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subsection (b)(2) are met, such actions shall be 
treated as pursuant to a plan. 
(C) CERTAIN TRANSFERS DISREGARDED.—
The transfer of properties or liabilities (includ-
ing by contribution or distribution) shall be dis-
regarded if such transfers are part of a plan a 
principal purpose of which is to avoid the pur-
poses of this section. 
(D) SPECIAL RULE FOR RELATED PART-
NERSHIPS.—For purposes of applying sub-
section (b) to the acquisition of a domestic 
partnership, except as provided in regulations, 
all partnerships which are under common con-
trol (within the meaning of section 482 of the 
Internal Revenue Code of 1986) shall be treat-
ed as 1 partnership. 
(E) TREATMENT OF CERTAIN RIGHTS.—
The Secretary shall prescribe such regulations 
as may be necessary—
(i) to treat warrants, options, con-
tracts to acquire stock, convertible debt in-
struments, and other similar interests as 
stock, and 
(ii) to treat stock as not stock.
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(2) EXPANDED AFFILIATED GROUP.—The term 
‘‘expanded affiliated group’’ means an affiliated 
group as defined in section 1504(a) of the Internal 
Revenue Code of 1986 (without regard to section 
1504(b) of such Code), except that section 1504(a) 
of such Code shall be applied by substituting ‘‘more 
than 50 percent’’ for ‘‘at least 80 percent’’ each 
place it appears. 
(3) FOREIGN
INCORPORATED
ENTITY.—The 
term ‘‘foreign incorporated entity’’ means any entity 
which is, or but for subsection (b) would be, treated 
as a foreign corporation for purposes of the Internal 
Revenue Code of 1986. 
(4) OTHER
DEFINITIONS.—The terms ‘‘per-
son’’, ‘‘domestic’’, and ‘‘foreign’’ have the meanings 
given such terms by paragraphs (1), (4), and (5) of 
section 7701(a) of the Internal Revenue Code of 
1986, respectively. 
(d) WAIVER.—The President may waive subsection 
(a) with respect to any specific contract if the President 
certifies to Congress that the waiver is required in the in-
terest of national security. 
(e) EFFECTIVE DATE.—This section shall take effect 
one day after the date of this bill’s enactment.
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TITLE III—POSTAL SERVICE 
PAYMENT TO THE POSTAL SERVICE FUND 
For payment to the Postal Service Fund for revenue 
forgone on free and reduced rate mail, pursuant to sub-
sections (c) and (d) of section 2401 of title 39, United 
States Code, $65,521,000, of which $36,521,000 shall not 
be available for obligation until October 1, 2004: Provided, 
That mail for overseas voting and mail for the blind shall 
continue to be free: Provided further, That 6-day delivery 
and rural delivery of mail shall continue at not less than 
the 1983 level: Provided further, That none of the funds 
made available to the Postal Service by this Act shall be 
used to implement any rule, regulation, or policy of charg-
ing any officer or employee of any State or local child sup-
port enforcement agency, or any individual participating 
in a State or local program of child support enforcement, 
a fee for information requested or provided concerning an 
address of a postal customer: Provided further, That none 
of the funds provided in this Act shall be used to consoli-
date or close small rural and other small post offices in 
fiscal year 2004.
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TITLE IV—EXECUTIVE OFFICE OF THE PRESI-
DENT AND FUNDS APPROPRIATED TO THE 
PRESIDENT 
COMPENSATION OF THE PRESIDENT 
For compensation of the President, including an ex-
pense allowance at the rate of $50,000 per annum as au-
thorized by 3 U.S.C. 102, $450,000: Provided, That none 
of the funds made available for official expenses shall be 
expended for any other purpose and any unused amount 
shall revert to the Treasury pursuant to section 1552 of 
title 31, United States Code: Provided further, That none 
of the funds made available for official expenses shall be 
considered as taxable to the President. 
WHITE HOUSE OFFICE 
SALARIES AND EXPENSES 
For necessary expenses for the White House as au-
thorized by law, including not to exceed $3,850,000 for 
services as authorized by 5 U.S.C. 3109 and 3 U.S.C. 105; 
subsistence expenses as authorized by 3 U.S.C. 105, which 
shall be expended and accounted for as provided in that 
section; hire of passenger motor vehicles, newspapers, 
periodicals, teletype news service, and travel (not to exceed 
$100,000 to be expended and accounted for as provided 
by 3 U.S.C. 103); and not to exceed $19,000 for official 
entertainment expenses, to be available for allocation with-
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in the Executive Office of the President, $66,057,000: 
Provided, That $8,650,000 of the funds appropriated shall 
be available for reimbursements to the White House Com-
munications Agency. 
