[Congressional Record Volume 140, Number 52 (Wednesday, May 4, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: May 4, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                 CONSUMER REPORTING REFORM ACT OF 1994

  The PRESIDING OFFICER. Under the previous order, the hour of 11:30 
a.m. having arrived, the Senate will now resume consideration of S. 
783, which the clerk will report.
  The assistant legislative clerk read as follows:

       A bill (S. 783) to amend the Fair Credit Reporting Act, and 
     for other purposes.

  The Senate resumed consideration of the bill.
  Mr. SIMON addressed the Chair.
  The PRESIDING OFFICER. The Senator from Illinois.


                           Amendment No. 1671

        (Purpose: To establish a Privacy Protection Commission.)

  Mr. SIMON. Madam President, I send an amendment to the desk.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Illinois [Mr. Simon] proposes an amendment 
     numbered 1671.

  Mr. SIMON. Madam President, I ask unanimous consent that the reading 
of the amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       At the appropriate place in the bill, add the following new 
     title:
                TITLE III--PRIVACY PROTECTION COMMISSION

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Privacy Protection Act of 
     1994''.

     SEC. 302. FINDINGS AND PURPOSE.

       The Congress finds that--
       (1) we live in an age of ever-increasing dependence on 
     electronic data storage, communications, and usage;
       (2) vast quantities of data are stored electronically and 
     may be instantly transferred electronically from 1 party to 
     another for business or for other purposes;
       (3) the nature of such data allows for the increasing 
     possibility that an individual's privacy rights may be 
     violated;
       (4) the technology is growing so rapidly that broader 
     societal consequences may not have been reviewed or studied 
     nor is it clear how the use of such technology will affect 
     existing data systems and their use; and
       (5) a United States Privacy Protection Commission should be 
     established to--
       (A) ensure that privacy rights of United States citizens in 
     regard to electronic data and fair information practices and 
     principles are not abused or violated;
       (B) provide advisory guidance to the public and private 
     sector on matters related to electronic data storage, 
     communication, and usage;
       (C) provide the public with a central agency for 
     information and guidance on privacy protections and fair 
     information practices and principles;
       (D) advise the Congress on the Federal agencies' 
     implementation of section 552a of title 5, United States 
     Code; and
       (E) promote and encourage the adoption of fair information 
     practices and principles in the public and private sector, 
     which should include--
       (i) the principle of openness, which provides that the 
     existence of recordkeeping systems and databanks containing 
     information about individuals be publicly known, along with a 
     description of main purpose and uses of the data;
       (ii) the principle of individual participation, which 
     provides that each individual should have the right to see 
     any data about him or herself and to correct any data that is 
     not timely, accurate, or complete;
       (iii) the principle of data quality, which provides that 
     personal data should be relevant to the purposes for which 
     they are to be used, and data should be timely, accurate, and 
     complete;
       (iv) the principle of collection limitation, which provides 
     that there should be limits to the collection of personal 
     data, that data should be collected by lawful and fair means, 
     and that data should be collected, where appropriate, with 
     the knowledge and consent of the subject;
       (v) the principle of use limitation, which provides that 
     there are limits to the use of personal data and that data 
     should be used only for purposes specified at the time of 
     collection;
       (vi) the principle of disclosure limitation, which provides 
     that personal data should not be communicated externally 
     without the consent of the data subject or other legal 
     authority;
       (vii) the principle of security, which provides that 
     personal data should be protected by reasonable security 
     safeguards against such risks as loss, unauthorized access, 
     destruction, use, modification, or disclosure; and
       (viii) the principle of accountability, which provides that 
     recordkeepers should be accountable for complying with fair 
     information practices and principles.

     SEC. 303. ESTABLISHMENT OF PRIVACY PROTECTION COMMISSION.

       There is established the Privacy Protection Commission 
     (referred to in this title as the ``Commission'').

     SEC. 304. PRIVACY PROTECTION COMMISSION.

       (a) Membership.--(1) The Commission shall be composed of 3 
     members who shall be appointed by the President, by and with 
     the advice and consent of the Senate, from among members of 
     the public at large who are qualified for service on the 
     Commission by their knowledge and expertise in--
       (A) civil rights and liberties;
       (B) law;
       (C) social sciences;
       (D) computer technology;
       (E) business; or
       (F) State and local government.
       (2) Not more than 2 members of the Commission shall be 
     members of the same political party.
       (3) The President shall designate 1 of the members as 
     Chairperson of the Commission.
       (b) Meetings.--The Chairperson shall preside at all 
     meetings of the Commission, but the Chairperson may designate 
     another member as an acting Chairperson who may preside in 
     the absence of the Chairperson. A quorum for the transaction 
     of business shall consist of at least 2 members present, 
     except that 1 member may conduct hearings and take testimony 
     if authorized by the Commission. Each member of the 
     Commission, including the Chairperson, shall have equal 
     responsibility and authority in all decisions and actions of 
     the Commission, and shall have full access to all information 
     relating to performance of the duties or responsibilities of 
     the Commission, and shall have 1 vote. Action of the 
     Commission shall be determined by a majority vote of the 
     members. The Chairperson or acting Chairperson shall see to 
     the faithful execution of the policies and decisions of the 
     Commission and shall report thereon to the Commission from 
     time to time or as the Commission may direct.
       (c) Terms.--(1) A member of the Commission shall serve for 
     a term of 7 years, except that of members first appointed to 
     the Commission--
       (A) the member designated as Chairperson by the President 
     shall be appointed for a term of 7 years;
       (B) 1 member shall be appointed for a term of 5 years;
       (C) 1 member shall be appointed for a term of 3 years; and
       (D) all such terms shall begin on--
       (i) January 1, next following the date of the enactment of 
     this title; or
       (ii) such date as designated by the President.
       (2) A member may continue to serve until a successor is 
     confirmed.
       (3) Members shall be eligible for reappointment for a 
     single additional term.
       (d) Vacancies.--(1) Vacancies in the membership of the 
     Commission shall be filled in the same manner in which the 
     original appointment was made.
       (2) If there are one or more Commission members in office, 
     vacancies in the membership of the Commission shall not 
     impair the power of the Commission to execute functions and 
     powers of the Commission.
       (e) Compensation and Restriction on Other Employment.--(1) 
     The members of the Commission may not engage in any other 
     employment during their tenure as members of the Commission.
       (2) Section 5315 of title 5, United States Code, is amended 
     by adding at the end the following new item:
       ``Members of Privacy Protection Commission (5).''.
       (f) Requests and Recommendations.--(1) Whenever the 
     Commission submits a 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.
       (2) Whenever the Commission submits a legislative 
     recommendation, testimony, or comment on legislation to the 
     President or Office of Management and Budget, it shall 
     concurrently transmit a copy of such recommendation, 
     testimony, or comment to the Congress. No officer or agency 
     of the United States shall have any authority to require the 
     Commission to submit its legislative recommendation, 
     testimony, or comment on legislation, to any officer or 
     agency of the United States for approval, comment, or review, 
     prior to the submission of such recommendation, testimony, or 
     comment to the Congress.
       (g) Seal.--The Commission shall have an official seal which 
     shall be judicially noted.

