[Congressional Record Volume 144, Number 139 (Wednesday, October 7, 1998)]
[Senate]
[Pages S11716-S11794]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                          AMENDMENTS SUBMITTED

                                 ______
                                 

                        INTERNET TAX FREEDOM ACT

                                 ______
                                 

                    GRAHAM AMENDMENTS NOS. 3750-3751

  (Ordered to lie on the table.)
  Mr. GRAHAM submitted two amendments intended to be proposed by him to 
amendment No. 3722 submitted by Mr. McCain to the bill (S. 442) to 
establish a national policy against State and local government 
interference with interstate commerce on the Internet or interactive 
computer services, and to exercise Congressional jurisdiction over 
interstate commerce by establishing a moratorium on the imposition of 
exactions that would interfere with the free flow of commerce via the 
Internet, and for other purposes; as follows:

                           Amendment No. 3750

       On page 2, line 4, strike ``and'' and insert the following:
       ``(E) an examination of the effects of taxation including 
     the absence of taxation, on all interstate sales 
     transactions, including transactions using the Internet, on 
     local retail businesses and on State and local governments, 
     which examination may include a review of the efforts of 
     State and local governments to collect sales and use taxes 
     owned on in-State purchases from out-of-State sellers; and''.
                                  ____


                           Amendment No. 3751

       On page 2, line 4, strike ``and'' and insert the following:
       ``(E) with respect to electronic commerce, an examination 
     of the efforts of State and local governments to collect 
     sales and use taxes owned on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, the likely impact of such 
     collections on local retail sales, and the level of contacts 
     sufficient to permit a State or local government to impose an 
     obligation to collect such taxes on such interstate sellers; 
     and''.
                                 ______
                                 

                       GRAHAM AMENDMENT NO. 3752

  (Ordered to lie on the table.)
  Mr. GRAHAM submitted an amendment intended to be proposed by him to 
amendment No. 3720 submitted by Mr. McCain to the bill, S. 442, supra; 
as follows:

       On page 1, line 8, strike ``, assessed or'' and insert 
     ``and''.
                                 ______
                                 

                       GRAHAM AMENDMENT NO. 3753

  (Ordered to lie on the table.)
  Mr. GRAHAM submitted an amendment intended to be proposed by him to 
amendment No. 3716 submitted by Mr. McCain to the bill, S. 442, supra; 
as follows:

       On page 1, line 1, strike ``4'' and insert ``3''.
                                 ______
                                 

                       GRAHAM AMENDMENT NO. 3754

  (Ordered to lie on the table.)
  Mr. GRAHAM submitted an amendment intended to be proposed by him to 
amendment No. 3715 submitted by Mr. McCain to the bill, S. 442, supra; 
as follows:

       On page 1, line 1, strike ``6'' and insert ``3''.
                                 ______
                                 

                        GRHAM AMENDMENT NO. 3755

  (Ordered to lie on the table.)
  Mr. GRAHAM submitted an amendment intended to be proposed by him to 
amendment No. 3714 submitted by Mr. McCain to the bill, S. 442, supra; 
as follows:

        On Page 1, line 1, strike ``5'' and insert ``3''.
                                 ______
                                 

                    GRAHAM AMENDMENTS NOS. 3756-3758

  (Ordered to lie on the table.)
  Mr. GRAHAM submitted three amendments intended to be proposed by him 
to amendment No. 3711 submitted by Mr. McCain to the bill, S. 442, 
supra; as follows:

                           Amendment No. 3756

       On page 3, line 4, strike ``; or'' and all that follows 
     through line 23, and insert a period.
                                  ____


                           Amendment No. 3758

       On page 2, strike lines 16 through 22.
                                  ____

       Amendment No. 3757
       On page 2, line 19, insert ``billing,'' after 
     ``business,''.
                                 ______
                                 

                BENNETT (AND OTHERS) AMENDMENT NO. 3759

  (Ordered to lie on the table.)
  Mr. BENNETT (for himself, Mr. Kerrey, Ms. Landrieu, and Mr. McCain) 
submitted an amendment intended to be proposed by them to the bill, S. 
442, supra; as follows:

       Beginning on page ____, line ____, strike all through page 
     ____, line ____, and insert:

     SEC. 101. MORATORIUM.

       (a) Moratorium.--No State or political subdivision thereof 
     shall impose any of the following taxes on transactions 
     occurring during the period beginning on July 29, 1998, and 
     ending 3 years after the date of the enactment of this Act:
       (1) Taxes on Internet access.
       (2) Bit taxes.
       (3) Multiple or discriminatory taxes on electronic 
     commerce.
       (b) Application of Moratorium.--Subsection (a) shall not 
     apply with respect to the provision of Internet access that 
     is offered for sale as part of a package of services that 
     includes services other than Internet access, unless the 
     service provider separately states that portion of the 
     billing that applies to such services on the user's bill.

     SEC. 102. ADVISORY COMMISSION ON ELECTRONIC COMMERCE.

       (a) Establishment of Commission.--There is established a 
     commission to be known as the Advisory Commission on 
     Electronic Commerce (in this title referred to as the 
     ``Commission''). The Commission shall--
       (1) be composed of 16 members appointed in accordance with 
     subsection (b), including the chairperson who shall be 
     selected by the members of the Commission from among 
     themselves; and
       (2) conduct its business in accordance with the provisions 
     of this title.
       (b) Membership.--
       (1) In general.--The Commissioners shall serve for the life 
     of the Commission. The membership of the Commission shall be 
     as follows:
       (A) Four representatives from the Federal Government 
     comprised of the Secretary of Commerce, the Secretary of 
     State, the Secretary of the Treasury, and the United States 
     Trade Representative, or their respective representatives.
       (B) Six representatives from State and local governments 
     comprised of--
       (i) two representatives appointed by the Majority Leader of 
     the Senate;
       (ii) one representative appointed by the Minority Leader of 
     the Senate;
       (iii) two representatives appointed by the Speaker of the 
     House of Representatives; and
       (iv) one representative appointed by the Minority Leader of 
     the House of Representatives.
       (C) Six representatives of the electronic industry and 
     consumer groups comprised of--
       (i) two representatives appointed by the Majority Leader of 
     the Senate;
       (ii) one representative appointed by the Minority Leader of 
     the Senate;
       (iii) two representatives appointed by the Speaker of the 
     House of Representatives; and
       (iv) one representative appointed by the Minority Leader of 
     the House of Representatives.
       (2) Appointments.--Appointments to the Commission shall be 
     made not later than 45 days after the date of the enactment 
     of this Act. The chairperson shall be selected not later than 
     60 days after the date of the enactment of this Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.

[[Page S11717]]

       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 2 years after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Nine members of the Commission shall 
     constitute a quorum for conducting the business of the 
     Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 2 years after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.
                                 ______
                                 

               HUTCHINSON (AND OTHERS) AMENDMENT NO. 3760

  Mr. HUTCHINSON (for himself, Mr. Enzi, and Mr. Graham) proposed an 
amendment to the bill, S. 442, supra; as follows:
                                  ____

       At the end of the McCain amendment, add the following:
       (F) an examination of the effects of taxation, including 
     the absence of taxation, on all interstate sales 
     transactions, including transactions using the Internet, on 
     local retail businesses and on State and local governments, 
     which examination may include a review of the efforts of 
     State and local governments to collect sales and use taxes 
     owed on in-State purchases from out-of-State sellers.
                                 ______
                                 

                    GRAMM AMENDMENTS NOS. 3761-3770

  (Ordered to lie on the table.)
  Mr. GRAMM submitted 10 amendments intended to be proposed by him to 
the bill, S. 442, supra; as follows:

                           Amendment No. 3761

       Strike ``days after the date of the enactment of this Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 18 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Nine members of the Commission shall 
     constitute a quorum for conducting the business of the 
     Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless

[[Page S11718]]

     agreed to by at least two-thirds of the members of the 
     Commission serving at the time the finding or recommendation 
     is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or such political subdivision on 
     transactions involving the same or similar property, goods, 
     services, or information accomplished through other means, 
     unless the rate is lower as part of a phase-out of the tax 
     over not more than a 5-year period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property, goods, services, or information, 
     whether or not for consideration, and includes the provision 
     of Internet access.
       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State or political subdivision thereof 
     on the same or essentially the same electronic commerce that 
     is also subject to another tax imposed by another State or 
     political subdivision thereof (whether or not at the same 
     rate or on the same basis), without a credit (for example, a 
     resale exemption certificate) for taxes paid in other 
     jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.
       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C. 153(46)) and includes communications services (as 
     defined in section 4251 of the Internal Revenue Code of 
     1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.-- It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements to remove barriers to global electronic commerce 
     through the World Trade Organization, the Organization for 
     Economic Cooperation and Development, the Trans-Atlantic 
     Economic Partnership, the Asia Pacific Economic Cooperation 
     forum, the Free Trade Area of the America, the North American 
     Free Trade Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;
       (B) the procurement of telecommunications equipment;
       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an

[[Page S11719]]

     agency, when it expects to receive electronically 50,000 or 
     more submittals of a particular form, shall take all steps 
     necessary to ensure that multiple formats of electronic 
     signatures are made available for submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use to permit employer electronic 
     storage and filing of forms containing information pertaining 
     to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--the term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of or visitors 
     to such website or online service, or on whose behalf such 
     information is collected or maintained, where such website or 
     online service is operated for commercial purposes, including 
     any person offering products or services for sale through 
     that website or online service, involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--
       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;
       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection use, and disclosure 
     described in the notice, to ensure that a parent of a child 
     receives notice of the operator's personal information 
     collection, use, and disclosure practices, and authorizes the 
     collection, use, and disclosure, as applicable, of personal 
     information and the subsequent use of that information before 
     that information is collected from that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) A commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or online service directed to 
     children by using information location tools, including a 
     directory, index, reference, pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (A) Acts Prohibited.--
       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the

[[Page S11720]]

     Commission shall promulgate under section 553 of title 5, 
     United States Code, regulations that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;
       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online collection, of personal information from that 
     child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.
       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--
       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator uses reasonable efforts 
     to provide a parent notice of the online contact information 
     collected from the child, the purposes for which it is to be 
     used, and an opportunity for the parent to request that the 
     operator make no further use of the information and that it 
     not be maintained in retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and
       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website or an online service to terminate 
     service provided to a child whose parent has refused, under 
     the regulations prescribed under paragraph (1)(B)(ii), to 
     permit the operator's further use or maintenance in 
     retrievable form, or future online collection, of personal 
     information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under section 203(b) by following a set 
     of self-regulatory guidelines, issued by representatives of 
     the marketing or online industries, or by other persons, 
     approved under subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon 
     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.
       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--

[[Page S11721]]

       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under this title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations initially issued under section 203, 
     the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or
       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.''.
                                  ____


                           Amendment No. 3762

       Strike ``days after the date of the enactment of this Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 18 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Nine members of the Commission shall 
     constitute a quorum for conducting the business of the 
     Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or

[[Page S11722]]

     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or such political subdivision on 
     transactions involving the same or similar property, goods, 
     services, or information accomplished through other means, 
     unless the rate is lower as part of a phase-out of the tax 
     over not more than a 5-year period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property, goods, services, or information, 
     whether or not for consideration, and includes the provision 
     of Internet access.
       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State or political subdivision thereof 
     on the same or essentially the same electronic commerce that 
     is also subject to another tax imposed by another State or 
     political subdivision thereof (whether or not at the same 
     rate or on the same basis), without a credit (for example, a 
     resale exemption certificate) for taxes paid in other 
     jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.
       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C. 153(46)) and includes communications services (as 
     defined in section 4251 of the Internal Revenue Code of 
     1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.-- It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements to remove barriers to global electronic commerce 
     through the World Trade Organization, the Organization for 
     Economic Cooperation and Development, the Trans-Atlantic 
     Economic Partnership, the Asia Pacific Economic Cooperation 
     forum, the Free Trade Area of the America, the North American 
     Free Trade Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;
       (B) the procurement of telecommunications equipment;
       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an agency, when it expects to receive 
     electronically 50,000 or more submittals of a particular 
     form, shall take all steps necessary to ensure that multiple 
     formats of electronic signatures are made available for 
     submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the

[[Page S11723]]

     Clinger-Cohen Act of 1996 (P.L. 104-106), and the provisions 
     of this Act, the Director of the Office of Management and 
     Budget shall develop procedures and guidelines for executive 
     agency use to permit employer electronic storage and filing 
     of forms containing information pertaining to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--the term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of or visitors 
     to such website or online service, or on whose behalf such 
     information is collected or maintained, where such website or 
     online service is operated for commercial purposes, including 
     any person offering products or services for sale through 
     that website or online service, involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--
       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;
       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection use, and disclosure 
     described in the notice, to ensure that a parent of a child 
     receives notice of the operator's personal information 
     collection, use, and disclosure practices, and authorizes the 
     collection, use, and disclosure, as applicable, of personal 
     information and the subsequent use of that information before 
     that information is collected from that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) A commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or online service directed to 
     children by using information location tools, including a 
     directory, index, reference, pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (A) Acts Prohibited.--
       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Commission shall promulgate 
     under section 553 of title 5, United States Code, regulations 
     that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;

[[Page S11724]]

