Appropriates $37,000,000 for the Office of Management and Budget as proposed by the Senate instead of $34,274,000 as proposed by the House, and continues a provision prohibiting the Office of Management and Budget from reviewing certain transcripts. The conferees agree to delete a prohibition against the use of funds appropriated in this Act to fund activities of the Office of Information and Regulatory Affairs. (See Title VIII of this amendment.)

Appropriates $1,600,000 for the Office of Federal Procurement Policy as proposed by the Senate instead of $1,660,000 as proposed by the House.

Appropriates $1,000,000 for unanticipated needs as proposed by the House instead of $500,000 as proposed by the Senate.

TITLE IV-INDEPENDENT AGENCIES

Appropriates $1,469,000 for the Administrative Conference of the United States, instead of $1,559,000 as proposed by the House, and $1,369,000 as proposed by the Senate.

Appropriates $1,750,000 for the Advisory Commission on Intergovernmental Relations instead of $1,045,000 as proposed by the House and $1,953,000 as proposed by the Senate.

The conferees concur with the directive outlined in House Report 99-223 which mandates increased state contributions for the operation of the Advisory Commission in Intergovernmental Relations. However, the conferees agree with the Senate position that such a cost sharing program should be implemented over some reasonable period of time. Therefore, to insure the implementation of a federal-state cost sharing plan, the conference agreement provides $1,750,000 in federal funds for the operation of ACIR in fiscal year 1987. This amount is $750,000 above the House passed level and $203,000 less than the amount proposed by the Senate. For the outyears, the conferees direct the ACIR to request not more than $1,390,000 in federal funds for fiscal year 1988 and not to exceed $1,040,000 in federal funds for fiscal year 1989. After this implementation period is completed, the ACIR should request no more than $1,040,000 in federal funds for the operation of the Commission. No funds are provided to the ACIR for preparing or submitting budget requests which exceed the specified amounts for the fiscal years mentioned in this conference report. To augment federal appropriations, the ACIR should aggressively pursue contributions from the several states and increase receipts generated from the sale of Commission publications.

Appropriates $201,000 for the Advisory Committee on Federal Pay as proposed by the Senate instead of $229,000 as proposed by the House.

Appropriates $778,000 for the Committee for Purchase from the Blind and Other Severely Handicapped as proposed by the House instead of $699,000 as proposed by the Senate, and deletes a provision relating to central non-profit agencies proposed by the House and deleted by the Senate. The conferees direct the Committee to study the feasibility of an affirmative action program for the hiring, placement, and advancement of handicapped individuals, and report the results to the Committee on Appropriations.

Appropriates $12,800,000 for the Federal Election Commission as proposed by the Senate instead of $12,000,000 as proposed by the House.

GENERAL SERVICES ADMINISTRATION

Appropriates $160,944,000 for the Federal Supply Service as proposed by the Senate instead of $170,839,000 as proposed by the House, and inserts a provision increasing the limitation for expenses of transportation audits and contract administration as proposed by the Senate.

Appropriates $39,108,000 for the Federal Property Resource Service as proposed by the Senate instead of $40,975,000 as proposed by the House and makes available $11,000,000 to be derived by transfer of excess of real property as proposed by the Senate instead of $11,563,000 as proposed by the House and makes available $28,108,000 for transportation, processing, refining, storage, security maintenance, rotation and disposal of certain materials as proposed by the Senate instead of $29,412,000 as proposed by the House.

Appropriates $5,000,000 for a grant for construction at the University of Massachusetts, at Amherst, as proposed by the House and $5,000,000 for a grant for construction at the University of Nevada at Reno, as proposed by the Senate.

Modifies a provision proposed by the House but deleted by the Senate which makes funds available for evaluating, testing, relocating and upgrading stockpile materials.

The conferees are particularly concerned about the cobalt in the Stockpile. Cobalt is essential to both our defense and civilian economy. The principal alternative supplier is the Soviet Union, which is an obvious concern.

Cobalt is used as a metal primarily because of three unique properties: (1) it ability to impart strength to structural materials at high temperatures (aircraft engines), (2) its magnetic properties (electrical communication equipment), and (3) its ability to act as a binder in cemented carbides (cutting tools, mining drill bits). All of these uses are critically important to national security, especially super alloys for gas turbines and carbides for a wide range of cutting and wear-resistant applications.

