[Congressional Record Volume 146, Number 107 (Wednesday, September 13, 2000)]
[Senate]
[Pages S8501-S8505]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      Mr. THOMPSON (for himself, Mr. Kohl, Mr. Abraham, Mr. Torricelli, 
        Mr. Voinovich, Mrs. Lincoln, Mr. Roth, Mr. Gregg, Mr. 
        Hutchinson, Ms. Collins, Mr. DeWine, Mr. Levin, Ms. Landrieu, 
        and Mr. Stevens):
  S. 3040. A bill to establish the Commission for the Comprehensive 
Study of Privacy Protection, and for other purposes; to the Committee 
on Governmental Affairs.


                         privacy commission act

  Mr. THOMPSON. Mr. President, I rise today to introduce the ``Privacy 
Commission Act.'' This legislation would establish a 17-member 
commission to examine the complex issue of personal privacy and to make 
recommendations to Congress as we consider how to map out privacy 
protections for the future. The Commission for the Comprehensive Study 
of Privacy Protection, whose members would include experts with a 
diversity of experiences, would look at the spectrum of privacy, from 
protecting citizens' health and financial information to ensuring their 
security on web sites.
  As we all know, Americans are increasingly concerned that their 
personal information is not as secure as they once believed. A recent 
NBC News/Wall Street Journal poll found that

[[Page S8502]]

loss of privacy was the greatest concern that Americans have as we 
enter this new century. In these times of rapidly changing technology, 
people are uncertain and fearful about who has access to their personal 
information and how that information is being used. It seems that as 
fast as new communications technologies appear, so do new capabilities 
for diverting information in unintended ways.
  The increasing popularity of the Internet and e-mail as a primary 
means of communicating and disseminating information is one of the 
major reasons for the rising concerns about personal privacy. Consumer 
information such as drivers' license numbers, educational records and 
purchase records has always been available in some capacity. Before the 
advent of the Internet, however, the time and effort required to 
accumulate such information often was prohibitive. Now, the use of 
information-gathering devices on the Internet makes building consumer 
information databases relatively cost-free, and using and sharing them 
extremely profitable.
  Some data privacy experts have shown how combining information from 
separate so-called ``anonymous'' public databases can not only identify 
those people included in the database but can reveal private 
information as well, including detailed medical and financial records. 
The increased sharing of information between medical practitioners, 
pharmaceutical companies, insurance entities and employers has made 
consumers more aware of the lack of confidentiality in the physician-
patient relationship. Breakthroughs in genetic testing have made the 
potential consequences of such sharing even more serious.
  The first federal privacy commission, which operated from 1975 to 
1977, faced the same basic question that is being posed today: ``What 
is the correct balance between protecting personal privacy and allowing 
appropriate uses of information?'' But in the past 25 years, there have 
been enormous leaps in technology. Today, a few keystrokes on a 
computer hooked up to the Internet can produce a quantity of 
information that was unimaginable in 1975. This freedom of information 
can be beneficial, by helping people to get loans quickly or by 
personalizing consumer services. But the same information in the hands 
of bad actors can cause harm, resulting in nightmarish situations such 
as identity theft. It is crucial that we act soon to protect the 
American people from crimes like these, without overregulating so much 
that we stunt the growth of our booming economy.
  The Privacy Commission is the key to finding the balance between 
protecting the privacy of individuals and permitting specific and 
appropriate uses of personal information for beneficial purposes. The 
Commission would be directed to study a wide variety of issues relating 
to personal privacy, including the monitoring, collection, distribution 
and use of personal information by government and private entities; 
current legislative and self-regulatory efforts to respond to privacy 
problems; and the practices and policies of employers with respect to 
the personal financial and health information of their employees. In 
the course of its examination of these issues, the Commission would 
also be required to hold at least 3 field hearings around the country 
and to set up a website to facilitate public participation and public 
comment. By December 31, 2001, the Commission would submit a report to 
Congress on its findings, including any recommendations for legislation 
to reform or augment current laws.
  There is great deal of interest in legislating on privacy. Everyone 
is trying to establish the appropriate level of privacy protection that 
the American people want and need. But there are many different answers 
being proposed. On the state level, approximately 7000 bills about 
privacy were introduced just last year. Here in Congress, scores of 
proposals have been introduced on a wide range of privacy issues, and 
we undoubtedly will consider many of these proposals in the next 
Congress. The Privacy Commission Act will help us to understand the 
complex issue of privacy and to map responsible protections, without 
delaying action where consensus is reached. The final report of the 
Privacy Commission would be available by the second session of the new 
Congress. In the meanwhile, if consensus can be reached on any 
substantive privacy legislation, nothing in the Privacy Commission Act 
would impede movement on those bills. To the contrary, the bill 
contains a provision specifying that it is not intended to delay any 
other privacy legislation.
  I would like to thank my colleagues in the House, particularly 
Congressmen Asa Hutchinson and Jim Moran, who sponsored H.R. 4049. They 
and their staffs have worked diligently on the Privacy Commission Act. 
They held three days of hearings on this legislation, and the House 
Government Reform Committee passed the Hutchinson-Moran bill by voice 
vote on June 29th. I also want to thank my cosponsors, particularly 
Senators Kohl and Torricelli, who have worked on a privacy commission 
bill for some time, as well as Senators Abraham, Lincoln, Voinovich, 
Roth, Gregg, Hutchinson, Collins, DeWine, Levin and Landrieu.
  It is my hope that we can all work together to pass the Privacy 
Commission Act to help us make informed and thoughtful decisions to 
protect the privacy of the American people. I urge my colleagues to 
support this much-needed legislation. I ask unanimous consent that the 
``Privacy Commission Act'' be printed in the Record following my 
remarks.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 3040

