[Congressional Record Volume 144, Number 150 (Tuesday, October 20, 1998)]
[Senate]
[Pages S12684-S12686]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          PASSAGE OF THE GOVERNMENT PAPERWORK ELIMINATION ACT

  Mr. ABRAHAM. Mr. President, the Omnibus Appropriations bill that the 
Senate is about to consider contains the full text of S. 2107, the 
Government Paperwork Elimination Act, a bill I introduced in April 
along with Senators Wyden, McCain and Reed. I want to thank Senators 
McCain, Lott, Wyden, and Hollings for taking the time and effort to 
work with me in advancing this legislation. Without their active 
support and participation, this bill would not have progressed as far 
as it has.
  Senators Wyden, McCain and Reed joined me in introducing the 
Government Paperwork Elimination Act in May of this year. On July 15, 
1998, I chaired a hearing on this legislation before the full Commerce 
Committee. Two weeks later, S. 2107 was marked up in the Committee with 
several modifications. On a voice vote, the bill as amended was ordered 
to be reported.
  When the Senate returned to session after the August recess, a 
unanimous consent agreement was propounded on S. 2107. This unanimous 
consent request brought the bill to the attention of Senator Thompson, 
the Chairman of the Government Affairs Committee. Senator Thompson had 
concerns with the bill because of the extent to which it dealt with 
Federal agencies.
  Despite the time constraints--the session was expected to end in two 
weeks--Senator Thompson generously offered to work with me to address 
some of his committee's concerns and ensure that the bill as offered 
did not conflict with current mandates on the Executive. Over the 
course of the last week in September, Senator Thompson and I modified 
S. 2107 to address the concerns raised in his committee. On Tuesday, 
October 7, S. 2107 as amended was added as an amendment to S. 442 by 
unanimous consent.
  The Internet Tax Freedom Bill passed the Senate on October 8 and was 
sent to the House for consideration. However, because the House did not 
agree with some of the language contained in the bill, House Members 
proposed adding the text of the House passed Internet Tax Freedom Bill 
to the omnibus rather than passing S. 442 as amended.
  On October 15th, the Senate passed S. 2107 independent of other 
vehicles. On the same day, the text of S. 2107 was included in the 
omnibus appropriations bill. The next day, October 16th, the Omnibus 
Appropriations bill was passed by Congress with the text of the 
Government Paperwork Elimination Act included therein.
  This legislation amends the Paperwork Reduction Act of 1980 to allow 
for the use of electronic submission of Federal forms to the Federal 
government with the use of an electronic signature within five years 
from the date of enactment. It is intended to bring the federal 
government into the electronic age, in the process saving American 
individuals and companies millions of dollars and hundreds of hours 
currently wasted on government paperwork.
  In order to protect the private sector and ensure a level playing 
field for companies competing in the development of electronic 
signature technologies, this legislation mandates that regulations 
promulgated by the Office of Management and Budget and the National 
Telecommunications and Information Administration be compatible with 
standards and technologies used commercially in order to ensure that no 
one industry or technology receives favorable consideration. It also 
requires Federal agencies to accept multiple methods of electronic 
submission if the agency expects to receive 50,000 or more electronic 
submittals of a particular form. This requirement will ensure that no 
single electronic signature technology is permitted to unfairly 
dominate the market.
  This legislation also takes several steps to help the public feel 
more secure in the use of electronic signatures. If the public is going 
to send money or share private information with the government, people 
must be secure in the knowledge that their information and finances are 
adequately protected. For this reason, my bill requires that electronic 
signatures be as reliable as necessary for the transaction. If a person 
is requesting information of a public nature, a secure electronic 
signature will not be necessary. If, however, an individual is 
submitting forms which contain personal, medical or financial 
information, adequate security is imperative and will be available.
  This is not the only provision providing for personal security, 
however. Senator Leahy joined me to help establish a threshold for 
privacy protection in this bill. The language developed by Senator 
Leahy and I will ensure that information submitted by an individual can 
only be used to facilitate the electronic transfer of information or 
with the prior consent of the individual. Also included is legislation 
which establishes legal standing for electronically submitted 
documents. Such legal authority is necessary to attach the same 
importance to electronically signed documents as is attached to 
physically signed documents. Without it, electronic submission of 
sensitive documents would be impossible. Finally, the Government 
Paperwork Elimination Act requires that Federal agencies to send an 
individual an electronic acknowledgement of their submission when it is 
received. Such acknowledgements are standard when conducting commerce 
online. A similar acknowledgement by Federal agencies will provide 
piece-of-mind for individuals who conduct business with the government 
electronically.
  As much as individuals will benefit from this bill, so too will 
American businesses. By providing companies with the option of 
electronic filing and storage, this bill will reduce the paperwork 
burden imposed by government on commerce and the American economy. It 
will allow businesses to move from printed forms they must fill out 
using typewriters or handwriting to digitally-based forms that can be 
filled out using a word processor. The savings in time, storage and 
postage will

