[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]

 
                          AMENDMENTS SUBMITTED

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                 CONSUMER REPORTING REFORM ACT OF 1994

                                 ______


                        SIMON AMENDMENT NO. 1671

  Mr. SIMON proposed an amendment to the bill (S. 783) to amend the 
Fair Credit Reporting Act, and for other purposes; 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.

                                 ______


                        LEVIN AMENDMENT NO. 1672

  Mr. BRYAN (for Mr. Levin) proposed an amendment to the bill S. 783, 
supra; 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 agency 
     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.
                                 ______


                 RIEGLE (AND OTHERS) AMENDMENT NO. 1673

  Mr. Bryan (for Mr. Riegle for himself, Mr. Bryan, and Mr. Bond) 
proposed an amendment to the bill S. 783, supra; 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 semi-colon.
       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.''.

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