     SEC. 305. PERSONNEL OF THE COMMISSION.

       (a) Executive Director and General Counsel.--The Commission 
     shall appoint an Executive Director and a General Counsel who 
     shall perform such duties as the Commission determines 
     necessary and appropriate. Such appointment may be made 
     without regard to the provisions of title 5, United States 
     Code. The Executive Director and the General Counsel shall be 
     compensated at a rate not in excess of the rate payable for a 
     position under level V of the Executive Schedule under 
     section 5316 of title 5, United States Code.
       (b) Limitation on Employees.--The Commission is authorized 
     to appoint and fix the compensation of not more than 25 
     officers and employees (or the full-time equivalent), and to 
     prescribe their functions and duties.
       (c) Consultants.--The Commission may obtain the services of 
     experts and consultants in accordance with the provisions of 
     section 3109 of title 5, United States Code.
       (d) Detail of Government Employees.--Any Federal Government 
     employee may be detailed to the Commission without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.

     SEC. 306. FUNCTIONS OF THE COMMISSION.

       (a) In General.--The Commission shall--
       (1) provide leadership and coordination to the efforts of 
     all Federal departments and agencies to enforce all Federal 
     statutes, Executive orders, regulations, and policies that 
     involve privacy or data protection;
       (2) maximize effort, promote efficiency, and eliminate 
     conflict, competition, duplication, and inconsistency among 
     the operations, functions, and jurisdictions of Federal 
     departments and agencies responsible for privacy or data 
     protection, data protection rights and standards, and fair 
     information practices and principles;
       (3) develop model standards, guidelines, regulations, 
     policies, and routine uses for and by Federal, State, and 
     local agencies in implementing the provisions of section 552a 
     of title 5, United States Code;
       (4) publish on a regular basis a guide to sections 552 and 
     552a of title 5, United States Code, and other laws relating 
     to data protection, for use by record subjects;
       (5) publish a compilation of agency system of records 
     notices, including an index and other finding aids;
       (6) not later than December 1, 1996, make recommendations 
     to the Congress regarding any possible amendments to section 
     552a of title 5, United States Code, and for improving the 
     coordination between such section and section 552 of such 
     title;
       (7) provide active leadership, guidance, education, and 
     appropriate assistance to private sector businesses, 
     organizations, groups, institutions, and individuals 
     regarding privacy, data protection rights and standards, and 
     fair information practices and principles;
       (8) develop model privacy, data protection, and fair 
     information practices, principles, standards, guidelines, 
     policies, and routine uses for use by State and local 
     governments and by the private sector; and
       (9) upon written request, provide appropriate assistance in 
     implementing privacy, data protection, and fair information 
     practices, principles, standards, guidelines, policies, or 
     routine uses of privacy and data protection, and fair 
     information.
       (b) Discretionary Functions.--The Commission may--
       (1) issue advisory opinions relating to section 552a of 
     title 5, United States Code, or privacy and data protection 
     practices, principles, standards, guidelines, policies, or 
     routine uses of data at the request of a Federal agency, a 
     data integrity Commission of an agency or business, a court, 
     the Congress, a business, or an individual;
       (2) investigate compliance with section 552a of title 5, 
     United States Code, and report on violations of such section 
     to the appropriate agency, the President, the Attorney 
     General, and the Congress;
       (3) file comments with the Office of Management and Budget 
     and with the appropriate agency on each proposal to--
       (A) amend section 552a of title 5, United States Code, or a 
     regulation promulgated under such section;
       (B) create or modify a system of records; or
       (C) establish or alter routine uses of such a system;
       (4) request an agency to stay--
       (A) the establishment or revision of a system of records;
       (B) a routine use;
       (C) an exemption; or
       (D) any other regulation promulgated under section 552a of 
     title 5, United States Code;
       (5) review Federal, State, and local laws, Executive 
     orders, regulations, directives, and judicial decisions and 
     report on the extent to which they are consistent with 
     privacy and data protection rights, and fair information 
     practices and principles;
       (6) at the request of a Federal, State, or local government 
     agency, a private business, or an individual, provide 
     assistance on matters relating to privacy or data protection;
       (7) comment on the implications for privacy or data 
     protection of proposed Federal, State, or local statutes, 
     regulations, or procedures;
       (8) propose legislation on privacy or data protection;
       (9) accept and investigate complaints about violation of 
     privacy or data protection rights, and fair information 
     practices and principles;
       (10) participate in each formal or informal Federal 
     administrative proceeding or process when, in the judgment of 
     the Commission, the action being considered would have a 
     material effect on privacy or data protection, either as a 
     result of direct Government action or as the result of direct 
     Government regulation of others;
       (11) petition a Federal agency to take action on a matter 
     affecting privacy or data protection;
       (12) conduct, assist, or support research, studies, and 
     investigations on the collection, maintenance, use, or 
     dissemination of personal information, the implications for 
     privacy or data protection of computer, communications, and 
     other technologies, and any other matter relating to privacy 
     or data protection;
       (13) assist in the development or implementation of 
     policies designed to provide for the protection of personal 
     information maintained by private sector recordkeepers;
       (14) assist United States companies doing business abroad 
     to respond to foreign privacy or data protection laws and 
     agencies;
       (15) assist in the coordination of the United States 
     privacy and data protection policies with the privacy and 
     data protection policies of foreign countries; and
       (16) cooperate and consult with privacy or data protection 
     commissions, boards, or agencies of foreign governments.

