENDATION

The Committee recommends an appropriation of $4,609,000 for

the Committee for Purchase From People Who Are Blind or Severely Disabled, an increase of $460,000 from amounts appropriated in fiscal year 2001 and an increase of $111,000 from

amounts requested by the President. The Committee’s recommendation includes an increase of $111,000 for the estimated

costs of non-pay inflation.

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FEDERAL ELECTION COMMISSION

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $40,410,900

Budget estimate, fiscal year 2002 ..................................................... 41,410,900

Recommended in the bill ................................................................... 43,223,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +2,812,100

Budget Estimate, fiscal year 2002 ............................................. +1,812,100

MISSION

The Commission administers the disclosure of campaign finance

information, enforces limitations on contributions and expenditures, supervises the public funding of Presidential elections, and

performs other tasks related to Federal elections.

RECOMMENDATION

The Committee recommends an appropriation of $43,223,000 for

the Federal Election Commission (FEC), an increase of $2,812,100

from amounts appropriated in fiscal year 2001 and an increase of

$1,812,100 from amounts requested by the President. The Committee is disappointed to learn that, in preparation of the fiscal

year 2002 budget submission, the Office of Management and Budget (OMB) did not base the President’s recommended fiscal year

2002 budget for the FEC on a comprehensive review of FEC’s resource requirements but rather recommended an unspecified increase of $1,000,000. The Committee will continue to monitor

OMB’s process for managing the preparation of the President’s

budget and, in particular, it’s examination of agency programs and

resource requirements.

The Committee’s recommendation includes an increase of

$1,679,000 for personnel compensation and benefits, $708,100 for

the estimated costs of non-pay inflation, and $425,000 and 5 FTE

for the Data Systems Division to complete and support current and

future information technology initiatives. The Committee has included a new general provision (Section 641) extending authority

for FEC to assess administrative fines for straightforward violations of reporting deadlines; FEC’s authority is extended from December 31, 2001, to December 31, 2003.

ELECTION ADMINISTRATION REFORM

The Committee notes that, as a concurrent submission agency,

the FEC has submitted a fiscal year 2002 request of $47,671,000,

including an increase of $2,542,600 for the Office of Election Administration to update and enhance Voting Systems Standards.

The Committee supports efforts to achieve election administration

reform and is aware of several legislative initiatives currently

being considered by the House Committee on Administration. The

Committee will consider appropriations for election administration

reform when such reform measures become authorized.

FEC RESOURCE REQUIREMENTS

The Committee continues to have overall concerns regarding

FEC’s resource requirements. The request submitted by the Commission for fiscal year 2002 recommended an increase of 18 percent

63

from fiscal year 2001 appropriated levels, well above the President’s overall increase of 4 percent for domestic discretionary programs. The Committee appreciates that a portion of the Commission’s request was targeted to election administration reform; nonetheless, absent this initiative, the FEC was requesting an increase

of nearly 11 percent. The Committee notes that, over the past 10

years, the FEC has received an increase of more than 136 percent

in appropriations and continues to question FEC’s ability to efficiently manage its resources.

The Committee is aware that much of FEC’s workload is uncontrollable and independent of any actions FEC might take. For instance, total disbursements in federal elections were $3.5 billion in

the 2000 election cycle which, according to FEC budget justification

materials, has translated into an increase of 27 percent in documents filed since 1984 and an increase of 400 percent in the number of transactions entered into the database. The Committee understands that certain factors are beyond FEC’s control. On the

other hand, much of FEC’s work is controllable, such as the manner in which FEC processes filings, its methods and processes in

meeting disclosure deadlines, and its compliance and enforcement

activities. The Committee notes that it has supported FEC’s efforts

to use more information technology, providing approximately $26

million for these IT efforts over the past 7 years. The Committee

is not convinced that the FEC has maximized the use of these IT

resources, or the use of available technology.

The Committee is particularly aware that, over the past ten

years, the Office of General Counsel has received more than a 165

percent increase in appropriations, largely based on data showing

the growth in both internal and external enforcement cases and the

complexity of those cases. Because of the confidential nature of the

work conducted by the Office of General Counsel (OGC), it has

been difficult for the Committee to conduct a comprehensive and

thorough analysis of its resource requirements. The Committee is

nonetheless concerned by certain enforcement statistics and measures of lagging performance, including the total number of pending

cases, the number of inactive cases, and the number of cases closed

because they have become ‘‘stale’’. Although the FEC maintains

that lagging indicators reflect a lack of enforcement resources, the

Committee has been unable to verify this assertion given FEC’s

stated need to maintain confidentiality of certain information, particularly involving the FEC’s Enforcement Priority System (EPS).

The Committee supports the need for confidentiality of EPS, but

without greater specifics on how FEC allocates its enforcement resources and manages its investigations, it is difficult for the Committee to support significant increases in FEC’s appropriation.

The Committee is pleased with the progress FEC has made in regard to the recommendations put forth by the Price Waterhouse

Coopers management and technological review. The Committee

also believes there continue to be significant opportunities for improvement. The Committee looks forward to working with the FEC

to implement these opportunities and directs the FEC to work with

the Committee to design an analytical flow of information that will

help the Committee to determine more precisely the appropriate

levels of resources needed for proper FEC operations.

64

FEDERAL LABOR RELATIONS AUTHORITY

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $25,002,872

Budget estimate, fiscal year 2002 ..................................................... 26,378,000

Recommended in the bill ................................................................... 26,378,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +1,375,128

Budget Estimate, fiscal year 2002 ............................................. ............................

MISSION

The Federal Labor Relations Authority (FLRA), established by

the Civil Service Reform Act of 1978, serves as a neutral party in

the settlement of disputes that arise between unions, employees,

and agencies on matters outlined in the Federal Service Labor

Management Relations statute, decides major policy issues, prescribes regulations, and disseminates information appropriate to

the needs of agencies, labor organizations, and the public. Establishment of the FLRA gives full recognition to the role of the Federal Government as an employer. Pursuant to the Foreign Service

Act of 1980, FLRA also supports the Foreign Service Impasse Disputes Panel and the Foreign Service Labor Relations Board.

RECOMMENDATION

The Committee recommends an appropriation of $26,378,000 for

the Federal Labor Relations Authority (FLRA), an increase of

$1,375,128 above the amount appropriated in fiscal year 2001 and

the same as requested by the President.

GENERAL SERVICES ADMINISTRATION

FEDERAL BUILDINGS FUND

Appropriation: Appropriation, fiscal year 2001 to date ........................................ $476,523,000

Budget estimate, fiscal year 2002 ................................................. 276,400,000

Recommended in the bill ................................................................ 276,400,000

Bill compared with:

Appropriation, fiscal year 2001 ..................................................... ¥200,123,000

Budget Estimate, fiscal year 2002 ................................................ ........................

Limitations on Availability of Revenue (not an appropriation):

Limitation on availability, fiscal year 2001 enacted to date ....... 5,983,878,000

Limitation on availability, budget estimate, fiscal year 2002 .... 6,179,891,000

Recommended in the bill ................................................................ 6,133,838,000

Bill compared with:

Availability limitation, fiscal year 2001 enacted to date ............. +149,960,000

Availability limitation, fiscal year 2002 estimate ........................ ¥46,053,000

MISSION

The Federal Buildings Fund (FBF) finances the activities of the

Public Buildings Service, which provides space and services for

Federal agencies in a relationship similar to that of landlord and

tenant. The FBF, established in 1975, replaces direct appropriations by using income derived from rent assessments, which approximate commercial rates for comparable space and services. The

Appropriations Committee makes funds available through a process of placing limitations on obligations from the FBF as a way of

allocating funds for various FBF activities. The Committee may

also appropriate funds into the FBF as a way of covering the difVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00064 Fmt 6659 Sfmt 6602 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
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ference between the total revenues coming into the FBF and the

total limitation on the expenditure from the FBF.

RECOMMENDATION

The Committee recommends no additional direct appropriation

into the Federal Buildings Fund, a decrease of $200,123,000 below

the fiscal year 2001 enacted level and the same as the President’s

request. The $276,400,000 listed in the table above references the

amount included in fiscal year 2001 and made available on October

1, 2001, for four courthouse projects.

CONSTRUCTION AND ACQUISITION

Limitations on Availability of Revenue (not an appropriation):

Limitation on availability, fiscal year 2001 enacted to date ... $477,676,000

Limitation on availability, budget estimate, fiscal year 2002 386,289,000

Recommended in the bill ............................................................ 328,816,000

Bill compared with:

Availability limitation, fiscal year 2001 enacted to date ......... ¥148,860,000

Availability limitation, fiscal year 2002 estimate ..................... ¥57,473,000

RECOMMENDATION

The Committee recommends a limitation of $328,816,000 for construction and acquisition, a decrease of $148,860,000 below the fiscal year 2001 enacted level and a decrease of $57,473,000 below the

President’s request. Changes to the President’s request include decreases of $500,000 for nonprospectus construction and $84,406,000

and increases of $4,933,000 for the Rockford, IL, courthouse

project, $4,000,000 for the Orlando, FL, courthouse project,

$15,000,000 for the Miami, Florida, courthouse project, $500,000

for the Champlain, NY, border station, and $3,000,000 for the

Prince Georges County, MD, National Center for Environmental

Prediction project. All construction projects funded in this bill are

subject to authorization by the Committee on Transportation and

Infrastructure.

ORLANDO, FLORIDA, COURTHOUSE

The Committee recommends an appropriation of $4,000,000 to

complete the design of the Orlando, Florida, courthouse. The Committee directs the General Services Administration (GSA) to use

this funding to redesign the courthouse so that it meets the functional and security needs stipulated by the courts. The Committee

has serious concerns about the security of the current design. To

alleviate these concerns, the courthouse should be located further

away from Highway I–4 than contemplated in the current design.

It also believes that a glass facade at this location provides an inviting target. Therefore, materials should be incorporated into the

building which reduce the appearance of vulnerability. The courthouse should be oriented to provide security and to complement the

historic community and the future Florida A&M College of Law.

Space not specifically dedicated to judicial functions should be

minimized and designed to facilitate efficient movement of those

using the building. The Committee expects the GSA to reach an

agreement expeditiously with the courts on the final design of this

project and directs that none of the funds be obligated until approved by the Committee.

66

NATIONAL CENTER FOR ENVIRONMENTAL PREDICTION

The Committee includes $3,000,000, subject to authorization by

the Committee on Transportation and Infrastructure, to begin the

site design and acquisition or lease acquisition of a replacement facility for the National Center for Environmental Prediction currently located in Camp Springs, MD. The General Services Administration is directed to follow the findings and conclusions in its site

selection analysis to identify a location for this facility.

COURTHOUSE CONSTRUCTION COSTS

The Committee remains unconvinced that the General Services

Administration has taken all necessary and prudent steps to reduce its courthouse construction costs. For ten courthouse construction projects that are completed, or nearly completed, GSA has provided data to the Committee indicating an average courthouse construction cost of $175 per square foot. Information gleaned from the

GSA budget justification for fiscal year 2002 indicates that the average per-square-foot construction costs for currently active courthouse projects may be significantly higher (as much as $250 per

square foot). Such a potential large increase appears to be out of

step with inflation and has not been adequately justified. The Committee is committed to gaining a better understanding of courthouse construction costs and the potential for increases in courthouse construction costs as well as to helping lower these costs.

The Committee strongly supports the benchmarking of construction costs but is concerned that the ‘‘space-type’’ methodology being

followed by GSA does not lend itself to external benchmarking.

While adequate and meaningful cost comparisons among federal

courthouse construction projects are important, the ability to compare federal costs to non-federal costs is equally critical. The Committee looks forward to being provided with a copy of the Smith

Group/Hanscomb analysis that is currently underway for verifying

the construction costs for five different types of courthouse spaces

and for identifying the breakout between the construction costs for

the core and shell elements and for the tenant improvement elements of the space types. Nevertheless, this analysis will not allow

an easy or meaningful comparisons among federal and state courthouse construction projects.

Therefore, the Committee directs the GSA to conduct a comparative analysis of its courthouse construction costs with an appropriate representative sampling of state courthouse construction

costs and to provide this analysis to the Committee 120 days after

enactment of this Act. This analysis should contain externally derived cost estimates from the private sector. Accompanying this

analysis is to be a quantification and discussion, if applicable, of

specific reasons why federal courthouse construction costs exceed

state courthouse construction costs.

MIAMI, FLORIDA, COURTHOUSE

The Committee directs the General Services Administration to

make every effort to include minority contractors, vendors, and employees in every phase of the design, construction, and operation of

the new courthouse to be constructed in Miami, Florida. The Committee further directs the General Services Administration to proVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00066 Fmt 6659 Sfmt 6602 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
67

vide a report by February 1, 2002, on its plans for achieving this

essential objective and its progress to date.

SOLOMON BUILDING, CHATTANOOGA, TENNESSEE

The Committee is aware that a recent feasibility study of the

space requirements associated with the Solomon Federal Building

recommends that GSA acquire the old post office building, renovate

the Solomon Federal Building, and develop an adjoining addition to

the Solomon Building to provide parking and expansion. Given the

time-sensitive nature of the optimal site acquisition, the Committee

strongly encourages GSA move forward quickly with plans to acquire land adjacent to the Solomon Building. The Committee also

fully supports actions to acquire the old post office building from

the Tennessee Valley Authority as part of its debt servicing arrangements. The Committee is concerned to learn that the construction aspect of the project may be delayed and urges GSA to

work with the courts to reestablish as early a construction start as

is practicable.

HAMMOND, INDIANA, FEDERAL BUILDING

The Committee is very concerned about the added costs and extensive delays that have plagued the construction of a new federal

building in Hammond, Indiana. The needs for federal facilities in

northwestern Indiana are not being met because the new federal

building being constructed by GSA in Hammond, originally scheduled for completion in November 1999, remains unfinished and unoccupied. The Committee directs GSA to apply all necessary resources and priority to immediately resolve all outstanding issues

and to complete the project by no later than September 8, 2001;

with occupancy immediately thereafter. The Committee is extremely concerned with reports that extensive project delays have

been caused not only by major issues but also by flaws in expensive

finishing materials. The Committee directs GSA to provide a report

to the House Committee on Appropriations within 90 days of the

enactment of this Act on all steps it is taking to ensure that this

and other federal building construction projects remain on schedule, and especially to ensure that aesthetic factors do not impede

progress or completion.

TOLEDO, OHIO, COURTHOUSE

The Committee is aware of a recent land exchange between the

City of Toledo and GSA that provided GSA with a site eminently

suitable for constructing a new federal plaza to include a new federal building and courthouse. GSA is also in the process of completing an 11(b) Report of Building Project Survey to identify and

characterize the needs for federal construction in the Toledo area.

The Committee urges GSA to move forward on this construction

project with all due speed and to take factors such as site availability and multi-purpose space requirements into serious consideration in formulating its construction priorities for this and coming

years.

68

CHAMPLAIN, NEW YORK, BORDER CROSSING

The Committee is aware of the difficult and dangerous situation

that exists at the Champlain, New York, border crossing. Growth

in commercial traffic and changes in inspection procedures have

contributed to severe backups, a growing number of accidents, significant increases in air pollution, and a concern that the increasing delays associated with the Champlain crossing are having a

detrimental impact on the all-important U.S.-Canadian trade relationship along that portion of the border. The Committee recommends an appropriation of $500,000, subject to authorization, to

assist GSA in meeting the site and design needs of the project to

vastly improve the Champlain border station and crossing. The

Committee is aware that $2,800,000 was appropriated for fiscal

year 2001 through Public Law 106–346 and that negotiations are

underway to allow the transfer of these funds from the State of

New York to GSA for a portion of the site and design work. In addition, the State of New York has indicated that it will provide an

additional $500,000. The Committee expects that these funds, together with the $500,000 appropriated in this bill, will be sufficient

to complete the site and design work for the project, providing a

total of $3,300,000 in Federal funds and $500,000 in State funds.