       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online collection, of personal information from that 
     child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.
       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--
       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator uses reasonable efforts 
     to provide a parent notice of the online contact information 
     collected from the child, the purposes for which it is to be 
     used, and an opportunity for the parent to request that the 
     operator make no further use of the information and that it 
     not be maintained in retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and
       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website or an online service to terminate 
     service provided to a child whose parent has refused, under 
     the regulations prescribed under paragraph (1)(B)(ii), to 
     permit the operator's further use or maintenance in 
     retrievable form, or future online collection, of personal 
     information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under section 203(b) by following a set 
     of self-regulatory guidelines, issued by representatives of 
     the marketing or online industries, or by other persons, 
     approved under subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon 
     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.
       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and

[[Page S11725]]

     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under this title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations initially issued under section 203, 
     the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or
       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.''.
                                  ____


                           Amendment No. 3763

       Strike ``days after the date of the enactment of this Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 18 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Nine members of the Commission shall 
     constitute a quorum for conducting the business of the 
     Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or such political subdivision on 
     transactions involving the same or similar property, goods, 
     services, or information accomplished through other means, 
     unless the rate is lower as part of a phase-out of the tax 
     over not more than a 5-year period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property,

[[Page S11726]]

     goods, services, or information, whether or not for 
     consideration, and includes the provision of Internet access.
       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State or political subdivision thereof 
     on the same or essentially the same electronic commerce that 
     is also subject to another tax imposed by another State or 
     political subdivision thereof (whether or not at the same 
     rate or on the same basis), without a credit (for example, a 
     resale exemption certificate) for taxes paid in other 
     jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.
       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C. 153(46)) and includes communications services (as 
     defined in section 4251 of the Internal Revenue Code of 
     1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.-- It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements to remove barriers to global electronic commerce 
     through the World Trade Organization, the Organization for 
     Economic Cooperation and Development, the Trans-Atlantic 
     Economic Partnership, the Asia Pacific Economic Cooperation 
     forum, the Free Trade Area of the America, the North American 
     Free Trade Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;
       (B) the procurement of telecommunications equipment;
       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an agency, when it expects to receive 
     electronically 50,000 or more submittals of a particular 
     form, shall take all steps necessary to ensure that multiple 
     formats of electronic signatures are made available for 
     submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use to permit employer electronic 
     storage and filing of forms containing information pertaining 
     to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security

[[Page S11727]]

     and authenticity of transactions due to the use of electronic 
     signatures pursuant to this Act, and shall report the 
     findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--the term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of or visitors 
     to such website or online service, or on whose behalf such 
     information is collected or maintained, where such website or 
     online service is operated for commercial purposes, including 
     any person offering products or services for sale through 
     that website or online service, involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--
       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;
       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection use, and disclosure 
     described in the notice, to ensure that a parent of a child 
     receives notice of the operator's personal information 
     collection, use, and disclosure practices, and authorizes the 
     collection, use, and disclosure, as applicable, of personal 
     information and the subsequent use of that information before 
     that information is collected from that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) A commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or online service directed to 
     children by using information location tools, including a 
     directory, index, reference, pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (A) Acts Prohibited.--
       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Commission shall promulgate 
     under section 553 of title 5, United States Code, regulations 
     that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;
       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online collection, of personal information from that 
     child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.

[[Page S11728]]

       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--
       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator uses reasonable efforts 
     to provide a parent notice of the online contact information 
     collected from the child, the purposes for which it is to be 
     used, and an opportunity for the parent to request that the 
     operator make no further use of the information and that it 
     not be maintained in retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and
       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website or an online service to terminate 
     service provided to a child whose parent has refused, under 
     the regulations prescribed under paragraph (1)(B)(ii), to 
     permit the operator's further use or maintenance in 
     retrievable form, or future online collection, of personal 
     information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under section 203(b) by following a set 
     of self-regulatory guidelines, issued by representatives of 
     the marketing or online industries, or by other persons, 
     approved under subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon 
     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.
       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;

[[Page S11729]]

       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under this title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations initially issued under section 203, 
     the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or
       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.'', and insert in lieu thereof: 
     ``days after the date of the enactment of this Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 18 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Nine members of the Commission shall 
     constitute a quorum for conducting the business of the 
     Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 17 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed''.
                                  ____


                           Amendment No. 3764

       Strike ``days after the date of the enactment of this Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 18 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Nine members of the Commission shall 
     constitute a quorum for conducting the business of the 
     Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.

[[Page S11730]]

       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or such political subdivision on 
     transactions involving the same or similar property, goods, 
     services, or information accomplished through other means, 
     unless the rate is lower as part of a phase-out of the tax 
     over not more than a 5-year period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property, goods, services, or information, 
     whether or not for consideration, and includes the provision 
     of Internet access.
       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State or political subdivision thereof 
     on the same or essentially the same electronic commerce that 
     is also subject to another tax imposed by another State or 
     political subdivision thereof (whether or not at the same 
     rate or on the same basis), without a credit (for example, a 
     resale exemption certificate) for taxes paid in other 
     jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.
       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C. 153(46)) and includes communications services (as 
     defined in section 4251 of the Internal Revenue Code of 
     1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.-- It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements to remove barriers to global electronic commerce 
     through the World Trade Organization, the Organization for 
     Economic Cooperation and Development, the Trans-Atlantic 
     Economic Partnership, the Asia Pacific Economic Cooperation 
     forum, the Free Trade Area of the America, the North American 
     Free Trade Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;

[[Page S11731]]

       (B) the procurement of telecommunications equipment;
       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an agency, when it expects to receive 
     electronically 50,000 or more submittals of a particular 
     form, shall take all steps necessary to ensure that multiple 
     formats of electronic signatures are made available for 
     submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use to permit employer electronic 
     storage and filing of forms containing information pertaining 
     to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--the term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of or visitors 
     to such website or online service, or on whose behalf such 
     information is collected or maintained, where such website or 
     online service is operated for commercial purposes, including 
     any person offering products or services for sale through 
     that website or online service, involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--
       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;
       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection

[[Page S11732]]

     use, and disclosure described in the notice, to ensure that a 
     parent of a child receives notice of the operator's personal 
     information collection, use, and disclosure practices, and 
     authorizes the collection, use, and disclosure, as 
     applicable, of personal information and the subsequent use of 
     that information before that information is collected from 
     that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) A commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or online service directed to 
     children by using information location tools, including a 
     directory, index, reference, pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (A) Acts Prohibited.--
       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Commission shall promulgate 
     under section 553 of title 5, United States Code, regulations 
     that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;
       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online collection, of personal information from that 
     child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.
       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--
       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator uses reasonable efforts 
     to provide a parent notice of the online contact information 
     collected from the child, the purposes for which it is to be 
     used, and an opportunity for the parent to request that the 
     operator make no further use of the information and that it 
     not be maintained in retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and
       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website or an online service to terminate 
     service provided to a child whose parent has refused, under 
     the regulations prescribed under paragraph (1)(B)(ii), to 
     permit the operator's further use or maintenance in 
     retrievable form, or future online collection, of personal 
     information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under section 203(b) by following a set 
     of self-regulatory guidelines, issued by representatives of 
     the marketing or online industries, or by other persons, 
     approved under subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon 
     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of

[[Page S11733]]

     the State involved shall provide to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.
       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under this title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations initially issued under section 203, 
     the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or
       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.'', and insert in lieu 
     thereof: ``days after the date of the enactment of this 
     Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 18 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Nine members of the Commission shall 
     constitute a quorum for conducting the business of the 
     Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 18 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for

[[Page S11734]]

     taxes imposed under section 4251 of the Internal Revenue Code 
     of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or such political subdivision on 
     transactions involving the same or similar property, goods, 
     services, or information accomplished through other means, 
     unless the rate is lower as part of a phase-out of the tax 
     over not more than a 5-year period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property, goods, services, or information, 
     whether or not for consideration, and includes the provision 
     of Internet access.
       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State or political subdivision thereof 
     on the same or essentially the same electronic commerce that 
     is also subject to another tax imposed by another State or 
     political subdivision thereof (whether or not at the same 
     rate or on the same basis), without a credit (for example, a 
     resale exemption certificate) for taxes paid in other 
     jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.
       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C. 153(46)) and includes communications services (as 
     defined in section 4251 of the Internal Revenue Code of 
     1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.-- It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements to remove barriers to global electronic commerce 
     through the World Trade Organization, the Organization for 
     Economic Cooperation and Development, the Trans-Atlantic 
     Economic Partnership, the Asia Pacific Economic Cooperation 
     forum, the Free Trade Area of the America, the North American 
     Free Trade Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;
       (B) the procurement of telecommunications equipment;
       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

[[Page S11735]]

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an agency, when it expects to receive 
     electronically 50,000 or more submittals of a particular 
     form, shall take all steps necessary to ensure that multiple 
     formats of electronic signatures are made available for 
     submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use to permit employer electronic 
     storage and filing of forms containing information pertaining 
     to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--the term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of or visitors 
     to such website or online service, or on whose behalf such 
     information is collected or maintained, where such website or 
     online service is operated for commercial purposes, including 
     any person offering products or services for sale through 
     that website or online service, involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--
       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;
       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection use, and disclosure 
     described in the notice, to ensure that a parent of a child 
     receives notice of the operator's personal information 
     collection, use, and disclosure practices, and authorizes the 
     collection, use, and disclosure, as applicable, of personal 
     information and the subsequent use of that information before 
     that information is collected from that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) A commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or

[[Page S11736]]

     online service directed to children by using information 
     location tools, including a directory, index, reference, 
     pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (A) Acts Prohibited.--
       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Commission shall promulgate 
     under section 553 of title 5, United States Code, regulations 
     that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;
       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online collection, of personal information from that 
     child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.
       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--
       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator uses reasonable efforts 
     to provide a parent notice of the online contact information 
     collected from the child, the purposes for which it is to be 
     used, and an opportunity for the parent to request that the 
     operator make no further use of the information and that it 
     not be maintained in retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and
       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website or an online service to terminate 
     service provided to a child whose parent has refused, under 
     the regulations prescribed under paragraph (1)(B)(ii), to 
     permit the operator's further use or maintenance in 
     retrievable form, or future online collection, of personal 
     information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under section 203(b) by following a set 
     of self-regulatory guidelines, issued by representatives of 
     the marketing or online industries, or by other persons, 
     approved under subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon 
     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.

[[Page S11737]]

       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under this title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations initially issued under section 203, 
     the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or
       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.''
                                  ____


                           Amendment No. 3765

       Strike ``days after the date of the enactment of this Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 18 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Nine members of the Commission shall 
     constitute a quorum for conducting the business of the 
     Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to

[[Page S11738]]

     State and local taxation, procedural structures and 
     mechanisms applicable to such taxation, and a mechanism for 
     the resolution of disputes between States regarding matters 
     of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or such political subdivision on 
     transactions involving the same or similar property, goods, 
     services, or information accomplished through other means, 
     unless the rate is lower as part of a phase-out of the tax 
     over not more than a 5-year period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property, goods, services, or information, 
     whether or not for consideration, and includes the provision 
     of Internet access.
       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State or political subdivision thereof 
     on the same or essentially the same electronic commerce that 
     is also subject to another tax imposed by another State or 
     political subdivision thereof (whether or not at the same 
     rate or on the same basis), without a credit (for example, a 
     resale exemption certificate) for taxes paid in other 
     jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.
       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C. 153(46)) and includes communications services (as 
     defined in section 4251 of the Internal Revenue Code of 
     1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.-- It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements to remove barriers to global electronic commerce 
     through the World Trade Organization, the Organization for 
     Economic Cooperation and Development, the Trans-Atlantic 
     Economic Partnership, the Asia Pacific Economic Cooperation 
     forum, the Free Trade Area of the America, the North American 
     Free Trade Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;
       (B) the procurement of telecommunications equipment;
       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of

[[Page S11739]]

     the Office of Management and Budget shall develop procedures 
     and guidelines for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an agency, when it expects to receive 
     electronically 50,000 or more submittals of a particular 
     form, shall take all steps necessary to ensure that multiple 
     formats of electronic signatures are made available for 
     submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use to permit employer electronic 
     storage and filing of forms containing information pertaining 
     to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--the term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of or visitors 
     to such website or online service, or on whose behalf such 
     information is collected or maintained, where such website or 
     online service is operated for commercial purposes, including 
     any person offering products or services for sale through 
     that website or online service, involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--
       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;
       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection use, and disclosure 
     described in the notice, to ensure that a parent of a child 
     receives notice of the operator's personal information 
     collection, use, and disclosure practices, and authorizes the 
     collection, use, and disclosure, as applicable, of personal 
     information and the subsequent use of that information before 
     that information is collected from that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) A commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or online service directed to 
     children by using information location tools, including a 
     directory, index, reference, pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (A) Acts Prohibited.--

[[Page S11740]]

       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Commission shall promulgate 
     under section 553 of title 5, United States Code, regulations 
     that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;
       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online collection, of personal information from that 
     child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.
       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--
       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator uses reasonable efforts 
     to provide a parent notice of the online contact information 
     collected from the child, the purposes for which it is to be 
     used, and an opportunity for the parent to request that the 
     operator make no further use of the information and that it 
     not be maintained in retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and
       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website or an online service to terminate 
     service provided to a child whose parent has refused, under 
     the regulations prescribed under paragraph (1)(B)(ii), to 
     permit the operator's further use or maintenance in 
     retrievable form, or future online collection, of personal 
     information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under section 203(b) by following a set 
     of self-regulatory guidelines, issued by representatives of 
     the marketing or online industries, or by other persons, 
     approved under subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon 
     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.
       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--

[[Page S11741]]

       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under this title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations initially issued under section 203, 
     the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or
       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.'',

     and insert in lieu thereof: ``days after the date of the 
     enactment of this Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 18 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Ten members of the Commission shall constitute 
     a quorum for conducting the business of the Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission

[[Page S11742]]

     shall transmit to Congress a report reflecting the results of 
     the Commission's study under this title. No finding or 
     recommendation shall be included in the report unless agreed 
     to by at least two-thirds of the members of the Commission 
     serving at the time the finding or recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or such political subdivision on 
     transactions involving the same or similar property, goods, 
     services, or information accomplished through other means, 
     unless the rate is lower as part of a phase-out of the tax 
     over not more than a 5-year period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property, goods, services, or information, 
     whether or not for consideration, and includes the provision 
     of Internet access.
       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State or political subdivision thereof 
     on the same or essentially the same electronic commerce that 
     is also subject to another tax imposed by another State or 
     political subdivision thereof (whether or not at the same 
     rate or on the same basis), without a credit (for example, a 
     resale exemption certificate) for taxes paid in other 
     jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.
       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C. 153(46)) and includes communications services (as 
     defined in section 4251 of the Internal Revenue Code of 
     1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.-- It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements to remove barriers to global electronic commerce 
     through the World Trade Organization, the Organization for 
     Economic Cooperation and Development, the Trans-Atlantic 
     Economic Partnership, the Asia Pacific Economic Cooperation 
     forum, the Free Trade Area of the America, the North American 
     Free Trade Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;
       (B) the procurement of telecommunications equipment;
       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an

[[Page S11743]]

     agency, when it expects to receive electronically 50,000 or 
     more submittals of a particular form, shall take all steps 
     necessary to ensure that multiple formats of electronic 
     signatures are made available for submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use to permit employer electronic 
     storage and filing of forms containing information pertaining 
     to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--the term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of or visitors 
     to such website or online service, or on whose behalf such 
     information is collected or maintained, where such website or 
     online service is operated for commercial purposes, including 
     any person offering products or services for sale through 
     that website or online service, involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--
       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;
       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection use, and disclosure 
     described in the notice, to ensure that a parent of a child 
     receives notice of the operator's personal information 
     collection, use, and disclosure practices, and authorizes the 
     collection, use, and disclosure, as applicable, of personal 
     information and the subsequent use of that information before 
     that information is collected from that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) A commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or online service directed to 
     children by using information location tools, including a 
     directory, index, reference, pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (A) Acts Prohibited.--
       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the

[[Page S11744]]

     Commission shall promulgate under section 553 of title 5, 
     United States Code, regulations that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;
       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online collection, of personal information from that 
     child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.
       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--
       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator uses reasonable efforts 
     to provide a parent notice of the online contact information 
     collected from the child, the purposes for which it is to be 
     used, and an opportunity for the parent to request that the 
     operator make no further use of the information and that it 
     not be maintained in retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and
       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website or an online service to terminate 
     service provided to a child whose parent has refused, under 
     the regulations prescribed under paragraph (1)(B)(ii), to 
     permit the operator's further use or maintenance in 
     retrievable form, or future online collection, of personal 
     information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under section 203(b) by following a set 
     of self-regulatory guidelines, issued by representatives of 
     the marketing or online industries, or by other persons, 
     approved under subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon 
     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.
       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--

[[Page S11745]]

       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under this title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations initially issued under section 203, 
     the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or
       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.''
                                  ____


                           Amendment No. 3766

       Strike ``days after the date of the enactment of this Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 18 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Nine members of the Commission shall 
     constitute a quorum for conducting the business of the 
     Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or

[[Page S11746]]

     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or such political subdivision on 
     transactions involving the same or similar property, goods, 
     services, or information accomplished through other means, 
     unless the rate is lower as part of a phase-out of the tax 
     over not more than a 5-year period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property, goods, services, or information, 
     whether or not for consideration, and includes the provision 
     of Internet access.
       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State or political subdivision thereof 
     on the same or essentially the same electronic commerce that 
     is also subject to another tax imposed by another State or 
     political subdivision thereof (whether or not at the same 
     rate or on the same basis), without a credit (for example, a 
     resale exemption certificate) for taxes paid in other 
     jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.
       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C. 153(46)) and includes communications services (as 
     defined in section 4251 of the Internal Revenue Code of 
     1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.-- It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements to remove barriers to global electronic commerce 
     through the World Trade Organization, the Organization for 
     Economic Cooperation and Development, the Trans-Atlantic 
     Economic Partnership, the Asia Pacific Economic Cooperation 
     forum, the Free Trade Area of the America, the North American 
     Free Trade Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;
       (B) the procurement of telecommunications equipment;
       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an agency, when it expects to receive 
     electronically 50,000 or more submittals of a particular 
     form, shall take all steps necessary to ensure that multiple 
     formats of electronic signatures are made available for 
     submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the

[[Page S11747]]

     Clinger-Cohen Act of 1996 (P.L. 104-106), and the provisions 
     of this Act, the Director of the Office of Management and 
     Budget shall develop procedures and guidelines for executive 
     agency use to permit employer electronic storage and filing 
     of forms containing information pertaining to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--the term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of or visitors 
     to such website or online service, or on whose behalf such 
     information is collected or maintained, where such website or 
     online service is operated for commercial purposes, including 
     any person offering products or services for sale through 
     that website or online service, involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--
       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;
       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection use, and disclosure 
     described in the notice, to ensure that a parent of a child 
     receives notice of the operator's personal information 
     collection, use, and disclosure practices, and authorizes the 
     collection, use, and disclosure, as applicable, of personal 
     information and the subsequent use of that information before 
     that information is collected from that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) A commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or online service directed to 
     children by using information location tools, including a 
     directory, index, reference, pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (a) Acts Prohibited.--
       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Commission shall promulgate 
     under section 553 of title 5, United States Code, regulations 
     that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;

[[Page S11748]]

       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online collection, of personal information from that 
     child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.
       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--
       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator uses reasonable efforts 
     to provide a parent notice of the online contact information 
     collected from the child, the purposes for which it is to be 
     used, and an opportunity for the parent to request that the 
     operator make no further use of the information and that it 
     not be maintained in retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and
       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website or an online service to terminate 
     service provided to a child whose parent has refused, under 
     the regulations prescribed under paragraph (1)(B)(ii), to 
     permit the operator's further use or maintenance in 
     retrievable form, or future online collection, of personal 
     information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under section 203(b) by following a set 
     of self-regulatory guidelines, issued by representatives of 
     the marketing or online industries, or by other persons, 
     approved under subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon 
     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.
       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and

[[Page S11749]]

     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under this title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations initially issued under section 203, 
     the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or
       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.'', and insert in lieu 
     thereof: ``days after the date of the enactment of this 
     Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 21 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Nine members of the Commission shall 
     constitute a quorum for conducting the business of the 
     Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or such political subdivision on 
     transactions involving the same or similar property, goods, 
     services, or information accomplished through other means, 
     unless the rate is lower as part of a phase-out of the tax 
     over not more than a 5-year period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property, goods, services, or information, 
     whether or not for consideration, and includes the provision 
     of Internet access.

[[Page S11750]]

       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State or political subdivision thereof 
     on the same or essentially the same electronic commerce that 
     is also subject to another tax imposed by another State or 
     political subdivision thereof (whether or not at the same 
     rate or on the same basis), without a credit (for example, a 
     resale exemption certificate) for taxes paid in other 
     jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.
       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C. 153(46)) and includes communications services (as 
     defined in section 4251 of the Internal Revenue Code of 
     1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.--It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements to remove barriers to global electronic commerce 
     through the World Trade Organization, the Organization for 
     Economic Cooperation and Development, the Trans-Atlantic 
     Economic Partnership, the Asia Pacific Economic Cooperation 
     forum, the Free Trade Area of the America, the North American 
     Free Trade Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;
       (B) the procurement of telecommunications equipment;
       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an agency, when it expects to receive 
     electronically 50,000 or more submittals of a particular 
     form, shall take all steps necessary to ensure that multiple 
     formats of electronic signatures are made available for 
     submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use to permit employer electronic 
     storage and filing of forms containing information pertaining 
     to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

[[Page S11751]]

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--The term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of or visitors 
     to such website or online service, or on whose behalf such 
     information is collected or maintained, where such website or 
     online service is operated for commercial purposes, including 
     any person offering products or services for sale through 
     that website or online service, involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--
       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;
       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection use, and disclosure 
     described in the notice, to ensure that a parent of a child 
     receives notice of the operator's personal information 
     collection, use, and disclosure practices, and authorizes the 
     collection, use, and disclosure, as applicable, of personal 
     information and the subsequent use of that information before 
     that information is collected from that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) a commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or online service directed to 
     children by using information location tools, including a 
     directory, index, reference, pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (a) Acts Prohibited.--
       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Commission shall promulgate 
     under section 553 of title 5, United States Code, regulations 
     that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;
       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online collection, of personal information from that 
     child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.
       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--

[[Page S11752]]

       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator uses reasonable efforts 
     to provide a parent notice of the online contact information 
     collected from the child, the purposes for which it is to be 
     used, and an opportunity for the parent to request that the 
     operator make no further use of the information and that it 
     not be maintained in retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and
       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website or an online service to terminate 
     service provided to a child whose parent has refused, under 
     the regulations prescribed under paragraph (1)(B)(ii), to 
     permit the operator's further use or maintenance in 
     retrievable form, or future online collection, of personal 
     information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under section 203(b) by following a set 
     of self-regulatory guidelines, issued by representatives of 
     the marketing or online industries, or by other persons, 
     approved under subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon 
     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.
       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the

[[Page S11753]]

     Secretary of Agriculture with respect to any activities 
     subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under this title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations initially issued under section 203, 
     the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or
       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.''
                                  ____


                           Amendment No. 3767

       Strike ``days after the date of the enactment of this Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 18 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Nine members of the Commission shall 
     constitute a quorum for conducting the business of the 
     Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or such political subdivision on 
     transactions involving the same or similar property, goods, 
     services, or information accomplished through other means, 
     unless the rate is lower as part of a phase-out of the tax 
     over not more than a 5-year period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property, goods, services, or information, 
     whether or not for consideration, and includes the provision 
     of Internet access.
       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State

[[Page S11754]]

     or political subdivision thereof on the same or essentially 
     the same electronic commerce that is also subject to another 
     tax imposed by another State or political subdivision thereof 
     (whether or not at the same rate or on the same basis), 
     without a credit (for example, a resale exemption 
     certificate) for taxes paid in other jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.
       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C. 153(46)) and includes communications services (as 
     defined in section 4251 of the Internal Revenue Code of 
     1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.-- It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements to remove barriers to global electronic commerce 
     through the World Trade Organization, the Organization for 
     Economic Cooperation and Development, the Trans-Atlantic 
     Economic Partnership, the Asia Pacific Economic Cooperation 
     forum, the Free Trade Area of the America, the North American 
     Free Trade Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;
       (B) the procurement of telecommunications equipment;
       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an agency, when it expects to receive 
     electronically 50,000 or more submittals of a particular 
     form, shall take all steps necessary to ensure that multiple 
     formats of electronic signatures are made available for 
     submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use to permit employer electronic 
     storage and filing of forms containing information pertaining 
     to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

[[Page S11755]]

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--the term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of or visitors 
     to such website or online service, or on whose behalf such 
     information is collected or maintained, where such website or 
     online service is operated for commercial purposes, including 
     any person offering products or services for sale through 
     that website or online service, involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--
       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;
       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection use, and disclosure 
     described in the notice, to ensure that a parent of a child 
     receives notice of the operator's personal information 
     collection, use, and disclosure practices, and authorizes the 
     collection, use, and disclosure, as applicable, of personal 
     information and the subsequent use of that information before 
     that information is collected from that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) A commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or online service directed to 
     children by using information location tools, including a 
     directory, index, reference, pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (A) Acts Prohibited.--
       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Commission shall promulgate 
     under section 553 of title 5, United States Code, regulations 
     that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;
       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online collection, of personal information from that 
     child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.
       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--
       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator

[[Page S11756]]

     uses reasonable efforts to provide a parent notice of the 
     online contact information collected from the child, the 
     purposes for which it is to be used, and an opportunity for 
     the parent to request that the operator make no further use 
     of the information and that it not be maintained in 
     retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and
       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website or an online service to terminate 
     service provided to a child whose parent has refused, under 
     the regulations prescribed under paragraph (1)(B)(ii), to 
     permit the operator's further use or maintenance in 
     retrievable form, or future online collection, of personal 
     information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under section 203(b) by following a set 
     of self-regulatory guidelines, issued by representatives of 
     the marketing or online industries, or by other persons, 
     approved under subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon 
     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.
       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement

[[Page S11757]]

     imposed under this title, any other authority conferred on it 
     by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations initially issued under section 203, 
     the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or
       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.'', and insert in lieu thereof:
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 20 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Ten members of the Commission shall constitute 
     a quorum for conducting the business of the Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or such political subdivision on 
     transactions involving the same or similar property, goods, 
     services, or information accomplished through other means, 
     unless the rate is lower as part of a phase-out of the tax 
     over not more than a 5-year period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property, goods, services, or information, 
     whether or not for consideration, and includes the provision 
     of Internet access.
       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State or political subdivision thereof 
     on the same or essentially the same electronic commerce that 
     is also subject to another tax imposed by another State or 
     political subdivision thereof (whether or not at the same 
     rate or on the same basis), without a credit (for example, a 
     resale exemption certificate) for taxes paid in other 
     jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.