EXECUTIVE RESIDENCE AT THE WHITE HOUSE 
OPERATING EXPENSES 
For the care, maintenance, repair and alteration, re-
furnishing, improvement, heating, and lighting, including 
electric power and fixtures, of the Executive Residence at 
the White House and official entertainment expenses of 
the President, $12,501,000, to be expended and accounted 
for as provided by 3 U.S.C. 105, 109, 110, and 112–114.
REIMBURSABLE EXPENSES 
For the reimbursable expenses of the Executive Resi-
dence at the White House, such sums as may be nec-
essary: Provided, That all reimbursable operating expenses 
of the Executive Residence shall be made in accordance 
with the provisions of this paragraph: Provided further, 
That, notwithstanding any other provision of law, such 
amount for reimbursable operating expenses shall be the 
exclusive authority of the Executive Residence to incur ob-
ligations and to receive offsetting collections, for such ex-
penses: Provided further, That the Executive Residence 
shall require each person sponsoring a reimbursable polit-
ical event to pay in advance an amount equal to the esti-
mated cost of the event, and all such advance payments
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shall be credited to this account and remain available until 
expended: Provided further, That the Executive Residence 
shall require the national committee of the political party 
of the President to maintain on deposit $25,000, to be 
separately accounted for and available for expenses relat-
ing to reimbursable political events sponsored by such 
committee during such fiscal year: Provided further, That 
the Executive Residence shall ensure that a written notice 
of any amount owed for a reimbursable operating expense 
under this paragraph is submitted to the person owing 
such amount within 60 days after such expense is in-
curred, and that such amount is collected within 30 days 
after the submission of such notice: Provided further, That 
the Executive Residence shall charge interest and assess 
penalties and other charges on any such amount that is 
not reimbursed within such 30 days, in accordance with 
the interest and penalty provisions applicable to an out-
standing debt on a United States Government claim under 
section 3717 of title 31, United States Code: Provided fur-
ther, That each such amount that is reimbursed, and any 
accompanying interest and charges, shall be deposited in 
the Treasury as miscellaneous receipts: Provided further, 
That the Executive Residence shall prepare and submit 
to the Committees on Appropriations, by not later than 
90 days after the end of the fiscal year covered by this
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Act, a report setting forth the reimbursable operating ex-
penses of the Executive Residence during the preceding 
fiscal year, including the total amount of such expenses, 
the amount of such total that consists of reimbursable offi-
cial and ceremonial events, the amount of such total that 
consists of reimbursable political events, and the portion 
of each such amount that has been reimbursed as of the 
date of the report: Provided further, That the Executive 
Residence shall maintain a system for the tracking of ex-
penses related to reimbursable events within the Executive 
Residence that includes a standard for the classification 
of any such expense as political or nonpolitical: Provided 
further, That no provision of this paragraph may be con-
strued to exempt the Executive Residence from any other 
applicable requirement of subchapter I or II of chapter 
37 of title 31, United States Code. 
WHITE HOUSE REPAIR AND RESTORATION 
For the repair, alteration, and improvement of the 
Executive Residence at the White House, $4,225,000, to 
remain available until expended, for required maintenance, 
safety and health issues, and continued preventative main-
tenance.
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COUNCIL OF ECONOMIC ADVISERS 
SALARIES AND EXPENSES 
For necessary expenses of the Council of Economic 
Advisors in carrying out its functions under the Employ-
ment Act of 1946 (15 U.S.C. 1021), $4,000,000. 
OFFICE OF POLICY DEVELOPMENT 
SALARIES AND EXPENSES 
For necessary expenses of the Office of Policy Devel-
opment, including services as authorized by 5 U.S.C. 3109 
and 3 U.S.C. 107, $4,109,000. 
NATIONAL SECURITY COUNCIL 
SALARIES AND EXPENSES 
For necessary expenses of the National Security 
Council, including services as authorized by 5 U.S.C. 
3109, $9,000,000. 
OFFICE OF ADMINISTRATION 
SALARIES AND EXPENSES 
For necessary expenses of the Office of Administra-
tion, including services as authorized by 5 U.S.C. 3109 
and 3 U.S.C. 107, and hire of passenger motor vehicles, 
$82,826,000, of which $17,470,000 shall remain available 
until expended for the Capital Investment Plan for contin-
ued modernization of the information technology infra-
structure within the Executive Office of the President.