The Committee further urges GSA to submit with all due speed a

site and design prospectus to the appropriate authorizing committees so that these funds can be quickly applied to the much needed

improvements of the Champlain, NY, border requirements.

BROOKLYN, NEW YORK, COURTHOUSE

The Committee recognizes the economic prudence of building out

the remaining additional courtrooms and chambers needed to complete the district courthouse in Brooklyn, NY, at this time. The

Committee has approved an appropriation of $3,361,000 in this bill

and expects that design of these courtrooms and chambers shall

begin. Further, the Committee urges GSA to seek the necessary

funding to complete this project in a timely manner.

CENSUS FACILITIES, SUITLAND, MARYLAND

The Committee has included $2,813,000 for Census Bureau facilities in Suitland, Maryland, within the construction and acquisition

activity. These funds, together with the requested reprogramming

of $5,200,000 from the repairs and alterations activity hereby approved, are sufficient to design one new building for the Census

Bureau at Suitland. The House Committee on Appropriations understands that the Committee on Transportation and Infrastructure is on the verge of authorizing $16,200,000 for the design of

two buildings for the Census Bureau at Suitland and that the establishment of two buildings for the Census is now the preferred

alternative. The House Committee on Appropriations is also aware

of discussions and negotiations between GSA and Census in support of the project. The Committee anticipates that the Agencies involved will be able to resolve how funding might be allocated to enable the design work to proceed on both buildings.

69

SAN DIEGO, CALIFORNIA, COURTHOUSE

The Committee is aware of plans for constructing a new courthouse in San Diego next to the current courthouse and the need

for repairing the current courthouse. $15,400,000 was included in

the FY 1999 bill for acquisition of a site for the new courthouse.

$13,070,000 has been included in this bill, as proposed by the

President, for repairing the current courthouse. The House Committee on Appropriations understands that the Committee on

Transportation and Infrastructure is on the verge of authorizing

$14,337,000 for the design of the new courthouse. The Committee

urges GSA to move forward expeditiously to meet the judiciary

space needs efficiently and effectively. The Committee is also aware

that there are negotiations currently underway regarding historical

issues with the property and urges GSA to expeditiously complete

these negotiations.

REPAIRS AND ALTERATIONS

Limitations on Availability of Revenue (not an appropriation): Limitation on availability, fiscal year 2001 enacted to date ... $681,613,000

Limitation on availability, budget estimate, fiscal year 2002 826,676,000

Recommended in the bill ............................................................ 826,676,000

Bill compared with:

Availability limitation, fiscal year 2001 enacted to date ......... +145,063,000

Availability limitation, fiscal year 2002 estimate ..................... ............................

RECOMMENDATION

The Committee recommends a limitation of $826,676,000 for repairs and alterations, an increase of $145,063,000 above the fiscal

year 2001 enacted level and the same as the budget request.

BOW BUILDING, CANTON, OHIO

Within the amount provided for the basic repair program the Committee understands that GSA will spend $500,000 on repairing

the exterior of the Bow Building in Canton, Ohio. The Committee

is further aware that GSA recently completed a modernization

study pursuant to a House Resolution and encourages GSA to move

forward with the modernization project.

PROJECT PRIORITIZATION

The Committee is concerned that the methodology, its application, or the associated criteria used by the GSA and the Administration to develop the priority listing of repair and alteration

projects contained in the President’s budget request may be flawed.

This concern is based on a possible geographic bias, the continuing

exclusion of the much-needed repair work at 300 North Los Angeles Boulevard in California, and uncertainty about the weights assigned the 5 criteria used for assessing and ranking projects. The

failure of the 300 North Los Angeles Boulevard Federal Building

repair project to be included in the President’s budget request, despite serious and extensive public health and safety problems (unmitigated seismic risks, inadequate venting and exiting, fire and

disability code violations, etc.), suggests that insufficient weight is

being given to the physical urgency and public safety.

Therefore, the Committee directs GSA to provide a report 120

days after enactment of this Act that includes (1) the fiscal year

70

2002 guidance sent to the GSA regions as to how GSA repair and

alteration projects will be ranked, what criteria will be used, how

each criterion is to be evaluated, and what weight is to be assigned

each criterion; and (2) the individual rankings (total ranking as

well as specific criteria ranking) of the proposed fiscal year 2002

projects submitted by the GSA regions to GSA headquarters and by

GSA headquarters to the Office of Management and Budget.

INSTALLMENT ACQUISITION PAYMENTS

Limitations on Availability of Revenue (not an appropriation): Limitation on availability, fiscal year 2001 to date ................. $185,369,000

Limitation on availability, budget estimate, fiscal year 2002 186,427,000

Recommended in the bill ............................................................ 186,427,000

Bill compared with:

Availability limitation, fiscal year 2001 to date ....................... +1,058,000

Availability limitation, fiscal year 2002 estimate ..................... ............................

RECOMMENDATION

The Committee recommends a limitation of $186,427,000 for installation acquisition payments, an increase of $1,058,000 above

the fiscal year 2001 enacted level and the same as the President’s

request.

RENTAL OF SPACE

Limitations on Availability of Revenue (not an appropriation): Limitation on availability, fiscal year 2001 to date ................. $2,943,854,000

Limitation on availability, budget estimate, fiscal year 2002 2,959,550,000

Recommended in the bill ............................................................ 2,959,550,000

Bill compared with:

Availability limitation, fiscal year 2001 to date ....................... +15,696,000

Availability limitation, fiscal year 2002 estimate ..................... ............................

RECOMMENDATION

The Committee recommends a limitation of $2,959,550,000 for

rental of space, an increase of $15,696,000 above the fiscal year

2001 enacted level and the same as the President’s request.

BUILDING OPERATIONS

Limitations on Availability of Revenue (not an appropriation): Limitation on availability, fiscal year 2001 to date ................. $1,624,771,000

Limitation on availability, budget estimate, fiscal year 2002 1,748,949,000

Recommended in the bill ............................................................ 1,760,369,000

Bill compared with:

Availability limitation, fiscal year 2001 to date ....................... +135,598,000

Availability limitation, fiscal year 2002 estimate ..................... +11,420,000

RECOMMENDATION

The Committee recommends a limitation of $1,760,369,000 for

building operations, an increase of $135,598,000 above the fiscal

year 2001 enacted level and an increase of $11,420,000 above the

President’s request. The increase above the President’s request con- sists of $10,970,000 to cover a portion of estimated non-pay inflation costs and $450,000 for a study of hurricane risks and mitigation strategies in the southeast. In providing only a portion of the

increase needed to cover the non-pay inflation in building operations, the Committee encourages GSA to seriously consider absorbing the shortfall in such activities as cleaning, maintenance,

71

other building services, and staff support (especially reducing or

eliminating the funding for the proposed new environmental audits). The Committee is aware of a memorandum of understanding

between GSA and the Geothermal Heat Pump Consortium and

urges GSA to continue exploring and evaluating the energy efficient and cost effective use of geothermal heat pumps in federal

buildings. The Committee directs the General Services Administration to work with the State Department to review the decision to

consolidate warehouse space along the Southwest border. The Committee directs the General Services Administration to report on the

benefits of other locations.

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

The Committee directs GSA to work closely with the National

Oceanic and Atmospheric Administration, the University of Oklahoma, and all other interested parties regarding the much-needed

new facilities for NOAA’s National Serve Storm Laboratory and

Storm Prediction Center, for which design funds were appropriated

in the last Congress. Due to the intended co-location of the NOAA

facility with related programs at the university, GSA is particularly directed to help identify the necessary costs that are beyond

those of standard-design federal offices.

TELECOMMUTING/TELEWORK

The Committee is strongly supportive of the appropriate and effective use of telecommuting, including utilization of the GSA telecenters. Currently, the GSA telecenters are operating at about 50

percent of their full capacity and GSA is subsidizing operating

costs not covered by user fees. To facilitate federal employee awareness and utilization of federal telecenters, GSA is directed to increase its marketing of the telecenters and to develop a business

case for a pilot project that would allow a 60-day free trial period

for certain federal employees to use the telecenters. The federal

employees eligible for participation in the 60-day free trial period

are to be those federal employees that are eligible for telework,

that do not currently use the telecenters, and whose agencies have

sufficient funds to cover the user fees if the employee elects to continue using the telecenter after the trial period. The business case

is to be submitted to the House Committee on Appropriations within 60 days of enactment; the pilot program should be implemented

immediately, if warranted.

The Committee further directs GSA to prepare and deliver to the

Committee 90 days after enactment of this Act a report evaluating

the costs (actual costs on a per-worker basis based on historical

data) of providing telecenters in comparison to the costs of establishing and operating a workplace within a telecommuter’s home,

and the other relative merits of each approach.

The Committee further directs GSA to evaluate the needs and

opportunities for establishing a telecenter to serve the Route 355/

I–270 corridor and a telecenter to serve the Georgia/New Hampshire Avenue corridor in Montgomery County, Maryland, to include

this evaluation in the cost evaluation report, and to proceed with

establishing both or either of these centers if warranted.

72

HURRICANE THREATS IN THE SOUTHEAST

The Committee is concerned about the risks to federal buildings

in the southeastern United States from damaging hurricanes. The

Committee has provided $450,000 for a study to assess the risk of

hurricane damage to federal buildings in the southeast, to ascertain what pre-disaster hurricane mitigation strategies are most appropriate, to quantitatively characterize the current mitigation

strategy costs and benefits, and to determine the extent to which

additional measures should be taken as well as associated implementation costs. The study is to be submitted to the House Committee on Appropriations six months after the enactment of this

Act.

CONSUMER PRODUCT SAFETY COMMISSION

The Committee is very supportive of GSA’s continued efforts to

assist the Consumer Product Safety Commission (CPSC) with the

development of their master plan. The Committee further understands that the CPSC has contributed $50,000 from its fiscal year

1999 appropriation for an assessment to determine the modernization needs of CPSC’s laboratories in Gaithersburg, Maryland.

CPSC also hopes, as part of its master plan, to reduce waste and

inefficiency by co-locating a sample warehouse on its Gaithersburg

facilities. In recognition of the important service that CPSC offers

to the American public, the Committee encourages GSA to continue

to work with CPSC to finalize a master plan and work toward its

implementation.

USGS FACILITIES, SANTA CRUZ, CALIFORNIA

The Committee strongly encourage GSA to work with the U.S.

Geological Survey (USGS) and the University of California at

Santa Cruz to fashion a plan to address the facilities needs of the

USGS Western Coastal and Marine Geology Program. The Committee hopes that such a plan will provide the best possible financial and programmatic benefits to the Federal Government and the

USGS over an extended time frame in terms of facilities construction, rental, and relocation costs. The Committee urges GSA to consider innovative and creative facilities construction alternatives

that would give the Federal government, and the USGS, the greatest possible economic benefit, including a rent-free option exclusive

of maintenance and operation costs. Part of such a facilities plan

is predicated on the USGS adequately defining its coastal and marine facility needs and appropriate Congressional authorization.

The GSA should report back to the Committee no later than 90

days after enactment of this Act.

POLICY AND OPERATIONS

Appropriation, fiscal year 2001 to date ............................................ $137,406,000

Budget estimate, fiscal year 2002 ..................................................... 138,499,000

Recommended in the bill ................................................................... 137,515,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +109,000

Budget Estimate, fiscal year 2002 ............................................. ¥984,000

73

MISSION

Policy and operations provides for Government-wide policy, planning, and oversight associated with real and personal property

asset management, supplies, information technology, electronic

commerce, transportation and travel management, acquisition, and

Federal advisory committees management. In addition, this activity

provides for the internal policy, management, oversight, and coordination of all GSA programs.

RECOMMENDATION

The Committee recommends an appropriation of $137,515,000 for

Policy and Operations, an increase of $109,000 above the fiscal

year 2001 enacted level and a decrease of $984,000 below the President’s request. Changes to the President’s request include decreases of $1,000,000 for the Federal Computer Incident Response

Capability, $1,000,000 for activities associated with the Lorton

Complex (leaving $3,822,000 appropriated in fiscal year 2002 for

this effort), and $500,000 for activities associated with Governors

Island (leaving $8,082,000 appropriated in fiscal year 2002 for this

effort) as well as an increase of $1,516,000 for non-pay inflation.

The fiscal year 2002 funding level for the public key infrastructure (PKI) effort is $3,500,000, the same level as proposed in the

President’s budget. In materials supplied to the Committee in response to questions for the record, GSA stated that the effort was

focused on deploying commercial PKI in a Federal environment.

The Committee remains concerned that this deployment, as presented, may be more appropriately conducted by (and funded in the

accounts of) those individual federal agencies who require secure

ways of conducting transactions or exchanging information electronically. Therefore, GSA is directed to provide a report to the

House Committee on Appropriations 90 days after enactment of

this Act that fully explains the importance and benefits from managing this effort centrally within the federal government, quantifies

the extent to which commercially developed PKI is already being

deployed in the federal government, and that fully describes industry/government PKI relations, partnerships, and collaborations.

The fiscal year 2002 funding level for the Federal computer inci- dent response capability is $9,982,000, an increase of $2,000,000

above the fiscal year 2002 funding level and a decrease of

$1,000,000 below the level requested in the President’s budget. The

Committee is supportive of the decentralized, distributed philosophy for computer incident detection and response that is inherent

in the current federal effort and that appears to allow appropriate

agency control and private sector involvement.

PUBLIC SERVICE RECOGNITION WEEK

The Committee recognizes that Public Service Recognition Week,

a program of the Public Employees Roundtable, has educated

America about the value of the career workforce, which carries out

the daily operations of government. This program, which has existed for over 10 years, plays an important role in educating our

nation’s youth by providing them with timely information about

their government. The Committee urges the General Services Administration to support the mission of the Public Employees

74

Roundtable and provide $100,000 in administrative and logistical

assistance to Public Service Recognition Week activities, the same

level as was provided for fiscal year 2001.

OFFICE OF INSPECTOR GENERAL

Appropriation, fiscal year 2001 to date ............................................ $34,444,000

Budget estimate, fiscal year 2002 ..................................................... 36,025,000

Recommended in the bill ................................................................... 36,290,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +1,846,000

Budget Estimate, fiscal year 2002 ............................................. +265,000

MISSION

This appropriation provides agencywide audit and investigative

functions to identify and correct management and administrative

deficiencies within GSA which create conditions for existing or potential instances of fraud, waste, and mismanagement. The audit

function provides internal audit and contract audit services. Contract audits provide professional advice to GSA contracting officials

on accounting and financial matters relative to the negotiation,

award, administration, repricing, and settlement of contracts. Internal audits review and evaluate all facets of GSA operations and

programs, test internal control systems, and develop information to

improve operating efficiencies and enhance customer services. The

investigative function provides for the detection and investigation

of improper and illegal activities involving GSA programs, personnel, and operations.

RECOMMENDATION

The Committee recommends an appropriation of $36,290,000 for the Office of Inspector General, an increase of $1,846,000 above the

fiscal year 2001 enacted level and an increase of $265,000 above

the President’s request. The increase above the President’s request

is for non-pay inflation.

ELECTRONIC GOVERNMENT FUND

Appropriation, fiscal year 2001 to date ............................................ ............................

Budget estimate, fiscal year 2002 ..................................................... $20,000,000

Recommended in the bill ................................................................... 5,000,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +5,000,000

Budget Estimate, fiscal year 2002 ............................................. ¥15,000,000

MISSION

The President proposes a new appropriation to provide support

for interagency Electronic Government (E-Gov) initiatives that utilize the Internet or other electronic methods as a means to increase

Federal Government accessibility, efficiency, and productivity.

