Congressional Record, Volume 144 Issue 147 (Thursday, October 15, 1998)

[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.

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

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

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.

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.

SEC. 9. APPLICATION WITH INTERNAL REVENUE LAWS.

SEC. 10. DEFINITIONS.

____________________