[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2885 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2885

 To provide uniform safeguards for the confidentiality of information 
   acquired for exclusively statistical purposes, and to improve the 
 efficiency and quality of Federal statistics and Federal statistical 
  programs by permitting limited sharing of records among designated 
       agencies for statistical purposes under strong safeguards.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 21, 1999

 Mr. Horn (for himself, Mr. Waxman, Mr. Walden of Oregon, Mr. Turner, 
Mrs. Biggert, and Mr. Davis of Virginia) introduced the following bill; 
        which was referred to the Committee on Government Reform

_______________________________________________________________________

                                 A BILL


 
 To provide uniform safeguards for the confidentiality of information 
   acquired for exclusively statistical purposes, and to improve the 
 efficiency and quality of Federal statistics and Federal statistical 
  programs by permitting limited sharing of records among designated 
       agencies for statistical purposes under strong safeguards.

    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 cited as the ``Statistical Efficiency Act of 
1999''.

SEC. 2. DEFINITIONS.

    As used in this Act:
            (1) The term ``agency'' means any entity that falls within 
        the definition of the term ``executive agency'' as defined in 
        section 102 of title 31, United States Code, or ``agency'', as 
        defined in section 3502 of title 44, United States Code.
            (2) The term ``agent'' means a person who--
                    (A) is designated by a Statistical Data Center (as 
                designated in section 3) to perform exclusively 
                statistical activities authorized by law under the 
                supervision or control of an officer or employee of 
                that Statistical Data Center; and
                    (B) has agreed in writing to comply with all 
                provisions of law that affect information acquired by 
                that Statistical Data Center.
            (3) The term ``identifiable form'' means any representation 
        of information that permits information concerning individual 
        subjects to be reasonably inferred by either direct or indirect 
        means.
            (4) The term ``nonstatistical purpose'' means any purpose 
        that is not a statistical purpose, and includes any 
        administrative, regulatory, law enforcement, adjudicatory, or 
        other purpose that affects the rights, privileges, or benefits 
        of a particular identifiable respondent.
            (5) The term ``respondent'' means a person who, or 
        organization that, is requested or required to supply 
        information to an agency, is the subject of information 
        requested or required to be supplied to an agency, or who 
        provides that information to an agency.
            (6) The term ``statistical activities''--
                    (A) means the collection, compilation, processing, 
                or analysis of data for the purpose of describing or 
                making estimates concerning the whole, or relevant 
                groups or components within, the economy, society, or 
                natural environment; and
                    (B) includes the development of methods or 
                resources that support those activities, such as 
                measurement methods, models, statistical 
                classifications, or sampling frames.
            (7) The term ``statistical purpose''--
                    (A) means the description, estimation, or analysis 
                of the characteristics of groups without regard to the 
                identities of individuals or organizations that 
                comprise such groups; and
                    (B) includes the development, implementation, or 
                maintenance of methods, technical or administrative 
                procedures, or information resources that support such 
                purposes.

SEC. 3. DESIGNATION OF STATISTICAL DATA CENTERS.

    (a) In General.--Each of the following is hereby designated as a 
Statistical Data Center:
            (1) The Bureau of Economic Analysis in the Department of 
        Commerce.
            (2) The Bureau of the Census in the Department of Commerce.
            (3) The Bureau of Labor Statistics in the Department of 
        Labor.
            (4) The National Agricultural Statistics Service in the 
        Department of Agriculture.
            (5) The National Center for Education Statistics in the 
        Department of Education.
            (6) The National Center for Health Statistics in the 
        Department of Health and Human Services.
            (7) The Energy End Use and Integrated Statistics Division 
        of the Energy Information Administration in the Department of 
        Energy.
            (8) The Division of Science Resources Studies in the 
        National Science Foundation.
    (b) Designation.--In the case of a reorganization that eliminates, 
or substantially alters the mission or functions of, an agency or 
agency component listed in subsection (a), the Director of the Office 
of Management and Budget, after consultation with the head of the 
agency proposing the reorganization, may designate an agency or agency 
component that shall serve as a successor Statistical Data Center under 
the terms of this Act, if the Director determines that--
            (1) the primary activities of the proposed Statistical Data 
        Center are statistical activities specifically authorized by 
        law;
            (2) the proposed Statistical Data Center would participate 
        in data sharing activities that significantly improve Federal 
        statistical programs or products;
            (3) the proposed Statistical Data Center has demonstrated 
        its capability to protect the individual confidentiality of any 
        shared data; and
            (4) the laws that apply to the proposed Statistical Data 
        Center are not inconsistent with this Act.
    (c) Notice and Comment.--The head of an agency seeking designation 
as a successor Statistical Data Center under this section shall, after 
consultation with the Director of the Office of Management and Budget, 
provide public notice and an opportunity to comment on the consequences 
of such designation and on those determinations upon which the 
designation is proposed to be based.
    (d) Prohibition Against Increase in Number of Centers.--No action 
taken under this section shall increase the number of Statistical Data 
Centers authorized by this Act.