The condition of the cobalt in the National Strategic Stockpile has been assessed for use for those requirements essential to the military and key industrial needs of the nation. A major portion of the cobalt in the stockpile is technologically obsolete. In a national emergency, the need for a high-quality cobalt is a necessity. Therefore, GSA is so directed, before any additional materials are purchased for the National Defense Stockpile, to commence upgrading the obsolete cobalt.

Appropriates $120,289,000 for General Management and Administration as proposed by the Senate instead of $125,374,000 as proposed by the House, and earmarks $800,000 for certain costs in support of Congressional Offices as proposed by the Senate instead of $900,000 for that support as proposed by the House. The conferees are agreed that the purpose of this earmarking and language is to preclude the necessity for voluminous record-keeping, auditing, and

other unnecessary administrative activities. Deletes a provision which would have made available $2,500 for reception and representation expenses which was proposed by the Senate.

The GSA is directed to study the need and availability of existing buildings meeting Federal office building requirements in San Francisco and report with specific recommendations on alternatives as to cost, space, and locations prior to the FY 1988 appropriations hearings.

The conferees are aware that the Immigration and Naturalization Service's Eastern Remote Adjudication Center (RAC) located in St. Albans, Vermont will be expanded this spring. The INS has directed the General Services Administration to locate either new or existing space for expansion in Franklin County, Vermont, GSA began the search this summer and is now looking beyond Franklin County. The conferees are aware that existing space is available in Franklin County. Given that fact and that the county workers at the RAC have proven to be both highly skilled and dedicated employees, the conferees direct GSA to find either new or existing space in Franklin County at the soonest possible date.

Appropriates $29,000,000 for the Information Resources Management Service as proposed by the Senate instead of $30,653,000 as proposed by the House.

Appropriates $21,108,000 for the Office of the Inspector General as proposed by the House instead of $20,000,000 as proposed by the Senate.

Appropriates $1,171,800 for Allowances and Office Staff for former Presidents as proposed by the Senate instead of $1,176,000 as proposed by the House.

Appropriates $100,321,000 for the National Archives and Records Administration as proposed by the Senate instead of $105,321,000 as proposed by the House. The conferees direct the National Archives and Records Administration to consider providing sufficient funds for restoration, preservation, and maintenance of documents and memorabilia relating to President Calvin Coolidge located in the Calvin Coolidge Memorial Room Forbes Library, Northampton, Massachusetts.

Appropriates $99,000,000 for the Office of Personnel Management instead of $96,000,000 as proposed by the Senate and $99,846,000 as proposed by the House. The conferees have also inserted a provision which allows the transfer of $60,900,000 for administrative expenses for the retirement and insurance programs to be transferred from the appropriate trust funds of the Office of Personnel Management.

Appropriates $1,459,000,000 for the Government Payment for Annuities, Employees Health Benefits as proposed by the Senate instead of $1,469,357,000 as proposed by the House. The conferees agree that the amount of funds appropriated for the government's contribution for annuitants in the federal employees health benefits system is sufficient to maintain current service levels. It is the conferees' intent in approving the appropriation of $1,459,000,000 to provide sufficient funds to maintain federal employed health benefits at no less than current levels.

Appropriates $4,557,000,000 for payment to the Civil Service Disability and Retirement Fund as proposed by the Senate instead of

$4,619,365,000 as proposed by the House. The conferees are very concerned about any unfunded liabilities that might result from this reduction. The conferees are agreed that all payments to the Civil Service Retirement and Disability Fund That are mandated by law should be included in the budget request and appropriated by the Congress.

Appropriates $5,250,000 for the Federal Retirement Thrift Investment Board instead of $250,000 as proposed by the Senate.

Inserts a provision regarding the Thrift Board. Except for fiscal year 1987, the expenses of the Thrift Board are to be paid for out of earnings by the Thrift Fund. Pub. L. 99-335 authorized appropriations for fiscal year 1987 to enable the Board to start up the agency. The authorizing legislation limits Board expenses in fiscal year 1987 to appropriated funds. The provision permits the Board to utilize Fund earnings in fiscal year 1987 for fiscal year 1987 administrative expenses.