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OFFICE OF MANAGEMENT AND BUDGET 
SALARIES AND EXPENSES 
For necessary expenses of the Office of Management 
and Budget, including hire of passenger motor vehicles 
and services as authorized by 5 U.S.C. 3109 and to carry 
out the provisions of chapter 35 of title 44, United States 
Code, $62,772,000, of which not to exceed $1,500 shall 
be available for official representation expenses: Provided, 
That, as provided in 31 U.S.C. 1301(a), appropriations 
shall be applied only to the objects for which appropria-
tions were made except as otherwise provided by law: Pro-
vided further, That none of the funds appropriated in this 
Act for the Office of Management and Budget may be 
used for the purpose of reviewing any agricultural mar-
keting orders or any activities or regulations under the 
provisions of the Agricultural Marketing Agreement Act 
of 1937 (7 U.S.C. 601 et seq.): Provided further, That 
none of the funds made available for the Office of Manage-
ment and Budget by this Act may be expended for the 
altering of the transcript of actual testimony of witnesses, 
except for testimony of officials of the Office of Manage-
ment and Budget, before the Committees on Appropria-
tions or the Committees on Veterans’ Affairs or their sub-
committees: Provided further, That the preceding shall not 
apply to printed hearings released by the Committees on
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Appropriations or the Committees on Veterans’ Affairs: 
Provided further, That none of the funds appropriated in 
this Act may be available to pay the salary or expenses 
of any employee of the Office of Management and Budget 
who, after February 15, 2003, calculates, prepares, or ap-
proves any tabular or other material that proposes the 
sub-allocation of budget authority or outlays by the Com-
mittees on Appropriations among their subcommittees. 
OFFICE OF NATIONAL DRUG CONTROL POLICY 
SALARIES AND EXPENSES 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses of the Office of National 
Drug Control Policy; for research activities pursuant to 
the Office of National Drug Control Policy Reauthoriza-
tion Act of 1998 (21 U.S.C. 1701 et seq.) as amended; 
not to exceed $10,000 for official reception and represen-
tation expenses; and for participation in joint projects or 
in the provision of services on matters of mutual interest 
with nonprofit, research, or public organizations or agen-
cies, with or without reimbursement, $28,790,000; of 
which $2,850,000 shall remain available until expended, 
consisting of $1,350,000 for policy research and evalua-
tion, and $1,500,000 for the National Alliance for Model 
State Drug Laws: Provided, That the Office is authorized 
to accept, hold, administer, and utilize gifts, both real and 
personal, public and private, without fiscal year limitation,
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for the purpose of aiding or facilitating the work of the 
Office. 
COUNTERDRUG TECHNOLOGY ASSESSMENT CENTER 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses for the Counterdrug Tech-
nology Assessment Center for research activities pursuant 
to the Office of National Drug Control Policy Reauthor-
ization Act of 1998 (21 U.S.C. 1701 et seq.) as amended, 
$40,000,000, which shall remain available until expended, 
consisting of $18,000,000 for counternarcotics research 
and development projects, and $22,000,000 for the contin-
ued operation of the technology transfer program: Pro-
vided, That the $18,000,000 for counternarcotics research 
and development projects shall be available for transfer 
to other Federal departments or agencies. 
FEDERAL DRUG CONTROL PROGRAMS 
HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM 
(INCLUDING TRANSFER OF FUNDS) 
For necessary expenses of the Office of National 
Drug Control Policy’s High Intensity Drug Trafficking 
Areas Program, $226,350,000, for drug control activities 
consistent with the approved strategy for each of the des-
ignated High Intensity Drug Trafficking Areas, of which 
no less than 51 percent shall be transferred to State and 
local entities for drug control activities, which shall be ob-
ligated within 120 days of the date of the enactment of
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this Act: Provided, That up to 49 percent, to remain avail-
able until September 30, 2005, may be transferred to Fed-
eral agencies and departments at a rate to be determined 
by the Director, of which not less than $2,100,000 shall 
be used for auditing services and associated activities, and 
at least $500,000 of the $2,100,000 shall be used to de-
velop and implement a data collection system to measure 
the performance of the High Intensity Drug Trafficking 
Areas Program: Provided further, That High Intensity 
Drug Trafficking Areas Programs designated as of Sep-
tember 30, 2003, shall be funded at no less than the fiscal 
year 2003 initial allocation levels unless the Director sub-
mits to the Committees on Appropriations, and the Com-
mittees approve, justification for changes in those levels 
based on clearly articulated priorities for the High Inten-
sity Drug Trafficking Areas Programs, as well as pub-
lished Office of National Drug Control Policy performance 
measures of effectiveness: Provided further, That no funds 
of an amount in excess of the fiscal year 2004 budget re-
quest shall be obligated prior to the approval of the Com-
mittee on Appropriations. 
OTHER FEDERAL DRUG CONTROL PROGRAMS
(INCLUDING TRANSFER OF FUNDS) 
For activities to support a national anti-drug cam-
paign for youth, and for other purposes, authorized by (21