Senate Report 113-80 - FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 2014

[Senate Report 113-80]
[From the U.S. Government Publishing Office]

Calendar No. 149
113th Congress Report
SENATE
1st Session 113-80

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

FINANCIAL SERVICES AND GENERAL GOVERNMENT APPROPRIATIONS BILL, 2014

_______

July 25, 2013.--Ordered to be printed

_______

Mr. Udall of New Mexico, from the Committee on Appropriations,
submitted the following

REPORT

[To accompany S. 1371]

The Committee on Appropriations reports an original bill
(S. 1371) making appropriations for financial services and
general government for the fiscal year ending September 30,
2014, and for other purposes, reports favorably thereon and
recommends that the bill do pass.

Amounts of new budget (obligational) authority for fiscal year 2014

Total of bill as reported to the Senate................. $44,304,163,000
Amount of 2013 appropriations\1\........................ 43,345,888,000
Amount of 2014 budget estimate.......................... 45,435,193,000
Bill as recommended to Senate compared to--
2013 appropriations................................. +958,275,000
2014 budget estimate................................ -1,131,030,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.

CONTENTS

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Page
Overview and Summary of the Bill................................. 5
Program, Project, and Activity................................... 5
Reprogramming Guidelines......................................... 5
Relationship With Budget Offices................................. 6
Congressional Budget Justifications.............................. 7
Agency Reports................................................... 7
Title I: Department of the Treasury:
Departmental Offices......................................... 9
Department-wide Systems and Capital Investments Programs. 12
Office of Inspector General.............................. 12
Treasury Inspector General for Tax Administration........ 13
Special Inspector General for the Troubled Asset Relief
Program................................................ 15
Financial Crimes Enforcement Network......................... 16
Treasury Forfeiture Fund..................................... 18
Financial Management Service................................. 18
Alcohol and Tobacco Tax and Trade Bureau..................... 19
United States Mint........................................... 20
Bureau of the Public Debt.................................... 20
Bureau of the Fiscal Service................................. 21
Community Development Financial Institutions Fund............ 22
Bureau of Engraving and Printing............................. 23
Internal Revenue Service..................................... 24
Taxpayer Services........................................ 26
Enforcement.............................................. 28
Operations Support....................................... 32
Business Systems Modernization........................... 34
Administrative Provisions--Internal Revenue Service...... 36
Administrative Provisions--Department of the Treasury........ 37
Title II: Executive Office of the President and Funds
Appropriated to the President:
Compensation of the President................................ 38
The White House.............................................. 38
Executive Residence at the White House....................... 39
White House Repair and Restoration........................... 39
Council of Economic Advisers................................. 40
National Security Council and Homeland Security Council...... 40
Office of Administration..................................... 40
Office of Management and Budget.............................. 41
Office of National Drug Control Policy....................... 43
Federal Drug Control Programs:
High Intensity Drug Trafficking Areas.................... 44
Other Federal Drug Control Programs...................... 45
Unanticipated Needs.......................................... 46
Data-Driven Innovation....................................... 46
Integrated, Efficient and Effective Uses of Information
Technology................................................. 47
Special Assistance to the President.......................... 48
Official Residence of the Vice President..................... 48
Administrative Provisions--Executive Office of the President
and Funds Appropriated to the President.................... 49
Title III: The Judiciary:
Supreme Court of the United States........................... 50
Care of the Building and Grounds......................... 51
United States Court of Appeals for the Federal Circuit....... 51
United States Court of International Trade................... 52
Courts of Appeals, District Courts, and Other Judicial
Services................................................... 52
Vaccine Injury Compensation Trust Fund................... 53
Defender Services........................................ 53
Fees of Jurors and Commissioners......................... 54
Court Security........................................... 54
Administrative Office of the United States Courts............ 55
Federal Judicial Center...................................... 55
Judicial Retirement Funds.................................... 56
United States Sentencing Commission.......................... 56
Administrative Provisions--The Judiciary..................... 56
Title IV--District of Columbia:
Federal Funds:
Federal Payment for Resident Tuition Support............. 58
Federal Payment for Emergency Planning and Security Costs
in the District of Columbia............................ 59
Federal Payment to the District of Columbia Courts....... 60
Federal Payment for Defender Services in District of
Columbia Courts........................................ 61
Federal Payment to the Court Services and Offender
Supervision Agency for the District of Columbia........ 62
Federal Payment to the Public Defender Service for the
District of Columbia................................... 63
Federal Payment to the District of Columbia Water and
Sewer Authority........................................ 64
Federal Payment to the Criminal Justice Coordinating
Council................................................ 64
Federal Payment for Judicial Commissions................. 66
Federal Payment for School Improvement................... 66
Federal Payment for the D.C. National Guard.............. 69
Federal Payment for Redevelopment of the St. Elizabeths
Hospital Campus........................................ 70
Federal Payment for HIV/AIDS Prevention.................. 70
Federal Payment for D.C. Commission on the Arts and
Humanities Grants...................................... 71
District of Columbia Funds................................... 71
Title V--Independent Agencies:
Administrative Conference of the United States............... 72
Christopher Columbus Fellowship Foundation................... 72
Commodity Futures Trading Commission......................... 73
Consumer Product Safety Commission........................... 75
Election Assistance Commission............................... 78
Federal Communications Commission............................ 78
Federal Deposit Insurance Corporation: Office of the
Inspector General.......................................... 81
Federal Election Commission.................................. 81
Federal Labor Relations Authority............................ 82
Federal Trade Commission..................................... 83
General Services Administration.............................. 84
Harry S Truman Scholarship Foundation........................ 94
Merit Systems Protection Board............................... 95
Morris K. Udall and Stewart L. Udall Foundation.............. 96
National Archives and Records Administration................. 97
National Credit Union Administration......................... 101
Office of Government Ethics.................................. 102
Office of Personnel Management............................... 103
Office of Special Counsel.................................... 107
Postal Regulatory Commission................................. 108
Privacy and Civil Liberties Oversight Board.................. 109
Recovery Accountability and Transparency Board............... 110
Securities and Exchange Commission........................... 111
Selective Service System..................................... 115
Small Business Administration................................ 115
United States Postal Service................................. 125
United States Tax Court...................................... 129
Statement Concerning General Provisions.......................... 129
Title VI--General Provisions--This Act........................... 131
Title VII--General Provisions--Governmentwide.................... 133
Title VIII--General Provisions--District of Columbia............. 137
Compliance With Paragraph 7, Rule XVI of the Standing Rules of
the
Senate......................................................... 139
Compliance With Paragraph 7(c), Rule XXVI of the Standing Rules
of the Senate.................................................. 140
Compliance With Paragraph 12, Rule XXVI of the Standing Rules of
the Senate..................................................... 140
Budgetary Impact of Bill......................................... 160
Comparative Statement of New Budget Authority.................... 161

OVERVIEW AND SUMMARY OF THE BILL

The Financial Services and General Government
appropriations bill provides funding for the Department of the
Treasury, including the Internal Revenue Service; the Executive
Office of the President; the Judiciary; the District of
Columbia; and more than two dozen independent Federal agencies.
The Committee recommends $44,304,163,000 in discretionary
and mandatory appropriations. This represents an increase of
$958,275,000 above the fiscal year 2013 enacted level, and a
decrease of $1,131,030,000 below the budget request. Of the
total, $23,189,650,000 is provided in discretionary
appropriations, including $158,650,000 for the Small Business
Administration Disaster Loans Program Account designated by
Congress as disaster relief pursuant to Public Law 112-25. This
discretionary amount is $1,136,503,000 below the budget request
of $24,326,153,000. Mandatory appropriations total
$21,114,513,000.

PROGRAM, PROJECT, AND ACTIVITY

During fiscal year 2014, for the purposes of the Balanced
Budget and Emergency Deficit Control Act of 1985 (Public Law
99-177), as amended, with respect to appropriations contained
in the accompanying bill, the terms ``program, project, and
activity'' [PPA] shall mean any item for which a dollar amount
is contained in appropriations acts (including joint
resolutions providing continuing appropriations) or
accompanying reports of the House and Senate Committees on
Appropriations, or accompanying conference reports and joint
explanatory statements of the committee of conference.

REPROGRAMMING GUIDELINES

The Committee includes a provision (section 608)
establishing the authority of agencies to reprogram funds and
the limitation on that authority. The provision specifically
requires the advance approval of the House and Senate
Committees on Appropriations of any proposal to reprogram funds
that: (1) creates a new program; (2) eliminates a program,
project, or activity [PPA]; (3) increases funds or personnel
for any PPA for which funds have been denied or restricted by
the Congress; (4) proposes to redirect funds that were directed
in such reports for a specific activity to a different purpose;
(5) augments an existing PPA in excess of $5,000,000 or 10
percent, whichever is less; (6) reduces an existing PPA by
$5,000,000 or 10 percent, whichever is less; or (7) creates,
reorganizes, or restructures offices differently than the
congressional budget justifications or the table at the end of
the Committee report, whichever is more detailed.
The Committee retains the requirement that each agency
submit an operating plan to the House and Senate Committees on
Appropriations not later than 60 days after enactment of this
act to establish the baseline for application of reprogramming
and transfer authorities provided in this act. Specifically,
each agency should provide a table for each appropriation with
columns displaying the budget request; adjustments made by
Congress; adjustments for rescissions, if appropriate; and the
fiscal year enacted level. The table shall delineate the
appropriation both by object class and by PPA. The report must
also identify items of special congressional interest.
The Committee expects the agencies and bureaus to submit
reprogramming requests in a timely manner and to provide a
thorough explanation of the proposed reallocations, including a
detailed justification of increases and reductions and the
specific impact the proposed changes will have on the budget
request for the following fiscal year. Except in emergency
situations, reprogramming requests should be submitted no later
than June 30.
The Committee expects each agency to manage its programs
and activities within the amounts appropriated by Congress. The
Committee reminds agencies that reprogramming requests should
be submitted only in the case of an unforeseeable emergency or
a situation that could not have been anticipated when
formulating the budget request for the current fiscal year.
Further, the Committee notes that when a Department or agency
submits a reprogramming or transfer request to the Committees
on Appropriations and does not receive identical responses from
the House and the Senate, it is the responsibility of the
Department or agency to reconcile the House and the Senate
differences before proceeding, and if reconciliation is not
possible, to consider the request to reprogram funds
unapproved.

RELATIONSHIP WITH BUDGET OFFICES

Through the years, the Committee has channeled most of its
inquiries and requests for information and assistance through
the budget offices of the various departments, agencies,
offices, and commissions. The Committee has often pointed to
the natural affinity and relationship between the budget
offices and the Committee which makes such a relationship
workable. The Committee reiterates its longstanding position
that while the Committee reserves the right to call upon any
office or officer in the departments, agencies, and
commissions, the primary conjunction between the Committee and
these entities must be through the budget offices. To help
ensure the Committee's ability to perform its responsibilities,
the Committee insists on having direct, unobstructed, and
timely access to the budget offices and expects to be able to
receive forthright and complete responses from those offices
and their employees.
The Committee has encountered growing difficulties in
securing timely agency compliance with mandated reporting
requirements and has experienced several situations in which
deadlines for submission of reports were disregarded entirely.
The Committee expects and directs all agencies from which
reports are required to allow sufficient time to secure any
necessary internal and external clearances of reports in order
to satisfy congressional deadlines. The Committee strongly
urges agencies to alert the Committee as far as possible in
advance of any expected slippage in meeting a report delivery
due date.

CONGRESSIONAL BUDGET JUSTIFICATIONS

Budget justifications are prepared not for the use of the
agency, but instead are the primary tool used by the House and
Senate Committees on Appropriations to evaluate the resource
requirements and fiscal needs of agencies. The Committee is
aware that the format and presentation of budget materials is
largely left to the agency within presentation objectives set
forth by OMB. In fact, OMB Circular A-11, part 6 specifically
states that the ``agency should consult with your congressional
committees beforehand to ensure their awareness of your plans
to modify the format of agency budget documents.'' The
Committee expects all the budget justifications to adhere to
this directive and provide the data needed to make appropriate
and meaningful funding decisions.
The Committee directs that justifications submitted with
the fiscal year 2015 budget requests by agencies funded under
this act must contain the customary level of detailed data and
explanatory statements to support the appropriations requests
at the level of detail contained in the funding table included
at the end of the report. Among other items, agencies shall
provide a detailed discussion of proposed new initiatives,
proposed changes in the agency's financial plan from prior year
enactment, and detailed data on all programs and comprehensive
information on any office or agency restructurings. At a
minimum, each agency must also provide adequate justification
for funding and staffing changes for each individual office and
materials that compare programs, projects, and activities that
are proposed for fiscal year 2015 to the fiscal year 2014
enacted level.
The Committee includes a new general provision requiring
that agencies provide, as a component incorporated within their
fiscal year 2015 budget justification materials submitted to
the Committee, a separate table briefly describing the top
management challenges for fiscal year 2014 as identified by the
agency inspector general, along with an explanation of how the
fiscal year 2015 budget request addresses each such management
challenge.
The Committee is aware that the analytical materials
required for review by the Committee are unique to each agency
in this act. Therefore, the Committee expects that each agency
will coordinate with the House and Senate Committees on
Appropriations in advance on its planned presentation for its
budget justification materials in support of the fiscal year
2015 budget request.

AGENCY REPORTS

As a measure to reduce costs and conserve paper, the
Committee reminds agencies funded by this act that currently
provide separate copies of periodic reports (such as
Performance and Accountability Reports) and correspondence to
the chairs of the House and Senate Appropriations Committees
and Subcommittees on Financial Services and General Government,
and also to the ranking members of the committees and
subcommittees, to send only one copy jointly addressed to the
chairs of the Committee and subcommittee and one copy jointly
addressed to the ranking members of the Committee and
subcommittee (separate copies should be sent to the House and
the Senate). Eliminating duplication will reduce by one-half
(from eight to four) the copies of periodic reports agencies
send to the committees.

TITLE I

DEPARTMENT OF THE TREASURY

Departmental Offices

salaries and expenses

Appropriations, 2013\1\................................. $307,771,000
Budget estimate, 2014................................... 311,775,000
Committee recommendation................................ 302,450,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

The Secretary of the Treasury has the 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 Departmental Offices Salaries
and Expenses appropriation include: recommending and
implementing U.S. domestic and international economic and tax
policy; formulating fiscal policy; governing the fiscal
operations of the Government; executing the Nation's financial
sanction policies; disrupting and dismantling terrorist
financial infrastructure; protecting the United States and the
international financial system from terrorist financing, money
laundering, and other financial crimes; managing the public
debt; managing international development policy; representing
the United States on international monetary, trade, and
investment issues; overseeing Department of the Treasury
overseas operations; and directing the administrative
operations of the Department of the Treasury. The majority of
the Salaries and Expenses appropriation provides resources for
policy formulation and implementation in the areas of domestic
and international finance, terrorist financing and financial
crimes, tax, economic, trade, financial operations and general
fiscal policy. This appropriation also provides resources to
support the Secretary, policy components, and departmental
administrative policies in financial and personnel management,
procurement operations, and information systems and
telecommunications.

COMMITTEE RECOMMENDATION

The Committee recommends $302,450,000 for the Departmental
Offices account of the Department of the Treasury for fiscal
year 2014. This amount is $9,325,000 below the budget request
and $5,321,000 below the fiscal year 2013 enacted level. An
additional $7,400,000 will support the Department's
administration of the Resources and Ecosystems Sustainability,
Tourist Opportunities and Revived Economies of the Gulf Coast
States Act (RESTORE Act), to be derived from the trust fund
established under that act.
The funding recommendations are made based on information
included in the budget justification. The Committee notes
Treasury's request to support implementation of the State Small
Business Credit Initiative and directs Treasury to use
recommended resources to conduct outreach and provide technical
support to States participating in the program.
The Committee directs the Department to prioritize
resources within the Departmental Offices account for the
Office of Terrorism and Financial Intelligence in order to
support safeguarding financial systems against illicit use and
combating rogue nations, terrorist facilitators, money
launderers, proliferators of weapons of mass destruction, and
other national security threats.
National Money Laundering Strategy.--The Committee is
concerned that a number of recommendations made in the 2007
National Money Laundering Strategy have not been implemented.
Within 180 days of enactment, the Committee directs the
Department of the Treasury, in coordination with the Department
of Justice and the Department of Homeland Security, to report
on its progress toward implementing each of the recommendations
in the 2007 National Money Laundering Strategy.
Student Debt.--The Committee notes that there is over
$1,000,000,000,000 in outstanding student loan debt, of which
$150,000,000,000 is in private student loans. More than 850,000
students have defaulted on their private student loans worth
more than $8,100,000,000. The Committee directs the Department
to work with the Federal Deposit Insurance Corporation, the
Office of the Comptroller of the Currency, the National Credit
Union Administration, and the Federal Reserve to offer clear
guidance consistent with safety and soundness principles
recognizing the unique characteristics of private student loans
compared to other debt and providing flexibility to lenders
working with borrowers to avoid default.
Office of Financial Education.--The Committee is concerned
about the low level of literacy and numeracy skills among the
adult population of the United States, as one in seven adults
do not have basic literacy skills to succeed in all but the
most rudimentary literacy tasks. The Department's Office of
Financial Education administers the National Financial Literacy
Challenge and develops strategies to combat predatory lending.
The Office of Financial Education also coordinates the efforts
of the Financial Literacy and Education Commission, a group
chaired by the Secretary of the Treasury and composed of
representatives from 20 Federal departments, agencies, and
commissions. The Commission works to improve financial literacy
and education for people throughout the United States. The
Committee encourages the Department to explore the degree to
which current financial literacy programs benefit those
individuals with less than basic literacy skills and to develop
measurable goals and objectives for the Financial Literacy and
Education Commission that address the needs of this population.
Finally, the Committee urges the Department to explore
opportunities to work with community-based adult and family
literacy organizations to promote and implement future
financial literacy initiatives.
Group Home Mortgage Program.--Under authorities provided
pursuant to the Housing and Economic Recovery Act of 2008
(Public Law 110-289), the Federal housing Enterprises have been
placed into conservatorship, with Treasury providing ongoing
financial support to the Enterprises to ensure they remain
active participants in the marketplace. The Group Home Mortgage
Program--formerly Community Living mortgage loans--comprises
approximately $173,000,000 of Fannie Mae's roughly
$3,000,000,000,000 portfolio and is designed to provide
financing for small, community-based group homes for
individuals who are unable to live independently. The program
is intended to provide aid to individuals and legal entities,
including nonprofit and for-profit corporations, limited
partnerships, and government agencies that serve adults and
children with physical and mental disabilities. The Committee
urges Treasury and the Enterprises to explore adjustments to
the lending requirements, or alternative financing structures,
under the Group Home Mortgage Program--including enhanced down
payment requirements--so that taxpayers will continue to
benefit from profits generated under the program and members of
the disabled community will continue to have accessible and
affordable housing.
Economic Sanctions and Divestments.--The Committee
recommendation includes resources for Terrorism and Financial
Intelligence programs. With these funds, the Department will
continue to issue and enforce economic and trade sanctions
consistent with national security and foreign policy goals.
These sanctions are a key tool for asserting U.S. policy toward
countries and entities under sanction. The Committee directs
the Department to fully implement all sanctions and divestment
measures, particularly those applicable to North Korea,
Belarus, Syria, Iran, Sudan, Zimbabwe and designated rebel
groups operating in and around the Democratic Republic of
Congo. The Committee directs the Department to promptly notify
the Committee of any resource constraints that adversely impact
the implementation of any sanctions program.
Sanctioning Those Fostering Violence in the Democratic
Republic of Congo.--The Committee directs the Secretary of the
Treasury in consultation with the Secretary of State to submit
a report to the Committee on Appropriations, the Committee on
Banking, Housing, and Urban Affairs, the Committee on Armed
Services, and the Committee on Foreign Relations of the Senate
and the Committee on Appropriations, the Committee on Financial
Services, the Committee on Armed Services, and the Committee on
Foreign Affairs of the House of Representatives not later than
60 days after enactment of this act, in classified form if
necessary, listing persons impacted by the asset freeze in
section 1284 of the National Defense Authorization Act for
Fiscal Year 2013 (Public Law 112-239).
Ivory Poaching.--Militias, armed groups, insurgents and
even terrorist groups are using profits from illegal ivory
poaching and trafficking to further violence in Africa and
elsewhere. Often the sales are to China and involved organized
crime, shell companies, and arms traffickers. Accordingly, the
Committee directs the Department to use all available resources
to pursue and enforce money laundering and other related laws
as related to the illegal ivory trade, particularly in Africa.
The Department shall report to the Committee semiannually
during fiscal year 2014 on such enforcement actions taken
during such fiscal year.
Management of Capital Investments.--The Committee notes
that section 123 of the bill requires the Secretary of the
Treasury to develop an annual Capital Investment Plan, to be
submitted to the Committees on Appropriations of the Senate and
the House of Representatives within 30 days following
submission of the President's annual budget request. The
Committee directs the Department to include estimated funding
needs for the lifetime capital needs for each project, not just
for the budget year. The Committee also directs the Department
to include in the Capital Investment Plan meaningful and
understandable summaries of capital investments by project type
(e.g., information technology). The Committee directs the
Office of the Chief Information Officer to ensure that adequate
resources are devoted both to projects in the capital phase and
to proper maintenance and modernization of existing systems and
to ensure that all projects are tracked properly and described
completely in the annual Capital Investment Plan.

DEPARTMENT-WIDE SYSTEMS AND CAPITAL INVESTMENTS PROGRAMS

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2013....................................................
Budget estimate, 2014................................... $2,725,000
Committee recommendation................................ 2,725,000

PROGRAM DESCRIPTION

The 1997 Treasury and General Government Appropriations Act
established this account, which is authorized to be used by or
on behalf of Treasury bureaus at the Secretary's discretion to
modernize business processes and increase efficiency through
technology investments, as well as other activities that
involve more than one Treasury bureau or Treasury's interface
with other Government agencies.

COMMITTEE RECOMMENDATION

The Committee recommends $2,725,000 for Department-wide
Systems and Capital Investments Programs [DSCIP] for fiscal
year 2014 in accordance with the budget request. Funding was
not provided for DSCIP for fiscal year 2013.
The Committee notes that the DSCIP account has been
utilized to fund a wide variety of multiyear initiatives. Given
the complexity of these initiatives, the bill includes language
in section 123 directing the Department of the Treasury to
submit an annual Capital Investment Plan to the Committees on
Appropriations within 30 days after the President's budget
submission.

OFFICE OF INSPECTOR GENERAL

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $29,582,000
Budget estimate, 2014................................... 31,351,000
Committee recommendation................................ 32,000,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

As a result of the 1988 amendments to the Inspector General
[IG] Act, the Secretary of the Treasury established the Office
of Inspector General [OIG] in 1989.
The OIG conducts and supervises audits, evaluations, and
investigations designed to: (1) promote economy, efficiency,
and effectiveness and prevent fraud, waste, and abuse in
departmental programs and operations; and (2) keep the
Secretary and Congress fully and currently informed of problems
and deficiencies in the administration of departmental programs
and operations. The audit function provides program audit,
contract audit, 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 audit 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.
These audits contribute significantly to improved financial
management by helping Treasury managers identify improvements
needed in their accounting and internal control systems. The
evaluations function reviews program performance and issues
critical to the mission of the Department. The investigative
function provides for the detection and investigation of
improper and illegal activities involving programs, personnel,
and operations.

COMMITTEE RECOMMENDATION

The Committee recommends $32,000,000 for salaries and
expenses of the Office of Inspector General. This amount is
$649,000 above the budget request and $2,418,000 above the
fiscal year 2013 enacted level. An additional amount of
$2,800,000 will support audits and investigations related to
the Department's efforts to carry out the Resources and
Ecosystems Sustainability, Tourists Opportunities and Revived
Economies of the Gulf Coast States Act (RESTORE Act) to be
derived from the trust fund established under that act.
The Committee directs the Inspector General to utilize
funds provided to perform audits on Treasury's antimoney
laundering and terrorist financing activities, capital
investment spending and planning, the Community Development
Financial Institutions Fund.

TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $151,393,000
Budget estimate, 2014................................... 149,538,000
Committee recommendation................................ 156,375,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Treasury Inspector General for Tax Administration
[TIGTA] was established by the IRS Restructuring and Reform Act
of 1998 (Public Law 105-206). TIGTA was created to provide
independent audit and investigative services necessary to
improve the quality and credibility of oversight of the
Internal Revenue Service [IRS] and ensure that the IRS is held
to a high level of accountability.
TIGTA conducts audits, investigations, and inspections and
evaluations to assess the operations and programs of the IRS
and related entities, the IRS Oversight Board and the Office of
Chief Counsel 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, and keep the Secretary and Congress fully and
currently informed of these issues and the progress made in
resolving them.
The audit function provides program audit, limited contract
audit, and financial audit services. Program audits review and
audit all facets of the IRS and related entities in an effort
to improve IRS systems and operations, while ensuring fair and
equitable treatment of taxpayers. Contract audits focus on
invoices/vouchers submitted to the IRS to determine whether
charges are valid and to identify erroneous and improper
payments. The investigative function provides for the detection
and investigation of improper and illegal activities involving
IRS programs and operations and protects the IRS and related
entities against external attempts to corrupt or threaten the
administration of the tax laws.
During fiscal year 2012, TIGTA recovered, protected, and
identified monetary benefits totaling $22,700,000,000,
including $388,000,000 in potential increased and protected
revenue and $22,100,000,000 in potential cost savings. In
fiscal year 2012, the Office of Audit completed 117 audits, and
the Office of Investigations opened 3,453 investigations and
closed 3,346 investigations.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $156,375,000
for the Treasury Inspector General for Tax Administration. This
amount is $4,982,000 above the fiscal year 2013 enacted level
and $6,837,000 above the budget request. The Committee
recognizes the expansive workload that TIGTA has assumed as
well as considerable demands on its resources in order to be
responsive to Congress, and includes a modest increase to
support TIGTA's work. The Committee appreciates the challenges
TIGTA faces in adapting its oversight activities to address
increasingly complex and high-risk issues associated with IRS
operations, including detection and investigation of fraud and
electronic crime, review of procurement activities, and
safeguarding of taxpayer privacy. The Committee recognizes that
growth in the size and workload of the IRS generates
concomitant increased work for TIGTA.
The Committee appreciates TIGTA's vigilance to identify
weak or non-existent internal controls, lax oversight, and
serious managerial deficiencies within the IRS organization
that spawned an array of different, highly inappropriate and
unacceptable activities occurring over a period of recent
years. The Committee is troubled by the report findings
describing questionable handling of applications for tax-exempt
status, excessive unseemly expenditures for conferences, and
the misuse of travel and purchase cards. The Committee directs
TIGTA to keep the Committee regularly informed about its
ongoing audit, investigative, and examination work, including
briefings on final reports before such reports are publicly
released. The Committee expects TIGTA to timely bring to the
Committee's attention any issues concerning the IRS's failure
to undertake meaningful prompt remedial action to correct
systemic deficiencies and to institute processes to prevent
recurrence of any activities that call into question the IRS's
ability to uphold the trust of the American public.
The Committee relies on TIGTA's annual assessment of the
serious management challenges facing the IRS as it evaluates
resource needs. In the most recent submission, TIGTA
highlighted the growing problem of identity theft tied to tax
refunds among the predominant challenges. The Committee notes
that TIGTA has made numerous recommendations for the IRS to
institute or improve processes that will bolster the IRS's
ability to detect and prevent the issuance of fraudulent tax
refunds resulting from identity theft. These include enhanced
use of third-party income and withholding information in tandem
with fraud filters, and better coordination with responsible
Federal agencies and banking institutions to develop mechanisms
to ensure proper and accurate direct depositing of refunds. The
Committee urges TIGTA to continue to assist the IRS in
improving its arsenal of tools to better serve innocent
taxpayer victims of identity theft and other schemes.
The Committee commends TIGTA for its ongoing review of the
IRS's business systems modernization program and other
information technology projects. The Committee shares TIGTA's
concern that the IRS is developing and launching its modernized
systems without adequately contemplating the security
implications. The Committee also acknowledges the critical
importance of the priorities TIGTA has identified in its
strategic plan, including adapting to the IRS's continuously
evolving operations and mitigating intensified risks associated
with modernization, security, addressing the tax gap, and human
capital challenges facing the IRS in light of budgetary
limitations.
In addition, TIGTA plays a pivotal role in responding to
threats and attacks against IRS employees, property, and
sensitive information. Furthermore, as the IRS bolsters its
efforts to address international tax compliance and combat
offshore evasion, TIGTA's attendant responsibilities to build a
foundation of inspections of the IRS's global activities have
grown, necessitating an international presence, new law
enforcement partnerships, and working relationships with
foreign revenue collection agencies and antifraud
organizations.

SPECIAL INSPECTOR GENERAL FOR THE TROUBLED ASSET RELIEF PROGRAM

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $41,716,000
Budget estimate, 2014................................... 34,923,000
Committee recommendation................................ 34,923,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Emergency Economic Stabilization Act (Public Law 110-
343) established the Office of the Special Inspector General
for the Troubled Asset Relief Program [SIGTARP] to perform
audits and investigations of the Troubled Asset Relief Program
[TARP].

COMMITTEE RECOMMENDATION

The Committee recommends $34,923,000 for the SIGTARP for
fiscal year 2014. The recommendation is $6,793,000 below the
fiscal year 2013 enacted level because the SIGTARP will be able
to utilize carryover balances to fund a portion of fiscal year
2014. The recommendation is equal to the budget request. The
Committee is pleased with the quality of the audits and
investigations conducted by the SIGTARP, particularly with
regard to written materials provided to the Congress and the
public.

Financial Crimes Enforcement Network

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $110,566,000
Budget estimate, 2014................................... 103,909,000
Committee recommendation................................ 112,000,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Financial Crimes Enforcement Network [FinCEN], a bureau
within the Treasury Department's Office of Terrorism and
Financial Intelligence, is the largest overt collector of
financial intelligence in the United States. FinCEN's mission
is to safeguard the financial system from the abuses of
financial crime, including terrorist financing, money
laundering, and other illicit activity. FinCEN accomplishes its
mission by administering the Bank Secrecy Act, a collection of
statutes that form the Nation's antimoney laundering/
counterterrorist financing regulatory regime. As the delegated
administrator of the Bank Secrecy Act, FinCEN is responsible
for the development and implementation of regulations, rules,
and guidance issued under the Bank Secrecy Act. FinCEN also
oversees the work of eight Federal agencies that have been
delegated responsibility to examine various sectors of the
financial industry for compliance with the Bank Secrecy Act's
requirements. FinCEN is responsible for collecting,
maintaining, and disseminating the information reported by
financial institutions under the Bank Secrecy Act through a
Governmentwide access service. FinCEN is the United States'
Financial Intelligence Unit [FIU] and a founding member of the
Egmont Group of Financial Intelligence Units. As the United
States' FIU, FinCEN routinely shares information and cooperates
with other FIUs around the world to address the global problems
of terrorist financing, money laundering, and other illicit
activity.

COMMITTEE RECOMMENDATION

The Committee recommends $112,000,000 for the Financial
Crimes Enforcement Network [FinCEN]. This amount is $1,434,000
above the fiscal year 2013 enacted level and $8,091,000 above
the budget request.
The Committee is frustrated that the budget request
proposes funding reductions for FinCEN activities. FinCEN plays
a key role in preventing terrorism and promoting the Nation's
security by deterring and detecting criminal financial
activity. The recommended increase will allow FinCEN to
maintain mission critical functions that would be hampered
under the budget request, enable FinCEN to better leverage
taxpayer investments in newly enhanced information systems, and
improve FinCEN's ability to capitalize on the anticipated
benefits resulting from the fiscal year 2013 reorganization.
Information Technology Modernization.--The Committee is
pleased with FinCEN's continued efforts to modernize the
technical environment for implementation of the Bank Secrecy
Act [BSA]. The modernization, near completion, re-engineered
the BSA data architecture, updated antiquated infrastructure
required to support data capture and dissemination, implemented
innovative Web services and enhanced electronic filing, and
provided enhanced analytical tools. This system is used by
banks, Federal law enforcement, State and local law
enforcement, and other Federal intelligence agencies to report,
gather, and analyze data to identify money laundering,
terrorist financing, tax evasion, and vulnerabilities in the
financial industry. The new system will enhance the capability
of the Treasury and its partners to pursue money laundering,
terrorist financing, and tax evasion.
The Committee is pleased with the results of the Treasury
Office of Inspector General's audit of the modernization
project (OIG-13-036). The Inspector General reported that
through February 2013, FinCEN had generally met all scheduled
milestones on time and that the project costs are within
budget. The Committee appreciates that FinCEN has engaged
stakeholder groups during the development process, including
regulators, law enforcement, and industry users of BSA data.
FinCEN is directed to continue to submit a semiannual report to
the Committee on Appropriations summarizing the agency's
progress regarding the modernization effort, including
milestones planned and achieved, progress on cost and schedule,
management of contractor oversight, strategies to involve
stakeholders, and acquisition management efforts.
The Committee also directs FinCEN to focus efforts on
improving the completeness and reliability of BSA data in
accordance with recommendations by the Treasury Inspector
General and the Government Accountability Office. The Committee
notes that while a new BSA infrastructure will improve the
capabilities of processing and analyzing BSA data, the
accuracy, reliability, and timeliness of the data itself will
ultimately determine the effectiveness of the system and
related processes.
FinCEN Reorganization.--The Committee notes that FinCEN is
undertaking a major reorganization during fiscal year 2013. The
goal of the reorganization is to enhance the agency's ability
to meet its mission by streamlining and better aligning the
bureau's analytical, enforcement, liaison, and rulemaking
capabilities and by improving communication internally and with
stakeholders. The Committee notes that FinCEN has reported
details of the reorganization to the Committees on
Appropriations, including its plans for communicating and
managing the impact of the reorganization on stakeholders. The
Committee directs FinCEN to continue frequent and detailed
communication with stakeholders as the reorganization
progresses. The Committee also directs FinCEN to report to the
Committee semiannually on the progress of the reorganization,
with the final report to be submitted one year after the last
step of the reorganization is complete.
Human Trafficking.--The Committee recognizes that human
trafficking and slavery are frequently conducted by
transnational criminal organizations. The Committee notes
FinCEN's history of supporting law enforcement cases that
combat human trafficking, and emphasizes the importance of
continuing this effort as part of the bureau's broader mission
to detect and disrupt all forms of financial crime. In addition
to analyzing financial flows for this important effort in the
course of ongoing strategic operations, FinCEN shall use this
data to ensure reporting institutions remain vigilant in
detecting the laundering of human trafficking proceeds by
issuing an advisory to financial institutions on filing
suspicious activity reports [SARs] regarding human trafficking
activities. The advisory should provide SAR filers a list of
red flag indicators that may potentially signal human
trafficking to be included in the narratives of relevant SAR
filings.

Treasury Forfeiture Fund

(RESCISSION)

The Committee recommends a rescission of $1,200,000,000 of
unobligated balances in the Treasury Forfeiture Fund.

Financial Management Service

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $217,369,000
Budget estimate, 2014\2\................................................
Committee recommendation\2\.............................................

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
\2\The budget proposes to consolidate the Financial Management Service
and the Bureau of the Public Debt under one appropriation entitled
``Bureau of the Fiscal Service''. Funding proposed for the Bureau of the
Fiscal Service for fiscal year 2014 is $360,165,000. The Committee
recommendation is consistent with the budget request.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Financial Management Service [FMS] implements payment
policy and procedures for Federal agencies, issues and
distributes payments, promotes the use of electronics in the
payment process, provides debt collection operational services
to client agencies, and implements collections policy,
regulations, standards, and procedures for the Federal
Government. FMS also provides financial accounting, reporting,
and financing services to the Federal Government and the
Government's agents who participate in the payments and
collections process by generating a series of Governmentwide
reports.

COMMITTEE RECOMMENDATION

The Committee recommends a consolidated appropriation for
the Financial Management Service and the Bureau of the Public
Debt under a new appropriation entitled ``Bureau of the Fiscal
Service'' and in the amount of $360,165,000, consistent with
the budget request.

Alcohol and Tobacco Tax and Trade Bureau

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $99,678,000
Budget estimate, 2014\2\................................ 96,211,000
Committee recommendation................................ 100,678,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
\2\Does not reflect the transfer from the Internal Revenue Service under
the Program Integrity Cap adjustment requested in the budget.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Homeland Security Act created the Alcohol and Tobacco
Tax and Trade Bureau [TTB] within the Department of the
Treasury and charged TTB with collecting revenue and protecting
the public.
TTB enforces certain Federal laws and regulations relating
to alcohol and tobacco. TTB works directly and in cooperation
with others to maintain a sound revenue management and
collection system that continues to reduce the regulatory
burden, improve service, collect the revenue due, and prevent
tax evasion and other criminal conduct. TTB is also responsible
for preventing consumer deception, ensuring that regulated
products comply with Federal commodity, safety, and
distribution requirements, and providing customer service.

COMMITTEE RECOMMENDATION

The Committee recommends $100,678,000 for TTB for fiscal
year 2014. This amount is $4,467,000 above the budget request,
excluding the requested transfer from the Internal Revenue
Service under the Program Integrity Cap adjustment requested in
the budget. The recommendation would be $533,000 below the
budget request if the Program Integrity Cap Adjustment were to
be enacted. The recommended amount is $1,000,000 above the
fiscal year 2013 enacted level.
The Committee recommendation includes $2,000,000 for the
costs of special law enforcement agents and related activities
for targeting tobacco smuggling and other criminal diversion
activities. Illegally trafficked tax-free tobacco is sold at
lower prices, increasing consumption and tobacco-related
illness while depriving governments of revenue. Since 2011,
special TTB enforcement efforts led to the initiation of 58
cases with a total estimated combined Federal tax liability of
$340,000,000 and seizures and forfeitures of approximately
$115,000,000. Cases have included illegal manufacturing of
cigarettes, illegal importation of tobacco products, excise tax
evasion on cigarettes, illegal transportation of alcohol from
lower tax States to higher tax States, importation of
intentionally mislabeled wine, and illegal manufacturing of
spirits.

United States Mint

UNITED STATES MINT PUBLIC ENTERPRISE FUND

PROGRAM DESCRIPTION

The United States Mint manufactures coins, sells numismatic
and investment products, and provides for security and asset
protection. Public Law 104-52 established the U.S. Mint Public
Enterprise Fund (the Fund). The Fund encompasses the previous
Salaries and Expenses, Coinage Profit Fund, Coinage Metal Fund,
and the Numismatic Public Enterprise Fund. The Mint submits
annual audited business-type financial statements to the
Secretary of the Treasury and to Congress in support of the
operations of the revolving fund.
The operations of the Mint are divided into two major
activities: Manufacturing and sales (including circulating
coinage and numismatic and investment products); and
protection. The Mint is credited with receipts from its
circulating coinage operations, equal to the full cost of
producing and distributing coins that are put into circulation,
including depreciation of the Mint's plant and equipment on the
basis of current replacement value. Those receipts pay for the
costs of the Mint's operations, which include the costs of
production and distribution. The difference between the face
value of the coins and these costs is a profit, which is
deposited as seigniorage to the general fund. In fiscal year
2012, the Mint transferred $105,900,000 to the general fund.
Any seigniorage used to finance the Mint's capital acquisitions
is recorded as budget authority in the year that funds are
obligated for this purpose and as receipts over the life of the
asset.

COMMITTEE RECOMMENDATION

The Committee recommends a spending level of $19,000,000
for circulating coinage and protective service capital
investments for the Mint. This amount is equal to both the
fiscal year 2013 enacted level and the budget request.

Bureau of the Public Debt

ADMINISTERING THE PUBLIC DEBT

Appropriations, 2013\1\................................. $172,290,000
Budget estimate, 2014\2\................................................
Committee recommendation\2\.............................................

PROGRAM DESCRIPTION

The Bureau of the Public Debt conducts all public debt
operations and promotes the sale of U.S. savings-type
securities.

COMMITTEE RECOMMENDATION

Bureau of the Fiscal Service

SALARIES AND EXPENSES

Appropriations, 2013\1\.................................................
Budget estimate, 2014................................... $360,165,000
Committee recommendation................................ 360,165,000

\1\The budget proposes to consolidate the Financial Management Service
and the Bureau of the Public Debt under one appropriation entitled
``Bureau of the Fiscal Service''. The fiscal year 2013 enacted level was
$217,369,000 for the Financial Management Service and $172,290,000 for
the Bureau of the Public Debt.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Bureau of the Fiscal Service is a proposed
consolidation of the Financial Management Service and the
Bureau of the Public Debt. The Bureau of the Fiscal Service
will continue the operations of both agencies by providing
central payment services to Federal agencies, operating the
Federal Government's collections and deposit systems, providing
governmentwide accounting and reporting services, managing the
collection of delinquent debt owed to the Federal Government,
borrowing on behalf of the Federal Government, and providing
support services for other Federal agencies on a reimbursable
basis.

COMMITTEE RECOMMENDATION

The Committee recommends $360,165,000 for the Bureau of the
Fiscal Service, consistent with the budget request. The Fiscal
Service is a consolidated bureau proposed by the President for
fiscal year 2014 and therefore was not provided a specific
appropriation for fiscal year 2013. Compared to the fiscal year
2013 enacted level for both the Financial Management Service
[FMS] and the Bureau of the Public Debt [BPD], the
recommendation represents a decrease of $29,494,000.
The Committee appreciates the Department's efforts,
outlined in the January 7, 2013 letter to the General Services
Administration, to ensure a smooth transition to a consolidated
Bureau of the Fiscal Service and notes that the Department has
committed to maintain operations of the former headquarters of
the Financial Management Service until December 31, 2019.
The Committee has included language (section 125)
authorizing the Treasury Department to retain a portion of
assets recovered under an unclaimed asset recovery program to
cover the cost of such program. The Committee directs that any
funds retained by Treasury pursuant to such section shall only
be used for operational and administrative costs of recovering
unclaimed assets. The remainder of the recovered assets shall
be deposited in the Treasury for the purposes of deficit
reduction.

Community Development Financial Institutions Fund

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM ACCOUNT

Appropriations, 2013\1\................................. $220,558,000
Budget estimate, 2014................................... 224,936,000
Committee recommendation................................ 230,000,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Community Development Financial Institutions Fund makes
investments in the form of grants, loans, equity investments,
deposits, and technical assistance grants to new and existing
community development financial institutions [CDFIs] through
the CDFI program. CDFIs include community development banks,
credit unions, venture capital funds, revolving loan funds, and
microloan funds, among others. Recipient institutions engage in
lending and investment for affordable housing, small business,
and community development within underserved communities. The
CDFI Fund administers the Bank Enterprise Award [BEA] Program,
which provides a financial incentive to insured depository
institutions to undertake community development financing
activities.

