[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.

                          ____________________