[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 184 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 184

  To amend the privacy provisions of title 5, United States Code, to 
 improve the protection of individual information and to reestablish a 
permanent Privacy Protection Commission as an independent entity in the 
              Federal Government, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 1995

   Mrs. Collins of Illinois introduced the following bill; which was 
      referred to the Committee on Government Reform and Oversight

_______________________________________________________________________

                                 A BILL


 
  To amend the privacy provisions of title 5, United States Code, to 
 improve the protection of individual information and to reestablish a 
permanent Privacy Protection Commission as an independent entity in the 
              Federal Government, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be referred to as the ``Individual Privacy Protection 
Act of 1995''.

SEC. 2. FINDINGS AND PURPOSES.

    The Congress hereby finds that--
            (1) recent advances in information and telecommunications 
        technologies have rapidly expanded the collection of personal 
        data on individuals, and improved the speed and access with 
        which such data can be retrieved and disseminated;
            (2) the increased use of these technologies and their 
        related systems, channels, and services has serious 
        implications for injury to individual privacy that can occur 
        from any collection, maintenance, use, or dissemination of 
        personal information;
            (3) neither existing privacy legislation nor the 
        Communications Act of 1934 provides for the periodic assessment 
        and evaluation of personal privacy implications regarding data 
        information maintained, transmitted, or accessed via computer 
        cable, broadcast, common carrier, or related new technologies;
            (4) the right to privacy is a personal and fundamental 
        right protected by the Constitution of the United States; and
            (5) in order to determine the extent to which the privacy 
        of individuals identified in information systems maintained by 
        or accessed via cable, broadcast, common carrier, and related 
        new technologies is protected, it is necessary and proper for 
        the Congress to require the collection and evaluation of data 
        relevant to this purpose.

SEC. 3. DEFINITION OF SYSTEM OF RECORDS.

    Section 552a(a)(5) of title 5, United States Code, is amended to 
read as follows:
            ``(5) the term `system of records' means a group of any 
        records under the control of any agency in which individual 
        records are--
                    ``(A)(i) systematically filed, stored, or otherwise 
                maintained according to an established retrieval scheme 
                or indexing structure; and
                    ``(ii) in practice, accessed by use of, or by 
                reference to, such retrieval scheme or indexing 
                structure for the principal purpose of retrieving the 
                record (or any portion thereof) on the basis of the 
                identity of, or so as to identify, an individual; or
                    ``(B) otherwise readily accessible because--
                            ``(i) the agency is able to access the 
                        record without an unreasonable expenditure of 
                        time, money, effort, or other resources; or
                            ``(ii) the individual to whom a record 
                        pertains is able to provide sufficiently 
                        specific locating information so as to render 
                        the record accessible without such an 
                        unreasonable expenditure;''.

SEC. 4. DEFINITION OF ROUTINE USE.

    Section 552a(a)(7) of title 5, United States Code, is amended to 
read as follows:
            ``(7) the term `routine use' means the use or disclosure of 
        an individually identifiable record for a purpose which is--
                    ``(A) compatible with the purpose for which the 
                information in the record was collected or obtained; 
                and
                    ``(B) consistent with the conditions or reasonable 
                expectations of the use and disclosure under which the 
                information in the record was provided, collected, or 
                obtained.''.

SEC. 5. PENALTIES FOR VIOLATION.

    Section 552a(g)(4) of title 5, United States Code, is amended--
            (1) by striking out ``$1,000; and'' in subparagraph (A) and 
        inserting in lieu thereof ``$2,000;'';
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A), the following new 
        subparagraph:
                    ``(B) general damages sustained by the individual 
                as a result of the refusal or failure, but in no case 
                shall a person entitled to recovery receive less than 
                the sum of $2,000, nor more than the sum of $20,000 as 
                general damages; and''.

SEC. 6. ESTABLISHMENT OF THE INDIVIDUAL PRIVACY PROTECTION BOARD.