[[Page S11758]]

       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C. 153(46)) and includes communications services (as 
     defined in section 4251 of the Internal Revenue Code of 
     1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.-- It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements to remove barriers to global electronic commerce 
     through the World Trade Organization, the Organization for 
     Economic Cooperation and Development, the Trans-Atlantic 
     Economic Partnership, the Asia Pacific Economic Cooperation 
     forum, the Free Trade Area of the America, the North American 
     Free Trade Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;
       (B) the procurement of telecommunications equipment;
       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an agency, when it expects to receive 
     electronically 50,000 or more submittals of a particular 
     form, shall take all steps necessary to ensure that multiple 
     formats of electronic signatures are made available for 
     submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use to permit employer electronic 
     storage and filing of forms containing information pertaining 
     to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and

[[Page S11759]]

       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--the term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of or visitors 
     to such website or online service, or on whose behalf such 
     information is collected or maintained, where such website or 
     online service is operated for commercial purposes, including 
     any person offering products or services for sale through 
     that website or online service, involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--
       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;
       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection use, and disclosure 
     described in the notice, to ensure that a parent of a child 
     receives notice of the operator's personal information 
     collection, use, and disclosure practices, and authorizes the 
     collection, use, and disclosure, as applicable, of personal 
     information and the subsequent use of that information before 
     that information is collected from that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) A commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or online service directed to 
     children by using information location tools, including a 
     directory, index, reference, pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (A) Acts Prohibited.--
       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Commission shall promulgate 
     under section 553 of title 5, United States Code, regulations 
     that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;
       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online collection, of personal information from that 
     child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.
       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--
       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator uses reasonable efforts 
     to provide a parent notice of the online contact information 
     collected from the child, the purposes for which it is to be 
     used, and an opportunity for the parent to request that the 
     operator make no further use of the information and that it 
     not be maintained in retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and

[[Page S11760]]

       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website or an online service to terminate 
     service provided to a child whose parent has refused, under 
     the regulations prescribed under paragraph (1)(B)(ii), to 
     permit the operator's further use or maintenance in 
     retrievable form, or future online collection, of personal 
     information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under section 203(b) by following a set 
     of self-regulatory guidelines, issued by representatives of 
     the marketing or online industries, or by other persons, 
     approved under subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon 
     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.
       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under this title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations

[[Page S11761]]

     initially issued under section 203, the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or
       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.''
                                  ____


                           Amendment No. 3768

       Strike ``days after the date of the enactment of this Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 18 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Nine members of the Commission shall 
     constitute a quorum for conducting the business of the 
     Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or such political subdivision on 
     transactions involving the same or similar property, goods, 
     services, or information accomplished through other means, 
     unless the rate is lower as part of a phase-out of the tax 
     over not more than a 5-year period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property, goods, services, or information, 
     whether or not for consideration, and includes the provision 
     of Internet access.
       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State or political subdivision thereof 
     on the same or essentially the same electronic commerce that 
     is also subject to another tax imposed by another State or 
     political subdivision thereof (whether or not at the same 
     rate or on the same basis), without a credit (for example, a 
     resale exemption certificate) for taxes paid in other 
     jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.
       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C.

[[Page S11762]]

     153(46)) and includes communications services (as defined in 
     section 4251 of the Internal Revenue Code of 1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.-- It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements to remove barriers to global electronic commerce 
     through the World Trade Organization, the Organization for 
     Economic Cooperation and Development, the Trans-Atlantic 
     Economic Partnership, the Asia Pacific Economic Cooperation 
     forum, the Free Trade Area of the America, the North American 
     Free Trade Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;
       (B) the procurement of telecommunications equipment;
       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an agency, when it expects to receive 
     electronically 50,000 or more submittals of a particular 
     form, shall take all steps necessary to ensure that multiple 
     formats of electronic signatures are made available for 
     submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use to permit employer electronic 
     storage and filing of forms containing information pertaining 
     to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--the term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of

[[Page S11763]]

     or visitors to such website or online service, or on whose 
     behalf such information is collected or maintained, where 
     such website or online service is operated for commercial 
     purposes, including any person offering products or services 
     for sale through that website or online service, involving 
     commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--
       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;
       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection use, and disclosure 
     described in the notice, to ensure that a parent of a child 
     receives notice of the operator's personal information 
     collection, use, and disclosure practices, and authorizes the 
     collection, use, and disclosure, as applicable, of personal 
     information and the subsequent use of that information before 
     that information is collected from that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) A commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or online service directed to 
     children by using information location tools, including a 
     directory, index, reference, pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (A) Acts Prohibited.--
       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Commission shall promulgate 
     under section 553 of title 5, United States Code, regulations 
     that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;
       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online collection, of personal information from that 
     child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.
       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--
       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator uses reasonable efforts 
     to provide a parent notice of the online contact information 
     collected from the child, the purposes for which it is to be 
     used, and an opportunity for the parent to request that the 
     operator make no further use of the information and that it 
     not be maintained in retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and
       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website

[[Page S11764]]

     or an online service to terminate service provided to a child 
     whose parent has refused, under the regulations prescribed 
     under paragraph (1)(B)(ii), to permit the operator's further 
     use or maintenance in retrievable form, or future online 
     collection, of personal information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under section 203(b) by following a set 
     of self-regulatory guidelines, issued by representatives of 
     the marketing or online industries, or by other persons, 
     approved under subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon 
     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.
       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under this title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations initially issued under section 203, 
     the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or

[[Page S11765]]

       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.'', and insert in lieu thereof: 
     ``days after the date of the enactment of this Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 19 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Ten members of the Commission shall constitute 
     a quorum for conducting the business of the Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or such political subdivision on 
     transactions involving the same or similar property, goods, 
     services, or information accomplished through other means, 
     unless the rate is lower as part of a phase-out of the tax 
     over not more than a 5-year period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property, goods, services, or information, 
     whether or not for consideration, and includes the provision 
     of Internet access.
       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State or political subdivision thereof 
     on the same or essentially the same electronic commerce that 
     is also subject to another tax imposed by another State or 
     political subdivision thereof (whether or not at the same 
     rate or on the same basis), without a credit (for example, a 
     resale exemption certificate) for taxes paid in other 
     jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.
       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C. 153(46)) and includes communications services (as 
     defined in section 4251 of the Internal Revenue Code of 
     1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and

[[Page S11766]]

       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.-- It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements to remove barriers to global electronic commerce 
     through the World Trade Organization, the Organization for 
     Economic Cooperation and Development, the Trans-Atlantic 
     Economic Partnership, the Asia Pacific Economic Cooperation 
     forum, the Free Trade Area of the America, the North American 
     Free Trade Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;
       (B) the procurement of telecommunications equipment;
       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an agency, when it expects to receive 
     electronically 50,000 or more submittals of a particular 
     form, shall take all steps necessary to ensure that multiple 
     formats of electronic signatures are made available for 
     submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use to permit employer electronic 
     storage and filing of forms containing information pertaining 
     to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--the term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of or visitors 
     to such website or online service, or on whose behalf such 
     information is collected or maintained, where such website or 
     online service is operated for commercial purposes, including 
     any person offering products or services for sale through 
     that website or online service, involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--

[[Page S11767]]

       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;
       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection use, and disclosure 
     described in the notice, to ensure that a parent of a child 
     receives notice of the operator's personal information 
     collection, use, and disclosure practices, and authorizes the 
     collection, use, and disclosure, as applicable, of personal 
     information and the subsequent use of that information before 
     that information is collected from that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) A commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or online service directed to 
     children by using information location tools, including a 
     directory, index, reference, pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (A) Acts Prohibited.--
       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Commission shall promulgate 
     under section 553 of title 5, United States Code, regulations 
     that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;
       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online collection, of personal information from that 
     child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.
       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--
       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator uses reasonable efforts 
     to provide a parent notice of the online contact information 
     collected from the child, the purposes for which it is to be 
     used, and an opportunity for the parent to request that the 
     operator make no further use of the information and that it 
     not be maintained in retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and
       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website or an online service to terminate 
     service provided to a child whose parent has refused, under 
     the regulations prescribed under paragraph (1)(B)(ii), to 
     permit the operator's further use or maintenance in 
     retrievable form, or future online collection, of personal 
     information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under

[[Page S11768]]

     section 203(b) by following a set of self-regulatory 
     guidelines, issued by representatives of the marketing or 
     online industries, or by other persons, approved under 
     subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon 
     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.
       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under this title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations initially issued under section 203, 
     the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or
       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.''
                                  ____


                           Amendment No. 3769

       Strike ``days after the date of the enactment of this Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.

[[Page S11769]]

       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 18 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Nine members of the Commission shall 
     constitute a quorum for conducting the business of the 
     Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or such political subdivision on 
     transactions involving the same or similar property, goods, 
     services, or information accomplished through other means, 
     unless the rate is lower as part of a phase-out of the tax 
     over not more than a 5-year period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property, goods, services, or information, 
     whether or not for consideration, and includes the provision 
     of Internet access.
       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State or political subdivision thereof 
     on the same or essentially the same electronic commerce that 
     is also subject to another tax imposed by another State or 
     political subdivision thereof (whether or not at the same 
     rate or on the same basis), without a credit (for example, a 
     resale exemption certificate) for taxes paid in other 
     jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.
       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C. 153(46)) and includes communications services (as 
     defined in section 4251 of the Internal Revenue Code of 
     1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:

[[Page S11770]]

       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.-- It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements to remove barriers to global electronic commerce 
     through the World Trade Organization, the Organization for 
     Economic Cooperation and Development, the Trans-Atlantic 
     Economic Partnership, the Asia Pacific Economic Cooperation 
     forum, the Free Trade Area of the America, the North American 
     Free Trade Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;
       (B) the procurement of telecommunications equipment;
       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

                           Amendment No. 3678

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an agency, when it expects to receive 
     electronically 50,000 or more submittals of a particular 
     form, shall take all steps necessary to ensure that multiple 
     formats of electronic signatures are made available for 
     submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use to permit employer electronic 
     storage and filing of forms containing information pertaining 
     to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--the term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of or visitors 
     to such website or online service, or on whose behalf such 
     information is collected or maintained, where such website or 
     online service is operated for commercial purposes, including 
     any person offering products or services for sale through 
     that website or online service, involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--
       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;

[[Page S11771]]

       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection use, and disclosure 
     described in the notice, to ensure that a parent of a child 
     receives notice of the operator's personal information 
     collection, use, and disclosure practices, and authorizes the 
     collection, use, and disclosure, as applicable, of personal 
     information and the subsequent use of that information before 
     that information is collected from that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) A commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or online service directed to 
     children by using information location tools, including a 
     directory, index, reference, pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (A) Acts Prohibited.--
       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Commission shall promulgate 
     under section 553 of title 5, United States Code, regulations 
     that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;
       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online collection, of personal information from that 
     child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.
       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--
       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator uses reasonable efforts 
     to provide a parent notice of the online contact information 
     collected from the child, the purposes for which it is to be 
     used, and an opportunity for the parent to request that the 
     operator make no further use of the information and that it 
     not be maintained in retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and
       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website or an online service to terminate 
     service provided to a child whose parent has refused, under 
     the regulations prescribed under paragraph (1)(B)(ii), to 
     permit the operator's further use or maintenance in 
     retrievable form, or future online collection, of personal 
     information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under section 203(b) by following a set 
     of self-regulatory guidelines, issued by representatives of 
     the marketing or online industries, or by other persons, 
     approved under subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon

[[Page S11772]]

     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.
       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under this title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations initially issued under section 203, 
     the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or
       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.'', and insert in lieu thereof: 
     ``days after the date of the enactment of this Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 18 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Twelve members of the Commission shall 
     constitute a quorum for conducting the business of the 
     Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14

[[Page S11773]]

     days in advance and shall be open to the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or such political subdivision on 
     transactions involving the same or similar property, goods, 
     services, or information accomplished through other means, 
     unless the rate is lower as part of a phase-out of the tax 
     over not more than a 5-year period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property, goods, services, or information, 
     whether or not for consideration, and includes the provision 
     of Internet access.
       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State or political subdivision thereof 
     on the same or essentially the same electronic commerce that 
     is also subject to another tax imposed by another State or 
     political subdivision thereof (whether or not at the same 
     rate or on the same basis), without a credit (for example, a 
     resale exemption certificate) for taxes paid in other 
     jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.
       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C. 153(46)) and includes communications services (as 
     defined in section 4251 of the Internal Revenue Code of 
     1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.-- It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements

[[Page S11774]]

     to remove barriers to global electronic commerce through the 
     World Trade Organization, the Organization for Economic 
     Cooperation and Development, the Trans-Atlantic Economic 
     Partnership, the Asia Pacific Economic Cooperation forum, the 
     Free Trade Area of the America, the North American Free Trade 
     Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;
       (B) the procurement of telecommunications equipment;
       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an agency, when it expects to receive 
     electronically 50,000 or more submittals of a particular 
     form, shall take all steps necessary to ensure that multiple 
     formats of electronic signatures are made available for 
     submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use to permit employer electronic 
     storage and filing of forms containing information pertaining 
     to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--the term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of or visitors 
     to such website or online service, or on whose behalf such 
     information is collected or maintained, where such website or 
     online service is operated for commercial purposes, including 
     any person offering products or services for sale through 
     that website or online service, involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--
       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;
       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.