       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 ``Privacy Commission Act''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) Americans are increasingly concerned about their civil 
     liberties and the security and use of their personal 
     information, including medical records, educational records, 
     library records, magazine subscription records, records of 
     purchases of goods and other payments, and driver's license 
     numbers.
       (2) The shift from an industry-focused economy to an 
     information-focused economy calls for a reassessment of the 
     most effective way to balance personal privacy and 
     information use, keeping in mind the potential for unintended 
     effects on technology development, innovation, the 
     marketplace, and privacy needs.
       (3) This Act shall not be construed to prohibit the 
     enactment of legislation on privacy issues by Congress during 
     the existence of the Commission. It is the responsibility of 
     Congress to act to protect the privacy of individuals, 
     including individuals' medical and financial information. 
     Various committees of Congress are currently reviewing 
     legislation in the area of medical and financial privacy. 
     Further study by the Commission established by this Act 
     should not be considered a prerequisite for further 
     consideration or enactment of financial or medical privacy 
     legislation by Congress.

     SEC. 3. ESTABLISHMENT.

       There is established a commission to be known as the 
     ``Commission for the Comprehensive Study of Privacy 
     Protection'' (in this Act referred to as the ``Commission'').

     SEC. 4. DUTIES OF COMMISSION.

       (a) Study.--The Commission shall conduct a study of issues 
     relating to protection of individual privacy and the 
     appropriate balance to be achieved between protecting 
     individual privacy and allowing appropriate uses of 
     information, including the following:
       (1) The monitoring, collection, and distribution of 
     personal information by Federal, State, and local 
     governments.
       (2) Current efforts to address the monitoring, collection, 
     and distribution of personal information by Federal and State 
     governments, individuals, or entities, including--
       (A) existing statutes and regulations relating to the 
     protection of individual privacy, such as section 552a of 
     title 5, United States Code (commonly referred to as the 
     Privacy Act of 1974) and section 552 of title 5, United 
     States Code (commonly referred to as the Freedom of 
     Information Act);
       (B) legislation pending before the Congress;
       (C) privacy protection efforts undertaken by the Federal 
     Government, State governments, foreign governments, and 
     international governing bodies;
       (D) privacy protection efforts undertaken by the private 
     sector; and
       (E) self-regulatory efforts initiated by the private sector 
     to respond to privacy issues.
       (3) The monitoring, collection, and distribution of 
     personal information by individuals or entities, including 
     access to and use of medical records, financial records 
     (including credit cards, automated teller machine cards, bank 
     accounts, and Internet transactions), personal information 
     provided to on-line sites accessible through the Internet, 
     Social Security numbers, insurance records, education 
     records, and driver's license numbers.

