[Congressional Record Volume 145, Number 23 (Tuesday, February 9, 1999)]
[House]
[Pages H494-H496]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PAPERWORK ELIMINATION ACT OF 1999
Mrs. KELLY. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 439) to amend chapter 35 of title 44, United States Code,
popularly known as the Paperwork Reduction Act, to minimize the burden
of Federal paperwork demands upon small businesses, educational and
nonprofit institutions, Federal contractors, State and local
governments, and other persons through the sponsorship and use of
alternative information technologies.
The Clerk read as follows:
H.R. 439
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 ``Paperwork Elimination Act of
1999''.
SEC. 2. PROMOTION OF USE OF ELECTRONIC INFORMATION
TECHNOLOGY.
Section 3504(h) of title 44, United States Code, is amended
by striking ``and'' after the semicolon at the end of
paragraph (4), by striking the period at the end of paragraph
(5) and inserting ``; and'', and by adding at the end the
following:
``(6) specifically promote the acquisition and use of
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. ASSIGNMENT OF TASKS AND DEADLINES.
Section 3505(a)(3) of title 44, United States Code, is
amended by striking ``and'' after the semicolon at the end of
subparagraph (B), by striking the period at the end of
subparagraph (C) and inserting ``; and'', and by adding at
the end the following:
``(D) a description of progress in providing for the
acquisition and use of 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, including
the extent to which such progress accomplishes reduction of
burden on small businesses or other persons.''.
SEC. 4. FEDERAL AGENCY RESPONSIBILITIES.
(a) Providing for Use of Electronic Information
Management.--Section 3506(c)(1)(B) of title 44, United States
Code, is amended by striking ``and'' after the semicolon at
the end of clause (ii) and by adding at the end the
following:
``(iv) provides to persons required to submit information
the option to use, where appropriate, electronic submission,
maintenance, or disclosure of information; and''.
(b) Promotion of Electronic Information Management.--
Section 3506(c)(3)(C) of title 44, United States Code, is
amended by striking ``or'' after the semicolon at the end of
clause (ii), by adding ``or'' after the semicolon at the end
of clause (iii), and by adding at the end the following:
``(iv) the promotion and optional use, where appropriate,
of electronic submission, maintenance, or disclosure of
information.''.
(c) Use of Alternative Information Technologies.--Section
3506(c)(3)(J) of title 44, United States Code, is amended to
read as follows:
``(J) to the maximum extent practicable, uses information
technology, including alternative information technologies,
that provide for electronic submission, maintenance, or
disclosure of information, to reduce burden and improve data
quality, agency efficiency, and responsiveness to the
public.''.
SEC. 5. PUBLIC INFORMATION COLLECTION ACTIVITIES; SUBMISSION
TO DIRECTOR; APPROVAL AND DELEGATION.
Section 3507(a)(1)(D)(ii) of title 44, United States Code,
is amended by striking ``and'' after the semicolon at the end
of subclause (V), by adding ``and'' after the semicolon at
the end of subclause (VI), and by adding at the end the
following:
``(VII) a description of how respondents may, if
appropriate, electronically submit, maintain, or disclose
information under the collection of information.''.
SEC. 6. RESPONSIVENESS TO CONGRESS.
Section 3514(a)(2) of title 44, United States Code, is
amended by striking ``and'' after the semicolon at the end of
subparagraph (C), by striking the period at the end of
subparagraph (D) and inserting ``; and'', and by adding at
the end the following:
``(E) reduced the collection of information burden on small
businesses and other persons through the use of electronic
submission, maintenance, or disclosure of information as a
substitute for the use of paper, including--
``(i) a description of instances where such substitution
has added to burden; and
``(ii) specific identification of such instances relating
to the Internal Revenue Service.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
New York (Mrs. Kelly) and the gentleman from Illinois (Mr. Davis) each
will control 20 minutes.
The Chair recognizes the gentlewoman from New York (Mrs. Kelly).