[[Page S11775]]

       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection use, and disclosure 
     described in the notice, to ensure that a parent of a child 
     receives notice of the operator's personal information 
     collection, use, and disclosure practices, and authorizes the 
     collection, use, and disclosure, as applicable, of personal 
     information and the subsequent use of that information before 
     that information is collected from that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) A commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or online service directed to 
     children by using information location tools, including a 
     directory, index, reference, pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (A) Acts Prohibited.--
       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Commission shall promulgate 
     under section 553 of title 5, United States Code, regulations 
     that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;
       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online collection, of personal information from that 
     child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.
       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--
       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator uses reasonable efforts 
     to provide a parent notice of the online contact information 
     collected from the child, the purposes for which it is to be 
     used, and an opportunity for the parent to request that the 
     operator make no further use of the information and that it 
     not be maintained in retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and
       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website or an online service to terminate 
     service provided to a child whose parent has refused, under 
     the regulations prescribed under paragraph (1)(B)(ii), to 
     permit the operator's further use or maintenance in 
     retrievable form, or future online collection, of personal 
     information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under section 203(b) by following a set 
     of self-regulatory guidelines, issued by representatives of 
     the marketing or online industries, or by other persons, 
     approved under subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon 
     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

[[Page S11776]]

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.
       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under this title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations initially issued under section 203, 
     the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or
       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.''
                                  ____


                           Amendment No. 3770

       Strike ``days after the date of the enactment of this Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 18 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Nine members of the Commission shall 
     constitute a quorum for conducting the business of the 
     Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--

[[Page S11777]]

       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or such political subdivision on 
     transactions involving the same or similar property, goods, 
     services, or information accomplished through other means, 
     unless the rate is lower as part of a phase-out of the tax 
     over not more than a 5-year period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property, goods, services, or information, 
     whether or not for consideration, and includes the provision 
     of Internet access.
       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State or political subdivision thereof 
     on the same or essentially the same electronic commerce that 
     is also subject to another tax imposed by another State or 
     political subdivision thereof (whether or not at the same 
     rate or on the same basis), without a credit (for example, a 
     resale exemption certificate) for taxes paid in other 
     jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.
       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C. 153(46)) and includes communications services (as 
     defined in section 4251 of the Internal Revenue Code of 
     1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.-- It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements to remove barriers to global electronic commerce 
     through the World Trade Organization, the Organization for 
     Economic Cooperation and Development, the Trans-Atlantic 
     Economic Partnership, the Asia Pacific Economic Cooperation 
     forum, the Free Trade Area of the America, the North American 
     Free Trade Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;
       (B) the procurement of telecommunications equipment;

[[Page S11778]]

       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an agency, when it expects to receive 
     electronically 50,000 or more submittals of a particular 
     form, shall take all steps necessary to ensure that multiple 
     formats of electronic signatures are made available for 
     submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use to permit employer electronic 
     storage and filing of forms containing information pertaining 
     to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--the term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of or visitors 
     to such website or online service, or on whose behalf such 
     information is collected or maintained, where such website or 
     online service is operated for commercial purposes, including 
     any person offering products or services for sale through 
     that website or online service, involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--
       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;
       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection

[[Page S11779]]

     use, and disclosure described in the notice, to ensure that a 
     parent of a child receives notice of the operator's personal 
     information collection, use, and disclosure practices, and 
     authorizes the collection, use, and disclosure, as 
     applicable, of personal information and the subsequent use of 
     that information before that information is collected from 
     that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) A commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or online service directed to 
     children by using information location tools, including a 
     directory, index, reference, pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (A) Acts Prohibited.--
       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Commission shall promulgate 
     under section 553 of title 5, United States Code, regulations 
     that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;
       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online collection, of personal information from that 
     child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.
       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--
       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator uses reasonable efforts 
     to provide a parent notice of the online contact information 
     collected from the child, the purposes for which it is to be 
     used, and an opportunity for the parent to request that the 
     operator make no further use of the information and that it 
     not be maintained in retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and
       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website or an online service to terminate 
     service provided to a child whose parent has refused, under 
     the regulations prescribed under paragraph (1)(B)(ii), to 
     permit the operator's further use or maintenance in 
     retrievable form, or future online collection, of personal 
     information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under section 203(b) by following a set 
     of self-regulatory guidelines, issued by representatives of 
     the marketing or online industries, or by other persons, 
     approved under subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon 
     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of

[[Page S11780]]

     the State involved shall provide to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.
       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under this title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations initially issued under section 203, 
     the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or
       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.'', and insert in lieu thereof: 
     ``days after the date of the enactment of this Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 18 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Eleven members of the Commission shall 
     constitute a quorum for conducting the business of the 
     Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for

[[Page S11781]]

     taxes imposed under section 4251 of the Internal Revenue Code 
     of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or such political subdivision on 
     transactions involving the same or similar property, goods, 
     services, or information accomplished through other means, 
     unless the rate is lower as part of a phase-out of the tax 
     over not more than a 5-year period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property, goods, services, or information, 
     whether or not for consideration, and includes the provision 
     of Internet access.
       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State or political subdivision thereof 
     on the same or essentially the same electronic commerce that 
     is also subject to another tax imposed by another State or 
     political subdivision thereof (whether or not at the same 
     rate or on the same basis), without a credit (for example, a 
     resale exemption certificate) for taxes paid in other 
     jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.
       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C. 153(46)) and includes communications services (as 
     defined in section 4251 of the Internal Revenue Code of 
     1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.-- It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements to remove barriers to global electronic commerce 
     through the World Trade Organization, the Organization for 
     Economic Cooperation and Development, the Trans-Atlantic 
     Economic Partnership, the Asia Pacific Economic Cooperation 
     forum, the Free Trade Area of the America, the North American 
     Free Trade Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;
       (B) the procurement of telecommunications equipment;
       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

[[Page S11782]]

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an agency, when it expects to receive 
     electronically 50,000 or more submittals of a particular 
     form, shall take all steps necessary to ensure that multiple 
     formats of electronic signatures are made available for 
     submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use to permit employer electronic 
     storage and filing of forms containing information pertaining 
     to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--the term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of or visitors 
     to such website or online service, or on whose behalf such 
     information is collected or maintained, where such website or 
     online service is operated for commercial purposes, including 
     any person offering products or services for sale through 
     that website or online service, involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--
       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;
       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection use, and disclosure 
     described in the notice, to ensure that a parent of a child 
     receives notice of the operator's personal information 
     collection, use, and disclosure practices, and authorizes the 
     collection, use, and disclosure, as applicable, of personal 
     information and the subsequent use of that information before 
     that information is collected from that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) A commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or

[[Page S11783]]

     online service directed to children by using information 
     location tools, including a directory, index, reference, 
     pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (A) Acts Prohibited.--
       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Commission shall promulgate 
     under section 553 of title 5, United States Code, regulations 
     that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;
       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online collection, of personal information from that 
     child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.
       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--
       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator uses reasonable efforts 
     to provide a parent notice of the online contact information 
     collected from the child, the purposes for which it is to be 
     used, and an opportunity for the parent to request that the 
     operator make no further use of the information and that it 
     not be maintained in retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and
       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website or an online service to terminate 
     service provided to a child whose parent has refused, under 
     the regulations prescribed under paragraph (1)(B)(ii), to 
     permit the operator's further use or maintenance in 
     retrievable form, or future online collection, of personal 
     information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under section 203(b) by following a set 
     of self-regulatory guidelines, issued by representatives of 
     the marketing or online industries, or by other persons, 
     approved under subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon 
     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.

[[Page S11784]]

       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under this title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations initially issued under section 203, 
     the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or
       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.''
                                 ______
                                 

                    McCAIN AMENDMENTS NOS. 3771-3772

  (Ordered to lie on the table.)
  Mr. McCAIN submitted two amendments intended to be proposed by him to 
amendment No. 3722 submitted by him to the bill, S. 442, supra; as 
follows:

                           Amendment No. 3771

       Strike all and insert the following substitute:
       On page 17, beginning with line 18, strike through line 21 
     on page 19 and insert the following:
       (a) Establishment of Commission.--There is established a 
     commission to be known as the Advisory Commission on 
     Electronic Commerce (in this title referred to as the 
     ``Commission''). The Commission shall--
       (1) be composed of 19 members appointed in accordance with 
     subsection (b), including the chairperson selected by the 
     members of the Commission from among themselves; and
       (2) conduct its business in accordance with the provisions 
     of this title.
       (b) Membership.--
       (1) In general.--The Commissioners shall serve for the life 
     of the Commission. The membership of the Commission shall be 
     as follows:
       (A) 3 representatives from the Federal Government, 
     comprised of the Secretary of Commerce, the Secretary of the 
     Treasury, and the United States Trade Representative (or 
     their respective delegates).
       (B) 8 representatives from State and local governments (one 
     such representative shall be from a State or local government 
     that does not impose a sales tax).
       (C) 8 representatives of the electronic commerce industry 
     (including small business), telecommunications carriers, 
     local retail businesses, and consumer groups, comprised of--
       (i) 5 individuals appointed by the Majority Leader of the 
     Senate;
       (ii) 3 individuals appointed by the Minority Leader of the 
     Senate;
       (iii) 5 individuals appointed by the Speaker of the House 
     of Representatives; and
       (iv) 3 individuals appointed by the Minority Leader of the 
     House of Representatives.
                                  ____


                           Amendment No. 3772

       On page 3, strike lines 7 through 23 and insert the 
     following:
       (i) the ability to access a site on a remote seller's 
     computer server is considered a factor in determining a 
     remote seller's tax collection obligation; or
       (ii) a provider of Internet access service or online 
     services is deemed to be the agent of a remote seller for 
     determining tax collection obligations as a result of--
       (I) the display of a remote seller's information or content 
     on the computer server of a provider of Internet access 
     service or online services; or
       (II) the processing of orders through the computer server 
     of a provider of Internet access service or on-line services.
                                 ______
                                 

                       McCAIN AMENDMENT NO. 3773

  (Ordered to lie on the table.)
  Mr. McCAIN submitted an amendment intended to be proposed by him to 
amendment No. 3719 submitted by him to the bill, S. 442, supra; as 
follows:

       On page 3, after line 23, insert the following:
       (2A) Tax that was Generally Imposed and Actually 
     Enforced.--The term ``tax that was generally imposed and 
     actually enforced'' means a tax--
       (A) that was authorized by statute price to October 1, 
     1998; and
       (B) with respect to which the appropriate state 
     administrative agency provided clear notice that the tax was 
     being interpreted to apply to Internet access services and 
     which provided the taxable entity with a reasonable 
     opportunity to be aware that such tax would apply to them, 
     such as a rule or a public proclamation by such State 
     administrative agency or a public disclosure by such

[[Page S11785]]

     agency of the fact that the State in question had previously 
     assessed such a tax or was applying its tax to charges for 
     Internet access.
                                 ______
                                 

                        WYDEN AMENDMENT NO. 3774

  (Ordered to lie on the table.)
  Mr. WYDEN submitted an amendment intended to be proposed by him to 
amendment No. 3719 submitted by Mr. McCain to the bill, S. 442, supra; 
as follows:

       On page 2, after line 14, add the following:
       (d) Definitions.--For the purposes of this section, a tax 
     has been ``generally imposed and actually enforced'' if, 
     prior to October 1, 1998--
       (1) the tax was authorized by statute; and
       (2) a provider of Internet access service had been given a 
     reasonable opportunity to know by virtue of a rule or other 
     public proclamation made by the appropriate administrative 
     agency of the state that the tax--
       (A) had been interpreted to apply to Internet access 
     services;
       (B) had been applied to Internet access services; and
       (C) had been assessed to charges for Internet access.
                                 ______
                                 

                       SHELBY AMENDMENT NO. 3775

  (Ordered to lie on the table.)
  Mr. SHELBY submitted an amendment intended to be proposed by him to 
amendment No. 3686 submitted by Mr. Shelby to the bill, S. 442, supra; 
as follows:

       In lieu of the language to be inserted, insert the 
     following,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Internet Tax Freedom Act''.

                  TITLE I--MORATORIUM ON CERTAIN TAXES

     SEC. 101. MORATORIUM.

       (a) Moratorium.--No State or political subdivision thereof 
     shall impose any of the following taxes on transactions 
     occurring during the period beginning on July 29, 1998, and 
     ending 4 years after the date of the enactment of this Act:
       (1) Taxes on Internet access.
       (2) Bit taxes.
       (3) Multiple or discriminatory taxes on electronic 
     commerce.
       (b) Application of Moratorium.--Subsection (a) shall not 
     apply with respect to the provision of Internet access that 
     is offered for sale as part of a package of services that 
     includes services other than Internet access, unless the 
     service provider separately states that portion of the 
     billing that applies to such services on the user's bill.

     SEC. 102. ADVISORY COMMISSION ON ELECTRONIC COMMERCE.

