[Congressional Record Volume 144, Number 147 (Thursday, October 15, 1998)]
[Senate]
[Pages S12627-S12630]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  GOVERNMENT PAPERWORK ELIMINATION ACT

  Mr. CRAIG. Mr. President, I ask unanimous consent that the Senate now 
proceed to the consideration of Calendar No. 581, S. 2107.
  The PRESIDING OFFICER. Without objection, the clerk will report.
  The legislative clerk read as follows:

       A bill (S. 2107) to enhance electronic commerce by 
     promoting the reliability and integrity of commercial 
     transactions through establishing authentication standards 
     for electronic communication and for other purposes.

  The Senate proceeded to consider the bill, which had been reported 
from the Committee on Commerce, Science, and Transportation, with an 
amendment to strike all after the enacting clause and inserting in lieu 
thereof the following:

     SECTION 1. SHORT TITLE.

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

     SEC. 2. STUDIES ON USE OF ELECTRONIC SIGNATURES TO ENHANCE 
                   ELECTRONIC COMMERCE.

       The Secretary shall conduct an ongoing study of the 
     enhancement of electronic commerce and the impact on 
     individual privacy due to the use of electronic signatures 
     pursuant to this Act, and shall report findings to the 
     Commerce Committee of the House and to the Commerce, Science, 
     and Transportation Committee of the Senate not later than 18 
     months after the date of enactment of this Act.

     SEC. 3. ELECTRONIC AVAILABILITY OF FORMS.

       (a) New Forms, Questionnaires, and Surveys.--The head of an 
     agency or operating unit shall provide for the availability 
     to the affected public in electronic form for downloading or 
     printing through the Internet or other suitable medium of any 
     agency form, questionnaire, or survey created after the date 
     of enactment of this Act that is to be submitted to the 
     agency by more than 1,000 non-government persons or entities 
     per year, except where the head of the agency or operating 
     unit determines by a finding that providing for such 
     availability would be impracticable or otherwise 
     unreasonable.
       (b) All Forms, Questionnaires, and Surveys.--As soon as 
     practicable, but not later than 18 months after the date of 
     enactment of this Act, each Federal agency shall make all of 
     its forms, questionnaires, and surveys that are expected to 
     be submitted to such agency by more than 1,000 non-government 
     persons or entities per year available to the affected public 
     for downloading or printing through the Internet or other 
     suitable electronic medium. This requirement shall not apply 
     where the head of an agency or operating unit determines that 
     providing such availability for particular form, 
     questionnaire or survey documents would be impracticable or 
     otherwise unreasonable.
       (c) Applicability of Section.--The requirements of this 
     section shall not apply to surveys that are both distributed 
     and collected one-time only or that are provided directly to 
     respondents by the agency.
       (d) Availability.--Forms subject to this section shall be 
     available for electronic submission (with an electronic 
     signature when necessary) under the provisions of section 8, 
     and shall be available for electronic storage by employers as 
     described in section 7.
       (e) Paper Forms To Be Available.--Each agency and operating 
     unit shall continue to make forms, questionnaires, and 
     surveys available in paper form.

     SEC. 4. PAYMENTS.

       In conjunction with the process required by section 8--
       (1) where they deem such action appropriate and 
     practicable, and subject to standards or guidance of the 
     Department of the Treasury concerning Federal payments or 
     collections, agencies shall seek to develop or otherwise 
     provide means whereby persons submitting documents 
     electronically are accorded the option of making any payments 
     associated therewith by electronic means.
       (2) payments associated with forms, applications, or 
     similar documents submitted electronically, other than 
     amounts relating to additional costs associated with the 
     electronic submission such as charges imposed by merchants in 
     connection with credit card transactions, shall be no greater 
     than the payments associated with the corresponding printed 
     version of such documents.

     SEC. 5. USE OF ELECTRONIC SIGNATURES BY FEDERAL AGENCIES.

       (a) Agency Employees To Receive Electronic Signatures.--The 
     head of each agency shall issue guidelines for determining 
     how and which employees in each respective agency shall be 
     permitted to use electronic signatures within the scope of 
     their employment.
       (b) Availability of Electronic Notice.--An agency may 
     provide a person entitled to receive written notice of a 
     particular matter with the opportunity to receive electronic 
     notice instead.
       (c) Procedures for Acceptance of Electronic Signatures.--
     The Director, in consultation with the Secretary, shall 
     coordinate agency actions to comply with the provisions of 
     this Act and shall develop guidelines concerning agency use 
     and acceptance of electronic signatures, and such use and 
     acceptance shall be supported by the issuance of such 
     guidelines as may be necessary or appropriate by the 
     Secretary.
       (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) Under the procedures referred to in subsection (a), 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 receives electronically 
     50,000 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. 6. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     the Act, 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. 7. EMPLOYER ELECTRONIC STORAGE OF FORMS.

