THE CARTER ADMINISTRATION'S BILL, DEVELOPED JOINTLY WITH SENATOR EDWARD KENNEDY, WOULD MAINTAIN LEAA BASICALLY INTACT, ALBEIT WITH SOME IMPORTANT CHANGES IN STRUCTURE AND OPERATIONS. IN SHARP CONTRAST IS THE BILL AUTHORED BY REPRESENTATIVE JOHN CONYERS, CHAIRMAN OF THE HOUSE SUBCOMMITTEE WITH JURISDICTION OVER LEAA. THE CONYERS BILL STRESSES A REDEFINITION OF THE LEAA MANDATE AND WOULD IN LARGE PART CONVERT LEAA INTO A CATALYST FOR CORRECTIONAL DEINSTITUTIONALIZATION. UNDER THE CARTER-KENNEDY PROPOSAL, CORRECTIONS PROBABLY WOULD RETAIN, AND POSSIBLY EVEN INCREASE, ITS SHARE OF LEAA FUNDING, ALTHOUGH CORRECTIONS GRANTS WOULD NO LONGER BE TREATED IN A SEPARATE SECTION OF THE LAW. THE BILL WOULD, HOWEVER, FLATLY PROHIBIT LEAA FUNDING OF NEW CONSTRUCTION. A SYMBOLIC LOSS FOR CORRECTIONS WOULD BE THE MERGER OF THE NATIONAL INSTITUTE OF CORRECTIONS INTO A NEW U.S. DEPARTMENT OF JUSTICE RESEARCH AGENCY. HIGHLIGHTS OF OTHER CHANGES ENVISIONED IN THE CARTER-KENNEDY PROPOSAL ARE OUTLINED, THE DEVELOPMENT OF THE PROPOSAL IS DISCUSSED, AND COMMENTS FROM LEGISLATORS AND CORRECTIONS OFFICIALS ARE QUOTED. A LESS COMPREHENSIVE ANALYSIS OF THE CONYERS PROPOSAL IS PRESENTED, AND THE OUTSIDE CHANCE THAT LEAA MAY BE SCRAPPED AND ITS FUNDS CONVERTED TO REVENUE SHARING IS NOTED. IT IS PREDICTED THAT THE MORE MODEST CHANGE EMBODIED IN THE CARTER-KENNEDY BILL PROBABLY WILL PREVAIL. HOWEVER, THE PRESENCE OF LEAA SKEPTICS IN BOTH THE HOUSE AND THE SENATE AND THE BUDGET-CUTTING FERVOR ASSOCIATED WITH CALIFORNIA'S PROPOSITION 13 ADD AN ELEMENT OF UNCERTAINTY. (LKM)