COMMITTEE RECOMMENDATION

The Committee recommends $230,000,000 for the CDFI Fund,
which is an increase of $9,442,000 to the fiscal year 2013
enacted level and an increase of $5,064,000 the budget request.
The Committee supports funding for the CDFI Fund because of
the program's unique ability to leverage private sector
investment in community development projects such as affordable
housing, retail development, and community centers, as well as
lending to small businesses. Funding for the CDFI Fund expands
the power of CDFIs to improve urban and rural communities
through sound but patient investment. With just a small amount
of seed financing from the CDFI Fund, CDFIs transform
communities. CDFIs often provide the ``last mile'' of financing
to our Nation's most challenged areas. CDFIs also provide
banking services to the unbanked and others targeted by
predatory lenders.
Healthy Food Financing Initiative.--The Committee
recommends $25,000,000 for the CDFI Fund to carry out the
Healthy Food Financing Initiative. The goal of the initiative
is to increase the availability of affordable, healthy foods in
underserved urban and rural communities. Many of these
communities are only served by fast food restaurants and
convenience stores that offer limited healthy food options.
Recommended funding will increase the availability of
affordable financing for grocery store development, supplies
and equipment to improve food production technology, and
improvements and modernization of food distribution mechanisms
and infrastructure.
The Committee finds that food hubs, which consolidate food
from local farmers and distribute these foods to food
processors, retailers, and restaurants, serve an important
niche in creating local food systems that are economically
viable, sustainable, and capable of increasing the availability
of healthy, affordable foods. The Committee finds that food
hubs also allow smaller and geographically distant farms to be
more competitive and reach bigger markets. The Committee
directs the CDFI Fund to encourage awardees to include food
hubs as part of the overall strategy for increasing the
availability of healthy, affordable foods as required under the
Healthy Food Financing Initiative.
Native Programs.--The Committee recommends a set-aside of
$15,000,000 for grants, loans, and technical assistance and
training programs to benefit Native American, Alaskan Natives,
and Native Hawaiian communities in the coordination of
development strategies, increased access to equity investments,
and loans for development activities.
Bond Guarantee Program.--The Committee includes a provision
enabling the Secretary of the Treasury to guarantee up to
$1,000,000,000 in bonds in fiscal year 2014, as authorized by
section 1134 of the Small Business Jobs Act of 2010 (Public Law
111-240). The bond guarantees will not result in a cost to the
taxpayer. The bonds will support CDFI lending and investment
activities in underserved communities by providing a source of
long-term capital, and the funds raised through the bonds will
be used to capitalize new loans or refinance existing loans.
CDFI Capacity Building.--The Committee recommendation
includes $2,000,000 to enhance the CDFI Fund's efforts in
building the capacity of CDFIs to serve the needs of
underserved communities. The Committee directs that such funds
shall be used to support the enhancement of CDFIs' presence and
activities in underserved communities.
Non-Metropolitan and Rural Areas.--The Committee directs
Treasury to take into consideration the unique conditions,
challenges, and scale of non-metropolitan areas when designing
programs to address economic revitalization and community
development. The Committee notes that the CDFI Fund is required
by 12 U.S.C. 4706(b) to seek to fund a geographically diverse
group of award recipients, including those from non-
metropolitan and rural areas.

Bureau of Engraving and Printing

PROGRAM DESCRIPTION

The Bureau of Engraving and Printing [BEP] has been the
sole manufacturer of U.S. paper currency for almost 150 years.
The origin of the BEP is traced to an act of Congress passed on
February 25, 1862, 12 Stat. 345, authorizing the Secretary of
the Treasury to issue a new currency--United States notes.
While this law was the cornerstone authority for the operations
of the engraving and printing division of the Treasury for many
years, it was not until an Act of June 20, 1874, 18 Stat. 100,
that the Congress first referred to this division as the
``Bureau of Engraving and Printing.'' The Bureau's status as a
distinct bureau within the Department of the Treasury was
solidified by section 1 of the Act of June 4, 1897, 30 Stat.
18, which placed all of the business of the BEP under the
immediate control of a director, subject to the direction of
the Secretary of the Treasury. The 1897 law is now codified in
31 U.S.C. 303.
The BEP designs, manufactures, and supplies Federal Reserve
notes and other security documents issued by the Federal
Government. The operations of the BEP are currently 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. No direct
appropriation is required to cover the activities of the BEP.
Currency Accessibility for the Blind and Visually
Impaired.--The Committee is concerned about the ability of
blind and visually impaired individuals to identify
denominations of United States currency. In May 2008, the
United States District Court for the District of Columbia
ordered the Treasury Department to provide meaningful access to
currency for blind and visually impaired persons in order to
comply with the Rehabilitation Act of 1973. The Committee finds
that this is an obligation we have to our service members and
veterans who have lost their sight while serving their country.
The Committee directs the Government Accountability Office
to report within 180 days on how the BEP can expedite the
development, design, testing, and printing of currency with
accessibility features, including tactile features and high-
contrast numerals. The report should include a description of
how the BEP may expedite the Federal acquisition process for
the specialized equipment required to create accessibility
features.
Further, the Committee directs Treasury's Office of
Inspector General to provide to the Committee an assessment of
BEP's plans to develop, design, test, and print currency with
accessibility features within 60 days of receipt and to report
on its progress and implementation every 6 months thereafter
until the plan is fully implemented.
Finally, the Committee encourages the BEP to contract with
the Library of Congress National Library Service for the Blind
and Physically Handicapped, and relevant Executive Agencies,
for the purpose of distributing supplemental currency readers
to blind and other visually impaired U.S. citizens and legal
residents.

Internal Revenue Service

PROGRAM DESCRIPTION

The Internal Revenue Service [IRS] administers the Nation's
tax laws and collects the revenue that funds more than 92
percent of the Federal Government's operations and public
services. The IRS's mission is to provide taxpayers with
quality service by helping them understand and meet their tax
responsibilities and by applying the tax law with integrity and
fairness to all. The IRS focuses its enforcement programs
toward increasing voluntary tax compliance by deterring
taxpayers inclined to evade their tax obligations while
vigorously pursuing those who violate the law. Each year, IRS
employees deal directly with more American taxpayers than any
other institution, public or private.
During fiscal year 2012, the IRS processed more than 237
million returns, issued over 123.3 million refunds, and
collected over $2,500,000,000,000 for the Federal Government.
Of the more than 146 million individual income tax returns
processed, nearly 81 percent were filed electronically. This
marks a significant increase in electronically filed returns
compared to the 31 percent in fiscal year 2001. The IRS
provided taxpayer assistance through more than 372 million
visits to the IRS.gov Web site, and assisted 97 million
taxpayers through its toll-free telephone helpline or at walk-
in Taxpayer Assistance Centers. The IRS employed a total work
force of 97,941, including seasonal and part-time employees. In
fiscal year 2012, the average cost of collecting $100 in tax
revenue was 48 cents, the lowest cost since 2008. An important
focus for the IRS in recent years has been to undertake a major
modernization of its systems, including expanding its Internet
services and business operations to better serve taxpayers and
enforce the law.

COMMITTEE RECOMMENDATION

The Committee recommends a total of $12,069,559,000 for the
Internal Revenue Service for fiscal year 2014. This is an
increase of $276,496,000 above the fiscal year 2013 enacted
level and $791,474,000 below the budget request.
Tax Gap.--The vast majority of Americans pay their fair
share of taxes, yet there is still a ``tax gap.'' The tax gap
is the difference between what taxpayers are supposed to pay
and what they actually do pay. In January 2012, the IRS issued
an updated estimate, based on tax year 2006 liabilities,
reflecting a gross tax gap of $450,000,000,000 and a net tax
gap of $385,000,000,000. Of the gross tax gap, more than 83
percent is attributable to underreporting of income. The
determination in the 2001 assessment that compliance is far
higher when reported amounts are subject to information
reporting and, more so, when subject to withholding, remained
valid with the 2006 tax gap estimate.
To reduce the tax gap, experts recommend a number of
approaches. These include improving information reporting,
improving taxpayer services, increasing research on
noncompliance, improving the partnership between the IRS and
the tax administration community, and leveraging technology to
improve IRS's systems. The Committee supports all of these
approaches in combination.
Tax Compliance.--The Committee remains concerned that
absent a better understanding of the current sources of
noncompliance, efforts to improve compliance may be hampered,
misdirected, and difficult to measure. To gain meaningful
insights into taxpayer behavior, the Committee strongly
supports the work of the National Taxpayer Advocate and the IRS
Office of Research to examine factors that influence taxpayer
compliance behavior, including how and the extent to which
various factors influence such behavior, and how the
establishment of a cognitive learning and applied research
laboratory might facilitate continued evaluation.
Operating Plan and Notification.--In addition to the
regular operating plan requirements detailed in the
introduction in this report, the Committee directs the IRS to
include details on any planned reorganization, job reductions
or increases to offices or activities within the agency, and
modifications to any service or enforcement activity. The
Committee also directs the IRS to obtain and include comments
of the IRS Oversight Board as part of its operating plan
submission to the Committee. Further, the IRS should promptly
notify the Committee and the IRS Oversight Board of any
substantial changes to these plans.
Budget Presentation for Staffing of New Initiatives.--The
Committee is concerned that, in the annual budget justification
materials submitted by the IRS to the Committee, resources
designated for hiring of staff for new initiatives are not
predicated on the expected hiring dates, but instead assume
that such planned hiring will occur at the beginning of the
fiscal year. This approach for budgeting for hiring of new
staff does not mirror the reality of the typical hiring
activity and has resulted in funds being directed for purposes
and activities other than personnel acquisition that were not
substantiated or described in the budget justification. The
Committee strongly believes that transparency in the budget
request documents is critical for congressional oversight and
informed decision making. The Committee directs that, beginning
with the justification materials submitted by the IRS to the
Committee for fiscal year 2015, funding requests should more
accurately reflect the anticipated hiring dates for staff
identified for proposed new initiatives.

TAXPAYER SERVICES

Appropriations, 2013\1\................................. $2,235,224,000
Budget estimate, 2014................................... 2,412,576,000
Committee recommendation................................ 2,316,246,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Taxpayer Services appropriation provides for taxpayer
services, including forms and publications; processing tax
returns and related documents; filing and account services;
taxpayer advocacy services; and assisting taxpayers to
understand their tax obligations, correctly file their returns,
and pay taxes due in a timely manner.

COMMITTEE RECOMMENDATION

The Committee recommends $2,316,246,000 for Taxpayer
Services, which is $81,022,000 above the fiscal year 2013
enacted level, and $96,330,000 below the budget request. Bill
language is included providing not less than $5,600,000 for the
tax counseling for the elderly program, not less than
$10,000,000 for low-income taxpayer clinic [LITC] grants, not
less than $18,000,000, to be available for 2 years, for a
community volunteer income tax assistance [VITA] matching grant
program for tax return preparation assistance and $210,000,000
for the Taxpayer Advocate Service.
The Committee recognizes the significant service challenges
requiring rapid implementation that the IRS has faced as a
result of recent tax law provisions designed to assist
taxpayers in difficult economic times.
Telephone Level of Service.--The Committee acknowledges
that telephonic access to the IRS is critical to promoting
voluntary compliance. In recent years, the IRS has experienced
a decline in its level of service on its toll-free taxpayer
service line due to increased volume. In 2012, the IRS answered
just 68 percent of its calls, and callers spent an average of
17 minutes waiting on hold. The Committee encourages the IRS to
continue to make steady progress in its telephonic response
performance and work to sustain taxpayer service delivery in an
atmosphere of fiscal austerity and budgetary constraints.
E-Filing.--The Committee is heartened by the IRS's steady
improved performance in increasing the number of tax filers who
submit their returns electronically and without additional
cost. Electronic filing benefits taxpayers and promotes
effective tax administration because it decreases processing
errors, expedites processing and payment of refunds, and allows
the IRS to efficiently maintain up-to-date records. It costs
the IRS 15 cents to process an electronically filed return,
compared to $3.50 to process a paper filed return.
During the fiscal year 2012 filing season, nearly 119
million individual tax returns, or almost 81 percent, were
filed electronically, an increase of 4.7 percent from the
previous year. Business returns filed electronically were up by
15 percent to 36.7 percent of the total filings, and tax
professionals' use of electronically filing rose to nearly 76
million returns, a jump of over 5 percent compared to 2011.
In view of the high rate of electronic filing of tax
returns, the IRS's ability to process returns on a daily basis,
and the popularity of electronic deposit of refunds, the
Committee strongly urges the IRS to reevaluate and update its
measure on refund timeliness as recommended by GAO and the IRS
Oversight Board.
Taxpayer Assistance Blueprint.--In response to the
Committee's directive in the fiscal year 2006 Treasury
Appropriations Act, the IRS, in consultation with the IRS
Oversight Board and the National Taxpayer Advocate, developed a
``Taxpayer Assistance Blueprint'' to institute a 5-year
strategic plan for taxpayer services. The Committee expects the
Taxpayer Assistance Blueprint to be an integral and guiding
component of ongoing strategic planning for delivering
services. The Committee supports continued efforts to conduct
research on taxpayer needs and taxpayer service performance.
The Committee directs the IRS, the IRS Oversight Board, and
the National Taxpayer Advocate to continue to submit to
Congress annual updates to the Taxpayer Assistance Blueprint
identifying any changes to its current strategic plan for
taxpayer service, including the results of any new research and
relevant findings, and any open issues requiring additional
research.
Community Volunteer Income Tax Assistance.--The Volunteer
Income Tax Assistance [VITA] program is an important aspect of
IRS efforts to provide income tax preparation assistance
programs for low-income taxpayers.
A grant program established in 2008 provides direct funds
to enable VITA programs to extend services to underserved
populations and hardest-to-reach areas, both urban and
nonurban, as well as to increase the capacity to file returns
electronically, heighten quality control, enhance training of
volunteers, and significantly improve the accuracy rate of
returns prepared by VITA sites.
The Committee notes that in November 2012, IRS awarded
matching grants to 207 organizations enabling them to offer
free tax preparation services during the 2013 tax filing season
at locations in all 50 States and the District of Columbia. The
Committee recognizes that the applications for these grants far
exceed the available resources.
The Committee provides that, within funds provided,
$18,000,000 shall be available for 2 years for exclusive use as
part of continuing a matching grant program established and
administered by the IRS, in consultation with the Taxpayer
Advocate Service, for not for profit organizations which
provide volunteer income tax return preparation services for
lower income individual taxpayers.
The Committee strongly urges the IRS to make every effort
to expand the quantity and funding level of VITA grants focused
on serving persons with disabilities proportional to the
growing disability population requiring tax assistance. The
Committee understands that entities that are currently
increasing their outreach efforts to better serve the needs of
the disability population have experienced difficulty in
applying for Federal grant assistance due to a lack of
resources at the local level needed to complete the
application. The Committee urges the IRS to allow national
coalitions responsible for the coordination of local community
partnerships focused specifically on the expanded provision of
tax services for individuals with disabilities to compete in
the VITA community matching grant processes.
Taxpayer Services in Alaska and Hawaii.--Given the remote
distance of Alaska and Hawaii from the U.S. mainland and the
difficulty experienced by Alaska and Hawaii taxpayers in
receiving needed tax assistance by the national toll-free line,
it is imperative that the Taxpayer Advocate Service Centers in
these States are fully staffed and capable of resolving
taxpayer problems of the most complex nature. The Committee
directs the IRS to continue to staff each Taxpayer Advocate
Service Center in each of these States with a collection
technical advisor and an examination technical advisor in
addition to the current complement of office staff. Staffing
should be increased if, as the result of the IRS Restructuring
and Reform Act of 1998, subsequent legislation, or other
factors, the volume of cases or their complexity increases.

ENFORCEMENT

Appropriations, 2013\1\................................. $5,288,768,000
Budget estimate, 2014................................... 5,666,787,000
Committee recommendation................................ 5,342,980,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Enforcement 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; identifying underreporting of tax obligations; securing
unfiled tax returns; and collecting unpaid accounts.

COMMITTEE RECOMMENDATION

The Committee recommends $5,342,980,000 for enforcement
activities for fiscal year 2014. This amount is $54,212,000
above the fiscal year 2013 enacted level and $323,807,000 below
the budget request. Bill language is included to provide not
less than $60,257,000 to the Interagency Crime and Drug
Enforcement program.
Processing of Applications for Tax-Exempt Status.--
Recently, the Treasury Inspector General for Tax Administration
[TIGTA] released audit findings delineating the disturbing use
of inappropriate case screening criteria in the handling of
applications for tax-exempt status spanning numerous months.
The report described unacceptable delays in case disposition,
weak internal controls, communications breakdowns, and serious
management deficiencies. The Committee shares the general
outrage about these inexcusable organizational missteps that
are wholly inconsistent with the IRS's mission to promote
integrity and fairness for all. The Committee strongly believes
that immediate, meaningful, transparent, and sustained
corrective action is warranted to restore any erosion of public
trust in the IRS, strengthen the agency, and prevent any
recurrence of the circumstances that led to the inappropriate
behavior.
The Committee directs the IRS to vigilantly adopt, follow,
and build upon the multi-step action plan outlined in the
acting commissioner's preliminary assessment published on June
24, 2013. The Committee is cognizant that the changes necessary
will be challenging, time-consuming, and require strong,
sustained leadership engagement at the highest levels.
The Committee is acutely aware that the lack of a precise
definition of the term ``primarily'' in discerning the quantity
and nature of an organization's social welfare activities
relative to an entity's total activities including political
campaign intervention is problematic. The absence of
unequivocal guidance in the statute and rules for qualifying
for 501(c)(4) tax-exempt status has generated considerable
confusion. While this lack of clarity in no way excuses the
IRS's inconsistent treatment of certain applicants for tax-
exempt status, it may have contributed to the processing
delays. The Committee fully appreciates that the Department of
the Treasury, not the IRS, is responsible for developing and
promulgating tax policy consistent with the Tax Code authored
by Congress. The Committee is encouraged that, consistent with
one of the recommendations of TIGTA, the IRS has initiated
discussion with the Treasury Department to pursue changes to
guidance on measuring ``primary activity'' and clarification of
the definition of ``political campaign intervention'' with
respect to social welfare organizations seeking tax-exempt
status. The Committee understands that these matters will be
included in the Treasury's next Priority Guidance Plan, and
expects the Department to keep the Committee regularly and
fully informed of the status of developments as revisions to
the guidance are formulated and finalized.
Furthermore, the Committee strongly believes that the IRS,
particularly the Exempt Organizations component, should work
quickly to vastly improve its consultations with the Taxpayer
Advocate Service [TAS]. This shall include responding to TAS
directives for expedited processing of significant hardship
cases, promptly referring over-age cases, and routinely
alerting TAS to systemic issues. Moreover, the Committee notes
that the Taxpayer Advocate has publicly issued a report
outlining 16 recommendations to address the factors that
contributed to the use of questionable screening criteria and
processing delays. The Committee expects the IRS to consider
and identify the suggestions and input of both the Taxpayer
Advocate and the IRS Oversight Board in issuing any future
public report on the status of reforms instituted in response
to the TIGTA report on processing of applications for tax-
exempt status.
Consistent with the reforms that the leadership of the IRS
is instituting within the organization, the Committee includes
three new administrative provisions in the bill setting forth
specific directives and expectations of the Committee with
regard to the handling of applications for tax-exempt status
for social welfare organizations. These include mandates on the
publication of guidance for processing applications, internal
controls for expeditious case processing, and staff training.
Combating Refund Fraud and Identity Theft.--Identity theft
is a serious and growing problem in the United States.
Detection and deterrence pose a daunting challenge for the IRS.
Taxpayers are harmed when identity thieves file fraudulent tax
documents using stolen names and Social Security numbers, and
wrongfully receive refunds. Identity theft can be devastating
for victims, whose legitimate refunds are blocked, forcing them
to spend months untangling their account problems with the IRS.
The Committee recommends that the IRS invest in techniques
and processes including the adoption of unique identifiers to
help decrease the ability of fraud perpetrators to gain access
to social security numbers and other personally identifiable
information. The Committee recommends enhanced recognition
processes and creation of an alternate entity resolution and
linking technology that would facilitate automated
identification of duplicates in the system which in combination
with other identifiers would prevent illegitimate access to the
kinds of information that allow for refund-related identity
theft to persist.
The Committee acknowledges that while the IRS has made some
inroads in its capacity to flag and filter questionable
filings, the IRS still needs to significantly improve its
timeliness and effectiveness in responding to taxpayers who
report that they have been victims of refund-related identity
theft. The Committee is dismayed that resolving refund-related
identity theft cases can consume more than 1 year and that
communication between the IRS and victims is frequently limited
and confusing. The Committee directs the IRS to institute, and
share with the Committee within 90 days of enactment, an action
plan and timetable predicated on a goal of reducing by half the
average amount of time a taxpayer must await a disposition of a
refund fraud claim.
Preventing Payroll Tax Fraud.--The Committee recognizes
that many employers outsource payroll and related tax duties to
third-party payroll service providers to help assure filing
deadlines and deposit requirements are met and streamline
business operations. While most payroll service providers are
trustworthy, failures can pose devastating financial setbacks
for multiple clients, particularly small businesses. The
Committee is aware that the National Taxpayer Advocate has
recommended an array of practical solutions to address this
persistent problem, including more effective early detection of
potential fraud; registration, certification, and bonding
requirements for third-party payroll tax services; restrictions
on changing addresses of record; and greater consideration of
offers in compromise to assist defrauded businesses with relief
from tax liability.
The Committee directs the IRS to intensify its scrutiny of
questionable practices of payroll service providers and
continue to inform taxpayers of their responsibility for
payment of all Federal and State employment taxes
notwithstanding any contractual relationship with a payroll
service provider. The Committee directs the IRS to report to
the Committee within 90 days of enactment on (1) what data is
currently collected on delinquent payroll service providers,
(2) how this data is currently being used to prevent fraud, and
(3) what the IRS would do with this data if given additional
resources for this purpose.
The Committee includes an administrative provision
requiring that the IRS issue a notice of confirmation of any
address change relating to an employer making employment tax
payments, and that such notice be sent to both the employer's
former and new address and requires that an officer or employee
of the Internal Revenue Service shall give special
consideration to an offer-in-compromise from a taxpayer who has
been the victim of fraud by a third party payroll tax preparer.
National Research Program.--As noted previously, the
Committee strongly supports the work of the National Research
Program [NRP] to increase understanding of the tax gap. The
Committee agrees with GAO, TIGTA, the National Taxpayer
Advocate, and the IRS Oversight Board, which have all
recommended greater and more frequent data collection and
studies of the tax gap including the portion of the tax gap
attributable to international transactions.
Performance Measures.--The Committee strongly urges the IRS
to develop additional performance measures to evaluate the
effectiveness of IRS programs such as preparer regulation, new
information reports for merchant payment cards and stock basis,
the Compliance Assurance Process [CAP] program, and Offshore
Voluntary Disclosure programs. The Committee shares the
perspective of the IRS Oversight Board that such measures would
provide greater insight into how specific initiatives impact
compliance and would contribute to better informed management
and funding decisions.
Misclassification of Contractors.--The Committee continues
to be highly concerned with the misclassification of workers as
independent contractors rather than as employees. This
misclassification leads to the underreporting and underpayment
of employment and payroll taxes by employers and individuals,
which accounts for a substantial portion of the gross tax gap.
The Committee is encouraged by IRS actions to develop an
agency-wide plan and a worker classification team to assist
external stakeholders. The Committee understands that the IRS
is undertaking a random sampling selection to study worker
classification and other employment tax issues, including the
safe harbor provision. The Committee looks forward to reviewing
the findings and recommendations at the conclusion of this
study.
The Committee is concerned that staffing within the IRS's
SS-8 program, responsible for making determinations as to a
worker's Federal employment tax status, has not kept pace with
the record and sustained SS-8 filings during the past three
filing seasons. The Committee believes that the IRS SS-8
program is critical to ensuring that workers are classified
correctly, identifying leads for employment tax exams and
criminal investigations, and combating the underreporting of
employment taxes that contributes significantly to the tax gap.
The Committee believes it is crucial, given the growing
workload, that the IRS maintain sufficient staffing at SS-8
processing locations. Prior to making any staffing reductions
at the SS-8 processing locations, the Committee directs the IRS
to provide a report to the Committee that details the past 5
years of staffing levels and employee productivity, SS-8
receipt volumes, and rationale for the proposed workforce
changes.

OPERATIONS SUPPORT

Appropriations, 2013\1\................................. $3,939,521,000
Budget estimate, 2014................................... 4,480,843,000
Committee recommendation................................ 4,109,506,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Operations Support appropriation provides for overall
planning and direction of the IRS including Infrastructure,
including administrative services related to space and housing,
rent and space alterations, buildings service maintenance,
guard services, and non-IT equipment; Shared Services and
Support, including policy management, IRS-wide support for
research, strategic planning, communications and liaison,
finance, human resources, equity, diversity, and inclusion
programs, printing, postage, business systems planning,
corporate training, legal services, procurement, and employee
benefit programs; and Information Services, including the
staffing, equipment, and related costs to manage, maintain, and
operate the information systems critical to the support of tax
administration programs.
Funding for Operations Support budget activities undergirds
both Taxpayer Services and Enforcement programs that depend on
agile, sophisticated information systems to promptly and
properly process tax and information returns, account for tax
revenues collected, permit automated requests for account and
return transcripts, issue billings for taxes owed, generate
refund payments, assist in selection of returns for audit, and
provide telecommunications services for the full array of IRS
business activities, including Web site and toll-free phone
access.

COMMITTEE RECOMMENDATION

The Committee recommends $4,109,506,000 for Operations
Support for fiscal year 2014. This amount is $169,985,000 above
the fiscal year 2013 enacted level and $371,337,000 below the
budget request. Bill language is included allowing up to
$250,000,000 of these funds to remain available until September
30, 2015, for information technology support and not to exceed
$1,000,000 to remain available until September 30, 2016, for
research; not less than $2,000,000 for the Internal Revenue
Oversight Board; and $25,000 for official reception and
representation expenses.
The recommended funding supports initiatives being
undertaken to implement the information technology and
operational infrastructure critical to delivery of new tax
credits and other IT changes necessitated by changes in the
law. For any cost estimates, the Committee expects the IRS to
follow the best practices outlined in GAO's Cost Guide for a
comprehensive, well-documented, accurate, and credible cost
estimate. It is imperative that the Committee be regularly
apprised of updated cost estimates in order to have sufficient
reliable information about the specific fiscal 2014 funding
needs in the context of what has been expended to date and with
what results, as well as what costs may be expected to arise in
fiscal years beyond 2014.
Information Technology [IT] Management and Oversight.--The
IRS funds 155 IT systems. Of these, 20 are major systems each
having an annual budget of greater than $10,000,000. The IRS
has made significant strides in improving the management and
oversight of its business systems modernization [BSM] program.
The Committee strongly urges the IRS to vigilantly address
major systemic problems with its non-BSM portfolio of
information technology projects.
The Committee shares the concerns, cited by both TIGTA and
GAO, that the IRS lacks a comprehensive integrated system to
provide accurate, relevant, and timely financial and operating
data that can be used to evaluate performance measures,
productivity, and the associated costs of IRS programs. This
deficiency hinders IRS management decisionmaking as well as
congressional oversight of progress in achieving program goals.
The Committee notes that while the IRS uses its IT
governance process to track progress in completing activities
and achieving milestones in non-BSM IT project implementation,
it lacks a quantitative measure for doing so and as a result,
cannot determine the extent of functionality achieved as
incremental stages of project development are reached.
Quantitative measures are valuable project management tools for
securing complete information for ascertaining status and
progress in delivering systems.
In response to GAO's recommendation as part of its
evaluation work related to the BSM spending plans several years
ago, the IRS developed a useful measure based on capabilities
to be achieved for each milestone. The Committee strongly
encourages the IRS to consider developing and using a
quantitative measure of scope for all of its non-BSM major IT
systems to provide more complete understanding of the
functionalities achieved along the course of project work, and
to better ensure that investments are producing the results
expected. In addition, TIGTA has identified problems in several
areas of IT management and oversight including, but not limited
to, such areas as classification of investment projects,
oversight and governance structure, risk management,
contingency planning, and contractor performance and
accountability.
Although progress has been made, the Committee remains
concerned about chronic material weaknesses in IRS's internal
controls over information security that expose systems to
serious risk. The Committee expects the IRS to continue efforts
to fully address information security vulnerabilities,
including promptly instituting corrective action in response to
recommendations of TIGTA and GAO in this area.
The Committee directs the administration and the IRS to
include within the fiscal year 2015 budget request a proposed
long-term multiyear funding strategy and timetable within the
Operations Support account to upgrade and modernize the aging
legacy IRS information technology infrastructure.
Strategic Planning for E-Service Enhancements.--E-services
is a suite of Web-based products that allow tax professionals
and taxpayers to conduct business with the IRS electronically.
The Committee believes there is considerable untapped potential
for more robust use of virtual technology and enhanced
electronic communications in transactions between the IRS and
taxpayers and tax professionals. The Committee directs the IRS
to develop and share with the Committee, within 180 days of
enactment, a strategic plan, including identification of
specific short-term and long-term opportunities for new or
enhanced uses of e-services and an assessment of the related
resource needs.
Information Technology Reports.--The Committee directs the
IRS to submit quarterly reports on particular major project
activities to the Committees on Appropriations and the GAO, no
later than 30 days following the end of each calendar quarter
in fiscal year 2014. The Committee expects the reports to
include detailed, plain English explanations of the costs and
schedules for the previous 3 months and a description of the
anticipated cost and schedule for the upcoming 3 months for the
following major information technology project activities:
IRS.gov; Returns Remittance Processing; EDAS/IPM; Information
Returns and Document Matching; E-services; Taxpayer Advocate
Service Integrated System and other projects associated with
significant changes in law. The Committee further directs GAO
to review and provide an annual report to the Committees
evaluating the cost and schedule of activities of all major IRS
information technology projects for the year, with particular
focus on the projects about which the IRS is submitting
quarterly reports to the Committee.

BUSINESS SYSTEMS MODERNIZATION

Appropriations, 2013\1\................................. $329,550,000
Budget estimate, 2014................................... 300,827,000
Committee recommendation................................ 300,827,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Business Systems Modernization account provides
resources for revamping business practices and acquiring new
technology. The IRS has undertaken a multiyear, multibillion
dollar effort to migrate from its antiquated legacy system to
bring the IRS tax administration system to a level of public
and private sector best practices. The IRS is using a formal
methodology to prioritize, approve, fund, and evaluate its
portfolio of business systems modernization investments. This
methodology is designed to enforce a documented, repeatable,
and measurable process for managing investments throughout
their life cycle. The process is reviewed by the Government
Accountability Office on a regular basis.

COMMITTEE RECOMMENDATION

The Committee recommends $300,827,000 for Business Systems
Modernization [BSM] for fiscal year 2014. This amount is
$28,723,000 below the fiscal year 2013 enacted level and the
same as the budget request. The Committee encourages the IRS to
use resources available through user fee revenues to augment
the direct discretionary appropriation for the BSM program.
The Committee is committed to ensuring continued progress
as the IRS builds on the commendable foundational work
accomplished in 2012 to successfully deploy the CADE2 program
to provide daily account processing and to update the
Modernized e-File program to launch additional system
capabilities. The Committee recognizes that successful high-
risk systems modernization efforts depend upon sustained and
adequate funding to support automation refinements designed to
help improve customer service through faster response, enhance
compliance and enforcement activities, and enhance production
volumes at lower error rates.
The Committee expects the IRS to continue to submit
quarterly reports to the Committee and the Government
Accountability Office [GAO] during fiscal year 2014, no later
than 30 days following the end of each calendar quarter. The
Committee expects the reports to include detailed, plain
English explanations of the costs and schedules for CADE2 and
MeF activities for the previous 3 months and a description of
the anticipated cost and schedule for the upcoming 3 months.
The Committee further directs GAO to review and provide an
annual report to the Committee evaluating the cost and schedule
of CADE2 and MeF activities for the year.
The Committee remains concerned that IRS systems
modernization, by its nature, is a high-risk endeavor, and
appreciates that the IRS has, in recent years, satisfied the
majority of developmental milestones planned for completion
early, under budget, or within 10 percent of cost and schedule
estimates. Because of the tendency for certain projects or
components to exceed schedule and cost estimates, the Committee
urges IRS management to maintain close routine scrutiny of cost
and schedule factors.

ADMINISTRATIVE PROVISIONS--INTERNAL REVENUE SERVICE

(INCLUDING TRANSFER OF FUNDS)

The Committee has included six administrative provisions
carried in prior appropriations acts and five new directives as
follows:
Section 101 continues a provision allowing the IRS to
transfer up to 5 percent of any appropriation made available to
the agency in fiscal year 2014 to any other IRS account, with
the exception of the Enforcement account, which is limited to 3
percent. The IRS is directed to follow the Committee's
reprogramming procedures outlined earlier in this report.
Section 102 continues a provision maintaining a training
program in taxpayers' rights and cross-cultural relations.
Section 103 continues a provision requiring the IRS to
institute and enforce policies and procedures, which will
safeguard the confidentiality of taxpayer information and
protect taxpayers against identity theft.
Section 104 continues a provision directing that funds
shall be available for improved facilities and increased
staffing to support sufficient and effective 1-800 help line
services for taxpayers including enhanced reception and
response time of taxpayer correspondence, particularly for
victims of tax-related crimes.
Section 105 renews a provision enacted in Public Law 111-
117 that prohibits the use of funds in this act to enter into,
renew, extend, administer, implement, enforce, provide
oversight of, or make any payment related to any qualified tax
collection contract.
Section 106 continues a provision enacted in Public Law
113-6 that extends authority for appointment to critical
administrative, technical, and professional positions needed to
carry out the functions of the IRS.
Section 107 is a new provision allowing a 2-year renewal of
the term of a critical pay provision based on critical
organizational need.
Section 108 is a new provision requiring the IRS to issue
notices to employers of any address change request and to give
special consideration to offers in compromise for taxpayers who
have been victims of payroll tax preparer fraud.
Section 109 is a new provision requiring the IRS to
publicize on its Web site clear guidance for processing of
applications for tax-exempt status involving potentially
significant political campaign intervention.
Section 110 is a new provision requiring the IRS to
institute controls and management oversight to ensure prompt
processing of applications for tax-exempt status using
objective criteria.
Section 111 is a new provision requiring the IRS to conduct
staff training before each Federal election cycle including
instruction on what activities constitute political campaign
intervention.
Section 112 is a new provision that prohibits the use of
funds by the IRS to target United States citizens for
exercising any right guaranteed under the First Amendment to
the Constitution.

Administrative Provisions--Department of the Treasury

(INCLUDING TRANSFERS OF FUNDS)

The Committee includes 15 administrative provisions carried
over from prior appropriations acts. The administrative
provisions are as follows:
Section 113 authorizes certain basic services within the
Treasury Department in fiscal year 2014, including purchase of
uniforms; maintenance, repairs, and cleaning; purchase of
insurance for official motor vehicles operated in foreign
countries; and contracts with the Department of State for
health and medical services to employees and their dependents
serving in foreign countries.
Section 114 authorizes transfers, up to 2 percent, between
Departmental Offices, Departmentwide Systems and Capital
Investments Programs, Office of Inspector General, Special
Inspector General for the Troubled Asset Relief Program, Bureau
of the Fiscal Service, Alcohol and Tobacco Tax and Trade
Bureau, and Financial Crimes Enforcement Network appropriations
under certain circumstances.
Section 115 authorizes transfers, up to 2 percent, between
the Internal Revenue Service and the Treasury Inspector General
for Tax Administration under certain circumstances.
Section 116 requires that the purchase of law enforcement
vehicles be consistent with departmental vehicle management
principles.
Section 117 prohibits the Department of the Treasury and
the Bureau of Engraving and Printing from redesigning the $1
Federal Reserve Note.
Section 118 authorizes the Secretary of the Treasury to
transfer funds from Salaries and Expenses, Bureau of the Fiscal
Service, to the Debt Collection Fund as necessary to cover the
costs of debt collection. Such amounts shall be reimbursed to
the Salaries and Expenses account from debt collections
received in the Debt Collection Fund.
Section 119 extends the authority to conduct a personnel
management demonstration project.
Section 120 requires prior approval for the construction
and operation of a museum by the United States Mint.
Section 121 prohibits the merger of the United States Mint
and the Bureau of Engraving and Printing without prior approval
of the committees of jurisdiction.
Section 122 authorizes the Department's intelligence
activities.
Section 123 permits the Bureau of Engraving and Printing to
use $5,000 from the Industrial Revolving Fund for reception and
representation expenses.
Section 124 requires the Secretary of the Treasury to
develop an annual Capital Investment Plan.
Section 125 relates to refunds, drawbacks, and payments of
claims by certain Federal agencies.
Section 126 relates to the recovery of assets of the United
States.
Section 127 relates to bond financing under section 114A of
the Riegle Community Development and Regulatory Improvement Act
of 1994.

TITLE II

EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO THE
PRESIDENT

Compensation of the President

Appropriations, 2013\1\................................. $450,000
Budget estimate, 2014................................... 450,000
Committee recommendation................................ 450,000

\1\Exempt from sequester of funds pursuant to section 255(g)(1)(A) of
the Balanced Budget and Emergency Deficit Control Act, as amended.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

This account provides for the compensation of the
President, including an expense allowance as authorized by 3
U.S.C. 102.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $450,000 for
compensation of the President, including an expense allowance
of $50,000. This is the same as the fiscal year 2013 enacted
level and the same as the budget request. The expense account
is for official use as authorized by title 3, United States
Code, and is not considered taxable to the President. The bill
specifies that any unused amount shall revert to the Treasury
consistent with 31 U.S.C. 1552.

The White House

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $56,860,000
Budget estimate, 2014................................... 55,110,000
Committee recommendation................................ 55,110,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The ``Salaries and Expenses'' account of The White House
provides staff assistance and administrative services for the
direct support of the President. The White House also serves as
the President's representative before the media. In accordance
with 3 U.S.C. 105, The White House office also supports and
assists the activities of the spouse of the President.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $55,110,000
for The White House, Salaries and Expenses. The recommendation
is $1,750,000 below the fiscal year 2013 enacted level and is
equal to the budget request.
The Committee directs the Executive Office of the President
[EOP] to allocate sufficient resources to continue the robust
operation of the Office of National AIDS Policy [ONAP]. ONAP is
responsible for leading implementation of the National HIV/AIDS
Strategy and holding Federal agencies and local jurisdictions
accountable for implementing effective, scalable, and cost-
effective interventions for HIV prevention and care through
commissioning policy research, consulting with the community,
and helping jurisdictions modernize data systems and other
activities to align with the strategy. The Committee directs
the administration to continue to coordinate a Governmentwide
effort to achieve the goals of the National HIV/AIDS strategy.

Executive Residence at the White House

OPERATING EXPENSES

Appropriations, 2013\1\................................. $13,398,000
Budget estimate, 2014................................... 12,768,000
Committee recommendation................................ 12,768,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

These funds provide for the care, maintenance, repair,
alteration, refurnishing, improvement, air-conditioning,
heating, and lighting of the White House and the official and
ceremonial functions of the President.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $12,768,000
for the Executive Residence at the White House. The Committee
recommendation is $630,000 less than the fiscal year 2013
enacted level and equal to the budget request. The bill also
continues certain restrictions on reimbursable expenses for use
of the Executive Residence.

White House Repair and Restoration

Appropriations, 2013\1\................................. $749,000
Budget estimate, 2014................................... 750,000
Committee recommendation................................ 750,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

This account funds 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 the capital improvement projects at the
Executive Residence at the White House.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $750,000 for
White House Repair and Restoration, equal to the budget request
and $1,000 above the fiscal year 2013 enacted level.

Council of Economic Advisers

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $4,184,000
Budget estimate, 2014................................... 4,192,000
Committee recommendation................................ 4,192,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

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 the preparation of the
annual Economic Report of the President to Congress.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $4,192,000 for
salaries and expenses of the Council of Economic Advisers. This
amount is equal to the budget request and is $8,000 above the
fiscal year 2013 enacted level.

National Security Council and Homeland Security Council

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $13,022,000
Budget estimate, 2014................................... 12,621,000
Committee recommendation................................ 12,621,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The National Security Council advises the President in
integrating domestic, foreign, and military policies related to
national security, and the Homeland Security Council advises
the President in coordinating homeland security-related
policies across the Government.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $12,621,000
for the salaries and expenses of the National Security Council
and the Homeland Security Council. This amount is equal to the
budget request and is $401,000 below the fiscal year 2013
enacted level.

Office of Administration

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $112,726,000
Budget estimate, 2014................................... 113,135,000
Committee recommendation................................ 113,135,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Office of Administration provides administrative
services to the EOP. These services, defined by Executive Order
12028 of 1977, include financial, personnel, library and
records services, information management systems support, and
general office services.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $113,135,000
for the Office of Administration for fiscal year 2014. This
amount is an increase of $409,000 to the fiscal year 2013
enacted level and is equal to the budget request.
The Committee's recommendation includes $12,006,000 to
stabilize and modernize the information technology
infrastructure within the EOP. This funding supports the
continuation of a major initiative that will refresh the aging
information technology infrastructure, strengthen disaster
recovery and information security capabilities, and transition
the EOP's communications architecture to integrate mobile
devices while complying with security and records management
requirements. The Committee is pleased with progress to date on
the initiative and notes that metrics tracking results have
improved. The Committee supports continued investment in the
initiative to further modernize the IT infrastructure,
accommodate increasing data needs, and prepare for
cybersecurity threats.
The Committee directs the Office of Administration to place
a top priority on the implementation of comprehensive policies
and procedures for the preservation of all records, including
electronic records such as emails, videos, and social
networking communication, consistent with the requirements of
the Presidential Records Act, the Federal Records Act, and
other pertinent laws. The Office of Administration shall work
closely with the National Archives and Records Administration
[NARA] to ensure the full and complete maintenance and
formatting of electronic records that will eventually be turned
over to NARA. The Committee expects the Office of
Administration to keep the Committee fully apprised of funding
needs related to record preservation and retention.