Mrs. KELLY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, today the House considers H.R. 439, the Paperwork
Elimination Act of 1999. This is legislation that is not new to the
House. In both the 104th Congress and the 105th Congress virtually
identical legislation was considered and overwhelmingly passed. In the
104th Congress, the House passed this bill by a vote of 418 to zero. In
the 105th Congress, the House passed this bill by a vote of 395 to
zero. I certainly hope we can continue this trend this afternoon.
Before I take a moment to explain the bill, I would like to thank my
colleague, the gentlewoman from New York (Ms. Velazquez), the ranking
member of the Committee on Small Business, as well as the rest of my
friends on the Democratic side, for their help in moving this
legislation forward. The ranking member and her staff have been very
cooperative, and deserve much of the credit for bringing this
legislation to the floor.
Mr. Speaker, paperwork burdens are literally strangling the
productivity of our Nation's economy, particularly small businesses.
Consider the fact that in 1996 the government-wide burden hour estimate
reached 6.7 billion hours. That means that Americans spent 6.7 billion,
that is ``billion'' with a ``B'', filling out paperwork required by the
Federal Government. That figure is up almost 350 percent from the 1.5
billion burden hour estimate in 1980.
As I said a moment ago, paperwork burdens impact our Nation's small
businesses particularly hard. A recent study indicated that for
companies with fewer than 20 employees, complying with paperwork
requirements cost an average of $2,017 per employee per year. For
companies with 20 to 499 employees, our small businesses, that cost was
almost as much.
For these companies, complying with paperwork requirements cost an
average of $1,931 per employee per year. But for companies with 500
employees or more, the costs were much lower. For these companies,
complying with paperwork requirements cost an average of $1,086 per
employee per year. Clearly, for the sake of our Nation's small
businesses, we need to start reducing the overall burden of complying
with federally-mandated paperwork.
One of the ways in which we can do this is to enable the Federal
Government to take advantage of the Information Age. The Committee on
Small Business has recognized the need to encourage the Federal
Government to utilize new information technology to reduce the public
costs of meeting the Federal government's information needs. Nowhere is
this need more acute than in the small business community.
Because small businesses typically do not have the resources to hire
employees whose explicit purpose is to deal with paperwork and
regulatory requirements, there is a specific need to allow these small
businesses, as well as other taxpayers, with access to computers and
modems to use them when dealing with the Federal Government. That is
the goal that the Paperwork Elimination Act of 1999 is intended to
accomplish.
Let me briefly run down exactly what is contained in this
legislation. First, it specifically requires the director of the Office
of Management and Budget, the OMB, to promote the acquisition and use
of electronic transmission of information as a substitute for paper
when small businesses and individuals are required to comply with
[[Page H495]]
the information needs of the Federal Government.
Second, it requires the director of OMB to include in the government-
wide resources plan that is already maintained a description of
progress in providing for the acquisition and use of alternative
technologies that provide for electronic transmission of information.
This report is also to include the extent to which the paperwork
burden on small businesses and individuals has been reduced as a result
of using this technology.
Third, it clearly states the new responsibilities of each Federal
agency. It specifically requires each Federal agency to provide the
option of electronically transmitting information when complying with
their regulations and other information needs.
{time} 1445
It also requires each Federal agency to certify to the director of
OMB that each collection of information it undertakes has reduced
paperwork burdens to the greatest extent possible, particularly on
small entities, by allowing for the electronic transmission of data.
Fourth, it prohibits each Federal agency from collecting information
until it has first published a notice in the Federal Register
describing how respondents may, if they choose, submit the required
information electronically.
Finally, it requires the director of OMB, when reporting to Congress,
to include a report on how paperwork burdens on small businesses and
other persons have been reduced by using electronic transmissions of
information as a substitute for paper. Furthermore, it requires this
report to describe any instances where the use of electronic
transmission of information has added to paperwork burdens and specific
identifications of instances relating to the Internal Revenue Service.
Mr. Speaker, before I conclude my statement, I do wish to clarify two
items. First, I want to stress that any requirements imposed by this
legislation fall on the Federal Government. It is the Federal
Government that is required to provide the option of using electronic
names to transmit information. No small business or individual will be
required to use electronic means to transmit information to the
government if he or she does not wish to.