       If an employer is required by any Federal law or regulation 
     to collect or store, or to file with a Federal agency forms 
     containing information pertaining to employees, such employer 
     may, after 18 months after enactment of this Act, store such 
     forms electronically unless the relevant agency determines by 
     regulation that storage of a particular form in an electronic 
     format is inconsistent with the efficient secure or proper 
     administration of an agency program. Such forms shall also be 
     accepted in electronic form by agencies as provided by 
     section 8.

     SEC. 8. IMPLEMENTATION BY AGENCIES.

       (a) Implementation.--Consistent with the Privacy Protection 
     Act of 1980 (42 U.S.C. 2000aa) and after consultation with 
     the Attorney General, and subject to applicable laws and 
     regulations pertaining to the Department of the Treasury 
     concerning Federal payments and collections and the National 
     Archives and Records Administration concerning the proper 
     maintenance and preservation of agency records, Federal 
     agencies shall, not later than 18 months after the enactment 
     of this Act, establish and implement policies and procedures 
     under which they will use and authorize the use of electronic 
     technologies in the transmittal of forms, applications, and 
     similar documents or records, and where appropriate, for the 
     creation and transmission of such documents or records and 
     their storage for their required retention period.
       (b) Establishment of a Timeline for Implementation.--Within 
     18 months after the date of enactment of this Act, Federal 
     agencies shall establish timelines for the implementation of 
     the requirements of subsection (a).
       (c) General Accounting Office Report.--The Comptroller 
     General shall report to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Commerce 21 months after the date of enactment 
     of this Act on the proposed implementation policies and 
     timelines described in subsections (a) and (b).
       (d) Implementation Deadline.--Except where an agency makes 
     a written finding that electronic filing of a form is either 
     technically infeasible, economically unreasonable, or may 
     compromise national security, all Federal forms must be made 
     available for electronic submission within 60 months after 
     the date of enactment of this Act.

     SEC. 9. SENSE OF THE CONGRESS.

       Because there is no meaningful difference between contracts 
     executed in the electronic world and contracts executed in 
     the analog world, it is the sense of the Congress that such 
     contracts should be treated similarly under Federal law. It 
     is further the sense of the congress that such contracts 
     should be treated similarly under State law.

     SEC. 10. APPLICATION WITH OTHER LAWS.

       Nothing in this this Act 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. 11. DEFINITIONS.

       For purposes of this Act:
       (1) Secretary.--The term ``Secretary'' means the Secretary 
     of Commerce.
       (2) Agency.--The term ``agency'' means executive agency, as 
     that term is defined in section 105 of title 5, United States 
     Code.
       (3) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies 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.
       (4) Director.--The term ``Director'' means the Director of 
     the Office of Management and Budget.
       (5) 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.

[[Page S12628]]

                           Amendment No. 3829

 (Purpose: To establish procedures for efficient government paperwork 
                               reduction)

  Mr. CRAIG. Mr. President, Senator Abraham has an amendment at the 
desk. I ask for its consideration.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       The Senator from Idaho [Mr. Craig], for Mr. Abraham, 
     proposes an amendment numbered 3829.

  The amendment is as follows:

       On page 10, strike out line 7 and all that follows through 
     page 18, line 10, and insert the following:

     SECTION 1. SHORT TITLE.

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

     SEC. 2. AUTHORITY OF OMB TO PROVIDE FOR ACQUISITION AND USE 
                   OF ALTERNATIVE INFORMATION TECHNOLOGIES BY 
                   EXECUTIVE AGENCIES.

       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 alternative information technologies that provide 
     for electronic submission, maintenance, or disclosure of 
     information as a substitute for paper and for the use and 
     acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES FOR USE AND ACCEPTANCE OF ELECTRONIC 
                   SIGNATURES BY EXECUTIVE AGENCIES.