     SEC. 307. CONFIDENTIALITY OF INFORMATION.

       (a) In General.--Each department, agency, and 
     instrumentality of the executive branch of the Government, 
     including each independent agency, shall furnish to the 
     Commission upon request made by the Chairperson, such data, 
     reports, and other information as the Commission determines 
     necessary to carry out its functions under this title.
       (b) Confidentiality.--In carrying out its functions and 
     exercising its powers under this title, the Commission may 
     accept from any Federal agency or other person, any 
     identifiable personal data if such data is necessary to carry 
     out such powers and functions. In any case in which the 
     Commission accepts any such information, it shall provide all 
     appropriate safeguards to ensure that the confidentiality of 
     such information is maintained and that under completion of 
     the specific purpose for which such information is required, 
     the information is destroyed or returned to the agency or 
     person from which it was obtained.

     SEC. 308. POWERS OF THE COMMISSION.

       (a) In General.--The Commission may, in carrying out its 
     functions under this title--
       (1) conduct inspections;
       (2) sit and act at such times and places as it determines 
     necessary;
       (3) hold hearings;
       (4) take testimony;
       (5) require by subpoena the attendance of witnesses and the 
     production of books, records, papers, correspondence, 
     documents, film, and electronic information;
       (6) administer oaths; and
       (7) make appropriate and necessary expenditures.
       (b) Subpoenas.--(1) Subpoenas shall be issued only upon an 
     affirmative vote of a majority of all members of the 
     Commission. Subpoenas shall be issued under the signature of 
     the Chairperson or any member of the Commission designated by 
     the Chairperson. Any member of the Commission may administer 
     oaths or affirmations to witnesses appearing before the 
     Commission.
       (2) In the case of a disobedience to a subpoena issued 
     under this title, the Commission may invoke the aid of any 
     district court of the United States in requiring compliance 
     with such subpoena. Any district court of the United States 
     within the jurisdiction where such person is found or 
     transacts business may, in the case of contumacy or refusal 
     to obey a subpoena issued by the Commission, issue an order 
     requiring such person to appear and testify, to produce such 
     books, records, papers, correspondence, documents, films, and 
     electronic information. Any failure to obey the order of the 
     court shall be punished by the court as a contempt of such 
     court.
       (c) Appearances.--Appearances by the Commission in judicial 
     and administrative proceedings shall be in its own name.
       (d) Delegation.--The Commission may delegate any of its 
     functions to such officers and employees of the Commission as 
     the Commission may designate and may authorize such 
     successive redelegations of such functions as it may 
     determine desirable.
       (e) Administrative Powers.--To carry out this title, the 
     Commission may--
       (1) enter into contracts or other arrangements with any 
     State or local government, any agency or department of the 
     United States, or with any individual, firm, association, or 
     corporation; and
       (2) establish advisory committees in accordance with the 
     Federal Advisory Committee Act (5 U.S.C. App.).

     SEC. 309. REPORTS AND INFORMATION.

       In an annual report to the President and the Congress, the 
     Commission shall report on its activities in carrying out the 
     provisions of this title. The Commission shall undertake 
     whatever efforts it may determine to be necessary or 
     appropriate to inform and educate the public of data 
     protection, privacy, and fair information rights and 
     responsibilities.

     SEC. 310. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     title--
       (1) $1,500,000 in fiscal year 1995;
       (2) $2,000,000 in fiscal year 1996;
       (3) $2,500,000 in fiscal year 1997; and
       (4) such sums as may be necessary in each succeeding fiscal 
     year thereafter.

       Amend the table of contents accordingly.