RECOMMENDATION

The Committee recommends an appropriation of $5,000,000 for the Electronic Government Fund, an increase of $5,000,000 above

the level that was provided for fiscal year 2001 and a decrease of

$15,000,000 below the President’s request. The Committee supports, in general, the purpose of the fund and recommends the Administration work with the House Committee on Government ReVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00074 Fmt 6659 Sfmt 6602 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
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form to clarify its authorization. The Committee would encourage

the use of these funds for interagency electronic government

projects for which matching funds are provided. The Committee is

aware of interagency groups, such as the Chief Information Officer

(CIO) Council chaired by OMB, that have wide experience and expertise in electronic government and information technology areas

and suggests that these groups could make key contributions in the

review and selection of projects.

ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS

Appropriation, fiscal year 2001 to date ............................................ $2,511,000

Budget estimate, fiscal year 2002 ..................................................... 3,552,000

Recommended in the bill ................................................................... 3,196,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +685,000

Budget Estimate, fiscal year 2002 ............................................. ¥356,000

MISSION

This appropriation provides support consisting of pensions, office

staffs, and related expenses for former Presidents Gerald R. Ford,

Jimmy Carter, Ronald Reagan, George Bush and Bill Clinton and

for pension and postal franking privileges for the widow of former

President Lyndon B. Johnson. Also, this appropriation is authorized to provide funding for security and travel related expenses for

each former President and the spouse of a former President pursuant to Section 531 of Public Law 103–329.

RECOMMENDATION

The Committee recommends an appropriation of $3,196,000 for

allowances and office staff of former Presidents, an increase of

$685,000 above the fiscal year 2001 enacted level and a decrease

of $356,000 below the President’s request. Changes to the President’s request include a decrease of $176,000 for an unspecified in- crease and a decrease of $180,000 as a reduction in office rent for

former President Reagan.

FY 2002 BUDGET ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS

[In thousands of dollars]

Ford Carter Reagan Bush Clinton Widows Total

Personnel Compensation ........................... 96 96 96 96 150 0 534

Personnel Benefits ..................................... 24 6 24 35 60 0 149

Benefits for Former Personnel:

Pensions ............................................ 166 166 166 166 166 20 850

Travel ................................................ 50 2 16 57 57 0 182

Rental Payments to GSA ........................... 110 102 177 169 354 0 912

Communications, Utilities and Miscellaneous charges:

Telephone .......................................... 21 25 15 14 28 0 103

Postage ............................................. 6 20 10 14 22 2 74

Printing ...................................................... 0 5 12 12 15 0 44

Other Services ............................................ 11 71 15 13 80 0 190

Supplies & Materials ................................. 9 6 20 11 24 0 70

Equipment .................................................. 4 9 3 36 36 0 88

Total Obligations .......................... 497 508 554 623 992 22 3,196

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GENERAL PROVISIONS—GENERAL SERVICES ADMINISTRATION

Section 401. The Committee continues the provision that provides that costs included in rent received from government corporations for operation, protection, maintenance, upkeep, repair and

improvement shall be credited to the Federal Buildings Fund.

Section 402. The Committee continues the provision providing

authority for the use of funds for the hire of motor vehicles.

Section 403. The Committee continues the provision providing

that funds made available for activities of the Federal Buildings

Fund may be transferred between appropriations with advance approval of the Congress.

Section 404. The Committee continues the provision prohibiting

the use of funds for developing courthouse construction requests

that do not meet GSA standards and the priorities of the Judicial

Conference.

Section 405. The Committee continues the provision providing

that no funds may be used to increase the amount of occupiable

square feet, provide cleaning services, security enhancements, or

any other service usually provided, to any agency which does not

pay the requested rent.

Section 406. The Committee continues the provision providing for

Information Technology Fund repayment from sponsored projects

that realize program savings.

Section 407. The Committee continues the provision that permits

GSA to pay small claims (up to $250,000) made against the government.

Section 408. The Committee recommends a new provision requiring the General Services Administration to increase its fiscal year

2002 expenditures for purchasing alternative fuel vehicles by

$5,000,000 above its fiscal year 2001 expenditures.

MERIT SYSTEMS PROTECTION BOARD

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $29,372,239

Budget estimate, fiscal year 2002 ..................................................... 30,375,000

Recommended in the bill ................................................................... 30,375,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +1,002,761

Budget Estimate, fiscal year 2002 ............................................. ............................

MISSION

The Merit Systems Protection Board performs the adjudicatory

functions necessary to maintain the civil service merit system.

These include hearing appeals on adverse actions, reduction-inforce actions, and retirement. The Board reports to the President

on whether merit systems are sufficiently free from prohibited personnel practices to protect the public interest.

RECOMMENDATION

The Committee recommends an appropriation of $30,375,000 for

the Merit Systems Protection Board (MSPB), an increase of

$1,002,761 above the amount appropriated in fiscal year 2001 and

the same as requested by the President.

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MORRIS K. UDALL SCHOLARSHIP AND EXCELLENCE IN NATIONAL

ENVIRONMENTAL POLICY FOUNDATION

FEDERAL PAYMENT TO MORRIS K. UDALL SCHOLARSHIP AND

EXCELLENCE IN NATIONAL ENVIRONMENTAL POLICY FOUNDATION

Appropriation, fiscal year to date ..................................................... $1,996,000

Budget estimate, fiscal year 2002 ..................................................... 1,746,000

Recommended in the bill ................................................................... ............................

Bill compared with:

Appropriation, fiscal year 2001 .................................................. ¥1,996,000

Budget Estimate, fiscal year 2002 ............................................. ¥1,746,000

MISSION

Public Law 102–259 established the Morris K. Udall Scholarship

and Excellence in National Environmental Policy Trust Fund. Federal payments to that fund are invested in Treasury securities. Interest earnings from the investments are used to carry out the activities of the Morris K. Udall Scholarship and Excellence in National Environmental Policy Foundation. The Foundation awards

scholarships, fellowships, and grants and funds activities of the

Udall Center for Studies in Public Policy.

RECOMMENDATION

The Committee recommends no appropriation for this account, a

decrease of $1,996,000 below the fiscal year 2001 enacted level and

a decrease of $1,746,000 below the President’s request. Funding for

activities associated with this account is provided in a new account,

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

NATIVE NATIONS INSTITUTE

Appropriation, fiscal year 2001 to date ............................................ ............................

Budget estimate, fiscal year 2002 ..................................................... $250,000

Recommended in the bill ................................................................... ............................

Bill compared with:

Appropriation, fiscal year 2001 .................................................. ............................

Budget Estimate, fiscal year 2002 ............................................. ¥250,000

MISSION

Public Law 106–653 (section 817) established the Native Nations

Institute as part of the Morris K. Udall Scholarship and Excellence

in National Environmental Policy Foundation. The purpose of the

Native Nations Institute is to provide management and leadership

training to Native American tribal leaders.

RECOMMENDATION

The Committee recommends no appropriation for the Native Nations Institute, the same as the fiscal year 2001 enacted level and

a decrease of $250,000 below the President’s request. The potential

for funding activities associated with this proposed account has

been made permissible by transfer from a new account, Morris K.

Udall Scholarship and Excellence in National Environmental Policy

Trust Fund.

78

MORRIS K. UDALL SCHOLARSHIP AND EXCELLENCE IN NATIONAL

ENVIRONMENTAL POLICY TRUST FUND

Appropriation, fiscal year 2001 to date ............................................ ............................

Budget estimate, fiscal year 2002 ..................................................... ............................

Recommended in the bill ................................................................... $2,500,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +2,500,000

Budget Estimate, fiscal year 2002 ............................................. +2,500,000

MISSION

Public Law 102–259 established the Morris K. Udall Scholarship

and Excellence in National Environmental Policy Trust Fund. Federal payments to that fund are invested in Treasury securities. Interest earnings from the investments are used to carry out the activities of the Morris K. Udall Scholarship and Excellence in National Environmental Policy Foundation. The Foundation awards

scholarships, fellowships, and grants and funds activities of the

Udall Center for Studies in Public Policy.

Public Law 106–568 (section 817) established the Native Nations

Institute as part of the Morris K. Udall Scholarship and Excellence

in National Environmental Policy Foundation. The purpose of the

Native Nations Institute is to provide management and leadership

training to Native American tribal leaders.

RECOMMENDATION

The Committee establishes a new appropriation in lieu of the

Federal Payment to Morris K. Udall Scholarship and Excellence in

National Environmental Policy Foundation account and the proposed Native Nations Institute account. The Committee recommends an appropriation of $2,500,000 for these activities of the

Morris K. Udall Foundation, an increase of $504,000 above the fiscal year 2001 enacted level for the Trust Fund and an increase of

$504,000 above the President’s combined request for the Trust

Fund and the proposed Native Nations Institute account. The Committee includes language to allow up to 60 percent of the appropriation to be used for the expenses of the Native Nations Institute.

The Committee also includes language requiring the Foundation to

report to the Committee on the amount of funding, if any, transferred from the Trust Fund for the Native Nations Institute, and

directs that this report include an itemization of planned Native

Nations Institute expenditures for fiscal year 2002. The Committee

further directs the Foundation to describe as part of the report its

justification for such a transfer. Future budget justifications submitted to Congress regarding this effort are to contain detailed information on the actual expenditures of past years as well as detailed information on planned expenditures for the current and

budget years.

ENVIRONMENTAL DISPUTE RESOLUTION FUND

Appropriation, fiscal year 2001 to date ............................................ $1,248,000

Budget estimate, fiscal year 2002 ..................................................... 1,309,000

Recommended in the bill ................................................................... 1,309,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +61,000

Budget Estimate, fiscal year 2002 ............................................. ............................

79

MISSION

Public Law 105–156 established the United States Institute for

Environmental Conflict Resolution as part of the Morris K. Udall

Scholarship and Excellence in National Environmental Policy

Foundation. It also established in the Treasury an Environmental

Dispute Resolution Fund to be available to establish and operate

the Institute. The purpose of the Institute is to conduct environmental conflict resolution and training.

RECOMMENDATION

The Committee recommends an appropriation of $1,309,000 for

the Environmental Dispute Resolution Fund, an increase of

$61,000 above the fiscal year 2001 enacted level and the same as

the President’s request.

NATIONAL ARCHIVES AND RECORDS ADMINISTRATION

OPERATING EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $208,946,000

Budget estimate, fiscal year 2002 ..................................................... 244,247,000

Recommended in the bill ................................................................... 243,547,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +34,601,000

Budget Estimate, fiscal year 2002 ............................................. ¥700,000

MISSION

The National Archives and Records Administration provides for

basic operations dealing with management of the Government’s archives and records, operation of Presidential libraries, and for the

review for declassification of classified security information.

RECOMMENDATION

The Committee recommends an appropriation of $243,547,000 for

the operating expenses of the National Archives and Records Administration, an increase of $34,601,000 above the fiscal year 2001

enacted level and a decrease of $700,000 below the President’s fiscal year 2002 budget request. Changes to the President’s budget request include decreases of $1,000,000 for the electronic records archive and $1,000,000 for the development of an integrated website

as well as increases of $850,000 for non-pay inflation and $450,000

for efforts to preserve and improve access to the records of the

Freedmen’s Bureau. The Committee also has recommended identification of funding for the electronic records archive in the bill and

made a portion of the funding for this effort available for three

years.

ELECTRONIC RECORDS ARCHIVE

The Committee recommends a funding level of $22,302,000 for

the electronic records archive, an increase of $19,000,000 above the

level provided for fiscal year 2001 and a decrease of $1,000,000 less

than the President’s request. The Committee also recommends

making a portion of the funding available for three years.

The Committee is aware of the importance of this project and its

potential impact on the entire Federal government. The project also

80

involves substantial risks due to the magnitude of the effort, the

immaturity of the technology, the limited information available on

the volumes and types of agency electronic records, and the lack of

related management and technical experience within NARA. The

Committee is acutely aware of the potential pitfalls associated with

the effort, as a result of these risks and based on previous experience of the Committee with large information technology efforts.

Therefore, the Committee directs NARA to use a portion of the

fiscal year 2002 funding to assess the feasibility of exploring alternative solutions based on existing technologies and commercial-offthe-shelf applications and to provide a report on this effort to the

House Committee on Appropriations by July 30, 2002.

NARA is also directed (1) to develop a fiscal year 2002 research

plan and to submit the plan to the Committee 120 days after enactment of this Act, (2) to develop a plan to identify and periodically

assess the volumes and types of agency electronic records to be

accessioned, preserved, and made accessible and to submit the plan

to the Committee 120 days after enactment of this Act, and (3) to

work with the Library of Congress and other Federal information

technology groups to ensure that the proposed information technologies are developed in conjunction with the National Digital Information Infrastructure and Preservation program and that the

proposed systems development follows all appropriate capital planning guidance for information technologies.

FREEDMEN’S BUREAU

The Committee has provided an increase of $450,000 for preservation and access activities associated with the records of the

Freedmen’s Bureau, providing a total fiscal year 2002 base funding

level of at least $600,000 for this effort. These records are the best

documentation of the greatest social undertaking in this country’s

history. These funds are to be used to help microfilm the records,

assist researchers in using related documents, provide better access

to record inventories, and create partnerships for developing indexes.

REPAIRS AND RESTORATION

Appropriation, fiscal year 2001 to date ............................................ $101,536,000

Budget estimate, fiscal year 2002 ..................................................... 10,643,000

Recommended in the bill ................................................................... 10,643,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. ¥90,893,000

Budget Estimate, fiscal year 2002 ............................................. ............................

MISSION

This appropriation provides for the repair, alteration, and improvement of Archives facilities and Presidential libraries nationwide. It enables the National Archives to maintain its facilities in

proper condition for visitors, researchers, and employees, and also

maintain the structural integrity of the buildings.

RECOMMENDATION

The Committee recommends an appropriation of $10,643,000 for

repairs and restoration, a decrease of $90,893,000 below the fiscal

year 2001 enacted level and the same as the President’s request.

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NATIONAL HISTORICAL PUBLICATIONS AND RECORDS COMMISSION

GRANTS PROGRAM

Appropriation, fiscal year 2001 to date ............................................ $6,436,000

Budget estimate, fiscal year 2002 ..................................................... 4,436,000

Recommended in the bill ................................................................... 10,000,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +3,564,000

Budget Estimate, fiscal year 2002 ............................................. +5,564,000

MISSION

This program provides for grants funding that the Commission

makes, nationwide, to preserve and publish records that document

American history. Administered within the National Archives and

Records Administration, which preserves Federal records, the

NHPRC helps state, local, and private institutions preserve nonFederal records, helps publish the papers of major figures in American history, and helps archivists and records managers improve

their techniques, training, and ability to serve a range of information users.

RECOMMENDATION

The Committee recommends an appropriation of $10,000,000 for

the National Historical Publications and Research Commission

grants program, an increase of $3,564,000 above the fiscal year

2001 enacted level and an increase of $5,564,000 above the President’s request. The Committee has included $1,700,000 for a grant

to the Oklahoma Centennial Commission to assist with memorializing the Oklahoma Land Run as part of the Oklahoma Centennial celebration and $1,000,000 for a grant to the Boston Public Library for preserving and enhancing its holdings of materials related to John Adams.

OFFICE OF GOVERNMENT ETHICS

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $9,663,000

Budget estimate, fiscal year 2002 ..................................................... 10,060,000

Recommended in the bill ................................................................... 10,060,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +397,000

Budget Estimate, fiscal year 2002 ............................................. ............................