The second item I wish to clarify is how H.R. 439 differs from
previous versions of the Paperwork Elimination Act. As I indicated
earlier, in both the 104th and 105th Congresses, the House passed by
unanimous votes virtually identical versions of H.R. 439. The version
that we are considering today has been changed only slightly to reflect
a small portion of last year's bill that was included in the Omnibus
Appropriations Act, Public Law 105-277, and signed into law. What we
are doing today is considering the remaining portions of legislation
already passed by the House in previous Congresses but which did not
get signed into law. This complements the provision enacted last year
and strengthens the underlying statute.
In conclusion, Mr. Speaker, H.R. 439 is not controversial
legislation. It is virtually identical to legislation that this House
has repeatedly and overwhelmingly passed. I would like to thank the
gentleman from Missouri (Mr. Talent) for his tireless work on this
legislation. I would also like to thank once again the gentleman from
New Jersey (Mr. Pascrell), the ranking member; the gentlewoman from New
York (Ms. Velazquez); and the entire Committee on Small Business and
their staffs for the bipartisan work on this legislation. I urge all of
my colleagues to support the legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. PASCRELL. Mr. Speaker, I yield myself such time as I may consume,
and I wish to thank the gentlewoman from New York, our subcommittee
chairperson.
Mr. Speaker, as the ranking member on the Subcommittee on Regulatory
Reform and Paperwork Reduction of the Committee on Small Business, I
rise today to encourage quick passage of the Paperwork Elimination Act
of 1999. I believe it is an outstanding piece of legislation that
enjoys overwhelming bipartisan support.
During my tenure in the New Jersey legislature, Mr. Speaker, I was on
the committee that recommended a reduction in unnecessary regulations,
and I think that is one of the reasons why we are here. It is stated in
our purpose of being. I believed then, as I do today, that reducing
bureaucratic red tape is essential to unlocking the great potential of
our small businesses. This will be the third consecutive Congress that
this measure was considered. Unfortunately, on the two earlier
occasions, the Senate failed to act. I hope as the 106th Congress gets
underway, the Senate will join us in passing this legislation and
sending it to the President for his signature. It is long overdue, Mr.
Speaker.
Small businesses are powerful job creators, both in New Jersey and
throughout this great land. Efforts should be made to increase their
profitability and productivity, not hinder them, and that is exactly
what this common sense measure does.
The importance of small businesses cannot be emphasized enough. The
fact is that they are the backbone of our economy. My State of New
Jersey is a great example. Of the 213,000 full-time business firms with
employees in our State, 98.5 percent are small businesses. The income
of small businesses, including sole proprietors and partnerships, rose
4\1/2\ percent to $16.4 billion in 1998.
Small businesses in any State are leading our economic growth,
particularly in the last 4 or 5 years. Of the over 17 million new jobs
created over the past 6 years, close to 80 percent have come not from
our Fortune 500 companies, but from those small businesses that we see
in our neighborhoods, day in and day out.
Despite this growth, the problem of red tape is clear. It has been
estimated, and the gentlewoman from New York pointed out quite
succinctly, that the American public spends an amount of time and
effort equal to $510 billion, 9 percent of the gross domestic product,
in order to meet the Federal Government's information needs. To suit
our purposes, what we require in paperwork now amounts to 9 percent of
the gross domestic product. I find that to be quite unbelievable, but
true.
Small businesses bear a disproportionate share of these costs. To use
an extreme example, some small businesses are required to file forms
with up to 50 different Federal, State and local agencies. We think we
understand what that means, and I think I do, but no one understands it
unless they are a small businessperson doing it. That is an incredible
fact of life.
That is one of our purposes for being here, is to shrink the arm of
government. It is too long, goes into our productivity, and goes into
the profits of small businesses. These bureaucratic demands can
literally strangle a small business. The small business entrepreneur
needs to focus on expansion, customer service and the bottom line, not
on filling out paperwork for hours upon hours to keep some other
bureaucrat in business.