    (a) Establishment; Membership; Budgetary and Legislative 
Recommendations.--(1) There is established an Individual Privacy 
Protection Board (hereinafter referred to as the ``Board'') which shall 
be composed of five members appointed by the President, by and with the 
advice and consent of the Senate. Members of the Board shall be chosen 
on the basis of their experience, integrity, impartiality, and good 
judgment from among individuals who, at the time of their appointment, 
are not elected or appointed officers or employees in the executive, 
legislative, or judicial branch of the Government.
    (2) Each member of the Board shall hold office for a term of four 
years, except that a member may continue to serve until a successor has 
taken office. Any vacancy in the membership of the Board, as long as 
there are four members in office, shall not impair the power of the 
Board but shall be filled in the same manner in which the original 
appointment was made. No member shall be eligible to serve for more 
than two complete terms of office on the Board.
    (3) The members of the Board shall elect a Chairman from among 
themselves. A quorum of the Board shall consist of a majority of the 
members, except that the Board may establish a lower number as a quorum 
for the purpose of taking testimony. The Board is authorized to 
establish such committees and delegate such authority to them as may be 
necessary to carry out its functions. Each member of the Board, 
including the Chairman, shall have equal responsibility and authority 
in all decisions and actions of the Board, shall have full access to 
all information necessary to the performance of their functions, and 
shall have one vote. Action of the Board shall be determined by a 
majority vote of the members present. The Chairman (or a member 
designated by the Chairman to be acting Chairman) shall be the official 
spokesman of the Board in its relations with the Congress, Government 
agencies, other persons, and the public, and, on behalf of the Board, 
shall see to the faithful execution of the administrative policies and 
decisions of the Board, and shall report thereon to the Board from time 
to time or as the Board may direct.
    (4)(A) Whenever the Board submits any budget estimate or request to 
the President or the Office of Management and Budget, it shall 
concurrently transmit a copy of that request to the Congress.
    (B) Whenever the Board submits any legislative recommendations, or 
testimony, or comments on legislation to the President or Office of 
Management and Budget, it shall concurrently transmit a copy thereof to 
the Congress. No officer or agency of the United States shall have any 
authority to require the Board to submit its legislative 
recommendations, or testimony, or comments on legislation, to any 
officer or agency of the United States for approval, comments, or 
review, prior to the submission of such recommendations, testimony, or 
comments to the Congress.
    (b) Duties of Board.--The Board shall--
            (1) make a study of the data banks, automated data 
        processing programs, information systems, and other 
        telecommunications and data processing technologies and 
        services of governmental, regional, and private organizations, 
        in order to determine the standards and procedures in force for 
        the protection of personal information;
            (2) recommend to the President and the Congress the extent, 
        if any, to which the requirements and principles of section 
        552a of title 5, United States Code, should be applied to the 
        information practices of those organizations by legislation, 
        administrative action, or voluntary adoption of such 
        requirements and principles, and report on such other 
        legislative recommendations as it may determine to be necessary 
        to protect the privacy of individuals while meeting the 
        legitimate needs of government and society for information;
            (3) develop guidelines and model regulations for the use of 
        Federal agencies in implementing the provisions of section 552a 
        of title 5, United States Code;
            (4) provide continuing assistance to Federal agencies in 
        implementing section 552a of title 5, United States Code;
            (5) publish on a regular basis a guide to the use of 
        section 552a of title 5, United States Code, and a compilation 
        of agency system of records notices, together with an index (or 
        other finding aids);
            (6) investigate compliance with section 552a of title 5, 
        United States Code, and report on any violation of any 
        provision thereof (or of any regulation promulgated under such 
        section) to the President, the Attorney General, and the 
        Congress;
            (7) file comments on any proposal (A) to amend section 552a 
        of title 5, United States Code, or any regulation promulgated 
        under such section, (B) to create or modify a system of 
        records, or (C) to establish or alter routine uses of such a 
        system;
            (8) review Federal law, Executive orders, regulations, 
        directives, and judicial decisions and report on the extent to 
        which they are consistent with the rights of privacy, due 
        process of law, and other guarantees in the Constitution; and
            (9) comment on the implications for data protection of 
        proposed Federal, State, or local statutes, regulations, or 
