[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4049 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4049

  To establish the Commission for the Comprehensive Study of Privacy 
                              Protection.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 21, 2000

 Mr. Hutchinson (for himself, Mr. Moran of Virginia, Ms. Granger, Mr. 
 Brady of Texas, Mr. Davis of Florida, Ms. Pryce of Ohio, Mr. Sununu, 
  Mr. Barrett of Wisconsin, Mr. Coburn, Mr. Dickey, Mr. Kleczka, Mr. 
Pitts, Mr. Greenwood, Mr. Riley, Mr. Duncan, Mr. Lucas of Oklahoma, Mr. 
Kolbe, Mr. Campbell, Mrs. Kelly, Mr. Davis of Virginia, and Mr. Vitter) 
 introduced the following bill; which was referred to the Committee on 
                           Government Reform

_______________________________________________________________________

                                 A BILL


 
  To establish the Commission for the Comprehensive Study of Privacy 
                              Protection.

    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 ``Privacy Commission Act''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Americans are increasingly concerned about their civil 
        liberties and the security and use of their personal 
        information, including medical records, educational records, 
        library records, magazine subscription records, records of 
        purchases of goods and other payments, and driver's license 
        numbers.
            (2) Commercial entities are increasingly aware that 
        consumers expect them to adopt privacy policies and take all 
        appropriate steps to protect the personal information of 
        consumers.
            (3) There is a growing concern about the confidentiality of 
        medical records, because there are inadequate Federal 
        guidelines and a patchwork of confusing State and local rules 
        regarding privacy protection for individually identifiable 
        patient information.
            (4) In light of recent changes in financial services laws 
        allowing for increased sharing of information between 
        traditional financial institutions and insurance entities, a 
        coordinated and comprehensive review is necessary regarding the 
        protections of personal data compiled by the health care, 
        insurance, and financial services industries.
            (5) The use of Social Security numbers has expanded beyond 
        the uses originally intended.
            (6) Use of the Internet has increased at astounding rates, 
        with approximately 5 million current Internet sites and 64 
        million regular Internet users each month in the United States 
        alone.
            (7) Financial transactions over the Internet have increased 
        at an astounding rate, with 17 million American households 
        spending $20 billion shopping on the Internet last year.
            (8) Use of the Internet as a medium for commercial 
        activities will continue to grow, and it is estimated that by 
        the end of 2000, 56 percent of the companies in the United 
        States will sell their products on the Internet.
            (9) There have been reports of surreptitious collection of 
        consumer data by Internet marketers and questionable 
        distribution of personal information by on-line companies.
            (10) In 1999, the Federal Trade Commission found that 87 
        percent of Internet sites provided some form of privacy notice, 
        which represented an increase from 15 percent in 1998.
            (11) The United States is the leading economic and social 
        force in the global information economy, largely because of a 
        favorable regulatory climate and the free flow of information. 
        It is important for the United States to continue that 
leadership. As nations and governing bodies around the world begin to 
establish privacy standards, these standards will directly affect the 
United States.
            (12) The shift from an industry-focused economy to an 
        information-focused economy calls for a reassessment of the 
        most effective way to balance personal privacy and information 
        use, keeping in mind the potential for unintended effects on 
        technology development, innovation, the marketplace, and 
        privacy needs.

SEC. 3. ESTABLISHMENT.

    There is established a commission to be known as the ``Commission 
for the Comprehensive Study of Privacy Protection'' (in this Act 
referred to as the ``Commission'').

SEC. 4. DUTIES OF COMMISSION.

