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 This Statement of Administration Policy provides the Administration's views 
on H.R. 2267, the Departments of Commerce, Justice, State, the Judiciary, and 
Related Agencies Appropriations Bill, FY 1998, as reported by the House 
Appropriations Committee.  Your consideration of the Administration's views 
would be appreciated.
 
 The Committee has developed a bill that provides requested funding for many of 
the Administration's priorities.  For example, we appreciate the Committee's 
funding of law enforcement programs in general and the COPS program in 
particular.  Funding COPS at the requested level of $1.4 billion is consistent 
with the Bipartisan Budget Agreement and would enable us to achieve the goal of 
hiring 100,000 additional police officers by the year 2000. 
 
 As discussed below, the Administration will seek restoration of certain of the 
Committee's reductions.  We recognize that it will not be possible in all 
cases to attain the Administration's full request and will work with the House 
toward achieving acceptable funding levels.  The Administration is committed to 
working with the House to identify reductions in the bill in order to find 
offsets for the restoration of funds that the Administration seeks.  For 
example, funding could be reduced for the Local Law Enforcement Block Grant and 
the new Juvenile Justice Block Grant.  We urge the House to reduce funding for 
lower priority programs, or for programs that would be adequately funded at the 
requested level, and to redirect funding to programs of higher priority.
 
 The Administration is particularly concerned about the objectionable funding 
level provided for the Legal Services Corporation and language that would 
prohibit any funds from being used for activities related to the design, 
planning, testing, or implementation of sampling in the 2000 Census, and would 
further require the passage of an authorization bill prior to the expenditure 
of more than $100 million for any 2000 decennial planning operations.  In 
addition, the Hastert amendment, approved by the Rules Committee, would 
effectively ban sampling in the guise of providing for judicial review.  If the 
bill presented to the President were to contain the funding level provided in 
the Committee bill for the Legal Services Corporation or the restrictions on 
Census activities in either the Committee bill or the Hastert amendment, the 
President's senior advisers would recommend that the President veto the bill. 
 
 To date, the Administration has been working with the Appropriations 
Committees to include items contained in the Bipartisan Budget Agreement in the 
FY 1998 appropriations bills, in the hope that these issues could be worked 
out.  We are concerned that several of these and 
other priority issues are not being resolved in a satisfactory manner.  If 
these issues are not resolved satisfactorily, the President's senior advisers 
would recommend that he veto the bill.
 
Department of Commerce
 
- Census Sampling -- Committee provision.  The Administration strongly 
opposes the Committee's language that would prohibit any funds from being used 
for activities related to the design, planning, testing, or implementation of 
sampling in the 2000 Census, and would further require the passage of an 
authorization bill prior to the expenditure of more than $100 million for any 
2000 decennial planning operations. This represents an unprecedented and 
unacceptable attempt to micromanage the decennial census.  Such restrictions 
would seriously undermine decennial census planning operations, especially with 
regard to address list development, procurement, and the 1998 Decennial Dress 
Rehearsal.  The President's senior advisers have indicated that they would 
recommend that the President veto the bill if it were to contain this 
provision.  
Census Sampling -- Hastert Amendment.  The Administration also strongly 
opposes the Hastert amendment because it effectively bans sampling in the guise 
of providing for judicial review.  The Hastert amendment would prohibit the 
Census Bureau from expending any funds on planning, preparing or testing for 
the use of sampling after a civil action is filed until the Supreme Court has 
determined that sampling is constitutional and authorized by statute. 
 
First, the Administration is concerned that the amendment's requirement for a 
final Supreme Court endorsement of sampling prior to any planning, testing or 
use of sampling in the 2000 census would simply act to ban sampling for the 
census.  For example, the amendment does not satisfy constitutional standards 
for standing.  The Supreme Court has required that a plaintiff must have 
suffered an injury that is "concrete and particularized."  It is unlikely that 
those defined as "aggrieved parties" will be deemed to have the requisite 
injury to satisfy Article III.  In the recent legislative veto decision, for 
example, the Court found that members of Congress did not have standing to 
challenge that statute.  Raines v. Byrd, 117 S.Ct. 2312 (1997).  This 
limitation is jurisdictional, cannot be waived, and can be raised by the Court 
on its own.
 