        procedures.
    (c) Authority To Conduct Research.--(1) In the course of conducting 
the study required under subsection (b)(1) of this section, and in its 
reports thereon, the Board may research, examine, and analyze--
            (A) interstate transfer of information about individuals 
        that is undertaken through manual files or by computer or other 
        electronic or telecommunications means;
            (B) data banks and information programs and systems the 
        operation of which significantly or substantially affect the 
        enjoyment of the privacy and other personal and property rights 
        of individuals;
            (C) the use of social security numbers, license plate 
        numbers, universal identifiers, and other symbols to identify 
        individuals in data banks and to gain access to, integrate, or 
        centralize information systems and files; and
            (D) the matching and analysis of statistical data, such as 
        Federal census data, with other sources of personal data, such 
        as automobile registries and telephone directories, in order to 
        reconstruct individual responses to statistical questionnaires 
        for commercial or other purposes, in a way which results in a 
        violation of the implied or explicitly recognized 
        confidentiality of such information.
    (2)(A) The Board may include in its examination personal 
information activities in the following areas: medical; insurance; 
education; employment and personnel; credit, banking and financial 
institutions; credit bureaus; the commercial reporting industry; cable 
television and other telecommunications media; travel, hotel, and 
entertainment reservations; and electronic check processing.
    (B) The Board shall include in its examination a study of--
            (i) whether a person engaged in interstate commerce who 
        maintains a mailing list should be required to remove an 
        individual's name and address from such list upon request of 
        that individual;
            (ii) whether the Internal Revenue Service should be 
        prohibited from transferring individually identifiable data to 
        other agencies and to agencies of State governments;
            (iii) whether the Federal Government should be liable for 
        general damages incurred by an individual as the result of a 
        willful or intentional violation of the provisions of section 
        552a(g)(1) (C) or (D) of title 5, United States Code; and
            (iv) whether and how the standards for security and 
        confidentiality of records required under section 552a(e)(10) 
        of such title should be applied when a record is disclosed to a 
        person other than an agency.
    (C) The Board may study such other personal information activities 
necessary to carry out the congressional policy embodied in this Act, 
except that the Board shall not investigate information systems 
maintained by religious organizations.
    (3) In conducting such study, the Board shall--
            (A) determine the laws, Executive orders, regulations, 
        directives, and judicial decisions that govern the activities 
        under study and the extent to which they are consistent with 
        the rights of privacy, due process of law, and other guarantees 
        in the Constitution;
            (B) determine to what extent governmental and private 
        information systems affect Federal-State relations or the 
        principle of separation of powers;
            (C) examine the standards and criteria governing programs, 
        policies, and practices relating to the collection, soliciting, 
        processing, use, access, integration, dissemination, and 
        transmission of personal information; and
            (D) to the maximum extent practicable, collect and utilize 
        findings, reports, studies, hearing transcripts, and 
        recommendations of governmental, legislative and private 
        bodies, institutions, organizations, and individuals which 
        pertain to the problems under study by the Board.
    (d) Additional Authorities.--In addition to its other functions the 
Board may--
            (1) request assistance of the heads of appropriate 
        departments, agencies, and instrumentalities of the Federal 
        Government, of State and local governments, and of other 
        persons in carrying out its functions under this Act;
            (2) upon request, assist Federal agencies in complying with 
        the requirements of section 552a of title 5, United States 
        Code;
            (3) determine what specific categories of information, the 
        collection of which would violate an individual's right of 
        privacy, should be prohibited by statute from collection by 
        Federal agencies; and
            (4) upon request, prepare model legislation for use by 
        State and local governments in establishing procedures for 
        handling, maintaining, and disseminating personal information 
        at the State and local level and provide such technical 
        assistance to State and local governments as they may require 
        in the preparation and implementation of such legislation.
    (e) Investigations and Hearings.--(1) The Board may, in carrying 
out its functions under this section, conduct such inspections, sit and 
act at such times and places, hold such hearings, take such testimony, 
require by subpoena the attendance of such witnesses and the production 