Office of Management and Budget

salaries and expenses

Appropriations, 2013\1\................................. $89,277,000
Budget estimate, 2014................................... 93,397,000
Committee recommendation................................ 93,397,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Office of Management and Budget [OMB] assists the
President in the discharge of his budgetary, management, and
other executive responsibilities.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $93,397,000
for the Office of Management and Budget, which is $4,120,000
above the fiscal year 2013 enacted level and equal to the
budget request.
The recommendation will allow OMB to continue its work
developing and executing the President's Budget and overseeing
the performance of Federal agencies. In recent years, OMB's
non-politically appointed civil service staffing levels
declined while undertaking new responsibilities under major
legislation such as the Budget Control Act of 2011 and the
Government Performance and Results Modernization Act of 2010.
The Committee directs OMB to allocate increased funds toward
restoring non-politically appointed civil service staffing
levels, including for the Office of Federal Procurement Policy
and the Office of Information and Regulatory Affairs. The
Committee also directs OMB to utilize additional resources to
respond in a timely and complete manner to requests from
Congress, in particular requests related to program funding and
operations.
Alternative Contracting Models.--The Committee believes
that in some instances using transaction-based or no-cost
contracting models for delivering or procuring information
technology goods and services can save resources and increase
efficiencies. The Committee believes that OMB should provide
guidance to agencies on transaction-based and no-cost funding
models including when it is appropriate to consider using these
contract models, how to calculate potential savings from their
use, and standards and best practices for conducting the
procurement. The Committee directs OMB to report within 90 days
after enactment of this act on the use of transaction-based or
no-costing funding models for procuring information technology
goods and services. The report shall include information on (a)
transaction-based or no-cost funding model use by agencies; (b)
quantifiable costs savings and cost avoidance through their
use; (c) plans to continue or expand their future use; and (d)
the status of the issuance of guidance to agencies regarding
their use.
Federal Budgeting System.--The Committee notes that OMB
maintains the Federal Government's core budgeting system, which
is accessed by over 1,000 users Governmentwide to collect,
validate, analyze, prepare, and publish information related to
the Federal budget. The Committee appreciates OMB's submission
of the required report detailing current capabilities of and
deficiencies in the system. In recent years, OMB has added the
capability for the system to collect, analyze, and share
information on Governmentwide management and budgeting
activities. However, the last major upgrade to the system was
completed in 1993. The Committee notes that, using limited
resources, OMB has made improvements to the system that have
enhanced data quality and implemented efficiencies in the
budget process. The Committee directs OMB to continue making
enhancements to the system within current resources and to
notify the Committee of any cost-effective opportunities that
OMB may identify to further improve the system.
Chemical Security.--The Committee is concerned about the
effectiveness of the Nation's chemical security efforts. The
Committee directs OMB, as part of its mission to improve the
effectiveness and efficiency of Government programs and rules,
to conduct a comprehensive review of the regulatory regime
related to chemical security and to provide a report to the
Committee detailing the review within 180 days of enactment.
The review and report shall identify regulatory gaps that may
pose an unacceptable security risk, identify and evaluate the
effectiveness of strategies for closing such gaps, identify
existing redundancies between current regulatory regimes, and
identify and evaluate strategies for eliminating such
redundancies. The report shall also describe how Federal
entities with responsibilities for chemical security coordinate
with each other and how such coordination can be improved,
including specific milestones such as formal agreements. The
review and report should be done in conjunction with the
activity completed through the Chemical Government Coordinating
Council and the Chemical Sector Coordination Council.
Status of Disaster Spending.--The Committee directs OMB to
coordinate with the Recovery Accountability and Transparency
Board to publish information on its Web site regarding the
status of funding provided under Public Law 113-2, including
commitments, obligations, unobligated balances, and
expenditures. The Committee directs OMB to publish this
information on a publicly available Web site within 60 days of
the termination of the Hurricane Sandy Rebuilding Task Force,
and provide quarterly updates.
Children's Programs.--The Committee directs OMB to submit a
report within 90 days of enactment on the feasibility of
producing an analysis of current levels of spending on children
and children's programs, including a detailed breakdown by
agency, department, and initiative.
Consultations with the Committee Under GPRAMA.--The
Committee recalls that all Federal agencies have an obligation
under the Government Performance and Results Act [GPRA]
Modernization Act [GPRAMA] of 2010 (Public Law 111-352) to
publish a strategic plan not later than the first Monday in
February of any year following the year in which a presidential
term of office commences. These plans are thus due in February
2014. In the preparation of such plans, the GPRAMA also
requires that agencies consult periodically with Congress--
including soliciting both ``majority and minority views'' from
the appropriations committees--and that each agency incorporate
into its strategic guidance a description of how agency goals
and objectives ``incorporate views and suggestions obtained
through congressional consultations required [by the Act].''
Although the OMB required that agencies submit the first draft
of their strategic plans on or before June 3, 2013, few if any
such consultations have as yet taken place with this Committee.
The Committee, therefore, directs that agency representatives
promptly contact both the Majority and the Minority staffs of
this Committee in order to arrange GPRAMA consultations. The
Committee further requests that OMB facilitate such contacts
and discussions wherever necessary.

Office of National Drug Control Policy

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $24,451,000
Budget estimate, 2014................................... 22,647,000
Committee recommendation................................ 23,000,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Office of National Drug Control Policy [ONDCP],
established by the Anti-Drug Abuse Act of 1988, and
reauthorized by Public Law 109-469, is charged with developing
policies, objectives, and priorities for the National Drug
Control Program. In addition, ONDCP administers the High
Intensity Drug Trafficking Areas program, the Drug-Free
Communities Support Program, and several other related
initiatives.
This account provides funding for personnel compensation,
travel, and other basic operations of the Office, and for
general policy research to support the formulation of the
National Drug Control Strategy.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $23,000,000
for ONDCP's salaries and expenses. This amount is $1,451,000
less than fiscal year 2013 enacted level and $353,000 above the
budget request. Due to budget constraints, no funding is
provided for policy research.

FEDERAL DRUG CONTROL PROGRAMS

HIGH INTENSITY DRUG TRAFFICKING AREAS

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2013\1\................................. $238,045,000
Budget estimate, 2014................................... 193,400,000
Committee recommendation................................ 238,522,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The High Intensity Drug Trafficking Areas [HIDTA] program
was established by the Anti-Drug Abuse Act of 1988 (Public Law
100-690) and the Office of National Drug Control Policy's
reauthorization (Public Law 109-469) to provide assistance to
Federal, State, and local law enforcement entities operating in
those areas most adversely affected by drug trafficking.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $238,522,000
for the HIDTA program, $477,000 more than the fiscal year 2013
level and $45,122,000 above the budget request. The Committee
directs that funding shall be provided for the existing HIDTAs
at no less than the fiscal year 2013 level.
ONDCP is directed to consult with the HIDTAs in advance of
deciding programmatic spending allocations for discretionary
(supplemental) funding.
The Committee recommendation specifies that up to
$2,700,000 may be used for auditing services and associated
activities.
The Committee directs that HIDTA funds be transferred to
the appropriate drug control agencies expeditiously and
includes provisions in the bill to help prevent delay.
Transferred funds that are no longer necessary for their
original purpose may be transferred back to the HIDTA program.
The Committee recognizes the National HIDTA Assistance
Center for providing programmatic support to the HIDTA program
to include training, financial management/audit review, and
other essential services.
HIDTA funds should not be used to supplant existing support
for ongoing Federal, State, or local drug control operations
normally funded out of the operating budgets of each agency.
ONDCP is directed to withhold all HIDTA funds from a State
until such time as a State or locality has met its financial
obligation.

OTHER FEDERAL DRUG CONTROL PROGRAMS

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2013\1\................................. $105,339,000
Budget estimate, 2014................................... 95,376,000
Committee recommendation................................ 105,550,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Anti-Drug Abuse Act of 1988 (Public Law 100-690), and
the Office of National Drug Control Policy Reauthorization Act
(Public Law 109-469) established this account to be
administered by the Director of the Office of National Drug
Control Policy. The funds appropriated to the program support
high-priority drug control programs and may be transferred to
drug control agencies.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $105,550,000
for Other Federal Drug Control Programs, which is $211,000 more
than the fiscal year 2013 enacted level and $10,174,000 above
the budget request. Within this amount, the Committee provides
the following funding levels:

------------------------------------------------------------------------
Amount
------------------------------------------------------------------------
Drug-Free Communities Support Program................... $92,000,000
National Community Anti-Drug Coalition training..... 2,000,000
Drug court training and technical assistance............ 1,400,000
Anti-doping activities.................................. 9,000,000
World Anti-Doping Agency [WADA]......................... 1,900,000
Activities as authorized by Public Law 109-469, section 1,250,000
1105...................................................
------------------------------------------------------------------------

Drug-Free Communities Support Program.--ONDCP directs the
Drug-Free Communities Support Program [DFCSP] in partnership
with the Substance Abuse and Mental Health Services
Administration. DFCSP provides dollar-for-dollar matching
grants of up to $125,000 to local coalitions that mobilize
their communities to prevent youth alcohol, tobacco, illicit
drug, and inhalant abuse. Such grants support coalitions of
youth; parents; media; law enforcement; school officials;
faith-based organizations; fraternal organizations; State,
local, and tribal government agencies; healthcare
professionals; and other community representatives. The DFCSP
enables these coalitions to strengthen their coordination and
prevention efforts, encourage citizen participation in
substance abuse reduction efforts, and disseminate information
about effective programs. The Committee provides $92,000,000
for the continuation of the DFCSP.
The Committee includes a provision in the bill directing
ONDCP to provide $2,000,000 of DFCSP funds for training and
related purposes as authorized by section 4 of Public Law 107-
82, as amended by Public Law 109-469.

Unanticipated Needs

Appropriations, 2013\1\................................. $986,000
Budget estimate, 2014................................... 1,000,000
Committee recommendation................................ 1,000,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

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

COMMITTEE RECOMMENDATION

The Committee recommends $1,000,000, which is $14,000 more
than the amount appropriated in fiscal year 2013 and equal to
the budget request.

Data-Driven Innovation

(INCLUDING TRANSFERS OF FUNDS)

Appropriations, 2013....................................................
Budget estimate, 2014\1\................................ $14,000,000
Committee recommendation................................ 6,000,000

\1\Includes $8,000,000 for the information technology management
program. The Committee recommends $8,000,000 for that program, equal to
the fiscal year 2014 budget request, under the appropriation
``Integrated, Efficient and Effective Uses of Information Technology''.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The goal of the Data-Driven Innovation program is to expand
and improve the use of data and evidence to maximize government
effectiveness and efficiency. The Data-Driven Innovation
program builds on the Partnership Fund for Program Integrity
Innovation, which supported pilot projects designed to reduce
errors, promote efficiency, and improve the service of Federal
programs administered by States. The Data-Driven Innovation
program will also support targeted projects with the goal of
demonstrating results or testing methods that will be
replicable across Federal programs.

COMMITTEE RECOMMENDATION

The Committee recommends $6,000,000 for the Data-Driven
Innovation program, $8,000,000 below the fiscal year 2014
budget request. The Committee does not adopt the proposal to
fund the information technology management program under the
``Data-Driven Innovation'' appropriation and instead recommends
funds for that program under the appropriation ``Integrated,
Efficient and Effective Uses of Information Technology''.
Adjusting for that change, the recommendation is equal to the
budget request. No funding was provided for the Data-Driven
Innovation program in fiscal year 2013.
The Committee reminds the EOP that the Committee expects to
be regularly apprised of how efforts under the Data-Driven
Innovation program affect agency and program-specific projects
and missions on a case-by-case basis. The Committee expects EOP
to demonstrate how all changes comply with current law and to
notify the Committee and relevant authorizing committees as to
how any projects or reforms will affect program designs,
operations, and outcomes. The Committee directs that the Data-
Driven Innovation program shall not be a substitute for the
Committee's routine consideration of agency needs or evaluation
of program operations in accordance with the regular budget and
oversight process. Finally, the Committee directs the EOP to
notify the Committee immediately upon any change in an agency
spending plan pursuant to any efforts under the Data-Driven
Innovation program.

Integrated, Efficient and Effective Uses of Information Technology

(INCLUDING TRANSFERS OF FUNDS)

Appropriations, 2013\1\................................. $4,990,000
Budget estimate, 2014\2\................................................
Committee recommendation................................ 8,000,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
\2\The budget requested $8,000,000 for the information technology
management program under the appropriation ``Data-Driven Investment''.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The goal of the Integrated, Efficient and Effective Uses of
Information Technology [IEEUIT] program is to turn around
poorly performing information technology [IT] projects, improve
the efficiency and effectiveness of agency IT portfolios, and
centralize key IT services for Government agencies, saving
taxpayer dollars in the future that would otherwise be spent on
inefficient and duplicative IT services. The EOP began a major
IT reform effort in fiscal year 2009 by leveraging existing
resources provided for management improvements and dedicated
funding for the effort was first provided in fiscal year 2012.

COMMITTEE RECOMMENDATION

The Committee recommends $8,000,000 for the IEEUIT program.
The recommendation is equal to the amount requested by the
President for fiscal year 2014 for information technology
management efforts requested under the appropriation ``Data-
Driven Innovation'' and is an increase of $3,010,000 to the
fiscal year 2013 enacted level.
The Committee appreciates the administration's
comprehensive and innovative approach to improving IT
development processes and maximizing efficiencies across the
Federal IT portfolio. The Federal Government invests
approximately $80,000,000,000 a year in IT development for a
wide variety of capabilities, spanning, for example, from basic
desktop computing to a searchable database for investigating
terrorist financing activity.
Using resources provided for general management
improvements, in 2009 the administration began a major IT
reform effort focused on improving poorly performing IT
projects, consolidating costly data centers, and consolidating
common IT functions across Federal agencies. The administration
estimates that taxpayer savings realized to date under the
current IT reform initiative totals approximately $489,000,000.
The Committee reminds the EOP that the Committee expects to
be regularly apprised of how Governmentwide IT reform efforts
affect agency-specific projects and missions on a case-by-case
basis. The Committee directs that IT reform initiatives shall
not be a substitute for the Committee's routine consideration
of agency needs in accordance with the regular budget process.
Finally, the Committee directs the EOP to notify the Committee
immediately upon any change in an agency spending plan pursuant
to any efforts to modernize, streamline, or improve Federal IT
projects.

Special Assistance to the President

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $4,319,000
Budget estimate, 2014................................... 4,328,000
Committee recommendation................................ 4,328,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

This appropriation provides for staff and expenses to
enable the Vice President to provide assistance to the
President in connection with the performance of executive
duties and responsibilities. These funds also support the
official activities of the spouse of the Vice President. The
Vice President also has a staff funded by the Senate to assist
him in the performance of his legislative duties.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $4,328,000 for
special assistance to the President. This amount is the same as
both the budget request and is an increase of $9,000 to the
fiscal year 2013 enacted level.

Official Residence of the Vice President

OPERATING EXPENSES

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2013\1\................................. $306,000
Budget estimate, 2014................................... 307,000
Committee recommendation................................ 307,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

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

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $307,000 for
the official residence of the Vice President. This amount is
equal to the budget request and is $1,000 above the fiscal year
2013 enacted level.

Administrative Provisions--Executive Office of the President and Funds
Appropriated to the President

(INCLUDING TRANSFERS OF FUNDS)

Section 201 continues a provision that provides flexibility
in the use of funds in accounts under the EOP.
Section 202 requires a detailed financial plan by the
Director of ONDCP prior to the obligation of funds in fiscal
year 2014.
Section 203 allows for the transfer of up to 2 percent
among programs within ONDCP.
Section 204 establishes reprogramming requirements for
ONDCP.

TITLE III

THE JUDICIARY

PROGRAM DESCRIPTION

Established under Article III of the Constitution, the
judicial branch of Government is a separate but equal branch.
The Federal judiciary consists of the Supreme Court, United
States Courts of Appeals, District Courts, Bankruptcy Courts,
Court of International Trade, Court of Federal Claims, and
several other entities and programs. The organization of the
judiciary, the district and circuit boundaries, the places of
holding court, and the number of Federal judges are legislated
by the Congress and signed into law by the President.
The Committee's recommended funding levels support the
Federal judiciary's role of providing equal justice under the
law and include sufficient funds to support this critical
mission. The recommended funding level includes the salaries of
judges and support staff and the operation and security of our
Nation's courts.
The judicial branch is subject to the same funding
constraints facing the executive and legislative branches. It
is imperative that the Federal judiciary devote its resources
primarily to the retention of staff. Further, it is also
important that the judiciary contain controllable costs such as
travel, construction, and other expenses.

Supreme Court of the United States

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $74,684,000
Budget estimate, 2014................................... 74,838,000
Committee recommendation................................ 74,838,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The United States Supreme Court consists of nine justices
appointed under Article III of the Constitution of the United
States, one of whom is appointed as Chief Justice of the United
States. The Supreme Court acts as the final arbiter in the
Federal court system.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $74,838,000
for the Justices, their supporting personnel, and the costs of
operating the Supreme Court, excluding the care of the building
and grounds. The recommendation is $154,000 above the fiscal
year 2013 funding level and the same as the budget request.

CARE OF THE BUILDING AND GROUNDS

Appropriations, 2013\1\................................. $8,143,000
Budget estimate, 2014................................... 11,635,000
Committee recommendation................................ 11,158,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

Care of the Building and Grounds, for expenditure by the
Architect of the Capitol, provides for the structural and
mechanical care of the United States Supreme Court Building and
Grounds, including maintenance and operation of mechanical,
electrical, and electronic equipment.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $11,158,000
for personnel and other services related to the Supreme Court
building and grounds, which is supervised by the Architect of
the Capitol. The recommendation is $3,015,000 more than the
fiscal year 2013 funding level and $477,000 below the budget
request.
The Court shall continue to provide to the Committee
detailed single-spaced quarterly reports on the Supreme Court
modernization project, including descriptions; timeliness;
milestones; and funding committed, obligated, and expended, as
well as any unobligated balances of each major capital project.
In addition, the report should include the identification,
descriptions, and status of any contract claims.

United States Court of Appeals for the Federal Circuit

salaries and expenses

Appropriations, 2013\1\................................. $32,462,000
Budget estimate, 2014................................... 33,355,000
Committee recommendation................................ 33,355,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The United States Court of Appeals for the Federal Circuit
was established on October 1, 1982 under Article III of the
Constitution. The court was formed by the merger of the United
States Court of Customs and Patent Appeals and the appellate
division of the United States Court of Claims. The court
consists of 12 judges who are appointed by the President, with
the advice and consent of the Senate. Judges are appointed to
the court under Article III of the Constitution of the United
States.
The Federal Circuit has nationwide jurisdiction in a
variety of subjects, including international trade, Government
contracts, patents, certain claims for money from the United
States Government, Federal personnel, and veterans' benefits.
Appeals to the court come from all Federal district courts, the
United States Court of Federal Claims, the United States Court
of International Trade, and the United States Court of Veterans
Appeals. The court also takes appeals of certain administrative
agencies' decisions, including the Merit Systems Protection
Board, the Board of Contract Appeals, the Board of Patent
Appeals and Interferences, and the Trademark Trial and Appeals
Board. Decisions of the United States International Trade
Commission, the Office of Compliance of the United States
Congress, and the Government Accountability Office Personnel
Appeals Board are also reviewable by the court.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $33,355,000.
The recommendation is $893,000 above the fiscal year 2013
funding level and the same as the budget request.

United States Court of International Trade

salaries and expenses

Appropriations, 2013\1\................................. $21,405,000
Budget estimate, 2014................................... 21,973,000
Committee recommendation................................ 21,378,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The United States Court of International Trade, located in
New York City, consists of nine Article III judges. The court
has exclusive nationwide jurisdiction over civil actions
brought against the United States, its agencies and officers,
and certain civil actions brought by the United States, arising
out of import transactions and the administration and
enforcement of the Federal customs and international trade
laws.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $21,378,000.
The recommendation is $27,000 below the fiscal year 2013
funding level and $595,000 below the budget request.

Courts of Appeals, District Courts, and Other Judicial Services

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $5,015,955,000
Budget estimate, 2014................................... 5,170,239,000
Committee recommendation................................ 5,089,169,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

Salaries and Expenses is one of four accounts that provide
total funding for the Courts of Appeals, District Courts, and
Other Judicial Services. In addition to funding the salaries of
judges and support staff, this account also funds the operating
costs of appellate, district, and bankruptcy courts, the Court
of Federal Claims, and probation and pretrial services offices.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $5,089,169,000
for salaries and expenses. The recommendation is $73,214,000
above the fiscal year 2013 funding level and $81,070,000 below
the budget request.
Perimeter Security Pilot Project.--The Committee is aware
that the Judiciary's review of the new U.S. Marshals Service
Court Security Officer [CSO] staffing standards has been
completed. The new standards call for a modest increase in
staffing, but cannot be fully implemented at this time due to
budget constraints. The Committee continues to support the
efficacy of the Judiciary's Perimeter Security Pilot Project,
but understands that due to fiscal constraints, the Judiciary
is unable to expand the program at this time.

VACCINE INJURY COMPENSATION TRUST FUND

Appropriations, 2013\1\................................. $4,990,000
Budget estimate, 2014................................... 5,327,000
Committee recommendation................................ 5,327,000

PROGRAM DESCRIPTION

Enacted by the National Childhood Vaccine Injury Act of
1986 (Public Law 99-660), the Vaccine Injury Compensation
Program is a Federal no-fault program designed to resolve a
perceived crisis in vaccine tort liability claims that
threatened the continued availability of childhood vaccines
nationwide. The statute's primary intention is the creation of
a more efficient adjudicatory mechanism that ensures a no-fault
compensation result for those allegedly injured or killed by
certain covered vaccines. This program protects the
availability of vaccines in the United States by diverting a
substantial number of claims from the tort arena.
Not only did this act create a special fund to pay
judgments awarded under the act, but it also created the Office
of Special Masters within the United States Court of Federal
Claims to hear vaccine injury cases. The act stipulates that up
to eight special masters may be appointed for this purpose. The
special masters expenditures are reimbursed to the judiciary
for vaccine injury cases from a special fund set up under the
Vaccine Act.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $5,327,000.
The recommendation is $337,000 above fiscal year 2013 funding
level and the same as the budget request.

DEFENDER SERVICES

Appropriations, 2013\1\................................. $1,037,920,000
Budget estimate, 2014................................... 1,068,623,000
Committee recommendation................................ 1,098,446,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

The Defender Services program ensures the right to counsel
guaranteed by the Sixth Amendment, the Criminal Justice Act (18
U.S.C. 3006A(e)) and other congressional mandates for those who
cannot afford to retain counsel and other necessary defense
services. The Criminal Justice Act provides that courts appoint
counsel from Federal public and community defender
organizations or from a panel of private attorneys established
by the court. The Defender Services program helps to maintain
public confidence in the Nation's commitment to equal justice
under the law and ensures the successful operation of the
constitutionally based adversary system of justice by which
Federal criminal laws and federally guaranteed rights are
enforced.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of
$1,098,446,000. The recommendation is $60,526,000 above the
fiscal year 2013 funding level and $29,823,000 above the budget
request. The Defender Services program is urged to reexamine
the program for cost containment opportunities as the rest of
the Judiciary has done and continues to do. The recommendation
does not provide an increase in the hourly panel attorney pay
rate.

FEES OF JURORS AND COMMISSIONERS

Appropriations, 2013\1\................................. $51,804,000
Budget estimate, 2014................................... 54,414,000
Committee recommendation................................ 54,891,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

This account provides for the statutory fees and allowances
of grand and petit jurors and for the compensation of jury and
land commissioners. Budgetary requirements depend primarily
upon the volume and the length of jury trials demanded by
parties to both civil and criminal actions and the number of
grand juries being convened by the courts at the request of the
United States Attorneys.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $54,891,000.
The recommendation is $3,087,000 above the fiscal year 2013
funding level and $477,000 above the budget request.

COURT SECURITY

(INCLUDING TRANSFERS OF FUNDS)

Appropriations, 2013\1\................................. $499,000,000
Budget estimate, 2014................................... 524,338,000
Committee recommendation................................ 520,278,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

The Court Security appropriation was established in 1983
and funds the necessary expenses incident to the provision of
protective guard services, and the procurement, installation,
and maintenance of security systems and equipment for United
States courthouses and other facilities housing Federal court
operations, including building access control, inspection of
mail and packages, directed security patrols, perimeter
security provided by the Federal Protective Service, and other
similar activities as authorized by section 1010 of the
Judicial Improvement and Access to Justice Act (Public Law 100-
702).

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $520,278,000.
The recommendation is $21,278,000 above the fiscal year 2013
funding level and $4,060,000 below the budget request.

Administrative Office of the United States Courts

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $82,743,000
Budget estimate, 2014................................... 85,354,000
Committee recommendation................................ 83,601,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

The Administrative Office [AO] of the United States Courts
was created in 1939 by an act of Congress. It serves the
Federal judiciary in carrying out its constitutional mission to
provide equal justice under the law. Beyond providing numerous
services to the Federal courts, the AO provides support and
staff counsel to the Judicial Conference of the United States
and its committees, and implements Judicial Conference policies
as well as applicable Federal statutes and regulations. The AO
is the focal point for communication and coordination within
the Federal judiciary and with Congress, the executive branch,
and the public on behalf of the judiciary.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $83,601,000.
This recommendation is $858,000 above the fiscal year 2013
funding level and $1,753,000 below the budget request.

Federal Judicial Center

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $26,946,000
Budget estimate, 2014................................... 27,664,000
Committee recommendation................................ 26,400,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

The Federal Judicial Center, located in Washington, DC,
improves the management of Federal judicial dockets and court
administration through education for judges and staff, and
research, evaluation, and planning assistance for the courts
and the Judicial Conference. The Center's responsibilities
include educating judges and other judicial branch personnel
about legal developments and efficient litigation management
and court administration. Additionally, the Center also
analyzes the efficacy of case and court management procedures
and ensures the Federal judiciary is aware of the methods of
best practice.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $26,400,000.
The recommendation is $546,000 below the fiscal year 2013
funding level and $1,264,000 below the budget request.

Judicial Retirement Funds

PAYMENT TO JUDICIARY TRUST FUNDS

Appropriations, 2013\1\................................. $125,464,000
Budget estimate, 2014................................... 126,931,000
Committee recommendation................................ 126,931,000

PROGRAM DESCRIPTION

The funds in this account cover the estimated future
benefit payments to be made to retired bankruptcy judges and
magistrate judges, claims court judges, and spouses and
dependent children of deceased judicial officers.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $126,931,000
for payments to the Judicial Officers' Retirement Fund and the
Claims Court Judges Retirement Fund. The recommendation is
$1,467,000 above the fiscal year 2013 funding level and
consistent with the budget request.

United States Sentencing Commission

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $16,467,000
Budget estimate, 2014................................... 17,016,000
Committee recommendation................................ 16,637,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

The United States Sentencing Commission establishes,
reviews, and revises sentencing guidelines, policies, and
practices for the Federal criminal justice system. The
Commission is also required to monitor the operation of the
guidelines and to identify and report necessary changes to the
Congress.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $16,637,000.
The recommendation is $170,000 above the fiscal year 2013
funding level and $379,000 below the budget request.

Administrative Provisions--The Judiciary

(INCLUDING TRANSFERS OF FUNDS)

The Committee recommends the following administrative
provisions for the judiciary:
Section 301 allows the judiciary to expend funds for the
employment of experts and consultative services.
Section 302 allows the judiciary, subject to the
Committee's reprogramming procedures, to transfer up to 5
percent between appropriations, but limits to 10 percent the
amount that may be transferred into any one appropriation.
Section 303 limits official reception and representation
expenses incurred by the Judicial Conference of the United
States to no more than $11,000.
Section 304 grants the judicial branch the same tenant
alteration authorities as the executive branch.
Section 305 provides continued authority for a court
security pilot program.
Section 306 provides certain contracting authorities to the
three remaining judicial branch entities without them.
Section 307 extends for 1 year the authorization of a
temporary judgeship in Kansas, Hawaii, Missouri, Alabama,
Arizona, Florida, New Mexico, Texas, and California.
Section 308 authorizes additional district judgeships in
Arizona, California, Delaware, Minnesota, New Mexico, and Texas
and converts a temporary judgeship to permanent status in
Arizona, in California, and in New Mexico.
Section 309 amends the Jury Selection and Service Act to
add additional categories under which a juror may not be
excluded.

TITLE IV

DISTRICT OF COLUMBIA

Federal Payments

FEDERAL FUNDS

A total of $674,802,000 in Federal funds are estimated to
be available to the District of Columbia government, the
District of Columbia Courts, the District of Columbia Court
Services and Offender Supervision Agency, and other D.C.
entities. This is $713,000 above the fiscal year 2013 enacted
level and $1,530,000 below the budget request.

FEDERAL PAYMENT FOR RESIDENT TUITION SUPPORT

Appropriations, 2013\1\................................. $29,940,000
Budget estimate, 2014................................... 35,000,000
Committee recommendation................................ 35,000,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

The Resident Tuition Support program was created by the
District of Columbia College Access Act of 1999 (Public Law
106-98), expanded through the District of Columbia College
Access Improvement Act of 2002 (Public Law 107-157), and
amended and reauthorized through Public Law 110-97. This
program provides eligible college-bound District residents the
opportunity to expand their higher education choices.
Under the program, financial assistance is available to
qualified District residents who attend public colleges outside
of the District of Columbia, private postsecondary institutions
in the District of Columbia, Maryland, or Virginia, or any
historically black college or university. The private-school
tuition grants are restricted to nonprofit institutions.
Students who attend public schools receive assistance equal to
the difference between the tuition paid by residents of the
State in which the institution is located and the tuition
charged to nonresident students, with an annual limit of
$10,000 and a lifetime limit of $50,000. Private-school
students receive a $2,500 maximum annual grant, with a lifetime
limit of $12,500.
Since its inception over a decade ago, the program has
disbursed more than $317,500,000 as of April 2013 for the
benefit of more than 19,664 District of Columbia residents,
with grants averaging $6,900 per year. For the most recently
completed academic year (2011-2012), 5,253 students received
$33,450,000 in grants. Sixty percent of the program grantees
are the first in their families to attend college. Program
participants have enrolled in more than 600 colleges and
universities in 49 States. This has brought an infusion of the
District's students as well as Federal dollars to State
university systems nationwide.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment of $35,000,000
for the resident tuition support program, $5,060,000 above the
fiscal year 2013 enacted level and the same as the budget
request.
The Committee urges the Office of the State Superintendent
of Education to continue its efforts to improve the student
retention, persistence, and college graduation rate of program
participants. The Committee believes that innovative
initiatives designed to promote retention of District students
in colleges and universities should be expanded where possible.
The Committee acknowledges the challenges facing the students
who do enroll in college to reach graduation. Data reveal that
among program grantees, many students interrupt their
enrollment or drop out entirely on their path to a degree, and
over 48 percent graduate from college in 6 years.
The Committee is encouraged by the initiatives that the
State Superintendent has launched or is contemplating that are
designed to enhance college retention and success. These
programs include financial aid forums, guidance counselor
certification, boot camps and summer institute programs, high
achievers program, a retention mentor program, and a smart
college choice campaign to guide students in selection of
colleges and universities particularly suited to their academic
and financial needs.
The Committee is pleased that the Office of the State
Superintendent of Education has developed a number of
administrative changes to help contain overall costs so that
the funds provided are invested in an effective and efficient
manner. Further, the Committee is encouraged by new, shortened
application period and award notification windows and an
invoicing deadline for participating colleges and universities
to improve the processing of payments.
The Committee directs that the State Superintendent shall
include, as a component of the fiscal year 2015 budget
justification submission, an annual update of the District's
efforts, including research findings, to enhance the retention,
persistence, and graduation rates of program participants,
including early awareness and readiness initiatives to promote
academic college preparation, guidance, and other support
mechanisms and partnerships. The budget justification should
also describe the status and effectiveness of cost containment
measures instituted.

FEDERAL PAYMENT FOR EMERGENCY PLANNING AND SECURITY COSTS IN THE
DISTRICT OF COLUMBIA

Appropriations, 2013\1\................................. $24,651,000
Budget estimate, 2014................................... 14,900,000
Committee recommendation................................ 14,900,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

Due to the fact that the District of Columbia is the seat
of the Federal Government and headquarters of many
international organizations, District police, fire, and
emergency personnel have had to provide security for a number
of events. As the need for the District of Columbia to provide
security increases, overtime costs for personnel escalate and
divert local police from neighborhood patrols. The complexity
and costs associated with these events, including unique needs
for crowd control, surveillance, and protection against unusual
threats, are high and growing, and demand effective and
efficient coordinated operations.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment of $14,900,000,
for the District of Columbia for the costs of providing public
safety at events related to the presence of the national
capital in the District of Columbia, for the costs of providing
support requested by the United States Secret Service Division
in carrying out their protective duties under the direction of
the Secretary of Homeland Security, and for the costs of
providing support to respond to immediate and specific
terrorist threats or attacks in the District of Columbia or
surrounding jurisdictions. This is $9,751,000 below the fiscal
year 2013 enacted level and the same as the budget request.
The fiscal year 2013 enacted level included $9,800,000 in
enhanced funding for planning activities leading up to and
associated with the 57th Presidential Inauguration.
In addition, the District may use any funds remaining from
prior year appropriations under this heading. The District may
use the payment to cover the costs of Executive transportation
support including motorcades and helicopter landings. The
Committee directs the District of Columbia to submit a detailed
budget justification for emergency planning and security with
its funding request for fiscal year 2015. The Committee further
directs the District of Columbia to submit, within 60 days of
the end of fiscal year 2014, a report to the House and the
Senate Committees on Appropriations detailing the purposes and
amounts expended using the funds, particularly noting any
deviation from the original proposed spending.

FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA COURTS

Appropriations, 2013\1\................................. $232,375,000
Budget estimate, 2014................................... 222,667,000
Committee recommendation................................ 232,137,316

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

Under the National Capital Revitalization and Self-
Government Improvement Act of 1997 (Public Law 105-33, title
XI), the Federal Government is required to finance the District
of Columbia Courts. This Federal payment to the District of
Columbia Courts funds the operations of the District of
Columbia Court of Appeals, Superior Court, the Court System,
and the Capital Improvement Program. Capital improvement
projects include implementation of the updated Facilities
Master Plan, with particular focus on expansion of the Moultrie
Courthouse to address space shortfalls. By law, the annual
budget includes estimates of the expenditures for the
operations of the Courts prepared by the Joint Committee on
Judicial Administration as well as the President's
recommendation for funding the Courts' operations.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment to the District
of Columbia Courts of $232,137,316, which is $237,684 below the
fiscal year 2013 enacted level and $9,470,316 above the
President's budget request. This amount includes $13,374,726
for the Court of Appeals, $114,921,340 for the Superior Court,
$69,213,250 for the Court System, and $34,628,000 for capital
improvements to courthouse facilities.
The Committee recommendation for the District of Columbia
Superior Court is $2,355,000 above the President's recommended
funding of $112,566,340 and will permit the Court to enhance
public safety and reduce recidivism among juvenile males by
creating a drop-in center for supervision and services.
The Committee recommendation for the District of Columbia
Court System is $226,000 above the President's recommended
funding of $68,987,250 and will permit the Court System to
support strategic transformation of human resources management
to an integral partnership within the administration of the
courts.
The Committee recommendation for capital improvements
provides $6,889,000 above the President's recommendation of
$27,739,000 to support the Facilities Master Plan, particularly
the Moultrie Courthouse Addition (C Street Expansion). The
Committee acknowledges that steady progress on the Facilities
Master Plan should provide a cost-effective path to address
deficiencies in the Courts' space needs and promote improved
public access to services.
The Committee supports the Courts' request to maintain the
current level of funds available for its official reception and
representation purposes. These resources enable the Courts to
meet various community outreach responsibilities including
supporting legal education in the District of Columbia as the
home of six law schools; work with the D.C. Bar committees; and
host the significant number of international guests who visit
the D.C. Courts to learn about legal systems in democratic
societies. The Committee notes that the current amount of the
Courts' reception and representation funds is commensurate with
small Federal agencies and considerably less than the
comparative representation funds available to other District
officials.

FEDERAL PAYMENT FOR DEFENDER SERVICES IN DISTRICT OF COLUMBIA COURTS

Appropriations, 2013\1\................................. $54,890,000
Budget estimate, 2014................................... 49,890,000
Committee recommendation................................ 49,890,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

The District of Columbia Courts appoint and compensate
attorneys to represent persons who are financially unable to
obtain such representation. The Defender Services programs
provide counsel for indigent persons who are charged with
criminal offenses, for family proceedings involving child
abuse, neglect, and termination of parental rights, and for
guardianship proceedings for protection of mentally
incapacitated individuals and minors whose parents are
deceased.
In addition to legal representation, these programs provide
indigent persons with services such as transcripts of court
proceedings, expert witness testimony, foreign and sign
language interpretation, and investigations and genetic
testing.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment of $49,890,000
for Defender Services in the District of Columbia Courts. This
is $5,000,000 below the fiscal year 2013 enacted level and the
same as the budget request.
The reduction in the budgetary needs for this program is
attributable to the laudable savings realized from use of a new
accounting methodology and enhanced technology that provide
more precise tools to account for and project costs. The
Committee commends the vast improvements in business processes
and management that have reduced the timespan from initial
appointment of counsel to payment for services to 3 years, down
from 7 years.

FEDERAL PAYMENT TO THE COURT SERVICES AND OFFENDER SUPERVISION AGENCY
FOR THE DISTRICT OF COLUMBIA

Appropriations, 2013\1\................................. $212,557,000
Budget estimate, 2014................................... 227,968,000
Committee recommendation................................ 227,968,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Court Services and Offender Supervision Agency [CSOSA]
for the District of Columbia is an independent Federal agency
created by the National Capital Revitalization and Self-
Government Improvement Act of 1997 (Public Law 105-33, title
XI). CSOSA acquired the operational responsibilities for the
former District agencies in charge of probation and parole, and
houses the Pretrial Services Agency within its framework. The
mission of CSOSA is to increase public safety, prevent crime,
reduce recidivism, and support the fair administration of
justice in close collaboration with the community. The CSOSA
appropriation supports the Community Supervision Program which
monitors or supervises approximately 15,500 offenders on a
daily basis and 24,000 different offenders over the course of a
year and the Pretrial Services Agency [PSA] which supervised
released defendants in 24,663 cases during fiscal year 2012.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment of $227,968,000,
which is $15,411,000 above the fiscal year 2013 enacted level
and the same as the budget request. Of this amount, $59,519,000
is designated for the Pretrial Services Agency and $168,449,000
is designated for the Community Supervision Program.
The Committee is supportive of CSOSA's efforts to
successfully reintegrate ex-offenders to their communities and
notes the centrality of job training and employment readiness
in reducing recidivism. CSOSA is encouraged to work with
organizations that have demonstrated effectiveness and best
practices to improve the outcomes for men and women returning
home from prison and under court supervision.
CSOSA has enjoyed a long history of working with
grassroots, nonprofit providers of transitional housing,
including faith-based organizations, that offer counseling,
mentoring, and life skills training to men and women returning
home from prison. The Committee notes that this is a model
program for the Nation.
The Committee is encouraged that the Community Supervision
Program has continued to maintain officer-to-offender caseload
levels closer to nationally recommended levels, a significant
improvement over the 100:1 average ratios prior to the Agency's
inception.
The Committee appreciates the efforts of CSOSA management
to identify savings and other efficiencies through targeted
cutbacks, streamlining of programs, and strategic
reorganization as the agency fulfills its critical mission and
addresses high priority public safety needs amid Governmentwide
fiscal constraints.
The Committee commends the collaborative efforts of the
Community Supervision Program to continue to partner with the
District of Columbia Government, the United States Parole
Commission, and the Bureau of Prisons [BOP] to implement the
Secure Residential Treatment Program in 2009. This program aims
to provide a secure, residential substance abuse treatment
intervention/sanction alternative to high-risk, chronic
substance abusing and criminally involved male D.C. code
offenders in lieu of revoking them to BOP custody. The
Committee understands that in July 2012, the District of
Columbia Government and BOP assumed financial responsibility
for operational expenses. The Committee encourages CSOSA to
keep the Committee regularly informed of how well this program
is meeting its goals of increasing offenders' chances of
successful community reintegration and breaking the cycle of
recidivism.

FEDERAL PAYMENT TO THE PUBLIC DEFENDER SERVICE FOR THE DISTRICT OF
COLUMBIA

Appropriations, 2013\1\................................. $37,167,000
Budget estimate, 2014................................... 40,607,000
Committee recommendation................................ 40,607,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Public Defender Service [PDS] for the District of
Columbia, an independent organization established by a District
of Columbia statute (16 D.C. Code 2-1601-1608), has a distinct
mission to provide and promote quality legal representation
services within the District of Columbia justice system. PDS
provides legal representation to indigent adults and children
facing loss of liberty and provides support in the form of
training, consultation, and legal reference services to members
of the local bar appointed as counsel in criminal, juvenile,
and mental health cases involving indigent individuals.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment to the Public
Defender Service for the District of Columbia of $40,607,000,
which is $3,440,000 above the fiscal year 2013 enacted level
and the same as the budget request.

FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA WATER AND SEWER AUTHORITY

Appropriations, 2013\1\................................. $14,970,000
Budget estimate, 2014................................... 14,500,000
Committee recommendation................................ 14,500,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

Approximately one-third of the District is served by a
combined sewer system, constructed by the Federal Government in
1890, in which both sanitary waste and storm water flow through
the same pipes. When the collection system or the Blue Plains
treatment plant reach capacity, typically during periods of
heavy rainfall, the system is designed to overflow the excess
water. This mixture of sewage and storm water runoff is
discharged to the Anacostia and Potomac Rivers, Rock Creek, and
tributary waters between 60 and 75 times each year. Under a
judicial consent decree entered on March 23, 2005, the Water
and Sewer Authority is undertaking a 20-year, $2,600,000,000
sewer construction program to reduce combined sewer overflows
[CSO]. The Clean Rivers Project includes deep underground
storage tunnels, side tunnels to reduce flooding, pump station
rehabilitation, and the elimination of over a dozen CSO
outfalls along the Potomac and Anacostia Rivers and Rock Creek.
When completed in 2025, this project is expected to vastly
improve water quality and significantly reduce debris in our
Nation's capital waterways as well as improve the health of the
Chesapeake Bay.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment of $14,500,000
to be matched by at least $14,500,000 provided by the Water and
Sewer Authority, to continue implementation of the Long-Term
Combined Sewer Overflow Control Plan. This is $470,000 below
the fiscal year 2013 enacted level and the same as the budget
request. The Committee understands that the Clean Rivers
project is currently exploring a more expansive investment in
green infrastructure with low impact development technologies.
The Committee is encouraged by the potential benefits not only
for stormwater management, but for job creation, improved air
quality, greener public and private spaces, and added wildlife
habitat.