SEC. 4. STATISTICAL DATA CENTER RESPONSIBILITIES.

    The Statistical Data Centers designated in section 3 shall--
            (1) identify opportunities to eliminate duplication and 
        otherwise reduce reporting burden and cost imposed on the 
        public by sharing information for exclusively statistical 
        purposes;
            (2) enter into joint statistical projects to improve the 
        quality and reduce the cost of statistical programs;
            (3) safeguard the confidentiality of individually 
        identifiable information acquired for statistical purposes by 
        assuring its physical security and by controlling access to, 
        and uses made of, such information; and
            (4) respect the rights and privileges of the public by 
        observing and promoting fair information practices.

SEC. 5. LIMITATIONS ON USE AND DISCLOSURE OF DATA AND INFORMATION BY 
              STATISTICAL DATA CENTERS.

    (a) Use of Statistical Data or Information.--Data or information 
acquired by a Statistical Data Center for exclusively statistical 
purposes shall be used by the Center only for statistical purposes.
    (b) Disclosure of Statistical Data or Information.--(1) Data or 
information acquired for exclusively statistical purposes shall not be 
disclosed in identifiable form without the informed consent of the 
respondent.
    (2) Data or information acquired for exclusively statistical 
purposes shall not be disclosed for any purpose other than a 
statistical purpose without the informed consent of the respondent.
    (c) Rule for Use of Data or Information for Nonstatistical 
Purposes.--A Statistical Data Center shall clearly distinguish any data 
or information collected for nonstatistical purposes (as authorized by 
law) by the Statistical Data Center by a rule that provides that the 
respondent supplying the data or information is fully informed, before 
the data or information is collected, that the data or information will 
be used for nonstatistical purposes.

SEC. 6. DISCLOSURE OF DATA OR INFORMATION BY AGENCIES TO STATISTICAL 
              DATA CENTERS.

    (a) Agencies That May Disclose Data or Information to a Statistical 
Data Center.--Subject to subsection (b), any Federal agency may 
disclose data or information to one or more Statistical Data Centers 
for exclusively statistical purposes.
    (b) Limitations on Disclosure.--Data or information may be 
disclosed by an agency to one or more Statistical Data Centers under 
subsection (a) only if--
            (1) the data or information are to be used exclusively for 
        statistical purposes by the Statistical Data Center or Centers;
            (2) the disclosure of, and proposed use of, the data or 
        information by the Statistical Data Center is not inconsistent 
        with any provisions of law or Executive order that explicitly 
        limit the statistical purposes for which such data or 
        information may be used;
            (3) the disclosure is not prohibited by law or Executive 
        order in the interest of national security;
            (4) the disclosure is made under the terms of a written 
        agreement between the Statistical Data Center or Centers and 
        the agency supplying the data or information that specifies--
                    (A) the data or information to be disclosed;
                    (B) the purposes for which the data or information 
                are to be used; and
                    (C) appropriate security procedures to safeguard 
                the confidentiality of the data or information; and
            (5) the data or information is not disclosed by that Center 
        in identifiable form (except in a case in which the data or 
        information was collected directly by a party to the agreement, 
        referred to in subsection (b)(4), and the agreement specifies 
        that the data or information may be so disclosed to another 
        party to the agreement for exclusively statistical purposes).
    (c) Notice.--Whenever a written agreement authorized under 
subsection (b)(4) concerns data that respondents were required by law 
to report and the agreement contains terms that could not reasonably 
have been anticipated by respondents who provided the data that will be 
disclosed, or upon the initiative of any party to such an agreement, or 
whenever ordered by the Director of the Office of Management and 
Budget, the terms of such agreement shall be described in a public 
notice issued by the agency that intends to disclose the data. Such 
notice shall allow a minimum of 60 days for public comment before such 
agreement shall take effect. The Director shall be fully apprised of 
any issues raised by the public and may suspend the effect of such an 
agreement to permit modifications responsive to public comments.
    (d) Applicability of Other Laws.--(1) The disclosure of data or 
information by an agency to a Statistical Data Center under this 
section shall in no way alter the responsibility of that agency under 
other statutes (including the Freedom of Information Act and the 
Privacy Act) with respect to the disclosure or withholding of such 
information by that agency.
    (2) If data or information obtained by an agency is disclosed to 
another agency pursuant to this section, all provisions of law 
(including penalties) that relate to the unlawful disclosure of the 
data or information apply to the officers, employees, or agents of the 
agency to which the data or information is disclosed to the same extent 
and in the same manner as the provisions apply to the officers and 
employees of the agency which originally obtained the information.
    (3) The officers, employees, and agents of the agency to which the 
data or information is disclosed, in addition, shall be subject to the 
same provisions of law, including penalties, relating to the unlawful 
disclosure of information that would apply to officers and employees of 
that agency, if the information had been collected directly by that 
agency.