  Mr. SIMON. Madam President, I have discussed this with Senator Bryan. 
This is a fairly simple measure in concept. I think we can dispose of 
it rather quickly. I regret it is being resisted for reasons that I 
understand have nothing to do with the amendment itself.
  I ask unanimous consent that we have a time limit of 20 minutes, 10 
minutes on each side.
  The PRESIDING OFFICER. Is there objection?
  Mr. BOND. Reserving the right to object.
  The PRESIDING OFFICER. The Senator from Missouri.
  Mr. BOND. Madam President, we would like to have the short time 
limit. We have a problem of availability of some of our leadership with 
respect to the vote. I might need to ask that the unanimous consent 
request be amended to put the vote back until about 1 o'clock. We would 
have no objection to a 20-minute time limit. I will discuss with my 
colleagues the appropriate time for the vote.
  Mr. SIMON. I think we can work that out. Frankly, the White House has 
a bill-signing ceremony on a bill of which I happen to be the chief 
sponsor. That will take place around 1 o'clock.
  So, if we cannot vote, say, by 12:30, then I would prefer, subject to 
approval of my colleagues, that we put off the vote until 2 or 2:30.
  The PRESIDING OFFICER. Is there objection to the revised request?
  Mr. BOND. May I inquire, is the unanimous consent request that we 
have 10 minutes equally divided? I would have no objection to that.
  The PRESIDING OFFICER. The Chair understands 20 minutes equally 
divided with the vote to be held at 2:30.
  Mr. SIMON. I ask that no second-degree amendments be in order.
  Mr. BRYAN. Madam President, I think what we could do--and I am 
certainly willing to try to accommodate the distinguished Senator from 
Illinois because I recognize his time request. I have been asked by the 
leadership not to agree to a vote at a time certain. I have absolutely 
no problem with 10 minutes either side.
  Let me assure my colleague that we will work to accommodate his 
schedule on the vote. We recognize that he is not available at 1 
o'clock. I think we can work that out. So if we can just have the 
unanimous consent agreement of 10 minutes either side and that there be 
no second degree--I am advised by the floor staff that apparently 
someone has called in and has raised some concerns about the proposed 
unanimous consent request. I apologize to my colleague. He has been 
trying to be helpful, as have I. Perhaps if he can proceed with the 
amendment, then maybe we can work out a time agreement shortly after 
that.
  The PRESIDING OFFICER. Objection is heard. The amendment is before 
the Senate. The Senator from Illinois is recognized.
  Mr. SIMON. Madam President, what this amendment proposes is very 
simple: That we appoint a three-member privacy commission with no more 
than 25 employees, $1.5 million authorization the first year that would 
take a look at the whole question of privacy in our country.
  It is very interesting, as you look at the countries that have 
privacy commissions, 35 countries have privacy commissions right now: 
Australia, Austria, Belgium, Canada, Czech Republic. You go down the 
list. Thirty-five countries. We are the biggest user of this kind of 
information, and we have no privacy commission.
  This simply sets up a commission to advise us on where we are going 
in this field. It is very interesting that the European Community 
apparently is going to make an advisory to corporations in Europe that 
they should be careful in providing computer information to the United 
States because we have no privacy commission and there is no certainty 
that information can be protected.
  The group of people who have endorsed this include the American 
Association of Retired Persons, the Consumer Federation of America, 
National Consumers League, Public Citizen, Consumer Research Institute, 
the American Civil Liberties Union, and the American Library 
Association.
  Very shortly, Madam President, you and I hope we are going to be 
moving to health care reform. That is going to add a great many more 
privacy questions in this country.
  I think it is essential that we have some protection.
  I would add, this is not just Paul Simon's idea. I have a statement 
of November 18 of last year from Sally Katzen, the Administrator of the 
Office of Information and Regulatory Affairs at OMB. Let me just read a 
couple of statements.

  As she says:

       Senator Simon's bill responds to an issue of critical 
     importance, protecting the privacy of individuals in an 
     electronic age. The need to protect individual privacy has 
     become increasingly important as we move forward on two major 
     initiatives: Health care reform and national information 
     infrastructure. The success of these initiatives will depend 
     in large part on the extent to which Americans trust the 
     underlying information systems. Recognizing this concern, the 
     National Performance Review has called for a commission to 
     perform a function similar to that envisioned in Senator 
     Simon's proposal.