[[Page S8503]]

       (4) Employer practices and policies with respect to the 
     financial and health information of employees, including--
       (A) whether employers use or disclose employee financial or 
     health information for marketing, employment, or insurance 
     underwriting purposes;
       (B) what restrictions employers place on disclosure or use 
     of employee financial or health information;
       (C) employee rights to access, copy, and amend their own 
     health records and financial information;
       (D) what type of notice employers provide to employees 
     regarding employer practices with respect to employee 
     financial and health information; and
       (E) practices of employer medical departments with respect 
     to disclosing employee health information to administrative 
     or other personnel of the employer.
       (5) The extent to which individuals in the United States 
     can obtain redress for privacy violations.
       (6) The extent to which older individuals and disabled 
     individuals are subject to exploitation involving the 
     disclosure or use of their financial information.
       (b) Field Hearings.--The Commission shall conduct at least 
     3 field hearings in different geographical regions of the 
     United States.
       (c) Report.--
       (1) In general.--Not later than December 31, 2001--
       (A) a majority of the members of the Commission shall 
     approve a report; and
       (B) the Commission shall submit the approved report to the 
     Congress and the President.
       (2) Contents.--The report shall include a detailed 
     statement of findings, conclusions, and recommendations, 
     including the following:
       (A) Findings on potential threats posed to individual 
     privacy.
       (B) Analysis of purposes for which sharing of information 
     is appropriate and beneficial to consumers.
       (C) Analysis of the effectiveness of existing statutes, 
     regulations, private sector self-regulatory efforts, 
     technology advances, and market forces in protecting 
     individual privacy.
       (D) Recommendations on whether additional legislation is 
     necessary, and if so, specific suggestions on proposals to 
     reform or augment current laws and regulations relating to 
     individual privacy.
       (E) Analysis of purposes for which additional regulations 
     may impose undue costs or burdens, or cause unintended 
     consequences in other policy areas, such as security, law 
     enforcement, medical research, employee benefits, or critical 
     infrastructure protection.
       (F) Cost analysis of legislative or regulatory changes 
     proposed in the report.
       (G) Recommendations on non-legislative solutions to 
     individual privacy concerns, including education, market-
     based measures, industry best practices, and new technology.
       (H) Review of the effectiveness and utility of third-party 
     verification, including specifically with respect to existing 
     private sector self-regulatory efforts.
       (d) Additional Report.--Together with the report under 
     subsection (c), the Commission shall submit to the Congress 
     and the President any additional report of dissenting 
     opinions or minority views by a member of the Commission.
       (e) Interim Report.--The Commission may submit to the 
     Congress and the President an interim report approved by a 
     majority of the members of the Commission.

     SEC. 5. MEMBERSHIP.

