Amendment{s) on S1023 Treasury. Postal Service. and General Government App

      ---------------------- Forwarded by Melissa N. Benton/OMB/EOP on 06/19198
04:37 PM ---------------------------
Total Pages: ____


LRM ID: MNB190
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
Washington, D.C. 20503-0001

Friday, June 19, 1998

LEGISLATIVE REFERRAL MEMORANDUM

TO:                      Legislative Liaison Officer - See Distribution below

FROM:           Janet R. Forsgren/OMB/EOP (for) Assistant Director for
Legislative Reference
OMB CONTACT:    Melissa N. Benton
                                 PHONE: (202) 395-7887 FAX: (202) 395-6148
SUBJECT:          Amendment(s} on S1023 Treasury, Postal Service, and
General Government Appropriations, FY 1998

DEADLINE:               Noon   Monday, June 22, 1998

In accordance with OMB Circular A-19, OMB requests the views of your
agency on the above subject before advising on its relationship to the
program of the President.  Please advise us if this item will affect
direct spending or receipts for purposes of the "Pay-As-You-Go" provisions
of Title XIII of the Omnibus Budget Reconciliation Act of 1990.



COMMENTS: The Administration intends to try to have this bill language
incorporated into the Chairman's mark of S. 1023 on Tuesday, June 23d.

THE DEADLINE IS FIRM.

DISTRIBUTION LIST

AGENCIES:
128-US Trade Representative - Fred Montgomery - (202) 395-3475
62-LABOR - Robert A. Shapiro - (202) 219-8201
61-JUSTICE - L. Anthony Sutin - (202) 514-2141
51-General Services Administration - William R. Ratchford - (202) 501-0563
114-STATE - Paul Rademacher - (202) 647-4463
29-DEFENSE - Samuel T. Brick Jr. - (703) 697-1305
118-TREASURY - Richard S. Carro - (202) 622-0650

EOP:
Barbara Chow
Barry White
Larry R. Matlack
Debra J. Bond
Mathew C. Blum
Steven L. Schooner
Elena Kagan
Sarah Rosen
Michael Cassidy
Robert E. Barker
Charles E. Kieffer
Karen Tramontano
Alan B. Rhinesmith
Michael F. Crowley
Kimberly A. Maluski
Philip A. DuSault
Rodney G. Bent
Ronald L. Silberman
John F. Morrall III
Daniel J. Chenok
Mary Jo Siclari
David J. Haun
Heather A. Johnston
Robert G. Damus
William P. Marshall
James J. Jukes
Annette E. Rooney
LRM ID: MNB190 SUBJECT:     Amendment(s) on S1023 Treasury, Postal Service,
and General Government Appropriations, FY 1998


RESPONSE TO
LEGISLATIVE REFERRAL
MEMORANDUM

If your response to this request for views is short (e.g., concur/no
comment), we prefer that you respond bye-mail or by faxing us this
response sheet.  If the response is short and you prefer to call, please
call the branch-wide line shown below (NOT the analyst'S line) to leave a
message with.a legislative assistant.

You may also respond by:


         (1) calling the analyst/attorney's direct line (you will be
connected to voice mail if the analyst does not answer); or
         (2) sending us a memo or letter
Please include the LRM number shown above, and the subject shown below.


TO:                 Melissa N. Benton Phone:   395-7887   Fax:  395-6148
                    Office of Management and Budget
                    Branch-Wide Line (to reach legislative assistant): 395-7362

FROM:                                                        (Date)

                                                             (Name)

                                                             (Agency)

                                                             (Telephone)


The following is the response of our agency to your request for views on
the above-captioned subject:

                Concur

                No Objection

         ______ No Comment

                See proposed edits on pages

                Other:

                FAX RETURN of _____ pages, attached to this response sheet

DRAFT       DRAFT        DRAFT      DRAFT      DRAFT      DRAFT
DRAFT       DRAFT

June 19, 1998 (12:02pm)

Sec.        pilot to Prohibit the Acquisition of Products Produced by
Forced or Indentured Child Labor.

         (a) In General. --Pursuant to this section, executive agencies shall
conduct a pilot program to prohibit the procurement of certain products
mined, produced, or manufactured by forced or indentured child labor.

        (b) Scope of the pilot Program.  --(1)  Within 120 days after the
enactment of this Act, the Department of Labor, in consultation with the
Department of Treasury and the Department of State, shall publish in the
Federal Register a notice that identifies certain products that may have b
een mined, produced, or manufactured by forced or indentured child labor.

        (2) For the period specified in subsection (g), an executive
agency shall not acquire a product that has been identified pursuant to
subsection (b) (1) unless the contractor offering the product certifies to
the executive agency that forced or indentured child labor was not used in
its production.

        (A)  Each contract for the supply of an article, material, or item
of supply subject to subsection (b) (1) that is entered into by an


executive agency shall contain a clause requiring the contractor to
certify that:

        (i)  a responsible official, after having made an inquiry, is
unaware that forced or indentured child labor was used to mine, produce,
or manufacture the article, material, or item of supply; and,

         (ii) the contractor will cooperate fully with all requests for
access to records, documents, persons, or premises made by any agency or
official of the United States to determine whether forced or indentured
child labor was used.

         (3) This section shall apply to acquisitions for an amount in
excess of the micro-purchase threshold (as that term is defined in section
32(f) of the Office of Federal Procurement Policy Act (41 U.S.C. 428(f.
This includes acquisitions for commercial items, notwithstanding section
34 of the Office of Federal Procurement Act (41 U.S.C. 430).