Appropriates $19,140,000 for the Merit Systems Protection Board as proposed by the Senate instead of $20,251,000 as proposed by the House.

Appropriates $4,396,000 for the Office of Special Counsel as proposed by the Senate instead of $4,640,000 as proposed by the House. Appropriates $16,330,000 for the Federal Labor Relations Authority as proposed by the Senate instead of $17,064,000 as proposed by the House. The conferees direct that of the amount appropriated for the FLRA, $8,572,000 and 145 positions shall be made available for the Office of the General Counsel. Funds for the Office of the General Counsel include its share of GSA space rental, communications and penalty mail costs.

Appropriates $25,538,000 for the United States Tax Court as proposed by the House instead of $25,000,000 as proposed by the Senate.

TITLE V-GENERAL PROVISIONS-THIS ACT

Amends a provision proposed by the House and amended by the Senate directing the Secretary of the Army to sell and convey to the state of Hawaii, or the city and county of Honolulu parts or Ft. DeRussy.

Section 509 of the Senate Bill provides permanent authority to the Secretary of the Army to convey and sell, through the General Services Administration, a portion of the lands at Fort DeRussy, Hawaii, subject to certain enumerated conditions. The Conferees have agreed to the Senate version of section 509, with an amendment. This amendment provides that the authority in section 509 shall be available to the Administrator of the General Services Administration and the Secretary of the Army notwithstanding any limitation on the obligation or expenditure of funds for the sale, lease, rental, or excessing of Fort DeRussy, Honolulu, Hawaii. Thus, in addition to providing a general waiver of law as recommended by the Senate, the conference agreement further waiver any limitation contained in any individual fiscal year 1987 appropriations bill, whether incorporated in the continuing resolution for fiscal year 1987 or in a bill making general appropriations for an agency of government.

This additional waiver is designed to ensure that the authority provided in section 509 is not impaired by any limitation on the availability of funds contained in bills making appropriations_for the Department of Defense or for Military Construction. The waiver is specifically designed to address limitations on the obligation or expenditure of funds appropriated for the sale, lease, rental, or excessing of Fort DeRussy in a form similar to section 113, of P.L. 99-173 and section 101(b) of P.L. 99–190 (Section 8055 of the Department of Defense Appropriations Act, 1986).

The conferees direct the General Services Administration to insure that the land is not sold to commercial interests but is sold to the local government to insure that any development of the property will be by that government.

The authority to conduct a sale pursuant to subsection (b) shall be contingent upon the failure to approve an ordinance by initiative for the City and County of Honolulu relating to the primary urban center development plan special provisions, the subject matter of which is an express prohibition on the building of a convention center or hotel on Fort DeRussy, provided such an ordinance by initiative appears on the ballot for voters of the City and County of Honolulu, Hawaii in November, 1986.

Restores a provision proposed by the House and stricken by the Senate which prohibits the closing of a General Services Administration office in Sacramento, California.

Amends a provision inserted by the House and stricken by the Senate. The conferees agreed to accept modified language proposed by the House. Effective September 30, 1987, the amount of silver deposited in the National Defense Stockpile shall not exceed 128,000,000 troy ounces. This amount includes any silver on loan to the Department of Defense. The conferees understand that Section 203 of the Liberty Coin Act authorizes the use of silver in the stockpile for the minting of bullion coins. In accordance with the procedures established by the Strategic and Critical Materials Stock Piling Act, the Administrator of General Services is directed to sell on the open market the remaining silver not used for the coinage program.

Amends a provision inserted by the House and stricken by the Senate, the conferees agreed to accept modified language proposed by the House. The modified provision mandates the use of all funds authorized and appropriated before January 1, 1985 from the National Defense Stockpile Transaction Fund to evaluate, test, relocate, upgrade or purchase stockpile goals and specifications. These funds must be expended no later than October 1, 1988.

The modified language does specify the goals in effect on October 1, 1984. However, the General Services Administration has the flexibility to make minor adjustments in the stockpile goals to reflect changing circumstances. The conferees note that one such adjustment includes the purchase of germanium for the stockpile. Aside from these adjustments, the General Services Administration is directed to use the goals in effect on October 1, 1984 to the maximum extent practicable. The provision was also modified to allow for the use of funds to meet current stockpile specifications.