       (a) Number and Appointment.--The Commission shall be 
     composed of 17 members appointed as follows:
       (1) 4 members appointed by the President.
       (2) 4 members appointed by the majority leader of the 
     Senate.
       (3) 2 members appointed by the minority leader of the 
     Senate.
       (4) 4 members appointed by the Speaker of the House of 
     Representatives.
       (5) 2 members appointed by the minority leader of the House 
     of Representatives.
       (6) 1 member, who shall serve as Chairperson of the 
     Commission, appointed jointly by the President, the majority 
     leader of the Senate, and the Speaker of the House of 
     Representatives.
       (b) Diversity of Views.--The appointing authorities under 
     subsection (a) shall seek to ensure that the membership of 
     the Commission has a diversity of views and experiences on 
     the issues to be studied by the Commission, such as views and 
     experiences of Federal, State, and local governments, the 
     media, the academic community, consumer groups, public policy 
     groups and other advocacy organizations, business and 
     industry (including small business), the medical community, 
     the health care industry, civil liberties experts, and the 
     financial services industry.
       (c) Date of Appointment.--The appointment of the members of 
     the Commission shall be made not later than 30 days after the 
     date of the enactment of this Act.
       (d) Terms.--Each member of the Commission shall be 
     appointed for the life of the Commission.
       (e) Vacancies.--A vacancy in the Commission shall be filled 
     in the same manner in which the original appointment was 
     made.
       (f) Compensation; Travel Expenses.--Members of the 
     Commission shall serve without pay, but shall receive travel 
     expenses, including per diem in lieu of subsistence, in 
     accordance with sections 5702 and 5703 of title 5, United 
     States Code.
       (g) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number may hold 
     hearings.
       (h) Meetings.--
       (1) In general.--The Commission shall meet at the call of 
     the Chairperson or a majority of its members.
       (2) Initial meeting.--Not later than 45 days after the date 
     of the enactment of this Act, the Commission shall hold its 
     initial meeting.

     SEC. 6. DIRECTOR; STAFF; EXPERTS AND CONSULTANTS.

       (a) Director.--
       (1) In general.--Not later than 40 days after the date of 
     enactment of this Act, the Chairperson of the Commission 
     shall appoint a Director without regard to the provisions of 
     title 5, United States Code, governing appointments to the 
     competitive service.
       (2) Pay.--The Director shall be paid at the rate payable 
     for level III of the Executive Schedule established under 
     section 5314 of such title.
       (b) Staff.--The Director may appoint staff as the Director 
     determines appropriate.
       (c) Applicability of Certain Civil Service Laws.--
       (1) In general.--The staff of the Commission shall be 
     appointed without regard to the provisions of title 5, United 
     States Code, governing appointments in the competitive 
     service.
       (2) Pay.--The staff of the Commission shall be paid in 
     accordance with the provisions of chapter 51 and subchapter 
     III of chapter 53 of that title relating to classification 
     and General Schedule pay rates, but at rates not in excess of 
     the maximum rate for grade GS-15 of the General Schedule 
     under section 5332 of that title.
       (d) Experts and Consultants.--The Director may procure 
     temporary and intermittent services under section 3109(b) of 
     title 5, United States Code.
       (e) Staff of Federal Agencies.--
       (1) In general.--Upon request of the Director, the head of 
     any Federal department or agency may detail, on a 
     reimbursable basis, any of the personnel of that department 
     or agency to the Commission to assist it in carrying out this 
     Act.
       (2) Notification.--Before making a request under this 
     subsection, the Director shall give notice of the request to 
     each member of the Commission.

     SEC. 7. POWERS OF COMMISSION.