  Mr. BRYAN. Will the distinguished Senator from Illinois yield for a 
moment?
  Mr. SIMON. I would be pleased to yield to the Senator from Nevada.
  Mr. BRYAN. I appreciate the Senator's indulgence.
  The Senator's effort which he undertook in good faith I believe we 
are ready to consummate on both sides of the aisle, to agree to a 20-
minute debate, 10 minutes equally divided, with no second-degree 
amendment to follow, and that after the 20 minutes a vote on or with 
respect to the amendment could occur immediately.
  Mr. SIMON. That would put the vote at about 12:10.
  Mr. BRYAN. It would do that.
  Mr. SIMON. I certainly have no objection.
  The PRESIDING OFFICER. Is there objection to the unanimous-consent 
request?
  Mr. BOND. No objection.
  The PRESIDING OFFICER. The Chair hears none, and it is so ordered. 
The Senator from Illinois.
  Mr. BRYAN. I thank the Chair and I thank the Senator from Illinois.
  Mr. SIMON. Basically, that is it, Madam President. It is not a 
complicated issue. We simply have to provide some privacy protection 
for people. We are not doing that adequately. We are behind other 
nations, even though we are ahead in the field, in the use of 
electronics and computers and that sort of thing. I think this makes 
sense. I hope my colleagues will agree. I recognize the jurisdictional 
problem we face in this, but I would ask for the yeas and nays, Madam 
President, at 12:10.
  The PRESIDING OFFICER. Is there a sufficient second?
  There appears to be a sufficient second.
  The yeas and nays are ordered at 12:10.
  Mr. SIMON. I reserve the remainder of my time.
  The PRESIDING OFFICER. The Senator reserves the remainder of his 
time.
  Mr. BRYAN addressed the Chair.
  The PRESIDING OFFICER. The Senator from Nevada.
  Mr. BRYAN. I thank the Chair.
  It is always very difficult for me to resist an amendment offered by 
my able friend and colleague for whom I had such great respect before I 
came to the Chamber and even an enhanced respect for him having had the 
privilege of serving with him and even traveling a bit with him and 
having a chance to get to know him.
  I am forced to oppose this amendment for several reasons. First, this 
is a measure which the distinguished Senator has introduced and is 
currently in Governmental Affairs. It has not had a hearing, and so we 
are really not familiar with the merits. And I do not want to address 
the merits because I do not feel I am in a position to do so because we 
have not had that hearing.
  It is not, as my colleagues know, germane to the legislation with 
which we are dealing.
  And finally, I would appeal to my colleagues who may be listening 
that for the past 3 years and then some the able Senator from Missouri, 
who has been my principal cosponsor, has labored mightily on behalf of 
this legislation; that this is such a delicately crafted piece of 
legislation, if the amendment of our friend, the distinguished senior 
Senator from Illinois, is added to this legislation, it complicates the 
referral process in the House. As the distinguished Presiding Officer 
knows, based upon her experience, the referral would then go outside to 
the Banking Committee and would greatly complicate the prospect of 
passage which we believe, if we can dispose of the other amendments, 
looks reasonably good and reasonably soon.
  I yield the floor.
  Mr. BOND addressed the Chair.
  The PRESIDING OFFICER. The Senator from Missouri.
  Mr. BOND. Madam President, the floor manager on this side has yielded 
me a couple of minutes. I rise just to expand upon what Senator Bryan 
has already said.
  This is, as we know, a very delicately crafted piece of legislation. 
It has been a long time coming. We have worked hard to get to the point 
where we have an opportunity to pass it. I am gravely concerned not 
with the substance of the amendment of my good friend from Illinois but 
what adding it to this bill would do.
  I happen to be the cosponsor, along with the distinguished Senator 
from Michigan [Mr. Riegle], of privacy provisions in the health 
information modernization and security system. We believe this is an 
important part of health care. Privacy provisions exist throughout 
Government agencies as has already been stated.
  There is a measure the Senator from Illinois has which I understand 
has been referred to the Committee on Governmental Affairs. This 
committee should hold hearings on this matter to determine whether a 
statutory commission is necessary. I believe that the administration 
would have the power to appoint by Executive order a commission which 
could provide the study and review. At a time when we are trying to cut 
back on the number of commissions and studies, I think they would want 
to be very careful in the extent to which they get into new commissions 
and new bodies.
  In summary, while I appreciate the interest that the Senator has, 
this is a very important question. Privacy affects all of us. I would 
urge my colleagues not to support this amendment because there will be 
another time and a place for the discussion of the broader privacy 
concerns. We need to protect consumers who have had misinformation put 
into their credit information files. To attempt to deal with privacy 
might endanger that broader goal. Thus, I urge that we not accept the 
amendment.
  Madam President, I yield the floor.
  The PRESIDING OFFICER. Who yields time?
  Mr. SIMON addressed the Chair.
  The PRESIDING OFFICER. The Senator from Illinois.
  Mr. SIMON. Let me say, with all due respect to my two colleagues, I 
think things can get worked out over on the House side.
  We always find a reason not to move ahead. One of the reasons for 
coming directly to the floor is, frankly, there are people who do not 
want any restrictions, who do not want this kind of thing to happen. 
This is not a new idea. The first time this was proposed statutorily 
was 20 years ago this year by Senator Sam Ervin. He wanted a 5-person 
advisory board on privacy.
  That is all this is, an advisory board. It has no jurisdiction over 
any--it cannot move into territory where it does not belong, but it can 
advise agencies how we can secure privacy. It can advise agencies and 
it can advise the private sector.
  I think it is needed. We can work out the House problems on this 
bill. I support the legislation. I wish to see protection. But when my 
friend, and he is my friend, from Nevada said this is not germane, this 
comes much closer to being germane than most amendments we consider on 
the floor of the Senate. We are talking about protecting people in 
their electronic records. That is what this bill is about. That is what 
this amendment is about.
  I hope we can approve the amendment.
  The PRESIDING OFFICER. Who yields time?
  Mr. BRYAN. Madam President, may I inquire how much time is remaining 
under my control?
  The PRESIDING OFFICER. Yes. The Senator from Illinois has 7 minutes 
and 41 seconds remaining, and the Senator from Nevada has 5 minutes and 
37 seconds remaining.
  Mr. BRYAN. I yield myself 2 minutes.
  I say to my friend from Illinois that his concerns about privacy and 
the potential encroachment by an increasingly sophisticated 
technological world in which we live are not misplaced, and I share 
those concerns. Again, I share with him my only concern is the vehicle 
to which he has chosen to add this amendment. He is certainly within 
his rights. I understand there may be others who share a different 
philosophy and perspective and are not interested in moving forward. As 
the Senator knows, the administration has indicated to us that they are 
going to, in the very near future, advance their own view in terms of 
conceptually what should be done with respect to the concept which the 
Senator from Illinois is seeking to incorporate into this legislation. 
I think a further reason for us to act with a measure of restraint is 
to await the administration's proposal so we will know precisely what 
they have to say about this issue.
  I yield the floor.
  The PRESIDING OFFICER. Who yields time?
  Mr. SIMON. Madam President, I will just point out one other thing. We 
have had several Government studies that have recommended precisely 
what this amendment does. The 1972 Advisory Committee on Automated 
Personnel Data, the data systems, Department of Health, Education and 
Welfare, recommended that we set up a privacy commission--1972, 22 
years ago. We are still talking about it now.
  In 1975, the Commission on Federal Paperwork, 19 years ago, 
recommended it. We are still talking about it.
  In 1977, the Privacy Protection Study Commission recommended it. We 
are still talking about it.
  I think the time is here to act. I hope we act favorably.
  If no one seeks the floor, I suggest the absence of a quorum.
  The PRESIDING OFFICER (Mr. Feingold). The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. BRYAN. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. BRYAN. Mr. President, I yield the remainder of the time under my 
control.
  Mr. SIMON. Mr. President, I yield the remainder of my time, and I 
assume that we can then proceed directly to a vote.
  Mr. BRYAN. Mr. President, I move to table the pending Simon 
agreement.
  Mr. BOND. I ask for the yeas and nays.
  The PRESIDING OFFICER. Is there a sufficient second?
  There is a sufficient second.
  The yeas and nays were ordered.
  The PRESIDING OFFICER. The question is on agreeing to the motion of 
the Senator from Nevada to lay on the table the amendment of the 
Senator from Illinois. On this question, the yeas and nays have been 
ordered, and the clerk will call the roll.
  The legislative clerk called the roll.
  Mr. FORD. I announce that the Senator from Florida [Mr. Graham] is 
necessarily absent.
  I also announce that the Senator from Alabama [Mr. Shelby] is absent 
because of illness.
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
who desire to vote?
  The result was announced--yeas 77, nays 21, as follows:

                      [Rollcall Vote No. 99 Leg.]