of such books, records, papers, correspondence, and documents, 
administer such oaths, have such printing and binding done, and make 
such expenditures as the Board deems advisable. A subpoena shall be 
issued only upon an affirmative vote of a majority of all members of 
the Board. Subpoenas shall be issued under the signature of the 
Chairman or any member of the Board  designated by the Chairman and 
shall be served by any person designated by the Chairman or any such 
member. Any member of the Board may administer oaths or affirmations to 
witnesses appearing before the Board.
    (2)(A) Each department, agency, and instrumentality of the 
executive branch of the Government is authorized to furnish to the 
Board, upon request made by the Chairman, such information, data, 
reports and such other assistance as the Board deems necessary to carry 
out its functions under this section. Whenever the head of any such 
department, agency, or instrumentality submits a report pursuant to 
section 552a(o) of title 5, United States Code, a copy of such report 
shall be transmitted to the Board.
    (B) In carrying out its functions and exercising its powers under 
this section, the Board may accept from any such department, agency, 
independent instrumentality, or other person any individually 
identifiable data if such data is necessary to carry out such powers 
and functions. In any case in which the Board accepts any such 
information, it shall assure that the information is used only for the 
purpose for which it is provided, and upon completion of that purpose 
such information shall be destroyed or returned to such department, 
agency, independent instrumentality, or person from which it is 
obtained, as appropriate.
    (f) Personnel.--(1) The Board shall have the power to--
            (A) appoint and fix the compensation of an executive 
        director, and such additional staff personnel as may be 
        necessary, without regard to the provisions of title 5, United 
        States Code, governing appointments in the competitive service, 
        and without regard to chapter 51 and subchapter III of chapter 
        53 of such title relating to classification and General 
        Schedule pay rates, but at rates not in excess of the maximum 
        rate payable under section 5376 of such title; and
            (B) procure temporary and intermittent services to the same 
        extent as is authorized by section 3109 of title 5, United 
        States Code.
    (2) The Board may delegate any of its functions to such personnel 
of the Board as the Board may designate and may authorize such 
successive redelegations of such functions as it may deem desirable.
    (g) General Authority.--The Board is authorized--
            (1) to adopt, amend, and repeal rules and regulations 
        governing the manner of its operations, organization, and 
        personnel;
            (2) to enter into contracts or other arrangements or 
        modifications thereof, with any government, any department, 
        agency, or independent instrumentality of the United States, or 
        with any person, firm, association, or corporation, and such 
        contracts or other arrangements, or modifications thereof, may 
        be entered into without legal consideration, without 
        performance or other bonds, and without regard to section 3709 
        of the Revised Statutes (41 U.S.C. 5);
            (3) to make advance, progress, and other payments which the 
        Board deems necessary under this Act without regard to the 
        provisions of section 3324 of title 31, United States Code; and
            (4) to take such other action as may be necessary to carry 
        out its functions under this section.
    (h) Compensation and Expenses of Members.--(1) Each member of the 
Board who is an officer or employee of the United States shall serve 
without additional compensation, but shall continue to receive the 
salary of his regular position when engaged in the performance of the 
duties vested in the Board.
    (2) A member of the Board other than one to whom paragraph (1) 
applies shall receive per diem at the maximum daily rate payable under 
section 5376 of title 5, United States Code, when engaged in the actual 
performance of the duties vested in the Board.
    (3) All members of the Board shall be reimbursed for travel, 
subsistence, and other necessary expenses incurred by them in the 
performance of the duties vested in the Board.
    (i) Annual and Other Reports.--The Board shall, from time to time, 
and in an annual report, report to the President and the Congress on 
its activities in carrying out the provisions of this section.
    (j) Penalty for Violation of Privacy Rights.--(1) Any member, 
officer, or employee of the Board, who by virtue of his employment or 
official position, has possession of, or access to, agency records 
which contain individually identifiable information the disclosure of 
which is prohibited by this section, and who knowing that disclosure of 
the specific material is so prohibited, willfully discloses the 
material in any manner to any person or agency not entitled to receive 
it, shall be guilty of a misdemeanor and fined not more than $5,000.
    (2) Any person who knowingly and willfully requests or obtains any 
record concerning an individual from the Board under false pretenses 
shall be guilty of a misdemeanor and fined not more than $5,000.
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HR 184 IH----2