SEC. 7. COORDINATION AND OVERSIGHT BY OFFICE OF MANAGEMENT AND BUDGET.

    (a) In General.--The Director of the Office of Management and 
Budget shall coordinate and oversee the confidentiality and disclosure 
policies established by this Act.
    (b) Report of Disclosure Agreements.--(1) The head of a Statistical 
Data Center shall report to the Office of Management and Budget--
            (A) each disclosure agreement entered into pursuant to 
        section 6(b)(4);
            (B) the results of any review of information security 
        undertaken at the request of the Office of Management and 
        Budget; and
            (C) the results of any similar review undertaken on the 
        initiative of the Statistical Data Center or an agency 
        disclosing data or information to a Statistical Data Center.
    (2) The Director of the Office of Management and Budget shall 
include a summary of all reports submitted to the Director under this 
subsection and any actions taken by the Director to advance the 
purposes of this Act in the annual report to the Congress on 
statistical programs submitted in accordance with section 3502(e)(2) of 
title 44, United States Code.
    (c) Review and Approval of Rules.--The Director of the Office of 
Management and Budget shall review and approve any rules proposed 
pursuant to this Act for consistency with this Act and chapter 35 of 
title 44, United States Code.

SEC. 8. IMPLEMENTING REGULATIONS.

    (a) In General.--Subject to subsections (b) and (c), the Director 
of the Office of Management and Budget, or the head of a Statistical 
Data Center or of an agency providing information to a Center, may 
promulgate such rules as may be necessary to implement this Act.
    (b) Consistency.--The Director of the Office of Management and 
Budget shall promulgate rules or provide such other guidance as may be 
needed to ensure consistent interpretation of this Act by the affected 
agencies.
    (c) Agency Rules.--Rules governing disclosures of information 
authorized by this Act shall be promulgated by the agency that 
originally collected the information, subject to the review and 
approval required under this Act.

SEC. 9. EFFECT ON OTHER LAWS.

    (a) Title 44 U.S.C.--This Act, including the amendments made by 
this Act, does not diminish the authority under section 3510 of title 
44, United States Code, of the Director of the Office of Management and 
Budget to direct, and of an agency to make, disclosures that are not 
inconsistent with any applicable law.
    (b) Exemption From Freedom of Information Act.--Data or information 
acquired for exclusively statistical purposes as provided in section 5 
is exempt from mandatory disclosure under section 552 of title 5, 
United States Code, pursuant to section 552(b)(3) of such title.
    (c) Preemption of State Law.--Nothing in this Act shall preempt 
applicable State law regarding the confidentiality of data collected by 
the States.

SEC. 10. CONFORMING AMENDMENTS; PROPOSED CHANGES IN LAW.