Moreover, the Supreme Court held in 1992 that it could not rule on legal 
challenges to the Census Bureau's actions until after the President sends the 
census numbers to Congress.  Franklin v. Massachusetts, 505 U.S. 788 
(1992).  There is thus a serious question as to whether the Court has the power 
to rule on the merits of a census before the results of that census are 
finalized.  Given these problems, subsection (d)(2)'s requirement of a judicial 
endorsement of sampling effectively prohibits sampling.
 
Finally, the Hastert amendment would likely lead to complicated, lengthy, and 
complex litigation highly unlikely to be resolved in a time frame to permit 
planning, testing, and use of sampling.  Litigation is not consolidated in any 
one district, there is no deadline for filing suit, and no limit on the number 
of suits that may be filed.  The Court will therefore be required to hear 
numerous appeals.  This problem is magnified because virtually every United 
States citizen is an "aggrieved party," given a cause of action and an appeal 
of right to the Supreme Court.  Denying funding during this potentially lengthy 
judicial process would effectively prevent use of sampling in the 2000 census.  
 
For all these reasons, the President's senior advisers would recommend that the 
President veto the bill if it were to contain the Hastert amendment.
 
Census sampling -- Mollohan amendment.  Without the limited use of 
sampling, the accuracy of the census would decrease significantly, especially 
with regard to children and minority groups that have traditionally been 
undercounted.  The National Academy of Sciences, the General Accounting Office, 
the Commerce Department Inspector General, and the vast majority of the 
professional statistical community support the use of sampling in the decennial 
census.  The Administration remains committed to working with Congress on this 
important issue, and supports the Mollohan amendment concerning Census 2000.  
In addition to striking the bill's restrictions on sampling, the Mollohan 
amendment would create a commission to monitor decennial census preparation and 
implementation and would periodically report on whether any part of the process 
had been manipulated so as to favor any region or group.
 
  - National Oceanic and Atmospheric Administration.  We are 
disappointed that the Committee bill would provide only $8 million of the $22 
million requested for the President's Clean Water Initiative, which helps 
protect coastal communities from pollutants.  The National Oceanic and 
Atmospheric Administration (NOAA) is the primary trustee of our Nation's 
coastal resources and, as such, plays an important role in this initiative.  
The $22 million initiative builds from NOAA's unique coastal responsibilities 
and partnerships with States and other Federal Trustee agencies.  In addition, 
we are disappointed that the Committee has not included any funding for the 
Global Learning and Observations to Benefit the Environment Program (GLOBE).  
This program was developed to increase understanding of the Earth and has 
already formed partnerships with over 2,500 U.S. schools and 35 other 
countries, involving thousands of students across the U.S. and worldwide.  The 
Committee is recommending over $30 million in funding for NOAA activities not 
requested by the Administration.  We strongly urge that a portion of these 
funds be redirected to continue the Clean Water Initiative, GLOBE, and other 
priorities such as fisheries conservation and management.
  - National Institute of Standards and Technology (NIST).  The 
Administration greatly appreciates the overall funding level for NIST and the 
Committee's support of the Bipartisan Budget Agreement.  However, we strongly 
urge the House to drop language restricting new Advanced Technology Program 
awards and to adopt language allowing continued Federal funding for 
Manufacturing Extension Centers beyond six years, as was passed by the House in 
H.R. 1274.  The Administration strongly opposes the Hostettler amendment, which 
would eliminate funding for the Advanced Technology Program.
  - National Information Infrastructure (NII).  The Administration urges 
the House to reallocate resources between the NII grants program and the Public 
Broadcasting Facilities program.  The Committee mark substantially reduces 
funding for the former and provides a large, unrequested increase for the 
latter.  The NII program is meritorious, providing seed money for innovative 
projects that deploy, use, and evaluate advanced telecommunications and 
information technology.
  