MISSION

The Office of Government Ethics (OGE), established by the Ethics in Government Act of 1978, provides overall direction of executive branch policies designed to prevent conflicts of interest and insure high ethical standards. The OGE discharges its responsibilities to preserve and promote public confidence in the integrity of

executive branch officials by developing rules and regulations pertaining to conflicts of interest, post employment restrictions, standards of conduct, and public and confidential financial disclosure in

the executive branch. It monitors compliance with public and confidential financial disclosure requirements of the Ethics in Government Act of 1978 and the Ethics Reform Act of 1989, to determine

possible violations of applicable laws or regulations and recomVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00081 Fmt 6659 Sfmt 6602 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
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mending appropriate corrective action. OGE also consults with and

assists various officials in evaluating the effectiveness of applicable

laws and the resolution of individual problems, and prepares formal advisory opinions, informal letter opinions, policy memoranda,

and Federal Register entries on how to interpret and comply with

the requirements on conflicts of interest, post employment, standards of conduct, and financial disclosure. Finally, OGE issues and

amends regulations implementing the procurement integrity provisions relating to negotiating for employment, post employment, and

gratuities in the Office of Federal Procurement Policy Act Amendments of 1988, P.L. 100–679.

RECOMMENDATION

The Committee recommends an appropriation of $10,060,000 for

the Office of Government Ethics, the same amount requested by

the President and $397,000 above the fiscal year 2001 appropriated

level.

OFFICE OF PERSONNEL MANAGEMENT

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $93,888,000

Budget estimate, fiscal year 2002 ..................................................... 99,036,000

Recommended in the bill ................................................................... 99,036,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +5,148,000

Budget Estimate, fiscal year 2002 ............................................. ............................

MISSION

The Office of Personnel Management (OPM) is the Government

agency responsible for management of Federal human resource policy and oversight of the merit civil service system. Although individual agencies are increasingly responsible for personnel operations, OPM provides a Governmentwide policy framework for personnel matters, advises and assists agencies (often on a reimbursable basis), and ensures that agency operations are consistent with

requirements of law, with emphasis on such issues as veterans

preference. OPM oversees examining of applicants for employment,

issues regulations and policies on hiring, classification and pay,

training, investigations, and many other aspects of personnel management, and operates a reimbursable training program for the

Government’s managers and executives. OPM is also responsible

for administering the retirement, health benefits and life insurance

programs affecting most Federal employees, retired Federal employees, and their survivors.

RECOMMENDATION

The Committee recommends an appropriation of $99,036,000 for

the Office of Personnel Management, an increase of $5,148,000

above the amount appropriated in fiscal year 2001 and the same

as requested by the President.

FEDERAL WAGE SYSTEM

The Federal Government currently pays approximately 225,000

blue collar craft and trades workers under the Federal Wage SysVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00082 Fmt 6659 Sfmt 6602 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
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tem (FWS). Section 612 of this bill caps the 2002 pay raise which

FWS workers can receive at that provided to General Schedule

(GS) employees. However, many FWS workers may receive less

than the GS raise, as a result of FWS surveys. The Committee

therefore directs the Office of Personnel Management to submit a

report within 120 days of enactment on the cost of administering

the FWS, including the cost of data collection, the cost of analyzing

FWS data and its transformation into FWS pay lines and wage

schedules, the cost of operating the Federal Prevailing Rate Advisory Committee, and the number of FWS workers in each Federal

agency. This information will help to determine whether the data

used by the FWS justifies its cost, and whether other mechanisms

for setting federal blue collar worker pay would be more effective.

FEDERAL WAGE GRADE SYSTEM FOR BUREAU OF PRISIONS

The Committee is concerned that the wage surveys utilized in determining the cost of labor for federal wage grade positions are inadequate with respect to Bureau of Prisons employees. Wage grade

employees in the Bureau of Prisons are often in ‘‘mixed jobs’’ which

have no private sector equivalent. These employees are hired for

one primary skill, but they also are trained as security officers and

perform security functions in conjunction with their other duties.

The Committee directs OPM to review and report to Congress on

how the current survey instrument quantifies the cost of labor with

respect to mixed wage grade jobs at the Bureau of Prisons. The report should include a comparison of the average wage rates for employees at each federal prison facility, a review of any differences

in how the surveys are conducted in different wage areas, and a

set of recommendations for determining how to quantify the cost of

labor in a given wage area if there are no private sector

comparables. The report is due no later than 90 days after the date

of enactment of this Act.

WAGE GRADE FEDERAL EMPLOYEES IN MONTEREY COUNTY,

CALIFORNIA

It is the Committee’s understanding that on November 8, 1999,

and again on February 24, 2000, the Salinas-Monterey Local Wage

Grade Survey Committee recommended that the Salinas-Monterey

Wage Area be realigned with San Francisco/San Jose/Santa Cruz

wage area, based in part upon their finding that Monterey County

GS civil service employees are part of the San Francisco/San Jose

locality pay area. The Committee directs OPM to report to the

Committee its intention with regard to implementing this recommendation.

OFFICE OF INSPECTOR GENERAL

Appropriation, fiscal year 2001 to date ............................................ $1,357,000

Budget estimate, fiscal year 2002 ..................................................... 1,398,000

Recommended in the bill ................................................................... 1,398,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +41,000

Budget Estimate, fiscal year 2002 ............................................. ............................

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MISSION

This appropriation provides agencywide audit, investigative,

evaluation, and inspection functions to identify management and

administrative deficiencies, which may create conditions for fraud,

waste and mismanagement. The audits function provides internal

agency audit, insurance audit, and contract audit services. Contract

audits provide professional advice to agency contracting officials on

accounting and financial matters regarding the negotiation, award,

administration, repricing, and settlement of contracts. Internal audits review and evaluate all facets of agency operations, including

financial statements. Evaluation and inspection services provide

detailed technical evaluations of agency operations. Insurance audits review the operations of health and life insurance carriers,

health care providers, and insurance subscribers. The investigative

function provides for the detection and investigation of improper

and illegal activities involving programs, personnel, and operations.

RECOMMENDATION

The Committee recommends an appropriation of $1,398,000 for

the Office of Inspector General of the Office of Personnel Management, an increase of $41,000 above the amount appropriated in fiscal year 2001 and the same as requested by the President.

GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEES HEALTH

BENEFITS

Appropriation, fiscal year 2001 to date ............................................ $5,427,166,000

Budget estimate, fiscal year 2002 ..................................................... 6,145,000,000

Recommended in the bill ................................................................... 6,145,000,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +717,834,000

Budget Estimate, fiscal year 2002 ............................................. ............................

MISSION

This appropriation covers: (1) the Government’s share of the cost

of health insurance for 1,851,000 annuitants as defined in sections

8901 and 8906 of title 5, United States Code; (2) the Government’s

share of the cost of health insurance for about 12,000 annuitants

(who were retired when the Federal employees health benefits law

became effective), as defined in the Retired Federal Employees

Health Benefits Act of 1960; and (3) the government’s contribution

for payment of administrative expenses incurred by the Office of

Personnel Management in administration of the act.

GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEES LIFE

INSURANCE

Appropriation, fiscal year 2001 to date ............................................ $35,000,000

Budget estimate, fiscal year 2002 ..................................................... 33,000,000

Recommended in the bill ................................................................... 33,000,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. ¥2,000,000

Budget Estimate, fiscal year 2002 ............................................. ............................

MISSION

This appropriation finances the Government’s share of premiums, which is one-third the cost, for basic life insurance for anVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00084 Fmt 6659 Sfmt 6602 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
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nuitants retiring after December 31, 1989, and who are less than

65 years old.

PAYMENT TO CIVIL SERVICE RETIREMENT AND DISABILITY FUND

Appropriation, fiscal year 2001 to date ............................................ $8,940,051,000

Budget estimate, fiscal year 2002 ..................................................... 9,229,000,000

Recommended in the bill ................................................................... 9,229,000,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +288,949,000

Budget Estimate, fiscal year 2002 ............................................. ............................

MISSION

This appropriation provides for payment of annuities, including

the payment of annuities under special acts for persons employed

on the construction of the Panama Canal or their widows and widows of employees of the Lighthouse Service; payment of the government share of retirement costs of the unfunded liability resulting

from any statute authorizing new or liberalized benefits, extension

of retirement coverage, or pay increases; transfers for interest on

unfunded liability and payment of military service annuities covering interest on the unfunded liability and annuity disbursements

for military service; payments for spouse equity providing survivor

annuities to eligible former spouses of annuitants who died between September 1978 and May 1986 and did not elect survivor

coverage; and transfers for payment of FERS supplemental liability

covering annual amortization payments financing supplemental liabilities for FERS.

OFFICE OF SPECIAL COUNSEL

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $11,122,000

Budget estimate, fiscal year 2002 ..................................................... 11,784,000

Recommended in the bill ................................................................... 11,823,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +701,000

Budget Estimate, fiscal year 2002 ............................................. +39,000

MISSION

The Office of Special Counsel: (1) investigates Federal employee

allegations of prohibited personnel practices (including reprisal for

whistleblowing) and, when appropriate, prosecutes before the Merit

Systems Protection Board; (2) provides a channel for whistleblowing by Federal employees; and (3) enforces the Hatch Act. The

Office may transmit whistleblower allegations to the agency head

concerned and require an agency investigation and a report to the

Congress and the President when appropriate.

RECOMMENDATION

The Committee recommends an appropriation of $11,823,000 for the Office of Special Counsel, an increase of $701,000 from

amounts appropriated in fiscal year 2001 and an increase of

$39,000 from amounts requested by the President. The Committee’s recommendation includes an increase of $39,000 for non-pay

inflation.

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UNITED STATES TAX COURT

SALARIES AND EXPENSES

Appropriation, fiscal year 2001 to date ............................................ $37,223,000

Budget estimate, fiscal year 2002 ..................................................... 37,305,000

Recommended in the bill ................................................................... 37,621,000

Bill compared with:

Appropriation, fiscal year 2001 .................................................. +398,000

Budget Estimate, fiscal year 2002 ............................................. +316,000

MISSION

The bulk of the Court’s work is the trial and adjudication of controversies involving deficiencies in income, estate, and gift taxes.

The Court also has jurisdiction to redetermine deficiencies in certain excise taxes; to issue declaratory judgments in the areas of

qualification of retirement plans, exemption of charitable organizations and the status of certain governmental obligations; and to decide certain cases involving disclosure of tax information by the

Commissioner of Internal Revenue.

RECOMMENDATION

The Committee recommends an appropriation of $37,621,000 for

the U.S. Tax Court, an increase of $398,000 from amounts appropriated in fiscal year 2001 and an increase of $316,000 from

amounts requested by the President. The Committee’s recommendation includes an increase of $316,000 for non-pay inflation.

TITLE V—GENERAL PROVISIONS

THIS ACT

Section 501. The Committee continues the provision limiting the

expenditure of funds to the current year unless expressly provided

in this Act.

Section 502. The Committee continues the provision limiting the

expenditure of funds for consulting services under certain conditions.

Section 503. The Committee continues the provision prohibiting

the use of funds to engage in activities that would prohibit the enforcement of section 307 of the 1930 Tariff Act.

Section 504. The Committee continues the provision prohibiting

the transfer of control over the Federal Law Enforcement Training

Center out of the Department of the Treasury.

Section 505. The Committee continues the provision concerning

employment rights of Federal employees who return to their civilian jobs after assignment with the Armed Forces.

Section 506. The Committee continues the provision concerning

compliance with the Buy American Act.

Section 507. The Committee continues the provision regarding

the purchase of American made equipment and products.

Section 508. The Committee continues the provision prohibiting

contract eligibility where fraudulent intent has been proven in

affixing ‘‘Made in America’’ labels.

Section 509. The Committee continues the provision prohibiting

the expenditure of funds for abortions under the FEHBP.

87

Section 510. The Committee continues the provision that would

authorize the expenditure of funds for abortions under the FEHBP

if the life of the mother is in danger or the pregnancy is a result

of an act of rape or incest.

Section 511. The Committee continues the provision providing

that fifty percent of unobligated balances may remain available for

certain purposes.

Section 512. The Committee continues the provision restricting

the use of funds for the White House to request official background

reports without the written consent of the individual who is the

subject of the report.

Section 513. The Committee continues the provision that cost accounting standards under the Federal Procurement Policy Act shall

not apply to the FEHBP.

Section 514. The Committee continues a provision regarding nonforeign area cost of living allowances.

Section 515. The Committee includes a new provision regarding

apportionment for International Food Assistance Programs.

TITLE VI—GOVERNMENTWIDE GENERAL PROVISIONS

DEPARTMENTS, AGENCIES, AND CORPORATIONS

Section 601. The Committee continues the provision authorizing

agencies to pay costs of travel to the United States for the immediate families of Federal employees assigned to foreign duty in the

event of a death or a life threatening illness of the employee.

Section 602. The Committee continues the provision requiring

agencies to administer a policy designed to ensure that all of its

workplaces are free from the illegal use of controlled substances.

Section 603. The Committee continues the provision regarding

price limitations on vehicles to be purchased by the Federal Government.

Section 604. The Committee continues the provision allowing

funds made available to agencies for travel, to also be used for

quarters allowances and cost-of-living allowances.

Section 605. The Committee continues the provision prohibiting

the government, with certain specified exceptions, from employing

non-U.S. citizens whose posts of duty would be in the continental

U.S.

Section 606. The Committee continues the provision ensuring

that agencies will have authority to pay GSA bills for space renovation and other services.

Section 607. The Committee continues the provision allowing

agencies to finance the costs of recycling and waste prevention programs with proceeds from the sale of materials recovered through

such programs.

Section 608. The Committee continues the provision providing

that funds may be used to pay rent and other service costs in the

District of Columbia.

Section 609. The Committee continues the provision precluding

the financing of groups by more than one Federal agency absent

prior and specific statutory approval.

Section 610. The Committee continues the provision authorizing

the Postal Service to employ guards and give them the same special police powers as GSA guards.

88

Section 611. The Committee continues the provision prohibiting

the use of funds for enforcing regulations disapproved in accordance with the applicable law of the U.S.

Section 612. The Committee continues the provision limiting the

pay increases of certain prevailing rate employees.

Section 613. The Committee continues the provision limiting the

amount of funds that can be used for redecoration of offices under

certain circumstances.

Section 614. The Committee continues the provision prohibiting

the expenditure of funds for the acquisition of additional law enforcement training facilities.

Section 615. The Committee continues the provision to allow for

interagency funding of national security and emergency telecommunications initiatives.

Section 616. The Committee continues the provision requiring

agencies to certify that a Schedule C appointment was not created

solely or primarily to detail the employee to the White House.

Section 617. The Committee continues the provision requiring

agencies to administer a policy designed to ensure that all workplaces are free from discrimination and sexual harassment.

Section 618. The Committee continues the provision prohibiting

the importation of any goods manufactured by forced or indentured

child labor.

Section 619. The Committee continues the provision prohibiting

the payment of any employee who prohibits, threatens or prevents

another employee from communicating with Congress.

Section 620. The Committee continues the provision prohibiting

Federal training not directly related to the performance of official

duties.

Section 621. The Committee continues the provision prohibiting

the expenditure of funds for implementation of agreements in nondisclosure policies unless certain provisions are included.

Section 622. The Committee continues the provision prohibiting

propaganda, publicity and lobbying by executive agency personnel

in support or defeat of legislative initiatives.

Section 623. The Committee continues the provision prohibiting

any Federal agency from disclosing an employee’s home address to

any labor organization, absent employee authorization or court

order.

Section 624. The Committee continues the provision prohibiting

funds to be used to provide non-public information such as mailing

or telephone lists to any person or organization outside the government without the approval of the Committees on Appropriations.

Section 625. The Committee continues the provision prohibiting

the use of funds for propaganda and publicity purposes not authorized by Congress.