FEDERAL PAYMENT TO THE CRIMINAL JUSTICE COORDINATING COUNCIL

Appropriations, 2013\1\................................. $1,796,000
Budget estimate, 2014................................... 1,800,000
Committee recommendation................................ 1,800,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Criminal Justice Coordinating Council for the District
of Columbia [CJCC] is the primary forum in which District of
Columbia criminal justice agencies can identify and address
interagency coordination on issues such as illegal drugs,
juvenile justice, halfway houses, information technology, and
identification of arrestees to improve public safety in the
District of Columbia for its residents, visitors, victims, and
offenders.
The CJCC was originally established pursuant to a
memorandum of agreement in May 1998 and functions as an
independent working group to foster cooperation among the more
than a dozen Federal and local governmental agencies which have
law enforcement responsibility in our Nation's capital. Under a
local enactment in August 2001, the CJCC was established as an
independent agency within the District of Columbia.
The CJCC maintains the Justice Integrated Information
System [JUSTIS] using technology that allows for the seamless
sharing of information at critical decision points throughout
the justice system. JUSTIS connects Federal agencies, the
District government, and court information systems, so that
criminal activity can be easily monitored across an array of
participating agencies. Agencies currently using JUSTIS include
the Metropolitan Police Department, the D.C. Department of
Corrections, D.C. Superior Court, the U.S. Park Police, the
U.S. Capitol Police, the U.S. Bureau of Alcohol, Tobacco,
Firearms, and Explosives, the Pretrial Services Agency, CSOSA,
the U.S. Attorney's Office for the District of Columbia, and
the D.C. and Maryland Public Defenders Service. No other system
provides this range of access to Federal and local information
in the District.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment of $1,800,000 to
CJCC. This is $4,000 above the fiscal year 2013 enacted level
and the same as the budget request.
Among the activities that the recommended Federal payment
will support during fiscal year 2014 is continued enhancements
to expand the reach of the JUSTIS information system's
capabilities to promote sharing of public safety information
and more effective mobilization in response to matters
transcending a single agency. The Committee expects that the
resources will also support the GunStat initiative; improved
information sharing on mental health and substance abuse to
redirect persons to necessary support services; records
management, court-based release, court processing and papering
reforms; clear business processes to help reduce the number of
outstanding warrants; and a comprehensive approach to truancy
prevention.
The Committee directs the CJCC to submit annual performance
measures in an annual report to accompany the fiscal year 2015
budget justification, which should also describe progress made
on specific CJCC initiatives.

FEDERAL PAYMENT FOR JUDICIAL COMMISSIONS

Appropriations, 2013\1\................................. $499,000
Budget estimate, 2014................................... 500,000
Committee recommendation................................ 500,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

The Commission on Judicial Disabilities and Tenure provides
support to the District of Columbia Court of Appeals and
Superior Court through reviewing and investigating allegations
of judicial misconduct. The Judicial Nomination Commission
recommends candidates to the President of the United States for
nomination to judicial vacancies in these courts. In accordance
with the National Capital Revitalization and Self-Government
Improvement Act of 1997 (Public Law 105-33), the Federal
Government is responsible for financing of the District of
Columbia Courts, including the operations of the District of
Columbia Court of Appeals, Superior Court, the Court System,
and the Capital Improvement Program. Although independent of
the Courts by design, these two Commissions provide important
functions within the judicial branch of local government in the
District of Columbia.

COMMITTEE RECOMMENDATION

The Committee recommends $500,000 as a Federal payment for
the judicial commissions, of which $205,000 is designated for
the Judicial Nomination Commission and $295,000 is designated
for the Commission on Judicial Disabilities and Tenure. This
amount is $1,000 above the fiscal year 2013 enacted level and
the same as the budget request. Funds shall remain available
until September 30, 2015. The Committee continues to support
the rationale of recognizing these commissions as local
judicial branch agencies for which Federal support for the
operations is necessary.

FEDERAL PAYMENT FOR SCHOOL IMPROVEMENT

Appropriations, 2013\1\................................. $59,880,000
Budget estimate, 2014................................... 52,200,000
Committee recommendation................................ 42,200,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Committee continues its commitment to improving
educational opportunities for the children of the District of
Columbia. For nearly a decade, Congress has supported a three-
sector funding arrangement to provide Federal resources for the
District of Columbia Public Schools, public charter schools,
and for a scholarship program for low-income students to attend
private schools.
For the last 6 years the District has charted a new
management course for the District's challenged public school
system in response to Public Law 110-33, which vested authority
over the school superintendent, operating budget, and capital
program in the Mayor beginning in 2007. Given that District of
Columbia public school students have chronically performed well
below national averages in reading and mathematics, the
Committee commends the progress that has been made to
streamline bureaucracy, recruit new principals, expand course
offerings available to students, expand pre-K classrooms,
complete major renovations, and raise math and reading test
scores. For the ensuing 2013-2014 school year, enrollment of
46,060 students is projected, representing a decline of over
1,000 students below the 2012-2013 enrollment.
Public charter schools in the District of Columbia have
grown considerably since the first two opened in 1996 and
served 160 students. In school year 2012-2013, 56 tuition-free,
autonomous public charter schools on 100 campuses operated in
the District, enrolling 33,699 students in every ward of the
city, and serving 43 percent of all District of Columbia public
school students. Enrollment in charter schools is projected to
increase by over 3,700 in school year 2013-2014, a growth rate
of 11 percent. The District of Columbia School Reform Act of
1995 (Public Law 104-134), one of the strongest charter school
laws in the Nation, guarantees charter school autonomy from the
District of Columbia Public Schools and from the District
government and mandates uniform per student funding of all
public school students, both traditional and charter.
Congress established the private school scholarship program
as a 5-year pilot in 2003. In April 2011, the Opportunity
Scholarship Program was reauthorized for 5 years through
enactment of Public Law 112-10, division C. The intent of this
program is to help increase the District of Columbia's capacity
to provide parents, particularly low-income parents whose
children attend low-performing schools, more options for
quality education. In school year 2012-2013, 1,584 students
participated in the program and were enrolled at 52
participating nonpublic schools.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment of $42,200,000,
which is $17,680,000 below the fiscal year 2013 enacted level
and $10,000,000 below the budget request. These funds are
allocated as follows: $20,000,000 for the District of Columbia
Public Schools to improve public school education, $20,000,000
to expand quality charter schools and $2,200,000 for the
Secretary of Education for private school scholarships under
Public Law 112-10, division C.
Private School Scholarships.--The Committee supports
continuing the Opportunity Scholarship program, and notes that
Congress expressed its clear intent to advance this program
through continuous funding and a 5 year reauthorization in
2011. The Committee is aware that the available unexpended
balances are due, in part, to factors beyond the program's
control, and expects that any funding appropriated for the
Opportunity Scholarship Program, including currently available
balances, will be used to continue the program and enroll new
students in order to facilitate a credible and scientifically
valid evaluation of the program.
The Committee's recommendation takes into consideration
expected resource needs for the scholarship program based on
historic attrition and enrollment rates and anticipated
increases in program participation by new students, measured
against funds on hand. Based on program data, for school year
2013-2014, the projected costs are $16,624,847, which will
support 1,752 students, including 1,304 renewals and 448 new
awards calculated at the maximum inflation-adjusted scholarship
rate. This enrollment level would be 168 additional students,
or an 11-percent increase, above the school year 2012-2013
participation. For school year 2014-2015, the projected costs
are $16,911,709, which will support 1,741 students, calculated
at the maximum inflation-adjusted scholarship rate. The
Committee believes it is essential to evaluate these projected
resource needs in light of the fact that there is at least
$33,439,651 in unexpended prior year carryover funding
currently available to the program. The Committee's recommended
funding of $2,200,000 will support the ongoing administration
and evaluation component of the program without depleting funds
available for scholarship awards.
The Committee directs the Secretary of Education to
develop, as necessary, any appropriate cost containment
protocols, consistent with Public Law 112-10, division C, to
address any potential enrollment oversubscription issues posed
by retention of students newly entering the program and
extension to new enrollments in future school years to ensure
that expansion of the program is undertaken in conformity with
the authorized funding level.
The Committee expects that any school enrolling a
scholarship participant under the Opportunity Scholarship
Program should satisfy certain minimum reasonable expectations
as an educational setting in full compliance with the statutory
requirements of section 3007(a)(4) of Public Law 112-10,
division C relating to valid certificates of occupancy, school
accreditation, site inspections, financial stability, fiscal
management controls, and teacher qualifications.
The Committee directs the Secretary of Education to work
with the Office of Management and Budget to develop and
implement suitable administrative control mechanisms to promote
greater oversight of the program.
Public Schools.--The Committee directs the District of
Columbia Public Schools [DCPS] to submit a detailed spending
plan outlining specific activities no later than 60 days after
enactment of this act. The Committee expects that this spending
plan should contain a particular emphasis on initiatives to
improve the recruitment and retention of a high-quality teacher
and principal workforce in District public schools.
The District has 11,000 special needs students for whom the
District must provide or secure educational services. The
Committee expects the District to continue to make substantial
progress in achieving compliance with the 2006 Federal court-
ordered consent decree, eliminating inadequacies in treatment
and support for special needs students, and establishing more
inclusive learning environments for these students within the
District of Columbia Public Schools system.
Public Charter Schools.--With respect to the recommended
Federal payment for fiscal year 2014 for public charter
schools, the Committee directs the District of Columbia Public
Charter School Board to submit to Congress, through the Office
of the State Superintendent of Education, a detailed spending
plan outlining specific activities no later than 60 days after
enactment of this act. This spending plan should particularly
emphasize enhancing the academic quality of existing charter
schools, expanding the capacity of high-performing charter
schools, and executing a robust performance management system
to help identify low-performing schools and close them. The
Committee expects that funding provided for charter schools
will be used in accordance with the plan submitted.
Over the years, public charter schools have moved into and
revitalized former DCPS school buildings that otherwise would
have been developed into condominiums or used for other
commercial purposes. These buildings, including several
historic structures, often long-abandoned and severely
blighting neighborhoods, have been converted to public charter
schools. However, despite a law giving the charter schools a
``right of first offer'' whenever the District government
disposes of a former public school building by sale, lease, or
transfer, charter schools often lose out to commercial
developers.
The Committee directs the Mayor of the District of Columbia
to submit to the Committees on Appropriations, as part of the
fiscal year 2015 Federal payment budget justification
materials, a detailed fiscal year 2015-2019 public education
facilities plan that will ensure public charter school
equitable access to surplus or underutilized DCPS space
consistent with the law.
The Committee reminds the government of the District of
Columbia that students in public charter schools are to have
access to the same publicly funded services that are offered to
students in traditional public schools. These include school
nurses, School Resource Officers, crossing guards, and mental
health and other wrap-around services.

FEDERAL PAYMENT FOR THE D.C. NATIONAL GUARD

Appropriations, 2013\1\................................. $374,000
Budget estimate, 2014................................... 500,000
Committee recommendation................................ 500,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The D.C. National Guard is a Federal, rather than a local,
entity and responds to orders of the President of the United
States who is the Commander-in-Chief of the D.C. National Guard
pursuant to law (District of Columbia Official Code Sec. 49-409
and Executive Order No. 11485 (October 1, 1969)). Unlike a
Governor of a State, the Mayor is not authorized to deploy the
National Guard under any circumstances. The District of
Columbia National Guard is specifically trained to support law
enforcement during critical missions, such as demonstrations,
Presidential inaugurations and funerals, and emergency services
for weather-related contingencies. The D.C. Air Guard patrols
the skies over the District on round-the-clock alert. However,
residency restrictions preclude a significant number of Guard
members from eligibility for tuition assistance programs, which
has severely hampered recruitment and retention efforts.

COMMITTEE RECOMMENDATION

The Committee recommends a Federal payment of $500,000 for
the D.C. National Guard designated for the Major General David
F. Wherley, Jr. District of Columbia National Guard Retention
and College Access Program, a tuition assistance program for
nonresident District of Columbia National Guard members. This
amount is $126,000 above the fiscal year 2013 enacted level and
the same as the budget request.

FEDERAL PAYMENT FOR REDEVELOPMENT OF THE ST. ELIZABETHS HOSPITAL CAMPUS

Appropriations, 2013....................................................
Budget estimate, 2014................................... $9,800,000
Committee recommendation................................ 9,800,000

PROGRAM DESCRIPTION

St. Elizabeths, established by Congress in 1855 as the
Government Hospital for the Insane and officially renamed as
St. Elizabeths Hospital in 1916, is presently divided into two
campuses. The West Campus, owned by the Federal Government and
under the custody and control of the General Services
Administration, will be the new headquarters for the Department
of Homeland Security. The East Campus, owned by the District of
Columbia, is still in use as a mental health facility. The
fiscal year 2014 budget request seeks a new Federal payment of
$9,800,000 to support various redevelopment planning activities
on the East Campus to stimulate economic and community
revitalization in tandem with the transformation of the West
Campus property.

COMMITTEE RECOMMENDATION

The Committee recommends a one-time Federal payment of
$9,800,000, to remain available until expended, to support the
revitalization efforts underway at the East Campus of St.
Elizabeths in the District of Columbia. The Committee
understands that the Federal funding will be leveraged with a
total of $202,000,000 in local and private funds in fiscal
years 2012 through 2016 to support revitalization that will
bring together opportunities for community business
development, workforce development, financial services, and
other economic benefits for the community.

FEDERAL PAYMENT FOR HIV/AIDS PREVENTION

Appropriations, 2013\1\................................. $4,990,000
Budget estimate, 2014................................... 5,000,000
Committee recommendation................................ 5,000,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The District of Columbia is facing a daunting HIV epidemic.
Based on the national HIV/AIDS case based reporting system, the
District currently has the highest AIDS diagnosis rate in the
country. Currently, 2.7 percent of the population was diagnosed
and is living with HIV in the District. Early diagnosis and
increased access to care improves health outcomes and reduces
the chances of spreading the disease. According to the most
recent local epidemiology report, more than 76 percent of
persons in the District entered into care and treatment within
3 months of their HIV diagnosis, a steady increase from the 58
percent in 2006. The percentage of infected individuals whose
disease progressed from HIV to AIDS decreased to 24.2 percent,
down from 47 percent in 2004. HIV-related deaths per year have
dropped from 237 in 2006 to 66 in 2010, and there were no
pediatric HIV diagnoses in 2010, which is notable given that as
recently as 2005, the District accounted for nearly 10 percent
(6 of 68) pediatric AIDS cases nationwide.

COMMITTEE RECOMMENDATION

The Committee acknowledges the serious health situation and
recommends a special Federal payment of $5,000,000 to support
the use of emerging and effective technology and social
networking to promote regular and routine testing to
significantly increase the number of District residents who
know their HIV status and increase the number of HIV positive
residents immediately linked to care. This amount is $10,000
above the fiscal year 2013 enacted level and the same as the
budget request.

FEDERAL PAYMENT FOR D.C. COMMISSION ON THE ARTS AND HUMANITIES GRANTS

Appropriations, 2013....................................................
Budget estimate, 2014................................... $1,000,000
Committee recommendation................................................

The budget requests a special Federal payment of $1,000,000
to fund competitively awarded grants for nonprofit fine and
performing arts organizations based in and primarily serving
the District of Columbia. This request relates to a proposal to
eliminate funding for the National Capital Arts and Cultural
Affairs [NCACA] grants program administered by the Commission
on Fine Arts, a Federal entity funded under the Interior
appropriation.

COMMITTEE RECOMMENDATION

The Committee is unable to support the request for a new
special Federal payment to the District of Columbia for grants
for non-profit fine and performing arts organizations in fiscal
year 2014.

District of Columbia Funds

The Committee recommends, for the operating expenses of the
District of Columbia, the amount which will be submitted to
Congress by the government of the District of Columbia as set
forth in the enrolled version of the Fiscal Year 2014 Budget
Request Act of 2013, District of Columbia Bill 20-198, as may
be amended. Of the total amount of funds, the Committee
recommends the distribution of funds between local funds,
Federal grant funds, Medicaid payments, other funds and private
funds. The Committee further recommends an additional
$124,200,000 in appropriated Federal payments as set forth
under this title. The Committee directs that any changes to the
financial plan as submitted by the District must follow the
reprogramming guidelines.

TITLE V

INDEPENDENT AGENCIES

Administrative Conference of the United States

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $2,894,000
Budget estimate, 2014................................... 3,200,000
Committee recommendation................................ 3,200,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Administrative Conference of the United States [ACUS]
is an independent agency and advisory committee created to
study administrative processes in order to recommend
improvements to Congress and agencies.

COMMITTEE RECOMMENDATION

The Committee recommends $3,200,000 for ACUS, equal to the
budget request and $306,000 above the fiscal year 2013 enacted
level.

Christopher Columbus Fellowship Foundation

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $449,000
Budget estimate, 2014...................................................
Committee recommendation................................ 150,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Christopher Columbus Fellowship Foundation is an
independent agency established by Congress in 1992 (Public Law
102-281) to encourage and support research, study, and labor
designed to produce new discoveries in all fields of endeavor
for the benefit of mankind. Its mission is accomplished through
the sponsorship of national competitions designed to promote
innovation in the fields of homeland security, life sciences,
and education. Through its Frontiers of Discovery--Work in
Progress and Discover the Future programs, the agency
recognizes cutting-edge innovations of worthy American
scientists, student inventors, and exemplary teachers who
inspire despite especially challenging educational environments
or personal physical disabilities.
Initial funding for the Christopher Columbus Fellowship
Foundation was derived from the sale of three denominations of
specially minted coins sold by the United States Mint from
August 1992 through June 1993. Revenues from the coin sales
surcharges were deposited in the Christopher Columbus
Fellowship Fund at the Department of the Treasury, and made
available to the Foundation. To address the fact that the coin
sales revenues had been depleted, Congress authorized funding
for the Christopher Columbus Fellowship Foundation in the
Omnibus Appropriations Act, 2009 (Public Law 111-8).

COMMITTEE RECOMMENDATION

The Committee recommends $150,000 for fiscal year 2014 for
the Christopher Columbus Fellowship Foundation. This is
$299,000 below the fiscal year 2013 enacted level and $150,000
above the request. The Committee expects the Foundation to seek
alternative sources of funds for its operations other than
discretionary appropriations.

Commodity Futures Trading Commission

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $204,883,000
Budget estimate, 2014................................... 315,000,000
Committee recommendation................................ 315,000,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Commodity Futures Trading Commission [CFTC] was
established as an independent agency by the Commodity Futures
Trading Commission Act of 1974 (88 Stat. 1389; 7 U.S.C. 4a).
The Commission administers the Commodity Exchange Act, 7 U.S.C.
section 1, et seq.
The 1974 Act brought under Federal regulation futures
trading in all goods, articles, services, rights, and
interests; commodity options trading; and leverage trading in
gold and silver bullion and coins; and otherwise strengthened
the regulation of the commodity futures trading industry. It
established a comprehensive regulatory structure to oversee the
volatile futures trading complex. The CFTC's statutory mandate
was renewed and/or expanded in 1978, 1982, 1986, 1992, 1995,
2000, 2008, and 2010.
The CFTC is the sole Federal regulator responsible for
overseeing the futures, options, and swaps markets by
encouraging competitiveness and efficiency, ensuring market
integrity, and protecting market participants against
manipulation, abusive trading practices, fraud, and other
unscrupulous activities. Effective oversight by the CFTC
fosters open, competitive, and financially sound markets. This
enables the markets to better serve their designated functions
of providing a price discovery mechanism and a means to offset
price risk.
Under the Dodd-Frank Wall Street and Consumer Protection
Act (Public Law 111-203), the CFTC acquired expanded
responsibilities for comprehensive oversight of the once-
unregulated over-the-counter U.S. derivatives market to protect
and benefit end-users and the broader American public. This
complex swaps market has a notional value of nearly eight times
the size of that of the futures markets. For the first time, 75
entities have registered as swap dealers and two as major swap
participants.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $315,000,000
for the Commodity Futures Trading Commission. This is
$110,117,000 above the fiscal year 2013 enacted level and the
same as the budget request. The Committee supports the need for
increased resources for the CFTC above the fiscal year 2013
enacted level to satisfy its substantially broadened regulatory
workload and to ensure appropriate oversight of the futures
markets, which are growing steadily in volume and new users and
rapidly evolving in their complexity and diversity.
The Committee emphasizes that this recommend funding is
indispensable for conducting vigilant oversight of the futures
and swaps markets to ensure market integrity and transparency
and protect participants against manipulation, fraud, abusive
trading practices, and unscrupulous conduct. The funding level
will permit the CFTC to devote greater resources to its
examinations function to ensure ongoing compliance with
statutory and regulatory requirements. It will foster continued
execution of the requirements of the Dodd-Frank Wall Street
Reform Act facilitating transition from ``start-up'' rule-
writing to direct examinations and surveillance activities.
Moreover, it will allow mission-critical investments in new and
upgraded sophisticated technology to collect, monitor, and
analyze voluminous quantities of data generated round-the-clock
by global trading markets. For example, the CFTC needs to
continue to enhance and incorporate software to load swaps data
into a data warehouse computer for use in market surveillance,
risk monitoring, enforcement, and economic analysis.
The CFTC regulates the activities of 62,958 registrants,
including 51,068 salespersons, 1,172 commodity pool operators,
2,470 commodity trading advisors, 5,650 floor brokers, 1,102
floor traders, 128 futures commission merchants, 14 retail
foreign exchange dealers, and 1,354 introducing brokers.
Currently, the CFTC has designated 16 contract markets (boards
of trade or exchanges) that meet criteria for trading futures
or options or both. In addition, 17 derivative clearing
organizations are registered with the CFTC.
The Committee is particularly concerned that without the
requested resources, the CFTC will continue to face extreme
challenges in accomplishing all that it is expected to do, and
at a significant technological disadvantage. It is imperative
that the staffing and organization of the CFTC adapt to keep
pace with the growth surge which cannot be undertaken without
an increase in its operating budget that balances investments
in human capital and technology.
As emphasized in the CFTC's 2011-2015 strategic plan,
``effective oversight can only be accomplished if the regulator
has access to all relevant activity in the markets.'' Promptly
collecting, synthesizing, managing, and analyzing the vast
volume of data and information is paramount in CFTC's
surveillance work and real-time public reporting. Without
question, enhanced cutting-edge technology is essential to
CFTC's capacity to leverage financial and human resources to
execute not only the CFTC's core mission, but for fulfilling
the expanded responsibilities under Dodd-Frank reforms.
Spending Plan.--The Committee directs the CFTC to submit,
within 30 days of enactment, a detailed spending plan for the
allocation of the funds made available, displayed by discrete
program, project, and activity, including staffing projections,
specifying both FTEs and contractors, and planned investments
in information technology.
Information Technology Investments.--The Committee
underscores the crucial need for the CFTC to make mission-
critical investments in technology to sort through the millions
of pieces of information generated daily by markets. The CFTC's
responsibilities to integrate both swaps and futures markets
and perform required analysis and oversight requires a
comprehensive overhaul of the current systems and a greater
attention to automating surveillance and market risk analysis.
The amount and detail of trade data collected and analyzed by
the CFTC is expanding with its new authority over swaps markets
and can only be managed by completely automating the collection
and analysis of market data.
Regulatory Coordination and Harmonization.--The Committee
stresses that with the enactment of Public Law 111-203, it is
all the more critical for the CFTC, in collaboration with the
Securities and Exchange Commission [SEC], to ensure optimum
harmonization in executing the respective oversight
responsibilities of each agency with respect to over-the-
counter derivative products. The Committee expects the CFTC and
the SEC to limit, to the greatest extent possible, inconsistent
regulation of similar products and entities that could lead to
opportunities for regulatory arbitrage. The Committee continues
to support the use of funds to support the Joint SEC-CFTC
Advisory Committee.

Consumer Product Safety Commission

salaries and expenses

Appropriations, 2013\1\................................. $114,271,000
Budget estimate, 2014................................... 117,000,000
Committee recommendation................................ 117,000,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Consumer Product Safety Commission [CPSC] is an
independent regulatory agency that was established on May 14,
1973, and is responsible for protecting the public against
unreasonable risks of injury from consumer products; assisting
consumers to evaluate the comparative safety of consumer
products; developing uniform safety standards for consumer
products and minimizing conflicting State and local
regulations; and promoting research and investigation into the
causes and prevention of product-related deaths, illnesses, and
injuries.
In carrying out its mandate, the CPSC establishes mandatory
product safety standards, where appropriate, to reduce the
unreasonable risk of injury to consumers from consumer
products; helps industry develop voluntary safety standards;
bans unsafe products if it finds that a safety standard is not
feasible; monitors recalls of defective products; informs and
educates consumers about product hazards; conducts research and
develops test methods; collects and publishes injury and hazard
data; and promotes uniform product regulations by governmental
units.
On August 14, 2008, Congress reauthorized the Commission by
enacting the Consumer Product Safety Improvement Act of 2008
[CPSIA] (Public Law 110-314). CPSIA represents the most
substantial change in the Consumer Product Safety Commission's
authorities since the creation of the Commission. Among other
things, it enhances the Commission's recall authority,
streamlines the rulemaking process, provides for the creation
of a new searchable database of consumer product complaints,
and requires product certification.
On August 12, 2011, certain provisions of the CPSIA were
amended by Public Law 112-28, which gave the Commission
additional flexibility and authorities to deal with certain
product safety issues.
On January 14, 2013, the Drywall Safety Act (Public Law
112-266) gave the Commission authority to stop further imports
of problem drywall by ensuring that all drywall is marked with
manufacturer and country of origin and does not contain levels
of sulfur that could cause corrosion in homes.

COMMITTEE RECOMMENDATION

The Committee recommends $117,000,000 for the Consumer
Product Safety Commission, which is $2,729,000 above the fiscal
year 2013 funding level and the same as the budget request.
In 2008, Congress overwhelmingly passed the Consumer
Product Safety Improvement Act [CPSIA]. The CPSIA was
specifically intended to remove many of the regulatory
restrictions that impaired the CPSC's ability to quickly and
proactively respond to emerging consumer product hazards,
especially those affecting children. The Committee supports the
Commission's current regulatory efforts, particularly those
that seek to ensure we have strong mandatory safety standards
for durable infant and toddler products and harmful chemicals,
and believes that any effort to impose additional statutory
constraints on these proceedings is unwarranted.
The Committee includes a provision making technical
corrections to the Virginia Graeme Baker Pool and Spa Safety
Act and a provision requiring the Government Accountability
Office to study whether CPSC has adequate authorities to
respond quickly to emerging product safety hazards.
As the Commission considers new upholstered furniture
flammability standards, CPSC should take steps to reduce or
limit the use of flame retardant chemicals. In 2012, the
Commission released a study that indicates that flame retardant
chemicals, as currently used in upholstered furniture foam,
have no practical impact on flammability. It has been argued
that flame retardant chemicals can cause liver and thyroid
toxicity as well as neurological and reproductive problems.
Currently, the State of California is updating its standard
for furniture flammability, which most furniture sold in the
United States is manufactured to meet. California's new
proposed standard, expected to be effective beginning in 2014,
would increase fire safety without requiring flame retardant
chemicals. This standard would prevent smoldering ignitions,
such as from cigarettes, which are the leading cause of
furniture fires and deaths, as testified to in the
subcommittee's hearing on the effectiveness of furniture
flammability standards last year.
Although CPSC proposed a draft standard in 2008 similar to
California's current effort, the Commission is considering a
new standard with an open flame test that would likely result
in the use of both fire barriers and flame retardant chemicals
in furniture. This has raised concerns from many including from
some in the public health community and some in industry. The
Committee urges the CPSC to continue work on a furniture
flammability standard that addresses smoldering ignition risk
and does not impede the eventual adoption of, and compliance
with, California's new proposed standard.
The Committee remains concerned with the risks posed by
window coverings, and other accessible household cords. As the
Senate committee reports for the past few years have noted in
detail, fatalities and nonfatal incidents with corded window
coverings continue to occur. The CPSC has recently docketed a
petition on this issue, which the Committee urges the
Commission to review expeditiously, considering the issues and
possible regulatory options, including risk associated with
window coverings currently in homes.
In December 2012, the Government Accountability Office
[GAO] released a report titled: ``Consumer Product Safety
Commission: Agency Faces Challenges in Responding to New
Product Risks.''. In that report, GAO concluded that ``section
29(f) of the Consumer Product Safety Act has not achieved the
results expected by Congress when it enacted this provision and
CPSC may benefit from having more flexibility to exchange
information with its counterparts in other countries, which
would help CPSC prevent unsafe products from entering the U.S.
marketplace.''. To be responsive to the deficiency found by
GAO, the Committee includes a provision that will provide the
CPSC with enhanced flexibility to execute information sharing
arrangements with certain foreign counterparts. The Committee
believes that these modifications will allow the CPSC to more
effectively respond to new and emerging consumer product
hazards, and prevent dangerous products from entering the U.S.
stream of commerce.''

ADMINISTRATIVE PROVISIONS--CONSUMER PRODUCT SAFETY COMMISSION

Section 501 makes technical corrections to the Virginia
Graeme Baker Pool and Spa Safety Act.
Section 502 requires a GAO study of CPSC's ability to
respond quickly to emerging product safety hazards.
Section 503 provides enhanced flexibility to allow the CPSC
to execute information sharing agreements with foreign
governments and to more effectively respond to new and emerging
product safety hazards.

Election Assistance Commission

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2013\1\................................. $11,477,000
Budget estimate, 2014................................... 11,062,500
Committee recommendation................................ 11,062,500

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

The Election Assistance Commission [EAC] was created by the
Help America Vote Act of 2002 [HAVA] (Public Law 107-252).
Under HAVA, the EAC's role is to promulgate voluntary State
guidelines for election systems, maintain a national
certification program for voting equipment, serve as a national
clearinghouse of information on improving the administration of
Federal elections, and provide related guidance on meeting HAVA
requirements. The EAC is also charged with awarding and
auditing grants to improve election administration and to
enhance election equipment, and with maintaining a national
mail voter registration form developed in accordance with the
National Voter Registration Act of 1993.

COMMITTEE RECOMMENDATION

The Committee provides $11,062,500 for EAC's administrative
expenses, which is $414,500 less than the fiscal year 2013
enacted level and the same as the budget request. The Committee
bill requires that $2,750,000 of these funds be transferred to
the National Institute for Standards and Technology [NIST] for
technical assistance related to the development of voluntary
State voting systems guidelines.
Within 30 days of the transfer, the Director of NIST (or
designee) shall provide to the Executive Director (or Acting)
of the EAC and the Committee an expenditure plan for the funds
that includes: (1) the number and position title and office of
each staff person doing work and amount of time each staff
person spends on that work; (2) the specific tasks accomplished
including length of time needed to accomplish the task; (3) an
explanation of expenditures, including contracts and grants,
and use of the EAC funding transferred to NIST (including
enumeration of funds); (4) an explanation of how the work
accomplished relates to mandated activities under HAVA.
Finally, the Executive Director (or Acting) of the EAC and
Director of NIST (or designee) shall work together to set
priorities for the work outlined in order to meet timelines.

Federal Communications Commission

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $339,844,000
Budget estimate, 2014................................... 359,299,000
Committee recommendation................................ 359,299,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

The Federal Communications Commission [FCC] is charged with
regulating interstate and international communications by
radio, television, wire, satellite, and cable. The FCC is also
charged with promoting the safety of life and property through
wire and radio communications. The mandate of the FCC under the
Communications Act is to make available to all people of the
United States a rapid, efficient, nationwide, and worldwide
wire and radio communication service. The FCC performs five
major functions to fulfill this charge: (1) spectrum
allocation; (2) creating rules to promote fair competition and
protect consumers where required by market conditions; (3)
authorization of service; (4) enhancing public safety and
homeland security; and (5) enforcement.

COMMITTEE RECOMMENDATION

The Committee recommendation provides $359,299,000 for the
salaries and expenses of the Federal Communications Commission
[FCC], of which $359,299,000 is to be derived from the
collection of fees. The recommendation is $19,455,000 above the
fiscal year 2013 enacted level and equal to the budget request.
The recommendation includes $11,089,340 for the activities
of the Office of Inspector General. The Committee directs the
FCC to continue to submit the independent budget of the FCC
Inspector General to the President without alteration.
The Committee also recommends that up to $89,400,000 be
retained from spectrum auction activities to fund the
administrative expenses of conducting such auctions. The
recommendation will support, among other auction-related
activities, the cost of the FCC's expanded responsibilities
related to the implementation of incentive auctions provisions
included in the Middle Class Tax Relief and Job Creation Act of
2012 (Public Law 112-96).
The Committee has included language (section 510) to extend
FCC's exemption from the Anti-deficiency Act [ADA] until
December 31, 2015.
The Committee has included language (section 511) that
prohibits the FCC from enacting certain recommendations
regarding universal service that were made by the Joint Board
of FCC members and State utility commissioners.
Office of Native Affairs and Policy [ONAP].--The FCC found
that many tribal communities face significant obstacles to the
deployment of broadband infrastructure, including high buildout
costs, limited financial resources that deter investment by
commercial providers, and a shortage of technically trained
members who can undertake deployment and adoption planning.
Available data, which are sparse, suggest that less than 10
percent of residents on tribal lands have access to broadband
service.
ONAP was created by unanimous Commission vote in July 2010
in response a recommendation in the FCC's National Broadband
Plan, which recognized that the lack of basic and advanced
communications services on tribal lands leaves tribal members
with less access to telecommunications services than any other
segment of the population. ONAP is responsible for developing
and driving a Commission-wide tribal agenda and ensuring tribal
voices are taken into account in Commission proceedings. ONAP's
work with tribes is focused on bringing modern communications
infrastructure and the resulting benefits to tribal nations and
Native communities throughout the United States.
The Committee directs the FCC to develop a plan to fully
implement its Statement of Policy on Establishing a Government-
to-Government Relationship with Indian tribes adopted in June
2000 and, to support that goal, recommends not less than
$300,000 to support consultation with federally recognized
Indian tribes, Alaska Natives villages, and entities related to
Hawaiian Home Lands in order to ensure continuation of robust
outreach to such communities. The Committee also directs the
FCC to report to the Committee on any resource needs related to
ONAP and implementing the Statement of Policy on Establishing a
Government-to-Government Relationship with Indian Tribes.
Universal Service Reform.--The Committee commends the FCC
for its ongoing work to reform the Universal Service Fund [USF]
and support the expansion of broadband availability in rural
areas. The Committee remains concerned, however, that
participants in reformed USF support structures continue to
delay finalizing capital expenditures and investments in new
telecommunications infrastructure because support levels may be
uncertain. The Committee therefore urges the FCC to continue
working to finalize reformed USF support as soon as is
practicable.
International Coordination.--The Committee is aware that
the Commission continues to work to implement the first-ever
voluntary reverse auction of broadcast television spectrum in
order to repurpose underutilized spectrum for mobile broadband
use. This effort, which was authorized as part of the Middle
Class Tax Relief and Job Creation Act of 2012, is critical to
ensuring that the United States maintains its position as the
global leader on mobile broadband deployment.
In order to successfully complete the auction, the
Commission will need to reassign some remaining broadcast
stations to new frequencies. For stations located along the
northern and southern border, this raises unique challenges as
frequency assignments in those areas must be coordinated with
Canada and Mexico. The Committee notes that reassignment and
reallocation of frequencies was authorized subject to
international coordination.
Therefore, the Committee strongly urges the Commission to
take into account the importance of these negotiations as it
implements the auction and reassigns spectrum.
Call Completion in Rural Areas.--The Committee is concerned
that the persistence of calls failing to complete to rural
areas threatens public safety and local economies. Telephone
service in rural areas has become less reliable as consumers
experience calls that fail to complete, are delayed, have poor
voice quality, lack correct caller ID information, or are never
connected. While the Committee finds that the FCC's February
2012 Declaratory Ruling on Rural Call Completion Issues has
helped make progress towards addressing call completion
problems, the problems are continuing to occur. The FCC must
take decisive steps to ensure that rural consumers and
businesses do not face continuing disconnection. The Committee
directs the FCC to take immediate action to ensure that all
providers fulfill their obligation to properly route and
complete all calls, including by continuing to promote industry
best practices and by using all authorized and appropriate
enforcement powers to take action against parties found to be
engaging in the prohibited activities outlined in the
Declaratory Ruling. The Committee also directs the FCC to
submit a report to the Committee within 60 days of enactment
detailing the process and extent to which FCC is tracking call
completion rates, how the FCC is reviewing anomalies in call
completion rates, and what steps the FCC plans to take to
resolve call completion problems.

Federal Deposit Insurance Corporation

OFFICE OF THE INSPECTOR GENERAL

Appropriations, 2013\1\................................. $34,568,000
Budget estimate, 2014................................... 34,568,000
Committee recommendation................................ 34,568,000

PROGRAM DESCRIPTION

The Federal Deposit Insurance Corporation [FDIC] Office of
Inspector General [OIG] conducts audits, investigations, and
other reviews to assist and augment the FDIC's contribution to
the stability of, and public confidence in, the Nation's
financial system. A separate appropriation more effectively
ensures the OIG's independence consistent with the Inspector
General Act of 1978 and other legislation.

COMMITTEE RECOMMENDATION

The Committee recommends $34,568,000 for the FDIC inspector
general, the same as both the budget request and the fiscal
year 2013 enacted level. Funds are to be derived from the
Deposit Insurance Fund and the Federal Savings and Loan
Insurance Corporation resolution fund.

Federal Election Commission

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $66,234,000
Budget estimate, 2014\2\................................ 65,791,000
Committee recommendation................................ 66,395,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
\2\Consistent with 2 U.S.C. 437d(d), the Federal Election Commission
[FEC] provided to the Congress a copy of the budget request the FEC
submitted to the President. That request for fiscal year 2014 totaled
$67,000,000.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Federal Election Commission [FEC] was created through
the 1974 Amendments to the Federal Election Campaign Act of
1971 (Public Law 93-443). Consistent with its duty of executing
our Nation's Federal campaign finance laws, and in pursuit of
its mission of maintaining public faith in the integrity of the
Federal campaign finance system, FEC conducts three major
regulatory programs: (1) providing public disclosure of funds
raised and spent to influence Federal elections; (2) enforcing
compliance with restrictions on contributions and expenditures
made to influence Federal elections; and (3) administering
public financing of Presidential campaigns.

COMMITTEE RECOMMENDATION

The Committee recommends $66,395,000 for the Federal
Election Commission, which is $604,000 more than the
President's budget request and $161,000 more than the fiscal
year 2013 enacted level. The recommendation is $605,000 below
the budget request the FEC submitted to the President. The FEC
concurrently submitted a copy of such request to the Congress
as authorized by 2 U.S.C. 437d(d).
The Committee has included language (section 621) that
would save the FEC $430,000 annually by requiring Senate
candidate committees, and supporters of Senate candidates, to
file campaign finance reports electronically, consistent with
the requirements for all other political committees and
campaigns. Under current law, such filings are required to be
manually submitted.

Federal Labor Relations Authority

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $24,674,000
Budget estimate, 2014................................... 25,490,000
Committee recommendation................................ 25,490,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Federal Labor Relations Authority [FLRA] is an
independent administrative Federal agency created by title VII
of the Civil Service Reform Act of 1978 (Public Law 95-454)
with a mission to carry out five statutory responsibilities in
relation to the Federal workforce: (1) determining the
appropriateness of units for labor organization representation;
(2) resolving complaints of unfair labor practices; (3)
adjudicating exceptions to arbitrator's awards; (4)
adjudicating legal issues relating to the duty to bargain; and
(5) resolving impasses during negotiations.
The FLRA's authority is divided by law and by delegation
among a three-member authority and an Office of General
Counsel, appointed by the President and subject to Senate
confirmation; and the Federal Service Impasses Panel, which
consists of seven part-time members appointed by the President.
In addition, the FLRA is engaged in case-related
interventions, training and facilitation of labor-management
partnerships, and resolving disputes. FLRA promotes labor-
management cooperation by providing training and assistance to
labor organizations and agencies on resolving disputes,
facilitates the creation of partnerships, and trains the
parties on rights and responsibilities under the Federal Labor
Relations Management statute.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $25,490,000
for the Federal Labor Relations Authority. This amount is equal
to the budget request and $816,000 above the fiscal year 2013
enacted level.

Federal Trade Commission

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $310,940,000
Budget estimate, 2014................................... 301,000,000
Committee recommendation................................ 301,000,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Federal Trade Commission [FTC] administers a variety of
Federal antitrust and consumer protection laws. Activities in
the antitrust area include detection and elimination of illegal
collusion, anticompetitive mergers, unlawful single-firm
conduct, and injurious vertical agreements. The FTC enforces
consumer protection laws involving advertising, marketing, and
financial practices; fights consumer fraud; and addresses
privacy and identity protection concerns.

COMMITTEE RECOMMENDATION

The Committee recommendation provides $301,000,000. The
recommendation is $9,940,000 below the fiscal year 2013 enacted
level and equal to the budget request.
Of the amounts provided, $15,000,000 is derived from Do-
Not-Call fees and $197,000,000 is derived from Hart-Scott-
Rodino per-merger filing fees. Section 624 of the bill adjusts,
for inflation, pre-merger filing fees. These fees have not been
adjusted for inflation since 2001. Section 624 also establishes
a new tier for merger transactions valued at over $1,000,000.
The total amount of direct appropriations for this account is
therefore $89,000,000.
The Committee continues to place a high priority on the
FTC's mission to protect consumers and preserve competition in
the marketplace. The Committee is pleased with the FTC's
efforts to protect consumers by investigating fraud and
misleading practices related to mortgage lending, identity
theft, data security, and healthcare. The Committee is also
pleased that the FTC has worked to preserve competition in the
marketplace through education and enforcement of Federal laws
related to anticompetitive practices. Over the past 3 years,
the FTC saved consumers more than $3,000,000,000 in economic
injury by stopping illegal practices in the marketplace. In
2012 alone, the FTC took action against mergers likely to harm
competition in markets with a total of $20,200,000,000 in
sales. The Committee directs the FTC to robustly continue such
activities.
Children's Online Privacy Protection.--The Children's
Online Privacy Protection Act [COPPA] was enacted in 1998 to
put parents in control of what information is collected from
their young children online. COPPA requires Web sites and
online services, including apps, to notify parents directly and
get their approval before they collect, use, or disclose a
child's personal information. The FTC issued updated rules on
July 1, 2013 that widened the definition of children's personal
information to include persistent identifiers such as cookies
that track a child's activity online, as well as geolocation
information, photos, videos, and audio recordings. The
Committee appreciates the FTC's work related to children's
online privacy and directs the FTC to continue to diligently
enforce COPPA to ensure that children's privacy continues to be
protected as technology evolves.
Pay for Delay.--The Supreme Court's decision in Federal
Trade Commission v. Actavis held that ``reverse settlements''
between brand name drug companies and generic drug companies
are not immune from antitrust scrutiny. These agreements, in
which brand name drug companies pay generic drug companies to
stay off of the market or delay their entry into the market,
can rob consumers and taxpayers of the savings offered by
generic drug competition. Congress expects the FTC to pursue
challenges to such settlement agreements when they threaten
competition and harm consumers.
Sports Concussion.--The Committee is encouraged by the
FTC's efforts to protect children, parents, and coaches of
young athletes from over-hyped and unsupported claims that
certain sports equipment reduces the risk of concussion.
According to the Centers for Disease Control and Prevention, a
concussion is a type of traumatic brain injury that can occur
in any sport or recreation activity.
Given the potential for real injury to children, the
Committee urges the FTC to remain vigilant in its enforcement
efforts against potential unfair and deceptive practices
related to sports concussion. The FTC should review any
National Academies' report on sports-related concussions in
youth for any matter that may inform efforts to protect
consumers from unfair or deceptive practices in or affecting
commerce.
Do-Not-Call Initiative.--The recommendation includes
funding for the FTC Do-Not-Call initiative and implementation
of the Telemarketing Sales Rule [TSR], of which the entire
amount is to be derived from the collection of fees. The Do-
Not-Call initiative was launched pursuant to the FTC's amended
TSR to establish a national database of telephone numbers of
consumers who choose not to receive telephone solicitations
from telemarketers. The Do-Not-Call initiative has received
broad support from, and will provide significant benefits to,
consumers from all corners of the United States.