       (a) Establishment of Commission.--There is established a 
     commission to be known as the Advisory Commission on 
     Electronic Commerce (in this title referred to as the 
     ``Commission''). The Commission shall--
       (1) be composed of 16 members appointed in accordance with 
     subsection (b), including the chairperson who shall be 
     selected by the members of the Commission from among 
     themselves; and
       (2) conduct its business in accordance with the provisions 
     of this title.
       (b) Membership.--
       (1) In general.--The Commissioners shall serve for the life 
     of the Commission. The membership of the Commission shall be 
     as follows:
       (A) Four representatives from the Federal Government 
     comprised of the Secretary of Commerce, the Secretary of 
     State, the Secretary of the Treasury, and the United States 
     Trade Representative, or their respective representatives.
       (B) Six representatives from State and local governments 
     comprised of--
       (i) two representatives appointed by the Majority Leader of 
     the Senate;
       (ii) one representative appointed by the Minority Leader of 
     the Senate;
       (iii) two representatives appointed by the Speaker of the 
     House of Representatives; and
       (iv) one representative appointed by the Minority Leader of 
     the House of Representatives.
       (C) Six representatives of the electronic industry and 
     consumer groups comprised of--
       (i) two representatives appointed by the Majority Leader of 
     the Senate;
       (ii) one representative appointed by the Minority Leader of 
     the Senate;
       (iii) two representatives appointed by the Speaker of the 
     House of Representatives; and
       (iv) one representative appointed by the Minority Leader of 
     the House of Representatives.
       (2) Appointments.--Appointments to the Commission shall be 
     made not later than 45 days after the date of the enactment 
     of this Act. The chairperson shall be selected not later than 
     60 days after the date of the enactment of this Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 18 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Nine members of the Commission shall 
     constitute a quorum for conducting the business of the 
     Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;
       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or

[[Page S11786]]

     such political subdivision on transactions involving the same 
     or similar property, goods, services, or information 
     accomplished through other means, unless the rate is lower as 
     part of a phase-out of the tax over not more than a 5-year 
     period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property, goods, services, or information, 
     whether or not for consideration, and includes the provision 
     of Internet access.
       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State or political subdivision thereof 
     on the same or essentially the same electronic commerce that 
     is also subject to another tax imposed by another State or 
     political subdivision thereof (whether or not at the same 
     rate or on the same basis), without a credit (for example, a 
     resale exemption certificate) for taxes paid in other 
     jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.
       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C. 153(46)) and includes communications services (as 
     defined in section 4251 of the Internal Revenue Code of 
     1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.-- It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements to remove barriers to global electronic commerce 
     through the World Trade Organization, the Organization for 
     Economic Cooperation and Development, the Trans-Atlantic 
     Economic Partnership, the Asia Pacific Economic Cooperation 
     forum, the Free Trade Area of the America, the North American 
     Free Trade Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;
       (B) the procurement of telecommunications equipment;
       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an agency, when it expects to receive 
     electronically 50,000 or more submittals of a particular 
     form, shall take all steps necessary to ensure that multiple 
     formats of electronic signatures are made available for 
     submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and

[[Page S11787]]

     the provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use to permit employer electronic 
     storage and filing of forms containing information pertaining 
     to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--the term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of or visitors 
     to such website or online service, or on whose behalf such 
     information is collected or maintained, where such website or 
     online service is operated for commercial purposes, including 
     any person offering products or services for sale through 
     that website or online service, involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--
       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;
       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection use, and disclosure 
     described in the notice, to ensure that a parent of a child 
     receives notice of the operator's personal information 
     collection, use, and disclosure practices, and authorizes the 
     collection, use, and disclosure, as applicable, of personal 
     information and the subsequent use of that information before 
     that information is collected from that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) A commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or online service directed to 
     children by using information location tools, including a 
     directory, index, reference, pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation, trust, estate, cooperative, 
     association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (A) Acts Prohibited.--
       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Commission shall promulgate 
     under section 553 of title 5, United States Code, regulations 
     that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;
       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online

[[Page S11788]]

     collection, of personal information from that child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.
       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--
       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator uses reasonable efforts 
     to provide a parent notice of the online contact information 
     collected from the child, the purposes for which it is to be 
     used, and an opportunity for the parent to request that the 
     operator make no further use of the information and that it 
     not be maintained in retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and
       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website or an online service to terminate 
     service provided to a child whose parent has refused, under 
     the regulations prescribed under paragraph (1)(B)(ii), to 
     permit the operator's further use or maintenance in 
     retrievable form, or future online collection, of personal 
     information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under section 203(b) by following a set 
     of self-regulatory guidelines, issued by representatives of 
     the marketing or online industries, or by other persons, 
     approved under subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon 
     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.
       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and
       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and

[[Page S11789]]

       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under this title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations initially issued under section 203, 
     the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or
       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.
                                 ______
                                 

                       SHELBY AMENDMENT NO. 3776

  (Ordered to lie on the table.)
  Mr. SHELBY submitted an amendment intended to be proposed by him to 
amendment No. 3685 submitted by Mr. Shelby to the bill, S. 442, supra; 
as follows:

       In lieu of the language to be inserted, insert the 
     following,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Internet Tax Freedom Act''.

                  TITLE I--MORATORIUM ON CERTAIN TAXES

     SEC. 101. MORATORIUM.

       (a) Moratorium.--No State or political subdivision thereof 
     shall impose any of the following taxes on transactions 
     occurring during the period beginning on July 29, 1998, and 
     ending 3 years after the date of the enactment of this Act:
       (1) Taxes on Internet access.
       (2) Bit taxes.
       (3) Multiple or discriminatory taxes on electronic 
     commerce.
       (b) Application of Moratorium.--Subsection (a) shall not 
     apply with respect to the provision of Internet access that 
     is offered for sale as part of a package of services that 
     includes services other than Internet access, unless the 
     service provider separately states that portion of the 
     billing that applies to such services on the user's bill.

     SEC. 102. ADVISORY COMMISSION ON ELECTRONIC COMMERCE.

       (a) Establishment of Commission.--There is established a 
     commission to be known as the Advisory Commission on 
     Electronic Commerce (in this title referred to as the 
     ``Commission''). The Commission shall--
       (1) be composed of 16 members appointed in accordance with 
     subsection (b), including the chairperson who shall be 
     selected by the members of the Commission from among 
     themselves; and
       (2) conduct its business in accordance with the provisions 
     of this title.
       (b) Membership.--
       (1) In general.--The Commissioners shall serve for the life 
     of the Commission. The membership of the Commission shall be 
     as follows:
       (A) Four representatives from the Federal Government 
     comprised of the Secretary of Commerce, the Secretary of 
     State, the Secretary of the Treasury, and the United States 
     Trade Representative, or their respective representatives.
       (B) Six representatives from State and local governments 
     comprised of--
       (i) two representatives appointed by the Majority Leader of 
     the Senate;
       (ii) one representative appointed by the Minority Leader of 
     the Senate;
       (iii) two representatives appointed by the Speaker of the 
     House of Representatives; and
       (iv) one representative appointed by the Minority Leader of 
     the House of Representatives.
       (C) Six representatives of the electronic industry and 
     consumer groups comprised of--
       (i) two representatives appointed by the Majority Leader of 
     the Senate;
       (ii) one representative appointed by the Minority Leader of 
     the Senate;
       (iii) two representatives appointed by the Speaker of the 
     House of Representatives; and
       (iv) one representative appointed by the Minority Leader of 
     the House of Representatives.
       (2) Appointments.--Appointments to the Commission shall be 
     made not later than 45 days after the date of the enactment 
     of this Act. The chairperson shall be selected not later than 
     60 days after the date of the enactment of this Act.
       (3) Vacancies.--Any vacancy in the Commission shall not 
     affect its powers, but shall be filled in the same manner as 
     the original appointment.
       (c) Acceptance of Gifts and Grants.--The Commission may 
     accept, use, and dispose of gifts or grants of services or 
     property, both real and personal, for purposes of aiding or 
     facilitating the work of the Commission. Gifts or grants not 
     used at the expiration of the Commission shall be returned to 
     the donor or grantor.
       (d) Other Resources.--The Commission shall have reasonable 
     access to materials, resources, data, and other information 
     from the Department of Justice, the Department of Commerce, 
     the Department of State, the Department of the Treasury, and 
     the Office of the United States Trade Representative. The 
     Commission shall also have reasonable access to use the 
     facilities of any such Department or Office for purposes of 
     conducting meetings.
       (e) Sunset.--The Commission shall terminate 18 months after 
     the date of the enactment of this Act.
       (f) Rules of the Commission.--
       (1) Quorum.--Nine members of the Commission shall 
     constitute a quorum for conducting the business of the 
     Commission.
       (2) Meetings.--Any meetings held by the Commission shall be 
     duly noticed at least 14 days in advance and shall be open to 
     the public.
       (3) Opportunities to testify.--The Commission shall provide 
     opportunities for representatives of the general public, 
     taxpayer groups, consumer groups, and State and local 
     government officials to testify.
       (4) Additional rules.--The Commission may adopt other rules 
     as needed.
       (g) Duties of the Commission.--
       (1) In general.--The Commission shall conduct a thorough 
     study of Federal, State and local, and international taxation 
     and tariff treatment of transactions using the Internet and 
     Internet access and other comparable interstate or 
     international sales activities.
       (2) Issues to be studied.--The Commission may include in 
     the study under subsection (a)--
       (A) an examination of--
       (i) barriers imposed in foreign markets on United States 
     providers of property, goods, services, or information 
     engaged in electronic commerce and on United States providers 
     of telecommunications services; and
       (ii) how the imposition of such barriers will affect United 
     States consumers, the competitiveness of United States 
     citizens providing property, goods, services, or information 
     in foreign markets, and the growth and maturing of the 
     Internet;
       (B) an examination of the collection and administration of 
     consumption taxes on interstate commerce in other countries 
     and the United States, and the impact of such collection on 
     the global economy, including an examination of the 
     relationship between the collection and administration of 
     such taxes when the transaction uses the Internet and when it 
     does not;
       (C) an examination of the impact of the Internet and 
     Internet access (particularly voice transmission) on the 
     revenue base for taxes imposed under section 4251 of the 
     Internal Revenue Code of 1986;

[[Page S11790]]

       (D) an examination of--
       (i) the efforts of State and local governments to collect 
     sales and use taxes owed on purchases from interstate 
     sellers, the advantages and disadvantages of authorizing 
     State and local governments to require such sellers to 
     collect and remit such taxes, particularly with respect to 
     electronic commerce, and the level of contacts sufficient to 
     permit a State or local government to impose such taxes on 
     such interstate commerce;
       (ii) model State legislation relating to taxation of 
     transactions using the Internet and Internet access, 
     including uniform terminology, definitions of the 
     transactions, services, and other activities that may be 
     subject to State and local taxation, procedural structures 
     and mechanisms applicable to such taxation, and a mechanism 
     for the resolution of disputes between States regarding 
     matters of multiple taxation; and
       (iii) ways to simplify the interstate administration of 
     sales and use taxes on interstate commerce, including a 
     review of the need for a single or uniform tax registration, 
     single or uniform tax returns, simplified remittance 
     requirements, simplified administrative procedures, or the 
     need for an independent third party collection system; and
       (E) the examination of ways to simplify Federal and State 
     and local taxes imposed on the provision of 
     telecommunications services.

     SEC. 103. REPORT.

       Not later than 18 months after the date of the enactment of 
     this Act, the Commission shall transmit to Congress a report 
     reflecting the results of the Commission's study under this 
     title. No finding or recommendation shall be included in the 
     report unless agreed to by at least two-thirds of the members 
     of the Commission serving at the time the finding or 
     recommendation is made.

     SEC. 104. DEFINITIONS.

       For the purposes of this title:
       (1) Bit tax.--The term ``bit tax'' means any tax on 
     electronic commerce expressly imposed on or measured by the 
     volume of digital information transmitted electronically, or 
     the volume of digital information per unit of time 
     transmitted electronically, but does not include taxes 
     imposed on the provision of telecommunications services.
       (2) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or political subdivision 
     thereof on electronic commerce that--
       (A) is not generally imposed and legally collectible by 
     such State or such political subdivision on transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means;
       (B) is not generally imposed and legally collectible at the 
     same rate by such State or such political subdivision on 
     transactions involving the same or similar property, goods, 
     services, or information accomplished through other means, 
     unless the rate is lower as part of a phase-out of the tax 
     over not more than a 5-year period; or
       (C) imposes an obligation to collect or pay the tax on a 
     different person or entity than in the case of transactions 
     involving the same or similar property, goods, services, or 
     information accomplished through other means.
       (3) Electronic commerce.--The term ``electronic commerce'' 
     means any transaction conducted over the Internet or through 
     Internet access, comprising the sale, lease, license, offer, 
     or delivery of property, goods, services, or information, 
     whether or not for consideration, and includes the provision 
     of Internet access.
       (4) Internet.--The term ``Internet'' means the combination 
     of computer facilities and electromagnetic transmission 
     media, and related equipment and software, comprising the 
     interconnected worldwide network of computer networks that 
     employ the Transmission Control Protocol/Internet Protocol, 
     or any predecessor or successor protocol, to transmit 
     information.
       (5) Internet access.--The term ``Internet access'' means a 
     service that enables users to access content, information, 
     electronic mail, or other services offered over the Internet, 
     and may also include access to proprietary content, 
     information, and other services as part of a package of 
     services offered to consumers. Such term does not include 
     telecommunications services.
       (6) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State or political subdivision thereof 
     on the same or essentially the same electronic commerce that 
     is also subject to another tax imposed by another State or 
     political subdivision thereof (whether or not at the same 
     rate or on the same basis), without a credit (for example, a 
     resale exemption certificate) for taxes paid in other 
     jurisdictions.
       (B) Exception.--Such term shall not include a sales or use 
     tax imposed by a State and 1 or more political subdivisions 
     thereof on the same electronic commerce or a tax on persons 
     engaged in electronic commerce which also may have been 
     subject to a sales or use tax thereon.
       (C) Sales or use tax.--For purposes of subparagraph (B), 
     the term ``sales or use tax'' means a tax that is imposed on 
     or incident to the sale, purchase, storage, consumption, 
     distribution, or other use of tangible personal property or 
     services as may be defined by laws imposing such tax and 
     which is measured by the amount of the sales price or other 
     charge for such property or service.
       (7) State.--The term ``State'' means any of the several 
     States, the District of Columbia, or any commonwealth, 
     territory, or possession of the United States.
       (8) Tax.--
       (A) In general.--The term ``tax'' means--
       (i) any levy, fee, or charge imposed under governmental 
     authority by any governmental entity; or
       (ii) the imposition of or obligation to collect and to 
     remit to a governmental entity any such levy, fee, or charge 
     imposed by a governmental entity.
       (B) Exception.--Such term shall not include any franchise 
     fees or similar fees imposed by a State or local franchising 
     authority, pursuant to section 622 or 653 of the 
     Communications Act of 1934 (47 U.S.C. 542, 573).
       (9) Telecommunications services.--The term 
     ``telecommunications services'' has the meaning given such 
     term in section 3(46) of the Communications Act of 1934 (47 
     U.S.C. 153(46)) and includes communications services (as 
     defined in section 4251 of the Internal Revenue Code of 
     1986).