Legal Services Corporation
 The Administration finds the Committee bill's funding level for the Legal 
Services Corporation (LSC) unacceptable.  The bill would fund the LSC at $141 
million, $142 million below the FY 1997 enacted level and $199 million below 
the President's request of $340 million.  The amount that the Committee bill 
would provide, 65 percent below the FY 1995 level of $400 million, would 
cripple the program and call into question the Federal Government's commitment 
to ensuring that all Americans, regardless of income, have access to the 
judicial system.  The Administration strongly urges the House to fully fund the 
President's request.  The President's senior advisers would recommend that he 
veto the bill if it contained the funding level in the Committee bill.  
 
Reimbursement of Legal Fees
 
 The Administration strongly opposes the Hyde amendment that would require the 
United States to pay attorney's fees and litigation costs to "prevailing 
parties" in federal criminal cases, unless the Government can demonstrate the 
case was "substantially justified."  This would have a profound and harmful 
impact on the Federal criminal justice system.  It would create a monetary 
incentive for criminal defense attorneys to generate additional litigation in 
cases in which prosecutors have in good faith brought sound charges, tying up 
the scarce time and resources that are vital to bringing criminals to justice.
 
 The Fifth Amendment already requires that, in every Federal felony case, a 
grand jury of citizens find probable cause to bring charges against a 
defendant, thereby protecting against unjustified prosecutions.  In addition, 
the Department of Justice and the courts have safeguards to guard against such 
prosecutions.  The amendment, which would provide for reimbursement out of the 
budget of Federal prosecutors, would have a chilling effect on prosecutorial 
discretion.  
 
 The litigation generated by this proposal may require disclosure and 
compromise of confidential sources and law enforcement techniques.  If the bill 
presented to the President were to include this provision, the President's 
senior advisors would recommend that he veto the bill.
 
Department of Justice
 
- Drug Courts and Drug Testing.  The Administration is disappointed by 
the failure of the Committee to provide any of the $45 million requested 
increase for drug courts.  The drug courts program is a proven, cost-effective 
means of using the coercive power of the courts to move non-violent offenders 
into drug treatment programs.  Also, the President's budget would provide $30 
million to offset the costs associated with drug testing State and local 
arrestees.  The Administration is concerned that the Committee does not 
identify $30 million from the Byrne Grant program for the State and local 
portion of the drug testing program, as proposed by the President.  The drug 
courts and drug testing programs could be restored to the requested levels by 
reducing the Committee's funding for the Local Law Enforcement Block Grant 
program.   Finally, last year the Congress enacted legislation that requires 
States to implement drug testing and intervention programs as a condition for 
receiving Violent Offender Incarceration and Truth-In-Sentencing (VOI/TIS) 
grants.  The Administration now urges the Committee to provide funding for the 
prisoner and parolee drug testing and intervention mandate by allowing States 
to offset the cost with VOI/TIS funding. 
  - Juvenile Justice Block Grant.  The Administration appreciates the 
Committee's desire to provide additional support for juvenile justice 
programs.  However, the Administration is concerned that the $300 million block 
grant program may authorize a broad and unfocused range of spending and urges 
the House to target $100 million for the prosecutorial grant program, which is 
designed to facilitate the cooperation and coordination of prosecutors and 
police with school officials, probation officers, youth social service 
professionals, and community members in an effort to reduce the incidence of 
gang activity and violent juvenile crime.  The Administration also urges the 
House to target $50 million for the violent youth court program, which is 
designed to develop initiatives for use by the courts and court-related 
entities, such as probation and parole offices and victim/witness centers, to 
enhance and expedite the handling of youth violence cases.  
  
Department of State
 The Administration appreciates the Committee's support for the State 
Department's accounts that fund diplomatic and consular activities, which would 
help reverse the erosion of the Department's worldwide operations.  We are also 
pleased that the Committee provided the transfers as requested to support the 
International Cooperative Administrative Support Services (ICASS) program.  
 