                                YEAS--77

     Akaka
     Baucus
     Bennett
     Biden
     Bingaman
     Bond
     Boren
     Boxer
     Breaux
     Brown
     Bryan
     Bumpers
     Burns
     Byrd
     Campbell
     Chafee
     Coats
     Cochran
     Cohen
     Conrad
     Coverdell
     Craig
     D'Amato
     Danforth
     DeConcini
     Dole
     Domenici
     Dorgan
     Exon
     Faircloth
     Feingold
     Feinstein
     Ford
     Glenn
     Gorton
     Gramm
     Grassley
     Gregg
     Hatch
     Heflin
     Helms
     Hollings
     Hutchison
     Inouye
     Kassebaum
     Kempthorne
     Kennedy
     Kerrey
     Kerry
     Kohl
     Levin
     Lieberman
     Lott
     Lugar
     Mack
     McCain
     McConnell
     Mikulski
     Mitchell
     Moynihan
     Murkowski
     Murray
     Nickles
     Nunn
     Pressler
     Reid
     Riegle
     Rockefeller
     Roth
     Sarbanes
     Simpson
     Smith
     Specter
     Stevens
     Thurmond
     Wallop
     Warner

                                NAYS--21

     Bradley
     Daschle
     Dodd
     Durenberger
     Harkin
     Hatfield
     Jeffords
     Johnston
     Lautenberg
     Leahy
     Mathews
     Metzenbaum
     Moseley-Braun
     Packwood
     Pell
     Pryor
     Robb
     Sasser
     Simon
     Wellstone
     Wofford

                             NOT VOTING--2

     Graham
     Shelby
       
  So the motion to lay on the table was agreed to.
  Mr. BRYAN. Mr. President, I move to reconsider the vote.
  Mr. DeCONCINI. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. RIEGLE. Mr. President, I again want to congratulate Senators 
Bryan and Bond for their outstanding work on the Consumer Reporting 
Reform Act of 1994. This is one of the most important pieces of 
consumer legislation that the Congress will consider this year and it 
has been my top consumer priority for 1994.
  During my tenure as chairman of the Banking Committee, the Banking 
Committee has taken numerous significant steps to safeguard the public 
interest and consumers. Among them we have strengthened our fair 
lending and community investment laws. We have expanded the Home 
Mortgage Disclosure Act to make data concerning loan applications 
available to the public, strengthened the Community Reinvestment Act to 
disclose both ratings and the data behind those ratings and required 
examiners to refer patterns of mortgage discrimination to the Justice 
Department for further action.
  The Consumer Reporting Reform Act of 1994 continues this line of 
achievement of the Senate Banking, Housing, and Urban Affairs 
Committee. The drafting of the Consumer Reporting Reform Act has been a 
long and difficult process which has taken over 3 years. Numerous 
interests have had to be extremely carefully balanced.
  In addition to the leadership of Senators Bryan and Bond, I want to 
acknowledge the excellent staff work that has been done on this bill. 
While numerous people have had a significant impact on this 
legislation. I want to particularly acknowledge and thank Andy Vermilye 
of Senator Bryan's staff, Maggie Fisher of Senator Bond's staff, Doug 
Nappi of the Banking Committee staff and, of course, Mark Kaufman of my 
own and the committee's staff. They have been simply outstanding.
  Mr. DeCONCINI. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. BRYAN. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                           amendment no. 1672

  Mr. BRYAN. Mr. President, I send an amendment to the desk on behalf 
of Senator Levin and ask for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report the amendment.
  The bill clerk read as follows:

       The Senator from Nevada [Mr. Bryan], for Mr. Levin, 
     proposes an amendment numbered 1672.

  Mr. BRYAN. Mr. President, I ask unanimous consent that reading of the 
amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       At the appropriate place, insert the following:
       It is the sense of the Senate that: (a) individuals should 
     generally be judged for credit worthiness based on their own 
     credit worthiness and not on the zip code or neighborhood in 
     which they live; and (b) the Federal Trade Commission after 
     consultation with the appropriate Federal banking agencies 
     shall report to the Banking Committee within 6 months as to 
     whether and how the location of the residence of an applicant 
     for unsecured credit is considered by many companies and 
     financial institutions in deciding whether an applicant 
     should be granted credit.

  Mr. BRYAN. I would represent to my colleagues this is a sense-of-the-
Senate amendment that has been approved on both sides of the aisle.
  I yield to my distinguished minority floor manager.
  The PRESIDING OFFICER (Mr. Graham). The Senator from Missouri.
  Mr. BOND. This amendment is cleared on our side, and we are ready to 
accept it.
  Mr. LEVIN. Mr. President, the amendment I am offering expresses the 
sense of the Senate that an individual's creditworthiness should be 
judged on his or her own credit history and not on where that 
individual happens to live. The amendment also requests that a report 
be made to the Banking Committee within 6 months on whether and how 
location of the residence of an applicant seeking unsecured credit is 
routinely considered by companies and financial institutions in 
granting credit.
  Mr. President, the stereotyping of consumers based on where they live 
is a social evil with very negative social consequences. The Congress 
has been instrumental in formulating legislation that seeks equal 
credit opportunity for all. If creditworthy persons can be rejected on 
account of his or her place of residence, our work is incomplete.
  When people in a neighborhood or other geographical area are told 
that the place where they live is the reason or a reason for their 
being denied credit, that neighborhood or that other geographical area 
is hurt as well as the people living it.
  Mr. President, credit applicants should be considered on the basis of 
their individualized creditworthiness and not on the basis of spurious 
statistical correlations which some companies have decided to utilize 
as part of a point system in establishing whether or not someone gets 
credit. The resulting stereotyping and generalizing about certain 
regions of the country and particular neighborhoods contribute to a 
vicious cycle which adds to further decay of our cities and 
communities.
  Mr. President, I understand the Banking Committee has no objection to 
this amendment. I ask unanimous consent that the text of my amendment 
be printed following my remarks. The amendment is as follows:

       It is the sense of the Senate that: (a) individuals should 
     generally be judged for credit worthiness based on their own 
     credit worthiness and not on the zip code or neighborhood in 
     which they live; and (b) the Federal Trade Commission, after 
     consultation with the appropriate Federal banking agencies, 
     shall report to the Banking Committee within 6 months as to 
     whether and how the location of the residence of an applicant 
     for unsecured credit is considered by many companies and 
     financial institutions in deciding whether an applicant 
     should be granted credit.