                       TITLE II--OTHER PROVISIONS

     SEC. 201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW 
                   FEDERAL TAXES.

       It is the sense of Congress that no new Federal taxes 
     similar to the taxes described in section 101(a) should be 
     enacted with respect to the Internet and Internet access 
     during the moratorium provided in such section.

     SEC. 202. NATIONAL TRADE ESTIMATE.

       Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is 
     amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii); and
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) United States electronic commerce,''; and
       (B) in subparagraph (C)--
       (i) by striking ``and'' at the end of clause (i);
       (ii) by inserting ``and'' at the end of clause (ii);
       (iii) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of additional United States electronic 
     commerce,''; and
       (iv) by inserting ``or transacted with,'' after ``or 
     invested in'';
       (2) in subsection (a)(2)(E)--
       (A) by striking ``and'' at the end of clause (i);
       (B) by inserting ``and'' at the end of clause (ii); and
       (C) by inserting after clause (ii) the following new 
     clause:
       ``(iii) the value of electronic commerce transacted 
     with,''; and
       (3) by adding at the end the following new subsection:
       ``(d) Electronic Commerce.--For purposes of this section, 
     the term `electronic commerce' has the meaning given that 
     term in section 104(3) of the Internet Tax Freedom Act.''.

     SEC. 203. DECLARATION THAT THE INTERNET SHOULD BE FREE OF 
                   FOREIGN TARIFFS, TRADE BARRIERS, AND OTHER 
                   RESTRICTIONS.

       (a) In General.-- It is the sense of Congress that the 
     President should seek bilateral, regional, and multilateral 
     agreements to remove barriers to global electronic commerce 
     through the World Trade Organization, the Organization for 
     Economic Cooperation and Development, the Trans-Atlantic 
     Economic Partnership, the Asia Pacific Economic Cooperation 
     forum, the Free Trade Area of the America, the North American 
     Free Trade Agreement, and other appropriate venues.
       (b) Negotiating Objectives.--The negotiating objectives of 
     the United States shall be--
       (1) to assure that electronic commerce is free from--
       (A) tariff and nontariff barriers;
       (B) burdensome and discriminatory regulation and standards; 
     and
       (C) discriminatory taxation; and
       (2) to accelerate the growth of electronic commerce by 
     expanding market access opportunities for--
       (A) the development of telecommunications infrastructure;
       (B) the procurement of telecommunications equipment;
       (C) the provision of Internet access and telecommunications 
     services; and
       (D) the exchange of goods, services, and digitalized 
     information.
       (c) Electronic Commerce.--For purposes of this section, the 
     term ``electronic commerce'' has the meaning given that term 
     in section 104(3).

     SEC. 204. NO EXPANSION OF TAX AUTHORITY.

       Nothing in this Act shall be construed to expand the duty 
     of any person to collect or pay taxes beyond that which 
     existed immediately before the date of the enactment of this 
     Act.

     SEC. 205. PRESERVATION OF AUTHORITY.

       Nothing in this Act shall limit or otherwise affect the 
     implementation of the Telecommunications Act of 1996 (Public 
     Law 104-104) or the amendments made by such Act.

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:

[[Page S11791]]

       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an agency, when it expects to receive 
     electronically 50,000 or more submittals of a particular 
     form, shall take all steps necessary to ensure that multiple 
     formats of electronic signatures are made available for 
     submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use to permit employer electronic 
     storage and filing of forms containing information pertaining 
     to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with the 
     prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (3) Form, questionnaire, or survey.--The terms ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.

             TITLE II--CHILDREN'S ONLINE PRIVACY PROTECTION

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Children's Online Privacy 
     Protection Act of 1999''.

     SEC. 202. DEFINITIONS.

       In this title:
       (1) Child.--the term ``child'' means an individual under 
     the age of 13.
       (2) Operator.--The term ``operator''--
       (A) means any person who operates a website located on the 
     Internet or an online service and who collects or maintains 
     personal information from or about the users of or visitors 
     to such website or online service, or on whose behalf such 
     information is collected or maintained, where such website or 
     online service is operated for commercial purposes, including 
     any person offering products or services for sale through 
     that website or online service, involving commerce--
       (i) among the several States or with 1 or more foreign 
     nations;
       (ii) in any territory of the United States or in the 
     District of Columbia, or between any such territory and--
       (I) another such territory; or
       (II) any State or foreign nation; or
       (iii) between the District of Columbia and any State, 
     territory, or foreign nation; but
       (B) does not include any non-profit entity that would 
     otherwise be exempt from coverage under section 5 of the 
     Federal Trade Commission Act (15 U.S.C. 45).
       (3) Commission.--The term ``Commission'' means the Federal 
     Trade Commission.
       (4) Disclosure.--The term ``disclosure'' means, with 
     respect to personal information--
       (A) the release of personal information collected from a 
     child in identifiable form by an operator for any purpose, 
     except where such information is provided to a person other 
     than the operator who provides support for the internal 
     operations of the website and does not disclose or use that 
     information for any other purpose; and
       (B) making personal information collected from a child by a 
     website or online service directed to children or with actual 
     knowledge that such information was collected from a child, 
     publicly available in identifiable form, by any means 
     including by a public posting, through the Internet, or 
     through--
       (i) a home page of a website;
       (ii) a pen pal service;
       (iii) an electronic mail service;
       (iv) a message board; or
       (v) a chat room.
       (5) Federal agency.--The term ``Federal agency'' means an 
     agency, as that term is defined in section 551(1) of title 5, 
     United States Code.
       (6) Internet.--The term ``Internet'' means collectively the 
     myriad of computer and telecommunications facilities, 
     including equipment and operating software, which comprise 
     the interconnected world-wide network of networks that employ 
     the Transmission Control Protocol/Internet Protocol, or any 
     predecessor or successor protocols to such protocol, to 
     communicate information of all kinds by wire or radio.
       (7) Parent.--The term ``parent'' includes a legal guardian.
       (8) Personal information.--The term ``personal 
     information'' means individually identifiable information 
     about an individual collected online, including--
       (A) a first and last name;
       (B) a home or other physical address including street name 
     and name of a city or town;
       (C) an e-mail address;
       (D) a telephone number;
       (E) a Social Security number;
       (F) any other identifier that the Commission determines 
     permits the physical or online contracting of a specific 
     individual; or
       (G) information concerning the child or the parents of that 
     child that the website collects online from the child and 
     combines with an identifier described in this paragraph.
       (9) Verifiable parental consent.--The term ``verifiable 
     parental consent'' means any reasonable effort (taking into 
     consideration available technology), including a request for 
     authorization for future collection use, and disclosure 
     described in the notice, to ensure that a parent of a child 
     receives notice of the operator's personal information 
     collection, use, and disclosure practices, and authorizes the 
     collection, use, and disclosure, as applicable, of personal 
     information and the subsequent use of that information before 
     that information is collected from that child.
       (10) Website or online service directed to children.--
       (A)  In general.--The term ``website or online service 
     directed to children'' means--
       (i) A commercial website or online service that is targeted 
     to children; or
       (ii) that portion of a commercial website or online service 
     that is targeted to children.
       (B) Limitation.--A commercial website or online service, or 
     a portion of a commercial website or online service, shall 
     not be deemed directed to children solely for referring or 
     linking to a commercial website or online service directed to 
     children by using information location tools, including a 
     directory, index, reference, pointer, or hypertext link.
       (11) Person.--The term ``person'' means any individual, 
     partnership, corporation,

[[Page S11792]]

     trust, estate, cooperative, association, or other entity.
       (12) Online contact information.--The term ``online contact 
     information'' means an e-mail address or another 
     substantially similar identifier that permits direct contact 
     with a person online.

     SEC. 203. REGULATION OF UNFAIR AND DECEPTIVE ACTS AND 
                   PRACTICES IN CONNECTION WITH THE COLLECTION AND 
                   USE OF PERSONAL INFORMATION FROM AND ABOUT 
                   CHILDREN ON THE INTERNET.

       (A) Acts Prohibited.--
       (1) In general.--It is unlawful for an operator of a 
     website or online service directed to children, or any 
     operator that has actual knowledge that it is collecting 
     personal information from a child, to collect personal 
     information from a child in a manner that violates the 
     regulations prescribed under subsection (b).
       (2) Disclosure to parent protected.--Notwithstanding 
     paragraph (1), neither an operator of such a website or 
     online service nor the operator's agent shall be held to be 
     liable under any Federal or State law for any disclosure made 
     in good faith and following reasonable procedures in 
     responding to a request for disclosure of personal 
     information under subsection (b)(1)(B)(iii) to the parent of 
     a child.
       (b) Regulations.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act, the Commission shall promulgate 
     under section 553 of title 5, United States Code, regulations 
     that--
       (A) require the operator of any website or online service 
     directed to children that collects personal information from 
     children or the operator of a website or online service that 
     has actual knowledge that it is collecting personal 
     information from a child--
       (i) to provide notice on the website of what information is 
     collected from children by the operator, how the operator 
     uses such information, and the operator's disclosure 
     practices for such information; and
       (ii) to obtain verifiable parental consent for the 
     collection, use, or disclosure of personal information from 
     children;
       (B) require the operator to provide, upon request of a 
     parent under this subparagraph whose child has provided 
     personal information to that website or online service, upon 
     proper identification of that parent, to such parent--
       (i) a description of the specific types of personal 
     information collected from the child by that operator;
       (ii) the opportunity at any time to refuse to permit the 
     operator's further use or maintenance in retrievable form, or 
     future online collection, of personal information from that 
     child; and
       (iii) notwithstanding any other provision of law, a means 
     that is reasonable under the circumstances for the parent to 
     obtain any personal information collected from that child;
       (C) prohibit conditioning a child's participation in a 
     game, the offering of a prize, or another activity on the 
     child disclosing more personal information than is reasonably 
     necessary to participate in such activity; and
       (D) require the operator of such a website or online 
     service to establish and maintain reasonable procedures to 
     protect the confidentiality, security, and integrity of 
     personal information collected from children.
       (2) When consent not required.--The regulations shall 
     provide that verifiable parental consent under paragraph 
     (1)(A)(ii) is not required in the case of--
       (A) online contact information collected from a child that 
     is used only to respond directly on a one-time basis to a 
     specific request from the child and is not used to recontact 
     the child and is not maintained in retrievable form by the 
     operator;
       (B) a request for the name or online contact information of 
     a parent or child that is used for the sole purpose of 
     obtaining parental consent or providing notice under this 
     section and where such information is not maintained in 
     retrievable form by the operator if parental consent is not 
     obtained after a reasonable time;
       (C) online contact information collected from a child that 
     is used only to respond more than once directly to a specific 
     request from the child and is not used to recontact the child 
     beyond the scope of that request--
       (i) if, before any additional response after the initial 
     response to the child, the operator uses reasonable efforts 
     to provide a parent notice of the online contact information 
     collected from the child, the purposes for which it is to be 
     used, and an opportunity for the parent to request that the 
     operator make no further use of the information and that it 
     not be maintained in retrievable form; or
       (ii) without notice to the parent in such circumstances as 
     the Commission may determine are appropriate, taking into 
     consideration the benefits to the child of access to 
     information and services, and risks to the security and 
     privacy of the child, in regulations promulgated under this 
     subsection;
       (D) the name of the child and online contact information 
     (to the extent reasonably necessary to protect the safety of 
     a child participant on the site)--
       (i) used only for the purpose of protecting such safety;
       (ii) not used to recontact the child or for any other 
     purpose; and
       (iii) not disclosed on the site,

     if the operator uses reasonable efforts to provide a parent 
     notice of the name and online contact information collected 
     from the child, the purposes for which it is to be used, and 
     an opportunity for the parent to request that the operator 
     make no further use of the information and that it not be 
     maintained in retrievable form; or
       (E) the collection, use, or dissemination of such 
     information by the operator of such a website or online 
     service necessary--
       (i) to protect the security or integrity of its website;
       (ii) to take precautions against liability;
       (iii) to respond to judicial process; or
       (iv) to the extent permitted under other provisions of law, 
     to provide information to law enforcement agencies or for an 
     investigation on a matter related to public safety.
       (3) Termination of service.--The regulations shall permit 
     the operator of a website or an online service to terminate 
     service provided to a child whose parent has refused, under 
     the regulations prescribed under paragraph (1)(B)(ii), to 
     permit the operator's further use or maintenance in 
     retrievable form, or future online collection, of personal 
     information from that child.
       (c) Enforcement.--Subject to sections 204 and 206, a 
     violation of a regulation prescribed under subsection (a) 
     shall be treated as a violation of a rule defining an unfair 
     or deceptive act or practice prescribed under section 
     18(a)(1)(B) of the Federal Trade Commission Act (15 U.S.C. 
     57a(a)(1)(B)).
       (d) Inconsistent State Law.--No State or local government 
     may impose any liability for commercial activities or actions 
     by operators in interstate or foreign commerce in connection 
     with an activity or action described in this title that is 
     inconsistent with the treatment of those activities or 
     actions under this section.