         (c) Investigation and Penalties.  --(1) An executive agency that has
reason to believe that a false certification may have been submitted to
the agency pursuant to subsection (b) (2) shall refer the matter to the
agencyD,s Inspector General, in conjunction with the Department of Justice
and Department of Treasury as appropriate, for investigation.

         (2)  The use of forced or indentured child labor, or the failure
to comply with the clause required by subsection (b) (2), maybe grounds
for termination of a contract by the head of the executive agency in its
sole discretion.
         (d) Debarment. -- (1) The head of an executive agency shall consider
debarment in the manner prescribed in the Federal Acquisition Regulation
in instances where the contractor has used forced or indentured child
labor in providing products to the executive agency.

         (2) The Administrator of General Services shall include, as part
of its List of Parties Excluded from Federal Procurement and
Nonprocurement Programs (as described in the Federal Acquisition
Regulation) a list of all parties debarred, suspended, proposed for
debarment, or declared ineligible by agencies or by the General Accounting
Office for using forced or indentured child labor under a contract with an
executive agency.

         (e) Report. --Within 90 days after termination of the pilot, the
Administrator of General Services, with the assistance of other executive
agencies, shall submit to Congress a report on the actions taken pursuant
to this pilot.

        (f) Amendments to the Federal Acquisition Regulation.  --(1) The Federal
Acquisition Regulation shall be revised to implement this section not
later than 180 days after the date of enactment of this Act.

         (2) The Federal Acquisition Regulation shall be further amended
within 180 days after the date of the enactment of this Act to identify in
its lists of causes for debarment from contracting with executive agencies
the use of forced or indentured child labor.

         (3) Amendments made pursuant to paragraph (2) shall remain
effective not withstanding the termination of the pilot authorized by this
section.

         (g) Effective Date.   --(1) The requirements of this section shall take


effect on the date 'described in paragraph (2) and shall apply to any
solicitation that is issued, any unsolicited proposal that is received,
and any contr~ct entered into pursuant to such a solicitation or proposal
on or after this date.

        (2) The date referred to in paragraph (1) is the date that is 30
days after the day revisions to the Federal Acquisition Regulation are
published in the Federal Register pursuant to subsection (f) (1) .

        (3) The requirements of this section shall terminate two years
after the date specified in paragraph (2).

         (h) Exception.  --This section shall not apply to the acquisition of any
article, material, or item of supply of any foreign country or
instrumentality designated under section 301(b) (1) of the Trade Agreements
Act of 1979, as amended (19 U.S.C. 2511(b)).


  RECORD. TYPE: PRESIDENTIAL   (NOTES MAIL)

  CREATOR: Michael Waldman ( CN=Michael Waldman/OU=WHO/O=EOP [ WHO 1

  CREATION DATE/TIME: 19-JUN-1998 09:21:52.00

  SUBJECT:

  TO: Bruce N. Reed ( CN=Bruce N. Reed/OU=OPD/O=EOP @ EOP [ OPD 1 )
  READ: UNKNOWN

  TO: Elena Kagan ( CN=Elena Kagan/OU=OPD/O=EOP @ EOP [ OPD 1 )
  READ: UNKNOWN

  ---------------------- Forwarded by Michael Waldman/WHO/EOP on 06/19/98
  09:20 AM ---------------------------




  Michael Waldman
  06/19/98 09:14:20 AM
  Record Type:    Record

  To:      Kevin S. Moran/WHO/EOP, Michelle Crisci/WHO/EOP
  cc:
  Subject:

   6/19/989:30am
  PRESIDENT WILLIAM J. CLINTON
  TALKING POINTS ON TOBACCO
  CABINET ROOM
  July 19, 1998

          I am about to meet with my economic team to discuss the ways we
 can .keep our economy growing steady and strong.  Today, AmericaD,s economy
 is the strongest in a generation, and is the driving force behind world
 economic growth. We will be discussing ways to continue this growth:
 promoting international economic stability, by supporting the IMF and
 economic reform in Asia D(maintaining our fiscal discipline by setting
 aside the surplus until we save Social Security first D( investing in our
 people through education and training. We cannot afford to risk our
 prosperity through gimmicks such as repealing the tax code w~th nothing in
 its place. We must seize the opportunity of this moment to build for our
 long-term prosperity.

         I want to briefly comment on another obligation we face at this
 moment of national progress: the duty to protect our children from tdbacco.
   This remains a rare moment for progress in a comprehensive effort to
 change the way the tobacco industry works. After decades of deception by
 the tobacco industry, there is now. undeniable evidence that they have
 targeted children. We have a chance to save one million lives a year.
 For six months, we worked hard and in good faith to meet all. legitimate
 objections to this legislation, and to join together the priorities of
 both parties.

         Let me be clear: every Senator who voted to kill the tobacco bill
 voted against a tax cut for middle income families; against new measures
 to crack down on drugs; against life-saving research into cancer and other


    diseases. Every Senator who voted to kill the tobacco bill voted not to
    save one million American lives. It was a vote against our children and
    for the tobacco lobby. And that vote will be very difficult to explain to
    the American people.

            Now, some have suggested that the Congress will follow the tobacco
    lobbyO,s lead and seek to send to me an ineffective O&narrow08 bill that
    does not effectively address youth smoking.    We know what is needed to
    fight youth smoking: a comprehensive approach.    A O&narrow08 bill
    reflects narrow interests--.not the national interest and the health of
    our children.