       (a) Hearings and Sessions.--The Commission may, for the 
     purpose of carrying out this Act, hold hearings, sit and act 
     at times and places, take testimony, and receive evidence as 
     the Commission considers appropriate. The Commission may 
     administer oaths or affirmations to witnesses appearing 
     before it.
       (b) Powers of Members and Agents.--Any member or agent of 
     the Commission may, if authorized by the Commission, take any 
     action which the Commission is authorized to take by this 
     section.
       (c) Obtaining Official Information.--
       (1) In general.--Except as provided in paragraph (2), if 
     the Chairperson of the Commission submits a request to a 
     Federal department or agency for information necessary to 
     enable the Commission to carry out this Act, the head of that 
     department or agency shall furnish that information to the 
     Commission.
       (2) Exception for national security.--If the head of that 
     department or agency determines that it is necessary to guard 
     that information from disclosure to protect the national 
     security interests of the United States, the head shall not 
     furnish that information to the Commission.
       (d) Website.--The Commission shall establish a website to 
     facilitate public participation and the submission of public 
     comments.
       (e) Mails.--The Commission may use the United States mails 
     in the same manner and under the same conditions as other 
     departments and agencies of the United States.
       (f) Administrative Support Services.--Upon the request of 
     the Director, the Administrator of General Services shall 
     provide to the Commission, on a reimbursable basis, the 
     administrative support services necessary for the Commission 
     to carry out this Act.
       (g) Gifts and Donations.--The Commission may accept, use, 
     and dispose of gifts or donations of services or property to 
     carry out this Act, but only to the extent or in the amounts 
     provided in advance in appropriation Acts.
       (h) Contracts.--The Commission may contract with and 
     compensate persons and government agencies for supplies and 
     services, without regard to section 3709 of the Revised 
     Statutes (41 U.S.C. 5).
       (i) Subpoena Power.--
       (1) In general.--The Commission may issue subpoenas 
     requiring the attendance and testimony of witnesses and the 
     production of any evidence relating to any matter that the 
     Commission is empowered to investigate by section 4. The 
     attendance of witnesses and the production of evidence may be 
     required by such subpoena from any place within the United 
     States and at any specified place of hearing within the 
     United States.
       (2) Failure to obey a subpoena.--If a person refuses to 
     obey a subpoena issued under paragraph (1), the Commission 
     may apply to a United States district court for an order 
     requiring that person to appear before the Commission to give 
     testimony, produce evidence, or both, relating to the matter 
     under

[[Page S8504]]

     investigation. The application may be made within the 
     judicial district where the hearing is conducted or where 
     that person is found, resides, or transacts business. Any 
     failure to obey the order of the court may be punished by the 
     court as civil contempt.
       (3) Service of subpoenas.--The subpoenas of the Commission 
     shall be served in the manner provided for subpoenas issued 
     by a United States district court under the Federal Rules of 
     Civil Procedure for the United States district courts.
       (4) Service of process.--All process of any court to which 
     application is made under paragraph (2) may be served in the 
     judicial district in which the person required to be served 
     resides or may be found.

     SEC. 8. PRIVACY PROTECTIONS.

       (a) Destruction or Return of Information Required.--Upon 
     the conclusion of the matter or need for which individually 
     identifiable information was disclosed to the Commission, the 
     Commission shall either destroy the individually identifiable 
     information or return it to the person or entity from which 
     it was obtained, unless the individual that is the subject of 
     the individually identifiable information has authorized its 
     disclosure.
       (b) Disclosure of Information Prohibited.--The Commission--
       (1) shall protect individually identifiable information 
     from improper use; and
       (2) may not disclose such information to any person, 
     including the Congress or the President, unless the 
     individual that is the subject of the information has 
     authorized such a disclosure.
       (c) Proprietary Business Information and Financial 
     Information.--The Commission shall protect from improper use, 
     and may not disclose to any person, proprietary business 
     information and proprietary financial information that may be 
     viewed or obtained by the Commission in the course of 
     carrying out its duties under this Act.
       (d) Individually Identifiable Information Defined.--For the 
     purposes of this Act, the term ``individually identifiable 
     information'' means any information, whether oral or recorded 
     in any form or medium, that identifies an individual, or with 
     respect to which there is a reasonable basis to believe that 
     the information can be used to identify an individual.

     SEC. 9. BUDGET ACT COMPLIANCE.

       Any new contract authority authorized by this Act shall be 
     effective only to the extent or in the amounts provided in 
     advance in appropriation Acts.

     SEC. 10. TERMINATION.

       The Commission shall terminate 30 days after submitting a 
     report under section 4(c).

     SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated to 
     the Commission $5,000,000 to carry out this Act.
       (b) Availability.--Any sums appropriated pursuant to the 
     authorization in subsection (a) shall remain available until 
     expended.

  Mr. KOHL. Mr. President, I rise today to introduce the ``Privacy 
Commission Act'' with my colleagues Senator Thompson and Senator 
Torricelli. This legislation addresses privacy protection by creating 
an expert Commission charged with the duty to explore privacy concerns. 
We cannot underestimate the importance of this issue. Privacy matters, 
and it will continue to matter more and more in this information age of 
high speed data, Internet transactions, and lightning-quick 
technological advances.
  Last November, Senator Torricelli and I introduced the ``Privacy 
Protection Study Commission Act of 1999,'' the first major piece of 
privacy legislation introduced in the 106th Congress. Our hope then, as 
now, was to gain a better informed understanding of the numerous 
privacy issues facing a high tech culture. Now, almost a year later, 
the privacy issue has grown in importance and public concern. As a 
result, I am pleased to renew my effort in this area with another 
privacy commission proposal.
  There exists a massive wealth of information in today's world, which 
is increasingly stored electronically. In fact, experts estimate that 
the average American is ``profiled'' in up to 150 commercial electronic 
databases. That means that there is a great deal of data--in some 
cases, very detailed and personal--out there and easily accessible 
courtesy of the Internet revolution. With the click of a button it is 
possible to examine all sorts of personal information, be it an 
address, a criminal record, a credit history, a shopping preference, or 
even a medical file.
  Generally, the uses of this data are benign, even beneficial. 
Occasionally, however, personal information is obtained 
surreptitiously, and even peddled to third parties for profit or other 
uses. This is especially troubling when, in many cases, people do not 
even know that their own personal information is being ``shopped.''
  Two schools of thought exist on how we should address these privacy 
concerns. There are some who insist that we must do something and do it 
quickly. Others urge us to rely entirely on ``self-regulation''--
according to them most companies will act reasonably and, if not, 
consumers will demand privacy protection as a condition for their 
continued business.
  Both approaches have some merit, but also some problems. It is never 
beneficial to legislate by anecdote or on the basis of a few bad 
actors. In deed, enacting ``knee-jerk,'' ``quick-fix'' legislation 
could do more harm than good. By the same token, however, the longer 
Congress waits to enact legislation, the more frequent the anecdotes 
until they reach a point of critical mass. We are quickly reaching the 
point when Congress must act with or without the benefits of a study.
  A privacy commission still has merit. The streamlined time frame--it 
could still be a bit shorter--helps ensure that the Commission will not 
interrupt other legislative privacy efforts, and the breadth of experts 
that it relies upon suggests that the commission's report will still be 
timely and worthwhile.
  I commend Senator Thompson for his efforts and hope our proposal 
becomes law and Commission members are appointed before the end of this 
year.
                                 ______
                                 
      Mr. ASHCROFT:
  S. 3042. A bill to protect citizens against becoming victims of 
Internet fraud, to provide stiff penalties against those who target 
senior citizens, and to educate senior citizens on how to avoid being 
victimized by Internet or telemarketing fraud; to the Committee on the 
Judiciary.