    (a) Study.--The Commission shall conduct a study of issues relating 
to protection of individual privacy and the appropriate balance to be 
achieved between protecting individual privacy and allowing appropriate 
uses of information, including the following:
            (1) The monitoring, collection, and distribution of 
        personal information by Federal, State, and local governments, 
        including personal information collected for a decennial 
        census, and such personal information as a driver's license 
        number.
            (2) Current efforts to address the monitoring, collection, 
        and distribution of personal information by Federal and State 
        governments, individuals, or entities, including--
                    (A) existing statutes and regulations relating to 
                the protection of individual privacy, such as section 
                552a of title 5, United States Code (commonly referred 
                to as the Privacy Act of 1974) and section 552 of title 
                5, United States Code (commonly referred to as the 
                Freedom of Information Act);
                    (B) legislation pending before the Congress;
                    (C) privacy protection efforts undertaken by the 
                Federal Government, State governments, foreign 
                governments, and international governing bodies;
                    (D) privacy protection efforts undertaken by the 
                private sector; and
                    (E) self-regulatory efforts initiated by the 
                private sector to respond to privacy issues.
            (3) The monitoring, collection, and distribution of 
        personal information by individuals or entities, including 
        access to and use of medical records, financial records 
        (including credit cards, automated teller machine cards, bank 
        accounts, and Internet transactions), personal information 
        provided to on-line sites accessible through the Internet, 
        Social Security numbers, insurance records, education records, 
        and driver's license numbers.
    (b) Field Hearings.--
            (1) In general.--The Commission shall conduct at least four 
        field hearings in each of the five geographical regions of the 
        United States.
            (2) Boundaries.--For purposes of this subsection, the 
        Commission may determine the boundaries of the five 
        geographical regions of the United States.
    (c) Report.--
            (1) In general.--Not later than 18 months after appointment 
        of all members of the Commission--
                    (A) a majority of the members of the Commission 
                shall approve a report; and
                    (B) the Commission shall submit the approved report 
                to the Congress and the President.
            (2) Contents.--The report shall include a detailed 
        statement of findings, conclusions, and recommendations, 
        including the following:
                    (A) Findings on potential threats posed to 
                individual privacy.
                    (B) Analysis of purposes for which sharing of 
                information is appropriate and beneficial to consumers.
                    (C) Analysis of the effectiveness of existing 
                statutes, regulations, private sector self-regulatory 
                efforts, technology advances, and market forces in 
                protecting individual privacy.
                    (D) Recommendations on whether additional 
                legislation is necessary, and if so, specific 
                suggestions on proposals to reform or augment current 
                laws and regulations relating to individual privacy.
                    (E) Analysis of purposes for which additional 
                regulations may impose undue costs or burdens, or cause 
                unintended consequences in other policy areas, such as 
                security, law enforcement, medical research, or 
                critical infrastructure protection.
                    (F) Cost analysis of legislative or regulatory 
                changes proposed in the report.
                    (G) Recommendations on non-legislative solutions to 
                individual privacy concerns, including education, 
                market-based measures, industry best practices, and new 
                technology.
    (d) Additional Report.--Together with the report under subsection 
(c), the Commission shall submit to the Congress and the President any 
additional report of dissenting opinions or minority views by a member 
of the Commission.
    (e) Interim Report.--The Commission may submit to the Congress and 
the President an interim report approved by a majority of the members 
of the Commission.

SEC. 5. MEMBERSHIP.

    (a) Number and Appointment.--The Commission shall be composed of 17 
members appointed as follows:
            (1) 4 members appointed by the President.
            (2) 4 members appointed by the majority leader of the 
        Senate.
            (3) 2 members appointed by the minority leader of the 
        Senate.
            (4) 4 members appointed by the Speaker of the House of 
        Representatives.
            (5) 2 members appointed by the minority leader of the House 
        of Representatives.
            (6) 1 member, who shall serve as Chairperson of the 
        Commission, appointed jointly by the President, the majority 
        leader of the Senate, and the Speaker of the House of 
        Representatives.
    (b) Date of Appointment.--The appointment of the members of the 
Commission shall be made not later than 30 days after the date of the 
enactment of this Act.
    (c) Terms.--Each member of the Commission shall be appointed for 
the life of the Commission.
    (d) Vacancies.--A vacancy in the Commission shall be filled in the 
same manner in which the original appointment was made.
    (e) Compensation; Travel Expenses.--Members of the Commission shall 
serve without pay, but shall receive travel expenses, including per 
diem in lieu of subsistence, in accordance with sections 5702 and 5703 
of title 5, United States Code.
    (f) Quorum.--A majority of the members of the Commission shall 
constitute a quorum, but a lesser number may hold hearings.
    (g) Meetings.--
            (1) In general.--The Commission shall meet at the call of 
        the Chairperson or a majority of its members.
            (2) Initial meeting.--Not later than 45 days after the date 
        of the enactment of this Act, the Commission shall hold its 
        initial meeting.