General Services Administration

PROGRAM DESCRIPTION

The General Services Administration [GSA] was established
by the Federal Property and Administrative Services Act of 1949
(Public Law 81-152) when Congress mandated the consolidation of
the Federal Government's real property and administrative
services. GSA is organized into the Public Buildings Service,
the Federal Acquisition Service, the Office of Governmentwide
Policy, and the Office of Citizen Services.

COMMITTEE RECOMMENDATION

Battery Purchases.--The Committee is concerned that Federal
agencies are not adequately considering service life when
contracting for large quantities of batteries. Disregarding
battery life prevents the Government from determining which
product offers the best value to the taxpayer. For example,
purchasing a slightly more expensive product with a
significantly longer service life may provide a better value to
the taxpayer.
The Committee directs GSA to submit a report not later than
90 days after enactment on the costs and benefits of: (1)
collecting industry standard test results for service life from
venders selling batteries through GSA; and (2) sharing this
data with Federal agencies seeking technical assistance to
prepare a contract for the purchase of batteries. If benefits
exceed costs, the Committee expects GSA to implement such a
policy.
FBI Headquarters Consolidation.--The Committee directs GSA
to move forward in a timely and transparent way with the
consolidation of FBI Headquarters so that employees currently
located at the J. Edgar Hoover building may be co-located with
their colleagues who are currently spread out across 20 leased
offices in the region. The Committee strongly encourages GSA to
follow the Environment and Public Works Committee-passed
resolution which directs GSA to find a 45 to 55 acre location
within a reasonable distance of the White House, the U.S.
Capitol, and Quantico that is also within 2.0 miles of a
Metrorail station and 2.5 miles of the Capital Beltway. This
consolidation is in the best interests of the FBI's information
sharing, collaboration, and integration of strategic
priorities. The FBI must have a central headquarters that meets
its needs for security and transportation access.
Use of Stairs.--The Committee continues to believe that the
Federal Government should be a leader in encouraging workplace
wellness. The Committee directs that GSA begin to undertake the
following actions at future GSA-owned and leased buildings: (1)
display signage next to all banks of elevators or on elevator
doors, at the entrance to all nonemergency use public
stairwells, and at the base of escalators, indicating the
location of and encouraging use of the stairs; and (2) utilize
new building designs that promote the use of stairs. In order
to ascertain precisely how much progress has been made and how
much remains, GSA is directed to provide a report within 120
days after enactment of this act on the percentage of Federal
buildings with such signage as well as on actions undertaken
with regard to the design of new facilities, with a view to
increasing the likely use of stairs.
Green Buildings.--The Committee agrees with the findings of
the ``Green Building Certification System Review'' (PNNL-20966)
regarding the transparency and consensus based approaches used
by various green building rating systems (PNNL-20966, pages
4.6, 4.7 and 4.8 respectively). The Committee notes that green
building rating systems utilized by the General Services
Administration, including the LEED green building rating
system, are compliant with Office of Management and Budget
[OMB] Circular A-119 regarding Federal Participation in the
Development and Use of Voluntary Consensus Standards and in
Conformity Assessment Activities.
The Committee is aware that the National Academies of
Science report on green building rating systems pursuant to
section 2830 of Public Law 112-81, shows that the preponderance
of available evidence finds that green building rating systems
provide a framework for reducing energy and water use in
buildings, compared to design approaches and practices used for
conventional buildings. The Committee notes these findings are
consistent with a PNNL post-occupancy review of General
Services Administration [GSA] facilities that found LEED Gold
buildings have a 27 percent reduction in energy use and 19
percent lower operating costs.
Pursuant to Public Law 111-8, section 748 and Executive
Order 13423 the GSA must reduce and minimize the quantity of
toxic and hazardous chemicals materials acquired and used by
the agency. In complying with these acts, the Committee
encourages the GSA to look at methods and strategies that
provide a greater understanding and valuation of human health
impacts related to construction, operation and occupation of
facilities in its portfolio.
Sustainable Roofing Systems.--The Committee recommends that
agency budgets be allowed to consider opportunities for long-
term contracts under which the Government would pay over the
life of the contract rather than upfront, for the acquisition
of sustainable roofing systems for Federal buildings.
Sustainable roofing systems should minimize the burden on the
environment, conserve energy, and extend the useful life of the
roof asset. In addition, the Committee encourages the GSA to
consider a pilot program for implementation of a sustainable
roof system with a payment over time plan to develop more
information on the overall savings to the Government.

FEDERAL BUILDINGS FUND--LIMITATIONS ON AVAILABILITY OF REVENUE

Limitation on availability of revenue:
Limitation on availability, 2013\1\................. $8,017,967,000
Limitation on availability, budget estimate, 2014... 9,950,560,000
Committee recommendation................................ 9,950,560,000

\1\Exempt from sequester of funds pursuant to section 255(g)(1)(A) of
the Balanced Budget and Emergency Deficit Control Act, as amended

The Federal Buildings Fund program consists of the
following activities financed largely from rent charges:
Construction and Acquisition of Facilities.--This activity
provides for the construction or purchase of facilities and
prospectus-level extensions to existing buildings. All costs
directly attributable to site acquisition, construction, and
the full range of design and construction services, and
management and inspection of construction projects are funded
under this activity.
Repairs and Alterations.--This activity provides for
repairs and alterations of existing buildings as well as
associated design and construction services. Protection of the
Government's investment, health and safety of building
occupants, transfer of agencies from leased space, and cost
effectiveness are the principal criteria used in establishing
priorities. Repairs to prevent deterioration and damage to
buildings, their support systems, and operating equipment are
given priority.
Installment Acquisition Payments.--This activity provides
for payments for liabilities incurred under purchase contract
authority and lease purchase arrangements. GSA makes periodic
payments to cover principal, interest, and other requirements
on the debt incurred for construction of Federal buildings.
Rental of Space.--This activity provides for the leasing of
privately owned buildings. Including space occupied by Federal
agencies in U.S. Postal Service facilities, GSA provided 193
million square feet of rental space in fiscal year 2012. GSA
expects to provide 197 million square feet of rental space in
fiscal year 2013 and 194 million in fiscal year 2014.
Building Operations.--
Building Services.--This activity provides services for
Government-owned and -leased facilities, including
cleaning, utilities and fuel, maintenance, security,
and miscellaneous services (such as moving, evaluation
of new materials and equipment, and field supervision).
Salaries and Expenses.--This activity provides general
management and administration of all real property
related programs including salaries and benefits paid
from the Federal Buildings Fund, administrative costs
funded directly by the Federal Buildings Fund, and
contributions to the GSA Working Capital Fund.
Other Reimbursable Programs.--When requested by other
Federal agencies, the Public Buildings Service provides
building services, such as tenant alterations, cleaning and
other operations, and protection services which are in excess
of those services provided under the commercial rental charges.
To the extent practicable, before expansion, building
projects should envision maximum utilization.

CONSTRUCTION AND ACQUISITION

Limitation on availability, 2013\1\..................... $50,000,000
Limitation on availability, budget estimate, 2014....... 816,167,000
Committee recommendation................................ 816,167,000

PROGRAM DESCRIPTION

The construction and acquisition fund shall be available
for site, design, construction, management, and inspection
costs for the construction of new Federal facilities.

COMMITTEE RECOMMENDATION

The Committee recommends a limitation of $816,167,000 for
construction and acquisition of facilities in fiscal year 2014.

REPAIRS AND ALTERATIONS

Limitation on availability, 2013\1\\2\.................. $287,000,000
Limitation on availability, budget estimate, 2014....... 1,302,382,000
Committee recommendation................................ 1,261,382,000

\1\Exempt from sequester of funds pursuant to section 255(g)(1)(A) of
the Balanced Budget and Emergency Deficit Control Act, as amended.
\2\Includes emergency funding of $7,000,000 in the Disaster Relief
Appropriations Act, 2013 (division A of Public Law 113-2).
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PROGRAM DESCRIPTION

Under this activity, the General Services Administration
[GSA] executes its responsibility for repairs and alterations
[R&A] of both Government-owned and -leased facilities under the
control of GSA. The primary goal of this activity is to provide
commercially equivalent space to tenant agencies. Safety,
quality, and operating efficiency of facilities are given
primary consideration in carrying out this responsibility.
R&A workload requirements originate with scheduled onsite
inspections of buildings by qualified regional engineers and
building managers. The work identified through these
inspections is programmed in order of priority into the
Inventory Reporting Information System and incorporated into a
5-year plan for accomplishment, based upon funding
availability, urgency, and the volume of R&A work that GSA has
the capability to execute annually. Since fiscal year 1995,
design and construction services activities associated with
repair and alteration projects have been funded in this
account.

COMMITTEE RECOMMENDATION

The Committee recommends a limitation of $1,261,382,000 for
repairs and alterations in fiscal year 2014.

CONSTRUCTION AND REPAIR

Appropriations, 2013....................................................
Budget estimate, 2014...................................................
Committee recommendation................................ $41,000,000

COMMITTEE RECOMMENDATION

The Committee recommends $41,000,000 for both construction
and repair of Federal facilities in fiscal year 2014.
The fiscal year 2014 budget request includes $41,000,000
for the John A. Campbell Courthouse. The bill provides the
requested funding which is included for repair of the existing
courthouse and for construction to fully meet the housing and
security needs of the Court (including relocating judicial
entities from leased space) in the most cost-effective way
possible. While it is the intent of Congress to provide for the
security and space needs for the Southern District of Alabama
District Court in the most cost-efficient manner, the project
must meet the security needs of the court, according to the
U.S. Marshal's guidelines, as well as provide adequate space
for the U.S. District Court and Clerk's office, U.S. Eleventh
Circuit Court of Appeals, U.S. Marshals Service, U.S.
Bankruptcy Court, Bankruptcy Administrator, Probation Office,
U.S. Senator's field office, and a remote office for the U.S.
Attorney.

INSTALLMENT ACQUISITION PAYMENTS

Limitation on availability, 2013\1\..................... $126,801,000
Limitation on availability, budget estimate, 2014....... 113,470,000
Committee recommendation................................ 113,470,000

PROGRAM DESCRIPTION

The Public Buildings Amendments of 1972 enable GSA to enter
into contractual arrangements for the construction of a backlog
of approved but unfunded projects. This activity provides for
the payment of interest to the Federal Financing Bank related
to facilities acquired pursuant to the Public Buildings
Amendments of 1972 (40 U.S.C. 592).

COMMITTEE RECOMMENDATION

The Committee recommends a limitation of $113,470,000 for
installment acquisition payments consistent with the budget
request.

RENTAL OF SPACE

Limitation on availability, 2013\1\..................... $5,210,198,000
Limitation on availability, budget estimate, 2014....... 5,387,109,000
Committee recommendation................................ 5,387,109,000

PROGRAM DESCRIPTION

GSA is responsible for leasing general purpose space and
land incident thereto for Federal agencies, except in cases
where GSA has delegated its leasing authority. GSA's policy is
to lease privately owned buildings and land only when: (1)
Federal space needs cannot be otherwise accommodated
satisfactorily in existing Government-owned or -leased space;
(2) leasing proves to be more efficient than the construction
or alteration of a Federal building; (3) construction or
alteration is not warranted because requirements in the
community are insufficient or are indefinite in scope or
duration; or (4) completion of a new Federal building within a
reasonable time cannot be assured.

COMMITTEE RECOMMENDATION

The Committee recommends a limitation of $5,387,109,000 for
rental of space. The Committee recommendation is $176,911,000
above the fiscal year 2013 enacted level and the same as the
budget request.

BUILDING OPERATIONS

Limitation on availability, 2013\1\..................... $2,350,968,000
Limitation on availability, budget estimate, 2014....... 2,331,432,000
Committee recommendation................................ 2,331,432,000

PROGRAM DESCRIPTION

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

COMMITTEE RECOMMENDATION

The Committee recommends a limitation of $2,331,432,000 for
building operations. This amount is $19,536,000 less than the
fiscal year 2013 enacted level and the same as the budget
request.

GOVERNMENTWIDE POLICY

Appropriations, 2013\1\................................. $60,993,000
Budget estimate, 2014................................... 62,548,000
Committee recommendation................................ 62,548,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Office of Governmentwide Policy [OGP], working
cooperatively with other agencies, provides the leadership
needed to develop and evaluate policies associated with high-
performance green buildings and real property, acquisition
policy, personal property, travel and transportation
management, vehicles and aircraft, committee and regulations
management, and management of Federal spending data. OGP
collaborates with partner agencies and other stakeholders to
improve public access to policy information and support data,
and improve transparency in Government.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $62,548,000
for Governmentwide Policy. This amount is $1,555,000 above the
fiscal year 2013 enacted level and consistent with the budget
request.
Human trafficking and slavery occur internationally and in
the United States, and are pervasive in the manufacturing,
agriculture, and services industries (e.g., hotels). As the
largest customer of goods and services in the world, the U.S.
Government could significantly reduce slavery worldwide by
purchasing goods and services free of slave labor. Executive
Order 13627 (``Strengthening Protections Against Trafficking in
Persons in Federal Contracts'') and the ``End Trafficking in
Government Contracting Act'' (title XVII of Public Law 112-239)
are important first steps in eradicating slavery and
trafficking from the U.S. Government supply chain, by focusing
on procurement for overseas bases. The Committee encourages the
Administrator, with public input including from nongovernmental
organizations, to establish guidelines consistent with
Executive Order 13627 in GSA procurement programs. In addition,
GSA should ensure that appropriate training exists to
facilitate implementation of these guidelines.

OPERATING EXPENSES

Appropriations, 2013\1\................................. $69,361,000
Budget estimate, 2014................................... 64,453,000
Committee recommendation................................ 64,453,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

Operating Expenses supports a variety of operational
activities which are not feasible or appropriate for a user fee
arrangement. Major programs include the personal property
utilization and donation activities of the Federal Acquisition
Service; the real property utilization and disposal activities
of the Public Buildings Service; the activities of the Civilian
Board of Contract Appeals; and the Management and
Administration activities, including support of Governmentwide
emergency response and recovery activities, and top-level
agency-wide management, administration, and communications
activities.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $64,453,000
for Operating Expenses. This amount is $4,908,000 below the
fiscal year 2013 enacted level and consistent with the budget
request.

OFFICE OF INSPECTOR GENERAL

Appropriations, 2013\1\................................. $57,884,000
Budget estimate, 2014................................... 62,908,000
Committee recommendation................................ 62,908,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

This appropriation provides agency-wide audit and
investigative functions to identify and correct management and
administrative deficiencies within the General Services
Administration [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.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $62,908,000
for the Office of Inspector General. This amount is $5,024,000
above the fiscal year 2013 enacted level and the same as the
budget request.

ELECTRONIC GOVERNMENT [E-GOV] FUND

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2013\1\................................. $12,375,000
Budget estimate, 2014................................... 20,150,000
Committee recommendation................................ 20,150,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

This program supports interagency ``electronic government''
or ``e-gov'' initiatives and projects that use the Internet or
other electronic methods to provide individuals, businesses,
and government agencies with simpler and more timely access to
Federal information, benefits, services, and business
opportunities. The program would also further the
administration's implementation of the Government Paperwork
Elimination Act [GPEA] of 1998, which calls upon agencies to
provide the public with optional use and acceptance of
electronic information, services, and signatures, when
practicable.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $20,150,000
for the Electronic Government Fund. This amount is $7,775,000
above the fiscal year 2013 enacted level and the same as the
budget request.

ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS

Appropriations, 2013\1\................................. $3,663,000
Budget estimate, 2014................................... 3,550,000
Committee recommendation................................ 3,550,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

This appropriation provides pensions, office staffs, and
related expenses for former Presidents Jimmy Carter, George
H.W. Bush, William Clinton, and George W. Bush, and for postal
franking privileges for the widow of former President Ronald
Reagan.

COMMITTEE RECOMMENDATION

The Committee recommends $3,550,000 for allowances and
office staff for former Presidents, $113,000 below the fiscal
year 2013 funding level and the same as the budget request.
Below is listed a detailed analysis of the Committee's
recommendation for fiscal year 2014 funding:

FISCAL YEAR 2014 BUDGET ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS
[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
Carter G.H. Bush Clinton G.W. Bush Widows Total
----------------------------------------------------------------------------------------------------------------
Personnel compensation........................ ......... 96 96 96 ......... 288
Personnel benefits............................ ......... 65 119 102 ......... 286
Benefits for former Presidents (pensions)..... 203 203 215 211 ......... 832
Travel........................................ ......... 62 ......... 42 ......... 104
Rental Payments to GSA........................ 110 183 425 421 ......... 1,139
Communications, utilities, and misc........... 20 65 15 95 7 202
Printing...................................... 5 14 18 26 ......... 63
Other services................................ 125 82 30 168 ......... 405
Supplies...................................... 3 15 7 40 ......... 65
Equipment..................................... 4 50 26 86 ......... 166
-----------------------------------------------------------------
Fiscal year 2014 request................ 470 835 951 1,287 7 3,550
----------------------------------------------------------------------------------------------------------------

FEDERAL CITIZEN SERVICES FUND

Appropriations, 2013\1\................................. $34,032,000
Budget estimate, 2014................................... 34,804,000
Committee recommendation................................ 34,804,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Federal Citizen Services Fund provides for the salaries
and expenses of the Office of Citizen Services and Innovative
Technologies [OCSIT]. OCSIT provides the means for citizens,
businesses, other governments, and the media to obtain
information and services easily from the Government via the
Web, email, printed media, and telephone. OCSIT leads several
interagency groups to share best practices and develop
strategies for improving the way Government provides services
to the American public.
OCSIT provides information and services to the public
primarily through USA.gov and GobiernoUSA.gov, the official web
portal of the U.S. Government. OCSIT also provides direct
telephone (1-800-FED-INFO), email and online assistance to
citizens through the National Contact Center, and offers
comprehensive and cost-effective contact center solutions to
customer Federal agencies through the USA Services program.
OCSIT also coordinates the publication and distribution of
information through the Government Printing Office's Public
Documents Distribution Center in Pueblo, Colorado.
The Federal Citizen Services [FCS] Fund is financed from
annual appropriations to pay for the salaries and expenses of
OCSIT staff and Citizens Services programs. Reimbursements from
Federal agencies pay for the direct costs of information
services OCSIT provides on their behalf. The FCS Fund also
receives funding from user fees for publications ordered by the
public, payments from private entities for services rendered,
and gifts from the public. All income is available without
regard to fiscal year limitations, but is subject to an annual
aggregate expenditure limit as set forth in appropriation acts.

committee recommendation

The Committee recommends $34,804,000 for the Federal
Citizen Services Fund, an increase of $772,000 above the fiscal
year 2013 enacted level and the same as the budget request. The
appropriation will be augmented by reimbursements from Federal
agencies for distribution of consumer publications, user fees
from the public, and other income.

ADMINISTRATIVE PROVISIONS--GENERAL SERVICES ADMINISTRATION

(INCLUDING TRANSFERS OF FUNDS)

Section 520 authorizes GSA to use funds for the hire of
passenger motor vehicles.
Section 521 authorizes GSA to transfer funds within the
Federal buildings fund to meet program requirements.
Section 522 requires that the fiscal year 2015 budget
request meet certain standards.
Section 523 provides 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 rate.
Section 524 continues the provision that permits GSA to pay
small claims less than $250,000 made against the Government.
Section 525 provides that certain lease agreements must
conform to an approved prospectus.
Section 526 allows GSA to use green building certification
systems that are voluntary, consensus-based, and consistent
with statute and Federal requirements.

Harry S Truman Scholarship Foundation

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $747,000
Budget estimate, 2014...................................................
Committee recommendation................................ 750,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Harry S Truman Scholarship Foundation is an independent
agency established by Congress in 1975 (Public Law 93-642) to
encourage exceptional college students to pursue careers in
public service through the Truman Scholarship program. The
Truman Scholarship is a merit-based award available to college
juniors who plan to pursue careers in Government or elsewhere
in public service. Truman Scholars receive up to $30,000 for
graduate or professional school, participate in leadership
development activities, and have special opportunities for
internships and employment with the Federal Government.
The Foundation Trust Fund was established with a one-time
$30,000,000 appropriation in 1976. The authorizing legislation
directed that this endowment be invested solely in U.S.
Treasury Securities, the interest from which has funded the
Foundation's operating budget. With the decline in interest
rates, the Foundation has experienced a significant decline in
Federal financial support. From fiscal year 2002 to fiscal year
2012, despite having cut expenditures by 40 percent, annual
trust fund revenue has declined 63 percent. The Foundation
anticipates a budget deficit of $1,650,000 without the
requested appropriation.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $750,000 for
the Harry S Truman Scholarship Foundation. This amount is
$3,000 above the fiscal year 2013 enacted level and $750,000
above the budget request. The appropriation is provided to
offset the decline in trust fund revenues, to increase direct
financial support to scholars, to ensure compliance with
Government audit reporting requirements, and to invest in
technology and financial development activities.

Merit Systems Protection Board

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2013\1\................................. $40,177,000
Budget estimate, 2014\2\................................ 40,070,000
Committee recommendation................................ 42,740,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
\2\Consistent with 5 U.S.C. 1204(k), the Merit Systems Protection Board
submitted an independent budget estimate to the Congress. The
independent request for fiscal year 2014 totaled $45,413,000.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Merit Systems Protection Board [MSPB] was established
by the Civil Service Reform Act of 1978. MSPB is an independent
quasi-judicial agency manifested to protect Federal merit
systems against partisan political and other prohibited
personnel practices and to ensure adequate protection for
employees against abuses by agency management.
MSPB assists Federal agencies in running a merit-based
civil service system. This is accomplished on a case-by-case
basis through hearing and deciding employee appeals and on a
systemic basis by reviewing significant actions and regulations
of the Office of Personnel Management [OPM] and conducting
studies of the civil service and other merit systems. The
intended results of MSPB's efforts are to assure that personnel
actions taken against employees are processed within the law
and that actions taken by OPM and other agencies support and
enhance Federal merit principles.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $42,740,000
for the Merit Systems Protection Board [MSPB], an increase of
$2,563,000 to the fiscal year 2013 enacted level. The
recommendation is a decrease of $2,673,000 to the MSPB's
independent budget request as authorized by 5 U.S.C. 1204(k)
and is an increase of $2,670,000 to the President's budget
request. The Committee makes available not more than $2,345,000
for adjudicating retirement appeals through an appropriation
from the trust fund consistent with past practice.

Morris K. Udall and Stewart L. Udall Foundation

MORRIS K. UDALL AND STEWART L. UDALL TRUST FUND

Appropriations, 2013\1\................................. $2,196,000
Budget estimate, 2014................................... 2,100,000
Committee recommendation................................ 2,100,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The General Fund payment to the Morris K. Udall and Stewart
L. Udall Trust Fund is invested in Treasury securities with
maturities suitable to the needs of the Fund. Interest earnings
from the investments are used to carry out the activities of
the Morris K. Udall and Stewart L. Udall Foundation. The
Foundation awards scholarships, fellowships, and grants, and
funds activities of the Udall Center.
The Morris K. Udall and Stewart L. Udall Foundation also
supports training programs for professionals in health care
policy and public policy, such as the Native Nations Institute
[NNI]. NNI, based at the University of Arizona, provides Native
Americans with leadership and management training, and analyzes
policies relevant to tribes.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $2,100,000 for
the Morris K. Udall and Stewart L. Udall Trust Fund. This
amount is equal to the budget request and a decrease of $96,000
to the fiscal year 2013 enacted level.
The Committee is highly concerned about reports that the
Udall Foundation (Foundation) may not have been maintaining
adequate internal controls over its funding, employment
policies, and contracting procedures. The Committee understands
that the Foundation may not have performed annual assessments
of its internal controls despite submitting statements
indicating it had; inappropriately awarded sole source
contracts; approved contract modifications leading to
significant cost overruns; and demonstrated poor control over
personnel management.
The Committee has requested the Government Accountability
Office [GAO] to evaluate the Foundation's internal controls and
refer any potential criminal findings to the Department of
Justice, consistent with current law. The Committee looks
forward to the results of the GAO evaluation for informing
future funding and policy recommendations.
The Committee notes that the Foundation has begun to
overhaul its internal controls and appreciates the Foundation's
transparency regarding such reforms. The Committee directs the
Foundation to fully cooperate with GAO and implement
recommended reforms as soon as possible. The Committee also
directs the Foundation to report semiannually to the Committee
regarding its progress on implementing reformed internal
controls, including milestones planned and achieved.
Finally, the Committee provides for the Inspector General
of the Department of the Interior to conduct annual audits and
investigations of the Foundation in order to ensure that the
Foundation's spending, management, and other activities are
subject to regular oversight and review.

ENVIRONMENTAL DISPUTE RESOLUTION FUND

Appropriations, 2013\1\................................. $3,784,000
Budget estimate, 2014................................... 3,600,000
Committee recommendation................................ 3,600,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The U.S. Institute for Environmental Conflict Resolution is
a Federal program established by Public Law 105-156 to assist
parties in resolving environmental, natural resource, and
public lands conflicts. The Institute is part of the Morris K.
Udall and Stewart L. Udall Foundation and serves as an
impartial, nonpartisan institution providing professional
expertise, services, and resources to all parties involved in
such disputes. The Institute helps parties determine whether
collaborative problem solving is appropriate for specific
environmental conflicts, how and when to bring all the parties
together for discussion, and whether a third-party facilitator
or mediator might be helpful in assisting the parties in their
efforts to reach consensus or to resolve the conflict. In
addition, the Institute maintains a roster of qualified
facilitators and mediators with substantial experience in
environmental conflict resolution and can help parties in
selecting an appropriate neutral professional.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $3,600,000 for
the Environmental Dispute Resolution Fund. This amount is a
decrease of $184,000 to the fiscal year 2013 enacted level and
is equal to the budget request.

National Archives and Records Administration

The National Archives and Records Administration [NARA] is
the national recordkeeper, managing the Government's archives
and records, and operating the Presidential libraries. NARA is
an independent agency created by statute in 1934 and tasked
with the unique mission to identify, access, protect, preserve,
and make available for use the important documents and records
of all three branches of the Federal Government. NARA
administers the Information Security Oversight Office, is the
publisher of the Federal Register, and makes grants for
historical documentation through the National Historical
Publications and Records Commission. In addition, NARA is
charged with additional responsibilities including mediating
Freedom of Information Act disputes and coordinating controlled
unclassified information.

OPERATING EXPENSES

Appropriations, 2013\1\................................. $372,553,000
Budget estimate, 2014................................... 370,706,000
Committee recommendation................................ 370,706,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

This account provides for basic operations dealing with
management of the Federal Government's archives and records,
operation of Presidential libraries, review for
declassification of classified security information, and other
duties.

COMMITTEE RECOMMENDATION

The Committee recommends $370,706,000 for operating
expenses of the National Archives and Records Administration
for fiscal year 2014. This amount is $1,847,000 below the
fiscal year 2013 enacted level and the same as the budget
request.
The Committee's recommendation supports initiatives to
strengthen NARA's record management leadership role; address
archival storage needs; continue to develop, build, and expand
the IT infrastructure to conduct the business of the National
Declassification Center established in Executive Order 13526;
operate and maintain the Electronic Records Archive [ERA]; and
improve research room holdings protection.
The Committee notes that security of NARA's collections and
holdings has been identified as a material weakness by the
Archivist and cited as a management challenge by the Inspector
General. The Committee directs and expects NARA to institute,
maintain, and enforce effective inventory controls and adequate
levels of security within its facilities to reduce the risk of
loss, damage, or destruction of irreplaceable historic
documents and artifacts.
As the steward of an astronomical volume of temporary and
permanent agency records, the Committee strongly urges the
Archivist to continue to explore bar-coding and other
innovative alternatives for cataloging boxed materials
entrusted to NARA's care, institute enhanced quality controls,
regain accountability for the security of classified records in
its custody, and institute more stringent management controls
at the Washington National Records Center and any other
facilities in which NARA is the custodian of Federal records.
The Committee commends NARA's leadership in ensuring that
the Federal Government identifies and protects its records from
the time of their creation, so records are available to
operational staff at critical times and later preserved for
access to the public. The Committee acknowledges the August
2012 issuance of the Managing Government Records Directive to
establish a robust records management framework and actions to
support agency records management programs. The Committee is
dismayed that the percentage of Federal agencies achieving a
passing score for compliance in targeted areas of records
management is very low. The Committee is hopeful that the
issuance of the Directive will elevate the visibility and
importance of integrating records management planning and
programs into Federal agency routine business operations. The
Committee urges NARA to continue to explore ways to decrease
the risks to Federal records and improve agency records
management practices, through inspections, mandatory agency
self-assessments, training curricula including on-line courses
to reach a broader audience across the Federal Government, and
other compliance tools.
The Committee believes that providing reliable access to
electronic records far into the future, regardless of
advancements in technology, is of utmost importance. The
Committee strongly urges NARA, as it operates and maintains the
ERA, to ensure effective and efficient preservation, appraisal,
scheduling, and routine transfer of electronic records by
Federal agencies. The Committee expects NARA to prioritize its
efforts to accelerate user adoption of the ERA system,
including providing instructional guidance and training
materials.

OFFICE OF INSPECTOR GENERAL

Appropriations, 2013\1\................................. $4,092,000
Budget estimate, 2014................................... 4,130,000
Committee recommendation................................ 4,130,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The mission of the Office of Inspector General [OIG] is to
ensure that NARA safeguards and preserves the records of our
Government while providing the American people with access to
the essential documentation of their rights and the actions of
their Government. The OIG accomplishes this by combating fraud,
waste, and abuse through high-quality objective audits and
investigations covering all aspects of agency operations at 44
facilities nationwide. The OIG also serves as an independent,
internal advocate for the economy, efficiency, and
effectiveness of NARA and its operations.

COMMITTEE RECOMMENDATION

The Committee recommends $4,130,000 for the Office of
Inspector General [OIG]. This amount is $38,000 above the
fiscal year 2013 enacted level and the same as the budget
request. The Committee supports a distinct account for the OIG
in order to clearly identify the resources necessary to staff
and operate the expanding mission-critical oversight and
accountability functions performed by the OIG to ensure
responsible NARA stewardship over public records.

REPAIRS AND RESTORATION

Appropriations, 2013\1\................................. $9,082,000
Budget estimate, 2014................................... 8,000,000
Committee recommendation................................ 8,000,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

This account provides for the repair, alteration, and
improvement of Archives facilities and Presidential libraries
nationwide, and provides adequate storage for holdings. Funding
made available will better enable NARA to maintain its
facilities in proper condition for public visitors,
researchers, and NARA employees, and also maintain the
structural integrity of the buildings.

COMMITTEE RECOMMENDATION

The Committee recommends $8,000,000 for the repairs and
restoration account. This amount is $1,082,000 below the fiscal
year 2013 enacted level and the same as the budget request.
The Committee appreciates NARA's submission of an update of
its comprehensive capital needs assessment for its entire
infrastructure of Presidential libraries and records
facilities, as part of the fiscal year 2014 budget submission
and urges NARA to include an appropriate level of funding for
repair of valuable historic Presidential libraries in the
fiscal year 2015 budget request.

NATIONAL HISTORICAL PUBLICATIONS AND RECORDS COMMISSION

GRANTS PROGRAM

Appropriations, 2013\1\................................. $4,990,000
Budget estimate, 2014................................... 3,000,000
Committee recommendation................................ 5,000,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The National Historical Publications and Records Commission
[NHPRC] provides grants nationwide to preserve and publish
records that document American history. Administered within the
National Archives, which preserves Federal records, NHPRC helps
State, local, and private institutions preserve non-Federal
records, helps publish the papers of major figures in American
history, and helps archivists and records managers improve
their techniques, training, and ability to serve a range of
information users. Since 1964, the NHPRC has funded nearly
5,000 projects at local government archives, colleges and
universities, and other nonprofit institutions to facilitate
use of public records and other collections by scholars, family
and local historians, journalists, documentary filmmakers, and
many others.

COMMITTEE RECOMMENDATION

The Committee recommends $5,000,000 for the National
Historical Publications and Records Commission [NHPRC]. This
amount is $10,000 above the fiscal year 2013 enacted level and
$2,000,000 above the budget request.
The Committee supports the central role the NHPRC program
plays in the preservation and dissemination of the Nation's
documentary heritage and its success in leveraging private
sector contributions.
The Committee notes that the funding provided will enable
NARA, through the NHPRC, to undertake a variety of initiatives,
including advancing archives preservation, access, and
digitization projects within the interlocking repositories of
historic records and hidden collections; ensuring public access
to some of the most important historical resources that are
maintained outside of Federal repositories; and digitizing
nationally significant historic records collections to
facilitate round-the-clock Internet availability.

National Credit Union Administration

central liquidity facility

program description

The National Credit Union Administration [NCUA] Central
Liquidity Facility [CLF] was created by the National Credit
Union Central Liquidity Facility Act (Public Law 95-630). The
CLF is a mixed-ownership Government corporation managed by the
National Credit Union Administration Board and owned by its
member credit unions.
The purpose of the CLF is to improve the general financial
stability of credit unions by meeting their seasonal and
emergency liquidity needs and thereby encourage savings,
support consumer and mortgage lending, and provide basic
financial resources to all segments of the economy. To become
eligible for CLF services, credit unions invest in the capital
stock of the CLF, and the facility uses the proceeds of such
investments and the proceeds of borrowed funds to meet the
liquidity needs of credit unions. The primary sources of funds
for the CLF are stock subscriptions from credit unions and
borrowings.
The CLF may borrow funds from any source, with the amount
of borrowing limited to 12 times the amount of subscribed
capital stock and surplus.
Loans are available to meet short-term requirements for
funds attributable to emergency outflows from managerial
difficulties or local economic downturns. Seasonal credit is
also provided to accommodate fluctuations caused by cyclical
changes in such areas as agriculture, education, and retail
business. Loans can also be made to offset protracted credit
problems caused by factors such as regional economic decline.

committee recommendation

The Committee recommends that lending through the CLF be
limited to the maximum level provided for by section
307(a)(4)(A) of the Federal Credit Union Act. This limitation
provides the NCUA maximum flexibility to assist with credit
unions' financial liquidity. The Committee also recommends the
budget request of limiting administrative expenses for the CLF
to $1,250,000 in fiscal year 2014.

COMMUNITY DEVELOPMENT REVOLVING LOAN FUND

Appropriations, 2013\1\................................. $1,245,000
Budget estimate, 2014................................... 1,128,000
Committee recommendation................................ 1,128,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Community Development Revolving Loan Fund Program
[CDRLF] was established in 1979 to assist officially designated
``low-income'' credit unions in providing basic financial
services to low-income communities. Low-interest loans and
deposits are made available to assist these credit unions.
Loans or deposits are normally repaid in 5 years, although
shorter repayment periods may be considered. Technical
assistance grants [TAGs] are also available to low-income
credit unions for improving operations as well as addressing
safety and soundness issues. Credit unions use TAG funds for
specific initiatives, including taxpayer assistance, financial
education, home ownership initiatives, and training assistance.

COMMITTEE RECOMMENDATION

The Committee recommends $1,128,000 for technical
assistance grants to community development credit unions. This
funding level is equal to the budget request and $117,000 below
the fiscal year 2013 enacted level. The Committee expects the
CDRLF to continue making loans from available funds derived
from repaid loans and interest earned on previous loans to
designated credit unions.
The Committee supports NCUA's outreach efforts to
underserved rural and urban communities across America through
technical assistance grants provided within CDRLF. The
Committee encourages NCUA to continue its efforts to provide
financial education, particularly regarding consumer credit and
home mortgages, and to provide alternatives to predatory
lending services through targeted technical assistance grants
and support.

Office of Government Ethics

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $18,627,000
Budget estimate, 2014................................... 15,325,000
Committee recommendation................................ 15,325,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

The Office of Government Ethics [OGE], a separate agency
within the executive branch, was established by the Ethics in
Government Act of 1978 (Public Law 95-521). The OGE is charged
by law to provide overall direction of executive branch
policies designed to prevent conflicts of interest and ensure
high ethical standards for executive branch employers. The OGE
carries out these responsibilities by promulgating and
maintaining enforceable standards of ethical conduct for nearly
4 million civilian employees and uniformed service members in
more than 130 executive branch agencies and the White House;
overseeing a financial disclosure system that reaches 28,000
public and over 325,000 confidential filers; providing direct
education and training products to 5,700 ethics officials;
conducting outreach to the general public, the private sector,
and civil society; and sharing good practices with and
providing technical assistance to State, local, and foreign
governments and international organizations.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $15,325,000
for salaries and expenses of the OGE in fiscal year 2014. This
amount is $3,302,000 below the fiscal year 2013 enacted level
and the same as the budget request.
The Committee's recommendation supports OGE's mission-
critical work to foster high ethical standards for executive
branch employees, prevent conflicts of interest, and strengthen
the public's confidence that the Government's business is
conducted with impartiality and integrity. The OGE has
designated three priorities to advance these objectives in
fiscal year 2014: (1) interpret, implement, and advise on
ethics laws, policies, and program management; (2) harness
technology to promote transparency, education, and oversight;
and (3) ensure effective communications both within the Federal
Government and with outside audiences to enhance understanding
of ethics laws, policies, and program management, and promote
transparency, education, and oversight.
Under Public Law 113-6, Congress provided an additional
$5,000,000 above the fiscal year 2012 funding of $13,664,000,
to remain available until expended, to help the OGE comply with
its statutory mandates under the Stop Trading on Congressional
Knowledge [STOCK] Act of 2012 (Public Law 112-105). The STOCK
Act established new requirements for executive branch ethics
programs, ethics officials, and the hundreds of thousands of
Federal employees who currently file either public or
confidential financial disclosure reports pursuant to the
Ethics in Government Act.
Implementation of the STOCK Act imposes pivotal additional
responsibilities on the OGE, most notably the mandate to
develop, deploy, operate, and maintain automated systems to
provide electronic filing for 28,000 public financial
disclosure filers across the executive branch. The Committee's
recommended funding supports the requested additional
$1,660,000 to support the technical and staffing requirements
for the systems as well as other STOCK Act mandates, including
submission of periodic transaction reports by filers,
compliance with specific notification and recusal restrictions
regarding employment negotiations or agreements, and enhanced
disclosure requirements for certain filers.
The Committee directs OGE officials to keep the Committee
regularly informed about developments and progress related to
its STOCK Act implementation activities.

Office of Personnel Management

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF TRUST FUNDS)

Appropriations, 2013\1\................................. $97,578,000
Budget estimate, 2014................................... 95,757,000
Committee recommendation................................ 95,757,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

The Office of Personnel Management [OPM] was established by
Public Law 95-454, the Civil Service Reform Act of 1978,
enacted on October 13, 1978. OPM is responsible for management
of Federal human resources policy and oversight of the merit
civil service system. Although individual agencies are largely
responsible for personnel operations, OPM provides a
Governmentwide framework for human resources policy, advises
and assists agencies (often on a reimbursable basis) with
workforce planning and personnel matters, and ensures that
agency operations are consistent with requirements of law on
issues such as veterans preference and merit system compliance.
OPM oversees examination of applicants for employment in the
competitive service; issues regulations and policies on
recruitment, hiring, classification and pay, training, and
other aspects of personnel management; and manages the process
for personnel security and background checks for suitability
and national security clearances. OPM is also responsible for
administering the retirement, health benefits, and life
insurance programs affecting most Federal employees, retired
Federal employees, and their families and survivors.

COMMITTEE RECOMMENDATION

The Committee recommends a general fund appropriation of
$95,757,000 for the salaries and expenses of the Office of
Personnel Management. This amount is $1,821,000 less than the
fiscal year 2013 level and the same as the budget request.
The recommendation includes the requested funding for the
Enterprise Human Resources Integration project, the Human
Resources Line of Business project, and the workforce
acquisition initiative.
Retirement Processing.--The Committee recognizes OPM's
progress in addressing the backlog of retirement claims. OPM is
directed to continue to inform the Committee of developments to
improve processing rates.
Retirement Modernization.--The Committee directs OPM to
continue providing reports and status update briefings, as
developments and milestones occur, and future plans are
determined.

limitation

(TRANSFER OF TRUST FUNDS)

Limitation, 2013\1\..................................... $112,291,000
Budget estimate, 2014................................... 118,578,000
Committee recommendation................................ 118,578,000

PROGRAM DESCRIPTION

These funds will be transferred from the appropriate trust
funds of the Office of Personnel Management to cover
administrative expenses for the retirement and insurance
programs, including the cost of automating the retirement
recordkeeping systems.

COMMITTEE RECOMMENDATION

The Committee recommends a limitation of $118,578,000 which
is $6,287,000 more than the fiscal year 2013 level and the same
as the budget request.

OFFICE OF INSPECTOR GENERAL

salaries and expenses

(INCLUDING TRANSFER OF TRUST FUNDS)

Appropriations, 2013\1\................................. $3,136,000
Budget estimate, 2014................................... 4,684,000
Committee recommendation................................ 4,684,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

The Office of Inspector General is charged with
establishing policies for conducting and coordinating efforts
which promote economy, efficiency, and integrity in the Office
of Personnel Management's activities which prevent and detect
fraud, waste, and mismanagement in the agency's programs.
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 agency 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,
healthcare providers, and insurance subscribers. The
investigative function provides for the detection and
investigation of improper and illegal activities involving
programs, personnel, and operations. Administrative sanctions
debar from participation in the health insurance program those
healthcare providers whose conduct may pose a threat to the
financial integrity of the program itself or to the well-being
of insurance program enrollees.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $4,684,000 for
salaries and expenses of the Office of Inspector General in
fiscal year 2014. This amount is $1,548,000 more than the
fiscal year 2013 enacted level and the same as the budget
request.