Section 626. The Committee continues the provision directing

agency employees to use official time in an honest effort to perform

official duties.

Section 627. The Committee continues the provision authorizing

the use of funds to finance an appropriate share of the Joint Financial Management Improvement Program.

Section 628. The Committee continues and modifies the provision

authorizing agencies to transfer funds to the Policy and Operations

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account of GSA to finance an appropriate share of the Joint Financial Management Improvement Program.

Section 629. The Committee continues a provision, with technical

modifications, authorizing an Executive agency to use certain funds

to improve the affordability of child care for lower income Federal

employees.

Section 630. The Committee continues the provision that permits

breast feeding in a Federal building or on Federal property if the

woman and child are authorized to be there.

Section 631. The Committee continues the provision that permits

interagency funding of the National Science and Technology Council and provides for a report on the budget and resources of the National Science and Technology Council. The report should include

the entire budget of the National Science and Technology Council.

Section 632. The Committee continues the provision requiring

that any request for proposals, solicitation, grant application, form,

notification, press release, or other publications involving the distribution of Federal funds shall indicate the agency providing the

funds and the amount provided. This provision shall apply to direct

payments, formula funds, and grants received by a State receiving

Federal funds.

Section 633. The Committee includes a new provision to extend

the authorization for franchise fund pilots for one year in order to

allow the Administration to evaluate their results and make a decision regarding permanent authority.

Section 634. The Committee includes a new provision to clarify

that the Department of the Navy will provide and pay for utilities

for the official residence of the Vice President without reimbursement.

Section 635. The Committee includes a new provision authorizing

the Secretary of the Navy to accept gifts of consumable items, or

funds for them, to be accepted for use at official functions at the

Vice President’s residence, including the hosting of foreign dignitaries.

Section 636. The Committee includes a new provision clarifying

that certain Title 5 authorities are available with respect to civilian

personnel of the White House Office, the Executive Residence at

the White House, the Office of the Vice President, the Domestic

Policy Council, and the Office of Administration.

Section 637. The Committee includes a new provision requiring

the Office of Personnel Management to submit a report regarding

telecommuting centers.

Section 638. The Committee continues and modifies a provision

prohibiting the use of funds to monitor personal information relating to the use of Federal internet sites. Applies provision government-wide.

Section 639. The committee includes a new provision amending

Title 5 to clarify retirement benefits for air traffic controllers.

Section 640. The Committee includes a new provision amending

5 U.S.C. 4507 to make Federal employees in senior technical positions eligible for Presidential rank awards.

Section 641. The Committee includes a new general provision extending authority for the FEC to assess administrative fines for

straightforward violations of reporting deadlines from December

31, 2001 to December 31, 2003.

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Section 642. The Committee continues, with a technical modification, the provision addressing contraceptive coverage in health

plans participating in the FEHBP. The technical modification deletes the name of a provider no longer participating in the program.

Section 643. The Committee includes a new provision concerning

pay parity for federal civilian employees.

APPROPRIATIONS CAN BE USED ONLY FOR THE PURPOSES FOR

WHICH MADE

Title 31 of the United States Code makes clear that appropriations can be used only for the purposes for which they were appropriated as follows:

Section 1301. Application.

(a) Appropriations shall be applied only to the objects for which

the appropriations were made except as otherwise provided by law.

COMPLIANCE WITH HOUSE RULES

TRANSFER OF FUNDS

Pursuant to clause 3(f)(2), rule XIII of the Rules of the House of

Representatives, the following is submitted describing the transfer

of funds provided in the accompanying bill.

The table shows, by title, department and agency, the appropriations affected by such transfers:

APPROPRIATION TRANSFERS RECOMMENDED IN THE BILL

Account to which transfer is to be made Amount Account from which transfer is to be made Amount

Treasury Department offices, bureaus

and other groups.

$67,828,000 Department-wide Systems and Capital Investments programs.$67,828,000

Customs, Salaries & Expenses ........... 2,993,000 Harbor Maintenance Fee Collection ... 2,993,000

Federal Departments ........................... 1,300,000 Office of National Drug Control Policy 1,300,000

State and local entries ....................... 118,065,000 Federal Drug Programs—HIDTA ........ 118,065,000

Federal Departments ........................... 112,935,000 Federal Drug Programs—HIDTA ........ 112,935,000

State and local entities ...................... 22,236,000 Counterdrug Technology Assessment

Center.

22,236,000

Federal Departments ........................... 17,764,000 Counterdrug Technology Assessment

Center.

17,764,000

Federal Departments ........................... 238,800,000 Special Forfeiture Fund ...................... 238,800,000

Personnel Management ....................... 115,928,000 Trust Funds, Office of Personnel

Management.

115,928,000

Inspector General, OPM ...................... 10,016,000 Trust Funds, Office of Personnel

Management.

10,016,000

Merit System Protection Board ........... 2,520,000 Civil Service Retirement and Disability Trust Fund.2,520,000

Federal Financing Bank ...................... 72,000,000 General Service Administration, Federal Buildings Fund.72,000,000

Federal Departments ........................... 5,000,000 General Services Administration,

Electronic Government Fund.

5,000,000

Treasury Department offices, bureaus

and other groups.

850,000 General Services Administration, Allowances and Office Staff for

Former Presidents.

850,000

Treasury Department offices, bureaus,

and other organizations.

$10,000,000 Expanded Access to Financial Services.10,000,000

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RESCISSION OF FUNDS

In compliance with clause 3(f)(2) of rule XIII of the Rules of the

House of Representatives, the Committee reports that it recommends no rescissions in the bill.

CONSTITUTIONAL AUTHORITY

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

Each report of a committee on a bill or joint resolution

of a public character, shall include a statement citing the

specific powers granted to the Congress in the Constitution

to enact the law proposed by the bill or joint resolution.

The Committee on Appropriations bases its authority to report

this legislation from Clause 7 of Section 9 of Article I of the Constitution of the United States of America that states:

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

Appropriations contained in this Act are made pursuant to this

specific power granted by the Constitution.

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House

of Representatives, the following is a statement of general performance goals and objectives for which this measure authorizes funding:

The Committee on Appropriations considers program performance, including a program’s success in developing and attaining

outcome-related goals and objectives, in develping funding recommendations.

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

In compliance with clause 3(e) of rule XIII of the Rules of the

House of Representatives, changes in existing law made by the bill,

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic,

existing law in which no change is proposed is shown in roman):

SECTION 122 OF DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE JUDICIARY, AND RELATED

AGENCIES APPROPRIATIONS ACT, 1998

(Public Law 105–119)

SEC. 122. (a)***

* * * * * * *

(g)(1) Notwithstanding any other provision of law and subject to

paragraph (2), the Secretary of the Treasury is authorized to establish, for a period of øthree¿ four years from date of enactment of

this provision, a personnel management demonstration project providing for the compensation and performance management of not

more than a combined total of 950 employees who fill critical scientific, technical, engineering, intelligence analyst, language translator, and medical positions in the Bureau of Alcohol, Tobacco and

92

Firearmsø, the United States Customs Service, and the United

States Secret Service¿.

* * * * * * *

SECTION 403 OF GOVERNMENT MANAGEMENT REFORM

ACT OF 1994

(Public Law 103–356)

SEC. 403. FRANCHISE FUND PILOT PROGRAMS.

(a) * * *

* * * * * * *

(f) TERMINATION.—The provisions of this section shall expire on

October 1, ø2001¿ 2002.

ACT OF JULY 12, 1974

(Public Law 93–346)

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

* * * * * * *

SEC. 3. The Secretary of the Navy shall, subject to the supervision and control of the Vice President, provide for the military

staffing, utilities (including electrical) for, and the care and maintenance of the grounds of the temporary official residence of the Vice

President and, subject to reimbursement therefor out of funds appropriated for such purposes, provide for the civilian staffing, care,

maintenance, repair, improvement, alteration, and furnishing of

such residence.

* * * * * * *

SEC. 6. The Secretary of the Navy is authorized and directed,

with the approval of the Vice President, to accept donations of

money or property for the furnishing of or making improvements

in or about, or for use at official functions in or about, the temporary official residence of the Vice President, all such donations

to become the property of the United States and to be accounted

for as such.

* * * * * * *

TITLE 5, UNITED STATES CODE

* * * * * * *

PART III—EMPLOYEES

* * * * * * *

Subpart C—Employee Performance

* * * * * * *

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CHAPTER 45—INCENTIVE AWARDS

SUBCHAPTER I—AWARDS FOR SUPERIOR ACCOMPLISHMENTS

Sec.

4501. Definitions.

* * * * * * *

4507. Awarding of ranks in the Senior Executive Service.

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

* * * * * * *

SUBCHAPTER I—AWARDS FOR SUPERIOR

ACCOMPLISHMENTS

* * * * * * *

§ 4506. Regulations

The Office of Personnel Management shall prescribe regulations

and instructions under which øthe agency awards program¿ the

awards programs set forth by this subchapter shall be carried out.

* * * * * * *

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

(a) For the purpose of this section, the term ‘‘senior career employee’’ means an individual appointed to a position classified above

GS–15 and paid under section 5376 who is not serving—

(1) under a time-limited appointment; or

(2) in a position that is excepted from the competitive service

because of its confidential or policy-making character.

(b) Each agency employing senior career employees shall submit

annually to the Office of Personnel Management recommendations

of senior career employees in the agency to be awarded the rank of

Meritorious Senior Professional or Distinguished Senior Professional, which may be awarded by the President for sustained accomplishment or sustained extraordinary accomplishment, respectively.

(c) The recommendations shall be made, reviewed, and awarded

under the same terms and conditions (to the extent determined by

the Office of Personnel Management) that apply to rank awards for

members of the Senior Executive Service under section 4507.

* * * * * * *

Subpart G—Insurance and Annuities

* * * * * * *

CHAPTER 83—RETIREMENT

* * * * * * *

SUBCHAPTER III—CIVIL SERVICE RETIREMENT

* * * * * * *

§ 8335. Mandatory separation

(a) An air traffic controller shall be separated from the service

on the last day of the month in which he becomes 56 years of

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ageø.¿ or completes the age and service requirements for an annuity

under section 8336, whichever occurs later. The Secretary, under

such regulations as he may prescribe, may exempt a controller having exceptional skills and experience as a controller from the automatic separation provisions of this subsection until that controller

becomes 61 years of age. The Secretary shall notify the controller

in writing of the date of separation at least 60 days before that

date. Action to separate the controller is not effective, without the

consent of the controller, until the last day of the month in which

the 60-day notice expires.

* * * * * * *

SECTION 640 OF THE TREASURY AND GENERAL

GOVERNMENT APPROPRIATIONS ACT, 2000

SEC. 640. (a)***

* * * * * * *

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply with respect to øviolations occurring between January

1, 2000 and December 31, 2001¿ violations that relate to reporting

periods that begin on or after January 1, 2000, and that end on or

before December 31, 2003.

FINANCIAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

In accordance with section 308(a)(1)(C) of the Congressional

Budget Act of 1974 (Public Law 93–344), as amended, the financial

assistance to state and local governments is as follows:

Millions

FY 2002 new budget authority ............................................................. 232

2002 outlays resulting therefrom ......................................................... 58

COMPARISON WITH BUDGET RESOLUTION

Clause 3(c)(2) of rule XIII of the House of Representatives requires section 308(a)(1)(A) of the Congressional Budget and Impoundment Control Act of 1974 (Public Law 93–344), as amended,

requires that the report accompanying a bill providing new budget

authority contain a statement detailing how the authority compares with the reports submitted under section 302(b) of the Act

for the most recently agreed to concurrent resolution on the budget

for the fiscal year. This information follows:

[In millions of dollars]

302(b) allocation This bill—

Budget authority Outlays Budget authority Outlays

Discretionary .................................................................................. 16,880 16,134 13,021 16,223

Mandatory ...................................................................................... 15,478 15,475 15,478 15,475

Note.—Pursuant to section 314 of the Congressional Budget Act of 1974, as amended, increases to the Committee’s section 302(a) allocation are authorized for funding in the reported bill for the Earned Income Tax Credit Compliance Initiative. After the bill is reported to the

House, the Chairman of the Committee on the Budget will provide an increased section 302(a) allocation consistent with the funding provided in the bill.

95

FIVE YEAR OUTLAY PROJECTIONS

In compliance with section 308(a)(1)(B) of the Congressional

Budget Act of 1974 (Public Law 93–344), as amended, the following

table contains five-year projections associated with the budget authority provided in the accompanying bill:

Millions

Budget Authority ................................................................................... 32,499

Outlays:

Fiscal year 2002 .............................................................................. 27,972

Fiscal year 2003 .............................................................................. 2,830

Fiscal year 2004 .............................................................................. 671

Fiscal year 2005 .............................................................................. 262

Fiscal year 2006 and future years ................................................ 131

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

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

Pursuant to clause 3(f)(1) of rule XIII of the Rules of the House

of Representatives, the Committee has inserted at the appropriate

place in the report a description of the effects of provisions proposed in the accompanying bill which may be considered, under

certain circumstances, to change the application of existing law, either directly or indirectly.

The bill provides, in some instances, for funding of agencies and

activities where legislation has not yet been finalized. In addition,

the bill carries language, in some instances, permitting activities

not authorized by law, or exempting agencies from certain provisions of law, but which has been carried in appropriations acts for

many years. Additionally, the Committee includes a number of new

general provisions.

In title IV of the bill, in connection with the General Services Administration, certain limitations on availability of revenue in the

Federal Buildings Fund and certain legislative provisions have

been carried forward from last year.

The bill continues a number of general provisions applying to

agencies covered by the bill as well as certain provisions applying

Government-wide. These provisions have been carried in the prior

year appropriations bill, and some have been carried for many

years. Additionally, the Committee includes a number of new general provisions.

TITLE I—DEPARTMENT OF THE TREASURY

DEPARTMENTAL OFFICES

The Committee has continued language which provides funds for

operation and maintenance of the Treasury Building and Annex,

hire of passenger motor vehicles; maintenance, repairs, and improvements of, and purchase of commercial insurance policies for

real properties leased or owned overseas; official travel expenses,

official reception and representation expenses; and unforeseen

emergencies of a confidential nature. The Committee continues language providing funds for grants to state and local law enforcement

groups to help fight money laundering.

96

DEPARTMENT-WIDE SYSTEMS AND CAPITAL INVESTMENTS PROGRAMS

The Committee has continued language that provides funds for

the development and acquisition of automated data processing

equipment, software, and services, providing transfer authority,

and prohibiting expenditures for IRS’s Information Technology Systems.

OFFICE OF INSPECTOR GENERAL

The Committee has continued language that provides funds to

carry out the provisions of the Inspector General Act of 1978, the

hire of vehicles, official travel expenses, and unforeseen emergencies.

TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

The Committee has continued language that provides for the

purchase and hire of motor vehicles, services by 5 U.S.C. 3109,

travel expenses, and unforeseen emergencies.

TREASURY BUILDING AND ANNEX REPAIR AND RESTORATION

The Committee has continued language that provides funds for

the repair, alteration, and improvement of the Treasury Building

and Annex.

EXPANDED ACCESS TO FINANCIAL SERVICES

The Committee has continued language providing $10,000,000

for the Secretary of the Treasury to develop and implement a program to expand access to financial services to low-income individuals who do not currently utilize bank accounts or other financial

service opportunities.

FINANCIAL CRIMES ENFORCEMENT NETWORK

The Committee has continued language that provides funds for

hire of vehicles and official reception and representation expenses;

the travel of non-federal personnel attending conferences or meetings involving financial law enforcement, intelligence, and regulation; the purchase of personal services contracts; and allowing

FinCEN to provide assistance to federal law enforcement agencies

with or without reimbursement.