     an act to prevent internet fraud and fraud against the elderly

  Mr. ASHCROFT. Mr. President, E-commerce is growing at an 
unprecedented rate--$8 billion last year. With this increase in online 
purchases, we have made more products and services available to 
Americans--regardless of where they live. We are working to bridge the 
digital divide so all Americans, even low income and rural Americans 
can benefit from the opportunities the Internet provides. However, one 
thing we don't want to make ubiquitous is Internet fraud. Along with 
convenience, easy price comparisons, and limitless selection--this new 
medium also has provided a new opportunity to those who make their 
living defrauding the public. Fraud over the Internet, just as fraud 
over telephone lines and mail, is an increasing problem.
  In 1998, Congress passed the Telemarketing Fraud Prevention Act. I, 
like the rest of my colleagues recognized this problem and supported 
that effort. That law builds upon other federal laws that deal directly 
with telemarketing fraud. The 1998 law stiffened penalties for 
telemarketing fraud by toughening the sentencing guidelines--especially 
for crimes against the elderly. It requires criminal forfeiture to 
ensure the fruits of telemarketing crime are not used to commit further 
fraud, mandates victim restitution to ensure victims are the first ones 
compensated, adds conspiracy language to the list of telemarketing 
fraud penalties, and helps law enforcement zero in on quick-strike 
fraud operations by giving them the authority to move more quickly 
against suspected fraud.
  While I supported that law, I believe we need to do more. According 
to the National Consumers League, consumers lost over $3.2 million to 
Internet fraud last year. This is a 38 percent increase from 1998. The 
actual figure probably is much higher, since this number reflects only 
those who reported incidents to the National Consumer League's Fraud 
Watch. While it is true consumer protection laws under the jurisdiction 
of the Federal Trade Commission have been interpreted to cover Internet 
fraud--those laws are inadequate. Therefore, today, I am introducing a 
bill, An Act to Prevent Internet Fraud and Fraud Against the Elderly, 
to ensure that Internet fraud also is covered by federal criminal laws. 
It is important to me that the stiffer penalties contained in the 
Telemarketing Fraud Prevention Act for those targeting the elderly also 
cover fraud perpetrated over the Internet.
  Through work I have done over the last year, I have seen first hand 
the tragic results of schemes targeting our elderly. I held a hearing 
in the Commerce Committee's Subcommittee on

[[Page S8505]]

Consumer Affairs and heard heart breaking testimony about scam 
artists--targeting the elderly--who are maybe the worst criminals on 
the planet. They target people, who in the twilight of their lives may 
lose their life savings, their independence and their dignity. I held 
events in Missouri, with the regional director of the Federal Trade 
Commission, educating those most venerable to these schemes on how to 
avoid becoming a victim. According the National Consumers League, 
seniors are the target for more than 20 percent of Internet fraud. 
Although this is lower than the 56 percent of seniors targeted by 
unscrupulous telemarketers, the number will only increase as more and 
more of our seniors begin to use the Internet.
  I strongly believe that education is crucial. That is why this bill 
also containing provisions giving the FTC the charge of educating our 
elderly. They currently have the largest network of information on 
fraud schemes. Through their Sentinel website, they have connected law 
enforcement agencies all over the world--giving them the ability to act 
quickly. In addition, they currently have the network in place designed 
to educate consumers on all areas of consumer protection law.
  The bill I am introducing today will expand current law to include 
the same crimes committed over the Internet. As now, fraud cases would 
be divided between the Federal Trade Commission (FTC) and the 
Department of Justice.
  Mr. President. We cannot allow the criminals to stay ahead of the 
law. Internet crimes are being quickly developed and identified. We 
must make sure they are just as quickly stopped. We must provide the 
legal framework to insist that these criminals do not slip through the 
system due to a loophole.
                                 ______
                                 
      By Mr. TORRICELLI:
  S. 3043. A bill to close loopholes in the firearms laws which allow 
the unregulated manufacture, assembly, shipment, or transportation of 
firearms or firearm parts, and for other purposes; to the Committee on 
the Judiciary.