[[Page S12685]]

be enormous. One company, computer maker Hewlett-Packard, estimates 
that the section of this bill permitting companies to download copies 
of regulatory forms to be filed and stored digitally rather than 
physically will, by itself, save that company $1-2 billion per year.
  Efficiency in the federal government itself will also be enhanced by 
this legislation. By forcing government bureaucracies to enter the 
digital information age we will force them to streamline their 
procedures and enhance their ability to maintain accurate, accessible 
records. This should result in significant cost savings for the federal 
government as well as increased efficiency and enhanced customer 
service.
  Each and every year, Mr. President, Americans spend in excess of $6 
billion hours simply filling out, documenting and handling government 
paperwork. This huge loss of time and money constitutes a significant 
drain on our economy and we must bring it under control. The easier and 
more convenient we make it for American businesses to comply with 
paperwork and reporting requirements, the better job they will do of 
meeting these requirements, and the better job they will do of creating 
jobs and wealth for our country. That is why we need this legislation.
  The information age is no longer new, Mr. President. We are in the 
midst of a revolution in the way people do business and maintain 
records. This legislation will force Washington to catch up with these 
developments, and release our businesses from the drag of an obsolete 
bureaucracy as they pursue further innovations. The result will be a 
nation and a people that is more prosperous, more free and more able to 
spend time on more rewarding pursuits.
  I want to thank my colleagues in the Senate for their support and 
urge the House to support this important legislation. I ask unanimous 
consent that a statement of intent for the Government Paperwork 
Elimination Act be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

   Statement of Intent on the Government Paperwork Elimination Act--
             Senator Abraham, Senator Wyden, Senator McCain


         I. Purpose of the Government Paperwork Elimination Act

       The Act, as reported, would require Federal agencies to 
     make electronic versions of their forms available online and 
     would allow individuals and businesses to use electronic 
     signatures to file these forms electronically. The intent of 
     the bill is to provide a framework for reliable and secure 
     electronic transactions with the Federal government, while 
     remaining ``technology neutral'' and not inappropriately 
     favoring one industry over another.


                        II. Background and Needs

       The widespread use and world-wide accessibility of the 
     Internet provides the opportunity for enhanced electronic 
     commerce and substantial paperwork reduction. State 
     governments, industry, and private citizens have already 
     embraced the electronic medium to conduct public and private 
     business. Allowing businesses and individuals to conduct 
     their affairs with the Federal government within a stable 
     legal framework would save financial resources by eliminating 
     burdensome paperwork and bureaucracy.
       The widespread use of electronic forms can greatly improve 
     the efficiency and speed of government services. Such efforts 
     as people traveling to government offices for forms would no 
     longer be required. If implemented, the bill would save the 
     government million of dollars in cost associated with such 
     things as copying, mailing, filing and storing forms.
       Electronic signatures can offer greater assurances that 
     documents are authentic and unaltered. They minimize the 
     chances of forgeries or people claiming to have had their 
     signatures forged.
       An electronic signature is a method of indicating that a 
     particular person has originated and approved the contents of 
     an electronic document. There are a wide array of electronic 
     signature technologies currently available, which range from 
     simply typing one's name on an electronic document or e-mail, 
     to scanning a handwritten signature as a bitmap and copying 
     it onto an electronic document. More technologically complex 
     versions of electronic signatures involve the analysis of 
     physical characteristics (biometrics) such as fingerprints, 
     retina scans, and the biometrics of an actual signature to 
     digitally verify the signer's identity. The widely referred-
     to ``digital signature'' is slightly different, and is merely 
     one type of electronic signature which often, although not 
     always, involves the use of trusted third parties.
       Security levels for all electronic signatures vary 
     according to the technology used. Simply typing a name on a 
     document offers no security protection, and cannot be 
     verified as unique to the originator. Bitmaps, which are 
     digital versions of handwritten signatures, require large 
     amounts of memory, are vulnerable to copying or pasting, and 
     cannot be used to accurately tie the document to the 
     signature. Electronic signature technologies which use 
     biometric analysis offer a higher level of security. Digital 
     signatures and the use of licensed third parties also yield a 
     higher degree of security.
       Several states have enacted electronic signature 
     legislation with varying scopes and legal requirements. Some 
     states have chosen to limit the scope of the law to 
     transactions with state or public entities, or even to more 
     specific purposes such as court documents, medical records, 
     and state treasurer checks and drafts. Other states have 
     applied their statutes to private as well as public 
     transactions. State statues also have varying technology 
     requirements which highlight the potential for future 
     compatibility and interoperability problems.