COUNTERTERRORISM FUND

The Committee continues and modifies language that provides

funds for the Secretary of the Treasury to reimburse Treasury Department organizations for support of countererrorism efforts. The

language no longer designates this as emergency funding.

FEDERAL LAW ENFORCEMENT TRAINING CENTER

The Committee has continued language that provides funds for:

material and support costs of basic training; the purchase and hire

of vehicles; student athletic and related activities; uniform purchases; for the conduct of and participation in firearms matches,

and presentation of awards; room and board for interns; training

U.S. Postal Service, State and local law enforcement personnel;

97

training of foreign law enforcement personnel on a space available,

reimbursable basis with discretion by the Secretary to waive reimbursement; training of private sector security officials on a reimbursable space available basis; travel expenses of non-federal personnel to attend course development meetings and training sponsored by the Center; training for the GREAT program; and the provision of short term medical services for students undergoing training at the center. It has also continued language authorizing acceptance of gifts, including funding of a gift for certain honor graduate students, and to authorize obligation of funds in anticipation

of reimbursements from agencies receiving training at the Center,

provided that total obligations do not exceed total budgetary resources at the end of the fiscal year.

ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED

EXPENSES

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

available until expended.

INTERAGENCY CRIME AND DRUG ENFORCEMENT

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

task forces.

FINANCIAL MANAGEMENT SERVICE

The Committee has continued language that provides that funds

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

BUREAU OF ALCOHOL, TOBACCO AND FIREARMS

The Committee has continued language which provides funds for

the hire of aircraft, the services of expert witnesses, official reception and representation expenses, training of State and local law

enforcement agencies, the provision of laboratory assistance to

State and local agencies, the payment of attorney’s fees, the equipping of certain vessels, vehicles, equipment or aircraft. The Committee has continued language that: provides that no funds shall

be used to consolidate or centralize the records pertaining to firearms licenses; prohibits the payment of administrative expenses in

changing the definition of curios or relics; prohibits the transfer of

ATF’s functions to another federal agency; prohibiting electronic retrieval of information gathered pursuant to 18 U.S.C. 923(g)(4) by

name or personal identification; and prohibits ATF from acting

upon applications for relief from Federal firearms disabilities. The

Committee has continued language relating to payment of per diem

and/or subsistence allowances to cover situations where a major investigative assignment requires an employee to work 16 hours or

more per day or to remain overnight at his or her post of duty; and

continues language providing funding for cooperative research and

development programs for Laboratory Services and Fire Research

98

Center activities. The Committee continues and modifies language

regarding the purchase of vehicles. The Committee includes language making funding for Gang Resistance Education And Training (GREAT) grants available for obligation until September 30,

2003.

UNITED STATES CUSTOMS SERVICE

SALARIES AND EXPENSES

The Committee has continued and modified language that provides funds for the purchase and hire of vehicles, official reception

and representation expenses, personal services contracts abroad,

compensation to informers, rental space for pre-clearance operations, special operations, procurement of automation infrastructure items, research, uniforms, repairs to Customs facilities, the

child pornography tipline and Project Alert. The Committee continues the provision establishing the aggregate overtime limitation.

The Committee eliminates language restricting the number of vehicles that may be procured, and includes new language that provides funding for the procurement and deployment of non-intrusive

inspection technology.

HARBOR MAINTENANCE FEE COLLECTION

The Committee has continued language relating to the appropriations of funds to be transferred to and merged with the Customs Salaries and Expenses account to be used for the collection

of the Harbor Maintenance Fee pursuant to Public Law 103–182.

OPERATION, MAINTENANCE, AND PROCUREMENT, AIR AND MARINE

INTERDICTION PROGRAMS

The Committee has continued language providing funds for the

operation and maintenance of marine vessels, aircraft and other

equipment; operational training and mission-related travel; rental

payments; operations for interdiction of narcotics and other goods;

provision of support to Customs and other federal, state, or local

agencies in enforcement or administration of laws enforced by Customs; and for other law enforcement and emergency humanitarian

efforts; and prohibiting transfer of certain aircraft without prior

Committee approval.

AUTOMATION MODERNIZATION

The Committee has continued and modified language providing

funding for major information technology projects for the U.S. Customs Service, provides that funds are available until expended, and

modifies the characterization of expenditure plans.

U.S. MINT

The Committee has included new language identifying the source

of funding for the operations and activities of the U.S. Mint and

specifying the level of funding for circulating coinage and protective

service capital investments. The Committee has included new language requiring the U.S. Mint pay for a study of coin circulation

by the General Accounting Office.

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BUREAU OF THE PUBLIC DEBT

The Committee has continued language which provides that

funds may be used for reception and representation expenses and

language which provides that a portion of the funds will remain

available until expended. The Committee also has continued language which provides that appropriations from the General Fund

will be reduced as fees are collected and language which provides

that funds are to be derived from the Oil Spill Liability Trust Fund

for administration of the Fund.

INTERNAL REVENUE SERVICE

PROCESSING, ASSISTANCE, AND MANAGEMENT

The Committee has continued language providing funds for management services, rent and utilities, services authorized by 5 U.S.C.

3109, and official reception and representation expenses. The Committee has modified the language concerning the intent of the

funds to include reference to pre-filing and filing services and related activities. The Committee also has continued language providing funds for the Tax Counseling for the Elderly program.

TAX LAW ENFORCEMENT

The Committee has continued language that provides funds for

the purchase and hire of vehicles, and services authorized by 5

U.S.C. 3109. The Committee has modified the language concerning

the intent of the funds to include reference to post-filing services

and related activities. The Committee continues language providing

that funds provided for research shall be available for two fiscal

years.

EARNED INCOME TAX CREDIT COMPLIANCE INITIATIVE

The Committee has continued language providing that funds for

earned income tax credit compliance and error reduction initiatives

may be used to reimburse the Social Security Administration.

INFORMATION SYSTEMS

The Committee has continued language that provides funds for

information systems and telecommunications support and funds for

the hire of motor vehicles.

BUSINESS SYSTEMS MODERNIZATION

The Committee has continued language that provides for the capital asset acquisition of information technology, including management and related contractual costs of said acquisitions, including

contractual costs associated with operation authorized by 5 U.S.C.

3109. The Committee has renamed the account, previously called

the Information Technology Investment account, and continued restrictions on the use of the funds.

ADMINISTRATIVE PROVISIONS—INTERNAL REVENUE SERVICE

Section 101. The Committee continues the provision that allows

the transfer of 5 percent of any appropriation, made available to

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the IRS to any other IRS appropriation, subject to prior Congressional approval.

Section 102. The Committee continues the provision that requires the IRS to maintain a training program in taxpayer’s rights,

dealing courteously with taxpayers, and cross cultural relations.

Section 103. The Committee continues the provision that requires the IRS to institute policies and procedures, which will safeguard the confidentiality of taxpayer information.

Section 104. The Committee continues the provision that requires the IRS to maintain and improve a 1–800 help line service

for taxpayers.

UNITED STATES SECRET SERVICE

The Committee has continued language that provides funds for

the hire of aircraft, training and assistance requested by State and

local governments, services of expert witnesses, rental of certain

buildings, improvements to buildings as may be necessary for protective functions, per diem and subsistence allowance, the conduct

of firearms matches, presentation of awards, travel of employees on

protective missions, for repairs, alterations, and minor construction, making grants to conduct behavioral research, uniforms, research reimbursement for protection as authorized by law, reception and representation expenses, assistance to foreign law enforcement for counterfeit investigations. The Committee continues language permitting some funding for protective travel to remain

available for two years. The Committee continues language making

funds available as a grant for activities related to the investigations of exploited children. The Committee continues and modifies

language regarding the purchase of vehicles.

ACQUISITION, CONSTRUCTION, IMPROVEMENT, AND RELATED

EXPENSES

The Committee has continued language providing funds for the

acquisition, construction, improvement, and related expenses of Secret Service facilities.

GENERAL PROVISIONS—DEPARTMENT OF THE TREASURY

Section 110. The Committee continues the provision that requires the Secretary of the Treasury to comply with certain reprogramming guidelines when obligating or expending funds for

law enforcement activities.

Section 111. The Committee continues the provision that allows

the Department of the Treasury to purchase uniforms, insurance,

and motor vehicles without regard to the general purchase price

limitation, and enter in to contracts with the State Department for

health and medical services for Treasury employees in overseas locations.

Section 112. The Committee continues the provision that requires expenditures of funds so as not to diminish efforts under the

Federal Alcohol Administration Act.

Section 113. The Committee continues the provision that authorizes transfers, up to 2 percent, between law enforcement appropriations under certain circumstances.

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Section 114. The Committee continues the provision that authorizes transfers, up to 2 percent, between Departmental Offices, Office of the Inspector General, Financial Management Service, and

the Bureau of the Public Debt appropriations under certain circumstances.

Section 115. The Committee continues the provision that authorizes transfer, up to 2 percent, between the Internal Revenue Service and the Treasury Inspector General for Tax Administration

under certain circumstances.

Section 116. The Committee continues the provision that provides that no funds may be obligated for the purchase of law enforcement vehicles until the Secretary of the Treasury certifies that

the purchase is consistent with Departmental vehicle management

principles.

Section 117. The Committee continues the provision that prohibits the Department of the Treasury from undertaking a redesign

of the $1 Federal Reserve note.

Section 118. The Committee continues the provision that provides for transfers from and reimbursements to the Salaries and

Expenses appropriation of the Financial Management Service for

the purposes of debt collection.

Section 119. The Committee includes a new provision that authorizes intelligence and intelligence-based activities of the Department of Treasury.

Section 120. The Committee includes a new provision that extends the pilot project for designated critical occupations for one

additional year.

Section 121. The Committee includes a new provision that requires authorization for the construction and operation of a museum by the United States Mint.

TITLE II—POSTAL SERVICE

PAYMENT TO THE POSTAL SERVICE FUND

The Committee has continued language that prohibits funds

made available to the Postal Service from being used to close or

consolidate certain post offices, from charging employees of local

and child support agencies a fee for information, provides funds for

free mail for the blind, and for six day mail delivery and rural delivery of mail at existing levels. The Committee continues language

regarding the availability of funds.

TITLE III—EXECUTIVE OFFICE OF THE PRESIDENT AND

FUNDS APPROPRIATED TO THE PRESIDENT

COMPENSATION OF THE PRESIDENT AND THE WHITE HOUSE OFFICE

The Committee has continued language that mandates that unused amounts of the President’s expense allowance will revert to

the Treasury and not be taxable to the President and which provides funds for service authorized by 5 U.S.C. 3109, subsistence expenses, hire of vehicles, newspapers, periodicals, teletype news

service, travel, and official entertainment expenses. The Committee

has continued language making funds available for reimbursement

to the White House Communications Agency.

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EXECUTIVE RESIDENCE AT THE WHITE HOUSE

The Committee has continued language that provides funds for

operation and maintenance of the White House for official entertainment expenses; language specifying the authorized use of

funds; language specifying that reimbursable expenses are the exclusive authority of the Executive Residence to incur obligations

and receive offsetting collections; language requiring the sponsors

of political events to make advance payments; language requiring

the national committee of the political party of the President to

maintain $25,000 on deposit; language requiring the Executive

Residence to ensure that amounts owed are billed within 60 days

of a reimbursable event and collected within 30 days of the bill notice; language authorizing the Executive Residence to charge and

assess interest and penalties on late payments; language authorizing all reimbursements to be deposited into the Treasury as a

miscellaneous receipt; language requiring a report to the Committee on the reimbursable expenses within 90 days of the end of

the fiscal year; language requiring the Executive Residence to

maintain a system for tracking and classifying reimbursable

events; and language specifying that the Executive Residence is not

exempt from the requirements of subchapter I or II of chapter 37

of title 31, United States Code.

WHITE HOUSE REPAIRS AND RESTORATION

The Committee has continued language that provides funds for

the repair, alteration, and improvement of the Executive Residence

at the White House and includes new language that allows the

funds to be used for preventative maintenance in conjunction with

the General Services Administration, the Secret Service, the Office

of the President, and other agencies charged with the administration and care of the White House.

SPECIAL ASSISTANCE TO THE PRESIDENT AND OFFICIAL RESIDENCE

OF THE VICE PRESIDENT

The Committee has continued language that provides funds for

operation and maintenance of the official residence of the Vice

President, the hire of vehicles, official entertainment expenses and

provides for the transfer of funds as necessary. The Committee has

continued language that enables the Vice President to provide assistance to the President, services authorized by 5 U.S.C. 3109,

subsistence, and the hire for vehicles.

COUNCIL OF ECONOMIC ADVISERS

The Committee has continued language that provides funds for

the expenses of the Council of Economic Advisers.

OFFICE OF POLICY DEVELOPMENT

The Committee has continued language that provides funds for

expenses of the Office of Policy Development.

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NATIONAL SECURITY COUNCIL

The Committee has continued language that provides funds for

expenses of the National Security Council.

OFFICE OF ADMINISTRATION

The Committee has continued language that provides funds for

expenses of the Office and the hire of vehicles and funds for a capital investment plan that provides for the continued modernization

of the information technology infrastructure. The Committee has

included new language prohibiting the use of certain Information

Technology funds until the Office of Administration submits a report that (a) includes an Enterprise Architecture, as defined in

OMB Circular A–130 and federal Chief Information Officer guidance; (b) presents and Information Technology (IT) Human Capital

Plan, to include an inventory of current IT workforce knowledge

and skills, a definition of needed IT knowledge and skills, a gap

analysis of any shortfalls, and a plan for addressing any shortfalls;

(c) presents a capital investment plan for implementing the Enterprise Architecture; (d) includes a description of the IT capital planning and investment control process; and (e) is reviewed and approved by OMB, is reviewed by the General Accounting Office, and

is approved by the Committee on Appropriations.

OFFICE OF MANAGEMENT AND BUDGET

The Committee has continued language that provides funds for

expenses, the hire of vehicles, carrying out provisions of chapter 35

of 44 U.S.C., directs that funds shall be applied only to items for

which appropriations were made, prohibits the review of agricultural marketing orders and the alteration of certain testimony. The

Committee has included new language: (1) establishing a representational allowance; (2) prohibiting the use of funds for the purpose

of OMB calculating, preparing, or approving any tabular or other

material that proposes the sub-allocation of budget authority or

outlays by the Committees on Appropriations; (3) prohibiting the

obligation of certain funds for the Office of Information and Regulatory Affairs until the Office of Management and Budget submits

a report to the House Committee on Appropriations that provides

an assessment of the total costs of implementing Executive Order

13166; and (4) requiring the Housing, Treasury and Finance Division, in consultation with the Small Business Administration, to

develop subsidy cost estimates for certain loans and to report on

the progress of these estimates prior to the submission of the President’s fiscal year 2003 budget.

OFFICE OF NATIONAL DRUG CONTROL POLICY

The Committee has continued language that provides funds for

expenses, research, official reception and representation expenses,

participation in joint projects, and allows for the acceptance of

gifts. The Committee has continued language providing funds for

model state drug law conferences and policy research and evaluation and making these funds available until expended.

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COUNTERDRUG TECHNOLOGY ASSESSMENT CENTER

The Committee has continued language that provides funds for

counternarcotics research and development and the technology

transfer program.

FEDERAL DRUG CONTROL PROGRAMS

HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM

The Committee has continued language that provides a certain

level of funding for drug control activities for State, local and Federal drug control efforts, and requires obligation of funds within a

specified period of time. The Committee continues language regarding the availability of funds.

SPECIAL FORFEITURE FUND

The Committee has continued and modified language that provides a certain level of funding for the Drug-Free Media Campaign

Act, for the Drug-Free Communities Act, and to provide a grant to

the National Drug Court Institute, and for the Counterdrug Intelligence Executive Secretariat. The Committee also modifies language relating to funding anti-doping efforts through the U.S. AntiDoping Agency.