       (a) In General.--In order to fulfill the responsibility to 
     administer the functions assigned under chapter 35 of title 
     44, United States Code, the provisions of the Clinger-Cohen 
     Act of 1996 (divisions D and E of Public Law 104-106) and the 
     amendments made by that Act, and the provisions of this Act, 
     the Director of the Office of Management and Budget shall, in 
     consultation with the National Telecommunications and 
     Information Administration and not later than 18 months after 
     the date of enactment of this Act, develop procedures for the 
     use and acceptance of electronic signatures by Executive 
     agencies.
       (b) Requirements for Procedures.--(1) The procedures 
     developed under subsection (a)--
       (A) shall be compatible with standards and technology for 
     electronic signatures that are generally used in commerce and 
     industry and by State governments;
       (B) may not inappropriately favor one industry or 
     technology;
       (C) shall ensure that electronic signatures are as reliable 
     as is appropriate for the purpose in question and keep intact 
     the information submitted;
       (D) shall provide for the electronic acknowledgment of 
     electronic forms that are successfully submitted; and
       (E) shall, to the extent feasible and appropriate, require 
     an Executive agency that anticipates receipt by electronic 
     means of 50,000 or more submittals of a particular form to 
     take all steps necessary to ensure that multiple methods of 
     electronic signatures are available for the submittal of such 
     form.
       (2) The Director shall ensure the compatibility of the 
     procedures under paragraph (1)(A) in consultation with 
     appropriate private bodies and State government entities that 
     set standards for the use and acceptance of electronic 
     signatures.

     SEC. 4. DEADLINE FOR IMPLEMENTATION BY EXECUTIVE AGENCIES OF 
                   PROCEDURES FOR USE AND ACCEPTANCE OF ELECTRONIC 
                   SIGNATURES.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the provisions of the Clinger-Cohen Act of 1996 
     (divisions D and E of Public Law 104-106) and the amendments 
     made by that Act, and the provisions of this Act, the 
     Director of the Office of Management and Budget shall ensure 
     that, commencing not later than five years after the date of 
     enactment of this Act, Executive agencies provide--
       (1) for the option of the electronic maintenance, 
     submission, or disclosure of information, when practicable as 
     a substitute for paper; and
       (2) for the use and acceptance of electronic signatures, 
     when practicable.

     SEC. 5. ELECTRONIC STORAGE AND FILING OF EMPLOYMENT FORMS.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the provisions of the Clinger-Cohen Act of 1996 
     (divisions D and E of Public Law 104-106) and the amendments 
     made by that Act, and the provisions of this Act, the 
     Director of the Office of Management and Budget shall, not 
     later than 18 months after the date of enactment of this Act, 
     develop procedures to permit private employers to store and 
     file electronically with Executive agencies forms containing 
     information pertaining to the employees of such employers.

     SEC. 6. STUDY ON USE OF ELECTRONIC SIGNATURES.

       (a) Ongoing Study Required.--In order to fulfill the 
     responsibility to administer the functions assigned under 
     chapter 35 of title 44, United States Code, the provisions of 
     the Clinger-Cohen Act of 1996 (divisions D and E of Public 
     Law 104-106) and the amendments made by that Act, and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall, in cooperation with the National 
     Telecommunications and Information Administration, conduct an 
     ongoing study of the use of electronic signatures under this 
     title on--
       (1) paperwork reduction and electronic commerce;
       (2) individual privacy; and
       (3) the security and authenticity of transactions.
       (b) Reports.--The Director shall submit to Congress on a 
     periodic basis a report describing the results of the study 
     carried out under subsection (a).

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

       Electronic records submitted or maintained in accordance 
     with procedures developed under this Act, or electronic 
     signatures or other forms of electronic authentication used 
     in accordance with such procedures, shall not be denied legal 
     effect, validity, or enforceability because such records 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 executive 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 INTERNAL REVENUE LAWS.

       No provision of this Act shall apply to the Department of 
     the Treasury or the Internal Revenue Service to the extent 
     that such provision--
       (1) involves the administration of the internal revenue 
     laws; or
       (2) 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) 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 the electronic message; and
       (B) indicates such person's approval of the information 
     contained in the electronic message.
       (2) Executive agency.--The term ``Executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.