                   gun parts trafficking act of 2000

  Mr. TORRICELLI. Mr. President, I rise today to introduce the Gun 
Parts Trafficking Act of 2000.
  For years, I have fought along with many of my colleagues against the 
gun violence that has plagued America. We have sought to keep firearms 
from the hands of children and those who would use them to do harm. 
After long debate, we succeeded in enacting a ban on assault weapons as 
well as the Brady bill requiring a criminal background check at the 
time of a firearms purchase--positive steps in the effort to protect 
our communities from gun violence.
  Gun violence, however, continues to have a devastating impact on our 
nation. The statistics have been well documented, but bear repeating. 
In 1997 alone, more than 32,000 Americans were shot and killed. 
Fourteen children die from gunfire every day. The economic toll of 
firearms deaths and injuries on our country--$33 billion each year--is 
astronomical.
  In light of these staggering figures it seems obvious that we must do 
more, including regulating guns like any other consumer product. But 
while we look forward, we must also be mindful of attempts by some to 
subvert the progress we have made.
  Gun dealers are exploiting a loophole in current law that allows them 
to sell, through the US mail, gun kits containing virtually every 
single item needed to build an automatic weapon. When we enacted a ban 
on these deadly automatic weapons, we exempted automatic weapons 
legally owned prior to the ban. We also allowed replacement parts to be 
legally sold so that these grand-fathered weapons could be repaired by 
their owners, and we allowed these parts to be shipped through the 
nail.
  These provisions, however, have been exploited and replacement part 
kits that can convert a legally owned firearm into an illegal automatic 
weapon are readily available and heavily advertised in numerous 
publications. Some of these kits even go so far as to provide a 
template that shows how to make this conversion. This is a flagrant 
effort to evade the laws of the United States. This activity must be 
stopped in order to maintain the integrity of our ban on assault 
weapons and protect our communities from gun violence. Legislation is 
needed that provides simple, common-sense measures to remedy the 
glaring loopholes in current law.
  To that end, I am introducing the Gun Parts Trafficking Act of 2000, 
legislation designed to close the loopholes in existing law and end the 
sale of kits designed to convert legally owned firearms into illegal 
automatic weapons. The bill will expand the definition of ``firearm'' 
to include the main components of the weapon and will prohibit the 
manufacture or assembly of guns by an individual who does not have a 
license to do so.
  I urge my colleagues to join me in support of the Gun Parts 
Trafficking Act and ask unanimous consent that the full text of the 
legislation be printed in the Record following my statement.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 3043

       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 ``Gun Parts Trafficking Act of 
     2000''.

     SEC. 2. PROHIBITION AGAINST SHIPMENT OR TRANSPORTATION OF 
                   FIREARM PARTS, WITH CERTAIN EXCEPTIONS.

       Section 921(a)(3) of title 18, United States Code, is 
     amended by striking ``or (D) any destructive device.'' and 
     inserting ``(D) any destructive device; or (E) any parts or 
     combination of parts that when assembled on a frame or 
     receiver would constitute a firearm, as defined in this 
     paragraph.''.

     SEC. 3. PROHIBITION AGAINST MANUFACTURE OR ASSEMBLY OF 
                   FIREARMS BY PERSONS OTHER THAN LICENSED 
                   MANUFACTURERS.

       Section 922 of title 18, United States Code, is amended by 
     adding at the end the following:
       ``(z) It shall be unlawful for any person other than a 
     licensed manufacturer to manufacture or assemble a 
     firearm.''.

     SEC. 4. INCREASE IN FEE FOR LICENSE TO MANUFACTURE FIREARMS.

       Section 923(a)(1)(B) of title 18, United States Code, is 
     amended by striking ``$50'' and inserting ``$500''.

     SEC. 5. PROHIBITION AGAINST POSSESSION OR TRANSFER OF CERTAIN 
                   COMBINATIONS OF MACHINEGUN REPLACEMENT PARTS.

       Section 5845(b) of the Internal Revenue Code of 1986 
     (National Firearms Act) is amended in the 2nd sentence by 
     striking ``designed and intended solely and exclusively, or 
     combination of parts designed and intended,'' and inserting 
     ``or combination of parts designed and intended''.

     SEC. 6. EFFECTIVE DATE.

       The amendments made by this Act shall apply to conduct 
     engaged in after the 60-day period that begins with the date 
     of the enactment of this Act.

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