TITLE IV—INDEPENDENT AGENCIES

COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR

SEVERELY DISABLED

The Committee has continued language that provides funds for

expenses of the Committee.

FEDERAL ELECTION COMMISSION

The Committee has continued language that provides funds for

expenses of the Commission and specifying a level of funding for

internal automated data processing systems and reception and representation expenses.

FEDERAL LABOR RELATIONS AUTHORITY

The Committee has continued language that provides funds for

the expenses of the authority, including authorized services, hire of

experts and consultants, hire of passenger motor vehicles, and rental of conference rooms in the District of Columbia. The Committee

has also continued provisions on compensation for public members

of the Federal Service Impasse Panel and of the use of fees charged

to participants at labor-management relations conferences.

GENERAL SERVICES ADMINISTRATION

FEDERAL BUILDINGS FUND

The Committee has continued language dealing with the conditions under which funds made available to the Federal Buildings

Fund can be used and has designated certain projects that can be

undertaken. Many technical provisions have been included regardVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00104 Fmt 6659 Sfmt 6602 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
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ing use of funds in the Federal Buildings Fund that are not specifically authorized by law.

The Committee has continued language to limit funds available

for construction and repair and alteration of building projects not

authorized by law. A more detailed analysis of the Federal Buildings Funds can be found in the General Services Administration

chapter of this report.

POLICY AND OPERATIONS

The Committee continues language which provides funds for government-wide policy and oversight activities, the Board of Contract

Appeals, accounting records management and other services incident to adjudication of Indian Tribal Claims, services authorized by

5 U.S.C. 3109, and official reception and representation expenses.

The Committee continues language which provides that a portion

of the funds appropriated will remain available until expended.

OFFICE OF INSPECTOR GENERAL

The Committee has continued language that provides funds for

services authorized by 5 U.S.C. 3109 and expenses for the Office,

payment for information and detection of fraud, and awards.

ELECTRONIC GOVERNMENT FUND

The Committee includes new language that provides funds for

necessary expenses in support of interagency projects that enable

the Federal Government to expand its ability to conduct activities

electronically through the development and implementation of innovative used of the Internet and other electronic methods. The

Committee includes new language that allows funds to be transferred, upon condition, and to be available until expended.

ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS

The Committee has continued language that provides funds for

compliance with Public Law 95–138.

GENERAL PROVISIONS—GENERAL SERVICES ADMINISTRATION

Section 401. The Committee continues the provision that provides that costs included in rent received from government corporations for operation, protection, maintenance, upkeep, repair and

improvement shall be credited to the Federal Buildings Fund.

Section 402. The Committee continues the provision providing

authority for the use of funds for the hire of motor vehicles.

Section 403. The Committee continues the provision providing

that funds made available for activities of the Federal Buildings

Fund may be transferred between appropriations with advance approval of the Congress.

Section 404. The Committee continues the provision prohibiting

the use of funds for developing courthouse construction requests

that do not meet GSA standards and the priorities of the Judicial

Conference.

Section 405. The Committee continues the provision providing

that no funds may be used to increase the amount of occupiable

square feet, provide cleaning services, security enhancements, or

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any other service usually provided, to any agency which does not

pay the requested rent.

Section 406. The Committee continues the provision providing for

Information Technology Fund repayment from sponsored projects

that realize program savings.

Section 407. The Committee continues the provision that permits GSA to pay small claims (up to $250,000) made against the government.

Section 408. The Committee provides a new provision requiring

the General Services Administration to increase its fiscal year 2002

expenditures for purchasing alternative fuel vehicles by $5,000,000

above its fiscal year 2001 expenditures.

MERIT SYSTEMS PROTECTION BOARD

The Committee has continued language that provides funds for

the Board.

MORRIS K. UDALL SCHOLARSHIP AND EXCELLENCE IN NATIONAL

ENVIRONMENTAL POLICY FOUNDATION

MORRIS K. UDALL SCHOLARSHIP AND EXCELLENCE IN NATIONAL

ENVIRONMENTAL POLICY TRUST FUND

The Committee includes new language that provides funds for

the Morris K. Udall Scholarship and Excellence in National Environmental Policy Trust Fund, allows a portion of the funds to be

transferred by the Morris K. Udall Scholarship and Excellence in

National Environmental Policy Foundation to support the Native

Nations Institute, and requires a report on the funding transfer.

NATIONAL ARCHIVES AND RECORDS ADMINISTRATION

OPERATING EXPENSES

The Committee has continued language that provides funds for

the review and declassification of documents, the hire of passenger

vehicles, and language that authorizes the Archivist to use excess

funds available from the amount borrowed for construction of the

National Archives facility for expenses necessary to provide storage

for holdings. The Committee provides new language specifying

funds for the electronic records archive and making a portion of

these funds available until September 30, 2004.

REPAIRS AND RESTORATION

The Committee has continued language that provides funds for

the repair, alteration, and improvement of archives facilities and

presidential libraries.

OFFICE OF GOVERNMENT ETHICS

The Committee has continued language that provides funds for

the Office.

OFFICE OF PERSONNEL MANAGEMENT

The Committee has continued language that provides for expenses of the Office, services authorized by 5 U.S.C. 3109, medical

examinations under certain conditions, rental of conference rooms,

107

hire of vehicles, official reception and representation expenses, advances for reimbursement per diem and/or subsistence allowances

for employees affected by Voting Rights Act activities, transfers to

appropriate trust funds, prohibition of funds for the Legal Examining Unit, authority to accept donations for the White House Fellows program, and making funds available until expended for automating retirement record keeping. The Committee includes new

language making funding available until expended for a government-wide human resources data network.

OFFICE OF INSPECTOR GENERAL

The Committee has continued language that provides funds for

expenses of the Office, audit of the retirement and insurance programs, and the rental of conference rooms.

GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEES HEALTH

BENEFITS

The Committee has continued language that provides funds for

the payment of government contributions.

GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEE LIFE

INSURANCE

The Committee has continued language that provides funds for

the payment of government contributions.

PAYMENT TO CIVIL SERVICE RETIREMENT AND DISABILITY FUND

The Committee has continued language that provides funds for

the payment of government contributions.

OFFICE OF SPECIAL COUNSEL

The Committee has continued language that provides funds for

the Office, including the payment of fees and expenses for witnesses, rental of conference rooms, and the hire of passenger motor

vehicles.

UNITED STATES TAX COURT

The Committee has continued language that provides funds for

services authorized by 5 U.S.C. 3109 and language which provides

that travel expenses of the judges shall be paid upon written certification of the judge.

TITLE V—GENERAL PROVISIONS

THIS ACT

Section 501. The Committee continues the provision limiting the

expenditure of funds to the current year unless expressly provided

in this Act.

Section 502. The Committee continues the provision limiting the

expenditure of funds for consulting services under certain conditions.

Section 503. The Committee continues the provision prohibiting

the use of funds to engage in activities that would prohibit the enforcement of section 307 of the 1930 Tariff Act.

108

Section 504. The Committee continues the provision prohibiting

the transfer of control over the Federal Law Enforcement Training

Center out of the Department of the Treasury.

Section 505. The Committee continues the provision concerning

employment rights of Federal employees who return to their civilian jobs after assignment with the Armed Forces.

Section 506. The Committee continues the provision concerning

compliance with the Buy American Act.

Section 507. The Committee continues the provision regarding

the purchase of American made equipment and products.

Section 508. The Committee continues the provision prohibiting

contract eligibility where fraudulent intent has been proven in

affixing ‘‘Made in America’’ labels.

Section 509. The Committee continues the provision prohibiting

the expenditure of funds for abortions under the FEHBP.

Section 510. The Committee continues the provision that would

authorize the expenditure of funds for abortions under the FEHBP

if the life of the mother is in danger or the pregnancy is a result

of an act of rape or incest.

Section 511. The Committee continues the provision providing

that fifty percent of unobligated balances may remain available for

certain purposes.

Section 512. The Committee continues the provision restricting

the use of funds for the White House to request official background

reports without the written consent of the individual who is the

subject of the report.

Section 513. The Committee continues the provision that cost accounting standards under the Federal Procurement Policy Act shall

not apply to the FEHBP.

Section 514. The Committee continues a provision regarding nonforeign area cost of living allowances.

Section 515. The Committee includes a new provision regarding

apportionment for International Food Assistance Programs.

TITLE VI—GOVERNMENT WIDE GENERAL PROVISIONS

DEPARTMENTS, AGENCIES, AND CORPORATIONS

Section 601. The Committee continues the provision authorizing

agencies to pay costs of travel to the United States for the immediate families of Federal employees assigned to foreign duty in the

event of a death or a life threatening illness of the employee.

Section 602. The Committee continues the provision requiring

agencies to administer a policy designed to ensure that all of its

workplaces are free from the illegal use of controlled substances.

Section 603. The Committee continues the provision regarding

price limitations on vehicles to be purchased by the Federal Government.

Section 604. The Committee continues the provision allowing

funds made available to agencies for travel, to also be used for

quarters allowances and cost-of-living allowances.

Section 605. The Committee continues the provision prohibiting

the government, with certain specified exceptions, from employing

non-U.S. citizens whose posts of duty would be in the continental

U.S.

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Section 606. The Committee continues the provision ensuring

that agencies will have authority to pay GSA bills for space renovation and other services.

Section 607. The Committee continues the provision allowing

agencies to finance the costs of recycling and waste prevention programs with proceeds from the sale of materials recovered through

such programs.

Section 608. The Committee continues the provision providing

that funds may be used to pay rent and other service costs in the

District of Columbia.

Section 609. The Committee continues the provision precluding

the financing of groups by more than one Federal agency absent

prior and specific statutory approval.

Section 610. The Committee continues the provision authorizing

the Postal Service to employ guards and give them the same special police powers as GSA guards.

Section 611. The Committee continues the provision prohibiting

the use of funds for enforcing regulations disapproved in accordance with the applicable law of the U.S.

Section 612. The Committee continues the provision limiting the

pay increases of certain prevailing rate employees.

Section 613. The Committee continues the provision limiting the

amount of funds that can be used for redecoration of offices under

certain circumstances.

Section 614. The Committee continues the provision prohibiting

the expenditure of funds for the acquisition of additional law enforcement training facilities.

Section 615. The Committee continues the provision to allow for

interagency funding of national security and emergency telecommunications initiatives.

Section 616. The Committee continues the provision requiring

agencies to certify that a Schedule C appointment was not created

solely or primarily to detail the employee to the White House.

Section 617. The Committee continues the provision requiring

agencies to administer a policy designed to ensure that all workplaces are free from discrimination and sexual harassment.

Section 618. The Committee continues the provision prohibiting

the importation of any goods manufactured by forced or indentured

child labor.

Section 619. The Committee continues the provision prohibiting

the payment of any employee who prohibits, threatens or prevents

another employee from communicating with Congress.

Section 620. The Committee continues the provision prohibiting

Federal training not directly related to the performance of official

duties.

Section 621. The Committee continues the provision prohibiting

the expenditure of funds for implementation of agreements in nondisclosure policies unless certain provisions are included.

Section 622. The Committee continues the provision prohibiting

propaganda, publicity and lobbying by executive agency personnel

in support or defeat of legislative initiatives.

Section 623. The Committee continues the provision prohibiting

any Federal agency from disclosing an employee’s home address to

any labor organization, absent employee authorization or court

order.

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Section 624. The Committee continues the provision prohibiting

funds to be used to provide non-public information such as mailing

or telephone lists to any person or organization outside the government without the approval of the Committees on Appropriations.

Section 625. The Committee continues the provision prohibiting

the use of funds for propaganda and publicity purposes not authorized by Congress.

Section 626. The Committee continues the provision directing

agency employees to use official time in an honest effort to perform

official duties.

Section 627. The Committee continues the provision authorizing

the use of funds to finance an appropriate share of the Joint Financial Management Improvement Program.

Section 628. The Committee continues and modifies the provision

authorizing agencies to transfer funds to the Policy and Operations

account of GSA to finance an appropriate share of the Joint Financial Management Improvement Program.

Section 629. The Committee continues a provision, with technical

modifications, authorizing an Executive agency to use certain funds

to improve the affordability of child care for lower income Federal

employees.

Section 630. The Committee continues the provision that permits

breast feeding in a Federal building or on Federal property if the

woman and child are authorized to be there.

Section 631. The Committee continues the provision that permits

interagency funding of the National Science and Technology Council and provides for a report on the budget and resources of the National Science and Technology Council. The report should include

the entire budget of the National Science and Technology Council.

Section 632. The Committee continues the provision requiring

that any request for proposals, solicitation, grant application, form,

notification, press release, or other publications involving the distribution of Federal funds shall indicate the agency providing the

funds and the amount provided. This provision shall apply to direct

payments, formula funds, and grants received by a State receiving

Federal funds.

Section 633. The Committee includes a new provision to extend

the authorization for franchise fund pilots for one year in order to

allow the Administration to evaluate their results and make a decision regarding permanent authority.

Section 634. The Committee includes a new provision to clarify

that the Department of the Navy will provide and pay for utilities

for the official residence of the Vice President without reimbursement.

Section 635. The Committee includes a new provision authorizing

the Secretary of the Navy to accept gifts of consumable items, or

funds for them, to be accepted for use at official functions at the

Vice President’s residence, including the hosting of foreign dignitaries.

Section 636. The Committee includes a new provision clarifying

that certain Title 5 authorities are available with respect to civilian

personnel of the White House Office, the Executive Residence at

the White House, the Office of the Vice President, the Domestic

Policy Council, and the Office of Administration.

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Section 637. The Committee includes a new provision requiring

the Office of Personnel Management to submit a report regarding

telecommuting centers.

Section 638. The Committee continues and modifies a provision

prohibiting the use of funds to monitor personal information relating to the use of Federal internet sites. Applies provision government-wide.

Section 639. The Committee includes a new provision amending

Title 5 to clarify retirement benefits for air traffic controllers.

Section 640. The Committee includes a new provision amending

5 U.S.C. 4507 to make Federal employees in senior technical positions eligible for Presidential rank awards.

Section 641. The Committee includes a new general provision extending authority for the Federal Election Commission to assess

administrative fines for straightforward violations of reporting

deadlines from December 31, 2001 to December 31, 2003.

Section 642. The Committee continues, with a technical modification, the provision addressing contraceptive coverage in health

plans participating in the FEHBP. The technical modification deletes the name of a provider no longer participating in the program.

Section 643. The Committee includes a new provision concerning

pay parity for federal civilian employees.

DETAILED EXPLANATIONS IN REPORT

It should be emphasized again that a more detailed statement

describing the effect of the above provisions inserted or continued

this year by the Committee which directly or indirectly change the

application of existing law may be found at the appropriate place

in this report.

APPROPRIATIONS NOT AUTHORIZED BY LAW

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

APPROPRIATIONS NOT AUTHORIZED BY LAW

Last year of authorization Authorization level Appropriations in last

year of authorization Appropriations in this bill

Department Wide Systems and

Capital Investments Program.

N/A ......................... N/A ......................... N/A ......................... $67,828,000

Treasury Building and Annex

Repair and Restoration.

N/A ......................... N/A ......................... N/A ......................... $32,932,000

Expanded Access to Financial

Services.

N/A ......................... N/A ......................... N/A ......................... $10,000,000

Financial Crimes Enforcement

Network.

N/A 1 ...................... N/A ......................... N/A ......................... $45,760,000

Counterterrorism Fund ............... N/A ......................... N/A ......................... N/A ......................... $44,879,000

Federal Law Enforcement Training Center, Salaries and Expenses and Acquisition, Construction, Improvements and

Related Expenses.