 The Administration welcomes the first-year funding of $100 million for arrears 
payments, and strongly opposes the Bartlett amendment that would eliminate this 
funding.  United States leadership in the United Nations and other 
international organizations on a host of issues of importance to the American 
people would be compromised if we fail to meet our binding obligations. Thus we 
are deeply concerned that this bill provide full funding for the FY 1998 annual 
assessments provided in Contributions to International Organizations and 
Contributions for International Peacekeeping Activities accounts.   It is vital 
for the Administration to be able to pay annual costs, avoid new arrears, and 
have some flexibility to address unforeseen needs relating to peace and 
security around the world.  While we appreciate report language that 
underscores the importance of funding the arrears, we want to work with the 
House to ensure that the final bill contains multi-year arrears funding 
provided for in the Balanced Budget Act, and consistent with the pending 
authorization bill.  The Administration is committed to working with the House 
to resolve these important issues relating to the future of international 
organizations.
 
 The Administration urges the House to strike two provisions that raise 
Constitutional concerns:  section 609, which concerns diplomatic relations with 
Vietnam, and section 610, which relates to command and control of United 
Nations peacekeeping efforts.   In addition to Constitutional concerns, we 
believe that the issues raised by these provisions are being addressed in the 
pending authorization bill in more workable and appropriate ways. 
 
Ounce of Prevention Council
 
 The Administration strongly opposes the Committee's termination of the Ounce 
of Prevention Council.  Elimination of this program would hinder the Federal 
Government's ability to help neighborhoods implement balanced strategies to 
reduce crime through enforcement, prevention, and intervention.  The Council 
awards discretionary grants for promising community collaborative crime 
prevention programs, publishes a catalog of crime prevention grants and 
programs, and provides information and technical assistance.  It plays a 
critical role in helping communities gain access to information on crime 
prevention best practices.  The Administration strongly urges the House to 
provide funding for the Council and has identified an appropriate offset for 
that purpose.
 
Arms Control and Disarmament Agency
 
 The Administration opposes the Committee mark of $41.5 million for the Arms 
Control and Disarmament Agency (ACDA), which would undercut the 
Administration's efforts to reduce the threat of nuclear and other weapons to 
the security of the American people.  
 
Comprehensive Nuclear Test Ban Treaty
 
 In addition to the $2.8 million requested in the FY 1998 Budget, a $13 million 
budget amendment for Comprehensive Nuclear Test Ban Treaty requirements was 
transmitted on July 17th.  The Administration urges the House to provide the 
full revised request for these important national security activities.
 
Equal Employment Opportunity Commission
 
  The Administration strongly urges the House to fully fund the President's 
request of $246 million for the Equal Employment Opportunity Commission given 
the importance of its work in addressing unlawful discrimination. 
 
Office of the United States Trade Representative
 
 The Administration appreciates the Committee's increase in funding for, and 
its past support of, the Office of the United States Trade Representative 
(USTR).  USTR has had to manage a seven-fold increase in the number of World 
Trade Organization dispute settlement cases since the signing of the Uruguay 
Round Agreement.  Despite its substantially increased workload, USTR has 
virtually the same number of attorneys working in this area as it did in 1990.  
USTR's work will be even more important in FY 1998 and in future years as the 
United States seeks to capitalize on new market-opening opportunities and to 
improve access to existing markets through enforcement actions.  Given these 
circumstances, the Administration has transmitted a fully-offset $1.7 million 
budget amendment.  We urge the House to provide the revised request. 
 
National Endowment for Democracy
 
 The Administration strongly supports the Committee mark of $30 million, at the 
President's request level, for the National Endowment for Democracy.  Full 
funding of the President's request is needed to support democracy-building 
programs throughout the world.  We would strongly oppose any amendment offered 
on the House floor that would eliminate or reduce funding for these important 
programs.   
 
 Additional Administration concerns with the Committee bill are contained in 
the attachment.
 
Attachment  
Attachment
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