  Mr. ABRAHAM. Mr. President, I wish to take a moment to discuss 
language that has been added to this legislation, the Government 
Paperwork Elimination Act. In May, I introduced S. 2107 to enhance 
electronic commerce and promote the reliability and integrity of 
commercial transactions through the establishment of authentication 
standards for electronic communications. S. 2107 was reported by the 
Committee on Commerce, Science, and Transportation last month.
  After the bill was reported, it was discovered that the bill was 
erroneously referred to the Commerce Committee and should have been 
referred to the Committee on Governmental Affairs. S. 2107 deals with 
Federal Government information issues and, according to the 
parliamentarian, falls directly within the jurisdiction of Governmental 
Affairs. I understand a similar bill had been approved by Governmental 
Affairs last Congress.
  Obviously, this was discovered late in the session. Nevertheless, 
Senator Thompson, the chairman of the Governmental Affairs Committee, 
worked with me to develop language which combines language from the 
bill reported by his committee last Congress and S. 2107. I want to 
thank my colleague from Tennessee for his help and insight. He spent a 
great deal of time assisting me with this legislation and, in my 
opinion, his language makes many improvements to the original bill.
  Mr. LEAHY. Mr. President, the digitization of information and the 
explosion in the growth of computing and electronic networking offer 
tremendous potential benefits to the way Americans live, work, conduct 
commerce, and interact with their government. This bill, S. 2107, will 
make the United States government more accessible and accountable to 
the citizenry by directing federal agencies to accept ``electronic 
signatures'' for government forms that are submitted electronically.
  I am pleased that Senator Abraham has addressed my concerns about the 
privacy issues raised by this legislation. As reported out of 
committee, S. 2107 would have established a framework for government 
use of electronic signatures without putting in place any privacy 
protections for the vast amounts of personal information collected in 
the process. Without such

[[Page S12629]]

protections, people could be forced to sacrifice their privacy as the 
price of communicating with the government electronically.
  For example, to submit a particular form electronically, a person 
might be required to use an electronic signature technology that offers 
a high level of security, such as the increasingly popular 
cryptographic digital signature. This will usually involve the use of a 
commercial third party--we'll call it ``X Corp.''--to guarantee the 
person's identity. X Corp. will need to collect detailed personal 
information about the person, such as home address, phone number, 
social security number, date of birth, and even credit information. 
Some of the most secure systems even collect biometric information such 
as fingerprints or handwritten signatures. X Corp. might also collect 
information about how the person uses electronic signature services, 
amassing a detailed dossier of the person's activities on-line. Nothing 
in the original bill prevented X Corp. from using or selling such 
private information without permission.
  We have corrected this oversight by adding forward-looking privacy 
protections to the amendment, which strictly limit the ways in which 
information collected as a byproduct of electronic communications with 
the government can be used or disclosed to others. The provision we 
have crafted is designed to prevent anyone who collects personal 
information in the course of providing electronic signatures for use 
with government agencies from inappropriately disclosing that 
information.
  We recognize that this is just the beginning of Congress's efforts to 
address the new privacy issues raised by electronic government and the 
information age. Congress will almost certainly be called upon in the 
next session to consider broader electronic signature legislation, and 
issues of law enforcement access to electronic data and mechanisms for 
enforcing privacy rights in cyberspace will need to be part of that 
discussion. For the time being, however, this legislation will ensure 
that Americans can interact with their government on-line, and that 
they can do so with the necessary safeguards in place to protect their 
privacy and security.
  Mr. THOMPSON. Mr. President, I thank my colleague from Michigan for 
his hard work on and dedication to information technology issues. The 
Committee on Governmental Affairs which I chair has had a long and 
involved history with this issue.
  This bill which we are addressing today seeks to take advantage of 
the advances in modern technology to lessen the paperwork burdens on 
those who deal with the Federal Government. This is accomplished by 
requiring the Office of Management and Budget, through its existing 
responsibilities under the Paperwork Reduction Act and the Clinger-
Cohen Act, to develop policies to promote the use of alternative 
information technologies, including the use of electronic maintenance, 
submission, or disclosure of information to substitute for paper, and 
the use of acceptance of electronic signatures.
  The Federal Government is lagging behind the rest of the nation in 
using new technologies. Individuals who deal with the Federal 
Government should be able to reduce the cumulative burden of meeting 
the Federal Government's information demands through the use of 
information technology. This bill hopefully will provide the motivation 
that the Federal Government needs to make this possible for our 
Nation's citizens.
  I thank Senator Abraham for offering us the opportunity to work with 
him on this important issue.
  Mr. CRAIG. Mr. President, I ask unanimous consent the amendment be 
agreed to, the bill be considered read a third time and passed, the 
motion to reconsider be laid upon the table, and that any statements 
relating to the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 3829) was agreed to.
  The bill (S. 2107), as amended, was considered read the third time 
and passed, as follows:

                                S. 2107

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

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

     SEC. 2. AUTHORITY OF OMB TO PROVIDE FOR ACQUISITION AND USE 
                   OF ALTERNATIVE INFORMATION TECHNOLOGIES BY 
                   EXECUTIVE AGENCIES.