N/A 2 ...................... N/A ......................... N/A ......................... $124,603,000

Interagency Crime and Drug Enforcement.N/A ......................... N/A ......................... N/A ......................... $106,965,000

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APPROPRIATIONS NOT AUTHORIZED BY LAW—Continued

Last year of authoriza- tion Authorization level Appropriations in last

year of authorization Appropriations in this bill

Bureau of Alcohol, Tobacco and

Firearms, except those activities related to the enforcement of tobacco smuggling and regulation of explosives.

N/A 3 ...................... N/A ......................... N/A ......................... $824,199,000

US Customs Service (except

Harbor Maintenance Fee).

1992 ...................... Such sums ............ $1,484,084,000 ..... $2,672,531,000

Office of Management and

Budget, Office of Information

and Regulatory Affairs.

2001 ...................... $8,000,000 ............ $6,157,000 ............ $6,331,000

Counter Technology Assessment

Center, Technology Transfer.

................................ ................................ ................................ $22,236,000

Federal Election Commission .... 1981 ...................... $9,400,000 ............ $9,662,000 ............ $43,223,000

General Services Administration,

Electronic Government Fund.

N/A ......................... N/A ......................... N/A ......................... $5,000,000

Office of Government Ethics ..... 1999 ...................... Such sums ............ $8,492,000 ............ $10,060,000

N/A: No specific authorization available.

1 Established pursuant to Treasury Order 105–08. 2 Established pursuant to Treasury Order 140–01. 3 Established pursuant to Treasury Order 120–01, 120–02, and 120–03.

113

FULL COMMITTEE VOTES

Pursuant to the provisions of clause 3(b) of rule XIII of the House

of Representatives, the results of each rollcall vote on an amendment or on the motion to report, together with the names of those

voting for and those voting against, are printed below:

ROLLCALL NO. 1

Date: July 17, 2001.

Measure: Treasury, Postal Service, and General Government Appropriations Bill, FY 2002.

Motion by: Mr. Istook.

Description of motion: To consolidate appropriations for 13 separate accounts within the Executive Office of the President into one

appropriation account.

Results: Rejected 31 yeas to 31 nays.

Members Voting Yea Members Voting Nay

Mr. Aderholt Mr. Boyd

Mr. Bonilla Mr. Clyburn

Mr. Callahan Mr. Cramer

Mr. Cunningham Ms. DeLauro

Mr. DeLay Mr. Dicks

Mr. Doolittle Mr. Edwards

Mrs. Emerson Mr. Farr

Mr. Frelinghuysen Mr. Fattah

Mr. Goode Mr. Hinchey

Ms. Granger Mr. Hoyer

Mr. Hobson Mr. Jackson

Mr. Istook Ms. Kaptur

Mr. Kingston Mr. Kennedy

Mr. Knollenberg Ms. Kilpatrick

Mr. Kolbe Mrs. Lowey

Mr. Latham Mrs. Meek

Mr. Lewis Mr. Mollohan

Mr. Miller Mr. Moran

Mr. Nethercutt Mr. Murtha

Mrs. Northup Mr. Obey

Mr. Peterson Mr. Olver

Mr. Regula Mr. Pastor

Mr. Rogers Ms. Pelosi

Mr. Sherwood Mr. Price

Mr. Skeen Mr. Rothman

Mr. Sweeney Ms. Roybal-Allard

Mr. Tiahrt Mr. Sabo

Mr. Walsh Mr. Serrano

Mr. Wamp Mr. Sununu

Mr. Wicker Mr. Visclosky

Mr. Young Mr. Wolf

114

FULL COMMITTEE VOTES

Pursuant to the provisions of clause 3(b) of rule XIII of the House

of Representatives, the results of eachroll call vote on an amendment or on the motion to report, together with the names of those

voting for and those voting against, are printed below:

ROLLCALL NO. 2

Date: July 17, 2001.

Measure: Treasury, Postal Service, and General Accounting Appropriations Bill, FY 2002.

Motion by: Mr. Obey.

Description of motion: To strike language authorizing the Secretary of the Navy to pay for utilities for the official residence of

the Vice President; to strike language authorizing the Secretary of

Navy to accept certain gifts or funds for use at official functions at

the Vice President’s residence; and to insert a new provision regarding recess appointments.

Results: Rejected 29 yeas to 33 nays.

Members Voting Yea Members Voting Nay

Mr. Boyd Mr. Aderholt

Mr. Clyburn Mr. Bonilla

Mr. Cramer Mr. Callahan

Ms. DeLauro Mr. Cunningham

Mr. Dicks Mr. Doolittle

Mr. Edwards Mrs. Emerson

Mr. Farr Mr. Frelinghuysen

Mr. Fattah Mr. Goode

Mr. Hinchey Ms. Granger

Mr. Hoyer Mr. Hobson

Mr. Jackson Mr. Istook

Ms. Kaptur Mr. Kingston

Mr. Kennedy Mr. Knollenberg

Ms. Kilpatrick Mr. LaHood

Mrs. Lowey Mr. Latham

Mrs. Meek Mr. Lewis

Mr. Mollohan Mr. Miller

Mr. Moran Mr. Nethercutt

Mr. Murtha Mrs. Northup

Mr. Obey Mr. Peterson

Mr. Olver Mr. Regula

Mr. Pastor Mr. Rogers

Ms. Pelosi Mr. Sherwood

Mr. Price Mr. Skeen

Mr. Rothman Mr. Sununu

Ms. Roybal-Allard Mr. Sweeney

Mr. Sabo Mr. Taylor

Mr. Serrano Mr. Tiahrt

Mr. Visclosky Mr. Walsh

Mr. Wamp

Mr. Wicker

Mr. Wolf

Mr. Young

115

FULL COMMITTEE VOTES

Pursuant to the provisions of clause 3(b) of rule XIII of the House

of Representatives, the results of each rollcall vote on an amendment or on the motion to report, together with the names of those

voting for and those voting against, are printed below:

ROLLCALL NO. 3

Date: July 17, 2001.

Measure: Treasury, Postal Service, and General Accounting Appropriations Bill, FY 2002.

Motion by: Mrs. Lowey.

Description of motion: To require that any FEHBP health care

plan that provides prescription drug coverage also provide contraceptive coverage, with exceptions for two named religious plans or

plans that object to coverage on the basis of religious beliefs.

116

Results: Adopted 40 yeas to 21 nays.

Members Voting Yea Members Voting Nay

Mr. Boyd Mr. Aderholt

Mr. Cramer Mr. Bonilla

Ms. DeLauro Mr. Cunningham

Mr. Dicks Mr. Doolittle

Mr. Edwards Mr. Goode

Mrs. Emerson Mr. Istook

Mr. Farr Mr. Kingston

Mr. Fattah Mr. Knollenberg

Mr. Frelinghuysen Mr. LaHood

Ms. Granger Mr. Lewis

Mr. Hinchey Mr. Mollohan

Mr. Hobson Mr. Peterson

Mr. Hoyer Mr. Rogers

Mr. Jackson Mr. Skeen

Ms. Kaptur Mr. Sununu

Mr. Kennedy Mr. Taylor

Ms. Kilpatrick Mr. Tiahrt

Mr. Kolbe Mr. Walsh

Mr. Latham Mr. Wamp

Mrs. Lowey Mr. Wicker

Mrs. Meek Mr. Wolf

Mr. Miller

Mr. Moran

Mr. Murtha

Mr. Nethercutt

Mrs. Northup

Mr. Obey

Mr. Olver

Mr. Pastor

Ms. Pelosi

Mr. Price

Mr. Regula

Mr. Rothman

Ms. Roybal-Allard

Mr. Sabo

Mr. Serrano

Mr. Sherwood

Mr. Sweeney

Mr. Visclosky

Mr. Young

117

FULL COMMITTEE VOTES

Pursuant to the provisions of clause 3(b) of rule XIII of the House

of Representatives, the results of each rollcall vote on an amendment or on the motion to report, together with the names of those

voting for and those voting against, are printed below:

ROLLCALL NO. 4

Date: July 17, 2001.

Measure: Treasury, Postal Service, and General Government Appropriations Bill, FY 2002.

Motion by: Mrs. DeLauro.

Description of motion: To strike the prohibition on the use of

funds to pay for an abortion under the FEHBP.

Results: Rejected 26 yeas to 33 nays.

Members Voting Yea Members Voting Nay

Mr. Boyd Mr. Aderholt

Mr. Cramer Mr. Callahan

Ms. DeLauro Mr. Cunningham

Mr. Dicks Mr. DeLay

Mr. Farr Mr. Doolittle

Mr. Fattah Mr. Edwards

Mr. Frelinghuysen Mrs. Emerson

Mr. Hinchey Mr. Goode

Mr. Hoyer Ms. Granger

Ms. Kaptur Mr. Hobson

Mr. Kennedy Mr. Istook

Ms. Kilpatrick Mr. Kingston

Mr. Kolbe Mr. LaHood

Mr. Lowey Mr. Latham

Mrs. Meek Mr. Lewis

Mr. Moran Mr. Miller

Mr. Obey Mr. Mollohan

Mr. Olver Mr. Murtha

Mr. Pastor Mr. Nethercutt

Ms. Pelosi Mrs. Northup

Mr. Price Mr. Peterson

Mr. Rothman Mr. Regula

Ms. Roybal-Allard Mr. Rogers

Mr. Sabo Mr. Sherwood

Mr. Serrano Mr. Skeen

Mr. Visclosky Mr. Sununu

Mr. Taylor

Mr. Tiahrt

Mr. Walsh

Mr. Wamp

Mr. Wicker

Mr. Wolf

Mr. Young

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(126)

MINORITY VIEWS OF THE HONORABLE STENY HOYER, THE

HONORABLE CARRIE MEEK, THE HONORABLE DAVID

PRICE, THE HONORABLE STEVEN ROTHMAN, AND THE

HONORABLE DAVID OBEY

We would like to commend the Chairman for his efforts. While

we do not agree with every recommendation, our views have been

reflected in many aspects of this bill.

The TPO bill to be considered by the House is a significant improvement over the president’s request. The Committee has provided $17.0 billion in discretionary budget authority for this bill,

$1.1 billion higher than FY 2001 and $340 million more than the

president’s request. These levels are much more consistent with the

levels that we argued were necessary during the budget and tax

negotiations. This additional funding helps to make up for the

shortfall in the President’s request.

For example, the President’s request did not provide sufficient

resources to maintain current programs, withholding $150 million

of necessary ‘‘non-pay’’ inflationary increases to cover the increased

costs of things like rent, energy, fuel, and travel. This bill provides

these funds. The budget also failed to request any funding for

Treasury law enforcement agencies in support of the 2002 Winter

Olympics. This is despite the fact that in August of 1999, the Winter Olympics were designated a National Special Security Event,

meaning that the Secret Service would be the lead Federal agency

for designing, planning, and implementing security. This bill also

provides for these costs.

The President’s budget also requested insufficient funds for the

Automated Commercial Environment, or ‘‘ACE.’’ This essential initiative is key to modernizing how the Customs Service assesses and

collects taxes and fees totaling over $20 billion annually at over

300 ports. Intended to be a four-year, $1.3 billion effort, this Committee provided the first installment of $130 million for ACE in FY

2001 with the expectation that additional funding would be requested in the future. However, the Administration requested only

$130 million in FY 2002 and failed to request the required additional funding, thereby threatening to increase the total costs of developing the system and putting the legacy system in a position to

crash and immobilize trade in this country. The Committee has acknowledged this problem and provided $170 million over the President’s request to continue this important modernization activity.

The bill also attempts to ensure that the Treasury law enforcement agencies have sufficient funds to combat terrorism, protect

our borders, protect our Nation’s leaders and dignitaries, prevent

drug smuggling, and provide training for law enforcement. In the

past, we have noted the discrepancy in funding for Treasury law

enforcement agencies in comparison to Justice law enforcement

agencies, despite the fact that the Treasury law enforcement funcVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00126 Fmt 6604 Sfmt 6604 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
127

tion makes up nearly 40 percent of all Federal law enforcement.

The President’s budget request continued this trend of neglect.

However, this bill provides several significant increases over the

President’s budget request for Treasury law enforcement, including $45 million for the Secret Service to hire additional agents to reduce staggering overtime levels, $15 million to hire additional Customs inspectors, $33 million to improve Customs inspection technology, $14 million for Customs air program improvements, and

$25 million for High Intensity Drug Trafficking Areas.

We are proud to have been able to make significant improvements to the bill during Committee consideration. For example, we

were able to secure $10 million to continue the First Accounts program. This program seeks to establish affordable banking accounts

for low-income families, increase the availability of automatic teller

machines in low-income neighborhoods, and educate low-income

Americans about bank accounts. We also were able to ensure that

Federal civilian employees would receive at least a 4.6 percent pay

raise and that Federal employees participating in the Federal employees health program would continue to have contraceptive coverage.

Despite these improvements, and the additional funding provided

above the President’s request, we have a number of concerns that

we look forward to working on in the future. We continue to be concerned with understaffing at the Customs Service. The Resource

Allocation Model projects a need for almost 15,000 more staff,

mostly Inspectors and Special Agents. None of the Customs locations show a decline in workload or staff coverages, so reallocation

of staff does not appear to be a realistic option. The Customs Service is our first line of defense. We need to ensure that they have

the resources they need to do their job effectively.

We also continue to be concerned about the decline in compliance

activities at the IRS. In-person audits have decreased from 2 million in 1976 to 247,000 in 2000, a decline of 88 percent. Since 1997,

there has been a significant decrease in audit coverage for large

corporations (¥60 percent), partnerships (¥40 percent), and individuals (¥62 percent). Most importantly, however, it appears that

audit coverage may disproportionately impact lower-income taxpayers. The increased use of ‘‘document matching’’ to ensure compliance (which focuses on ‘‘verifiable’’ wage, salary, and non-investment income sources) excludes many higher-income taxpayers who

often have income sources and deductions that are easily checked

through document matching. Compounding the problem is the fact

that the audit rate for individuals making $100,000 or more has

declined by 65 percent from FY 1997 to FY 2000. While we are

pleased that this bill contains an additional $86 million to complete

the hiring of over 3,800 employees to help improve compliance and

customer service at the IRS, we believe that this Committee needs

to take a larger role in ensuring the appropriate level of compliance

in order to have an equitable tax system.

We are also concerned about the funding provided for new Courthouse construction. Despite providing additional funds above the

President’s request, the Committee bill falls well short of the Judiciary’s request. Since FY 1996, when the Judiciary began approving prioritized, 5 year Courthouse project plans, only half of the JuVerDate 11-MAY-2000 05:56 Jul 24, 2001 Jkt 074032 PO 00000 Frm 00127 Fmt 6604 Sfmt 6602 E:\HR\OC\HR152.XXX pfrm12 PsN: HR152
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diciary’s infrastructure request has been enacted. This is not an

issue of luxury for the Judiciary. The Courthouse request represents an effort to keep up with the skyrocketing judicial workload

while ensuring a safe environment for employees, detainees, and

the public. The longer we underfund the Court request, the more

pressing the need becomes.

We have always been sensitive to the important separation between the Executive and the Legislative branches. This sensitivity

is particularly important as Congress reviews the budget request

for the Executive Office of the President. The President of the

United States deserves the appropriate respect and deference.

However, it is also important that Congress not relinquish its oversight responsibilities. We are very concerned that certain provisions included in this bill may have this effect.

On balance, we believe this legislation is a significant improvement from the President’s request. We look forward to working

with the Majority to continue to make improvements to the bill as

it moves through the Congress.

DAVID OBEY.

STENY H. HOYER.

STEVEN R. ROTHMAN.

DAVID PRICE.

CARRIE P. MEEK.

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