    (a) Department of Commerce.--(1) Section 1 of the Act of January 
27, 1938 (15 U.S.C 176a) is amended by striking ``The'' and inserting 
``Except as provided in the Statistical Efficiency Act of 1999, the''.
    (2)(A) Chapter 10 of title 13, United States Code, is amended by 
adding after section 401 the following:
``Sec. 402. Exchange of census information with Statistical Data 
              Centers
    ``The Bureau of the Census is authorized to provide data collected 
under this title to Statistical Data Centers named in the Statistical 
Efficiency Act of 1999, or their successors designated under the terms 
of that Act.''.
    (B) The table of sections for chapter 10 of title 13, United States 
Code, is amended by adding after the item relating to section 401 the 
following:

``402. Exchange of census information with Statistical Data Centers.''.
    (b) Department of Energy.--(1) Section 205 of the Department of 
Energy Organization Act (Public Law 95-91; 42 U.S.C. 7135) is amended 
by adding after subsection (l) the following new subsection:
    ``(m)(1)(A) The Administrator shall designate an organizational 
unit to conduct statistical activities pertaining to energy end use 
consumption information. Using procedures authorized by the Statistical 
Efficiency Act of 1999, the Administrator shall ensure the security, 
integrity, and confidentiality of the information that has been 
submitted in identifiable form and supplied exclusively for statistical 
purposes either directly to the Energy Information Administration or by 
other Government agencies.
    ``(B) To carry out this section, the Administrator shall establish 
procedures for the disclosure of these data to Statistical Data Centers 
for statistical purposes only consistent with chapter 35 of title 44, 
United States Code (commonly referred to as the ``Paperwork Reduction 
Act''), and the Statistical Efficiency Act of 1999.
    ``(2)(A) A person may not publish, cause to be published, or 
otherwise communicate, statistical information designated in paragraph 
(1) in a manner that identifies any respondent.
    ``(B) A person may not use statistical information designated in 
paragraph (1) for a nonstatistical purpose.
    ``(C) The identity of a respondent who supplies, or is the subject 
of, information collected for statistical purposes--
            ``(i) may not be disclosed through any process, including 
        disclosure through legal process, unless the respondent 
        consents in writing;
            ``(ii) may not be disclosed to the public, unless 
        information has been transformed into a statistical or 
        aggregate form that does not allow the identification of the 
        respondent who supplied the information or who is the subject 
        of that information; and
            ``(iii) may not, without the written consent of the 
        respondent, be admitted as evidence or used for any purpose in 
        an action, suit, or other judicial or administrative 
        proceeding.
    ``(D) Any person who violates subparagraphs (2)(A), (B), or (C), 
upon conviction, shall be fined under title 18, United States Code, 
imprisoned not more than 1 year, or both.
    ``(E) For purposes of this subsection:
            ``(i) The term `person' has the meaning given the term in 
        section 1 of title 1, United States Code, but also includes a 
        local, State, or Federal entity or officer or employee of a 
        local, State, or Federal entity.
            ``(ii) The terms `statistical activities', `identifiable 
        form', `statistical purpose', `nonstatistical purpose', and 
        `respondent' have the meaning given those terms in section 2 of 
        the Statistical Efficiency Act of 1999.
    ``(3) Statistical information designated in paragraph (1) is exempt 
from disclosure under sections 205(f) and 407 of this Act and sections 
12, 20, and 59 of the Federal Energy Administration Act of 1974, or any 
other law which requires disclosure of that information.''.
    (2) Section 205(f) of the Department of Energy Organization Act (42 
U.S.C. 7135) is amended by inserting ``, excluding information 
designated solely for statistical purposes under subsection (m)(1),'' 
after ``analysis''.
    (3) Section 407(a) of the Department of Energy Organization Act (42 
U.S.C. 7177(a)) is amended by inserting ``, excluding information 
designated solely for statistical purposes under subsection (m)(1),'' 
after ``information''.
    (4) The Federal Energy Administration Act of 1974 (Public Law 93-
275) is amended--
            (A) in section 12 (15 U.S.C. 771), by adding after 
        subsection (f) the following new subsection:
    ``(g) This section does not apply to information designated solely 
for statistical purposes under section 205(m)(1) of the Department of 
Energy Organization Act (Public Law 95-91).'';
            (B) in section 20(a)(3) (15 U.S.C. 779(a)(3)), by inserting 
        ``, excluding information designated solely for statistical 
        purposes under subsection (m)(1) of the Department of Energy 
        Organization Act (42 U.S.C. 7135)'' after ``information''; and
            (C) in the first sentence of section 59 (15 U.S.C. 790h), 