       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 alternative information technologies that provide 
     for electronic submission, maintenance, or disclosure of 
     information as a substitute for paper and for the use and 
     acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES FOR USE AND ACCEPTANCE OF ELECTRONIC 
                   SIGNATURES BY EXECUTIVE AGENCIES.

       (a) In General.--In order to fulfill the responsibility to 
     administer the functions assigned under chapter 35 of title 
     44, United States Code, the provisions of the Clinger-Cohen 
     Act of 1996 (divisions D and E of Public Law 104-106) and the 
     amendments made by that Act, and the provisions of this Act, 
     the Director of the Office of Management and Budget shall, in 
     consultation with the National Telecommunications and 
     Information Administration and not later than 18 months after 
     the date of enactment of this Act, develop procedures for the 
     use and acceptance of electronic signatures by Executive 
     agencies.
       (b) Requirements for Procedures.--(1) The procedures 
     developed under subsection (a)--
       (A) shall be compatible with standards and technology for 
     electronic signatures that are generally used in commerce and 
     industry and by State governments;
       (B) may not inappropriately favor one industry or 
     technology;
       (C) shall ensure that electronic signatures are as reliable 
     as is appropriate for the purpose in question and keep intact 
     the information submitted;
       (D) shall provide for the electronic acknowledgment of 
     electronic forms that are successfully submitted; and
       (E) shall, to the extent feasible and appropriate, require 
     an Executive agency that anticipates receipt by electronic 
     means of 50,000 or more submittals of a particular form to 
     take all steps necessary to ensure that multiple methods of 
     electronic signatures are available for the submittal of such 
     form.
       (2) The Director shall ensure the compatibility of the 
     procedures under paragraph (1)(A) in consultation with 
     appropriate private bodies and State government entities that 
     set standards for the use and acceptance of electronic 
     signatures.

     SEC. 4. DEADLINE FOR IMPLEMENTATION BY EXECUTIVE AGENCIES OF 
                   PROCEDURES FOR USE AND ACCEPTANCE OF ELECTRONIC 
                   SIGNATURES.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the provisions of the Clinger-Cohen Act of 1996 
     (divisions D and E of Public Law 104-106) and the amendments 
     made by that Act, and the provisions of this Act, the 
     Director of the Office of Management and Budget shall ensure 
     that, commencing not later than five years after the date of 
     enactment of this Act, Executive agencies provide--
       (1) for the option of the electronic maintenance, 
     submission, or disclosure of information, when practicable as 
     a substitute for paper; and
       (2) for the use and acceptance of electronic signatures, 
     when practicable.

     SEC. 5. ELECTRONIC STORAGE AND FILING OF EMPLOYMENT FORMS.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the provisions of the Clinger-Cohen Act of 1996 
     (divisions D and E of Public Law 104-106) and the amendments 
     made by that Act, and the provisions of this Act, the 
     Director of the Office of Management and Budget shall, not 
     later than 18 months after the date of enactment of this Act, 
     develop procedures to permit private employers to store and 
     file electronically with Executive agencies forms containing 
     information pertaining to the employees of such employers.

     SEC. 6. STUDY ON USE OF ELECTRONIC SIGNATURES.

       (a) Ongoing Study Required.--In order to fulfill the 
     responsibility to administer the functions assigned under 
     chapter 35 of title 44, United States Code, the provisions of 
     the Clinger-Cohen Act of 1996 (divisions D and E of Public 
     Law 104-106) and the amendments made by that Act, and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall, in cooperation with the National 
     Telecommunications and Information Administration, conduct an 
     ongoing study of the use of electronic signatures under this 
     title on--
       (1) paperwork reduction and electronic commerce;
       (2) individual privacy; and
       (3) the security and authenticity of transactions.
       (b) Reports.--The Director shall submit to Congress on a 
     periodic basis a report describing the results of the study 
     carried out under subsection (a).

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

       Electronic records submitted or maintained in accordance 
     with procedures developed under this Act, or electronic 
     signatures

[[Page S12630]]

     or other forms of electronic authentication used in 
     accordance with such procedures, shall not be denied legal 
     effect, validity, or enforceability because such records 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 executive 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 INTERNAL REVENUE LAWS.

       No provision of this Act shall apply to the Department of 
     the Treasury or the Internal Revenue Service to the extent 
     that such provision--
       (1) involves the administration of the internal revenue 
     laws; or
       (2) 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) 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 the electronic message; and
       (B) indicates such person's approval of the information 
     contained in the electronic message.
       (2) Executive agency.--The term ``Executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.

                          ____________________