SEC. 6. DIRECTOR; STAFF; EXPERTS AND CONSULTANTS.

    (a) Director.--
            (1) In general.--On or after October 1, 2000, the 
        Commission shall appoint a Director without regard to the 
        provisions of title 5, United States Code, governing 
        appointments to the competitive service.
            (2) Pay.--The Director shall be paid at the rate payable 
        for level III of the Executive Schedule established under 
        section 5314 of such title.
    (b) Staff.--The Director may appoint staff as the Director 
determines appropriate.
    (c) Applicability of Certain Civil Service Laws.--
            (1) In general.--The staff of the Commission shall be 
        appointed without regard to the provisions of title 5, United 
        States Code, governing appointments in the competitive service.
            (2) Pay.--The staff of the Commission shall be paid in 
        accordance with the provisions of chapter 51 and subchapter III 
        of chapter 53 of that title relating to classification and 
        General Schedule pay rates, but at rates not in excess of the 
        maximum rate for grade GS-15 of the General Schedule under 
        section 5332 of that title.
    (d) Experts and Consultants.--The Director may procure temporary 
and intermittent services under section 3109(b) of title 5, United 
States Code.
    (e) Staff of Federal Agencies.--
            (1) In general.--Upon request of the Director, the head of 
        any Federal department or agency may detail, on a reimbursable 
        basis, any of the personnel of that department or agency to the 
        Commission to assist it in carrying out this Act.
            (2) Notification.--Before making a request under this 
        subsection, the Director shall give notice of the request to 
        each member of the Commission.

SEC. 7. POWERS OF COMMISSION.

    (a) Hearings and Sessions.--The Commission may, for the purpose of 
carrying out this Act, hold hearings, sit and act at times and places, 
take testimony, and receive evidence as the Commission considers 
appropriate. The Commission may administer oaths or affirmations to 
witnesses appearing before it.
    (b) Powers of Members and Agents.--Any member or agent of the 
Commission may, if authorized by the Commission, take any action which 
the Commission is authorized to take by this section.
    (c) Obtaining Official Data.--The Commission may secure directly 
from any department or agency of the United States information 
necessary to enable it to carry out this Act. Upon request of the 
Chairperson of the Commission, the head of that department or agency 
shall furnish that information to the Commission.
    (d) Mails.--The Commission may use the United States mails in the 
same manner and under the same conditions as other departments and 
agencies of the United States.
    (e) Administrative Support Services.--Upon the request of the 
Director, the Administrator of General Services shall provide to the 
Commission, on a reimbursable basis, the administrative support 
services necessary for the Commission to carry out this Act.
    (f) Gifts and Donations.--The Commission may accept, use, and 
dispose of gifts or donations of services or property to carry out this 
Act, but only to the extent or in the amounts provided in advance in 
appropriation Acts.
    (g) Contracts.--The Commission may contract with and compensate 
persons and government agencies for supplies and services, without 
regard to section 3709 of the Revised Statutes (41 U.S.C. 5).

SEC. 8. TERMINATION.

    The Commission shall terminate 30 days after submitting a report 
under section 4(c).

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to the 
Commission $2,500,000 to carry out this Act.
    (b) Availability.--Any sums appropriated pursuant to the 
authorization in subsection (a) shall remain available until expended.

SEC. 10. BUDGET ACT COMPLIANCE.

    Any new contract authority authorized by this Act shall be 
effective only to the extent or in the amounts provided in advance in 
appropriation Acts.
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