The aim of this Paperwork Elimination Act is to maximize economic
growth by minimizing the burden of Federal paperwork demands. It does
this through the use of electronic information technology. The bill
before us will reduce this burden by requiring all Federal agencies to
provide the option of electronic submission of information to all those
who must comply with Federal regulations.
As we approach the 21st century, the technological advances that are
now commonplace in the private sector should be an integral part of the
way our Federal agencies do business. It is important to remember that
the measure will in no way hinder the ability of small businesses and
individuals without access to computers or modems to comply with
Federal paperwork requirements. The measure merely requires Federal
agencies to provide an electronic option to those who desire it. This
legislation is not a mandate on small business and there is no
requirement that a small business needs to computerize. This is a win-
win situation for everyone involved.
Small businesses, Mr. Speaker, play a critical role in our economy
and have been an integral part of the economic growth we have enjoyed
in recent years. Before us is sound legislation which allows small
businesses to focus on job creation, to focus on productivity, and to
focus on expansion while
[[Page H496]]
bringing the Federal Government into the information age. I strongly
urge my colleagues to support this legislation.
I want to commend the chair of our subcommittee, and the overall
chair, the gentleman from Missouri (Mr. Talent).
Mr. Speaker, I yield such time as he may consume to the gentleman
from Illinois (Mr. Davis).
Mr. DAVIS of Illinois. Mr. Speaker, first of all, let me thank the
gentleman from New Jersey for yielding this time to me. I would also
like to thank the committee for entertaining the idea that resources
and technical assistance should be made available to what I call micro
businesses, that is small barbershops, beauty parlors, restaurants, and
other businesses that may not have the resource on site to file
electronically.
Mr. Speaker, I rise today in support of the Paperwork Elimination Act
of 1999, introduced by the gentleman from Missouri (Mr. Talent). Two
years ago Congress passed the Paperwork Reduction Act, which mandated
fixed percentage cuts in paperwork burden over the next few years. We
passed that legislation to unleash our Nation's small businesses from
the colossal amounts of paperwork which we know that they face. H.R.
439 intends to lessen some of the burden.
Today, technological advances have improved our travel time to and
fro and made trade and money almost effortless. I ask why not apply the
same technology to help our Nation's 22 million small businesses? This
legislation urges the Federal Government to disseminate and receive
information electronically, where appropriate, thereby increasing
responsiveness. It will minimize the Federal paperwork burden of
individuals, small businesses and State and local governments. It will
maximize the usefulness of information collected by the Federal
Government, and will minimize the costs carried by the Federal
Government of collecting, maintaining, using and distributing
information.
Again, I join with those who are in favor of this legislation. I
think it is obviously an idea whose time has come, and I am certain,
without a doubt, that all of the small businesses in America,
especially those who labor spending as much time filling out forms as
they do trying to make money, will rise up and say to this Congress,
well done.
Mr. PASCRELL. Mr. Speaker, I yield myself such time as I may consume.
I want to thank the Speaker for indulging us, and thank the gentlewoman
from New York (Mrs. Kelly) and also the ranking member, the gentlewoman
from New York (Ms. Velazquez).
One final point, Mr. Speaker, if I may. We have had three bills from
out of the Committee on Small Business, all bipartisan. I think this is
an example of the direction we should be going, and if we can do it,
everybody else can do it. So I salute the majority party and I salute
the chairman and subcommittee chairs for doing this. I think this is
very important; significant. Not only the bill itself, Mr. Speaker, but
what we are attempting to do in our committee.
Mr. Speaker, I have no further requests for time, and I yield back
the balance of my time.
Mrs. KELLY. Mr. Speaker, I yield myself the balance of my time.
Let me conclude by saying that this legislation is consistent with
what the House has passed in previous Congresses. I urge everyone to
support this bill, and I am delighted to have those kind words from my
colleague from New Jersey.
Mrs. KELLY. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Shimkus). The question is on the motion
offered by the gentlewoman from New York (Mrs. Kelly) that the House
suspend the rules and pass the bill, H.R. 439.
The question was taken.
Mrs. KELLY. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
____________________