  The PRESIDING OFFICER. Is there further debate? Is there objection to 
adoption of the amendment? Without objection, the amendment is agreed 
to.
  So the amendment (No. 1672) was agreed to.
  Mr. BRYAN. Mr. President, I move to reconsider the vote.
  Mr. BOND. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.


                           Amendment No. 1673

               (Purpose: To make a series of amendments)

  Mr. BRYAN. Mr. President, I send to the desk a series of technical 
amendments on behalf of Senator Riegle, Senator Bond, and myself and 
ask for its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The bill clerk read as follows:

       The Senator from Nevada [Mr. Bryan], for Mr. Riegle, for 
     himself, Mr. Bryan, and Mr. Bond, proposes an amendment 
     numbered 1673.

  Mr. BRYAN. Mr. President, I ask unanimous consent that reading of the 
amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

       On page 71, strike lines 1 through 13 and insert the 
     following:
       (1) in subparagraph (A)--
       (A) by inserting ``(i)'' after ``(A)''; and
       (B) by inserting before the semicolon at the end the 
     following: ``; (ii) any communication of that information 
     among persons related by common ownership or affiliated by 
     corporate control; or (iii) any communication of information 
     from a credit application by a consumer among persons related 
     by common ownership or affiliated by common corporate 
     control, if (I) it is clearly and conspicuously disclosed to 
     the consumer with the credit application that the information 
     may be communicated among such persons; and (II) the consumer 
     is provided with the option to prohibit such communication 
     (in writing, using a signature line that is separate and 
     distinct from that used for the consumer's consent to the 
     extension of credit) and does not exercise such option'';
       On page 73, between lines 8 and 9, insert the following new 
     subsection:
       (e) Exclusion of Certain Communications by Employment 
     Agencies From Definition of Consumer Report.--Section 603 of 
     the Fair Credit Reporting Act (15 U.S.C. 1681(a)), as amended 
     by subsections (a) through (d), is amended--
       (1) in subsection (d), by adding at the end the following 
     new sentence: ``The term also does not include a 
     communication described in subsection (n).''; and
       (2) by adding at the end the following:
       ``(n) Communications by Employment Agencies Excluded From 
     Definition of Consumer Report.-- For purposes of subsection 
     (d), a communication is described in this subsection if it 
     is a communication--
       ``(1) that, but for the third sentence of subsection (d), 
     would be an investigative consumer report;
       ``(2) that is made to a prospective employer for the 
     purpose of--
       ``(A) procuring an employee for the employer; or
       ``(B) procuring an opportunity for a natural person to work 
     for the employer;
       ``(3) that is made by a person that regularly performs such 
     procurement;
       ``(4) that is not used by any person for any purpose other 
     than a purpose described in subparagraph (A) or (B) of 
     paragraph (2);
       ``(5) with respect to which--
       ``(A) the consumer who is the subject of the 
     communication--
       ``(i) consents orally or in writing to the nature and scope 
     of the communication, before the collection of any 
     information for the purpose of making the communication;
       ``(ii) consents orally or in writing to the making of the 
     communication to a prospective employer, before the making of 
     the communication; and
       ``(iii) in the case of consent under clause (i) or (ii) 
     given orally, is provided written confirmation of that 
     consent by the person making the communication, not later 
     than 3 business days after the receipt of the consent by that 
     person;
       ``(B) the person making the communication does not, for the 
     purpose of making the communication, make any inquiry that if 
     made by a prospective employer of the consumer who is the 
     subject of the communication would violate any applicable 
     Federal or State equal employment opportunity law or 
     regulation; and
       ``(C) the person making the communication--
       ``(i) discloses in writing to the consumer who is the 
     subject of the communication, not later than 5 business days 
     after receiving any request from the consumer for such 
     disclosure, the nature and substance of all information in 
     the consumer's file at the time of the request, except that 
     the sources of information that is acquired solely for use 
     in making the communication and actually used for no other 
     purpose need not be disclosed other than under appropriate 
     discovery procedures in the court in which an action is 
     brought; and
       ``(ii) notifies the consumer who is the subject of the 
     communication, in writing, of the consumer's right to request 
     the information described in clause (i).''.
       On page 107, line 10, insert ``and'' after the semicolon.
       On page 107, line 22, strike ``; and'' and insert a period.
       Beginning on page 107, strike line 23 and all that follows 
     through the first period on page 108, line 2.
       On page 130, line 20, strike ``charge or''.
       At page 117, line 1, delete ``Duty'' and all that follows 
     through the end of line 8 and insert the following in lieu 
     thereof:
       ``Duty to provide notice of delinquency of accounts.--A 
     person who furnishes information to a consumer reporting 
     agency regarding a delinquent account being placed for 
     collection, charged to profit or loss, or subjected to any 
     similar action shall, by not later than 90 days after 
     furnishing the information, notify the agency of the month 
     and year of the commencement of the delinquency which 
     immediately preceded the action.''.

