[Congressional Record Volume 148, Number 103 (Thursday, July 25, 2002)]
[Extensions of Remarks]
[Page E1397]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 INTRODUCTION OF H.R. 5215, THE ``CONFIDENTIAL INFORMATION PROTECTION 
                AND STATISTICAL EFFICIENCY ACT OF 2002''

                                 ______
                                 

                           HON. STEPHEN HORN

                             of california

                    in the house of representatives

                        Thursday, July 25, 2002

  Mr. HORN. Mr. Speaker, I am pleased to introduce on behalf of myself, 
Mr. Sawyer and Mrs. Maloney, the proposed ``Confidential Information 
Protection and Statistical Efficiency Act of 2002.''
  This bill would implement a pledge made by the President in his 
Management Agenda to improve Federal statistical programs. The bill, 
which the Administration drafted and supports, builds upon legislation 
that I introduced in the 106th Congress. That bill, H.R. 2885, the 
``Statistical Efficiency Act of 1999,'' received strong bipartisan 
support and was approved by the full House. Similar to that bill, H.R. 
5215, it has two primary objectives. One is to enable the Federal 
Government's three principal statistical agencies--the Bureau of the 
Census, the Bureau of Labor Statistics, and the Bureau of Economic 
Analysis--to share the business data they collect. This shared 
information would substantially enhance the accuracy of economic 
statistics by resolving serious data inconsistencies that now exist. It 
would also reduce reporting burdens on the businesses that supply those 
data.
  The second and equally important objective of this bill is to ensure 
that the confidential data that citizens and businesses provide to 
Federal agencies for statistical purposes are subject to uniform and 
rigorous protections against unauthorized use. Accurate statistical 
data are essential to informed public and private decision-making in a 
host of important areas. This data make vital contributions to 
understanding the Nation's economy and its many facets, such as the 
impact of technology on productivity growth. The Nation's core economic 
indicators--the Gross Domestic Product and other key statistical 
aggregates--form the cornerstone of Federal budgetary and monetary 
policy.
  Yet, growing data anomalies and inconsistencies raise questions about 
the accuracy of our economic statistics. For example, the Gross 
Domestic Product has recently experienced a historically high 
measurement error by about $200 billion. Such serious data 
inconsistencies affect the Census Bureau and the Bureau of Labor 
Statistics, and call into question the accuracy with which these 
agencies track industry output, employment and productivity trends. For 
example, during the last economic census in 1997, the Bureau of Labor 
Statistics reported payroll data in the information technology sector 
that were 13 percent higher than the data reported by the Census 
Bureau. There was a 14 percent disparity in the payroll data reported 
by these two agencies for the motor freight, transportation and 
warehousing industries.
  This bill would remove the statutory barriers that now prevent the 
Census Bureau, the Bureau of Labor Statistics and the Bureau of 
Economic Analysis from sharing and comparing statistical data. 
According to the Administration, this would largely eliminate the 
anomalies that now exist in Federal statistics data and thereby greatly 
enhance their quality.
  The bill would also eliminate much of the duplicative data collection 
that now occurs. Multiple agencies have a critical need for the same 
information but are prohibited from sharing it. Allowing these agencies 
to share this information will ease reporting burdens on businesses.
  Let me emphasize several important features of the data-sharing 
provisions of the bill. First, the data-sharing provisions apply only 
to the three agencies I have mentioned--the Census Bureau, the Bureau 
of Labor Statistics and the Bureau of Economic Analysis. The data-
sharing provisions would not extend to other Federal agencies. Second, 
the bill's provisions apply only to the sharing of business data. They 
do not extend to household and demographic data that individual 
citizens provide to the Federal Government.
  Third, the enhanced data-sharing can be used only for statistical 
purposes. Fourth, the data-sharing will be closely controlled under 
written agreements that specify: which data is to be shared; the 
statistical purposes for which the data can be used; the individuals 
who are authorized to receive the data; and appropriate security 
safeguards.
  As I mentioned earlier, the other part of the bill would enhance the 
protection of data that businesses and citizens provide to the Federal 
Government on a confidential basis. In contrast to the bill's narrow 
data-sharing authorities, its confidentiality protections are very 
broad. They apply to all Federal agencies that collect data for 
statistical purposes from businesses or individuals under a pledge of 
confidentiality.
  The bill provides a clear and consistent standard for the use of 
confidential statistical information. Specifically, it prohibits the 
Federal Government from using such information for any non-statistical 
purpose. The bill defines a prohibited non-statistical purpose as 
including the use of data in individually identifiable form for any 
administrative, regulatory, law enforcement, adjudicative or other 
purpose that affects the rights, privileges or benefits of the person 
or organization supplying the information.
  The bill would also prohibit the disclosure of such information under 
the Freedom of Information Act. This bill would provide appropriate 
safeguards to ensure that data supplied under a pledge of 
confidentiality are used only for statistical purposes. It imposes 
criminal penalties on Federal employees or agents who willfully 
disclose information In violation of the bill's requirements.
  The bill, thus, provides one uniform set of confidentiality 
protections to supplant the ad hoc statutory protections that now 
exist. It also establishes statutory protections in some areas where no 
such protections currently exist.
  The bill's enhanced confidentiality protections will improve the 
quality of Federal statistics by encouraging greater cooperation on the 
part of respondents. Even more important, these protections ensure that 
the Federal Government does not abuse the trust of those who provide 
data to it under a pledge of confidentiality.
  Mr. Speaker, the Confidential Information Protection and Statistical 
Efficiency Act of 2002 makes important, common sense and long overdue 
improvements in our Nation's statistical programs. It is a bipartisan, 
good Government measure that has the Administration's strong support. I 
urge my colleagues to join with us to achieve prompt enactment of the 
bill.

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