(LIMITATION ON TRANSFER FROM TRUST FUNDS)

Limitation, 2013\1\..................................... $21,132,000
Budget estimate, 2014................................... 21,340,000
Committee recommendation................................ 21,340,000

COMMITTEE RECOMMENDATION

The Committee recommends a limitation on transfers from the
trust funds in support of the Office of Inspector General [OIG]
activities totaling $21,340,000 for fiscal year 2014. This
amount is $208,000 more than the fiscal year 2013 enacted
level, and the same as the budget request. The Committee
includes a provision that funds OIG oversight of the OPM
Revolving Fund. For fiscal year 2014, the oversight funding
equals one-third of 1 percent of the Revolving Fund budget
estimate.

government payment for annuitants, employees health benefits

Appropriations, 2013\1\................................. $10,818,000,000
Budget estimate, 2014................................... 11,404,000,000
Committee recommendation................................ 11,404,000,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

This appropriation covers the Government's share of the
cost of health insurance for annuitants covered by the Federal
Employees Health Benefits Program and the Retired Federal
Employees Health Benefits Act of 1960, as well as
administrative expenses incurred by OPM for these programs.

COMMITTEE RECOMMENDATION

The Committee recommends a mandatory appropriation of
$11,404,000,000 for Government payments for annuitants,
employees health benefits.

government payment for annuitants, employee life insurance

Appropriations, 2013\1\................................. $51,000,000
Budget estimate, 2014................................... 53,000,000
Committee recommendation................................ 53,000,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

Public Law 96-427, the Federal Employees' Group Life
Insurance Act of 1980, requires that all employees under the
age of 65 who separate from the Federal Government for purposes
of retirement on or after January 1, 1990, continue to make
contributions toward their basic life insurance coverage after
retirement until they reach the age of 65. These retirees will
contribute two-thirds of the cost of the basic life insurance
premium, identical to the amount contributed by active Federal
employees for basic life insurance coverage. As with the active
Federal employees, the Government is required to contribute
one-third of the cost of the premium for retirees' basic
coverage. OPM, acting as the payroll office on behalf of
Federal retirees, has requested, and the Committee has
provided, the funding necessary to make the required Government
contribution associated with annuitants' postretirement life
insurance coverage.

COMMITTEE RECOMMENDATION

The Committee recommends a mandatory appropriation of
$53,000,000 for the Government payment for annuitants, employee
life insurance.

payment to civil service retirement and disability fund

Appropriations, 2013\1\................................. $9,780,000,000
Budget estimate, 2014................................... 9,178,000,000
Committee recommendation................................ 9,178,000,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

The civil service retirement and disability fund was
established in 1920 to administer the financing and payment of
annuities to retired Federal employees and their survivors. The
fund covers the operation of the Civil Service Retirement
System and the Federal Employees' Retirement System.
This appropriation provides for the Government's share of
retirement costs, transfers of interest on the unfunded
liability and annuity disbursements attributable to military
service, and survivor annuities to eligible former spouses of
some annuitants who did not elect survivor coverage.

COMMITTEE RECOMMENDATION

The Committee recommends a mandatory appropriation of
$9,178,000,000 for payment to the civil service retirement and
disability fund.

Office of Special Counsel

salaries and expenses

Appropriations, 2013\1\................................. $18,934,000
Budget estimate, 2014................................... 20,639,000
Committee recommendation................................ 20,639,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

The U.S. Office of Special Counsel [OSC] provides a safe
channel for Federal employees to report waste, fraud, abuse,
and threats to public health and safety.
The OSC was first established on January 1, 1979. From 1979
until 1989, it operated as an autonomous investigative and
prosecutorial arm of the Merit Systems Protection Board [MSPB].
In 1989, Congress enacted the Whistleblower Protection Act
(Public Law 101-12), which made OSC an independent agency
within the executive branch. In 1994, the Uniformed Services
Employment and Reemployment Rights Act [USERRA] (Public Law
103-353) became law. It defined employment-related rights of
persons in connection with military service, prohibited
discrimination against them because of that service, and gave
OSC new authority to pursue remedies for violations by Federal
agencies.
Enactment of the Whistleblower Protection Enhancement Act
(Public Law 112-199) in November 2012 significantly expanded
the jurisdiction of the OSC and the types of cases the OSC is
required by law to investigate.
The OSC continues to experience significant growth in its
caseload. In fiscal year 2012, the new case intake volume
reached nearly 4,800, representing an increase over record
levels of cases presented in the previous fiscal year. Caseload
size trends reflect growth of 68 percent since fiscal year
2008. Areas of significant growth included prohibited personnel
practice complaints as well as USERRA cases, which nearly
doubled in volume with the launch of a new 3-year demonstration
project to help further protect veteran's employment rights as
authorized under the Veterans' Benefits Act of 2010 (Public Law
111-275). Hatch Act cases and whistleblower disclosure matters
continued at elevated levels in fiscal year 2012.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $20,639,000
for the OSC. This amount is $1,705,000 above the fiscal year
2013 enacted level and the same as the budget request.
The Committee acknowledges that the OSC continues to
experience dramatic growth in its caseload and rapid increases
in requests for its services, although staffing levels have
remained relatively unchanged. The Committee commends OSC's
efforts to institute significant cost-savings measures, achieve
a 52-percent increase in productivity since fiscal year 2008,
realize a 3-percent reduction in costs per case, and vastly
improve its ability to obtain favorable corrective outcomes.
The Committee's recommended level will help ensure that the OSC
can manage its escalating workload and discharge its mission
without incurring backlogs.

Postal Regulatory Commission

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2013\1\................................. $14,275,000
Budget estimate, 2014................................... 14,304,000
Committee recommendation................................ 14,304,000

PROGRAM DESCRIPTION

The Postal Regulatory Commission [PRC] is an independent
agency that has exercised regulatory oversight over the United
States Postal Service since its creation by the Postal
Reorganization Act of 1970. For over 3 decades, that oversight
consisted primarily of conducting public, on-the-record
hearings concerning proposed rates, mail classification, and
major service changes, and recommended decisions for action to
the Postal Service Board of Governors. The mission of the PRC
is to ensure transparency and accountability of the United
States Postal Service and foster a vital and efficient
universal mail system.
The Postal Accountability and Enhancement Act (Public Law
109-435) assigned significant responsibilities to the PRC.
These enhanced authorities include providing regulatory
oversight of the pricing of Postal Service products and
services, ensuring Postal Service transparency and
accountability, consulting on delivery service standards and
performance measures, consulting on international postal
policies, preventing cross-subsidization or other
anticompetitive postal practices, and serving as a forum to act
on complaints with postal products and services. The PRC
provides leadership and recommends policies that foster a
robust and viable postal system.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation, out of the
Postal Fund, of $14,304,000 for the Postal Regulatory
Commission. This amount is $29,000 above the fiscal year 2013
enacted level and the same as the budget request. The funds
will support 77 FTEs and enable the PRC to meet its mission of
ensuring transparency and accountability in postal operations,
services, and finances.
The Committee notes that in fiscal year 2014, the PRC will
be engaged in issuing advisory opinions and hearing cases of
major national policy import as the Postal Service adjusts to
changing mail usage; reviewing efforts of the Postal Service to
restructure its network; overseeing the exercise of pricing
flexibility; and fully evaluating the merits of new ideas for
innovative products and services that could boost postal
revenue, provide greater efficiencies, and produce cost
savings. With the Postal Service's closure or consolidation of
potentially hundreds of mail processing facilities and a
significant number of postal retail facilities, the Committee
understands that the number of appeals to the PRC and the
volume of documents per docket as a result of these actions can
be expected to grow exponentially over the next few years.
The Committee appreciates the vital statutory role the PRC
plays in the Universal Postal Union, a specialized agency of
the United Nations, to support the Secretary of State in
foreign policy related to international postal services,
including treaties and conventions. The Committee urges the
PRC, which is funded from the Postal Service Fund which is
derived directly from postal rates and fees paid by postal
customers, to continue to optimize efficient use of its
resources, including exercising prudent decisionmaking and
strict accountability for its necessary travel expenditures.

Privacy and Civil Liberties Oversight Board

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $898,000
Budget estimate, 2014................................... 3,100,000
Committee recommendation................................ 4,100,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

Recommended by the July 22, 2004 report of the National
Commission on Terrorist Attacks Upon the United States (the 9/
11 Commission), the Privacy and Civil Liberties Oversight Board
[PCLOB] was originally established through the Intelligence
Reform and Terrorism Prevention Act of 2004 (Public Law 108-
458). The PCLOB was made a component of the White House Office
within the Executive Office of the President.
Under the Implementing Recommendations of the 9/11
Commission Act of 2007 (Public Law 110-53), the PCLOB was
reconstituted as an independent agency within the executive
branch. The dual mission of the PCLOB is to: (1) analyze and
review actions the executive branch takes to protect the Nation
from terrorism, ensuring that the need for such actions is
balanced with the need to protect privacy and civil liberties;
and (2) ensure that liberty concerns are appropriately
considered in the development and implementation of laws,
regulations, and policies related to efforts to protect the
Nation against terrorism.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $4,100,000 for
the PCLOB. This amount is $3,202,000 above the fiscal year 2013
enacted level and $1,000,000 above the budget request.
The Committee strongly supports the mission of the PCLOB.
The Committee notes that the original Board ceased operations
on January 30, 2008, with the intention that a new, more
independent Board would be instituted in its place.
The Committee is pleased that after over 5 years of
dormancy, the PCLOB has been reconstituted and that, as of May
7, 2013, has a confirmed full-time chairman. The Committee
acknowledges the substantial array of administrative tasks
coincident to launching the Board as an independent agency,
including securing work space, recruiting staff expertise,
acquiring information technology, and implementing a strategic
work plan and performance measures to fulfill its unique
responsibilities. The Committee is cognizant that, in light of
recent developments raising public concerns about the adequacy
of privacy and civil liberties protections, the role and
responsibilities of the Board will be of particular
significance. The Committee commends the Board for hosting a
recent public workshop with invited experts, academics, and
advocacy organizations regarding certain surveillance programs.
The Committee recommends enhanced funding of an additional
$1,000,000 above the budget request in recognition of the
critical importance that the Board achieve full operational
capability without delay and that the resources available will
permit the PCLOB to immediately undertake robust activities to
accomplish its mission.

Recovery Accountability and Transparency Board

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $28,293,000
Budget estimate, 2014................................... 12,500,000
Committee recommendation................................ 20,000,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
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PROGRAM DESCRIPTION

The Recovery Accountability and Transparency Board
[Recovery Board] was established by the American Recovery and
Reinvestment Act of 2009 [Recovery Act] to ensure
accountability and transparency in the expenditure of Recovery
Act funds and to minimize fraud, waste, and mismanagement. The
Recovery's Board's responsibilities under the Recovery Act will
sunset on September 30, 2013. The Disaster Relief
Appropriations Act of 2013 required the Recovery Board to
detect and remediate waste, fraud, and abuse of Federal
spending related to the impact of Hurricane Sandy. The
Recovery's Board's responsibilities under the Disaster Relief
Appropriations Act will sunset on September 30, 2015.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $20,000,000
for the Recovery Board. The recommendation is $8,293,000 below
the fiscal year 2013 enacted level. The recommendation is
$7,500,000 above the budget request to ensure that the Recovery
Board has sufficient resources to carry out its
responsibilities on spending related to Hurricane Sandy.

Securities and Exchange Commission

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $1,321,000,000
Budget estimate, 2014................................... 1,674,000,000
Committee recommendation................................ 1,674,000,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Securities and Exchange Commission [SEC] is an
independent agency responsible for administering many of the
Nation's laws regulating the areas of securities and finance.
The mission of the SEC is to administer and enforce Federal
securities laws in order to protect investors, maintain fair,
honest, and efficient markets, and promote capital formation.
This includes ensuring full disclosure of financial
information, regulating the Nation's securities markets, and
preventing and policing fraud and malpractice in the securities
and financial markets. The strength of the American economy and
our Nation's financial markets is dependent upon investors'
confidence in the financial disclosures and statements released
by publicly traded companies.
As the investor's advocate, the SEC has responsibility for
approximately 35,000 entities, including direct oversight of
about 11,000 investment advisers, 9,700 mutual funds and
exchange traded funds, and close to 4,600 broker-dealers with
more than 160,000 branch offices. It is also responsible for
reviewing the disclosures and financial statements of more than
9,500 reporting companies, overseeing approximately 460
transfer agents, 17 national securities exchanges, eight active
clearing agencies, and 10 nationally recognized statistical
rating organizations, as well as the Public Company Accounting
Oversight Board, the Financial Industry Regulatory Authority,
the Municipal Securities Rulemaking Board, the Securities
Investor Protection Corporation, and the Financial Accounting
Standards Board. The SEC also acquired new or expanded
oversight responsibilities with respect to the derivatives
markets, hedge fund and other private fund advisers, municipal
advisors, credit rating agencies, clearing agencies, and
entities registering with the SEC in connection with the
security-based swap regulatory regime.
The enactment of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank Act) (Public Law 111-203)
added significantly to SEC's responsibilities, including
bringing transparency and accountability to the over-the-
counter derivatives market; registering and overseeing hedge
fund and private equity advisers; enhanced supervision of
nationally recognized statistical rating organizations and
clearing agencies; heightened regulation of asset-backed
securities; and creation of a new whistleblower program.
With the enactment of the Jumpstart Our Business Startups
[JOBS] Act (Public Law 112-106), the SEC has additional
responsibilities to undertake various initiatives, including
rulemaking and studies touching on capital formation,
disclosure and registration requirements, and implementing
rules and methods relating to a new exemption that will allow
crowdfunding.

COMMITTEE RECOMMENDATION

The Committee recommends a total budget (obligational)
authority of $1,674,000,000 for the salaries and expenses of
the SEC, to be fully derived from $1,674,000,000 in fee
collections. This total funding level is $353,000,000 above the
fiscal year 2013 enacted level and the same as the budget
request.
The Committee's recommended funding increase is expected to
allow the SEC to more aggressively police the securities
markets through examinations and enforcement actions. The
resources will help enhance risk-based oversight of the
investment management industry, expand inspections of credit
rating agencies, and permit the SEC to conduct more
comprehensive examinations, reach a broader universe of the
entities it regulates, and improve its ability to uncover and
prosecute fraud.
In addition, the recommended increase supports urgent,
critical investments in information technology upgrades so that
SEC staff are equipped with cutting edge automation support
tools to enhance their ability to promptly handle tips,
complaints, and referrals as well as to better identify
emerging risks using improved surveillance tools. The Committee
expects the SEC to implement key controls to effectively
safeguard the confidentiality, integrity, and availability of
its financial and sensitive information and systems.
The Committee strongly believes that fair and orderly
markets are essential to restore public confidence in and
bolster the integrity of our capital markets. The Committee
emphasizes that with this significant recommended funding
increase comes a concomitant responsibility on the part of the
SEC to aggressively safeguard the investing public. The SEC
must be vigilant in its enforcement of securities laws, and
failures to properly investigate and take appropriate action
will not be condoned.
Fee Offset Nature of Account.--Pursuant to the Dodd-Frank
Act, transaction fees receipts are treated as offsetting
collections equal to the amount of the appropriation. In
addition, an ``SEC Reserve Fund'' is designated for necessary
functions as determined by the SEC and drawn from registration
fee receipts. The Committee reminds the SEC of its obligation
to notify Congress of the date, amount, and purpose of any
obligation from the Fund within 10 days of such obligation.
Spending Plan.--The Committee directs the SEC to submit,
within 30 days of enactment, a detailed spending plan for the
allocation of appropriated funds displayed by discrete program,
project, and activity, including staffing projections,
specifying both FTEs and contractors, and planned investments
in information technology.
Regulatory Reform Efforts.--While recognizing the many
challenges facing the SEC, the Committee strongly urges the SEC
to act expeditiously to adopt strong and effective regulatory
proposals to reform the financial system, consistent with
Congress's intent in enacting the Dodd-Frank Act and the JOBS
Act.
Use of Independent Leasing Authority.--The Committee
understands that the SEC is pursuing corrective measures to
address the serious problems identified in the October 3, 2011,
GAO Decision B-322160 relating to the agency's exercise of its
independent leasing authority and adherence to budgetary
obligation recording practices for multiyear contracts over the
last 20 years. The Committee directs that, as part of the
spending plan to be submitted to the Committee no later than 30
days following enactment of this act, the SEC shall include a
detailed remedial action plan and timetable, reviewed before
its submission by the Inspector General, describing how the SEC
intends to rectify the Antideficiency Act violation and what
procedures it has instituted to ensure compliance with the
recording statute (31 U.S.C. 1501(a)(1)).
Regulatory Coordination and Harmonization.--The Committee
stresses that with the enactment of the Dodd-Frank Act, it is
all the more critical for the SEC, in collaboration with the
CFTC, to ensure optimum harmonization in executing the
respective oversight responsibilities of each agency with
respect to over-the-counter derivative products. The Committee
expects the SEC and the CFTC to limit, to the greatest extent
possible, inconsistent regulation of similar products and
entities that could lead to opportunities for regulatory
arbitrage. The Committee continues to support the use of funds
to support the Joint SEC-CFTC Advisory Committee.
Money Market Mutual Funds.--Given the role that money
market mutual funds play in short-term financing for State and
local governments, the Committee is concerned that a floating
net asset value will alter the nature of money market mutual
funds, tighten capital availability, and increase costs. The
Committee urges the SEC, as it continues to examine proposals
to reform money market mutual funds, to engage with State and
local government officials to address their concerns.
Disclosure to Investors.--The Committee remains concerned
that American investors may be unwittingly investing in
companies or organizations with ties to countries that sponsor
terrorism or are linked to human rights violations. The
Committee believes that a company's association with sponsors
of terrorism and human rights abuses, no matter how large or
small, can have a materially adverse result on a public
company's operations, financial condition, earnings, and stock
prices, all of which can negatively affect the value of an
investment. Investors and consumers also have a reasonable
right to know what activities their investments or purchases
may be directly or indirectly supporting.
In order to protect American investors' savings and to
disclose these business relationships to investors, an Office
of Global Security Risk was established within the Division of
Corporation Finance. The Committee notes that under the Dodd-
Frank Act, public companies are required to provide disclosure
to the SEC in matters involving conflict minerals, extractive
industries, and mining safety matters. The Committee
understands that the SEC will be implementing the requirements,
as directed, in the coming months. The Committee expects the
work of the Office to remain a high priority during fiscal year
2014 and directs the SEC to continue to submit quarterly
reports on its activities.
The Committee is concerned that current SEC regulations
leave broad discretion to companies to decide if disclosure of
their activities is required with respect to business interests
in or with a state sponsor of terrorism. Companies are only
required to make disclosures in cases where the companies
judges the information is ``material'' to investors or is
necessary to ensure a required statement is not misleading. In
November 2007, the SEC issued a concept release seeking comment
about whether to develop a new mechanism to facilitate greater
access to companies' disclosures concerning their business
activities in or with state sponsors of terrorism. The comment
period ended on January 22, 2008, and the SEC has taken no
action since that time.
The Committee believes that business conducted by a
publicly traded company that could subject such company to
sanctions should be considered material and disclosed.
Therefore, the Committee directs the Commission to issue final
rules that require each issuer to disclose activities that may
subject it to sanctions under section 5 of the Iran Sanctions
Act of 1996.
Climate Change Disclosure.--The Committee directs the SEC
to submit to the Committee, no later than 90 days following
enactment of this act, an updated staff report focused on the
quality, specificity, and thoroughness of disclosure related to
climate change, with particular attention to the adequacy of
disclosure by large companies in key sectors. The Committee
expects that the report fully describe the status of SEC's own
initiatives to carry out the February 2010 guidance (75 Fed.
Reg. 6290) as well as efforts the SEC will implement in fiscal
year 2014. The Committee strongly urges that, during fiscal
year 2014, the SEC convene the public roundtable on climate
change disclosure as contemplated in the 2010 guidance.
JOBS Act Studies.--The Committee directs the SEC to study
and submit a report to the Committee, no later than 2 years
following enactment of this Act, on the impact of the JOBS Act
on capital formation, including but not limited to: (1) the
amount of capital raised under the new offering methods in the
JOBS Act; (2) the number of issuances and amount raised between
registered and unregistered offerings; (3) the number of
placement agents and brokers facilitating the new offering
methods; (4) the number of Federal, State, other actions taken
against issuers with respect to the new offering venues; and
(5) the costs associated with raising capital under the new
rules in comparison to the prior rules.
The Committee is concerned about press reports of shell
companies attempting to qualify as emerging growth companies in
order to evade securities laws to which they would otherwise be
subject, and directs the SEC to closely monitor the situation.
The Committee directs the SEC to study and submit a report
to the Committee, no later than 1 year following enactment of
this act, on whether and how the definition of the term ``held
of record'' in section 12(g)(5) of the Securities Exchange Act
of 1934 (15 U.S.C. 781(g)(5)) should be revised.

Selective Service System

SALARIES AND EXPENSES

Appropriations, 2013\1\................................. $23,936,000
Budget estimate, 2014................................... 24,134,000
Committee recommendation................................ 22,900,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Selective Service System is an independent Federal
agency, operating with permanent authorization under the
Military Selective Service Act (50 U.S.C. App. 451 et seq.).
The agency is not part of the Department of Defense, but its
basic mission is to be prepared to supply manpower to the Armed
Forces adequate to ensure the security of the United States
during a time of national emergency. Since 1973, the Armed
Forces have relied on volunteers to fill military manpower
requirements. However, the Selective Service System remains the
primary vehicle by which personnel will be brought into the
military if Congress and the President should authorize a
return to the draft.
In December 1987, Selective Service was tasked by law
(Public Law 100-180) to develop plans for a postmobilization
healthcare personnel delivery system capable of providing the
necessary critically skilled healthcare personnel to the Armed
Forces in time of emergency. An automated system capable of
handling mass registration and inductions is now complete,
together with necessary draft legislation, a draft Presidential
proclamation, prototype forms and letters, and other products.
These products will be available should the need arise. The
development of supplemental standby products, such as a
compliance system for healthcare personnel, continues using
very limited existing resources.

committee recommendation

The Committee recommends an appropriation of $22,900,000
for the Selective Service System. This amount is $1,036,000
below the fiscal year 2013 enacted level and $1,234,000 below
the budget request.

Small Business Administration

Appropriations, 2013\1\\2\.............................. $1,847,180,000
Budget estimate, 2014\3\................................ 968,838,000
Committee recommendation\3\............................. 949,238,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
\2\Includes emergency funding of $804,000,000 in the Disaster Relief
Appropriations Act, 2013 (division A of Public Law 113-2).
\3\Includes $158,650,000 in disaster relief funding pursuant to the
Balanced Budget and Emergency Deficit Control Act of 1985.

PROGRAM DESCRIPTION

The Small Business Administration [SBA] provides American
entrepreneurs access to capital, Federal contracting
opportunities, and entrepreneurial education in order to grow
businesses and create jobs. SBA also provides disaster
assistance for businesses of all sizes, non-profit
organizations, homeowners, and renters.

COMMITTEE RECOMMENDATION

The Committee recommendation provides $949,238,000 for the
Small Business Administration [SBA]. The recommendation is
$897,942,000 below the fiscal year 2013 enacted level, which
included $804,000,000 in emergency funding, and $19,600,000
below the budget request. The recommendation includes
$158,650,000 for the Disaster Loans Program Account designated
by Congress as disaster relief pursuant to the Balanced Budget
and Emergency Deficit Control Act of 1985. Funding is
distributed among the SBA appropriation accounts as described
below.

ENTREPRENEURIAL DEVELOPMENT PROGRAMS

PROGRAM DESCRIPTION

SBA's Entrepreneurial Development Programs support non-
credit business assistance to entrepreneurs. The appropriation
includes funding for a vast network of resource partners
located throughout the Nation, including Small Business
Development Centers, Women's Business Centers, SCORE
(previously Service Corps of Retired Executives) chapters, and
Veterans Business Outreach centers. This resource network and
several other SBA programs provide training, counseling, and
technical assistance to entrepreneurs.
The ``Entrepreneurial Development Programs'' appropriation
is a new appropriation recommended by the Committee for fiscal
year 2014. The appropriation provides funding for non-credit
business assistance programs previously funded under the
appropriation for ``Salaries and Expenses.''

COMMITTEE RECOMMENDATION

The Committee recommendation provides $211,490,000 for the
SBA Entrepreneurial Development Programs. Both the fiscal year
2013 enacted level and the budget request included funding for
SBA's Entrepreneurial Development Programs within the Salaries
and Expenses appropriation. After adjusting for the recommended
changes to the appropriations accounts, the recommendation
represents an increase of $19,487,000 above the fiscal year
2013 enacted level and an increase of $1,150,000 above the
budget request.
The Committee recommendations, by program, are displayed in
the following table:

ENTREPRENEURIAL DEVELOPMENT PROGRAMS
[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal year Fiscal year
2013 2014 budget Committee
enacted\1\ estimate recommendation
----------------------------------------------------------------------------------------------------------------
Small Business Development Centers.............................. 112,275 104,680 114,750
SCORE........................................................... 6,986 6,520 7,140
Women's Business Centers........................................ 13,972 13,050 14,000
Women's Business Council........................................ 996 900 1,000
Microloan Technical Assistance.................................. 19,960 19,850 20,000
Veterans Business Outreach Centers.............................. 2,495 2,500 2,500
PRIME........................................................... 3,493 .............. ..............
Native American Outreach........................................ 1,248 1,050 2,000
7(j) Technical Assistance....................................... 3,094 2,790 3,100
HUBZone......................................................... 2,495 2,000 2,000
Regional Innovation Clusters.................................... 4,990 5,000 5,000
Disaster Recovery\2\............................................ 19,960 .............. ..............
Entrepreneurial Education and Growth Accelerators............... .............. 45,000 15,000
Boots to Business............................................... .............. 7,000 5,000
State Trade and Export Promotion [STEP]......................... .............. .............. 20,000
-----------------------------------------------
Total, Entrepreneurial Development Programs............... 191,963 210,340 211,490
----------------------------------------------------------------------------------------------------------------
\1\Does not reflect the March 1, 2013, sequester of funds under Public Law 112-25.
\2\Emergency funding provided in the Disaster Relief Appropriations Act, 2013 (division A of Public Law 113-2).

The Committee directs that the amounts provided for SBA's
Entrepreneurial Development Programs, as specified in the table
above, shall be administered in the same manner as previous
years and shall not be reduced, reallocated, or reprogrammed to
provide additional funds for other programs, initiatives, or
activities.
Small Business Development Centers.--The Committee
continues to support the Small Business Development Center
[SBDC] Program and recommends $114,750,000 for fiscal year
2014, $2,475,000 above the fiscal year 2013 enacted level and
$10,070,000 above the budget request. The Committee is
disappointed that the budget request again proposes to reduce
support for the SBDC program. The SBDC network--which
encompasses over 900 service centers across the Nation--
provides management and technical assistance to an estimated
1.2 million small business owners and aspiring entrepreneurs
each year. In particular, the Committee finds that procurement
technical assistance provided at the local level by SBDCs is
valuable for connecting local small businesses to procurement
opportunities. As the economy struggles, SBDCs have reported a
significant increase in demand for their expertise as
businesses seek guidance on how to weather the economic
downturn and as newly unemployed Americans look for advice on
starting a small business as a new career path. Providing
support for SBDCs is more critical than ever as our economy
works to recover and grow. The Committee directs SBA to
prioritize the continuation of a robust SBDC network and to
partner with the network and SBA's other resource partners in
the implementation of all of SBA's lending, entrepreneurial
development, and procurement programs.
Microloan Program.--The Committee recommends $20,000,000
for grants to Microloan intermediaries under the Microloan
program for marketing, management, and technical assistance
provided to borrowers. An additional $4,600,000 is recommended
under the heading ``Business Loans Program Account'' to support
estimated lending volume of $25,000,000 under the Microloan
program.
Veterans Programs.--The Committee supports funding for
veterans programs and provides $2,500,000 for veterans business
outreach centers. When determining the allocation of the
funding, the Committee strongly encourages SBA to consider
centers with significant experience in conducting outreach to
veterans.
The Committee also recommends $5,000,0000 for SBA's Boots
to Business program to assist veterans seeking to start their
own businesses and create jobs. The Committee understands that
SBA plans for Boots to Business to be accessible to all
veterans and to become a standard portion of the curricula
offered at the revised Transition Assistance Program [TAP]
offered to service members, providing the option of
entrepreneurship training to all of our Nation's veterans.
Native American Outreach.--SBA's Office of Native American
Affairs works to ensure that American Indians, Alaska Natives,
and Native Hawaiians seeking to create, develop, and expand
small businesses have full access to SBA's entrepreneurial
development, lending, and procurement programs. The Committee
recommends $2,000,000 for SBA's Native American outreach
programs, an increase of $950,000 above the budget request and
$752,000 above the fiscal year 2013 enacted level. The
Committee directs SBA to submit a spending plan within 60 days
of enactment detailing planned spending on Native American
outreach programs in fiscal year 2014.
Regional Innovation Clusters.--The Committee recommends
$5,000,000 for SBA's regional innovation clusters. The
Committee encourages SBA to support nonprofit organizations
that provide business development services designed to
accelerate industry sectors built on regional assets under the
initiative.
State Trade and Export Program [STEP].--The Committee
recommends $20,000,000 for STEP for fiscal year 2014. STEP
provides grants to states to supplement their export promotion
programs with the goal of increasing the number of small
businesses that are exporting and raising the value of exports
for small businesses that are already exporting. States provide
matching funds for STEP grants and have used funds to support
trade missions, international marketing efforts, export
counseling, and export trade show exhibits. The recommendation
provides funding for the third and final year of the program,
as authorized by the Small Business Jobs Act of 2010.
Entrepreneurial Education and Growth Accelerators.--The
Committee recommends $15,000,000 for the entrepreneurial
education and growth accelerators programs requested by the
President. The recommendation will allow SBA to expand its
Entrepreneurial Education initiative, which provides intensive
training to small business owners with existing small
businesses that have completed the ``startup'' phase and are
facing common, solvable challenges to sustain and grow their
businesses. The recommendation will also allow SBA to provide
grants, under a competitive process, to universities and
private sector organizations to start a new or scale an
existing growth accelerator program to support startups with
high-growth potential. The Committee directs SBA to require $4
of matching funds for every $1 awarded under the growth
accelerator program.

SALARIES AND EXPENSES

Appropriations, 2013\1\\2\.............................. $436,513,000
Budget estimate, 2014................................... 485,923,000
Committee recommendation................................ 254,833,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
\2\Includes emergency funding of $20,000,000 in the Disaster Relief
Appropriations Act, 2013 (division A of Public Law 113-2).
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Salaries and Expenses appropriation provides for the
overall operating expenses of the SBA, including compensation
and benefits for staff located at headquarters, regional, and
district offices, rent and other agency-wide costs, and
operating costs for program offices, including the Office of
Capital Access, Office of Credit Risk Management, Office of
Entrepreneurial Development, Office of Investments and
Innovation, Office of Government Contracting and Business
Development, Office of International Trade, Office of
Management and Administration, and for other program and
supporting offices.
The Salaries and Expenses appropriation previously provided
funding for non-credit business assistance programs. The
Committee recommendation for fiscal year 2014 provides funding
for those programs under a new appropriation titled
``Entrepreneurial Development Programs''.

COMMITTEE RECOMMENDATION

The Committee recommendation provides $254,833,000 for
salaries and expenses of the SBA. The recommendation is
$181,680,000 below the fiscal year 2013 enacted level and is
$231,090,000 below the budget request. The decrease in funding
recommended for fiscal year 2014 reflects the Committee
recommendation to provide funding for non-credit business
assistance programs under a new appropriation titled
``Entrepreneurial Development Programs.'' After adjusting for
the recommended changes to the appropriations accounts, the
recommendation represents an effective increase of $10,323,000
to the fiscal year 2013 enacted level and an effective decrease
of $20,750,000 to the budget request.
Export Promotion.--As part of the administration's Export
Promotion Cabinet, the SBA has a goal of supporting 50,000 new
small business exporters by 2017. The recommendation includes
funding requested to support efforts to expand trade financing
by commercial lending institutions and community banks, remove
barriers to identifying and connecting to foreign buyers, and
ensure that SBA's resource partners are equipped to provide
export counseling.
Procurement Center Representatives.--SBA's Procurement
Center Representatives [PCRs] promote small business
participation in Federal contracting. The recommendation
includes funding requested to enhance the PCR program to
increase Federal contracting opportunities for small
businesses, connect the Federal Government with more innovative
small businesses, and save taxpayer dollars by increasing the
competitiveness of Federal contracting. The Committee directs
SBA to ensure that PCRs conduct outreach to local partners in
order to leverage resources and share best practices.
Credit Risk Management.--The Committee recommends
$12,000,000 for SBA's Office of Credit Risk Management [OCRM].
In support of its mission to analyze and manage the risk of
SBA's estimated $75,000,000,000 loan portfolio, OCRM performs
performance analytics to identify and understand lender
performance trends and assess the quality of the overall loan
portfolio. The Committee finds that OCRM plays a key role in
eliminating waste, fraud, and abuse in SBA lending programs and
protecting taxpayer losses on loans by ensuring lenders comply
with procedures that mitigate the risk of loss under SBA's loan
programs.
The Committee is concerned about the quality of lender
oversight activities at SBA, particularly considering the
magnitude of SBA's loan portfolio, and notes that SBA's Office
of Inspector General [IG] continues to identify weaknesses in
SBA's lender oversight process. SBA loan programs rely on
numerous outside parties (e.g., private lenders, local economic
development organizations, nonprofit community lenders, and
venture capital investors) to complete loan transactions, and
many of SBA's loans are made by lenders to whom SBA has
delegated loan-making authority. For example, the SBA IG
reports that in fiscal year 2011, approximately 67 percent of
the dollars guaranteed under SBA's 7(a) program were made by
lenders using delegated authorities. The Committee concurs with
the SBA IG's finding that the risks inherent in delegated
lending require an effective oversight program to: (1) monitor
lender compliance with SBA policies and procedures; and (2)
take corrective action when a material noncompliance is
detected.
The Committee finds that credit risk management should be a
key tenet of SBA's efforts to administer efficient and
effective loan programs to ensure the best use of taxpayer
dollars. The Committee directs SBA to report to the Committee
within 90 days of enactment on the status of SBA's current
credit risk management capabilities and how those capabilities
can be strengthened. The report shall also include an analysis
of the advantages and disadvantages of changing SBA's
organizational structure so that OCRM is independent from SBA's
Office of Capital Access and the director of OCRM reports
directly to the SBA Administrator.
Finally, the Committee finds that the Loan and Lender
Monitoring System [L/LMS] is a vital component of the SBA's
technical capability to provide oversight of its largest
lending programs, the 7(a) and 504 loan programs. OCRM uses L/
LMS as a tool for managing the risk in the loan and lender
portfolios. The Committee directs SBA to continue utilizing L/
LMS to ensure that lenders are employing sound financial risk
management techniques to manage and monitor risk within their
SBA loan portfolios. The Committee directs SBA to maintain the
current capabilities and capacity of the L/LMS system and
encourages the agency to consider how updating or expanding the
system could improve lender oversight capabilities.
Major Information Technology Acquisition.--The Committee
recommends $6,100,000 to continue development activities
related to the modernization of SBA's agency-wide loan
management and accounting system. Additional funding will be
contributed from amounts provided for the administrative
expenses of the Disaster Loans Program Account because the
modernization supports that program in addition to SBA's
business loan programs. The Committee expects that
appropriations provided for fiscal year 2014 will fulfill
development funding required for the modernized system.
Operation and maintenance costs for the new system will
continue in future fiscal years, consistent with other
information technology systems.
The Committee will continue to monitor progress on the
modernization due to the risk inherent in major Federal
information technology [IT] projects. The Government
Accountability Office [GAO] finds that ``Federal IT projects
too frequently incur numerous cost overruns and schedule
slippages while contributing little to mission-related
outcome'' (GAO 12-7). The Committee directs SBA to focus
modernization activities on activities identified by GAO as
common factors of successful Federal IT programs. In
particular, the Committee directs SBA to ensure, consistent
with GAO recommendations, that: (1) program officials actively
engage with stakeholders; (2) senior agency executives support
the program; (3) end users participate in testing of system
functionality prior to formal end user acceptance testing; and
(4) program officials maintain regular communication with
contractors.
The Committee directs SBA to continue to report quarterly
to the Committees on Appropriations summarizing the agency's
progress regarding the modernization effort. The Committee
directs that such reports shall include progress on time and
budget, both estimated and planned, beginning with the first
fiscal year of the modernization project. The Committee
emphasizes the need for such reports to include plain language
descriptions of the project in place of technical jargon.
Employee Ownership.--The Committee finds that employee
ownership protects jobs, promotes economic growth, supports
local economies, and is often a viable alternative for business
owners considering succession. The Committee directs SBA to
promote employee ownership in developing and implementing
entrepreneurial development programs. The Committee also
directs SBA to submit a report within 90 days of enactment on
what SBA programs can do to promote employee ownership through
training, education, and financing.

OFFICE OF INSPECTOR GENERAL

Appropriations, 2013\1\\2\.............................. $21,234,000
Budget estimate, 2014................................... 19,400,000
Committee recommendation................................ 19,400,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
\2\Includes emergency funding of $5,000,000 in the Disaster Relief
Appropriations Act, 2013 (division A of Public Law 113-2).
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The SBA Office of Inspector General conducts audits to
identify wasteful expenditures and program mismanagement,
investigates fraud and other wrongdoing, and takes other
actions to deter and detect waste, fraud, abuse, and
inefficiencies in SBA programs and operations.

COMMITTEE RECOMMENDATION

The Committee recommendation provides $19,400,000 for the
Office of Inspector General. The recommendation is $1,834,000
below the fiscal year 2013 enacted level, which included
$5,000,000 in emergency funding, and is equal to the budget
request.
The Committee directs the Inspector General to continue
routine analysis and reporting on SBA's modernization of its
loan management and accounting systems, including acquisition,
contractor oversight, implementation, and progress regarding
budget and schedule.

OFFICE OF ADVOCACY

Appropriations, 2013\1\................................. $9,102,000
Budget estimate, 2014................................... 8,455,000
Committee recommendation................................ 8,455,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Office of Advocacy, an independent office within SBA,
solicits and represents the views, concerns, and interests of
small businesses before Congress, the White House, Federal
agencies, Federal courts, and State policymakers.

COMMITTEE RECOMMENDATION

The Committee recommendation provides $8,455,000 for the
Office of Advocacy. The recommendation is $647,000 below the
fiscal year 2013 enacted level and is equal to the budget
request.
The Committee is concerned that the Office of Advocacy is
not sufficiently inclusive and transparent in soliciting and
incorporating the views of small businesses into its processes,
recommendations, and comments on Federal policies, activities,
rulemakings, and legislation.
The Government Accountability Office [GAO] is currently
undertaking an evaluation of the Office of Advocacy to review
the extent to which it maintains and follows policies and
procedures for determining when it will comment on the
regulatory process, when it will comment on non-regulatory
activities, and how it will solicit and accept input
representing the varying perspectives of small businesses. The
Committee looks forward to reviewing the GAO evaluation for
informing future funding and policy recommendations.
The Committee directs the Office of Advocacy to submit a
report to the Committee within 60 days of enactment detailing
the process under which it solicits feedback from small
businesses and ensures that its recommendations and comments
represent a balanced perspective on the views of affected small
business stakeholders.

BUSINESS LOANS PROGRAM ACCOUNT

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2013\1\................................. $484,266,000
Budget estimate, 2014................................... 263,160,000
Committee recommendation................................ 263,160,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

SBA administers a variety of loan programs to expand
entrepreneurs' access to capital to start and grow small
businesses. The 7(a) loan program is the Federal Government's
primary business loan program to assist small businesses in
obtaining financing when they do not qualify for traditional
credit. Under 7(a), SBA guarantees a portion (typically 75 to
90 percent) of loans made by private lenders. Under the 504
program, SBA supports loans to small businesses for financing
major fixed assets such as real estate and major equipment. The
504 program combines SBA guaranteed loans made by nonprofit
Certified Development Companies [CDCs] with loans from private
lenders to provide financing for small businesses.
Under the Small Business Investment Company [SBIC] program,
SBA partners with professionally managed investment funds,
called SBICs. The SBICs combine their own capital with funds
borrowed with an SBA guarantee to make investments in small
businesses. Finally, under the Microloan program, SBA provides
funds to specialized nonprofit, community-based intermediary
lenders which provide small loans for working capital,
inventory, and other operating expenses. The maximum Microloan
is $50,000 and the average loan made under the program is
$13,000.

COMMITTEE RECOMMENDATION

The Committee recommendation provides $263,160,000. The
recommendation is $221,106,000 below the fiscal year 2013
enacted level and is equal to the budget request.
The recommendation provides $151,560,000 for administrative
expenses, which may be transferred to and merged with SBA
salaries and expenses to cover the common overhead expenses
associated with the business loans programs.
The recommendation provides $4,600,000 for the Microloan
direct loan program to support lending volume estimated at
$25,000,000. An additional amount of $20,000,000 is recommended
under the heading ``Entrepreneurial Development Programs'' for
technical assistance grants to Microlending intermediaries. The
Committee directs SBA to continue to conduct outreach to
existing financial entities that may be well-suited to
participate in the Microloan program so that the program can
grow and expand access to microcapital across the country. SBA
shall submit a written report to the Committees on
Appropriations within 90 days of enactment summarizing the
agency's plans for expanding the reach of the Microloan
program.
The recommendation provides $107,000,000 to subsidize
$7,500,000,000 of lending under the 504 guaranteed loan
program. For a typical year, estimated fees collected from
lenders and borrowers fully offset estimated Government
payments on losses under the 504 loan program. However, the
budget requests funding for fiscal year 2014 because fee
collections are not expected to offset the cost to the
Government for that year due to circumstances related to the
economic downturn. The recommended funding will allow SBA to
continue operating the 504 loan program in fiscal year 2014.
The Committee expects the 504 loan program to return to typical
operation when the economy fully recovers. The recommendation
does not include funding for fiscal year 2014 to subsidize the
7(a) program, consistent with the President's request, because
fee collections are expected to fully offset the cost of the
program, enabling lending volume of up to $17,500,000,000.

DISASTER LOANS PROGRAM ACCOUNT

(INCLUDING TRANSFERS OF FUNDS)

Appropriations, 2013\1\\2\.............................. $896,065,000
Budget estimate, 2014\3\................................ 191,900,000
Committee recommendation\3\............................. 191,900,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
\2\Includes emergency funding of $779,000,000 in the Disaster Relief
Appropriations Act, 2013 (division A of Public Law 113-2).
\3\Includes $158,650,000 in disaster relief funding pursuant to the
Balanced Budget and Emergency Deficit Control Act of 1985.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

SBA provides low-interest, long-term loans to businesses of
all sizes, homeowners, renters, and nonprofit organizations
affected by disasters. SBA disaster loans are the primary form
of Federal assistance for the repair and rebuilding of non-
farm, private sector disaster losses. SBA makes two types of
disaster loans. Physical disaster loans are for permanent
rebuilding and replacement of uninsured or underinsured
disaster-damaged privately owned real and/or personal property
and are available to businesses of all sizes, nonprofit
organizations, homeowners, and renters. Economic Injury
Disaster Loans provide necessary working capital for small
businesses and nonprofit organizations until normal operations
resume after a disaster.