  Mr. BRYAN. Mr. President, this is a series of technical amendments 
which we have worked out with my distinguished colleague from Missouri 
and the chairman of the committee. I do not believe there is any 
objection.
  Mr. BOND. Mr. President, I wish to express once again my thanks to 
the Senator from Nevada for the efficient and effective way that he and 
his staff have helped guide this bill. The technical amendments now I 
believe take care of a number of questions that have been raised. I 
believe these are all good amendments. We have no objection on this 
side, and we are ready to accept them.
  The PRESIDING OFFICER. Is there further debate? Is there objection to 
the adoption of the amendment? Without objection, the amendment is 
agreed to.
  So the amendment (No. 1673) was agreed to.
  Mr. BRYAN. Mr. President, I move to reconsider the vote.
  Mr. BOND. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. BRYAN. Mr. President, there are no further amendments pending, to 
the best of my knowledge. Let me again say, as I said earlier in the 
week, that my friend, with whom I have had a relationship dating back 
to the days when the distinguished occupant of the chair and the two of 
the floor managers served in a different capacity in our respective 
States, Senator Bond has been extraordinarily helpful, and I think that 
everyone needs to know that we would not be in the position we are now 
awaiting third reading and final passage but for his leadership. I wish 
to acknowledge personally and publicly that I am profoundly grateful to 
him and his staff and the consumers of America and the business 
community that are very much a part of this transaction should be 
deeply indebted to him for his leadership.
  Mr. BOND. Mr. President, I could say the same and even more about 
Senator Bryan for his leadership on this issue. As we have seen in 
previous efforts to pass this measure, it is very complicated. It 
requires a great deal of balancing of interests. Consumers' rights must 
be protected, and we must have the access to full, fair, and timely 
information on credit so that much of the consumer credit operations, 
whether they be cars, homes or other kinds of lending activities, can 
go forward in this country.
  I believe the bill as it now stands reflects a workable compromise 
that will move us forward significantly. I believe consumers stand the 
most to benefit and they will gain from having a much greater assurance 
that their credit will not be destroyed because of inaccurate or 
improper information put in their files. And for that they have the 
Senator from Nevada to thank for his great leadership on this bill.
  I do not believe, as the Senator said, that there are more amendments 
to be offered on this bill. I take this opportunity to urge all of my 
colleagues to vote for the bill, and we will set the time for the vote. 
I hope the House would be able to accept this bill. We think the time 
has come to pass reforms to the Fair Credit Reporting Act.
  I express my appreciation first to Senator Bryan but also to a number 
of colleagues who have worked with us who have brought to us a number 
of concerns with the bill. Chairman Riegle and Senator D'Amato deserve 
our great thanks. Senators Helms, Faircloth, Coverdell, and Bennett on 
our side have offered constructive suggestions which we have 
incorporated. I believe they make this a very good bill. I hope we will 
see it passed by a significant margin.
  Mr. BRYAN. Mr. President, I thank the distinguished Senator from 
Missouri.


                            civil penalties

  Mr. RIEGLE. Mr. President, our amendment to sections 621(a) and 
621(d)(1)(D) of S. 783 would preclude the Federal Trade Commission and 
the States from obtaining civil penalties for initial violations of 
section 622(a)(1) relating to the reporting of information by creditors 
to consumer report agencies. My question is if a creditor is found 
liable for violation of section 622(a)(1) by either the Commission or 
the States, and has been put under order, is it the intent of your 
amendment to preclude the Commission and States from seeking civil 
penalties for violations of Commission or State orders prohibit such 
conduct in the future?
  Mr. BRYAN. No. While a creditor would be immune from civil penalties 
for initial violations of section 622(a)(1), it would continue to be 
subject to civil penalties for violation of Federal Trade Commission or 
State orders, even if the same conduct would also constitute a 
violation of section 622(a)(1). The limitation in the amendment only 
addresses statutory violations, not order violations which are a 
separate matter. It is critical that the Commission and States be able 
to vindicate their authority by sanctioning violations of their orders. 
Therefore, the prohibition on seeking civil penalties is clearly 
limited to violators of section 622(a)(1) who are not also under 
Commission or State order.


                              prescreening

  Mr. BRYAN. Mr. President, one of the most important issues in S. 783 
deals with the process of prescreening. I am conscious of the needs to 
balance privacy concerns created by prescreening with the benefit of a 
firm offer of credit to consumers. In our effort to protect privacy, I 
recognize that the safety and soundness of financial institutions rests 
on their ability to efficiently obtain sufficient information to make 
intelligent credit decisions.
  The statutory language of section 103 makes it clear that information 
not identified or identifiable to an individual consumer may be 
provided by a credit reporting agency. Such information should not 
include the credit payment history, credit limit or credit balance of 
any consumer with any identified creditor or other information that 
identifies the consumer's relationship and experience with an 
identified creditor. It is important, however, to unsecured and secured 
creditors alike, that numerical or other predictors of creditworthiness 
or other information bearing on the creditworthiness that do not 
identify the consumer's relationship and experience with any particular 
creditor be available to the creditor.
  All of us here know the bill is a compromise between many parties. We 
have carefully crafted a sunset of Federal preemption in order to 
balance industry needs for uniformity with the States' interest in 
protecting their citizens. In the prescreening area, I note that 
prescreening operates pursuant to long-standing Federal law and Federal 
agency interpretation. When State contemplate FCRA legislative actions 
in future years, they should recognize the inherent federal basis of 
prescreening and that Congress intends for prescreening to be allowed 
as provided for in this bill.
  The PRESIDING OFFICER. If there is no further debate, under the 
previous order, the committee substitute is incorporated in the bill, 
and the bill will be read as such for the third time.
  So the committee substitute, as amended, was agreed to and the bill 
was ordered to be engrossed for a third reading and was read the third 
time.
  Mr. BRYAN addressed the Chair.
  The PRESIDING OFFICER. The Senator from Nevada.
  Mr. BRYAN. I now ask unanimous consent that the vote on final passage 
occur at the hour of 2:30 p.m. today, without intervening action, 
notwithstanding rule 12, paragraph 4.
  The PRESIDING OFFICER. Is there objection? Without objection, it is 
so ordered.
  Mr. BRYAN. I now ask for the yeas and nays on final passage.
  The PRESIDING OFFICER. Is there a sufficient second?
  There is a sufficient second.
  The yeas and nays were ordered.

                          ____________________