     SEC. 204. SAFE HARBORS.

       (a) Guidelines.--An operator may satisfy the requirements 
     of regulations issued under section 203(b) by following a set 
     of self-regulatory guidelines, issued by representatives of 
     the marketing or online industries, or by other persons, 
     approved under subsection (b).
       (b) Incentives.--
       (1) Self-regulatory incentives.--In prescribing regulations 
     under section 203, the Commission shall provide incentives 
     for self-regulation by operators to implement the protections 
     afforded children under the regulatory requirements described 
     in subsection (b) of that section.
       (2) Deemed compliance.--Such incentives shall include 
     provisions for ensuring that a person will be deemed to be in 
     compliance with the requirements of the regulations under 
     section 203 if that person complies with guidelines that, 
     after notice and comment, are approved by the Commission upon 
     making a determination that the guidelines meet the 
     requirements of the regulations issued under section 203.
       (3) Expedited response to requests.--The Commission shall 
     act upon requests for safe harbor treatment within 180 days 
     of the filing of the request, and shall set forth in writing 
     its conclusions with regard to such requests.
       (c) Appeals.--Final action by the Commission on a request 
     for approval of guidelines, or the failure to act within 180 
     days on a request for approval of guidelines, submitted under 
     subsection (b) may be appealed to a district court of the 
     United States of appropriate jurisdiction as provided for in 
     section 706 of title 5, United States Code.

     SEC. 205. ACTIONS BY STATES.

       (a) In General.--
       (1) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that violates any regulation of the Commission 
     prescribed under section 203(b), the State, as parens 
     patriae, may bring a civil action on behalf of the residents 
     of the State in a district court of the United States of 
     appropriate jurisdiction to--
       (A) enjoin that practice;
       (B) enforce compliance with the regulation;
       (C) obtain damage, restitution, or other compensation on 
     behalf of residents of the State; or
       (D) obtain such other relief as the court may consider to 
     be appropriate.
       (2) Notice.--
       (A) In general.--Before filing an action under paragraph 
     (1), the attorney general of the State involved shall provide 
     to the Commission--
       (i) written notice of that action; and
       (ii) a copy of the complaint for that action.
       (B) Exemption.--
       (i) In general.--Subparagraph (A) shall not apply with 
     respect to the filing of an action by an attorney general of 
     a State under this subsection, if the attorney general 
     determines that it is not feasible to provide the notice 
     described in that subparagraph before the filing of the 
     action.
       (ii) Notification.--In an action described in clause (i), 
     the attorney general of a State shall provide notice and a 
     copy of the complaint to the Commission at the same time as 
     the attorney general files the action.
       (b) Intervention.--
       (1) In general.--On receiving notice under subsection 
     (a)(2), the Commission shall have the right to intervene in 
     the action that is the subject of the notice.
       (2) Effect of intervention.--If the Commission intervenes 
     in an action under subsection (a), it shall have the right--
       (A) to be heard with respect to any matter that arises in 
     that action; and

[[Page S11793]]

       (B) to file a petition for appeal.
       (3) Amicus curiae.--Upon application to the court, a person 
     whose self-regulatory guidelines have been approved by the 
     Commission and are relied upon as a defense by any defendant 
     to a proceeding under this section may file amicus curiae in 
     that proceeding.
       (c) Construction.--For purposes of bringing any civil 
     action under subsection (a), nothing in this title shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on the attorney general by 
     the laws of that State to--
       (1) conduct investigations;
       (2) administer oaths or affirmations; or
       (3) compel the attendance of witnesses or the production of 
     documentary and other evidence.
       (d) Actions by the Commission.--In any case in which an 
     action is instituted by or on behalf of the Commission for 
     violation of any regulation prescribed under section 293, no 
     State may, during the pendency of that action, institute an 
     action under subsection (a) against any defendant named in 
     the complaint in that action for violation of that 
     regulation.
       (e) Venue; Service of Process.--
       (1) Venue.--Any action brought under subsection (a) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       (2) Service of process.--In an action brought under 
     subsection (a), process may be served in any district in 
     which the defendant--
       (A) is an inhabitant; or
       (B) may be found.

     SEC. 206. ADMINISTRATION AND APPLICABILITY OF ACT.

       (a) In General.--Except as otherwise provided, this title 
     shall be enforced by the Commission under the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.).
       (b) Provisions.--Compliance with the requirements imposed 
     under this title shall be enforced under--
       (1) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), in the case of--
       (A) national banks, and Federal branches and Federal 
     agencies of foreign banks, by the Office of the Comptroller 
     of the Currency;
       (B) member banks of the Federal Reserve System (other than 
     national banks), branches and agencies of foreign banks 
     (other than Federal branches, Federal agencies, and insured 
     State branches of foreign banks), commercial lending 
     companies owned or controlled by foreign banks, and 
     organizations operating under section 25 or 25(a) of the 
     Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et. seq.), 
     by the Board; and
       (C) banks insured by the Federal Deposit Insurance 
     Corporation (other than members of the Federal Reserve 
     System) and insured State branches of foreign banks, by the 
     Board of Directors of the Federal Deposit Insurance 
     Corporation;
       (2) section 8 of the Federal Deposit Insurance Act (12 
     U.S.C. 1818), by the Director of the Office of Thrift 
     Supervision, in the case of a savings association the 
     deposits of which are insured by the Federal Deposit 
     Insurance Corporation;
       (3) the Federal Credit Union Act (12 U.S.C. 1751 et seq.) 
     by the National Credit Union Administration Board with 
     respect to any Federal credit union;
       (4) part A of subtitle VII of title 49, United States Code, 
     by the Secretary of Transportation with respect to any air 
     carrier or foreign air carrier subject to that part;
       (5) the Packers and Stockyards Act, 1921 (7 U.S.C. 181 et. 
     seq.) (except as provided in section 406 of that Act (7 
     U.S.C. 226, 227)), by the Secretary of Agriculture with 
     respect to any activities subject to that Act; and
       (6) the Farm Credit Act of 1971 (12 U.S.C. (2001 et seq.) 
     by the Farm Credit Administration with respect to any Federal 
     land bank, Federal land bank association, Federal 
     intermediate credit bank, or production credit association.
       (c) Exercise of Certain Powers.--For the purpose of the 
     exercise by any agency referred to in subsection (a) of its 
     powers under any Act referred to in that subsection, a 
     violation of any requirement imposed under this title shall 
     be deemed to be a violation of a requirement imposed under 
     that Act. In addition to its powers under any provision of 
     law specifically referred to in subsection (a), each of the 
     agencies referred to in that subsection may exercise, for the 
     purpose of enforcing compliance with any requirement imposed 
     under this title, any other authority conferred on it by law.
       (d) Actions by the Commission.--The Commission shall 
     prevent any person from violating a rule of the Commission 
     under section 203 in the same manner, by the same means, and 
     with the same jurisdiction, powers, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
     and made a part of this title. Any entity that violates such 
     rule shall be subject to the penalties and entitled to the 
     privileges and immunities provided in the Federal Trade 
     Commission Act in the same manner, by the same means, and 
     with the same jurisdiction, power, and duties as though all 
     applicable terms and provisions of the Federal Trade 
     Commission Act were incorporated into and made a part of this 
     title.
       (e) Effect on Other Laws.--Nothing contained in the Act 
     shall be construed to limit the authority of the Commission 
     under any other provisions of law.

     SEC. 207. REVIEW.

       (a) In General.--Not later than 5 years after the effective 
     date of the regulations initially issued under section 203, 
     the Commission shall--
       (1) review the implementation of this title, including the 
     effect of the implementation of this title on practices 
     relating to the collection and disclosure of information 
     relating to children, children's ability to obtain access to 
     information of their choice online, and on the availability 
     of websites directed to children; and
       (2) prepare and submit to Congress a report on the results 
     of the review under paragraph (1).

     SEC. 208. EFFECTIVE DATE.

       Sections 203(a), 205, and 206 of this title take effect on 
     the later of--
       (1) the date that is 18 months after the date of enactment 
     of this Act; or
       (2) the date on which the Commission rules on the first 
     application for safe harbor treatment under section 204 if 
     the Commission does not rule on the first such application 
     within one year after the date of enactment of this Act, but 
     in no case later than the date that is 30 months after the 
     date of enactment of this Act.
                                 ______
                                 

                     ENZI AMENDMENTS NOS. 3777-3778

  (Ordered to lie on the table.)
  Mr. ENZI submitted two amendments intended to be proposed by him to 
the bill, S. 442, supra; as follows:

                           Amendment No. 3777

       On page ________, line ________ of the amendment strike 
     ``________'' and insert the following: ``including at least 
     one who represents a State that does not impose an income 
     tax''.
                                  ____

       On page ________, line ________, of the amendment, strike 
     ``________'' and insert the following:
       ``(  ) Preservation of State and Local Taxing Authority.--
     Except as provided in this section, nothing in this Act shall 
     be construed to modify, impair, or supersede, or authorize 
     the modification, impairment, or superseding of, any State or 
     local law pertaining to taxation that is otherwise 
     permissible by or under the Constitution of the United States 
     or other Federal law and in effect on the date of enactment 
     of this Act.
       (  ) Liabilities and Pending Cases.--Nothing in this Act 
     affects liability for taxes accrued and enforced before the 
     date of enactment of this Act, nor does this Act affect 
     ongoing litigation relating to such taxes.''
                                 ______
                                 

                       DORGAN AMENDMENT NO. 3779

  (Ordered to lie on the table.)
  Mr. DORGAN submitted an amendment intended to be proposed by him to 
amendment No. 3719 submitted by Mr. Shelby to the bill, S. 442, supra; 
as follows:

       On page 2, after line 14, add the following:
       (d) Definitions.--For the purposes of this section, a tax 
     has been ``generally imposed and actually enforced'' if--
       (1) a tax was authorized by statute prior to October 1, 
     1998; and
       (2) provider of Internet access services had a reasonable 
     opportunity to know by virtue of a rule or other public 
     proclamation made by the appropriate administration agency of 
     the state or political subdivision thereof, that such agency 
     had, prior to October 1, 1998--
       (A) interpreted such tax to apply to Internet access 
     services:
       (B) applied such tax to Internet access services; or
       (C) assessed such tax to charges for Internet access.
                                 ______
                                 

                        DODD AMENDMENT NO. 3780

  Mr. DODD proposed an amendment to the bill, S. 442, supra; as 
follows:

       At the end of the amendment, add:
       (d) Additional Exception to Moratorium.--
       (1) In general.--Subsection (a) shall also not apply with 
     respect to an Internet access provider, unless, at the time 
     of entering into an agreement with a customer for the 
     provision of Internet access services, such provider offers 
     such customer (either for a fee or at no charge) screening 
     software that is designed to permit the customer to limit 
     access to material on the Internet that is harmful to minors.
       (2) Definitions.--In this subsection:
       (A) Internet access provider.--The term `Internet access 
     provider' means a person engaged in the business of providing 
     a computer and communications facility through which a 
     customer may obtain access to the Internet, but does not 
     include a common carrier to the extent that it provides only 
     telecommunications services.
       (B) Internet access services.--The term `Internet access 
     services' means the provision of computer and communications 
     services through which a customer using a computer and a 
     modem or other communications device may obtain access to the 
     Internet, but does not include telecommunications services 
     provided by a common carrier.
       (C) Screening software.--The term ``screening software'' 
     means software that is designed to permit a person to limit 
     access to material on the Internet that is harmful to minors.
       (3) Applicability.--Paragraph (1) shall apply to agreements 
     for the provision of Internet access services entered into on 
     or

[[Page S11794]]

     after the date that is 6 months after the date of enactment 
     of this Act.
                                 ______
                                 

                        DODD AMENDMENT NO. 3781

  (Ordered to lie on the table.)
  Mr. DODD submitted an amendment intended to be proposed to the bill, 
S. 442, supra; as follows:

       At the end of the amendment, add:

     SEC. ____. EXCEPTION TO MORATORIUM.

       (a) In General.--Section 101(a) shall not apply with 
     respect to an Internet access provider, unless, at the time 
     of entering into an agreement with a customer for the 
     provision of Internet access services, such provider offers 
     such customer (either for a fee or at no charge) screening 
     software that is designed to permit the customer to limit 
     access to material on the Internet that is harmful to minors.
       (b) Definitions.--In this section:
       (1) Internet access provider.--The term ``Internet access 
     provider'' means a person engaged in the business of 
     providing a computer and communications facility through 
     which a customer may obtain access to the Internet, but does 
     not include a common carrier to the extent that it provides 
     only telecommunications services.
       (2) Internet access services.--The term ``Internet access 
     services'' means the provision of computer and communications 
     services through which a customer using a computer and a 
     modem or other communications device may obtain access to the 
     Internet, but does not include telecommunications services 
     provided by a common carrier.
       (3) Screening software.--The term ``screening software'' 
     means software that is designed to permit a person to limit 
     access to material on the Internet that is harmful to minors.
       (c) Applicability.--Subsection (a) shall apply to 
     agreements for the provision of Internet access services 
     entered into on or after the date that is 6 months after the 
     date of enactment of this Act.

                          ____________________