COMMITTEE RECOMMENDATION

The Committee recommends $191,900,000 for the
administrative costs of the Disaster Loans program,
$704,165,000 below the fiscal year 2013 enacted level which
included $779,000,000 in emergency funding. The recommendation
is equal to the budget request and, of the total
recommendation, $158,650,000 is designated by Congress as
disaster relief pursuant to the Balanced Budget and Emergency
Deficit Control Act of 1985.
SBA is urged to promptly notify the Committee of the status
of disasters requiring loan assistance. The Committee directs
SBA to improve the quality of service and provide greater
transparency for disaster loan applicants, particularly with
regard to application status. The Committee directs SBA to
submit a report to the Committee within 90 days of enactment
describing the feasibility of a secure Web portal for disaster
loan applicants, including an estimate of the cost of such Web
portal, a detailed description of potential new capabilities,
and an analysis of private sector best practices for status
tracking.
The Committee is concerned that SBA has not yet initiated
pilot testing of the Expedited Disaster Loan Program and the
Immediate Disaster Assistance Program authorized by Public Law
110-234. The Committee notes that funding provided for those
programs remains unused. The Committee urges SBA to test both
of these programs in response to disasters occurring in fiscal
year 2014 in order to best ready these programs for future
disaster response.

ADMINISTRATIVE PROVISIONS--SMALL BUSINESS ADMINISTRATION

(INCLUDING TRANSFER OF FUNDS)

Section 530 continues a provision concerning transfer
authority and availability of funds.
Section 531 authorizes SBA to carry out section 1122 of
Public Law 111-240 during fiscal year 2014.

United States Postal Service

PAYMENT TO THE POSTAL SERVICE FUND

Appropriations, 2013\1\................................. $78,153,000
Budget estimate, 2014................................... 70,751,000
Committee recommendation................................ 70,751,000

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The Post Office dates back to 1775. It became the Postal
Service in 1971 as an independent establishment of the
executive branch of the United States Government. The Postal
Service's basic function and obligation is to provide postal
services to bind the Nation together through the personal,
educational, literary, and business correspondence of the
people. Its mission is to provide prompt, reliable, and
efficient services to patrons in all areas and render postal
services to all communities. The Postal Service does not depend
upon taxpayer subsidies through discretionary appropriations
for its operations but generates nearly all of its more than
$65,000,000,000 in annual gross operating revenue by charging
users of the mail for the costs of postage, products, and
services.

COMMITTEE RECOMMENDATION

The Committee recommends appropriations totaling
$70,751,000 for payment to the Postal Service Fund, a decrease
of $7,402,000 below the fiscal year 2013 enacted level and the
same as the budget request.
This amount constitutes an advance appropriation for fiscal
year 2015 to compensate for revenue forgone on free mail for
the blind and for overseas voters.
The Committee includes provisions in the bill to ensure
that mail for overseas voting and mail for the blind shall
continue to be free; that 6-day delivery and rural delivery of
mail shall continue without reduction; and that none of the
funds provided be used to consolidate or close small rural and
other small post offices in fiscal year 2014.
Mail Delivery.--Since fiscal year 1981, annual
appropriations bills have each included language requiring 6-
day per week postal delivery. The Committee believes that 6-day
mail delivery is one of the most important services provided by
the Federal Government to its citizens. Especially in rural and
small-town America, this critical postal service is the
linchpin that serves to bind the Nation together.
Fiscal Health.--The Committee remains concerned about the
fragile fiscal health of the Postal Service. The Postal Service
continues to experience unsustainable financial losses,
threatening its viability. Decline in first-class mail volume
continues to have a staggering impact on the Postal Service.
The most recent financial report issued in May 2013
reflected a net loss of $1,900,000,000 in the second quarter of
2013, compared with a $1,300,000,000 loss in the first quarter.
Operating revenues of $16,300,000,000 for the second quarter
were $121,000,000 higher than the same period a year ago,
largely attributable to receipts from package delivery services
and advertising mail. The revenue boost marked the first
revenue increase in 5 years, a positive fiscal indicator.
Although the Postal Service's expenses were $1,200,000,000 less
than the same period in 2012, the overall expenses of
$18,200,000,000 for the quarter offset the otherwise healthy
increase in revenue to produce the net loss. Quarterly mail
volume declined to 38,800,000,000 pieces, down from
39,400,000,000 pieces for the same period a year ago. Revenue
from first-class mail, which is the largest source of Postal
Service revenue, declined by $198,000,000 or 2.7 percent, from
the revenue realized in the same period last year, and first-
class mail volume declined by 713 million pieces, or 4.1
percent.
Postal Retail Network.--The Committee acknowledges that on
May 9, 2012, the Postal Service announced its intent to
implement a strategy to balance the need for continued retail
services while achieving cost savings that will not result in
the wholesale shuttering of small and rural post offices but
could modify retail window hours. The Committee appreciates the
Postal Service's need to adjust its infrastructure, but
emphasizes that it is imperative to evaluate the perspectives
of affected postal customers in determining the most viable
solution for any community impacted by the proposed changes.
The Committee notes that on August 23, 2012, the Postal
Regulatory Commission [PRC] issued an advisory opinion on the
Post Office Structure Plan to match post office retail hours
with workload. While the PRC found the plan to be consistent
with public policy, the PRC offered a number of concrete
recommendations to further enhance the initiative, particularly
concerning access, community input, revenue and staffing. For
example, in surveying communities, postal customers should be
provided clear choice between alternatives. Moreover, the PRC
stressed the importance of an internal review and data
collection plan to monitor and measure changes in revenue to
help evaluate whether the initiative is meeting its objectives
and goals. To preserve adequate retail access and maintain
universal service, the Committee strongly urges the Postal
Service to incorporate the recommendations of the PRC into its
conduct of the structure plans.
The Committee strongly urges the Postal Service to continue
to expand the co-location of postal services and other
innovative approaches to serving communities, significantly
grow its inventory of automated postal centers for self-service
access particularly in currently underserved areas, and widely
disseminate information through national advertising promoting
the benefits to postal customers of on-line and self-service
options.
Consolidation of Mail Processing Facilities.--The Postal
Service is developing and implementing a major realignment of
its postal facilities to achieve greater efficiencies, reduce
redundancies, and realize cost savings. Many questions and
concerns remain unanswered about how consolidation of the
processing and transportation networks will impact current
nationwide delivery service standards for first-class mail,
periodicals, package services, and standard mail, as well as
how the postal workforce, mailers, customers, and communities
may be impacted by the realignment decisions.
As proposed, the Postal Service would eliminate overnight
service for first-class mail and periodicals, and would instead
provide 2- and 3-day delivery service. These service standard
changes are contemplated in order to capture significant cost
savings from the proposed consolidation of a significant
portion of the mail processing and transportation networks.
In July 2012, the Postal Service proceeded with a phased
implementation plan that included interim services standards
until January 31, 2014, generally preserving most overnight
first-class mail service, and consolidating 140 plants.
The Committee understands that on September 28, 2012, the
PRC issued an advisory opinion analyzing the Postal Service's
plan to close and consolidate 229 of its 461 processing plants
to better match declining mail volume and achieve savings. The
Committee notes that the PRC identified potential net savings
estimates lower than levels projected by the Postal Service.
The PRC focused on the utility of more robust modeling in
selecting facilities for closure, emphasizing that actual plant
productivities are best measured by comparing work hours to the
volume of mail processed, rather than the physical size of the
plant.
The PRC also cautioned that projected cost savings may be
offset by volume losses if mailers decide that changed service
levels no longer meet their needs. The PRC urged the Postal
Service to adopt a plan to better inform all customers of the
service they can expect to receive, and to develop and inform
mailers of a transportation hub plan.
The Committee remains concerned that the information
provided by the Postal Service to customers concerning the
potential decline in the service they may experience is vague
and inadequate. The Committee underscores the need for the
Postal Service to assimilate the PRC's recommendations as
facilities designated for study are selected and assessed.
The Committee directs the Postal Service to submit a report
to the Committee, no later than 45 days following enactment of
this act, describing the extent to which each of the
recommendations of the PRC have been adopted.
To ensure a fair and transparent process for decisions
about mail processing facilities, the Committee directs the
Postal Service to conduct a public community meeting and obtain
the results of an audit by the Postal Service Inspector General
showing that the prior study is no longer valid before closing
or consolidating a mail processing facility that has been
recently studied for closure that was either terminated,
suspended, or halted.
The Committee is concerned that the U.S. Postal Service's
Network Optimization Plan, as finalized on July 1, 2012 and
published in the Federal Register under 39 CFR Part 121, has
resulted in service delivery standards in some areas at levels
below the quality enjoyed in other states. For this reason the
Committee directs the Government Accountability Office [GAO] to
study and report to the Committee by January 15, 2014, on the
extent to which relaxed service standards for alternate means
of transportation [AMOT] implemented by the U.S. Postal Service
based on its July, 2012 Network Optimization Plan have
disproportionately impacted mailers and postal customers in
states or regions of the country that depend on AMOT for normal
delivery and whether such impacts have resulted in inequities
in ensuring universal service.

OFFICE OF INSPECTOR GENERAL

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

Appropriations, 2013\1\................................. $240,985,000
Budget estimate, 2014................................... 241,468,000
Committee recommendation................................ 241,468,000

PROGRAM DESCRIPTION

The United States Postal Service Office of Inspector
General [OIG] is an independent organization established in
1996 and charged with reporting to Congress on the overall
efficiency, effectiveness, and economy of Postal Service
programs and operations. The OIG plays a key role in
maintaining the integrity and accountability of America's
postal service, its revenue and assets, and its employees. The
OIG meets this responsibility by conducting and supervising
objective and independent audits, investigations, and other
reviews.
In fiscal year 2012, the OIG issued 208 audit reports, of
which 52 indicated financial impact in the form of funds put to
better use, questioned costs, or potential revenue of
$12,072,831,145. The OIG completed 3,993 investigative cases,
secured 1,119 arrests and indictments, and referred 1,679
administrative actions. The Inspector General's investigations
of injury compensation fraud, financial fraud, and contract
fraud produced a total of $189,193,265 in cost avoidance during
fiscal year 2012. Cumulative fines, restitution, and recoveries
totaled $2,281,277,293. There were 112,087 hotline contacts.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation, out of the
Postal Fund, of $241,468,000 for the United States Postal
Service Office of Inspector General. This amount is $483,000
above the fiscal year 2013 funding level and the same as the
budget request. The Committee appreciates the efforts of the
Inspector General to perform its exemplary audit and
investigative work under severe spending constraints.

United States Tax Court

salaries and expenses

Appropriations, 2013\1\................................. $50,977,000
Budget estimate, 2014................................... 52,653,294
Committee recommendation................................ 52,653,294

\1\Does not reflect the March 1, 2013, sequester of funds under Public
Law 112-25.
---------------------------------------------------------------------------

PROGRAM DESCRIPTION

The U.S. Tax Court is an independent judicial body in the
legislative branch established in 1969 under Article I of the
Constitution of the United States. The Court was created to
provide a national forum for the resolution of disputes between
taxpayers and the Internal Revenue Service, resolve cases
expeditiously while giving careful consideration to the merits
of each matter, and ensure the uniform interpretation of the
Internal Revenue Code.
The Tax Court is one of three courts in which taxpayers can
bring suit to contest IRS liability determinations, and the
only one in which taxpayers can do so without prepaying any
portion of the disputed taxes. The matters over which the Court
has jurisdiction are set forth in various sections of title 26
of the United States Code.
The Court is composed of 19 judges, one of whom the judges
elect as chief judge. Tax Court judges are appointed to 15-year
terms by the President with the advice and consent of the
Senate. In their judicial duties the judges are assisted by
senior judges, who participate in the adjudication of regular
cases, and by special trial judges, who hear small tax cases
and certain regular cases assigned to them by the chief judge.
The Court conducts trial sessions in 74 cities throughout
the United States, including Hawaii and Alaska. Decisions by
the Court are reviewable by the U.S. Courts of Appeals and, if
certiorari is granted, by the Supreme Court.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $52,653,294
for the U.S. Tax Court. This amount is $1,676,294 above the
fiscal year 2013 enacted level and the same as the budget
request.

STATEMENT CONCERNING GENERAL PROVISIONS

The Financial Services and General Government
appropriations bill includes general provisions which govern
both the activities of the agencies covered by the bill, and,
in some cases, activities of agencies, programs, and general
government activities that are not specifically covered by the
bill.
The bill contains a number of general provisions that have
been carried in this bill for many years and which are routine
in nature and scope. General provisions in the bill are
explained under this section of the report. Those general
provisions that deal with a single agency only are shown as
administrative provisions immediately following that particular
agency's or department's appropriation accounts in the bill.
Those provisions that address activities or directives
affecting all of the agencies covered in this bill are
contained in title VI. General provisions that are
Governmentwide in scope are specified in title VII of this
bill. General provisions applicable to the District of Columbia
are set forth in title VIII of this bill.

TITLE VI

GENERAL PROVISIONS--THIS ACT

Section 601 continues the provision prohibiting pay and
other expenses of non-Federal parties intervening in regulatory
or adjudicatory proceedings funded in this act.
Section 602 continues the provision prohibiting obligations
beyond the current fiscal year and prohibits transfers of funds
unless expressly provided.
Section 603 continues the provision limiting expenditures
for any consulting service through procurement contracts where
such expenditures are a matter of public record and available
for public inspection.
Section 604 continues the provision prohibiting funds in
this act from being transferred without express authority.
Section 605 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 (46 Stat.
590).
Section 606 continues the provision prohibiting the use of
funds unless the recipient agrees to comply with the Buy
American Act.
Section 607 continues the provision prohibiting funding for
any person or entity convicted of violating the Buy American
Act.
Section 608 continues the provision authorizing the
reprogramming of funds and specifies the reprogramming
procedures for agencies funded by this act.
Section 609 continues the provision ensuring that 50
percent of unobligated balances may remain available for
certain purposes.
Section 610 continues the provision restricting the use of
funds for the Executive Office of the President to request
official background reports from the Federal Bureau of
Investigation without the written consent of the individual who
is the subject of the report.
Section 611 continues the provision ensuring that the cost
accounting standards shall not apply with respect to a contract
under the Federal Employees Health Benefits Program.
Section 612 continues the provision allowing use of certain
funds relating to nonforeign area cost of living allowances.
Section 613 continues the provision waiving restrictions on
the purchase of nondomestic articles, materials, and supplies
in the case of acquisition by the Federal Government of
information technology.
Section 614 continues a provision on the acceptance by
agencies or commissions funded by this act, or by their
officers or employees, of payment or reimbursement for travel,
subsistence, or related expenses from any person or entity (or
their representative) that engages in activities regulated by
such agencies or commissions.
Section 615 continues a provision allowing the Public
Company Accounting Oversight Board to obligate amounts
collected from monetary penalties for the purpose of funding
scholarships for accounting students, as authorized by the
Sarbanes-Oxley Act of 2002 (Public Law 107-204).
Section 616 continues a provision permitting the Securities
and Exchange Commission and the Commodity Futures Trading
Commission to fund a joint advisory committee to advise on
emerging regulatory issues, notwithstanding section 708 of this
act.
Section 617 continues the provision requiring certain
agencies to provide quarterly reports on unobligated prior year
fund balances.
Section 618 continues the provision requiring agencies
covered by this act with independent leasing authority to
consult with the General Services Administration before seeking
new office space or making alterations to existing office
space.
Section 619 continues the provision prohibiting expenditure
of funds to any corporation with certain unpaid Federal tax
liabilities unless the agency has considered suspension or
debarment of the corporation and made a determination that
further action is not necessary to protect the interests of the
Government.
Section 620 continues the provision prohibiting the
expenditure of funds to any corporation that was convicted of a
felony criminal violation within the preceding 24 months unless
the agency has considered suspension or debarment of the
corporation and made a determination that further action is not
necessary to protect the interests of the Government.
Section 621 is a new provision related to electronic filing
of campaign finance reports by Senators and candidates seeking
election to the Senate.
Section 622 continues a provision relating to use of funds
for certain terrestrial operations by commercial providers in
broadcast spectrum.
Section 623 is a new provision eliminating a requirement
that a separate homeland security funding analysis be included
with the President's annual budget.
Section 624 is a new provision that adjusts for inflation
certain filing fees related to mergers.
Section 625 is a new provision relating to agency reporting
requirements under the American Recovery and Reinvestment Act
of 2009.
Section 626 is a new provision requiring that agency budget
justifications include a separate table and explanations
relating to management challenges identified by Inspectors
General.
Section 627 is a new provision establishing a working group
to facilitate cooperation between the Federal Trade Commission
and the Commodity Futures Trading Commission with respect to
petroleum markets.
Section 628 is a new provision relating to travel to Cuba
for professional research or professional meetings or
conferences related to disaster prevention, emergency
preparedness, and natural resource protection.

TITLE VII

GENERAL PROVISIONS--GOVERNMENTWIDE

Departments, Agencies, and Corporations

(INCLUDING TRANSFERS OF FUNDS)

Section 701 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 702 continues the provision setting specific limits
on the cost of passenger vehicles purchased by the Federal
Government with exceptions for police, heavy duty, electric
hybrid, and clean fuels vehicles with an exception for
commercial vehicles that operate on emerging motor vehicle
technology.
Section 703 continues the provision allowing funds made
available to agencies for travel to also be used for quarters
allowances and cost-of-living allowances.
Section 704 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 United States.
Section 705 continues the provision ensuring that agencies
will have authority to pay the General Services Administration
for space renovation and other services.
Section 706 continues the provision allowing agencies to
use receipts from the sale of materials for acquisition, waste
reduction and prevention, environmental management programs,
and other Federal employee programs.
Section 707 continues the provision providing that funds
for administrative expenses may be used to pay rent and other
service costs in the District of Columbia.
Section 708 continues the provision precluding interagency
financing of groups absent prior statutory approval.
Section 709 continues the provision prohibiting the use of
appropriated funds for enforcing regulations disapproved in
accordance with the applicable law of the United States.
Section 710 continues the provision limiting the amount
that can be used for redecoration of offices under certain
circumstances.
Section 711 continues the provision that permits
interagency funding of national security and emergency
preparedness telecommunications initiatives, which benefit
multiple Federal departments, agencies, and entities.
Section 712 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 713 continues the provision prohibiting the use of
funds to prevent Federal employees from communicating with
Congress or to take disciplinary or personnel actions against
employees for such communication.
Section 714 continues the provision prohibiting Federal
training not directly related to the performance of official
duties.
Section 715 continues the provision prohibiting the use of
appropriated funds for publicity or propaganda designed to
support or defeat legislation pending before Congress.
Section 716 continues the provision prohibiting the use of
appropriated funds by an agency to provide home addresses of
Federal employees to labor organizations, absent employee
authorization, or court order.
Section 717 continues the provision prohibiting the use of
appropriated funds to provide nonpublic information such as
mailing or telephone lists to any person or organization
outside of the Government without approval of the Committees on
Appropriations.
Section 718 continues the provision prohibiting the use of
appropriated funds for publicity or propaganda purposes within
the United States not authorized by Congress.
Section 719 continues the provision directing agencies'
employees to use official time in an honest effort to perform
official duties.
Section 720 continues the provision authorizing the use of
current fiscal year funds to finance an appropriate share of
the Federal Accounting Standards Advisory Board administrative
costs.
Section 721 continues a provision authorizing the transfer
of funds to the General Services Administration to finance an
appropriate share of various governmentwide boards and councils
under certain conditions.
Section 722 continues the provision authorizing
breastfeeding at any location in a Federal building or on
Federal property.
Section 723 continues the provision permitting interagency
funding of the National Science and Technology Council, and
requiring an OMB report on the budget and resources of the
Council.
Section 724 continues the provision requiring
identification of the Federal agencies providing Federal funds
and the amount provided for all proposals, solicitations, grant
applications, forms, notifications, press releases, or other
publications related to the distribution of funding to a State.
Section 725 continues the provision prohibiting the use of
funds to monitor personal information relating to the use of
Federal Internet sites.
Section 726 continues the provision regarding contraceptive
coverage under the Federal Employees Health Benefits Plan.
Section 727 continues the provision recognizing that the
United States is committed to ensuring the health of the
Olympic, Pan American and Paralympic athletes, and supports the
strict adherence to antidoping in sport activities.
Section 728 continues the provision allowing departments
and agencies to use official travel funds to participate in the
fractional aircraft ownership pilot programs.
Section 729 continues the provision prohibiting funds for
implementation of OPM regulations limiting detailees to the
legislative branch and placing certain limitations on the Coast
Guard Congressional Fellowship program.
Section 730 continues the provision prohibiting the
expenditure of funds for the acquisition of certain additional
Federal law enforcement training facilities.
Section 731 continues a provision that prohibits the use of
funds to begin or announce a study or a public-private
competition regarding the conversion to contractor performance
of any function performed by civilian Federal employees
pursuant to Office of Management and Budget Circular A-76 or
any other administrative regulation, directive, or policy.
Section 732 continues a provision that prohibits executive
branch agencies from creating or funding prepackaged news
stories that are broadcast or distributed in the United States
unless specific notification conditions are met.
Section 733 continues a provision prohibiting funds used in
contravention of the Privacy Act, section 552a of title 5,
United States Code or section 522.224 of title 48 of the Code
of Federal Regulations.
Section 734 continues and makes permanent a provision
requiring OMB to submit a crosscut budget report on Great Lakes
restoration activities not later than 45 days after the
submission of the budget of the President to Congress.
Section 735 continues a provision prohibiting funds in this
or any other act from being used for a Federal contract with
inverted corporations, unless the contract preceded this act or
the Secretary grants a waiver in the interest of national
security.
Section 736 prohibits the Office of Personnel Management or
any other agency from using funds to implement regulations
changing the competitive areas under reductions-in-force for
Federal employees.
Section 737 modifies a provision enacted in fiscal year
2010 requiring agency compilation of inventories of service
contracts.
Section 738 directs OMB to issue guidance relating to the
ban on direct conversion to contract performance of work
performed by Federal employees, absent public-private
competition.
Section 739 continues a provision requiring agencies to
remit to the Civil Service Retirement and Disability Fund an
amount equal to the Office of Personnel Management's average
unit cost of processing a retirement claim for the preceding
fiscal year to be available to the Office of Personnel
Management for the cost of processing retirements of employees
who separate under Voluntary Early Retirement Authority or who
receive Voluntary Separation Incentive Payments.
Section 740 prohibits certain personnel management
constraints.
Section 741 limits the pay increases of certain prevailing
rate employees.
Section 742 eliminates automatic statutory pay increases
for the Vice President, political appointees paid under the
executive schedule, ambassadors who are not career members of
the Foreign Service, politically appointed (noncareer) Senior
Executive Service employees, and any other senior political
appointee paid at or above level IV of the executive schedule.
Section 743 modifies the formula for calculating the cap on
the amount that the Federal Government reimburses Federal
contractors for executive compensation.
Section 744 continues a provision requiring reports to
Inspectors General concerning expenditures for agency
conferences.
Section 745 declares the inapplicability of these general
provisions to title IV and title VIII.
Given the need for transparency and accountability in the
Federal budgeting process, and that the Consumer Financial
Protection Bureau's budget is funded independently of the
annual appropriations spending bills, the Committee directs the
Bureau to provide an informal, nonpublic full briefing at least
annually before the relevant Appropriations subcommittee on the
Bureau's finances and expenditures.

TITLE VIII

GENERAL PROVISIONS--DISTRICT OF COLUMBIA

(INCLUDING TRANSFER OF FUNDS)

Section 801 continues the provision that appropriates funds
for refunding overpayments of taxes collected and for paying
settlements and judgments against the District of Columbia
government.
Section 802 continues the provision that prohibits the use
of Federal funds for publicity or propaganda purposes.
Section 803 continues the provision that establishes
notification requirements for certain reprogramming and
transfer requirements with respect to funds and specifies a
timeframe for approval and execution of requests to reprogram
and transfer local funds.
Section 804 continues the provision that prohibits the use
of Federal funds for salaries, expenses, or other costs
associated with the offices of U.S. Senator or Representative
under section 4(d) of the D.C. Statehood Constitutional
Convention Initiatives of 1979.
Section 805 continues the provision that restricts the use
of official vehicles to official duties and not between a
residence and workplace, except under certain circumstances.
Section 806 continues the provision that prohibits the use
of Federal funds by the District of Columbia Attorney General
or any other officer or entity of the District government to
provide assistance for any petition drive or civil action which
seeks to require Congress to provide for voting representation
in Congress for the District of Columbia.
Section 807 continues the provision that prohibits the use
of Federal funds in this act to distribute, for the purpose of
preventing the spread of blood borne pathogens, sterile needles
or syringes in any location that has been determined by local
public health officials or local law enforcement authorities to
be inappropriate for such distribution.
Section 808 continues the provision that includes a
``conscience clause'' on legislation that pertains to
contraceptive coverage by health insurance plans.
Section 809 continues the provision prohibiting use of
Federal funds to change the legality of marijuana use.
Section 810 restricts the use of Federal funds for
abortion, with certain exceptions.
Section 811 continues a provision requiring the submittal
of a revised appropriated funds operating budget that reflects
the total amount of the approved appropriation and realigns all
budget data for personal services and other-than-personal-
services with anticipated actual expenditures.
Section 812 continues a provision requiring the submittal
of a revised appropriated funds budget for the District of
Columbia Schools that aligns the schools' budgets to actual
enrollment.
Section 813 continues, with modification, a provision
authorizing the transfer of local funds to capital and
enterprise funds.
Section 814 is a new provision that prohibits obligations
beyond the current fiscal year and prohibits transfers of funds
unless expressly provided.
Section 815 is a new provision that ensures that 50 percent
of unobligated balances may remain available for certain
purposes.
Section 816 is a new provision relating to the transmission
of the District of Columbia local budget to the Congress.
Section 817 is a new provision permitting the District of
Columbia to obligate and expend local funds upon enactment by
the District of Columbia government of its annual budget and to
establish the start of the local fiscal year.
Section 818 is a new provision granting the District of
Columbia authority to spend local funds if the District's
budget has not been approved by Congress at the start of a
fiscal year.
Section 819 is a new provision allowing the expenditure of
funds by the District of Columbia under certain contingency fee
contracts for the provision of legal services.
Section 820 continues the provision which limits references
to ``this Act'' as referring to only this title.

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

Paragraph 7 of rule XVI requires that Committee reports on
general appropriations bills identify each Committee amendment
to the House bill ``which proposes an item of appropriation
which is not made to carry out the provisions of an existing
law, a treaty stipulation, or an act or resolution previously
passed by the Senate during that session.''
The Committee is filing an original bill, which is not
covered under this rule, but reports this information in the
spirit of full disclosure.
Items providing funding for fiscal year 2014 which lack
authorization are as follows:
Department of the Treasury
Departmental Offices
Department-wide Systems and Capital Investments
Office of the Inspector General
Inspector General for Tax Administration
Financial Crimes Enforcement Network
Fiscal Service
Alcohol and Tobacco Tax and Trade Bureau
Community Development Financial Institutions Fund
Internal Revenue Service:
Taxpayer Services
Enforcement
Operations Support
Business Systems Modernization
Executive Office of the President
Office of Management and Budget
Office of National Drug Control Policy
District of Columbia
Federal Payment for Resident Tuition Support
Federal Payment for the District of Columbia Water and
Sewer Authority
Federal Payment for Judicial Commissions
Federal Payment for the D.C. National Guard
Independent Agencies
Administrative Conference of the United States
Election Assistance Commission
Federal Communications Commission
Federal Election Commission
Federal Trade Commission
General Services Administration:
E-Government Fund
Federal Buildings Fund\1\
---------------------------------------------------------------------------
\1\Deposits into the Federal Buildings Fund are available for real
property management and related activities in the amounts specified in
annual appropriations laws, as provided by 40 U.S.C. 592.
---------------------------------------------------------------------------
Merit Systems Protection Board
National Archives and Records Administration, National
Historical Publications and Records Commission
National Credit Union Administration: Community Development
Revolving Loan Fund
Office of Government Ethics
Office of Special Counsel

COMPLIANCE WITH PARAGRAPH 7(c), RULE XXVI OF THE STANDING RULES OF THE
SENATE

Pursuant to paragraph 7(c) of rule XXVI, on July 25, 2013,
the Committee ordered favorably reported an original bill (S.
1371) making appropriations for financial services and general
government for the fiscal year ending September 30, 2014, and
for other purposes, provided that the bill be subject to
amendment and that the bill be consistent with the subcommittee
funding guidance, by a recorded vote of 16-14, a quorum being
present. The vote was as follows:
Yeas Nays
Chairwoman Mikulski Mr. Shelby
Mr. Leahy Mr. Cochran
Mr. Harkin Mr. McConnell
Mrs. Murray Mr. Alexander
Mrs. Feinstein Ms. Collins
Mr. Durbin Ms. Murkowski
Mr. Johnson Mr. Graham
Ms. Landrieu Mr. Kirk
Mr. Reed Mr. Coats
Mr. Pryor Mr. Blunt
Mr. Tester Mr. Moran
Mr. Udall Mr. Hoeven
Mrs. Shaheen Mr. Johanns
Mr. Merkley Mr. Boozman
Mr. Begich
Mr. Coons

COMPLIANCE WITH PARAGRAPH 12, RULE XXVI OF THE STANDING RULES OF THE
SENATE

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

TITLE 2--THE CONGRESS

CHAPTER 14--FEDERAL ELECTION CAMPAIGNS

Subchapter I--Disclosure of Federal Campaign Funds

Sec. 432. Organization of political committees

(a) Treasurer; vacancy; official authorizations

* * * * * * *

[(g) Filing with and receipt of designations, statements, and
reports by Secretary of Senate; forwarding to
Commission; filing requirements with Commission;
public inspection and preservation of designations,
etc.

[(1) Designations, statements, and reports required to be
filed under this Act by a candidate for the office of Senator,
by the principal campaign committee of such candidate, and by
the Republican and Democratic Senatorial Campaign Committees
shall be filed with the Secretary of the Senate, who shall
receive such designations, statements, and reports, as
custodian for the Commission.
[(2) The Secretary of the Senate shall forward a copy of
any designation, statement, or report filed with the Secretary
under this subsection to the Commission as soon as possible
(but no later than 2 working days) after receiving such
designation, statement, or report.
[(3) All designations, statements, and reports required to
be filed under this Act, except designations, statements, and
reports filed in accordance with paragraph (1), shall be filed
with the Commission.
[(4) The Secretary of the Senate shall make the
designations, statements, and reports received under this
subsection available for public inspection and copying in the
same manner as the Commission under section 438(a)(4) of this
title, and shall preserve such designations, statements, and
reports in the same manner as the Commission under section
438(a)(5) of this title.]

(g) Filing of Designations, Statements, and Reports With the
Commission

All designations, statements, and reports required to be
filed under this Act shall be filed with the Commission.
------

TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III--EMPLOYEES

Subpart I--Miscellaneous

CHAPTER 95--PERSONNEL FLEXIBILITIES RELATING TO THE INTERNAL REVENUE
SERVICE

Sec. 9503. Streamlined critical pay authority

(a) Notwithstanding section 9502, and without regard to the
provisions of this title governing appointments in the
competitive service or the Senior Executive Service and
chapters 51 and 53 (relating to classification and pay rates),
the Secretary of the Treasury may, [Before September 30, 2013]
before September 30, 2015, establish, fix the compensation of,
and appoint individuals to, designated critical administrative,
technical, and professional positions needed to carry out the
functions of the Internal Revenue Service, if--
(1) * * *

* * * * * * *

(5) the terms of such appointments are limited to
no more than 4 years renewable for an additional two
years, based on a critical organizational need;
------

TITLE 10--ARMED FORCES

Subtitle A--General Military Law

PART IV--SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 137--PROCUREMENT GENERALLY

Sec. 2324. Allowable costs under defense contracts

(e) Specific Costs Not Allowable.--(1) * * *
(A) * * *

* * * * * * *

[(P) Costs of compensation of any contractor
employee for a fiscal year, regardless of the contract
funding source, to the extent that such compensation
exceeds the benchmark compensation amount determined
applicable for the fiscal year by the Administrator for
Federal Procurement Policy under section 1127 of title
41, except that the Secretary of Defense may establish
one or more narrowly targeted exceptions for scientists
and engineers upon a determination that such exceptions
are needed to ensure that the Department of Defense has
continued access to needed skills and capabilities.]
(P) Costs of compensation of any contractor
employees for a fiscal year, regardless of the contract
funding source, to the extent that such compensation
exceeds the annual amount paid to the President in
accordance with section 102 of title 3, except that the
head of the agency may establish one or more narrowly
targeted exceptions for scientists, engineers, or other
specialists upon a determination that such exceptions
are needed to ensure that the agency has continued
access to needed skills and capabilities.
------

TITLE 12--BANKS AND BANKING

CHAPTER 47--COMMUNITY DEVELOPMENT BANKING

Subchapter I--Community Development Banking and Financial Institutions

Sec. 4713a Guarantees for bonds and notes issued for community or
economic development purposes

(a) Definitions

* * * * * * *

[(h) Authorization of appropriations

[(1) In general

[There are authorized to be appropriated to
the Secretary, such sums as are necessary to
carry out this section.

[(2) Use of fees

[To the extent that the amount of funds
appropriated for a fiscal year under paragraph
(1) are not sufficient to carry out this
section, the Secretary may use the fees
collected under subsection (g) for the cost of
providing guarantees of bonds and notes under
this section.]

(h) Federal Credit Reform Act.--The provisions of this
section satisfy the requirements of subsections (b) and (e) of
section 504 of the Congressional Budget Act of 1974.

* * * * * * *

[(k) Termination

This section is repealed, and the authority provided under
this section shall terminate, on September 30, 2014.]
------

TITLE 15--COMMERCE AND TRADE

CHAPTER 1--MONOPOLIES AND COMBINATIONS IN RESTRAINT OF TRADE

Sec. 18a. Premerger notification and waiting period

(a) Filing

* * * * * * *

ASSESSMENT AND COLLECTION OF FILING FEES

Pub. L. 101-162, title VI, Sec. 605, Nov. 21, 1989, 103
Stat. 1031, as amended by Pub. L. 101-302, title II, May 25,
1990, 104 Stat. 217; Pub. L. 102-395, title I, Oct. 6, 1992,
106 Stat. 1847; Pub. L. 103-317, title I, Aug. 26, 1994, 108
Stat. 1739; Pub. L. 106-553, Sec. 1(a)(2) [title VI,
Sec. 630(b)], Dec. 21, 2000, 114 Stat. 2762, 2762A-109,
provided that:
``(a) * * *
``(b) [The filing fees] Subject to subsection (c), the
filing fees referred to in subsection (a) are--
``(1) [$45,000] $60,000 if the aggregate total
amount determined under section 7A(a)(2) of the Clayton
Act (15 U.S.C. 18a(a)(2)) is less than $100,000,000 (as
adjusted and published for each fiscal year beginning
after September 30, 2004, in the same manner as
provided in section 8(a)(5) of the Clayton Act (15
U.S.C. 19(a)(5)) to reflect the percentage change in
the gross national product for such fiscal year
compared to the gross national product for the year
ending September 30, 2003);
``(2) [$125,000] $170,000 if the aggregate total
amount determined under section 7A(a)(2) of the Clayton
Act (15 U.S.C. 18a(a)(2)) is not less than $100,000,000
(as so adjusted and published) but less than
$500,000,000 (as so adjusted and published); [and]
``(3) [$280,000] $375,000 if the aggregate total
amount determined under section 7A(a)(2) of the Clayton
Act (15 U.S.C. 18a(a)(2)) is not less than $500,000,000
(as so adjusted and published)[.] but less than
$1,000,000,000 (as so adjusted and published); and
``(4) $500,000 if the aggregate total amount
determined under section 7A(a)(2) of the Clayton Act
(15 U.S.C. 18a(a)(2)) is not less than $1,000,000,000
(as so adjusted and published).''
``(c) For fiscal year 2016, and each fiscal year
thereafter, the Federal Trade Commission shall publish in the
Federal Register and increase the amount of each filing fee
under subsection (b) in the same manner and on the same dates
as provided under section 8(a)(5) of the Clayton Act (15 U.S.C.
19(a)(5)) to reflect the percentage change in the gross
national product for the fiscal year as compared to the gross
national product for fiscal year 2013 except that the Federal
Trade Commission--
``(1) shall round any increase in a filing fee
under this subsection to the nearest $5,000;
``(2) shall not increase filing fees under this
subsection if the increase in the gross national
product is less than 1 percent; and
``(3) shall not decrease filing fees under this
subsection.''

* * * * * * *

CHAPTER 47--CONSUMER PRODUCT SAFETY

Sec. 2078. Cooperation with States and other Federal agencies

(a) Programs to promote Federal-State cooperation * * *

* * * * * * *

(f) Sharing of information with Federal, State, local, and
foreign government agencies

(1) Agreements and conditions

* * * * * * *

[(2)] (3) Abrogation of agreements

The Commission may abrogate any agreement or
memorandum of understanding with another agency if the
Commission determines that the other agency has failed
to maintain in confidence any information provided
under such agreement or memorandum of understanding, or
has used any such information for purposes other than
those set forth in such agreement or memorandum of
understanding.

[(3)] (4) Additional rules against disclosure

Except as provided in paragraph (4), the Commission
shall not be required to disclose under section 552 of
title 5 or any other provision of law--

* * * * * * *

[(4) Limitation] (5) Rules of construction

[Nothing in this subsection authorizes] Nothing in
this subsection may be construed--
(A) to authorize the Commission to withhold
information from the Congress or prevent the
Commission from complying with an order of a
court of the United States in an action
commenced by the United States or the
Commission[.]; or
(B) to prohibit the Commission from
providing any information received under this
subsection, which is related to an immediate
health or safety threat to the public or to a
potential violation of a criminal law, to the
Attorney General or to other appropriate
Federal, State, or local agencies.

[(5)] (6) Definition

* * * * * * *

CHAPTER 106--POOL AND SPA SAFETY

Sec. 8004. State swimming pool safety grant program

(a) In general

* * * * * * *

(b) Eligibility

To be eligible for a grant under the program, a State
shall--
(1) * * *
(A) except as provided in section
8005(a)(1)(A)(i) of this title, applies to [all
swimming pools constructed after the date that
is 6 months after the date of enactment of the
Financial Services and General Government
Appropriations Act, 2012 in the State] all
swimming pools constructed in the State after
the date the State first submits an application
to the Commission for a grant under this
section; and

* * * * * * *

(e) Authorization of appropriations

[There are authorized to be appropriated to the Commission
for each of fiscal years 2009 and 2010 $2,000,000 to carry out
this section, such sums to remain available until expended.]
There is authorized to be appropriated to the Commission such
sums as may be necessary to carry out this section through
fiscal year 2015. Any amounts appropriated pursuant to this
subsection that remain unexpended and unobligated at the end of
[fiscal year 2012] fiscal year 2015 shall be retained by the
Commission and credited to the appropriations account that
funds enforcement of the Consumer Product Safety Act [15 U.S.C.
2051 et seq.].

Sec. 8005. Minimum State law requirements

(a) In general

(1) Safety standards

A State meets the minimum State law requirements of this
section if--
(A) the State requires by statute--
(i) the enclosure of all outdoor
residential pools and spas by barriers
to entry that will effectively prevent
small children from gaining
unsupervised and unfettered access to
the pool or spa; and
[(ii) that all pools and spas be
equipped with devices and systems
designed to prevent entrapment by pool
or spa drains;]
[(iii)] (ii) that pools and spas
built more than 1 year after the date
of the enactment of such statute have--
(I) more than 1 drain;
(II) 1 or more unblockable
drains; or
(III) no main drain; and
[(iv) 1 every swimming pool and spa
that has a main drain, other than an
unblockable drain, be equipped with a
drain cover that meets the consumer
product safety standard established by
section 8003 of this title; and
[(v) that periodic notification is
provided to owners of residential
swimming pools or spas about compliance
with the entrapment protection
standards of the ASME/ANSI A112.19.8
performance standard, or any successor
standard; and]

[(2) No liability inference associated with State
notification requirement

[The minimum State law notification requirement
under paragraph (1)(A)(v) shall not be construed to
imply any liability on the part of a State related to
that requirement.]

[(3)] (2) Use of minimum State law requirements

The Commission--
(A) shall use the minimum State law
requirements under paragraph (1) solely for the
purpose of determining the eligibility of a
State for a grant under section 8004 of this
title; and
(B) may not enforce any requirement under
paragraph (1) except for the purpose of
determining the eligibility of a State for a
grant under section 8004 of this title.

[(4)] (3) Requirements to reflect national performance
standards and Commission guidelines

In establishing minimum State law requirements under
[paragraph (1)] paragraph (1)(B), the Commission shall--
------

TITLE 22--FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 79--TRADE SANCTIONS REFORM AND EXPORT ENHANCEMENT

Sec. 7209. Requirements relating to certain travel-related transactions
with Cuba

(a) * * *

* * * * * * *
(b) Prohibition on travel relating to tourist activities

* * * * * * *
(c) The Secretary of the Treasury shall promulgate
regulations authorizing by general license the travel related
and other transactions ordinarily incident to professional
research by full-time professionals and their staff; attendance
at professional meetings or conferences in Cuba if the
sponsoring organization is a United States professional
organization; and the organization and management of
professional meetings and conferences in Cuba if the sponsoring
organization is a United States professional organization, if
such travel is related to disaster prevention, emergency
preparedness, and natural resource protection, including for
fisheries, coral reefs, and migratory species.
------

TITLE 28--JUDICIARY AND JUDICIAL PROCEDURE

PART I--ORGANIZATION OF COURTS

CHAPTER 5--DISTRICT COURTS

Sec. 133. Appointment and number of district judges

(a) The President shall appoint, by and with the advice and
consent of the Senate, district judges for the several judicial
districts, as follows:

Districts Judges

Alabama:
* * * * * *
*
[Arizona................................................... 12]
Arizona.................................................... 15
* * * * * *
*
[California:
[Northern................................................ 14
[Eastern................................................. 6
[Central................................................. 27
[Southern................................................ 13]
California:
Northern................................................. 14
Eastern.................................................. 10
Central.................................................. 28
Southern................................................. 13
* * * * * *
*
[Delaware.................................................. 4]
Delaware................................................... 5
* * * * * *
*
[Minnesota................................................. 7]
Minnesota.................................................. 8
* * * * * *
*
[New Mexico................................................ 6]
New Mexico ................................................ 8
* * * * * *
*
[Texas:
[Northern................................................ 12
[Southern................................................ 20
[Eastern................................................. 7
[Western................................................. 15]
Texas:
Northern................................................. 12
Southern................................................. 20
Eastern.................................................. 7
Western.................................................. 15

* * * * * * *
PART V--PROCEDURE

CHAPTER 121--JURIES; TRIAL BY JURY

Sec. 1862. Discrimination prohibited

No citizen shall be excluded from service as a grand or
petit juror in the district courts of the United States or in
the Court of International Trade on account of race, color,
religion, sex, sexual orientation, gender identity, national
origin, or economic status.