                    III. Summary of Major Provisions

       As reported, the Government Paperwork Elimination Act would 
     provide a legal framework and time line for electronic 
     transactions between individuals and businesses and the 
     Federal government. Major provisions of the Act, as reported, 
     include:
       1. Each Federal agency would be required to make electronic 
     versions of their forms available for electronic submission. 
     Such electronic submission would be supported by guidelines 
     issued by the Director of Office of Management and Budget 
     (OMB) and the National Telecommunications Information 
     Administration.
       2. The bill establishes the following time lines:
       (1) At 18 months, the Secretary of Commerce will report on 
     the bill's effect on electronic commerce and individual 
     privacy, agencies will make electronic forms available for 
     downloading and printing, agencies will permit employers to 
     store Federal forms electronically, and agencies will 
     establish policies and procedures for implementation of this 
     Act.
       (2) At 60 months, final implementation deadline.
       3. The bill provides definitions of key terms, and 
     specifies under what circumstances, and in what special 
     cases, an agency is not required to provide for the 
     electronic submission of forms.


                        IV. Legislative History

       The Government Paperwork Elimination Act, S. 2107, was 
     introduced by Senator Abraham on May 21, 1998. The bill was 
     co-sponsored by Senator Wyden, Senator McCain, and Senator 
     Reed. In June 1998, Senator Lott, Senator Cochran, and 
     Senator Burns were added as co-sponsors to the bill. On July 
     15, 1998 the Commerce Committee held a hearing on digital 
     signatures at which time testimony was heard from Mr. Andrew 
     Pincus, General Counsel, Department of Commerce; Mr. Scott 
     Cooper, Manager, Technology Policy, Hewlett Packard; Mr. Kirk 
     LeCompte, Vice President, Product Marketing, PenOp Inc.; and 
     Mr. Dan Greenwood, Deputy General Counsel, Information 
     Technology Division, The Commonwealth of Massachusetts.
       On July 29, 1998 the Committee met in executive session 
     and, by a voice vote, ordered the bill, as amended, to be 
     reported.
       On September 17, 1998 the bill was reported to the Senate 
     with an amendment in the nature of a substitute by the Senate 
     Committee on Commerce, Science and Transportation and placed 
     on the Senate Legislative.
       On October 7, 1998, the bill was added as amendment # 3678 
     to S. 442, the Internet Tax Freedom Act by unanimous consent.
       On October 8, 1998, the Internet Tax Freedom Act was passed 
     by the Senate and sent to the House of Representatives.
       On October 15, 1998, S. 2107 was passed in the Senate by 
     unanimous consent.
       On October 21, the bill passed the Senate as part of the 
     Omnibus Appropriations Act.


                               V. Privacy

       This legislation will not have an adverse impact on the 
     privacy of individuals. The Director of the Office of 
     Management and Budget, in cooperation with the Administrator 
     of the National Telecommunications Information Administration 
     will conduct an ongoing study of the Act's impact on 
     individual privacy.


                             VI. Paperwork

       This legislation will not increase the paperwork 
     requirement for private individuals or businesses. The 
     legislation would require two reports: (1) the Secretary of 
     Commerce would be required to submit to Congress a report on 
     the Act's effect on electronic commerce and individual 
     privacy; and (2) the General Accounting Office would be 
     required to submit to Congress a report on agencies' 
     policies, procedures, and timeliness for the implementation 
     of this Act.