        by inserting ``, excluding information designated solely for 
        statistical purposes under subsection (m)(1) of the Department 
        of Energy Organization Act (42 U.S.C 7135)'' after 
        ``information''.
    (c) Department of Health and Human Services.--Section 306 of the 
Public Health Service Act (42 U.S.C. 242k) is amended by adding at the 
end the following new subsection:
    ``(o) Sharing of Identifying Information for Statistical 
Purposes.--
            ``(1) In general.--The Director may, subject to the 
        provisions of paragraph (2), designate as an agent of the 
        Center (within the meaning of section 2 of the Statistical 
        Efficiency Act of 1999) an individual--
                    ``(A) who is not otherwise an employee, official, 
                or agent of the Center; and
                    ``(B) who enters into a written agreement with the 
                Director specifying terms and conditions for sharing of 
                statistical information.
            ``(2) Effect of designation.--An individual designated as 
        an agent of the Center pursuant to paragraph (1) shall be 
        subject to all restrictions on the use and disclosure of 
        statistical information obtained by the individual under the 
        agreement specified in paragraph (1)(B), and to all civil and 
        criminal penalties applicable to violations of such 
        restrictions, including penalties under section 1905 of title 
        18, United States Code, that would apply to the individual if 
        an employee of the Center.''.
    (d) Department of Labor.--Chapter 1 of title 29, United States 
Code, is amended by inserting after section 2b the following:
``Sec. 2c. Designation of Bureau of Labor Statistics Agents
    ``The Commissioner of Labor Statistics is authorized to designate 
agents, as defined in section 2 of the Statistical Efficiency Act of 
1999.''.
    (e) National Science Foundation.--Section 14 of the National 
Science Foundation Act of 1950 (42 U.S.C. 1873) is amended--
            (1) by amending subsection (i) to read as follows:
    ``(i) Information supplied to the Foundation or its contractor in 
survey forms, questionnaires, or similar instruments for purposes of 
section 3(a)(5) or (6) by an individual, by an industrial or commercial 
organization, or by an educational or academic institution that has 
received a pledge of confidentiality from the Foundation, may not be 
disclosed to the public unless the information has been transformed 
into statistical or abstract formats that do not allow the 
identification of the supplier. Such information shall be used in 
identifiable form only for statistical purposes as defined in the 
Statistical Efficiency Act of 1999. The names of individuals and 
organizations supplying such information may not be disclosed to the 
public.'';
            (2) by redesignating subsection (j) as subsection (k); and
            (3) by adding the following new subsection after subsection 
        (i):
    ``(j) In support of functions authorized by section 3(a)(5) or (6), 
the Foundation may designate, at its discretion, authorized persons, 
including employees of Federal, State, or local agencies (including 
local educational agencies) and employees of private organizations who 
may have access, for exclusively statistical purposes as defined in the 
Statistical Efficiency Act of 1999, to identifiable information 
collected pursuant to section 3(a)(5) or (6). No such person may--
            ``(1) publish information collected under section 3(a)(5) 
        or (6) in such a manner that either an individual, an 
        industrial or commercial organization, or an educational or 
        academic institution that has received a pledge of 
        confidentiality from the Foundation, can be specifically 
        identified;
            ``(2) permit anyone other than individuals authorized by 
        the Foundation to examine in identifiable form data relating to 
        an individual, to an industrial or commercial organization, or 
        to an educational or academic institution that has received a 
        pledge of confidentiality from the Foundation; or
            ``(3) knowingly and willfully request or obtain any 
        confidential information described in subsection (i) from the 
        Foundation under false pretenses.
Any person who violates these restrictions shall be fined not more than 
$10,000, or imprisoned not more than five years, or both.''.
    (f) Disclosure Penalties.--Section 1905 of title 18, United States 
Code, is amended--
            (1) by inserting ``, or agent of a Statistical Data Center 
        as defined in the Statistical Efficiency Act of 1999,'' after 
        ``thereof''; and
            (2) by striking ``shall be fined not more than $1,000'' and 
        inserting ``shall be fined under this title''.
    (g) Proposed Changes in Law.--Not later than the date that is 90 
days after the date of the enactment of this Act, the President shall 
submit to Congress a description of any additional conforming changes 
in law necessary to carry out the provisions of this Act.
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