* * * * * * *

CHAPTER 123--FEES AND COSTS

Sec. 1914. District court; filing and miscellaneous fees; rules of
court

(a) The clerk of each district court shall require the
parties instituting any civil action, suit or proceeding in
such court, whether by original process, removal or otherwise,
to pay a filing fee of [$350] $362, except that on application
for a writ of habeas corpus the filing fee shall be $5.
------

TITLE 31--MONEY AND FINANCE

Subtitle I--General

CHAPTER 5--OFFICE OF MANAGEMENT AND BUDGET

Subchapter I--Organization

Sec. 501. Office of Management and Budget

* * * * * * *
Pub. L. 111-117, div. C, title VII, Sec. 743, Dec. 16,
2009, 123 Stat. 3216, as amended by Pub. L. 112-74, div. C,
title VII, Sec. 740, Dec. 23, 2011, 125 Stat. 939, provided
that:

``(a) * * *

* * * * * * *

``(e) * * *
``(1) * * *

``(2) ensure that--

* * * * * * *
``(B) [the agency is giving special
management attention to functions that are
closely associated with inherently governmental
functions;] to the maximum extent practicable,
the agency is not using conractor employees to
perform any functions closely associated with
inherently governmental functions;

* * * * * * *

Subtitle II--The Budget Process

CHAPTER 11--THE BUDGET AND FISCAL, BUDGET, AND PROGRAM INFORMATION

Sec. 1105. Budget contents and submission to Congress

(a) * * *

(1) * * *

* * * * * * *
[(35)(A)(i) a detailed, separate analysis, by
budget function, by agency, and by initiative area (as
determined by the administration) for the prior fiscal
year, the current fiscal year, the fiscal years for
which the budget is submitted, and the ensuing fiscal
year identifying the amounts of gross and net
appropriations or obligational authority and outlays
that contribute to homeland security, with separate
displays for mandatory and discretionary amounts,
including--
[(I) summaries of the total amount of such
appropriations or new obligational authority
and outlays requested for homeland security;
[(II) an estimate of the current service
levels of homeland security spending;
[(III) the most recent risk assessment and
summary of homeland security needs in each
initiative area (as determined by the
administration); and
[(IV) an estimate of user fees collected by
the Federal Government on behalf of homeland
security activities;
[(ii) with respect to subclauses (I) through (IV)
of clause (i), amounts shall be provided by account for
each program, project and activity; and
[(iii) an estimate of expenditures for homeland
security activities by State and local governments and
the private sector for the prior fiscal year and the
current fiscal year.
[(B) In this paragraph, consistent with the Office
of Management and Budget's June 2002 ``Annual Report to
Congress on Combatting Terrorism'', the term ``homeland
security'' refers to those activities that detect,
deter, protect against, and respond to terrorist
attacks occurring within the United States and its
territories.
[(C) In implementing this paragraph, including
determining what Federal activities or accounts
constitute homeland security for purposes of budgetary
classification, the Office of Management and Budget is
directed to consult periodically, but at least
annually, with the House and Senate Budget Committees,
the House and Senate Appropriations Committees, and the
Congressional Budget Office.]
[(36)] (35) as supplementary materials, a separate
analysis of the budgetary effects for all prior fiscal
years, the current fiscal year, the fiscal year for
which the budget is submitted, and ensuing fiscal years
of the actions the Secretary of the Treasury has taken
or plans to take using any authority provided in the
Emergency Economic Stabilization Act of 2008,
including--

* * * * * * *
[(37)] (36)\1\information on estimates of
appropriations for the fiscal year following the fiscal
year for which the budget is submitted for the
following medical care accounts of the Veterans Health
Administration, Department of Veterans Affairs account:

* * * * * * *
[(38)] (37) a separate statement for the Crow
Settlement Fund established under section 411 of the
Crow Tribe Water Rights Settlement Act of 2010, which
shall include the estimated amount of deposits into the
Fund, obligations, and outlays from the Fund.
[(37)] (38)\2\ the list of plans and reports, as
provided for under section 1125, that agencies
identified for elimination or consolidation because the
plans and reports are determined outdated or
duplicative of other required plans and reports.

* * * * * * *

CHAPTER 13--APPROPRIATIONS

Subchapter II--Trust Funds and Refunds

Sec. 1324. Refund of internal revenue collections

(a) * * *
(b) * * *
(1) * * *
(2) * * *
(c) Amounts appropriated under subsection (a)of this
section shall be administered, as appropriate, as if they were
made available through separate appropriations to the Secretary
of the Treasury, the Secretary of Homeland Security, and the
Attorney General. Funds so appropriated shall be available to
the Secretary of the Treasury for refunds by the Internal
Revenue Service of taxes collected pursuant to the Internal
Revenue Code and related interest; separately to the Secretary
of the Treasury for refunds and drawbacks of alcohol, tobacco,
firearms and ammunition taxes and refunds of other taxes which
may arise and any interest on such refunds, including payment
of claims for prior fiscal years; to the Secretary of Homeland
Security for refunds and drawbacks of receipts collected
pursuant to the customs revenue functions administered by the
Department of Homeland Security pursuant to delegation by the
Secretary of the Treasury and any interest on such refunds,
including payment of claims for prior fiscal years; and to the
Attorney General for refunds of firearms taxes and refunds of
other taxes which may arise and any interest on such refunds,
including payment of claims for prior fiscal years.

* * * * * * *

Subtitle III--Financial Management

CHAPTER 37--CLAIMS

Subchapter II--Claims of the United States Government

Sec. 3711. Collection and compromise

(a) * * *

* * * * * * *

(i)(1) * * *

* * * * * * *

(5) This subsection is not intended to limit existing
statutory authority of agencies to sell loans, debts, or other
assets.
(j)(1) The Secretary of the Treasury (referred to in this
subsection as the ``Secretary'') may locate and recover assets
of the United States Government on behalf of any executive,
judicial, or legislative agency in accordance with such
procedures as the Secretary considers appropriate.
(2) Notwithstanding any other law concerning the depositing
and collection of Federal payments, including section 3302(b)
of this title, the Secretary may retain a portion of the
amounts recovered pursuant to this subsection to cover the
Secretary's costs associated with locating and recovering
assets of the United States. The amounts retained shall be
deposited into an account established in the Treasury to be
known as the ``Unclaimed Assets Recovery Account'' (referred to
in this paragraph as the ``Account''). Amounts deposited in the
Account shall be available until expended to cover costs
associated with implementation and operation of the Secretary's
asset recovery program established under this subsection.
(3) To carry out the purposes of this subsection, the
Secretary may:
(A) Transfer to the Account from funds appropriated
to the Department of Treasury such amounts as may be
necessary to meet liabilities and obligations incurred
prior to the receipt of recovered assets; and
(B) Reimburse any appropriation from which funds
were transferred under this paragraph from the amounts
retained from recovered assets. Any reimbursement under
this paragraph shall occur during the period of
availability of the funds originally transferred from
an appropriation and shall be available for the same
time period and purposes as originally appropriated.
------

TITLE 41--PUBLIC CONTRACTS

Subtitle I--Federal Procurement Policy

Division B--Office of Federal Procurement Policy

CHAPTER 11--ESTABLISHMENT OF OFFICE AND AUTHORITY AND FUNCTIONS OF
ADMINISTRATOR

Subchapter II--Authority and Functions of the Administrator

Sec. 1127. Determining benchmark compensation amount

(a) * * *

* * * * * * *

(b) * * *

(c) Applicability.--This section shall apply only with
respect to costs of compensation incurred under contracts
entered into before the date that is 180 days after the date of
the enactment of this subsection.

* * * * * * *

Division C--Procurement

CHAPTER 43--ALLOWABLE COSTS

Sec. 4301. Definitions

In this chapter:

(1) Compensation.--* * *

* * * * * * *
[(4) Senior executive.--The term ``senior
executive'', with respect to a contractor, means the 5
most highly compensated employees in management
positions at each home office and each segment of the
contractor.]

* * * * * * *

Sec. 4304. Specific costs not allowable

(a) * * *
(1) * * *

* * * * * * *

[(16) Costs of compensation of senior executives of
contractors for a fiscal year, regardless of the
contract funding source, to the extent that the
compensation exceeds the benchmark compensation amount
determined applicable for the fiscal year by the
Administrator under section 1127 of this title.]
(16) Costs of compensation of any contractor or
subcontractor employee for a fiscal year, regardless of
the contract funding source, to the extent that such
compensation exceeds the annual amount paid to the
President of the United States in accordance with
section 102 of title 3, except that the head of an
executive agency may establish one or more narrowly
targeted exceptions for scientists, engineers, and
other specialist positions upon a determination that
such exceptions are needed to ensure that the executive
agency has continued access to needed skills and
capabilities.
------

JUDICIAL IMPROVEMENTS ACT OF 1990, PUBLIC LAW 101-650

TITLE II--FEDERAL JUDGESHIPS

SEC. 203. DISTRICT JUDGES FOR THE DISTRICT COURTS.

(a) * * *

* * * * * * *

Except with respect to the district of Kansas, the western
district of Michigan, the eastern district of Pennsylvania, the
district of Hawaii, and the northern district of Ohio, the
first vacancy in the office of district judge in each of the
judicial districts named in this subsection, occurring 10 years
and six months or more after the confirmation date of the judge
named to fill the temporary judgeship created by this
subsection, shall not be filled. The first vacancy in the
office of district judge in the district of Kansas occurring
[22 years and six months] 23 years and six months or more after
the confirmation date of the judge named to fill the temporary
judgeship created for such district under this subsection,
shall not be filled. The first vacancy in the office of
district judge in the western district of Michigan, occurring
after December 1, 1995, shall not be filled. The first vacancy
in the office of district judge in the eastern district of
Pennsylvania, occurring 5 years or more after the confirmation
date of the judge named to fill the temporary judgeship created
for such district under this subsection, shall not be filled.
The first vacancy in the office of district judge in the
northern district of Ohio occurring 19 years or more after the
confirmation date of the judge named to fill the temporary
judgeship created under this subsection shall not be filled.
The first vacancy in the office of the district judge in the
district of Hawaii occurring [19 years and six months] 20 years
and six months or more after the confirmation date of the judge
named to fill the temporary judgeship created under this
subsection shall not be filled. For districts named in this
subsection for which multiple judgeships are created by this
Act, the last of those judgeships filled shall be the
judgeships created under this section.
------

21ST CENTURY DEPARTMENT OF JUSTICE APPROPRIATIONS AUTHORIZATION ACT,
PUBLIC LAW 107-273

TITLE III--MISCELLANEOUS

Pub. L. 107-273, div. A, title III, Sec. 312(c), Nov. 2,
2002, 116 Stat. 1788, as amended by Pub. L. 113-6, div. F,
title III, Sec. 312(c), Mar. 26, 2013, 127 Stat. 418, provided
that:

``(c) Temporary Judgeships.--

``(1) In general.-- * * *

* * * * * * *

``(2) Vacancies not filled.--The first vacancy in
the office of district judge in each of the offices of
district judge authorized by this subsection, except in
the case of the central district of California and the
western district of North Carolina, occurring [11
years] 12 years or more after the confirmation date of
the judge named to fill the temporary district
judgeship created in the applicable district by this
subsection, shall not be filled. The first vacancy in
the office of district judge in the central district of
California occurring [10 years and 6 months] 11 years
and 6 months or more after the confirmation date of the
judge named to fill the temporary district judgeship
created in that district by this subsection, shall not
be filled. The first vacancy in the office of district
judge in the western district of North Carolina
occurring 10 years or more after the confirmation date
of the judge named to fill the temporary district
judgeship created in that district by this subsection,
shall not be filled.

ENSURING NEEDED HELP ARRIVES NEAR CALLERS EMPLOYING 911 ACT, 2004,
PUBLIC LAW 108-494

* * * * * * *

Universal Service Antideficiency Temporary Suspension Act

TITLE III--UNIVERSAL SERVICE

SEC. 302. APPLICATION OF CERTAIN TITLE 31 PROVISIONS TO UNIVERSAL
SERVICE FUND.

(a) In General.--During the period beginning on the date of
enactment of this Act and ending on [December 31, 2013]
December 31, 2015, section 1341 and subchapter II of chapter 15
of title 31, United States Code, do not apply--

* * * * * * *

(b) Post-2005 Fulfillment of Protected Obligations.--
Section 1341 and subchapter II of chapter 15 of title 31,
United States Code, do not apply after [December 31, 2013]
December 31, 2015, to an expenditure or obligation described in
subsection (a)(2) made or authorized during the period
described in subsection (a).
------

AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009, PUBLIC LAW 111-5

Division A--Appropriations Provisions

TITLE XV--ACCOUNTABILITY AND TRANSPARENCY

Subtitle A--Transparency and Oversight Requirements

SEC. 1511. CERTIFICATIONS.

With respect to covered funds made available to State or
local governments for infrastructure investments, the Governor,
mayor, or other chief executive, as appropriate, shall certify
that the infrastructure investment has received the full review
and vetting required by law and that the chief executive
accepts responsibility that the infrastructure investment is an
appropriate use of taxpayer dollars. Such certification shall
include a description of the investment, the estimated total
cost, and the amount of covered funds to be used, and shall be
posted on a website [and linked to the website established by
section 1526]. A State or local agency may not receive
infrastructure investment funding from funds made available in
this Act unless this certification is made and posted.

* * * * * * *
SEC. 1512. REPORTS ON USE OF FUNDS.

(a) * * *

* * * * * * *

[(c) Recipient Reports.--Not later than 10 days after the
end of each calendar quarter, each recipient that received
recovery funds from a Federal agency shall submit a report to
that agency that contains--

* * * * * * *

[(d) Agency Reports.--Not later than 30 days after the end
of each calendar quarter, each agency that made recovery funds
available to any recipient shall make the information in
reports submitted under subsection (c) publicly available by
posting the information on a website.]
(d) Agency Reports.--Starting October 1, 2013, each agency
that made recovery funds available to any recipient shall make
available to the public detailed spending data as prescribed by
the Office of Management and Budget and pursuant to the Federal
Funding Accountability and Transparency Act of 2006 (Public Law
109-282).
(e) Other Reports.--The Congressional Budget Office and the
Government Accountability Office shall comment on the
information described in subsection (c)(3)(D) for any reports
submitted under subsection (c). Such comments shall be due
within 45 days after such reports are submitted.
(f) Compliance.--Within 180 days of enactment, as a
condition of receipt of funds under this Act, Federal agencies
shall require any recipient of such funds to provide the
information required under subsection (c).
(g) Guidance.--Federal agencies, in coordination with the
Director of the Office of Management and Budget, shall provide
for user-friendly means for recipients of covered funds to meet
the requirements of this section.
(h) Registration.--Funding recipients required to report
information per subsection (c)(4) must register with the
Central Contractor Registration database or complete other
registration requirements as determined by the Director of the
Office of anagement and Budget.

* * * * * * *
SEC. 1514. INSPECTOR GENERAL REVIEWS.

(a) Reviews.--Any inspector general of a Federal department
or executive agency shall review, as appropriate, any concerns
raised by the public about specific investments using funds
made available in this Act. Any findings of such reviews not
related to an ongoing criminal proceeding shall be relayed
immediately to the head of the department or agency concerned.
In addition, the findings of such reviews, along with any
audits conducted by any inspector general of funds made
available in this Act, shall be posted on the inspector
general's website [and linked to the website established by
section 1526], except that portions of reports may be redacted
to the extent the portions would disclose information that is
protected from public disclosure under sections 552 and 552a of
title 5, United States Code.

* * * * * * *
Subtitle B--Recovery Accountability and Transparency Board

* * * * * * *
SEC. 1523. FUNCTIONS OF THE BOARD.

(a) * * *

* * * * * * *
(b) Reports.--* * *
(1) * * *

* * * * * * *
(4) Public availability.--
(A) In general.--All reports submitted
under this subsection shall be made publicly
available and posted on [the website
established by section 1526] a public website.

* * * * * * *
SEC. 1530. TERMINATION OF THE BOARD.

The Board shall terminate on September 30, [2013] 2015.
------

DISTRICT OF COLUMBIA HOME RULE ACT

TITLE IV--THE DISTRICT CHARTER

PART D--DISTRICT BUDGET AND FINANCIAL MANAGEMENT

Subpart 1--Budget and Financial Management

ENACTMENT OF APPROPRIATIONS BY CONGRESS

Sec. 446. [D.C. Official Code Sec. 1-204.46] The Council,
within 56 calendar days after receipt of the budget proposal
from the Mayor, and after public hearing, shall by act adopt
the annual budget for the District of Columbia government. Any
supplements thereto shall also be adopted by act by the Council
after public hearing. [Such budget so adopted shall be
submitted by the Mayor to the President for transmission by him
to the Congress.] The Mayor shall submit to the President of
the United States for transmission to Congress the portion of
the budget so adopted with respect to Federal funds and the
Mayor shall notify the Speaker of the House of Representatives,
and the President of the Senate, as to the portion of the
budget so adopted with respect to local funds; provided, that
in a control year (as defined in section 305(4) of the District
of Columbia Financial Responsibility and Management Assistance
Act of 1995 (D.C. Official Code, sec. 47-393(4)), the Mayor
shall submit to the President of the United States for
transmission to Congress the budget so adopted. Except as
provided in section 445A(b), section 467(d), section 471(c),
section 472(d)(2), section 475(e)(2), section 483(d), and
section 490(f), (g), (h)(3), and (i)(3), [D.C. Official Code
Sec. 1-204.45a(b), Sec. 1-204.67(d), Sec. 1-204.71(c), Sec. 1-
204.72(d)(2), Sec. 1-204.75(e)(2), Sec. 1-204.83(d), and
subsections (f), (g), (h)(3), and (i)(3) of Sec. Sec. 1-204.90]
no amount may be obligated or expended by any officer or
employee of the District of Columbia government unless such
amount has been approved by Act of Congress, and then only
according to such Act: Provided, That, notwithstanding any
other provision of this Act, effective for fiscal year 2013,
and for each succeeding fiscal year, during a period in which
there is an absence of a Federal appropriations Act authorizing
the expenditure of District of Columbia local funds, the
District of Columbia may obligate and expend local funds for
programs and activities at the rate set forth in the Budget
Request Act adopted by the Council, or a reprogramming adopted
pursuant to this section. Notwithstanding any other provision
of this Act, [the Mayor shall not transmit any annual budget or
amendments or supplements thereto, to the President of the
United States] the Mayor shall not submit to the President of
the United States, or, for a fiscal year which is not a control
year, notify the Speaker of the House of Representatives and
the President of the Senate regarding, any annual budget or
amendments or supplements thereto until the completion of the
budget procedures contained in this Act. After the adoption of
the annual budget for a fiscal year (beginning with the annual
budget for fiscal year 1995), no reprogramming of amounts in
the budget may occur unless the Mayor submits to the Council a
request for such reprogramming and the Council approves the
request, but only if any additional expenditures provided under
such request for an activity are offset by reductions in
expenditures for another activity.

* * * * * * *

ACCEPTANCE OF GRANT AMOUNTS NOT INCLUDED IN ANNUAL BUDGET

Sec. 446B. [D.C. Official Code Sec. 1-204.46b] (a) * * *

* * * * * * *
(f) * * *

BUDGET AND FISCAL YEAR AUTONOMY

Sec. 446C. (a) Budget Autonomy.--Notwithstanding the fourth
sentence of section 446 of the Home Rule Act (D.C. Official
Code, sec. 1-204.46), the second and third sentences of section
447 of the Home Rule Act (D.C. Official Code, sec. 1-204.47),
section 602(c) of the Home Rule Act (D.C. Official Code, sec.
1-206.02(c)), or sections 816 and 817 of the Financial Services
and General Government Appropriations Act, 2009 (D.C. Official
Code, secs. 47-369.01 and 47-369.02), upon the enactment by the
District of Columbia of the annual budget, or any amendments or
supplements thereto, for a fiscal year, officers and employees
of the District of Columbia government may obligate and expend
District of Columbia funds and hire employees in accordance
with that budget.
(b) Fiscal Year Autonomy.--Notwithstanding section 441 of
the Home Rule Act (D.C. Official Code, sec. 1-204.41), the
fiscal year of the District government and any entity of the
District government shall commence and end on such dates as may
be established by the District of Columbia.
(c) Exception for Control Year.--Subsection (a) shall not
apply in the case of any fiscal year that is a control year, as
defined in section 305(4) of the District of Columbia Financial
Responsibility and Management Assistance Act of 1995 (D.C.
Official Code, sec. 47-393(4)).
(d) Effective Date.--This section shall apply with respect
to fiscal year 2014 and each succeeding fiscal year.

BUDGETARY IMPACT OF BILL

PREPARED IN CONSULTATION WITH THE CONGRESSIONAL BUDGET OFFICE PURSUANT TO SEC. 308(a), PUBLIC LAW 93-344, AS
AMENDED
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Budget authority Outlays
----------------------------------------------------
Committee Amount in Committee Amount in
guidance\1\ bill guidance bill
----------------------------------------------------------------------------------------------------------------
Comparison of amounts in the bill with Committee guidance
to its subcommittees of amounts in the budget resolution
for 2014: Subcommittee on Financial Services and General
Government:
Mandatory.............................................. NA 21,229 NA \2\21,223
Discretionary.......................................... 23,031 23,190 NA \2\24,186
Security........................................... 27 27 NA NA
Nonsecurity........................................ 23,004 23,163 NA NA
Projections of outlays associated with the recommendation:
2014................................................... ............ ........... ........... \3\39,449
2015................................................... ............ ........... ........... 4,355
2016................................................... ............ ........... ........... 869
2017................................................... ............ ........... ........... 306
2018 and future years.................................. ............ ........... ........... 194
Financial assistance to State and local governments for NA 653 NA 445
2014......................................................

----------------------------------------------------------------------------------------------------------------
\1\There is no section 302(a) allocation to the Committee on Appropriations for fiscal year 2014.
\2\Includes outlays from prior-year budget authority.
\3\Excludes outlays from prior-year budget authority.

NA: Not applicable.

NOTE.--Consistent with the funding recommended in the bill for disaster relief funding and in accordance with
section 251(b)(2)(D) of the BBEDCA of 1985, the Committee anticipates that the Budget Committee will provide,
at the appropriate time, 302(a) allocation for the Committee on Appropriations reflecting an upward adjustment
of $159,000,000 in budget authority plus associated outlays.

COMPARATIVE STATEMENT OF NEW BUDGET (OBLIGATIONAL) AUTHORITY FOR FISCAL YEAR 2013 AND BUDGET ESTIMATES AND AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL
YEAR 2014
[In thousands of dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Senate Committee recommendation
compared with (+ or -)
Item 2013 Budget estimate Committee -----------------------------------
appropriation recommendation 2014
appropriation Budget estimate
--------------------------------------------------------------------------------------------------------------------------------------------------------
TITLE I--DEPARTMENT OF THE TREASURY

Departmental Offices

Salaries and expenses......................................... 307,771 311,775 302,450 -5,321 -9,325
Department-wide Systems and Capital Investments Programs...... ................ 2,725 2,725 +2,725 ................
Office of Inspector General................................... 29,582 31,351 32,000 +2,418 +649
Treasury Inspector General for Tax Administration............. 151,393 149,538 156,375 +4,982 +6,837
Special Inspector General for TARP............................ 41,716 34,923 34,923 -6,793 ................
Financial Crimes Enforcement Network.......................... 110,566 103,909 112,000 +1,434 +8,091
-----------------------------------------------------------------------------------------
Subtotal, Departmental Offices.......................... 641,028 634,221 640,473 -555 +6,252

Treasury Forfeiture Fund (rescission)......................... -950,000 -950,000 -1,200,000 -250,000 -250,000
-----------------------------------------------------------------------------------------
Total, Departmental Offices............................. -308,972 -315,779 -559,527 -250,555 -243,748
=========================================================================================
Financial Management Service.................................. 217,369 ................ ................ -217,369 ................
Alcohol and Tobacco Tax and Trade Bureau...................... 99,678 96,211 100,678 +1,000 +4,467
Bureau of the Public Debt..................................... 172,290 ................ ................ -172,290 ................
Bureau of the Fiscal Service.................................. ................ 360,165 360,165 +360,165 ................
Community Development Financial Institutions Fund Program 220,558 224,936 230,000 +9,442 +5,064
Account......................................................
Payment of Government Losses in Shipment...................... 2,000 2,000 2,000 ................ ................
-----------------------------------------------------------------------------------------
Total, Department of the Treasury, non-IRS.............. 402,923 367,533 133,316 -269,607 -234,217
=========================================================================================
Internal Revenue Service

Taxpayer services............................................. 2,235,224 2,412,576 2,316,246 +81,022 -96,330

Enforcement................................................... 5,288,768 5,420,883 5,342,980 +54,212 -77,903
Enhanced tax enforcement activities....................... ................ 245,904 ................ ................ -245,904
-----------------------------------------------------------------------------------------
Subtotal................................................ 5,288,768 5,666,787 5,342,980 +54,212 -323,807

Operations support............................................ 3,939,521 4,314,757 4,109,506 +169,985 -205,251
Enhanced tax enforcement activities....................... ................ 166,086 ................ ................ -166,086
-----------------------------------------------------------------------------------------
Subtotal................................................ 3,939,521 4,480,843 4,109,506 +169,985 -371,337

Business systems modernization................................ 329,550 300,827 300,827 -28,723 ................
-----------------------------------------------------------------------------------------
Total, Internal Revenue Service......................... 11,793,063 12,861,033 12,069,559 +276,496 -791,474
=========================================================================================
Total, title I, Department of the Treasury.............. 12,195,986 13,228,566 12,202,875 +6,889 -1,025,691
Appropriations...................................... (13,145,986) (13,766,576) (13,402,875) (+256,889) (-363,701)
Rescissions......................................... (-950,000) (-950,000) (-1,200,000) (-250,000) (-250,000)
=========================================================================================
TITLE II--EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS
APPROPRIATED TO THE PRESIDENT

The White House

Salaries and expenses......................................... 56,860 55,110 55,110 -1,750 ................
Compensation of the President............................. 450 450 450 ................ ................
-----------------------------------------------------------------------------------------
Subtotal................................................ 57,310 55,560 55,560 -1,750 ................

Executive Residence at the White House:
Operating expenses........................................ 13,398 12,768 12,768 -630 ................
White House repair and restoration........................ 749 750 750 +1 ................
-----------------------------------------------------------------------------------------
Subtotal................................................ 14,147 13,518 13,518 -629 ................

Council of Economic Advisers.................................. 4,184 4,192 4,192 +8 ................
National Security Council and Homeland Security Council....... 13,022 12,621 12,621 -401 ................
Office of Administration...................................... 112,726 113,135 113,135 +409 ................
-----------------------------------------------------------------------------------------
Total, The White House.................................. 201,389 199,026 199,026 -2,363 ................
=========================================================================================
Office of Management and Budget............................... 89,277 93,397 93,397 +4,120 ................

Office of National Drug Control Policy

Salaries and expenses......................................... 24,451 22,647 23,000 -1,451 +353
High Intensity Drug Trafficking Areas Program................. 238,045 193,400 238,522 +477 +45,122
Other Federal Drug Control Programs........................... 105,339 95,376 105,550 +211 +10,174
-----------------------------------------------------------------------------------------
Total, Office of National Drug Control Policy........... 367,835 311,423 367,072 -763 +55,649
=========================================================================================
Unanticipated needs........................................... 986 1,000 1,000 +14 ................
Data-driven innovation........................................ ................ 14,000 6,000 +6,000 -8,000
Integrated, efficient and effective uses of information 4,990 ................ 8,000 +3,010 +8,000
technology...................................................

Special Assistance to the President and Official Residence of
the Vice President:
Salaries and expenses..................................... 4,319 4,328 4,328 +9 ................
Operating expenses........................................ 306 307 307 +1 ................
-----------------------------------------------------------------------------------------
Subtotal................................................ 4,625 4,635 4,635 +10 ................
=========================================================================================
Total, title II, Executive Office of the President and 669,102 623,481 679,130 +10,028 +55,649
Funds Appropriated the President.......................
=========================================================================================
TITLE III--THE JUDICIARY

Supreme Court of the United States

Salaries and expenses:
Salaries of Justices...................................... 2,207 2,213 2,213 +6 ................
Other salaries and expenses............................... 72,477 72,625 72,625 +148 ................
-----------------------------------------------------------------------------------------
Subtotal................................................ 74,684 74,838 74,838 +154 ................

Care of the building and grounds.............................. 8,143 11,635 11,158 +3,015 -477
-----------------------------------------------------------------------------------------
Total, Supreme Court of the United States............... 82,827 86,473 85,996 +3,169 -477
=========================================================================================
United States Court of Appeals for the Federal Circuit

Salaries and expenses:
Salaries of judges........................................ 2,524 2,532 2,532 +8 ................
Other salaries and expenses............................... 29,938 30,823 30,823 +885 ................
-----------------------------------------------------------------------------------------
Total, United States Court of Appeals for the Federal 32,462 33,355 33,355 +893 ................
Circuit................................................
=========================================================================================
United States Court of International Trade

Salaries and expenses:
Salaries of judges........................................ 1,715 1,727 1,727 +12 ................
Other salaries and expenses............................... 19,690 20,246 19,651 -39 -595
-----------------------------------------------------------------------------------------
Total, U.S. Court of International Trade................ 21,405 21,973 21,378 -27 -595
=========================================================================================
Courts of Appeals, District Courts, and Other Judicial
Services

Salaries and expenses:
Salaries of judges and bankruptcy judges.................. 338,037 353,062 353,062 +15,025 ................
Other salaries and expenses............................... 4,677,918 4,817,177 4,736,107 +58,189 -81,070
-----------------------------------------------------------------------------------------
Subtotal................................................ 5,015,955 5,170,239 5,089,169 +73,214 -81,070

Vaccine Injury Compensation Trust Fund........................ 4,990 5,327 5,327 +337 ................
Defender services............................................. 1,037,920 1,068,623 1,098,446 +60,526 +29,823
Fees of jurors and commissioners.............................. 51,804 54,414 54,891 +3,087 +477
Court security................................................ 499,000 524,338 520,278 +21,278 -4,060
-----------------------------------------------------------------------------------------
Total, Courts of Appeals, District Courts, and Other 6,609,669 6,822,941 6,768,111 +158,442 -54,830
Judicial Services......................................
=========================================================================================
Administrative Office of the United States Courts

Salaries and expenses......................................... 82,743 85,354 83,601 +858 -1,753

Federal Judicial Center

Salaries and expenses......................................... 26,946 27,664 26,400 -546 -1,264

Judicial Retirement Funds

Payment to Judiciary Trust Funds.............................. 125,464 126,931 126,931 +1,467 ................

United States Sentencing Commission

Salaries and expenses......................................... 16,467 17,016 16,637 +170 -379
=========================================================================================
Total, title III, the Judiciary......................... 6,997,983 7,221,707 7,162,409 +164,426 -59,298
=========================================================================================
TITLE IV--DISTRICT OF COLUMBIA

Federal Payment for Resident Tuition Support.................. 29,940 35,000 35,000 +5,060 ................
Federal payment for Emergency Planning and Security Costs in 24,651 14,900 14,900 -9,751 ................
the District of Columbia.....................................
Federal Payment to the District of Columbia Courts............ 232,375 222,667 232,137 -238 +9,470
Federal Payment for Defender Services in District of Columbia 54,890 49,890 49,890 -5,000 ................
Courts.......................................................
Federal Payment to the Court Services and Offender Supervision 212,557 227,968 227,968 +15,411 ................
Agency for the District of Columbia..........................
Federal Payment to the District of Columbia Public Defender 37,167 40,607 40,607 +3,440 ................
Service......................................................
Federal Payment to the District of Columbia Water and Sewer 14,970 14,500 14,500 -470 ................
Authority....................................................
Federal Payment to the Criminal Justice Coordinating Council.. 1,796 1,800 1,800 +4 ................
Federal Payment for Judicial Commissions...................... 499 500 500 +1 ................
Federal Payment for School Improvement........................ 59,880 52,200 42,200 -17,680 -10,000
Federal Payment for the D.C. National Guard................... 374 500 500 +126 ................
Federal Payment for Redevelopment of the St. Elizabeth's ................ 9,800 9,800 +9,800 ................
Hospital Campus..............................................
Federal Payment for Testing and Treatment of HIV/AIDS......... 4,990 5,000 5,000 +10 ................
Federal payment for D.C. Commission on the Arts and Humanities ................ 1,000 ................ ................ -1,000
Grants.......................................................
=========================================================================================
Total, Title IV, District of Columbia................... 674,089 676,332 674,802 +713 -1,530
=========================================================================================
TITLE V--OTHER INDEPENDENT AGENCIES

Administrative Conference of the United States................ 2,894 3,200 3,200 +306 ................
Christopher Columbus Fellowship Foundation.................... 449 ................ 150 -299 +150
Commodity Futures Trading Commission.......................... 204,883 315,000 315,000 +110,117 ................
Consumer Product Safety Commission............................ 114,271 117,000 117,000 +2,729 ................

Election Assistance Commission

Salaries and expenses......................................... 11,477 11,063 11,063 -414 ................

Federal Communications Commission

Salaries and expenses......................................... 339,844 359,299 359,299 +19,455 ................
Offsetting fee collections--current year...................... -339,844 -359,299 -359,299 -19,455 ................
-----------------------------------------------------------------------------------------
Direct appropriation...................................... ................ ................ ................ ................ ................

Federal Deposit Insurance Corporation: Office of Inspector (34,568) (34,568) (34,568) ................ ................
General (by transfer)........................................
Federal Election Commission................................... 66,234 65,791 66,395 +161 +604
Federal Labor Relations Authority............................. 24,674 25,490 25,490 +816 ................

Federal Trade Commission

Salaries and expenses......................................... 310,940 301,000 301,000 -9,940 ................
Offsetting fee collections--current year...................... -115,000 -103,000 -197,000 -82,000 -94,000
Offsetting fee collections, telephone database................ -15,000 -15,000 -15,000 ................ ................
-----------------------------------------------------------------------------------------
Direct appropriation...................................... 180,940 183,000 89,000 -91,940 -94,000

General Services Administration

Federal Buildings Fund

Limitations on Availability of Revenue:
Construction and acquisition of facilities................ 50,000 816,167 816,167 +766,167 ................
Repairs and alterations................................... 280,000 1,302,382 1,261,382 +981,382 -41,000
Construction and repair................................... ................ ................ 41,000 +41,000 +41,000
Installment acquisition payments.......................... 126,801 113,470 113,470 -13,331 ................
Rental of space........................................... 5,210,198 5,387,109 5,387,109 +176,911 ................
Building operations....................................... 2,350,968 2,331,432 2,331,432 -19,536 ................
-----------------------------------------------------------------------------------------
Subtotal, Limitations on availability of revenue........ 8,017,967 9,950,560 9,950,560 +1,932,593 ................

Repayment of debt............................................. 87,620 ................ ................ -87,620 ................
Rental income to fund......................................... -9,777,590 -9,950,560 -9,950,560 -172,970 ................
-----------------------------------------------------------------------------------------
Total, Federal Buildings Fund........................... -1,672,003 ................ ................ +1,672,003 ................
=========================================================================================
Government-wide policy........................................ 60,993 62,548 62,548 +1,555 ................
Operating expenses............................................ 69,361 64,453 64,453 -4,908 ................
Office of Inspector General................................... 57,884 62,908 62,908 +5,024 ................
Electronic Government Fund.................................... 12,375 20,150 20,150 +7,775 ................
Allowances and office staff for former Presidents............. 3,663 3,550 3,550 -113 ................
Federal Citizen Services Fund................................. 34,032 34,804 34,804 +772 ................
-----------------------------------------------------------------------------------------
Total, General Services Administration.................. -1,433,695 248,413 248,413 +1,682,108 ................
=========================================================================================
Harry S Truman Scholarship Foundation......................... 747 ................ 750 +3 +750

Merit Systems Protection Board

Salaries and expenses......................................... 40,177 40,070 42,740 +2,563 +2,670
Limitation on administrative expenses......................... 2,340 2,345 2,345 +5 ................
-----------------------------------------------------------------------------------------
Total, Merit Systems Protection Board................... 42,517 42,415 45,085 +2,568 +2,670
=========================================================================================
Morris K. Udall and Stewart L. Udall Foundation

Morris K. Udall and Stewart L. Udall Trust Fund............... 2,196 2,100 2,100 -96 ................
Environmental Dispute Resolution Fund......................... 3,784 3,600 3,600 -184 ................
-----------------------------------------------------------------------------------------
Total, Morris K. Udall and Stewart L. Udall Foundation.. 5,980 5,700 5,700 -280 ................
=========================================================================================
National Archives and Records Administration

Operating expenses............................................ 372,553 370,706 370,706 -1,847 ................
Reduction of debt......................................... -17,000 -18,000 -18,000 -1,000 ................
-----------------------------------------------------------------------------------------
Subtotal................................................ 355,553 352,706 352,706 -2,847 ................

Office of the Inspector General............................... 4,092 4,130 4,130 +38 ................
Repairs and restoration....................................... 9,082 8,000 8,000 -1,082 ................
National Historical Publications and Records Commission Grants 4,990 3,000 5,000 +10 +2,000
Program......................................................
-----------------------------------------------------------------------------------------
Total, National Archives and Records Administration..... 373,717 367,836 369,836 -3,881 +2,000
=========================================================================================
National Credit Union Administration

Community Development Revolving Loan Fund..................... 1,245 1,128 1,128 -117 ................
Office of Government Ethics................................... 18,627 15,325 15,325 -3,302 ................

Office of Personnel Management

Salaries and expenses......................................... 97,578 95,757 95,757 -1,821 ................
Limitation on administrative expenses..................... 112,291 118,578 118,578 +6,287 ................
Office of Inspector General................................... 3,136 4,684 4,684 +1,548 ................
Limitation on administrative expenses..................... 21,132 21,340 21,340 +208 ................
Govt Payment for Annuitants, Employees Health Benefits........ 10,818,000 11,404,000 11,404,000 +586,000 ................
Govt Payment for Annuitants, Employee Life Insurance.......... 51,000 53,000 53,000 +2,000 ................
Payment to Civil Svc Retirement and Disability Fund........... 9,780,000 9,178,000 9,178,000 -602,000 ................
-----------------------------------------------------------------------------------------
Total, Office of Personnel Management................... 20,883,137 20,875,359 20,875,359 -7,778 ................
=========================================================================================
Office of Special Counsel..................................... 18,934 20,639 20,639 +1,705 ................
Postal Regulatory Commission.................................. 14,275 14,304 14,304 +29 ................
Privacy and Civil Liberties Oversight Board................... 898 3,100 4,100 +3,202 +1,000
Recovery and Accountability Transparency Board................ 28,293 12,500 20,000 -8,293 +7,500

Securities and Exchange Commission............................ 1,321,000 1,674,000 1,674,000 +353,000 ................
SEC fees.................................................. -1,321,000 -1,674,000 -1,674,000 -353,000 ................
Selective Service System...................................... 23,936 24,134 22,900 -1,036 -1,234

Small Business Administration

Entreprenuerial development programs.......................... ................ ................ 211,490 +211,490 +211,490
Salaries and expenses......................................... 416,513 485,923 254,833 -161,680 -231,090
Office of Inspector General................................... 16,234 19,400 19,400 +3,166 ................
Office of Advocacy............................................ 9,102 8,455 8,455 -647 ................

Business Loans Program Account:
Direct loans subsidy...................................... 3,671 4,600 4,600 +929 ................
Guaranteed loans subsidy.................................. 332,933 107,000 107,000 -225,933 ................
Administrative expenses................................... 147,662 151,560 151,560 +3,898 ................
-----------------------------------------------------------------------------------------
Total, Business loans program account................... 484,266 263,160 263,160 -221,106 ................
=========================================================================================

Disaster Loans Program Account:
Administrative expenses................................... 117,065 33,250 33,250 -83,815 ................
Disaster relief category.............................. ................ 158,650 158,650 +158,650 ................
-----------------------------------------------------------------------------------------
Total, Disaster loans program account............... 117,065 191,900 191,900 +74,835 ................
-----------------------------------------------------------------------------------------
Total, Small Business Administration................ 1,043,180 968,838 949,238 -93,942 -19,600
=========================================================================================
United States Postal Service

Payment to the Postal Service Fund:
Advance appropriations.................................... 78,153 70,751 70,751 -7,402 ................
Office of Inspector General................................... 240,985 241,468 241,468 +483 ................
-----------------------------------------------------------------------------------------
Total, United States Postal Service..................... 319,138 312,219 312,219 -6,919 ................

United States Tax Court....................................... 50,977 52,653 52,653 +1,676 ................
=========================================================================================
Total, title V, Independent Agencies.................... 21,997,728 23,685,107 23,584,947 +1,587,219 -100,160
Appropriations...................................... (21,919,575) (23,455,706) (23,355,546) (+1,435,971) (-100,160)
Advances............................................ (78,153) (70,751) (70,751) (-7,402) ................
(By transfer)........................................... (34,568) (34,568) (34,568) ................ ................
=========================================================================================
OTHER APPROPRIATIONS

Disaster Relief Appropriations Act, 2013 (Public Law 113-2)

General Services Administration

Federal Buildings Fund

Repairs and alterations (emergency)........................... 7,000 ................ ................ -7,000 ................

Small Business Administration

Salaries and expenses (emergency)............................. 20,000 ................ ................ -20,000 ................
Office of Inspector General (emergency)....................... 5,000 ................ ................ -5,000 ................

Disaster Loans Program Account:
Direct loan subsidy (emergency)........................... 520,000 ................ ................ -520,000 ................
Administrative expenses (emergency)....................... 259,000 ................ ................ -259,000 ................
-----------------------------------------------------------------------------------------
Total, Disaster Loans Program Account................... 779,000 ................ ................ -779,000 ................
-----------------------------------------------------------------------------------------
Total, Small Business Administration.................... 804,000 ................ ................ -804,000 ................
=========================================================================================
Total, Other Appropriations............................. 811,000 ................ ................ -811,000 ................
=========================================================================================
Grand total............................................. 43,345,888 45,435,193 44,304,163 +958,275 -1,131,030
Appropriations...................................... (43,406,735) (45,743,802) (45,274,762) (+1,868,027) (-469,040)
Rescissions......................................... (-950,000) (-950,000) (-1,200,000) (-250,000) (-250,000)
Emergency appropriations............................ (811,000) ................ ................ (-811,000) ................
Advances............................................ (78,153) (70,751) (70,751) (-7,402) ................
(By transfer)........................................... (34,568) (34,568) (34,568) ................ ................
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