     VII. Section-by-section Analysis Of The Government Paperwork 
                            Elimination Act

            Title XVII Government Paperwork Elimination Act

       Section 1. This section would permit the bill to be cited 
     as the ``Government Paperwork Elimination Act.''
       Section 2. Authority of OMB to Provide For Acquisition And 
     Use Of Alternative Information Technologies By Executive 
     Agencies. Amends current law to provide for the availability 
     of electronic submission as a substitute for paper and for 
     the use and acceptance of electronic signatures.

[[Page S12686]]

       Section 3. Procedures For Use And Acceptance Of Electronic 
     Signatures By Executive Agencies. Subsection (1) would 
     require the Office of Management and Budget, in consultation 
     with the National Telecommunications Information 
     Administration to develop procedures for the use and 
     acceptance of electronic signatures by Executive agencies.
       Subsection (2) establishes the requirements for these 
     procedures. Paragraph (i) would ensure that these procedures 
     would be compatible with those used in the commercial and 
     State government sectors. Paragraph (ii) would require that 
     these procedures would not inappropriately favor one industry 
     or technology. The intent of the bill is for the government 
     to remain ``technology neutral.'' And, so as not to prescribe 
     one electronic signature security level for all documents, 
     paragraph (iii) would allow the security level to be 
     commensurate with the document's sensitivity. Paragraph (iv) 
     would require agencies to electronically acknowledge the 
     submission of electronic forms. Paragraph (v) would require 
     agencies to ensure multiple methods of electronic submission 
     when it expects to receive 50,000 electronic submittal of a 
     particular form, paragraph E would require the agency to make 
     multiple electronic signature formats available for 
     submitting the forms. To further ensure technology 
     neutrality, ``multiple methods'' are required when a form is 
     submitted in substantial enough volume so that the government 
     does not favor a particular technology provider by accepting 
     only one electronic signature technology.
       The intent of the bill is not to mandate the use of a 
     particular technology. Rather, the bill is intended to be 
     technology neutral leaving open the possibility that a wide 
     variety of existing technologies or technologies that will be 
     developed in the future may be used by the Federal government 
     in satisfying the requirements of this bill.
       Section 4. Deadline For Implementation By Executive 
     Agencies Of Procedures For Use And Acceptance Of Electronic 
     Signatures. Requires that, when practicable, Federal forms 
     must be available for electronic submission, with electronic 
     signatures within 60 months after enactment.
       Section 5. Electronic Storage And Filing Of Employment 
     Forms. After 18 months from enactment, the Office of 
     Management and Budget shall develop procedures to permit 
     employers that are required by law to collect, file and store 
     Federal forms concerning their employees, to collect, file 
     and store the same forms electronically.
       Section 6. Study On Use Of Electronic Signatures. This 
     section would require the Director of the Office of 
     Management and Budget, in cooperation with the National 
     Telecommunications Information Administration to conduct an 
     ongoing study on how this bill affects electronic commerce 
     and individual privacy. A periodic report describing the 
     results shall be submitted to the Congress.
       Section 7. Enforceability and Legal Effect of Electronic 
     Records.
       This section stipulates that electronic records, or 
     electronic signatures or other forms of electronic 
     authentication, submitted in accordance with agency 
     procedures, will not be denied legal effect, validity or 
     enforceability because they are in electronic form. This 
     provision is intended to preclude agencies or courts from 
     systematically treating electronic documents and signatures 
     less favorably than their paper counterparts.
       Section 8. Disclosure Of Information. This section is 
     intended to protect the privacy of individuals who submit 
     information electronically to Federal agencies. Information 
     submitted by individuals may only be used to facilitate 
     electronic communications between that individual and the 
     agency and may not be disclosed by agency employees without 
     the affirmative consent of that individual. This section is 
     not intended to supersede current law in this area.
       Section 9. Application With Other Laws. This section would 
     exempt the Internal Revenue Service (IRS) and the Department 
     of the Treasury from the provisions in this Act, when in 
     conflict with the administration of internal revenue laws or 
     conflicts the Internal Revenue Service Restructuring and 
     Reform Act of 1998 or the Internal Revenue Code of 1986. The 
     IRS collection process should also be exempted from this Act.
       Section 10. Definitions. This section would provide the 
     definitions of several key terms used throughout this bill.

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